White House (CNSNews.com) – The Obama administration opposes nationalizing the banking industry, White House Press Secretary Robert Gibbs said Friday, but Gibbs did not absolutely rule out the possibility of nationalization.
 
“This administration continues to strongly believe that a privately held banking system is the correct way to go, ensuring they are regulated sufficiently by this government,” Gibbs told reporters. “That’s been our belief for quite some time, and we continue to have it.”
 
When a reporter asked to clarify whether that meant Obama was absolutely against a government takeover of the banking industry, asking, “But does that mean he will not nationalize the banks? Gibbs said, “It’s hard for me to be clearer than what I just said.”
 
Free market advocates have expressed concern about the federal government taking over the banking industry since the $700 billion Troubled Assets Relief Act was enacted last fall.
 
Earlier this week, Sen. Lindsey Graham (R-S.C.), said nationalizing banks is an option that should be left open. “We need to keep option three [nationalization] on the table for any bank that fails the stress test,” Graham said.