Bank nationalization was treated as off-limits even amid collapse proceedings

Evidence

Nevertheless, the obvious prescription of the government taking over the failing banks and forcing their restructuring, deleveraging, and downsizing was ruled permanently out of bounds; but instead, under the proliferation of program acronyms (post-Lehmann), no major stakeholder in the FIRE sector was forced to suffer a write-down of assets or even change of personnel. … In the few instances when the government was forced to take an equity stake as well, it did so with the proviso that it would not actually “nationalize” the companies in question, and would endeavor to sell off the stake as soon as feasible. — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 944

Categorization

• QUESTION: Why was nationalization ‘ruled permanently out of bounds’ despite being the textbook move — what ideological resources made that framing stick? Worth tracing through the thought collective.
• XREF: connects to: Eurozone banking integration outpaced national resolution, producing too-big-to-bail systemic risk — Mark Blyth, Austerity: The History of a Dangerous…, 227