No plans to nationalise banks: White House

The White House has refuted reports that the US administration was planning to nationalise troubled banks, saying President Barack Obama believes that the country should have a privately-held banking system regulated by the government.  

"The President believes that a privately held banking system regulated by the government is what this country should have," White House spokesman Robert Gibbs told reporters during his daily press briefing.  

The White House clarification came as the rumor mill in this regard at the Wall Street resulted in stocks of major US banks pummeled down Friday, specially that of Bank of America and Citigroup.  

When asked about the Wall Street rumor in this regard, which resulted in Bank of America and Citigroup stocks coming down, Gibbs said: "Let me reassure as best I can, this administration continues to strongly believe that a privately-held banking system is the correct way to go, ensuring that they are regulated sufficiently by this government."  

When insisted by reporters that White House was not ruling out nationalisation, he said: ""No. No, no. Let me be clear. The president believes that a privately held banking system regulated by the government is what this country should have."