Greenspan: nationalise but protect bondholders

Alan Greenspan, a former Federal Reserve chairman regarded as one of the foremost proponents of free markets, has conceded that some American banks may need to be nationalised.

Greenspan told the Financial Times, a newspaper: "It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring...I understand that once in a hundred years this is what you do."

On the issue of the troubled banks' bond holders, often cited as the stumbling block on the

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