Forget about nationalizing the banks. This is only going to force the government to go deeper into debt. Nationalize the Federal Reserve Bank!
From what I have read on
http://monetary.org/ currently, the government funds it projects by borrowing money from the Fed. This involves issuing bonds to banks who are members of the Fed, the banks then taking those bonds in exchange for cash. Interestingly, with the TARP money, this cash is then "lent" back to the banks. Meanwhile, the government is paying interest on the bonds, and the national debt is mounting.
The proposal to nationalize the Fed means the Fed would become part of the Department of the Treasury, and if the government needs money, it simply prints it, thereby controlling all currency as it should without the banks involvement. This theoretically would save trillions of dollars a year.
http://www.monetary.org/ need_for_monetary_reform.html
Today, 60% of IRS taxes pay interest on the national debt much of which is paid to the FED banking system. By abolishing the FED we can cut personal income tax by 75% and balance the budget with no spending cuts if we keep business taxes the same. If not, within four years, IRS taxes will only pay the interest on the national debt.
The U.S. Government can buy back the FED at any time for $450 million (per Congressional Record). If we bought it, we would pocket over $450 million dollars in bonds the FED and the government own. So the real cost is nothing!
Generally speaking, when the Government runs a deficit of $400 billion the bank tells the U.S. Treasury to print $400 billion of Federal Reserve Notes (cash). The bank pays for printing (3 for $100 bill). The bank uses these $100 bills to buy $400 billion in newly issued Government bonds paying the bank 8-12% interest. The bank receives cash interest free and exchanges the cash for interest bearing bonds. Sixty percent of all taxes goes to pay this interest and the bank pays no income tax.