Well, there might be upside and there will be downsides.

The possible upsides:

1. Lending policy would now be fairly uniform, controlled by law much more explicitly and banking policy would become much less speculative.

2. Bank compensation packages would become regulated or defined, altho the clowns at Fannie/Freddie are certainly getting a fat hog every holiday season.

3. Fiscal policy could be effected not only by Congressional spending, but by regulation of lending practices. In effect, the Congress would be competing with the Fed on monetary policy, and given the reckless nature of the Fed's actions in the last 10 years, it might be about time to have the discussion on whether we should end the Fed's existence, and if not their existence, then their monopoly over monetary policy.

4. Savers might be rewarded again. I'm sure the AARP and other seniors' groups are even now raising heck in the halls of Congress about the low rates rewarding people who actually save. This problem is a by-product of allowing the Federal Reserve sole authority over monetary policy.

Downsides:

1. America has no native class of criminals save those in Congress. You heap up a big pot of money like that and Congress is certain to become even more corrupt in pursuit of their 'share' of the money. About the only thing that would prevent this is very public disclosure of all banking activity.

2. Congress could also enact stupid lending policies as well as smart ones. There's no shortage of idiots in Congress, regardless of the party. The biggest idiots seem attracted to the Finance committees like flies are drawn to manure piles.

3. Growth and innovation will almost certainly stop - but given some of the dubious products of the last 20 years in banking, this isn't a wholly bad thing. It might, however, be non-competitive with what happens in banks in Europe and off-shore.

4. You will have absolutely no banking privacy whatsoever. Congress will take it upon themselves to know everywhere you've moved any money, with or without an open investigation. Remember the "Know your Customer" policy proposal of the Clinton administration? The standard greeting at your bank will change from "How can we help you today?" to "Turn your head and cough!"

5. I expect that there would be no common or preferred stock in banks that are nationalized. This has more consequences for the people who like dividend/interest income, again, retirees. The financial sector had been known for their fat yields in good times and bad. Nationalization will probably completely extirpate these yields, and the cash streams that would have been thrown off in yields will be turned back inwards to the banks' balance sheets and providing some restitution to the taxpayers.