From WaPo ...

Explicit nationalization of financial companies has little support among key Obama officials, sources said. Treasury Secretary Timothy F. Geithner and top White House economic advisor Lawrence Summers believe governments make poor bank managers and cannot efficiently manage a vast number of institutions, according to some of their associates.

Taking over a substantial portion of a bank's stock and wiping out the investment of the firm's other shareholders could also precipitate a sell-off across the banking system as investors flee, fearing they could be next.

The gist of the rest of the article is that the Obama folks aren't going to go clearly in any of the widely discussed options, but rather mix and match. But these two points, tucked in at the end of the article, tell us the key points.