But today, the federal government literally owns banks, the largest insurance company in the United States.
Words have meanings, and apparently Bachmann doesn't know the definitions of the word "own", "bank", or "insurance company" — it's hard to tell exactly which (perhaps all three!!)
And she definitely doesn't know the meaning of the word "literally".
The only thing that she could possibly be referring to is the Federal Reserve, although that's not really a bank, much less "banks" plural. Also, it's been around since the early 20th century.
Now, as a result of the TARP bailouts, the federal government certain owns a stake in banks, but it's not very much — 6 percent of Bank of America and 7.8 percent of Citigroup as of early 2009, for example. But this is a good thing — it's making money for the federal government and lowering taxpayer burden.
Bachmann went on to say stupider things, but Think Progress has it covered.