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Federal Lawsuit Filed to Stop AIG Bailout
We The People Foundation For Constitutional Education, Inc. ^ | September 18, 2008 | staff

Posted on 09/19/2008 6:57:50 AM PDT by kellynla

Queensbury, NY -- On the day following the 221st anniversary of the signing of the U.S. Constitution, WTP Chairman and constitutional activist Robert Schulz today filed a federal lawsuit in United States District Court in Albany seeking to halt the execution of the emergency bailout of American International Group, Inc. (AIG) by the United States Government and the Federal Reserve.

The lawsuit asserts that the commitment of public funds and credit for the direct benefit of privately owned AIG is an ultra vires action by the United States Government and Federal Reserve, i.e., beyond the limited legal authority granted by the Constitution. The lawsuit asks for a "show cause" hearing demanding that the Government produce evidence of its legal authority to commit public funds for such a purpose, as well as emergency and permanent injunctions halting the bailout transaction.

According to available information regarding the transaction, the Federal Reserve will loan AIG $85 billion dollars to stabilize its financial crisis, in effect, using taxpayer money to fund the loan. In consideration of taxpayer financing of the private bailout, the U.S. will receive stock warrants for 79.9% of AIG stock.

(Excerpt) Read more at wethepeoplefoundation.org ...


TOPICS: Business/Economy; Constitution/Conservatism; Extended News; Front Page News; Government
KEYWORDS: aig; bailour; constitution; economicpolicy; economy; govwatch; judiciary; lawsuit; lp
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1 posted on 09/19/2008 6:57:51 AM PDT by kellynla
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To: kellynla
Why stop at the AIG bailout?

ML/NJ

2 posted on 09/19/2008 7:00:10 AM PDT by ml/nj
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To: kellynla

I agree with the lawsuit.


3 posted on 09/19/2008 7:00:46 AM PDT by mountaineer1997
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To: kellynla

Yes!


4 posted on 09/19/2008 7:01:21 AM PDT by NoGrayZone (Michelle Obama...Queen of the Damned (courtesy of CougarGA7))
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To: kellynla

Praise God.


5 posted on 09/19/2008 7:02:01 AM PDT by yldstrk (My heros have always been cowboys--Reagan and Bush)
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To: kellynla

Does anyone know the event/sell/call/put that began this ride we’ve had? Did it start on 9/11/08? Where? How? By whom? Is Soros or friend involved?


6 posted on 09/19/2008 7:02:44 AM PDT by combat_boots (God, gun and babies. Justices, taxes and sovereignty. Otherwise known as White Trash. Count me in.)
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To: kellynla
the commitment of public funds and credit for the direct benefit of privately owned AIG is an ultra vires action by the United States Government

Of course it is.

But will any court stop it?

Doubt it.

I'm afraid we may see the anti-Constitutional reasoning be as insipid as: "The Constitution gives the Federal Government the authority to mint coinage, and since AIG deals with money therefore the Federal government has the power to buy it."

But they will probably be satisfied to continue to misapply the commerce clause.

7 posted on 09/19/2008 7:03:20 AM PDT by BenLurkin
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To: ml/nj

Because there are people out on the fringe looking for attention.


8 posted on 09/19/2008 7:03:56 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: combat_boots

Google the Community Reinvestment Act.

Democrats caused this entire mess.


9 posted on 09/19/2008 7:04:16 AM PDT by yobid (Tax me MORE so I can FEEL patriotic)
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To: combat_boots

http://www.freerepublic.com/focus/f-chat/2084993/posts


10 posted on 09/19/2008 7:05:21 AM PDT by BenLurkin
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To: yobid

I hear what you are saying, but I mean this past week. What was it?


11 posted on 09/19/2008 7:05:28 AM PDT by combat_boots (God, gun and babies. Justices, taxes and sovereignty. Otherwise known as White Trash. Count me in.)
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To: kellynla
Congress, and We the People passed the buck when they created the Fed.

Section 13. Powers of Federal Reserve Banks

3. Discounts for Individuals, Partnerships, and Corporations In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, by the affirmative vote of not less than five members, may authorize any Federal reserve bank, during such periods as the said board may determine, at rates established in accordance with the provisions of section 14, subdivision (d), of this Act, to discount for any individual, partnership, or corporation, notes, drafts, and bills of exchange when such notes, drafts, and bills of exchange are indorsed or otherwise secured to the satisfaction of the Federal Reserve bank: Provided, That before discounting any such note, draft, or bill of exchange for an individual, partnership, or corporation the Federal reserve bank shall obtain evidence that such individual, partnership, or corporation is unable to secure adequate credit accommodations from other banking institutions. All such discounts for individuals, partnerships, or corporations shall be subject to such limitations, restrictions, and regulations as the Board of Governors of the Federal Reserve System may prescribe. [12 USC 343. As added by act of July 21, 1932 (47 Stat. 715); and amended by acts of Aug. 23, 1935 (49 Stat. 714) and Dec. 19, 1991 (105 Stat. 2386.]

12 posted on 09/19/2008 7:05:46 AM PDT by BGHater (Democracy is the road to socialism.)
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To: yobid

Absolutely correct. The RATS were buying votes with the banks’ money.


13 posted on 09/19/2008 7:06:49 AM PDT by B Knotts (Calvin Coolidge Republican)
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To: kellynla

Bravo and Godspeed! Someone needs to nominate Schulz for a Profiles in Courage award.


14 posted on 09/19/2008 7:07:19 AM PDT by Melinda
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To: BenLurkin
But they will probably be satisfied to continue to misapply the commerce clause.
15 posted on 09/19/2008 7:07:34 AM PDT by Moonman62 (The issue of whether cheap labor makes America great should have been settled by the Civil War.)
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To: kellynla

“WTP Chairman and constitutional activist Robert Schulz”

Must still be shorting the market.


16 posted on 09/19/2008 7:07:41 AM PDT by edcoil
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To: mountaineer1997

I hope our share of the lawyer and court fees is going to be worth it.


17 posted on 09/19/2008 7:09:33 AM PDT by skr (I serve a risen Savior!)
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To: bamahead

May be of interest.


18 posted on 09/19/2008 7:10:01 AM PDT by KoRn (Barack Obama Must Be Stopped!!!)
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To: BenLurkin
The Constitution gives the Federal Government the authority to mint coinage

Actually the Constitution gives the Federal government the power to coin money. I.e., it has the power to stamp out little identifiable discs made from gold or from silver. It does not have the authority to stamp out coins from scrap metal and force people to treat such coins as if they had been made from money.

ML/NJ

19 posted on 09/19/2008 7:10:39 AM PDT by ml/nj
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To: combat_boots

I am a portfolio manager for a hedge fund. Soros gets way too much credit from people on our side. He isn’t as much of a bogeyman as people think, and he certainly doesn’t pull the strings on the global financial markets. Even Soros isn’t big enough to manipulate the massive global credit markets. His billions would be a drop in the bucket.


20 posted on 09/19/2008 7:11:08 AM PDT by Thane_Banquo (You can put lipstick on a donkey, but it's still just a jackass.)
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