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Washington Post: Geithner to Ask Congress for Broad Power to Seize Firms
Washington Post ^ | March 24,2009 | Binyamin Appelbaum, David Cho and Debbi Wilgoren

Posted on 03/24/2009 5:42:08 AM PDT by SeekAndFind

The Obama administration will ask Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, White House spokesman Robert Gibbs said this morning.

Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill about the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials have said that the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.

The government at present has the authority to seize only banks.

Geithner will testify alongside Federal Reserve Chairman Ben Bernanke at a hearing before the House Financial Services Committee that begins at 10 a.m. Although the stated focus of the hearing is the controversial bonus payments AIG awarded its employees after receiving the government bailout, Geithner will try to advance the argument that the government needs more tools in its arsenal in order to right the nation's economic ship. ad_icon

"We need resolution authority to go in and be able to change contracts, be able to change the business model, unwind what doesn't work," Gibbs said on CNN in one of several morning television interviews aimed at promoting the administration proposal. " . . . This is the exact type of authority that will allow us to deal with the problems in AIG . . . that will address the systemic risk without having to put [a failing firm] in bankruptcy."

(Excerpt) Read more at washingtonpost.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: bho2009; bho44; bhotreasury; democratcongress; democrats; economy; financialcrisis; first100days; geithner; powergrab; stimulus
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1 posted on 03/24/2009 5:42:09 AM PDT by SeekAndFind
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To: SeekAndFind

Just say no. 100 percent unconstitutional.


2 posted on 03/24/2009 5:43:25 AM PDT by chpmass
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To: SeekAndFind

In a sane world, this would be satire.


3 posted on 03/24/2009 5:44:39 AM PDT by Servant of the Cross (the Truth will set you free)
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To: SeekAndFind

Unvarnished tyranny.


4 posted on 03/24/2009 5:44:40 AM PDT by NoControllingLegalAuthority
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To: SeekAndFind

Un-freaking believable.


5 posted on 03/24/2009 5:44:51 AM PDT by rightwingintelligentsia (Where do I sign up for jewelry stamps?)
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To: SeekAndFind

Ayn Rand was a prophet.........................


6 posted on 03/24/2009 5:45:17 AM PDT by Red Badger (0bama: I'm not a socialist......................(I'm a Trotskyite)...............)
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To: SeekAndFind
Washington Post: Geithner to Ask Congress for Broad Power to Seize Firms

Police State!

7 posted on 03/24/2009 5:45:30 AM PDT by The Sons of Liberty (Just your average Whitey clinging to my guns and religion! FUBO Kenyan Usurper- baby killing muslim)
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To: SeekAndFind

I wouldn’t want Geithner to have access to my kids’ piggy bank, much less ANY COMPANY HE and the bolsheviks in the White House and democrat congress CHOOSE.

Where does the US Constitutution give a US Treasury Secretary power to seize private property?


8 posted on 03/24/2009 5:45:32 AM PDT by silverleaf (Freedom's just another word for "nothing left to lose")
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To: SeekAndFind; rabscuttle385; TigerLikesRooster; dennisw
We are officially a fascist kleptocracy now.

"Public private partnership" indeed. Like when the Mafia "partnered" with a store owner for his own "protection."

9 posted on 03/24/2009 5:45:39 AM PDT by Travis McGee (www.EnemiesForeignAndDomestic.com)
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To: SeekAndFind

Ant to think that we have slighly under 8 years of this to endure.


10 posted on 03/24/2009 5:45:43 AM PDT by stevecmd
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To: chpmass

Let the cheering of The People begin? Hugo Obama! Hugo Obama! Hugo Obama!


11 posted on 03/24/2009 5:46:05 AM PDT by paguch
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To: Red Badger

I just received the audiobook for listening on the road. I gotta get listening!


12 posted on 03/24/2009 5:46:42 AM PDT by alice_in_bubbaland (Markets and Marxists Don't Mix! Let the Revolution Commence!!!)
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To: SeekAndFind

Bankruptcy sound like the solution, not something to be avoided.


13 posted on 03/24/2009 5:48:32 AM PDT by listenhillary (Rahm Emmanuel slip - A crisis is a terrible thing to waste.)
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To: chpmass

Here is the rationale :

The administration’s proposal contains two pieces. First, it would empower a government agency to take on the new role of systemic risk regulator with broad oversight of any and all financial firms whose failure could disrupt the broader economy. The Federal Reserve is widely considered to be the leading candidate for this assignment. But some critics warn that this could conflict with the Fed’s other responsibilities, particularly its control over monetary policy.

The government also would assume the authority to seize such firms if they totter toward failure.

Please note, folks, that this is just a proposal.


14 posted on 03/24/2009 5:48:36 AM PDT by SeekAndFind
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To: chpmass
100 percent unconstitutional.

Which means it stands a better than average chance of making through congress and into to law.

15 posted on 03/24/2009 5:48:38 AM PDT by WorkerbeeCitizen (The only time I want a Republican reaching across the aisle is to smack a liberal.)
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To: SeekAndFind
"We need resolution authority to go in and be able to change contracts"
and that my friends is why the world will pull away from doing business with the USA. We are no longer a nation of law, but of crisis. Would you call a business partner who took you money and then changed the rules after the game started- a partner of "full faith and credit"? There are more ethical business partners in Nigeria.
16 posted on 03/24/2009 5:49:21 AM PDT by silverleaf (Freedom's just another word for "nothing left to lose")
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To: SeekAndFind

This will bolster confidence in the business world. AIG is done. Who in his right mind would enter into a contract with an entity which would be free to change the terms anytime it sees fit?


17 posted on 03/24/2009 5:49:50 AM PDT by CASchack
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To: Bahbah; Miss Didi; STARWISE; holdonnow

In the immortal words of Joe Biden- gird your loins.


18 posted on 03/24/2009 5:49:53 AM PDT by SE Mom (Proud mom of an Iraq war combat vet)
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To: SeekAndFind

Please tell me this is a bad joke...


19 posted on 03/24/2009 5:50:23 AM PDT by pgkdan ( I miss Ronald Reagan!)
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To: SeekAndFind

Of course... “sigh” ....off to the gun shop again.


20 posted on 03/24/2009 5:50:28 AM PDT by AJMCQ (Who is Khalid al-Mansour? You mean Obama didn't get into Harvard on his grades?)
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