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 ...
Just say no. 100 percent unconstitutional.
In a sane world, this would be satire.
Unvarnished tyranny.
Un-freaking believable.
Ayn Rand was a prophet.........................
Police State!
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?
"Public private partnership" indeed. Like when the Mafia "partnered" with a store owner for his own "protection."
Ant to think that we have slighly under 8 years of this to endure.
Let the cheering of The People begin? Hugo Obama! Hugo Obama! Hugo Obama!
I just received the audiobook for listening on the road. I gotta get listening!
Bankruptcy sound like the solution, not something to be avoided.
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.
Which means it stands a better than average chance of making through congress and into to law.
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?
In the immortal words of Joe Biden- gird your loins.
Please tell me this is a bad joke...
Of course... “sigh” ....off to the gun shop again.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.