Obama Administration Sending Draft Legislation to Hill to Give Treasury More Power

ABC News ^ | 3/25/09 | Jake Tapper

[elc]

Treasury Secretary Tim Geithner hopes to today send draft legislation of a bill to Capitol Hill that will give him more power to take over large financial institutions in serious trouble. The government currently has this authority with banks, but not with other financial institutions such as bank and thrift holding companies, or with holding companies that control insurance companies, futures commission merchants, and broker-dealers.

The draft legislation will -- likely later today -- be sent to Sen. Chris Dodd, D-Conn., chair of the Senate Banking Committee and Rep. Barney Frank, D-Mass., chair of the House Financial Services Committee.

As written, the bill would give the Treasury Department what's called "resolution authority," granting the U.S. government the authority to put a big financial company into receivership or conservatorship. With that authority, the government can either reorganize or shut down the company -- renegotiating or reneging on contracts (such as retention bonuses for AIG executives), transferring the company's assets and liabilities, and dealing with any derivatives portfolio.

One possible sticking point: President Obama and Secretary Geithner are seeking sole authority be given to the executive branch to put these companies into conservatorship or receivership. The legislation as written would give the decision making power to the Treasury Secretary and the chair of the Federal Deposit Insurance Corporation (FDIC), though the decision would be "informed" by the advice of the chair of the Federal Reserve Board and any other relevant regulatory agency.

[catnipman]

This proposal for confiscating private enterprises is a disingenuous response to the current economic problems, as the Federal government already has the tools it needs to deal with major financial companies on the verge of bankruptcy. After all, the only thing propping up these near-bankrupt financial institutions is government (taxpayer) largess. These Treasury department loans/gifts could simply be conditioned upon the receiver being forced to undertake Chapter 11 or (even better) Chapter 7 bankruptcy, wherein the government agrees to unwind the business, backing those obligations critical for avoiding a further collapse of other companies, while discarding the rest.

The U.S. government could have done this in the recent past, and could still do it today. The U.S. government does not need additional powers. Either these people are stupid or they simply are “not wasting a good crisis” to further Federalize private enterprise, which is perhaps the only solution they understand for such problems, given their background and mindset.

[Clintonfatigued]

Libertarian ping

[ding_dong_daddy_from_dumas]

After Oil/Energy then it’s on to the Healthcare sector-the evil money making doctors and the hospitals too big to fail...

If the leftists succeed in destroying oil and energy producers, it may not matter after that. LA, TX, and OK voted against Obama in 2008 and have 5 out of 6 R senators. Since the leftists seem to approve of using taxes to destroy people they don't like, why not destroy the economies of those 3 states?

[RVN Airplane Driver]

If the leftists succeed in destroying oil and energy producers, it may not matter after that. LA, TX, and OK voted against Obama in 2008 and have 5 out of 6 R senators. Since the leftists seem to approve of using taxes to destroy people they don't like, why not destroy the economies of those 3 states?

Those 3 states could make a nice country that would be energy independent!

[ding_dong_daddy_from_dumas]

They are turning the job of United States Treasurer into National Investment Banker.

Cartoon from Sept. 2008 (yes, GW Bush too):

[ding_dong_daddy_from_dumas]

I think the Czech prime minister said it all last night!

EU presidency: US economic plans 'a road to hell' (Czech Prime Minister Mirek Topolanek)

[TADSLOS]

This is really gonna piss Chavez off. Obama is tryin’ to steal his mojo.

[potlatch]

Excellent post devolve.

[ex-Texan]

One Small Problem With Geithner's Plan: It Will Bankrupt The Banks !

Of course, this what Geithner's controllers really desire want the most. They want all American banks to fail. Hard to believe? Not if you understand who is calling all the shots.

It is the same evil cabal that nearly destroyed the U.S. economy in the past six months. The same people who gave orders to GWB are giving orders to Obama.

Who are these people that give the orders to Presidents and Treasury Officials ________ ? Hint: Check the wall paper.

Time for all Americans to go to war against the people behind the economic crash:

Bilderbergers,

Trilateral Commission,

> Council on Foreign Relations,

Bohemian Grove Satanic Idol worshipers

World Trader Globalists, NAFTA Supporters, CAFTA Traitors

And other power hungry elitists.

just for starters.

LOL, LOL !

[Force of Truth]

Funny thing is, noone is willing to enforce our laws. The dictatorship continues.

[mojitojoe]

http://www.youtube.com/watch?v=T5UqOOHlfEE

[mojitojoe]

http://www.youtube.com/watch?v=Oj36ydRKQzI

[lonestar]

It’s fast approaching a dictatorship. Obama and crew is nationalizing the banks and the next industry I see coming is the Oil Companys.

Maxine Waters already announced that.

[devolve]

.

Thanks potlatch

[anniegetyourgun]

Start? We’ve been calling for months....and they march on....no one there is listening.

[holden]

Of course the democraps don't care about preserving the Constitution. They're not only getting by with this disallowed exception, but they're helping to make the Constitution in its entirety ineffectual, which in itself should be sufficient grounds for impeachment. That is, they both know it's anti-Constitutional and will nonetheless abuse it this way for the benefit to themselves of destroying the economic system of our country, putting people in fear of their power, and destroying their enemies and people whom their constituencies can be gulled into hating by their stoked class envy and warfare.

HF

[BlackjackPershing]

This is unconstitutional...lawsuits need to be prepared now to fight any action taken to block this measure. God forbid, Alexander Hamilton is rolling in his grave...the socialists are destorying the model banking system he set in motion that has been the engine of capitalism for over 200 years.

[dr_who]

Hold the fort!

[KTM rider]

intentional

does this include the private financial company known as the federal reserve ?

dint think so

'

I guess only American Companys

[kickonly88]

When those people tell you this is not what I voted for tell them ‘yes it is’. Obama said what he wanted to do but people weren’t listening.