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Obama Administration Sending Draft Legislation to Hill to Give Treasury More Power
ABC News ^
| 3/25/09
| Jake Tapper
Posted on 03/25/2009 7:47:25 AM PDT by 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.
(Excerpt) Read more at blogs.abcnews.com ...
TOPICS: Breaking News; Constitution/Conservatism; Government; News/Current Events
KEYWORDS: geithner
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To: elc
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.
61
posted on
03/25/2009 1:07:22 PM PDT
by
catnipman
(If the only tool you understand is a hammer, all problems are treated like nails)
To: El Gringo
62
posted on
03/25/2009 1:07:59 PM PDT
by
Clintonfatigued
(Being condemned for corruption by Mexico is like being lectured on morals by the adult film industy)
To: homegroan
After Oil/Energy then its 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?
63
posted on
03/25/2009 1:17:25 PM PDT
by
ding_dong_daddy_from_dumas
(I want to "Buy American" but the only things for sale made in the USA are politicians)
To: ding_dong_daddy_from_dumas
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!
64
posted on
03/25/2009 1:23:33 PM PDT
by
RVN Airplane Driver
("To be born into freedom is an accident; to die in freedom is an obligation..)
To: April Lexington
They are turning the job of United States Treasurer into National Investment Banker.Cartoon from Sept. 2008 (yes, GW Bush too):
65
posted on
03/25/2009 1:25:57 PM PDT
by
ding_dong_daddy_from_dumas
(I want to "Buy American" but the only things for sale made in the USA are politicians)
To: April Lexington
66
posted on
03/25/2009 1:58:37 PM PDT
by
ding_dong_daddy_from_dumas
(I want to "Buy American" but the only things for sale made in the USA are politicians)
To: ding_dong_daddy_from_dumas
This is really gonna piss Chavez off. Obama is tryin’ to steal his mojo.
67
posted on
03/25/2009 2:02:36 PM PDT
by
TADSLOS
( Join the Conservative Revolution! http://falconparty.com/)
To: devolve
68
posted on
03/25/2009 2:53:43 PM PDT
by
potlatch
To: elc; TigerLikesRooster; M. Espinola; All
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 !
69
posted on
03/25/2009 3:18:40 PM PDT
by
ex-Texan
(Ecclesiastes 5:10 - 20)
To: elc
Funny thing is, noone is willing to enforce our laws. The dictatorship continues.
70
posted on
03/25/2009 3:41:58 PM PDT
by
Force of Truth
(Sarah Palin in 2012!!!!!! WOOOHOOOOO!!!!!!!!!)
To: elc
71
posted on
03/25/2009 3:45:03 PM PDT
by
mojitojoe
( Idiots elected a Marxist ideologue with narcissistic personality disorder & America is dying.)
To: elc
72
posted on
03/25/2009 4:01:45 PM PDT
by
mojitojoe
( Idiots elected a Marxist ideologue with narcissistic personality disorder & America is dying.)
To: RC2
Its 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.
73
posted on
03/25/2009 4:13:17 PM PDT
by
lonestar
(Obama has turned a crisis into a catastrophe.)
To: potlatch
74
posted on
03/25/2009 4:28:38 PM PDT
by
devolve
(-- "... my Muslim faith....." ABC-TV with Steffi --)
To: ExTexasRedhead
Start? We’ve been calling for months....and they march on....no one there is listening.
To: indylindy
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
76
posted on
03/25/2009 5:45:39 PM PDT
by
holden
To: elc
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.
77
posted on
03/25/2009 7:04:40 PM PDT
by
BlackjackPershing
("An appeaser is one who feeds a crocodile, hoping it will eat him last." Winston Churchill)
To: elc
Hold the fort!
78
posted on
03/25/2009 10:30:20 PM PDT
by
dr_who
To: autumnraine
intentional
does this include the private financial company known as the federal reserve ?
dint think so
'
I guess only American Companys
79
posted on
03/25/2009 11:02:25 PM PDT
by
KTM rider
(the War On Terror has been superceeded by the War On Capitalism)
To: Free America52
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.
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