That's right, Obama wants to start nationalizing companies. First wreck the economy with massive spending and taxation, and then nationalize the victims of Obama's own economic planning. It seems unbelievable until you consider his background.
"True, there are cases in which nationalization is bad, but there are, likewise, quite a few benefits to be derived from it. " ~ Barak Obama Sr.
WaPo-The Obama administration is considering asking 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,
according to an administration document.
...giving tax cheat Tim Geithner of all people the power to confiscate privately owned businesses.
The government at present has the authority to seize only banks.
Giving the Treasury secretary authority over a broader range of
companies would mark a significant shift from the existing model of
financial regulation, which relies on independent agencies that are
shielded from the political process. The Treasury secretary, a member
of the president's Cabinet, would exercise the new powers in
consultation with the White House, the Federal Reserve and other
regulators, according to the document.
The administration plans to send legislation to Capitol Hill this
week. Sources cautioned that the details, including the Treasury's
role, are still in flux.
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 Investment 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 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.
Besides seizing a company outright, the document states, the
Treasury Secretary could use a range of tools to prevent its collapse,
such as guaranteeing losses, buying assets or taking a partial
ownership stake. Such authority also would allow the government to
break contracts, such as the agreements to pay $165 million in bonuses
to employees of AIG's most troubled unit.
The Treasury secretary could act only after consulting with the
president and getting a recommendation from two-thirds of the Federal
Reserve Board, according to the plan.
Geithner plans to lay out the administration's broader strategy for
overhauling financial regulation at another hearing on Thursday.
The authority to seize non-bank financial firms has emerged as a
priority for the administration after the failure of investment house Lehman Brothers, which was not a traditional bank, and the troubled rescue of AIG.
"We're very late in doing this, but we've got to move quickly to try
and do this because, again, it's a necessary thing for any government
to have a broader range of tools for dealing with these kinds of
things, so you can protect the economy from the kind of risks posed by
institutions that get to the point where they're systemic," Geithner
said last night at a forum held by the Wall Street Journal.
The powers would parallel the government's existing authority over
banks, which are exercised by banking regulatory agencies in
conjunction with the Federal Deposit Insurance Corp. Geithner has cited
that structure as the model for the government's plans.
Let's review, Ex1, Ex2, Ex3.
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