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View Full Version : U.S. seeks expanded power to seize firms Goal is to limit risk to broader economy


PisnNapalm
03-24-2009, 01:27 PM
Ladies and gentlemen we are on the fast track toward socialism. This is the beginning. They want the power to take over companies "for the public good". That's how things will be termed.... "We're doing it for the good of the people."

Read your history....

If this doesn't just piss you right the hell off, then you need to turn in your American flag comrade.

http://www.msnbc.msn.com/id/29847658


WASHINGTON - 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.

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 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.

Two pieces to proposal
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.

Priority following failure of Lehman Brothers
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.

revefsreleets
03-24-2009, 01:35 PM
I don't necessarily have a problem with this as an EMERGENCY power, that has a sunset clause.

But as policy going forward, this is a bad idea.

I suspect they'll get this power, and the incoming Republican President in 2012 will overturn it.

SCSTILLER
03-24-2009, 01:50 PM
I don't necessarily have a problem with this as an EMERGENCY power, that has a sunset clause.

But as policy going forward, this is a bad idea.

I suspect they'll get this power, and the incoming Republican President in 2012 will overturn it.

Question is, will the damage already be done. If the government owns companies can an incoming/new president make those companies private again? I honestly don't know. I am afraid that some socialists policies might not be able to be reversed.

I for one really don't like the fact the government can swoop in and take over the company for the greater good of the people (sounds eerily familiar if you read some history books). In a capitalist economy, companies thrive and fail, always have, hopefully always still will.

PisnNapalm
03-24-2009, 04:14 PM
Think about this....

Initially it will be only to "help out" (aka bailout) a huge megacorporation that is about to fail.

Then it will be.... Well.... It would be easier to help them out if we stepped in sooner. We'll only help if the company gets in bad trouble but isn't near failure.

Still later.... Well dang it... This would be even easier if we just stepped in to "help" before the trouble got bad.

Don't you see.... It's all for the public good.

Next thing you know the government has taken over whole sectors of the economy. They will cap salaries and bonuses. They will dictate who works where, when and for how much.

Try to look ahead on where this could go. Honest to goodness this frightens me a helluva lot more than the "spending" bill and even more than the trillion dollars the Fed is going to "inject" into the economy. This could lay the ground work for socialism here in the US.

MACH1
03-24-2009, 04:22 PM
I hope the people that voted Oduma in are happy as clams right now. http://www.rr-bb.com/images/smilies/sheepaid.gif
Welcome to the Socialist Poverty States of America.

PisnNapalm
03-24-2009, 04:47 PM
I'm am so pissed off right now. I can't even think about anything else. The thought that the government can say, "We think your company is in trouble. We're going to take control." has got me absolutely enraged.

The mere thought of an American administration even proposing this idea is frightening.

WAKE THE profanityfilterprofanityfilterprofanityfilterprofa nityfilter UP PEOPLE!!! GET MAD!!! GET LOUD!!!

HometownGal
03-24-2009, 04:56 PM
I'm am so pissed off right now. I can't even think about anything else. The thought that the government can say, "We think your company is in trouble. We're going to take control." has got me absolutely enraged.

The mere thought of an American administration even proposing this idea is frightening.

WAKE THE profanityfilterprofanityfilterprofanityfilterprofa nityfilter UP PEOPLE!!! GET MAD!!! GET LOUD!!!

This is outrageous!!! :mad: :mad: :mad:

It's a freakin' travesty that those of us who clearly saw socialism coming with this bird brain and pulled the other lever will ultimately be suffering right along with those who were bamboozled by Obama and put him into office.

Change You Can Believe In. :upyours:

Well Libs - once again - what say you?

Preacher
03-24-2009, 05:09 PM
Funny how everyone was up in arms about supposed wire tapping of american conversations . . . when it was to foreign suspected terrorists...

BUT THIS?

WHere is the ACLU now? Where is the Southern Poverty Law Center now?

Please someone...

ANYONE.

MACH1
03-24-2009, 05:11 PM
http://bitsandpieces.us/wp-content/uploads/2009/01/images3-20stooges.jpg

Texasteel
03-24-2009, 05:12 PM
I don't necessarily have a problem with this as an EMERGENCY power, that has a sunset clause.

But as policy going forward, this is a bad idea.

I suspect they'll get this power, and the incoming Republican President in 2012 will overturn it.

There is no temporary emergency power in government. Once they've got it, they keep it.

PisnNapalm
03-24-2009, 05:54 PM
Funny how everyone was up in arms about supposed wire tapping of american conversations . . . when it was to foreign suspected terrorists...

BUT THIS?

WHere is the ACLU now? Where is the Southern Poverty Law Center now?

Please someone...

ANYONE.


Ummm Hello.... I don't remember discussing the wiretapping "Patriot Act" here, but I did blast it on other forums and my radio show.

It's one step away from listening to all calls and reading everyone's email. I farking hate it too.

Preacher
03-24-2009, 06:11 PM
Ummm Hello.... I don't remember discussing the wiretapping "Patriot Act" here, but I did blast it on other forums and my radio show.

It's one step away from listening to all calls and reading everyone's email. I farking hate it too.


I actually don't find it half as dangerous as this act. Mainly because for anything to be done about the wiretapping, it had to go through the courts. The tap itself didn't, but if they arrested an american citizen who was not in combat, it would have to go through the court system...
Furthermore, it was specifically limited to overseas phonecalls to known or suspected terrorists. . .

AND it was also in line with current laws, in that those actions line up with similar types of actions throughout the life of the country.

This current issue however, is ABSOLUTELY unprecedented. It is a power grab UN HEARD OF in american politics.

tony hipchest
03-24-2009, 06:25 PM
I hope the people that voted Oduma in are happy as clams right now. http://www.rr-bb.com/images/smilies/sheepaid.gif
Welcome to the Socialist Poverty States of America.

i am! whats yours is MINE! :dancing:

(so when do i get to take the MACH for a spin?) :chuckle:

so really... you guys think we shouldve let the entire banking industry and our economic backbone (which happens to be americas strength probably moreso than its military) collapse in the name of capitalism, and just sit back and hope it repairs itself?

we should rely on the greed infused private sector, which brought on this mess, to fix the problem? isnt that like hoping the tobacco companies will cure those with lung cancer? :noidea:

MACH1
03-24-2009, 07:11 PM
i am! whats yours is MINE! :dancing:

(so when do i get to take the MACH for a spin?) :chuckle:


Nevuh....http://dygytalworld.ehost-services139.com/forums/images/smilies/3gears.gif


It's not so much sitting back and watching the banks fail. Its more that the government can use the excuse in the future that they think your companies in a bad spot and come in and take over and tell you how to run your business, pay employees. Basically take it away from the owners.

PisnNapalm
03-24-2009, 08:20 PM
Preacher... As far as the courts for the wiretaps... It is a "special" court setup specifically for the purpose of approving the taps. It's a rubber stamp.

xfl2001fan
03-25-2009, 06:43 AM
i am! whats yours is MINE! :dancing:

(so when do i get to take the MACH for a spin?) :chuckle:

so really... you guys think we shouldve let the entire banking industry and our economic backbone (which happens to be americas strength probably moreso than its military) collapse in the name of capitalism, and just sit back and hope it repairs itself?

we should rely on the greed infused private sector, which brought on this mess, to fix the problem? isnt that like hoping the tobacco companies will cure those with lung cancer? :noidea:

Name on instance where Socialism (which this is a direct lead-in to) has worked in the history of mankind? Absolute power corrupts absolutely. That's been shown to be true throughout the ages. The power of America is already entirely too centralized...this will make it significantly worse.

X-Terminator
03-25-2009, 08:08 AM
i am! whats yours is MINE! :dancing:

(so when do i get to take the MACH for a spin?) :chuckle:

so really... you guys think we shouldve let the entire banking industry and our economic backbone (which happens to be americas strength probably moreso than its military) collapse in the name of capitalism, and just sit back and hope it repairs itself?

we should rely on the greed infused private sector, which brought on this mess, to fix the problem? isnt that like hoping the tobacco companies will cure those with lung cancer? :noidea:

Do you really trust the government not to abuse this kind of power? You're extremely naive if you do. It has everything to do with that, and nothing to do with wanting to see the banking industry collapse.

revefsreleets
03-25-2009, 09:50 AM
There is no temporary emergency power in government. Once they've got it, they keep it.

That's not necessarily true. We've had varying degrees of regulation over the years. There used to be NO government regulation at all. Look at welfare. It was originally designed to be temporary relief, then the liberals entrenched it as a generational entitlement to discourage the able-bodied from actually working, then it was rolled back by Clinton (one of the better initiatives of his Presidency) and now it's back to being the fatally flawed system it was never intended to be (Thanks to President Obama).

The point is, any shitty government initiative can be overturned if there is a strong-willed leader willing to do the right thing.