Another Small Step For Man; A Giant Leap To Socialism

By Bill ~ October 27th, 2009 @ 8:59 pm

In yet another power grab, the Obama administration and Barney Frank unveiled legislation on Tuesday to give the government broad new powers to shift the cost of rescues of big, troubled financial institutions from taxpayers to other large companies. The legislation, drafted jointly by Treasury officials and Representative Barney Frank, the head of the House Financial Services Committee, would create a special fund, paid by assessments on financial companies (This is a tax) with more than $10 billion in assets, to bear the costs of big firms that fail.

The measure, directed at institutions whose troubles might pose risks to the financial system, would create a powerful financial services oversight council, led by the Treasury secretary and composed of top regulators, to set policy and tougher regulations for the largest companies and mediate disputes between federal agencies. It would also give the Fed a lead role in directly supervising many of the largest financial conglomerates.

The legislation would permit the government to impose tough new capital requirements on the largest companies as well as take them over, making their shares virtually worthless, and remove management when they fail. It would provide new authority for the FDIC, which seizes weak commercial banks, to take over other large failing financial institutions like insurance companies or hedge funds.

Under the proposal, future rescues of large institutions would be paid for by other big firms. The proposal says that any financial company with assets of more than $10 billion would have to contribute to the rescue of a failed firm. The legislation emerged after community banks lobbied to ensure that small institutions would not have to pay for future bailouts.

What we have is another move to give the government even more power to assess taxes on companies in the financial business, with the Fed supervising. The legislation would allow to government to impose restrictions on these companies or seize control of them. It also will force successful companies to pay to bail out their failed competitors. Look out because I believe the next generation of this bill will expand its coverage to other industries.

These people must be removed from power in the next election. Remember, a vote for a Democrat in 2010 is a vote for Pelosi and Reid.