Down the Rabbit Hole or Low down on the Financial Bill
Posted April 28, 2010on:
Thanks to a fellow blogger and Greensboro friend Bubba for this post. BB
Here are some of the “highlights”:
• Authorize the Federal Deposit Insurance Corporation, Federal Reserve, and the Treasury
Secretary to put into receivership any company that is deemed to be in danger of default that is
“substantially engaged in activities… that are financial in nature.”
• Authorize the Federal Reserve and Treasury Secretary the power to define what constitutes
• Authorize the Federal Reserve to declare any company or institution a “non-bank financial
company” subject to seizure under the “orderly liquidation fund.”
• Authorize the FDIC to issue securities to be sold to the Treasury Secretary of seized firms, and
the Secretary to keep or sell those securities.
• Authorize the FDIC to levy assessments on about 60 bank holding and insurance companies
totaling $50 billion or more in consolidated assets to finance the revolving $50 billion “orderly
• Have no limit on how much money could flow through the “orderly liquidation fund” in total.
• Require no Congressional authorization for firms to be seized, the funds to be spent, or new
assessments to be levied by the FDIC to replenish the fund.
• Would shield from judicial review any government seizure of a company: “no court shall have
jurisdiction over… any claim or action for payment from, or any action seeking a determination
of rights with respect to, the assets of any covered financial company for which the Corporation
has been appointed receiver.”
Read the whole thing.
When do we put a stop to this sort of thing?