And So I Go: Yesterday, Today and Tomorrow

Down the Rabbit Hole or Low down on the Financial Bill

Posted on: April 28, 2010

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

“financial” activities.

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

liquidation fund.”

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?

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