Obama Administration Seeks Power To Seize Financial Firms

[FrenchieCat]

This gives the powers to nationalize without calling it that,
but not just for banks, which is all that can be nationalized at the moment.
but for Insurance Companies (AIG) and Hedge Funds, which right now cannot.

U.S. Seeks Expanded Power to Seize Firms
Goal Is to Limit Risk to Broader Economy

By Binyamin Appelbaum and David Cho
Washington Post Staff Writers
Tuesday, March 24, 2009; Page A01

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.
http://www.washingtonpost.com/wp-dyn/content/article/2009/03/23/AR2009032302830.html?hpid=topnews

[billyoc]

1. The FDIC does this every Friday, so it shouldn't come as that much of a shock.

Though I'm sure Fox will spin it as the second coming of Hugo Chavez. :eyes:

[FrenchieCat]

2. Yes, that's what I fear.

But you saw the national review covers, right?

APRIL 2009




MARCH 2009

[billyoc]

3. I know! Consecutive months, even.

:rofl:

This works out great for Gibbs, he can now say, "Oh, for Pete's sake, which is it?". :evilgrin:

[FrenchieCat]

4. Read about Wall Street holding OBama hostage?

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=5319272&mesg_id=5319272

He talked about that in a town hall.
Guess he meant it more literally than we had imagined! :wow:

[billyoc]

5. I have the feeling Obama knows exactly what he's doing,

and he saw all of this coming from a long way off. ;)

[FrenchieCat]

6. Maybe there's a reason we got us a bonus story????

Who knows?

[billyoc]

7. Yeah, no telling. I firmly believe that Obama's budget team knows exactly what they'll have to trim

to get the budget to pass. I know to a certainty that the budget will pass, though.

[FrenchieCat]

8. With the 650 billion for health care penciled in?

I pray so!

[billyoc]

9. A good example. The budget team may have determined that they need $580 billion for that.

So they shoot for $650, and end up with $615. They know more about it than I ever will.

[Adelante]

11. He sure has them confused

:D

[Political Heretic]

10. Well this is fracking fascinating....

...reading....

LOL like drudge "Developing....."

Oh crap I just compared myself to drudge :cry:

[Jennicut]

12. Its kind of obvious Obama has to go around the big corps and the media

without saying nationalization. Its just sort of snuck in there, isn't it? Of course, CNN went on all morning about how this is unprecedented unlimited power. Oh noes!