It's what Obama wants, can you believe it? I thought dictatorship was Bush's shtick.
Also see: FDIC Preparing For Massive Bank Failures
"Regulator: 'Too big to fail' policy must cease; Congress reviews financial oversight" by Associated Press | March 20, 2009
WASHINGTON - Giving the government new powers to seize big troubled companies became the focus of debate in Congress yesterday as lawmakers and the administration begin efforts to overhaul the nation's financial rule book.
The head of the Federal Deposit Insurance Corp. said the government's strategy of bailing out huge institutions deemed "too big to fail" must be replaced. FDIC chairwoman Sheila Bair called for a system of supervision that prevents institutions from taking on excessive risk and becoming so large their failure would threaten the financial system. A mechanism is needed to resolve troubled financial institutions similar to what the FDIC does with federally insured banks and thrifts, she said....
The committee's chairman, Senator Christopher Dodd, Democrat of Connecticut, said possibly the most important lesson to take from the financial crisis is that "no institution should ever be 'too big to fail.' "
Related: Dodd Deleted AIG Restrictions
Dodd suggested it could make sense to give the FDIC authority to take over and resolve big institutions whose collapse would threaten the financial system.
Translation: It would make sense for the government -- meaning YOU, TAXPAYER -- to be the "lever' by which all banks, etc, will be insured. Of course, no one is insuring you, taxpayer, but no one down there cares about you anyway -- least of all Dodd! I didn't write him a campaign check like AIG did.
President Obama said Wednesday his administration soon will propose new financial industry oversight that includes a resolution authority with powers similar to those of the FDIC, which can seize control of banks, take over their bad assets, and sell the good ones to competitors. The proposal would give the Treasury secretary the power, after consulting with the Federal Reserve, to take control of a major financial institution and run it....
And THAT, my friends -- as unfortunate as it is -- is called FASCISM!!! An UNACCOUNTABLE EXECUTIVE can DECIDE on HIS OWN -- with input from a couple of Fed hacks? I remind you, the FED and others attempting to "fix" the problem are the ONES WHO CAUSED IT (on purpose) in the FIRST PLACE!!!! Are you really THAT GULLIBLE, America?
Bair appeared with top regulators from the Fed, Treasury, and other agencies to lay out views on revamping oversight of financial institutions. The government's rescue of insurance giant American International Group, its pumping of tens of billions of dollars into Citigroup Inc. and Bank of America Corp. in more than one instance, and other actions in the crisis have put a "too big to fail" stamp on US policy.
Also looming in the debate is deep congressional and public outrage over millions in bonuses paid to employees by embattled AIG, which has received $182 billion in federal bailout money. The Democratic-led House yesterday overwhelmingly approved a bill to slap punishing taxes on big bonuses from AIG and other firms bailed out by taxpayers.
You know, the MSM mentions this aspect of the bailout in so many different articles that I am beginning to believe these guys and their millions-dollar bonuses are sacrificial sheep for Amurkn anger to take or minds of the larger, TRILLION-DOLLAR LOOTINGS by the war-profiteers and bankers.
And that tax ain't going nowhere, Jack!
If an agency with resolution authority had been operating, it would have been able to block the bonus payments by AIG, regulators said at the hearing.
Horse already out that barn. If! What bull! They could have kept the provision errand boy Dodd deleted if this news report was serious.