On Wednesday, TurboTax Timmie and his crew are going to unveil the new financial regulation reforms that they have been talking about since he was installed as Treasury Secretary by the 111th Congress.
If, after reading the next two stories, you still think the Federal Reserve should not be abolished for being the #1 instigator in our economic woes, then I pity you and your declining standard of living.
The Federal Reserve, already arguably the most powerful agency in the U.S. government, will get sweeping new authority to regulate any company whose failure could endanger the U.S. economy and markets under the Obama administration’s regulatory overhaul plan.
Please remember that the Federal Reserve is really a banking cartel; not a government agency, that was created in 1910 on Jekyll Island by NY bankers, and our government does not instruct The Fed; the power flows the opposite direction.
The final plan due to be released on Wednesday — which originally aimed to streamline and consolidate banking and securities regulation in one or two agencies — now is expected to sidestep most jurisdictional disputes and simply impose across the board standards to be applied by all financial regulators, according to administration and industry sources.
The most likely candidate for elimination is the Office of Thrift Supervision, whose failure to detect and forestall problems at Countrywide, IndyMac, Washington Mutual and other freewheeling mortgage lenders is thought to have contributed to the financial crisis.
The decision to concentrate sweeping new powers at the already overstretched Fed is not without controversy. Sen. Christopher J. Dodd, chairman of the Committee on Banking, Housing and Urban Affairs, which must approve any regulatory overhaul, has raised objections to that approach, and so has Federal Deposit Insurance Corp. Chairman Sheila C. Bair.
Ms. Bair advocates an alternative where a council of top bank regulators would make decisions on whether to step in, regulate or close major corporations like the American International Group whose failure posed a risk to the whole economy and financial system. The Fed stepped in to save AIG last year without having such powers, but the result was a costly and muddled bailout that no one wants to repeat.
To accommodate dissenting views, the administration will propose that a council of regulators advise the Fed, although the Fed will have the final say, according to administration officials. The new powers augment the Fed’s existing broad authorities to intervene to prevent crises that could seriously damage the markets and economy.
And now for something totally expected from a banking cartel:
Bank of America’s chief executive Thursday for the first time said publicly that officials in the Bush administration and the Federal Reserve threatened to remove top executives of the bank unless the financial giant merged with the troubled Merrill Lynch for the good of the foundering economy.
Bank of America’s Kenneth Lewis told the House Oversight and Government Reform Committee that the threat was not the deciding factor in the bank’s acquisition of the nation’s largest investment banking firm. But he added: “What gave me concern was that they would make that threat to a bank in good standing.”
Ken? You are a moron! What does being a bank in good standing have to do with threats being made against a private company in a country that has as it’s basis, the Constitution and the Rule Of Law?
The testimony came as the No. 2 Republican in the House said President Obama’s handling of the auto company bailouts was comparable to the strong-arm tactics of Russian Prime Minister Vladimir Putin.
If you have not thrown your support behind Ron Paul and H.R. 1207, now might be a good time before The Fed becomes tired of being a shadow chess player and just strangles the economy and country into submission.