The Tea Party, with overwhelming agreement from the America people, opposes any further TARP bank bailouts. But just as with the health care bill, Washington’s ruling Democrats are laughing off the Tea Party, and ignoring the American people.
President Obama’s so-called Financial Regulatory Reform bill institutionalizes permanent TARP bailout authority across the entire financial sector, indeed, for any company that can be deemed involved in financial activity of any sort. Washington is operating today as if we have been conquered by a foreign power that has suspended our democracy and doesn’t care what the American people think.
The bill led by Senate Banking Chairman Chris Dodd (D-CT) (not running for reelection), which President Obama supports, grants permanent bailout authority to the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve, and the Treasury. They are empowered to force into receivership any company they deem in danger of default that is “substantially engaged in activities… that are financial in nature.” The Federal Reserve and the Treasury would enjoy the power to define what constitutes “financial activities.” The Federal Reserve can declare any enterprise “a non-bank financial company” which can be seized and liquidated.
This takes potential bailouts and takeovers well beyond banking, even beyond the financial sector, to almost any business in the country.
A Wall Street Bailout Bill
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