"Equally uncertain are the extent and character of the more restrictive standards that may be imposed to bind the size or activities of a systemically-significant firm; there are no clear limits on the degree of government intervention that could be expected. ... I do not welcome the prospect of such unbounded power, even if exercised with the best of intentions. It would inject too much uncertainty into the system and aggregate government authority to a worrisome degree."
-SEC Commissioner Troy Paredes on the Democrats' financial reform bill |
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A closer look at the financial reform bill... | |
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The Senate is planning to take up the Democrats' 1,408 page financial reform bill on Thursday. How many Senators do you think have taken time to read the bill in its entirety?
A few things you should know about this bill...
Sen. Dodd's bill creates a Financial Stability Oversight Council (FSOC)-made up of representatives from the Treasury Department, the Federal Reserve, the CFTC, FDIC, and SEC. With a 2/3 vote of the FSOC, this body could determine any business is "systemically significant" (too big to fail) which would allow the FDIC and Treasury Secretary to treat the companies' shareholders and creditors as they choose; including forcing firms to break up, stop selling certain products, or forcing them to go out of business. This council creates even more federal regulators with unbridled power to interfere with any business that they choose to declare a risk. ( GOP Leader 4/19/20)
The bill also gives the largest financial institutions access to a "pre-existing" $50 billion fund that would serve as bailout money for "too big to fail" firms.
The bill also provides a Treasury backed credit line which would enable the FDIC to borrow from Treasury up to the amount of cash in the bailout fund in addition to 90% of the value of the assets of any and all "systemically significant" firms under their control.
The bill also provides government guaranteed debt through allowing the FDIC to guarantee debt of any "solvent bank, bank holding company, or affiliate in any amount" which will only be subject to an aggregate debt limit set by Treasury. ( GOP Leader 4/20/10)
The Democrats' bill makes federal bailouts a permanent option for Wall Street. It also gives federal bureaucrats unlimited ability to interfere in the private sector.
Click here to read the House Republican's plan for financial reform.
Make your voice heard.
Contact your Representative and Senator TODAY! |
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Talking Points on the Financial Reform Bill | |
 No More Bailouts. Ensuring taxpayers are never again asked to pick up the tab for bad bets on Wall Street while some creditors and counterparties of failed firms are made whole.
Ending the Government's Practice of Picking Winners and Losers. Insolvent firms will be permitted to fail rather then become wards of the state.
Restore Market Discipline. Financial firms must understand there will be consequences for imprudent business decisions.
Talking Points from the House Committee on Financial Services Republicans Regulatory Reform Plan |
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On the Hill | |
This morning, President Obama met with key Senate Democrats and Republicans to discuss the Supreme Court seat that will be vacant once Justice John Paul Stevens retires. President Obama hopes to have a nominee selected by the end of May.
President Obama has announced he will travel to NYC to give a speech at the Cooper Union to pitch the Democrats' sweeping financial reform package.
Senate Budget Chairman Kent Conrad (D-ND) will begin mark ups on the FY 2011 budget on Wed. and Thurs.
The Senate voted to move forward on the nomination of Lael Brainard as undersecretary for the Treasury Dept.
According to House Majority Leader Steny Hoyer (D-MD), the DC Voting Rights Bill will most likely not be considered during this session.
The Office of Congressional Ethics has opened 48 inquiries to date in the 111th Congress. This means about 11% of the House membership has been under review. |
