Geithner Seeks Power to Seize Imperiled Firms
Treasury secretary Timothy Geithner asked Congress Tuesday to give the White House unprecedented powers to seize large insurers, investment firms and hedge funds, leaping beyond its present authority to seize only banks.Doesn’t this reek of everything our founding fathers were trying to prevent?
Geithner argued for such authority during the House Financial Services Committee's hearing on the handling of bonuses paid to executives at American International Group.
"As we have seen with AIG, distress at large, interconnected, non-depository financial institutions can pose systematic risks just as distress at banks can. The administration proposes legislation to give the U.S. government the same basic set of tools for addressing financial distress at non-banks as it has in the bank context," Geithner told the committee.
"It will not be denied that power is of an encroaching nature and that it ought to be effectually restrained from passing the limits assigned to it. After discriminating, therefore, in theory, the several classes of power, as they may in their nature be legislative, executive, or judiciary, the next and most difficult task is to provide some practical security for each, against the invasion of the others."
--James Madison, Federalist No. 48
Go read the Federalist Papers!
The founding father have got to spinning in their graves! Has anyone in D.C. read the constitution? This is NOT what government was established to do! I wish they would go back to their ivory towers in the ivy league academia where they would do no harm and let people who actually produce for a living straighten this mess out. Let some of these places fail, get the bloodletting over with and move on! Ugh!