Posted on 10/26/2009 9:43:31 AM PDT by TigerLikesRooster
US Is Seeking Tougher Powers In Too-Big-To-Fail Legislation
Published: Monday, 26 Oct 2009 | 11:27 AM ET Text Size
By: Albert Bozzo
Senior Features Editor
The Obama administration and House Democrats have made major changes to proposed legislation giving the federal government new powers to wind down the businesses of too-big-too-fail financial firms.
The revised legislation, which is now being finalized, will be made public late today or early tomorrow, according to sources.
The key changes in what is known as resolution authority affect compensation of creditors, shareholders and management, as well as the role of the Federal Reserve in handling such too-big-to-fail cases, according to a senior Congressional staffer.
“This will be a significant shift," said the staffer.
(Excerpt) Read more at cnbc.com ...
Ping!
We don’t need special legislation. We have bankruptcy laws. If you’re bankrupt, you say so and you reorganize. Its been done a thousand times.
If they can scream “too big to fail” and garner a taxpayer bailout then they should be broken up so that threat (however trumped up by insider cronies like Paulson) no longer carries any weight.
Finance and banking are now state enterprises. Obama to emulate Chicom model.
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