Skip to comments.Finance Talks Hit Thorny Issues (Govt takeover of failed firms)
Posted on 10/27/2009 9:21:22 AM PDT by markomalley
House lawmakers this week are set to tackle some of the thorniest issues in the effort to overhaul financial rules, including how to take over large companies whose failure could threaten the economy and what role the Federal Reserve should have in policing markets' health.
House Financial Services Committee Chairman Barney Frank (D., Mass.) could release early this week draft legislation -- comprising several complementary bills -- with potentially broad implications over financial regulations, congressional aides said.
The legislation could direct the government to wipe out shareholders of any institution taken over by the government, and give it the option of lending to a failing institution, said the aides and others familiar with the draft measure. It could also place new limits on capital and debt at large financial institutions.
Democrats are seeking to overhaul supervision of financial markets in response to the recent financial crisis. They argue that the government needs new powers to prevent future market crises and to deal with companies perceived to be too big to fail.
(Excerpt) Read more at online.wsj.com ...
yeah, really. what’s the difference between that and the wipeout of shareholders wealth in the Enron case? Enron execs were considered criminally liable for doing this.
How many pensions are invested in shares of companies all over the USA landscape?
The moves of this administration will destroy all pensions- even your private 401k’s.
If you want the stock market to come back- how can you wipe out shareholders? The bondholders already got hammered with GM and Chrysler.
The absolute speed with which NObama and his minions are destroying the USA is staggering.
Here's an idea . . . . . let failing businesses FAIL!!! That's what the free market system is about.
At the time of their determining, much like what happened in Sept 2008...just do it at their convenience, to sway elections, say...