Skip to comments.FDIC's Bair pushes for regulatory changes (Fed could run "large" companies) (Big Govt® at work)
Posted on 11/09/2009 2:54:10 PM PST by rabscuttle385
MANHATTAN, Kan. (AP) The head of the Federal Deposit Insurance Corp. on Monday said Congress needs to provide regulators greater tools to control the risky financial behavior that helped trigger the recession and to unwind major firms on the verge of collapse.
FDIC Chairman Sheila Bair said she supports such a winding-down process for financial institutions other than banks. But she does have reservations with a proposal now before the House, which would cover the costs for the government of dissolving troubled companies with fees charged to businesses after the firms' meltdown occurred.
Bair says that fund should be created before a financial institution is engulfed in a crisis.
"Building the fund in advance would help prevent the need for assessments during an economic crisis and ensure that the firm that failed paid something into the fund," she said at Kansas State University as part of the Landon Lecture series.
The process would be overseen by a systemic risk council, which would have the authority to force large companies in danger of becoming unstable to sell off assets or stop business practices the council members considered risky.
Bair said that council could step in to fill gaps in the current regulatory framework and should be independent of any government agency. The current proposal favors oversight by the Federal Reserve.
(Excerpt) Read more at google.com ...
W T F
FDIC Chairman Sheila Bair
Appointed by Jorge Arbusto.
It's Bush's fault.
You mean they'll crack down on "Community Organizer" groups like ACORN who threaten banks to lend to uncreditworthy borrowers? /s
Oh I get it; its like the death tax, but for corporations. You know, the government comes in and takes it or the family (shareholders/owners) is forced to sell off the assets at distressed market prices where the vultures and bottom feeders just sit and wait because they have a line to Congress and the Whitehouse (you know, Goldman Sachs, Warren Buffett/Soros types). Man talk about blatant FASCISM! We are not going to have an economy or a country in 4 years at this rate.