I did a thread [link below] that came from OpenMarket.org, where they posted an article written by John Berlau of the Competitive Enterprise Institute. In this article, Berlau wrote how under Dodd's bill, that the "resolution authority" would be a permenant bailout fund that would operate as follows:
Financial institutions would be required to contribute to this resolution fund of $50 billion dollars that could be tapped by creditors of large failing firms. President Obama & Chris Dodd are pushing a bill that would give creditors of Goldman Sachs, or other large firms, a better deal than they would get in bankruptcy.
During the financial implosion of 2008, Goldman Sachs was not bailed out directly by taxpayers, but instead received tax dollars as a creditor of AIG. Goldman received $12.9 billion in the "backdoor bailout" because of the credit default swaps it owned that AIG insured. Goldman and other of AIG's counterparties were paid by the government 100 cents on the dollar in this bailout, wheras creditors in bankruptcy court often get less than 50 cents on the dollar.
Under Dodd's bill, when the government takes over a failing firm, the management lose their jobs and the shareholders get nothing.
But what is more, under Dodd's bill, creditors of large firms will get a better deal than they will with the failure of a small firm. The resolution fund will not be accessible to small firms, but only by large firms (like Goldman if it fails). The small firms go to banruptcy, where they will be lucky if they get 50 cents on the dollar.
The fees for Dodd's resolution fund to pay off creditors of large failing firms would come not only from financial institutions but from a broad array of Main Street businesses. Stable life, auto and home insurance companies would have to pay into this fund to pay off the creditors of the next high-rolling large firm, and the fees that they pay would be passed on in premiums that their policy holders would pay.
It may be that Dodd's bill (were it to pass) would lead to creditors dumping the small firms and flocking to large firms, thus leading possibly to more small firms failing. Dodd's bill also greatly increases the powers of the Federal Reserve like never before.
Obama-Dodd Financial Bill Would Further Enrich Goldman Sachs
If you lie down with dogs don't be surprised if you get up with fleas.
Obamas standard operating practice is to first demonize someone or some entity and then use that as an excuse to impose draconian new legislation.
Thus Obamas indictment of Goldman Sachs is right out of the Hitler playbook of burning down the Reichstag.
Fascists, whether Nazi or Islamo, act the same.
Goldman Sachs is a democrat party criminal entity and should be anihilated, imho.
This is strange for me. Goldman-S and a lot of heavy financial Dems are Jewish. Why are they supporting an anti-Jewish government? Why are they setting themselves up for another holocaust? They are trying to cover their tracks with blaming Bush through their media, but with the growth of the Jewish-hate groups they are trying to control, I really see this as a BIG mistake. Am I wrong in this?
the money quote:
Lets start with the numbers. Why is a first term Senator pulling down almost $300,000 a year from Goldman Sachs, Lehman Brothers, Bear Stearns, Fannie Mae, Freddie Mac, AIG, Countrywide Financial, and Washington Mutual? He has not even completed his fourth year in the Senate and received a total of $1,093,329.00 from these eight companies and their employees. (all data from OpenSecrets.org). John McCains numbers, according to OpenSecrets.org for the period 1990-2008 (i.e., 18 years worth of data) only collected $549,584.00. In other words, Barack is receiving $273,582.25 (and 2008 is not over) per year while McCain raised a paltry $30,532.44.
Want another shocker? Barack Obama has received more from one sourceGoldman Sachs $542,252.00than McCain has from all of the companies combined. Who the hell is more beholden to lobbyists? And why does a junior Senator from Illinois rate this kind of dough?
This garbage is just commie propaganda. And FR is full of it.
Conservatives are sick and tired of wealth redistribution schemes. That should include corporate welfare. We either stop this special interest squabbling over federal largess, or it will literally destroy this nation. A business that uses government to punish its competitors and gain federal handouts is as much an enemy of liberty as a welfare mom. I swear our government is like a bunch of children fighting over pinata candy. It’s time for grownups to step in and put a stop to this!
Should be a headline on every conservative news source but it isn’t Republicans legthe Dems make the outrageous claim that they are on the high ground where Wallstreet is concerned. We need a simple campaign commercial on this run in every competitive district.
This shows that the GOP is A__holes. For decades Wall Street of New York City donated heavily to Dems and liberal social causes. Dems go after traditional GOP supported industries with regs and taxes while the GOP wants to let Wall Street do what ever it wants. Well Wall Street took care of America on September 2008 that would make Bin Laden proud. Now the GOP wants to defend Wall Street against the Dem/Obama attacks and punishment “reform” bill. Since Wall Street has always hurt the GOP and the GOP consituents, why risk losing the independent voters by defending Wall Street. Wall Street and the Dems deserve each other, thus we (GOP) and conservatives should set aside and let them kill each other financially and politically. It means one less powerful donor for the Dems in 2010 and 2012. If the GOP retakes power in 2010/2012, let the former Wall Street Dem lovers pay the GOP to undo the Obama reforms.