Skip to comments.FDIC's New Power to Dissolve Companies Raises Concerns
Posted on 09/06/2010 8:58:42 PM PDT by Rabin
FDIC's expanded authority is part of the 2,300-page Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law on July 21. The new regime for dissolving megacompanies -- one with almost no judicial oversight and in which creditors' rights are few.
A company has essentially no choice about the FDIC taking over as receiver. "It may be difficult to try to draw a box around what that is," said Renée Dailey
(Excerpt) Read more at law.com ...
Translates to a bend over type assurance, Rab thinks
x company is a big republican donor. Must dissolve company
isnt that unconstitutional..not that they care ...
back door to communism.
Of course, the jobs leave this country, too.
yeah - you should be scared.
And with an “activist” in the White House you want to STAY OFF THEIR ENEMIES LIST.
This power will be especially useful in the next election. Don’t support Obama? Well, we’ll see what the new board of directors thinks.
These people are deserving of a trial for treason followed by a 21 gun salute... if you get my meaning.
Thanks heaps, Senator Scott “Pickup Truck” Brown!!!
Years ago, Jesse Jackson proposed a “corporate death penalty”, for corporations found to be committing repeat, and even murderous crimes, with little criminal recourse other than small fines.
As far as this goes, in practice it may not be as bad as it sounds.
To start with, a lot of the corporations that would be covered by this have been deeply involved with dangerous financial speculation. Essentially high risk gambling with immense, multi-billion and even trillion dollar stakes.
In effect, they discovered a way to create money out of thin air, which they could then use to buy real assets. But if they lost big, they figured that the taxpayer would bail them out because they would destroy the economy if they were taken down.
They had also mastered Chapter 11 bankruptcy laws, so as to be able to loot their corporation further before it collapsed.
And the FDIC may be just the right choice for this as well, as they have to deal with bankers as cutthroat as Barbary pirates, so have learned how to quickly disassemble a financial institution with minimum fuss.
So the bottom line is that if a corporation is too big to fail, it must be failed in a controlled fashion before it can be destroyed by natural causes.
yef “Years ago, Jesse Jackson proposed a corporate death penalty
So the bottom line is that if a corporation is too big to fail, Dodd-Frank Is a death penalty for all the rest of free enterprise. “Not perfect, but the best available”.
May be better to want change for the better than just change. Rab thinks
Tzm “STAY OFF THEIR ENEMIES LIST”
Shoot mono, I wana be in their face, not off their list.
“A company has essentially no choice about the FDIC taking over as receiver. “It may be difficult to try to draw a box around what that is,” said Renée Dailey”
Hey, here’s an idea. Let’s give 50 billion to companies so they can be indebted to the government and go into receivership when they fail.
And the isolationist wing of FR will call them all traitors and sellouts, too!
Once upon a time companie were not allowed to merge if the result was to diminish competition, and yield monopolies.
Seems like an equivalent objection to mega-mergers would be prevention of companies that are “too big to fail” and avoid the possibility for government to feel compelled to rescue them.
Once upon a time the government broke up the big oil companies.
my 2 cents
Thank you Scott Brown, Snowe and Collins.
Ok,so when is the FDIC going to shut down the Federal Government?
Well obama&Co. wants companies to barrow more it’s for jobs ya see. /s
ya i see...no money and no business but pay people you cant afford with benefits.
You mean like GM?
The law was narrowly written to just financial service companies, with over 85% of their business in finance. By those criteria, on the surface at least, it seems to be exclusively for the worst of the financial offenders and speculators.
These guys need to have some kind of bayonet put to their throats, even if not this one. By their actions, they have put the US economy at grave risk from yet another direction.
To make things worse, they are top notch experts at using lawfare to defeat the judicial system, and the SEC is nowhere near capable of policing them.
As much as I despise Dodd, for once I think he might have had a point.