CNN Chief Business Correspondent
The free-marketers are all over the government's "power grab" to more closely regulate large non-bank financial companies.
We've heard everything from it's "unconstitutional" because it violates unlawful search and seizure laws.
Others say the idea that there is a regulator encourages failure because someone will bail you out.
These arguments hold little water.
The FDIC is universally seen as the most effective and most successful regulator through this entire recession.
Geithner today is using the argument that that is the model he suggests using.
He's right on this one.
Filed under: Ali Velshi • Economy • Finance • Treasury Secretary
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Power Grab...The Bernie Madoff scheme was regulated by SEC...he was reported at least 7 times...started in 1960... the rules were on the books...didn't change anything.
These fools in charge don't know what their doing and if it's going to work...so in two months they now know how to fix it....I don't think so. It was these same Dem fools...Barney Frank, Chris Dodd's, Maxine Waters, Davis and Meeks who allowed Fannie Mae And Freddie to start the whole thing. They don't need more power ....they need to be stopped...American Taxpayers do your thing.
White collar crime has been proven to hurt millions of people all at once. We just cannot trust these corporations to do the right thing.
If the Bernie Madoff scheme hasn't proven to you that we need more stringent regulations and more enforcement, then you are probably stupid.
I think crimes like Bernie Madoff has commited should be considered as capitol crimes and be subject to siezure of all assets and the death penalty as a crime against humanity. He tried to steal the riches of a whole country, just like Sadam Hussain and his mob.
Bernie Madoff an all like him should pay the ultimate price for their crimes.
The power grab is just an excuse to take this country to socialism. When I did my research on the financial crisis, I found that the Democrats were mostly responsible. The American people elected Barack Hussein Obama as president. Now we have to live with it for four years. It will be a miserable 4 years just like the Jimmy Carter presidency.
If government continues to take over and regulate the private sector of our society they will have to change our name to The United States of China.
I agree that getting regulations back in place is necessary. It should be noted that having regulators in place who will have the will to do the job is also necessary. Recent events at the SEC proves that point. The regulators need to remember that they work for the public, not the politicians, who are too easly influenced by finanical contrubitors....
I guess we can all agree that the govt cant be trusted....
so why dont we start doing some house cleaning instead?
maybe I just dont get it.
He's not right. Chicago Tribune article today highlights how poor government representative can be when acting on board of private company. SLRT was no better during Reagan years. Putting US government in charge is not as efficient as using bankruptcy reorg. Let the system clear itself of the bad players, instead of making zombies out of them.
Currently there are "Three (3) FDIC Programs",under Chairwoman Sheila Bair's leadership! FDIC maximum commitment in dollars is $1.5tn.,with tapped-out outlays so far at $149bn.,total-to-date! #1) Loan Guarantees: takes the risk out of bank-to-bank lending ($0.00 tapped); #2) Guarantee to "GE Capital",: supports the lending arm of GE, Maximum Commitment $139bn.,tapped out at $139bn.! #3) Citigroup Bailout,:FDIC agrees to guarantee $10bn. of Citigroup's toxic assets ($10bn. Maximum commitment with $10bn. tapped-out! Finally ,I'd like to make one important point regarding regulation. That being, I pray to God that the Federal Reserve doesn't get the authority to become the most formidable/powerful entity in the "Free World"! JMHO
Geithner and Gibbs will be gone by July 4th; horrific decisions each by Obama.
It's ironic that a person who doesn't pay their income tax is pictured here, and is leading the charge for government to take over private enterprises. That's real good.
I've never been happier to be Canadian...our banking system has weathered this storm incredibly well due to its tighter regulation. Imagine the nerve of actually having to prove that you can afford a loan or mortgage!?!
You are wrong on this one Ali! The government should have no right to come in and take over anyones company no matter how bad it is doing and if it is failing or not. What's to stop them from doctoring something up to say that the company is doing bad enough that they can take it over? Aren't these the same people who swore up and down that they knew nothing about AIG bonuses yet later we saw that they lied through their teeth and even wrote in a loophole for them? And you trust these people to do right!? PLEASE!!
If they want what happened this time to never happen again they just need to make sure that no company ever gets that big again. They don't need any more power than they have now!
I would like to know what would happen if all taxpayers QUIT paying their Federal taxes for at least one year? Would the politicians in Washington have money to 'play' with then? Washington doesn't DESERVE a dime from us taxpayers, if I could I would have 98% of them thrown out of office – and where do these 'politicians' get THEIR paychecks from??!!! Do they really think they are pulling the wool over our eyes? The American Taxpayers need to start up some kind of coalition to stop this craziness, and we ALL need to sign up!
The free marketeers have had their chance for the last 30 years, at least since the election of Reagan. Now there's been a shift and the Keynesians and progressives are trying to deal with the crash. By definition, that means more regulation, more deficits, more power in the hands of the state and less in the "private sector"–whatever that really means today.
Good sense. Someone needs to control the thieves. Since the thieves have proven they can't control themselves, and the people can't control the thieves, it falls to the government to crack down on them.
We often use "models" which have proven to be successful--but in most instances-–the success of these models are not 100%. Maybe we need to start using a model that has worked since the beginning of time--the model of "common sense."