Unlimited Bailout Funds

[hortysir]

Still trying to find the actual bill number to reference, but I just got this in my e-mail from Sen. LeMieux


The bill expected to come before the Senate creates a $50 billion bailout fund that automatically replenishes, indefinitely. Creating a bailout fund is a bad idea because it tells financial firms the government will bail them out, no matter how risky their actions.
:lame2:

[hortysir]

'This summary has been edited for length 4/15/2010--Introduced. Restoring American Financial Stability Act of 2010 - Financial Stability Act of 2010 - Establishes the Financial Stability Oversight Council to: (1) identify risks to the financial stability of the United States; (2) promote market discipline; and (3) respond to emerging threats to the stability of the United States financial markets. Establishes within the Department of the Treasury: (1) the Office of Financial Research (Office) '

Original Sponsor:
Christopher Dodd (D-CT)

Ol' Chris Dodd, huh???
Imagine that!

[Kathianne]

I believe this is tied to the new 'too big to fail', literally putting Congress in control of the growth of businesses?

[Monkeybone]

and they wonder why we have selling and trading the way it is... becasue they know that no matter what they will get a hand out if it happens to crumble beneath them.

i miss personal responsibility.

[hortysir]

If "too big to fail" is really true, I'm gonna start striving to be "too fat to die"!!
:cheers2:

[bullypulpit]

Still trying to find the actual bill number to reference, but I just got this in my e-mail from Sen. LeMieux


:lame2:

Ummm...If you'd actually been paying attention and thinking for your self, a brief read of that section of the bill would reveal that the $50 billion fund, derived form fees assessed on the industry would serve no purpose other than the orderly unwinding and dissolution of a distressed bank or investment house. You can find it on pages <a href=http://banking.senate.gov/public/_files/ChairmansMark31510AYO10306_xmlFinancialReformLegis lationBill.pdf#page=272>272-273</a> of the bill.

<blockquote>ORDERLY LIQUIDATION FUND.—
(1) ESTABLISHMENT.
There is established in the Treasury of the United States a separate fund to be known as the ‘‘Orderly Liquidation Fund’’, which shall be available to the Corporation to carry out the authorities contained in this title, for the cost of actions authorized by this title, including the orderly liquidation of covered financial companies, payment of administrative expenses, the payment of principal and interest by the Corporation on obligations issued under paragraph (9), and the exercise
of the authorities of the Corporation under this title.<blockquote>

For the FACTS on the matter, go to <a href=http://www.politifact.com/truth-o-meter/article/2010/apr/29/factsheet-financial-regulation-explained/>FACTSHEET: Financial regulation explained</a>.

[hortysir]

Ummmmm......
I never cried, "The sky is falling".
I had just received the e-mail and was passing along.
I appreciate the research you've done on it. It's always good to be informed.
I've since done some digging, also:

The legislative language says that the money must be used to dissolve -- meaning completely shut down -- failing firms. Here's what Sec. 206 of the bill says:

"In taking action under this title, the (FDIC) shall determine that such action is necessary for purposes of the financial stability of the United States, and not for the purpose of preserving the covered financial company; ensure that the shareholders of a covered financial company do not receive payment until after all other claims and the Fund are fully paid; ensure that unsecured creditors bear losses in accordance with the priority of claim provisions in section 210; ensure that management responsible for the failed condition of the covered financial company is removed (if such management has not already been removed at the time at which the FDIC is appointed receiver); and not take an equity interest in or become a shareholder of any covered financial company or any covered subsidiary."
:beer:

[bullypulpit]

Ummmmm......
I never cried, "The sky is falling".
I had just received the e-mail and was passing along.
I appreciate the research you've done on it. It's always good to be informed.
I've since done some digging, also:

:beer:

My apologies to you then for the harshness of my opening paragraph. I seem to have become accustomed to the irrationality and willful ignorance of many who post here. Oh, and please, don't strive for too fat to die. I deal with people who weigh a quarter ton, or more, on a regular basis in ICU. It ain't pretty. ;)

[hortysir]

DEAL!!

:coffee: