Finance

Posted: 03/26/09

 

Geithner Wants Congress to Give the Treasury More Power: The Point Everyone is Missing...

Treasury Secretary, Tim Geithner has asked Congress for more power extending his jurisdiction to the regulation of "non-bank" financial companies whose collapse could jeopardize the economy, according to the Washington Post. Geithner

 

Mr. Geithner cites the AIG debacle as a prime example for the need to increase his authority. The Treasury is part of the President's Cabinet. Currently, the ability to seize banks resides with the FDIC, chaired by Sheila C. Blair, a Republican who was appointed in 2006 to a five year term.

 

Ms. Blair has demonstrated her ability to maintain oversight of failing banks and the security of consumer's deposits during the current economic crisis. This has been a positive, successful demonstration of skill on the part of Ms. Blair which is in sharp contrast to what many see as Mr. Geithner's less than stellar performance to date.

 

So what is the reason for extending the powers of the Treasury under Geithner? Why not extend the power of the FDIC to cover non-banking financial companies if this measure is truly needed? The answer appears to be nothing more than another political power grab by the Obama administration extending the influence if not technically the power of the Executive branch.

 

This week Secretary Geithner and Federal Reserve Chairman, Ben Bernanke appeared before the House Financial Services Committee where tough questions were asked regarding the unprecedented power wielded in recent days by the Treasury and the Reserve. The Committee's questions covered the AIG debacle; Treasury's oversight of TARP funds; and the $1.15 trillion the Federal Reserve printed last week to buy Treasury obligations, reduce long-term debt and ease the credit burden on consumers.

 

Rep. Barbara Bachman, (R) MN drove home what many are asking... is this constitutional? Where in the Constitution is Congress given the power to extend such broad reaching power to the Treasury and the Federal Reserve?

 

Excellent question. But you must go beyond this. You must ask, "Are we unknowingly extending the power of the Executive branch through the Treasury and, thereby, diluting if not eliminating the checks-and-balances established in the Constitution to protect our country from demagoguery? The Treasury announced that the Administration plans to send legislation to Capitol Hill this week seeking such extended power. And today President Obama appealed to the masses through a multi-media "town hall" focusing their attention on his proposed budget while attempting to circumvent Congress as it trys to scale back spending.

 

We must start looking at the hidden agenda in everything proposed by this Administration. Stop getting hung up in the details. Get beyond the rhetoric, America. They're stealing the American dream!

 

 

 

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