“Step in the wrong direction”
May 24, 2010 | federal legislation, industry | Comments (0)Senator David Vitter has an opinion piece in today’s USA Today:
This Senate bill not only wouldn’t end the practice of picking winners and losers; it would institutionalize it.
Washington’s bailout mania would continue under the auspices of trying to protect failed firms that are “too big to fail.” The bill’s new “resolution mechanism” would provide sweeping authority to the Federal Deposit Insurance Corp. to borrow from our Treasury to support failing firms. It would even provide the FDIC with enough latitude to run a large financial holding company for up to five years — and would let bureaucrats favor some creditors and stockholders over others. Again, government picking winners and losers, often based on politics.
The legislation also would create a new all-powerful super-bureaucracy with unbridled authority. This new super-bureaucracy wouldn’t just regulate banks: It would micromanage any transaction involving four or more installment payments. That covers your family orthodontist and vet, too.
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