Financial reform: Catastrophic Ramifications
Financial Reform is a Heist for the Privately Owned Federal Reserve
Will Regulate Companies Outside of Banking
Political opponents beware!
The objective is clear. This is no mistake. The details in the Financial Reform Senate bill are explicit; This bill will give unprecedented power to the Federal reserve, to the treasury and to the executive branch or the president. Coincidently or not, the private Bank of England’s governor has called for the same powers. Chris Dodd and his committee knew exactly what they were doing when they drafted this bill.
- The WSJ and the Vancouver Sun point out, non- bank companies such as Wal-Mart, IBM etc. can be re-classified as finance companies if they are involved in “financial activities,” such as extending credit to customers etc.
- All businesses owned by financial institutions will be subject to regulation. The local coffee shop with a loan from the bank would be regulated. The location of franchises, the equipment purchased. the menu of an establishment will be subject to control.
- Non-banks with 50 billion or more in assets will be taxed so they can bail out companies deemed systemically risky.
- All group investments, even those investments owned by the group will be regulated.
Will Give Sweeping Powers to The Party in Power,
Congress is becoming more and more irrelevant. The Executive Branch of govt. will gain substantial power and will not answer to congress.
- On their opinion, alone, without any judicial review, or evidence Obama or The Secretary of the Treasury, Timothy Geithner, will have sole discretionary power to dissolve a corporation deemed too big to fail.
- No judicial review or evidence will be required.
- Congress will have no say.
- Will have the right to replace the entire board of directors,
- to fire the management of the company,
- to wipe out stockholder equity,
- to sell off divisions of the company
Financial companies may be reluctant to hire, or make loans. Innovation will be squelched. After all, any such actions could affect the bottom line and be cause for liquidation.
Dick Morris asked the question, “Will Obama, or any future president, target companies that are particularly vocal in their opposition to his policies or generous in funding his political opponents? Will the fact that Obama would have this power force companies, investors, CEOs and managers to self-censor their opinions and political involvement because they fear the wrath of a vengeful president?”
Unlike what we are being told, The Federal Reserve elite, will have expanded, unchallenged authority to regulate.
The Federal Reserve will have unlimited, unregulated power. and “will be the only private unregulated private entity on the planet.”
“Some people think that the Federal Reserve Banks are United States Government institutions. They are private monopolies which prey upon the people of these United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.”
– The Honorable Louis McFadden, Chairman of the House Banking and Currency Committee in the 1930s
Andrew Napolitano Gives the facts in this 3+1/2 minute video
A toothless govt. watchdog would be housed within the FED.
- The Federal Reserve would still have control over small state chartered banks.
- Small banks could be charged higher fees.
- A board of regulators within the Central Bank (privately owned by bankers) will supervise any company deemed “systemically important”.
- Control would be consolidated and shifted from regional banks to the Fed in Washington, D.C. and New York.