Truth About the Regulatory Bill S3217
Democrats are sending out email piling on Republicans accusing them of siding with big banks and Wall Street because they oppose the new federal regulatory bill (S. 3217) that Obama is going to try to push through in two weeks.
But the ugly truth is, the Republicans are RIGHT! This bill will do NOTHING to help keep banks from getting bailouts.. and… it actually gives the illegal Federal Reserve MORE POWER than it has now. Every single Republican in Congress signed on to Ron Paul’s HR 1207, a bill to Audit the Fed. This is Obama’s pre-emptive strike against it. Read more… courtesy of the JBS, another supposed ‘terrorist’…
Oppose Financial Regulatory Overhaul Legislation
Senator Christopher Dodd’s newest legislation entitled the “Restoring American Financial Stability Act of 2010” (S. 3217) is set to hit the Senate floor for debate as early as next week. A swift passage is President Obama’s priority goal. A highly intrusive, unconstitutional, authority-expanding gift to the Federal Reserve, the bill was only officially introduced on April 15. It had already made its way out of the Senate Banking Committee in draft form with the blessings of the Democratic majority on March 22.
Instead of relieving the Federal Reserve of the broad and sweeping powers it currently holds, the Dodd bill is a 1,336-page gem that would grant the Fed expansive new regulatory authority. It contains a $50 billion bailout fund, described as an “Orderly Liquidation Fund,” for financial institutions. Democrats are defending the bailout fund because they insist that the money will not come from taxpayers but from banks.
The financial regulatory bill also creates a new consumer protection agency that may end up residing inside the Federal Reserve. This new Consumer Financial Protection Agency would be formed to monitor things like credit cards and mortgages — and far more, according to the U.S. Chamber of Commerce. A real kicker for some is that the bill gives the President power to appoint the president of the New York Fed, which would dramatically change the political dynamics already at work in the current, but unconstitutional, central banking system run by the Federal Reserve.
Up to now there has been little, if any, strong reaction in principle from the minority party in Congress. It seems as though the Republicans merely want to be part of the legislative decision-making process, or should we say bipartisan partners in the revamping of the entire financial landscape. They should be excoriated for such an unprincipled approach. This bill could easily be named the Federal Reserve Act II due to the massive fundamental changes it would make in the relationships between Wall Street, Main Street, and the federal government.
This bill is a cleverly crafted package that would guarantee further monetary manipulation in conjunction with an expanded set of regulatory activities for the federal government. It is a fully-stocked tool chest loaded with the latest in gadgets and gizmos, devices and mechanisms that would enable the Federal Reserve to heavily police the entire financial sector and destroy any vestige of the free market.
According to the Huffington Post, “Grayson and co-author Rep. Ron Paul (R-Texas) passed legislation through the House that would allow the Government Accountability Office (GAO) to audit the Federal Reserve and, after a delay, release the information to Congress. It was a remarkable victory, with a populist coalition beating back the combined lobbying efforts of the Treasury Department, the Fed and Wall Street banks.
The Senate has been more hostile territory for the Fed audit provision. Banking Committee Chairman Chris Dodd (D-Conn.) opposes the Grayson-Paul version, but allowed a much more restrictive audit proposal from Sen. Jeff Merkley (D-Oregon) into his bill.”