Sunday, November 01, 2009
The President's Men: Tim Geithner and Ben Bernanke
Democratic and Republican lawmakers reacted negatively on Thursday to the Obama administration’s new regulatory plan for banks, citing provisions that would give the Executive Branch greater powers to bail out teetering institutions without the public’s knowledge. Under the legislation drafted by the Treasury Department, a new oversight council, led by the treasury secretary, would keep an eye on troubled banks, but not have to publicly disclose which institutions are on the “watch list.” Additionally, the Federal Reserve would be given the power to rescue banks with unlimited authority, and without input from Congress.
One critic of the plan, Congressman Brad Sherman (D-CA), called the idea “TARP on steroids,” referring to the bank bailout program created last year by the Bush administration.
Former Labor Secretary Robert Reich, who testified at the congressional hearing, said the legislation demonstrates that Treasury Secretary Timothy Geithner and White House financial advisor Lawrence Summers “continue to bend over backwards to make Wall Street happy, and in doing so continue to risk the credibility of the president, as well as the long-term financial stability of the system.”.
-Noel Brinkerhoff
Secret Bailouts for Giant Failing Banks of the Future? (by Adrianne Appel, Inter Press Service)
TARP on Steroids (by David Sirota, Creators Syndicate)
Let’s Not Adopt TARP on Steroids (Congressman Brad Sherman)
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