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Sev
04-15-2010, 09:07 PM
http://thehill.com/opinion/columnists/dick-morris/92019-obamas-terrible-powers


<span style='font-size: 14pt'><span style="color: #000000">
Obama’s terrible powers
By Dick Morris - 04/13/10 06:47 PM ET

If the financial regulation bill that passed the House last year becomes law, President Obama and his Treasury Secretary will acquire the right to take over any financial institution they wish to, provided that, in their sole opinion, it is both “too big to fail” and on the brink of insolvency. The House bill provides for no judicial review and does not require any objective evidence of imminent failure to trigger the takeover provisions.

Once the government takes over such a company, it will acquire the right to replace the entire board of directors, fire the management of the company, wipe out stockholder equity and even sell off divisions of the company.

Essentially, this bill permits the government to launch an unfriendly takeover of any financial institution it wishes without risk and with no poison pill or other counter-measures possible.

This legislation, essentially, confers on the federal government police powers that, under our system, are the exclusive preserve of state and local government. The blank check the bill gives the feds to take over any financial institution is really more of an exercise of eminent domain than it is an extension of traditional federal regulatory power.

This grant of power to the executive branch is unprecedented and potentially totalitarian. Consider:

• 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?

• Will this grant of authority force companies to hesitate before they grow and expand? Will it function the same way the antitrust powers of the Justice Department do in making companies re-examine mergers and acquisitions with a view toward what Justice will think of their resulting market share? In antitrust situations, where a specific action brings companies under scrutiny — like a merger — such concern is not unreasonable. But when the simple act of making money, showing a profit and expanding in size puts a company in federal crosshairs, does this not have the potential to attenuate the capitalist focus on growth?

• In an environment where the feds are looking over the shoulder of every financial institution to see if they should take it over and shut it down, will this not force financial companies to follow the most risk-averse lending policies possible? Doesn’t this mean that it only makes sense to buy government paper, since consumer loans, mortgages and business lending could be considered risky and lead to a federal takeover? Isn’t this policy precisely the opposite of what we need to catalyze economic growth?

• In a political world where contributions from financial institutions are sought and widely given, doesn’t this power give the president and his party unlimited fundraising ability, simply by baring its teeth and showing the power it has to take anybody over and fire anybody? Given the fact that Goldman-Sachs was the second-largest donor to Obama’s campaign, giving $954,795, doesn’t this new power raise the specter that the federal government could take over financial institutions so as to make the competition lighter for its donors? Already, there is considerable evidence (cited in our new book, 2010: Take Back America — A Battle Plan) that Goldman profited handsomely from the decision of its former CEO — Bush’s Treasury Secretary Henry Paulson — to allow Lehman Brothers to fail. Now that the Treasury secretary will have the takeover power, might it not be used as irresponsibly and with as many bad consequences as Paulson used his power in the Lehman crisis?

While the focus on the regulatory bill has been on the consumer protection provisions, which I tend to support, there has been far less scrutiny on these horrific expansions of federal power.

Fidel Castro and Hugo Chavez could only dream of this power.

Morris, a former adviser to Sen. Trent Lott (R-Miss.) and President Bill Clinton, is the author of Outrage and Fleeced. To get all of his and Eileen McGann’s columns for free by e-mail or to order a signed copy of their best-selling book, Catastrophe, go to dickmorris.com. In August, Morris became a strategist for the League of American Voters, which is running ads opposing the president’s healthcare reforms. Morris’s new book, 2010: Take Back America — A Battle Plan, is released this week.

Source:
http://thehill.com/opinion/columnist...errible-powers
The contents of this site are © 2010 Capitol Hill Publishing Corp., a subsisiary of News Communications, Inc.
Comments (72)</span></span>

Sev
04-17-2010, 04:57 PM
I guess nobody is concerned.

pooltchr
04-17-2010, 05:46 PM
The guy is doing so much damage in so many ways, and in so many places, it's getting hard to keep up with it all.

Steve

Qtec
04-18-2010, 03:49 AM
Dick Morris!.............LMAO

Obama.....the truth.
link (http://www.huffingtonpost.com/2010/04/17/obama-slams-gop-obstructi_n_541548.html)

<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">There were many causes of the turmoil that ripped through our economy over the past two years. But above all, this crisis was caused by failures in the financial industry. What is clear is that this crisis could have been avoided if Wall Street firms were more accountable, if financial dealings were more transparent, and if consumers and shareholders were given more information and authority to make decisions.

But that did not happen. And that's because special interests have waged a relentless campaign to thwart even basic, common-sense rules - rules to prevent abuse and protect consumers. In fact, the financial industry and its powerful lobby have opposed modest safeguards against the kinds of reckless risks and bad practices that led to this very crisis.

The consequences of this failure of responsibility - from Wall Street to Washington - are all around us: 8 million jobs lost, trillions in savings erased, countless dreams diminished or denied. I believe we have to do everything we can to ensure that no crisis like this ever happens again. That's why I'm fighting so hard to pass a set of Wall Street reforms and consumer protections. A plan for reform is currently moving through Congress.

Here's what this plan would do. First, it would enact the strongest consumer financial protections ever. It would put consumers back in the driver's seat by forcing big banks and credit card companies to provide clear, understandable information so that Americans can make financial decisions that work best for them.

Next, these reforms would bring new transparency to financial dealings. Part of what led to this crisis was firms like AIG and others making huge and risky bets - using things like derivatives - without accountability. Warren Buffett himself once described derivatives bought and sold with little oversight as "financial weapons of mass destruction." That's why through reform we'd help ensure that these kinds of complicated financial transactions take place on an open market. Because, ultimately, it is a marketplace that is open, free, and fair that will allow our economy to flourish.

We would also close loopholes to stop the kind of recklessness and irresponsibility we've seen. It's these loopholes that allowed executives to take risks that not only endangered their companies, but also our entire economy. And we're going to put in place new rules so that big banks and financial institutions will pay for the bad decisions they make - not taxpayers. Simply put, this means no more taxpayer bailouts. Never again will taxpayers be on the hook because a financial company is deemed "too big to fail."

Finally, these reforms hold Wall Street accountable by giving shareholders new power in the financial system. They'll get a say on pay: a vote on the salaries and bonuses awarded to top executives. And the SEC will ensure that shareholders have more power in corporate elections, so that investors and pension holders have a stronger voice in determining what happens with their life savings.

<span style='font-size: 14pt'><u>Now, unsurprisingly, these reforms have not exactly been welcomed by the people who profit from the status quo</u> - as well their allies in Washington. This is probably why the special interests have spent a lot of time and money lobbying to kill or weaken the bill. Just the other day, in fact, the Leader of the Senate Republicans and the Chair of the Republican Senate campaign committee met with two dozen top Wall Street executives to talk about how to block progress on this issue.

Lo and behold, when he returned to Washington, the Senate Republican Leader came out against the common-sense reforms we've proposed. <span style='font-size: 20pt'>In doing so, he made the cynical and deceptive assertion that reform would somehow enable future bailouts - when he knows that it would do just the opposite.</span> Every day we don't act, the same system that led to bailouts remains in place - with the exact same loopholes and the exact same liabilities. And if we don't change what led to the crisis, we'll doom ourselves to repeat it. That's the truth. Opposing reform will leave taxpayers on the hook if a crisis like this ever happens again.</span>

So my hope is that we can put this kind of politics aside. My hope is that Democrats and Republicans can find common ground and move forward together. But this is certain: one way or another, we will move forward. This issue is too important. The costs of inaction are too great. We will hold Wall Street accountable. We will protect and empower consumers in our financial system. That's what reform is all about. That's what we're fighting for. And that's exactly what we're going to achieve.

Thank you. </div></div>


LOL.Dick Morris............ /forums/images/%%GRAEMLIN_URL%%/crazy.gif

Sev
04-18-2010, 04:56 PM
Funny. He did a superb job for Clinton.

Morris doesn't disagree with some of the reforms. However its what is buried deeper in the bill that is a concern.

The government should not be in the business or have the power to take over any portion of any industry.