The winds of change are blowing...from the Republicans! Republicans in the House are busy putting the finishing touches on a plan to “stop rewarding failure” and make sure taxpayers are never again asked to pay for missteps (blunders) on Wall Street. The GOP members of the House Financial Services Committee aim to have their version…which I am quite sure will vary greatly from the one the Democrats are writing…by Tuesday. It is a much needed proposal to revamp the financial regulatory system and would, in essence, rightfully guide failing companies toward bankruptcy, bypassing the ever popular bailout strategy. Additionally, it would take away the oversight authority of the Federal Reserve with regard to the financial industry. It opposes the creation of a systemic risk regulator and government resolution authority…lauded by the Obama Administration. Geithner's layout of the ‘Resolution Authority’ wants to give the President power to dismantle, reorganize, or jostle failing companies and at the same time…and this is the scary part…it would shift some of the authority held by the judiciary to the executive branch supposedly to expedite bankruptcy proceedings. Now, I have a problem with anyone trying to mess with the “Checks and Balance System” and so should every American no matter what your political affiliation. The House Republican blueprint calls for Federal Reserve audits, via the Government Accountability Office, and the transfer of many of its consumer protection and oversight powers to separate agencies. I especially like the audit part because no office or agency handling money should be exempt from accountability. Lastly, it would mandate that Freddie Mac and Fannie Mae become private institutions. Let's hope Congress finds their spine and works together on this one in a bipartisan manner. Currently, they are forging the shackles which are enslaving even their own children...due to pettiness and pride.
Note: Pettiness and pride can forge the shackles which enslave even our own children.
May God bless America...and may America deserve it!
Zanne Booker 6-04-09