A Closer Look at the Financial Reform Bill
The Senate is planning to take up the Democrats' 1,408 page financial reform bill on Thursday. How many Senators do you think have taken time to read the bill in its entirety?
A few things you should know about this bill...
Sen. Dodd's bill creates a Financial Stability Oversight Council (FSOC)-made up of representatives from the Treasury Department, the Federal Reserve, the CFTC, FDIC, and SEC. With a 2/3 vote of the FSOC, this body could determine any business is "systemically significant" (too big to fail) which would allow the FDIC and Treasury Secretary to treat the companies' shareholders and creditors as they choose; including forcing firms to break up, stop selling certain products, or forcing them to go out of business. This council creates even more federal regulators with unbridled power to interfere with any business that they choose to declare a risk. (GOP Leader 4/19/20)
The bill also gives the largest financial institutions access to a "pre-existing" $50 billion fund that would serve as bailout money for "too big to fail" firms.
The bill also provides a Treasury backed credit line which would enable the FDIC to borrow from Treasury up to the amount of cash in the bailout fund in addition to 90% of the value of the assets of any and all "systemically significant" firms under their control.
The bill also provides government guaranteed debt through allowing the FDIC to guarantee debt of any "solvent bank, bank holding company, or affiliate in any amount" which will only be subject to an aggregate debt limit set by Treasury. (GOP Leader 4/20/10)
The Democrats' bill makes federal bailouts a permanent option for Wall Street. It also gives federal bureaucrats unlimited ability to interfere in the private sector.
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Contact your Representative and Senator TODAY!
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