Lawrence Lindsey, former director of the White House economic council member:
"First, the bill contains a $50 billion fund for resolution of systemically risky institutions. The bill allows a 2/3 vote of the Financial Stability Oversight Council to deem any firm (financial or non-financial) as coming under its rubric and then authorizes the FDIC and Treasury Secretary to treat each of the firm’s shareholders and creditors as they choose, without regard to bankruptcy law.
"Second, the bill gives the Treasury and the FDIC authority to grant an unlimited number of loan guarantees to systemically risky institutions. No congressional authorization or appropriation is required.
"Third, the bill gives the Fed the authority to fund any 'program' to assist these institutions accepting as collateral anything it deems appropriate. So perhaps too big to fail is dead. How could any firm actually fail when all of its debt could be guaranteed by the Treasury, the Fed could print money to assist it, and just in case, there was $50 billion sitting around to reassure nervous creditors that they would be repaid regardless what contract or bankruptcy law said?"
Lindsey adds that there should be no surprise that Wall Street is enthusiastic...
We're all very grateful to Chris Dodd, (D-BankWhore) for this, his final gift to the US taxpayers.
Let the banks go under. The administration is so happy to vilify Wall Street, the Banks, the Pharmas, the Insurers, but keeps bailing out the ones in trouble. Bankruptcy laws in this country are there for a reason. Let them work.
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