The new Resolution Authority, set forth in Treasury’s 253-page legislative draft of October 27, 2009 provides permanent, unlimited bailout authority. This means:
(1) Unprecedented powers for the executive to decide spending and taxes, without congressional approval; and
(2) Depending on the desires of the Executive Branch from time to time, the greatest transfer of money from the Treasury to Wall Street in U.S. history.
The Executive Branch may loan an unlimited amount to any solvent financial institution “if necessary to prevent financial instability” (§1109(a)), or to a troubled financial institution, the default of which would “have serious effects on economic condition in the United States (§1603(b)(2) and §1604(c)(1)). As to troubled firms, the bailout can also take the form of purchasing assets from the institution (§1604(c)(2)) or investing in the institution (§1604(b)(4)).
To view the Treasury Department's legislative draft please click here
Congressman Brad Sherman
Invites you to attend a
Town Hall Meeting
Please come to Congressman Brad Sherman's upcoming Town Hall Meeting. This will be a chance to share your views with Congressman Sherman about health care, the economy, education, Social Security, foreign policy, as well as to ask Congressman Sherman questions.
Sunday, November 15th
3:00-4:30 p.m. Birmingham Charter High School
17000 Haynes St.
(One block north of Victory and Balboa)
Lake Balboa
Washington - These days, a modern depression seems almost within the realm of possibility. To avert this, we need an enormous, immediate stimulus. But unless it's well designed, it may not pass Congress; it may not achieve its objectives; or worse, it may sow the seeds of a disastrous decline in the dollar's value.
