Banktasm

oligarchy

Denninger explains.

More detail:

***
…Co-sponsored by Reps. Spencer Bachus (R., Ala.), John Conyers (D., Mich.), and Bob Goodlatte (R., Va.), the bill creates a new section of the bankruptcy code for big financial firms. So far so good for taxpayers. Bankruptcy courts would be better for resolving failing giants than the “orderly liquidation authority” created by the 2010 Dodd-Frank law that allows regulators to rescue these institutions and then discriminate among their creditors.

This is no doubt why so many Republicans are supporting the new plan. But they should also read the fine print.

Nothing in the bill repeals the rescue authorities given to regulators under Dodd-Frank and there’s no ban on taxpayer assistance to the failing giants put through the new bankruptcy process.

If the idea is to take power from bureaucrats and give it back to markets and judges, it’s odd that not only the failing firm but also the Federal Reserve Board of Governors can trigger the bankruptcy filing if “necessary to prevent serious adverse effects on financial stability in the United States.” The affected company can contest the Fed’s decision privately before the court.

The House bill would also largely codify and expand an agreement this fall between the biggest banks and the Fed. The big banks agreed not to exercise all their contractual rights with each other, allowing a failing giant some relief as regulators try to ensure that its subsidiaries can keep operating…
***

Bill language of HR 5421.

Key takeaway, IMHO:

Big badness is coming, and this bill is designed to help “manage” it.

NB: As to you and yours, here’s what’s coming:

screw-standard

obama boehner

26-mitt-romney-laughing.w529.h352.2x

hillary what difference

7 responses to “Banktasm

  1. Deeply satisfying.

  2. Just keeps gettin’ oilier by the day.

  3. They will simply strike a zero off everyone’s account , problem solved.

    • Sometime in the 90’s I was in Mexico after they struck 3 zeroes off everyone’s acct and off everything.
      You went to bed on 31Dec. with $1000 in the bank and woke up 1Jan. with
      $1 (yeah, I know it was pesos).
      I ask the guy I was working for why they didn’t riot, burn down every bank and string up all the bankers.
      No answer.

  4. Alfred E. Neuman

    Reblogged this on The Lynler Report.

  5. Hahaha. Conyers, “the other kind of Michigan.” LMAO. In the end joke’s on them. They’ll spend all their resources chasing that green–that’s why each does it, after all–and when the dust settles, they’ll get exactly what they chose…all the money in the world.

    By then, the producers will have long already chosen. At that moment, EVERYONE will understand the difference between weatlh and money. How good will that moment be?

  6. Bikini Frank AND Dodd!
    Hell just Corning the whole lot!!
    That is all….
    CIII