Bankers Get $4 Trillion Gift From Barney Frank

[girl gone mad]

http://www.bloomberg.com/apps/news?pid=20601039&sid=a48c8UpUMxKQ">Bankers Get $4 Trillion Gift From Barney Frank
David Reilly, Bloomberg

Dec. 30 (Bloomberg) -- To close out 2009, I decided to do something I bet no member of Congress has done -- actually read from cover to cover one of the pieces of sweeping legislation bouncing around Capitol Hill.

Hunkering down by the fire, I snuggled up with H.R. 4173, the financial-reform legislation passed earlier this month by the House of Representatives. The Senate has yet to pass its own reform plan. The baby of Financial Services Committee Chairman Barney Frank, the House bill is meant to address everything from too-big-to-fail banks to asleep-at-the-switch credit-ratings companies to the protection of consumers from greedy lenders.

(snip)

The reading was especially painful since this reform sausage is stuffed with more gristle than meat. At least, that is, if you are a taxpayer hoping the bailout train is coming to a halt.

If you’re a banker, the bill is tastier. While banks opposed the legislation, they should cheer for its passage by the full Congress in the New Year: There are huge giveaways insuring the government will again rescue banks and Wall Street if the need arises.

http://www.bloomberg.com/apps/news?pid=20601039&sid=a48c8UpUMxKQ">more...

Here is the section of http://financialservices.house.gov/Key_Issues/Financial_Regulatory_Reform/FinancialRegulatoryReform/Bills_as_reported/hr4173.pdf|H. R. 4173> pertaining to the $4 trillion in emergency funding to be doled out during the next liquidity crisis:

FINANCIAL CRISIS MANAGEMENT
(1) IN GENERAL.

In unusual and exigent circumstances, the Board of Governors of the Federal Reserve System, upon the written determination, pursuant to section 1109 of the Financial Stability Improvement Act of 2009, of the Financial Stability Oversight Council, that a liquidity event exists that could destabilize the financial system .... and with the written consent of the Secretary of the Treasury (after certification by the President that an emergency exists), may authorize any Federal reserve bank, ....

Upon making any determination under this paragraph, with the consent of the Secretary of the Treasury, the Financial Stability Oversight Council shall promptly submit a notice of such determination to the Congress. The amounts made available under this subsection shall not exceed $4,000,000,000,000.

[Name removed]

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[girl gone mad]

3. I still like Barney, other than his banking ties.

I actually think there's hope for him. Maybe once he realizes that people in his district are paying attention, he'll do better. Maybe I'm just naive. :shrug:

Chris Dodd is even worse, and I think Dodd will be gone this year. That could be a catalyst to encourage more responsible behavior in the Finance Committee.

[Warpy]

4. Because jerks like the writer of this article hate him so much

I lived in Mass. and I voted for Frank and I know how to read and this bill limits the possible future bailouts to four trillion.

It doesn't hand a dime to them. It just says that is the limit that can possibly be spent to keep them in business.

After all, it would still be political suicide to use the "n" word.

Nationalization.

[girl gone mad]

6. No, the bill doesn't limit future bailouts to $4 Trillion.

The $4 Trillion is merely a limit on the amount that can be "pre-approved" without the need to go before congress. In addition to the $4T, banks can still get money through various other Fed programs (as they have during this crisis) or they can seek another TARP-style bailout.

[unblock]

9. frank is one of the best guys out there in congress.

none of them are perfect, but barney is definitely one of the best.

even as far as the banking side goes, he's actually been rather good for the most part.

certainly there are other who are FAR worse when it comes to banking.

[BeFree]

2. Never really liked Barney much

Even less now. He's been a DC insider too long. Time to retire him!!

[Fire1]

5. Disappointing but not at all surprising. Capitalism or

"corporatism" is the system firmly entrenched. It's not going anywhere. It is what it is and there will be no progressive president to change it. I didn't think there was anyone more progressive than Barney Frank and as it turns out, even he has his limitations.

[inna]

7. K&R, and beyond disgusting.

this is not about Barney, this is about our utterly FUBAR system.

wake up people.

[Don Caballero]

8. I am a huge fan of Rep. Frank

He speaks out on making drugs legal, online gambling and gay marriage. To hate him for such a minute reason is stupid.

[JoeyT]

10. 4 Trillion isn't exactly minute.

Though I'm a big fan of Frank as well. Especially when he breaks out a spine and makes people cry.
It's possible to disagree with a policy decision but still like a politician.

[westerebus]

11. So there's a check for 4 trillion dollars.

When have the PTB not spent that kind of money on themselves?

Like waving a steak in front of a bone yard dog.

Come and get it!!

What the left hand gives, the right hand takes away.

The system is broken. When the Congress can't write legislation that says as simply as possible, you screw up, that's your problem. No cookie for you. No soup either.

A what if clause for $4,000,000,000,000. Just in case. Maybe. Sorta. Kinda. Possibly.

Oh, hell just take the money!