17 June 2009

Bureaucratic Creep

The LA Times is reporting that President Obama is pushing for sweeping new regulations on just about any industry that deals with finances:

'Reporting from Washington -- The financial regulation plan that President Obama will roll out today will impose stricter and broader government oversight of the nation's banking system -- including tough new requirements on companies whose failure would threaten the economy, and creating new agencies to regulate banks and to protect consumers. The most sweeping overhaul of financial rules since the Great Depression also would grant the Federal Reserve broad new powers to oversee large firms, such as insurance companies, that it does not regulate directly. The Fed would have the authority to seize and dismantle these companies if they are in danger of failing. ... The plan must be approved by Congress. In drafting the measures, Obama administration officials had two key concerns -- moving quickly, before the momentum for reform evaporates, and avoiding withering turf battles with regulators and lawmakers that could derail the effort.'

Wow - am I the only one finding it odd that the president wants the executive branch to 'seize and dismantle' private companies upon an internal finding that the company is 'failing,'
and that the White House drafted this legislation itself?  Has Congress become his personal rubber stamp?  And how does that article (published June 17) with this article publishedthe same day.  The first addresses massive legislative proposals, while the latter states that the Administration is only trying to deal with the immediate situation, and is moving quite cautiously.  They can't both be right.

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