Restoring American Financial Stability

by Chris | May 15th, 2010

Senate Committee on Banking, Housing, and Urban Affairs, Chairman Chris Dodd (D-CT) has created a bill that creates a non accountable, all powerful "independent" Federal Bureau.  Under the deceptive name of the "Restoring American Financial Stability Act."

After reading this bill (something our elected representatives seem to be incapable and unwilling to do) it is clear that this is simply a massive shift of ALL financial authority to the Federal Reserve.  More specifically The Financial Stability Oversight Council, a 9 member council comprised of the Treasury Secretary, someone in the Federal Reserve Board, SEC, CFTC, OCC, FDIC, FHFA, the new Consumer Financial Protection Bureau and one “independent member.”

Read The Official Summary Here (11 pages)

Here’s the quick and dirty:

"This creates a new independent watchdog, housed at the Federal Reserve" called The Financial Stability Oversight Council referred to above.

It also creates a new “independent” Federal Bureau, “The Consumer Financial Protection Bureau”  The director will be appointed by the President and confirmed by the Senate.

A couple new offices will be created:
The Office of Financial Literacy (propaganda arm) they’re calling it the “educational” component.

The Office of Financial Research (the muscle).  This is where the Fed will keep all the dirt that will be handy to use for blackmail and other coercive tactics.

The Federal Reserve and this all powerful 9 member council will have all “Authority to examine and enforce regulations for banks and credit unions with assets of over $10 billion and all mortgage-related businesses (lenders, servicers, mortgage brokers, and foreclosure scam operators) and large non-bank financial companies, such as large payday lenders, debt collectors, and consumer reporting agencies.

So it’s not just the "greedy fat cat" banks (to use our Presidents term). They’re focused on large banks to eliminate the competition and favor community banks to maximize their control.  However, the Fed will also control essentially all lending and investments.

Additionally this 9 member council can make sweeping policy changes with no checks and balances with only a 2/3 vote.  Thus any 6 of these members will control all financial transactions and financial products in the entire nation.

Finally, in addition to unlimited binding power over all of our nations finances.  Once they get you on their dole, you will always be controlled by them.  To quote the lyrics of the Eagles famous Hotel California song that Dodd cites in the bill, “You can check in any time you like, but you can never leave.”

Here is the exact quote from the official summary:
"No Evasion: Large bank holding companies that have received TARP funds will not be able to avoid Federal Reserve supervision by simply dropping their banks. (the Hotel California Provision)."

This is to enable the Fed to control responsible financial institutions like Wells Fargo that did not need, want or request TARP money.  They were forced to take the money, then paid it back as soon as they were allowed.  Under this new bill an institution like this would first be forced to take money they don’t need or want, then the government will always have control over that institution even after funds are returned.

If this passes the omnipotent 9 member council representing the Federal Reserve will literally control the entire economy of the U.S. … and “you can stab it with your steely knives, but you just can’t kill the beast.”

Read The Entire Bill Here (1,136 pages)



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