Say No to Taxpayer Rescue of Wall Street by Amanda Teegarden

Say NO to Taxpayer Rescue of Wall Street

(original post OK-Safe website http://www.ok-safe.com/Website...)

By Amanda Teegarden
Opinion
9/29/08

The U.S. Congress, the Treasury Secretary, and the Federal Reserve, have decided they
are the ”last best hope” for saving the American economy and are contemplating a
historical (hysterical) piece of legislation to fix the problem.

According to recent AP accounts, the bill started out 3 pages long, progressed to 42 pages
by mid-week, grew to 102 pages, and is now (Monday) 109 pages long.  Amazing.

Called the “Emergency Economic Stabilization Act of 2008” (last week it was the
“Economic Recovery and Accountability Act of 2008”), the legislation appears as an
amendment to already active bill H.R. 3997.

Today, the US House defeated this bill, by a vote of 228 to 205, with 1 not voting.  Could
it be that Congress has listened to the taxpayers and said NO to something so obviously
wrong?  

Wait – the legislators go back to Washington on Thursday to work out a compromise.  

The vote should still be a resounding NO!  

A brief examination of the H.R. 3997 amendment found these serious concerns::

The proposed legislation, if passed as written, gives: 
• The Treasury Secretary "unlimited" rights
• Creates another federal unelected authority
• "Federalizes" financial institutions by designating them as financial agents of the
Federal Government
• Allows the Secretary "Coordination With Foreign Authorities And Central
Banks"
• Prohibits public disclosure of the contents of reports if they are in conflict with
"the interests of national defense or national security or in the conduct of foreign
affairs" (this could mean anything)
_______________________________________________________________________ 

Excerpts from the 109-page amendment to H.R. 3997, called the "Emergency Economic
Stabilization Act of 2008" (aka Treasury bailout plan for Wall Street.). 

Purpose (pp.2-3) 
(1) To immediately provide authority and facilities that the Secretary of the Treasury can
use to restore liquidity and stability to the financial system of the United States

Definitions (pp.3-4): 
(1) The term ‘‘appropriate committees of Congress’’ means— 
(A) the Committee on Banking, Housing, and Urban Affairs, the Committee on Finance,
and the Committee on the Budget, and the Committee on Appropriations of the Senate;
and 

(B) the Committee on Financial Services, the Committee on Ways and Means, and the
Committee on the Appropriations of the House of Representatives. 

(2) BOARD.—the term ‘‘Board’’ means the Board of Governors of the Federal Reserve
System. 

(3) CONGRESSIONAL SUPPORT AGENCIES.—the term ‘‘congressional support
agencies’’ means the Congressional Budget Office and the Joint Committee on Taxation. 

[(4) FINANCIAL INSTITUTION.—the term ‘‘financial institution’’ means any
institution, including any bank, savings association, credit union, security 
broker or dealer, or insurance company, organized and regulated under the laws of the
United States or any State, territory, or possession of the United States, the District of
Columbia, Commonwealth of Puerto Rico, Commonwealth of Northern Marianas
Islands, Guam, American Samoa, or the United States Virgin Islands, and having
significant operations in the United States, but excluding any central bank of, or
institution owned by, a foreign government.]                                                     

(7) SECRETARY.—the term ‘‘Secretary’’ means the Secretary of the Treasury.    

(8) TARP – the term “TARP” means the Troubled Asset Relief Program established
under section 101.

(9) TROUBLED ASSETS.—The term ‘‘troubled assets’’ means (A) residential or
commercial mortgages and any securities, obligations, or other instruments that are based
on or related to such mortgages, that in each case was originated or issued on or before
March 14, 2008, the purchase of which the Secretary determines promotes financial
market stability; and, (B) any other financial instrument that the Secretary, after
consultation with the Chairman of the Board of Governors of the Federal Reserve
System, determines the purchase of which is necessary to promote financial market
stability….

Authority, pp.6 - 8
(1) AUTHORITY.—The Secretary is authorized to establish the Troubled Assets Relief
Program (or TARP) to purchase, and to make and fund commitments to purchase,
troubled assets from any financial institution, on such terms and conditions as are
determined by the Secretary, and in accordance with this Act and the policies and
procedures developed and published by the Secretary. 

(3) ESTABLISHMENT OF TREASURY OFFICE… 


(c) NECESSARY ACTIONS.—The Secretary is authorized to take such actions as the
Secretary deems necessary to carry out the authorities in this Act, including, without
limitation, the following: 
(1) The Secretary shall have direct hiring authority with respect to the appointment of
employees to administer this Act. 
(2) Entering into contracts, including contracts for services authorized by section 3109 of
title 5, United States Code. 
(3) Designating financial institutions as financial agents of the Federal Government
and such institutions shall perform all such reasonable duties related to this Act as
financial agents of the Federal Government as may be required. 

Foreign Coordination, p. 32 
SEC. 112. COORDINATION WITH FOREIGN AUTHORITIES AND CENTRAL
BANKS. 
The Secretary shall coordinate, as appropriate, with foreign financial authorities and
central banks to work toward the establishment of similar programs by such authorities
and central banks.  To the extent in which foreign financial authorities or banks hold
troubled assets as a result of extending financing to financial institutions that have failed
or defaulted on such financing, such troubled assets qualify for purchase under section
101

Reports, p. 66 
REPORTS.—(f) Not later than 60 days after the confirmation of the Special Inspector
General, and every calendar quarter thereafter, the Special Inspector General shall 
submit to the appropriate committees of Congress a report summarizing the activities of
the Special Inspector General during the 120-day period ending on the date of such
report..... 
(2) Nothing in this subsection shall be construed to authorize the public disclosure of
information that is— 
(A) specifically prohibited from disclosure by any other provision of law; 
(B) specifically required by Executive order to be protected from disclosure in the
interest of national defense or national security or in the conduct of foreign affairs; or 
(C) a part of an ongoing criminal investigation.
____________________________________________________________________ 

This is too much power for the Treasury Secretary, too much foreign entanglement, and
beyond the restrictions of the US Constitution.  Say NO to bailout, in any version.

Amanda Teegarden



Endnotes
Background:
Excerpt from the Prepared Testimony of Subcommittee Chairman Lauch Faircloth (R-
NC), Hearing on S. 1315 - "The U.S. Markets Security Act of 1997." November 5,
1997 (courtesy of Vicky Davis)    
Excerpt from above testimony: 
"Over the last several years, China, and companies connected to the government have
been quietly gaining a greater presence in our markets. 
Our witnesses today will tell us that China and related companies have issued nearly $7
billion in bonds in the U.S. in the past decade. In addition, there are currently 17 Chinese
companies listed on the New York Stock Exchange. I am also told that as China begins
so called 6 4privatization" -- as many as 350 companies a year may seek financing in our
securities markets during the coming decade....like the Chinese International Trust and
Investment Corporation have close connections to the Chinese Army. They have issued
$800 million in dollar denominated bonds over the past few years. Their bonds have been
underwritten by major U.S. firms, like Goldman Sachs."


Links:
1)1997 Senate Testimony: 
http://banking.senate.gov/97_1... (courtesy of Vicky
Davis)
2)“Emergency Economic Stabilization Act of 2008”
http://banking.senate.gov/publ...
3)"Economic Recovery and Corporate Accountability Act of 2008" by Chairman Chris
Dodd
http://banking.senate.gov/publ...
TreasuryBailoutplanAYO08B68_xml.pdf
4)US Senate Committee on Banking, Housing, and Urban Affairs
http://banking.senate.gov/publ...
ffcc-c299-4081-b76a-da2c4fe3a1b7