Barney Frank: "There will be death panels enacted by this Congress"
Frank also said it was crucial to deal with the problem of institutions deemed "too big to fail." The administration wants to subject those firms to tougher oversight and have the ability to seize and dismantle them if they're on the verge of collapse. Regulators now can do that with banks, but not with other financial institutions, such as insurance companies.In other words, the federal government will make it its business to euthanize any non-bank financial institution that it thinks must die, unless the feds think it's too big to allow.
"We will be providing a mechanism for putting nonbank financial institutions out of everybody's misery," Frank said before borrowing a term from the healthcare debate to hammer home his point. "There will be death panels enacted by this Congress, but they will be for nonbank financial institutions that will not be considered too big to die."
Frank is the same blubbering asswipe who complained that AIG was paying hundreds of millions in bonuses...made possible by the bailouts he voted for. He's the same statist who said, "The government should not interfere with people's liberty unless there is a very good reason." Really, and just who gets to decide what a "very good reason" is?
Thomas Jefferson said, "Rightful liberty is unobstructed action according to our will within limits drawn around us by the equal rights of others. I do not add 'within the limits of the law' because law is often but the tyrant's will, and always so when it violates the rights of the individual."
So never mind competition determining insolvency: federal bureaucrats will decide which non-banks can continue and which must be shut down. This shouldn't surprise any of us who are paying attention. Starting with IndyMac in July 2008 (thanks to Chuck Schumer's rumors), the FDIC has been shutting down banks left and right. Every time I see a news article on another bank being shut down, it's easy for me to see past the lies. When a bank is suddenly seized by the FDIC (which declares "insolvency" based on bullshit accounting rules that were designed to make banks failures on paper) and sold within hours to its main competitor without any bids, what do you think is really happening?
It was bound to creep to non-banks as well. Don't think for a second that "Pay Czar" Kenneth Feinberg will limit himself to banks that received TARP money.