FDIC to have power to seize "too big to fail" companies

[WabashMX5]

In a great victory for the proletariat, Dear Leader is making it easier for .gov to seize the means of production:

WASHINGTON — The Obama administration will soon make public a new approach to dealing with so-called "too big to fail" financial firms that would make it easier for the government to seize control of them and make major changes, an administration official said on Monday.

The strategy would make it easier for the government to oust managers, wipe out shareholders and restructure the firm's outstanding loans, the official said.

* * *

"Resolution authority," or empowering the government to deal with large troubled firms that are not banks, is crucial to reforming financial regulation, lawmakers and Obama have said for months since last year's severe financial crisis.

The president wants to avoid another episode like the Bush administration's frantic and confused efforts in 2008 to address crises at former Wall Street giants Lehman Brothers and Bear Stearns, former mega-insurer American International Group, and other firms that got massive taxpayer bailouts.

Original here: U.S. to unveil new "too big to fail" strategy | Comcast.net

Sure is nice to see a straightforward AP article with no editorializing, too....

 

[Big John]

IBTL

 

[WabashMX5]

IBTL

Why? Where's the dupe?

 

[rambone]

What do they call that when your Government dictates how you run your own company??

Oh yeah, Fascism.

 

[DWFan]

And these same elected officials who promote "resolution authority" refuse to sieze the records of Countrywide for illegal housing loan practices because it might cause a problem for groups like ACORN.