Newspaper logo  
 
 
Local Stories, Events

Ref. : Civic Events

Ref. : Arts & Education Events

Ref. : Public Service Notices

Books, Films, Arts & Education
Letters

Ref. : Letters to the editor

Health Care & Environment

11.18 How Extreme Weather Is Shrinking the Planet

11.18 Air pollution levels ‘forcing families to move out of cities’ [like from desertification, lack of drinkable water and rising oceans, there will also be pollution-caused immigration until humans fix things]

11.17 Policies of China, Russia and Canada threaten 5C climate change, study finds [Climate catastrophe is increasingly likely without worldwide organization, funding and commitment to winning THE WAR AGAINST GLOBAL WARMING.]

11.16 Scotland was first Industrialized Country to Run wholly on Wind in October

11.16 How pesticide bans can prevent tens of thousands of suicides a year [how many thousands more die early from eating pesticide-laced food?]

11.15 The Earth is in a death spiral. It will take radical action to save us [fossil fuel burning, un-recyclable plastic production/use and methane gas release must cease ASAP.]

11.15  The long read:  The plastic backlash: what's behind our sudden rage – and will it make a difference? [the world wants to throw-up...]

11.15 Claws out: crab fishermen sue 30 oil firms over climate change [workers are waking-up...]

11.15 Trump administration to cut air pollution from heavy-duty trucks

11.14 Backed by Ocasio-Cortez, Youth Climate Activists Arrested in Pelosi's Office Demanding Democrats Embrace 'Green New Deal'

11.13 What would a smog-free city look like?

11.13 Global report highlights Australia’s renewables potential amid mixed signals for coal

11.13 Interior department whistleblower: Ryan Zinke hollowed out the agency

11.12  This Land is Your Land:  The Zinke effect: how the US interior department became a tool of industry [behaving ignorantly again...]

11.12 Planned Parenthood's new president warns of 'state of emergency' for women's health

News Media Matters

11.19 The Biggest Threat to Free Speech No One Is Talking About

Daily: FAIR Blog
The Daily Howler

US Politics, Policy & 'Culture'

11.19 Last Week Tonight with John Oliver 11/18/2018 (HBO) [29:26 video]

11.19 Michael Bloomberg: Why I’m Giving $1.8 Billion for College Financial Aid

11.19 Trump’s Diminishing Power and Rising Rage

11.19 Trump Says He Was 'Fully Briefed' and Also 'Not Briefed Yet' But Either Way Saudi Crown Prince 'Absolutely' Not Involved Because Trump Knows 'Everything That Went On' Without Listening to Tape of Khashoggi Murder

11.19 'We Need New Leaders, Period': Progressive Newcomers Urge Democrats to Embrace Bold Agenda or Face Primary Challenges [Current Democrat leaders are highly compromised by corporate donations]

11.19 SNL explains Jeff Bezos and Amazon’s HQ2 strategy: trolling President Trump [2:55 SNL video]

11.18 Trump says Pelosi deserves speakership, offers Republican votes [An affirmation of Pelosi's unsuitability]

11.18 Khanna to Pelosi: Don't Just Create Green New Deal Select Committee, Make Ocasio-Cortez Its Chair [Will Pelosi earnestly change, or end her career in disgrace?]

11.18 Chuck Schumer, Feckless Hack [Neoliberal Democrats must go!]

11.18 What the State of the VA Tells Us About Trump’s War on Welfare [Privatizing often results in outright fraud and higher costs by private prisons, privatized health insurance and health care, privatized public schools and online "colleges" like Trump University]

11.17 What the State of the VA Tells Us About Trump’s War on Welfare

11.17 As Energy for Medicare for All Explodes, Steny Hoyer's Plan Includes Waiting for Trump to Help Make Obamacare Better [Another who is unfit to be Democrat leader]

11.17 'A Staggeringly Bad Idea': Outrage as Pelosi Pushes Tax Rule That Would 'Kneecap the Progressive Agenda' [Unfit to be Democrat leader]

11.17 Trump Is Starting to Panic

Justice Matters
High Crimes?

11.14 The Guardian view on Yemen’s misery: the west is complicit [WAR CRIMES]

Economics, Crony Capitalism

11.19 Bankrupt Sears wants to give executives $19 million in bonuses [blatantly immoral and sick to richly reward those who led the company into the bankruptcy]

11.18 Big Pharma Bankrolled Pro-Trump Group As Trump Pushed Pharma Tax Cut [Corruption Central!]

11.16 Amazon’s HQ2 Will Get a Tax Break Designed to Help the Poor [a Republican program that directly helps participating wealthy companies—but only helps workers if and when 'trickle-down' occurs.]

11.16 Trump doesn’t want to punish Saudi Arabia over Khashoggi. His new sanctions prove it. [George W. Bush made a similar immoral decision for the same oily reasons after 9-11, protecting Saudi defense contracts while facilitating the slaughter of poorer Arab "terrorists" in the region.]

International & Futurism

11.18 New Evidence Emerges of Steve Bannon and Cambridge Analytica’s Role in Brexit

11.18 France demands UK climate pledge in return for Brexit trade deal [Excellent!]

11.17 Saudi crown prince's 'fit' delays UN resolution on war in Yemen

11.17 Thousands gather to block London bridges in climate rebellion [We're losing WWIII because the enemy is invisible while we're like frogs slowly cooking. We aren't informed enough to be alarmed, but must get organized and motivated to fight back. We need a War Plan to ruthlessly pursue the fight of our lives!]

11.17 CIA finds Saudi crown prince ordered Jamal Khashoggi killing – report

We are a non-profit Internet-only newspaper publication founded in 1973. Your donation is essential to our survival.

You can also mail a check to:
Baltimore News Network, Inc.
P.O. Box 42581
Baltimore, MD 21284-2581
Google
This site Web
  Treasury and the Fed Don't Need New Powers, They Need to Use the Power They Have
Newspaper logo

COMMENTARY:

Treasury and the Fed Don't Need New Powers, They Need to Use the Power They Have

by Dave Lindorff
Tuesday, 24 March 2009
While average Americans all know that corporations have become far too big and powerful, anti-trust in Washington has become almost a dirty word. It needs to be dusted off and trotted out as a major policy tool, if this country is to return to economic health.
Wait a minute! Did I hear correctly? Did Treasury Secretary and former New York Federal Reserve Bank screw-up Tim Geithner really tell a House Financial Services Committee today that he needed “new powers” to allow the federal government to take control of non-bank financial corporations whose actions threaten the financial system or the economy and “break them up”?

The subject under discussion at the hearing was AIG, and Geithner and Fed Chairman Ben Bernanke, under attack for those AIG “bonus payments” to executives, were trying to talk tough about the evil insurance giant.

But aren’t the powers that Geithner is calling for exactly the powers that he and Bernanke already have in the case of the banking industry?

Yes they are.

So why aren’t we seeing the Obama administration and the Fed going after the banking giants that have been co-conspirators with AIG in wreaking havoc with the US and the global economy by creating dodgy structured financial instruments that allowed banks and other financial companies to make huge off-balance-sheet bets that virtually guaranteed a future collapse?

Good question, but not one that the House Finance Committee was asking.

Instead of doing the obvious—which would be to use the Fed’s and the Federal Deposit Insurance Corporation’s powers to take over failed banking institutions, break them up, and sell the healthy parts off to stronger institutions—Geithner, Bernanke and the Obama financial team have been pouring dollars into a group of zombie banks that are already technically insolvent by any honest accounting standards, and that have no chance of standing on their own. They are borrowing money at such a prodigious rate that the Chinese government, America’s major creditor, and the United Nations, are talking about the need to do away with the dollar as the global currency, to be replaced by some basket of currencies, and in the process virtually assuring that the US currency will shrink dramatically in value, They are putting a colossal debt upon future generations of Americans. And they are putting at risk all the progressive goals that voters sent Obama to Washington expecting him to enact: health care reform, energy reform, education reform, etc.

If Geithner and Bernanke think it is important, and appropriate, to break up dangerously large and threatening enterprises like AIG, why are they not even talking about breaking up Citigroup, Bank of America, Wells Fargo, Goldman Sachs and other overlarge large banking firms?

Too big to fail should simply mean too big to exist. It’s that simple.

Not one more dollar should be spent trying to rescue these zombie banks. In fact, they should be ordered to give back the hundreds of billions of dollars that were already poured into them, most of which they have reportedly simply invested in Treasury notes, since there was nobody creditworthy who wanted to borrow the money. Then the regulators should move in and shut all the big banks down, and begin the process of tearing them apart. Those parts that are deemed hopelessly in debt because of huge holdings of Credit Default Swaps and other toxic financial products should be shut down, with shareholders and bondholders taking the hit. The healthy parts—the banks with all the deposits—can be auctioned off in pieces to smaller state and regional banks.

Never again should there be federal banks whose branches and brokerage and insurance subsidiaries span the nation and the globe.

There is no need for such entities. For one thing, they are too powerful politically, with operations in every congressional district, much like the Pentagon and the arms industry, and we’ve seen where that gets us. For another, particularly when it comes to insurance, the regulators are state based, making national companies largely out of reach. Finally, national banks have little or no interest in small businesses and their credit needs.

If large global firms need bank loans, let the banks organize syndications to accommodate them. That has always worked in the past, and in fact, is still done for big global firms.

Geithner should be forced to explain why he needs new powers to break up non-bank financial companies, if he is unwilling to use the powers he already has to break up too-large banks.

Then he should be fired and someone should be brought in to replace him who will demand the breakup of those banks.

While we’re at it, President Obama should also be asked why his Treasury Secretary needs “new powers” to go after companies like AIG that are too large for the good of the country. That power already resides in the Federal Trade Commission and the Justice Department, both of which can use their anti-trust authority to break up companies that are deemed anti-competitive—surely an apt characterization of AIG.

While average Americans all know that corporations have become far too big and powerful, making the old Rockefeller Standard Oil Trust look quaint by comparison, anti-trust in Washington has become almost a dirty word. It needs to be dusted off and trotted out as a major policy tool, if this country is to return to economic health.


Dave Lindorff in Washington

About the author: Philadelphia journalist Dave Lindorff is a 34-year veteran, an award-winning journalist, a former New York Times contributor, a graduate of the Columbia University Graduate School of Journalism, a two-time Journalism Fulbright Scholar, and the co-author, with Barbara Olshansky, of a well-regarded book on impeachment, The Case for Impeachment. His work is available at www.thiscantbehappening.net.



Copyright © 2009 The Baltimore News Network. All rights reserved.

Republication or redistribution of Baltimore Chronicle content is expressly prohibited without their prior written consent.

Baltimore News Network, Inc., sponsor of this web site, is a nonprofit organization and does not make political endorsements. The opinions expressed in stories posted on this web site are the authors' own.

This story was published on March 24, 2009.
 

Public Service Ads: