When congressmen weren’t busy passing 2,000 page health care bills they hadn’t read, they were busy voting for a 1,000+ page financial reform bill that they hadn’t read.
But now, OMG, someone has actually read the whole bill the House passed. I thank David Reilly of Bloomberg News. He reads it so we don’t have to. One bombshell on page 438: the Fed and the Treasury Secretary will be allowed to declare a “financial crisis,” which would give them the power to lend private banks up to $4 trillion. All without congressional approval.
The bill includes a laughable provision to safeguard your tax money:
“No member of the Board of Governors of the Federal Reserve System shall vote to authorize any action… unless that member believes and the Secretary of the Treasury believes:
(A) that there is at least a 99 percent likelihood that all funds disbursed or put at risk by such action will be repaid to the Federal Reserve System; and
(B) that there is at least a 99 percent likelihood that all interest due on any funds disbursed will also be paid to the Federal Reserve System.”
Also, the bill creates more dubious government jobs. Reilly writes:
The bill calls for more than a dozen agencies to create a position called “Director of Minority and Women Inclusion.” People in these new posts will be presidential appointees. I thought too-big-to-fail banks were the pressing issue. Turns out it’s diversity, and patronage.
The bill passed the House 223 to 202. Maybe the Senate will kill some of the more ridiculous provisions. At least it has the filibuster.