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» The Phony Financial Reform Act:

The Phony Financial Reform Act

Posted by on July 24, 2010 at 3:04 am.

The Financial Reform Act (HR4173) is another victory for the ruling elite on Wall Street. This legislation is another successful power grab by U.S. government and it’s masters at the Federal Reserve.  Under this act there are some incredible new powers given to the Federal Reserve. Remember the Federal Reserve IS a private bank. Also remember this is the same private bank that refuses to tell what happened to the  trillions that were stolen from you and me: http://loveforlife.com.au/content/09/01/03/fed-refuses-disclose-recipients-2-trillion-mark-pittman-12th-december-2008 Under provisions of  the Financial Reform Act, the treasury secretary may bail out or seize financial corporations whose possible financial failure is a threat to the financial stability of the United States. Sound familiar? Of course the treasury secretary isn’t allowed to do this without the approval of the Federal Reserve. That’s right, our government officials now need the approval of a private banking corporation to steal our money.   Here it is in section 203:

Section 203 of Title II of the bill empowers the Secretary of Treasury, with a two-thirds vote from the Federal Reserve and the Federal Deposit Insurance Corporation, to take into government “receivership” any “financial company” whose failure he determines “would have serious adverse effects on financial stability in the United States. “

Once the Treasury Secretary puts the company into “receivership” of the FDIC, the government may — under Section 210 — “take over the assets of and operate the covered financial company with all of the powers of the members or shareholders, the directors, and the officers of the covered financial company, and conduct all business of the covered financial company,” “perform all functions of the covered financial company, in the name of the covered financial company,” and “ provide for the exercise of any function by any member or stockholder, director, or officer of any covered financial com1pany for which the Corporation has been appointed as receiver under this title.”    This is one huge power grab. Not to mention the fact that it is legalizing the theft of taxpayer money that has been taking place for the past several years. The legislation also allows for the government access to all of our financial transactions: http://www.associatedcontent.com/article/5420026/senate_passes_financial_reform_bill.html I guess we shouldn’t be surprised that the architect of the “reform” act is senate banking committee chairman Chris Dodd. Senator Dodd is the guy who got special privilege mortgage loans from Countrywide Mortgage: http://www.onenewsnow.com/Politics/Default.aspx?id=319108   Any real reforms such as too big to fail, the restoration of Glass-Steagall, limits on interest rates and payday loans were rejected. The reform act also does nothing to control the derivatives market: http://www.investingcontrarian.com/financial-news-network/major-loophole-in-senate-financial-reform-bill-derivatives-reform-may-be-illusory/   Even the Massachusetts Tea Party candidate Scott Brown did the banks a favor by allowing them to use 3 percent of their capital to invest in hedge funds.  That 3 percent could be leveraged to over 100 percent losses  of bank capital: http://tarpley.net/2010/07/15/obama-dodd-frank-finreg-monstrosity-delays-derivatives-curbs-until-2022/   Senator Dodd admits this law will do nothing to prevent the next financial crisis: http://www.zerohedge.com/article/everything-you-need-know-about-dodds-financial-reform-bill-legislation-will-not-stop-next-cr   Dodd is right, not only will this act not prevent another financial crisis, it invites another crisis.  I must be mistaken though,  because the puppet of Wall Street  named  Barack Obama has assured us that:   “Because of this law, the American people will never again be asked to foot the bill for Wall Street’s mistakes,”and “There will be no more taxpayer-funded bailouts. Period.”  We shall see.

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