Unlimitted Power Again?
NECESSARY READING: Legislative Proposal for Treasury Authority to Purchase Mortgage-Relate Assets.
(See attached text document)
The attached document is a copy of the proposed legislation to handle the financial crisis that the Bush administration presented to congress last night. It is a short 3 page document, that I increased in type size to 4 pages so that we elders can read it without difficulty.
The administration is pushing for a quick vote due to the emergency conditions and the need to stabilize the financial markets before there is more damage to the overall economy.
I agree that something needs to be done and done quickly, but this is not the answer. Many in congress and both Obama and McCain have already voiced their objections to the legislation as proposed.
Today the DOW Industrials Index was down $373, NASDAQ was down $95 and S&P Index was down $48. Oil up $15/barrel (a record single day increase).
The proposal gives unlimited powers to the Secretary of the Treasury to expend 700 Billion dollars:
No one person should be authorized to exercise such unlimited and unregulated power. Write your congress person and Senators to insist that they not give this unsupervised unlimited power to a single man. With enough protest and encouragement to do better, the congress should be able to come to a reasonable conclusion including necessary protections before recessing and before the financial crisis becomes much worse.
_____________________________________________________________________________________
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.--The Secretary is authorized to
purchase, and to make and fund commitments to purchase, on
such terms and conditions as determined by the Secretary,
mortgage-related assets from any financial institution having its
headquarters in the United States.
(b) Necessary Actions.--The Secretary is authorized to take
such actions as the Secretary deems necessary to carry out the
authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out
the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services
authorized by section 3109 of title 5, United States Code,
without regard to any other provision of law regarding public
contracts;
(3) designating financial institutions as financial agents of the
Government, and they shall perform all such reasonable duties
related to this Act as financial agents of the Government as may
be required of them;
(4) establishing vehicles that are authorized, subject to
supervision by the Secretary, to purchase mortgage-related
assets and issue obligations; and
(5) issuing such regulations and other guidance as may be
necessary or appropriate to define terms or carry out the
authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary
shall take into consideration means for--
(1) providing stability or preventing disruption to the financial
markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority
granted in section 2(a), and semiannually thereafter, the
Secretary shall report to the Committees on the Budget,
Financial Services, and Ways and Means of the House of
Representatives and the Committees on the Budget, Finance,
and Banking, Housing, and Urban Affairs of the Senate with
respect to the authorities exercised under this Act and the
considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.--The Secretary may, at any time,
exercise any rights received in connection with mortgage-
related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.--The Secretary
shall have authority to manage mortgage-related assets
purchased under this Act, including revenues and portfolio risks
therefrom.
(c) Sale of Mortgage-Related Assets.--The Secretary may, at
any time, upon terms and conditions and at prices determined
by the Secretary, sell, or enter into securities loans, repurchase
transactions or other financial transactions in regard to, any
mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.--The
authority of the Secretary to hold any mortgage-related asset
purchased under this Act before the termination date in section
9, or to purchase or fund the purchase of a mortgage-related
asset under a commitment entered into before the termination
date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary's authority to purchase mortgage-related assets
under this Act shall be limited to $700,000,000,000 outstanding
at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for
the costs of administering those authorities, the Secretary may
use the proceeds of the sale of any securities issued under
chapter 31 of title 31, United States Code, and the purposes for
which securities may be issued under chapter 31 of title 31,
United States Code, are extended to include actions authorized
by this Act, including the payment of administrative expenses.
Any funds expended for actions authorized by this Act,
including the payment of administrative expenses, shall be
deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act
are non-reviewable and committed to agency discretion, and
may not be reviewed by any court of law or any administrative
agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities
granted in sections 2(b)(5), 5 and 7, shall terminate two years
from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code,
is amended by striking out the dollar limitation contained in
such subsection and inserting in lieu thereof
$11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under
section 2(a) of this Act shall be determined as provided under
the Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall
apply:
(1) Mortgage-Related Assets.--The term "mortgage-related
assets" means residential or commercial mortgages and any
securities, obligations, or other instruments that are based on or
related to such mortgages, that in each case was originated or
issued on or before September 17, 2008.
(2) Secretary.--The term "Secretary" means the Secretary of the
Treasury.
(3) United States.--The term "United States" means the States,
territories, and possessions of the United States and the District
of Columbia.
(See attached text document)
The attached document is a copy of the proposed legislation to handle the financial crisis that the Bush administration presented to congress last night. It is a short 3 page document, that I increased in type size to 4 pages so that we elders can read it without difficulty.
The administration is pushing for a quick vote due to the emergency conditions and the need to stabilize the financial markets before there is more damage to the overall economy.
I agree that something needs to be done and done quickly, but this is not the answer. Many in congress and both Obama and McCain have already voiced their objections to the legislation as proposed.
Today the DOW Industrials Index was down $373, NASDAQ was down $95 and S&P Index was down $48. Oil up $15/barrel (a record single day increase).
The proposal gives unlimited powers to the Secretary of the Treasury to expend 700 Billion dollars:
- appointing employees,
- entering into contracts,
- designating financial institutions as financial, agents of the Government,
- purchase mortgage-related assets and issue obligations,
- Issuing regulations and other guidance necessary to carry out the authorities of the Act.
- exercise any rights received in connection with mortgage-relate assets acquired,
- sell, or enter into securities loans, repurchase transactions with regard to any mortgage-related asset purchased, under terms and conditions determined by the Secretary
"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency. "The last time the congress was rushed into "necessary emergency legislation" the result was the Bush Administration launching an undeclared and unnecessary preventive war against Iraq, the single most disastrous foreign policy decision in the history of the United States. Can we trust them now?
No one person should be authorized to exercise such unlimited and unregulated power. Write your congress person and Senators to insist that they not give this unsupervised unlimited power to a single man. With enough protest and encouragement to do better, the congress should be able to come to a reasonable conclusion including necessary protections before recessing and before the financial crisis becomes much worse.
_____________________________________________________________________________________
LEGISLATIVE PROPOSAL FOR TREASURY AUTHORITY
TO PURCHASE MORTGAGE-RELATED ASSETS
Section 1. Short Title.
This Act may be cited as ____________________.
Sec. 2. Purchases of Mortgage-Related Assets.
(a) Authority to Purchase.--The Secretary is authorized to
purchase, and to make and fund commitments to purchase, on
such terms and conditions as determined by the Secretary,
mortgage-related assets from any financial institution having its
headquarters in the United States.
(b) Necessary Actions.--The Secretary is authorized to take
such actions as the Secretary deems necessary to carry out the
authorities in this Act, including, without limitation:
(1) appointing such employees as may be required to carry out
the authorities in this Act and defining their duties;
(2) entering into contracts, including contracts for services
authorized by section 3109 of title 5, United States Code,
without regard to any other provision of law regarding public
contracts;
(3) designating financial institutions as financial agents of the
Government, and they shall perform all such reasonable duties
related to this Act as financial agents of the Government as may
be required of them;
(4) establishing vehicles that are authorized, subject to
supervision by the Secretary, to purchase mortgage-related
assets and issue obligations; and
(5) issuing such regulations and other guidance as may be
necessary or appropriate to define terms or carry out the
authorities of this Act.
Sec. 3. Considerations.
In exercising the authorities granted in this Act, the Secretary
shall take into consideration means for--
(1) providing stability or preventing disruption to the financial
markets or banking system; and
(2) protecting the taxpayer.
Sec. 4. Reports to Congress.
Within three months of the first exercise of the authority
granted in section 2(a), and semiannually thereafter, the
Secretary shall report to the Committees on the Budget,
Financial Services, and Ways and Means of the House of
Representatives and the Committees on the Budget, Finance,
and Banking, Housing, and Urban Affairs of the Senate with
respect to the authorities exercised under this Act and the
considerations required by section 3.
Sec. 5. Rights; Management; Sale of Mortgage-Related Assets.
(a) Exercise of Rights.--The Secretary may, at any time,
exercise any rights received in connection with mortgage-
related assets purchased under this Act.
(b) Management of Mortgage-Related Assets.--The Secretary
shall have authority to manage mortgage-related assets
purchased under this Act, including revenues and portfolio risks
therefrom.
(c) Sale of Mortgage-Related Assets.--The Secretary may, at
any time, upon terms and conditions and at prices determined
by the Secretary, sell, or enter into securities loans, repurchase
transactions or other financial transactions in regard to, any
mortgage-related asset purchased under this Act.
(d) Application of Sunset to Mortgage-Related Assets.--The
authority of the Secretary to hold any mortgage-related asset
purchased under this Act before the termination date in section
9, or to purchase or fund the purchase of a mortgage-related
asset under a commitment entered into before the termination
date in section 9, is not subject to the provisions of section 9.
Sec. 6. Maximum Amount of Authorized Purchases.
The Secretary's authority to purchase mortgage-related assets
under this Act shall be limited to $700,000,000,000 outstanding
at any one time
Sec. 7. Funding.
For the purpose of the authorities granted in this Act, and for
the costs of administering those authorities, the Secretary may
use the proceeds of the sale of any securities issued under
chapter 31 of title 31, United States Code, and the purposes for
which securities may be issued under chapter 31 of title 31,
United States Code, are extended to include actions authorized
by this Act, including the payment of administrative expenses.
Any funds expended for actions authorized by this Act,
including the payment of administrative expenses, shall be
deemed appropriated at the time of such expenditure.
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act
are non-reviewable and committed to agency discretion, and
may not be reviewed by any court of law or any administrative
agency.
Sec. 9. Termination of Authority.
The authorities under this Act, with the exception of authorities
granted in sections 2(b)(5), 5 and 7, shall terminate two years
from the date of enactment of this Act.
Sec. 10. Increase in Statutory Limit on the Public Debt.
Subsection (b) of section 3101 of title 31, United States Code,
is amended by striking out the dollar limitation contained in
such subsection and inserting in lieu thereof
$11,315,000,000,000.
Sec. 11. Credit Reform.
The costs of purchases of mortgage-related assets made under
section 2(a) of this Act shall be determined as provided under
the Federal Credit Reform Act of 1990, as applicable.
Sec. 12. Definitions.
For purposes of this section, the following definitions shall
apply:
(1) Mortgage-Related Assets.--The term "mortgage-related
assets" means residential or commercial mortgages and any
securities, obligations, or other instruments that are based on or
related to such mortgages, that in each case was originated or
issued on or before September 17, 2008.
(2) Secretary.--The term "Secretary" means the Secretary of the
Treasury.
(3) United States.--The term "United States" means the States,
territories, and possessions of the United States and the District
of Columbia.
posted by Michael | 5:06 PM
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