Not Nationalizing the Banks Is Breaking the Law?

[filkertom]

Not sure what to think of this yet. Damned interesting, though, and if it gets a bit more mainstream play it could turn into... I don't know what yet. But it seemed the kind of thing we should be aware of. Thoughts?

Comments

[peachtales.livejournal.com]

You know, I thought there was something like that that I remembered hearing about, that was already codified in law. Interesting.
In an only slightly connected note, adding new laws on top of old laws we've forgotten about is, imo, how the tax code got to be the bloated beast it is today. Well, that and adding loopholes, then closing the loopholes, then adding new ones, all of them subject to the law of unintended consequences.

[kayshapero]

Ever have to maintain a legacy program that's been patched and re-patched and re-re-patched and nobody dares rewrite because nobody's entirely sure what it is supposed to do? Sounds all to familiar...

[salexa.livejournal.com]

From the wording it appears that action is required, not necessarily receivership. Action has been being taken... how effective it will be is still up in the air.

[baphnedia.livejournal.com]

Not always - with the original bank bailout under Bush, they only approved about half of failing institutions for federal assistance. The half that didn't receive assistance were almost all (if not all) bought up by the half that did receive help.

By the way this reads, it sounds like all undercapitalized institutions would have received some form of help, not allowing the Feds to pick and choose who they want to succeed.

[siliconshaman.livejournal.com]

Given the way the Banksters are not doing anything about containing the disaster, but are exploiting it for personal gain... I wouldn't be at all surprised if president Obama does do something like that, and frankly, I'd imagine that a majority of people would probably support him in that.

Now if only our lot weren't a bunch of spineless suck-up's.

[umbran.livejournal.com]

I think, with national fear of socialism, that putting all those banks into receivership is a non-starter. The "other action" clause gives them an out - they don't have to be nationalized, they just have to be acted upon.

[redneckgaijin.livejournal.com]

Agreed with the others: the "other action" clause allows the feds to do ANYTHING, so long as they don't do NOTHING.

Of course, the past forty years has proven that Washington doesn't give a rat's ass about obeying the laws it creates...