U.S. Seeks Expanded Power to Seize Firms

The Obama administration is considering asking Congress to give the Treasury secretary unprecedented powers to initiate the seizure of non-bank financial companies, such as large insurers, investment firms and hedge funds, whose collapse would damage the broader economy, according to an administration document.

The government at present has the authority to seize only banks.

Giving the Treasury secretary authority over a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process. The Treasury secretary, a member of the president’s Cabinet, would exercise the new powers in consultation with the White House, the Federal Reserve and other regulators, according to the document.[Emphasis added]

B.O. and company are nothing if not consistent. The overarching theme of the administration thus far has been an unrelenting series of policies and edicts aimed at increasing the arbitrary power of the executive at the expense of anyone or anything that could possibly get in their way, and to hell with the trivialities of observing the Constitution.

What adds the true touch of surrealistic quality is the accompaniment of B.O.’s best Alfred E. Neuman “What, me worry?” grin, and giggles while being interviewed on 60 Minutes (among other venues), about the continuing monetary soap opera.

Unfortunately, the joke’s on us, since we’ll get to pay for it all, one way or another.