http://news.yahoo.com/s/afp/20091026...ankingpolitics
Quote:
WASHINGTON (AFP) – A bill to be introduced in Congress by a key ally of President Barack Obama would make it easier for the US government to seize control of troubled financial institutions that are considered too big to be allowed to fail, The New York Times reported.
Citing a senior administration official, the newspaper said the measure would be proposed this week by Representative Barney Frank, chairman of the House Financial Services Committee, after extensive consultations with Treasury Department officials.
The legislation would make it easier for the government to throw out the financial company's management, wipe out the shareholders and change the terms of existing loans held by the institution, the report said.
Treasury Secretary Timothy Geithner was planning to endorse the changes in testimony before the House Financial Services Committee on Thursday, the paper noted.
Great. I love it when the government gets in the business of wiping out shareholders. I guess the bailouts turned into such a mess that the pols just can't wait to do it again, just on a grander scale.

Discuss.