Beyond the fact that there is $700 billion dollars in the hands of the Secretary of the Treasury to buy up and transform and manipulate at his whim “troubled assets”, there is a provision in this bill that should send shivers down everyone’s spine. Mind you this is a first draft of the bill released for public view:
(c) 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, the following:
(3)Designating financial institutions as financial agents of the Federal Government, and such institutions shall perform all such reasonable duties related to this Act as financial agents of the Federal Government as may be required.
Does this sound like ‘The Godfather’ to anyone else? “Now, I will do you this favor, but one day I will call on you to do me a favor…and you may not refuse.” Considering what our Federal government has done under the umbrella of the Patriot Act, it concerns me that this ambiguous provision is in this proposal. I can only imagine what “reasonable” things the Secretary can think up for my financial institution to do on behalf of the Federal government.