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  • Video: Barney Frank's Permanent TARP

    As early as today, the House is set to approve Rep. Barney Frank’s (D-MA) financial regulation bill intended to prevent future Wall Street bailouts by granting regulators sweeping new powers to control firms deemed “too big to fail.” But as Heritage Senior Research Fellow David John explains below, the Frank bill actually encourages future bailouts by signaling to markets that the targeted firms guaranteed against failure, thus enabling risky business decisions. Worse, by empowering the FDIC to seize and close failing financial institutions, while also establishing a fund enabling the FDIC to accomplish these tasks, the Frank bill does not end TARP, it creates a permanent TARP. Watch:

    There is a better alternative: add a new chapter to the bankruptcy code that is explicitly designed to meet the special circumstances of “too big to fail” financial institutions.

    Posted in Economics [slideshow_deploy]

    12 Responses to Video: Barney Frank's Permanent TARP

    1. Bill Lee, ArkLaTex a says:

      How much longer are we going to allow these "clowns" to mess up this Country?

    2. Pingback: $17.9 Billion: The Monthly Interest For Our National Debt « The Divine Lamp

    3. Stirling, Huntingdon says:

      First these bozos in congress create the laws that created this mess. Next these bozos in congress watch their laws wreak havoc on the economy (US and Overseas). Next these bozos in congress gladly bail everyone out, but not admit that they created the mess in the first place. And lastly these bozos in congress claim that they saved us from ourselves. Therefore they have shown us why they should make the decisions and not us. So why wouldn't they want to make TARP a permament fixture to our economy? It makes sense within their thinking, but not ours.

    4. Roger S., Ma. says:

      Punishing the "Fat Cats" whom the Government encouraged in the first place? — A permanent TARP=permanent "big emergency". — Solution: put a "tarp" over Big Brother Gov., padlock the corner eyelets to solid ground anchors: don't let anyone out of the "vote-out" beginning next year. There's more than one "Barney" in Congress; more than one whom nobody needs there.

      Then, term limits, AND session limits: Congress to convene after Dec. 1st of each year, as per original Constitution, and mandated to close its session by March 31st of the next year. That would force them to focus on the really important Federal issues and prevent them from becoming carried away with special projects at the taxpayers' expense. 4 months of "legislating" per year are enough. (Cut their salaries and benefits by two-thirds, as well; they'd all have to get a "regular job" like all the rest of us. Same goes for their staffs!)

    5. Natalie Georgia says:

      The WORST part of B Franks bill is that he has ACORN in line to sit on the financial services committee! ACORN-HELLO This is just beyond ridiculous.

    6. Lloyd Scallan - New says:

      Regardless of how disastrous Barney Frank and Obama are to this country, I disagree with the "stoning" of Wall Street! I have one question that begs to be answered. If by taking money out of pockets of Wall Street (or any other precieved

      "rich" groups or companies), will that put one more penney in your pockets? Your taxes will not go down. Deals, such as TARP, will not stop being made in Washington. This continues to be the tactic of "class warfare" used since time began. It's pure "jealousy" the havenots have towards the haves. The only thing that will happen when politicians kill Wall Street, businesses throught this contry will die. When that happens, we all die.

    7. Slick - Nebraska says:

      You know, I am furious with all of the government interference in our banking industry, in wall street, the auto industry, and every other major business in this country. All I want to do is fire every elected official in sight and start over.

      BUT if all of those businesses would have done the right things BEFORE Big O was elected, perhaps there would not have been a "good crisis" to take advantage of. Poor business practices in the private sector provides the perfect justification for the federal government to mess in OUR business! So let this be a lesson to all of us . . . if you don't want Big Brother breathing down your neck, make SURE you are taking care of business in the appropriate way!

      As Rohm Emmanuel says, one should "never let a good crisis go to waste" and I dare say that this administration is sure making hay while the sun shines! Only 325 days until the mid-election!

    8. Linda Carlsbad, CA says:

      Put all of them away in mental hospitals! Where are the smart lawyers, we need your help NOW!

    9. philip says:

      Crooks at work in Obama administration at work taxing the poor to pay those to big to fail. Not to support the Barny Franks who couldn't even pay his taxes we need to remove these criminals from our goverment and not reward those who can't manage their companies big or small

    10. Jeanne Stotler, wood says:

      This is the same guy who ignored what was going on with Fannie May and Freddie Mac, Do you think I trust him, he's part of the problem, a BIG PART./

    11. n says:

      Is it time for a NEW DECLARATION OF INDEPENDENCE"?

    12. Harry Snyder Mich. says:

      It is pretty clear by now that not just the Obama Chicago gang, but the entire Democrat leadership is trying deliberately to bankrupt this country. The interest on the national debt will be astronomical by 2019 at current rates; expected increases due to inflation (also expected) will take increasingly greater portions of the GDP, to the great detriment of other programs, particularly defense. We won't be able to AFFORD to defend our nation.

      And that leaves China out of the equation; their intentions are hard to fathom, but the strength and prosperity of the U.S. probably is not one of their priorities (especially with their pursuit of a world class military.

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