Now It's a Takeover of Our Financial Sector? When Will The Destruction Of Our Economy End?

Misgovernance: Barely a month after the 2,600-page health care bill became law, Congress has teed up another landmark piece of legislation: a 1,600-page financial overhaul. So what's the big hurry?

As with the health care measure, no one seems to know exactly what's in this massive new bill. And what we have seen leaves a lot to be desired.

Legislation that radically changes the way we conduct our daily lives is usually subject to long deliberation and thorough debate before a decision is reached. But not in this Congress.

The financial reform that Sen. Chris Dodd has put forward contains little if any input from opposition Republicans. With their 59-41 majority in the Senate, Dodd and his Democrat colleagues are convinced they no longer need to compromise.

In his speech on financial reform last Thursday in New York, President Obama made his case and invited Americans to "debate" it. But that very day, Senate Majority Leader Harry Reid, to the surprise of nearly everyone, announced there could be a vote on Dodd's bill as early as Monday. Read: "Why No Debate" at IBD.

You Don't Make Deals With the Devil Or The Government

Well, it seems that you can fool all of the bankers some of the time but not some of the bankers all of the time. Some of the banks that received TARP money and bailouts are now wishing they hadn't chummed with our lovely government because now they cannot run their businesses as they see fit. They are obliged to kow-tow to political hacks who have never run a business in their lives. The government is raging mad that AIG would dare give the bonuses promised to their top managers in contracts signed and sealed. Imagine that - honoring a contract! Well, AIG and other banks were fools to agree to accept money from our government. Now these banks have to check with government officials for every action they wish to undertake? Is that any way to run a corporation? I don't think so. One does not make deals with the devil - er I mean politicians!

A bill passed by the U.S. House of Representatives to tax employee bonuses at companies getting $5 billion or more in government bailout funds could send bank employees rushing to the exit sign if it becomes law.

The largest banks in the United States would be affected by the legislation, approved on Thursday, which would add a 90% tax on bonuses for people earning more than $250,000.

The result of public and government outrage over $165 million in bonuses paid to employees of American International Group Inc's Financial Products unit, some sources said the legislation would have repercussions far beyond the insurer, which is getting up to $180 billion in public funds...(READ)

"It's terrible public policy with respect to trying to bring institutions back to health," said Robert Sedgwick, head of the executive compensation practice at law firm Morrison Cohen in New York.

"These institutions are under siege and their primary asset is their people," Sedgwick said, explaining that adding taxation to shrinking compensation for bankers will drive people from the business.

The Shakedown of Bank Of America-The First of Many to Be

Because we have sat quietly while the government has invested itself with the terrifying power to decide which companies will continue existing and which will not, we now have the chance to see what our politicians are doing with this power. And Obama is involved - surprised? Not really. (Read article at Investor's Business Daily).

The Bank of America was the victim of a concerted shakedown that may soon be replicated around the country. Even President-elect Obama supported this new example of Chicago blackmail.

One of the casualties of the faltering housing market is Chicago's Republic Windows & Doors, whose line of credit was cut off by Bank of America.
Amy Zimmerman, Republic's vice president of sales and marketing, admitted: "Banks are in the business to make money, and at some point they have to make a business decision, and that's what this is."

In the first week of December, Republic laid off its workers and closed its doors. The company was supposed to give two months' notice, with continued pay and benefits. So the employees launched a sit-in.

Getting laid off before Christmas isn't any fun. But no one was obviously to blame for Republic's failure, and these days Republic employees aren't alone in their economic distress.
Bank of America was a handy scapegoat. Since the institution received tax dollars, Republic's employees argued that BofA had an obligation to bail out Republic.

Said Leah Fried, an organizer with the United Electrical, Radio & Machine Workers of America: "It's shameful that a bank that got $25 billion in bailout money turns around and shuts down a factory by cutting off their credit."

The sit-in provided an irresistible photo op. Gov. Rod Blagojevich showed up before his indictment, as did the Rev. Jesse Jackson and Rep. Jesse Jackson Jr., "Senate Candidate No. 5" in the Blagojevich case.
Obama said of the workers, "I think they're absolutely right," adding that "these companies need to follow through on those commitments."

Blagojevich announced that Illinois would withhold its business from the bank. Fifteen Chicago aldermen proposed an ordinance cutting off business with the bank and limiting any zoning changes for its properties. Cook County Commissioner Michael Quigley promised to introduce similar legislation...(READ).