No Need for New TARP: Fed Land Grab in Miller Amendment

We’ve commented repeatedly and disapproving of the increasing operation of the Fed as an off balance sheet vehicle of the Treasury, in violation of normal budgetary processes (as have some former central bankers, most notably Willem Buiter).

Even thought Congress has been attempting to beat back the expansion of the Fed’s authority that Team Obama has backed, land grabs are still cropping up via artfully drafted amendments. The latest was described as an “outrage” by Tom Ferguson. This piece of artwork comes from Brad Miller of North Carolina:

Would provide that any designated financial holding company that is subject to heightened prudential regulation shall have the same access to the Federal Reserve Discount Window as if it were a Federal Reserve member bank.

As William Greider, author of Secrets of the Temple, noted via e-mail:

This amendment ratifies the corporate state — the charmed circle of financial/industrial corporations that will have a permanent line of credit from Washington. It authorizes the Federal Reserve to do whatever it thinks necessary in the next crisis. All the FED must do is designate the eligible firms, presumably a confidential matter.

Does the resolution authority section of the bill have any language that appears to pre-authorize funds for a next “TARP” at Treasury? If not, this amendment gives the Federal Reserve all the authority it needs.

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  1. D


    its funny they cant even fake being sorry. Then again, you only get the wheels of reform moving once in a while. Might as well try to throw in as many sucker punches as you can right. Something will end up slipping through. Totally tilted table.

    1. ozajh

      It’s not chutzpah, it’s worse. When it’s chutzpah, someone knows they’re being outrageous.

      These people consider themselves fully entitled to pull this kind of stunt, and are EXPECTING (rather than hoping for) everybody to go along.

  2. psychohistorian

    So corporations would have the financial backstop of the US Fed while they outsource all manufacturing and services to countries outside the US. This takes fascism to new levels.

    Do we ever get to see the monkies pulling the strings behind this screen?

  3. i on the ball patriot

    Hey, isn’t that the same Brad Miller that was going to, “consider your thoughts as he moved the bill forward.”

    He’s a total scum bag weasel!

    I like the qualifier, “heightened prudential regulation”. It is double speak for qualifying more pigs at the trough.

    Deception is the strongest political force on the planet.

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