Rep. Michele Bachmann (R-MN) asked Treasury Secretary Tim Geithner today to identify where in the constitution one could find authority governing his idea for seizing a trioubled bank to preserve our national economy.
Geithner said, “It’s the law of the land. We get our authority from Congress.”
Bachmann’s question was meaningful, in fact, central to much of the recent debate in the congress. By what authority are we doing all this movement toward socialism and central government planning? Just because we don’t like the economy, doesn’t mean we can st pay standards for executives, tax them at 90% and seize troublesome businesses.
Bachmann said later on the Fox News Channel she fears a “lurch toward socialism.”
By JEANNINE AVERSA, AP Economics Writer
WASHINGTON – Treasury Secretary Timothy Geithner asked Congress on Tuesday for broad new powers to regulate nonbank financial companies like troubled insurerwhose collapse could jeopardize the economy.
“AIG highlights broad failures of our financial system,” Geithner told the House Financial Services Committee. “We must ensure that our country never faces this situation again.”
At the same time, legal advisers counseled him against it.revealed that he had considered filing suit to keep AIG from paying millions in executive bonuses but that his
Geithner acknowledged that the current climate of anger, including the furor over those retention bonuses, will complicate any effort by the Obama administration to get more bailout money from Congress. “We recognize it will be extraordinarily difficult,” he said.