Troubling plan introduced

Published 9:55 am Monday, March 30, 2009

By Staff
Treasury Secretary Timothy Geithner unveiled a sweeping overhaul of the regulatory framework of the nation’s financial system last week.
The plan would call on Congress to grant the Treasury Department unprecedented regulatory powers to take over major non-bank financial institutions – such as large insurers, investment firms, hedge funds, private equity firms and venture capital firms – as well as the private derivatives market.
Under the proposal, the Treasury secretary would be given the authority to wind down major non-bank financial institutions that are failing.
The Treasury secretary and the Federal Deposit Insurance Corp. (FDIC) would determine whether to provide financial assistance or put the financial institution into conservatorship or receivership.
The Department of Treasury’s authority to seize troubled banks has been expanded during the current economic crisis. 
Now, Secretary Geithner seeks to make that expanded authority permanent.  This, in my view, is another overreaching action of the new administration.  While we surely need to reexamine the way our financial markets are regulated, we must strongly avoid overregulation.  We must preserve the free market tenets that made our economy the world’s most powerful.
Empowering the executive branch to manage private sector business is government intrusion into the free market.  While I recognize reform must occur, I have little confidence in the path this administration has taken thus far.
I look forward to working with House Republicans to temper the administration’s initiative.
Workshop for High School Leaders a Success
With over 220 students in attendance, my annual Workshop for High School Leaders, held at Weaver Auditorium on the campus of the University of Mobile, was a tremendous success. 
For a quarter century, this workshop has been a fixture in the First Congressional District, providing high school government and journalism students the opportunity to question representatives from all levels of state and federal government, as well as members of the Gulf Coast broadcast and print media.
Team Focus co-founder, Mike Gottfried gave the keynote address.  As the CEO of the Mobile-based community outreach program that provides a positive role model to young men without a father at home, Coach Gottfried talked with the students about leadership.
My staff and I work for you.  If we can ever be of service, do not hesitate to call my office toll free at 1-800-288-8721 or visit my website at
Jo Bonner serves as a member of the house
of representatives.

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