If the Financial Regulations Bill that passed the House last year passes into law, it will be yet another giant expansion to the powers given to the Federal Government. This bill will give the Federal Government power to take over any financial institution if they deem it “too big to fail” and on the brink of insolvency. This bill would also do away with the Judicial Review associated with the Federal takeover, so the decision as to whether or not the company is “too big to fail” is left entirely to the Feds. There is no legislation in the bill to ensure that the Federal Government gives objective evidence supporting the need for such a takeover either.
We cannot allow the Federal Government so much more power that is constitutionally reserved to the state and local governments. With this power the Federal Government could shut down any financial business for any reason. Obama or any other future President could use this power to takeover any financial business that are particularly vocal in their opposition to his policies, or fund political opponents. The checks and balances put on the separate branches of government were put there for a reason, and this bill would tip the scales, giving the Federal Government yet more power that they should not have. Remember, a government that is big enough to give you everything, can take it all away.
For more on the Financial Regulations Bill, visit here.
