Who knew? Federal Reserve has emergency powers?

flashl

(1000+ posts) Send PM | Profile | Ignore

Thu Dec-13-07 11:12 AM
Original message

Who knew? Federal Reserve has emergency powers?

Dec. 12 (Bloomberg) -- The Federal Reserve took advantage of emergency powers to authorize the auctions that officials felt were necessary to ease a credit squeeze, concluding it otherwise lacked legal permission to do so.

The Fed bypassed requirements for prior notice and public comment when writing the regulations to implement today's agreement with the European Central Bank and three other central banks. The Fed's official notice today said any delay caused by following standard procedures would have been ``contrary to the public interest.''

Such actions, while used ``sparingly'' over the years, were justified today because the new rules probably carry few costs, a former Fed attorney said. The action today was part of a coordinated effort with other central banks to alleviate a global growth slowdown, acting after interest-rate cuts failed to allay concerns that banks will reduce lending.

``It's something that they normally don't do,'' said Oliver Ireland, who worked as a Fed counsel for more than two decades and is now a partner at Morrison & Foerster in Washington. ``If you look at doing things to stabilize volatile markets, I don't think it's very hard to find good cause. There's no tangible harm to anybody.''

Read ENTIRE Tex

This power of the Federal Reserve was never taught in civic classes.

Printer Friendly | Permalink | | Top

ixion

(1000+ posts) Send PM | Profile | Ignore

Thu Dec-13-07 11:17 AM
Response to Original message

1. we've been sold up the river... just about ANY gov't agency can call all bets off

and move into dictator mode.

R.I.P. American democracy.

Printer Friendly | Permalink | | Top

Bonhomme Richard

(1000+ posts) Send PM | Profile | Ignore

Thu Dec-13-07 11:17 AM
Response to Original message

2. Most don't know it's a private company and is as Federal as..........

Federal Express.

Printer Friendly | Permalink | | Top

flashl

(1000+ posts) Send PM | Profile | Ignore

Thu Dec-13-07 11:23 AM
Response to Reply #2

3. Banking History

THE FEDERAL RESERVE SYSTEM IS PRIVATELY OWNED

Our banking history is filled with deception, fraud, larceny and treason. To understand the problem of how modern, deceptive banking policy adversely affects every American citizen and is, indeed, antithetical to our great Republic, we must begin with an examination of the historical evolution of the privately owned central banking system. A cursory exploration of this system reveals that from its very inception it, by design, undermines political will and insures a lifetime of feudal-like, debt-based enslavement.

Printer Friendly | Permalink | | Top

flashl

(1000+ posts) Send PM | Profile | Ignore

Thu Dec-13-07 11:53 AM
Response to Original message

4. Federal Reserve teams with central banks on credit

published: Thursday | December 13, 2007

The United States Federal Reserve announced yesterday it was coordinating with other central banks to deal with the global credit crunch.

Wall Street rallied after the surprise announcement.

In a statement timed before the start of trading in New York, the Fed said it planned to offer US$40 billion in emergency funds to banks next week through an auction process.

The Fed said that it was creating a temporary auction facility to make funds available to banks and was also setting up lines of credit with the European Central Bank and the Swiss Central Bank that could be used for additional resources.

The first two auctions of US$20 billion each will occur next week on December 17 and December 20.

"This is not about particular financial institutions with particular problems. It is about market functioning," said a senior Federal Reserve official who briefed reporters on condition of anonymity because of the sensitive nature of the actions.

Read More ...

Is this Resolution Trust lite for banks?

Resolution Trust as in S&L Resolution Trust?

Printer Friendly | Permalink | | Top

JDPriestly

(1000+ posts) Send PM | Profile | Ignore

Thu Dec-13-07 12:22 PM
Response to Original message

5. This is yet another usurpation of legislative power

that destroys the delicate balance of powers that the Founding Fathers put in place to protect our freedom.

Regulatory agencies are considered to be administered by the executive branch, but in fact, they combine powers of all three branches of government, the executive, the legislative and the judicial. According to legal precedent established by the Supreme Court, the regulatory agencies have to follow certain procedures to maintain the separateness of these powers. The notice and comment requirements insure that the legislative powers are separate from the executive powers. Here, the Bushies in control have taken it upon themselves to disregard the notice and comment or legislative element in making a decision. We need a good lawyer in the White House to protect the fundamental concept of our government -- separation of powers.

It appears that Bush and Cheney have not sought out, received or followed good legal advice during their regime. Ashcroft and Gonzales were jokes -- religious fanatics and yes men. Contrast them with Janet Reno, and you will see what I mean. Now we have Mukasey and he is looking worrieder and worrieder. Who knows where this will all end?

Notice and the right to be heard are two of the fundamental legal rights that we each enjoy. No one had the right to notice and to be heard here. The steps taken may have been wise, but that is not the issue for me. The emergency cannot be that great. And if it is, it is the fault of the Bushies. They should not be given a jail free card on this one. This is a terrible precedent.

Printer Friendly | Permalink | | Top

flashl

(1000+ posts) Send PM | Profile | Ignore

Thu Dec-13-07 01:12 PM
Response to Reply #5

6. Thank you

Declaring an emergency then bypassing the request for comment is HUGE.

Printer Friendly | Permalink | | Top

DU AdBot (1000+ posts)

Sun May 05th 2024, 02:16 PM
Response to Original message

Advertisements [?]

Top

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.