U.S. Plan Seizing Firms

Obama administration and Federal Reserve, still smarting from the political furore over the bailout of American International Group, began a court-press on Tuesday to expand the federal government to seize control of troubled financial institutions deemed too big to fail . In its press conference on Tuesday evening, Obama said the president, the government could be handled by AIG bailout more effective if they had the same power to seize large financial companies, as it did not manage to take over banks. “It is precisely because of the lack of authority, which AIG situation became worse,” Mr. Obama said, estimating that there will be strong support from the American people and Congress to provide that authority. ” Earlier Tuesday, Treasury Secretary, Timothy F. Geithner, offered a proposal that would allow the government to take control, restructure and possibly almost any type of financial institution, which was in trouble and big enough to destabilize broader financial system. (more…)