U.S. Taxpayer to SCOTUS.
Throughout this economic meltdown, both the Executive and Legislative branches often overstepped their authorities with decisions and actions detrimental to the maintenance of our lawful society by invoking systemic risk exceptions.
Financial regulators including the Fed, OCC, OTS, and FDIC have essentially dictated whom to save and whom to sacrifice. Why did they use our tax dollars to save a few elite and well-connected institutions, and not to prevent system wide collapse as they initially claimed, and improve lending as they originally promised?
How did our leaders expect to improve the credit crisis when it refused to help CIT, a major lender for small businesses, but decided to help non-loan servicing banks like Goldman Sachs raise capital with FDIC-backed bonds?
Even more ridiculous was the fact that this government assistance was so far beyond what was necessary for GS to remain operative that the investment bank will have billions of extra money for bonus this year.
The Office of Inspector Generals had released several reports criticizing poor supervisory efforts by all these agencies. In many seizures and bailout deals bankruptcy codes and rules were ignored.
Yet not a single entity was held accountable.
Even more alarming was FDIC's interpretation of its current power over banks, which it hoped to expand to cover holding companies and others:
"The new powers would be sweeping... It would enable the government to come in, repudiate employment contracts, pick and choose who you want to keep, who you want to get rid of, what you want to pay them, replace the management, get rid of the boards and bring in better management" - Sheila Bair
What government official or agency was ever granted such dictatorial authority?
Now the same regulators are demanding extra jurisdiction:
"The Treasury Department and House Financial Services Committee Chairman Barney Frank have just released a highly complex 253 page draft bill that is supposed to deal with questions ranging from indentifying and dealing with systemic risk facing the financial services system, regulating and closing failing “too big to fail” financial services firms, and a wide variety of other potential problems. As expected with a bill that long and detailed, it will take a while to understand everything that it contains, but first impressions are that it contains many bad ideas with a few good ones sprinkled in."
Our Founding Fathers believed in checks and balances.
The Judicial branch was created to ensure no abuse of power was ever carried out by the other two branches of the government.
Please protect the citizens of this country, whose rights and properties were forcibly taken away and then transferred to individuals and institutions favored by the Administration and Congress.
At this critical point, you are also the last line of defense for the U.S. Constitution.