Geithner: No Ban on Movie Futures

***But if, in the future, if they mess up and they take themselves to the edge of the cliff again, then we want to make sure we can put ‘em out of existence, dismember them, break them up safely without the American taxpayer having to bail them out again.”***
Such a thing already exists in the bankruptcy courts with chapter 7, 11 and 15, depending on the situation and location of the business debtors.
Regardless of how big the company is that has failed to perform we do not need federal authorities coming in a selling off the business, based on a political bias, but rather the shareholders and board decide how to dismatle and sell off the companies holdings to pay off debt.
The last thing we need is another Chrystler or AIG, where the government owns more than half of the company and the shareholders are secondary or tertiary voices in company, rather than participants through their investments.

We need the government out of our financial institutions,Fannie and Freddie caused this mess by backing lousy loans made by banks encouraging more lousy loans. The Democratic Committee on oversight defended them when Bush ask them to tighten controls in 2005,and this reform does nothing to dismantle Freddie or Fannie. Dodd and Obama recieved the most from Fannie and Freddie in campaign contributions.

Recent comments by one representative who said “policing of the new markets would draw resources away from agricultural commodities markets” shows exactly why Congress should stay out of this debate and leave it to the CFTC to review the merits of these products.
I guess according to this representative, we shouldn’t introduce ANY new exchange-traded products, since they would detract CFTC oversight from the 6% PERCENT in overall exchange-traded volume that agricultural products make up!
Lincoln’s “added language” to the bill outlawing movie box office futures is only a result of heavy lobbying by the MPAA, and a result of Lincoln and the other senators who approved this language catering to the special interests that are filling their political coffers.
Blanche Lincoln’s sister also happens to be a Hollywood director. Conflict of interest, anyone?
There is already a federal regulatory agency, the CFTC, which is more than capable of evaluating the merits of these proposed products, and according to the federal regulatory statutes has until late June to rule on them.
The language in this bill not only seeks to circumvent this review process by imposing a legislative ruling on these products, but also sends a CLEAR message that congress has no confidence in the CFTC to perform the regulatory functions that they are entrusted with through the Commodities Exchange Act (CEA).
We should not be advocating a precedence that excludes one industry from benefitting from exchange-traded, centrally-cleared, federally-regulated futures instruments without allowing the agency entrusted to approve or disallow them to conduct their due diligence.

Geithner: No Ban on Movie Futures Why is this happening