Real ultimate power

The White House is expected to send up legislation arguing that Congress should give Tim Geithner more power. Robotic eyes, super speed, metal claw hands, and jaws that crush steel beams. You know, the basic bionic man package. But also some financial powers as well. Because, why not? He's been doing so awesome let's just expand his jurisdiction.

Treasury Secretary Timothy F. Geithner is set to argue for the new powers at a hearing today on Capitol Hill that was scheduled to address the furor over bonuses paid to executives at American International Group, which the government has propped up with about $180 billion in federal aid. Administration officials say the proposed authority would have allowed them to seize AIG last fall and wind down its operations at less cost to taxpayers.

The government at present has the authority to seize only banks.

Giving the Treasury secretary the power to seize a broader range of companies would mark a significant shift from the existing model of financial regulation, which relies on independent agencies that are shielded from the political process.

Normally, I'd say this was a good/great idea. Why shouldn't the government be able to step in and control/quicken the liquidation/fix problems in companies it already ostensibly owns? It already can step in and take over banks, why not financial giants it's shoveling billions into? Yeah, except I doubt they'll ever take over AIG, judging by how they've handled the banks.

Instead of nationalizing banks, we've just concocted scheme after scheme to allow them to go on pretending they hold assets of some value and are financially solvent, most recently last weekend with the unveiling of Geithner's toxic/legacy assets program. They keep drawing the misery out there, stalling action, prolonging the recession, dumping more money in, taking extra bite after extra bite of the shit sandwich instead of one big final one. So why would we expect them to ever do something different with AIG? In the end it'll just be one more thing they drag their feet on.