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-CITE-
15 USC Sec. 80b-18a                                         01/03/2007

-EXPCITE-
TITLE 15 – COMMERCE AND TRADE
CHAPTER 2D – INVESTMENT COMPANIES AND ADVISERS
SUBCHAPTER II – INVESTMENT ADVISERS

-HEAD-
Sec. 80b-18a. State regulation of investment advisers

-STATUTE-
(a) Jurisdiction of State regulators
Nothing in this subchapter shall affect the jurisdiction of the
securities commissioner (or any agency or officer performing like
functions) of any State over any security or any person insofar as
it does not conflict with the provisions of this subchapter or the
rules and regulations thereunder.
(b) Dual compliance purposes
No State may enforce any law or regulation that would require an
investment adviser to maintain any books or records in addition to
those required under the laws of the State in which it maintains
its principal place of business, if the investment adviser –
(1) is registered or licensed as such in the State in which it
maintains its principal place of business; and
(2) is in compliance with the applicable books and records
requirements of the State in which it maintains its principal
place of business.
(c) Limitation on capital and bond requirements
No State may enforce any law or regulation that would require an
investment adviser to maintain a higher minimum net capital or to
post any bond in addition to any that is required under the laws of
the State in which it maintains its principal place of business, if
the investment adviser –
(1) is registered or licensed as such in the State in which it
maintains its principal place of business; and
(2) is in compliance with the applicable net capital or bonding
requirements of the State in which it maintains its principal
place of business.
(d) National de minimis standard
No law of any State or political subdivision thereof requiring
the registration, licensing, or qualification as an investment
adviser shall require an investment adviser to register with the
securities commissioner of the State (or any agency or officer
performing like functions) or to comply with such law (other than
any provision thereof prohibiting fraudulent conduct) if the
investment adviser –
(1) does not have a place of business located within the State;
and
(2) during the preceding 12-month period, has had fewer than 6
clients who are residents of that State.

http://uscode.house.gov/download/pls/15C2D.txt

** My note –

Bernanke noted that “bank holding companies” which actually own our bank conglomerates where hundreds of billions of dollars have been freely given to underwrite their risky choices – are not going to be forced out of the marketplace by any of our regulators. It sounded like he announced that our regulators do not have the authority to determine that they must be allowed to fail. That isn’t even on the menu.

When I was reading the regulations above, I realized that over a period of time, many of our authorities have had their powers undermined for purposes of regulating with any measure by maneuvers within the financial and investment industries and by the inadequately written laws governing their activities.

It is possible that since these $100 billion dollar plus valued bank corporations are owned by holding companies, the regulations and authorities do not apply to them. But, the FED does guarantee their risky ventures, backs their riskier loan and asset products, underwrites their activities using taxpayer moneys and generally, sees to every measure of success for them.

When did the Federal Reserve receive the authority to open, unlimited access to every dime in the Treasury, both now and in all future revenues, to give out as they desire to underwrite whatever banks, investments, hedge funds, money market funds, corporations, credit derivatives, “holding companies,” Wall Street banking firms, credit companies, and other profit-driven institutions?

Since someone thought that the American people who own this nation and who own those tax revenues had agreed to this pathway and process, what concept of capitalism and “free market economy” were they using when they decided to do it?

When was it that we agreed to it? Did the American people have any say in it at all, in fact? Which US citizens were they which agreed to it and were they individual taxpayers or corporate players which would benefit from it without limit?

Why do investment advisors and bankers get to decide for all of us, how our tax moneys will be spent? Who gave them that decision-making power which we are funding and then underwriting, back-stopping, guaranteeing and funding again?

What right did they have to keep profits, when we have underwritten their entire business enterprise and now guarantee every dime and dollar of expenses and risks involved in their enterprise? Who are these people that own our Federal Reserve and unlimited check-writing facility of our Treasury?

Whether it is by the Stress Test measure of the current program or the TARP funds, discount window, purchase of mortgage-backed securities and CDOs, purchase and provision of commercial paper or by the use of FDIC, SEC, Office of Thrift Supervision, US Treasury and Federal Reserve systems to their benefit – there are huge pools of free money being given to businesses that are “profit-driven”. Therefore, we the taxpayers are nobody in our government’s estimation of it and have no rights to a say in it at all.

This is not anything like a capitalist model nor has it been for at least the last twenty – thirty years. Certainly there is nothing capitalist nor “free market economy” about doing it the way that our government and its regulatory authorities have been doing it for that time.

It isn’t a free market economy when taxpayers have been underwriting the risks of certain profit-driven companies to the exclusion of others who are by virtue of reality, competing with them. And to guarantee the poor choices of corporations to no consequence or accountability for their actions while others fail as a result. That is not capitalism. It is not a free market at all. It isn’t even an open market, for that matter.

Through the inhumane, nearly un-human greed and avarice of a few in positions of power, prestige and wealth, we are now feeding them, their businesses, and their lifestyles with every dollar in the US Treasury, every tax dollar, every fee, every revenue source and every dollar of taxes that will be available for our Treasury in the future with absolutely no reserve and no restraint.

That is the unlimited availability of access to any and all funds that Ben Bernanke and Timothy Geithner and others before them,  have given to these “players” in the marketplace from Citigroup to AIG to Bank of America to Goldman Sachs, to JP Morgan Chase to whatever other institutions they choose to save “for us”.

And that is what they are doing and are going to continue to do – see the last hour of questions from the Senate banking committee today to Ben Bernanke, especially that moment the Tennessee member finally cut through the bull to demand the truth.

Apparently there is nothing anyone can do to stop them – why should I give the best of my efforts to save something like that? Why would anyone? For what reason would any American citizen want to give their money to serve this ball of corruption, greed and corporate welfare? Our tax money is their free pool of money to have, to use and to spend anytime they want it.

Believe this, no dollar that any of us makes is our own – it now belongs to Citigroup, AIG, Bank of America, Wells Fargo, Wachovia, Goldman Sachs, Merril Lynch, JP Morgan Chase, and every other banking / investment / financial firm in operation that the Federal Reserve serves. They have killed our opportunity to live free, to pursue our happiness, to have quality of life and any measure of opportunities available to us. This isn’t America – this is something else that they have wrought under our feet.

– cricketdiane, 02-24-09

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