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New Financial Overhaul Bill Unconstitutional

When one of the co-sponsors of a humongous 2,000 page piece of legislation (The recently passed Financial Overhaul Bill) states in Nancy Pelosi fashion ” No one will know until it’s actually in place how it works” ( Sen. Chris Dodd (D-CT) Washington Post). Are you serious? what the hell does that mean? Just like the health care bill – “we really wont know whats in it until we pass it so we can see whats really in it”. Huh? You know you are in trouble when the co-sponsor and author of the bill states that about a bill he is in charge of!!

But worse, this bill is blatantly unconstitutional. Let me give you two high level and basic examples.

1: The provision that allows the Federal Government to monitor, review and report on the financial, personnel and operational records and operations of a PRIVATE U.S. Business. If the government doesn’t like what it see’s OR feels that it is too big to fail” it can seize your business. This type of thing only used to be for public companies. Now it is for all companies – mom and pop, one man/woman shops and small business. This completely violates the 4th Amendment of the U.S. Bill of Rights which guards against unreasonable searches and seizures.

2: If, as a small or privately owned business, you acquire certain assets and through the issue listed above in #1, the government can also take away and seize your assets and company without a search warrant or through a U.S. court of law. This is in violation of the 5th Amendment of the U.S. Bill of Rights that protects against abuse of government authority in a legal procedure.

Folks, I am pro small business, as many of you know, but this bill is a tremendous violation of fundamental civil and commercial liberties and statutes, and is nothing more than another government land grab under the umbrella of “protecting consumers”. Really? Do you really believe that? Well, of course there are those who say if this type of legislation had been in place before 2008 we wouldn’t have had the melt down, wall street debacle, etc.

Seriously?

There are over 25+ federal agencies and organizations that have oversight and enforcement of banking, public business, finance, trading, etc. Where was the federal government and all its agencies to protect us from Wall Street, the banking and housing collapse. Did you ever hear of Freddy and Fanny? Did you know they were Federal agencies? What about the SEC? Or the FBI? They are Federal Agencies that are supposed to police and enforce voluminous amounts of existing and complex laws including SOX, statutes and policies around finance, housing, banking and a plethora of other things. When did you ever see the Federal Government fix or solve anything! I mean really. Especially in business.

This is nothing more than big government control which ultimately will be destined to be deemed unconstitutional, challenged in court and either shot down and/or repealed. Hopefully the knuckleheads in DC will come up with something more effective, with real enforcement and oversight of those that need it. Not small business.

Oh by the way…. are you ready for the new tax increases on the horizon for small business? Don’t you just love all the help and stimulus brought to you by your government. How is this working out for your business?

Instead of over-taxing, over-regulating, and sticking their nose into private businesses, how about serious tax incentives for small business? Innovation funding? Technology and Education Grants? Aggressive employer – employment incentives? Encourage real small business lending and credit access. Real export opportunity. Real support for small business – the growth and job engine of America? You wouldn’t need 2,000 pages of unconstitutional legislation to craft an effective and realistic bill that supports American business instead of killing it dead. You want to put American’s back to work? Give small business the tools necessary to succeed and get out-of-the-way.

-DF

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Written by David Frederick

July 16, 2010 at 9:15 PM

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