Replies to post #53172 on Zeev's Turnips Patch-No Politics (ZEEV)

[ergo sum]

Without trying to be political it is my understanding Greenspan stepped in to the market in 1987 with I have read many billions of dollars. I think the Fed already had that ability.

Personally I think this part:

The heads of Executive departments, agencies, and independent instrumentalities shall, to the extent permitted by law, provide the Working Group such information as it may require for the purpose of carrying out this Order.

Getting the executive branch to tell the Fed what they are looking into is what is important.

http://www.fas.org/irp/congress/1992_rpt/bcci/

[mlsoft]

Joe....

I am not sure about the views of O'Neil (no longer a factor), but the street generally feels that Greenspan has construed his legal abilities in an activist manner, giving him wide latitude except where specifically prohibited.

I would assume that there have been other amendments to the authority of the working group, but I believe the following is sufficient:

"Sec. 2. Purposes and Functions. (a) Recognizing the goals of enhancing the integrity, efficiency, orderliness, and competitiveness of our Nation's financial markets and maintaining investor confidence, the Working Group shall identify and consider:
(1) the major issues raised by the numerous studies on the events in the financial markets surrounding October 19, 1987, and any of those recommendations that have the potential to achieve the goals noted above; and
(2) the actions, including governmental actions under existing laws and regulations (such as policy coordination and contingency planning), that are appropriate to carry out these recommendations."

Even if not specifically enumerated (which would probably be both impossible and unwise) it would certainly not be the first time that a government entity has used some "latitude" in doing what it sees as being in the National Interest."

Just my opinion, though.

mlsoft