Michael Wolfe

Study up. Stand up. Speak up. Pray up!

My thoughts on H.R.4173 – the “Wall Street Reform and Consumer Protection Act of 2009″

Posted by americana83 on December 24, 2009

UPDATE 7/29/2010. The section pertaining to race is now 342. It was briefly removed all together, but made it back into the bill. The exact text is as follows, followed by my original article, which is still valid.

SEC. 342. OFFICE OF MINORITY AND WOMEN INCLUSION.

(a) Office of Minority and Women Inclusion-

    • (A) IN GENERAL- Except as provided in subparagraph (B), not later than 6 months after the date of enactment of this Act, each agency shall establish an Office of Minority and Women Inclusion that shall be responsible for all matters of the agency relating to diversity in management, employment, and business activities.

      (B) BUREAU- The Bureau shall establish an Office of Minority and Women Inclusion not later than 6 months after the designated transfer date established under section 1062.

  • (1) ESTABLISHMENT-

    (2) TRANSFER OF RESPONSIBILITIES- Each agency that, on the day before the date of enactment of this Act, assigned the responsibilities described in paragraph (1) (or comparable responsibilities) to another office of the agency shall ensure that such responsibilities are transferred to the Office.

    (3) DUTIES WITH RESPECT TO CIVIL RIGHTS LAWS- The responsibilities described in paragraph (1) do not include enforcement of statutes, regulations, or executive orders pertaining to civil rights, except each Director shall coordinate with the agency administrator, or the designee of the agency administrator, regarding the design and implementation of any remedies resulting from violations of such statutes, regulations, or executive orders.

(b) Director-

    • (A) equal employment opportunity and the racial, ethnic, and gender diversity of the workforce and senior management of the agency;

      (B) increased participation of minority-owned and women-owned businesses in the programs and contracts of the agency, including standards for coordinating technical assistance to such businesses; and

      (C) assessing the diversity policies and practices of entities regulated by the agency.

  • (1) IN GENERAL- The Director of each Office shall be appointed by, and shall report to, the agency administrator. The position of Director shall be a career reserved position in the Senior Executive Service, as that position is defined in section 3132 of title 5, United States Code, or an equivalent designation.

    (2) DUTIES- Each Director shall develop standards for–

    (3) OTHER DUTIES- Each Director shall advise the agency administrator on the impact of the policies and regulations of the agency on minority-owned and women-owned businesses.

    (4) RULE OF CONSTRUCTION- Nothing in paragraph (2)(C) may be construed to mandate any requirement on or otherwise affect the lending policies and practices of any regulated entity, or to require any specific action based on the findings of the assessment.

(c) Inclusion in All Levels of Business Activities-

  • (1) IN GENERAL- The Director of each Office shall develop and implement standards and procedures to ensure, to the maximum extent possible, the fair inclusion and utilization of minorities, women, and minority-owned and women-owned businesses in all business and activities of the agency at all levels, including in procurement, insurance, and all types of contracts.

    (2) CONTRACTS- The procedures established by each agency for review and evaluation of contract proposals and for hiring service providers shall include, to the extent consistent with applicable law, a component that gives consideration to the diversity of the applicant. Such procedure shall include a written statement, in a form and with such content as the Director shall prescribe, that a contractor shall ensure, to the maximum extent possible, the fair inclusion of women and minorities in the workforce of the contractor and, as applicable, subcontractors.

    (3) TERMINATION-

(d) Applicability- This section shall apply to all contracts of an agency for services of any kind, including the services of financial institutions, investment banking firms, mortgage banking firms, asset management firms, brokers, dealers, financial services entities, underwriters, accountants, investment consultants, and providers of legal services. The contracts referred to in this subsection include all contracts for all business and activities of an agency, at all levels, including contracts for the issuance or guarantee of any debt, equity, or security, the sale of assets, the management of the assets of the agency, the making of equity investments by the agency, and the implementation by the agency of programs to address economic recovery.

(e) Reports- Each Office shall submit to Congress an annual report regarding the actions taken by the agency and the Office pursuant to this section, which shall include–

    (1) a statement of the total amounts paid by the agency to contractors since the previous report;

    (2) the percentage of the amounts described in paragraph (1) that were paid to contractors described in subsection (c)(1);

    (3) the successes achieved and challenges faced by the agency in operating minority and women outreach programs;

    (4) the challenges the agency may face in hiring qualified minority and women employees and contracting with qualified minority-owned and women-owned businesses; and

    (5) any other information, findings, conclusions, and recommendations for legislative or agency action, as the Director determines appropriate.

(f) Diversity in Agency Workforce- Each agency shall take affirmative steps to seek diversity in the workforce of the agency at all levels of the agency in a manner consistent with applicable law. Such steps shall include–

    (1) recruiting at historically black colleges and universities, Hispanic-serving institutions, women’s colleges, and colleges that typically serve majority minority populations;

    (2) sponsoring and recruiting at job fairs in urban communities;

    (3) placing employment advertisements in newspapers and magazines oriented toward minorities and women;

    (4) partnering with organizations that are focused on developing opportunities for minorities and women to place talented young minorities and women in industry internships, summer employment, and full-time positions;

    (5) where feasible, partnering with inner-city high schools, girls’ high schools, and high schools with majority minority populations to establish or enhance financial literacy programs and provide mentoring; and

    (6) any other mass media communications that the Office determines necessary.

(g) Definitions- For purposes of this section, the following definitions shall apply:

(1) AGENCY- The term ‘agency’ means–

(2) AGENCY ADMINISTRATOR- The term ‘agency administrator’ means the head of an agency.

(3) MINORITY- The term ‘minority’ has the same meaning as in section 1204(c) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note).

(4) MINORITY-OWNED BUSINESS- The term ‘minority-owned business’ has the same meaning as in section 21A(r)(4)(A) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)(A)), as in effect on the day before the transfer date.

(5) OFFICE- The term ‘Office’ means the Office of Minority and Women Inclusion established by an agency under subsection (a).

(6) WOMEN-OWNED BUSINESS- The term ‘women-owned business’ has the meaning given the term ‘women’s business’ in section 21A(r)(4)(B) of the Federal Home Loan Bank Act (12 U.S.C. 1441a(r)(4)(B)), as in effect on the day before the transfer date.

UPDATE 5/22/2010: This bill has now passed the senate. Four RINOS sided with the other liberal to pass a bill that is socialist and racist in nature. This is truly a blow to the dream that one day all men would be judged by the content of their character and not their skin.

SOURCE: OPENCONGRESS.org and FULL BILL TEXT.

View the latest actions on the bill

The list of GOPpers voting for this racist bill is as follows:

Sen. Scott Brown [R, MA]
Sen. Susan Collins [R, ME]
Sen. Charles Grassley [R, IA]
Sen. Olympia Snowe [R, ME]

So Scott Brown joins Olympia Snowe. Nothing like a slap across the face to the tea party grassroots that put you over the top, dashing hopes that we had actually gotten rid of Arlin Specter.

Section 1801 of this bill includes some very interesting language, especially since the government is already an “equal opportunity employer” that is not allowed to discriminate on the basis of age, race, gender, national origin, religion and others. This bill, thanks to the following language creates an entire race based bureaucracy throughout the agencies of the Federal government, even though it is not needed, and will increase the cost of government during a time of great financial strain (HR4173 text source):

SEC. 1801. INCLUSION OF MINORITIES AND WOMEN; DIVERSITY IN AGENCY WORKFORCE.

1(a) Office of Minority and Women Inclusion

(1) ESTABLISHMENT- Not later than 180 days following the enactment of this title, each agency shall establish an Office of Minority and Women Inclusion (hereinafter in this section referred to as the ‘Office’) that shall advise the agency administrator of the impact of policies and regulations of the agency on minority-owned and women-owned businesses, and shall be responsible for all matters of the agency relating to diversity in management, employment, and business activities, including the coordination of technical assistance, in accordance with such standards and requirements as the Director of the Office shall establish.

I would assume that any policy that would adversely affect a minority or woman owned business would also negatively impact any other business, since it is already ILLEGAL for the government to discriminate by race and gender. Extra bureaucracy we can’t afford, and do not need.

(2) CONSOLIDATION- Each agency that has assigned these or comparable responsibilities to existing offices shall ensure that such responsibilities are consolidated within the Office.

So, if a government office already has “diversity responsibilities” being handled as part of another job they need to “consolidate” those responsibilities into a NEW position, a mini race Czar. Last time I checked, consolidation involved a reduction or streamlining process, not the creation of a new position and extended bureaucracy.

(b) Director

And here are the chief Race Czars

(1) IN GENERAL- For each Office, the President shall appoint, by and with the advice and consent of the Senate, a Director of Minority and Women Inclusion (hereinafter in this section referred to as the ‘Director’), who shall also hold a title within such agency comparable to that of other senior level staff who are, as applicable, either appointed by the President, by and with the advice and consent of the Senate, or act in a managerial capacity that requires reporting directly to the agency administrator.

(2) DUTIES- Each Director shall

(A) ensure equal employment opportunity and the racial, ethnic and gender diversity of the agency’s workforce and senior management;

I believe in equal opportunity. This legislation however, mandates diversity.  You cannot offer equal opportunity and demand equal outcomes. Every individual is different, and possesses their own skills and abilities. The best of the best should be offered the position, whether they be black or white or Asian or Hispanic, or any of the other diverse colors of humanity. Equal opportunity employment ensures that. However, if the thoughts expressed previously are any indicator, the current administration doesn’t concern itself with individuals, but rather collective identities.

(B) increase the (sic) partcipation of minority-owned and women-owned businesses in the programs and contracts of the agency;

C) provide guidance to the agency administrator to ensure that the policies and regulations of the agency strengthen minority-owned and women-owned businesses; and

(D) conduct an assessment, as part of the examination process for the entities regulated or monitored by the agency of the diversity and inclusion efforts by such entities.

It is not the government’s job to strengthen ANY business. It is a business’s job to strengthen itself by offering the best product or service at the best price, or to differentiate itself by offering services that are above and beyond its competitors, thereby allowing it to charge a premium for its goods or services. Government race-based initiatives subvert and undermine the free market, and treat race as if it is a handicap to overcome. This is an insult to the American people, and creates a scenario where race can readily become a deciding factor in denying the best business the task. It is absurd.

But there’s more. Going back in the bill we find this gem in section 1604 giving the government control over companies they (the President) deems in danger:

(b) Determination by the Secretary- Notwithstanding any other provision of Federal law or the law of any State, if, upon the written recommendation of the Federal Reserve Board and the board of directors or commission of the appropriate regulatory agency as provided for in subsection (a)(1), the Secretary (in consultation with the President) determines that–

    (1) the financial company is in default or is in danger of default;

    (2) the failure of the financial company and its resolution under otherwise applicable Federal or State law would have serious adverse effects on financial stability or economic conditions in the United States; and

    (3) any action under section 1604 would avoid or mitigate such adverse effects, taking into consideration the effectiveness of the action in mitigating potential adverse effects on the financial system or economic conditions, the cost to the general fund of the Treasury, and the potential to increase moral hazard on the part of creditors, counterparties, and shareholders in the financial company,

then the Secretary must take action under section 1604(a), the Corporation must act in accordance with section 1604(b), and the Corporation may take 1 or more actions specified in section 1604(c) in accordance with the requirements of that subsection, except that, prior to the Secretary or Corporation taking any action under section 1604, the Federal Reserve Board or the appropriate Federal regulatory agency shall take action to avoid or mitigate potential adverse effects on low-income, minority, or underserved communities affected by the failure of such financial company.

Again, we have big government stepping in and preventing the free market from correcting itself. The effects of doing so are far more harmful in the long run because either: 1. A company is rewarded for bad behavior with government money, or 2. The government gains control of a company (and the government lacks both the skills needed to run a company efficiently, as well as the problem of a complete lack of the enumerated constitutional authority to do so) and more of our tax dollars are depleted. both the skills needed to run a company efficiently, as well as the problem of a complete lack of the enumerated constitutional authority to do so) and more of our tax dollars are depleted. The beautiful thing about a free market, is there are competitors that are ready and willing to take the place of fallen giants. Keeping the fallen giants on life support is a terrible waste of tax payers’ money and, again, a gross violation of the enumerated powers granted to the government by the Constitution. The federal government has no authority to either bail out or seize control of any company.

Also problematic is the fact that the secretive Federal Reserve is given a share of this unprecedented power, despite the fact that the Federal Reserve is completely unaccountable and has not even so much as been audited since its creation in 1913.

In conclusion, this bill subverts and perverts the concept of equal opportunity for all, allows the President and the Federal Reserve far greater control over the free market, and expands the size and scope of government while giving us nothing in return but Constitutional violations.

“Some animals are more equal than others.”  George Orwell, Animal Farm.

from my other site: thejeffersondemocrat.com

http://www.opencongress.org/bill/111-h4173/textU

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