RFID, GPS Technology and Electronic Surveillance

Reid Says ‘Someone’ Should Offer Amendment to Stop Financial Reform from Empowering Treasury to Probe Financial Records of Law-Abiding Citizens

May 5, 2010

CNSNews.com - Senate Majority Leader Harry Reid (D.-Nev.) says he wishes “someone” would offer an amendment to the financial regulatory bill to prevent the federal government from probing private financial records through a provision in the bill that would allow a new Treasury Department agency to demand “any data or information” from any financial firm and to use a subpoena to get that information if necessary.

Reid, however, did not respond when asked whether he would personally support such an amendment.

The Fourth Amendment to the Constitution guarantees the “right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures.” Ordinarily, in keeping with this amendment, the government needs to establish probable cause that a crime has been committed and then secure a warrant from a judge before it can look at private papers and records.

The financial regulatory bill, which includes the provision that would empower a new Office of Financial Research to demand “any data or information” from any financial firm, is now being considered in the Senate. Reid has indicated he intends to bring it to a final vote next week.

At a Wednesday news conference, CNSNews.com asked Reid whether he believed the provision empowering the government to demand private financial records and data was contrary to the principle of the Fourth Amendment. Reid said the provision in question seemed “like the perfect place for an amendment,” suggested that “someone” should offer one, but did not commit to offering one himself.

CNSNews.com: "The Office of Financial Research is empowered to collect ‘any data or information’ from any firm, using subpoena power if the firm were to refuse. However, the 4th Amendment protects against unreasonable searches and seizures and doesn’t the ability to collect ‘any data or information’ from any firm violate the rights of Americans to have their financial dealing kept private?”

Sen. Reid: “That sounds like the perfect place for an amendment. I wish someone could offer that.”

When CNSNews.com followed up by asking Reid if he would support such an amendment, he did not answer and called on another reporter.

The Office of Financial Research would work under the new Financial Stability Oversight Council the bill would create. The purpose of the office would be to enable the council to study trends in the financial industry and to examine any financial deal made by any financial firm under the pretext of searching for systemic risk.

The bill empowers the Office of Financial Research to subpoena any financial firm that refuses to turn over the information the office wants.

“The Director may require, by subpoena, the production of the data requested,” the bill says—on page 71 of its 1,566-page text.

The Office of Financial Research also is empowered to “monitor, investigate, and report” on any changes in “system-wide” levels of financial risk, as well as to “investigate disruptions and failures in the financial markets” with the results of such investigations being used to recommend new government regulations.

In order to do this, the Office may require financial firms to report to it on any activity in which it has taken an interest, allowing the government to peek into any type of financial dealing between any person and any bank in the country.

"The Office may, on behalf of the Council, require the submission of periodic and other reports from any financial company for the purpose of assessing the extent to which a financial activity or financial market in which the financial company participates, or the financial company itself, poses a threat to the financial stability of the United States,” says the bill.

Sen. Shelby: Financial Reform Violates Privacy

Wall Street Bailout Bill Would Require Banks to Track and Report Personal Checking Accounts to Feds

April 30, 2010

Capitol Confidential - It’s amazing to watch the civil libertarians hide when Democrats propose the most sweeping intrusions of privacy in generations. In addition to the litany of bad policies contained in the Dodd Financial Reform bill is this nugget on pages 1039-1040. In short, it extends government reach to every deposit account of every citizen.

Required Acct Monitoring Subtitle G of the Dodd discussion draft bill requires that records be maintained and reported “for each branch, automated teller machine at which deposits are accepted, and other deposit taking service facility with respect to any financial institution, the financial institution shall maintain a record of the number and dollar amounts of deposit accounts of customers.”

What’s worse, banks will be required to submit these records to the new super regulatory agency called the Consumer Financial Protection Agency (page 1041). The CFPA will be allowed to use this information for any purpose “as permitted by law” under CFPA rules—rules set by CFPA themselves.

So, lets get this straight—the law requires banks to snoop on its customers MOST PERSONAL INFORMATION and submit it to another government agency so it can be used anyway the CFPA see’s fit.

So, if the CFPA Czar see’s fit, information about your deposit account activity could be shared with the IRS, immigration officials, state officials, or any other entity that the Administration and their various Czar’s think beneficial.

But CFPA will impact your life even before they give away your personal data. Remember that part of the excuse for including this authority is to make policy recommendations. So, be careful not to run your credit limit too high above the amount of money you are depositing in the bank or the CFPA will know you can’t pay your bills and make the appropriate “policy recommendations.”

This is exactly why conservatives have fought so hard against things like national ID cards—if the government is authorized to collect and utilize data, there is no way to prevent the government as a whole or certain individuals within the government from using the information against the citizens.

But passage of the CFPA will settle the whole ID card thing once and for all. There will be no need for them because if you have a bank account, you already have a number and the CFPA will have it.

The breadth of sweeping new powers given to the federal government by these three pages is astonishing. Yet we have heard nary a peep about this provision.

After capitulation and surrender, Republicans will have a chance to amend the legislation when it comes to the floor of the Senate and protect the private details of your banking account.

But if they don’t, smile the next time you go to the ATM because Big Brother will be watching.

Republicans Relent, Allow Debate On Financial Overhaul To Begin