The treasury wants to sieze troubled firms.

[moneysense]

President Obama is wanting to ask Congress to give the
Treasury Secretary unlimited power to seize non-bank firms like large insurers, hedge funds and investment firms whose demise could hurt the economy even further.

Had such a plan already been in effect, they could have seized AIG last fall and thus been able to prevent such a large cost to tax payers.

Not only could they seize a firm but they could also help by preventing its collapse by guaranteeing losses or by buying assets.

This new idea has priority especially after the collapse of Lehman Brothers which was a non bank firm.

This idea should be put before Congress within the week.