After stating on the March 31 edition of his Fox News show that "[Treasury Secretary] Tim Geithner wants the power, [President] Barack Obama wants the power now, to be able to seize companies whether or not they've received federal bailouts," Sean Hannity asked Fox Business Network host Rebecca Diamond, “Do you want to live in that America?” However, Hannity did not address the fact that House Republicans have also proposed giving the federal government authority to temporarily take over failing financial institutions, and have not limited that proposal to institutions that have received federal bailouts.

As Diamond noted during the segment, the Federal Deposit Insurance Corp. (FDIC) already has the authority to seize failing banks. In prepared remarks for his March 24 testimony to the House Financial Services Committee, Geithner stated: “The Administration proposes legislation to give the U.S. government the same basic set of tools for addressing financial distress at non-banks as it has in the bank context,” including the ability for the government to act “as a conservator or receiver.”

Likewise, the House Republican budget blueprint -- signed by House Minority Leader John Boehner (R-OH) and several other members of the House Republican leadership -- states that “our plan supports a process to address insolvent institutions that stops throwing good money after bad into failing institutions and places insolvent ones into temporary receivership.” The GOP budget blueprint does not limit its “temporary receivership” proposal to financial institutions that have received bailout money. From the document:

Republicans believe the best antidote for market turmoil is certainty and economic growth. We oppose the trend toward national ownership and control of financial institutions. The government's interventions to date have generated market uncertainty and an aversion to private lending and investment. The government's strategy needs to minimize government interference in the management of companies and provide a clear exit strategy.

The Republican budget ends this failed bailout strategy by refusing to assume additional spending for bailouts. In addition, our plan supports a process to address insolvent institutions that stops throwing good money after bad into failing institutions and places insolvent ones into temporary receivership. Our plan would first perform a thorough stress test to determine whether a financial institution is healthy, troubled, or insolvent. For troubled firms, some portion of the firm's toxic assets would be insured, but such insurance would be self-financed by the industry itself in the form of premiums. For insolvent firms, either the FDIC or a Resolution Trust Corporation-type entity would restructure these firms in receivership by selling off their assets and liabilities, reappointing private management, while protecting depositors -- a process that builds off of Washington Mutual's arranged sale last year.

From the March 31 edition of Fox News' Hannity:

HANNITY: Let me answer your question with a question. Do you want your government -- Tim Geithner wants the power, Barack Obama wants the power now, to be able to seize companies whether or not they've received federal bailouts. Do you want to live in that America?

DIAMOND: To be able to seize companies whether or not --

HANNITY: Seize companies whether or not --

DIAMOND: The FDIC already does that.

HANNITY: I'm not talking about -- they're not talking about FDIC.

DIAMOND: They already do that with banks.

HANNITY: They want to -- they want the right to expand it to any company that they deem would impact the economy. True or false?

SANDRA SMITH (Fox Business Network reporter): And -- that is absolutely true right now. [Rep.] Barney Frank [D-MA] --

HANNITY: There.

SMITH: -- is putting -- wants to put this in motion. And I'll tell you what's already happening. Iberiabank, this is a small bank based out of Louisiana, came out today -- they were 90 -- they received $90 million in these bailout funds. They're giving it all back, as well as a few of the other small banks out there.