Remember when . . . last year our dear leaders passed a last-minute spending bill to keep the government running that included a section drafted by the pariah, taxpayer-bailed-out Citigroup? This may be old news but it still has the ability to affect each and every American citizen financially, which is why I like to remind everyone of it—shouldn’t we be a bit more concerned about giving our hard-earned money to bankers who make bad bets? Where is our self-respect as American citizens? To remind folks of what this does, it effectively strips a key protection of the Dodd-Frank Act, allowing the welfare queen banks, like Citi, Wells Fargo, Bank of America, Goldman Sachs, and of course, JP Morgan Chase (Jamie Dimon was said to have lobbied hard for the repeal of the protection) to engage in (even more) high-risk trading with FDIC insured funds.
In plain English, the American taxpayers are (once again, or rather still) explicitly on the hook for these scummy bankers’ poor gambling decisions. These muppets (that is what they call those of us who bailed them out in 2008, so I like to return the favor when I can) somehow think that good “risk management” means pushing their debts onto others who had nothing to do with, and did not benefit at all from, their accrual. So glad these arrogant economic terrorists are running the country. Here is what Mother Jones reported on the issue last year:
“[T]he bill eviscerates a section of the 2010 Dodd-Frank financial reform act called the ‘push-out rule’: Banks hate the push-out rule…because this provision will forbid them from trading certain derivatives (which are complicated financial instruments with values derived from underlying variables, such as crop prices or interest rates). Under this rule, banks will have to move these risky trades into separate non-bank affiliates that aren’t insured by the Federal Deposit Insurance Corporation (FDIC) and are less likely to receive government bailouts. The bill would smother the push-out rule in its crib by permitting banks to use government-insured deposits to bet on a wider range of these risky derivatives.
The Citi-drafted legislation will benefit five of the largest banks in the country—Citigroup, JPMorgan Chase, Goldman Sachs, Bank of America, and Wells Fargo. These financial institutions control more than 90 percent of the $700 trillion derivatives market. If this measure becomes law, these banks will be able to use FDIC-insured money to bet on nearly anything they want. And if there’s another economic downturn, they can count on a taxpayer bailout of their derivatives trading business.”
Here is a link to the article with a sickening image of the two drafts, the Citi-written draft and the one that passed. If you ever doubted who actually runs our government, this should clear that up: