Wall Street Demands Derivatives Deregulation In Government Shutdown Bill

[pa28]

Banks want to put taxpayers on the hook for derivatives losses and Republicans will include this demand in the upcoming government shutdown fight.

This is the same legislation, written by Citi, that Wall Street Democrat Jim Himes introduced last year.

According to multiple Democratic sources, banks are pushing hard to include the controversial provision in funding legislation that would keep the government operating after Dec. 11. Top negotiators in the House are taking the derivatives provision seriously, and may include it in the final bill, the sources said.

The bank perks are not a traditional budget item. They would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. -- potentially putting taxpayers on the hook for losses caused by the risky contracts. Big Wall Street banks had typically traded derivatives from these FDIC-backed units, but the 2010 Dodd-Frank financial reform law required them to move many of the transactions to other subsidiaries that are not insured by taxpayers.

More at the links:

Wall Street Demands Derivatives Deregulation In Government Shutdown Bill
http://www.huffingtonpost.com/2014/12/04/wall-street-government-shutdown_n_6272776.html

See How Citigroup Wrote a Bill So It Could Get a Bailout
http://www.motherjones.com/politics/2013/05/citigroup-hr-992-wall-street-swaps-regulatory-improvement-act

[steve2470]

1. rec this on social media, please nt

[Orsino]

2. Too many goddamned complict Dems.

This is Citizens United's world.

[Enthusiast]

3. This is inexcusable.

[edhopper]

4. Yes

let's undo the weak, anemic rules that put some small hindrance to the thing that almost brought down the world's economy.
What's the worse that can happen. I mean it was way, way back in '07 when this sort of thing nearly crippled us.

[pa28]

5. Memories can be short for a price.

“And the banks — hard to believe in a time when we’re facing a banking crisis that many of the banks created — are still the most powerful lobby on Capitol Hill. And they frankly own the place.”

-Sen. Dick Durbin

[edhopper]

6. Even in the 50s

my parents still blamed the republicans for the depression.

Today, voters don't remember 7 years ago.

[DeSwiss]

7. We're already on the hook.

- Duh.

K&R

[Turbineguy]

8. Wall Street needs to suck a $trillion per year out of the economy

for salaries and bonuses.

[BootinUp]

9. Let em shut it down then. nt

[Dustlawyer]

10. What part of our politicians are bought off do people not understand!

They have so much money, and politicians are so relatively cheap. You don't stay in Washington unless you do what the PTB want, unless you have a name for yourself like Sanders and Warren. If all we do is sit around and bitch they will bring the whole thing down out of short term greed. We have to fight to make major changes in how we elect our Representatives. We have to take out the ability for them to be able to bribe our politicians and get their people in office. Bernie Sanders supports Publicly Funded Elections. We should support him!

[Octafish]

11. These crooks think we don't notice.

Which makes clear the cops are crooks also. Otherwise they'd all be in jail.

[woo me with science]

12. I'm sure our corporate Democrats will get something really good in trade for this.

Maybe they will threaten to cut Social Security again and then decide not to at the last minute. That would be an amazing victory.

[aint_no_life_nowhere]

13. I'm sure that if they thought they could have all their demands met

they'd want noble title, castles and estates, and the rest of the population working as their serfs.

How can this wall street crap have the nerve to demand anything? Demand?

[KoKo]

14. OMG...and look at what they've done with the DeReg that Clinton handed them...

either wittingly or unwittingly they Crashed Our Economy...causing Pain and Suffering to Average Americans and the Poor ....EVEN NOW!

AND...those WALL Street Criminals WANT MORE DEREGULATION?

There are those here on DU who APPLAUD THIS! Maybe that Dow tucked just below 18,000 has them CAPTURED!

But, for the rest of us out here this is a DISASTER!

[liberal_at_heart]

15. It is time we call out capitalists that want taxpayers to pay for loss of profits.

Having taxpayers pay for loss of profit is not capitalism.

[pa28]

16. Privatize the profits, socialize the losses.

Disgusting.