If you’re like me, you thought the scariest activities in October were all about Halloween – scare fests, haunted houses, haunted hay rides – the holiday has become a month long event. So you, as I did, might have missed a truly terrifying occurrence on October 30th. Here’s how the NY Times reported it:
“Updated, 9:27 p.m. | The House of Representatives, with bipartisan support, passed legislation on Wednesday that would roll back a major element of the 2010 law intended to strengthen the nation’s financial regulations by allowing big banks like Citigroup and JPMorgan Chase to continue to handle most types of derivatives trades in house.
The bill, which passed by a 292-122 vote, would repeal a requirement in the Dodd-Frank law that big banks “push out” some derivatives trading into separate units that are not backed by the government’s insurance fund.
The vote Wednesday, which included the support of 70 House Democrats, followed months of intense lobbying by Wall Street banks. The banks and lawmakers who support the proposal hope that the bipartisan support the bill received in the House will send a strong message to the administration to tread carefully as it drafts the remaining regulations necessary to fully enforce Dodd-Frank.
In fact, emails reviewed by The New York Times show that Citigroup lobbyists drafted more than 70 of the 85 lines of the House bill, as they tried to develop language that Democrats and Republicans on the Financial Services Committee could support.
A main culprit in the 2008 financial crisis, derivatives are contracts that allow companies to speculate in the markets or protect against risk. Credit derivatives helped push the insurance giant American International Group to the brink of collapse in 2008.
With Wednesday’s vote, the House has passed eight bills this year that would roll back provisions of Dodd-Frank.”
Yes, that’s right. The banks whose actions sent our national economy and the world economy into a tailspin which we are still struggling to recover from is back to their old tricks. Banks want to be able to invest in derivatives – the high risk commodities which figured in the sleight of hand theft perpetrated by banks and brokerage firms – with our tax dollars. They want us to assume the risk. Remember what happened last time we did that? We had to bail out those firms. The firms which survived only because of hand-outs from us now want to roll back legislation so they can “get government out of their business.” How convenient is their memory lapse; they wouldn’t be in business if it weren’t for the government!
Fortunately the bill rolling back the Dodd-Frank protections isn’t likely to pass the Senate. Thank goodness one government institution still has our best interests in mind, not their own campaign funds or future careers as lobbyists! After shutting down the government they now vote to remove protections! We should remove them from office! If you care – find out how your local representative voted and remember that come election time!
11/5 Update: Was just sent this link to a site about this same vote: http://www.upworthy.com/something-really-insane-just-happened-in-congress-and-you-probably-havent-heard-a-word-about-it