What do the following terms (in no particular order) all have in common: Government Shut-Down; Securities Derivatives, Too-Big-to-FAIL (TBTF); Dodd-Frank (Legislation); gamble with Taxpayer money; High-Income Wall Streeters; Citigroup; Democracy and The Great Recession (4Q097-1Q09)? The common denominator in this is that each is suggested in the linked Post from Senator Elizabeth Warren’s (D-MA) Blog, as follows: http://elizabethwarren.com/blog/stop-the-republicans-wall-street-giveaway.
Members of both the U.S. House and Senate Appropriations Committees have been working on the Omnibus Spending Legislation to keep the Government funded in the short-term, until the more permanent Budget can be passed by both Houses, and signed into Law by the President. However, the House version, cited by Senator Warren, reports that the linked article, from the NY Times, reports that: “one provision that rolled back Wall Street regulations and could deliver a financial bounty to big banks, and another that would allow big donors to wield even more influence over political parties.” The link is: http://www.nytimes.com/2014/12/11/us/trillion-dollar-spending-pact-angers-campaign-finance-watchdogs.html?hp&action=click&pgtype=Homepage&module=first-column-region®ion=top-news&WT.nav=top-news.
If you click on the page from the draft legislation from Citigroup (part way down, on left), which is from Citigroup, and obtained by the New York Times, there is a notation under it, which states: “One of the bill’s provisions would ease rules of the Dodd-Frank securities regulation law of 2010 on some of the most exotic financial instruments that helped cause the most recent financial crisis.” Senator Warren knows all about this.
Prior to her election to the U.S. Senate in 2012, Elizabeth Warren was a Professor at the Harvard Law School, specializing in Bankruptcy Law. She was brought to Washington, following the Great Recession, in order to help draft Legislation to ensure that such risks and the horrendous fall-out do not happen again. Dodd-Frank was the product of that collaboration, as well as the formation of the Consumer Financial Protection Bureau. The GOP fought her nomination to become the first Director of the CFPB. So, the Senate Majority Leader Harry Reid (D-NV) was most happy, when she was elected, to appoint her to the Senate Banking Committee–which has become the Republicans worst nightmare.
So, with Citigroup reportedly drafting the house Bill, it apparently cherry-picked the wording of that portion of Dodd-Frank that it–and certainly the other TBTFs–wanted to include in the Omnibus Spending bill, and re-drafted what they didn’t like. So, in effect, the large banks that took many of the risks–derivatives, credit default swaps, sub-prime mortgages, etc.--which caused the global Financial Melt-Down several years back, want to make sure that they can do it again. They want to be back on the public dole.
And remember, because they are so very, very large, and globally inter-linked, many National Governments “HAD” to bail their respective Banks out. So, the Banks want to de-fang Dodd-Frank, which was intended to prevent a similar Great Recession, or worse, from happening again. A second point in that NY Times article notes that corporations can “Buy even More Privilege” (my wording) in order to keep that wording in future legislation”—or improve upon it.
If you agree that the Too Big to Fail Banks should be broken-up, allowed to fail or just not gain this access to our money, Email your Congressman and your Senator on: “www.house.gov” and “www.senate.gov”.
NOTE: Sorry for the wordiness and short notice. I just noticed this Wednesday night and wanted to get it out. The House votes tomorrow, and the Senate will vote sometime in the near future.