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&region=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.



  1. #1 by John Michael Brummer on December 11, 2014 - 9:23 AM

    Why do you write such dam’nd good comments, but do not recieve any reactions? It must be frustrating that most americans seem not to listen. Whats going wrong overthere?

    • #2 by cheekos on December 11, 2014 - 5:39 PM

      Mr. Brummer, thanks very much for the Comment. Unfortunately, I believe that many Americans seem to be more wrapped-up in two-word sound bites, short-term summaries and appear not to have much curiosity about the underlying facts behind an issue.

      The whole idea of this Post was to point-out that something, appearing at first glance to have accomplished a valid purpose–avoid a Government Shut-Down, as we saw a year ago, might not what it seems. Unfortunately, when you get into the details of the House version of the Omnibus Spending Bill, it will merely set America up for a “return to yesteryear””–namely The Great Recession (4Q07-1Q09).

      During that time, you may recall: the Stock Market dropped by more than 50%; the Bond Market froze-up and, for the most part, ceased to exist; Corporate Lay-Offs spiked; Housing values dropped, and the Bush II Administration started bailing out the Big Banks. Obama had followed, out of necessity.

      And now, the TBTFs are stronger than ever, have more than 60% of America’s Banking Deposits, and still take undue trading risks. The alleged Citigroup-drafted wording in the House version of the Omnibus Bill proposes to de-fang Dodd-Frank in order to stay on the Public Dole. And the other key point in Citi’s wording is to provide Big-Corporations with even more political power to do so. Thanks for listening.

  2. #3 by cheekos on December 12, 2014 - 3:58 PM

    The linked article includes more information to show some of the behind-the-scenes maneuvering of Top Bank Executives and Business Organizations, in order to erode the very safeguards which were provided by Dodd-Frank to insure that there is not a reoccurrence of The Great Recession.


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