Government funding bill with Wall Street giveaways passes in House

Government funding bill with Wall Street giveaways passes in House

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On Thursday night, the House of Representatives voted to pass a government funding bill, but some of the more progressive members of the House stood in opposition to this spending bill because it contained policy riders that benefited the big banks and the wealthy. One rider would permit the big banks to perform more high-risk trades with taxpayer backed funds. The second policy rider in question would increase the amount of money that individuals can give to national political parties for retiring campaign debt, hosting a convention, and replenishing recount funds.

According to Mother Jones, the high-risk trade provision was written entirely by Citibank lobbyists and would enable the big banks to use taxpayer funds to bailout derivatives trades:

“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.”

In essence, this amounts to a giveaway for the big banks. The White House was encouraging House Democrats to support the bill even though it opposed the bank giveaway measure.

Minority leader Nancy Pelosi (D – San Francisco) said, “I’m enormously disappointed that the White House feels that the only way they can get a bill is to go along with this. I feel sad for the American people today.”

Passage of the spending bill is a big score for government for the people the banks!

Photo credit: bull by joel licensed under CC BY-SA 2.0

3 COMMENTS

  1. Wall Street-giveaways: The American people continue to suffer the brunt of the wage gap and income inequality in the U.S…Lower wage jobs are gaining in the employment market while higher paying jobs lost during the recession have yet to return. The challenges of workers laid off during this period that find and settle for these lower paying jobs was highlighted in a new report released by the U.S. conference of mayors…Impunity is deeply rooted in the government,people continue to suffer. This needs to change, or the people will be forced to demand their rights by force.

  2. Why use force? Did the people you help to elect participate in this swindle? Most Democrats and Republican representatives have become corrupted, and primarily serve the major financial institutions & corporations: but people still insist on voting for them. The only difference is that the Democrats (Nancy Pelosi/ the Obama administration) publicly posture about being the defenders of the little guy and the bane of Wall Street fat cats: what tripe!

    No positive, constructive change will come from the Democrats/Republicans. Why is, this so hard to understand? The belief that Democrats are helpless in the face of virulent right wing attitudes and cold hearted market driven forces is utter nonsense; Democrats have been surreptitiously participating in all this: deregulations of Wall Street, attacks against unions, attacks against worker pensions funds, support of outsourcing and free trade agreements, support of a hyper imperialistic foreign policy and the militarization of our society.

    Voting Democrat is just voting for a different group of bastards. You do have 3rd party options – a few of them actually decent. No change will come through the Democrats and playing only defense is a losing game in the end.

  3. The era of massive looting must stop, they keep deceiving people with crumbs just to keep them down and trample on them. The era of impunity and looting of the National Treasury is over. We will not allow those who stole our money and hid it in their foreign bank accounts; in fact many of them would end up in federal prison…The drop in State and Local Government Revenue is a clear result of corruption in government.

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