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!