Something Really Insane Just Happened In Congress, And You Probably Haven't Heard A Word About It! (CNN, holidays)

[J746NEW]

H.R.992 - Swaps Regulatory Improvement Act

H.R.992 - 113th Congress (2013-2014): Swaps Regulatory Improvement Act | Congress.gov | Library of Congress

Swaps Regulatory Improvement Act - Amends the Dodd-Frank Wall Street Reform and Consumer Protection Act with respect to the prohibition against certain federal assistance to swaps entities, namely the use of any advances from specified Federal Reserve credit facilities or discount windows, or Federal Deposit Insurance Corporation (FDIC) insurance or guarantees, for the purpose of: (1) making any loan to, or purchasing any stock, equity interest, or debt obligation of, any swaps entity; (2) purchasing the assets of any swaps entity; (3) guaranteeing any loan or debt issuance of any swaps entity; or (4) entering into any assistance arrangement (including tax breaks), loss sharing, or profit sharing with any swaps entity.

Extends to any major swap participant or major security-based swap participant that is an uninsured U.S. branch or agency of a foreign bank the exemption from the prohibition against federal assistance to swaps entities which is currently limited to any major swap participant or major security-based swap participant that is an FDIC-insured bank or savings association.

Designates both uninsured U.S. branches or agencies of a foreign bank and insured depository institutions as "covered depository institutions."...........

So...We finally find a bill that passes easily with bi-partisan support through Congress.

Unfortunately it re-authorizes the Fed to bailout banks that gamble on swaps and derivatives...

And it was literally written by Citigroup..

It puts the tax payer back on the hook for the Bank's failed Derivative Gambles in the Stock Market.

Passed November 30th...Congress always sneaks in ugly legislation around the holidays when no one is paying attention.

This bill being bi-partisan also meant no one made the rounds on Sunday morning arguing about it, no one went on CNN with partisan jabs etc. etc. They just quietly agreed and passed it during the holidays.

Something Really Insane Just Happened In Congress, And You Probably Haven't Heard A Word About It, page 1

The system is rigged through corruption to do one thing for the banks.....Privatize the profits...Socialize the losses. That is a simple formula for what nearly collapsed our economy and is driving us toward unprecedented income inequality. God help me...what bank executive won't gamble if they know that they get to keep the winnings for big bets, but if they lose...the fed will cover the losses with taxpayer funds.

[Swingblade]

Not surprising since the big banks grease the palms on both sides of the aisle. Example of how both parties are alike and sometimes bi partisanship and working together is not always a good thing.

[buddy5]

Originally Posted by Swingblade

Not surprising since the big banks grease the palms on both sides of the aisle. Example of how both parties are alike and sometimes bi partisanship and working together is not always a good thing.

They always work together when they line their palms with 'OUR' money.

[nononsenseguy]

Well, there has been no short supply of criticism of Dodd Frank hamstringing the economy, and some say it should be repealed entirely.

[2e1m5a]

Yeah, anything easily and quietly passed with bi-partisan support by these scum in Congress needs to be examined and scrutinized sadly.

Politicians these days appear to not know up from down but when their masters need something done it will get done at lightning speed, believe that. They really are pathetic excuses for people.

[Dockside]

Dodd-Frank has turned into a monster. It's three years old, only half has been written and depending on your news source, it's either 9000 pages or 14,000 pages long. There's lots of leeway for all kinds of mischief in this blob of a bill.

[CDusr]

They are one of the big 4. Of course, this is where the action is. The signs are everywhere.
I mentioned this myself on another thread.

Originally Posted by CDusr

No, they seem to have no interest in stopping.
» House Voted to Get Banksters Back in the Derivatives ...
quote:
H.R. 992, the Swaps Regulatory Improvement Act, authored primarily by Citibank lobbyists, will allow predatory Wall Street financial institutions to once again engage in high-risk derivatives trading. Losses will be socialized and paid for by the American taxpayer through the Federal Deposit Insurance Corporation or FDIC.

This kind of thing is why.

Originally Posted by CDusr

Since the OCC states 60-80% of the derivative market is interest rate contracts(80) and interest rate swaps(60). You can see the importance of that in that breakdown I posted of the 26trillion the fed "loaned". Can also see the role of the big four banks especially the main govt bank, JPM.

U.S. Treasury Bond Teetering Tower Of Babel, Fed Stuck At 0 ...
quote:
Any rise, even a moderate rise, in the USTBond yield would result in multi-$trillion losses from the derivatives hidden at work. The vast Interest Rate Swap would deliver massive blows like a machete across the entire financial sector. Every big US bank involved in heavy IRSwap enforcement as bond market intervention would suffer losses in the multiple $trillions

[HeyJude514]

Originally Posted by buddy5

They always work together when they line their palms with 'OUR' money.

Originally Posted by Swingblade

Not surprising since the big banks grease the palms on both sides of the aisle.

Originally Posted by 2e1m5a

Politicians these days appear to not know up from down but when their masters need something done it will get done at lightning speed, believe that. They really are pathetic excuses for people.

I think we've found an issue where both the left and the right agree.

[AeroGuyDC]

Hope N' Change

[maf763]

Originally Posted by AeroGuyDC

Hope N' Change

In the Republican controlled House.