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The system is not working if a nameless person does the bidding of the financial lobby and voters never know the congressman, this is not democracy. I understand that this is done on minor issues but this is too important to not have a debate.
I wish they would put their policies up for debate and a democratic vote, as opposed to sneaking them into 'must pass' spending bills where the only alternative is shutting down the government. They wrote a 1600 page bill and give Congress 48 hours to read it, which is impossible. In the bill are buried all kinds of things they have been unable to get passed through democratic elections. Even the legal marijuana law in DC, which passed by 70% vote, is being nullified.
We have to pass the bill so we will know what is in it. Y'all set the standard.
Well then your going to hate this bill because this rolls back regulations under Dodd-Frank that prohibited financial institutions from using FDIC to back investments on some more complicated financial investments.
These derivatives aren't bad when used properly, basically the bank is freeing up capital by insuring it's loans. This was used with Exxon after the Valdez disaster, I think it was JPMorgan and they loaned them something like 10 billion. Banking regulations dictated they had to have X amount of assets set aside to cover the loan. Instead they offloaded the risk to investors with a derivative. Exxon gets their loan, the bank still has all that capital to loan out to others and the risk is on the investor who is going to make a nice chunk of change because the possibility of Exxon defaulting is about 0.
When you combine them with say something like a housing boom and mortgages that should never have written then you have an issue.... The collapse is the failure of the entire sytem from the people taking out mortgages they could not afford all the way through to the investor who was looking to get rich on a risky investment.
These derivatives aren't bad when used properly, basically the bank is freeing up capital by insuring it's loans. This was used with Exxon after the Valdez disaster, I think it was JPMorgan and they loaned them something like 10 billion. Banking regulations dictated they had to have X amount of assets set aside to cover the loan. Instead they offloaded the risk to investors with a derivative. Exxon gets their loan, the bank still has all that capital to loan out to others and the risk is on the investor who is going to make a nice chunk of change because the possibility of Exxon defaulting is about 0.
When you combine them with say something like a housing boom and mortgages that should never have written then you have an issue.... The collapse is the failure of the entire sytem from the people taking out mortgages they could not afford all the way through to the investor who was looking to get rich on a risky investment.
One of the largest issues in 2008 was complicated derivatives that no one had a handle on, neither the rating industries or the investment banks truly understood these hybrid investments. If it's too complicated for the banks that offer these investments to understand,. they should not be backed by taxpayers. They should be getting back to basic issues as mentioned above but asking the FDIC to insure these derivatives is a good part of the problem.
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The larger issue is what congressman saw this as an issue that required a rider in this bill, that would answer a lot of questions.
An identical standalone bill passed the house with 70 votes from Democrats.
Yes it did in a prior year the corruption of the lobbyists extends to both parties, this time it appears to be mostly the GOP. If we are going to travel backwards on this issue considering what happened then money has definitely won the battle.
Liberals aren't attaching idiotic demands to a freaking spending bill.
For once I am in agreement with you, however the ones that have attached bad stuff to the bill are RINOs.
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