It has not been my intention to use this blog for political posturing, but I am furious by the Repug’s loading up this bill with freebies and giveaways, because they think we’ll cave to prevent a shutdown. They are trying to remove one of the provisions in the Dodd-Frank law that protects us, the taxpayers, from insuring the risky behavior of banks. What the provision in the law does is prevent banks from dealing in derivatives or other questionable commercial paper without creating a separate entity to do the dealing. The banks have to segregate those transactions from those insured by the FDIC. This means we won’t have to bail out the banks if they screw up again. What the Repugs want to do is to wipe out the distinction between the questionable activities and those that we normally associate with banking. That way, the funny transactions are insured too.
This is a major blow to those of us who have hoped to protect our important banking services from the gungho, death-defying acrobats of the soft financial field of derivative trading. This is another crash waiting to happen, and the best part of what they’re trying to do? Citibank wrote the language in the Boehner bill to get what they want.
If you agree with me, and I’m sure many of you do not, please go to ElizabethWarren.com and sign up to send word to your congressmen not to sign on to this travesty. This will be voted on, Thursday, December 11. It must be stopped.