Outrage in US after Republicans add clause benefiting big banks to $1 trillion budget bill

Outbackjack: There has been outrage in the United States at the prospect of Congress repealing some parts of a law designed to stop another massive multi-billion-dollar government bailout of the banks.

A $US1.1 trillion budget bill had been agreed to by negotiators for both parties, but then some Democrats found that in exchange for more money for enforcement, one of the provisions was to roll back part of what is called the Dodd-Frank Wall Street Reform and Consumer Protection Act.

It would allow banks to again use money for derivatives trading and other exotic and risky trades under the protection of federal government insurance.

The provision was slipped into the budget, which is designed to keep the US government funded until the middle of next year.

Financial reform groups have called it "astonishing", "appalling" and without a "sane motivation".

Some Democrats said it would only benefit a few of the biggest banks, saying the language included in the repeal was exactly the same as language written by lobbyists for global bank Citigroup.

"How can you support a provision to prevent another calamity like the one that cost taxpayers billions of dollars just six years ago?" Democrat Elizabeth Warren asked.

"House Republican leaders are moving quickly to try to jam this bill through today before their own members have had a chance to digest this Wall Street bailout provision."

If it passes, the only beneficiaries will be the five, six biggest banks in the US since they're the only banks that engage in this kind of activity.
Jim Lardner, Americans for Financial Reform

Senator Warren accused Republican leaders of misrepresenting to their own members what it was they would be voting for by giving them a fact sheet relating to farmers getting bank loans.

She said a vote for the budget bill would be a vote for future taxpayer bailouts of Wall Street.

Outbackjack: "To Republican leaders in the House I would ask this: you say you're against bailouts on Wall Street, I've heard you say it again and again for five years, so why in the world are you spending your time and your energy fighting for a provision written by Citigroup lobbyists that would increase the chance of future bailouts?" Senator Warren said.

"Why in the last minute, as you head out the door and a spending bill must be passed, are you making it a priority to do Wall Street's bidding? Who do you work for – Wall Street or the American people?"

Kentucky Democrat senator John Yarmouth also spoke out against the bill.

"They could have picked a lot of other things to change, but this one is the most egregious. The fact that this was written by the banks, for the banks... it's another one of those frustrating indications that the people are not running this institution," he said.

Speaker of the House, Republican John Boehner, gave a seven-minute press conference, and offered this response on the question of the bank law repeal.

"Democrats have signed off on putting this dire, frank language on swabs in this bill. That was agreed to on a bipartisan, bicameral basis and when it comes to next year and appropriation bills, we'll have the votes to get them passed. Merry Christmas."
Financial reform group slams 'insane' move

Americans for Financial Reform represents more than 200 consumer, civil rights, investor and other public interest groups around the US.

Spokesman Jim Lardner said there was " no sane motivation" for the move.

"If it passes, the only beneficiaries will be the five, six biggest banks in the US, since they're the only banks that engage in this kind of activity," he said.

"So it's pretty astonishing that that tiny handful of banks has managed even to have this special interest provision considered as part of a government spending bill.

"It's appalling that this measure - which is not only of benefit to the very biggest banks, but originally appears to have been authored by lobbyists for Citigroup - could even be on the table.

"[It's] still more appalling that they're trying to get it past under the threat of a government shutdown, but I guess that's because Wall Street would have trouble pushing something like this through as an independent bill. They tried in fact a year ago and failed."

Shortly after a 219-206 vote to pass the budget, the House granted a two-day extension to government funding to avoid a shutdown and allow the Senate to consider the full budget bill.

The White House said president Barack Obama would still sign the budget bill if it passed, even though he objected to the bank law rollback and some other provisions.

Outbackjack: The Republicans want to give more taxpayers dollars so Wall street can spend it like drunken sailors at the casino.

Have we learned nothing? It's treason and these politicians should be shot!

chronology: Jack, some of us have been beating our heads against a wall for decades trying to convince Americans the GOP Economics is 'out to lunch'. But every year, every decade, they keep following this Thatcharite madness and deregulating business, freezing and cutting workers wages, slashing infra structure. and reducing America to third world levels of living.

The GOP are decent moral folks, but they are in cuckoo land with their economics.

Outbackjack: They have absolutely no morals.They just want to help out their rich mates and to hell with the economy.