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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsWall Street Demands Derivatives Deregulation
Wall Street Demands Derivatives Deregulation In Government Shutdown Bill
http://m.huffpost.com/us/entry/6272776
WASHINGTON -- Wall Street lobbyists are trying to secure taxpayer backing for many derivatives trades as part of budget talks to avert a government shutdown.
According to multiple Democratic sources, banks are pushing hard to include the controversial provision in funding legislation that would keep the government operating after Dec. 11. Top negotiators in the House are taking the derivatives provision seriously, and may include it in the final bill, the sources said.
The bank perks are not a traditional budget item. They would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. -- potentially putting taxpayers on the hook for losses caused by the risky contracts. Big Wall Street banks had typically traded derivatives from these FDIC-backed units, but the 2010 Dodd-Frank financial reform law required them to move many of the transactions to other subsidiaries that are not insured by taxpayers.
Taxpayer insurance helps banks secure higher credit ratings for their derivatives, since taxpayers assume some of the risk, which in turn makes the banks more profitable.
( more at link )
Jesus Malverde
(10,274 posts)Using the FDIC as a bailout for derivative gambling. You can't come up with more Chutzpa that that.
TexasMommaWithAHat
(3,212 posts)Is every outgoing president going to screw us?
Surely, this isn't going to happen? Obama? Where are you
What the hell......arrrgggghhhhhhhh
abelenkpe
(9,933 posts)You'd think he'd lay low after all we've been through since the bailouts but the nerve. Hope this doesn't happen.
pansypoo53219
(20,969 posts)raouldukelives
(5,178 posts)JustAnotherGen
(31,798 posts)That can't be in any agreement. This is one to get on the phone and to write all Democratic office holders in opposition to. It gives the government free reign for bail out when Hedge Fund and Investment banks lose the bet. And due to the global reach of those funds - the risk is high for a loss.
steve2470
(37,457 posts)This cannot pass or we are all FORNICATED.
JustAnotherGen
(31,798 posts)Here or anywhere - at the booth or with my check book -
Any democratic party member that approves this inclusion.
It's absolutely insane.
steve2470
(37,457 posts)I will donate to the Democratic primary opponent of anyone who is for this. Nelson of FL better oppose this, I'm sure Rubio of FL will be for this. My own Republican rep. will probably be for this, but he's hopeless.
snappyturtle
(14,656 posts)AtomicKitten
(46,585 posts)Enthusiast
(50,983 posts)This nation is on a path to pure destruction. All for the profits for a select few at the expense of HUNDREDS of millions.
denbot
(9,899 posts)Really,after a trillion + of OUR sweat, savings, and equity vanished, and they have the fucking nerve to push this shit.
The fucking gall.
marym625
(17,997 posts)because they can spin a derivative anyway they want.
RiverLover
(7,830 posts)because we didn't have Glass-Steagall anymore to protect us. (Citi spent $100 million lobbying to get rid of G-S)
And now they want to side-step the lite version of that Dodd-Frank to gamble with our money directly? Is that what I'm reading?
Great.
And A Democrat pushed for this last year? I missed this.
from the linked article~
Himes was passed over for leadership positions after the 2014 midterm elections, which he said he interpreted as unrest within the Democratic Party over his strong ties to financial elites.
"My guess is, it was a factor, which is disappointing because I think the criticism is way off base," said Himes, who previously worked at Goldman Sachs.
DeSwiss
(27,137 posts)K&R
If anybody needs me during the Revolution, I'll be at either the Monsanto or FDA neuterings.....
TheKentuckian
(25,023 posts)But, yuck. What an image.
el_bryanto
(11,804 posts)I mean i get what you are saying, and it might happen - but as the economy goes into the crapper the people who will be hurt the most are the poor, and working class. Real people are going to really suffer, probably for a long time.
Bryant
Jackpine Radical
(45,274 posts)The big shot walk away with bonuses from the bailout money.
el_bryanto
(11,804 posts)Odin2005
(53,521 posts)marym625
(17,997 posts)Most of them can't even define it. The accounting world can't even agree on how to account for them. Although, that changes whenever needed to help the rich increase their balance sheets
These people should be in jail. How about going after real criminals like Dimond and Summers instead of people like Eric Garner and Mike Brown.
srican69
(1,426 posts)Them to smooth out fuel prices and keep operations predicable. They are big part of agri businesses.
They are rarely ever used in naked bets .. But are used to hedge a position already held.
What should not be done, as Goldman did, was knowingly sell a losing position to a party and then make the opposing bet using a derivative. Goldman not only did that... But actually engineered financial products that were designed to fail by packing it with crappy mortgages and then proceeded to buy credit default swaps ( insurance) on them.. What really bothered me was that they got paid 100% on those bets through the government bail out of AIG when AIG went kaput.
marym625
(17,997 posts)But whenever you're screwing with reality, I think it's wrong. I hate derivatives.
99Forever
(14,524 posts)We the People no longer have a say in any of this. This administration folds like a cheap suit.
bemildred
(90,061 posts)mtngirl47
(988 posts)It's the only way these criminals can be stopped.
Washington has proven that they are beholden to the "too big to fail" banks. Take your money out of the big banks and put it in a local credit union where you are a share holder and the money stays in your community.
mikehiggins
(5,614 posts)The PTB allready have moved in the direction of crippling credit unions. If a large number of peons, I mean, consumers, switch to CU's the bad guys will increase their efforts.
mtngirl47
(988 posts)If they close the credit unions then there is always the mattress solution. Money talks--I won't let them have my money to play with.
Every day I try to make decisions to keep my money local---from trying to buy items made in the USA to eating at a local mom & pop instead of a big franchise. WalMart and Lowes have mostly eliminated small businesses in our rural area, but I have found alternatives and I don't pay any more in the long run.
Odin2005
(53,521 posts)hobbit709
(41,694 posts)Erich Bloodaxe BSN
(14,733 posts)No, just freaking NO!
Can't they even pretend to not be blatantly corrupt for a few more years?
sendero
(28,552 posts).... the banks depending on the stupidity of the Average American and the Corruption of our Congress.
I swear if they do this I will pull every dollar I don't need to make payments out of the banking system.
Snarkoleptic
(5,997 posts)Demanding to privatize huge profits from wild speculation, while socializing the losses.
With a big side-helping of FUCK YOU, Wall Street.
RoccoR5955
(12,471 posts)sgtbenobo
(327 posts)....should just caucus with the fucking Republican's. If they are so set on serving the oligarchs why can they just show their true stripes. It's not like anyone will do anything about it.
Most, people in this country don't realize that "cake" is the crap on the bottom of an oven.
Carry on.
steve2470
(37,457 posts)Such a bad idea, criminal. wtf.
el_bryanto
(11,804 posts)With majorities in both houses though, the Republicanoids might be able to force it through.
Bryant
steve2470
(37,457 posts)steve2470
(37,457 posts)think
(11,641 posts)Turbineguy
(37,313 posts)You get the vig in and out and the dolts underwrite your losers.
Octafish
(55,745 posts)Dog Eat Dog capitalism for the mopes who also get to pick up the tab.
Anyone know who owns the Ocean Casino?
RiverLover
(7,830 posts)Octafish
(55,745 posts)Here's where I got my idea from:
Behind the Curtain: Booz Allen Hamilton and its Owner, The Carlyle Group
Written by Bob Adelmann
The New American; June 13, 2013
According to writers Thomas Heath and Marjorie Censer at the Washington Post, The Carlyle Group and its errant child, Booz Allen Hamilton (BAH), have a public relations problem, thanks to NSA leaker and former BAH employee Edward Snowden. By the time top management at BAH learned that one of their top level agents had gone rogue, and terminated his employment, it was too late.
For years Carlyle had, according to the Post, nurtured a reputation as a financially sophisticated asset manager that buys and sells everything from railroads to oil refineries; but now the light from the Snowden revelations has revealed nothing more than two companies, parent and child, bound by the thread of turning government secrets into profits.
And have they ever. When The Carlyle Group bought BAH back in 2008, it was totally dependent upon government contracts in the fields of information technology (IT) and systems engineering for its bread and butter. But there wasn't much butter: After two years the companys gross revenues were $5.1 billion but net profits were a minuscule $25 million, close to a rounding error on the companys financial statement. In 2012, however, BAH grossed $5.8 billion and showed earnings of $219 million, nearly a nine-fold increase in net revenues and a nice gain in value for Carlyle.
Unwittingly, the Post authors exposed the real reason for the jump in profitability: close ties and interconnected relationships between top people at Carlyle and BAH, and the agencies with which they are working. The authors quoted George Price, an equity analyst at BB&T Capital: "[Booz Allen has] got a great brand, they've focused over time on hiring top people, including bringing on people who have a lot of senior government experience." (Emphasis added.)
For instance, James Clapper had a stint at BAH before becoming the current Director of National Intelligence; George Little consulted with BAH before taking a position at the Central Intelligence Agency; John McConnell, now vice chairman at BAH, was director of the National Security Agency (NSA) in the 90s before moving up to director of national intelligence in 2007; Todd Park began his career with BAH and now serves as the country's chief technology officer; James Woolsey, currently a senior vice president at BAH, served in the past as director of the Central Intelligence Agency; and so on.
BAH has had more than a little problem with self-dealing and conflicts of interest over the years. For instance in 2006 the European Commission asked the American Civil Liberties Union (ACLU) and Privacy International (PI) to investigate BAHs involvement with President George Bushs SWIFT surveillance program, which was viewed by that administration as just another tool in its so-called War on Terror. The only problem is that it was illegal, as it violated U.S., Belgian, and European privacy laws. BAH was right in the middle of it. According to the ACLU/PI report,
Though Booz Allens role is to verify that the access to the SWIFT data is not abused, its relationship with the U.S. Government calls its objectivity significantly into question. (Emphasis added.)
Among Booz Allens senior consulting staff are several former members of the intelligence community, including a former Director of the CIA and a former director of the NSA.
As noted by Barry Steinhardt, an ACLU director, Its bad enough that the [Bush] administration is trying to hold out a private company as a substitute for genuine checks and balances on its surveillance activities. But of all companies to perform audits on a secret surveillance program, it would be difficult to find one less objective and more intertwined with the U.S. government security establishment. (Emphasis added.)
CONTINUED w Links n Privatized INTEL...
http://www.thenewamerican.com/usnews/crime/item/15696-behind-the-curtain-booz-allen-hamilton-and-its-owner-the-carlyle-group
The Oh-So-Social set, coincidentally I am certainly told, also happened to be the same crowd that became CIA, who welcomed in history's real gangsters to the table.
RiverLover
(7,830 posts)Its so difficult to believe its gotten as bad as it has, but collectively we really really need to Wake Up.
It sucks that MSM is beholden, by advertising & stock ownership, to the same forces that drive the literal takeover. Most people have absolutely no idea. They are largely keeping people in the dark, or marginalizing the problem if its reported on.
steve2470
(37,457 posts)Octafish
(55,745 posts)¿Conoces a alguien de esa playa?
steve2470
(37,457 posts)fredamae
(4,458 posts)congress. If you're interested in sharing your opinion and congressional directive:
http://clerk.house.gov/member_info/TTD-113.pdf
And just food for thought...a list of very wealthy congresscritters
http://media.cq.com/50Richest/