Thread: House Passes Government Funding Bill with Bankster Derivatives Bailout Provision

House Passes Government Funding Bill with Bankster Derivatives Bailout Provision

Preparation for the next bankster bailout

by Kurt Nimmo | Infowars.com | December 12, 2014



House Republicans have pushed through a 1,600 page, $1.1 trillion dollar government spending bill containing a Citibank shepherded provision that puts the Federal Deposit Corporation on the hook for financial derivatives losses.

House Republican leader John Boehner: Bailout provision will not hurt Americans.
It passed late Thursday by a 219-206 vote.
Republicans who opposed the bill did so because it failed to block Obama’s executive actions on immigration. House Democrats opposed the banking provisions and the easing of restrictions on contributions by big donors.
Obama disciplined wavering Democrats and instructed them to vote for the legislation. The bill now moves to a Democrat controlled Senate where it is expected to pass.
Banksters also leaned on Congress:

The provision was so important to the profits at (nation’s biggest banks) that J.P.Morgan’s chief executive Jamie Dimon himself telephoned individual lawmakers to urge them to vote for it, according to a person familiar with the effort.

“At least we now know with certainty that to a clear majority in Congress – one consisting of republicans and democrats – the future viability of Wall Street is far more important than the well-being of their constituents,” Zero Hedge writes this morning.

Which also, implicitly, was made clear when Hank Paulson was waving a three-page “blank check” term sheet, and when Congress voted through the biggest bailout of banks in US history back in 2008.
The only question is when the next multi-trillion (or perhaps quadrillion now that all global central banks are all in?) bailout takes place.

http://www.infowars.com/house-passes...out-provision/

Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For

Submitted by Tyler Durden on 12/12/2014 07:52 -0500

Courtesy of the Cronybus(sic) last minute passage, government was provided a quid-pro-quo $1.1 trillion spending allowance with Wall Street's blessing in exchange for assuring banks that taxpayers would be on the hook for yet another bailout, as a result of the swaps push-out provision, after incorporating explicit Citigroup language that allows financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp, explicitly putting taxpayers on the hook for losses caused by these contracts. Recall:

Five years after the Wall Street coup of 2008, it appears the U.S. House of Representatives is as bought and paid for as ever. We heard about the Citigroup crafted legislation currently being pushed through Congress back in May when Mother Jones reported on it. Fortunately, they included the following image in their article:



Unsurprisingly, the main backer of the bill is notorious Wall Street lackey Jim Himes (D-Conn.), a former Goldman Sachs employee who has discovered lobbyist payoffs can be just as lucrative as a career in financial services.
We say explicitly, of course, because taxpayers have always been on the hook implicitly for the next Wall Street meltdown.
Why?

Exhibit A: US banks are the proud owners of $303 trillion in derivatives (and spare us the whole "but.. but... net exposure" cluelessness - read here why that is absolutely irrelevant when even one counterpaty fails):


Exhibit B: Here are the four banks that are in complete control of the US "republic."



At least we now know with certainty that to a clear majority in Congress - one consisting of republicans and democrats - the future viability of Wall Street is far more important than the well-being of their constituents. Which also, implicitly, was made clear when Hank Paulson was waving a three-page "blank check" term sheet, and when Congress voted through the biggest bailout of banks in US history back in 2008.

The only question is when the next multi-trillion (or perhaps quadrillion now that all global central banks are all in?) bailout takes place.

Source: OCC



http://www.zerohedge.com/news/2014-1...s-are-now-hook