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Wall Street Moves To Put Taxpayers On The Hook For Derivatives Trades
Submitted by Mike Krieger via Liberty Blitzkrieg blog,
Wall Street has for some time attempted to put taxpayers on the hook for its derivatives trades. I highlighted this a year ago in the post: Citigroup Written Legislation Moves Through the House of Representatives. Here’s an excerpt:
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. The last time Mr. Himes made an appearance on these pages was in March 2013 in my piece: Congress Moves to DEREGULATE Wall Street.
Fortunately, that bill never made it to a vote on the Senate floor, but now Wall Street is trying to sneak it into a bill needed to keep the government running. You can’t make this stuff up. From the Huffington Post:
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.
Last year, Rep. Jim Himes (D-Conn.) introduced the same provision under debate in the current budget talks. The legislative text was written by a Citigroup lobbyist, according to The New York Times. The bill passed the House by a vote of 292 to 122 in October 2013, 122 Democrats opposed, and 70 in favor. All but three House Republicans supported the bill.
It wasn’t clear whether the derivatives perk will survive negotiations in the House, or if the Senate will include it in its version of the bill. With Democrats voting nearly 2-to-1 against the bill in the House, Senate Majority Leader Harry Reid (D-Nev.) never brought the bill up for a vote in the Senate.
Remember what Wall Street wants, Wall Street gets. Have a great weekend chumps.
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Get out the hempen rope, sharpen your cutlasses, and ready the guillotines!
Slime ball bankers are broke, and this attempt to get foodstamp nation to subsidize their insolvency totally proves it.
Federal Derivative Insurance Corporation
This really isn't all that hard to understand....
They come to your place of business and explain in very unemotional terms the risk your business has from fire or vandalism and the importance of "insurance" or protection. Oh sure, it expensive and hard to really understand, but eventually it sinks in, the costs of being shaken down.
Everything has risk and those risks are continually being obscured by pretend regulations, and when the true nature of the risk comes to light, then we are told how imperative it is that we subsidize these fuckers. Yes, if we let them fail they will take us down with them. Yes, to bail them out will keep this sucker afloat for a while longer, but it will cave in our our heads again. Because the issues have not been repaired but also because we have made failure so damned profitable. This will only stop when people can finally see beyond the next wave.....to see out to the building tsunami that will either drown us where we stand or wash us out to sea.
The banksters will either rob us or they will kill and then rob us. Probably the latter....
in my view it is a good move ...
But this legislation is EVIL! I'll write a letter.
Yes ;-). Make your point and send this letter to your congress man. He will be shocked, and then everything will change. We need this determined resistance - but always along the due processes provided by the government to its citizens.
Then let us know how to get a message through to a braindead binge-fapper.
When everything is a national security issue, nothing is a national security issue.
But but but...Dodd-Frank fixed all this! And and and...ObamaCare doesn't have an escape hatch for health insurance companies, not at all!
This is Frrrreeeee! Market Enterprise, weeeee!
Gawd, the corrupt fascism never ends.
The only thing people can do is get their money out of those national banks and get credit cards and max them out and default.
They would get to take any real assets then.
I suggest designating an unmarried childless individual to serve as the "bank" for each family.
Everyone sell their houses, cars, and other tangible assets to their own family bank.
THEN max out the credit cards.
Lather, rinse, and repeat.
my best friend's mother makes $82 /hr on the internet . She has been without work for five months but last month her pay check was $20842 just working on the internet for a few hours. browse around this website... www.yelptrade.com
My best friend's grandmother is 80 years old and doesn't use glasses. Drinks straight from the bottle.
May the nauseating fart of a fat arab woman fill your nostrils.
Awesome! +1
oh hell no! *sharpens pitchfork and heats the tar*
I've been waiting so long for this that my ropes degraded so much they couldn't hold a child not to mention a bankster, my blades are blunt, covered in rust and my guillotine cannot be triggered anymore due to the dust preventing the mechanism to fall.
I might just give up the fight and let entropy deal with my particles.
The chumps can come collect their derivative bailout in lead.
We can end this people using market forces. We are migrating all our accounts from JPM to local/regional banks. Everyone on this website who's tired of our government of, by and for the banks should do the same. And, pull a minimum of 2-3% if your assets in physical cash. And convert all high multiple, tightly controlled "float scams" to gold. It is time to end the financial asset ponzi.
Techstrategy is absolutely right. "Move your money" was the best idea to come out of the post 2007/2008 rip-off but who the fuck really did it? How many people moved their money to their local/regional community banks? I did.
How many of you here have pulled your accounts out of the Big 3: Chase, Wells Fargo, Citi?
Until you have done so stop bitching about the status quo and gassing about the far-off riches of your AU/AG futures.
"bitchez"
All the serfs pulled their money out of them a long time ago...whatever was left after taxes and living paycheck to paycheck. There are no pee-ons in the big banking system. The big banks are playing with real money from corporations, states, institutions and other mega money entities. Us little people go to the local credit union.
This strategy actually does work. The problem is you have to give up all those shiny trinkets of convenience that they give you in exchange for your servitude. (mobile banking, etc). The shiny trinket strategy has always worked for oppressors to minimize the amount of resistance. The good news is that in this highly over-leveraged and massively re-re-rehypothecated world that we currently live in, it doesn't take that many individuals choosing the less convenient option of freedom to make a massive outsized difference.
Don't dorget BoA IGN Barclays TD et al
Wait a sec, this is a trick question isn't it?
A boorish dullard once said to me, "man, fuck a bank.. I use cash". Words of wisdom boys, he was right.
I sure as hell did, back in 2010. We need to add to that.... get out and stay out of secured debt, default on any unsecured debt to a big bank, scale down, stop buying more than you need, starve the bastards of cash! No debt, no cash, it all comes tumbling down.
The unfortunate part is we will have to add to this a refusal to pay taxes, because that is how they are getting their money now. When we do that, they will try to jail everyone, but they can't jail us all.
There is a caveat though.
Goldman Sucks has no deposits and still called a bank with all the benefits.
They will do whatever they want, as they want!
Did the election change anything? Did diminishing circulating money change anything? Did the current demonstration change anything?
You have to do no less than go Galt to influence the system.
8 familes control all the money in the US and EU. We will not be far from the truth by citing Goldman Sachs, Rockefellers, Loebs Kuh and Lehmans in New York, the Rothschilds of Paris and London, the Warburgs of Hamburg, Paris and Lazards Israel Moses Seifs Rome. The working tax paying public always get screwed!!
Dead and disabled soldiers, mortgage fraud, bankruptcies, divorce, etc., all for the benefit of the banking elite.
"If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered."
- Thomas Jefferson
Techstrategy, I did this many years ago (have never used the big banks) and prior to my banker blowing his brains out with a .45, he discussed with me, in depth, all of the ass-fucking brought to them via the FrankenDodd FinReg.
The fucking deck is stacked, and the cocksuckers up in Yankton will never stop passing more shitty legislation, at the whims of big banksters.
May they rot in hell.
PS My friend/banker mentioned above was a helluva great guy, business was conducted as a simple phone call and stopping by for a cashiers check.
Why did the poor guy off himself?
I don't know for certain, really wish I did though. I often wonder if the board of directors had been contemplating selling out. (which they have not done)
Financially, the bank was in good shape. Several years ago, they took a pretty hard lick, when a new car dealership filed a multi-million dollar bankruptcy. That was way before the 07-08 implosion, and they had allready done their own policy reform on how they operated.
When the housing bubble popped, he said he felt lucky to live in an area like ours where people are good about paying their bills, and said he couldn't imagine being in a big city and trying to deal with that shit-storm. It did not hurt them too much (not nearly as much as the damn FinReg that followed)
I know he was sick of the regulators placing undue stress on them (as was done by design, to try to assist the takeover of small banks, by the TBTF banks [IMO}).
I also remember him discussing how, during the inflation of the housing market,(remember our former presidents pushing the American Dream, home ownership?) regulators told him that "If they turn anybody down for a loan, there better be 12 good reasons for doing so, because the first 11 won't count". It seemed the Feds thought not enough poor and minorities were buying homes. (this was said during the talk when he said he was lucky to be in this area).
It seemed like life had become, no longer fun, to him in some ways. He sold his cabin and duck-boat due to lack of use. He was VP of the bank and had placed his life's work into making it what it was.
Not a typical banker, they certainly "broke the mold" when they made him. He died in 2012 while I was on the Alaska job, and going to the bank just hasn't been any fun since then.
This comment perfectly illustrates how fucking dumb most peasants are.
YOU ARE USING THE SAME FIAT CURRENCY, FUCKING SLAVE!
People too busy with iPhones and football to stop and care. Oh yeah and that celebrity scandal.
When a strong shift in currencies occurs someone gets hurt and this leads to bankruptcy and contagion. A great deal of the shadow banking world falls into and overlaps into the grey world of derivatives. There is no single commonly adopted definition of derivative or derivative contract in the European Union. This plays havoc with what and when reporting rules apply. It also highlights divisions in how national regulators view reporting rules for the $693 trillion over-the-counter derivatives market.
Remember this is only part of a much larger market that includes hundreds of trillions of dollars in non-reported agreements and private contracts. Everyone paying attention knows that the size of the derivatives market is 20 times larger than the global economy. The article below explores some of the ins and outs including the risk derivatives pose and why they could collapse the economic system.
http://brucewilds.blogspot.com/2014/03/derivatives-house-of-cards.html
I think many forgot about this old article from the ZH archives:
http://www.zerohedge.com/news/bbc-speechless-trader-tells-truth-collapse...
(Start at 2:20) but the entire video is worth watching.
Alessio Rastani: "The Govt Doesn't Rule The World, Goldman Sachs Rules The World"
Possibly one of the BBC's most regretted live interviews. Which is why the BBC usually build in a time delay with live interviews to give the controller time to shout "CUT(!)" to prevent viewers knowing the truth.
cant call BS but certainly smelling it...
http://www.forbes.com/sites/emilylambert/2011/09/27/trader-or-prankster-...
The taxpayers better not fall asleep on Christmas Eve !!!
Gee TS, you still got money in a bank? We leave enuf for our credit card payment and little else. Thats how you move the banks ...take all but 1-2 % out...and let them wonder what happened? Given Balins why would you keep $ in the bank?
Just sayin
EVERY Congresscitter that votes for this ,allows it to pass, and does not remove this HUNDRED TRILLION or TWO HUNDRED TRILION dolar bailout BY TAXPAYERS to fucking bankers, should be executed by being beaten wih a hammer until DEAD, DEAD, DEAD!!!!
Death by BB gun - nice an slooow. Not to mention funny.
Modern stoning...
This is the time of the year banksers do their dirty work. People are busy with the holiday.
The financial system is like an upside down pyramid balancing on a pin head with the savings, businesses and lives of Americans standing under it, just waiting for it to fall and crush them.
http://images.thetruthaboutcars.com/2012/04/prime.jpg
https://educationstormfront.files.wordpress.com/2011/11/houseofcards1.jpg
Why do people keep saying you can't make this stuff up? Obviously someone did make it up. And not just once, they keep pulling the same con over and over.
You don't help your own case by using these worn out phrases especially when they are not true.
I believe it
https://www.youtube.com/watch?v=trjDFPAij40
There isn't enough money on (5) Earths to cover all the derivative exposure banksters have.
Maybe the Japanese Asteroid mining idea has some merritt after~all?
Japan Is Launching An Asteroid Mining Space Program - Business Insider
They dont give a crap about covering the bets.
They only want to offload the costs onto the public and endup with all the assets (bail ins).
They don't care if YOU dont have enough money to bail THEM out.
They just want WHATEVER YOU HAVE.
And they want it free.
Now
Your comment is spot on... We bailed ~in some folks.
Keep sinking those boats and dingys full of shiny stuff Z/H serfs... You won't regret it.
On a lighter note, I think it's going to be a really rough week and EOY for the $usd.
Emerging markets are starting to liquidate their long $usd positions, because the debt carry costs are becoming "extraneous" relative to the term structure of their $usd denominated financing.
Except that it was 2-1 Democratic opposition in the house, opposition by Harry Reid in the Senate, and opposition by the folksy Obama that stopped this provision in 2013.
I guess that flies in the face of people who claim that leftists are always the ones that expand the reach of government.
It'd be interesting to see if Obama will sign it. That is if it makes it to his desk.
If Reid didnt sign it , its because hes negotiating his cut.
Wait a week or so. . .
Democratic opposition may have been based on the fact that Boehner controlled CONgress. The provision was, after all, attributed to a Democrat from CONnecticut.
The RINO (establishment) wing of the GOP is just as banker-owned as the Democrats are. Lacking a CONgress full of representatives having the same perspective of Ron Paul, America is screwed.
They are reaping us like a planted harvest.
Another great ROI here. Spend billions to make a thousands.
Time to jump off this train ride. I ain't payin' for that !
"Welcome to the Hotel California."
NOBODY could pay for that, because it would take at many more planet Earth's to be able to pay for the amounts of "money" created out of nothing by the banksters to enable them to gamble with!
know what radical marijuana (didnt even capitializE) im getting tired of your shit! death and murder systems control money systems! rite so a return to classical economics which you crticize you hypocrite means that you have basic siimplified contract law that is easily enforced and simple as that. which the BRICS are attempting to return to! But I hear you even support their revolution! you are an idiot for spouting your archaic nonsense and I am goin to call you on it every time now! There have been economies throughout history that were based solely on good commerce and good business! granted nukes does change this phenomenon somewhat as you point out but thats only because they wont let the species go off world like we ALREADY ARE! WE ARE A TYPE 0 CIVILIZATION THAT HAS COLONIES AND MILIARY BASES ON OTHER MOONS AND PLANETS BUT I BET YOU HAVE NOTHING TO SAY ABOUT THAT HYPOCRITE! YOUR SYSTEM IS OLD AND ARCHAIC SCIENCE AS YOU CLAIM THAT IS NEEDED TO REVOLUTIONIZE HAS ALREADY REVOLUTIONIZED TO IMPROVE HUMAN SOCIETY AND DEVELOPMENT BUT YOU WONT ACKNOWLEDGE IT BECAUSE YOU ARE JUST ANOTHER SLAVE ON THE PLANTATION! NOW SMOKE THAT SHIT HYPOCRITE!
Cocaine is a helluva drug.
And he was doing so well.....
Fuck em. I'm not payin'.
Top three jobs not to admit to being post collapse:
banker
politician
police
Trouble is...that always seems to come out and heads always seem to end up on posts. It sucks I know but that is humanity. I am glad I am poor, for once having less means living!
Reports: Syria may have shot down drone during Israel attack on military targets near Damascus
What drone? Do you mean that water heater and non descript circuit board?
baskets full of heads. get with it.
Man the Australian $ is really oversold. I really like the R/R on building a long position at these levels.
The 2.5% carry and China did have that good surplus number. The tier 2 Aussie macro a few hours ago was really decent.
I guess the Japs are unloading all their S/T Australian debt to fund the ponzi.
Actually the Germans, Swiss, and Scandinavian central banksters have a proclivity to buy massive amounts of short term Australian debt , and then liquidate it in December to rebalance their FX portfolios.
Yep, the Australian $ is WAY oversold. The carry is expensive on the "short side" relative to the environment. Lot's of JUICY stops to take out on the "buy side".
BEIJING--China's imports of iron ore in November fell 13.4% from a year earlier to 67.4 million metric tons, the General Administration of Customs said Monday.
Imports were down 15.1% on October, it said.
In the 11 months ended Nov. 30, China imported 845.77 million tons of iron ore, up 13.4% from a year earlier, according to the data.
Write to Chuin-Wei Yap at chuin-wei.yap@wsj.com
China started stacking crude.
Passed House Oct 30, 2013.
https://www.govtrack.us/congress/votes/113-2013/h569222 Republicans
70 Democrats
H.R. 992: Swaps Regulatory Improvement Act
Ryan, Paul
King, Pete
Meeks, Gregory
Meng, Grace
Jeffries, Hakeem
Clarke, Yvette
Gibson, Christopher
Reed, Tom
Maffei, Daniel
Maloney, Sean
Collins, Chris
Grimm, Michael
Bachmann, Michele
Rogers, Mike
Hoyer, Steny
Delaney, John
Vargas, Juan
Sanchez, Loretta
Issa, Darrell
Hunter, Duncan
Himes, James
Esty, Elizabeth
Rooney, Thomas
Diaz-Balart, Mario
Wasserman Schultz, Debbie
Wilson, Frederica
Westmoreland, Lynn
Sensenbrenner, James
Forgot Harry Reids State:
Amodei, Mark
Heck, Joseph
Horsford, Steven
and a complete list of Nancy Pelosi' state should be on here:
LaMalfa, Doug
McClintock, Tom
Bera, Ami
Cook, Paul
Denham, Jeff
Valadao, David
Nunes, Devin
McCarthy, Kevin
McKeon, Buck
Sherman, Brad
Miller, Gary
Royce, Ed
Calvert, Ken
Sanchez, Loretta
Rohrabacher, Dana
Issa, Darrell
Hunter, Duncan
Vargas, Juan
Peters, Scott
'
'
'
Get the tar…
Get the feathers…
•?•
V-V
We either have to pay it.......or they threaten to shoot our dogs.
That's what they did during the last meltdown.
We owe some money to some folks. Open up your wallets to FAT CITY and the bank now.
That the derivative problems could explode in the foreseeable future was presented in this article:
Plummeting Oil Prices Could Destroy The Banks That Are Holding Trillions In Commodity DerivativesThat Collapse Blog has also cited the article above republished on Zero Hedge, as well as summarized the situation this way:
"I go to Las Vegas and I place a million dollar bet on who will win the Super Bowl this year. If I am correct, I keep all of the winnings. If I lose, federal law requires you to bail me out and give me the million dollars that I just lost. ... utter insanity. But through their influence in Congress, this is exactly what the big Wall Street banks are attempting to pull off."
Those evil roosians.
Dumping crude to kill the derivatives.
Meanwhile China stacks crude
And gets some value from the american paper.
If you do not have a million dollars I would not let you place the bet. If you lose the bet and fail to pay me you would wind up buried in the desert on a far away planet. As for your leaders the only thing they are good for is pushing an old blind lady in front of a bus.
They win, you lose.
They lose, you pick up the tab.
Its only fair after all, they are G-ds chosen people and you are the goy put on this earth solely to serve them.
Can anyone say "Quadrillion Dollars"
http://theeconomiccollapseblog.com/archives/the-size-of-the-derivatives-...
They've already put us on the hook for propping up Wallstreet with QE and ZIRP. Here we were told derivatives were put together by criminals and now look who we see in bed together....no surprise there. Now it's right in our face. Will the sheeple put two and two together?
When their little bubbles pop and they can't afford cable.
Basically the taxpayer is already funding the takeover by the banks of the nation. What they are indicating is that they need more money to fund military operations. The end is nigh. They are taking money from drugs financial FRAUD foreign governments and everything in the western world to maintain their dominance.
Suckers are broke.
The elites are truly mentally ill.
Radical Marijuana philosophy dictates we need to kill these people but he will never back up his words with actions he will always continue to spout his archaic nonsense! granted thought provoking i read it all the time his little zerohedge mini blogs but getting frustrating as i am hearing alot of repeated bull agian and again! Say it Radical stop Bullshitt!ng we the people need to control the death and murder system which means kill those currently in control of the death and murder systems!
Jim Himes (D-Conn.) is just trying to help the little guy, get littler.
Let's get small.
I'm not small, officer; I'm tall!
Heads you win, Tails you Win more.
Americans, how does it feel to be getting raped, pillaged and plundered simultaneously by the every imaginable form of evil in your country at once?
Are those of you that are awake numb to the pain yet?
Let me bring some light from the darkness. Again, it is veteran's to the rescue. And again this is why the traitors that fill you country fear, attack and revile them constantly because they are the most likely to stand up, organize and succeed in stopping everything that is going wrong
https://www.youtube.com/watch?v=X-auGSmiVJ4
Perhaps everyone should start a "shit-in" at their local branch office of the banksters.
http://www.breitbart.com/Breitbart-London/2014/07/01/Man-poops-in-Barcla....
You didn't build that business comment from emperor Obola makes perfect sense now as the justification for socializing losses.
If you didn't build it, you are not responsible for it. Therefore will all get to pay for it.
You didn't build that. We will confiscate that.
Jokes on them. There is no money
'Taxpayer' = Legislatively defined term. The people = creators of government. Not the same.
My as well hand my dog a bill for $5.00. He can't pay it.
These desparate clows will try anything.
I'm still waiting for a cop to get shot so our fuckhead overlord can try and bring in the new UN rules and enforce them on us. That's when shit gets interested. If they do it, and it is illegal which it will be, what are you going to do about it if they do it anyway? In my mind that's the day i've declared an enemy. Of course I already am in their minds probably lol. Another one of those peons that talk out about the criminals.
CNBC should run one minute at least each day for a month on this Fraud.
- Investors can't invest if they have to bail out banks
- Stock Holders & Bond Holders & Property Holders maybe forced to Liquidate to some degree
- Government should not want this Crisis to come up at Election time
- Crazy Insane, Schizophrenic, Suicidal Strategy, unless your are wealthy and planning to move to a new Economy, hint to Politicians, Lawyers, bankers, Parents