Must read...Congress is out of control. Did we not learn anything from the financial collapse of 2008? Heard about the Swaps Regulatory Improvement Act (H.R.992 - 113th Congress)? by anderden Nov 01, 2013 6:55pm PDT This “regulatory improvement act”, introduced by the current Representative for Illinois’ 14th District, is actually nothing less than the gutting of Section 716 of the Dodd-Frank financial reform bill. Dodd-Frank, you will recall, was passed back in 2010 in the wake of the near collapse of the Nation’s financial system that began in 2008 and triggered the recession from which we are still slowly recovering. Here’s how the “improvement act” would work… Under Dodd-Frank rules, banks are barred from using Federal Deposit Insurance Corporation (FDIC)-insured funds (that means funds insured by you, the average American depositor and taxpayer) to engage in the trading of certain types of high-risk derivatives (“swaps” are a type of derivative). Remember derivatives, the risky financial instruments that were largely responsible for bringing down Countrywide Mortgages, Bear Stearns, AIG, Lehman Brothers, Washington Mutual, Wachovia and very nearly the Nation’s entire financial system? Well, big banks want your guarantee that you’ll help them out if their investments head south once again In short, this bill socializes risk (we all pay for their gambles if they fail) and privatizes profit (they gain a whole lot with very little risk because of your guarantee). Who wouldn’t head to the casino if they knew that the folks back home would reimburse them for any losses should their evening turn out badly? Look it up and call your Reps.
Posted on: Fri, 08 Nov 2013 11:43:08 +0000
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