““Now, the House of Representatives is about to show us the worst of government for the rich and powerful,” she said. “The House is about to vote on a budget deal, a deal negotiated behind closed doors that slips in a provision that would let derivatives traders on Wall Street gamble with taxpayer money and get bailed out by the government when their risky bets threaten to blow up our financial system.… This provision is all about goosing the profits of the big banks.””
As much as I despise her, I agree with her on this. The idea that banks’ gambling stash (derivatives) would be insured by the FDIC is asinine.
This is from the Washington Post...
“In a deal sought by Republicans, the bill would reverse Dodd-Frank requirements that banks “push out” some of derivatives trading into separate entities not backed by the Federal Deposit Insurance Corporations. Ever since being enacted, banks have been pushing to reverse the change. Now, the rules would go back to the way they used to be.”
One of Warren’s problems is that she is so high up in the Ivory Tower that she babbles financial gobbledook that sounds like ancient Greek to the average American down here in the trenches trying to make a living.