Thursday, June 30, 2016

Senator Warren's derivatives proposal

Following are her FB comments on making banks responsible for their speculative derivatives via a new Bill, the Derivatives Oversight and Taxpayer Protection Act. Of course the Republicans and the corporate Democrats will vote it down. I'll provide the actual vote when it comes out so you can see exactly which representatives side with the crooks or with the people. Warren:

"Remember AIG? The big insurance company that sucked down billions in taxpayer bailouts during the 2008 financial crisis? AIG got in trouble thanks to derivatives – complicated products that allowed it take massive risks and spread that risk across the financial system. And AIG wasn’t alone – the Financial Crisis Inquiry Commission found that derivatives losses at big banks and other financial firms were at the heart of the crisis. It’s no wonder Warren Buffett called derivatives 'financial weapons of mass destruction.'

"Dodd-Frank tried to rein in the derivatives markets, but thanks in part to Republican obstruction in Congress and weak rules from federal regulators, much more needs to be done. That’s why I partnered with Senator Mark Warner and Representative Elijah E. Cummings today to introduce the Derivatives Oversight and Taxpayer Protection Act. Our bill will strengthen federal oversight of the multi-trillion dollar derivatives market and help ensure that big financial firms – not taxpayers – are on the hook for derivatives losses. Republicans and their allies on Wall Street may be just fine with big financial firms raking in billions when things go well and running back with their hands out when things come crashing down, but Democrats are standing together to make sure that can never happen again."

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