Friday, December 12, 2014

Answer: Wall Street


Last night's vote in the House of Representatives on the so-called "cromnibus" -- for continuing resolution and omnibus appropriation bill -- was ostensibly to keep the government running beyond midnight.  But it represented all that is foul about our political system that is awash in special interest money and influence.  One of the provisions attached to the bill was pushed by the banking and finance industry, and it demolishes a key regulatory reform relating to banks using taxpayer money to make risky financial deals known as "swaps."  It was one of the provisions of the Dodd-Frank legislation that passed after the Wall Street meltdown in 2008, and which infuriated the high rollers on Wall Street.

Sadly, enough Democrats -- at the urging of the White House -- joined eager Republicans to pass the legislation with the big favor to the investment banks.  JPMorgan CEO Jaime Dimon personally lobbied House members to vote for the "cromnibus" with the gift to his industry included.  Many Dems were furious at the White House and other Dems for what Sen. Elizabeth Warren called "a vote for future taxpayer bailouts of Wall Street."  House Minority Leader Nancy Pelosi added that she was "enormously disappointed" at the White House's decision not to fight the bankers' power play.  As Sen. Warren asked of her colleagues on the floor of the Senate this week, "Who do you work for—Wall Street or the American people?"  We have the answer.

BONUS:  Andy Borowitz frames it perfectly: "Citigroup To Move Headquarters to U.S. Capitol Building."