Taxpayers on hook for banks 303 trillion dollars of derivatives

Strange isn’t it. Barely a word out of the media as to the atrocities that are being committed by this ludicrous budget bill just passed. Even Fox news has chosen to ignore any exploration as to how much we have been hosed. Drudge for some reason is more concerned with Sony. I jumped up and down about millions of current retirees at risk for losing their pensions. Congress’ backroom pension-cutting deal is even worse than expected

How would you feel about losing your Social Security? So lets look at this little number. Here we go:

Courtesy of the Cronybus(sic) last-minute passage, government was provided a quid-pro-quo $1.1 trillion spending allowance with Wall Street’s blessing in exchange for assuring banks that taxpayers would be on the hook for yet another bailout, as a result of the swaps push-out provision, after incorporating explicit Citigroup language that allows financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp,explicitly putting taxpayers on the hook for losses caused by these contracts. Recall:

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:  Click on image to enlarge:

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.

More plus graphs over at Zero Hedge

Filed under: Government Tagged: Budget, Cromnibus, derivatives, Hedge funds, Omnibus, Wall Street