House Republicans have pushed through a 1,600 page, $1.1 trillion dollar government spending bill containing a Citibank shepherded provision that puts the Federal Deposit Corporation on the hook for financial derivatives losses.
House Republican leader John Boehner: Bailout provision will not hurt Americans.
It passed late Thursday by a 219-206 vote.
Republicans who opposed the bill did so because it failed to block Obama’s executive actions on immigration. House Democrats opposed the banking provisions and the easing of restrictions on contributions by big donors.
Obama disciplined wavering Democrats and instructed them to vote for the legislation. The bill now moves to a Democrat controlled Senate where it is expected to pass.
The provision was so important to the profits at (nation’s biggest banks) that J.P.Morgan’s chief executive Jamie Dimon himself telephoned individual lawmakers to urge them to vote for it, according to a person familiar with the effort.
“At least we now know with certainty that to a clear majority in Congress – one consisting of republicans and democrats – the future viability of Wall Street is far more important than the well-being of their constituents,” Zero Hedge writes this morning.
Which also, implicitly, was made clear when Hank Paulson was waving a three-page “blank check” term sheet, and when Congress voted through the biggest bailout of banks in US history back in 2008.
The only question is when the next multi-trillion (or perhaps quadrillion now that all global central banks are all in?) bailout takes place.