I guess once again it's time to violate free market principles to save the free market. /sarc


New Law Would Make Taxpayers Potentially Liable For TRILLIONS In Derivatives Losses
By Michael Snyder, on December 7th, 2014

If the quadrillion dollar derivatives bubble implodes, who should be stuck with the bill? Well, if the “too big to fail” banks have their way it will be you and I. Right now, lobbyists for the big Wall Street banks are pushing really hard to include an extremely insidious provision in a bill that would keep the federal government funded past the upcoming December 11th deadline. This provision would allow these big banks to trade derivatives through subsidiaries that are federally insured by the FDIC. What this would mean is that the big banks would be able to continue their incredibly reckless derivatives trading without having to worry about the downside. If they win on their bets, the big banks would keep all of the profits. If they lose on their bets, the federal government would come in and bail them out using taxpayer money. In other words, it would essentially be a “heads I win, tails you lose” proposition.

Just imagine the following scenario. I go to Las Vegas and I place a million dollar bet on who will win the Super Bowl this year. If I am correct, I keep all of the winnings. If I lose, federal law requires you to bail me out and give me the million dollars that I just lost.

Does that sound fair?

Of course not! In fact, it is utter insanity. But through their influence in Congress, this is exactly what the big Wall Street banks are attempting to pull off. And according to the Huffington Post, there is a very good chance that this provision will be in the final bill that will soon be voted on…

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According to multiple Democratic sources, banks are pushing hard to include the controversial provision in funding legislation that would keep the government operating after Dec. 11. Top negotiators in the House are taking the derivatives provision seriously, and may include it in the final bill, the sources said.

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More and Links:
http://theeconomiccollapseblog.com/archi...ivatives-losses

Quote: FWP wrote in post #2

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Quote: algernonpj wrote in post #1

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According to multiple Democratic sources, banks are pushing hard to include the controversial provision in funding legislation that would keep the government operating after Dec. 11. Top negotiators in the House are taking the derivatives provision seriously, and may include it in the final bill, the sources said.

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Rome is burning and there are NO FIREMEN !!

Only thieves and liars throwing lit Cigars into the rubble !!

Oh, the corruptionis so THICK .......

W

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I find it scary the perpetrators don't even try to hide it any more. They know no one will stop them and there will be no consequences for their actions.

Quote: Sanguine wrote in post #5

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So, in essence, nationalizing banks?

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Quote: FWP wrote in post #8

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It is really pretty simple, the way its been operating for quite some time:
- the big banks (which are almost all that is left at this point) gamble on all kinds of wild schemes including the full gamut of derivatives,
-- if their bets pay off, they keep all of the gains
-- if their bets fail and they incur huge losses, the taxpayers make them whole again (they've socialized the losses!!)

f

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