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aggiesal

(8,864 posts)
Sat Mar 29, 2014, 07:50 PM Mar 2014

Senate banking bill has clause for taxpayer to be responsible for any and all bailouts

The Economic Scam of the Century
by MIKE WHITNEY

The leaders of the U.S. Senate Banking Committee, Sen. Tim Johnson (D., S.D.) and Sen. Mike Crapo (R., Idaho), released a draft bill on Sunday that would provide explicit government guarantees on mortgage-backed securities (MBS) generated by privately-owned banks and financial institutions. ...

...
“Sec.305. Authority to protect taxpayers in unusual and exigent market conditions….

If the Corporation, the Chairman of the Federal Reserve Board of Governors and the Secretary of the Treasury, in consultation with the Secretary of Housing and Urban Development, determine that unusual and exigent circumstances threaten mortgage credit availability within the U.S. housing market, FMIC may provide insurance on covered securities that do not meet the requirements under section 302 including those for first loss position of private market holders.” (“Freddie And Fannie Reform – The Monster Has Arrived”, Zero Hedge)

[Font color=Red]In other words, if the bill passes, US taxpayers will be responsible for any and all bailouts deemed necessary by the regulators mentioned above.[/font] And, since all of those regulators are in Wall Street’s hip-pocket, there’s no question what they’ll do when the time comes. They’ll bailout they’re fatcat buddies and dump the losses on John Q. Public.

...

http://www.counterpunch.org/2014/03/26/the-economic-scam-of-the-century/

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Senate banking bill has clause for taxpayer to be responsible for any and all bailouts (Original Post) aggiesal Mar 2014 OP
I think the section heading is a particularly nice touch. Erich Bloodaxe BSN Mar 2014 #1
I think it missed the last sentence of Sec. 305 frazzled Mar 2014 #2
Ignore that. n/t ProSense Mar 2014 #9
Apparently, that's precisely what many are doing frazzled Mar 2014 #14
This message was self-deleted by its author Marr Mar 2014 #3
"The Economic Scam of the Century" 2banon Mar 2014 #4
This was in the Economy Group earlier in the week Doctor_J Mar 2014 #5
K&R! octoberlib Mar 2014 #6
A Democratically-controlled Senate won't pass this will they? Scuba Mar 2014 #7
Yeah, we'll all be "haters" again mindwalker_i Mar 2014 #8
Racist ass, LIBERTARIAN, Putinista, blame America first crowd loving, firebagger! TheKentuckian Mar 2014 #12
Ack! mindwalker_i Mar 2014 #15
Well, a "Democratically-controlled Senate" ProSense Mar 2014 #10
I sincerely doubt... sendero Mar 2014 #11
Dodd-Frank prohibits bailouts ProSense Mar 2014 #13

Erich Bloodaxe BSN

(14,733 posts)
1. I think the section heading is a particularly nice touch.
Sat Mar 29, 2014, 07:58 PM
Mar 2014

"authority to protect taxpayers...'

Yup, I'm always 'protected' by having my tax money funneled into private sector pockets.

frazzled

(18,402 posts)
14. Apparently, that's precisely what many are doing
Sat Mar 29, 2014, 10:42 PM
Mar 2014

Why am I not surprised? I'm truly (madly, deeply) ready to give up.

Response to aggiesal (Original post)

 

2banon

(7,321 posts)
4. "The Economic Scam of the Century"
Sat Mar 29, 2014, 08:47 PM
Mar 2014



In other words, if the bill passes, US taxpayers will be responsible for any and all bailouts deemed necessary by the regulators mentioned above. And, since all of those regulators are in Wall Street’s hip-pocket, there’s no question what they’ll do when the time comes. They’ll bailout they’re fatcat buddies and dump the losses on John Q. Public.






 

Scuba

(53,475 posts)
7. A Democratically-controlled Senate won't pass this will they?
Sat Mar 29, 2014, 09:17 PM
Mar 2014

A Democratic President won't sign it, will he?

If they do, and he does, will criticism here be received as racist, hating or Republican-enabling?

mindwalker_i

(4,407 posts)
8. Yeah, we'll all be "haters" again
Sat Mar 29, 2014, 09:47 PM
Mar 2014

Who the fuck came up with this bill and why shouldn't they be kicked in the nuts for it?

TheKentuckian

(24,943 posts)
12. Racist ass, LIBERTARIAN, Putinista, blame America first crowd loving, firebagger!
Sat Mar 29, 2014, 10:05 PM
Mar 2014

You are fighting for the Republicans to win and hurting turnout, if you would just be quiet and let the adults in the room take care of the stakeholders who in turn will create our jobs of tomorrow, don't you know.

We have to make the TeaPubliKlan aims reality so they don't.

Big Tent!

Obstruction!

BENGHAZI!

Doing the best they can.

Pony!

FUD!

ODS!

You want the Republicans to win!

Boxes in the garage!

Holy pole dancing girlfriends left in the lurch, Batman!

Did I miss anything critical, I wouldn't want to leave out an important piece of the nonsense collage of talking a lot and saying nothing.

ProSense

(116,464 posts)
10. Well, a "Democratically-controlled Senate"
Sat Mar 29, 2014, 09:54 PM
Mar 2014

"If they do, and he does, will criticism here be received as racist, hating or Republican-enabling?"

...passed cuts to food stamps. Isn't Elizabeth Warren on the Banking Committee?

sendero

(28,552 posts)
11. I sincerely doubt...
Sat Mar 29, 2014, 10:01 PM
Mar 2014

.. that, as a practical matter, anything would actually change with the passage of this bill.

Translated: the taxpayer is already on the hook.

ProSense

(116,464 posts)
13. Dodd-Frank prohibits bailouts
Sat Mar 29, 2014, 10:13 PM
Mar 2014

So if the OP characterization of the bill is accurate, it would be reversing Dodd-Frank.

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