Taxpayers now on the hook for another bank bailout-to the tune of 300 TRILLION

[thegente]

While everone was busy fearing death from ebola, squabbling over Ferguson, ISIS, or any number of media distractions, Americans were yet again sold down the river....

 

 

 

 

http://www.zerohedge.com/news/2014-12-12/presenting-303-trillion-derivatives-us-taxpayers-are-now-hook

 

 

Presenting The $303 Trillion In Derivatives That US Taxpayers Are Now On The Hook For

 12/12/2014 07:52 -0500


 

 

 

inShare82

 

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:

 

 

 

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. 

We say explicitly, of course, because taxpayers have always been on the hook implicitly for the next Wall Street meltdown.

Why?

Exhibit A: US banks are the proud owners of $303 trillion in derivatives (and spare us the whole "but.. but... net exposure" cluelessness - read here why that is absolutely irrelevant when even one counterpaty fails):

 

Exhibit B: Here are the four banks that are in complete control of the US "republic."

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. 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.

Source: OCC

 

MORE:

 

 

 

 

http://libertyblitzkrieg.com/2014/12/05/wall-street-moves-to-put-taxpayers-on-the-hook-for-derivatives-trades/

 

 

Wall Street Moves to Put Taxpayers on the Hook for Derivatives Trades

Michael Krieger | Posted Friday Dec 5, 2014 at 3:43 pm

Wall Street has for some time attempted to put taxpayers on the hook for its derivatives trades. I highlighted this a year ago in the post: Citigroup Written Legislation Moves Through the House of Representatives. Here’s an excerpt:

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:

 

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. The last time Mr. Himes made an appearance on these pages was in March 2013 in my piece: 

Congress Moves to DEREGULATE Wall Street.

 

Fortunately, that bill never made it to a vote on the Senate floor, but now Wall Street is trying to sneak it into a bill needed to keep the government running. You can’t make this stuff up. From the Huffington Post:

WASHINGTON —

Wall Street lobbyists are trying to secure taxpayer backing for many derivatives trades as part of budget talks to avert a government shutdown.

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.

The bank perks are not a traditional budget item.

They would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. — potentially putting taxpayers on the hook for losses caused by the risky contracts.

Big Wall Street banks had typically traded derivatives from these FDIC-backed units, but the 2010 Dodd-Frank financial reform law required them to move many of the transactions to other subsidiaries that are not insured by taxpayers.

Last year, Rep. Jim Himes (D-Conn.) introduced the same provision under debate in the current budget talks. The legislative text was 

written by a Citigroup lobbyist

, according to The New York Times. The bill 

passed

 the House by a vote of 292 to 122 in October 2013, 122 Democrats opposed, and 70 in favor. All but three House Republicans supported the bill.

It wasn’t clear whether the derivatives perk will survive negotiations in the House, or if the Senate will include it in its version of the bill. With Democrats voting nearly 2-to-1 against the bill in the House, Senate Majority Leader Harry Reid (D-Nev.) never brought the bill up for a vote in the Senate.

Remember what Wall Street wants, Wall Street gets. Have a great weekend chumps.

[Maggie123]

Yep...That about sums it up...Thank You Gente.

 

Now just get that PTT pushed through in January...then the Banksters and  the Corps will have everything they have always wanted tied up in a pretty big red bow....we are in for some real @^%** fun times. (pardon the language)

[DWitte]

Is there really even 300 trillion dollars in the whole world??  I seriously doubt it.  But then again, I can't understand one bit of this article.  I'm gonna go pack up and go stay at Holiday Express tonight and re-read this article tomorrow.  Maybe then it will make more sense but I doubt it.  Maybe I need to stay for a few nights or even a week or two.  Hell,  I think I'll go to Vegas.  The RV should hit before the debts do right?  Christmas?  New years?  On second thought, after ten years in this I think I'll stay home, save my money and let everyone think I really don't know anything.  At least that will be true. 

 

I would like to know how many people who read this article really understood it and who didn't.  And can someone enlighten me please?  Thanks.

[thegente]

No Dwitte, there's not 300 trillion dollars, it's all 1's and zeroes in computers, and it's part of the financial pozi scam keeping everyone in debt slavery. The entire financial system is leveraged at least 30 to one for real assets to paper....read up on Derivatives market, and banks overleveraged, and it Will start to make sense. Basically this all started when Clinto repealed the Glass-Stegal act in 98, which allowed the banks to go crazy with their assets and gamble them in stocks and other financial instruments, which ended up with rh meltdown of 2008, and the following bank bailouts. The govt is enabling Wall St. to reap the highs when the market is up, and the taxpayers to pay for it when they lose....

[Hooter]

I don't even think the dollar amount matters. If the government needs more money, it just comes up with more money. It's all just a game and we are the pawns. If someone screws up, we will vote for someone else to fix it, but nothing ever changes. Meanwhile as thegente says, we all continue in debt slavery.

Just think how many people in America are starting to wish for higher oil prices in order to not hurt the economy. Another couple months of the propaganda machine and we'll be begging to help the banks recover from their massive oil derivative losses. Good thing it's just funny money.

[thegente]

Good comment Hooter, it IS all funny money, and it's not really The American public's debt, but the US corporation's...and once the Fed does implode (and it will, al ponzis eventually do) this will force the USA to print asset backed currency, which will stop the free money party on Wall St, and end the perpetual MIC endless wat-for-profit nonsense...until the corporation goes bankrupt we are stuck though. Lots of other countries are dumping the dollar which should hasten the Feds demise..another reason for all the war rhetoric with Russia, they've pretty much dumped the dollar, and we all know what happens to countries that don't tow the central banker-Fed-USD line...

Sorry, the auto complete on my phone is a pain in the butt...I meant war-for-profit...

[DWitte]

If I started reading up on the derivatives market right now I'm sure it would change before I would understand it.  My expertise is in another field.  My interest is more in where some people's facts come from.  I'm not questioning you "thegente", but I would like to hear more from you.  Actually, that's not a very good way to put that.  Apologies.  Your theories are sound as I have researched them somewhat.  Where do your numbers come from?  30 to 1. 

 

Why don't we as taxpayers just storm Wall Street and delete the one's and zero's from their computers and then we won't have to come up with the money to delete them?   Then the Wall Street people can do without for awhile like we have been.  If I'm not "Too big to fail" neither are they.  Maybe one of them would like to come and live in my 5th wheel with me.  Ok by me.  I only lost a million.  Shouldn't be a big deal to any of them.

Edited December 13, 2014 by DWitte

[thegente]

Hi Dwitte, and some people did try to storm Wall St, and the press made them look like criminals and got Main St. on Wall Street's side. Anyway, I'm in a bit of a rush, but the derivatives market won't change anytime soon, so read up on it, and just google "banks leveraged at 30 to 1", there is a wealth of information out there, and it's stuff you won't hear on CNBC, Bloomberg or Moneyline. MSM is complicit in the ponzi scam. Zerohedge.com is an excellent source of what's REALLY happening with the financial system, and they are usually pretty reliable. Just take your time and read up, education and knowledge are the best weapons, and the more that know what's really going on will wake up pissed off, and someday we may have enough folks to say something about it. Have a good weekend, I gotta hit the bricks!

[dog53]

yep they will just print more if they need it. 

Eventually it will be worth as much as the Iraq rolling papers we all hold right now. 

Just like Iraq it will be $500 a pound for a Lb of hamburg. 

[flatdawg]

..another reason for all the war rhetoric with Russia, they've pretty much dumped the dollar, and we all know what happens to countries that don't tow the central banker-Fed-USD line...Sorry, the auto complete on my phone is a pain in the butt...I meant war-for-profit...

I believe the BRICS bank come online in 2015.

WW 3 shortly after that.

yep they will just print more if they need it. 

Eventually it will be worth as much as the Iraq rolling papers we all hold right now. 

Just like Iraq it will be $500 a pound for a Lb of hamburg.

I've found the 25k note too big to roll with, but the 5k note works very nicely.