For all the anger among progressives about a Wall Street bailout
provision that made its way into the just-passed $1.1 trillion
government spending bill, there's been little attention on the person
who put it in there.
Meet Congressman Kevin Yoder (R-Kansas).
Yoder, a second-term congressman whose largest contributors are in the finance industry, introduced the provision last summer. It was literally written by Citigroup executives, but Yoder took their language and rolled it into an amendment to a spending bill in a House subcommittee meeting. It got swept into the year-end spending package because it "was within the scope of negotiations" on it, according to an Appropriations Committee aide.
The provision, which prompted a fiery speech by Sen. Elizabeth Warren (D-Mass.), undoes a rule that prevents big banks from relying on the Federal Deposit Insurance Corp. to bail them out if things go sour when they trade risky assets. The rule was put into place as part of the 2010 Dodd-Frank law, which overhauled the financial regulatory system after the 2007-2008 financial crisis stemming from banks making extremely risky bets and losing. The government had to bail them out with taxpayer money, and Yoder's provision paves the way for another possible bailout.
http://www.huffingtonpost.com/2014/12/15/kevin-yoder-wall-street-bailout_n_6329784.html?ncid=txtlnkusaolp00000592
Meet Congressman Kevin Yoder (R-Kansas).
Yoder, a second-term congressman whose largest contributors are in the finance industry, introduced the provision last summer. It was literally written by Citigroup executives, but Yoder took their language and rolled it into an amendment to a spending bill in a House subcommittee meeting. It got swept into the year-end spending package because it "was within the scope of negotiations" on it, according to an Appropriations Committee aide.
The provision, which prompted a fiery speech by Sen. Elizabeth Warren (D-Mass.), undoes a rule that prevents big banks from relying on the Federal Deposit Insurance Corp. to bail them out if things go sour when they trade risky assets. The rule was put into place as part of the 2010 Dodd-Frank law, which overhauled the financial regulatory system after the 2007-2008 financial crisis stemming from banks making extremely risky bets and losing. The government had to bail them out with taxpayer money, and Yoder's provision paves the way for another possible bailout.
http://www.huffingtonpost.com/2014/12/15/kevin-yoder-wall-street-bailout_n_6329784.html?ncid=txtlnkusaolp00000592
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