Russian Roulette: Taxpayers Could Be on the Hook for Trillions in Oil Derivatives
By Ellen Brown
http://www.opednews.com/articles/1/Russian-Roulette--Taxpaye-by-Ellen-Brown-Bailout_Citigroup_Glass-Steagall_Oil-Crisis-Global-Disruption-141220-894.html
The sudden dramatic collapse in the price of oil appears to be an act of geopolitical warfare against Russia. The result could be trillions of dollars in oil derivative losses; and the FDIC could be liable, following repeal of key portions of the Dodd-Frank Act last weekend.
Senator Elizabeth Warren charged Citigroup last week with "holding government funding hostage to ram through its government bailout provision." At issue was a section in the omnibus budget bill repealing the Lincoln Amendment to the Dodd-Frank Act, which protected depositor funds by requiring the largest banks to push out a portion of their derivatives business into non-FDIC-insured subsidiaries.
Warren and Representative Maxine Waters came close to killing the spending bill because of this provision. But the tide turned, according to Waters, when not only Jamie Dimon, CEO of JPMorgan Chase, but President Obama himself lobbied lawmakers to vote for the bill.
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Whatever happened behind closed doors, we the people could again be stuck with the tab. We will continue to be at the mercy of the biggest banks until depository banking is separated from speculative investment banking. Reinstating the Glass-Steagall Act is supported not only by Elizabeth Warren and others on the left but by prominent voices such as David Stockman's on the right.
Another alternative for protecting our funds from Wall Street gambling can be done at the local level. Our state and local governments can establish publicly-owned banks; and our monies, public and private, can be moved into them.
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Worth reading the three pages in between the snippets to get a better understanding of the screwing we are receiving. Also so interesting comments.
http://www.opednews.com/articles/1/Russian-Roulette--Taxpaye-by-Ellen-Brown-Bailout_Citigroup_Glass-Steagall_Oil-Crisis-Global-Disruption-141220-894.html
