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President Obama and Congress Just Gave Your Savings Account to JPMorgan
Posted on Dec 14, 2014
With the passage of the 2015 federal budget bill, JPMorgan CEO Jamie Dimon got lawmakers to repeal a key part of the 2010 Dodd-Frank financial reform law and allow banks to use the savings accounts of ordinary Americans to gamble in the stock market on behalf of hedge funds, corporations and the rich.
A former senior Treasury official in the Obama administration told The Washington Post that the law restores the ability of banks to use the same practices that helped bring down the global economy in 2008. “This was the epicenter of the crisis,” the official said. “This is what brought AIG down, what brought Lehman Brothers down.”
By a vote of 56 to 40 on Saturday, the Senate passed the $1.1 trillion bill to fund the federal government through September 2015. The chamber’s Democrats let the Wall Street provision remain apparently to postpone until March a battle with Republicans over President Obama’s immigration reform. Six Senate Democrats—Elizabeth Warren, Sherrod Brown, Al Franken, Joe Manchin, Claire McCaskill and Vermont independent Bernie Sanders—opposed the final version of the bill by voting against the motion that ended debate on it. A total of 22 Democrats were against the final form. Warren called the Wall Street provision an “unprecedented grip over economic policymaking.”
President Obama, who told Bloomberg News during a 2010 interview about the justness of the $17 million bonus Dimon received that year and that he knew Dimon and regarded him as a “savvy” businessman, backed the bill. Obama and Sen. Harry Reid said that the compromise legislation was the best Democrats were able to get before Republicans assume control of the Senate in January.
Before the bill was approved Saturday, Guardian U.S. finance and economics editor Heidi Moore explained what the Wall Street provision would do for the financial industry and against the public:
Moore then cited criticism of the legislation by prominent D.C. lawmakers:
Read more of Moore’s explanation of Dimon’s clause here.
—Posted by Alexander Reed Kelly.
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