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Wall Street’s Big Boys Bulldoze Through the Spending Bill They Want

6 | By Shah Gilani

We’ve got a spending bill, folks!

The government of the United States will remain open for business thanks to the usual suspects in Congress being open to being bought.

Sometimes it only takes a few phone calls from a deep-pocketed giant bank CEO to remind legislators who butters their bread.

According to Sunday’s Financial Times, bread-butterer par excellence Jamie Dimon, chairman and CEO of mega-fat JPMorgan Chase & Co. (NYSE: JPM), worked the phones hard last week. He called on his legion of congressional peeps and perps to pass the $1.1 trillion spending bill as written.

Why did this patriot risk getting calluses on his fingertips for some pipsqueak legislation?

Read on and I’ll tell you what I think – and I’ll show you what it means for all of us going forward…

Dialing for Dollars

Dimon desperately wanted the spending bill passed as written because its language was music to his ears. After all, JPMorgan’s partner in crime, Citigroup Inc. (NYSE: C), had written some mutually self-serving, screw-the-public language into the spending bill.

In the most important bill, coming at the most important time, before a recess, Citigroup and its lobbyists wrote a little provision into the bill that reversed new rules that the Dodd-Frank financial reform legislation passed in 2010 called for.

It’s not important anyway. It was just a stupid rule that should have been reversed.

I mean, how idiotic is it that Congress passed a law to make giant banks trade their IEDs (improvised explosive derivatives) in separate entities that were not guaranteed by the FDIC (an acronym that means “taxpayers”)?

Oh, the humanity! Imagine poor buttermilk banks not being able to skim off profits on leveraged derivatives trades on their own. That’s crazy.

If they had to do it on their own, they’d have to raise tons of capital. And that, of course, would impact their profitability.

So, I’m all for holiday gifts to the likes of JPMorgan and Citi. Thanks to the spending bill being passed as written, they can continue using depositor funds to leverage themselves up and swing for the fences.

Happy holidays!

And who thought a few phone calls to Congress would fall on deaf ears?

Maybe next time we all should call ourselves.

6 Responses to Wall Street’s Big Boys Bulldoze Through the Spending Bill They Want

  1. ALAN STEINBRONN says:

    Shah Galani whacks another nail square on its head –

    ”Sometimes it only takes a few phone calls from a deep-pocketed giant bank CEO to remind legislators who butters their bread.”

    That statement says it ALL, folks.

    But I truly doubt that ANY one in US Congress needed ”reminding”.

    As for Shah Gilani’s last statement –

    ”Maybe next time we all should call ourselves.”

    I’m sure that most readers of Financial & Business publications such as ‘Wall Street Insights and Indictments’ know full well the ‘herd’ will NEVER be ‘heard’ by those in CHARGE. No, they are only ‘directed’ and ‘led’ to where they will go next.

    So, I may be wrong but, I think Shah Gilani was being flat out facetious with his statement of The Herd.

  2. oldscot says:

    Wasn’t there another time when governments and corporations joined hands to rule a few nations? Didn’t millions of people, including some of our own, die as a result? What was that system called? That’s OK, it can’t happen here. Right!

  3. John Rose says:

    I would appreciate any comments from someone who may know what’s really going on and not looking to just spread more rumors I have seen reports saying the big banks have lent HUNDREDS OF BILLIONS of dollars to companies involved in fracking, and furthermore that these new oil and gas drilling operations are expensive and unprofitable if the price of oil falls below $70-90 a barrel. I assume, therefore, that many of these companies will be unable to repay their loans; many may even go bankrupt. Does anybody know if the banking provisions in the new spending bill is designed to ensure taxpayers wind up bailing the banks out? Thank you.

  4. H. Craig Bradley says:

    Congressional “Smorgy”

    My late father used to call this kind of pork-filled legislation ” All You Can Eat “, but I see it a little differently. I call it a bipartisan Congressional and Senate “Smorgy”. You say ????

    The Bill is yet another feast for special interests and actually reveals who is running the show. ( Hint: Its not the Republicans). Think of it all as one big end-of-year smorgasbord ( Office Party ) AND an Orgy after-hours ( Love in the Workplace ). Smorgasbord + Orgy = Smorgy. Don’t you love it ?

  5. Sailor Jo says:

    Shah, you clearly point why I start hating the US, not her people.
    Sure the country was founded on unfettered capitalism. No one should say the “founding fathers” started the independence movement out of idealism. It was about money all the way.
    Congress is a snake pit. Poisonous snakes that is. They make laws all the time to please their real employers to the detriment of the regular folks.
    At this time I try to have the US government to correct a document that they screwed up. Since 6 months I am not getting anywhere. No phone numbers, no answers to mail before 4 weeks, plain waiting tactics to see if I give up. My giving up will be turning the back on part of the family and going home to a democratic place. I know, nobody cares except some family members and may be the IRS.

  6. John says:

    Our system has broken down completely. Why do they rip us? Because they can. The average American has no clue, and does not care. They will.

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