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This is What Happens When Banks Aren't Held Accountable

They feel it's perfectly ok to go back to doing the very thing that collapsed the economy in 2008 and want you to apologize for trying to make it harder for them to do it. And why not? Clearly, there are no consequences. Even children know if there aren't any consequences, they don't need to worry about changing their behavior.

Congress has agreed to use federal deposit insurance, which was designed to protect the savings accounts of consumers, to cover risky trading by the nation's biggest banks.

In a small provision in the budget bill, Congress agreed to allow banks to house their trading of swaps and derivatives alongside customer deposits, which are insured by the federal government against losses.

The budget move repeals a portion of the Dodd-Frank financial reform act and, some say, lays the groundwork for future bailouts of banks who make irresponsibly risky trades.


By min | December 11, 2014, 9:15 AM | Liberal Outrage


Forgive me as I'm not really clued up on US politics but does this mean that the average guy is paying out of their own pocket if the banks mess up? Sounds like what happened in the UK where we had to bail them out. Really? Might as well just let them do whatever they want.

Yeah, it basically leaves taxpayers on the hook if risky credit swaps don't pan out for banks, which is exactly what happened in 2008. Matthew Yglesias has a good explainer on this.

Cheers for that. I'll have a look at the article