For Immediate Release
Dec 10, 2015
Contact: Alexis Goldstein, [email protected]
OTHER98.COM CALLS ON CONGRESS TO CUT CITIGROUP OUT OF CROMNIBUS
Congressional leaders have included in the year-end spending bill language that repeals a key part of financial reform: the “Swaps Pushout” provision of Dodd-Frank. As was revealed last year by the NY Times, this language was largely drafted by Citigroup.
Including language from a bill Citigroup wrote in the year-end spending bill is a bitter betrayal of the American public, as Citigroup received more taxpayer and government assistance than any other bank.
Worse still, repealing “Swaps Pushout” puts the entire financial system at risk, all in the name of ensuring profits stay high for Citigroup and other Wall Street banks. The “Swaps Pushout” provision is a common-sense reform that insists the riskiest derivatives must be held in a separately-capitalized entity, not in a bank’s FDIC-insured accounts. Wall Street has pushed for a rollback of this measure because keeping derivatives in FDIC accounts saves them money: creditors charge lower interest, as FDIC accounts are seen as having the backing of the federal government.
We must not allow Wall Street, who created such vast economic devastation, to continue their risky behavior on the back of the American taxpayer.
We at Other98.com call on all members of Congress to demand that the repeal of “Swaps pushout” be removed from the year-end spending bill. If it is not, members must reject the bill. To do any less would be choosing to side with Wall Street against Main Street.