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December 12, 2014

Congress Avoids Shutdown with Controversial Spending Bill Gutting Financial Reform 
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Congress has avoided a government shutdown with last-minute passage of a
spending bill before Thursday's midnight deadline. The $1.1 trillion
measure had come under threat after Democrats voiced outrage over
last-minute pro-corporate measures. One key provision will repeal a
major rule in the Dodd-Frank financial reform bill that limits risky
trades by federally insured banks. Speaking ahead of the vote,
Democratic Rep. Maxine Waters said undoing critical regulation through a
government spending bill must be opposed.

Rep. Maxine Waters: "Under the cover of 'must pass' legislation, big
bank lobbyists are hoping that Congress will allow Wall Street to once
again gamble with taxpayer money –- by reversing a provision that
prohibits banks from using taxpayer-insured funds, bank deposits, to
engage in risky derivatives trading activity. … This provision must be
stopped. Enough is enough."

According to The New York Times, the financial giant Citigroup authored
the provision in question. Another amendment will increase tenfold the
amount of money allowed for certain political donations. Despite the
objections of Democrats like Maxine Waters, the White House urged
lawmakers to pass the bill and avoid a shutdown. More than 50 Democrats
then joined with Republicans to approve the bill in a narrow 219-to-206
vote. The measure funds all government agencies through September except
for the Department of Homeland Security, whose allocation expires in
February. That will set up a new showdown over immigration, with
Republicans vowing to hold up additional funding in a challenge to
President Obama’s reprieve for up to five million undocumented
immigrants.

 

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