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Monday, December 13, 2010

Washington and the regulators are there to serve the banks,

That's the view of the new incoming GOP chairman of the House Financial Services Committee Rep. Spencer Bachus (R-AL). Commenting further without a trace of ironyhe claimed that he represents the views of Main street and not Wall Street.

The GOP believes that gutting the Financial Reform Bill is the only way to create jobs. The big issue at stake is the Volcker rule, named after the former Sec. of the Treasury under Pres. Reagan who believes that banks should be prohibited from using government loans to finance derivatives. Currently, the large investment banks can borrow money from the Fed at a rate far closer to 0% than to 1%. The taxpayer is on the hook for those loans.

The current GOP doesn't give a shit about the potential risk to taxpayers. Mortgage based derivatives cost the economy millions of jobs and caused the net worth of the average American to drop from about $100,000 to $62,000 but who's counting?

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