Why would the President support letting big banks back into the derivatives business ??

[MFrohike]

69. Two things

1. FDIC and the Fed got into a huge fight 3 years ago over whether the banks should be able to shift their derivative liabilities into their FDIC-insured subsidiaries. The Fed was for it, the FDIC against. The issue was the fact the derivative liabilities would be paid first in the event of a default event, which would effectively make the US a guarantor for those liabilities because they would be unable to cover the depositors until the banks other obligations were covered.

Given that, the prior poster was entirely correct in describing this as corrupt. Everyone involved in the passage of such a blank check can be reliably considered to be, at best, an enabler of corruption. At best.

2. Shutting the government down didn't hurt the GOP much, did it? One can argue whether it's wise and whatnot, but the political calculus is blindingly obvious: it isn't suicide anymore.