Letter: Another bank bailout?
Congresswoman Annie Kuster wants the American taxpayer to bail out Citigroup for up to $3 trillion dollars if that bank’s investments in risky derivatives collapses. Derivatives are the complex financial instruments criminal Wall Street banks used to nearly destroy the world economy and thrust the country into a deep recession.
How about the other too-big-to-fail banks and their trillions of dollars worth of hazardous derivatives? Should taxpayers be forced to bail them out again as well? Kuster, along with 69 of her Democratic and 222 of her Republican colleagues, believes so. That’s why they passed HR992, the Swaps Regulatory Improvement Act, in the House of Representatives.
This deplorable legislation, largely written by Citigroup’s lobbyists, would gut Section 716 of the Dodd-Frank law enacted after the 2008 financial crisis. Section 716 keeps taxpayers off the hook from bailing out the bank’s derivatives.
Rep. Jim Himes, a Connecticut Democrat, who has received $66,450 from Citigroup and is a co-sponsor of HR992, said former congressman Barney Frank and regulators support the bill. He’s lying.
This legislation stands little chance of passing in the Senate, but Kuster should be looking out for the public interest instead of trolling for campaign contributions from Wall Street.
JOHN S. HANCOCK