While it’s good news for consumers that Republicans didn’t shut down the federal government again, it’s bad news that the government funding bill that passed will do away with a provision that prevents the bailout of banks who get into trouble selling exotic investments, such as the toxic assets they created by packaging risky mortgage loans.
In trying to stop a last-minute amendment written by Citigroup, Sen. Elizabeth Warren, D-Mass., said:
Democrats don’t like Wall Street bailouts. Republicans don’t like Wall Street bailouts. The American people are disgusted by Wall Street bailouts. And yet here we are – five years after Dodd-Frank – with Congress on the verge of ramming through a provision that would do nothing for middle class, do nothing for community banks – do nothing but raise the risk that taxpayers will have to bail out the biggest banks once again.