Read

User menu

Search form

Kansas Congressman M.I.A. After Tucking Wall Street Bailout Into Government Spending Bill

Kansas Congressman M.I.A. After Tucking Wall Street Bailout Into Government Spending Bill
Wed, 12/17/2014 - by Jennifer Bendery
This article originally appeared on Huffington Post

For all the anger among progressives about a Wall Street bailout provision that made its way into the just-passed $1.1 trillion government spending bill, there's been little attention on the person who put it in there.

Meet Congressman Kevin Yoder (R-Kansas).

Yoder, a second-term congressman whose largest contributors are in the finance industry, introduced the provision last summer. It was literally written by Citigroup executives, but Yoder took their language and rolled it into an amendment to a spending bill in a House subcommittee meeting. It got swept into the year-end spending package because it "was within the scope of negotiations" on it, according to an Appropriations Committee aide.

The provision, which prompted a fiery speech by Sen. Elizabeth Warren (D-Mass.), undoes a rule that prevents big banks from relying on the Federal Deposit Insurance Corp. to bail them out if things go sour when they trade risky assets. The rule was put into place as part of the 2010 Dodd-Frank law, which overhauled the financial regulatory system after the 2007-2008 financial crisis stemming from banks making extremely risky bets and losing. The government had to bail them out with taxpayer money, and Yoder's provision paves the way for another possible bailout.

Yoder has been mum about the spending package since it passed the House. His office hasn't responded to multiple requests for comment on why he slipped the Citigroup language into it. The press statements on his website say nothing about the provision or the spending bill. There are no posts about it on his Facebook page. He's said nothing in his Twitter feed.

But a look at the comments on Yoder's Facebook page shows that some people, including Kansas voters, are catching on that he was the one behind the Wall Street provision. And they're not happy.

"I have always voted for you, Congressman Yoder, but I am disappointed with your yes vote on the Omnibus bill and we, your constituents, deserve an explanation as to why," writes Dianne Lavenburg, who lives in DeSoto, Kansas. "[P]lease clarify your involvement regarding the taxpayer bailouts for risky bank investments also included in the Omnibus bill."

"How much did Citi donate in exchange for you inserting their requested verbiage?" asks Kevin West, who studies at Kansas State University.

"Why is there a Wall Street giveaway in the Continuing Resolution? Did you learn nothing during the last cycle of collapse and bailouts? Plain ignorance, or willful ignorance?" says Rich Reavis, who plays in a band called Rail Dog that performs around Kansas. "Did you speak out against putting that crap in the CR?"

Scott Gregory of Roeland Park, Kansas, which falls in Yoder's district, says, "I'm sure the good folks of the 3rd District were just beating down the door to get CITI favored treatment. You are a sell-out to Wall Street lobbyists."

Citibank maintains the rule change is good for everyone. Asked for comment on the provision being included in a must-pass bill, a company spokeswoman pointed HuffPost to a recent blog post by Ed Skyler, executive vice president for global public affairs, outlining why banks back the provision being repealed.

"Citi is strongly committed to the safety and soundness of the financial system. We also support a regulatory framework in which U.S. companies can be as competitive as possible," Skyler writes. "This correction to the 'swaps push-out' provision supports both goals."

To be clear, lawmakers in both parties supported the bank provision by voting for the spending package. Republican leaders in the House and Senate, as well as Democratic leaders in the Senate and appropriations committee chairs on both sides of the aisle, were in favor of including the provision. Barbara Mikulski (D-Md.), the lead appropriator in the Senate, actively defended the bank language.

The vote created unusual fractures in the House, where Minority Leader Nancy Pelosi (D-Calif.) broke from Minority Whip Steny Hoyer (D-Md.) in opposing it. The bill also led to odd alliances in the Senate, where Warren and Sen. Chuck Grassley (R-Iowa) found themselves united against it. The final House vote can be seen here. The Senate vote is here.

Originally published by Huffington Post

3 WAYS TO SHOW YOUR SUPPORT

ONE-TIME DONATION

Just use the simple form below to make a single direct donation.

DONATE NOW

MONTHLY DONATION

Be a sustaining sponsor. Give a reacurring monthly donation at any level.

GET SOME MERCH!

Now you can wear your support too! From T-Shirts to tote bags.

SHOP TODAY

Sign Up

Article Tabs

The American people clearly spoke, and the drubbing Democrats received requires looking beyond just issue polls, voting patterns, campaign strategy, or get-out-the-vote tactics.

The recent decisions by two of the most influential national newspapers of record to not publish their endorsements of Vice President Kamala Harris says a lot about how seriously they take Trump’s threats to democracy and his promises of vengeance against his enemies.

On the eve of the historic November vote, it seems important to ask: What's wrong with men, how did we get here, and can we change this?

As Trump’s campaign grows increasingly bizarre, his team appears to be more tightly controlling his movements and carefully scripting his public appearances to minimize the negative impact his erratic behavior may have on undecided voters in swing states.

Throughout history, fascist governments have had a similar reliance on the use of lies as a weapon to take and retain power.

The American people clearly spoke, and the drubbing Democrats received requires looking beyond just issue polls, voting patterns, campaign strategy, or get-out-the-vote tactics.

The recent decisions by two of the most influential national newspapers of record to not publish their endorsements of Vice President Kamala Harris says a lot about how seriously they take Trump’s threats to democracy and his promises of vengeance against his enemies.

On the eve of the historic November vote, it seems important to ask: What's wrong with men, how did we get here, and can we change this?

As Trump’s campaign grows increasingly bizarre, his team appears to be more tightly controlling his movements and carefully scripting his public appearances to minimize the negative impact his erratic behavior may have on undecided voters in swing states.

Throughout history, fascist governments have had a similar reliance on the use of lies as a weapon to take and retain power.

On the eve of the historic November vote, it seems important to ask: What's wrong with men, how did we get here, and can we change this?

Posted 3 weeks 3 days ago

Former President Donald Trump is now openly fantasizing about deputizing death squads against Americans.

Posted 1 month 1 week ago

The 2024 Republican ticket’s incitement of violence against Haitian migrants in Springfield, Ohio, is revealing in more ways than one.

Posted 1 month 3 weeks ago

Throughout history, fascist governments have had a similar reliance on the use of lies as a weapon to take and retain power.

Posted 1 month 5 days ago

What Britain needs now is more politics, not more police.

Posted 1 month 3 weeks ago

The recent decisions by two of the most influential national newspapers of record to not publish their endorsements of Vice President Kamala Harris says a lot about how seriously they take Trump’s threats to democracy and his promises of vengeance against his enemies.

As Trump’s campaign grows increasingly bizarre, his team appears to be more tightly controlling his movements and carefully scripting his public appearances to minimize the negative impact his erratic behavior may have on undecided voters in swing states.

On the eve of the historic November vote, it seems important to ask: What's wrong with men, how did we get here, and can we change this?