Before I start writing my holiday articles, I want to comment on the $1.1 trillion government funding bill that passed Congress Saturday.
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.
Warren went on to say:
Washington already works really well for the billionaires and big corporations and the lawyers and lobbyists. But what about the families who lost their homes or their jobs or their retirement savings the last time Citi bet big on derivatives and lost? What about the families who are living paycheck to paycheck and saw their tax dollars go to bail Citi out just six years ago? We were sent here to fight for those families, and it’s time – it’s past time – for Washington to start working for them.
Warren and Sen. David Vitter, R-La., filed a one-page, bipartisan amendment to remove the bailout provision from the government funding bill. However, it wasn’t considered by the Senate as amendments to the government spending bill were blocked.
It’s discouraging that conservatives have been successful in blocking positive action by Congress for so many years.
As Warren said, the government works well for the rich, but not the middle class.
It looks like this is going to be the Republican strategy for the next two years: add amendments to bills that the administration wants, then the president can’t veto them.
It’s going to be a rough two years for consumers.
Other negative provisions of the government spending bill, according to The Los Angeles Times article “Congress Gives Bankers a Sweet Deal in Funding Bill, With More to Come,” are:
- Allows underfunded multi-employer pension plans to severely cut benefits for retirees.
- Halts IRS efforts to scrutinize the tax-exempt status of political organizations; Stops the Environmental Protection Agency from regulating the amount of lead in ammunition and fishing gear.
- Keeps the Fish and Wildlife Service from declaring the sage grouse an endangered species.
- Blocks Transportation Department regulations that aim to make sure truckers get enough sleep before they hit the road after a long haul.
- Removes provisions cutting the amount of salt in school lunches.
- Bans any effort by the federal government to restrict or otherwise interfere with the sale and production of incandesent light bulbs.
