Congressman Yoder has finally come out and commented on his role in inserting the Big Banks language into the Omnibus bill. In his newsletter yesterday this was included,
Some members of the media have been misconstruing one provision in particular that I supported in the Appropriations Committee earlier in the year. I joined a significant portion of House Democrats and Republicans in making an improvement to Dodd-Frank that helps strengthen markets, helps consumers, and provides no additional risk to taxpayers. The provision amends Section 716 of Dodd-Frank, which would have increased transaction costs by requiring banks to push out almost all derivative business into separate entities. The derivatives associated with this provision are not the same as the riskier Collateral Debt Obligations (CDOs) that many blame for causing the mortgage crisis. CDOs remain subject to the push out even after the adoption of this provision.
Without this change, small regional banks would be in danger of being unable to serve the lending needs of their customers. Ultimately, farmers, manufacturers, and other Main Street businesses would be harmed the most. I opposed the taxpayer bailouts in 2008 and stand strong by the provisions in existing law that prohibit bailouts from ever happening again. This fixes an onerous provision of Dodd-Frank that actually made markets less safe and increased the cost of lending. It does not make any change to provisions preventing bailouts.
He also provided a text book, political response to the outrage by blaming the left-wing folks for the outcry ignoring the Republicans who have also come out criticizing this move.
I’ll leave the rebuttal to the pro.
Nice try Congressman Yoder. You are still in the doghouse.
Dear Congressman Yoder,
I read a top 5 list that involved Kansas this week. Usually when that happens it’s a list involving our fantastic BBQ. This time, however, food wasn’t the focus. It was a list about the Omnibus bill that Congress passed last week – that 1600 page monster bill that should prevent another government shutdown. Turns out Kansas, specifically an action that you did, made the list. It was the Top 5 Awful Things Congress Snuck Into the Omnibus Budget Deal.
The current budget deal includes a repeal of the Dodd-Frank derivatives rule that was literally written by big bank lobbyists — A leaked document obtained by the New York Times revealed that 70 of the 85 lines of derivatives language reflect recommendations made in a piece of model legislation drafted by lobbyists for Citigroup, another bank that played a major role in the 2008 crisis and also received billions of federal stimulus dollars.
If all of this sounds familiar, it’s because the House passed the exact same CitiGroup-written law last year, but it died after resistance from the Senate and Treasury Department. Now, Wall Street’s allies in Congress have effectively copy-pasted the CitiGroup-approved language out of the old bill and into the current budget deal, which is much less susceptible to a veto threat since a veto would shut down the government.
The language was added by you.
From all Kansas voters I can only say on thing, what the hell?
Wait, I think I can answer this question.
Yoder received a combined $29,000 in campaign contributions from the political action committees representing the four largest banks that will benefit from eliminating the regulation.
“Absent this fix, the cost of doing business as a farmer in Kansas will simply go up.”
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.