House Votes On The $1.1 Trillion Cromnibus Bill: Live Webcast | Zero Hedge.
As is widely known by now, in a largely token vote, since it has the blessing of the White House, in a few moments the House will vote on H.R. 83, the bill containing $1.1 trillion in appropriations to fund the government through 2015, aka the “Cromnibus”. As noted previously, among the provisions in the bill is Citi-directed watering down of Dodd-Frank by way of a Swap “push-out” provision, which as we explained over the weekend, would put taxpayers on the hook for derivative losses as it “would allow financial institutions to trade certain financial derivatives from subsidiaries that are insured by the Federal Deposit Insurance Corp. — potentially putting taxpayers on the hook for losses caused by the risky contracts.”
Then again, since we are talking about some $303 trillion in US-based derivatives (at just the top 25 US holding companies alone), the bottom line is that it really doesn’t matter where the swaps are housed or traded from: if and when these goes bad, it doesn’t matter if they are located in a FDIC-insured shell or somewhere else: the entire system will collapse all over again, unless it gets yet another multi-trillion Fed, as in taxpayer, bailout.
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