See How Citigroup Wrote a Bill So It Could Get a Bailout
Citigroup lobbyists drafted a bill to allow more risky dealings by taxpayer-backed banks and—what do you know?—the House financial services committee passed nearly identical legislation.
Citi’s move to expand the types of derivatives it can trade comes as banks have increasingly been shifting derivatives out of their investment banking divisions (which aren’t backed by FDIC insurance) and into taxpayer-backed entities. “The rule is needed more than ever,” says Mike Konczal, an expert on financial reform at the Roosevelt Institute. The financial services committee passed the Citi-written bill on a 53-to-6 vote; all the no votes came from Democrats