Title should be ‘opens the door to underpinning up to 300 trillion in derivatives’, looks like a title written to be more explosive than reality.
That being said, you can be sure this will cause the US Government to loose over a trillion dollars.
What should have been done, is the banks need broken up. They need to be deregulated but we can never allow banks that are too big to fail again. We need this kind of leader that will take on this task.
Either the taxpayers are on the hook if the derivatives blow up, or they aren’t. At the moment the derivatives aren’t blown up, so there is no present bill due. But given oil’s slide and rapid currency revaluations (e.g. the Yen) the odds that derivatives might start blowing up is, well, let me put it this way: likely enough for cronies in Washington to insert language getting them off the hook if/when they do blow up.
The biggest to big to fail bank is the Federal Reserve.
After an audit they should be broken up and it’s legitimate functions taken over by the Treasury Department.
Want to know who has the power? Just Google the number of stories about the FR vs. the Treasury Dept.