Meet Congressman Kevin Yoder (R-Kansas).
Yoder, a second-term congressman whose largest contributors are in the finance industry, introduced the provision last summer. It was literally written by Citigroup executives, but Yoder took their language and rolled it into an amendment to a spending bill in a House subcommittee meeting. It got swept into the year-end spending package because it “was within the scope of negotiations” on it, according to an Appropriations Committee aide.
The provision, which prompted a fiery speech by Sen. Elizabeth Warren (D-Mass.), undoes a rule that prevents big banks from relying on the Federal Deposit Insurance Corp. to bail them out if things go sour when they trade risky assets. The rule was put into place as part of the 2010 Dodd-Frank law, which overhauled the financial regulatory system after the 2007-2008 financial crisis stemming from banks making extremely risky bets and losing. The government had to bail them out with taxpayer money, and Yoder’s provision paves the way for another possible bailout.
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.
But a look at the comments on Yoder’s Facebook page shows that some people, including Kansas voters, are catching on that he was the one behind the Wall Street provision. And they’re not happy.
“I have always voted for you, Congressman Yoder, but I am disappointed with your yes vote on the Omnibus bill and we, your constituents, deserve an explanation as to why,” writes Dianne Lavenburg, who lives in DeSoto, Kansas. “[P]lease clarify your involvement regarding the taxpayer bailouts for risky bank investments also included in the Omnibus bill.”
“How much did Citi donate in exchange for you inserting their requested verbiage?” asks Kevin West, who studies at Kansas State University.
“Why is there a Wall Street giveaway in the Continuing Resolution? Did you learn nothing during the last cycle of collapse and bailouts? Plain ignorance, or willful ignorance?” says Rich Reavis, who plays in a band called Rail Dog that performs around Kansas. “Did you speak out against putting that crap in the CR?”
Scott Gregory of Roeland Park, Kansas, which falls in Yoder’s district, says, “I’m sure the good folks of the 3rd District were just beating down the door to get CITI favored treatment. You are a sell-out to Wall Street lobbyists.”
And here is some responses from Rep. Yoder’s Facebook: