Kaptur Opposed Dodd-Frank Rider During Appropriations Markup

WASHINGTON- During a June markup of the Financial Services
appropriations bill, Congresswoman Kaptur stood out as one of three
members to oppose a controversial amendment by Kansas Republican Kevin
Yoder.

The controversial Yoder rider to the omnibus spending bill eliminates
the requirement for banks to separate trades of financial derivatives
from traditional banking activity, which is insured by public dollars
through the Federal Deposit Insurance Corporation. Trading in
derivatives such as credit-default swaps contributed to the 2008
financial collapse.

Here is Kaptur's full statement that was made in the subcommittee
markup six months ago:

"I rise in opposition to the gentleman’s amendment. I’m not sure 100%
of the Members of this Committee fully comprehend everything that is
being included and excluded in the gentleman’s amendment. So for
example, if I’m on the proper amendment, you distinguish between
“insured depository” institutions and changing the language to
“covered depository” institutions. What is the full implication of the
substitution of those words? Who does it include, who does it exclude?

You talk about bona fide hedging and traditional bank activities.
One of the ways we got into trouble in this country was in moving away
from true commodities markets to financially transacting false money.
That’s what happened in 2000 when traditional banking was thrown out.
And so I find it very interesting what the gentleman is trying to do
here on an appropriations bill.

"I’d like to know who is really behind this. Who has enough power to
try to bring this before this Committee? And I have some imaginations
on who that might be.

"When the traditional manner of handling real money and commodities
was thrown out in 2000, it was done in a bill that came here in a
conference report--and most members didn't even know what they were
voting on. And then 2008 happened just a few years after that.

"Our country got in trouble when we started financializing the value
of true commodities. If you look at the price of oil today, you’ll
find that a good 40-70 bucks of a barrel is actually not true value.
It is merely what Wall Street has done to create false value and is
causing consumers to pay so much more per gallon for every gallon of
gasoline that they buy. There is something really striking that has
happened in the last decade in terms of the way that we use to value
real money and real commodities inside this country.

"I think what the gentleman is trying to do is really dangerous and it
doesn’t belong in this Committee. I urge my colleagues to vote
strongly “no” against this amendment.

"And ask yourself the question (of) who is really trying to do this on
an appropriations bill?"