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Obama Muscles Bank Protection Bill Through Conference Committee,
But Not Unemployment Extension

June 28, 2010 (EIRNS)—As has been detailed in numerous articles, and by a Senate office participating in LaRouche's June 26 webcast, the Dodd-Frank bill just passed through Conference committee in the Congress has been neutered of virtually all measures against the big, Wall St. banks—by the hand of the Obama Administration. Contrary to Obama's assertions that this bill eliminates "too big to fail" and contains derivatives, it leaves the six biggest banks in the United States in the same powerful position they are now, and permits them to continue virtually all the gambling activity they carry out now.

The details of the muscle operation were spelled out graphically in the webcast question, which can be found in the coming issue of EIR Online and on LPAC's website. Specifically, Senator Blanche Lincoln (D-Ark.), who had fought tooth and nail to force banks to spin off their derivatives operations, was herself held virtually hostage through the night, and eventually permitted a gutting of her provision.

With all the "political capital" expended on serving Wall St., the Administration—which had deployed Secretary Geithner and numerous others to the Hill for arm-twisting—and Senate leadership apparently didn't have any such capital left for the millions of Americans who desperately need Federal support to extend their unemployment insurance. Thus, no compromise was reached there, with the equally heartless Republicans, and the long-term unemployed (who amount to 46% of the total) are being left to their fate.

Will this be the last straw for the population, in terms of the Obama Administration? It would not be surprising if it is.