$1.1 trillion spending bill narrowly passes to avert government shutdown

With much debate the US House of Representatives averted a government shutdown on Thursday by nearly passing a $1.1 trillion spending bill despite strenuous democratic objections to controversial financial provision.  In the past President Barack Obama and House Speaker John Boehner have been enemies in budget battles, but this time they are on the same side, pushing for the passage of this bill.  Supporters of the bill say the purpose of it is largely to provide billions of dollars of additional funds to fight Islamic State militants in Iraq and Syria and the Ebola break out in West Africa.

However, the 1603-page bill does roll back portions of the Dodd-Frank law due to go into effect next year by killing planned restrictions on derivatives by large banks, allowing those banks to continue trading swaps and futures in units that have a direct benefit from federal deposit insurance and Federal Reserve loans. 

Both Obama and J.P. Morgan Chase and Company chief executive Jamie Dimon were calling Democrats to support this bill, which angered many Democrats.  “It is very strange, very strange that the two of them would be working for the support of this bill,” said Representative Maxine Waters, the top Democrat on the House Financial Services Committee. 

Being passed by 219-206 votes, 67 Republicans rejected the bill but that was offset by 57 Democrats who voted in favor.  The passing of the bill increases government spending and dangerously supports bigger banks in their risky derivative trade.  

Economists are saying that this could be the next set up for banks to continue over extending their risk trades- this trading contributed significantly to the 2009 meltdown 
financial meltdown leading is into the “Great Recession” from which we still have not recovered.