Ferguson: Admin. asked for too little in the banking bill, nothing is preventing another banking crisis.Ferguson: Admin. asked for too little in the banking bill, nothing is preventing... more
In Elizabeth Warren's world, credit card contracts would be so simple a teenager could read and understand them in four minutes. Loans would be as easy to compare as toasters, and online credit scores would be free.
Rep. Peter DeFazio called for the firing of President Barack Obama's top two economic aides on Wednesday for pursuing a recovery plan skewed too heavily towards Wall Street's favor.
The Oregon Democrat told MSNBC's Ed Schultz that he was dismayed with the administration's lack of focus on job creation and insisted it was time to dismiss both White House economic adviser Larry Summers and Treasury Secretary "Timmy Geithner."
"We think it is time, maybe, that we turn our focus to Main Street -- we reclaim some of the unspent [TARP] funds, we reclaim some of the funds that are being paid back, which will not be paid back in full, and we use it to put people back to work. Rebuilding America's infrastructure is a tried and true way to put people back to work," said DeFazio.
"Unfortunately, the President has an adviser from Wall Street, Larry Summers, and a Treasury Secretary from Wall Street, Timmy Geithner, who don't like that idea," he added. "They want to keep the TARP money either to continue to bail out Wall Street...or to pay down the deficit. That's absurd."
Asked specifically whether Geithner should stay in his job, DeFazio replied: "No.
In an interview with Jon Stewart on Comedy Central's The Daily Show Tuesday evening, Vice President Joe Biden acknowledged the anger and frustration many taxpayers feel over the way financial institutions seem to have favored status in Washington D.C.
Pointing to the hundreds of billions of government dollars that have been spent to keep banks from failing, he recalled a "great expression" of his grandfather, Ambrose Finnegan: "It's socialism for the rich and capitalism for the poor," Biden said.
But he defended his administration's decisions to rescue Wall Street institutions from the brink of failure. "Because if we did not bail them out, we would have been in a position where there was a literal depression, not a recession."
Via National People's Action, here is some footage from the protesters at the ABA conference. From the footage, it's clear there are some strong emotions from the protesters.
At one point a protester grabs a megaphone and says:
"The American Bankers Association has helped loosen the rules that protect us, allowing the unfettered greed that has brought us to the brink of a recession. And for those bankers who are members and support the ABA's war against the working and middle class, shame on you!"
The crowd soon begins chanting "Shame On You!" in unison.
Via Progress Illinois' Twitter feed, here's more video of Sen. Durbin's speech. In this section, he calls for a "showdown" with Wall Street.
According to the Twitter feeds of National People's Action and the SEIU, the protesters are headed to the ABA's "Roaring '20s"-themed cocktail party. (Perhaps the ABA is not aware of the irony of having such an event.)
Sen. Dick Durbin spoke in front of the protesters earlier today. Here's a clip from the video, in which Durbin tells the story of homeowner who was struggling to stay in her home -- and was apparently talked into agreeing to a seemingly atrocious mortgage. The woman's mortgage was riddled with hidden fees and by, "the types of things even a Wall Street lawyer couldn't explain to anyone," Durbin said.
The American Bankers Association's annual convention in Chicago has become the scene for a series of major protests, which are set to continue through Tuesday. Dubbed "the Showdown in Chicago." (http://www.showdowninchicago.org/index.html) (Check back here frequently for updates on the protests.)
Groups like the National People's Action, the Service Employees International Union, Americans For Financial Reform and the AFL-CIO are expected to turn out with thousands of protesters. Sen. Richard Durbin (D - Illinois) is scheduled to address the protesters Sunday evening. Conference speakers include Newt Gingrich, conservative columnist George Will and FDIC chairman Sheila Bair.
Check out these photographs of the "Showdown in Chicago," taken by organizers of the protest.
Citigroup has hired banking industry lobbyist Richard F. Hohlt, the man who blocked banking regulation in the 1980s and "played a pivotal role helping to prolong dubious industry practices that cost taxpayers $150 bilion to clean up." He was also instrumental in helping the Bush administration "out "Valerie Wilson as a CIA agent.
After taking $45 billion in TARP assistance, Citigroup has struck a "loss sharing deal" with the government, which makes us (taxpayers) on the hook for an additional future loss $214 billion dollars!
As if they hadn't plundered enough, now they've hired Hohlt to fight any future regulations.
What an obscene example of hubris.Citigroup has hired banking industry lobbyist Richard F. Hohlt, the man who blocked... more
WASHINGTON — Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government.
Federal Deposit Insurance Corporation Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks.
The plan, strongly supported by bankers and their lobbyists, would be a major reversal of fortune.
A hallmark of the financial crisis has been the decision by successive administrations over the last year to lend hundreds of billions of taxpayer dollars to large and small banks.
“It’s a nice irony,” said Karen Shaw Petrou, managing partner of Federal Financial Analytics, a consulting company. “Like so much of this crisis, this is an issue that involves the least worst options.”WASHINGTON — Tired of the government bailing out banks? Get ready for this:... more
The US government has announced a major reform of banking regulation to prevent future financial crises.
The overhaul will require big banks to put more money aside against future losses to curb excessive risk taking.
Consumers will get a special agency to protect their interests and regulate mortgages and credit cards.
In outlining the reforms, President Barack Obama described them as the biggest shake-up of the US system of financial regulation since the 1930s.
The US central bank, the Federal Reserve, will be given the authority to monitor major financial institutions.
The US President said the lack of oversight among finance firms prompted systemic abuse causing risks for both companies and individuals.
"We are working hard to build a new foundation for sustained economic growth. This will not be easy" he said.
"We know that this recession is not a result of one failure but of many. And many of the toughest challenges we face are the product of a cascade of mistakes and missed opportunities which took place over a course of decades."
New Rules
The aim is to deal with the weaknesses that the sub-prime crisis and the financial meltdown revealed in the fragmented US regulatory system.
"With their proposals today, the administration has moved this critical debate from broad discussion to specific action - this is an important step forward," said Timothy Ryan, chief executive of the Securities Industry and Financial Markets Association.
He said it was a "once-in-a-generation opportunity to rebuild our regulatory structure so that our financial system is more stable, more resilient and better underpins a dynamic US economy".
But not everyone was so positive.
Peter Morici of the Smith School of Business at the University of Maryland described the changes as "a huge bureaucratic overreach that will prove ineffective and too costly".
Page last updated at 18:49 GMT, Wednesday, 17 June 2009 19:49 UK
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US unveils banking reform plans
President Obama: "We should not accept a system that consistently puts us in danger"
The US government has announced a major reform of banking regulation to prevent future financial crises.
The overhaul will require big banks to put more money aside against future losses to curb excessive risk taking.
Consumers will get a special agency to protect their interests and regulate mortgages and credit cards.
In outlining the reforms, President Barack Obama described them as the biggest shake-up of the US system of financial regulation since the 1930s.
The US central bank, the Federal Reserve, will be given the authority to monitor major financial institutions.
The US President said the lack of oversight among finance firms prompted systemic abuse causing risks for both companies and individuals.
"We are working hard to build a new foundation for sustained economic growth. This will not be easy" he said.
"We know that this recession is not a result of one failure but of many. And many of the toughest challenges we face are the product of a cascade of mistakes and missed opportunities which took place over a course of decades."
New rules
The aim is to deal with the weaknesses that the sub-prime crisis and the financial meltdown revealed in the fragmented US regulatory system.
"With their proposals today, the administration has moved this critical debate from broad discussion to specific action - this is an important step forward," said Timothy Ryan, chief executive of the Securities Industry and Financial Markets Association.
He said it was a "once-in-a-generation opportunity to rebuild our regulatory structure so that our financial system is more stable, more resilient and better underpins a dynamic US economy".
But not everyone was so positive.
Peter Morici of the Smith School of Business at the University of Maryland described the changes as "a huge bureaucratic overreach that will prove ineffective and too costly".The US government has announced a major reform of banking regulation to prevent future... more
It's a terrible mistake to confuse the momentary solvency of the financial sector and the long-term health of our economy.
While we have addressed the credit collapse, we have not begun to tackle the far more daunting, and more significant, structural problems in the economy. Instead of focusing on the green shoots, let's examine the macro data that will determine our national prosperity in the next generation. These data are terrifying.
Start with the job front. Long term, nothing is more fundamental than good jobs to creating the middle-class wealth that must drive the economy. The creation of true middle-class jobs was the great success of our economy from 1950s through the mid-1990s. Consider the job data, in aggregate and by sector, from the past decade. (All data are from the U.S. Department of Labor, Bureau of Labor Statistics.)It's a terrible mistake to confuse the momentary solvency of the financial sector and... more
The Royal Bank of Scotland are reportedly pursuing the protester who hurled a computer through the their office window during the G20 summit earlier this month, for forty thousand pounds in damages.
The protester in their sights is an unemployed 17 year old from Brighton so it's unlikely they'll have the cash knocking about. But the part-nationalised bank wants them to cover the damage expenses in full. Ouch.
The photograph of the computer hurtling through the city branch of RBS was one of the iconic images to emerge from the day of protests.The Royal Bank of Scotland are reportedly pursuing the protester who hurled a computer... more
Over the last century, any time you had a multi-term GOP president (in other words, long enough to do real damage) you had a pretty substantial collapse in the banking industry (i.e., near fundamental economic collapse). Just putting down a list of presidents over the last century and then mapping the major bank panics over the same time period reveals some interesting stuff.Over the last century, any time you had a multi-term GOP president (in other words,... more
NEW HAVEN, Conn. — The attorney general of Connecticut said Saturday that he is asking American International Group Inc. why documents appear to show the company paid $53 million more in bonuses to its financial products division than previously reported.
Documents turned over late Friday show AIG paid $218 million in bonuses last weekend, higher than the $165 million that was previously disclosed, said the office of Attorney General Richard Blumenthal, who had issued a subpoena.
Bonuses were “showered like confetti” on AIG employees, Blumenthal said.NEW HAVEN, Conn. — The attorney general of Connecticut said Saturday that he is... more
Washington Mutual, the bankrupt, seized and "under investigation" financial institution which saw some operations forcibly sold off to JPMorgan Chase in 2008, is suing the agency that guarantees Americans' deposits, and that agency is running low on funds.
Washington Mutual (WaMu), formerly one of the nation's most prestigious banks and alleged holder of over $307 billion in assets, is suing the Federal Deposit Insurance Corporation for more than $13 billion over the roll-up of its banking division into JPMorgan Chase & Co.
Washington Mutual was seized by federal regulators in Sept. 2008; the company filed for bankruptcy immediately thereafter. The ensuing investigation "one of the largest and most complex federal investigations ever undertaken in Western Washington," a US Attorney told the Seattle Times
"In a complaint filed with the U.S. District Court for the District of Columbia, the thrift's former parent accused the FDIC of having on January 23 made a 'cryptic disallowance' of its claims, prompting the lawsuit," reported Reuters.Washington Mutual, the bankrupt, seized and "under investigation" financial... more
Following calls for the Prime Minister to say sorry for the banking crisis, and David Cameron's wily apology on Friday for his party's failure to flag up the danger of bank and corporate debt ahead of the recession, Gordon Brown has said he "accepts 'full responsibility' for his role in the banking failures that led to the global recession.
He does, however, rule out making an actual apology and told The Guardian he thinks it "is essential for the sake of the country" that Labour wins a fourth term at the next general election as "only progressive, centre-left governments can address the problems of the global change".
Cameron, meanwhile, now has a double-digit lead in the polls.Following calls for the Prime Minister to say sorry for the banking crisis, and David... more
A few years ago, credit card companies were throwing money at people to get them to sign up. Now, as they struggle to contend with a wave of defaults, they may pay you to leave.
At least that’s the case with American Express, which is offering some card members $300 to pay off their remaining balance and close their accounts.
Selected members — the company won’t say how many — received letters with the voluntary offer a couple weeks ago, according to Molly Faust, an American Express spokesperson. Each letter came with an RSVP code that, when submitted online, immediately cancels that member’s card. Members have until the end of April to pay off their balance, after which they will receive a $300 Amex prepaid gift card. If they do not pay off their balance in time, they do not get the gift card and their accounts will still be closed, Ms. Faust said.
Is this a way for peopel to pay back their debt or a way for American Express to make money/suffer less losses?A few years ago, credit card companies were throwing money at people to get them to... more
Whenever you try to solve a problem you should look at what caused the problem in the first place. In early 2009, the banking system is wrestling with hundreds of billions (if not trillions) of dollars of bad assets, known as subprime loans, marginal loans, or other vague descriptors.
Based on my years of experience as a Chief Financial Officer (CFO) in banking, I can say with confidence, "Bankers are more intelligent and business savvy than government bureaucrats."
That statement is invariably followed by the question: "So, why did intelligent bankers make so many bad loans?" The answer is government intervention and coercion.
Read and Discuss...Whenever you try to solve a problem you should look at what caused the problem in the... more
The Obama Administration is expected within the next few weeks to announce an initiative of $50 billion or more to help strapped homeowners. But with 1 million residences having fallen into foreclosure since 2006, and an additional 5.9 million expected over the next four years, the Obama plan -- whatever its details -- can't possibly do the job by itself. Lenders and investors will have to acknowledge huge losses and figure out how to keep recession-wracked borrowers making at least some monthly payments.
So far the industry hasn't shown that kind of foresight. One reason foreclosures are so rampant is that banks and their advocates in Washington have delayed, diluted, and obstructed attempts to address the problem. Industry lobbyists are still at it today, working overtime to whittle down legislation backed by President Obama that would give bankruptcy courts the authority to shrink mortgage debt. Lobbyists say they will fight to restrict the types of loans the bankruptcy proposal covers and new powers granted to judges.
Read and Discuss...The Obama Administration is expected within the next few weeks to announce an... more
New Mexico Governor, Bill Richardson, is under investigation which has prompted him to back away from being offered Secretary of Commerce position under the upcomming Obama administration. However, there is more to Richardson's story than is being told in the media. BBC investigative journalist, Greg Palast, sheds some light on Richardson's shady past.
Voted in Oct. 3, 2008, The Emergency Economic Stabilization Act. H. R. 1424, the bailout bill is 169 pages long. covering such subjects like FDIC authority, Cooperation with the FBI and Extension of exclusion of income from discharge of qualified principal residence
indebtedness.
Each Federal property manager
shall, 60 days after the date of enactment of this Act
and every 30 days thereafter, report to Congress (*)
*An excerpt from SEC. 110. ASSISTANCE TO HOMEOWNERS on page eleven.
(4) TIMING.—Each Federal property manager shall develop
and begin implementation of the plan required by this subsection
not later than 60 days after the date of enactment
of this Act.
(5) REPORTS TO CONGRESS.—Each Federal property manager
shall, 60 days after the date of enactment of this Act
and every 30 days thereafter, report to Congress specific
information on the number and types of loan modifications
made and the number of actual foreclosures occurring during
the reporting period in accordance with this section.Voted in Oct. 3, 2008, The Emergency Economic Stabilization Act. H. R. 1424, the... more
Banks are reportedly using their bailout money to buy up smaller banks instead of helping homeowners.Banks are reportedly using their bailout money to buy up smaller banks instead of... more
