News Release

Congressional Moves to Protect Consumers and Provide Financial Oversight Good First Step

Jennifer Ettinger — Thu, 22 Oct 2009 13:11:55 -0700

WASHINGTON – Campaign for America's Future co-director Robert Borosage today praised the House Financial Services Committee for taking steps to protect consumers from predatory financial practices by approving the creation of a new Consumer Financial Protection Agency. In praising the legislation, Borosage noted that the bill should be strengthened as it moves through Congress to prevent another economic crisis.

STATEMENT OF ROBERT BOROSAGE

Although the legislation has far to go, the committee created a much-needed independent agency to protect consumers from predatory lending and deceptive practices. Now the House and Senate must strengthen and pass the bill.

Chairman Frank should be complimented for fending off a fierce effort against the legislation by the big banking lobby. They couldn’t kill it, but they did weaken it significantly.

The Committee limited enforcement authority for 98 percent of the nation’s banks, which control 20 percent of assets; exempted auto loan and insurance products; and omitted provisions to enforce important community lending standards. Most damaging, it replaced President Obama's proposed independent oversight board with an advisory committee of financial regulators who failed to protect the American public from Wall Street in the first place.

The House bill is a good first step. It should be strengthened on the floor of the House. It will take a major mobilization to protect it against obstruction in the Senate.

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**NOTE: Media representatives interested in interviewing Campaign for America’s Future co-director Robert Borosage should contact Jenn Ettinger at jettinger@ourfuture.org. **

THOUSANDS OF PROGRESSIVE BLOGGERS, ACTIVISTS TO GATHER IN STEELTOWN FOR “NETROOTS NATION” CONVENTION

Toby Chaudhuri — Wed, 12 Aug 2009 11:50:55 -0700

**Netroots Nation to Feature Straw Poll, Steel Plant Tour, Pirates Stadium Party**

PITTSBURGH, PA. – With more than 1,500 progressive bloggers and activists streaming into Pittsburgh this week, Sen. Bob Casey, D-Pa., joined United Steelworkers president Leo Gerard, Campaign for America’s Future co-director Robert Borosage and Netroots Nation spokesperson Mary Rickles on a conference call today to set the scene and preview this year’s “Netroots Nation” convention.

In addition to major addresses from President Bill Clinton, Gov. Howard Dean, White House senior advisor Valerie Jarrett and a match-up between Sen. Arlen Specter, D-Pa., and Rep. Joe Sestak, D-Pa., the gathering will feature several activities sponsored by the Campaign for America’s Future, including a straw poll, a tour of a modern steel plant and a party with batting practice at Pirates Stadium.

National and international attention is turning to Pittsburgh with the arrival of the Netroots Nation convention, followed next month by the AFL-CIO annual conference and the G-20 Summit. Attention is also turning towards the city’s struggle to forge new jobs in an economy where millions have disappeared.

Pittsburgh’s economic revival is due to a high degree of collaboration between industry, labor and government, according to a new report by the Campaign for America’s Future. The report explains how Pittsburgh is an example of a city that has made the transition from the old to the new economy, citing lessons for the nation.

Sen. Casey, who welcomed delegates to the city for the major gatherings on today’s conference call, said that a specifically designed industrial policy brought Pittsburgh back, not market forces, citing the Campaign for America’s Future’s report.

“Pittsburgh faced challenges as early as the 1950s, but by the 1970s it was losing tens of thousands of jobs,” said Sen. Casey “Pittsburgh had to transition out of that to the economy we have today, which includes a new manufacturing base that is unheralded in the nation. This recovery was the result of deliberate planning. You have to have government leadership but you also have to have corporate leadership and industrial leadership that's willing to work together to give meaning to words like ‘collaboration’ and ‘strategic planning.’”

Gerard, who along with Borosage is setting up this week’s steel mill tour for bloggers and reporters, said that the manufacturing sector in Pittsburgh, which pays much higher than its service counterparts, is defining a national model.

“I take issue with the term Rust Belt. There is no rust,” said Gerard. “The modern steel mill is a very high-tech and space-aged facility. They release a small fraction, less than one-third, of the carbon that a steel mill in China lets loose. Some say we can forget about manufacturing and move to a services economy, but a service economy won't produce good-paying jobs.”

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**NOTE: An electronic copy of the Campaign for America’s Future’s report on Pittsburgh is available online at http://makingitinamerica.org .**

“NETROOTS NATION”
CONVENTION HIGHLIGHTS

THURSDAY, AUG. 13

10:30 a.m. - Bloggers and labor leaders discuss how to hold Wall Street accountable together.

12 p.m. - Bloggers and media representatives tour a modern steel plant.

8 p.m. - President Bill Clinton delivers remarks to thousands of bloggers and activists.

FRIDAY, AUG. 14

9 a.m. - Gov. Howard Dean holds a health care town hall meeting with bloggers.

11 a.m. - Sen. Arlen Specter, D-Pa., and Rep. Joe Sestak, D-Pa., debate key issues.

7 p.m. - Bloggers and activists hold a party and batting practice at Pirates stadium.

SATURDAY, AUG. 15

Straw poll results will be released on Saturday morning.

9 a.m. - White House senior advisor Valerie Jarrett has a conversation with bloggers.

**NOTE: An updated and detailed agenda is available online at http://www.netrootsnation.org/agenda. Media representatives interested in covering the “Netroots Nation” blogger convention, should pre-credential by emailing their name, outlet and phone number to Mary Rickles at mary@netrootsnation.org. Reporters and bloggers interested in participating in the steel plant tour should contact Mike Elk at melk@ourfuture.org and 412-613-8423.**

COALITION VOWS TO BUIILD ON OBAMA'S CALL FOR REAL REGULATORY REFORM

OurFuture.org Staff — Wed, 17 Jun 2009 13:32:46 -0700

Americans for Financial Reform, a national coalition of more than 200 state and local organizations, including the Campaign for America's Future, dedicated to reforming the financial system and rebuilding our economy., released the following statement today in response to President Obama's proposals for financial industry reform.

President Obama has proposed sweeping, important, and positive changes to the ways in which financial markets are regulated.

Real reform means reining in the anything-goes atmosphere that has characterized this era on Wall Street, replacing it with a comprehensive system to police the financial industry and protect the public. To provide real security for the American people this regulatory system must be truly airtight, leaving no room for leaks and loopholes that the hedge funds, derivatives traders and others are already trying to carve out. Congress must ensure that what comes out of the legislative process is not just window dressing.

We are pleased that the President recognizes that real reform also means putting in place a watchdog to ensure that ordinary Americans have the same level of security when they sign on the dotted line for products like home mortgages and credit cards that they rightly expect when buying anything from a toy to a toaster oven.

As the legislative process moves forward, we hope to strengthen and build on the President’s proposal. We will work toward more meaningful reform of credit rating agencies. We will also be fighting for stronger measures than the Administration has put forth to help keep struggling families from losing their homes. Without more effective strategies to keep people in their homes, our nation will continue to face the catastrophe of millions of mortgage foreclosures. We are pleased that the President’s plan calls for the new watchdog agency to work with the Department of Justice to enforce the nation’s civil rights statutes. However, any regulatory reform proposal must include broader measures to further fair housing and ensure that under-served markets will not continue to be incubators for predatory behavior that can ultimately imperil wider markets.

The Administration’s proposal vests the Federal Reserve with many new powers aimed at controlling system-wide risk. To that proposal, Congress must add strong measures to ensure the Federal Reserve is truly independent and responsive to the public. We must open up and democratize the Federal Reserve so that it is publicly accountable.

President Obama has taken an important first step toward restoring integrity and fairness to our financial system, but the battle for reform has only just begun, and we have no illusions about the difficulty of the fight to come. Our principles will only prevail if the voices of the public are heard over those of bankers, traders, mortgage brokers and their armies of lobbyists.

“AMERICA’S FUTURE NOW” STRAW POLL: PROGRESSIVES SEE HEALTH CARE REFORM WITH PUBLIC OPTION AS TOP PRIORITY

Toby Chaudhuri — Wed, 03 Jun 2009 11:08:12 -0700

WASHINGTON – Progressives gathered at this week’s “America’s Future Now” conference found a lot to like in President Obama’s first 100 days, but they are very focused on health care reform as their highest priority, according to a straw poll of participants conducted by Greenberg Quinlan Rosner Research for the Campaign for America’s Future and Democracy Corps. Pollster Stan Greenberg joined Campaign for America’s Future co-director Robert Borosage at the closing session of the three-day conference today to release the poll results.

Forty-three percent of conference-goers said health care reform should be the president’s top priority, with all the other issue responses in the teens or lower. And while participants strongly support the president and his priorities, 63 percent said they will not support a health care plan without a public health insurance option, even if that is the only way to get the plan passed.

Fixing the nation’s broken health care system is the focus of an $82 million push by progressive groups announced earlier this week at the “America’s Future Now” conference. The combined effort is the largest national progressive issue campaign in history, one that was lacking when President Clinton’s health care proposals were defeated by the health care industry and conservative groups 15 years ago.

The straw poll also showed that while two thirds of conference attendees -- 66 percent -- favor congressional investigations into how the Bush Administration handled terrorist suspects, an even stronger majority -- 81 percent -- would like to see Congress investigate the fraud and excesses of Wall Street that led to the financial crisis.

Not surprisingly, Rush Limbaugh is incredibly unpopular with “America’s Future Now” conference participants. Greenberg said Limbaugh’s favorability rating -- with only 3 percent of participants rating him favorably -- represents the lowest personal rating of any poll he has conducted.

The straw poll also surveyed the popularity of key media figures. Jon Stewart bested Stephen Colbert in the favorability battery, with 83 percent of attendees rating Stewart favorably compared to 79 percent who did so for Colbert. Rachel Maddow was viewed more favorably than Keith Olbermann, with 70 and 68 percent rating Maddow and Olbermann warmly respectively.

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**NOTE: Media representatives interested in detailed straw poll results should visit www.ourfuture.org or www.democracycorps.com. Slides are available upon request. **

PROGRESSIVE GROUPS TO SPEND MORE THAN $82 MILLION TO ENSURE REAL HEALTH CARE REFORM PASSES THIS YEAR

Toby Chaudhuri — Tue, 02 Jun 2009 11:14:14 -0700

WASHINGTON – Progressive groups are poised to spend more than $82 million to support President Obama's goal of achieving quality, affordable health care for all this year, according to leaders gathered today at the “America’s Future Now” conference in Washington.

Participants in the effort include the Health Care for America Now campaign; the two main labor federations, the AFL-CIO and Change To Win; as well as MoveOn.org, Democracy for America and mobilization groups representing people of color, women and young people. The various organizations serve different functions, with the bulk of the spending financing advertising and grassroots organizing on- and off-line across the country.

The collective effort involves the more than 1,000 organizations that are part of Health Care for America Now, representing over 30 million members committed to winning a guarantee of quality, affordable health care for all this year. It is the largest national progressive issue campaign in history, one that was lacking when President Clinton’s health care proposals were defeated by the health care industry and conservative groups more than a decade ago.

Gov. Howard Dean, who recently became chairman of the board of the Progressive Book Club, joined organizers to announce details on Monday at a news conference sponsored by the Campaign for America’s Future. Gov. Dean said the progress made over the last several years and the election of President Obama are just the beginning.

“Over the past few years, we have worked together to build a progressive infrastructure and a movement that helped to elect President Obama and begin to undo the damage of the last eight years. But it was just the beginning,” said Gov. Dean. “As the health care reform debate makes clear, America needs a strong progressive movement, now is not the time to become complacent.”

Campaign for America’s Future co-director Robert Borosage said that while conservatives are increasingly splintered and isolated, progressive groups are coordinating their efforts and mobilizing independently to fight special interests standing in the way of President Obama’s bold agenda.

“While the conservative coalition has collapsed, progressives have continued to build and expand,” said Borosage. “We are both more unified and better mobilized than ever.”

Health Care for America Now national campaign manager Richard Kirsch said his coalition launched last summer across the country with the notion that 2009 was going to be the year the nation could finally achieve quality, affordable health care for all.

“We knew we couldn't win health care reform in 2008, but we knew we could lose it if we didn't lay the groundwork for the very moment we're in right now,” said Kirsch. “We have the momentum for real change, and with the commitment of the president and Democratic leadership in Congress, we know we can be stronger and louder than the special interests who make money off the status quo and would have any reform continue to put their profits before people's health.”

The effort comes at a time when Americans hold progressive positions on an increasingly broad range of controversial issues, according to a recent study from the Pew Research Center. Also, key constituencies that favor progressives are growing larger, according to a report released last week by the Campaign for America’s Future and Media Matters for America. As a result, progressives are seizing their greatest opportunity for change in a generation.

Change to Win chair Anna Burger introduced results from a new survey conducted by pollster Celinda Lake at today's news conference. The poll conducted for Change to Win shows that working people want government to invest in health care, good jobs and educational opportunity.

Burger said that most Americans blame corporate greed and its stranglehold on government for the decline of the American Dream. Working Americans reject the right-wing view and want positive government action on renewing the American Dream.

"Working Americans are looking for economic security, including jobs that pay a living wage, a secure retirement and opportunity for the next generation to succeed," said Burger.

"Comprehensive health care reform lies at the heart of the American Dream, and without it, the Dream is unobtainable. We're organizing on all fronts to make this a dream a reality for all of America's workers."

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CAMPAIGN FOR AMERICA’S FUTURE APPLAUDS INTRODUCTION OF NATIONAL INFRASTRUCTURE DEVELOPMENT BANK ACT

Rachel Perrone — Wed, 20 May 2009 16:09:51 -0700

WASHINGTON – The Campaign for America’s Future today cheered the introduction of the “National Infrastructure Development Bank Act of 2009,” by Reps. Keith Ellison, D-Minn., and Rosa DeLauro, D-Conn. This legislation would create a development bank to finance infrastructure projects in the realm of transportation, the environment, energy and telecommunications. Through federal funding and private investment, a national infrastructure development bank would offer urgently needed financial support to local and state governments, and address our nation’s investment deficit.

STATEMENT OF ROBERT BOROSAGE,
CO-DIRECTOR, CAMPAIGN FOR AMERICA’S FUTURE

This legislation will make an important contribution to addressing America’s investment deficit. We have always been a nation that has looked to the future by investing in our land and in our people. Historically, we directed roughly 8 percent of our gross domestic product to long-term investments, and that investment paid off. Public investment built the interstate highway system and transcontinental railroad, universal primary education and public universities, and much more.

But since then, we have adopted a short-term “pay-as-you-go” mentality that stops long range investment before it begins. Nowadays, public investment as a percentage of GDP has dropped below 4 percent. Our post-World War II infrastructure is decaying and we aren’t replacing it. Levees are overflowing, water mains are bursting and our roads are potholed. Instead of building for the future, we sit in traffic and worry about budget deficits a decade from now.

The National Infrastructure Investment Act would help address these problems by creating an instrument that can help finance long-range investments with public and private capital. . Infrastructure investments can create jobs in the short term and economic growth in the long term, addressing both our current investment deficit and next decade’s budget deficit at the same time. This bill supports long-term growth that will keep America competitive globally and improve our way of life.

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**The Campaign for America’s Future report, “The Investment Deficit in America,” is available at: http://www.ourfuture.org/report/investment-deficit.**

CAMPAIGN FOR AMERICA’S FUTURE HAILS CREDIT CARD LEGISLATION AS A STEP IN THE RIGHT DIRECTION

Isaiah J. Poole — Tue, 19 May 2009 12:03:49 -0700

WASHINGTON – The Campaign for America’s Future today applauded the Senate for overwhelmingly passing H.R. 627, the Credit Cardholders’ Bill of Rights Act of 2009 by a vote of 90-5. Sponsored by Senator Chris Dodd (D – Conn.), this bill would amend the Consumer Credit Protection Act to ban abusive credit practices, improve consumer discloses, and require more transparent practices in the credit card industry. The companion bill, H.R. 627, sponsored by Rep. Carolyn Maloney (D – New York), was passed by the House on April 30 by a vote of 357-70.

STATEMENT OF ROBERT BOROSAGE, CO-DIRECTOR, CAMPAIGN FOR AMERICA’S FUTURE

The Credit Cardholders’ Bill of Rights Act of 2009 will restore some much-needed fairness to a credit card industry that is largely out of control. It prevents credit card companies from arbitrarily hiking interest rates, applying newly-increased interest rates to prior existing balances; imposing major penalties for minor transgressions; imposing late fees even when it is proven that payment was mailed on time; imposing finance charges on balances repaid on time; and marketing and issuing cards to young people who are clearly unable to repay debt.

For far too long, credit card companies have exploited their own customers with misleading information and usurious interest rates. Usury laws are designed to set fair and reasonable limits to the interest rates credit cards can charge customers. But beginning in the 1980s, conservatives began chipping away at these laws, and widespread deregulation has left customers vulnerable to unscrupulous credit card companies.

But while this measure is a strong first step toward restoring basic fairness and transparency in credit card industry practices, we urge Congress to continue this work. For example, this legislation fails to place a cap on interest rates, which is vital to protecting consumers. In this unstable economy, we urge Congress to enact additional legislation aimed at protecting the average American from unscrupulous lenders.

TRUSTEES REPORT UNDERLINES PRESSING NEED FOR HEALTH CARE REFORM

Rachel Perrone — Tue, 12 May 2009 12:19:12 -0700

Robert Borosage: Progressives must push back on conservative attempts to cut entitlements, focus on real solutions.

WASHINGTON – In response to today’s release of the annual Social Security & Medicare Trustees report, Robert Borosage, co-director of the Campaign for America’s Future, urged Congress not to bend to conservative hysteria, but to address the real root of the problem – our broken health care system and its out-of-control costs.

STATEMENT OF ROBERT BOROSAGE, CO-DIRECTOR, CAMPAIGN FOR AMERICA’S FUTURE

The Trustees report reveals what we already knew: Social Security and Medicare lose revenue when unemployment is rising, just as they are strengthened when the economy is growing. Reviving the economy must be our first priority.

Conservatives will no doubt seek to use the report to raise alarms about Social Security and Medicare, and call for bipartisan efforts to reduce the benefits. At least, given the collapse of the stock market, they’ve shelved calls for privatizing Social Security for the time being. But their focus on entitlements is equally bad policy.

Everyone should be clear. America does not have an “entitlements problem” Its structural long-term debt problems are entirely a problem of soaring health care costs. Get health care costs under control, and we have no long-term structural problem. Fail to get health care costs under control, and families, companies, state governments and the federal government will face soaring debts. President Obama is exactly right: the priority must be to fix our broken health care system.

Focusing on cutting entitlements not only gets the problem wrong, it makes the problem worse. Americans have lost an estimated $13 trillion in wealth in the last two years, with most of the losses suffered by those 45 and older. Retirement security has been shattered. Half of all workers have no retirement plan at all through their jobs, and the remainder increasingly have 401(k)s that just got hit with significant losses from already insufficient savings. Many counted on their homes as a chief source of savings, but can no longer on that. The one source of security is the floor provided by Social Security. The last thing any responsible leader should do is recommend cutting those benefits or raising the retirement age – again. If anything, this downturn is a good time to raise Social Security benefits to help lift America from the downturn.

The president and Congress should focus on the challenges we face. Revive the economy, and restructure it for sustainable growth. Fix our broken health care system. Targeting entitlements like Social Security and Medicare is a diversion, not an answer.

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**NOTE: For more information, visit:
http://www.ourfuture.org/blog-entry/2009052012/stop-entitlement-crisis-fear-mongering.**

HOUSE DEMOCRATIC LEADER SHOULD NOT JOIN REPUBLICANS IN TARGETING SOCIAL SECURITY, SAYS PROGRESSIVE LEADER

Toby Chaudhuri — Fri, 08 May 2009 07:49:31 -0700

WASHINGTON – Campaign for America’s Future co-director Robert Borosage today said that House Majority Leader Steny Hoyer will get burned if he insists on stepping on Social Security, the “third rail of American politics.” .

Rep. Hoyer said on Wednesday that Congress should change the Social Security system to “bring in more revenues,” “restrain the growth of benefits” and possibly “raise the retirement age,” Rep. Hoyer proposed the creation of a special commission to develop Social Security legislation detailing cuts which would receive fast track treatment – an up-or-down vote in both chambers of Congress with no amendments.

STATEMENT OF ROBERT BOROSAGE

Rep. Hoyer wants to put cuts in Social Security benefits on the table. He argues that cutting Social Security benefits will help address America’s long term deficits. This is bad policy and worse politics.

In reality, America does not have an entitlements problem. It has a broken health care system. The entirety of our long term debt problem is caused by soaring health care costs.

Social Security has a surplus. That means today’s workers have already prepaid their retirement. The Congressional Budget Office projects that Social Security, by drawing down its trust fund, will be able to pay benefits until the year 2049 with no changes whatsoever. Fixing health care means taking on the insurance companies, no easy task. But that is no reason to go after Social Security which is not the cause of the problem and cannot provide the solution.

American workers have paid a regressive Social Security payroll tax throughout their lives with the understanding that they’d get a secure floor for their retirement. The payroll tax was increased in 1983 with the understanding that a surplus would be built up and then paid down to pay for the boomers. A deal is a deal. It would be a gross injustice for the nation to break its contract with workers by increasing the payroll tax on average Americans or cutting their Social Security benefits. Congress may have squandered that money on tax cuts to the wealthy or bailouts of the banks. That may require progressive tax reform. It does not require shafting the workers who played by the rules.

This is also ruinous politics. Americans have lost more than $15 trillion in housing and stock wealth, with the great bulk of the losses being incurred by people age 45 and older. At a time when Americans are shattered by the loss in their retirement savings, Rep. Hoyer would add to their insecurity by calling for cutting the one benefit that is backed by the full faith and credit of the U.S. government – Social Security.

To suggest that the retirement age be lifted suggests Rep. Hoyer simply is out of touch. Most people will now have to work far past retirement age simply to make ends meet. What Rep. Hoyer is suggesting is that he will deprive them of any retirement support during that period. It is hard to imagine anything more destructive of Democrats’ claim to be the party of working Americans than to propose pushing that reform through the Congress on a fast track.

Retirement security is an essential part of the American Dream. Today, less than half of workers participate in any retirement plan at work; only a fraction of them have access to a traditional kind of pension that guarantees income in retirement. The rest have savings in their homes and retirement accounts that have just been devastated in the Great Recession. Democrats should be talking about increasing Social Security payments to help lift the economy out of its decline, not reducing them to pay off long term deficits that are caused by our broken health care system. Keep on this track, Rep. Hoyer, and you will get badly burned

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DON’T BELIEVE THE HYPE: CAMPAIGN FOR AMERICA’S FUTURE SAYS BANKS’ EARNINGS REPORTS UNDERLINE NEED FOR INDEPENDENT INVESTIGATION

Rachel Perrone — Tue, 21 Apr 2009 07:42:11 -0700

WASHINGTON – Recent earnings reports from Citigroup, Goldman Sachs and Wells Fargo showed revenue for the first part of January, but were stark lessons in the ways accounting rules can be employed to obfuscate losses.

On Friday, Citigroup reported net income for the first quarter of 2009 of $1.6 billion, but further examination of their financial statements indicates that much if not all of their profits were due to changes to their accounting methods – not actual operational improvement.

Goldman Sachs switched its reporting periods in the process of transitioning from an investment firm to a bank. In doing so, it was able to drop the month of December, which it loaded up with large losses not captured in any of its reporting.

Wells Fargo announced a large first quarter profit two weeks before publishing an actual 2008 earnings report, leaving even its investors scratching their heads over how they added up the numbers.

STATEMENT OF ROBERT BOROSAGE, CO-DIRECTOR, CAMPAIGN FOR AMERICA’S FUTURE

These major banks are carrying toxic paper that they don’t want to mark down, for fear it would reveal just how insolvent or close to insolvent they are. They understandably will do what they can to hide the reality. In recent weeks, we’ve seen accounting standards diluted to aid them in that effort, and now we see accounting dodges to suggest they are on the way back. Meanwhile, actual lending continues to decline.

This is another reason why we need an independent panel with subpoena powers to investigate the causes and the scope of the financial collapse. And we need government to step in and demand an independent investigation of banks that are in trouble. Surely we’ve learned by now that self-reporting, like the self-regulation that got us into this mess, will not get it done.

The Congressional Oversight Panel, currently headed by Elizabeth Warren, is a step in the right direction. We support her efforts to represent consumers, small businesses and taxpayers by asking the hard questions. We applaud her efforts to make the bailout more transparent, and to evaluate the policy and its alternatives. But, shorn of the power to subpoena documents, COP illustrates exactly why a more forceful investigation is needed.