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New York's JPMorgan Chase Lawsuit: Are the Critics Right? by Richard (RJ) Eskow, OurFuture.org | October 28, 2012
New York Attorney General Eric Schneiderman has filed a lawsuit against JPMorgan Chase over allegations of wholesale fraud by Bear Stearns, which JPM acquired during the 2008 financial crisis. The lawsuit's critics, including Rep. read more »New York's JPMorgan Chase Lawsuit: Are the Critics Right? by Richard (RJ) Eskow, OurFuture.org | October 28, 2012
New York Attorney General Eric Schneiderman has filed a lawsuit against JPMorgan Chase over allegations of wholesale fraud by Bear Stearns, which JPM acquired during the 2008 financial crisis. The lawsuit's critics, including Rep. read more »You? Fix The Debt? You Gotta Be Kidding by Isaiah J. Poole, OurFuture.org | October 26, 2012
Americans for Tax Fairness does a pretty devastating take-down of the group of CEOs who were at the New York Stock Exchange Thursday ringing the opening bell under the banner "Fix the Debt." Their picture makes the point: read more »Why Freddie Mac Resisted Refis by Jesse Eisinger, propublica.org | October 25, 2012
Freddie Mac, the taxpayer-owned mortgage giant, made it harder for millions of Americans to refinance their high-interest-rate mortgages for fear it would cut into company profits, present and former Freddie Mac officials disclosed in recent interviews. In closed door meetings, two Republican-leaning board members and at least one executive resisted a mass refi policy for an additional reason, according to the interviews: They regarded it as a backdoor economic stimulus. Freddie's policy was financially brutal: During the worst years of the Great Recession, when homeowners most needed the savings they could have gotten from refinancing to lower interest rates, Freddie helped keep millions of borrowers locked in high-interest-rate mortgages. read more »We Must Stop Protecting The Rich From Market Forces by Ha-Joon Chang, The Guardian | October 25, 2012
Gore Vidal, the recently demised American writer, once famously quipped that the US economic system is "free enterprise for the poor and socialism for the rich". Since the outbreak of the global financial crisis in 2008, not only has the US lived up to Vidal's caricature but the whole of the rich capitalist world has become more "American". The poor are increasingly exposed to market forces, with tougher conditions on the diminishing state protection they get, while the rich have unprecedented levels of protection from the state, with virtually no strings attached. read more »How Wall Street Won the Election Long Before The First Vote Was Cast by Nomi Prims, alternet.org | October 24, 2012
Before the campaign contributors lavished billions of dollars on their favorite candidate; and long after they toast their winner or drink to forget their loser, Wall Street was already primed to continue its reign over the economy. For, after three debates (well, four), when it comes to banking, finance, and the ongoing subsidization of Wall Street, both presidential candidates and their parties’ attitudes toward the banking sector is similar – i.e. it must be preserved – as is – at all costs, rhetoric to the contrary, aside.Obama hasn’t brought ‘sweeping reform’ upon the Establishment Banks, nor does Romney need to exude deregulatory babble, because nothing structurally substantive has been done to harness the biggest banks of the financial sector, enabled, as they are, by entities from the SEC to the Fed to the Treasury Department to the White House. read more »Unfortunately, The Fiscal Cliff Joke Is On Us by Stan Collender, OurFuture.org | October 23, 2012
Originally published at Capital Gains and Games. Have you heard the one about the big-name financial services CEOs who last week released a letter to Congress and the president demanding they do whatever it takes to avoid the fiscal cliff? read more »Revolving Doors Matter by James Kwak, baselinescenario.com | October 23, 2012
It is common fare for people like me to point disapprovingly to the revolving door between business and government, which ensures that every Treasury Department is well stocked with representatives of Goldman Sachs. In 13 Bankers, the revolving door was one of the three major channels through which the financial sector influenced government policy, alongside campaign contributions and the ideology of finance. The counterargument comes in various forms: people like Robert Rubin and Henry Paulson are dedicated civil servants who wouldn’t favor their firms or their industries, the government needs people with appropriate industry experience, etc. It is certainly possible that industry experts provide valuable skills and experience to the government. But that value comes with a cost; put another way, it’s not just the public good that benefits read more »The Danger of Wealth at the Top by Paul R. Pillar, consortiumnews.com | October 19, 2012
America’s growth-inhibiting inequality is making it less able to compete, and less able to serve as an exemplar for others, in the global arena. Ideologically driven myopia, which mistakenly cherishes anything in the private sector status quo, even when it is destructive of free markets and vigorous competition, and disdains anything government does, even when it is necessary for economic growth and the fullest use of human capital, is needlessly weakening the relative as well as absolute position of the United States. read more »How Obama Can Smoke Out Mitt: Call for Breaking Up the Biggest Banks, and Resurrecting Glass-Steagall by Robert B. Reich, robertreich.org | October 19, 2012
President Obama should propose that the nation’s biggest banks be broken up and their size capped, and that the Glass-Steagall Act be resurrected. It’s good policy, and it would smoke out Mitt Romney as being of, by, and for Wall Street — and not on the side of average Americans. It would also remind America that five years ago Wall Street’s excesses almost ruined the economy. Bankers, hedge-fund managers, and private-equity traders speculated on the upside, then shorted on the downside — in a vast zero-sum game that resulted in the largest transfer of wealth from average Americans to financial elites ever witnessed in this nation’s history. read more »
The Latest
Citigroup Says It Didn't Use 'Robo-Signers,' Still Faces Increased Risk Due to Sour Mortgages, Huffington Post | October 19, 2010
Top Citigroup executives sought to assure investors and the public Monday that the firm's foreclosure process and its handling of key documents in securitizing home mortgages is "sound," despite growing concerns over how lenders may have skirted the law when bundling home mortgages, selling them and kicking delinquent borrowers out of their home.
Don't Believe The Bank Lobby: Foreclosure Fraud Is Bad For Homeowners And The Economy, ourfuture.org | October 19, 2010
The bank lobby is spreading a host of silly myths about the foreclosure fraud outbreak in an effort to downplay the scandal and minimize concerns over potential bank losses that have emerged in the blogosphere. Housing Wire’s Paul Jackson spouts most of them in his post today. more »
The Feds New Bubble (Masquerading As A Jobs Program), tpmcafe.talkingpointsmemo.com | October 19, 2010
Wall Street Money Flows to GOP, blogs.wsj.com | August 11, 2010
Republicans candidates collected about 70% of the political donations from the employees and political accounts of financial services firms in June, the most recent month in which records are available, according to the nonpartisan Center for Responsive Politics. That’s a reversal from March, when Democrats collected 70% of the donations from Wall Street.
The AIG Bailout Scandal , The Nation | August 10, 2010
The government’s $182 billion bailout of insurance giant AIG should be seen as the Rosetta Stone for understanding the financial crisis and its costly aftermath. more »
Democrats Seek Allies in U.S. Consumer Agency Debate, Reuters | August 10, 2010
Nominees Will be Crucial in Enactment of New Wall Street Law, thehill.com | August 10, 2010
President Obama will have the opportunity over the next year to dramatically remake the leadership at the nation’s financial regulators. The president’s appointments on bank regulation, insurance rules and consumer financial protection will have broad power to carry out the 2,300-page financial overhaul enacted by Obama last month.
Basel Capital Rules May Prompt Banks to Shrink Trading, OCC's Dugan Says, bloomberg.com | August 5, 2010
The new rules being negotiated by regulators in the Basel Committee on Banking Supervision would have a greater impact on the firms’ so-called trading books, which include stocks, bonds and other securities, Dugan said in an interview. Loans and other debt held until maturity in their banking books would be less affected.
Bank Failures Up 5 More to 108; Florida’s Tally at 20, ecreditdaily.com | August 3, 2010
Dodd, Frank Plan Congressional Hearings on Basel Bank-Capital Regulations, bloomberg.com | July 29, 2010
Christopher Dodd and Barney Frank, authors of the U.S. financial overhaul, plan hearings on the status of global talks to revise bank-capital standards amid worries that proposed rules are being watered down. more »
