News & Comment
Blogs and Opinion
Running Citigroup Without Subsidies by Simon Johnson, economix.blogs.nytimes.com | October 18, 2012
On Tuesday, Vikram S. Pandit announced his resignation as the chief executive of Citigroup. He will also leave its board. Joining him in departing the company immediately is John P. Havens, the chief operating officer, who was already scheduled to retire at the end of the year. Michael L. Corbat, the new chief executive, faces the prospect of running Citigroup without the huge government subsidies to which the company has become accustomed. He could make himself into a hero to shareholders by breaking Citigroup into smaller, simpler and more dynamic companies that would be easier to manage. read more »Mitt Romney's Bailout Bonanza by Greg Palast, The Nation | October 18, 2012
Mitt Romney’s opposition to the auto bailout has haunted him on the campaign trail, especially in Rust Belt states like Ohio. There, in September, the Obama campaign launched television ads blasting Romney’s November 2008 New York Times op-ed, “Let Detroit Go Bankrupt.” But Romney has done a good job of concealing, until now, the fact that he and his wife, Ann, personally gained at least $15.3 million from the bailout—and a few of Romney’s most important Wall Street donors made more than $4 billion. Their gains, and the Romneys’, were astronomical—more than 3,000 percent on their investment. It all starts with Delphi Automotive, a former General Motors subsidiary whose auto parts remain essential to GM’s production lines. read more »"47 Percent" Host and Get-Rich-Quick Schemers Holding Romney Fundraisers by Andy Kroll, feedproxy.google.com | October 18, 2012
In a move that brings the Romney camp precariously close to the location of the candidate's 47 percent blunder, the campaign is scheduled to rake in contributions at three invite-only fundraisers in Boca Raton, Florida. One of the hosts for these events is Marc Leder, the controversial private equity fund manager who gained notoriety in 2011 for a bacchanalian party he threw in the Hamptons. Leder held the $50,000-per-plate fundraiser at his Boca mansion in May where Romney delivered his "47 percent" rant. But he's not the only member of the host committee with baggage. The organizers of this big-dollar fundraising spree include Mike and Irene Milin, a husband-wife team who have made a career out of peddling get-rich-quick schemes that state attorneys general have blasted as "deceptive," "unconscionable," and "illegal." read more »Direct Democracy, for Billionaires by David Callahan, prospect.org | October 18, 2012
Over a century ago, progressive reformers were deeply worried about how wealthy interests had hijacked American politics populating state legislatures with cronies who did as they were told and otherwise steamrolled the will of the people. To level the playing field, reformers worked to create mechanisms for direct democracy through state referendum and ballot initiatives, allowing voters to bypass corrupted political systems. Now, in a classic case of unintended consequences, these mechanisms for popular power are routinely used by the rich to change state laws—or try to, anyway. Regardless of what the rich want, the ability of a single wealthy person to wield so much influence over a state's political agenda is disturbing. And this year it is worse than ever, with more than a 170 ballot initiatives before voters in November. read more »For the Unemployed, Romney's Debate Was Full of "Wind Jobs" by Richard (RJ) Eskow, OurFuture.org | October 17, 2012
Mitt Romney's "binder full of women" comment has gone viral, which is pretty entertaining but has had the unfortunate side effect of crowding the phrase "wind jobs." That's a real loss, because that term could become a very useful part of our political vocabulary. read more »Mitt's Rules: "He does like pranks but he doesn't like to get pranked." by Digby , OurFuture.org | October 17, 2012
Michael Moore points out that Romney proved last night that he plays by different rules. Here's the president making the claim: read more »Student Loan Mimics Subprime Mortgage Industry by Natasha Leonard, salon.com | October 17, 2012
For many months, writers, commentators, economists and activists have argued that the student loan industry looks all too much like the subprime mortgage industry did on the brink of its collapse. On Tuesday, the Consumer Financial Protection Bureau admitted the same again. According to the government watchdog’s annual report, “Student loan borrower stories of detours and dead ends with their servicers bear an uncanny resemblance to problematic practices uncovered in the mortgage servicing business.” The student lending practices directly mimic the risky lending underpinning the housing crisis: private lenders giving out loans without considering whether borrowers would repay, then bundling and reselling the loans to investors to avoid losing money when students default. read more »Mitt Romney: The Great Deformer by David Stockman, thedailybeast.com | October 17, 2012
Bain Capital is a product of the Great Deformation. It has garnered fabulous winnings through leveraged speculation in financial markets that have been perverted and deformed by decades of money printing and Wall Street coddling by the Fed. So Bain’s billions of profits were not rewards for capitalist creation; they were mainly windfalls collected from gambling in markets that were rigged to rise. Nevertheless, Mitt Romney claims that his essential qualification to be president is grounded in his 15 years as head of Bain Capital, from 1984 through early 1999. Except Mitt Romney was not a businessman; he was a master financial speculator who bought, sold, flipped, and stripped businesses. That is the modus operandi of the leveraged-buyout business, and in an honest free-market economy, there wouldn’t be much scope for it because it creates little of economic value. read more »The Dirty Little Secret of Private Equity Profits by Jim Hightower, creators.com | October 17, 2012
Today, for the first time, I am officially notifying the honchos of Bain Capital, Blackstone Group, Carlyle Group, Kohlberg Kravis Roberts and other big-time private equity funds that I am available. My little company, Saddle Burr Productions, can be had. For a price. I publish this notice in response to a recent news item revealing that these firms have a unique and perplexing problem: They have too much money on hand. In all, they're holding a cool trillion dollars that super-rich speculators, banks and others have entrusted to them. Private equity funds are corporate predators that borrow huge sums from these richies, using the cash to buy out targeted corporations, dismantle them and sell off the parts to make a fat profit for the investors and themselves. The problem is that, under the rules of this high-stakes casino game, the firms have to spend their borrowed money by a set time — or give it back. And the clock is ticking. read more »How American And British Workers Can Fight For A Fairer Economic System by Damon Silvers, The Guardian | October 16, 2012
This weekend, the British labor movement will be marching in London for a future that works. Two weeks later, in the United States millions of workers and their unions will be mobilizing for our national election in critical states such as Ohio, Massachusetts and Wisconsin. These mobilizations may not seem surprising, but behind them lies a serious rethinking of the economic and political strategy on labor issues in both countries. It was the UK and the U.S. that gave birth to the economic ideas and the financial practices that led to the global economic crisis. Five years into the crisis, workers in both countries have paid a terrible price through lost jobs and incomes, while the incomes and assets of the wealthiest in both countries have largely recovered to their pre-crisis levels. But we have learned a few things from this experience. read more »
The Latest
How 12 Multinational Corporations Avoid Paying Taxes, alternet.org | April 20, 2011
By Julianne Escobedo Shepherd, Alternet
Over the past month, General Electric has been held up as the pinnacle of corporate vampirism –– the world’s largest corporation in the world’s lowest tax bracke more »
Buying Government: Congressional Mergers and Acquisitions, Huffington Post | April 17, 2011
WSJ: Banks Hit for Credit Union Ills , The Wall Street Journal | March 23, 2011
In one of the broadest accusations that Wall Street helped cripple financial institutions during the crisis, the National Credit Union Administration, or NCUA, has threatened to sue several investment banks unless they refund over $50 billion of mortgage-backed securities sold to the five institutions, called wholesale credit unions.
Not Paying Tax: How Corporations Have Mastered the Art, alternet.org | February 23, 2011
Those official and theoretical tax obligations have been used to support conservatives' claims that corporations pay half or more of their profits to federal, state and local levels of government combined. However, because of loopholes, the truth is very different. more »
Barclays: £11.6bn profit, 1% tax, The Guardian | February 19, 2011
Learning To Walk: Fear, Shame And Your Underwater Mortgage, Huffington Post | February 4, 2011
Crisis Panel: Wall Street Appears To Have Violated Federal Securities Law, Huffington Post | January 28, 2011
JP Morgan Boss - Dimon - remarked recently at Davos it was time to "stop denigrating banks".
I disagree.
Were he illegally thrown out of his home by a ruthless immoral bank and communicating this wisdom while living under a plastic sheet in America's growing third world style shanty towns he and people like him might have a shred of credibility. more »
Rudolf Elmer to hand over rich and famous offshore banking secrets, The Guardian | January 16, 2011
Rudolf Elms wants to educate us with the help of Wikileaks.
Now assuming he makes it to the Frontline Club in London with the damning CDs in his sweaty palms we are going to have a ring side seat at some serious scrutiny of the mega-rich. Corruption, tax evasion, general gratuitous abuse of civilised business norms. Who knows what the coming weeks will bring.
Will he make it?
Robert Borosage is quoted in The Washington Post on Wall Street's Influence in the White House, The Washington Post | January 6, 2011
Wall Street ties complicate the politically touchy search for economic adviser
By Peter Wallsten and Perry Bacon Jr.
Washington Post Staff Writers
Sunday, January 2, 2011; 7:32 PMPresident Obama is expected to name a new chief economic adviser as early as this week, but the months-long search process has proven difficult and politically touchy...... more »
Roger Hickey quoted in USA Today, USA Today | January 6, 2011
