Real Economy Project

Senator Dodd’s Dilemma: Who to Take to the Ball?

by Mary Bottari — January 19, 2010 - 10:28am
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • On Friday, the Wall Street Journal reported that President Obama's signature financial reform, a Consumer Financial Protection Agency (CFPA), was in trouble in the Senate.

    Senate Banking Chairman Chris Dodd (D-Conn.) was considering dropping the idea of creating an independent, stand-alone consumer protection body, empowered to crack down on banking abuses, in order to get a regulatory revamp passed this year with bipartisan support. Dodd is apparently considering shrinking the CFPA into a division of an already-existing federal agency (no doubt one with a proven track-record of failing consumers.)

    Dodd is faced with a dilemma. Although he introduced a rather strong financial services reform bill in Congress last year -- one which creates an independent CFPA, curtails the powers of the Federal Reserve and tackles many Wall Street abuses -- it appears that big bank lobbyists who have spent millions fighting reform are now chipping away at his bill.

    Too Big to Fail, Not Too Big for Jail

    by Mary Bottari — January 18, 2010 - 3:40pm
  • Topics: Banking, BanksterUSA, Corporations, Economy, Real Economy Project

    • U.S. Attorney General Eric Holder appeared before the Financial Crisis Inquiry Commission today. He cited his strong statutory authority to go after the firms that had a role in the worst economic disaster since the Great Depression. His team was tackling securities fraud, accounting fraud, financial discrimination and fraud related to the stimulus bill. It was an impressive list, but what was not impressive was the first case he touted – Bernie Madoff.

    You remember Bernie. His kids turned him in. It appears that the FBI considers this the high-water mark of criminal detective work.

    Sleepless Nights on Wall Street, Nightmares on Main Street

    by Mary Bottari — January 13, 2010 - 7:05pm
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • The top bankers that were called to testify before the independent Financial Inquiry Crisis Commission in Washington today touched on the drama of the September 2008 financial crisis. They complained of nervous anxiety and sleepless nights. They didn't apologize for a thing, but they did -- to a man -- express their deep appreciation to the American taxpayer for saving their hides.

    So how are the big banks treating those taxpayers these days? Almost every banker touted his firm's voluntary housing loan modification efforts to help families facing foreclosure. Jamie Dimon of JP Morgan Chase, for instance, cited 570,000 new trial loan modifications and 112,000 permanent modifications.

    Murder on the Orient Express?

    by Mary Bottari — January 13, 2010 - 10:50am
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • The independent Financial Crisis Inquiry Commission got underway this morning in Washington. The commission was authorized by Congress to get to the bottom of the causes of the financial crisis and produce an independent report, much like the 9-11 commission.

    The commission sent a strong message by first putting under oath the titans of Wall Street. They didn't pick the subprime mortgage lenders or Fannie Mae or Freddie Mac. They didn't pick the credit rating agencies. They didn't even pick the big housing or investment firms that failed. Instead, they chose the largest firms that survived the crisis and now are profiting off of it due to the extraordinary interventions of the U.S. government.

    Obama Joins the "Repo the Dough" Coalition

    by Mary Bottari — January 11, 2010 - 3:28pm
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • Today the Washington rumor mill sprang into overdrive as word trickled out that the Obama administration was thinking of applying some sort of fee to banks in order to take back bailout dollars and fund deficit reduction. Here at BanksterUSA we are thrilled that the Obama team has joined our "Repo the Dough" campaign and urge it to apply a financial transaction tax to destructive stock market speculation. A one time tax on bank bonuses simply will not suffice.

    Greedwashing on Wall Street

    by Mary Bottari — January 11, 2010 - 9:43am
  • Topics: Banking, BanksterUSA, Corporations, Marketing, Real Economy Project

    • All eyes are on Wall Street this week as the big banks get ready to report their earnings and bonuses. Rebounding banks are preparing to pay out bonuses that rival those of the pre-crisis boom years.

    During the first nine months of 2009, five of the largest banks that received federal aid — Citigroup, Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley — together set aside about $90 billion for compensation.

    To avoid pitchforks and public outrage, most banks are tamping down on the cash payouts and beefing up long-term stock options. One bank is taking an even more novel approach. Dare we call it greedwashing?

    Searching for Pecora

    by Mary Bottari — January 4, 2010 - 12:18pm
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • Almost two years after the Wall Street meltdown collapsed the economy and threw 8 million Americans out of work, the Financial Crisis Inquiry Commission gets underway January 19th in Washington, D.C.

    Will there be a new Ferdinand Pecora to get to the bottom of things?

    The Problem with the Revolving Door - It Brought Us Too-Big-To-Fail

    by Tiffiniy Cheng — December 30, 2009 - 12:16pm
  • Topics: Banking, BanksterUSA, Economy, Real Economy Project

    • Tiffiniy Cheng is guest blogging this week. She is the campaign coordinator for "A New Way Forward" and founder of "Open Congress."

    Bailouts and political connections go hand in hand according to a just released academic study. The study, which was conducted by the Ross School of Business at the University of Michigan researchers, shows concretely that lobbying, campaign contributions, and the finance/federal government revolving door has helped the most damaging banks despite the dangers they pose to our economy.

    Brace for a "Jobless Decade"

    by Mary Bottari — December 28, 2009 - 4:48pm
  • Topics: BanksterUSA, Economy, Real Economy Project

    • By any measure, the last decade was a rotten one. It started with a stolen election and the worst terrorist attack in American history. It is ending this week with the United States mired in two wars and deep into a catastrophic recession.

    It’s hard to imagine that the next decade could be worse, but could it?

    Syndicate content