On September 15, the fifth anniversary of the collapse of Lehman Brothers, progressives toasted a victory.
True, thanks to Congressional timidity, the biggest banks have only gotten bigger since the financial crisis five years ago, and the men (yes, mostly men) in charge of them are mostly still in charge. But Larry Summers, the architect of a good chunk of the deregulation that set the stage for the crisis in the first place, had withdrawn his name from consideration to be chair of the Federal Reserve, thanks to a populist uprising within the Democratic Party.
Three and a half years have passed since the afternoon when the stock markets went into a trillion-dollar free fall and just as suddenly reversed course, recovering 80 percent of that loss. It all happened in less than 45 minutes.
The CATO Institute styles itself as the nation's leading defender of personal liberty, but don't count on these libertarians to watch your back in the face of any threats you may face from powerful private actors. No, CATO is only worried about threats posed by public entities.
How taxpayers are bankrolling the paychecks of already-wealthy executives instead of supporting more livable wages for American workers struggling to get by.
If you're going to have a raucous, costumed march in New York City, Midtown makes for a great setting. Nurses and HIV activists in Robin Hood hats took the streets yesterday, blocking traffic as they called for a financial transaction tax to fully fund healthcare and other public services. Chants of “People, not profits! Medicare for all!” filled rush-hour streets as business-suited professionals dodged through the crowds.
Five years after the fall of Lehman Brothers and the worst financial crisis since 1929, one thing seems certain: another meltdown of the financial system will eventually happen. Why? Because we still haven't fixed many of the problems that led to the last crisis.
The standard rap against regulation is that government uses a meat cleaver to clean up problems in the private sector that are better tackled with more nuance.
Yet regulation—or the threat of it—often serves to spur smart self-regulation that wouldn't otherwise occur. You want to see a scalpel at work? Wave around a meat cleaver.
A case in point is how banks are getting more serious about addressing consumer complaints now that the Consumer Financial Protection Bureau has created a database of complaints about banks and other financial institutions.
Blythe Masters is the most recognizable woman on Wall Street—and arguably its most resilient. At 44, she heads the largest commodities trading operation at the largest bank in the U.S., JPMorgan Chase (JPM). In the mid-1990s she developed and marketed credit derivatives, which rapidly became a new wonder of high finance.
After a marathon hearing that wrapped up in the wee hours of Wednesday morning, the City Council of Richmond, Calif., voted to allow the use of eminent domain to seize underwater mortgages, becoming the first city in the nation to take such a concrete step toward the novel and risky strategy for helping people avoid foreclosure.
President Obama met with the nation’s top financial regulators last week, to urge for rulings associated with the Dodd-Frank Wall Street Reform law passed more than three years ago. It was the first time the president convened a sit down with each regulator since 2011.
According to a White House statement, Obama “stressed the need to expeditiously finish implementing the critical remaining portions of Wall Street Reform to ensure we are able to prevent the type of financial harm that lead to the Great Recession from ever happening again.” [...]
"Not only the absence of oppression but the presence of opportunity"
In his speech at the Lincoln Memorial the President movingly honored the sacrifice and commitment of the people who marched on Washington fifty years ago today. He was emphatic in noting that the progress has been immense, an accomplishment that belongs not only to the leaders of the movement but the ordinary people who “never appeared in the history books.”
On Friday, Paul Krugman dealt with financial market price bubbles, focusing specifically on emerging markets. He takes on the issue of bubble creation as a result of aggressive Fed loose money policy of the recent past. He correctly points out that the emerging markets situation is really one of a series of bubbles (commercial real estate, Asian securities, dot-com, residential real estate), referred to by George Soros as a “super bubble,” that has roiled through the economy since the 1980s.
The post-recession party line at the American Bankers Association (ABA) is something like, “Hey Jane/Joe Briefcase. We're just as mad at gosh darn Wall Street as anyone. But only some bankers are evil. A lot of us are honest and work hard, just like you.” Maybe. But this isn’t a reason to lose track of ABA’s political agenda and who pays to set it: Wall Street, coincidentally.
The huge trading losses suffered by JP Morgan last year—and the cover-up of those losses—stand as just one example of that giant bank's long record of excess, criminality, and deception.
And when you think of who should be held accountable for the London Whale fiasco, one name comes to mind. It's a name that should be on the lips of every regulator and ordinary citizen who wants justice for years of financial malfeasance by JP Morgan.
Imagine Michael Bloomberg being stopped on the street by police and ordered in contemptuous tones to spread his arms and legs wide and lean over the hood of a car so he could be patted down.
New York City’s billionaire mayor would be outraged, to say the least, and so would his constituents. But such humiliating treatment by the police has been a daily reality for staggering numbers of young black and Latino New Yorkers whose only crime has been waking up each morning in the wrong colored skin.
When politics is dominated by the wealthy, the interests of the wealthy are advanced while the interests of lower income and working families are ignored.
In the absence of federal leadership, states are taking the lead in the fight against climate change. Maryland Governor Martin O’Malley recently released an ambitious climate change plan that will reduce greenhouse gas emissions 25 percent by 2020, generate $1.6 billion in economic benefits, and support more than 37,000 jobs. The plan has over 150 initiatives that touch on nearly every aspect of the economy from transportation to agriculture to zero waste.
Democracy North Carolina put together a one-page report that summarizes HB-589, the bill the General Assembly passed in late July despite the mass demonstrations outside the capitol that came to be known as Moral Mondays.