Why financial reform will never happen

President Obama, 1/29/09:

...when I saw an article today indicating that Wall Street bankers had given themselves $20 billion worth of bonuses -- the same amount of bonuses as they gave themselves in 2004 -- at a time when most of these institutions were teetering on collapse and they are asking for taxpayers to help sustain them, and when taxpayers find themselves in the difficult position that if they don't provide help that the entire system could come down on top of our heads -- that is the height of irresponsibility. It is shameful.
President Obama, 1/14/10:
As we all know, our country has endured the deepest recession we've faced in generations. And much of the turmoil was caused by irresponsibility on the part of banks and financial institutions. Firms took reckless risks in pursuit of short-term profits and soaring bonuses, triggering a financial crisis that nearly pulled the economy into a second Great Depression. ... My commitment is to recover every single dime the American people are owed. And my determination to achieve this goal is only heightened when I see reports of massive profits and obscene bonuses at some of the very firms who owe their continued existence to the American people -- folks who have not been made whole, and who continue to face real hardship in this recession. We want our money back, and we're going to get it. And that's why I'm proposing a Financial Crisis Responsibility Fee to be imposed on major financial firms until the American people are fully compensated for the extraordinary assistance they provided to Wall Street. If these companies are in good enough shape to afford massive bonuses, they are surely in good enough shape to afford paying back every penny to taxpayers.
New York Times, 2/7/10:
Just two years after Mr. Obama helped his party pull in record Wall Street contributions — $89 million from the securities and investment business, according to the nonpartisan Center for Responsive Politics — some of his biggest supporters, like Mr. Dimon, have become the industry’s chief lobbyists against his regulatory agenda. Republicans are rushing to capitalize on what they call Wall Street’s “buyer’s remorse” with the Democrats. And industry executives and lobbyists are warning Democrats that if Mr. Obama keeps attacking Wall Street “fat cats,” they may fight back by withholding their cash. ... Though Wall Street has long been a major source of Democratic campaign money (alongside Hollywood and Silicon Valley), Mr. Obama built unusually direct ties to his contributors there. ... Wall Street lobbyists say the financial industry’s big Democratic donors help ensure that their arguments reach the ears of the president and Congress. White House visitors’ logs show dozens of meetings with big Wall Street fund-raisers, including Gary D. Cohn, a president of Goldman Sachs; Mr. Dimon of JPMorgan Chase; and Robert Wolf, the chief of the American division of the Swiss bank UBS, who has also played golf, had lunch and watched July 4 fireworks with the president.
Bloomberg News, 2/10/10:
President Barack Obama said he doesn’t “begrudge” the $17 million bonus awarded to JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon or the $9 million issued to Goldman Sachs Group Inc. CEO Lloyd Blankfein, noting that some athletes take home more pay. The president, speaking in an interview, said in response to a question that while $17 million is “an extraordinary amount of money” for Main Street, “there are some baseball players who are making more than that and don’t get to the World Series either, so I’m shocked by that as well.” “I know both those guys; they are very savvy businessmen,” Obama said in the interview yesterday in the Oval Office with Bloomberg BusinessWeek, which will appear on newsstands Friday. “I, like most of the American people, don’t begrudge people success or wealth. That is part of the free- market system.” Obama sought to combat perceptions that his administration is anti-business and trumpeted the influence corporate leaders have had on his economic policies. He plans to reiterate that message when he speaks to the Business Roundtable, which represents the heads of many of the biggest U.S. companies, on Feb. 24 in Washington.
Any questions? And are trillion-dollar bailouts for these firms also a part of our "free-market system"?

Continue ReadingWhy financial reform will never happen

This is why Elizabeth Warren is one of my heroes

Elizabeth Warren is doing exactly what she was hired to do--speaking up for ordinary Americans:

Banks and brokers have sold deceptive mortgages for more than a decade. Financial wizards made billions by packaging and repackaging those loans into securities. And federal regulators played the role of lookout at a bank robbery, holding back anyone who tried to stop the massive looting from middle-class families. When they weren't selling deceptive mortgages, Wall Street invented new credit card tricks and clever overdraft fees.
This is more than I can say for Barack Obama. He should be taking full advantage of his bully pulpit and cranking on Wall Street and the financial "services" industry, but he is only giving lip service. This makes me wonder why he isn't using that silver tongue week after week to shame Congress into enacting reform. And he shouldn't wait for the banks and Congress to give him support for reform. Screw the banks, and enact reform. Don't wait for the banks to get in line. We need credit card agreements that people can read and understand, for starters. We are more than a year into Obama's Presidency and nothing significant is happening to clean up our corrupt financial system. This young President needs to go read his campaign speeches to remind himself of what he needs to do. And if Congress is so corrupt that none of his campaign promises can be accomplished, then shame Congress, week after week.

Continue ReadingThis is why Elizabeth Warren is one of my heroes

Exhibit A regarding Congressional dysfunction

How is it that one senator can stifle government function? Tim Rutten of the LA Times explains:

In the face of these daunting issues, what was it that preoccupied the Senate on the eve of its long weekend recess? The legislative drama du jour is the standoff between the White House and Sen. Richard C. Shelby (R-Ala.), who has put a personal hold on more than 70 executive branch appointments until the Obama administration agrees to fund a couple of pork-barrel projects he has earmarked for his state. One involves tens of millions of dollars for an FBI laboratory focusing on improvised explosives -- something the bureau doesn't think it needs. . . . Unless the administration agrees to give Shelby what he wants, he intends to invoke an archaic senatorial privilege that allows him to prevent the chamber from considering any of the administration's nominees to executive branch vacancies, no matter how crucial. Without the 60 votes to force cloture -- another archaic convention -- there's nothing the Democrats or the White House can do.

Continue ReadingExhibit A regarding Congressional dysfunction

Wikileaks struggles to stay alive

Wikileaks has shut down, hopefully temporarily, for lack of money. Here's what you'll see if you visit the site:

The Sunshine Press (WikiLeaks) is an non-profit organization funded by human rights campaigners, investigative journalists, technologists and the general public. Through your support we have exposed significant injustice around the world—successfully fighting off over 100 legal attacks in the process. Although our work produces reforms daily and is the recipient of numerous prestigious awards, including the 2008 Economist Freedom of Expression Award as well as the 2009 Amnesty International New Media Award, these accolades do not pay the bills. Nor can we accept government or corporate funding and maintain our absolute integrity. It is your strong support alone that preserves our continued independence and strength.
To help out, visit Wikileaks and make a donation. I just donated, because Wikileaks has proven itself to be a critically important resource for allowing us to really know what is going on and I wanted to do my part.

Continue ReadingWikileaks struggles to stay alive

The Politics of War Crimes

I sometimes can't shake the feeling that everything is wrong. Down is up, wrong is right, war is peace, and lies are truth. Take, for example, the issue of torture. We as a society have regressed to the point where we find it acceptable to use torture. We use it explicitly, openly, without any concern for the consequences. Of course, some of the consequences (like increasing terrorism) are inevitable, whether we choose to be concerned with them or not. But that's really beside the point-- the simple point that I am amazed by right now is that we torture people. That, and the fact that it's not a major controversy. The Land of the Free, the Home of the Brave, with tyranny and torture for all. Since the usual arguments against our torture policy have proven ineffective, I want to elaborate a bit. The usual arguments involve questions of efficacy-- that is, whether torture is effective or not. (It's not). In fact, the CIA officer who argued that waterboarding was so effective that it cracked hardcore terrorists the first time (and within 30 seconds!) has now recanted his story. When he came out with the story of how waterboarding worked so well, he was called the "Man of the Hour", but now hardly anyone is mentioning that it was all lies. Go figure that a CIA guy would lie to his own countrymen, right? In any case, the issue of waterboarding, or any of the various "enhanced interrogation techniques", is a red herring. The truth is that we are engaged in far worse abuses.

Continue ReadingThe Politics of War Crimes