Leveraging New York's financial Power to Combat Inequality - The Report
One New York for All of Us
Leveraging New York's financial Power to Combat Inequality
New York is among the most unequal cities in the US. This inequality has become the most...
New York is among the most unequal cities in the US. This inequality has become the most pressing issue in New York City and New York State.
The good news is that New Yorkers are demanding action — and there’s a clear path to real, practical alternatives that can make New York fairer, more livable and more prosperous.
One key set of solutions will come from renegotiating the relationship between New York City government and Wall Street.
New York City and its pension funds control $350 billion that travel through the financial system. That money gives the City the leverage to renegotiate our relationship with Wall Street so that it serves the public interest.
Download the report here.
Key findings:
The city and associated entities pay $160 million a year for bad deals with banks. The city, its pension funds, and the MTA pay $563 million in base Wall Street fees each year. New York City and State give banks subsidies worth about $300 million a year, without ensuring that New York City communities will benefit. Because their wages are so low, 39% of bank tellers and their family members rely on at least one public assistance program, at a total government cost of $112 million. During the past 5 years, foreclosures have cost New York City $1.9 billion in expenses and lost revenue.Key recommendations:
Renegotiate toxic financial deals to save up to $725 million each year. Use the city’s economic and financial leverage to lower fees and interest rates for new and existing financial services Investigate unethical behavior by Wall Street and prosecute fraud to the fullest extent of the law to recover losses If Wall Street won’t negotiate in good faith, bring the functions into the city by creating an in-house financial management team and/or a publicly owned city bank. Save money and create jobs by holding banks to firm commitments to the community in return for $300 million each year in city subsidies for banks. Write down underwater mortgages to keep 86,000 families in their homes and stimulate the local economy by as much as $1 billion.The Federal Reserve Can Help Close Gender and Racial Wage Gaps by Pursuing Full Employment
The Federal Reserve Can Help Close Gender and Racial Wage Gaps by Pursuing Full Employment
With questions of race and inequality dominating the...
The Federal Reserve Can Help Close Gender and Racial Wage Gaps by Pursuing Full Employment
With questions of race and inequality dominating the national dialogue and the Federal Reserve’s debate over interest rates heating up, a new report argues that the Fed has an opportunity and responsibility to close race and gender gaps in the labor market by pursuing full employment.
Read the report here.
In Mind the Gap: How the Federal Reserve Can Help Raise Wages for America’s Women and Men, the Center for Popular Democracy’s (CPD) director of strategic research Connie Razza and the Economic Policy Institute’s (EPI) research and policy director Josh Bivens recommend that the Federal Reserve pursue genuine full employment rather than be satisfied with steady job growth that consistently fails to boost wage growth. Better wage growth iscrucial to ensure that gender and racial wage gaps close for the right reasons - with wages rising for all groups but more rapidly for groups currently disadvantaged in labor markets.
“Because the vast majority of American workers have seen near-stagnant wages even as economy-wide productivity growth has constantly risen, there’s ample space for wage gaps to close without anyone losing wages,” said Bivens. “The Fed has a powerful role in shaping labor market trends and raising wages—by pursuing full employment, it could help to close these wage gaps among workers.”
Over the past 35 years, the vast majority of workers saw wages essentially stagnate despite a 64.9 percent growth in productivity. The limited progress made toward closing the gender wage gap in this period is even more disappointing given the outright decline of men’s wages. Wage disparities between white earners and Latino or Black earners, meanwhile, have increased during this same period.
The past 35 years also shows a steady downward trend in price inflation, meaning that monetary policy has been contractionary over much of this period, contributing to the poor wage performance for most workers over this time period. The authors recommend that the Federal Reserve not consider an interest-rate hike until indicators of full employment, particularly wage growth, have strengthened. To promote wage growth, the Federal Reserve should set a clear and ambitious target for wage growth, which can be tailored to the price-inflation target and pegged to increases in productivity.
“Failure to aggressively target and achieve genuine full employment by keeping interest rates low and setting a clear and ambitious target for wage growth explains a large part of why wages continue to stagnate,” said Razza. “There is increasing talk about raising interest rates, but it would be a terrible mistake for the Fed to do so. Raising interest rates too soon will slow an already sluggish economy and will disproportionately harm women and people of color.”
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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
The Fed can't afford to ignore the 'anguished cry' of working people
The Fed can't afford to ignore the 'anguished cry' of working people
The narrative emerging from the aftermath of the 2016 election is that Donald Trump won the U.S. presidency on the back of populist economic insecurity, elected by voters who felt left behind by a...
The narrative emerging from the aftermath of the 2016 election is that Donald Trump won the U.S. presidency on the back of populist economic insecurity, elected by voters who felt left behind by a globalized economy. While the official unemployment rate continued its descent below 5 percent, Trump claimed a 'real' unemployment rate of 40 percent was driving the frustration.
That rate is drawn from Trump's overactive imagination - like many of Trump's ravings. But the fact that workers so readily believed him while responding so eagerly to his economic message reflects the reality that wages have been stagnant for decades and that we are nowhere near a galloping economy. You'd be hard-pressed to find many Americans who believe the economy is so strong that it needs to be slowed down by higher interest rates right now.
The economic discontent is grounded in data. New research from economists Thomas Piketty and Emmanuel Saez shows that the bottom half of the population in the United States has experienced zero growth since the 1970s.
Even though average national income per adult grew by 61 percent from 1980 to 2014, the average pre-tax income of the bottom 50 percent of individual income earners stagnated at about $16,000 per adult after adjusting for inflation. Meanwhile, income more than doubled for the top 10 percent, more than tripled for the top 1 percent, and for those in the top 0.001 percent, grew more than seven times.
This week, the Federal Reserve is nearly certain to hike interest rates for the second time in a decade, following last December's quarter-point increase in the federal-funds rate. This tightening of monetary policy is intended to slow down economic growth, reduce job creation, and prevent wages from rising.
In the wake of the 2016 election, do Fed officials really think that the American people want a slower, weaker economy than the one we have now?
"The Fed is one of the few institutions that remains largely independent from presidential interference and it must step up to the leadership that these times demand."
The Fed is now more important than ever. We are entering an era in which President-elect Donald Trump will control the Treasury Department and Republicans will control both houses of Congress. Federal public policy will be aimed at further enriching the 1 percent and leaving American workers out in the cold.
The Fed is one of the few institutions that remains largely independent from presidential interference and it must step up to the leadership that these times demand. The Fed needs to be an ally for working families during a period when they are otherwise under assault from every other part of government.
This week, Fed policy-makers will point to the November jobs report, showing a decline in unemployment to 4.6 percent from 4.9 percent the previous month, to justify a rate increase. Much of this decline can be attributed to people who've simply given up looking for work -- or, in economic parlance, a decline in labor force participation.
A far more accurate indicator of a full-employment economy is wage growth, which was weaker in November than it was in preceding months. Wage growth grew 2.5 percent in November on an annual basis, slower than October's 2.8 percent increase and September's 2.7 percent rise.
Wage growth is far from the 3.5 percent or higher we would expect in a full-employment economy.
Inflation, too, has hovered around 1 percent for most of the year, well below the Fed's already-low 2 percent stated inflation target. Tentative rises in September and October, to 1.5 percent and 1.6 percent respectively, hardly call for a pre-emptive interest rise.
If the Fed were to raise rates this week, it would be out of line with rates in Japan and Europe, which are at 0 or in negative territory, and above the U.K.'s rate of 0.25 percent. The central banks in these other countries realize that inflation is not a real threat and that tighter labor markets are a far more important goal.
The Fed should not only take into account the global context but also listen to the anguished cry of working and middle class voters. If the election has taught the Fed nothing else, it should be that we cannot afford to ignore the economic reality of working people.
By Ady Barkan
Source
The Fair Workweek bill is approved by City Council
Philly is following the example of New York City, Seattle, San Francisco, Washington D.C. and the state of Oregon, all of which have been lobbied by the "Fair Workweek Initiative," a program of...
Philly is following the example of New York City, Seattle, San Francisco, Washington D.C. and the state of Oregon, all of which have been lobbied by the "Fair Workweek Initiative," a program of the left wing non-profit Center for Popular Democracy, which has been funded by several large groups including the Ford Foundation and George Soros' Open Society Foundation.
Read the full article here.
Trump’s Replacement for Janet Yellen as Fed Chair Should Follow Her Lead, Economists Say
Trump’s Replacement for Janet Yellen as Fed Chair Should Follow Her Lead, Economists Say
Not everyone was so optimistic in Powell. Sam Bell—a research adviser at Fed Up, a campaign to encourage the central bank to keep interest rates low, as Yellen did—also criticized the Powell pick...
Not everyone was so optimistic in Powell. Sam Bell—a research adviser at Fed Up, a campaign to encourage the central bank to keep interest rates low, as Yellen did—also criticized the Powell pick.
Read the full article here.
Pilot Program to Represent Detainees Facing Deportation
New York Law Journal – September 30, 2013, by Mark Hamblett and Jeff Storey -
Aiming to foster the rights of immigrants and to keep their families together, two legal services...
New York Law Journal – September 30, 2013, by Mark Hamblett and Jeff Storey -
Aiming to foster the rights of immigrants and to keep their families together, two legal services organizations, the Bronx Defenders and Brooklyn Defender Services, have been picked for a unique pilot project to represent indigent detainees facing deportation.
The two organizations will form the New York Immigrant Defenders, which will take on 166 cases in the next year at the Varick Street Immigration Court.
The program will be funded by a $500,000 grant made available by the New York City Council in June.
Robin Steinberg, executive director of the Bronx Defenders, said that her organization created an in-house immigration practice more than a decade ago when it realized that nearly one-third of its clients were facing adverse immigration consequences from even minor brushes with the law.
“The Bronx Defenders joining forces with the Brooklyn Defender Services to create NYID is a natural and necessary step in ensuring that all residents of New York City—no matter where they were born—have their day in court with lawyers who will fight for their right to stay here, with their families and in the communities they now call home,” she said in a statement.
Lisa Schreibersdorf, executive director of Brooklyn Legal Services, agreed that working with immigrants was “very much in line with our mission.”
Schreibersdorf said that she had told her daughter after the group’s selection Thursday that the new program was part of the most groundbreaking public defense development of her generation—the extension of the right to counsel to immigrants.
“This is a groundbreaking program. There is no program of this sort anywhere else in the country. It’s a program that aligns American values with the reality on the ground when it comes to immigrants and due progress,” said Angela Fernandez, executive director of the Northern Manhattan Coalition for Immigrant Rights, one of the groups that advocated for creation of the program.
According to Brittny Saunders, senior staff attorney for the Center for Popular Democracy, another leading advocate for the effort, potential clients will be screened only for economic need, with anyone making under 200 percent of the poverty limit making the cut.
The poverty limit currently is $11,400 for a single person and $23,550 for a family of four.
Other factors, such as the strength of immigrant cases, will not be considered.
Oren Root of the Vera Institute of Justice, a nonprofit and nonpartisan center for justice issues, said the program will stress the importance of keeping families together. In many cases, the detainee has lived in the country for years, is the family’s principal wage earner, serves as the caretaker for family members and has children born and raised in the United States.
The one-year pilot project will be administered by Vera, which will coordinate the delivery of legal services and analyze the data that emerges from the effort.
Root said that Vera is “thrilled” to be working with “such high-caliber, innovative organizations as Brooklyn Defender Services and the Bronx Defenders.”
Providing support for the effort to represent immigrant families has been the Kathryn O. Greenberg Immigration Justice Center at the Benjamin N. Cardozo School of Law.
Most immigrants cannot afford representation, and attorneys and bar groups have become increasingly concerned about the dire consequences they face
Schreibersdorf said studies show that detainees with a lawyer are “more likely to identify valid immigration remedies.”
She cited one case of a 17-year-old on a minor offense handled by her agency. His attorney dug into the defendant’s family background and discovered that his parents had been naturalized, and thus he was a citizen himself.
“Without a lawyer, that kid would have been deported,” she said.
Source
Risking Public Money: California Charter School Fraud
Executive Summary
In 1992, California became the second state in the nation to pass legislation authorizing the creation of charter schools. Since the law’s passage, which originally...
In 1992, California became the second state in the nation to pass legislation authorizing the creation of charter schools. Since the law’s passage, which originally authorized 100 charter schools, the number of charter schools in California has grown rapidly. Today, California is home to the largest number of charter schools in the country, with over 1100 schools providing instruction to over half a million students. In the 2013-14 school year, California charter schools received more than $3 billion in public funding.
Download the full report here.
Despite the tremendous investment of public dollars and the size of its charter school population, California has failed to implement a system that proactively monitors charters for fraud, waste and mismanagement. While charter schools are subject to significant reporting requirements and monitoring by oversight bodies, including chartering entities, county superintendents and the State Controller, no oversight body regularly conducts audits.
In 2006, California took a step in the right direction by amending the Charter Schools Act to permit county superintendents who suspect fraud or mismanagement at charter schools to request an “extraordinary audit” from the Financial Crisis and Management Assistance Team (FCMAT), a state agency charged with helping local educational agencies fulfill their financial and management responsibilities. Although FCMAT only conducts an audit when requested to do so, its findings reveal internal control deficiencies and various forms of mismanagement ranging in severity and form—from inappropriate self-dealing by charter school staff to the spending of thousands of public dollars without documentation. Even after 2006, charter schools in California continue to operate year in and year out without regulator-level audits that are designed specifically to determine whether the public dollars funding these privately managed schools are being spent properly. This lack of appropriate government audits is a problem, especially given the findings of FCMAT’s audits.
The number of instances of serious fraud uncovered by whistleblowers and the FCMAT suggests that the fraud problem is likely not isolated to the charter operators that have been caught. In fact, California’s charter oversight system’s deficiencies suggest that the $81,400,000 in fraud, waste and abuse by charter operators that has been uncovered to date is likely just the tip of the iceberg. Based on conservative estimates, California stands to lose more than $100 million to charter school fraud in 2015. The vast majority of this fraud perpetrated by charter officials will go undetected because California lacks the oversight necessary to identify the fraud. In this report we describe three fundamental flaws with California’s oversight of charter schools:
Oversight depends heavily on self-reporting by charter schools or by whistleblowers. California’s oversight agencies rely almost entirely on audits paid for by charter operators and complaints from whistleblowers. Both methods are important to uncover fraud; however,neither is a systematic approach to fraud detection, nor are they effective in fraud prevention. General auditing techniques alone do not uncover fraud. The audits commissioned by the charter schools use general auditing techniques rather than techniques specifically designedto detect and uncover fraud. The current processes may expose inaccuracies or inefficiencies; however, without audits targeted at uncovering financial fraud, state and local agencies willrarely be able to detect fraud without a whistleblower. Oversight bodies lack adequate staffing to detect and eliminate fraud. In California, the vast majority of charter schools are authorized by local school districts that lack adequate staffing to monitor charter schools and ferret out fraud. Staff members who are responsible for oversight often juggle competing obligations that make it difficult to focus on oversight and identify signs of potential fraud and abuse.To address these serious deficiencies in California’s system, we recommend the following reforms:
Mandate Audits Designed to Detect and Prevent Fraud
Charter schools should be required to institute an internal fraud risk management program, including an annual fraud risk assessment. Charter schools should be required to commission an annual audit of internal controls over financial reporting that is integrated with the audit of financial statements charter schools currently commission. These integrated audits should require auditors to provide an opinion on the quality of internal controls and financial statements. Oversight agencies, such as the State Comptroller’s Office and Fiscal Crisis and Management Assistance Team (FCMAT), a state agency, should conduct audits on charter schools once every three years. Auditing teams should include members certified in Financial Forensics trained to detect fraud.Increase Transparency & Accountability
Oversight agencies should create a system to categorize and rank charter audits by level of fraud risk they pose to facilitate public engagement. Oversight agencies should post the findings of their annual internal assessments of fraud risk on their websites. Oversight agencies should determine what steps charter school nonprofit governing boards and executives have taken to guard against fraud over the past 10 years and issue a report to the public detailing theirs findings and recommendations. Charter school authorizers should take fraud risk assessments into account when evaluating whether to renew a school’s charter. Until the state implements the oversight mechanisms described above, authorizers should only approve new charters that commit to the fraud controls recommended above.Given the rapid and continuing expansion of the charter school industry and the tremendous investment of public dollars, California must act now to reform its oversight system. Without reform, California stands to lose millions of dollars as a result of charter school fraud, waste, and mismanagement.
Download the full report here.
After The Storm: Stories of Puerto Rican Resilience
One year after Hurricane Maria made landfall in Puerto Rico, the island is still feeling the effects of the devastating storm. In this special episode, "After the Storm," Tanzina Vega explores...
One year after Hurricane Maria made landfall in Puerto Rico, the island is still feeling the effects of the devastating storm. In this special episode, "After the Storm," Tanzina Vega explores questions of status, economic resilience and activism at the ground level. What does it mean to be Puerto Rican post Maria? And is Maria the event that could fundamentally change the trajectory of the island? The Takeaway finds out.
Read the full article here.
Milestone charter's credit fraud has produced no criminal charges
Milestone charter's credit fraud has produced no criminal charges
Milestone Academy is the latest New Orleans–area charter school where theft has gone unpunished for months after it was discovered. No one has filed charges against former chief executive D'Juan...
Milestone Academy is the latest New Orleans–area charter school where theft has gone unpunished for months after it was discovered. No one has filed charges against former chief executive D'Juan Hernandez for putting $13,000 of personal expenses on a school credit card, according to an audit released Monday (April 18).
Hernandez quit in June 2014. The audit covers only the rest of that calendar year, but new Milestone chief executive LaKeisha Robichaux said Monday nothing had changed. In addition, Jefferson Parish clerk records showed no case against Hernandez.
This is hardly the first time that it's taken months for local charter school employees to face criminal charges for alleged financial crimes. Typically, lax oversight lets a member of the finance team profit from wrongdoing until someone notices odd gaps in the reports.
Ten months after someone stole almost $70,000 from the KIPP charter network, a criminal investigation was still underway.
Someone stole almost $26,000 from Lake Area New Tech High in 2014; more than a year later, police had not found a culprit.
New Orleans Military/Maritime Academy employee Darral Sims took $31,000 during the 2011-12 school year but had not been charged as of early 2013.
Lusher accountant Lauren Hightower had not been charged with a crime more than a year after she paid herself $25,000.
The Center for Popular Democracy issued a report in 2015 blaming Louisiana state education officials for cutting corners on oversight.
At Milestone, the theft followed a tumultuous year. The governing board dropped its for-profit management company only a couple of months before school was to start. Hernandez, the board attorney, stepped in to run the school. The school also struggled to improve long-languishing academic results and faced losing its Old Jefferson campus. It has since moved to Gentilly.
Hernandez quit in June, saying he was sick of a power struggle that also resulted in the departure of the principal. A month later, the financial wrongdoing emerged.
The board withheld $13,000 from Hernandez' $135,081 pay to cover the loss. It also "contacted the applicable law enforcement agencies regarding the unauthorized credit card usage," auditors from Hienz and Macaluso wrote. "However, as of the date of the audit report the school is not aware of any charges being filed in this matter. This was due to the lack of proper policies and procedures governing the acquisition and use of credit cards by the school."
Auditors said the school has since restricted credit card use to key employees. Under the new policies, no one may obtain a school credit card without written approval from the board's finance committee. All purchases "must have the same level of support as any other disbursement," auditors wrote. And school credit cards may not be used for personal purchases, cash advances or alcohol.
However, further conversations Monday showed the wheels of justice often did turn eventually:
The KIPP employee was prosecuted, spokesman Jonathan Bertsch said Monday. He added that although criminal charges took time, the charter group detected the crime within weeks.
Simms was convicted and paid restitution, Military/Maritime Academy Principal Cecilia Garcia said. The case went to court in late 2014 and early 2015. However, Simms has since had his record at least partially expunged, according to Garcia and Orleans Parish sheriff's records.
Hightower was prosecuted and convicted, Lusher spokeswoman Heather Harper Cazayoux said. Hightower's LinkedIn account indicates that she now works as a florist at a Harvey Winn-Dixie.
Former Arise Schools employee Quinton Barrow pleaded guilty on May 7, 2015, to stealing $9,000. He was ordered to pay restitution but then failed to appear to pay in June, according to Orleans Parish sheriff's records.
And the biggest local charter school crime resulted in serious jail time: Langston Hughes Academy's financial manager was sentenced to five years in federal prison for stealing about $660,000.
An employee stole about $2,000 from Lake Forest Charter in 2013. As of early 2015, the school's board president would not identify the employee or say whether anyone had been charged. School leaders did not immediately respond to a request for an update.
By Danielle Dreilinger
Source
Fed Officials Push Back Against Calls to Overhaul Central Bank’s Structure
Fed Officials Push Back Against Calls to Overhaul Central Bank’s Structure
Federal Reserve bank presidents are pushing back against a rising chorus of voices saying the central bank’s century-old structure needs to be overhauled to reduce bankers’ influence over its...
Federal Reserve bank presidents are pushing back against a rising chorus of voices saying the central bank’s century-old structure needs to be overhauled to reduce bankers’ influence over its operations and policies.
Presumptive Democratic presidential nominee Hillary Clinton and the party’s draft platform have echoed calls for change by left-leaning activists, a drive that could gain new attention this week during the party’s convention in Philadelphia.
At issue is the role played by private banks in the Fed’s 12 regional reserve banks, which supervise financial institutions, provide financial services and participate in the central bank’s monetary policy-making.
By law, private banks elect six of the nine members of each Fed bank’s board of directors, choosing three to represent the banks and three to represent the public. The other three are appointed by the Washington-based Fed Board of Governors to represent the public.
Critics say the setup creates an inherent conflict of interest, akin to the proverbial fox guarding the henhouse, and has resulted in too little diversity among the leadership of the Fed system.
“Common sense reforms—like getting bankers off the boards of regional Federal Reserve Banks—are long overdue,” Mrs. Clinton’s campaign said in May.
Fed leaders in recent public comments and interviews have defended the status quo as effective, though Chairwoman Janet Yellen said during congressional testimony in February “it is of course up to Congress to consider what the appropriate structure is of the Fed.”
Meanwhile, regional Fed bank officials have played down the potential for conflict of interest, noting that the directors aren't involved in bank supervision, and the directors who represent private banks don’t participate in choosing the Fed bank presidents. The officials also see value in having close ties to the banking community. Patrick Harker, president of the Philadelphia Fed, said most of the bankers in his district are from small firms, not the big financial institutions that can worry regulators.
“The banker from a small town in Pennsylvania provides incredibly important insight” about local conditions, and “I worry about losing that insight,” Mr. Harker said. He agreed bankers could provide input through advisory groups, but he said having them on his board, meeting every 15 days, provides a level of instant insight into the economy and financial system that would be hard to replace.
William Dudley, president of the New York Fed, told reporters in May, “The current arrangements are actually working quite well, both in terms of preserving the Federal Reserve’s independence with respect to the conduct of monetary policy and actually leading to pretty, you know, successful outcomes” in terms of hitting the Fed’s goals of maximum employment and low, steady inflation.
Another issue for some advocates of change is the regional Fed banks’ status as quasi-public, quasi-private institutions. The Fed board in Washington is a wholly government entity that ultimately oversees the regional Fed banks. But when private banks become members of the Federal Reserve system, they are required to buy stock, and in turn receive dividends from the Fed. So the private banks in a sense own the regional Fed banks, though they can’t transfer or sell the stock.
“It’s pretty indefensible for the Fed to be the only regulatory institution” in the U.S. “that’s owned by the industry it regulates,” said Ady Barkan, of the Center for Popular Democracy’s Fed Up Campaign.
Fed officials say the critics misunderstand the Fed’s ownership structure. Cleveland Fed President Loretta Mester said in an interview the quasi-private status of the regional Fed banks helps ensure the independence that is needed for good policy-making in an economically diverse nation. If the regional banks were made fully part of government, she worried, Washington’s power would grow, raising the risk of politics influencing the policy debate.
Ms. Mester said “yes, the banks have stock” in the Fed. “But that’s not owning the Fed in the sense of a corporation, right? It’s making sure that there’s representation from the district as part of the Fed structure,” she said.
Richmond Fed leader Jeffrey Lacker also worried making the regional Fed banks pure governmental entities might promote short-term thinking that would lead to bad policy outcomes.
Fed Up worked with former senior Fed staffer Andrew Levin, now a professor at Dartmouth College, on a proposal to make the Fed banks wholly government institutions, as are the central banks in all the major economies. His proposal also would eliminate the regional Fed board director slots reserved for bankers and have all the directors selected in a public process involving the Washington governors and local elected officials.
Mr. Levin said he’s somewhat mystified Fed officials appear to be rejecting almost all the major reform ideas now being debated. They “might not have much influence on the outcome if they wait too long to engage in the debate,” he warned.
Mr. Harker, the Philadelphia Fed president, worried “there are always unintended consequences anytime you make a change.”
But Mr. Barkan countered “it’s true the system could be made worse than it is now, but we think it could be made better.”
By MICHAEL S. DERBY
Source
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