Arrests Made At Protest Outside UES Home Of JPMorgan Chase Exec
Arrests Made At Protest Outside UES Home Of JPMorgan Chase Exec
Hundreds of people picketed outside of 1185 Park Ave. around 8 a.m. to deliver more than 100,000 petition signatures...
Hundreds of people picketed outside of 1185 Park Ave. around 8 a.m. to deliver more than 100,000 petition signatures demanding that JPMorgan Chase stop financing immigrant detention centers and private prisons, protest organizers said. The demonstration was organized by groups such as Make the Road New York, New York Communities for Change and the Center for Popular Democracy.
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Pressures mount on Wells Fargo following fake-accounts scandal
Pressures mount on Wells Fargo following fake-accounts scandal
Pressure mounted on Wells Fargo & Co. Friday following its fake-accounts scandal, as the bank faced new calls to...
Pressure mounted on Wells Fargo & Co. Friday following its fake-accounts scandal, as the bank faced new calls to allow affected customers to file lawsuits and for the board of directors to rescind the pay of a key senior executive.
The demands came just one day after Chief Executive John Stumpf resigned from a Federal Reserve advisory panel.
Senators had pushed for Stumpf not to be reappointed, saying it was inappropriate for someone who presided over improper sales tactics to be giving advice to an agency involved with bank regulation.
Stumpf has been under intense fire since the bank this month agreed to pay $185 million to settle investigations by Los Angeles City Atty. Mike Feuer, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency into an aggressive sales culture that led bank employees to open as many as 2 million accounts that customers didn’t authorize.
The Justice Department is investigating possible criminal charges, and some senators have called for a Labor Department investigation into whether the bank failed to pay employees overtime when they worked late nights and weekend to meet sales quotas.
A group of Senate Democrats continued to attack Wells Fargo on Friday, publicly calling on Stumpf to stop enforcing mandatory arbitration clauses in the agreements for customer accounts that were not authorized.
Sen. Sherrod Brown (D-Ohio) had pressed Stumpf on the matter at a Senate Banking, Housing and Urban Affairs Committee hearing Tuesday, arguing that it was unfair not to allow those customers the ability to file lawsuits against the bank.
Stumpf said at the time that he would have to “talk to my legal team.”
Brown said Friday that he and his colleagues want relief for bank customers and more answers from Wells Fargo.
“If Wells Fargo really does want to look out for the customers, if they really are in fact sorry, as the CEO said, for these unauthorized accounts, they ought to let the court system work if these people who were wronged want to bring suit,” he said.
Wells Fargo's collateral damage: customers' credit scores
Wells Fargo's collateral damage: customers' credit scores
The Democrats sent a letter to Stumpf on Friday, requesting more information about the arbitration clauses, including how many customer complaints about fake accounts were forced into arbitration proceedings.
Brown was among those writing to Stumpf, along with Patrick Leahy of Vermont, Richard Durbin of Illinois, Richard Blumenthal of Connecticut, Al Franken of Minnesota and Elizabeth Warren of Massachusetts.
A spokeswoman for Wells Fargo did not immediately respond to a request for comment.
Also on Friday, an activist investment group that is part of the Change to Win union federation wrote to Wells Fargo’s board, asking it to rescind at least part of the compensation earned by the executive who oversaw the employees who opened unauthorized customer accounts.
The letter from CtW Investment Group, which is a Wells Fargo shareholder, adds to the pressure on the bank to claw back some of the approximately $100 million earned by Carrie Tolstedt, the company’s former head of community banking.
Wells Fargo’s stock has declined by about 8% since the settlement was announced on Sept. 8.
On Thursday, five senators called for Stumpf not to be reappointed to the Federal Advisory Council, a 12-member body that meets four times a year with the Fed’s Board of Governors to discuss banking and economic matters.
Stumpf had represented the Fed’s San Francisco district, where Wells Fargo is based, since 2015.
He “made a personal decision to resign” and notified the Fed on Thursday, Wells Fargo spokeswoman Jennifer Dunn said.
“His top priority is leading Wells Fargo,” she said.
Sen. Angus King, an independent from Maine, organized the letter to the head of the board of directors of the Federal Reserve Bank of San Francisco asking that Stump not be reappointed to the advisory council when his term expires on Dec. 31.
“It would be ironic if the Federal Reserve, a key federal banking regulator tasked in part with ensuring the fair and equitable treatment of consumers in financial transactions, continued to receive special insights and recommendations from senior management of a financial institution that just paid a record-breaking fine to the Consumer Financial Protection Bureau for ‘unfair’ and ‘abusive’ practices that placed consumers at financial risk,” they wrote.
The letter also was signed by Warren and Democratic Sens. Maria Cantwell of Washington and Jeff Merkley and Ron Wyden, both of Oregon.
Their call was backed by Fed Up, a coalition of labor, community and liberal activist groups that has pushed to reduce the influence of bankers on Federal Reserve policies.
“Commercial banks already have too much influence within the Federal Reserve System,” the coalition said Thursday. The coalition also asked its members to sign a petition calling for Stump’s “immediate dismissal” from the advisory panel.
“Stumpf, as the CEO of a bank accused of ‘unfair’ and ‘abusive’ practices, should have no role advising the Federal Reserve’s Board of Governors on policies affecting working families,” Fed Up said.
By Jim Puzzanghera
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Black Unemployment Rate 2015: In Better Economy, African-Americans See Minimal Gains
International Business Times - March 8, 2014, by Aaron Morrison - Cyril Darensbourg has been unemployed for 10 years....
International Business Times - March 8, 2014, by Aaron Morrison - Cyril Darensbourg has been unemployed for 10 years. As shocking as he knows that sounds to those who don’t know him personally, the 48-year-old native of New Orleans had enjoyed a 15-year career managing restaurants in Chicago and New York, after taking a chance on a dream and ending his third year of studying electrical engineering in Louisiana. Years of job-application submissions and temporary work here and there has persisted for far too long. Darensbourg is one of close to 2 million African-Americans in the U.S. who are currently unemployed and looking for work.
Across the American economy, the dominant story during the past several months has been a sustained recovery that resuscitated a dormant job market and the accompanying unemployment rate that has plunged below pre-Great Recession levels. But if better days are here for many workers, this feeling is shared to a lesser degree by African-Americans, whose unemployment rate is still considered high and has long been double the rate for whites. Among black working-age people, however, the unemployment rate since February 2014 has dropped more quickly than among nonblack workers.
On the surface, that improvement should signal a triumph, but it is accompanied by an asterisk, given the fact that nonblack workers’ unemployment rates fell much earlier and faster during the recovery. Government data indicates recent job creation has been less beneficial to African-American workers when compared with whites, Asians and Hispanics: Basically, blacks had more ground to make up and their labor-force representation is skewed toward lower-wage industries in which there are higher turnover rates, one study found.
These clear-cut differences mean that for people such as Darensbourg, who have been out of work for periods of several months or several years, other factors exaggerate the length of their unemployment. Many African-Americans find it hard to dismiss completely the role that race plays in their difficulty finding work, even with federal laws making discrimination illegal. Studies have found that even when black applicants possess qualifications that are on par with white applicants, variables as simple as their names or as complex as the breadth of their professional networks can many times hold them back.
“I’ve never felt secure, in my entire adult life working,” said Darensbourg, who is now married with two kids and living with his family in a New York apartment. After the 9/11 terrorist attacks in 2001 eliminated his management-level job at a restaurant located within the no-traffic zone, he was forced to look for work in other restaurants, which he said wouldn’t pay him at his previous annual salary of nearly six figures.
“I’ve been in disbelief,” said Darensbourg, a 6-foot-5-inch, 220-pound man who is often told his presence is at worst intimidating and at best unforgettable. During an interview for a job he was certain he would get, he recalled feeling his younger, white, female interviewer was put off by his size and confidence. “Over time, I didn’t know what to do,” he said of the experience.
“People in my situation are giving up. They are just adapting their lives to where they are. I’m not thinking about trying to buy a home or going on vacation. I don’t know how retirement is going to work,” Darensbourg said.
Unemployment Among Blacks Still High
In February, the unemployment rate for African-Americans was 10.4 percent, while the comparable rates for whites, Hispanics and Asians were 4.7 percent, 6.6 percent and 4.0 percent, in that order, according to data released by the U.S. Bureau of Labor Statistics Friday. The national unemployment rate was 5.5 percent last month. Last year, 23.7 percent of those who are black and unemployed had attended some college, 15.4 percent had bachelor’s degrees and 4.5 percent had advanced degrees.
A 2014 study by the Young Invincibles, a nonpartisan education and economic opportunity advocacy group, found an African-American college graduate has the same job prospects as a white high-school dropout or a white person with a prison record. The study attributed the gap to racial discrimination.
The experience of joblessness for African-Americans can have a lasting effect on their economic mobility, according to the Center for Popular Democracy, a liberal think tank in New York that released a report on black unemployment this week. It was prepared with the technical assistance of the nonpartisan Economic Policy Institute in Washington. On an hourly basis during the past 15 years, black workers’ wages have fallen by 44 cents, while Hispanic and white workers’ wages have risen by 48 cents and 45 cents, respectively, according to the report. Black wealth has also shrunk, while Hispanic and white wealth has stabilized.
Since March 2010, black employment climbed by about 2.3 million jobs, a 15.0 percent increase, and the black employment-population ratio rose to 54.8 percent from 52.0 percent, according to government data. Over the same period, white employment climbed by about 3.8 million jobs, a 3.4 percent increase, and the employment-population ratio rose to 60.1 percent from 59.5 percent. Because whites had less ground to make up, the increase for blacks, while statistically significant, still wasn’t large enough to suggest that they reaped more than a modest share of the gains in the economic recovery.
Most jobs that came back during the recovery, close to 45 percent, were lower-wage jobs, such as those in the retail and service industries, according to the Center for Popular Democracy’s report. Those industries employ 1.85 million more workers today than they did at the beginning of the recession. The data indicate African-American representation is skewed toward the lower-wage end, rather than toward either the mid-wage range or higher-wage end, where fewer jobs came back.
The center said the U.S. Federal Reserve’s recovery initiative to stimulate job creation through its monetary policies has been most beneficial to workers in higher-wage industries and to workers in regions of the U.S. where those jobs exist, such as on Wall Street. Even with the apparently gloomy outlook, economists say things are improving for black job seekers. “The economic recovery is finally beginning to take hold,” said Valerie Wilson, the director of the Economic Policy Institute’s Program on Race, Ethnicity and the Economy. “The rate of growth that we’re seeing now, this has only been happening for a year.”
Economists have stressed the Fed’s focus should be on genuine full employment. That’s been President Barack Obama’s argument for addressing joblessness among all Americans. But critics have said this approach ignores structural reasons -- lower educational attainment and higher rates of criminal convictions -- for African-American joblessness that is more prone to fluctuation than whites. “Assuming that monetary policy continues to function in a way that allows the recovery to proceed, the prospects for finding a job should improve for African-Americans,” Wilson said.
Education Can Make A Difference (Usually)
African-Americans who have achieved higher-education degrees -- a key investment leading to the middle class -- still find themselves more likely to face long-term unemployment than their white, Hispanic and Asian counterparts. According to the Center for Popular Democracy’s study, the only proven solution to this problem are those Fed programs that ideally stimulate job creation for workers of all experience and skill levels. But that still has not been robust enough to help the broadest swath of African-American workers.
Tamica Thompson said she could use preferential hiring consideration, although she didn’t believe she needed it before her long-term unemployment set in. Thompson’s difficulty in finding a job puzzles her. A 30-year-old born to Jamaican immigrants in New York, Thompson joined the U.S. Army in 2002, right after she graduated from high school. She was stationed in South Korea, and left active duty four years later to earn a bachelor’s degree in health-service management from Berkeley College in New York. She later obtained a master’s degree in public administration from Pace University in New York.
But even with those credentials and her military experience, Thompson has struggled to find a job that values her skill set. When she did interview for a promising job at a nonprofit development corporation -- for which the hiring manager told her she was the sole applicant -- she later discovered the position was given to someone else. She also worried that the formatting of her paper resume, which received a harsh critique from a job-placement counselor, was a factor in the length of her unemployment.
“I was unemployed for a good eight months until I found myself here,” Thompson said, referring to a stipend-supported internship for Operation: GoodJobs, a work-placement program run by the Goodwill Industries for Greater New York and Northern New Jersey, an initiative that helps military veterans and their families find jobs and training opportunities. The irony of her current situation is not lost on Thompson, who works to help other veterans find jobs while she scrapes by on the stipend. “Because I was not working, I was getting behind on my rent. I couldn’t do even the simple things anymore. Money was so limited for me. That caused me to be depressed, sad and angry. It’s a little better now, but I’m still struggling,” she said.
Race And Class Are Factors In Unemployment
Despite federal laws protecting women and racial minorities from discrimination by employers, several studies point to racial prejudices and favoritism as big contributors to how blacks fare in the job market. A 2004 study by the American Economic Review found job seekers with resumes that had so-called white-sounding names received 50 percent more callbacks for interviews. Names such as Jamal or Lakisha or others that are perceived as black-sounding names, received fewer callbacks. That racial gap is uniform across occupation, industry and employer size, researchers found.
Another study, conducted by the business school at Rutgers University in New Jersey, found that favoritism, or the race of the hiring manager, was a contributing factor to racial disparity in the workplace as well. The prevalence of a mind-set in the U.S. that the rich worked hard for everything they have and poor haven’t toiled enough certainly doesn’t help matters, said Sam Brooke, an attorney with the Southern Poverty Law Center, a nonprofit organization based in Montgomery, Alabama, that tracks racial disparity and hatred. “There’s a deep, fierce resistance to setting aside that idea,” Brooke said. “That’s an incredibly valuable part of the story that we tell about America. If you view it just through that lens, it’s hard to see how we’ll overcome” the disparities, he said.
The Civil Rights Act of 1991 made changes to a law passed in the 1960s that protected workers from intentional employment discrimination based on race, sex, religion and national origin. It also provided monetary damages in cases of proved discrimination. But few cases are won in U.S. courts, and a comparatively small proportion are resolved by settlements, according to federal data.
Darensbourg, the unemployed former restaurant manager, hasn’t considered a lawsuit against a prospective employer, even when he suspected that there was something more to its rejection of him than his qualifications. “I’m pushing my kids to do way better than I did in school,” he said. “I can’t pay for them to go to school. I don’t know how that would happen unless they got a scholarship. I tell my daughter that she is not just competing with the kids at her school; she’s competing with the whole world. I try to have them see stuff that my parents didn’t show me.”
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Debbie Lesko wins Arizona congressional race, leaves Republicans anxious about the fall
Debbie Lesko wins Arizona congressional race, leaves Republicans anxious about the fall
Ady Barkan, the California man with ALS who confronted Sen. Jeff Flake, R-Arizona, over health care issues last year,...
Ady Barkan, the California man with ALS who confronted Sen. Jeff Flake, R-Arizona, over health care issues last year, started an organization to oppose GOP health care policies and raised money for Tipirneni. "There is no such a thing as a safe Republican seat this year. Dr. Hiral Tipirneni overcame the odds to come within striking distance of victory in a deep red district, because the Republicans put their donors' greed ahead of the health of families like mine," Barkan said Tuesday.
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Neel Kashkari Named Next Minneapolis Fed President
Neel Kashkari, a former financier who managed the U.S. Treasury’s $700 billion rescue of banks in the 2008 crisis, was...
Neel Kashkari, a former financier who managed the U.S. Treasury’s $700 billion rescue of banks in the 2008 crisis, was named the next president of the Federal Reserve Bank of Minneapolis.
Kashkari’s resume includes stops at Goldman Sachs Group Inc. and Pacific Investment Management Co., and a failed run for governor of California last year. At the Treasury, he was Secretary Henry Paulson’s key aide in overseeing the Troubled Asset Relief Program, or TARP. Kashkari will take over from Narayana Kocherlakota on January 1, 2016, according to a statement Tuesday from the Minneapolis Fed.
“He has a little bit of all the pieces you’d want in a Fed president,” said Stephen Stanley, chief economist at Amherst Pierpont Securities LLC in Stamford, Connecticut.
As head of one of 12 regional Fed banks, Kashkari will join the Federal Open Market Committee, the central bank’s policy making panel. The Fed is weighing ending a seven-year era of near-zero interest rates, with investors betting it will move next month. Kashkari is not scheduled to vote on policy decisions until 2017. Kocherlakota, as is customary for outgoing FOMC members, will not attend the December meeting.
QE ‘Morphine’
Kocherlakota is one of the Fed’s most dovish policy makers who has argued it should keep rates on hold into next year. Kashkari has offered observations on monetary policy via his twitter feed, without spelling out whether he would favor raising rates or delaying liftoff in the current climate. In an April 2013 comment he likened the Bank of Japan’s asset purchase program to “morphine. makes u feel better but doesn’t cure.”
“I don’t think we know that much” about Kashkari’s views on monetary policy, said Angel Ubide, a senior fellow at the Peterson Institute for International Economics in Washington. “My experience with people who get appointed is whatever they thought before and what they do later doesn’t necessarily correlate.”
Kashkari, 42, earned bachelor’s and master’s degrees in mechanical engineering at the University of Illinois at Urbana-Champaign, and an MBA from the University of Pennsylvania’s Wharton School. He began his career as an aerospace engineer at TRW Inc. in Redondo Beach, California.
Goldman Sachs
Kashkari’s appointment places another ex-Goldman Sachs banker at the helm of a regional Fed bank. Robert Steven Kaplan at the Dallas Fed and New York’s William C. Dudley are Goldman alums. Philadelphia Fed chief Patrick Harker previously served as a trustee at Goldman Sachs Trust and as a member of the board of managers of Goldman Sachs Hedge Fund Partners Registered Fund.
“We’re disappointed that yet another former Goldman Sachs insider has been elevated to a regional president position,” said Jordan Haedtler at the Center for Popular Democracy in Washington.
Such appointments need “more transparency and public input,” said Haedtler, who’s deputy campaign manager at Fed Up, a national coalition that’s calling for changes at the central bank and wants to keep rates low to boost employment.
Kashkari worked at Goldman in the early 2000s before accepting a post at the Treasury in 2006. He joined Pimco, then led by bond fund manager Bill Gross, in 2009 to help oversee an expansion into equities, an attempt to reduce the firm’s heavy dependence on the fixed-income market. When he left in 2013, the company’s equity unit had attracted $10 billion in assets, or less than 1 percent of the firm’s total assets at the time.
Bank Bailout
TARP, approved by Congress in October 2008, remains one of the more controversial measures taken during the financial crisis. It authorized the government to purchase up to $700 billion in troubled assets from financial institutions, in an effort to bolster global credit markets. The government ultimately used $475 billion, including $250 billion to stabilize banks, $82 billion to bail out auto makers and $70 billion to save insurer American International Group Inc., according to the Treasury’s website.
“Mr. Kashkari is an influential leader whose combined experience in the public and private sectors makes him the ideal candidate to head the Minneapolis Fed,” said MayKao Hang, incoming chair of the Minneapolis Fed’s board of directors and co-chair of the search committee.
Kashkari, a Republican, was defeated by incumbent California Governor Jerry Brown in November 2014, getting 43 percent of the vote to Brown’s 57 percent.
Presidents of the 12 regional Fed banks are appointed by a portion of their respective boards of directors, subject to the approval of the Fed Board in Washington. Reserve bank boards typically consist of nine members, including three bankers. The banking members are excluded under Dodd-Frank from participating in the selection of presidents.
Source: Bloomberg Business
Islas freed pending deportation appeal; ‘double victory’ as Malloy signs TRUST Act into law
New Haven Register – July 20, 2013, by Luther Turmelle - Jose Maria Islas returned to Connecticut Friday, after the...
New Haven Register – July 20, 2013, by Luther Turmelle - Jose Maria Islas returned to Connecticut Friday, after the federal Immigration and Custom Enforcement agency released him from a Massachusetts jail pending his appeal of a deportation order.
A tired but happy Islas stood on the steps of the New Haven People’s Center Friday evening as a small group of supporters held a rally in his honor. Islas, who has been in the United States since 2005 after entering the country illegally, began his day at a detention center in Boston with other undocumented immigrants the United States is seeking to deport
Megan Fountain, a volunteer with Unidad Latina en Accion, credited the public pressure on ICE officials created by more than 3,000 of Islas’ supporters including U.S. Sens. Richard Blumenthal and Chris Murphy, both D-Conn.
“This movement started small and just got bigger and bigger,” Fountain said.
Islas’ case is being heard by the federal Department of Justice’s Board of Immigration Appeals. If the board declines to overturn efforts to deport Islas, the case will then be taken to the U.S. 2nd Circuit Court of Appeals, Fountain said.
Islas’ release came on the same day Gov. Dannel P. Malloy signed the Transparency and Responsibility Using State Tools or (TRUST) Act into law. The TRUST Act aims to discourage law enforcement officials from detaining undocumented immigrants when they report crime, either as witnesses or victims, so they may do so without fear of deportation. The act does so by placing limits on the federal Secure Communities program, which requires local and state law enforcement officials to share biometric information such as fingerprints and immigration status of detained individuals.
“The governor has been a longtime supporter of comprehensive immigration reform,” Andrew Doba, a spokesman for Malloy said Friday. “All this does is extend to the local level what has been the policy of state law enforcement.”
Charges of conspiracy to commit robbery against Islas were dropped after witnesses put him elsewhere at the time of an incident in Hamden last year. Other lesser charges have been wiped from his record after he was granted accelerated rehabilitation.
Islas, who has a wife and child living in Mexico, said he came to America “out of economic necessity.”
“I did it because my mother was sick,” he said.
Ana Maria Rivera, a legal and policy analyst, called Malloy’s signing the TRUST Act and Islas’ release “a double victory.” But she said that with the ongoing federal immigration debate in Washington, those who seek to reform the law must not become complacent.
“Many advocate that increased border militarization must be part of the path to immigration,” Rivera said.
Islas, his sister, Juana, and her family will head to the nation’s capital Monday to meet with federal lawmakers about immigration reform and participate in a series of rallies with groups from all over the country.
“Other people facing detention and deportation must keep fighting,” Juana Islas Santiago said.
Herman Zuniga, director of Comunidad de Inmigrantes de East Haven, called the Obama administration “the worst in United States history” in terms of immigration issues. Zuniga’s organization represents the Ecuadorean community in East Haven.
“Everybody has the right to choose where they live, where they work,” Zuniga said. “Deportation in not the solution.”
Fountain said the Obama administration has set up a quota system to deport 500,000 undocumented immigrants from the United States each year.
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Economic Sector Bias at the Federal Reserve
Economic Sector Bias at the Federal Reserve
In part one of this two-part posting, I looked at the gender bias at the Federal Reserve, showing how men vastly...
In part one of this two-part posting, I looked at the gender bias at the Federal Reserve, showing how men vastly outnumber women in key posts at Federal Reserve Banks throughout the United States despite the Fed's Congressional mandate. In part two of this posting, I want to take an additional look at the Fed's bias; its failure to represent the economic diversity of America.
For those of you that either didn't read part one or who are unaware of the Federal Reserve's organizational setup, here is a graphic from a report by the Center for Popular Democracy showing the link between the Federal Reserve and its Federal Open Market Committee (FOMC) and its district banks known as Federal Reserve Banks:
Here is a map showing the regions covered by each of the 12 district banks (Federal Reserve Banks) and the 24 branches within each district:
Note that Alaska and Hawaii are covered by the San Francisco district.
If we start at the top of the organizational chart, the seven members of the Federal Reserve Board of Governors are appointed by the President and confirmed by the Senate for a 14-year term of office. The President (and Senate) also confirm two members of the Board to be Chair (currently Janet Yellen) and Vice Chair for four year terms. The FOMC consists of 12 members; the seven aforementioned Board members, the president of the Federal Reserve Bank of New York and four other regional Federal Reserve Bank presidents on a rotating, one-year term basis. The Federal Reserve Banks form an important link between the Federal Reserve and their local economy and help to dictate the Federal Reserve's monetary policies. Each of the twelve district banks has their own president and boards of directors (nine directors in total for each bank); in addition, each of the 24 district branches has its own directors (seven directors in total for each branch). The Board of Directors for each Reserve Bank are appointed in two ways; the majority are appointed by the Reserve Bank and the remainder are appointed by the Federal Reserve's Board of Governors. The directors for each district bank then appoint their own president and vice president. It all sounds rather nepotistic, doesn't it?
By law, under the Federal Reserve Reform Act of 1977, the Boards of Directors of the Federal Reserve are to be
"...elected with due but not exclusive consideration to the interests of agriculture, commerce, industry, services, labor and consumers.".
That is, each of the leaders/directors of the world's most influential central bank and its district banking system are to represent a wide variety of each of the economic sectors that make up the American economy.
The report by the Center for Popular Democracy compares the economic sector representation during the period from 2006 to 2010 when the Government Accountability Office examined the composition of the Federal Reserve Bank Boards and the present. Here is a graphic showing the past and present composition:
In both 2006 to 2010 and 2016, directors from the banking sector filled over one-third of the board seats, growing by 3 percentage points over the timeframe of the study. In combination, in 2016, representatives from the commercial and industrial sector and the banking sector filled 68 percent of seats, up from 63 percent in 2006 to 2010. The service sector's representation fell from 26 percent of seats to 18 percent and agriculture and food processing saw their representation fall from 6 percent of seats to 3 percent. Interestingly, even though they are relatively poorly represented compared to the other sectors, the number of directors affiliated with consumer and community organizations rose from 3 percent to 8 percent.
For your illumination, here are a few of the Directors for each of the Federal Reserve Banks that you can get a sense of who is dictating America's monetary policies:
If you are interested in who is on the boards of the other Federal Reserve Banks, please see the original report.
Interestingly, during the "financial crisis" of 2008, there was some question about directors' independence and actions taken by the Federal Reserve banks since there was at least the perception of conflicts of interest when director-affliated institutions took part in the Federal Reserve System's emergency programs. With a preponderance of representation from the banking and commercial sectors, it certainly doesn't take a genius to figure out which sectors of the economy will likely be favoured by Federal Reserve policies should there be another "financial crisis", does it?
By A Political Junkie
Source
Black Lives Matter coalition issues first political agenda demanding slavery reparations
Black Lives Matter coalition issues first political agenda demanding slavery reparations
A coalition built on the Black Lives Matter movement has issued its first political agenda demanding reforms in the...
A coalition built on the Black Lives Matter movement has issued its first political agenda demanding reforms in the American justice system and reparations for slavery. Some 60 organisations in the Movement for Black Lives endorsed the platform calling for "black liberation" that had been forged over a year of discussions.
The agenda included six demands and 40 policy recommendations, including a reduction in military spending and a focus on protecting safe drinking water.
It also called for an end to the death penalty, decriminalisation of drug-related offences and prostitution, and the "demilitarisation" of police departments. It seeks reparations for lasting harms caused to African-Americans by slavery and investment in education, jobs and mental health programmes.
The agenda by the Movement for Black Lives came hard on the heel of the Republican and Democratic national conventions, which failed to satisfy members.
"On both sides of the aisle, the candidates have really failed to address the demands and the concerns of our people," said Marbre Stahly-Butts of the Movement for Black Lives Policy Table, which crafted the agenda.
He told the New York Times. "So this was less about this specific political moment and this election, and more about how do we actually start to plant and cultivate the seeds of transformation of this country that go beyond individual candidates."
The overarching mission of the group is to halt the "increasingly visible violence against black communities". Its agenda was issued just days before the second anniversary of the killing of unarmed black teen Michael Brown by a white police officer in Ferguson, Missouri.
Brown's death and the killing of other unarmed black men by white officers was the birth of the Black Lives Matter movement.
"We seek radical transformation, not reactionary reform," said Michaela Brown, a spokeswoman for Baltimore Bloc, one of the organisations that worked on the platform.
"As the 2016 election continues, this platform provides us with a way to intervene with an agenda that resists state and corporate power, an opportunity to implement policies that truly value the safety and humanity of black lives, and an overall means to hold elected leaders accountable."
By MARY PAPENFUSS
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A 'striking lack of diversity' at the Fed distorts economic policy in ways most people don’t consider
A 'striking lack of diversity' at the Fed distorts economic policy in ways most people don’t consider
In a new report from the liberal-leaning Fed Up, a coalition of community groups advocating for continued low interest...
In a new report from the liberal-leaning Fed Up, a coalition of community groups advocating for continued low interest rates from the Fed with a view to helping the country's poorer families enjoy some of the benefits of the recovery, the group says a lot of work remains to be done despite recent progress on diversity under Yellen's tenure.
Read the full article here.
Fed Up group plans counter Jackson Hole conference
The Fed Up coalition, made up of community activist groups, has rented a conference room in the same hotel where the...
The Fed Up coalition, made up of community activist groups, has rented a conference room in the same hotel where the Kansas City Federal Reserve Bank will be holding its annual Jackson Hole conference starting Thursday.
The group said Monday it will bring in low-wage workers from around the country who are struggling to make ends meet to emphasize the need for the Fed to do more to attack income inequality.
"Our life is a constant struggle. We know we have to pay the rent, buy food and pay the utilities on a very limited budget," Dawn O'Neal, a teaching assistant at a day care center in Atlanta, told reporters on a conference call Monday.
The mother of four said she made $8.50 an hour at her job and her husband, who is currently unemployed, has been trying to earn money by lining up early in the morning to compete for part-time construction jobs.
Ady Barkan with the Center for Popular Democracy and campaign director for Fed Up said that before Fed officials "can have a real discussion of raising interest rates and slowing the economy, they should understand firsthand who it would effect."
Barkan joked that while the Kansas City Fed charges $1,000 per person for its conference, participation in the teach-in will be free. In addition to arguing that raising rates now would be premature, the group will hold discussions on ways to reform the Fed's current selection process for the presidents of the Fed's 12 regional banks.
The group has protested the recent selection of Robert Kaplan, a former top executive at Goldman Sachs and currently associate dean at the Harvard Business School, as the new president of the Dallas Federal Reserve Bank, saying the selection process shut out input from community groups.
While the Fed announced in May that Yellen would not be attending this year's conference, Fed Vice Chairman Stanley Fischer is scheduled to deliver comments on inflation during a panel discussion at Jackson Hole on Saturday.
Financial markets will be closely examining those comments for any hints about whether the Fed is still likely to boost interest rates at its Sept. 16-17 meeting despite a huge sell-off in recent days in stocks that saw the Dow Jones industrial average fall another 588.47 points or 3.6 percent on Monday.
Source: CNBC
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