It’s true: HUD policy really does hurt our neighborhoods
It’s true: HUD policy really does hurt our neighborhoods
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino neighborhoods hard hit by the housing crisis, to Wall Street speculators - at a...
HUD has a program that sells tens of thousands of troubled mortgages across the country, many in black and Latino neighborhoods hard hit by the housing crisis, to Wall Street speculators - at a discount! Please let that sink in.
Since 2010, the Department of Housing and Urban Development (HUD) has been auctioning off pools of very delinquent mortgages through a program they call Distressed Asset Sales Program, or DASP. In most cases, the sales have gone to the highest bidder, which have been hedge funds and private equity firms.
Lone Star Fund, a private equity firm started by a Texas billionaire, and Bayview Asset Management, an affiliate of the private equity firm Blackstone Group, have been two of the primary beneficiaries of these sales. The result? Struggling homeowners lose their homes and speculators turn the properties into high-cost rentals that contribute to displacement in communities across the country.
This month, over 110,000 people from across the country signed a petition calling on HUD Secretary Julian Castro, to change this program. This comes on the heels of a March 1st letter to HUD from 45 members of Congress issuing a similar call for reforms to this mortgage sale program. In fact, for over two years, housing advocates and national policy groups have been pushing HUD to fix this program.
In an interview on WNYC Studio’s “The New York Radio Hour,” Secretary Castro referred to our protests that his program is enriching Wall Street as “sloganeering.” We wish that were the case. Unfortunately, it is simply a fact that 98% of the mortgages sold through HUD’s DASP program are going to Wall Street, one that can be verified on HUD’s own website where they post reports from these sales. Most, if not all, of these Wall Street buyers are what the industry itself calls “vulture capitalists” – investors that specialized in distressed assets in the hopes of making them more profitable and selling them for a profit.
In an effort to suggest that he has addressed the problem, Secretary Castro touts the agency’s 2015 auctions of troubled mortgages in which only non-profits were eligible to bid. Let’s be clear. Only 172 mortgages were sold to non-profits through these auctions, while a whopping 15,309 went to Wall Street investors in 2015. So yes, a gesture was made by the agency, but at such a miniscule scale he surely cannot suggest that the problem is solved.
There is no reason to sell such a high percentage of these loans to some of the same culprits responsible for the housing crisis in the first place. In fact, it seems to be in direct conflict with HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all. Call me skeptical, but I don’t trust a private equity firm like Blackstone – a company whose CEO made $734 million last year - to help fulfill that mission. Blackstone and other major speculators have a goal of making as much money as possible, and in the process are chipping away at the wealth and stability of neighborhoods in the process.
There is a viable alternative, that housing and civil rights groups across the country are calling for. HUD should prioritize selling these loans to good actors that have a community-centered plan to save homes from foreclosure when possible and, when foreclosure cannot be avoided, to meet the affordable housing needs of the community with their property disposition plans.
A growing number of Community Development Financial Institutions (CDFIs) have programs to do just this, and have raised the capital needed to buy pools of these delinquent mortgages. But so far, they haven’t been able to get their hands on the number of mortgages that they can afford. HUD should do all it can to make sure CDFIs and other good actors are prioritized for these sales.
I have seen too many people in my community lose their homes and their wealth to Wall Street speculators. We cannot allow the same policies that ravaged our communities to continue. For me the choice is very clear: will Secretary Castro make sure that HUD helps families stay in their homes, or will he allow HUD to continue to sign over these loans to Wall Street and fuel neighborhood displacement?
It’s time for HUD to make the right choice and partner with non-profit CDFIs and other organizations that will keep our neighborhoods together. I encourage everyone who cares about the stability of neighborhoods across the country to join with me in calling on Secretary Castro and HUD to change the DASP program so that it prioritizes foreclosure avoidance and the creation of affordable housing.
By Ana Maria Archila
Source
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 rates from the Fed with a view to helping the country's poorer families enjoy...
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.
April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
April 15: National Protests on Tax Day Demand Trump Release His Tax Returns
WASHINGTON - Today, the National Working Families Party announced their participation in the Tax Day March. President Trump’s financial ties to Russia are causing growing questions for both...
WASHINGTON - Today, the National Working Families Party announced their participation in the Tax Day March. President Trump’s financial ties to Russia are causing growing questions for both Democrats and Republicans. As a result, thousands of people plan to gather in Washington, D.C., on Saturday, April 15, 2017, at 11 a.m. The Tax March was an idea that started on Twitter, but has gained momentum on and offline, with over 135 marches planned in cities across the country...
Read full article here.
Progressive Activists Take A Seat For The People At Federal Reserve Retreat
Progressive Activists Take A Seat For The People At Federal Reserve Retreat
Two years ago this week, the nonprofit Center for Popular Democracy and allied groups launched the Fed Up campaign, aimed at making the Federal Reserve more accountable to workers and communities...
Two years ago this week, the nonprofit Center for Popular Democracy and allied groups launched the Fed Up campaign, aimed at making the Federal Reserve more accountable to workers and communities of color. They converged then on the Jackson Lake Lodge in Wyoming, where Fed officials decamp every year to discuss policy and hobnob with the economic elite.
How much political headway has the campaign made since then? This year, Fed Up activists were essentially put on the schedule for senior Federal Reserve officials, with a major meeting at the Jackson Hole summit.
The group met Thursday, the first day of the summit, with eight of the 12 presidents of the regional Federal Reserve banks and two members of the Federal Reserve Board of Governors.
Fed Up activists have met individually with the governors and regional bank presidents before; they spoke with some Fed officials less formally at the past two Jackson Hole gatherings. This is the first time, however, that their delegation of some 120 rank-and-file activists had met with so many of the central bank’s decision-makers in one place.
“It is kind of like a mini-FOMC,” said Fed Up campaign manager Jordan Haedtler prior to the event, likening it to a meeting of the Federal Open Market Committee, the Fed’s policymaking body.
The progressive campaign is calling for the central bank to wait for the economic recovery to reach more broadly across America before raising its benchmark interest rate again, a move that slows the pace of economic growth to head off price inflation.
It has also criticized the Fed for the lack of racial, gender and professional background diversity among its senior officials, arguing that only a central bank that looks like America can craft policy in the best interests of all citizens.
The Fed officials at the meeting were Esther George, president of the Federal Reserve Bank of Kansas City, which hosts the annual symposium; New York Fed president William Dudley; Dallas Fed president Robert Kaplan; Minneapolis Fed president Neel Kashkari; Cleveland Fed president Loretta Mester; Boston Fed president Eric Rosengren; San Francisco Fed president John Williams; Richmond Fed president Jeffrey Lacker, and Fed governors Stanley Fischer and Lael Brainard.
“They were really impressed with how well prepared we were,” said Haedtler after the meeting. “They were heartened by the discussion.”
“We’ll see how things go in September,” he added, referring to the next opportunity for an interest rate hike.
Bill Medley, a spokesman for the Kansas City Fed, also gave positive feedback about the meeting.
“It was a productive dialogue, as it always is, and we look forward to continuing the conversation,” Medley said.
Fed Up has had a banner year so far. Democratic presidential nominee Hillary Clinton embraced the broad contours of its platform in May after weeks of private discussion with group representatives.
“Secretary Clinton believes that the Fed needs to be more representative of America as a whole as well as that commonsense reforms — like getting bankers off the boards of regional Federal Reserve banks — are long overdue,” a Clinton spokesman said at the time.
But Clinton stopped short of signing on to a bolder reform proposal that Fed Up rolled out in April, which would turn the central bank system into an entirely public institution. The Federal Reserve Board of Governors is already a federal agency, whose top officials are nominated by the president and confirmed by the Senate. But the 12 regional banks it supervises are owned by the private financial institutions they serve. (Fed Up released a more detailed version of its idea on Monday.)
The private nature of these banks is a major reason why they are run overwhelmingly by white men with backgrounds in finance, Fed Up argues. There has never been a black or Latino president of one of the regional banks, the group notes in its reform proposal, and one-third of the current bank heads are alumni of Wall Street power player Goldman Sachs.
Fed Up’s moment at this year’s Jackson Hole symposium was not without its hiccups.
Earlier this month, Fed Up were informed that the Jackson Lake Lodge had canceled over a dozen of its room reservations. The hotel said a “computer glitch” had led to the overbooking of 18 rooms. But the fact that 13 of those rooms were booked by Fed Up raised concerns that they were being targeted.
Although the activists found lodging at a nearby resort, Fed Up filed a complaint with the U.S. Department of Justice, and members of Congress sympathetic to their cause sent Fed Chair Janet Yellen a letter asking for an explanation.
In an apparent gesture of detente, George, the Kansas City Fed president, offered Fed Up the big meeting, and the campaign withdrew its objections to the lodging snafu.
Fed Up agreed also to limit its presence in the lodge’s halls during a scheduled cocktail hour. In the past, activists have clustered inside the hotel to confront Fed officials in person. The group held a press conference-cum-rally outside the lodge before Thursday’s meeting. It also plans to run teach-in seminars and to canvass the city’s low-income neighborhoods to spread the word about Fed reform.
But Haedtler, Fed Up’s campaign manager, wanted to focus on Thursday’s meeting. It is evidence, he said, that his fledgling movement’s priorities have made it into the mainstream.
“We have clearly reshaped the discourse,” Haedtler said.
By Daniel Marans
Source
Immigrant advocates attack banks for financing private prisons
Immigrant advocates attack banks for financing private prisons
“Private prison companies and their Wall Street financiers stand to benefit from policies that increase detentions, separate families, and cause irreparable harm to immigrant children," said Ana...
“Private prison companies and their Wall Street financiers stand to benefit from policies that increase detentions, separate families, and cause irreparable harm to immigrant children," said Ana María Archila, Co-Executive Director of the Center for Popular Democracy, in a statement.
Read the full article here.
Why Fair Job Scheduling for Low-Wage Workers Is a Racial Justice Issue
Over the past few years, two movements have exploded into the public’s consciousness. In the wake of Trayvon Martin’s murder and police killings of Eric Garner, Michael Brown, Tamir Rice, Sandra...
Over the past few years, two movements have exploded into the public’s consciousness. In the wake of Trayvon Martin’s murder and police killings of Eric Garner, Michael Brown, Tamir Rice, Sandra Bland and many other people of color, Black Lives Matter has emerged as a powerful set of voices calling for racial justice, including an end to racially motivated violence.
At the same time, a growing movement of low-wage workers demanding higher wages and paid sick time has led some corporations to improve their policies for workers, and to dozens of localities and states adopting minimum wage increases and paid sick days laws.
The next frontier in the fight for fair workplaces is job scheduling. Protests by retail and food workers, high-profile New York Times articles, and other subsequent media coverage of workers experiencing erratic, unpredictable schedules has led to public outcry, the introduction of federal legislation to improve work schedules, and more than a dozen state and local proposed laws.
There is considerable overlap between these issues and the activists that are at the center of both movements. As Ron Harris, an organizer at the Twin Cities-based group Neighborhoods Organizing for Change (NOC), explains, people “don’t live single-issue lives. … The people getting shot are low-wage folks. … They are over-policed and under-resourced.”
I spoke with Harris to learn how NOC is leading the fight for fair scheduling in Minneapolis by taking an approach grounded in a commitment to racial justice. The campaign demonstrates the possibilities that emerge when advocates connect the dots between job quality issues and racial justice in their strategy and messaging.
Tell me about your organization, Neighborhoods Organizing for Change (NOC)
NOC is a non-profit that focuses on work at the intersection of race, public policy and the economy. Our members are primarily low-wage Black folks living in north Minneapolis. Our mission is to shift the balance of power between folks who have and folks who don’t have, and in our opinion, the folks who don’t have are low-income black people in Minneapolis.
We derive a lot of our ideas about what issues we will work on from the bottom up. At monthly meetings called “issue cuts,” we discuss the issues and members vet the ones we will work on.
This past year we worked on a series of local future of work proposals, including fair scheduling, earned sick and safe time [time to deal with domestic or sexual violence], a policy to end rampant wage theft and raising the minimum wage to $15. We’re also working on police reform; we made a series of demands of our local police department, and in 2016 we will take those to the state level. We led the charge in repealing two laws that only two cities in the country have—“lurking laws” and “spitting laws.”
If you spit in Minneapolis, for instance, you can get a misdemeanor. These laws were targeting low-income black people, black men in particular. We beat that law in Minneapolis—now it is gone.
We also work on voter restoration. There are approximately 47,000 people in Minnesota who don’t have the right to vote because of a past criminal conviction. We’re working on a bill at the state level to end that. And we’re working with the Center for Popular Democracy (CPD) on their Federal Reserve campaign, engaging with National Fed and Local Fed banks in town, working on influencing economic policy and who is elected to those boards.
How has NOC been involved with organizing and advocacy related to fair scheduling in the Twin Cities?
We got involved with fair scheduling because members of our base were coming in saying they were working jobs where they didn’t know their schedule until the day before or even the day of. They were forced to close businesses and come right back and open up the next morning. We call this “clopening.”
So we started to work with national partners, CPD included, to come up with a fair scheduling policy that mirrors work in other cities and states. Our state government is divided [between Republicans and Democrats], so we thought we’d take this to the city level.
NOC has been heavily involved in crafting the policy. This is where the “issue cut” came in. There were a series of generic provisions in the first scheduling policy and we laid these out for our membership and asked our membership base: “What do these sound like? Are they too strong? Too weak? What’s missing?” It led to a tailored approach that reflected the voices of the members.
On the field side, we gathered hundreds and hundreds of stories of people experiencing these scheduling issues. As we gathered their stories, we brought members to city hall and took them on lobbying visits.
Why is scheduling a racial justice issue?
If you think about the folks who are the most likely to have an unfair schedule and the least likely to be able do something about, at that intersection it tends to be people of color, particularly women of color.
If they don’t have access to a fair schedule, they are likely working a low-wage job, and if they are in a low-wage job, they likely have inadequate access to transportation… and you can see how there is a domino effect.
Why is it important to frame public discussions of fair scheduling in terms of racial justice?
We frame it as a racial justice issue because, living in Minneapolis, we have some of the worst economic disparity gaps in the country. With those dynamics, we almost had to frame it that way. We thought this could be an opportunity to close some of these gaps.
The thousand of stories we collected about employers hiring new people instead of giving out more hours to their current employees or getting schedules the day before people were supposed to work—all of those stories were coming from low-income communities of color, so frankly, that was the only way we could frame it.
We thought that our city leaders and elected officials would be sensitive to the opportunity to close the gap. In 2013, a majority of the city council was elected running on some kind of racial equity platform. So, our messages to the media and to elected officials were the same: “Hey, the folks that we donated to and endorsed ran on a racial equity platform and we haven’t seen any action from them for the past couple of years. We need this now. Here’s a perfect opportunity for you to close these gaps.”
We also tried to connect the dots, highlighting that the people most likely to suffer from [unfair schedules] are those with black and brown faces. Refusing to act means that you really don’t care about these gaps. It means, you ran on these things, but you’re really not committed to acting on them.
In your outreach to “high-road” employers, is it useful to discuss the connection between scheduling and racial inequity?
We’ve been working on really trying to engage people across sectors in fixing these gaps. So, for example, it’s not just the role of the community to advocate for itself and to bring awareness to this issue. The business community has a role, too. We recognize employers’ value as job creators, but also emphasize that by changing some of their worksite practices, they can also be adding to the movement.
We frame this for employers as: “Do the best you can where you are. We all have an opportunity. We all have a role.” And it really worked with some employers.
Even though the legislation wasn’t ultimately brought to vote, because of the campaign that we ran and the stories that were brought to light, some business owners are reporting that they are already changing their practices. Maybe they were giving their schedules five days in advance and now they’re going to work towards 10 days. One landscaping company used to say, you don’t leave until the job is done. Now they say if it is 6:00 P.M. and you aren’t done, just go home and be with your family.
Although we haven’t had much luck with large chain employers, one exception is Target. They have committed to changing their scheduling practices, almost in lockstep with what we have been pushing. We have talked about this as a racial justice issue with Target. We’ve said, as the largest employer in the city, they have a really unique opportunity to make an impact [on racial equity]. They also want their customers to have more money in their pockets—they need a strong economic environment, too.
The movement for racial justice has been gaining strength and momentum around the country in the wake of police killings. Within that movement, do you think there is enough attention to job quality and fair workplace issues?
Nationally, no. Locally, definitely. With NOC and Black Lives Matter, yes, we’re talking about police brutality, but also an overall culture of injustice that exists. In Minneapolis, in particular, some of the chants are we don’t want to get shot by police—but we also want a $15 minimum wage and all these other things.
The intersection of race and the economy has been really strong here. It’s a compounding effect where if you pay attention to the folks who are getting brutalized by the police, these aren’t middle class and rich folks. These are low-income black people. They are getting stopped because they are walking down the street when they are “not supposed to be,” technically. The people getting shot by police are low-wage folks—they are over-policed and under-resourced.
What could the fair scheduling movement be doing to further highlight the racial justice aspects of scheduling issues?
Really to ground the work in story telling. Make sure you have a strong base of individuals who are actually going through [unfair scheduling] who can speak from experience. No one can deny someone’s story. Stories help to justify everything you do.
Also, get the data. We gathered data that shows that the people who are most likely to work the jobs that have unfair schedules, they are black and brown, and most likely women. The data alone reflects that this is a racial justice issue.
Build a broad-based coalition, including people who understand how to do racial analysis and member based organizations, so the members can really speak for themselves.
How can scheduling advocates support the work of racial justice advocates?
If you think about it, if people are advocating for police reform, criminal justice reform, the people they are standing up for are people who are working these crappy jobs. So, fair scheduling advocates just need to stand up and say, our people are the same exact people. They don’t lead single-issue lives, they lead lives that are compounding multiple issues.
Under pressure, U.S. Federal Reserve takes baby steps toward a more transparent and inclusive era
Under pressure, U.S. Federal Reserve takes baby steps toward a more transparent and inclusive era
Last year’s behind-the-scenes selection of three men with ties to Goldman Sachs to serve atop the Federal Reserve did not go over well with outspoken civic groups and many Democrats, including...
Last year’s behind-the-scenes selection of three men with ties to Goldman Sachs to serve atop the Federal Reserve did not go over well with outspoken civic groups and many Democrats, including Hillary Clinton, who have all called for a more transparent and inclusive central bank. In response to the critics, the Fed has rolled out a series of announcements, online forums and face-to-face meetings with Americans to portray a more open process of selecting its 12 district presidents that is also more sensitive to racial and gender diversity.
The Minneapolis Fed, like its counterparts in Philadelphia and Dallas last year, named a president in Neel Kashkari with a past at Goldman, the Wall Street bank. But it also broke ranks from others when it released video testimonials from directors shedding light on the year-long search process, and even published a “summary of attributes” sought in the candidate. The Atlanta Fed said last month it seeks a “diverse set of candidates” to replace outgoing chief Dennis Lockhart, and this month its board chair hosted a pubic webcast to explain the historically shrouded search process, raising hopes it would name the first black or Latino Fed president in the central bank’s 103-year history.
“In the Federal Reserve system we are taking this very seriously, but it’s not just because we want to go and say we’re diverse,” Loretta Mester, the Cleveland Fed President, told a gathering of low-wage workers and progressive economists organized by Fed Up, a labor-affiliated coalition of civic groups pushing for reforms. “It really is about … getting different view points that are very helpful to us in setting policy and thinking about the economy and understanding the trends,” she said at the Cleveland Fed on Friday. Mester met the group a day after her bank launched an online application form for the public to recommend people “diverse in backgrounds and perspectives” for board positions and advisory roles across her Midwest district. Asked to what extent outside pressure prompted the move, a spokeswoman said it was “just the latest in our ongoing efforts to broaden our outreach.”
The 12 Fed presidents have five rotating votes on U.S. interest rate policy. Unlike the five current governors at the Fed Board in Washington, who are selected by the White House and approved by the Senate, the presidents are chosen by their district directors, half of whom are themselves picked by private local banks that technically own the Fed banks. The dizzying structure is meant to ensure views from across the country are heard. But critics say it leaves the Fed beholden to bankers who are not representative of the public, and they point out that 11 of 12 district presidents are white while 10 of them are men. Among employees at the Fed Board in Washington, including service workers, 43 percent were non-white and 43 percent female last year. However at the executive level it was 18 percent and 37 percent, respectively, according to the central bank.
Clinton, the presidential candidate, has come out in favor of dropping bankers from district boards and making the Fed “more representative of America as a whole,” according to her party’s platform. That followed a May letter from 127 lawmakers to Fed Chair Janet Yellen urging more diversity.
After years of resisting more overt political efforts to curb its independence, the Fed under Yellen appears willing to take small steps in the name of transparency and inclusively. In an unusual entry in minutes of their meeting last month, Fed officials discussed a staff analysis of “differential patterns of unemployment across racial and ethnic groups.” U.S. unemployment among blacks is twice that of whites.
“While we applaud this progress, these very basic steps were available to them for the last hundred years and have only been rolled out very recently,” Shawn Sebastian, a Fed Up field director, said of the series of efforts by Fed banks.
In its latest critique, Fed Up called it “disappointing” that Nicole Taylor, a black woman and dean of community engagement and diversity at Stanford University whose term as director at the San Francisco Fed is soon to expire, would be succeeded on that district’s board by Sanford Michelman, a white man who is co-founder of law firm Michelman & Robinson LLP. John Williams, president of the San Francisco Fed, told reporters on Wednesday that while he has no control over the selection of directors, this board revamp “just redoubles my efforts and my team’s efforts to make sure that we are getting the voices and experiences from across the spectrum.” He added: “It’s definitely a step back in terms of what I’d like to see on our board. We’re working actively to build representation of women and minorities.”
By Jonathan Spicer
Source
L Brands, owner of Victoria's Secret and Bath & Body Works, ending on-call scheduling
Dive Brief:
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L Brands Inc. is the latest retail company to end “on-call scheduling” in the face of a ...
L Brands Inc. is the latest retail company to end “on-call scheduling” in the face of a warning letter from New York Attorney General Eric Schneiderman that the practice likely violates state law.
The company said its Bath & Body Works stores and Victoria’s Secret stores are phasing out the practice nationwide.
Rise Up Georgia, a partner of the Fair Workweek Initiative at the Center for Popular Democracy, has been organizing L Brands workers and asking the company to end the practice, especially at Bath & Body Works stores, and says the latest move doesn’t go far enough.
Dive Insight:As the practice of on-call scheduling has drawn more scrutiny, lawmakers and regulators are calling for an end to the practice and taking steps, as Schneiderman's office has, to rein it in. Several jurisdictions, including a few states, already have laws on the books that could be used to temper or end the practice.
On-call scheduling uses algorithms to determine when workers are most needed or not, and many retailers have taken to sending workers home or having them at the ready without pay. That wreaks havoc on workers’ lives, hampering their ability to attend school, care for families, or hold down other jobs.
An improving job market is also helping make the practice less tenable as workers are more able to find jobs that are less disruptive to them.
Retailers should be prepared to see more such concerns, warnings, and even legislation as just-in time scheduling gets more scrutiny, Gail Gottehrer, a labor & employment litigator at Axinn Veltrop & Harkrider in New York who works on behalf of employers, told Retail Dive. The practice was a major concern when the San Francisco Board of Supervisors last year unanimously passed its Worker Bill of Rights law.
But some worker advocates say that L Brands move doesn’t go far enough.
"L Brand employees still have to put their lives on hold," Erin Hurley, an organizer for Rise Up Georgia and a former Bath & Body Works employee, said in a statement. "The company might have ended one type of on-call shifts, but it is still allowing for harmful shift practices: since July, they have been relying on shift extensions at Victoria’s Secret, which are on-call shifts by another name. While we celebrate the step forward, we call on L Brands to take a definitive step toward a fair workweek by giving workers shifts with definite start and end times, and enough hours to support their families.”
Schneiderman, meanwhile, praised the move while also making it clear that his office will continue to monitor the practice.
Recommended ReadingWall Street Journal: Bath & Body Works to End On-Call Scheduling
Source: RetailDive
Warren blasts Yellen for endorsing very white, very male regional Fed presidents
Warren blasts Yellen for endorsing very white, very male regional Fed presidents
Around this time last year, as another white male took the reins at the Federal Reserve Bank of Philadelphia, the Fed’s archaic and opaque system of choosing its regional presidents started to...
Around this time last year, as another white male took the reins at the Federal Reserve Bank of Philadelphia, the Fed’s archaic and opaque system of choosing its regional presidents started to come under fire. At first the criticism was over the way the system appeared to favor insiders. Patrick Harker, at the time the new Philadelphia Fed President, had sat on the regional Fed board that was tasked with filling that position. Later that summer the Dallas Fed would name Robert Kaplan, who is also white, as its president despite the fact that he was a director at the executive search firm that that regional Fed board hired to find candidates. When the Minneapolis Fed named Neel Kashkari its president later in 2015, groups like the Fed Up Coalition pointed out that while he was the only non-white regional president, he, like Harker and Kaplan, had former ties to Goldman Sachs.
Since these presidents have rotating votes on U.S. interest rate policy, many saw the selections as a critical failure to reflect the country’s diversity of gender, race and background. As it stands, 11 of the 12 regional Fed presidents are white, 10 of them are male, and none are black or Latino. Fed Up, a network of community organizations and labor unions calling for changes to the central bank, also points out that there has never been a black regional president in the Fed’s 102-year history.
To be sure, the central bank was set up in 1913 in this decentralized way to check the power of the Washington-based Fed Board, whose seven governors are nominated by the U.S. President and confirmed by the Senate in public hearings and votes. The Fed presidents scattered around the country, meanwhile, are quietly chosen by their regional directors (usually corporate, industry and civic heads) and then, again with little or no public input or transparency, approved by the Fed governors after a series of private interviews with them in Washington. All 12 presidents had their terms extended earlier this year.
So the stage was set on Tuesday for Senator Elizabeth Warren, the Massachusetts Democrat who some see as a potential running mate for U.S. presidential candidate Hillary Clinton, to make a point about diversity at the Fed while making things rather uncomfortable for Fed Chair Janet Yellen, who was testifying before the Senate Banking Committee – and who, it may be noted, is the first woman to lead the central bank:
Warren: “Does the lack of diversity among the regional Fed Presidents concern you?”
Yellen: “Yes, and I believe it is important to have a diverse group of policymakers who can bring different perspectives to bear. As you know, it’s the responsibility of the regional banks’ Class B and C directors to conduct a search and to identify candidates. The (Fed) Board reviews those candidates and we insist that the search be national and that every attempt be made to identify a diverse pool of candidates…”
Warren: “The Fed Board recently re-appointed each and every one of these presidents without any public debate or any public discussion about it. So the question I have is, if you’re concerned about this diversity issue, why didn’t you take (any) of these opportunities to say, ‘Enough is enough, let’s go back and see if we can find qualified regional Fed presidents who also contribute to the overall diversity of the Fed’s leadership’?”
Yellen: “We did undertake a thorough review of the re-appointments of the performances of the presidents. The Board of Governors has oversight of the reserve banks, there are annual meetings between the Board’s bank affairs committee and the leadership of those banks to review the performance of the presidents, and there were thorough reviews of…”
Warren: “But you’re telling me diversity is important and yet you signed off on all these folks without any public discussion about it. I appreciate your commitment to diversity and I have no doubt about it. I don’t question it. It just shows me that the selection process for regional Fed presidents is broken because the current process has not allowed you and the rest of the Board to address the persistent lack of diversity among the regional Fed presidents. I think that Congress should take a hard look at reforming the regional Fed selection process so that we can all benefit from a Fed leadership that reflects a broader array of both backgrounds and interests.”
As it happens, Clinton said last month that she, too, supports an ongoing push by Warren and other liberal members of Congress to exclude bankers from the regional Fed boards and to make the central bank more diverse.
By Jonathan Spicer
Source
Oakland spends far too much on policing
Oakland spends far too much on policing
The numerous police killings of black citizens around the country in recent years
have made us take a hard look at police brutality against black communities but law enforcement in Oakland...
The numerous police killings of black citizens around the country in recent years have made us take a hard look at police brutality against black communities but law enforcement in Oakland has a particularly alarming history.
Between 2000 and 2016, police officers in Oakland have killed 90 people, three quarters of whom were black. Victims include 23-year-old Richard Linyard, who was killed after fleeing police at a traffic stop and 30-year-old Demouria Hogg, who was shot and killed by police after they found him unconscious in a car with a pistol.
Read the full article here.
5 days ago
5 days ago