Campaign News

Sexual assault survivors personally confronted Senator Jeff Flake after he said he'd vote to confirm Supreme Court nominee Brett Kavanaugh this morning. Flake, who is a republican from Arizona and considered a key swing vote, made his announcement less than 24 hours after both Dr. Christine Blasey Ford and Kavanaugh testified on her allegations that the Supreme Court nominee sexually assaulted her in high school.

Read the full article and watch the video here.

New York Times - August 22, 2014, by Victoria Shannon - Sun and a little fun mixed with speeches are the hallmarks of the annual retreat of central bankers in Jackson Hole, Wyo.

But today was the first time participants could remember demonstrators showing up.

Protesters with green T-shirts reading “What Recovery?” were organized by the Center for Popular Democracy, a nonprofit group, to greet the bankers at their resort hotel.

“The demonstrators want to remind Fed officials, who tend to deal in abstractions, that real people are affected by their decisions,” says our Fed correspondent, Binyamin Appelbaum.

“Their presence has been mentioned repeatedly by Fed officials and speakers, suggesting that it has made an impression.”

Notably, the Fed chairwoman, Janet L. Yellen, stopped by to express sympathy. In a speech today, she said the central bank needed more evidence of growing employment before deciding when to raise interest rates.

“Historically, particularly during the 1980s, the Fed faced a lot of public pressure as it raised interest rates,” Mr. Appelbaum says, “so this may be the first sign of things to come.”

Source

Democrat and Republican lawmakers on Wednesday took issue with the current structure of regional Federal Reserve Bank boards, though they couldn't agree on how to reform the quazi-private-public firms.

The twelve regional Fed banks have come under increased scrutiny in recent months after Democratic presidential nominee Hillary Clinton issued a statement in May saying she supports removing bankers from regional Fed boards and increasing director diversity. Her comments heightened the public profile of an issue that otherwise hasn't received much focus.

A key point of debate was concerns by consumer groups that having bankers on regional Fed boards creates a conflict of interest since reserve bank staff supervise big and small commercial banks in their districts. This contrasts to the central bank in Washington, which is a government agency with governors that are nominated by the president and confirmed by the Senate. 

For example, among the nine directors who serve on the New York Fed board are Morgan Stanley (MS) CEO James Gorman and two community bank chief executives.

House Republicans indicated during a subcommittee hearing of the House Financial Services Committee that they weren't overly concerned by bank CEOs serving on such quasi-private boards while Democrats questioned the diversity of the panels.

"I don't object to bankers being on the boards," Gwen Moore, D-Wisc., told reporters after the hearing. "I'm concerned about the voice of other directors who are there and their efficacy to participate fully and about mobilizing and empowering them once they are there."

Moore, the top Democrat on the Monetary Policy and Trade subcommittee, said she the boards need more diversity, noting that none of them have hired a Latino or African American as president of the regional Fed banks where they serve.

Meanwhile, demonstrators from a consortium of consumer groups calling itself "Fed Up" attended the hearing, dressed in green shirts with slogans such as "16 of 17 Fed leaders are white."

The group also took issue with bankers on the regional Fed boards and, in their view, a lack of board diversity.

"When these voices are excluded from the conversation, then our interests are excluded," Ruben Lucio, a representative from the Center for Popular Democracy and a member of Fed Up, told reporters outside of the hearing.

According to current rules, regional boards have nine directors divided into three classes. Three banking directors are elected by member banks, another three are designated by the same banks to represent the public and interests of commerce, industry, labor and consumers, and the final class is appointed by Fed governors to represent the public. 

Rep. Ed Perlmutter, D-Colo., said he wanted to delve more deeply into bank executives serving on the boards but noted that the Kansas City Fed, which covers the district he represents, appears to be quite diverse based on a variety of metrics.

It "has a diverse board ethnically, gender wise, labor wise, regional within the Fed and that was the template I'm using," Perlmutter said.

Two regional Fed presidents, meanwhile, pushed back against concerns about conflicts of interest during their testimony. 

Richmond Fed President Jeffrey Lacker noted that strict rules govern their conduct. "They simply have no avenue through which they can influence supervisory matters," Lacker said.

And Esther George, president of the Federal Reserve Bank of Kansas City, pointed out that bankers who serve on reserve bank boards are prohibited from participating in the selection of bank presidents.

Republicans, meanwhile, focused much of their attention on whether too much influence over monetary policy is wielded by the East Coast, particularly the New York Fed.

Rep. Bill Huizenga, R-Mich., and chairman of the monetary policy subcommittee, argued that lawmakers should back legislation he sponsored, the Federal Oversight Reform and Modernization Act, or FORM, which includes a provision that would reduce the influence of the New York bank.

The Federal Open Market Committee, the branch of the central bank that determines monetary policy, has 12 voting members made up of seven members of the Fed board of governors and five of the regional Fed banks.

The president of the New York Fed, which supervises Wall Street firms from JPMorgan Chase (JPM) to Goldman Sachs  (GS) and Citigroup (C) , is a permanent voting member but the other regional bank presidents serve rotating one-year terms. Huizenga's legislation would put the New York Fed president into the voting rotation along with all the other regional bank chiefs.

"For crying out loud, the San Francisco bank has a tremendously important area," Huizenga told reporters after the hearing. "Silicon Valley, that stretches from LA to Seattle, has tremendously valuable input and to have them only be a voting member every two or three years doesn't make a lot of sense to me."

Rep. Mia Love, R-Utah, said she was concerned that the Western states weren't well represented by the regional Fed bank structure.

"You have members on both sides of the aisle expressing concerns and I would like to know what might be done to rebalance the Fed to ensure that all Americans are represented in monetary policy decisions," she said. 

Don Lamson, of counsel at Squire Patton Boggs in Washington and a former regulator at the Office of the Comptroller of the Currency, suggested that if the goal is to create greater accountability to Congress, legislators should require the Fed regional bank system to be funded through congressional appropriations instead of the self-funding that exists now.

With that structure, legislators could remove the regional Fed boards, transforming the quazi-private-public entities into government agencies.

An appropriations process, however, would destroy the independence of the Fed, which is vital to setting interest rates and supervising banks appropriately, Moore argued.

Expanding legislative influence would also open Federal Reserve funding to unrelated policy measures that might be attached in an attempt to get them passed. "Come meet with me I'm the chairman of the Fed's appropriations committee," Moore said facetiously.

By Ronald Orol

Source

FOR IMMEDIATE RELEASE: April 30, 2014   Contact: TJ Helmstetter, Center for Popular Democracy (973) 464-9224; tjhelm@populardemocracy.org 

Daniel Coates, Make the Road New York(347) 489-7085; daniel.coates@maketheroadny.org 

On Day of Council Hearings, Congress Members Endorse "Municipal ID" Program Crowley, Meng, Nadler, Velazquez: Municipal IDs Will Benefit ALL New Yorkers & Provide Critical Services 

(NEW YORK) Earlier this year, Mayor Bill de Blasio and Council Speaker Melissa Mark-Viverito announced plans to make city-issued identification cards available for all New Yorkers, which would particularly help residents who otherwise have limited access to identification documents, including immigrants and homeless New Yorkers. Similar municipal ID programs are in place in ten cities nationwide, as noted in the Center for Popular Democracy's report, "Who We Are: Municipal ID Cards as a Local Strategy to Promote Belonging and Shared Community Identity."    Today, U.S. Representatives Joe Crowley, Grace Meng, Jerry Nadler, and Nydia Velazquez have each signaled their support for the proposal. Also today, the City Council held its first hearings on the bill introduced earlier this month. Advocates attended the hearing in support of the measure, which will improve interactions between residents and law enforcement, make cardholders less vulnerable to crime, and improve quality of life for the most vulnerable New Yorkers.  QUOTES FROM MEMBERS OF CONGRESS:     “Our city must be accessible to all New Yorkers, not just some. Creating a municipal ID card is a commonsense measure that will lift countless New Yorkers out of the shadows and ensure the integration of our most vulnerable communities.  I commend Council Members Dromm and Menchaca for ushering along this very important effort and I look forward to New York City proving that we are at our best when everyone can participate.”    “I applaud Mayor de Blasio and members of the City Council for proposing a plan to create municipal ID cards, and I urge that this critical initiative be enacted into law. Having an official form of identification is essential in today’s society. It is a must for so many things from opening a bank account to entering public buildings. It’s also critical for accessing important services and vital resources. Municipal IDs would go a long way towards improving the lives of thousands of New Yorkers, especially the most vulnerable in our city, and it would allow many to come out of the shadows. I am proud to support New York’s efforts to create municipal ID cards, and I look forward to the plan soon becoming a reality here in our great city.”   "For thousands of people in New York City,  the lack of meaningful, official identification is an unnecessary and damaging barrier.  All New Yorkers should have access to an ID that they can use confidently with municipal authorities, private buildings, schools and other entities with which they interact on a daily basis. A Municipal ID would be a critical step in ensuring that everyone has the opportunity to be an integrated and participating member of our city.  I am glad to see that Mayor de Blasio and the New York City Council are leading the way to make this idea a reality."   "In New York, our diversity is our strength and this initiative would help a broader set of people engage with our city. I applaud the City Council and Mayor for moving forward to create a Municipal ID program, which will help some of our newest residents feel truly at home in joining our communities."