Wall Street Journal: Citigroup Pact Has Detailed Plan for $2.5 Billion in Relief to Consumers
Wall Street Journal - July 14, 2014, by Alan Zibel - Citigroup’s $7 billion settlement with the Justice Department over the sale of flawed mortgage securities includes an agreement by the bank to...
Wall Street Journal - July 14, 2014, by Alan Zibel - Citigroup’s $7 billion settlement with the Justice Department over the sale of flawed mortgage securities includes an agreement by the bank to provide $820 million worth of loan forgiveness and other assistance, plus nearly $300 million in refinancing. The money is also earmarked to help with down payments, donations to community groups and financing for rental housing.
These requirements, outlined in a 15-page appendix to the agreement, provide more specificity for consumer assistance than a $25 billion 2012 state/federal settlement with Citigroup and four other banks over mortgage-servicing problems. They also are more detailed than a November 2013 settlement with J.P. Morgan Chase & Co. over similar flawed mortgage securities sold to investors.
At a press conference in Washington on Monday, Associate Attorney General Tony West said the department aimed to improve on previous settlements by establishing an “an innovative consumer relief menu—one that not only includes the principal reductions and loan modifications we’ve built into previous resolutions, but also new, consumer-friendly measures.”
The Citigroup settlement, unlike previous pacts, directs the bank to provide half of its loan assistance to particularly hard-hit parts of the country. It also mandates that borrowers whose loan balances are cut won’t remain “underwater” —or owe more on their homes than their properties are worth.
The J.P. Morgan settlement addresses similar issues, but in a less targeted way. It gave the bank a bonus for providing aid to hard-hit areas, but set no specific requirement. In addition, the J.P. Morgan settlement encourages loan write-downs but does not specify how much of a borrower’s debt must be forgiven. The Citigroup settlement contains $180 million in financing for affordable rental housing—a provision not included in other settlements.
“This settlement is far more nuanced than previous settlements with respect to consumer relief,” said Andrew Jakabovics, senior director for policy development and research Enterprise Community Partners, a large affordable-housing nonprofit group. The pact, he said, “reflects many of the best practices we’ve seen develop with respect to creating sustainable loan modifications.”
A Justice Department official said the consumer-assistance portion of the Citigroup settlement reflects refinements to the government’s thinking after previous settlements. In addition, the official said the smaller size of Citigroup’s mortgage-lending portfolio caused the government to consider additional avenues for relief because the bank had fewer loans to modify.
There has been tension between the Obama administration and liberal activist groups over efforts to resolve cases related to banks’ mortgage-crisis conduct.
Consumer groups have been unhappy with previous settlements of mortgage-related cases. For example, the 2012 mortgage-servicing settlement allowed banks to receive credit for short sales, in which a bank agrees to allow the sale of a property with a mortgage worth more than the home’s value, and for granting “deeds in lieu of foreclosure,” where a homeowner voluntary surrenders the home.
Some activists are still skeptical of the government’s settlements with the financial industry. Kevin Whelan, national campaign director for the Home Defenders League, an activist group representing homeowners, said there’s been no noticeable impact from last fall’s J.P. Morgan settlement.
“We haven’t seen any evidence that they’ve done anything at all,” Mr. Whelan said.
No statistics on the J.P. Morgan settlement have been released. A J.P. Morgan spokeswoman declined comment.
Joseph Smith, a former North Carolina banking regulator, is serving as the independent monitor overseeing the J.P. Morgan settlement and is expected to release a report on its progress in the coming weeks.
Thomas Perrelli, a former Justice Department official who helped broker the 2012 mortgage settlement, will serve as the monitor of the Citigroup agreement. Mr. Perrelli is now at the law firm Jenner & Block in Washington.
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NEW YORK CITY MUST SUPPORT ITS IMMIGRANT POPULATION TO ENSURE A SUCCESSFUL WORKFORCE
NEW YORK CITY MUST SUPPORT ITS IMMIGRANT POPULATION TO ENSURE A SUCCESSFUL WORKFORCE
These days, Marta has trouble finding work. Often, when she goes to apply for a job in food service or domestic work, the first thing she’s asked is, “Do you know English?” Answering with honesty...
These days, Marta has trouble finding work. Often, when she goes to apply for a job in food service or domestic work, the first thing she’s asked is, “Do you know English?” Answering with honesty, Marta always replies that she knows only a little.
More often than not, she’s turned away because the employer wants someone with English fluency. “These days, the truth is, it’s very hard to get a job,” Marta says.
New York City is home to the most diverse immigrant population of any major city in the world. Immigrants make up almost 40 percent of the population and nearly half of the city’s workforce.
But the city is faced with a paradox: While immigrants are employed at higher rates than native-born New Yorkers, they are disproportionately clustered in lower-wage jobs, have lower incomes on average than their native-born counterparts, and often experience higher rates of poverty. Many, like Marta, have low levels of English proficiency which can make it difficult to find good-paying work.
Since New York City Mayor Bill de Blasio took office a little over two years ago, the city has begun to restructure its workforce development system, creating an important opportunity to address some of the inequities faced by immigrant New Yorkers.
The city’s new framework for its workforce development system, called Career Pathways, promises to dedicate an unprecedented level of investment in job training and education for the city’s most vulnerable workers, to ensure that the city’s investments in workforce development are aligned across city agencies, and to work with employers and other stakeholders to improve the quality of the city’s lowest-paid jobs.
However, the plan did not sufficiently take into account the particular workforce challenges faced by New York’s immigrant population. Immigrants comprise the vast majority of workers in the fastest growing occupations in the city, ranging from home health aides and construction workers to registered nurses and software programmers. As such, immigrant workers are at the core of the city’s economic vitality, and their success must be central to the city’s overhaul of its workforce system.
Immigrant workers and jobseekers experience a number of unique barriers that limit advancement in the workforce. For example, a significant number of immigrants do not speak English well and have lower levels of formal education, on average.
At the same time there are thousands of immigrants that hold college or other education credentials that aren’t recognized in the United States, and are therefore stuck working at jobs that do not take full advantage of their skills and talents. And in the low-wage workforce, which is comprised heavily of immigrant workers, exploitation of workers is rampant. This is especially true for undocumented workers and those working in the informal economy.
The success of the Career Pathways plan depends on its ability to address the major barriers that immigrant New Yorkers face. A report co-authored by the Center for Popular Democracy and Center for an Urban Future identifies these barriers and outlines a coordinated approach for tackling the obstacles that prevent immigrant workers from reaching their full potential.
Specifically, the city and private workforce funders should invest in English classes, adult education, and training and certification programs for workers with varied levels of educational background and English proficiency. This would allow them to earn the skills they need to be competitive in the labor force and keep them from getting trapped in low-wage jobs.
Second, the city must ensure that immigrant workers are aware of these services by making sure that they are available in the neighborhoods where immigrants live or work. One great way to do this is to partner with nonprofit organizations that are based in immigrant communities, and to ensure that available funding is reaching workforce programs in immigrant communities.
Finally, a workforce development strategy that works for immigrants should improve the quality of the low-wage jobs that so many immigrants fill. This includes enforcing and improving job protection laws, which often go unenforced, and securing a higher minimum wage and access to paid sick leave. Employers themselves are a big part of this conversation, and the city should use its influence to help them improve the quality of their lowest-paid positions.
Without a coordinated approach to ensure that workforce development services are reaching immigrants, the city’s plan risks overlooking an enormous population of workers and job-seekers. We now have an opportunity to ensure that immigrants are included as a key part of this plan.
By Kate Hamaji and Christian González-Rivera
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Advocates of minimum wage hike raise more than $1.4 million
Advocates of minimum wage hike raise more than $1.4 million
Proponents of hiking the state’s minimum wage have already collected more than $1.4 million to put the issue on the November ballot and convince voters to support it.
But there’s no word on...
Proponents of hiking the state’s minimum wage have already collected more than $1.4 million to put the issue on the November ballot and convince voters to support it.
But there’s no word on how much the Arizona Restaurant Association has spent so far trying to keep Proposition 206 from ever getting to voters.
New campaign finance reports due Friday show donations of $1,357,509 to Arizonans for Fair Wages and Health Families, with another $100,000 on loan from campaign consultant Bill Scheel. Most of those dollars — about $900,000 — were spent hiring paid circulators to put the issue on the ballot.
But the secretary of state’s office said Friday it has yet to get a spending report from foes. In fact, spokesman Matt Roberts said foes have not even filed to form a campaign committee, a legal prerequisite for spending any money for or against ballot measures.
There clearly has been some spending.
The restaurant association hired attorneys and filed suit on July 14 in a legal bid, unsuccessful to date, to have the measure removed from the November ballot. And the report due Friday is supposed to cover all expenses through Aug. 18.
Neither Steve Chucri, president of the restaurant group, nor Chiane Hewer, its spokeswoman, returned repeated calls seeking comment.
Roberts said his office has no legal opinion on whether the money spent in court over ballot measures has to be reported. But the legal expenses incurred by initiative supporters are listed, with their report saying the group paid $70,000 to the Torres Law Group to defend them in the lawsuit brought by the restaurant association.
Proposition 206, if approved in November, would immediately hike the state minimum wage from $8.05 an hour now to $10. It would hit $12 an hour by 2020, with future increases linked to inflation.
It also would require companies to provide five days of paid sick leave a year; small employers would have to offer three days.
There is one thing missing, however, from the report by the pro-206 group.
The report shows $998,684 of the donations coming from Living United for Change in Arizona.
But Tomas Robles, former director of LUCHA who is now chairing the campaign, said some of those dollars came from elsewhere. He said the organization has been the beneficiary of funds from groups like the Center for Popular Democracy and the United Food and Commercial Workers union.
Robles said, though, that the way Arizona law has been amended by the Republican-controlled legislature does not require detailing the specific donors or the amounts they gave.
While any spending by the restaurant association to date is unknown, the campaign is likely to be overshadowed, at least financially, by the fight over Proposition 205.
That measure would legalize the recreational use of marijuana by all adults; current law limits use of the drug to those who have certain medical conditions, a doctor’s recommendation and a state-issued ID card.
So far the Campaign to Regulate Marijuana Like Alcohol has amassed more than $3 million in donations.
Of that, $778,950 comes from the Marijuana Policy Project, the national group that funded the successful 2010 campaign for medical marijuana. A separate Marijuana Policy Project Foundation kicked in another $236,572.
Virtually all of the other five- and six-figure donations come from existing medical marijuana dispensaries. Proposition 205 would give them first crack at getting a license for one of the fewer than 150 retail outlets that would be allowed until 2021.
So far the campaign has spent nearly $2.6 million.
The opposition Arizonans for Responsible Drug Policy reported collected $950,011 but has spent less than $294,000.
The Arizona Chamber of Commerce is the largest single source of funds for the anti-205 campaign, so far putting in $114,000.
There’s also a $100,000 donation from T. Sanford Denny. He’s the chairman of United National Corp., which Bloomberg says is a privately owned holding company for First Premier Bank.
Another $100,000 was chipped in by Randy Kendrick, wife of Arizona Diamondbacks owner Ken Kendrick.
The new reports also show that a branch of the Service Employees International Union spent $2.1 million in its ill-fated attempt to put a measure on the ballot to cap the compensation of non-medical hospital executives at $450,000 a year. Proponents gave up after a lawsuit was filed contending that many of the people who circulated petitions had not complied with state law, voiding any of the signatures they collected.
By: Howard Fischer
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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.
2013 Race for Mayor: Low-Income New Yorkers
WNYC - March 1, 2013 - Brian Lehrer hosted a forum with seven mayoral hopefuls "2013 Race for Mayor: What's in it for Low-Income New Yorkers?" sponsored by The Community Service Society (CSS)...
WNYC - March 1, 2013 - Brian Lehrer hosted a forum with seven mayoral hopefuls "2013 Race for Mayor: What's in it for Low-Income New Yorkers?" sponsored by The Community Service Society (CSS) sponsored the event in partnership with Local 32BJ of the Service Employees International Union, the Center for Popular Democracy, and United New York.
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Newark schools should offer more social services, advocates say
NJ.com - 05-06-2015 - Newark's schools should add more social services and community programming to tackle issues of poverty afflicting local neighborhoods, a group of education advocates said...
NJ.com - 05-06-2015 - Newark's schools should add more social services and community programming to tackle issues of poverty afflicting local neighborhoods, a group of education advocates said Tuesday.
Dubbed the "community school" model, schools should strive to address needy students' health and emotional needs, teach content beyond what is included in standardized tests and include parental input in the decision making.
NJ Communities United organizer Roberto Cabanas told a packed audience in Kings Family Restaurant & Catering, that the district could work local nonprofit organizations to support a wider range of student needs.
"We need to bring the village inside of the school," he said.
Cabanas was one of four panelists at an education forum organized by activists and the city, including Newark chief education officer Lauren Wells, Evie Frankl of the Center for Popular Democracy and Mary Bennett of the Alliance for Newark Public Schools.
Wells said Newark Public Schools once adopted this approach about five years ago through the Global Village Zone, when the district attempted to turn around seven schools in the city's Central Ward.
At the time, the district announced that the program would implement longer days and provide more professional development and pay for teachers. Under the model, schools were set to turn schools into a place where students would be taught but also be able to go to health clinics.
"A community school is a place, a physical place, but it's also a practice," Wells said. "It is a way about going about doing things."
The program also sought input from teachers and parents when it designed it, Wells said.
"Teachers, specifically, at 18th Avenue School worked with the principal to design what (an) extended day would look like in their school," she said.
Bennett said when she was a principal in the district she tried to better serve students on probation by working with the county probation department to have one probation officer assigned to all the students in her school.
Under the community schools model, the district could streamline cooperation between government and universities, Bennett argued.
"You shouldn't have to spend a year to try and unify the services to support students," she said.
Frankl said districts around the country including in Baltimore, New York City and Lancaster, Pennsylvania are adopting this approach.
"Community schools can happen," she said. "There is no reason why a community school should not be the definition of a public school in the United States of America."
Source: NJ.com
‘School Choice’ Mantra Masks the Harm of Siphoning Funds from Public Education
Ask an education “reform” proponent about any issue facing public education and the answer is always the same: “school choice.” Whether they’re championing charter schools, vouchers or Education...
Ask an education “reform” proponent about any issue facing public education and the answer is always the same: “school choice.” Whether they’re championing charter schools, vouchers or Education Savings Accounts (ESAs), advocates prefer to frame the debate around the right of parents to send their child to a better-performing school. This is merely a smokescreen to divert attention away from what school choice is really about: the transfer of public money to the private sector without accountability or transparency.
Many school choice campaigns are bankrolled by a faction of incredibly wealthy conservative donors and political groups, including the Koch Brothers and the American Legislative Exchange Council (better known as ALEC). Their agenda is clear: dismantle public education.
But it’s a safe bet you won’t hear their names during National School Choice Week (Jan 25-30). What you will hear is a lot of people parroting messages about “freedom,” “innovation,” “options,” even “civil rights” – buzzwords that underpin the campaigns to expand charter schools, vouchers and ESAs across the country. But the jargon masks the devastating impact these policies have had on public education, particularly on those students who are supposed to benefit the most.
Unaccountable Charter Schools: The Truth Hurts
Many people support the idea behind charter schools, but how many are aware of the mounting troubles the charter industry has experienced lately? Probably not enough. Proponents work very, very hard to maintain a facade of success and transparency in the face of evidence that many of these schools operate without any oversight, while wasting taxpayer money and fostering inequity and racial segregation.
Take the North Carolina State Board of Education, which just this month rejected the Department of Public Instruction’s annual report on charter schools as “too negative.” Dominated by school privatization stalwarts, the board is determined to prevent any meaningful oversight of the state’s charters and demanded revisions to the report before it could be submitted to the legislature.
North Carolina educator Stuart Egan took the board to task in an open letter to Lt. Governor and board member Dan Forrest: “Overall, charter schools seem to lack diversity and operate under a different set of rules according to the report you are trying to squelch. The fact is that many of the charter schools you have enabled are perpetuating segregation and are not accomplishing what you advertised they would do,” Egan wrote.
Given the magnitude of waste and fraud in the sector, it’s unsurprising why many charter operators are hiding from accountability and regulation. And according to a new study, the expansion of unregulated charter schools, particularly in urban communities, is beginning to resemble the effort a decade ago to pump up bad mortgages that eventually blew up the economy.
“Supporters of charter schools are using their popularity in Black, urban communities to push for states to remove their charter cap restrictions and to allow multiple authorizers,” Preston Green III of the University of Connecticut and co-author of “Are We Heading Toward a Charter School ‘Bubble’?: Lessons from the Subprime Mortgage Crisis” told EduShyster. “At the same time, private investors are lobbying states to change their rules to encourage charter school growth. The combination of multiple authorizers and a lack of oversight is creating an abundance of poor-performing schools in low-income communities.”
Vouchers: Who Is Really Benefitting?
According to the 2015 PDK/Gallup poll, a whopping 70 percent of Americans oppose school vouchers. They see it for what it is: a privatization scheme that subsidizes tuition for students in private schools. And perhaps they are aware that there is no conclusive evidence that vouchers improve student achievement. The public is also not fooled by the often-repeated falsehood that vouchers are primarily benefitting disadvantaged students.
In Scott Walker’s Wisconsin and Mike Pence’s Indiana, where vouchers have expanded dramatically, promises that the programs would serve low-income students in failing schools didn’t last. “That tale quickly and methodically changed,” said Teresa Meredith, president of the Indiana State Teachers Association. By 2015, only 2 percent of participants [in the voucher program] had attended an ‘F’ public school.
“The most expansive voucher program in America has become an entitlement program which, in large part, now benefits middle class families who always intended to send their children to private (mostly religious) schools and taxpayers are footing the growing bill,” Meredith said.
Education Savings Accounts (or Vouchers on Steroids)
In 2015, Nevada lawmakers were hoping to blaze a new trail for school choice with a new gambit, education savings accounts (ESA), which allow parents to claim more than $5,000 in state funds each year and use it for any qualified education expense. This includes religious-based private schools, but also a variety of other services, all with little or no oversight over student outcomes. In addition, states impose no quality controls on the textbooks, curriculum, tutoring, or supplemental materials that parents can purchase with ESA funds.
Education savings accounts exist in five states, but Nevada became the first to pass a bill that offered them to every public school student regardless of family income. Very few private schools in the state, however, have tuition low enough to be covered by the $5,100 or $5,700 provided annually by ESAs. Wealthier parents can supplement their own income to pay for the tuition, but for lower-income families private school will remain largely out-of-reach.
Earlier this month, a state judge slapped an injunction on the program. In his ruling, District Judge James Wilson said the law diverted public funds to pay for private school tuition and was therefore unconstitutional. The decision will be appealed because advocates have vested a lot in the scheme. ESAs are unquestionably the new school choice battleground and are being pushed in a growing number of states with proponents deploying the usual tropes about “freedom” and “flexibility” to mask their real impact: erosion of public school funding, fewer education resources, wider achievement gaps and increased segregation.
Real Innovation That Works
The good news is that a growing number of communities are finding solutions to struggling schools and achievement gaps that benefit all students, not just some. Educators and parents are working together to expand the community schools model, which is currently present in nearly 5,000 schools nationwide. When public schools extend services and programs beyond the school day, creating strong learning cultures and safe and supportive environments for both students and educators—in effect becoming community “hubs” – student outcomes improve. In 2015, Minnesota educators were instrumental in persuading the legislature to pass a bill creating a grant program for “Full-Service” Community Schools and other states may soon follow suit. To learn more about community schools, read “Investing in What Works” by the Southern Education Foundation and the Annenberg Institute for School Reform.
Source: NEA Today
Amazon’s $15 an Hour Minimum Wage and the Federal Reserve Board
Amazon’s $15 an Hour Minimum Wage and the Federal Reserve Board
This is where Fed Up played an incredible role. They were a crucial voice on the other side, constantly reminding the Fed of its legal mandate to promote full employment. Fed Up had important...
This is where Fed Up played an incredible role. They were a crucial voice on the other side, constantly reminding the Fed of its legal mandate to promote full employment. Fed Up had important allies in this effort, most importantly former Fed chair Janet Yellen, but it is likely that Yellen and her allies on the FOMC would have been forced to raise rates sooner and faster if not for pressure from Fed Up.
Read the full article here.
Pittsburgh police, community absorb news of Dallas shootings
Pittsburgh police, community absorb news of Dallas shootings
Though far from Dallas, Minnesota or Louisiana, leaders here recognized on Friday the historic nature of a chain reaction of police-community tragedies and sought to minimize the risk of more...
Though far from Dallas, Minnesota or Louisiana, leaders here recognized on Friday the historic nature of a chain reaction of police-community tragedies and sought to minimize the risk of more violence.
A shooting such as the one in Dallas “knocks us out of our complacency,” said Howard Burton, chief of the Penn Hills police department. Although most people support officers and appreciate their protection, he said, “We know there’s a group of people out there that move in that direction, that move [aggressively] toward law enforcement.”
Such concerns led Allegheny County Executive Rich Fitzgerald and Pittsburgh Mayor Bill Peduto to call for a peace gathering next week of law enforcement, church, activist, foundation, labor, corporate and government leaders.
Fraternal Order of Police Lodge 1 president Robert Swartzwelder, who is a city officer, said he has authorized the lodge’s three-member funeral detail to go to Dallas. Normally, the lodge would be represented at funerals in Pennsylvania and adjoining states, but the extent of the tragedy in Dallas warrants a presence, he said, adding that it’s “extremely important to the law enforcement community and the family of the police officers” that they see support.
He added that the ambush will be “in the mind of very police officer that’s working” for some time.
Five law enforcement officers were fatally shot Thursday night in Dallas, with seven others injured. That was broadly interpreted as a deranged reaction to the deaths of Louisiana’s Alton Sterling and Minnesotan Philando Castile in encounters with police.
Leaders of both political parties decried all three tragedies.
“We have to ask ourselves, is this the type of country we want? I believe the answer is no,” said Gov. Tom Wolf, a Democrat. “When incidents like those in Louisiana, Minnesota and Dallas happen, it raises concerns and questions, and we must demand change and action.”
Pennsylvania Sen. Pat Toomey, a Republican, wrote in a statement that the “disgusting attack has no possible justification.”
He also cited a Dallas police spokesman’s account that the violence there “was motivated by recent police shootings. Such incidents — including the shocking and disturbing videos from Minnesota and Louisiana — must be investigated thoroughly, and if any official is found to have violated the law, he should be severely punished.”
At a police accountability protest Downtown, officers escorting the marchers seemed “nervous, and that’s understandable, but they were very helpful and cooperative,” said Ana Maria Archila, co-executive director of the Center for Popular Democracy, which organized the demonstration. “They’ve allowed us to do the march we envisioned, and we appreciate that.”
Pittsburgh police Chief Cameron McLay noted that concerns for lives of police officers and black citizens “are not mutually exclusive at all.”
Some suburban Allegheny County chiefs said they were running their departments as usual, and others declined to say whether they had made changes. None of those contacted by the Post-Gazette reported any threats to their officers.
Voices of the civil rights community said they want intensified attention to police-community problems — but not through violence.
“This is not going to happen in Allegheny County, because we’re going to be meeting with the young folks,” said Constance Parker, president of the Pittsburgh chapter of the NAACP. The message: “Before you get angry, think, because there’s costs you pay when you get very angry. If you don’t pay it with the law, you pay it with your body.”
By Rich Lord
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Under Trump, local governments become activists
Under Trump, local governments become activists
Christine Knapp had been on maternity leave for nearly three months, but on Wednesday the director of the mayor’s Office of Sustainability hoisted a diaper bag on her shoulder, packed her 11-week-...
Christine Knapp had been on maternity leave for nearly three months, but on Wednesday the director of the mayor’s Office of Sustainability hoisted a diaper bag on her shoulder, packed her 11-week-old daughter, Sabine, into a stroller, maneuvered into a creaky elevator in City Hall, and rode up to the mayor’s reception room. This was just too important to miss.
Read the full article here.
13 hours ago
13 hours ago