CPD IN THE NEWS

Federal Reserve Bank of Richmond President Jeffrey Lacker is set to tell a congressional panel Wednesday the U.S. central bank’s structure is effective, and that he is reluctant to see it altered in any major way.

In an interview with The Wall Street Journal, Mr. Lacker said the U.S. central bank—with its Washington-based board of governors and 12 quasiprivate, quasigovernmental regional banks across the country—“works well.”

The Federal Reserve, created more than a century ago, might seem like “an archaic structure, but the choices and trade-offs they were facing then are still relevant choices and trade-offs now. Our federated structure reflected a desire to ensure that the diversity of views were reflected in monetary policy,” he said.

Mr. Lacker spoke to the Journal on Thursday in his office overlooking the James River, ahead of speech in which he argued the Fed was increasingly likely to face trouble if it doesn’t raise short-term interest rates soon.

The veteran central banker—he is the longest-serving regional Fed bank president—and Kansas City Fed President Esther George are scheduled to testify Wednesday before the House Committee on Financial Services’ Monetary Policy and Trade subcommittee. They will discuss the structure of their banks and “how it relates to the conduct of monetary policy and economic performance.”

The Fed in recent years has faced critics from the right and left who would like to change the way the central bank operates. Some Republican lawmakers, for example, want to give Congress more scrutiny over the Fed’s interest-rate-setting policy actions via formal government audits, something central bankers have long argued would make policy-making more political and ultimately less effective.

Some left-leaning activists and Democrats, including the campaign of presidential nominee Hillary Clinton, have called for bankers to be removed from the boards overseeing the regional Fed banks.

Members of the Center for Popular Democracy’s Fed Up campaign, working with a former top Fed staffer, have gone further. They have called for the regional Fed banks, which are technically owned by private banks via nonvoting shares, to be moved fully into government. The group also has sought a more open process to select bank presidents, and to take stock of their performance once they are on the job.

“I completely understand the heightened attention the Fed has gotten” in light of the dramatic actions it took over the course of the financial crisis and its aftermath, Mr. Lacker said. “We’re America’s central bank. And I think it’s a discussion worth having.”

Some of the criticism of the Fed owes to misunderstandings, Mr. Lacker said. But he added, “I’d agree we could do a better job of explaining our governance.”

By and large, Mr. Lacker said the current setup has proved to be the best in terms of setting policy and achieving the independence most economists believe is critical for effective central banking, a view shared by other regional Fed bank chiefs.

He said the regional banks, part-private and part-public organizations, are afforded independence to provide views protected from political interference. Turning the regional Fed banks into fully governmental institutions would compromise that and relieve the board of governors of a vital counterweight, Mr. Lacker said.

“Preserving that diversity of views, preserving the independence of the reserve bank president’s role in monetary policy, is an exceptionally high value,” he said.

Mr. Lacker also said the regional Fed banks’ boards of directors, drawn from a mix of local business and community leaders, as well as bankers, provide insight into local economic developments. These directors also offer operational insight to the central bank, a large service provider to financial institutions on a variety of fronts, he said.

The U.S. central bank, which is a major financial industry regulator, has long faced criticism because bankers serve on the boards of directors of the regional Fed banks. Critics say it is a conflict of interest because it allows banks to oversee their supervisor. Fed officials reject this view, saying that its regulatory activities, while carried out largely by the regional banks, are directed out of Washington.

“I think we all appreciate the—you know, I think [former Treasury Secretary and New York Fed President] Tim Geithner called it the optics issue, or optics problem” of the ownership structure and board composition, Mr. Lacker said. “As a practical matter, it’s not an issue.”

Mr. Lacker said that private bank ownership of the regional Fed banks isn’t like corporate ownership because the banks’ shares don’t have voting rights. He also said the regional boards have “a classic American governance role” and he rejected the idea that there would be any conflicts of interest faced by the board members.

Mr. Lacker said he welcomes meeting with Fed critics.

Many are activists “trying very hard to do what they can to improve lives. And you know, you can’t help but come away from conversations like that with a deep appreciation of the struggles and challenges that many of our—you know, many people in our country face,” Mr. Lacker said. He added, “I commend them for their interest in us and the willingness to engage in conversation with us.”

By Michael S. Derby

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LA Times - April 13, 2015, by Samantha Masunaga - he scheduling practices of 13 retailers, including Gap Inc., Target Corp. and Abercrombie & Fitch Co., are being scrutinized by New York Atty. Gen. Eric T. Schneiderman.

In a letter sent to the retailers, the attorney general's office said it had received reports that a growing number of employers, particularly in the retail industry, were requiring hourly employees to work on-call shifts. The office said it had “reason to believe” the 13 retailers might be using this kind of scheduling.

A New York state law requires that employees who are asked to come into work must be paid for at least four hours atminimum wage or the number of hours in the regularly scheduled shift, whichever is less, even if the employee is sent home.

California has a similar law that says employees must be paid for half of their usual time — two to four hours — if they are required to come in to work but are not needed or work less than their normal schedule.

The letter was also sent to J. Crew Group Inc.; L Brands, which owns Victoria's Secret and Bath and Body Works; Burlington Stores Inc.; TJX Cos.; Urban Outfitters Inc.; Sears Holdings Corp.; Williams-Sonoma Inc.; Crocs Inc.; Ann Inc., which owns Ann Taylor; and J.C. Penney Co.

The letters ask the retailers for more information about how they schedule employees for work, including whether they use on-call shifts and computerized scheduling programs.

Rachel Deutsch, an attorney at the Center for Popular Democracy, a New York worker advocacy group, said on-call scheduling can make it difficult for workers to arrange child care or pick up a second job.

“These are folks that want to work,” she said. “They’re ready and willing to work, and some weeks they might get no pay at all even though they set aside 100% of their time to work.”

Danielle Lang, a Skadden fellow at Bet Tzedek Legal Services in Los Angeles, said the attorney general’s action could have repercussions in other states.

“The New York attorney general is a powerful force,” she said. “It’s certainly an issue that’s facing so many of our low-wage workers in California, and anything that puts a highlight on this practice and really pressures employers to think about these practices is a good thing.”

Sears, Target and Ann Inc. said in separate statements that they do not have on-call shifts for their workers. J.C. Penney said it has a policy against on-call scheduling.

TJX spokeswoman Doreen Thompson said in a statement that company management teams “work to develop schedules that serve the needs of both our associates and our company.”

Gap said in a statement that the company has been working on a project with the Center for WorkLife Law at UC Hastings College of the Law to examine workplace scheduling and productivity and will see the first set of data results in the fall.

“Gap Inc. is committed to establishing sustainable scheduling practices that will improve stability for our employees, while helping toeffectively manage our business,” spokeswoman Laura Wilkinson said.

The remaining companies did not respond immediately to requests for comment.

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GRITtv - February 18, 2014, by Laura Flanders - Bill de Blasio campaigned on ushering in a new era in New York City and actively pursued low-wage voters. Now that he is Mayor, what can the people who elected him do to influence what happens next? It is a question grassroots groups grapple with around the country. On GRITtv this week, Ana María Archila shares a few ideas. Archila was a founder of one of the most effective community groups in New York; now she's heading up a regional initiative that seeks to build popular democracy, not only at the ballot box, but in between elections.

From the school to prison pipeline and stop and frisk to immigration reform and workplace safety regulations, New Yorkers are eager to seize the moment for political change, says Archila. For evidence, consider the crowds that gathered at the Talking Transition Tent which was set up in downtown, immediately following last fall's elections. 

Mayor Bill de Blasio seems to be listening.  Less than two months into his term he has expanded paid sick leave for hundreds of workers around the city, one of the central demands of low wage workers. But how do people ensure that this momentum continues?

"He is only listening because low wage workers are extremely organized," Co-Executive Director for the Center for Popular Democracy Ana María Archila tells GRITtv. "New Yorkers are demanding more."

In addition to paid sick leave, organizers with Make the Road New York (the community organization that Archila describes as her "organizing home") are campaigning for a raise in the minimum wage and increased work place safety regulations. Organizing locally and creating small scale initiatives, like worker or consumer co-ops, can help engage people and address some immediate needs, but ultimately, low wage Americans need to build political power. 

"The biggest co-operative we have is our own government and we need to make sure that it works for us," she says.

For more on ushering in a new progressive era, watch our interview with Joo-Hyun Kang on ending the Stop and Frisk regime.

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Critics say the close connections between prosecutors and local police leads to unjust decisions not to prosecute officers following officer-involved shootings.

The absence of indictments of police officers in shooting deaths – especially in high-profile cases like the deaths of Michael Brown in Ferguson and Tamir Rice in Cleveland – is raising questions about the fairness of using local prosecutors to investigate police officers with whom they may have close ties.

Critics say the close working relationships between local prosecutors and law enforcement injects a bias into investigations of shootings and other deaths at the hands of police. A solution, some suggest, would be to use independent prosecutors to investigate charges of wrong-doing by police officers.

The investigation into the death of Alton Sterling in Baton Rouge, La., offers one example of the closeness often seen between prosecutors and police departments. East Baton Rouge District Attorney Hillar Moore recused himself from the investigation, as he had worked closely with both police-officer parents of one of the officers involved in the shooting. 

When a police officer is involved in a shooting, often the officer's own police department opens an internal investigation into the incident. In some cases, says Walter Katz, an independent police auditor of the city of San Jose, Calif., who has studied investigations of police use of lethal force, there is evidence that suggests the investigator's close relationship to the officer can lead to a lack of objectivity.

"That can be amplified when also the local prosecuting agency is the agency that reviews to decide whether or not to file criminal charges against a police officer," Mr. Katz tells The Christian Science Monitor. "In smaller jurisdictions ... they're going to have a close working relationship, so it creates the potential impression that it's not an arm's length review of the use of force."

The scarcity of indictments in a variety of high-profile shootings has increased scrutiny of officer prosecutions by local authorities. The prosecutors in both the Tamir Rice case in Cleveland and the Michael Brown case in Ferguson said they believed the officers involved had acted legally. Both were accused of not presenting a fair review of possible charges to the grand juries, as Ari Melber, MSNBC’s chief legal correspondent, explained in The Washington Post.

The problem of officer-involved shootings of blacks wouldn't be solved with independent prosecutors, Marbre Stahly-Butts, the deputy director of racial justice for the Center for Popular Democracy, a progressive advocacy organization, tells the Monitor. But "certainly accountability is an essential step that needs to happen," she says.

"We have the common sense that asking prosecutors who work everyday with police and depend on police for their cases, to then be objective in prosecuting them, is just not reasonable," Ms. Stahly-Butts says.

Local advocates are working to address these issues, Stahly-Butts says, especially in St. Louis and New York, where it has contributed to the passage of an executive order ensuring independent prosecutors.

On the federal level, Congressman Steve Cohen (D) of Tennessee is sponsoring a bill that would withhold federal funding from law enforcement unless the use of independent prosecutors to address instances of deadly force by police is instituted.

"There's no good reason not to have independent prosecutors," he tells the Monitor. "If you have the prosecutors who work with the law enforcement agency, which they do hand-in-glove to investigate cases and present cases, there is... an appearance of, if not outright, impropriety."

This can limit the citizenry's faith in the justice system, especially if no charges are brought against the officers, Representative Cohen says. On the flip side, when local prosecutors do bring charges, police can react negatively. After Baltimore State's Attorney Marilyn J. Mosby brought charges against officers in the death of Freddie Gray, some believe there was a work slowdown among Baltimore Police, which police officials denied, the Baltimore Sun reported. This hurts the entire community, Cohen says.

The bill, introduced in October 2015, has 80 co-sponsors as of Wednesday morning. Several states have made moves to implement independent prosecutors, including Connecticut and New York. Cohen says it is important to set a nation-wide standard, but House Judiciary Chairman Rep. Bob Goodlatte (R) of Virginia has not yet scheduled a hearing.

The bill is opposed by the National Association of Police Organizations, a law enforcement advocacy group. The organization's executive director, William Johnson, wrote a letter to Cohen expressing fears that officers would face "a great deal of pressure" if investigated by independent prosecutors, The Hill reported. 

"There is a risk that decisions to prosecute would be made based on politics, not on the law and admissible evidence," Johnson wrote. "NAPO is concerned that an officer would be indicted, even if he/she did nothing wrong."

Johnson did not respond to requests for comment from the Monitor.

Cohen says local law enforcement may oppose his bill because they benefit from the current system and may be "getting home cooking".

"That's not what justice is about," he says. "All games should be on neutral courts."

By AIDAN QUIGLEY 

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