Modern Monetary Theory Grapples with People Actually Paying Attention to It
Modern Monetary Theory Grapples with People Actually Paying Attention to It
Looking ahead, MMT advocates hope to grow their movement through grassroots organizing. One example they pointed to was...
Looking ahead, MMT advocates hope to grow their movement through grassroots organizing. One example they pointed to was Fed Up, a national campaign launched in 2015, whereby low-income workers and union members pressured the Federal Reserve to not hike interest rates, a rare instance of popular pressure being applied to monetary policy. Fed Up made the case that there was no inflation pressure forcing them to raise rates and that doing so would suppress their already low wages.
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Former Fed Adviser, Activists Lay Out a Plan for Change at the Fed
Former Fed Adviser, Activists Lay Out a Plan for Change at the Fed
A former Federal Reserve adviser is joining with an activist group to argue for overhauls at the central bank that they...
A former Federal Reserve adviser is joining with an activist group to argue for overhauls at the central bank that they say would distance it from Wall Street and make its activities more transparent and accountable to the public.
Dartmouth College economics professor Andrew Levin—special adviser to Ben Bernanke and Janet Yellen between 2010 and 2012 when they were Fed chairman and vice chairwoman—is pressing for the overhaul with Fed Up coalition activists.
Dartmouth College economics professor Andrew Levin, special adviser to then Fed Chairman Ben Bernanke between 2010 to 2012, is pressing for the overhaul with Fed Up coalition activists. Many of the proposed changes target the 12 regional Federal Reserve Banks, which are quasi-private and technically owned by commercial banks in their respective districts.
“A lot of people would be stunned to know” the extent to which the Federal Reserve is privately owned, Mr. Levin said. The Fed “should be a fully public institution just like every other central bank” in the developed world, he said in a conference call announcing the plan. He described his proposals as “sensible, pragmatic and nonpartisan.”
The former central bank staffer said he sees his ideas as designed to maintain the virtues the central bank already brings to the table. They aren’t targeted at changing how policy is conducted today. “What’s important here is that reform to the Federal Reserve can last for 100 years, not just the near term,” he said.
That said, what is being sought by Mr. Levin and the activists is significant and would require congressional action. Ady Barkan, who leads the Fed Up campaign, said the Fed’s current structure “is an embarrassment to America” and Fed leaders haven’t been “willing or able” to make changes.
A Federal Reserve spokesman declined to address the proposal.
Mr. Levin wants the 12 regional Fed banks to be brought fully into the government. He also wants the process of selecting new bank presidents—they are key regulators and contributors in setting interest-rate policy—opened up more fully to public input, as well as term limits for Fed officials.
Mr. Levin’s proposal was made in conjunction with the Center for Popular Democracy’s Fed Up coalition, a group that has been pressuring the central bank for more accountability for some time. The left-leaning group has been critical of the structure of the regional banks, and has been pressing the Fed to hold off on raising rates in a bid to make sure the recovery is enjoyed not just by the wealthy, in their view.
The proposal was revealed on a conference call that also included a representative from Bernie Sanders’s presidential campaign, although all campaigns were invited to participate.
Mr. Levin says the members of the regional Fed bank boards of directors, the majority of whom are selected by the private banks with the approval of the Washington-based governors, should be chosen differently. The professor says director slots now reserved for financial professionals regulated by the Fed should be eliminated, and that directors who oversee and advise the regional banks should be selected in a public process involving the Washington governors and local elected officials. These directors also should better represent the diversity of the U.S.
Mr. Levin also wants formal public input into the selection of new bank presidents, with candidates’ names known publicly and a process that allows for public comment in a way that doesn’t now exist. The professor also wants all Fed officials to serve for single seven-year terms, which would give them the needed distance from the political process while eliminating situations where some policy makers stay at the bank for decades. Alan Greenspan, for example, was Fed chairman from 1987 to 2006.
With multiple vacancies in recent years, the selection of regional bank presidents has become a hot-button issue. Currently, the leaders of the New York, Philadelphia, Dallas and Minneapolis Fed banks are helmed by men who formerly worked for or had close connections to investment bank Goldman Sachs.
Mr. Levin called for watchdog agency the Government Accountability Office to annually review and report on Fed operations, including the regional Fed banks. He also wants the regional Fed banks to be covered under the Freedom of Information Act. A regular annual review hopefully would insulate the effort from perceptions of political interference, Mr. Levin said.
By Michael S. Derby
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Meet The ‘Rapists’ Who Built Donald Trump’s Empire
As a real estate tycoon, Donald Trump built up and has given his name to ...
As a real estate tycoon, Donald Trump built up and has given his name to clothing lines, hotels,resorts, golf courses, a winery, and apartment buildings. And for a man who has unapologetically characterized Mexican immigrants as rapists and drug dealers, and has said that infectious diseases are spilling across the border, Trump has decided to work in industries where it’s impossible to avoid the Latino immigrants he is maligning.
A 2010 Current Population Survey found that more than 200,00 foreign-born workers work in the hospitality industry, nearly 1.2 million foreign-born workers hold construction occupations, and another 1.3 million foreign-born workers are employed in the food service industry. The data doesn’t break down the figures by nationality and legal status, though a Southern Poverty Law Center survey found that Latino immigrants are most often employed in construction, factory work, cleaning, and restaurant work.
A 2011 National Council of La Raza study corroborated those results, finding that nearly one in five employees in the accommodation industry is Latino. The group is also overrepresented in “nearly all the major service jobs in the accommodation industry,” the NCLR study stated.
For Trump, that overrepresentation of Latino laborers could very well mean that at least some of his workers are from the country that he’s made inflammatory remarks about. And if he took a stroll through some of the properties that he owns long after business hours are over, he might encounter many of these “good people“:
Construction workers
As the Washington Post reported this week, Trump relies on both undocumented and legal immigrants on the construction site of his hotel in Washington, D.C. Trump has also put undocumented immigrants on the payroll in the past. In the 1980s and 1990s, Trump was embroiled in a 15-year lawsuit for allegedly cheating 200 undocumented Polish immigrants out of meager wages and fringe benefits during the demolition of the building that preceded Trump Tower, the New York Times reported in 1998.
Trump doesn’t think it’s “crass” to tell people that he’s “really rich,” (he has a net worth anywhere between $4.1 billion and $8.7 billion), but his wealth isn’t solely from his own doing. He likely had help — as he currently does in D.C. — from immigrants like Ramon Alvarez, a window worker, who told the Washington Post, “Do you think that when we’re hanging out there from the eighth floor that we’re raping or selling drugs? We’re risking our lives and our health. A lot of the chemicals we deal with are toxic.”
A 2013 Center for Popular Democracy report found that the majority of construction site accident victims in New York State are Latinos and/or immigrant workers. Only 34 percent of all construction workers in New York state are Latino and/or an immigrant, but they comprise 60 percent of all OSHA-investigated “fall from an elevation fatalities” in the state. A 2008 Pew Hispanic study found that 17 percent of construction workers were undocumented.
Some of these workers are subject to wage theft. Fernando, an undocumented construction worker and painter, told ThinkProgress in March that he joined an union because “the contractor refused to pay me and they helped me get my money back.” He was also serious injured twice on the job, once in Galveston, Texas after Hurricane Ike.
Golf course maintenance workers
About 180,000 maintenance workers keep the nation’s 15,619 golf courses green and pristine across the country. As a four-part Golf Digest series documented, immigrants do most of the maintenance work on golf courses. “We get up early and try to stay out of the way,” one golf course worker told Golf Digest. “We don’t know anything about the players, and they don’t know anything about us.”
Most of the time, American workers just aren’t “willing to do those jobs,” Chava McKeel, the associate director of government relations for the GCSAA said.
“The Golf Course Superintendents Association of America (GCSAA) estimates that two-thirds of the maintenance workforce is Latino, with the largest presence in California, Texas and Florida (85 percent), followed by the Northwest (50 percent) and the Midwest/Mideast (10 to 20 percent),” Golf Digest reported. A 2008 Cornell study backs up the findings, noting that superintendents responding to their survey indicated that “72 percent of their workforce at the peak of the season was Hispanic.”
The Trump organization owns seven golf courses throughout the country. The PGA of America saidon Tuesday that the Grand Slam of Golf tournament won’t be played at the Los Angeles golf club.
Restaurant workers
The 2008 Pew Hispanic study found that about one in ten workers in the restaurant industry is an immigrant. Of those, about 20 percent of restaurant cooks and 30 percent of dishwashers are undocumented, Seattle’s KUOW reported.
Latinos are “disproportionately likely to be dishwashers, dining room attendants, or cooks, also relatively low-paid occupations,” an Economic Policy Institute report stated last year. The study also found that “one in six restaurant workers, or 16.7 percent, live below the official poverty line” while “more than two in five restaurant workers, or 43.1 percent, live below twice the poverty line.”
Restaurateur and TV star Anthony Bourdain told the Houston Press in 2007, “It is undeniable…I know very few chefs who’ve even heard of a U.S.-born citizen coming in the door to ask for a dishwasher, night clean-up or kitchen prep job.”
Though Trump is mainly in the hotel business, his establishments have restaurants, like the Trump Grill located in the atrium of the Trump Tower and The Terrace at Trump Chicago. However, his recent comments are threatening to derail plans for a new restaurant at the planned Trump International Hotel in D.C. At least 2,510 people have already signed a petition asking Chef Jose Andres to back out of working at the restaurant.
Hotel workers
According to the 2015 Bureau of Labor Statistics, there are about 36,700 Latinos working in the building and grounds cleaning and maintenance occupations, such as janitors, maids and housekeepers, pest control workers, and grounds maintenance staff. There are also an additional25,100 hotel, motel, and resort desk clerks who identify as Latino.
A 2009 study of workers across 50 U.S. hotels found that Latino women are twice as likely to be injured as white house keepers and 1.5 times more likely to be injured than men. The New York Times reported that housekeepers have a high injury rate since they have to do repetitive tasks, lift heavy mattresses, and work quickly to clean rooms.
“I have worked as a housekeeper for about 13 years. I work in pain constantly. My body aches all over, but most of all my back from bending and lifting throughout the day,” one housekeeper who worked at a Hyatt hotel said, according to a Work Safe report.
Unlike Trump, some conservative hoteliers have recognized the necessity of immigrant workers. J.W. Bill Marriott, then CEO and now Executive Chairman and Chairman of the Board of Marriott International, has called for immigration reform several times in 2007, 2010, and again in 2012.
Source: ThinkProgress
High-ranking Fed official resigns, reveals role in leaked confidential information
High-ranking Fed official resigns, reveals role in leaked confidential information
Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, resigned from his post effective Tuesday, after...
Jeffrey Lacker, president of the Federal Reserve Bank of Richmond, resigned from his post effective Tuesday, after revealing he'd played a role in a leak of sensitive information to a financial analyst several years ago.
In a statement, Lacker said he spoke on Oct. 2, 2012, with an analyst at Medley Global Advisors, a macroeconomic research firm owned by the Financial Times Limited. The analyst asked about non-public policy decisions.
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Voices: A middle ground in the immigration debate
MIAMI — Not that long ago, part of my morning routine involved catching up on what states around the country were doing...
MIAMI — Not that long ago, part of my morning routine involved catching up on what states around the country were doing that day to crack down on illegal immigration.
That habit started in 2010, when Arizona passed a law empowering state police to enforce immigration laws. One by one, other states started following suit. Utah. Indiana. South Carolina. Alabama wanted to check the immigration status of children enrolling in its public schools. Georgia was so successful driving undocumented immigrants out of the state that it turned to prison labor to harvest its abandoned crops, a plan that quickly failed once the prisoners started walking off the job.
Then, something changed. Those laws started getting struck down in courts. Others states halted their efforts to pass Arizona copycat bills. And before I knew it, I was drinking my morning glass of orange juice while reading through articles about local efforts to make life easier for undocumented immigrants.
The most interesting of those efforts has been a push to provide local identification cards to undocumented immigrants. The idea is simple: A city or county creates a "municipal ID" that those immigrants can use to interact with city officials, identify themselves to police officers and even open bank accounts so they're not easy, cash-carrying targets for would-be robbers. The IDs aren't substitutes for driver's licenses or federally-accepted forms of ID — for example, you can't get through security at an airport or board a flight with one.
The number of places approving those IDs has surged in recent months, with Hartford, Ct., Newark, N.J., Greensboro, N.C., and New York City approving them.
The wave of cities adopting municipal IDs doesn't mean the country has suddenly turned completely immigrant-friendly. Just tune in to the next Republican presidential debate to see how many candidates are proposing mass deportations, cutting down on legal immigration channels and missile-firing drone patrols along the southwest border. Or watch as states try to crack down on sanctuary city policies within their borders.
But what the cities adopting municipal IDs show is that there may be a middle ground in the immigration debate that has been so incredibly polarized in recent years. On the one side, we had states like Arizona passing laws to go after undocumented immigrants. On the other, we had cities and counties like San Francisco adopting "sanctuary city" policies that have allowed some undocumented immigrants with violent, criminal backgrounds to walk free.
The reason we've seen that pendulum swing so wildly in opposite directions is that Congress and the White House have been unable to come together and fix our nation's broken immigration system. That's why millions of undocumented immigrants continue pouring over our southwest border. That's why millions of legal immigrants can stay in the country long past the time their visas have expired. And that's why Americans can continue hiring those undocumented immigrants with little fear of punishment.
What's left is a system that has effectively allowed 11 million undocumented immigrants to stay in the country. And whoever you blame for that, they've been left in a legal limbo that makes life incredibly difficult for them.
Take Rosana Araújo, an Uruguayan who visited Miami on a three-month visa 13 years ago and never went back. Araújo has spent her years here cleaning houses, warehouses, day care centers, whatever she could do to get by. But the 47-year-old said the fact that her only form of identification is her Uruguayan passport has made her life difficult in so many ways.
She can't use a public library. She can't get past the security desk of local hospitals to visit sick relatives or friends. She said she couldn't even return a pair of pants atWalmart because they insisted on a Florida ID card.
Most important, Araújo said she didn't call police after she was sexually assaulted in 2009 because she had heard from other undocumented immigrants who had been victims of sexual violence that they were caught up in immigration proceedings after reporting the crime.
"The first thing they do is ask for your identification. And the passport for them isn't valid," she said. "That makes you far more vulnerable that the police are going to pick you up for not having identification."
Now Araújo is helping several groups push government agencies in Miami-Dade County to adopt the municipal IDs. The Center for Popular Democracy, a group that advocates for immigrant rights, estimates that two dozen other cities, including Phoenix, New Orleans and Milwaukee, are now considering adopting the program
Municipal IDs won't solve our nation's immigration problem. But they just might be the best short-term solution to ensure undocumented immigrants aren't completely helpless as we all wait for Washington to find a solution.
Hold JPMorgan Chase Accountable for Profiting Off Trump’s Attacks on Immigrants
Hold JPMorgan Chase Accountable for Profiting Off Trump’s Attacks on Immigrants
Take Action Now gives you three meaningful actions you can take each week—whatever your schedule. This week, you can...
Take Action Now gives you three meaningful actions you can take each week—whatever your schedule. This week, you can take a picture to support Nissan workers in Mississippi, hold JPMorgan Chase accountable for profiting off-immigrant detention centers, and lobby your members of Congress to think beyond resistance. You can sign up for Take Action Now here.
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Gillibrand Has Received Big Campaign Donations from Puerto Rico Bondholders
Gillibrand Has Received Big Campaign Donations from Puerto Rico Bondholders
“Politicians that receive money from hedge fund managers like Seth Klarman and Dan Loeb should understand that their...
“Politicians that receive money from hedge fund managers like Seth Klarman and Dan Loeb should understand that their money is coming from people who have pushed austerity and privatization as the solution to Puerto Rico’s humanitarian crisis,” Julio Lopez Varona, co-director of the Community Dignity Campaign with the Center for Popular Democracy, told Sludge. “This solution has proven to help the rich get richer and the poor get poorer while pushing hundreds of thousands to leave the island.”
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Economic Recovery? Not for Ferguson or Black America
MSNBC - March 13, 2015, by Jane Timm - “America is coming back,” President Obama declared late last month, touting...
MSNBC - March 13, 2015, by Jane Timm - “America is coming back,” President Obama declared late last month, touting strong job creation and rising wages. “We’ve risen from recession.” But for Ferguson, Missouri – and black America as a whole – the recovery still hasn’t come.
“Black unemployment rates are still at the height of the national unemployment rates during the Great Recession,” the Center for Popular Democracy’s Connie Razza told msnbc. “We’re still in a recession in black America.”
Indeed, while American unemployment is down to 5.5%, black unemployment is at 10.4%. While wages have risen over the last 15 years by 45 and 48 cents for Latino and white workers, respectively, they’ve fallen 44 cents for black workers, according to a study produced by Razza at the left-leaning organization. The net wealth of African-American families, too, is hurting. “As the wealth of the other groups is stabilizing in the wake of the recession, the wealth of the African-American community is declining,” Razza added.
Blacks have long faced unemployment rates that are double those of white workers – according to Pew, it’s been that way since 1954 – but sources say the recession has hurt black America, and the St. Louis region, particularly hard. “It’s not just a recession of jobs, it’s a recession of income; it’s a recession of wealth in the sense that a whole lot of homes in Ferguson are still under water. It’s a three-way disaster for people in that part of St. Louis county,” Dave Robertson, a political science professor at the University of Missouri at St. Louis, told msnbc. “In places like Ferguson, it’s not coming back quickly.
The most recent racial employment breakdown indicates that Missouri’s problems may be worse than the rest of the country’s, too. In Missouri, black unemployment was 15.7% in the fall of 2014 – triple the state’s 4.5% white unemployment at the time.
“It’s not just unemployment,” Robertson added. “It’s the poor wages, it’s the under-employment, it’s the part-time work.”
And economic inequality is fueling the protests and activist movement, sources said. “There’s a real sense of despair especially for those young folks. You just don’t have the economic opportunities for young people. Especially young people coming out of sub-standard school districts … not having the tools prepared for the economy,” Ferguson activist Umar Lee told msnbc. “And then there’s a shortage of jobs, leaving young people at a disadvantage, and so they just drop out.”
“That’s the driving force, we believe,” former state Sen. Maida Coleman told msnbc. She’s heading up Gov. Jay Nixon’s Office of Community Engagement, a state office formed in the wake of August’s protests to focus on low-income and minority communities. “What’s happening now is that we see a real need to address these high levels of unemployment, just as we are addressing education,” Coleman said. “The hopelessness needs to be addressed.”
But the problem extends beyond Ferguson; when there are jobs to be had, black Americans struggle to get hired.
A 2013 study found that black college grads had twice the unemployment rate of white college grads and that racial inequality actually grew during the recovery. A 2014 study by nonpartisan education and economic advocacy group the Young Invincibles found that black workers need college credit to compete with white high school drop-outs thanks to racial discrimination.
Getting an interview may be half the battle, too. A 2003 study found that very white-sounding names received 50% more callbacks for interviews than a very black-sounding name.
For these reasons, Razza and the Center for Popular Democracy are urging the Federal Reserve to keep interest rates low. The Fed had vowed to keep rates low until employment dipped below 6.5% and the recovery came in earnest, but Razza argued that the country needs to be closer to “full employment”—that is there are close to the same number of jobs as people who want to work—before the Fed can really stop intervening. “The fact that black Americas are still experiencing a recession is really … the canary in the coal mine of the recovery,” she said.
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As Wells Fargo is Accused of Fabricating Foreclosure Papers, Will Banks Keep Escaping Prosecution?
Democracy Now - March 21, 2014 - A new internal report says the Justice Department massively overstated its successes...
Democracy Now - March 21, 2014 - A new internal report says the Justice Department massively overstated its successes in targeting mortgage fraud while in fact ranking it as a low priority for investigation. The Justice Department’s inspector general says despite playing a central role in the nation’s financial crisis, mortgage fraud was deemed either a low priority or not a priority at all. This comes as a recently revealed internal Wells Fargo document appears to guide lawyers step by step on how to fabricate missing documents to foreclose on homeowners. Wells Fargo is the country’s largest mortgage servicer and services some nine million home loans.
Transcript
This is a rush transcript. Copy may not be in its final form.
JUAN GONZÁLEZ: A new internal report says the Justice Department massively overstated its successes in targeting mortgage fraud while in fact ranking it as a low priority for investigation. The Justice Department’s inspector general says despite playing a central role in the nation’s financial crisis, mortgage fraud was deemed either a low priority or not a priority at all. In one instance, Attorney General Eric Holder claimed to have filed lawsuits on behalf of homeowner victims for losses totaling more than $1 billion, but the actual amount was 91 percent less, around $95 million.
This comes as a recently revealed internal Wells Fargo document appears to guide lawyers step by step on how to fabricate missing documents to foreclose on homeowners. Wells Fargo is the country’s largest mortgage servicer and services some nine million home loans.
AMY GOODMAN: State and federal regulators are now focusing on the allegations in the lawsuit brought by Linda Tirelli, who joins us now. She’s an attorney representing clients being foreclosed on by Wells Fargo. Earlier this month, she discovered the Wells Fargo manual on how to produce missing documents to foreclose on homeowners. She’s a partner at the Garvey, Tirelli & Cushner law firm in White Plains, New York.
In Minneapolis, we’re joined by Kevin Whelan, campaign director for the Home Defenders League, a national movement of underwater homeowners and allies who organize to keep people in their homes and demand accountability.
Wells Fargo declined Democracy Now!'s interview request, saying they're in a, quote, "quiet period" pending the announcement of their quarterly earnings.
We welcome you both to Democracy Now! Linda Tirelli, let’s begin with you.
LINDA TIRELLI: Good morning.
AMY GOODMAN: Can you describe this manual, how you got it and what it reveals?
LINDA TIRELLI: Absolutely. The manual that I have, it’s actually entitled the "Wells Fargo Home Mortgage Foreclosure Attorney [Procedure] Manual, Version 1." And it says on it that it’s last published 2/24/2012. Mind you, the national mortgage settlement agreement was announced a week prior, on 2/19/2012.
The way I obtained it, it was actually sitting right there on the Internet, of all things. A colleague of mine, through a Max Gardner’s Bankruptcy Boot Camp, which I am a member, an active member, gave it to me and said, "Hey, I found this online, and I know you’re doing a lot of Wells Fargo cases. Maybe you can use this."
Reading it, my jaw just dropped. As I see it, it’s clearly outlining procedures, not just for the $12-an-hour robo-signers that we’ve heard about all these years, but for the lawyers, who need to be held accountable to a much higher degree. It’s the manual for the lawyers to actually fabricate documents, as I see it, and request that documents that are lacking be fabricated by Wells Fargo. It’s absolutely appalling.
JUAN GONZÁLEZ: Well, you know, we’ve had on Democracy Now! a couple of times the Brooklyn Supreme Court judge, Arthur Schack, who raised a campaign over—not only over the robo-signers in many cases that he had before his court, but also over the bank officials and the attorneys who participated in this fraud. And there have been several judges in different parts of the country who have raised these issues. How do you think this advances the whole issue of going after—of having the smoking gun to go after these companies?
LINDA TIRELLI: Well, I think that judges cannot make determinations based on suspicion. OK? This is the first and only internal document that I’m aware of that clearly outlines the fraud. And that’s how I put it in my allegations to the court. And we are very, very fortunate in New York to have a number of proactive judges who get it, but unfortunately, they’re few and far between across the country. My hope is that judges as wonderful as Arthur Schack and as great as many of our federal judges—I do appear mostly in federal courts—that they will be proactive, they will take this seriously and start to question Wells Fargo on their procedures.
AMY GOODMAN: I want to read a bit from the Wells Fargo document. In this section called Note Endorsement, it says, quote, "If the blank endorsement is in the file for an original state, execute the endorsement, send the original document to the attorney, and complete the Z02 step." Can you explain what this means?
LINDA TIRELLI: Sure. I take that to mean that if there is actually an endorsement that exists, they need to endorse it. But as the party in—
JUAN GONZÁLEZ: And by "endorsement," you mean?
LINDA TIRELLI: Sign it over.
JUAN GONZÁLEZ: Oh.
LINDA TIRELLI: OK. But the question is: Do they have the authority to sign it over? Is it an authorized endorsement? Who’s signing it over? As the lawyer, I would need to know that before proceeding with a foreclosure. If it’s a document that needs to—if it was a note that needed to be endorsed, under a pooling and servicing agreement, which is followed by every securitized trust—and most of these loans, let’s face it, are owned by securitized trusts in some form or another—they should have been endorsed long before the foreclosure was ever started, at the time that it was actually acquired by the trust, or allegedly acquired by the trust.
AMY GOODMAN: So this manual talks about how to fabricate a document—
LINDA TIRELLI: Absolutely.
AMY GOODMAN: —that you don’t have, that you need.
LINDA TIRELLI: That’s how I’m reading it.
AMY GOODMAN: That Wells Fargo would need.
LINDA TIRELLI: Exactly. That’s—
AMY GOODMAN: To foreclose on the house.
LINDA TIRELLI: Exactly right. That’s exactly how I’m reading it. I’m reading it to say that it’s not just, when there is a blank endorsement, fill in the blank. But sometimes when there—there’s actually a procedure in here, as I read it, for when there’s no endorsement, OK? Go ahead and endorse the note. Just request that the note be endorsed. And that’s what we call, in our area of law, a "tada endorsement." The bank produces a copy of a note, just for example, that has no endorsement on it, and then when we ask about it and say, "Gee, this note is not endorsed to your client. How is it that you’re—you know, you’re bringing foreclosure?" and they say, "Oh, here, use this version. Tada! Now we have an endorsement." And it’s always a rubber stamp, that you or I could go to Staples and purchase for $9.95.
JUAN GONZÁLEZ: You also, one of your cases, came across a document which was purportedly from an official of Washington Mutual Bank in 2010, but Washington Mutual didn’t exist in 2010, because it had collapsed back in 2008.
LINDA TIRELLI: 2008, that’s right. That document was signed by Mr. John Kennerty in—who works for Wells Fargo, or worked for Wells Fargo at the time. And in this procedure manual, there’s actually a procedure for obtaining what’s called an assignment of mortgage, OK? So, basically, as I’m reading this procedure, it’s saying, "Gee, if you need an assignment, the attorney should request it through the document department, and then, magically, one will appear for you." And that’s exactly what we’re seeing. The people that work for Wells Fargo in these various departments, when they receive a request from an attorney, they take that as permission to actually sign something, without doing any research whatsoever. How is it, as you point out, we had anything assigned from in a company that ceased to exist two years prior? It just simply makes no sense. That document’s fabricated. And in that particular case, I will point out, the judge actually deemed that document to be a fraudulent document on record.
AMY GOODMAN: I remember when Congresswoman Marcy Kaptur was standing on the floor of the House and telling homeowners, "Stay in their homes and demand that they produce the note. Produce the note." I wanted to go to Eric Schneiderman. Last May, the New York attorney—the New York attorney general announced plans to sue Bank of America and Wells Fargo for violating the terms of a settlement aimed at curbing foreclosure abuses. The $26 billion settlement was reached in 2012 between five major banks and 49 attorneys general. It provided basic protections for homeowners, such as requiring banks to notify them about missing documents within a certain time period. But Schneiderman said the banks had violated the terms of the settlement with impunity. At the news conference in May, he lifted a massive sheaf of papers to show the hundreds of complaints issued by homeowners against the banks.
ERIC SCHNEIDERMAN: Two of the participating servicers, Wells Fargo and Bank of America, have flagrantly violated their obligations under the settlement. I’ve sent a letter to the monitoring committee, the body that oversees the implementation of the national mortgage servicing settlement, notifying them of my intention to sue both Wells Fargo and Bank of America for noncompliance with servicing standards spelled out in the settlement. This enforcement action, which is the first taken under the settlement, is based on 339 individual complaints from New Yorkers against these two banks in just the last six months
AMY GOODMAN: Linda Tirelli, can you explain what happened with this case?
LINDA TIRELLI: Yes. Well, first of all, I want to point out, and very much to Mr. Schneiderman’s credit, within four hours of the New York Post writing the article exposing this documents, within four hours, I received not only a phone call, but an email from Attorney Schneiderman’s office, and we had a long discussion about it. I also received the phone call and an email from the New York State Division of Financial Services. So I’m hoping that they are now launching new investigations.
Basically, to put—as I understand Mr. Schneiderman’s point, Wells Fargo was signing off on the national mortgage settlement agreement out of one side of its mouth. Out of the other side, they were republishing their manual to say, "Hey, we’re going to continue business as usual. All right? Throw some money at it. It’s done. Quiet down the homeowners. We’ll just continue business as usual." And that’s what we’re seeing. That’s exactly what we’re seeing.
JUAN GONZÁLEZ: Kevin Whelan, from the Home Defenders League, can you put this in a national context of the mortgage crisis? Here we are now, six years into the home mortgage crisis that crashed the entire economy.
KEVIN WHELAN: Absolutely. Thanks you for having me, very much, today. We hear, every time there is an uptick in real estate prices in some parts of the country, that the foreclosure crisis or the mortgage crisis is over. And certainly, Wells Fargo and the big banks are back to making record profits and feel like everything is great. But foreclosures are still tearing apart many communities, particularly communities of color that were targeted for predatory and subprime lending. And one in five American homeowners is still underwater, meaning they owe more on their house than the house is currently worth.
So we’ve made the banks whole without effectively curbing their abusive practices to give homeowners the runaround, to use falsified documents and to rush toward foreclosure when there’s a perfectly good way to reach a different settlement. And they’ve not done enough to make homeowners whole, including doing principal reduction that they promised to do under settlements.
AMY GOODMAN: And can you respond to this latest news about the attorney general—the office making a low priority or no priority at all going after these mortgage lenders?
KEVIN WHELAN: Yeah, absolutely. The news is no surprise to people that have been fighting foreclosure in communities around the country. We work with 25 community groups in our at-large organization, so people can come find us at HomeDefendersLeague.org and get on a phone call and learn how to start a petition and fight for their homes. And people have been, you know, in cases all over the place, trying to stave off foreclosure.
We had a family in New Jersey last month, Paulette McQueen and her 86-year-old mom, who had missed one mortgage payment in 2010, went to Wells Fargo the next month with both checks in hand, and Wells Fargo wouldn’t take their money and started a three-year campaign to take their house. That was only resolved when people in 13 cities delivered petitions to Wells Fargo’s offices around the country. And they finally got a call back and are going to work out a solution to be able to stay in their home. It was a whole week before a sheriff’s sale.
So, it’s—you know, families that are facing this know both that the housing crisis isn’t over and that nothing has happened that’s on a deep enough or broad enough scale to make the banks fearful or sorry for either the harm they’ve done, or change their behavior in fundamental ways.
JUAN GONZÁLEZ: Now, there are some localities, some local governments, that have tried—intervened themselves in trying to beat back the crisis of people being kicked out of their homes. Could you talk about some of those examples?
KEVIN WHELAN: Yeah, there—one thing that’s—we know there’s something to it, because the banks, led by Wells Fargo, are especially panicked and angry about the solution. But in Richmond, California—I think you had the mayor of Richmond, Gayle McLaughlin, on the show before—has been a city that’s led the way—and many more are going to follow—to enact principal reduction, meaning resetting loans to their current market value on the local level. And this is exciting because, while these federal agencies, like the Justice Department, are too often captive of the big banks, people can use democracy and win on the local level sometimes.
The concept for this particular program is that cities would work with other investors to buy the loans at their fair market value on the secondary market, which is pennies on the dollar of what these underwater loans are worth, and help refinance homeowners into new loans that have equity. And this is a concept that has gotten started in Richmond, but people are meeting even today in different cities around the country to spread this. And I think, not so much because it would cost them money as because it’s a chance for people to use the rule of law and democracy to impact the economy and impact banks’ behavior, banks like Wells Fargo have sued, unsuccessfully, and made all kinds of threats about redlining communities in order to try to stop it. People can go to FightingForeclosures.org and learn more about that particular plan and get involved in that campaign.
AMY GOODMAN: Kevin Whelan, you’ve been arrested outside of Attorney General Eric Holder—outside the Justice Department, demanding more action. And yet, Linda Tirelli, we have this latest news that as—that the attorney general claimed to have filed lawsuits on behalf of homeowner victims for losses totaling more than a billion dollars. In fact, it was 91 percent less than this, at $95 million. What do you think should happen? Who gets prosecuted here, and who is let go free?
LINDA TIRELLI: I think that at this point, let’s face it, we’re never going to see a perp walk, as much as we’d like to see one, because this is illegal activity that we’re talking about. At the very least, I think now this document gives the New York attorney general free access to every attorney who’s ever followed this manual and hold them accountable, because it is illegal. And we are held, as attorneys, to a much higher standard. We have to do a certain amount of due diligence, and we cannot knowingly produce false documents and submit them into a court of law. Our entire judicial process is based on integrity. This document, as I read it, OK, is going to bypass the integrity of the entire system, and it becomes now the civil procedure rules according to Wells Fargo. And that’s the rules they’re willing to play by.
JUAN GONZÁLEZ: And more importantly, the author of that document, right, who approved that document for all these lawyers to use.
LINDA TIRELLI: Exactly right, exactly right. And I want to point out that I actually introduced this document—
AMY GOODMAN: We have five seconds.
LINDA TIRELLI: —in a motion to reopen discovery after a trial, and my hope is that we will get discovery and get someone to a deposition table and get the answer to that.
AMY GOODMAN: Before Eric Holder was attorney general, he was a senior partner at Covington & Burling. Among the banks they represented, the four largest: Bank of America, Citigroup, JPMorgan Chase and Wells Fargo.
LINDA TIRELLI: No shock there.
AMY GOODMAN: Linda Tirelli, attorney representing clients being foreclosed on; Kevin Whelan of Home Defenders League, thanks so much for joining us.
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Gov. Cuomo Signs New Legislation Making it Easier for Workers and the State Labor Department to Fight Wage Theft
New York Daily News - January 4, 2014, by Albor Ruiz - It feels good to be able to write about something positive for...
New York Daily News - January 4, 2014, by Albor Ruiz - It feels good to be able to write about something positive for New York workers in my first column of 2015. After all, measures that benefit them and rein in abuses by their bosses are as rare as snow in August.
It took a long time but on Monday Gov. Cuomo gave a last-minute Christmas gift to hundreds of thousands of low-wage laborers across the state by signing legislation making it easier for workers and the state Department of Labor to fight wage theft, which in New York has been an epidemic for many years.
“I am tired of waiting,” said Marcos Lino, who filed a complaint with the Department of Labor in 2008 after enduring four years of being shortchanged by his boss in a small Flushing grocery store. Six years have passed and his case is still unresolved.
Hopefully now Lino — and thousands more who, like him, have waited far too long to recover what is rightfully theirs — will finally get some justice.
“The groundbreaking legislation signed today will protect both workers from abuse, and law-abiding businesses from being undercut by employers who turn a profit by breaking the law,” said Andrew Friedman, co-executive director of the Center for Popular Democracy.
It should also help reduce the backlog at the Department of Labor.
The legislation, sponsored by Bronx Democratic Leader and now Assembly Labor chair Carl Heastie and state Sen. Diane Savino, improves on the landmark Wage Theft Prevention Act (WTPA), also sponsored by them and signed in 2010 by then-Gov. Paterson. The WTPA strengthened penalties for wage theft and protections for workers who report it.
“Mugging employees out of pay not only hurts families, it hurts communities. It makes honest employers less competitive,” Savino said when the WTPA was signed into law . “Businesses that are good citizens and pay their employees exactly what is owed them and on time, as is required by law, should not be at a disadvantage to companies that are illegally withholding wages from their workers.”
The New York Coalition to End Wage Theft supports the new legislation, which also has the backing of labor, community and religious groups, and law-abiding employers. It improves on retaliation protection for workers, transparency provisions to help advocates and workers identify cases of wage theft and helps facilitate wage theft policing.
But as Deborah Axt, co-executive director of Make The Road New York, warns, the new law is no panacea.
“Much remains to be done,” she said, “to eliminate the scourge of wage theft that still victimizes working families and responsible businesses alike.”
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