Trump makes first mark on Fed as Senate approves key nominee
President Donald Trump officially made his first mark on the Federal Reserve on Thursday, when the Senate voted 65-32...
President Donald Trump officially made his first mark on the Federal Reserve on Thursday, when the Senate voted 65-32 to approve his first and only nominee to the central bank’s board.
Randal Quarles, a private equity investor and veteran of the Treasury Department, will also take over as the Fed's top banking regulator as the first appointee to the position of vice chairman of supervision, a role created by the 2010 Dodd-Frank Act.
Read the full article here.
After minimum wage changes, Bay Area workers push for ‘fair’ scheduling
After minimum wage changes, Bay Area workers push for ‘fair’ scheduling
As cities all over the state have raised their minimum wages in recent years, labor advocates in the Bay Area are...
As cities all over the state have raised their minimum wages in recent years, labor advocates in the Bay Area are turning to what they see as another piece of the puzzle for improving workers’ lives: scheduling.
From ensuring workers get the full-time hours they desire, to preventing retaliation against them for turning down last-minute schedule changes, several initiatives are aimed at making employees’ schedules more stable and reducing underemployment.
“Now, it’s about getting fair wages and fair hours,” said Jennifer Lin, deputy director of the East Bay Alliance for a Sustainable Economy (EBASE).
Business interests have railed against the idea of regulating scheduling across diverse sectors, and warn of unintended consequences that could actually hurt workers looking for additional hours and flexibility in their schedules.
Angie Manetti, director of government affairs for the California Retailers Association, said that has already happened in San Francisco since that city’s Retail Workers Bill of Rights was passed last year. Managers now choose to leave shifts unfilled to avoid penalty pay from scheduling workers on short notice, leaving heavier workloads on the employees who are working, she said.
San Jose’s Opportunity to Work initiative, an ordinance on the ballot Nov. 8, would require businesses there to offer extra hours to part-time employees before hiring more workers.
The initiative would apply to businesses with 35 or more employees but exclude government jobs and allow companies to apply for a “hardship” exemption.
Dilsa Gonzalez, a San Jose resident who has held a variety of positions in the fast food sector there, hopes the measure will support people like her. Gonzalez works 16 hours per week, but she would like to work 40. When she asks supervisors for additional hours, they tell her there is no work available.
“But then they hire other people,” Gonzalez said through a translator. She tries other means of making money, including recycling or helping her husband, a mechanic, work. But in San Jose, it’s “hard to survive with just a few hours of work,” she said.
“There is a crisis of underemployment in Silicon Valley,” said Ben Field, executive officer of the South Bay AFL-CIO Labor Council, which gathered the required signatures to place the measure on the ballot. “It’s symptomatic of a problem across the country in which more and more wage earners are dependent on part-time work as a main source of income.”
Matthew Mahood, CEO of the San Jose Silicon Valley Chamber of Commerce, counters that the San Jose ordinance would “pit workers against each other” for full-time hours rather than creating more jobs and that the ordinance is too far-reaching.
Meanwhile, in the East Bay city of Emeryville, the City Council passed its “Fair Work Week Initiative” last week.
The initiative requires retail and fast food establishments that have more than 56 employees globally to:
• provide employee schedules two weeks in advance of their shifts;
• allow employees to decline schedule changes that happen within seven days of the changed shift;
• offer extra hours to part-time employees before bringing on new ones;
• provide employees with extra pay for taking on shifts on short notice, known as “predictability pay.”
The initiative also would require employers to allow employees to deny back-to-back closing and opening shifts and to request alternate work schedules without retaliation.
Emeryville has often been a trendsetter when it comes to passing worker protection legislation, EBASE’s Lin said. That includes the $14.44-per-hour minimum wage it established last year that at the time was the highest in the nation. She hopes to push the effort throughout the East Bay in the near future.
Moriah Larkins, an Oakland resident who has worked in retail in Emeryville for five years, is among those who say the unpredictability of retail scheduling has made life difficult. As a single mother, Larkins said, taking on last-minute shifts was difficult because child care is not easy to schedule, but she also often did not get scheduled as many hours as she wanted to pay her bills.
She now works at Home Depot, where her schedule is more secure, allowing her to plan better for her family and financially, she said. Home Depot store manager Lionel Stevens said at the City Council meeting that it issues schedules three weeks in advance, and has an open-door policy for employees who need flexibility.
A study commissioned by Emeryville indicates that relatively few workers believe work scheduling has a negative effect on their life. According to the study, 87 percent of employees said they have influence in creating their schedules, and 76 percent said their schedule has never changed with less than 24 hours of notice.
A separate study led by the backers of the Fair Work Week initiative, EBASE, the Alliance of Californians for Community Empowerment and the Center for Public Democracy found different results: that more workers — roughly two-thirds — get their schedule less than a week in advance and want to work more hours.
Many workers believe an ordinance is needed to close any loopholes for businesses who are not scheduling fairly.
Kelby Peeler, a Union City resident who worked at Barnes and Noble for seven years, said he would often be scheduled 30 hours one week and 10 the next, making it impossible to plan financially, and he often lost sleep with late-night closing shifts paired with opening shifts the next day.
“There are definitely good actors — it’s not like every store is having these problems,” Peeler said. “But you can’t have your schedule based on the whim of a manager.”
By ANNIE SCIACCA
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Interviews for Resistance: New Progressive Coalition Calls for “Millions of Jobs”
Interviews for Resistance: New Progressive Coalition Calls for “Millions of Jobs”
A coalition of unions and other progressive organizations is pushing lawmakers on a jobs and infrastructure bill that...
A coalition of unions and other progressive organizations is pushing lawmakers on a jobs and infrastructure bill that would put millions of people to work.
Read the full article here.
Trump’s Immigration Policy ‘Fever Dream’
“The administration is “creating an environment of profound hostility,” as Ana Maria Archila, the co-executive director...
“The administration is “creating an environment of profound hostility,” as Ana Maria Archila, the co-executive director for the Center for Popular Democracy (CPD), told me. (Archila was one of the women who passionately confronted Senator Jeff Flake in an elevator last week during the Senate hearing on Supreme Court nominee Brett Kavanaugh, shortly before the senator urged an FBI investigation into the sexual-assault allegations.) Together with Make the Road New York (MRNY), CPD published an alarming data brief estimating that if the administration were able to effectively implement its “zero-tolerance” policy—its attempt to prosecute all people who cross the border outside of a port of entry—the number of migrants in private detention centers would rocket from between 290 to 580 percent in the next two years.
Read the full article here.
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.
Read the full article here.
Appointment of Another Former Goldman Sachs Insider Shows Why Fed Presidential Appointment Process Needs Reform
Appointment of Another Former Goldman Sachs Insider Shows Why Fed Presidential Appointment Process Needs Reform
Jordan Haedtler, Campaign Manager for the Fed Up coalition, released the following statement following the Minneapolis...
Jordan Haedtler, Campaign Manager for the Fed Up coalition, released the following statement following the Minneapolis Federal Reserve Bank’s announcement that it would appoint Neel Kashkari as its president:
“For the past year, the Fed Up coalition has worked to develop relationships with the presidents of all 12 regional Federal Reserve Banks, and we look forward to developing a relationship with Neel Kashkari. When he ran for California Governor last year, Mr. Kashkari spent a week posing as a jobseeker in some of the hardest hit parts of the state. We hope Mr. Kashkari recognizes that job prospects remain far too weak for too many people, particularly Black and Latino people, and that his brief experiences searching for jobs in California are the real, lived experience for millions of people every day. Our partners in Minneapolis look forward to welcoming Mr. Kashkari to the Minneapolis region, and showing him the many communities in the region that are still struggling with economic recovery.
"Mr. Kashkari joins a Federal Reserve System that too often excludes the perspectives of working families and communities of color. We are very disappointed that his appointment marks the third presidential appointment this year of a regional Bank president with strong ties to Goldman Sachs. Come January, 1/3rd of the 12 regional Bank presidents will have served in senior roles at the investment bank that most epitomizes the problems that led to the financial crisis.
"Kashkari’s appointment illustrates the problem with the regional Bank president selection process. Federal Reserve Bank presidents are some of the most influential economic policymakers in the country, and they have an obligation to represent the public. Unfortunately, the public is completely shut out of the process for their selection, which is dominated by corporate and financial elites.
"We were very pleased when the Minneapolis Fed took a small and unprecedented step toward transparency by outlining the criteria for their next president. We wish the Minneapolis Fed had gone a step further, publishing the list of candidates being considered, and giving the public an opportunity for input. A history of working with labor and community groups, and an understanding of how working families and communities of color have been impacted by a sluggish economic recovery should qualify candidates for consideration. But the presidential appointments we have seen this year suggest that regional Banks are looking for a history of working at Goldman Sachs instead.”
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www.populardemocracy.org
The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Activists: US Justice Department Response to Baltimore Police Racism Falls Short
Activists: US Justice Department Response to Baltimore Police Racism Falls Short
The response by the US Department of Justice to exposing Baltimore Police Department (BPD) violations of citizens’...
The response by the US Department of Justice to exposing Baltimore Police Department (BPD) violations of citizens’ constitutional rights falls short of addressing the systemic problem of racism in US policing, activists said.
WASHINGTON (Sputnik) — "[The Department of Justice] is being forced to look like it is responsive, so to speak, but it also can’t deal with the systemic nature of things," Pan-African Community Action activist Netfa Freeman told Sputnik.
On Wednesday, the Justice Department released a report concluding that the BPD systematically engaged in conduct that violates the US Constitution, and disproportionately targets African-Americans. In response, the Justice Department entered into a consent agreement with the BPD to reform the latter.
"We know it is not just Baltimore and it’s not just ‘bad apples’," Freeman said. The report is still "treating things like they are isolated incidents, not like it is a systemic problem or an epidemic," he said of anti-black police misconduct.
In a forum hosted by the Institute for Policy Studies, policy advocate at the Center for Popular Democracy, Marbre Stahly-Butts, said that while it was "important" for the federal government to articulate the problem of police abuses, Justice Department's actions did not go far enough.
An anti-terrorism rehearsal is held targeting a possible bomb attack during the Olympic Games at the main bus station in Rio de Janeiro, Brazil on May 12, 2016
Stahly-Butts argued the Justice Department should leverage the findings of the report to cut off funding to local law enforcement caught violating federal law.
"If we find… that you are violating the basic human rights of people in this city, we, as the government, will not give you taxpayer money to do that," Stahly-Butts said.
The Justice Department report covered police misconduct that took place from January 2010 through May 2015. The investigation was launched in 2015 following the widely publicized death of Freddie Gray, a 25-year-old African-American who died from wounds he sustained while in BPD custody.
Source
New York State Becomes First in the Nation to Provide Lawyers for All Immigrants Detained and Facing Deportation
New York State Becomes First in the Nation to Provide Lawyers for All Immigrants Detained and Facing Deportation
The Vera Institute of Justice and partner organizations today announced that detained New Yorkers in all upstate...
The Vera Institute of Justice and partner organizations today announced that detained New Yorkers in all upstate immigration courts will now be eligible to receive legal counsel during deportation proceedings. The 2018 New York State budget included a grant of $4 million to significantly expand the New York Immigrant Family Unity Project (NYIFUP), a groundbreaking public defense program for immigrants facing deportation that was launched in New York City in 2013...
Read full article here.
Nearly 2,500 Bridges to Nowhere: Congress Considers Expanding Charter Program Despite Millions Wasted on Closed Schools
UPDATE July 15th -- Earlier this week, Senate Majority Leader Mitch McConnell (R-KY) invoked cloture on the ESEA bill,...
UPDATE July 15th -- Earlier this week, Senate Majority Leader Mitch McConnell (R-KY) invoked cloture on the ESEA bill, which contains provisions to expand the Charter Schools Program. The final vote will be held today. McConnell's move to bring matters to a close came as a surprise to the authors of the bill who had expected a more robust debate, and, as EdWeek reports, "especially squeezes Democrats who are still working on proposals to beef up accountability."
As both the House and the Senate consider separate bills that would reauthorize and expand the quarter-billion-dollar-a-year Charter Schools Program (CSP), the Center for Media and Democracy (CMD) has examined more than a decade of data from the National Center for Education Statistics (NCES) as well as documentation from open records requests. The results are troubling.
Between 2001 and 2013, 2,486 charter schools have been forced to shutter, affecting 288,000 American children enrolled in primary and secondary schools.
Furthermore, untold millions out of the $3.3 billion expended by the federal government under CSP have been awarded as planning and implementation grants to schools that never opened to students.
Charters Much More Likely to Close
The failure rate for charter schools is much higher than for traditional public schools. In the 2011-2012 school year, for example, charter school students ran two and half times the risk of having their education disrupted by a school closing and suffering academic setbacks as a result. Dislocated students are less likely to graduate and suffer other harms.
In a 2014 study, Matthew F. Larsen with the Department of Economics at Tulane University looked at high school closures in Milwaukee, almost all of which were charter schools. He concluded that closures decreased “high school graduation rates by nearly 10%" The effects persist "even if the students attends a better quality school after closure.”
Hidden behind the statistics are the social consequences. According to a 2013 paper by Robert Scott and Miguel Saucedo at the University of Illinois. They found that school closures “have exacerbated inter-neighborhood tensions among Chicago youth in recent years” and have been a contributing factor to the high rate of youth incarceration.
Because the U.S. Department of Education does not provide the public with any accounting for the amount of taxpayer money—whether state or federal—that has been spent on these failed charter schools, there is no way to estimate the total amount of money missing in action. However, the Center for Popular Democracy (CPD) recently estimated that "according to standard forensic auditing methodologies, the deficiencies in charter oversight throughout the country suggest that federal, state and local government stand to lose more than $1.4 billion in 2015."
Major Probes into Closed Charters Underway
According to a PowerPoint presentation CMD has uncovered, the watchdogs at the U.S. Department of Education's Office of the Inspector General are currently conducting major nationwide probes into the lack of accountability and oversight within the Charter School Program. One of these audits focuses on where federal grants end up when charter schools are forced to close. A spokesperson for OIG confirmed to CMD that these investigations are ongoing.
The new probes come in the wake of a scathing 2012 audit, which exposed an utter lack of financial controls in the case of money awarded to charters that later closed. “The school files had no follow-up documentation for any of the 12 closed schools reviewed,” the OIG noted in the case of California. The U.S. Department of Education had conducted no oversight and failed to ensure that states receiving tens or hundreds of millions in grants had “procedures to properly account for SEA grant funds spent by closed charter schools.”
Meanwhile, U.S. Department of Education officials have assured stakeholders that the problems with millions disappearing down black holes are now a thing of the past. But the fact that the OIG has found reason to launch major investigations this year tells a different story.
Federal Millions Missing in Action as Charter Close or Never Open
It is impossible to anticipate the findings of the ongoing OIG probes, but even a cursory review of federal charter school grants in Wisconsin and Indiana, conducted by CMD, uncovered dozens of schools that were created out of seed money under the program but later forced to shutter because of financial mismanagement, failure to educate students or lack of enrollment.
Wisconsin received $69.6 million between 2010 and 2015, but out of the charters awarded sub-grants during the first two years of the cycle, one-fifth (16 out of 85) have closed since.
Indiana was awarded $31.3 million under the Charter Schools Program between 2010 and 2015. One of the reasons the state landed the grant, the reviewers contracted by the U.S. Department of Education to score the application make clear, was that charter schools in the state are exempt from democratic oversight by elected school boards. “[C]harter schools are accountable solely to authorizers under Indiana law,” one reader enthuses, awarding the application 30/30 on the rubric “flexibility offered by state law.” This “flexibility,” which the federal program is designed to promote, has been a recipe for disaster:
The Indiana Cyber Charter School opened in 2012 with $420,000 in seed money from the federal program. Dogged by financial scandals and plummeting student results the charter was revoked in 2015 and the school last month leaving 1,100 students in the lurch.
Padua Academy lost its charter in 2014 and converted to a private religious school, but not before receiving $702,000 in federal seed money.
Via Charter School was awarded $193,000 in a “planning grant” but never opened.
Early Career Academy landed a $193,000 planning grant and was due to open last year. This has been postponed because of “governance issues,” according to the school. The charter is sponsored by a for-profit college—ITT Tech—that is currently being sued by federal government for coercing students into taking out student loans for college credits that do not transfer.
In April 2015, Education Secretary Arne Duncan testified in front of the Appropriations Subcommittee on Labor, Health & Human Services and Education on abuse of federal funding by for-profit colleges, such as ITT Tech, that were “taking advantage of a massive influx of taxpayer resources.”
“The findings that we are putting forward are pretty stunning…pretty egregious. The waste of taxpayer money—none of us can feel good about,” said Duncan.
And yet, he is calling for a 48 percent expansion of the charter schools program—a program that will likely be up for the vote in the House and Senate this week, before the results of any of the OIG audits are made public to lawmakers and stakeholders.
CMD will soon be releasing the full dataset, as well as information on the methodology used to arrive at the list of closed schools, to help reporters and public school advocates tell the story.
Source: PR Watch
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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