Groups sue feds over foreclosure fighting tactic
The Washington Post - December 5, 2013 - The American Civil Liberties Union has sued the Federal Housing Finance...
The Washington Post - December 5, 2013 - The American Civil Liberties Union has sued the Federal Housing Finance Agency, asking it to disclose efforts to stop municipalities from using eminent domain to bail out underwater homeowners and make its dealings with the financial industry more transparent.
The ACLU, Center for Popular Democracy and other nonprofits filed a freedom of information lawsuit against the agency Thursday in federal court in San Francisco.Richmond, Calif., was the first city to officially codify the divisive foreclosure fighting plan, which has drawn zealous opposition from Wall Street and Washington. Two lawsuits challenging the use of eminent domain have been thrown out, but will likely be refiled. The city has not yet used eminent domain to seize a mortgage.Irvington, N.J., is moving forward with the strategy, and the city council in Newark took its first steps toward moving forward with a plan Wednesday. Yonkers, N.Y., is considering it, but other places have scrapped the idea because of opposition from banks or legal hurdles.The agency said in August it may initiate legal challenges against municipalities that want to use eminent domain to fight foreclosures and could direct regulated entities to stop doing business in those places. The nonprofits said most of the cities exploring the use of eminent domain have been besieged by foreclosures and have predominantly low-income, minority populations.The nonprofits filed freedom of information requests with the agency in October, seeking communication between agency leadership and representatives of the banking, mortgage and financial industry, and records of meetings between the agency and financiers, among other requests.FHFA acknowledged, but did not complete, the requests, according to the lawsuit, so the groups sued. The nonprofits are asking for the documents to be procured on an expedited basis.“The FHFA has taken an aggressive stance on this issue in a way that has harmed minority communities. The public deserves to know why,” said Linda Lye, a staff attorney with the ACLU of Northern California, in a statement.A FHFA spokeswoman said the agency is not commenting on the lawsuit.By using eminent domain, municipalities can circumvent mortgage contracts, acquire loans from bondholders, write them down and give them back to the bondholders with reduced principals. According to Cornell University law professor Robert C. Hockett, who devised the plan, only government has the power to forcibly sidestep mortgage contracts.The tactic only works with so-called private label security mortgages, or ones that are not backed by the federal government.FHFA oversees government-backed loans owned by Fannie Mae or Freddie Mac. They cannot be seized by eminent domain.The lawsuit said one of the agency’s “statutory mandates is to help the housing market recover,” and threatening to sue municipalities that try to use eminent domain conflicts with that obligation.“By threatening legal action,” the suit said, the agency “effectively blocks the communities hit hardest by the foreclosure crisis from pursuing one potentially effective solution on behalf of their residents.”The suit also said the agency’s threats to deny credit to communities raises Fair Housing Act and Equal Credit Opportunity Act concerns.Members of the financial industry have said they fear using eminent domain could be a slippery slope, and penalizes people who save and invest in mortgage-backed securities.In Washington, Texas Republican Rep. Jeb Hensarling and Calif. Republican Rep. John Campbell proposed legislation that would bar the federal government from backing mortgages in places that use eminent domain to seize mortgages. SIFMA, a group that represents security firms, banks and asset managers and 11 other groups sent a letter to Congress opposing the use of eminent domain.Last month, 10 members of Congress sent a letter asking the head of FHFA to rescind its threat to sue places that use eminent domain.Source
Chicago Activists, Lawmakers Deliver Petitions To SEC For Action On 'Toxic' Interest Rate Swaps (VIDEO)
Chicago Activists, Lawmakers Deliver Petitions To SEC For Action On 'Toxic' Interest Rate Swaps (VIDEO)
Chicago community activists and local elected officials delivered 88,000 petition signatures to the U.S. Securities and...
Chicago community activists and local elected officials delivered 88,000 petition signatures to the U.S. Securities and Exchange Commission's (SEC) regional office Thursday morning, urging the agency to investigate complex financial agreements called interest rate swaps.
Those who delivered the petition signatures, collected online by the Grassroots Collaborative and several other organizations, say cash-strapped local and state governments are being squeezed by the "toxic swaps" they entered into with banks before the Great Recession. The complicated deals, which come with hefty penalties and termination fees, were intended to save taxpayer-backed organizations money, but they backfired when the economy crashed.
"These are the same toxic swaps that have drained millions of dollars out of our city, state and (Chicago Public Schools) budgets and are hurting cities and states across the country," Saqib Bhatti, director of the ReFund America Project, said outside the SEC's Chicago regional office, 175 W. Jackson Boulevard.
Illinois State Reps. Robert Martwick (D-Chicago), Emanuel "Chris" Welch (D-Westchester) and Chicago Ald. Carlos Ramirez-Rosa (35th Ward) joined activists at the petition delivery.
Petitioners want the SEC to "investigate the 'toxic swaps' Wall Street is using to impoverish our cities and towns -- and make bankers return all ill-gotten profits from deceptive and fraudulent sales."
The state of Illinois has already paid $684 million for interest rate swaps and could be forced to pay an additional $870 million in November if "the state does not sue or renegotiate these deals," according to the Grassroots Collaborative.
Interest rate swaps, Ramirez-Rosa said, have cost the city of Chicago and CPS over $1 billion in combined payments, plus $600 million in costs associated with terminating the agreements.
"That $600 million in ransom to the banks went to go pad their bottom line," Ramirez-Rosa said. "The banks don't need more money. Our neighborhoods desperately need these funds. ... The SEC can act now to recuperate some of that money for the city of Chicago and the Chicago Public Schools, and they can act now to defend the state of Illinois from further payments, from paying a larger ransom, to these banks."
Welch said he is "disgusted" that "big banks continue to profit at the expense of our most vulnerable." He urged Illinois Gov. Bruce Rauner, Chicago Mayor Rahm Emanuel and CPS CEO Forrest Claypool to join the push for an SEC investigation into swap agreements.
"We ask the governor and our leaders in this city to stop putting banks before books," Welch said.
Here's more from the lawmakers at the petition delivery:
Organizers and the elected officials dropped off the petition signatures at the SEC's Chicago office, where a receptionist said she would give the documents to the regional director.
In addition to the Grassroots Collaborative, the online petition was circulated nationwide by Americans for Financial Reform, the Center for Popular Democracy, CREDO Action and Rootstrikers.
Read Progress Illinois' past reporting on how interest rate swaps work and their financial impact on the state, city of Chicago and CPS.
by ELLYN FORTINO
Source
Sorry: You Still Can't Sue Your Employer
Sorry: You Still Can't Sue Your Employer
From Applebee's to Uber, employers require workers to waive their rights to class-action lawsuits—but there's something...
From Applebee's to Uber, employers require workers to waive their rights to class-action lawsuits—but there's something cities can do to help them.
Read the full article here.
Minimum wage going up
Minimum wage going up
Voters have decided it’s time to give Colorado’s minimum-wage workers a long-overdue raise. Amendment 70, a measure...
Voters have decided it’s time to give Colorado’s minimum-wage workers a long-overdue raise.
Amendment 70, a measure that would increase Colorado’s minimum wage to $12 an hour by 2020, was passing by a 10-percent margin. Minimum wage in the state is now $8.31 an hour.
With 25 of 64 counties reporting, the vote-count as of this posting was 55 percent yes to 45 percent no.
In a crowded, jubilant second-floor conference room at the Westin Downtown, a group of minimum wage earners, business owners and advocates celebrated.
“Amendment is going to help our local economy,” said Edwin Zoe, proprietor of restaurant Zoe Ma Ma. “When low income workers do well, we all do well.”
The amendment alters the state constitution to increase the minimum wage by yearly 90-cent increments until it reaches $12 in 2020. In 2020, it will be fixed at $12, except for yearly adjustments to account for inflation.
Who pushed it over the finish line?
Supporters of the increase coalesced in mid-2016 into a group called Colorado Families for a Fair Wage, a coalition of unions, economic justice advocates and progressive policy analysts. Many of them had been part of an informal consortium of anti-poverty groups called The Everyone Economy that came together to strategize about raising the minimum wage back in February 2014. Partnering with Democratic legislators, they advocated for a pair of bills in the 2015 legislative session to help low-wage workers. One would have allowed municipalities to set their own minimums, and the other would have created a ballot measure to reach a $12.50 per hour minimum by 2020. Republicans killed both bills in the Senate.
Democrats floated another bill in 2016 to allow cities to set their own minimum wages, which met the same fate as its predecessors. After that, Everyone Economy members decided they had no recourse but to pursue a ballot measure themselves and formed Colorado Families for a Fair Wage.
What does it mean that it passed?
The work is just beginning for Colorado labor unions and low-wage worker advocates. Most CFFW members acknowledge that $12 per hour is not in fact a living wage for workers with families in some parts of Colorado. Most estimates put a living wage for a single parent of two children in Denver at around $30 per hour. But advocates also believe that the current $8.31 per hour is inexcusable, and any more than $12 was not politically viable this time around.
But for some, the increase means a change in their lives. April Medina currently makes $11 per hour in assisted living. She works 60-70 hours per week, leaving very little time to spend with her four children. She brought her 9-year-old daughter, Jasmine, to the Westin Downtown to celebrate Amendment 70’s passage.
Medina said she was thrilled by the news.
“I’m excited to go to some basketball games,” Medina said.
How much firepower was against it?
Keep Colorado Working had a slower start raising funds, but raised $1.7 million in the last reporting period. It has spent just under $1.4 million as of the most recent campaign finance filings, primarily on television advertising and consultants. About half of its funds ($650,000) come from the Alexandria, Virginia-based Workforce Fairness Institute. It has also gotten $525,000 from Colorado Citizens Protecting Our Constitution, a committee that has donated hefty sums to pro-fracking campaigns and to a 2013 effort to recall legislators who had passed gun-control legislation.
CCFW outraised its rivals almost 3 to 1, raising about $5.3 million in donations, much of it from out-of-state groups like its largest donor, the Center for Popular Democracy, which has kicked in over $1 million. Its second-largest donor is the Palo Alto-based Fairness Project, which has contributed over $960,000 to CFFW and is also supporting minimum wage ballot measures in Maine, Arizona and Washington, D.C.
Keep Colorado Working wants to make sure you know that some of CFFW’s donors are not from Colorado. Virtually all of its communications use the terms “wealthy out of state special interests” liberally.
According to the most recent campaign finance filings, CFFW has spent $4.6 million on television and digital advertising, outreach efforts like canvassing and hosting events, mailers, polling and research.
By Eliza Carter
Source
Inside the Avengers Cast’s One-Night-Only Performance of Our Town
Inside the Avengers Cast’s One-Night-Only Performance of Our Town
The Avengers, and friends, assembled in Atlanta on Monday night, though without their usual armor, shields, and...
The Avengers, and friends, assembled in Atlanta on Monday night, though without their usual armor, shields, and superpowers. The event, dreamed up by Scarlett Johansson, brought together some of the Marvel Cinematic Universe’s biggest stars—all in town filming Avengers: Infinity War at Atlanta’s Pinewood Studios—for a stage reading of Thornton Wilder’s theater classic Our Town, a benefit for hurricane relief in Puerto Rico.
Read the full article here.
Warren calls for diversity in Federal Reserve leadership
Warren calls for diversity in Federal Reserve leadership
WASHINGTON – The latest crusade in the name of diversity commenced on Thursday, this time aimed squarely at the makeup...
WASHINGTON – The latest crusade in the name of diversity commenced on Thursday, this time aimed squarely at the makeup of the Federal Reserve’s leadership and spearheaded in part by Elizabeth Warren, the senior U.S. senator from Massachusetts.
The Cambridge Democrat recently linked up with fellow Democrat, Michigan U.S. Rep. John Conyers, to send a letter to Janet Yellen, chair of the Federal Reserve Board of Governors, asking the former Clinton administration adviser to take action. They cited a 1977 law that requires the bank regulator to reflect the nation’s diversity.
The progressive duo began their missive by praising her work under President Barack Obama before stating that they “remain deeply concerned that the Federal Reserve has not yet fulfilled its statutory and moral obligation to ensure that its leadership reflects the composition of our diverse nation.” Instead, they said, the central bank’s leadership “remains overwhelmingly and disproportionately white and male,” and is drawn mainly from major banks and corporations.
The letter cites a statistic reported in February by the left-leaning Center for Popular Democracy that indicates that “83 percent of Federal Reserve head office board members are white” while “men occupy nearly three-fourths of all regional bank directorships.”
The lawmakers assert that the discussions among Fed leaders regarding labor market conditions never once mentioned the situation confronting blacks in 2010, the most recent year for which full transcripts are available. The lawmakers point out that the unemployment rate for blacks that year never fell below 15.5 percent, while the nation’s average jobless rate hovered just below 10 percent during most of that post-recession period.
Fellow Massachusetts U.S. Sen. Ed Markey put his signature on the letter, alongside those of more than 120 other Democrats in Congress
Warren and Conyers later took to social media to rally the public around the cause:
Former Secretary of State Hillary Clinton, the frontrunner for the Democratic presidential nomination, was also quick to throw her support behind the call for diversity:
“The Fed needs to be more representative of America as a whole,” Jesse Ferguson, a Clinton campaign spokesman, told the Associated Press Thursday, adding that Clinton also opposes the fact that three private-sector bankers currently sit on each regional Fed bank board.
The Fed is actively working to further diversify its ranks, bank spokesman Dave Skidmore said in a statement provided to AP.
“Minority representation on Reserve Bank and Branch boards has increased from 16 percent in 2010 to 24 percent in 2016,” Skidmore told AP. “The proportion of women directors has risen from 23 percent to 30 percent over the same period. Currently, 46 percent of all directors are diverse in terms of race and/or gender (with a director who is both female and a minority counted only one time).”
“We are striving to continue that progress.”
By BY EVAN LIPS
Source
America’s Biggest Corporations Are Quietly Boosting Trump's Hate Agenda
America’s Biggest Corporations Are Quietly Boosting Trump's Hate Agenda
Corporate Backers of Hate campaign calls on companies to end practices that benefit from Trump's agenda......
Corporate Backers of Hate campaign calls on companies to end practices that benefit from Trump's agenda...
Read full article here.
Why Labor and the Movement for Racial Justice Should Work Together
Why Labor and the Movement for Racial Justice Should Work Together
The Movement for Black Lives (M4BL) has made tremendous strides in exposing and challenging racial injustice, and has...
The Movement for Black Lives (M4BL) has made tremendous strides in exposing and challenging racial injustice, and has won real policy victories. The policies, while often imperfect, are a testament to the strength of the organizing and activism of the moment. Not coincidentally, this uprising comes at a time when income and wealth inequality are at peak levels and the economy for most black people looks markedly different than the economy for their white counterparts.
Just as we are in a critical moment in the movement for racial justice, we are in a critical moment for the right to unionize. Unions, which have been a major force for economic justice for people of color in the past 50 years, have been decimated to historically low levels.
Labor should work alongside the Movement for Black Lives, a coalition with more than 50 organizations, to usher in a radically new economic and social order. The path won’t be easy. But recent history has shown that one of the ways to get at this new reality is through union bargaining. Consider the example of Fix L.A.
Fix L.A. is a community-labor partnership that fought to fund city services and jobs alike, using city workers’ bargaining as a flashpoint to bring common good demands to the table. The coalition started after government leaders in Los Angeles drastically cut back on public services and infrastructure maintenance during the Great Recession. The city slashed nearly 5,000 jobs, a large portion of which had been held by black and Latino workers. Not only did these cuts create infrastructure problems—like overgrown and dangerous trees and flooding—but they also cost thousands of black and Latino families their livelihoods.
Fix L.A. asked why the city was spending more on bank fees than on street services, and demanded that it renegotiate those fees and invest the savings in underserved communities.
What was the result of this groundbreaking campaign?
The creation of 5,000 jobs, with a commitment to increase access to those jobs for black and Latino workers, the defeat of proposed concessions for city workers and a commitment from the city to review why it was prioritizing payment of bank fees over funding for critical services in the first place!
Bargaining for the common good
Fix L.A. may seem novel, but the context is no different from many places. We have seen massive disinvestment from public services in a way that disproportionately affects black people. This structurally-racist disinvestment is often driven by the corporate interests that bankroll elected officials’ campaigns and by Wall Street actors that use their influence over public finance to push an austerity agenda. Everywhere you look, public officials are making a choice between paying fees and providing critical services.
Chicago Public Schools paid $502 million to banks in toxic swap fees at the same time that it was slashing special education programs and laying off teachers to close a budget deficit. Detroit raised its water rates and paid $537 million in Wall Street penalties, setting the stage for mass water shutoffs when tens of thousands of poor residents of the overwhelmingly black city could not afford the higher water bills.
Wall Street and other corporations don’t hesitate to profit off of and perpetuate disinvestment in communities of color, and too often we forget to look up the food chain to see that at the other end of community crises there are rich bankers and billionaires lining their pockets. Campaigns, like Fix L.A., that involve direct actions targeting banks, hedge funds, corporations and billionaires are effective.
This sort of organizing can be hard. In order to isolate workers from their broader communities, the other side has done a terrific job of narrowly defining the scope of bargaining as wages and benefits. In many states, labor laws prohibit public sector workers from bargaining over issues that concern the welfare of the broader community or the quality of the services they provide.
The theory of “bargaining for the common good” seeks to challenge this status quo. As articulated by Joseph McCartin of Georgetown University’s Kalmanovitz Initiative for Labor and the Working Poor, bargaining for the common good has three main tenets: 1) transcending the bargaining frameworks written in law and rejecting them as tools for the corporate elite to remain in power; 2) crafting demands between local community groups and unions at the same time and in close coordination with each other from the very beginning; and 3) embracing collective direct action as key to the success of organizing campaigns.
These may seem like simple ideas, but they stand in complete opposition to the way the power elite expects union bargaining to be done. Therein lies their power.
Therein also lies the opportunity for unions to partner with the Movement for Black Lives. For all of their complicated racial histories, unions are some of the largest organizations of black people in the country. About 2.2 million black Americans are union members—some 14 percent of the employed black workforce.
That’s a huge number of black people who are already members of organizations with the capacity to organize and mobilize. And these black workers, like all black people in America, face real challenges of structural economic racism in almost all aspects of their lives. Their communities have been underfunded; their schools are being dismantled; they face massive poverty and are under economic assault; and they regularly encounter police violence.
Stronger together
Widening the scope of bargaining in Los Angeles led to real wins for the city’s black and Latino communities. The rest of the labor movement should take note. Imagine the power that could be added to the Movement for Black Lives if unions, recognizing the trauma that systematic racism wreaks on their membership, brought solutions that have been elevated by the Movement for Black Lives to the bargaining table in negotiations with employers ranging from the City of Baltimore to private equity giant Blackstone.
But unions cannot do this unilaterally and expect unconditional support from the black community.
Unions must make the effort on the front end to build a real relationship with Movement for Black Lives groups and members, and partner with them in developing common good bargaining demands that start to go on the offense against Wall Street and the structurally-racist economic power structure. There are groups of people organizing for racial justice under the banner of the Movement for Black Lives near every union local in the country. The onus is on labor leaders and rank-and-file union members to reach out to those groups and start to build a strong relationship where one does not exist. This process will not be easy, especially because of the history of racism that plagues unions, especially police unions. But the truth remains that there is a real opportunity to leverage the power of both movements to win real gains for black people and other people of color through a strong partnership.
It is exciting to imagine potential bargaining demands major unions could undertake alongside racial justice organizations. For example, they could demand that their employers make a commitment to job training programs to strengthen the pipeline for black workers; city and state workers could demand progressive taxation measures that raise funds from corporate actors to fund schools and services in black communities; teachers could demand school districts enact restorative justice policies to stem the school-to-prison pipeline; hospital workers could bargain for targeted health care access programs in communities of color; retail workers could demand that their employers “ban the box” and let the formerly incarcerated work. The list is almost infinite.
Bargaining for racial justice is a radical idea and will not be easily won. It will require concerted direct action targeting the real decision makers in both the public and private sectors that have a vested interest in keeping racial inequities in place. The Movement for Black Lives has proven that it can execute effective and creative direct actions backed by solid demands. They are also innovating creative tactics that move beyond traditional marches and picket lines to new types of disruptive actions that make power holders directly confront those they are harming. By combining the vision and militant tactics of the Movement for Black Lives with the membership and resources of the labor movement, we can usher in a more just and equitable society
BY MAURICE WEEKS AND MARILYN SNEIDERMAN
Source
Bankers and Economists Fear a Spate of Threats to Global Growth
Bankers and Economists Fear a Spate of Threats to Global Growth
GRAND TETON NATIONAL PARK, Wyo. — In the decade since the financial crisis, economic policy makers, professors and...
GRAND TETON NATIONAL PARK, Wyo. — In the decade since the financial crisis, economic policy makers, professors and protesters have gathered here every August to argue about the best ways to return to faster economic growth.
This year, they gave up.
Read the full article here.
New York Fed taps Williams for top post, ignoring Democrats on diversity
New York Fed taps Williams for top post, ignoring Democrats on diversity
Sen. Elizabeth Warren (D-Mass.) had called for the co-chairs and Williams to appear before the Senate Banking Committee...
Sen. Elizabeth Warren (D-Mass.) had called for the co-chairs and Williams to appear before the Senate Banking Committee if Williams ended up as the choice. Fed Up co-director Shawn Sebastian said the coalition supports that call. “Today, the Fed concluded another opaque and controversial Reserve Bank presidential selection process by ignoring the demands of the public and choosing another white man whose record on Wall St regulation and full employment raises serious questions,” he said in a tweet.
Read the full article here.
30 days ago
30 days ago