Hillary Clinton wants to shake up the Fed
Hillary Clinton wants to shake up the Fed
Hillary Clinton wants the Federal Reserve to look a lot different. The Democratic candidate's campaign said Thursday...
Hillary Clinton wants the Federal Reserve to look a lot different.
The Democratic candidate's campaign said Thursday that it supports a plan presented by Democratic lawmakers calling for more diversity at the Federal Reserve and removing bankers from the boards of regional branches.
A statement from Clinton campaign spokesperson Jesse Ferguson argued that the changes were necessary in order to make the central bank more representative of the American people (emphasis ours):
The Federal Reserve is a vital institution for our economy and the well-being of our middle class, and the American people should have no doubt that the Fed is serving the public interest. That's why Secretary Clinton believes that the Fed needs to be more representative of America as a whole and that commonsense reforms -- like getting bankers off the boards of regional Federal Reserve banks -- are long overdue. Secretary Clinton will also defend the Fed's so-called dual mandate -- the legal requirement that it focus on full employment as well as inflation -- and will appoint Fed governors who share this commitment and who will carry out unwavering oversight of the financial industry.
The biggest issue raised in Secretary Clinton's statement is that employees of banks make up a considerable portion of the boards of the twelve regional Federal Reserve banks.
The original letter, signed by Congressional Democrats such as Massachusetts Sen. Elizabeth Warren and presidential candidate Vermont Sen. Bernie Sanders, was sent to Federal Reserve Chair Janet Yellen on Thursday morning. It cited some gains made by the Fed, but said there is more work to be done.
"However, despite these gains, we 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 in terms of gender, race and ethnicity, economic background, and occupation, and we call on you to take steps to promptly begin to remedy this issue," said the letter.
The Democrats' letter also cited statistics that showed that 92% of regional bank presidents are white; 100% of the current voting members of the Federal Open Markets Committee are white, and 75% of the regional bank directorships are male.
The Fed's leadership is made of three levels. The lowest level is made up of the 12 regional banks' boards of directors. Those elect the next level, the presidents of the regional branches. At the top level are the seven members of the Fed's Board of Governors appointed by the US president, including the chair.
The seven governors and the regional presidents make up the Federal Open Markets Committee, which determines monetary policy for the US.
The letter from Democrats also advocated for caution in monetary-policy decision-making at upcoming meetings, taking into consideration how policy would affect average Americans.
"Moreover, as you make crucial monetary policy decisions in 2016, we urge you to give due consideration to the interests and priorities of the millions of people around the country who still have not benefited from this recovery," said the letter.
"We share the vision that you laid out in Chicago two years ago: an economy in which all working families 'get the chance they deserve to build better lives'."
There has been a push among Democrats in Congress urging the Fed to keep interest rates near their historically low levels in order to allow more workers to find jobs and increase wages.
Chair Yellen said in her regular testimony before Congress that she is sympathetic to the position.
By Bob Bryan
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One More Day of Protests Planned in St. Louis Area
New York Times - October 13, 2014, by Minica Davey and Alan Blinder - After demonstrations that varied from...
New York Times - October 13, 2014, by Minica Davey and Alan Blinder - After demonstrations that varied from choreographed marches to tense late-night encounters with law enforcement agents, protesters said they expected a series of acts of civil disobedience around the region on Monday, the last of four days of organized protest that has drawn throngs of people to the St. Louis area over questions about police conduct.
Leaders for the protests provided few details of their plans, except to say they would be employing a strategy used by demonstrators in North Carolina, who last year began staging weekly protests known as “Moral Mondays” in response to actions by the state government, which was newly controlled by Republicans. Those protests in Raleigh, the state capital, resulted in hundreds of arrests and served as a template for similar, smaller demonstrations across the South. The website for what organizers here have called a “Weekend of Resistance” said simply, “We’ll be hosting a series of actions throughout the Ferguson and St. Louis area.”
It is an area on edge after more than two months of demonstrations that began in Ferguson, the St. Louis suburb where an unarmed black teenager was fatally shot by a white police officer in August. In recent days, the displays of anger have spread to the city of St. Louis, where protesters have appeared at the symphony hall, outside playoff games for the St. Louis Cardinals and near the neighborhood where another black teenager was killed last week by a white off-duty police officer.
Early Sunday morning, tensions mounted between the police, dressed in riot gear, and a group of demonstrators who held a sit-in at the entrance of a St. Louis convenience store and refused to move. Seventeen people were arrested on accusations of unlawful assembly, pepper spray was used by some officers, and D. Samuel Dotson III, the city’s police chief, said he had seen a rock thrown at an officer and heard of other rocks being hurled.
Although some protesters spoke of plans for nonviolent demonstrations on Monday, organizers warned that frustrations had intensified because of the police response on Sunday morning. “Instead of de-escalating rising tensions in the city, Chief Dotson’s comments are inciting anger and making matters worse,” the organizers of many of the protests said in a statement early Sunday. The demonstrators, they said, “showed the best of our democracy, and the St. Louis police demonstrated the worst of their out-of-control law enforcement agency. The police brutalized peaceful people protesting their brutality.”
One question seemed to eclipse all other concerns here, among the protesters and the police alike: What will happen when a grand jury considering charges against Darren Wilson, the Ferguson police officer who shot Michael Brown, 18, on Aug. 9, returns its decision, perhaps next month?
“It may clearly be a flash point,” the Rev. Osagyefo Sekou said of the possibility that Officer Wilson would not be prosecuted. “People are going to be angry. There are definitely going to be protests.” In an interview before he spoke at a rally Sunday night, he added, “But this is part of a long struggle. It is part of a long struggle against police brutality.”
Chief Dotson, who walked amid the crowd during some of the weekend demonstrations and defended the police handling of the standoff early Sunday, was unwilling to make predictions. “I don’t have a crystal ball,” he said in an interview on Sunday afternoon. “We hope that the community recognizes that the process works.”
Preparing for Monday’s events, several dozen demonstrators sat in a church sanctuary on Sunday morning for what amounted to a tutorial on tactics of civil disobedience. Lisa Fithian, an experienced activist from Austin, Tex., pressed audience members to call out the reasons they were there. She heard responses like “anger” and “solidarity” from a crowd that included people from the American Federation of Teachers and St. Louis’s Coalition of Artists for Peace.
In a parking lot outside the church, Ms. Fithian spoke about breathing deeply to stay calm, especially as the authorities close in on a demonstration. She talked of remaining aware of where the police officers were posted along nearby streets. She explained possible responses by the authorities to an array of actions by a protester being taken into custody. She demonstrated the mechanics of going limp.
“It’s really essential to practice it,” she said. The crowd eventually returned to the sanctuary, where journalists were asked to leave. The organizers said they would be planning specifics of the protests.
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Tax reform stumbling block
Tax reform stumbling block
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White...
Don’t look for a tax reform roll-out as soon as Congress comes back despite the aggressive timetable laid out by White House legislative director Marc Short. Part of the reason is that it probably won’t be ready yet. But it also has to wait until after the GOP congress passes a budget resolution, people close to the matter tell MM.
Because if Republicans lay out their tax reform plan beforehand, Democrats could use the budget vote-a-rama process in the Senate to try and attack individual pieces of the plan.
Read the full article here.
Pressures mount on Wells Fargo following fake-accounts scandal
Pressures mount on Wells Fargo following fake-accounts scandal
Pressure mounted on Wells Fargo & Co. Friday following its fake-accounts scandal, as the bank faced new calls to...
Pressure mounted on Wells Fargo & Co. Friday following its fake-accounts scandal, as the bank faced new calls to allow affected customers to file lawsuits and for the board of directors to rescind the pay of a key senior executive.
The demands came just one day after Chief Executive John Stumpf resigned from a Federal Reserve advisory panel.
Senators had pushed for Stumpf not to be reappointed, saying it was inappropriate for someone who presided over improper sales tactics to be giving advice to an agency involved with bank regulation.
Stumpf has been under intense fire since the bank this month agreed to pay $185 million to settle investigations by Los Angeles City Atty. Mike Feuer, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency into an aggressive sales culture that led bank employees to open as many as 2 million accounts that customers didn’t authorize.
The Justice Department is investigating possible criminal charges, and some senators have called for a Labor Department investigation into whether the bank failed to pay employees overtime when they worked late nights and weekend to meet sales quotas.
A group of Senate Democrats continued to attack Wells Fargo on Friday, publicly calling on Stumpf to stop enforcing mandatory arbitration clauses in the agreements for customer accounts that were not authorized.
Sen. Sherrod Brown (D-Ohio) had pressed Stumpf on the matter at a Senate Banking, Housing and Urban Affairs Committee hearing Tuesday, arguing that it was unfair not to allow those customers the ability to file lawsuits against the bank.
Stumpf said at the time that he would have to “talk to my legal team.”
Brown said Friday that he and his colleagues want relief for bank customers and more answers from Wells Fargo.
“If Wells Fargo really does want to look out for the customers, if they really are in fact sorry, as the CEO said, for these unauthorized accounts, they ought to let the court system work if these people who were wronged want to bring suit,” he said.
Wells Fargo's collateral damage: customers' credit scores
Wells Fargo's collateral damage: customers' credit scores
The Democrats sent a letter to Stumpf on Friday, requesting more information about the arbitration clauses, including how many customer complaints about fake accounts were forced into arbitration proceedings.
Brown was among those writing to Stumpf, along with Patrick Leahy of Vermont, Richard Durbin of Illinois, Richard Blumenthal of Connecticut, Al Franken of Minnesota and Elizabeth Warren of Massachusetts.
A spokeswoman for Wells Fargo did not immediately respond to a request for comment.
Also on Friday, an activist investment group that is part of the Change to Win union federation wrote to Wells Fargo’s board, asking it to rescind at least part of the compensation earned by the executive who oversaw the employees who opened unauthorized customer accounts.
The letter from CtW Investment Group, which is a Wells Fargo shareholder, adds to the pressure on the bank to claw back some of the approximately $100 million earned by Carrie Tolstedt, the company’s former head of community banking.
Wells Fargo’s stock has declined by about 8% since the settlement was announced on Sept. 8.
On Thursday, five senators called for Stumpf not to be reappointed to the Federal Advisory Council, a 12-member body that meets four times a year with the Fed’s Board of Governors to discuss banking and economic matters.
Stumpf had represented the Fed’s San Francisco district, where Wells Fargo is based, since 2015.
He “made a personal decision to resign” and notified the Fed on Thursday, Wells Fargo spokeswoman Jennifer Dunn said.
“His top priority is leading Wells Fargo,” she said.
Sen. Angus King, an independent from Maine, organized the letter to the head of the board of directors of the Federal Reserve Bank of San Francisco asking that Stump not be reappointed to the advisory council when his term expires on Dec. 31.
“It would be ironic if the Federal Reserve, a key federal banking regulator tasked in part with ensuring the fair and equitable treatment of consumers in financial transactions, continued to receive special insights and recommendations from senior management of a financial institution that just paid a record-breaking fine to the Consumer Financial Protection Bureau for ‘unfair’ and ‘abusive’ practices that placed consumers at financial risk,” they wrote.
The letter also was signed by Warren and Democratic Sens. Maria Cantwell of Washington and Jeff Merkley and Ron Wyden, both of Oregon.
Their call was backed by Fed Up, a coalition of labor, community and liberal activist groups that has pushed to reduce the influence of bankers on Federal Reserve policies.
“Commercial banks already have too much influence within the Federal Reserve System,” the coalition said Thursday. The coalition also asked its members to sign a petition calling for Stump’s “immediate dismissal” from the advisory panel.
“Stumpf, as the CEO of a bank accused of ‘unfair’ and ‘abusive’ practices, should have no role advising the Federal Reserve’s Board of Governors on policies affecting working families,” Fed Up said.
By Jim Puzzanghera
Source
Letter: Congress must pass law for universal health care
Letter: Congress must pass law for universal health care
Here are the health care issues on which we need government to act......
Here are the health care issues on which we need government to act...
Read the full article here.
I often can't afford groceries because of volatile work schedules at Gap
As the movement for a $15 minimum wage grows, low-wage workers know the problem isn’t just the hourly pay rate. It’s...
As the movement for a $15 minimum wage grows, low-wage workers know the problem isn’t just the hourly pay rate. It’s also the number of hours scheduled. I’ve worked at Gap in multiple locations since October 2014. I’d like to earn a living wage – but a raise alone won’t help me pay the bills if exploitative schedules aren’t fixed too.
I spent most of 2014 unemployed while applying to dozens of jobs. Then, in October, I finally got a job at Gap. Our schedule comes out less than a week in advance. Some of the shifts leave workers “on-call,” meaning we don’t know if we’re going to be working at all that day. The earliest we find out is two hours before the shift is scheduled to start. At my first store, I had 18 hours of penciled-in shifts with only nine guaranteed hours some weeks. This is not uncommon in the industry.
The volatility of on-call scheduling, in combination with the low pay, meant my life at Gap wasn’t all that different from when I was unemployed. Though I was working, I still had to go to a food pantry for groceries. In winter, I had to choose between racking up heat bills I couldn’t afford and freezing in my apartment. My landlord would ask me when I’d have the rent money, but I couldn’t give her an answer because I never knew how many hours I’d actually work in a given week. I couldn’t afford to live in the city where I worked, so I had to transfer to a Gap store back home.
I’m not the only one struggling. Retail workers have the second-lowest average weekly earnings of workers in any sector in the US economy: $444 per week. We also have the second-lowest average weekly working hours. From 2006 to 2010, the number of people working part-time for economic reasons and not by choice, grew from 4 to 9 million. It’s called involuntary part-time work, meaning we want full-time employment but a lack of opportunities prevents us from doing so.
Unpredictable last-minute scheduling makes it difficult to budget and turns even the most basic decisions into headaches. Will we need babysitters for our children? Will we be able to make a doctor’s appointment? Will we have to rush to Gap from our second jobs?
One of my co-workers, started working at Gap as she was transitioning out of homelessness, but she wasn’t making enough to get stable housing on her own. Most so-called middle class jobs lost in the recession have been replaced by low-wage work like retail jobs. I’m thankful to be working, but gratitude born of desperation is no comfort and it certainly doesn’t pay the rent.
As the involuntary part-time worker population has drastically grown, so too has Gap’s executive compensation. Since 2010, total executive compensation packages exploded from $19m to over $42m by 2014. Former CEO Glenn Murphy’s compensation increased from $5.9m in 2010 to $16m in 2014. So-called ‘on-call scheduling’ creates a cheap on-demand workforce, enabling the Gap to pad its bottom line. The gains don’t go to us; they flow to the top-earners in the company. We make the sacrifices, they reap the rewards.
Another co-worker began working at Gap, in addition to a second retail job, as a way to escape the illicit drug trade. My colleague once told me: “everybody wants a job, no one wants to really be out hustling in the streets.” But the on-call shifts became unbearable, and he struggled to pay rent. For him, the trade-off between street money and regular employment was costly. This structural combination of low wages and unfair scheduling pressures workers into the underground economy, and is a hidden pipeline to the prison system.
I do, however, feel hope. Here in Minnesota, lawmakers are considering new legislation, supported by workers and community groups like Neighborhoods Organizing for Change, that would require three weeks’ advance notice of work schedules. Across the country, low-wage workers are fighting for fair scheduling and the tide is turning. Just this summer, Victoria’s Secret and Abercrombie & Fitch have announced an end to their on-call shifts. The Gap can be part of this rising tide.
Source: The Guardian
Woman who confronted Flake 'relieved' he called for delaying Kavanaugh vote
Woman who confronted Flake 'relieved' he called for delaying Kavanaugh vote
Maria Gallagher, who on Friday confronted Sen. Jeff Flake with her story of sexual assault, said she was "relieved"...
Maria Gallagher, who on Friday confronted Sen. Jeff Flake with her story of sexual assault, said she was "relieved" when the Arizona Republican called for an FBI investigation into allegations against Supreme Court nominee Brett Kavanaugh.
Gallagher, a resident of New York, stood next to Ana Maria Archila, co-executive director of the Center for Popular Democracy, earlier Friday as the two held open the doors of an elevator Flake was taking on his way to the Senate Judiciary Committee. Soon after, Flake said he would vote to advance Kavanaugh's nomination to the Senate floor, but he said he wanted a vote in the full body delayed for one week while the FBI investigated the allegations.
Read the full article here.
Why Texans Are Fighting Anti-Immigrant Legislation
Why Texans Are Fighting Anti-Immigrant Legislation
Austin, Tex. — I’m a member of the Austin City Council, and this month Texas State Troopers arrested me for refusing to...
Austin, Tex. — I’m a member of the Austin City Council, and this month Texas State Troopers arrested me for refusing to leave Gov. Greg Abbott’s office during a protest against the anti-immigrant Senate Bill 4.
The bill, which Mr. Abbott signed May 6, represents the most dangerous type of legislative threat facing immigrants in our country. It has been called a “show me your papers” bill because it allows police officers — including those on college campuses — to question the immigration status of anyone they arrest, or even simply detain, including during traffic stops.
Read the full article here.
Black Lives Matter coalition issues first political agenda demanding slavery reparations
Black Lives Matter coalition issues first political agenda demanding slavery reparations
A coalition built on the Black Lives Matter movement has issued its first political agenda demanding reforms in the...
A coalition built on the Black Lives Matter movement has issued its first political agenda demanding reforms in the American justice system and reparations for slavery. Some 60 organisations in the Movement for Black Lives endorsed the platform calling for "black liberation" that had been forged over a year of discussions.
The agenda included six demands and 40 policy recommendations, including a reduction in military spending and a focus on protecting safe drinking water.
It also called for an end to the death penalty, decriminalisation of drug-related offences and prostitution, and the "demilitarisation" of police departments. It seeks reparations for lasting harms caused to African-Americans by slavery and investment in education, jobs and mental health programmes.
The agenda by the Movement for Black Lives came hard on the heel of the Republican and Democratic national conventions, which failed to satisfy members.
"On both sides of the aisle, the candidates have really failed to address the demands and the concerns of our people," said Marbre Stahly-Butts of the Movement for Black Lives Policy Table, which crafted the agenda.
He told the New York Times. "So this was less about this specific political moment and this election, and more about how do we actually start to plant and cultivate the seeds of transformation of this country that go beyond individual candidates."
The overarching mission of the group is to halt the "increasingly visible violence against black communities". Its agenda was issued just days before the second anniversary of the killing of unarmed black teen Michael Brown by a white police officer in Ferguson, Missouri.
Brown's death and the killing of other unarmed black men by white officers was the birth of the Black Lives Matter movement.
"We seek radical transformation, not reactionary reform," said Michaela Brown, a spokeswoman for Baltimore Bloc, one of the organisations that worked on the platform.
"As the 2016 election continues, this platform provides us with a way to intervene with an agenda that resists state and corporate power, an opportunity to implement policies that truly value the safety and humanity of black lives, and an overall means to hold elected leaders accountable."
By MARY PAPENFUSS
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1 month ago
1 month ago