Wrath of McGrath Blog
Banking Reform Turns Into "Chump Change" to Empower the Banks Further and Ruin Us All, Thanks to Dodd and the G.O.P... Second Crisis, Anyone? LET THEM EAT SUBPRIME!
Written by Jim McGrath Monday, 08 March 2010 12:13
WELL, IN THE SPIRIT OF "BIPARTISANSHIP," DODD HAS SOLD AMERICA OUT TO THE BANKERS. Using Shelby and the G.O.P. as conduits, the banking lobby has gutted real reform by rewriting legislation to put any consumer financial protection agency under the Fed. While much of the public thinks the "Fed" is a government watchdog agency due to the word "federal" in its title, it is really a collection of bankers and finance people appointed by the President to, in reality, represent the banking interests. IT IS OF THE BANKERS, BY THE BANKERS AND FOR THE BANKERS, AND NOW, SO TOO IS AMERICA. THE PEOPLE WENT OUT THE WINDOW ALONG WITH THE FED'S OPEN WINDOW ALLOWING THE BANKS TO BORROW AT NOTHING AND ENSURE THAT THEY GROW FROM "too big to fail" to "TOO BIG NOT TO SUCCEED AND HAVE SUCCESS GUARANTEED AT THE EXPENSE OF ALL OTHERS"...
Robert Kuttner's article in The American Prospect details how Dodd rewrote a reform bill into an empowerment vehicle for the Fed, warning it is a very dangerous thing to continue making these banks bigger, more powerful and less accountable. HAVEN'T WE LEARNED FROM THE FIRST CRISIS? WE GOT INTO THIS MESS DUE TO FORGETTING THE LESSON OF THE GREAT DEPRESSION. PERHAPS THAT IS WHAT WE WILL NEED IN ORDER TO FINALLY STRAIGHTEN THINGS OUT.
OBAMA, Kuttner notes, started out with reform minded advisers, including Volcker. He then abandoned these for Wall Streeters Geithner, Bernanke, Summers and Rubin, the geniuses who started all this in the first place, with the repeal of Glass-Steagall and other foolhardy let-business-do-whatever-it-wants deregulation.
BIPARTISANSHIP OF OFFERING THE G.O.P. AND CORPORATE DEMOCRATS WHAT THEY WANT, MORE OF THE SAME, IS NEITHER BIPARTISANSHIP NOR REFORM, BUT CHUMP CHANGE DESIGNED TO CONTINUE THESE ILLS, FATTEN WALL STREET AND RUIN US FURTHER. Kuttner says, "If Obama is serious about financial reform, he needs to fight for it -- against corporate Democrats as well as Republicans, and against his chums on Wall Street. It's the same lesson that Obama is belatedly learning on health care. Radical reform is impossible without presidential leadership. Paul Volcker deserves better than intermittent gestures. So do the American people."
Rep. Barney Frank, when hearing about it, called the move "a joke." As reported more fully by Bloomberg News on how Dodd and the banks have given the industry victory: http://www.bloomberg.com/apps/news?pid=20601087&sid=a..E.59TT96Y
But perhaps most clearly and eloquently stated, are the warnings and advice of Elizabeth Warren, head of the congressional oversight panel examining TARP, who has the nerve to speak truth to power. A soft spoken woman, plainly not prone to violence, she frankly states that necessary, real reform be accomplished if necessary in an all-out fight, at great cost, with "plenty of teeth and blood left on the floor" -- a fight which we dearly hope occurs. It is a battle for the future of the country. Locating under the Fed, and thus gutting its independence is to eviscerate its function, disempower its ability and empower Wall Street even further: "My first choice is a strong consumer agency," the Harvard Law professor and federal bailout watchdog said in an interview with the Huffington Post. "My second choice is no agency at all and plenty of blood and teeth left on the floor." See http://www.huffingtonpost.com/2010/03/03/fight-for-the-cfpa-is-a-d_n_483707.html
Is this the 21st century equivalent of, "the peasants madame, they have no bread"; "The middle class, the economy, Messeeurs Bernanke and Dodd, it is crumbling. Then let them take subprime!" The public, thankfully, is gradually becoming aware that the Fed is not some type of federal government watchdog; it is of the bankers, for the bankers and by the bankers. Worse than putting the fox over the henhouse.
They are too powerful and really, for the long run, as anyone can see, too stupid. Blinded by greed, they are leading us to ruin. Then, if things really reach their natural conclusion, they will act shocked as the Bastille is stormed on the rubble.
Hey Greece! Beware Goldman Sachs Bearing Gifts!
Written by Jim McGrath Tuesday, 02 March 2010 14:43
Wall Street and Big Bank USA, after putting the U.S. economy into a coma, now threaten to bring down the oldest democracy in the world -- Greece. Wall Street + Big Bank USA have roared through the U.S. economy like a runaway locomotive, leaving incalculable economic damage in its wake. After saying NO to loans for the American people, YES to "mega-buck" bonuses for themselves from U.S. "bailout" funds, and "bailing out" on economic recovery for the American people, Big Bank USA set its sights overseas. It has now helped undermine Greece, the cradle of Western civilization, founder of the democratic tradition, and linchpin partner in NATO and in the Western alliance. Where does it end? Who's next? Ireland? Spain? Portugal? Italy? France? Britain? China? Russia? The possibilities are endless.
ENOUGH ALREADY!
"LESS BAIL, MORE JAIL"
WE SAY GIVE IT BACK!*
AND ARE WE NOT ALL BECOMING GREECE, WITH BANKERS' GIFTS TO RUIN US LIKE SUBPRIME VICTIMS, FOR GOLDMAN, ET. AL. PROFIT...LIKE WE PUT AWAY AL CAPONE, SO WE MUST GOLDMAN AND THEIR CONFRERES IN FINANCIAL CRIME! (READ ON...)
Well, we see how Goldman Sachs, and all these corporations, can help hide government debt for a price and make an immoral killing on it. Like a junkie and drug dealer, with the first hit free. Setting them up, by offering to hide their debts, a sure bet it would ruin Greece's financial standing, in order to short them and make a billion. For a good brief summary of this game, see The Business Insider at: http://www.businessinsider.com/goldman-sachs-shorted-greek-debt-after-it-arranged-those-shady-swaps-2010-2
Sounds like a rerun, where have we seen this picture before? RIGHT AT HOME IN OUR OWN (SUBPRIME) HOUSING MARKET, GOLDMAN SELLING TOXIC MORTGAGE SECURITIES AND SHORTING THE MARKET, KNOWING THEIR VALUE TO BE ONLY JUNK. AH, BUT IT'S ONLY HEDGING RIGHT? THERE OUGHT TO BE A LAW, IS WHAT WE HAVE BEEN SAYING FOR THE PAST FEW YEARS.
However, finance lobbyists are currently making sure that no effective legislation come out of committee, via their conduits (Shelby and the other Republicans) on the Banking Committee, luring Dodd to water down any legislation that would really protect us from the harmful financial practices that have grown up from the Reagan Revolution. SO THE BANKERS CAN CONTINUE, UNREPENTANT AND EVEN WORSE THAN BEFORE. THE STORY IS REPEATING ITSELF IN DANGEROUS, SHORT CHAPTERS UNTO THE ULTIMATE TRAGIC ENDING -- first the crisis, then propping them up, not taking effective action to break them up or rein them in, with resultant aggrandizement of ever increasing profits and bonuses, all with government help, ALL TO CONTINUE THESE AND WORSE PRACTICES FOR PROFIT, CREATING A MUCH WORSE VICIOUS AND HARMFUL CYCLE! THIS SAME SORT OF SCENARIO IS BEING PLAYED OUT OVER AND OVER EVERYWHERE....WE WILL SEE ITS REPETITION AND GROWTH ALL OVER THE GLOBE AS THE BEAST GROWS BEYOND TOO BIG TO FAIL, BECOMING TOO BIG TO DO ANYTHING ABOUT, AND ULTIMATELY, TOO BIG NOT TO UTTERLY RUIN AND DEVOUR US.
THERE MUST BE SOMETHING THAT WILL REIN THEM IN, THAT IS ILLEGAL IN THESE OR RELATED PRACTICES, AND IT IS HIGH TIME FOR ACTION, AND TO PROSECUTE THEM FOR OUR OWN SAFETY. LIKE AL CAPONE, who they couldn't pin bootlegging or other organized crime activities on, SURELY WE CAN GET GOLDMAN AND THEIR FELLOW FIDUCIARY CRIMINALS ON ANCILLARY GROUNDS OF LAW BREAKING. WHY? TO PUT A STOP TO OUR TOTAL RUIN.
IT'S NOT ILLEGAL BUT DOES THAT MAKE IT MORAL OR SAFE? OR UNDANGEROUS TO OUR FINANCIAL RUIN? LIKE GETTING SOMEONE ADDICTED TO A POWERFUL DRUG BEFORE IT BECOMES ILLEGAL. THAT IS THE NAME OF THEIR GAME, AND WE MUST OUTLAW THE DRUG AND THE DEALERS. WE MUST DEMAND AN END TO THIS TYPE OF BEHAVIOR, AND MAKE THESE FINANCIAL INSTRUMENTS OF OUR MASS DESTRUCTION ILLEGAL.
$100 Million Instead of $120 Million is Still Wrong, Especially Wall Street's Fallacious Argument: We Must Honor Bonuses as "Contract Commitment" When They Dishonor & Change Labor's Contracts All the Time
Written by Jim McGrath Wednesday, 03 February 2010 18:30
We read that A.I.G. will only dispense $100 million in bonuses to those who helped create our current economic disaster and will refrain from distributing an additional $20 million, presumably to show their generosity or in an effort to win over public opinion. Wall Street, A.I.G. notably among them, argue that they must honor their contract commitments and distribute bonuses previously committed to. THAT ARGUMENT WON'T FLY! Overlooked and unmentioned is the time-honored tradition that labor contracts are alterable! Workers are often victimized into renegotiating their pay contracts for less pay, fewer benefits and more hassle. What meat do they eat that makes them grow so great? Is it that all pay agreements for management must be honored, but other mere mortals must alter their wage and benefit agreements when the company is in danger? The answer: greed and advantage. Now with organized union membership at all-time lows, Big Bank USA (and the rest of big business, too) can do so not because it is right, customary or legal, but simply because they can.
Their second argument smacks of royalism: that they must keep these employees, lest they flee for better paying jobs. Do they not understand that they are not the entitled to bonuses for whatever they do, ill or good? Can Wall Street not get it through its head that they are actually claiming they should be rewarded for ruining these companies and the economy? Has 2008 not happened in their zeitgeist? Apparently not. Let's hope Congress and the rest of us don't forget, so we can stop (and remedy) these shenanigans.
Our flyers distributed at our demonstration in January against Wall Street pay and bonuses outside Goldman Sachs' s offices well noted that:
WALL STREET + BIG BANK USA
CRIME BUT NO PUNISHMENT!
U.S. economic and fiscal meltdowns are right here - all around us - Wall Street + Big Bank USA. Here are the pirates responsible. Big Bank USA says NO to loans for the American people but YES to "mega-buck" bonuses for themselves! Big Bank USA has been subsidized by U.S. "bailout" funds, but Big Bank USA has "bailed out" on economic recovery and the American people. Goldman Sachs executives are getting so much gold, their sacks "runneth over."
ENOUGH ALREADY!
"LESS BAIL, MORE JAIL"
WE SAY GIVE IT BACK!
Demonstation Against Goldman Sachs and Bonuses a Success
Written by Jim McGrath Monday, 01 February 2010 13:28
Our march against Big Bank USA, bailouts and bonuses was a success in NYC. We had a good turnout and Goldman security overreacted, as usual. Told we need permits by their security forces, we checked with the First District police, who verified that no such thing was needed, only a sound permit IF we had loudspeakers or boom boxes (which we did not). So, we exercised our right to free speech and free assembly, letting Wall Street know how the vast majority of Americans feel.
Many passers-by, some Goldman employees themselves proclaimed themselves in agreement. Next time, we plan to rally with the Catholic Workers group and organized union groups. Stay tuned.
Join Our Demonstration Against Bonuses at Goldman Sach Down on Wall Street This Week!
Written by Jim McGrath Monday, 25 January 2010 21:18
TENAC, a fair housing advocacy coalition, is demonstrating against Walls Street bonuses and Big Bank USA, at Goldman Sachs headquarters in downtown NYC this week. We will be at Goldman headquarters, 85 Broad Street, NYC, rush evening hour Tuesday, January 26th and Wednesday afternoon January 27th. We will be peacefully exercising our right to freely assemble and free speech. We have signs, just bring yourself and your voices. For details and any questions, email us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it Take the subway 2 or 3 train to Wall Street station or the J, M or Z train to Broad Street station and walk south. 85 Broad Street is below Wall Street, between S. William Street and Pearl Street.
WALL STREET + BIG BANK USA
CRIME BUT NO PUNISHMENT
U.S. economic and fiscal meltdowns are right here - all around us - Wall Street + Big Bank USA. Here are the pirates responsible. Big Bank USA says NO to loans for the American people but YES to "mega-buck" bonuses for themselves! Big Bank USA has been subsidized by U.S. "bailout" funds, but Big Bank USA has "bailed out" on economic recovery and the American people. Goldman Sachs executives are getting so much gold, their sacks "runneth over."
ENOUGH ALREADY!
"LESS BAIL, MORE JAIL"
WE SAY GIVE IT BACK!
TENAC
Jim McGrath, Chairman
P.O. BOX 7237, DC 20044 (202) 387-1893 / 328-2274
www.tenac.org/ This e-mail address is being protected from spambots. You need JavaScript enabled to view it
For info/help: www.wrathofmcgrath.com
More Articles...
- Crime No Punishment that Even Jefferson's Prescience Warned Of, If Ever We Have Big Bank USA!
- PROTEST BIG BANKS: TRANSFER YOUR DEPOSITS TO A LOCAL BANK, EFFORTLESSLY WITH A CLICK! Sponsored by THE MOVE YOUR MONEY CAMPAIGN WEBSITE!
- HISTORY RHYMES, NOT REPEATS: No Public Option Means Health Cost Debacle, a la Banking Dereg
- ANNOUNCING THE MCGRATH PLATINUM FLEECE AWARDS FOR BONUS RIP-OFFS! SUBMIT YOUR NOMINEES TODAY!
Page 2 of 4
Recent Videos
Condolences Condoleezza
Latest Dispatches
Latest From United for Peace & Justice
©2008–2010 Wrath of McGrath All rights reserved.