Our Common Good

But there’s something brewing that looks like it might be a blueprint to effectively take on the financial services industry: a plan to allow local governments to take on the problem of neighborhoods blighted by toxic home loans and foreclosures through the use of eminent domain. I can’t speak for how well the program will work, but it’s certaily been effective in scaring the hell out of Wall Street.

Under the proposal, towns would essentially be seizing and condemning the man-made mess resulting from the housing bubble. Cooked up by a small group of businessmen and ex-venture capitalists, the audacious idea falls under the category of “That’s so crazy, it just might work!” One of the plan’s originators described it to me as a “four-bank pool shot.”

  INFOGRAPHIC: The LIBOR Scandal Explained (via Business Insider)

  INFOGRAPHIC: The LIBOR Scandal Explained (via Business Insider)

"Crime Of The Century"

liberalsarecool:

Robert Sheer of TruthDig:

“Forget Bernie Madoff and Enron’s Ken Lay—they were mere amateurs in financial crime. The current LIBOR interest rate scandal, involving hundreds of trillions in international derivatives trade, shows how the really big boys play. And these guys will most likely not do the time because their kind rewrites the law before committing the crime.

Modern international bankers form a class of thieves the likes of which the world has never before seen. Or, indeed, imagined. The scandal over LIBOR — short for London interbank offered rate — has resulted in a huge fine for Barclays Bank and threatens to ensnare some of the world’s top financers. It reveals that behind the world’s financial edifice lies a reeking cesspool of unprecedented corruption. The modern-day robber barons pillage with a destructive abandon totally unfettered by law or conscience and on a scale that is almost impossible to comprehend.”

Writ large: bankers = thieves

ca-thar-sis:

abaldwin360:

The supposedly best run bank in the financial industry is in the thick of yet another investigation once again. Besides suggestions that JPMorgan may also be involved in the Libor criminal manipulation that has taken down three top executives at Barclays, JPMorgan is under investigation in the US for possibly manipulating the US energy market.

How many more free rides and bogus settlements that involve agreement that nobody was guilty are we going to have to see before Washington gets serious about white collar crime?

Surprise, surprise…

progressivefriends:

Elliot Spitzer and Matt Taibbi explain and discuss this widening financial scandal that started with Barclays.

Barclays, JPMorgan and the rest of the megabanks reach new heights in malfeasance, suffer few consequences

Lobbying Firm’s Memo Spells Out Plan to Undermine Occupy Wall Street

A well-known Washington lobbying firm with links to the financial industry has proposed an $850,000 plan to take on Occupy Wall Street and politicians who might express sympathy for the protests, according to a memo obtained by the MSNBC program “Up w/ Chris Hayes.”

The proposal was written on the letterhead of the lobbying firm Clark Lytle Geduldig & Cranford and addressed to one of CLGC’s clients, the American Bankers Association.

CLGC’s memo proposes that the ABA pay CLGC $850,000 to conduct “opposition research” on Occupy Wall Street in order to construct “negative narratives” about the protests and allied politicians. The memo also asserts that Democratic victories in 2012 would be detrimental for Wall Street and targets specific races in which it says Wall Street would benefit by electing Republicans instead.

According to the memo, if Democrats embrace OWS, “This would mean more than just short-term political discomfort for Wall Street. … It has the potential to have very long-lasting political, policy and financial impacts on the companies in the center of the bullseye.”

The memo also suggests that Democratic victories in 2012 should not be the ABA’s biggest concern. “… (T)he bigger concern,” the memo says, “should be that Republicans will no longer defend Wall Street companies.”

Two of the memo’s authors, partners Sam Geduldig and Jay Cranford, previously worked for House Speaker John Boehner, R-Ohio. Geduldig joined CLGC before Boehner became speaker;  Cranford joined CLGC this year after serving as the speaker’s assistant for policy. A third partner, Steve Clark, is reportedly “tight” with Boehner, according to a story by Roll Call that CLGC features on its website. 

Jeff Sigmund, an ABA spokesperson, confirmed that the association got the memo. “Our Government Relations staff did receive the proposal – it was unsolicited and we chose not to act on it in any way,” he said in a statement to “Up.”

CLGC did not return calls seeking comment.

Boehner spokesman Michael Steel declined to comment on the memo. But he responded to its characterization of Republicans as defenders of Wall Street by saying, “My understanding is that President Obama is the single largest recipient of donations from Wall Street.”

The CLGC memo raises another issue that it says should be of concern to the financial industry — that OWS might find common cause with the Tea Party. “Well-known Wall Street companies stand at the nexus of where OWS protestors and the Tea Party overlap on angered populism,” the memo says. “…This combination has the potential to be explosive later in the year when media reports cover the next round of bonuses and contrast it with stories of millions of Americans making do with less this holiday season.”

The memo outlines a 60-day plan to conduct surveys and research on OWS and its supporters so that Wall Street companies will be prepared to conduct a media campaign in response to OWS. Wall Street companies “likely will not be the best spokespeople for their own cause,” according to the memo.  “A big challenge is to demonstrate that these companies still have political strength and that making them a political target will carry a severe political cost.”  

Part of the plan CLGC proposes is to do “statewide surveys in at least eight states that are shaping up to be the most important of the 2012 cycle.”

Specific races listed in the memo are U.S. Senate races in Florida, Pennsylvania, Virginia, Wisconsin, Ohio, New Mexico and Nevada as well as the gubernatorial race in North Carolina.

The memo indicates that CLGC would research who has contributed financial backing to OWS, noting that, “Media reports have speculated about associations with George Soros and others.”

"It will be vital,” the memo says, “to understand who is funding it and what their backgrounds and motives are. If we can show that they have the same cynical motivation as a political opponent it will undermine their credibility in a profound way.”

(via Up with Chris Hayes)

Instead, the American financial industry gained political power by amassing a kind of cultural capital—a belief system. Once, perhaps, what was good for General Motors was good for the country. Over the past decade, the attitude took hold that what was good for Wall Street was good for the country. The banking-and-securities industry has become one of the top contributors to political campaigns, but at the peak of its influence, it did not have to buy favors the way, for example, the tobacco companies or military contractors might have to. Instead, it benefited from the fact that Washington insiders already believed that large financial institutions and free-flowing capital markets were crucial to America’s position in the world.

Great essay by Simon Johnson.  You should read it all.

I have no problem with capitalism. But I find the way the financial system is functioning deeply unethical. We shouldn’t bail out the banks. We should bail out the people.