June 18, 2014 archive

Too Big To Fail Banks Are Getting Bigger

Last week the city of Miami sued JP Morgan Chase for its predatory lending practices in Miami’e minority neighborhoods that caused a wave of foreclosures resulting in blight and high crime in those areas

There has been no criminal prosecution of these banking behemoths by the Department of Justice, not because of lack of evidence but because Attorney General Eric Holder refused to bring those charges. Instead Holder has negotiated with the banks and, in the case of JPMorgan, directly with the CEO’s, imposing large fines that most of these banks recoup in hours. We know that the Obama administration is top heavy with former Wall Street and banking executives from Obama’s Treasury Department, to the Department of Commerce down to his latest appointment Thomas Wheeler, as chair of the Federal Communications Commission. Why has this been allowed? Why haven’t the regulations and reforms been enacted? Why no prosecutions? One word answer: Congress. As PBS’s [Bill Moyer notes Congress is their secret weapon

These finance executives took part in “scandals that violate the most basic ethical norms,” as the head of the IMF Christine Lagarde put it last month, including illegal foreclosures, money laundering and the fixing of interest rate benchmarks. In fact, banking CEOs not only avoided prosecution but got average pay rises of 10 percent last year, taking home, on average, $13 million in compensation.

  These “gentlemen” are among the leaders of the industry’s efforts to repeal, or water down, some of the tougher rules and regulations enacted in the Dodd-Frank legislation that was passed to prevent another crash. As usual, they’re swelling their ranks with the very people who helped to write that bill. More than two dozen federal officials have pushed through the revolving door to the private sector they once sought to regulate.

   And then there are the lapdogs in Congress willfully collaborating with the financial industry. As the Center for Public Integrity put it recently, they are “Wall Street’s secret weapon,” a handful of representatives at the beck and call of the banks, eager to do their bidding. Jeb Hensarling is their head honcho. The Republican from Texas chairs the House Financial Services Committee, which functions for Wall Street like one of those no-tell motels with the neon sign. Hensarling makes no bones as to where his loyalties lie. “Occasionally we have been accused of trying to undermine aspects of Dodd-Frank,” he said recently, adding, with a chuckle, “I hope we’re guilty of it.” Guilty as charged, Congressman. And it tells us all we need to know about our bought and paid for government that you think it’s funny.

Mr. Moyers was joined by economist Anat Admati, co-author of the book, The Bankers’ New Clothes, to discuss the bipartisan effort to defang Dodd-Frank and let these Too Big To Fail banks get even bigger.

Wall Street banks are lobbying to defang sections of the law related to derivatives – the complex financial contracts at the core of the meltdown. One deregulation bill, the “London Whale Loophole Act,” would allow American banks to skip Dodd-Frank’s trading rules on derivatives if they are traded in countries that have similar regulatory structures.



Full transcript can be read here

Cartnoon

Another bad idea, eh?

Despite Protests, Canada Approves Northern Gateway Oil Pipeline

By IAN AUSTEN, New York Times

JUNE 17, 2014

The Northern Gateway project, which the government approved on Tuesday as expected, would send heavy, oil-bearing bitumen to Asia, giving Canadian producers better access to the world markets. The pipeline, being built by Enbridge, has been championed by the federal government as a way to diversify Canada’s energy industry from its current dependence on exports to the United States.

But opponents in British Columbia, who span the political spectrum, threatened to block the pipeline altogether. The fear is that the pipeline would make the province vulnerable to an oil spill, damaging the rugged and scenic coastline.



Northern Gateway has become something of backup for Canada, as approval for the Keystone XL pipeline remains mired in Washington. If built, Northern Gateway would ship about 500,000 barrels of bitumen a day to the coast compared with the 700,000-barrel-a-day capacity of Keystone XL, which would take oil sands production to the Gulf Coast of the United States. When Northern Gateway is combined with the country’s other pipeline plans, Canada could expand shipments from the oil sands by three million barrels a day.



The National Energy Board, which originally reviewed the proposal, attached a list of 209 conditions to the deal, although none of them are viewed as insurmountable. The government’s approval on Tuesday is also predicated on fulfilling those conditions.



The most pressing problem is addressing the concerns of the native Canadian tribes. About a decade ago, the Supreme Court of Canada ruled that such native groups must be consulted and accommodated about projects that cross their land. The definition of both terms remains fuzzy, but most legal experts say that the native groups do not have a veto.

Still, such groups are preparing for a fight. Art Sterritt, the executive director of Coastal First Nations, an alliance of nine native groups opposed to the pipeline, said his organization would take legal action and form political alliances to block the project. On Monday, the Coastal First Nations formed a group with Unifor, formerly the Canadian Auto Workers union, and several environmental groups to quash the project.

The main issue for his members, Mr. Sterritt said, was the oil industry’s inability to demonstrate that it could effectively clean up coastal oil spills. If legal and political challenges are ultimately unsuccessful, Mr. Sterritt added, “our people will be out there stopping the bulldozers.”

The Breakfast Club: 6-18-2014

Welcome to The Breakfast Club! We’re a disorganized group of rebel lefties who hang out and chat if and when we’re not too hungover we’ve been bailed out we’re not too exhausted from last night’s (CENSORED) the caffeine kicks in. Everyone’s welcome here, no special handshake required. Just check your meta at the door.

Join us every weekday morning at 9am (ET) and weekend morning at 10:30am (ET) to talk about current news and our boring lives and to make fun of LaEscapee! If we are ever running late, it’s PhilJD’s fault.

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This Day in History

On This Day In History June 18

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

Click on images to enlarge.

June 18 is the 169th day of the year (170th in leap years) in the Gregorian calendar. There are 196 days remaining until the end of the year.

On this day in 1812, War of 1812 begins

The day after the Senate followed the House of Representatives in voting to declare war against Great Britain, President James Madison signs the declaration into law–and the War of 1812 begins. The American war declaration, opposed by a sizable minority in Congress, had been called in response to the British economic blockade of France, the induction of American seaman into the British Royal Navy against their will, and the British support of hostile Indian tribes along the Great Lakes frontier. A faction of Congress known as the “War Hawks” had been advocating war with Britain for several years and had not hidden their hopes that a U.S. invasion of Canada might result in significant territorial land gains for the United States.

The War of 1812 was a military conflict fought between the forces of the United States of America and those of the British Empire, including those of present-day Canada. The Americans declared war in 1812 for a number of reasons, including a desire for expansion into the Northwest Territory, trade restrictions because of Britain’s ongoing war with France, impressment of American merchant sailors into the Royal Navy, British support of American Indian tribes against American expansion, and the humiliation of American honour. Until 1814, the British Empire adopted a defensive strategy, repelling multiple American invasions of the provinces of Upper and Lower Canada. However, the Americans gained control over Lake Erie in 1813, seized parts of western Ontario, and destroyed Tecumseh’s dream of an Indian confederacy. In the Southwest General Andrew Jackson humbled the Creek nation at the Battle of Horseshoe Bend but with the defeat of Napoleon in 1814, the British adopted a more aggressive strategy, sending in three large armies along with more patrols. British victory at the Battle of Bladensburg in August 1814 allowed the British to capture and burn Washington, D.C. American victories in September 1814 and January 1815 repulsed British invasions of New York, Baltimore and New Orleans.

The war was fought in three theaters: At sea, warships and privateers of both sides attacked each other’s merchant ships. The British blockaded the Atlantic coast of the U.S. and mounted large-scale raids in the later stages of the war. Both land and naval battles were fought on the frontier, which ran along the Great Lakes and Saint Lawrence River. The South and the Gulf coast saw major land battles in which the American forces destroyed Britain’s Indian allies and defeated the main British invasion force at New Orleans. Both sides invaded each other’s territory, but these invasions were unsuccessful or temporary. At the end of the war, both sides occupied parts of the other’s territory, but these areas were restored by the Treaty of Ghent.

In the U.S., battles such as the Battle of New Orleans and the earlier successful defense of Baltimore (which inspired the lyrics of the U.S. national anthem, “The Star-Spangled Banner”) produced a sense of euphoria over a “second war of independence” against Britain. It ushered in an “Era of Good Feelings” in which the partisan animosity that had once verged on treason practically vanished. Canada also emerged from the war with a heightened sense of national feeling and solidarity. Britain regarded the war as a sideshow to the Napoleonic Wars raging in Europe; it welcomed an era of peaceful relations and trade with the United States.

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