Outten & Golden: Empowering Employees in the Workplace

Posts Tagged ‘Consumer Financial Protection Agency’

Showdown in Chicago: Thousands Protest Bankers

Tuesday, October 27th, 2009

Image: Seth MichalsMore than 5,000 people are packing the streets of downtown Chicago this morning, chanting, marching and rallying against Big Bankers and financial institutions that have taken taxpayer money and are using it to give big bonuses to CEOs and to lobby against financial reforms that would ensure they don’t go back on the public dole.

The crowd is marching to the Sheraton Chicago Hotel & Towers, site of the American Bankers Association meeting, to protest the banking industry’s greed and irresponsibility that crippled our economy, leaving millions of workers behind.

Photo by SEIU

Photo by SEIU

After the house of cards they built collapsed, bankers and the financial industry took $700 billion in taxpayer funds for a bailout. But rather than reform their failed practices, they want to go back to business as usual—with the chance of again precipitating another financial collapse and need for taxpayer bailout in coming years.

AFL-CIO President Richard Trumka, who is joining union members and allies at today’s events, has a clear message to bankers: You work for us.

Business as usual is over. We are shutting it down. You work for us—not the other way around. Your job is to be stewards of our savings, to put and keep working families in homes, to lend the money companies need to create jobs. And you have failed. You’ve turned the American economy into your own private casino, gambling away our financial future with our money, and driving us to the brink of a second Great Depression—then sticking out your hand for taxpayers to bail you out.

Praising Barack Obama’s administration for trying to stop the out-of-control bonuses paid to executives at bailed-out banks, Trumka says we need to go further by setting tough new rules so that the financial industry can’t run our economy into the ground again.

Trumka calls for four key principles to be part of any financial reform:

  • A new Consumer Financial Protection Agency to monitor banks and credit card companies and prevent abuses.
  • Reform the Federal Reserve Board or create an agency capable of stopping systemic risk.
  • More transparency so that hedge funds, derivatives and private equity markets can have real oversight.
  • Reform of corporate governance and executive compensation to make the finance industry work on behalf of the real economy, not vice versa.

This shouldn’t be a moment, Trumka says, where we pretend we can go back to the old broken economy that benefited only a few at the expense of everyone else.

Our economy has been all but destroyed. We have to build a whole new one, based on good jobs, not on bad debt; with America investing in and exporting technology and world-class products, not financial crisis; where hard work is rewarded, not colossal failure; where workers have a real voice because they have the freedom to have a union if they want one; and where all of us have the health care we need.

Appearing on the local Fox affiliate this morning, Trumka said it’s an outrage the financial industry took billions in taxpayer dollars, yet uses its resources to lobby against regulations to prevent a crisis like this from happening again:

The bankers who took all the risk and now are doing everything that they can to block reform so that it doesn’t happen again. Now that’s the problem. They want to do the same things over and over again, and they want us to pay the price again.

This article originally appeared in AFL-CIO Now on October 27, 2009. Reprinted with permission from the author.

About the Author: Seth Michaels is the online campaign coordinator for the AFL-CIO, focusing on the Employee Free Choice campaign. Prior to arriving at the AFL-CIO, he’s worked on online mobilization for Moveon.org, Blue State Digital and the National Jewish Democratic Council. He also spent two years touring the country as a member of the Late Night Players, a sketch comedy troupe.

The Chamber of Commerce's Jobs Deception Campaign

Tuesday, October 20th, 2009

Unions are popularly known as “the folks who brought you the weekend.” In contrast, the U.S. Chamber of Commerce has the distinction of trying to take away the weekend–along with overtime pay, the minimum wage, Buy America rules, workers’ freedom to form unions, child labor standards….The list is long and ugly.

So it’s farcical that today the Chamber launched a campaign estimated to run in the tens of millions of dollars to promote job creation.

The Chamber’s campaign originally started out as an attack against financial regulation–until the Chamber found out how strongly U.S. taxpayers support reining in Big Banks and the financial industry’s widespread shady practices. So the Chamber conveniently changed the packaging to purportedly focus on jobs, which in fact the American people desperately need.

Look at who accompanied the Chamber suits while they were announcing their Orweillian-named “free enterprise campaign.” As Sam Stein reported here:

Many of the individuals featured on Wednesday are long-standing donors to Republican candidates and groups that have fought efforts to enhance regulation. And, in one case, the business leader appearing alongside [Thomas] Donohue to decry the interference of government in the market place received business through the benefit of government contracts.

Yet, while millions of America’s workers struggle to find jobs in an economy where there are more than six workers searching for every one job, the Chamber repeatedly opposed extending unemployment insurance. Can’t have government interference in the marketplace, after all. Or aid to jobless workers. The same workers the Chamber’s smoke-and-mirrors campaign is supposed to be all about.

The Chamber also is joining with Big Banks and financial giants to try and kill a proposed agency that would protect U.S. consumers from being preyed upon by unscrupulous banks, mortgage lenders and many of the same financial institutions that helped create our nation’s economic disaster. The Obama administration’s proposed Consumer Financial Protection Agency, which this week is being considered in the House Financial Services Committee, would regulate products such as credit cards and home loans, while ensuring the U.S. Securities and Exchange Commission oversaw the $450 trillion “derivatives” market that sunk the world economy.

The Chamber is spending $2 million in attack ads, claiming that the new agency would hamstring even your local butcher from extending you credit for a week. It’s the same sorry effort at deception and outright lies that the health insurance industry now is trying to pull in the debate over health care reform. Tell enough lies and hope someone believes you.

As President Obama said in response to the Chamber’s distortion:

“We’ve made clear that only businesses that offer financial services would be affected by this agency. I don’t know how many of your butchers are offering financial services,” Obama said to laughter.

The Chamber is so twisted up in deception it seems unable to even provide accurate membership numbers. Writing in Mother Jones this week, David Corn points to a big discrepancy between the Chamber’s public membership numbers and reality.

In testimony before Congress, statements to the press, and on its website, the Chamber claims to represent “3 million businesses of all sizes, sectors, and regions.” In reality, the number is probably closer to 200,000.

Not sure if the 200,000 includes Apple Inc., Pacific Gas & Electric and the other giant corporations that recently have pulled their membership from the Chamber because of its draconian stand on climate change.

The Chamber’s so-called “free enterprise” campaign has been tried before. After World War II, the National Association of Manufacturers led a similar such effort. That campaign to sell capitalism to U.S. consumers incurred the derision of no less than the editors of Fortune magazine, who found similar sentiments among business executives represented on the boards of the business associations that supposedly represented them.

In dismissing the campaign as ludicrous, one such executive described it this way:

The best way we can demonstrate the importance of Free Enterprise is to make it work.

It’s clearly not working now. And although the Chamber may try to wrap itself in the shiny trappings of a feel-good campaign, its repeated attacks on consumers and workers demonstrate who the Chamber stands for: Wall Street not Main Street.

This post originally appeared in Campaign for America’s Future on October 15, 2009. Reprinted with permission by the author.

About the Author: Richard L. Trumka was elected AFL-CIO president in September 2009. He served as AFL-CIO secretary-treasurer since 1995. Born in Nemacolin, Pa., on July 24, 1949, Trumka was elected to the AFL-CIO Executive Council in 1989. At the time of his election to the secretary-treasurer post, he was serving his third term as president of the Mine Workers (UMWA). At the UMWA, Trumka led two major strikes against the Pittston Coal Co. and the Bituminous Coal Operators Association. The actions resulted in significant advances in employee-employer cooperation and the enhancement of mine workers’ job security, pensions and benefits.

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