General Motors IPO Provides Welcome News For U.S. Auto Industry Workers

November 18, 2010


Note: Having run a small manufacturing company that supplied the Big 3, I knew the potentially devastating short and long term impact allowing GM, Chrysler, and Ford to close would have.

From The Wall Street Journal, “The Center for Automotive Research said today the government’s bailouts of the U.S. auto industry spared more than 1.14 million jobs last year alone, and prevented “additional personal income losses” of nearly $97 billion combined for this year and last.

“Another 314,400 jobs were saved this year thanks to the $80 billion in taxpayer lifelines extended to GM, Chrysler, and the GMAC and Chrysler Financial financing businesses, CAR said. The research organization based its conclusions on the potential impact of auto-industry collapse for jobs at U.S. auto makers and suppliers, and cascading effects on the economy at large.”  For more visit the Center for Automotive Research


Financial Stability Oversight Council Holds Inaugural Meeting

October 3, 2010

Note:  The following is from information provided by the  U.S. Department of the Treasury …

Financial Stability Oversight Council Holds Inaugural Meeting

An Important Milestone Reached in Implementing the Dodd-Frank Wall Street Reform and Consumer Protection Act

WASHINGTON – Convening today for its first meeting, the Financial Stability Oversight Council took a number of important steps to fulfill its mandate under Dodd-Frank Wall Street Reform and Consumer Protection Act. As established under the Dodd-Frank Act, the Council will provide, for the first time, comprehensive monitoring to ensure the stability of our nation’s financial system. The Council is charged with identifying threats to the financial stability of the United States; promoting market discipline; and responding to emerging risks to the stability of the United States financial system.

Read the rest of this entry »


“On Labor Day, Work to Save the Middle Class”

September 4, 2010

The following came via email from Leo W. Gerard, International President United Steelworkers
September 3, 2010

This Labor Day feels gloomy. It’s a celebration of work when there is not enough of it, a day off when too many desperately seek a day on.

America has commemorated two Labor Days since this brutal recession began near the end of George Bush’s presidency in December of 2007. Now the relentless high unemployment, the ever-rising foreclosures, the unremitting wage and benefit take-backs have replaced American optimism and enthusiasm with fear and anger.

Happy Labor Day.

On this holiday, we can rant with Glenn Beck, kick the dog and hate the neighbor lucky enough to retain his job. Or we can do something different. We can join with our neighbors, employed and unemployed, our foreclosed-on children, our elderly parents fearing cuts in their Social Security lifeline and our fellow workers worrying that the furlough ax will strike them next. Together we can organize and mobilize and create a grassroots groundswell that gives government no choice but to respond to our needs, the needs of working people.

We can do what workers did during the Great Depression to provoke change, to create programs like Social Security and achieve recognition of rights like collective bargaining. These changes were sought by groups to benefit groups. In a civil society, people care for one another. And America is such a society – one where people routinely donate blood to aid anonymous strangers, children set up lemonade stands to contribute to Katrina victims and working families find a few bucks for United Way.

The self-righteous Right is all about individuals pulling themselves up by their bootstraps. That proposition – the do-it-all- by-yourself-winner-takes-all philosophy – clearly failed because so many Americans are jobless, homeless and too penniless to afford boots.

Over the past decade, the winner who took all was Wall Street. The banksters gambled on derivatives and other risky financial tomfoolery and won big time. Until they lost. And crashed the economy. After the American taxpayer bailed them out, those wealthy traders returned to making huge profits and bonuses based on perilous schemes.

Still, they believe they haven’t taken enough from working Americans. They’re lobbying to end aid for those who remain unemployed in a recession caused by Wall Street recklessness. And they’re demanding extension of their Bush-given tax breaks. This is the nation’s upper 1 percent, people who earn a million or more each year, the 1 percent that took home 56 percent of all income growth between 1989 and 2007, the year the recession began.

Since 2007, 8.2 million workers have lost jobs. Millions more are underemployed, laboring part-time when they need full-time jobs, or barely squeaking by on slashed wages and benefits. Since the recession began, the unemployment rate nearly doubled, from 5 percent to 9.6 percent, and that does not include those so discouraged that they’ve given up the search for jobs, a decision that is, frankly, understandable when there are only enough openings to re-employ 20 percent of the jobless. Five unemployed workers compete for each job created in this sluggish economy.

And American workers weren’t prepared for this downturn, having already suffered losses in the years before it began. The median income, adjusted for inflation, of working-age households declined by more than $2,000 in the seven years before the recession started.

At the same time, practices like off-shoring jobs and signing regressive international trade deals contributed to the loss of middle class, blue collar jobs. A new report, “The Polarization of Job Opportunities in the U.S. Labor Market,” by the Center for American Progress and The Hamilton Project, says:
“The decline in middle-skill jobs has been detrimental to the earnings and labor force participation rates of workers without a four-year college education, and differentially so for males, who are increasingly concentrated in low-paying service occupations.”

The recession compounded that, the report says:
“Employment losses during the recession have been far more severe in middle-skilled white- and blue-collar jobs than in either high-skill, white-collar jobs or low-skill service occupations.”

What that means is high roller banksters are living large; lawn care workers and waitresses subsist on minimum wage, and working class machinists and steelworkers are disappearing altogether.

The researchers found the U.S. economy is increasingly polarized into high-skill, high-wage jobs and low-skill, low wage jobs. America is losing the middle jobs and with them its great middle class.

No wonder the rising anger in middle-class America.

But fury doesn’t solve the problem. This Labor Day, we must organize to save ourselves and our neighbors. We must stop America from descending into plutocracy. We must demand support for American manufacturing and middle class jobs. That means terminating tax breaks for corporate outsourcers, ending trade practices that violate agreements and international law and punishing predator countries for currency manipulation that subverts fair trade by artificially lowering the price of products shipped into the U.S. while artificially raising the price of American exports.

We must demand support for American industry, particularly manufacturers of renewable energy sources like solar cells and wind turbines that create good working class jobs, increase America’s energy independence and reduce climate change.

We must insist on policies that support the middle class, including preserving Social Security and Medicare, extending unemployment insurance while joblessness remains high, and enforcing the health care reform law so that every American worker and family can afford and is covered by insurance.

On this Labor Day, we should all have a picnic, invite neighbors, friends and family, and over hot dogs and potato salad, organize to save the American middle class.

Mobilize to end the gloom and restore American optimism.

***
For help: the Union of the Unemployed, the AFL-CIO, USW, Working America. Join the One Nation March for jobs Oct. 2 in Washington, D.C.


Obama Administration Pushes “Bank On USA” To Help Unbanked and Underbanked Americans

September 3, 2010

Note:  The following is a link to the press release that follows re: Treasury Announces New Pilot to Help Deliver Safe, Low-Cost Financial Accounts During Tax Season dated, September 2, 2010

WASHINGTON – Today, the U.S. Department of the Treasury announced that it will launch a new pilot program to help capitalize on tax refund season as an opportunity to provide unbanked and underbanked Americans with access to safe, low-cost financial accounts. This pilot will deliver targeted offers to certain low and moderate income individuals to sign up for new accounts with debit card access at tax time in order to receive their refunds through direct deposit. It will also test offering accounts that can be used year-round in the future to deposit other sources of income, store money safely, make purchases, pay bills, withdraw cash, and build savings.

“Far too often, unbanked and underbanked Americans are forced to turn to high-cost alternative financial products – such as check-cashing and other services – that take a big bite out of the savings of those who can least afford it,” said Michael S. Barr, Assistant Treasury Secretary for Financial Institutions. “For many individuals, a tax refund is the single largest payment that they will receive each year. That’s why tax season is a great opportunity to deliver safe, low-cost financial products to the unbanked and underbanked that will help those Americans build stronger foundations for their financial futures.”

The pilot is expected to launch during next year’s tax return filing season. Treasury will reach out to eligible taxpayers in early 2011 through two methods:

  • Direct Mail. Treasury will mail information about how to sign up for the new accounts to low and moderate income individuals who have received paper check refunds in prior years or who otherwise have not provided bank account information to Treasury.
  • Payroll Outreach. Treasury will partner with the private sector to insert offers to enroll in the pilot into the paychecks and paystubs of select individuals who are not currently using direct deposit to receive their tax refunds.

The offers to enroll in the pilot will include instructions on how to use the account.  Treasury will evaluate the results of the pilot to inform future decisions about the viability, structure, and timing of offering similar accounts as an integrated part of the tax filing and refund process.

According to the Federal Deposit Insurance Corporation’s (FDIC) 2009 National Survey of Unbanked and Underbanked Households, there are an estimated 9 million households without bank accounts. Another 21 million households are underbanked, meaning that they have a bank account, but these accounts do not fully meet their needs, and they still rely on high-cost check cashing services or other costly financial service providers.

The use of safe and appropriate financial services and products can help households maintain financial stability.  Unbanked and underbanked individuals often face difficulties saving and planning for their financial futures, making them more vulnerable to medical or employment emergencies and threatening their ability to invest in continuing education, purchase a home, or send their children to college. The unbanked are disproportionally low and moderate income.  According to the FDIC’s 2009 National Survey, a person making $30,000 or less is more than 7 times as likely to be unbanked as someone making $50,000 or more.

This pilot will build on the Obama Administration’s continuing efforts to assist the unbanked and underbanked as well as empower Americans to make informed financial decisions. Social Security and Supplemental Security Income benefit recipients can currently receive their payments through the Direct Express® Debit MasterCard® card, a program established pursuant to terms approved by Treasury.  By 2011, Direct Express is expected to expand to all individual federal benefit programs.  Additionally, President Obama has requested $50 million in his FY 2011 Budget for a new “Bank On USA” initiative designed to bolster state and local efforts to help low and moderate income Americans obtain access to safe and appropriate financial services and products.


Virginia Senator Mark Warner on Regulating Financial Institutions “Too Big to Fail”

June 16, 2009

Note: “Senator Mark Warner took to the Senate floor on June 16 to express his concerns about plans for the Federal Reserve to regulate financial institutions considered “too big to fail.” He proposed the creation of a “systemic risk council” that would include the Treasury secretary, Fed chairman and heads of major financial regulatory agencies who would would monitor systemic risks and have authority to act in a narrow set of areas.”


Treasury Proposes Regulatory Reform of Over-The-Counter (OTC) Derivatives

May 17, 2009

note: these reforms are what the Treasury is proposing … 

 

Regulatory Reform Over-The-Counter (OTC) Derivatives

 

The crisis of the past 20 months has exposed critical gaps and weaknesses in our financial regulatory system. As risks built up, internal risk management systems, rating agencies and regulators simply did not understand or address critical behaviors until they had already resulted in catastrophic losses. Those failures have caused a dramatic loss of confidence in our financial institutions and have contributed to a severe recession.

 

Last March, Secretary Geithner laid out new regulatory rules of the road to ensure we never face a crisis of this magnitude again. An essential element of reform is the establishment of a comprehensive regulatory framework for over-the-counter derivatives, which under current law are largely excluded or exempted from regulation.

 

 

Read the rest of this entry »


Treasury’s Supervisory Capital Assessment Program: Overview of Results

May 8, 2009

STATEMENT FROM TREASURY SECRETARY TIM GEITHNER REGARDING THE TREASURY CAPITAL ASSITANCE PROGRAM AND THE SUPERVISORY CAPITAL ASSESSMENT PROGRAM


For The Supervisory Capital Assessment Program: Overview of Results, visit link

 

Washington — This afternoon, the Federal Reserve and the national banking agencies released the results of the stress tests – the most comprehensive, forward looking review of our nation’s largest banks ever undertaken.  These tests will help ensure that banks have a sufficient capital cushion to continue lending in a more adverse economic scenario.  They will provide the transparency necessary for individuals and markets to judge the strength of the banking system.

 

This capital assessment is an important part, but just one part of the President’s comprehensive plan to stabilize and repair the financial system and help get credit flowing again.  Over the last three months, we have put in place a series of programs to address the housing crisis, to help restart the securities markets that are critical to business and consumer lending, to catalyze small business lending in particular, and to help create a market for legacy real estate related loans and thereby help clean up bank balance sheets.  

 

 

Alongside these programs, we have worked to restore confidence in the banking system.  The assessment announced today will help strengthen the lending capacity of banks, with greater transparency and actions to reinforce the amount of capital banks hold against the risk of future losses.  Capital is critical to lending.  Each dollar of capital generates up to 12 dollars of lending capacity.  And each dollar of lending capacity helps businesses grow and reduces the cost of borrowing for firms and families.  Read the rest of this entry »


100 Days With Obama and the Democrats – Americans United for Change

April 25, 2009

President Obama’s Weekly Video Address – Reforming Government

April 25, 2009

note:  President Obama’s video speaks to building … “a new foundation for the 21st century, we need to reform our government so that it is more efficient, more transparent, and more creative.”


President Obama Speaks at Georgetown University About Our Economic Situation

April 15, 2009


Note: I urge you to check out this video of President Obama as he attempts to explain the “recklessness” that led our nation and the world into this fiscal crisis … the steps his administration is taking to get us out … the long-term economic foundation that must include real financial regulations (and regulators) … and much more …