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Showing posts with label wells fargo. Show all posts
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24 September 2016
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06 January 2016
BERNIE tiene un mensaje para WALL STREET - "No se puede tener todo!" #BreakEmUp 5JAN16
"Yo no quiero ser del agrado de todos. Llega un momento en el que usted tiene que tomar en el establecimiento y no ser parte de ese establecimiento."
Senador Bernie Sanders
Senador Bernie Sanders
Reforma de Wall Street y Política Financiera | Bernie Sanders
Transmitido en vivo en 05 de enero 2016Bernie Sanders habla de su visión de la reforma económica en Estados Unidos, incluyendo reinante en las políticas financieras que tendría aplicar como presidente de Wall Street y. "Si Wall Street no termina su avaricia, terminaremos por ellos!" #BreakEmUp Senador del estado de NY James Sanders introduce el senador Bernie Sanders con un discurso esclarecedor sobre el impacto de la crisis financiera en los neoyorquinos de todas las clases sociales.
Comentarios preparados
Wall Street y la Economía
El pueblo estadounidense está poniendo de moda. Ellos entienden que algo está profundamente mal cuando, en nuestro país hoy en día, la parte superior de una décima parte del 1 por ciento posee casi tanta riqueza como la parte inferior del 90 por ciento y cuando las 20 personas más ricas poseen más riqueza que los inferiores a 150 millones de estadounidenses - la mitad de nuestra población. Ellos saben que el sistema está amañado cuando la persona promedio está trabajando más horas por salarios más bajos, mientras que el 58 por ciento de todos los nuevos ingresos va al 1 por ciento.
También saben que un puñado de personas en Wall Street tienen un poder extraordinario sobre la situación económica y la vida política de nuestro país. Como mucha gente sabe, en los años 1990 y posteriores, los intereses financieros gastan miles de millones de dólares en cabildeo y campañas contribuciones a la fuerza en el Congreso la desregulación de Wall Street, la derogación de la Ley Glass-Steagall y el debilitamiento de las leyes de protección del consumidor en los Estados .
Pasaron este dinero con el fin de conseguir que el gobierno de sus espaldas y mostrar al pueblo estadounidense lo que podrían hacer con ese nuevo ganado la libertad. Bueno, seguro que mostraron al pueblo estadounidense. En 2008, la codicia, la imprudencia y la conducta ilegal en Wall Street casi destruyeron la economía estadounidense y mundial.
Millones de estadounidenses perdieron sus empleos, sus casas y sus ahorros.
Mientras Wall Street recibió el mayor rescate de los contribuyentes en la historia del mundo con sin condiciones, la clase media estadounidense continúa desapareciendo, la pobreza va en aumento y la brecha entre los muy ricos y todos los demás están creciendo más y más. Y los ejecutivos de Wall Street siguen recibiendo los paquetes de compensación enormes como si la crisis financiera que crearon nunca sucedió.
La codicia, el fraude, la deshonestidad y la arrogancia, estas son las palabras que mejor describen la realidad de Wall Street hoy.
Por lo tanto, a los de Wall Street que puede estar escuchando hoy, permítanme ser muy claro. La codicia no es buena. De hecho, la codicia de Wall Street y la América corporativa está destruyendo el tejido de nuestra nación. Y, aquí es una Resolución de Año Nuevo que voy a seguir si es elegido presidente. Si no termina su avaricia, terminaremos por usted.
Ya no vamos a tolerar una economía y un sistema político que ha sido manipulado por Wall Street para beneficiar a los estadounidenses más ricos de este país a expensas de todos los demás.
Mientras que el presidente Obama merece crédito por mejorar esta economía después de la caída de Wall Street, la realidad es que una gran cantidad de asuntos pendientes que queda por hacer.
Nuestro objetivo debe ser la creación de un sistema financiero y una economía que funcione para todos los estadounidenses, no sólo un puñado de multimillonarios
Ending "Too Big To Fail"
Eso significa que tenemos que terminar, de una vez por todas, el esquema que no es más que una póliza de seguro libre para Wall Street, la política de "demasiado grande para quebrar."Necesitamos un sistema bancario que es parte de la economía productiva - la concesión de préstamos a precios asequibles a las pequeñas y medianas empresas para que creamos puestos de trabajo decentes pagar. Wall Street no puede seguir siendo una isla en sí mismo, miles de millones de juegos de azar en los instrumentos financieros de riesgo, haciendo enormes beneficios y la seguridad de que, si sus esquemas fallan, los contribuyentes estarán allí para rescatarlos.
En 2008, los contribuyentes de este país rescatados Wall Street, porque nos dijeron que eran "demasiado grandes para quebrar". Sin embargo, hoy, 3 de los 4 mayores instituciones financieras (JP Morgan Chase, Bank of America y Wells Fargo) son casi el 80 por ciento más grande que antes de que los rescatados . Increíblemente, los seis bancos más grandes de este país emitan más de dos tercios de todas las tarjetas de crédito y más del 35 por ciento de todas las hipotecas. Ellos controlan más del 95 por ciento de todos los derivados financieros y poseen más del 40 por ciento de todos los depósitos bancarios. Sus activos son equivalentes a casi el 60 por ciento de nuestro PIB. Ya es suficiente.
Si un banco es demasiado grande para quebrar, es demasiado grande para existir. Cuando se trata de la reforma de Wall Street, que debe ser nuestra línea de fondo. Esto es cierto no sólo desde una perspectiva de riesgo y el temor de otro rescate. También es cierto de la realidad de que un puñado de grandes instituciones financieras simplemente tienen demasiado poder económico y político de este país.
Si Teddy Roosevelt, el republicano de confianza-buster, estuviera vivo hoy, él diría "romper 'em up." Y tendría razón.
Y así es como voy a lograrlo.
Dentro de los primeros 100 días de mi gobierno, que requerirá el secretario del Departamento del Tesoro para establecer un "demasiado grandes para quebrar" la lista de los bancos comerciales, sombra bancos y compañías de seguros cuyo fallo podría suponer un riesgo catastrófico para la economía de Estados Unidos sin un rescate de los contribuyentes.
Dentro de un año, mi gobierno va a romper estas instituciones de manera que ya no constituyen una grave amenaza para la economía como autorizado bajo la Sección 121 de la Ley Dodd-Frank.
Y, voy a luchar para restablecer un 21o siglo Ley Glass-Steagall a servicios de banca comercial, banca de inversión y de seguros claramente separados. Seamos claros: esta legislación, introducida por mi colega senador Elizabeth Warren, apunta al corazón del sistema bancario en la sombra.
En mi opinión, el senador Warren, tiene razón. Dodd-Frank debería haber roto Citigroup y otros bancos "también- grandes para quebrar" en pedazos. Y eso es exactamente lo que tenemos que hacer. Y eso es lo que me comprometo a hacer como presidente.
Ahora, mi oponente, la secretaria Clinton dice que la Glass-Steagall no habría evitado la crisis financiera porque los bancos sombra como AIG y Lehman Brothers, los bancos comerciales no grandes, eran los verdaderos culpables.
La secretaria Clinton que está mal.
Shadow bancos hizo jugar imprudentemente, pero ¿de dónde vino ese dinero? Venía de los depósitos bancarios federalmente asegurados de los bancos comerciales grandes - algo que habría sido prohibidos en virtud de la Ley Glass-Steagall.
No olvidemos: el presidente Franklin Roosevelt firmó este proyecto en ley, precisamente para evitar que los especuladores de Wall Street de causar otra Gran Depresión . Y, funcionó durante más de cinco décadas hasta Wall Street regó abajo durante la presidencia de Reagan y lo mató durante la presidencia de Clinton.
Y, vamos, no nos engañemos. La Reserva Federal y el Departamento del Tesoro no acaban de rescatar a los bancos de sombra. Como resultado de una enmienda que me ofrecí a auditar las actividades de préstamo de emergencia de la Reserva Federal durante la crisis financiera, nos enteramos de que la Reserva Federal proporcionó más de $ 16 billones de dólares en corto plazo, préstamos a bajo interés para cada institución financiera importante en el país, incluyendo Citigroup, JP Morgan Chase, Bank of America, Wells Fargo, por no hablar de las grandes corporaciones, los bancos extranjeros y los bancos centrales extranjeros en todo el mundo.
La secretaria Clinton dice sólo tenemos que imponer unas cuantas tasas y regulaciones en el sector financiero . No estoy de acuerdo.
Como ex Secretario del Trabajo ha dicho Robert Reich y cito: "bancos gigante de Wall Street siguen amenazando el bienestar de millones de estadounidenses, pero ¿qué hacer? Bernie Sanders dice romperlas y resucitar la Ley Glass-Steagall que una vez separada la inversión de la banca comercial. Hillary Clinton dice que acusen un poco más y supervisar con más cuidado ... propuestas de Hillary Clinton sólo se invitará a más de dilución y finagle. La única manera de contener los excesos de la calle es con reformas tan grandes, audaces y público que no puede ser aguado -. Revienta a los mayores bancos y resucitar a la Glass-Steagall
"Secretario Reich es correcto. La verdadera reforma de Wall Street significa romper los grandes bancos y el restablecimiento de los cortafuegos que separa la toma de riesgos de la banca tradicional.
Mi oponente dice que, como senador, le dijo a los banqueros para "cortarlo" y poner fin a su comportamiento destructivo. Pero, en mi opinión, políticos del establishment son los que tienen que "cortar a cabo." La realidad es que el Congreso no regula Wall Street. Wall Street, sus cabilderos y sus miles de millones de dólares a regular el Congreso. Tenemos que cambiar esa realidad, y como presidente lo haré.
-To-Cárcel Demasiado-Big Ending
No es ningún secreto que millones de estadounidenses se han desilusionado con nuestro proceso político. Ellos no votan. Ellos no creen mucho de lo que sale de Washington. No creo que nadie está allí en representación de sus intereses. En mi opinión, una de las razones de que en el fondo la desilusión es la comprensión generalizada de que nuestro sistema de justicia penal se rompe y manifiestamente injusto - y que no tenemos justicia equitativa bajo la ley. El estadounidense promedio ve niños arrestados y en ocasiones incluso encarcelados por posesión de marihuana u otros delitos menores. Pero cuando se trata de ejecutivos de Wall Street, algunas de las personas más ricas y poderosas de este país, cuyo comportamiento ilegal causado dolor y sufrimiento para millones - de alguna manera no pasa nada con ellos. Sin antecedentes policiales. No ir a la cárcel. No hay justicia.Vivimos en un país hoy que tiene una economía que está amañado, un sistema de financiación de las campañas, que es corrupto y un sistema de justicia penal que, con demasiada frecuencia, no dispensar justicia.
Ni un importante ejecutivo de Wall Street ha sido procesado por haber causado el casi colapso de toda nuestra economía.
Eso va a cambiar bajo mi administración. "Equal Justice Bajo la Ley" no va a ser sólo palabras grabadas en la entrada de la Corte Suprema. Será la norma que se aplica a Wall Street y todos los estadounidenses.
El modelo de negocios de Wall Street es el fraude
Parece que casi todas las semanas leemos acerca de una institución financiera gigante tras otro ser multados o alcanzar acuerdos para sus actividades temerarias, injustas y engañosas.Algunas personas creen que esto es una aberración: que tenemos un sistema financiero honesto en el que, cada de vez en cuando, las principales instituciones financieras hacen algo mal y quedar atrapado. En mi opinión, la evidencia sugiere que habría un análisis incorrecto.
La realidad es que el fraude es el modelo de negocios de Wall Street. No es la excepción a la regla. Es la regla. Y en un clima regulatorio débil la probabilidad es que Wall Street se sale con mucha comportamiento más ilegal que conocemos.
¿Cuántas veces hemos escuchado el mito de que lo que Wall Street hizo pudo haber sido un error, pero no fue ilegal?
Let ayúdame añicos ese mito hoy.
Desde el año 2009, las principales instituciones financieras de este país han sido multados $ 204 mil millones. $ 204 mil millones. Y que tiene lugar en un clima regulatorio débil.
Éstos son sólo algunos ejemplos de cuando los principales bancos fueron sorprendidos haciendo actividad ilegal.
En agosto de 2014, Bank of America resolvió un caso con el Departamento de Justicia para más de $ 16 millones de dólares en los cargos que la banco engañó a los inversores sobre el riesgo de los valores respaldados por hipotecas que vendió en el período previo a la crisis.
En noviembre de 2013, JP Morgan resolvió un caso de $ 13 mil millones con el Departamento de Justicia y la Agencia Federal de Financiamiento de la Vivienda sobre los cargos del banco a sabiendas venden títulos valores compuestos por hipotecas de baja calidad a Fannie Mae y Freddie Mac.
En junio de 2014, BNP Paribas fue condenado a cinco años de libertad condicional y se le ordenó pagar $ 8.9 mil millones en multas por un Juez Federal de Distrito en Manhattan después de este banco declaré culpable de los cargos de violar las sanciones por la realización de negocios en Sudán, Irán y Cuba.
Permítanme leerles unos titulares y usted me dice cómo tiene sentido que un ejecutivo no fue procesado por fraude.
- CNN Headline 20 de mayo de 2015: "5 grandes bancos a pagar $ 5.4 mil millones para las monedas aparejo." Los bancos incluyen JPMorgan Chase y Citigroup.
- Titular de la International Business Times (24 de febrero de 2015): ". Grandes Bancos en investigación para la fijación Supuestamente Metales Preciosos precios" Los bancos se están investigando incluido Goldman Sachs y JPMorgan Chase.
- Titular de la Red de Noticias de Bienes (26 de noviembre de 2013): "Los documentos en la liquidación JPMorgan revelan cómo cada banco grande en los EE.UU. ha cometido fraude hipotecario."
- Encabezado por el Washington Post (14 de marzo de 2014): "En la demanda, la FDIC acusa a 16 grandes bancos de fraude, conspiración," que incluyeron el Bank of America, Citigroup y JP Morgan Chase.
- Encabezado del Guardián (2 de abril de 2011): "¿Cómo un banco grande US lavar miles de millones de bandas de narcotraficantes asesinos de México." Este artículo habla de cómo Wachovia (que fue adquirida por Wells Fargo) ayudó a los cárteles mexicanos de la droga en la transferencia de miles de millones de dólares en dinero de la droga ilegal. Esto es lo que el fiscal federal (Jeffrey Sloman) dijo al respecto: "flagrante desprecio de Wachovia por nuestras leyes bancarias dio cocaína internacional cárteles una carta blanca para financiar sus operaciones."
Y, si eso no es suficiente, aquí hay otra.
- Título: The Wall Street Journal, 9 de febrero de 2011: "JP Morgan se disculpa por ejecuciones hipotecarias militares." Aquí hay un caso en el JP Morgan Chase, el mayor banco de América, arruinó las finanzas de 4.000 familias de militares en violación de los Miembros del Servicio Civil Ley de Alivio, sin embargo, nadie fue a la cárcel.
De acuerdo con este estudio, el 51 por ciento de los ejecutivos de Wall Street que ganan más de $ 500.000 al año encontró que es probable que sus competidores han participado en la actividad inmoral o ilegal con el fin de obtener una ventaja en el mercado.
Más de un tercio de los ejecutivos financieros o bien han sido testigos o tienen conocimiento de primera mano de la maldad en el lugar de trabajo.
Casi uno de cada cinco profesionales de servicios financieros creen que deben participar en ilegal o actividad poco ética para tener éxito.
El veinticinco por ciento de los ejecutivos financieros han firmado o ha pedido que firme un acuerdo de confidencialidad que prohíba la presentación de informes de actividades ilegales o poco éticas a las autoridades.
Esto es lo que un banquero de Barclays dijo en 2010, cuando fue sorprendido tratando a precio-arreglar el mercado de divisas $ 5000 mil millones por día ". Si usted no está engañando, no se está tratando"
Esto es lo que un analista de Standard & Poors, dijo en 2008: "Esperemos que todos somos ricos y jubilados por el momento este castillo de naipes se tambalea.
"Este país ya no puede permitirse el lujo de tolerar la cultura del fraude y la corrupción en Wall Street.
Bajo mi administración, los directores ejecutivos de Wall Street ya no recibirán un encuentro fuera de la cárcel tarjeta gratuita. Los grandes bancos no serán demasiado grandes para quebrar. Grandes banqueros no van a ser demasiado grande a la cárcel.
Como presidente, voy a nominar y nombrar a las personas con un historial de enfrentarse al poder, en lugar de aquellos que han hecho millones defensa de los CEOs de Wall Street. Goldman Sachs y otros bancos de Wall Street no estarán representados en mi administración.
Impuesto sobre la especulación de Wall Street
Y, si nos tomamos en serio la reforma de nuestro sistema financiero, tenemos que establecer un impuesto sobre los especuladores de Wall Street. Tenemos que desalentar el juego imprudente de Wall Street y fomentar las inversiones productivas en la economía creadora de empleo.Vamos a utilizar los ingresos de este impuesto para que los colegios y universidades públicas de matrícula gratuita. Durante la crisis financiera, la clase media de este país rescató a Wall Street. Ahora, es el turno de Wall Street para ayudar a la clase media.
La reforma de agencias de calificación crediticia
No podemos tener un sistema financiero sano y salvo, si no podemos confiar en las agencias de crédito para evaluar con precisión los productos financieros. Y la única manera que podemos restaurar esa confianza es hacer que las agencias de calificación de crédito seguro no pueden obtener un beneficio de Wall Street.Los inversores no habrían comprado los derivados respaldados por hipotecas riesgosas que condujeron a la Gran Recesión si las agencias de crédito no dieron estos inútiles financiera productos calificaciones triple A - notas que sabían eran falsos.
Y la razón de que estos esquemas financieros de riesgo se les dio esas calificaciones favorables es simple. Wall Street pagó por ellos.
Bajo mi administración, giraremos agencias sin fines de lucro de calificación crediticia en las instituciones sin fines de lucro, independientes de Wall Street. Ya no va a Wall Street podrá elegir qué crédito agencia calificará sus productos.
Cap Tarjeta de crédito Tasas de interés y cargos de cajeros automáticos
Si vamos a crear un sistema financiero que funcione para todos los estadounidenses, tenemos que dejar de instituciones financieras de estafar al pueblo estadounidense mediante el cobro de tasas de interés por las nubes y los honorarios escandalosos.En mi opinión, es inaceptable que los estadounidenses están pagando una cuota de $ 4 o $ 5 cada vez que vayan al cajero automático.
Es inaceptable que millones de estadounidenses están pagando tasas de interés de tarjetas de crédito de 20 o 30 por ciento.
La Biblia tiene un término para esta práctica. Se llama usura. Y en La Divina Comedia, Dante reservado un lugar especial en el séptimo círculo del infierno para los que cargó la gente tasas de interés usurarias.
Hoy en día, no necesitamos el fuego del infierno y las horquillas, no necesitamos los ríos de sangre hirviendo , pero necesitamos una ley nacional de la usura.
Hoy en día, tenemos que limitar las tasas de interés en tarjetas de crédito y préstamos de consumo en un 15 por ciento.
En 1980, el Congreso aprobó una legislación para requerir las cooperativas de crédito para limitar las tasas de interés de sus préstamos en no más de 15 por ciento. Y, esa ley ha funcionado bien. A diferencia de los grandes bancos, las cooperativas de crédito no recibieron un enorme rescate de los contribuyentes de este país. Ha llegado el momento de ampliar este límite a todos los prestamistas en Estados Unidos.
También debemos limitar cargos de cajeros automáticos en $ 2.00. La gente no debería tener que pagar una cuota de 10 por ciento para el retiro de $ 40 de su propio dinero de un cajero automático.
Los grandes bancos tienen que dejar de actuar como usureros y empezar a actuar como prestamistas responsables.
Permitir oficinas de correos para ofrecer servicios bancarios
También tenemos que dar a los americanos opciones bancarias asequibles.La realidad es que, increíblemente, millones de estadounidenses de bajos ingresos viven en comunidades donde no hay servicios bancarios normales. Hoy en día, si usted vive en una comunidad de bajos ingresos y que necesita para cambiar un cheque o conseguir un préstamo para pagar una reparación de automóviles o una emergencia médica, ¿a dónde vas?
Usted va a un prestamista de día de pago que podrían cobrar una tasa de interés de más de 300 por ciento y atraparte en un círculo vicioso de la deuda. Eso es inaceptable.
Tenemos que dejar de prestamistas de estafar a millones de estadounidenses. Existen oficinas de correos en casi todas las comunidades de nuestro país. Una forma importante proporcionar oportunidades bancarias decentes para las comunidades de bajos ingresos es permitir que el servicio postal de Estados Unidos para participar en los servicios bancarios básicos, y eso es lo que voy a luchar.
La reforma de la Reserva Federal
Además, tenemos que reformar estructuralmente la Reserva Federal para que sea una institución más democrática que responda a las necesidades de los estadounidenses de a pie, no sólo los multimillonarios de Wall Street.Cuando Wall Street estaba al borde del colapso, la Reserva Federal actuaron con una feroz sentido de urgencia para salvar el sistema financiero. Necesitamos a la Fed a actuar con la misma libertad para luchar contra el desempleo y los bajos salarios.
En mi opinión, es inaceptable que la Reserva Federal ha sido secuestrado por los mismos banqueros que se encarga de la regulación. Creo que el pueblo estadounidense se sorprenderían al saber que Jamie Dimon, presidente ejecutivo de JP Morgan Chase, que se sirve en la junta de la Fed de Nueva York, al mismo tiempo que su banco recibió un rescate de $ 391 mil millones de la Reserva Federal. Eso es un claro conflicto de intereses que iba a prohibir como presidente. Cuando soy elegido, los zorros ya no estarán vigilando el gallinero en la Fed. Bajo mi administración, ejecutivos de la industria bancaria ya no podrán servir en las juntas de la Fed y handpick sus miembros y el personal.
Además, la Fed debería dejar de pagar las instituciones financieras de interés para mantener el dinero de la economía y estacionados en la Fed. Increíblemente, el exceso de reservas de las entidades financieras que están sentados en la Reserva Federal ha crecido desde menos de $ 2 mil millones en 2008 a $ 2400 mil millones en la actualidad. Eso es absurdo.
En lugar de pagar los bancos intereses sobre estas reservas, la Fed debería cobrarles una cuota que podría ser utilizado para proporcionar préstamos asequibles a las pequeñas empresas para crear cientos de miles de puestos de trabajo.
Conclusión
Por último, permítanme decirles lo que ningún otro candidato le dirá. Ningún presidente, no Bernie Sanders o cualquier otra persona, puede abordar con eficacia las crisis económicas que enfrentan las familias trabajadoras de este país solo. La verdad es que Wall Street, la América corporativa, los medios corporativos y donantes de campaña ricos son demasiado poderosos.Lo que esta campaña se acerca es la construcción de un movimiento político que revitaliza la democracia estadounidense, que reúne a millones de personas en conjunto - en blanco y negro, latino, asiático-americano, nativo americano - jóvenes y viejos, hombres y mujeres, homosexuales y heterosexuales, nativos e inmigrantes, personas de todas las religiones.
Sí. Wall Street tiene un enorme poder económico y político. Sí. Wall Street hace enormes contribuciones de campaña, tienen miles de grupos de presión y proporcionan tasas de habla muy generosas a los que van delante de ellos.
Sí. Tienen una fuente inagotable de dinero. Pero tenemos algo que ellos no tienen. Y es que cuando millones de familias trabajadoras están juntos, exigiendo cambios fundamentales en nuestro sistema financiero, tenemos el poder para llevar a cabo ese cambio.
Sí, podemos hacer que nuestra economía funcione para todos los estadounidenses, no sólo un puñado de especuladores ricos. Y, ahora más que nunca, eso es exactamente lo que debemos hacer.
Así que mi mensaje para ustedes hoy es sencillo: Si es elegido presidente, voy a controlar a Wall Street para que no puedan bloquearse nuestra economía de nuevo.
¿Me gustaría? No. ¿Van a comenzar a jugar con las reglas si soy presidente? Será mejor que lo creas.
Gracias y espero con interés trabajar con la fuerza más poderosa en nuestra gran nación, no los barones de Wall Street, pero la gente de nuestro gobierno fue creado para servir. He aquí algunos comentarios sobre el discurso de Bernie disponibles en el diario + Kos sitio web, haga clic en los enlaces .... Bucknackt, ayer Bernie Sanders dio un importante discurso en la ciudad de Nueva York en Wall Street reforma que tiene gran parte de la comunidad Daily Kos energizado y comprometido.
- CNN durante NO Discurso de Bernie UN COMENTARIO! Él llama a los ejecutivos de encarcelar a quienes cometen fraude, no hay problema
- Bernie en Nueva York: "¿Van a comenzar a jugar con las reglas Será mejor que lo cree?".
- Sanders afila su ataque a la avaricia de Wall Street
- Sanders dice 'el fraude es el modelo de negocios de Wall Street' y se compromete a forzar un cambio
- Bernie en Wall Street: texto completo preparado
- Liveblog: Bernie Sanders NYC discurso sobre la Reforma de Wall Street
BERNIE HAS A MESSAGE FOR WALL STREET - "YOU CAN'T HAVE IT ALL!" #BreakEmUp 5JAN16
Wall Street Reform and Financial Policy | Bernie Sanders
Streamed live on Jan 5, 2016Bernie Sanders discusses his vision for economic reform in America, including reigning in Wall Street and financial policies he would implement as president. "If Wall Street does not end its greed, we will end it for them!" #BreakEmUp
NY State Senator James Sanders introduces US Senator Bernie Sanders with an illuminating speech on the impact of the financial meltdown on New Yorkers from all walks of life.
Prepared Remarks
Wall Street and the Economy
The American people are catching on. They understand that something is profoundly wrong when, in our country today, the top one-tenth of 1 percent own almost as much wealth as the bottom 90 percent and when the 20 richest people own more wealth than the bottom 150 million Americans – half of our population. They know that the system is rigged when the average person is working longer hours for lower wages, while 58 percent of all new income goes to the top 1 percent.
They also know that a handful of people on Wall Street have extraordinary power over the economic and political life of our country. As most people know, in the 1990s and later, the financial interests spent billions of dollars in lobbying and campaign contributions to force through Congress the deregulation of Wall Street, the repeal of the Glass-Steagall Act and the weakening of consumer protection laws in states.
They spent this money in order to get the government off their backs and to show the American people what they could do with that new-won freedom. Well, they sure showed the American people. In 2008, the greed, recklessness and illegal behavior on Wall Street nearly destroyed the U.S. and global economy.
Millions of Americans lost their jobs, their homes and their life savings.
While Wall Street received the largest taxpayer bailout in the history of the world with no strings attached, the American middle class continues to disappear, poverty is increasing and the gap between the very rich and everyone else is growing wider and wider. And Wall Street executives still receive huge compensation packages as if the financial crisis they created never happened.
Greed, fraud, dishonesty and arrogance, these are the words that best describe the reality of Wall Street today.
So, to those on Wall Street who may be listening today, let me be very clear. Greed is not good. In fact, the greed of Wall Street and corporate America is destroying the fabric of our nation. And, here is a New Year’s Resolution that I will keep if elected president. If you do not end your greed, we will end it for you.
We will no longer tolerate an economy and a political system that has been rigged by Wall Street to benefit the wealthiest Americans in this country at the expense of everyone else.
While President Obama deserves credit for improving this economy after the Wall Street crash, the reality is that a lot of unfinished business remains to be done.
Our goal must be to create a financial system and an economy that works for all Americans, not just a handful of billionaires
Ending “Too Big To Fail”
That means we have got to end, once and for all, the scheme that is nothing more than a free insurance policy for Wall Street, the policy of “too big to fail.”We need a banking system that is part of the productive economy – making loans at affordable rates to small- and medium-sized businesses so that we create decent-paying jobs. Wall Street cannot continue to be an island unto itself, gambling trillions in risky financial instruments, making huge profits and assured that, if their schemes fail, the taxpayers will be there to bail them out.
In 2008, the taxpayers of this country bailed out Wall Street because we were told they were “too big to fail.” Yet, today, 3 out of the 4 largest financial institutions (JP Morgan Chase, Bank of America and Wells Fargo) are nearly 80 percent bigger than before we bailed them out. Incredibly, the six largest banks in this country issue more than two-thirds of all credit cards and more than 35 percent of all mortgages. They control more than 95 percent of all financial derivatives and hold more than 40 percent of all bank deposits. Their assets are equivalent to nearly 60 percent of our GDP. Enough is enough.
If a bank is too big to fail, it is too big to exist. When it comes to Wall Street reform that must be our bottom line. This is true not just from a risk perspective and the fear of another bailout. It is also true from the reality that a handful of huge financial institutions simply have too much economic and political power over this country.
If Teddy Roosevelt, the Republican trust-buster, were alive today, he would say “break ‘em up.” And he would be right.
And, here’s how I will accomplish that.
Within the first 100 days of my administration, I will require the secretary of the Treasury Department to establish a “Too-Big-to Fail” list of commercial banks, shadow banks and insurance companies whose failure would pose a catastrophic risk to the United States economy without a taxpayer bailout.
Within one year, my administration will break these institutions up so that they no longer pose a grave threat to the economy as authorized under Section 121 of the Dodd-Frank Act.
And, I will fight to reinstate a 21st Century Glass-Steagall Act to clearly separate commercial banking, investment banking and insurance services. Let’s be clear: this legislation, introduced by my colleague Senator Elizabeth Warren, aims at the heart of the shadow banking system.
In my view, Senator Warren, is right. Dodd-Frank should have broken up Citigroup and other “too- big-to-fail” banks into pieces. And that’s exactly what we need to do. And that’s what I commit to do as president.
Now, my opponent, Secretary Clinton says that Glass-Steagall would not have prevented the financial crisis because shadow banks like AIG and Lehman Brothers, not big commercial banks, were the real culprits.
Secretary Clinton is wrong.
Shadow banks did gamble recklessly, but where did that money come from? It came from the federally-insured bank deposits of big commercial banks – something that would have been banned under the Glass-Steagall Act.
Let’s not forget: President Franklin Roosevelt signed this bill into law precisely to prevent Wall Street speculators from causing another Great Depression. And, it worked for more than five decades until Wall Street watered it down under President Reagan and killed it under President Clinton.
And, let’s not kid ourselves. The Federal Reserve and the Treasury Department didn’t just bail out shadow banks. As a result of an amendment that I offered to audit the emergency lending activities of the Federal Reserve during the financial crisis, we learned that the Fed provided more than $16 trillion in short-term, low-interest loans to every major financial institution in the country including Citigroup, JP Morgan Chase, Bank of America, Wells Fargo, not to mention large corporations, foreign banks, and foreign central banks throughout the world.
Secretary Clinton says we just need to impose a few more fees and regulations on the financial industry. I disagree.
As former Secretary of Labor Robert Reich has said and I quote: “Giant Wall Street banks continue to threaten the wellbeing of millions of Americans, but what to do? Bernie Sanders says break them up and resurrect the Glass-Steagall Act that once separated investment from commercial banking. Hillary Clinton says charge them a bit more and oversee them more carefully … Hillary Clinton’s proposals would only invite more dilution and finagle. The only way to contain the Street’s excesses is with reforms so big, bold, and public they can’t be watered down – busting up the biggest banks and resurrecting Glass-Steagall.”
Secretary Reich is right. Real Wall Street reform means breaking up the big banks and re-establishing firewalls that separates risk taking from traditional banking.
My opponent says that, as a senator, she told bankers to “cut it out” and end their destructive behavior. But, in my view, establishment politicians are the ones who need to “cut it out.” The reality is that Congress doesn’t regulate Wall Street. Wall Street, its lobbyists and their billions of dollars regulate Congress. We must change that reality, and as president I will.
Ending Too-Big-To-Jail
It is no secret that millions of Americans have become disillusioned with our political process. They don’t vote. They don’t believe much of what comes out of Washington. They don’t think anyone is there representing their interests. In my view, one of the reasons for that deep disillusionment is the widespread understanding that our criminal justice system is broken and grossly unfair – and that we do not have equal justice under the law. The average American sees kids being arrested and sometimes even jailed for possessing marijuana or other minor crimes. But when it comes to Wall Street executives, some of the wealthiest and most powerful people in this country, whose illegal behavior caused pain and suffering for millions – somehow nothing happens to them. No police record. No jail time. No justice.We live in a country today that has an economy that is rigged, a campaign finance system which is corrupt and a criminal justice system which, too often, does not dispense justice.
Not one major Wall Street executive has been prosecuted for causing the near collapse of our entire economy.
That will change under my administration. “Equal Justice Under Law” will not just be words engraved on the entrance of the Supreme Court. It will be the standard that applies to Wall Street and all Americans.
The business model on Wall Street is fraud
It seems like almost every few weeks we read about one giant financial institution after another being fined or reaching settlements for their reckless, unfair and deceptive activities.Some people believe that this is an aberration: that we have an honest financial system in which, every now and then, major financial institutions do something wrong and get caught. In my view, the evidence suggests that would be an incorrect analysis.
The reality is that fraud is the business model on Wall Street. It is not the exception to the rule. It is the rule. And in a weak regulatory climate the likelihood is that Wall Street gets away with a lot more illegal behavior than we know of.
How many times have we heard the myth that what Wall Street did may have been wrong but it wasn’t illegal?
Let me help shatter that myth today.
Since 2009, major financial institutions in this country have been fined $204 billion. $204 billion. And that takes place in a weak regulatory climate.
Here are just a few examples of when major banks were caught doing illegal activity.
In August 2014, Bank of America settled a case with the Department of Justice for more than $16 billion on charges that the bank misled investors about the riskiness of mortgage-backed securities it sold in the run-up to the crisis.
In November of 2013, JP Morgan settled a case for $13 billion with the Department of Justice and the Federal Housing Finance Agency over charges the bank knowingly sold securities made up of low-quality mortgages to Fannie Mae and Freddie Mac.
In June of 2014, BNP Paribas was sentenced to five years’ probation and was ordered to pay $8.9 billion in penalties by a U.S. District Judge in Manhattan after this bank pled guilty to charges of violating sanctions by conducting business in Sudan, Iran and Cuba.
Let me read you a few headlines and you tell me how it makes sense that not one executive was prosecuted for fraud.
- CNN Headline, May 20, 2015: “5 big banks pay $5.4 billion for rigging currencies.” Those banks include JPMorgan Chase and Citigroup.
- Headline from the International Business Times (February 24, 2015): “Big Banks Under Investigation For Allegedly Fixing Precious Metals Prices.” The Banks under investigation included Goldman Sachs and JPMorgan Chase.
- Headline from The Real News Network (November 26, 2013): “Documents in JPMorgan settlement reveal how every large bank in the U.S. has committed mortgage fraud.”
- Headline from The Washington Post (March 14, 2014): “In lawsuit, FDIC accuses 16 big banks of fraud, conspiracy,” which included Bank of America, Citigroup and JP Morgan Chase.
- Headline from the Guardian (April 2, 2011): “How a big U.S. bank laundered billions from Mexico’s murderous drug gangs.” This article talks about how Wachovia (which was acquired by Wells Fargo) aided Mexican drug cartels in transferring billions of dollars in illegal drug money. Here is what the federal prosecutor (Jeffrey Sloman) said about this: “Wachovia’s blatant disregard for our banking laws gave international cocaine cartels a virtual carte blanche to finance their operations.”
And, if that’s not bad enough, here’s another one.
- Headline: The Wall Street Journal, February 9, 2011: “J.P. Morgan Apologizes for Military Foreclosures.” Here is a case where JP Morgan Chase, the largest bank in America, wrecked the finances of 4,000 military families in violation of the Civil Service Members Relief Act, yet no one went to jail.
According to this study, 51 percent of Wall Street executives making more than $500,000 a year found it likely that their competitors have engaged in unethical or illegal activity in order to gain an edge in the market.
More than one-third of financial executives have either witnessed or have firsthand knowledge of wrongdoing in the workplace.
Nearly one in five financial service professionals believe they must engage in illegal or unethical activity to be successful.
Twenty-five percent of financial executives have signed or been asked to sign a confidentiality agreement that would prohibit reporting illegal or unethical activities to the authorities.
Here’s what one banker from Barclays said in 2010, when he was caught trying to price-fix the $5 trillion-per-day currency market: “If you ain’t cheating, you ain’t trying.”
Here’s what an analyst from Standard & Poors said in 2008, “Let’s hope we are all wealthy and retired by the time this house of cards falters.”
This country can no longer afford to tolerate the culture of fraud and corruption on Wall Street.
Under my administration, Wall Street CEOs will no longer receive a get-out-of jail free card. Big banks will not be too big to fail. Big bankers will not be too big to jail.
As president, I will nominate and appoint people with a track record of standing up to power, rather than those who have made millions defending Wall Street CEOs. Goldman Sachs and other Wall Street banks will not be represented in my administration.
Tax on Wall Street Speculation
And, if we are serious about reforming our financial system, we have got to establish a tax on Wall Street speculators. We have got to discourage reckless gambling on Wall Street and encourage productive investments in the job-creating economy.We will use the revenue from this tax to make public colleges and universities tuition free. During the financial crisis, the middle class of this country bailed out Wall Street. Now, it’s Wall Street’s turn to help the middle class.
Reforming Credit Rating Agencies
We cannot have a safe and sound financial system if we cannot trust the credit agencies to accurately rate financial products. And, the only way we can restore that trust is to make sure credit rating agencies cannot make a profit from Wall Street.Investors would not have bought the risky mortgage backed derivatives that led to the Great Recession if credit agencies did not give these worthless financial products triple-A ratings – ratings that they knew were bogus.
And, the reason these risky financial schemes were given such favorable ratings is simple. Wall Street paid for them.
Under my administration, we will turn for-profit credit rating agencies into non-profit institutions, independent from Wall Street. No longer will Wall Street be able to pick and choose which credit agency will rate their products.
Cap Credit Card Interest Rates and ATM Fees
If we are going to create a financial system that works for all Americans, we have got to stop financial institutions from ripping off the American people by charging sky-high interest rates and outrageous fees.In my view, it is unacceptable that Americans are paying a $4 or $5 fee each time they go to the ATM.
It is unacceptable that millions of Americans are paying credit card interest rates of 20 or 30 percent.
The Bible has a term for this practice. It’s called usury. And in The Divine Comedy, Dante reserved a special place in the Seventh Circle of Hell for those who charged people usurious interest rates.
Today, we don’t need the hellfire and the pitch forks, we don’t need the rivers of boiling blood, but we do need a national usury law.
Today, we need to cap interest rates on credit cards and consumer loans at 15 percent.
In 1980, Congress passed legislation to require credit unions to cap interest rates on their loans at no more than 15 percent. And, that law has worked well. Unlike big banks, credit unions did not receive a huge bailout from the taxpayers of this country. It is time to extend this cap to every lender in America.
We must also cap ATM fees at $2.00. People should not have to pay a 10 percent fee for withdrawing $40 of their own money out of an ATM.
Big banks need to stop acting like loan sharks and start acting like responsible lenders.
Allow Post Offices to Offer Banking Services
We also need to give Americans affordable banking options.The reality is that, unbelievably, millions of low-income Americans live in communities where there are no normal banking services. Today, if you live in a low-income community and you need to cash a check or get a loan to pay for a car repair or a medical emergency, where do you go?
You go to a payday lender who could charge an interest rate of over 300 percent and trap you into a vicious cycle of debt. That is unacceptable.
We need to stop payday lenders from ripping off millions of Americans. Post offices exist in almost every community in our country. One important way to provide decent banking opportunities for low income communities is to allow the U.S. postal Service to engage in basic banking services, and that’s what I will fight for.
Reforming the Federal Reserve
Further, we need to structurally reform the Federal Reserve to make it a more democratic institution responsive to the needs of ordinary Americans, not just the billionaires on Wall Street.When Wall Street was on the verge of collapse, the Federal Reserve acted with a fierce sense of urgency to save the financial system. We need the Fed to act with the same boldness to combat unemployment and low wages.
In my view, it is unacceptable that the Federal Reserve has been hijacked by the very bankers it is in charge of regulating. I think the American people would be shocked to learn that Jamie Dimon, the CEO of JP Morgan Chase, served on the board of the New York Fed at the same time that his bank received a $391 billion bailout from the Federal Reserve. That is a clear conflict of interest that I would ban as president. When I am elected, the foxes will no longer be guarding the henhouse at the Fed. Under my administration, banking industry executives will no longer be allowed to serve on the Fed’s boards and handpick its members and staff.
Further, the Fed should stop paying financial institutions interest to keep money out of the economy and parked at the Fed. Incredibly, the excess reserves of financial institutions that are sitting in the Federal Reserve has grown from less than $2 billion in 2008 to $2.4 trillion today. That is absurd.
Instead of paying banks interest on these reserves, the Fed should charge them a fee that could be used to provide affordable loans to small businesses to create hundreds of thousands of jobs.
Conclusion
Finally, let me tell you what no other candidate will tell you. No president, not Bernie Sanders or anyone else, can effectively address the economic crises facing the working families of this country alone. The truth is that Wall Street, corporate America, the corporate media and wealthy campaign donors are just too powerful.What this campaign is about is building a political movement which revitalizes American democracy, which brings millions of people together – black and white, Latino, Asian-American, Native American – young and old, men and women, gay and straight, native born and immigrant, people of all religions.
Yes. Wall Street has enormous economic and political power. Yes. Wall Street makes huge campaign contributions, they have thousands of lobbyists and they provide very generous speaking fees to those who go before them.
Yes. They have an endless supply of money. But we have something they don’t have. And that is that when millions of working families stand together, demanding fundamental changes in our financial system, we have the power to bring about that change.
Yes, we can make our economy work for all Americans, not just a handful of wealthy speculators. And, now more than ever, that is exactly what we must do.
And so my message to you today is straightforward: If elected president, I will rein in Wall Street so they can’t crash our economy again.
Will they like me? No. Will they begin to play by the rules if I’m president? You better believe it.
Thank you and I look forward to working with the most powerful force in our great nation, not the Barons of Wall Street but the people our government was created to serve.
HERE's some commentary on Bernie's speech available on the +Daily Kos website, click the links....
Bucknackt, yesterday Bernie Sanders gave an important speech in New York City on Wall Street reform—which has much of the Daily Kos community energized and engaged.
- CNN during Bernie's Speech NOT ONE COMMENT! He calls for jailing execs who commit fraud, no biggie
- Bernie in NYC: "Will they begin to play by the rules? You better believe it."
- Sanders sharpens his attack on Wall Street Greed
- Sanders says 'fraud is the business model of Wall Street' and vows to force a change
- Bernie on Wall Street: full prepared text
- Liveblog: Bernie Sanders' NYC Speech On Wall Street Reform
10 February 2012
Yesterday's settlement with Wall Street, A BAD DEAL from CREDO & Settlement launches foreclosure reckoning from WASHINGTON POST 10FEB12
THE only good part of this deal is that wall street executives, directors of the financial-banking industry cabal, could still face criminal charges for their actions that caused the recession. Thanks to several strong, honest, progressive state AGs there is still a chance for justice. This from Credo, followed by an article on the deal from the Washington Post.....
© 2012 CREDO. All rights reserved.
The deal represents the largest industry settlement since an agreement with tobacco companies in 1998 and will force five of the nation’s largest banks to overhaul their mortgage-servicing practices and reduce loan balances for many borrowers who owe more than their houses are worth.
FAQ: The foreclosure settlement
Officials acknowledged that the final sum will reach only a fraction of homeowners across the country whose homes are collectively worth $750 billion less than what is owed on their mortgages. But they argued that it was a meaningful step in healing the housing market.
The priority of the settlement was not to punish banks, officials said. Another wave of punishment is on its way, they vowed.
“This is neither the beginning nor the end of our work to hold banks and other institutions accountable for the destruction they’ve caused families, communities and country,” said Illinois Attorney General Lisa Madigan. “Today’s settlement should serve as a warning.”
The deal was brought on by revelations that banks were using forged and shoddy paperwork to foreclose rapidly on struggling homeowners, a practice known as “robo-signing.” Outrage over those practices led to 16 months of settlement talks between state and federal officials and five large banks.
The officials who crafted Thursday’s settlement were careful to leave the door open to a wide range of future litigation, despite efforts by banks to shield themselves from such legal actions. It allows for future actions over fair-housing and fair-lending violations, as well as civil rights claims. It doesn’t bar individuals from joining class-action lawsuits. Nor does it limit the lawsuits that private investors can file in search of damages, some of which have already been launched.
That means the legal hangover from the mortgage bubble is probably far from over for many of the country’s largest banks.
Last September, federal regulators launched a broad legal assault on 17 big banks, claiming they sold nearly $200 billion in fraudulent mortgage investments to housing giants Fannie Mae and Freddie Mac.
Since then, as the housing slump has continued to weigh down the larger economy and movements as disparate as the tea party and Occupy Wall Street have raged against the lack of accountability for the crisis, the pressure for regulators to hold individuals and institutions accountable has only grown.
New investigative unit
President Obama announced in his recent State of the Union address a new unit that would would “expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis.” Days later, Attorney General Eric H. Holder Jr. said the Justice Department had issued civil subpoenas to 11 financial institutions.
Helping to lead the new investigative unit is New York Attorney General Eric Schneiderman, who for months had been critical of the foreclosure settlement because of concerns that it might prevent deeper investigations into mortgage misdeeds and could let banks off too easily.
Schneiderman, who ultimately signed on to Thursday’s settlement, last week filed lawsuits against several banks, claiming that they deceived homeowners and court officials by filing bogus documents through a popular electronic mortgage registry. He and his counterparts from states such as California, Delaware, Massachusetts and Nevada have vowed to press forward with their inquiries — an approach that has been cheered by liberal groups and consumer advocates.
Separately, the Securities and Exchange Commission is examining whether banks fully disclosed the risks to investors who bought packages of loans that financed the housing boom. The agency has continued digging for evidence that firms failed to disclose important information when selling the securities to investors, SEC enforcement director Robert Khuzami said recently. The SEC also has sent banks a flurry of requests for documents and interviews with witnesses.
Goldman Sachs settled an SEC complaint for $550 million in 2010, but its last quarterly report — like those of other banks — describes a variety of pending lawsuits and government investigations that the firm faces. “There remains significant uncertainty surrounding the nature and extent of any exposure for participants in this market,” Goldman said in the report.
The passage of time since the housing crash first hit could affect the government’s ability to impose penalties on financial firms. Generally speaking, under a statute of limitations, the SEC can only obtain penalties for fraud within the past five years. But the SEC and other agencies could argue that the clock didn’t start ticking until it was apparent that fraud occurred.
Thursday’s settlement, which would require a judge’s consent, won approval from 49 states. Oklahoma was the lone holdout.
Under the terms of the deal, banks would have three years to complete principal writedowns, refinancings and other relief. It provides incentives for actions taken within the first 12 months so that the aid can get to homeowners sooner rather than later.
The settlement also includes about $17 billion that would go toward foreclosure-prevention measures, such as lowering the loan balance for borrowers who owe more than their homes are worth. Other provisions would provide for lowering interest rates for homeowners who are current on their loans. In addition, as many as 750,000 borrowers who lost their homes to foreclosure since 2008 would be eligible for payouts of about $2,000 each.
The five banks at the heart of the settlement are Wells Fargo, Bank of America, J.P. Morgan Chase, Ally Financial and Citigroup. Ultimately, the amount of aid to homeowners could reach $40 billion, officials said, adding that they hope other banks will soon sign similar agreements and adopt the new standards set out by the deal.
Consumer impact uncertain
Several Washington area housing counselors said the deal would probably do little to help their clients but that they needed to learn the details of the aid to be sure.
Cherelle Silue, manager of housing services at United Communities Against Poverty in Prince George’s County, said her first impression is that a homeowner could wind up not getting much.
For homeowners who are trying to catch up on their mortgages, “we are talking thousands and thousands of dollars,” Silue said. “I am sure that it is going to be able to help someone, but I am not sure how many.”
In any case, the celebrations among state and government officials over a significant settlement for homeowners on Thursday included numerous reminders that the victory marked a beginning rather than an ending.
“This settlement also protects our ability to further investigate the practices that caused this mess. And this is important,” Obama said at White House, adding: “We’re going to keep at it until we hold those who broke the law fully accountable.”
Staff writers David S. Hilzenrath, Sarah Kliff, Luz Lazo and Jeremy Borden contributed to this report.
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Settlement launches foreclosure reckoning
By Brady Dennis and Sari Horwitz
The government’s $25 billion settlement Thursday with banks over fraudulent foreclosure practices begins a long-promised reckoning with the financial industry over its role in the worst economic crisis since the Great Depression, officials said.The deal represents the largest industry settlement since an agreement with tobacco companies in 1998 and will force five of the nation’s largest banks to overhaul their mortgage-servicing practices and reduce loan balances for many borrowers who owe more than their houses are worth.
FAQ: The foreclosure settlement
Officials acknowledged that the final sum will reach only a fraction of homeowners across the country whose homes are collectively worth $750 billion less than what is owed on their mortgages. But they argued that it was a meaningful step in healing the housing market.
The priority of the settlement was not to punish banks, officials said. Another wave of punishment is on its way, they vowed.
“This is neither the beginning nor the end of our work to hold banks and other institutions accountable for the destruction they’ve caused families, communities and country,” said Illinois Attorney General Lisa Madigan. “Today’s settlement should serve as a warning.”
The deal was brought on by revelations that banks were using forged and shoddy paperwork to foreclose rapidly on struggling homeowners, a practice known as “robo-signing.” Outrage over those practices led to 16 months of settlement talks between state and federal officials and five large banks.
The officials who crafted Thursday’s settlement were careful to leave the door open to a wide range of future litigation, despite efforts by banks to shield themselves from such legal actions. It allows for future actions over fair-housing and fair-lending violations, as well as civil rights claims. It doesn’t bar individuals from joining class-action lawsuits. Nor does it limit the lawsuits that private investors can file in search of damages, some of which have already been launched.
That means the legal hangover from the mortgage bubble is probably far from over for many of the country’s largest banks.
Last September, federal regulators launched a broad legal assault on 17 big banks, claiming they sold nearly $200 billion in fraudulent mortgage investments to housing giants Fannie Mae and Freddie Mac.
Since then, as the housing slump has continued to weigh down the larger economy and movements as disparate as the tea party and Occupy Wall Street have raged against the lack of accountability for the crisis, the pressure for regulators to hold individuals and institutions accountable has only grown.
New investigative unit
President Obama announced in his recent State of the Union address a new unit that would would “expand our investigations into the abusive lending and packaging of risky mortgages that led to the housing crisis.” Days later, Attorney General Eric H. Holder Jr. said the Justice Department had issued civil subpoenas to 11 financial institutions.
Helping to lead the new investigative unit is New York Attorney General Eric Schneiderman, who for months had been critical of the foreclosure settlement because of concerns that it might prevent deeper investigations into mortgage misdeeds and could let banks off too easily.
Schneiderman, who ultimately signed on to Thursday’s settlement, last week filed lawsuits against several banks, claiming that they deceived homeowners and court officials by filing bogus documents through a popular electronic mortgage registry. He and his counterparts from states such as California, Delaware, Massachusetts and Nevada have vowed to press forward with their inquiries — an approach that has been cheered by liberal groups and consumer advocates.
Separately, the Securities and Exchange Commission is examining whether banks fully disclosed the risks to investors who bought packages of loans that financed the housing boom. The agency has continued digging for evidence that firms failed to disclose important information when selling the securities to investors, SEC enforcement director Robert Khuzami said recently. The SEC also has sent banks a flurry of requests for documents and interviews with witnesses.
Goldman Sachs settled an SEC complaint for $550 million in 2010, but its last quarterly report — like those of other banks — describes a variety of pending lawsuits and government investigations that the firm faces. “There remains significant uncertainty surrounding the nature and extent of any exposure for participants in this market,” Goldman said in the report.
The passage of time since the housing crash first hit could affect the government’s ability to impose penalties on financial firms. Generally speaking, under a statute of limitations, the SEC can only obtain penalties for fraud within the past five years. But the SEC and other agencies could argue that the clock didn’t start ticking until it was apparent that fraud occurred.
Thursday’s settlement, which would require a judge’s consent, won approval from 49 states. Oklahoma was the lone holdout.
Under the terms of the deal, banks would have three years to complete principal writedowns, refinancings and other relief. It provides incentives for actions taken within the first 12 months so that the aid can get to homeowners sooner rather than later.
The settlement also includes about $17 billion that would go toward foreclosure-prevention measures, such as lowering the loan balance for borrowers who owe more than their homes are worth. Other provisions would provide for lowering interest rates for homeowners who are current on their loans. In addition, as many as 750,000 borrowers who lost their homes to foreclosure since 2008 would be eligible for payouts of about $2,000 each.
The five banks at the heart of the settlement are Wells Fargo, Bank of America, J.P. Morgan Chase, Ally Financial and Citigroup. Ultimately, the amount of aid to homeowners could reach $40 billion, officials said, adding that they hope other banks will soon sign similar agreements and adopt the new standards set out by the deal.
Consumer impact uncertain
Several Washington area housing counselors said the deal would probably do little to help their clients but that they needed to learn the details of the aid to be sure.
Cherelle Silue, manager of housing services at United Communities Against Poverty in Prince George’s County, said her first impression is that a homeowner could wind up not getting much.
For homeowners who are trying to catch up on their mortgages, “we are talking thousands and thousands of dollars,” Silue said. “I am sure that it is going to be able to help someone, but I am not sure how many.”
In any case, the celebrations among state and government officials over a significant settlement for homeowners on Thursday included numerous reminders that the victory marked a beginning rather than an ending.
“This settlement also protects our ability to further investigate the practices that caused this mess. And this is important,” Obama said at White House, adding: “We’re going to keep at it until we hold those who broke the law fully accountable.”
Staff writers David S. Hilzenrath, Sarah Kliff, Luz Lazo and Jeremy Borden contributed to this report.
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