After watching the repeated scandals of Wells Fargo, some members in Congress have had enough. A new bill gives power to the Fed to shut down megabanks. On Oct 4, Ranking Member of the House Committee on Financial Services Maxine Waters (D-Ca), introduced The Megabank Accountability and Consequences Act, reported in HousingWire.
“There are people who have literally concluded that these megabanks are above the law,” Ranking Member of the Subcommittee on Oversight and Investigations Al Green (D-Tx), said.
Hyper enrichment of a handful of radical corporate state supremacists wasn’t what classical capitalism was supposed to be about. So says Ralph Nader in his recent take down of corporate money siphons on Evonomics.
In a massive conflict of interest between greedy top corporate executives and their own company, CEO-driven stock buybacks extract capital from corporations instead of contributing capital for corporate needs, as the capitalist theory would dictate. ...
CEOs can take trillions of dollars away from productive pursuits without even having to ask the companies’ owners—the shareholders—for approval.
Chair Ellen Brown sheds her timely perspective and out-of-the-box thinking onto the Puerto Rican crisis, recently published in TruthDig.
[President Trump] was just pointing out the obvious. As economist Michael Hudson says, “Debts that can’t be paid won’t be paid.” Puerto Rico is bankrupt, its economy destroyed. In fact it is currently in bankruptcy proceedings with its creditors. Which suggests it’s time for some more out-of-the-box thinking. ...
Puerto Rico’s debt is only $73 billion, one third the Italian debt. The Fed has stopped its quantitative easing program, but in its last round (called “QE3”), it was buying $85 billion per month in securities. At that rate, it would have to fire up the digital printing presses for only one additional month to rescue the suffering Puerto Ricans without hurting bondholders at all. It could then just leave the bonds on its books, declaring a moratorium at least until Puerto Rico got back on its feet, and better yet, indefinitely. ...
September 25, Friends of Public Bank of Oakland organized a public forum to hear Wolfram Morales of the German Sparkasse (East German Savings Bank Association) explain how Public Banking works in his country to fund renewable energy development. The East Bay Times as well as Oakland North covered the event and connected it to how Public Banks here could do the same thing in the US that Sparkasse do in Germany: offer low-interest rates to companies providing solar and wind resources, driving development.
Related Bank News Investigation: JP Morgan Chase paid $8.2 billion fine with phony mortgages it didn’t own
David Dayen posts a powerful cover-story investigation in The Nation detailing a blistering NY lawsuit that presents evidence that Chairman and CEO Jamie Dimon knowingly implemented a grand scam on the US Government to pay off the government-mandated settlement for JPMorgan’s fraud that helped trigger the 2008 financial crash.
As part of the National Mortgage Settlement, JPMorgan Chase claimed credit for forgiving the mortgages of tens of thousands of homeowners. The scam? Years earlier JP Morgan had sold many of those toxic mortgage properties — often for pennies on the dollar — to third party investors.
“If the allegations are true, JPMorgan screwed everybody.” —former congressman Brad MillerRead more
Strong steps taken by LA City Council toward a Public Bank for Los Angeles have drawn a good deal of media attention, including coverage by the local CBS affiliate. The Ad Hoc Committee on Comprehensive Job Creation Plan began to debate the issue last Wednesday, Oct 4.
Following the successful Sept 29 meeting that took place between interested Councilmembers, legislative directors and Public Banking experts, Ellen Brown was invited to attend the Ad Hoc Committee and explain how a Bank of Los Angeles can be feasible, profitable and beneficial for the city's residents.Read more
Last Tuesday Oct 3, Richmond city council discussed whether they wanted to join the Oakland Public Bank feasibility study and chip in their own funds, adding to the $75,000 committed by Oakland and $25,000 from Berkeley.Read more
PBI Chair Ellen Brown writes in her latest article posted in Truthout:
The policy of guaranteeing every citizen a universal basic income is gaining support around the world, as automation increasingly makes jobs obsolete. But can it be funded without raising taxes or triggering hyperinflation? In a panel I was on at the NexusEarth cryptocurrency conference in Aspen September 21-23rd, most participants said no. This is my rebuttal.
Read the full article.
Developments for the creation of locally oriented municipal Public Banks are gaining traction in tandem with state Public Bank initiatives. Santa Fe, Oakland and Los Angeles, among other cities, have taken important steps in exploring the feasibility of a local Public Bank owned by their cities and operating in the interest of their communities.
On Friday, September 29th, a gathering of international Public Banking experts met with interested Councilmembers, legislative directors and the Head of the Budget and Finance Committee at Los Angeles City Hall for a very fruitful discussion on how a Bank of Los Angeles can be feasible, profitable and beneficial for the city's residents.Read more
Influential magazine The Nation describes the rise of the Public Banking movement as an excellent example of combining visionary politics with pragmatic action.
“There’s a movement on the rise to weaken the power of corporate banks and replace them with financial institutions that are owned and managed by cities and committed to putting public interest above profit. It’s a movement to create public banks.”