Truth in Banking for Welfare Queens and Wannabes

bank-of-america-short-saleNew Orleans When there is actual truth told about banks and bankers that may not mean anything will change, but at least it’s a good way to start the day.  On the way to battle the Sioux warriors used to say, “this is a good day to die!”  In the battle for banking accountability, this is a good day to die!

Here is what we have for our morning trifecta:

  • Bank of America had to pay another $8.5 billion for misleading investors about mortgage portfolio issues springing from their Countrywide purchase.   Estimates now best $30 billion dollars for the real costs of Bank of  America’s $4 billion dollar purchase of  Countrywide, which might compete on the list now for the most expensive “bargain” deal in banking ever.  On this one we can easily say, “we told you so” to every B of A executive who asked us whether the purchase was wise, but they really didn’t want advice, they wanted unemployment checks, I suppose.
  • Jamie Dimon, the arrogant and avaricious CEO of JP Morgan Chase, was zinged hard for hypocrisy of collosal proportions and called a “one of the great welfare queens in America” by Jesse Eisinger of ProPublica in the DealBook section of the New York Times. I love the rich irony that ProPublica is funded extravagantly by Herb and Marion Sandler, who are no strangers to the banking and mortgage game.  Eisinger nails Dimon and the rest of the banking industry for the bigger-than-oil-company-and-farmers subsidies that include federal guarantees on deposits, interest premiums on the Federal Reserve lending window, not forcing banks to write down their portfolio to true value, and implicitly guaranteeing their derivative business.  The new slogan of all government, including the Obama Administration, has been “billions for banks,” so this is just the fine print on banking bull.
  • And, today was the day that the Federal Reserve finally implemented the Dodd-Frank provision and cut the ridiculous fees they were collecting, essentially for nothing much from retailers when consumers used debit cards for a purchase.

Now, if there could just be some real progress on regulating bank ripoffs on foreclosures and remittance fees, it would have been a historic day, but a little truth in banking is a good start for a change.


Springfield Story: Do We Learn from Disasters?

foreclosureNew Orleans There’s a t-shirt coming:  global warming gonna get your mamma! The spate of disasters from Japan to Joplin, Birmingham, Alabama to Springfield, Mass brings all the horror home again.  Living in New Orleans and still in recovery from Katrina and weaker and wiser from the experience, I keep an eye on these things, and in the case of Springfield I have been connected to some of the scrappy organizations, organizers, and activists trying to contend with the both the learning curve and the vast unmet and crying needs of victims and the community itself.

Springfield is at the top of the list for foreclosures in Massachusetts and sitting with the redoubtable Congressman Barney Frank, banking expert and one-man accountability squad, but people are still demanding a moratorium during the crises for foreclosures and have yet to win it, despite the Springfield City Council joining the call and FHA saying they are ready.  A federal disaster has been declared.  Occupancy for housing units was frightfully low (about 6%) before the tornado, yet no action.  Why after Katrina is this not automatic?  Why do families and their organizations have to start from scratch here?

Housing can’t be found.  There is still no moratorium stopping evictions for families still living in houses that have been foreclosed during this crisis.  What the frick?!?

This morning I have been listening to a video of interviews with survivors.  I did not need to watch.  I’ve heard all the stories before from different faces.  We are almost 30 days out from the disaster and people have their famous FEMA letters, but no money yet.  It seems that the emergency payments that helped us survive post-Katrina have not been issued.  The Red Cross has announced that it is closing shelters today and some of the survivors who were interviewed talked about the crushing indignity of having their cots and gear moved out yesterday as they got the notice.  Why do we still let the Red Cross muddle through the mess?  They are good at giving out water and food, waving their flag and raising money, but they don’t know how to handle housing or survivors once the first punch has been taken and the long sloughing fight to rebuild sets in.  Why are we still not being better?  This is a congressionally authorized corporation with virtually no accountability in Washington that preys on disorganized and panic victims thankful for any help.  Listening to one woman talk about how she felt Puerto Ricans and African-Americans faced discrimination at the hands of the Red Cross was just flat over the line for me!

Hotel rooms are going begging for guests in Springfield now, and there is word that survivors unable to locate housing may be relocated to some, but in a typical disaster catch-22, FEMA says it will reimburse the survivors for their lodging which means these poor, working families would have to come up with the money now on the front end and get reimbursed who knows when?

And, working, forget about that even though protecting livelihoods is lifeblood for families and for the community.  One woman talked about having lost her car and having no way to replace the transportation so knowing that her job was going to be the next thing she would lose and then she would have to “start all over.”

In New Orleans we had to learn how to organize to win on all of these fronts after Katrina and we’re still paying the price.  Now almost six years after Katrina where are new communities and new victims and survivors of disaster still facing the same maze of obstacles and obstinacy in the face of tragedy when our national and local policy should be an open and helping hand?