Mortgage Settlement 'Whitewash': US Taxpayers Will Pay for Big Bank Settlement

UPDATE: Reports in the Financial Times and elsewhere say that US taxpayers may be on the hook to bail out big banks -- again.

Neil Barofsky, the former special inspector-general of the TARP, said this morning that the recently approved mortgage deal between the nation's largest banks was "supposed to be a settlement for this remarkable fraud that the banks and the servicers have created across the country" is, in fact, a "political whitewash" because instead of the banks facing punitive action it "is actually going to involve money flowing from the taxpayer into the banks." And, straight to the point, he said, "We're bailing them out again!"

Barofsky, appearing on Marketplace radio this morning in an interview with Adrien Hill, said of the deal:

Read More:

http://www.commondreams.org/headline/2012/02/17-0

David Korten - Beyond the Bubble Economy

Public anger at the 2008 Wall Street bailout, concerns about debt, and a deep and pervasive fear that another financial crash is just a matter of time create an important moment of opportunity for a long overdue public conversation about the purpose of financial services and the necessary steps to assure that the financial sector fulfills that purpose.

Much of the recent discussion of financial reform has centered on limiting Wall Street excesses to curb fraud and reduce the risk of another financial crash. This is vitally important, but it does not address the issue raised by Sheila Bair shortly before she stepped down last year as FDIC chair:

“In policy terms, the success of the financial sector is not an end in itself, but a means to an end—which is to support the vitality of the real economy and the livelihood of the American people. What really matters to the life of our nation is enabling entrepreneurs to build new businesses that create more well-paying jobs, and enabling families to put a roof over their heads and educate their children.”

Read More:

http://www.yesmagazine.org/blogs/david-korten/beyond-the-bubble-economy?utm_source=feb12&utm_medium=yesemail&utm_campaign=BeyondBubble

Paul Buchheit - The Pathology of Inequality

Inequality is a disease of society, a cancer growing out of control at one end of the body while the rest of it withers away. It's not just about the money, although income and wealth inequality have never been worse in the United States. It's also the pathological adherence to free market principles that have not worked for most of the country. And a bizarre idolization of the 'innovators' who have rigged the financial system in their favor

High-priced schemers and swindlers and scoundrels roam free on Wall Street, while the downtrodden are condemned for trying to survive. "If you steal $10 from a man's wallet," observed former Secretary of the Interior Walter Hickel, "you're likely to get into a fight, but if you steal billions from the the commons, co-owned by him and his descendants, he may not even notice."

Read More:

http://www.commondreams.org/view/2012/01/25-8

Pam Martens - Wall Street’s Secret Spy Center, Run for the 1% by NYPD

On September 25, 2011, just eight days after the Occupy Wall Street protests began in Zuccotti Park in lower Manhattan, the much acclaimed CBS News program, 60 Minutes, aired a fawning look at the thousands of surveillance cameras affixed to buildings and lampposts throughout New York City.  The cameras feed live images of people going about their everyday lives to a $150 million computer center equipped with artificial intelligence to integrate and analyze the daily habits of what are, for the most part, law-abiding Americans.

The thrust of the 60 Minutes  program was the fine job of counter terrorism being done by the NYPD and its Commissioner, Raymond Kelly. It was a triumph in public relations for a police department about to go on an assault spree –  pepper spraying and punching  peaceful protestors;  kicking, ramming and arresting journalists attempting to cover the Occupy Wall Street demonstrations.

On air, the reporter, Scott Pelley, said the surveillance center was “housed in a secret location,”  as one would expect of a real counter terrorism program — as opposed to a program to simply quash dissent.  Mr. Pelley also said the program was run by the NYPD.  As it turns out, neither of those assertions were accurate.

Read More:

http://www.counterpunch.org/2012/02/06/wall-streets-secret-spy-center-run-for-the-1-by-nypd/

Richard (RJ) Eskow - People Power vs Banker Power: Score One for the People

I hate to sound Pollyanna-ish, but sometimes the sunny point of view turns out to be right.

Yes, corporate money has hijacked democracy. And it's true that our two-party system often fails to offer real choices or reflect the will of the majority. Our corporate political system doesn't have a problem. It is the problem.

But we saw yesterday that concerned citizens can make a difference. Yesterday they won a battle against one of democracy's most implacable adversaries: Wall Street. They fought back against a lousy bank deal and stopped it in its tracks. 

For the moment.

Read More:

http://www.nationofchange.org/people-power-vs-banker-power-score-one-people-1327503617