The Rich Are Different. They Have Jobs
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Goldman Sachs, one of the Wall Street firms that got the H1N1 flu shot well ahead of millions of America’s school children, sent this health tip in a memo to its pampered, out-of-touch execs: “Resist the urge to open your own car door; let your driver do it.”
Yo, Jeeves. While you’re at it, dust around the edges of those massive CEO pay packages. Because according to a report released today by the Government Accountability Office (GAO), top executives at four companies that jettisoned their employee pension plans received $49.5 million in retirement and severance benefits in the years before the companies filed for bankruptcy, while retirees saw their benefits cut by as much as two-thirds.
Yet Wall Street bankers are making that cash flow keeps coming: Yesterday, writes David Dayen, Senate Republicans bowed low before their corporate masters and delayed a move by Sen. Chris Dodd (D-Conn.) to immediately take up a bill that would freeze all credit card rates, charges and fee increases.
Showdown in Chicago: Thousands Protest Bankers
UPDATE: Check out photos and a video from today’s rally.
More than 5,000 people are packing the streets of downtown Chicago this morning, chanting, marching and rallying against Big Bankers and financial institutions that have taken taxpayer money and are using it to give big bonuses to CEOs and to lobby against financial reforms that would ensure they don’t go back on the public dole.
The crowd is marching to the Sheraton Chicago Hotel & Towers, site of the American Bankers Association meeting, to protest the banking industry’s greed and irresponsibility that crippled our economy, leaving millions of workers behind.
After the house of cards they built collapsed, bankers and the financial industry took $700 billion in taxpayer funds for a bailout. But rather than reform their failed practices, they want to go back to business as usual—with the chance of again precipitating another financial collapse and need for taxpayer bailout in coming years.
AFL-CIO President Richard Trumka, who is joining union members and allies at today’s events, has a clear message to bankers: You work for us.
Showdown in Chicago
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I’m in Chicago for the American Bankers Association meeting. Oddly, I haven’t been invited to the Roaring ’20s dance party I hear they’re having.
Why wouldn’t they celebrate the era of wild money and hot times (which slid into the Great Depression)? After all, the bankers are doing well these days.
They’re doing well because after financial institutions caused the global economic crisis, we bailed them out, to the tune of some $700 billion.
Now they’re in good enough shape to pay the suits $7 billion in bonuses for driving working families and our economy to our knees—to the verge of a second full-fledged depression.
Things might be turning around for the bankers, but for the rest of us, unemployment heads toward 10 percent and home foreclosures continue to devastate families and communities. Working families have lost health care, pensions and savings—and in exchange we’ve gotten predatory lending, outrageous overdraft fees and sky-high credit card interest rates.
Wall Street Won’t Do Right. Now They Have To
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So, Wall Street CEOs didn’t figure out on their own that when they take taxpayer money, they have a moral obligation to help the overall economy with their $700 billion public-funded bailout rather than single-mindedly line their own pockets with billions of dollars in salaries, bonuses and other ego-inflating perks.
Funny how “moral obligation” and “Wall Street” tend to be mutually exclusive terms.
Wall Street CEOs wouldn’t do it on their own. So now they have to.
Dancing with Jay and Daisy
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When you’re a member of the American Bankers Association (ABA) meeting in Chicago amid the worst U.S. jobless crisis and most disastrous economy since the 1930s Depression, what’s the logical move to make?
Dress up in a Roaring ’20s costume and party like it’s 1929.
Proving yet again that not only do taxpayer-bailed-out CEOs have no shame, word has it that they plan to flaunt their taxpayer-fueled wealth in our faces, the ABA is sponsoring its Roaring ’20s party in conjunction with its Oct. 27–29 meeting.
AFL-CIO President Richard Trumka will lead thousands of mad-as-hell Americans in a rally outside the ABA meeting on Oct. 27, demanding financial reform and re-regulation that will allow us to rebuild our communities, our lives and our economy.
(If you’re in Chicago, join us Oct. 27 at 10:30 a.m. CST. The march departs from the corner of East Wacker Drive and Stetson Avenue. After about a 15-minute march, the rally will be outside the Sheraton Chicago Hotel & Towers at 301 E. North Water St.)
Because when they’re not stocking up on Jay and Daisy attire, Big Bankers and financial institutions are using the $700 billion in taxpayer bailout money to attack proposals like the Consumer Financial Protection Agency that would actually help working people while decreasing the chance of another Big Bank-fueled financial meltdown. Of course, they’re not using all of our money to fight reform. Some of it—about $7 billion—is going to bonuses for top CEOs.
Chamber Pot of Commerce
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The day after Barack Obama was elected president, we at the AFL-CIO in Washington, D.C., draped the front of our building with a massive banner: “We’re Turning Around America.” In January, we added another banner supporting passage of the Employee Free Choice Act.
The AFL-CIO building is just around the corner from the Chamber of Commerce. So apparently after stewing lo these many months, the Chamber decided to drape itself in its own banner, imitation being the sincerest form of flattery.
The banner proclaims the ludicrous—yet at an estimated $100 million, massively funded—campaign the Chamber announced yesterday to shore up free enterprise and create jobs. Or, as Politics Daily puts it:
Chamber of Commerce Relaunches Capitalism.
Chamber President Tom Donohue, who last week was battling Apple Inc. and other corporations about their decisions to leave the Chamber over its antediluvian climate change stance, had this to say about the campaign:
The free enterprise system, which has done so much for so many, is facing great challenges.
Contracts Can’t Be Broken—Unless They Involve Union Workers
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Contracts can’t be broken. We learned that lesson well over the past few days when AIG honchos swore that despite being bailed out by $173 billion in taxpayer funds, they couldn’t break the sacrosanct contractual bond that guaranteed billions in bonuses to the same top executives who brought the insurance giant to its knees.
But we also were taught another lesson in these months of financial chaos: Contacts can’t be changed—unless they involve unionized autoworkers.
Tim Rutten at the Los Angeles Times really hits the mark today when he writes:
What we’re essentially being asked to believe is that employment contracts involving hardworking men and women on Detroit’s assembly lines are somehow less legally binding—less “sacred” in the current rhetorical argot—than those protecting a bunch of cowboy securities traders living in Connecticut. [snip]
For years, the smart guys on Wall Street have convinced a growing number of Americans that organized labor is an impediment to economic progress, an unacceptable “cost” in a globalized system of production, a quaint social fossil from the era of mills and smokestacks. If there’s a lesson to be gleaned from the current crisis, however, it’s that when the chips are down, organized labor is a far more responsible social actor than the snatch-and-run characters who fancy themselves financiers.
AIG, CNBC: Poster Demons for a Bigger Problem
It took awhile, but now the public is angry—reeaaalllly angry—over the economic wreckage Wall Street has wrought on our nation. Much of the outrage is directed toward AIG, the insurance giant that’s giving billions in taxpayer money in the form of bonuses to the same egregiously overpaid wretches who brought the company to its knees. New York Attorney General Andrew Cuomo just revealed that AIG paid 73 employees bonuses of $1 million or more; 11 of whom are no longer there.
But the “messenger” also is getting its comeuppance, with questions now raised about why CNBC acted as cheerleader for major financial wizards even as they were summoning chaos in our financial markets.
