Hedge Funders, Wealthy Sent Secret Campaign Cash to Derail Wall Street Regs
We’re starting to find out where some of the tens of million of dollars in secret corporate campaign cash came from and what the donors were after . No surprise—Wall Street hedge fund managers, who teamed up with extremist groups run by Karl Rove and others, according a new report from NBC News.
A tightly coordinated effort by outside Republican groups, spearheaded by Karl Rove and fueled by tens of millions of dollars in contributions from Wall Street hedge fund moguls and other wealthy donors, helped secure big GOP midterm victories Tuesday, according to campaign spending figures and Republican fundraising insiders.
The two biggest spending groups behind the barrage of attack ads and mailings against Democrats were both founded by Rove and former George W. Bush White House insider Ed Gillespie—American Crossroads and Crossroads GPS. Combined reports NBC, they spent $38 million.
A substantial portion of Crossroads GPS’ money came from a small circle of extremely wealthy Wall Street hedge fund and private equity moguls, according to GOP fundraising sources who spoke with NBC News on condition of anonymity. These donors have been bitterly opposed to a proposal by congressional Democrats — and endorsed by the Obama administration — to increase the tax rates on compensation that hedge funds pay their partners, the sources said.
Read more here.
The day after the election, AFL-CIO President Richard Trumka and American Crossroads chairman Mike Duncan, squared off in a post-election debate. Click here
Main Street Wins: Senate OKs Wall Street Reform, Obama to Sign
In a “historic shift of power” from Wall Street to Main Street, the Senate this afternoon approved sweeping Wall Street reform legislation and sent it to President Obama for his signature.
AFL-CIO President Richard Trumka, says the bill, which will rein-in some of the most reckless Wall Street/Big Bank practices that shoved the nation’s economy over the cliff,
represents a historic shift of power—away from big bankers and CEOs to working families and Main Street. For years, Big Banks have profited on the backs of working families. Millions of working families lost their jobs and still can’t find work because of the reckless and selfish actions of Wall Street and the big banks.
House OK’s Wall Street Reform: Senate After July 4
The House last night gave its final approval to a package of sweeping Wall Street reform measures that is an important step to changing the rules of the game that caused the financial meltdown, for which working families are still paying the price.
House Speaker Nancy Pelosi (D-Calif.) says the bill, the Dodd-Frank Wall Street Reform and Consumer Protection Act, will usher in
an era of transparency for our financial markets, tough oversight of Wall Street, and strong consumer protections on Main Street.
Last night’s vote came after negotiators from the House and Senate put the finishing touches on the conference report that melded bills each chamber had passed earlier. Three Republicans broke ranks with their leadership which opposed the Wall Street reforms and joined in the 237-192 vote. Read the rest of this entry »
House/Senate Conference OKs Wall Street Reform Bill, Full Votes Next Week
After an all-night session, U.S. House and Senate negotiators this morning agreed on a Wall Street reform bill that imposes tough new rules on the way Wall Street and Big Banks do business, including how they handle derivatives. Derivatives are the complex and risky financial products developed by Wall Street and Big Banks that were at the heart of the financial collapse.
The Senate passed its version last month and the House in December. The conference report melds the two bills and is expected to come to votes in both chambers next week. Wall Street lobbyists spent the past several months spending millions—much of it taxpayer bailout money—to weaken the legislation.
Financial Reform Must Maintain Strong Rules on Risky Derivatives
U.S. House and Senate negotiators are expected today to put the finishing touches on a financial reform conference report that melds each chamber’s previously passed reform bills. AFL-CIO President Richard Trumka warned lawmakers today any move to weaken provisions governing derivatives would be “a gift to Wall Street.”
Derivatives are the complex and risky financial products developed by Wall Street and Big Banks that were at the heart of the financial collapse. The Senate bill has tougher rules on derivatives than the House version. Trumka says the strong derivatives regulations in the Senate bill are
essential to providing real, meaningful financial reform [and] holding the big Wall Street power brokers accountable….Any provisions or alternate language being offered are a gift to Wall Street. Financial regulatory reform without this strong derivatives language maintains the status quo where Wall Street gets rich on the backs of working families.
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.
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.
Private Equity Firms, Our New Corporate Masters?
Workers returned Tuesday to the job at Stella D’oro Biscuit Co. in the Bronx after a judge ordered the company reinstate the 136 employees who had remained strong throughout a brutal 11-month strike. But before they could even walk through the doors, they were greeted with the anti-union response by the company’s private equity firm owners, the 21st century’s mutation of the robber barons: Brynwood Partners announced it would shut down operations in October. (“Private equity firms” is the euphemism those leveraged buyout corporations adopted after leveraged buyout got a bad name in the 1980s.)
Established more than 75 years ago, Stella D’oro is a nationally known maker of specialty baked goods and until recently was a family-owned business. But a series of corporate buyouts ultimately resulted in Brynwood’s 2006 purchase of the company. And a private equity firm’s only reason for existing is to make money-lots of it. Even robber barons ultimately had to ensure they had enough workers on the job because those companies made money by making things. Not so for today’s private equity firms. Closing shop and making off with the profits is what they do.
