Trumka: Foreclosure Settlement ‘First Step’ to Housing Crisis Solution
The $25 billion foreclosure settlement with five of the nation’s biggest banks, announced this morning by federal and state officials, is a “step in addressing the housing and foreclosure crisis that plagues our country,” says AFL-CIO President Richard Trumka.
The banks broke the law by railroading homeowners through the foreclosure process. Today’s settlement provides compensation for foreclosure victims without requiring individuals to waive their legal claims. While banks must be made to pay more to help homeowners, the settlement includes needed principal write-downs so homeowners can stay in their homes.
The deal with the five banks settles potential charges against the banks for fraudulent practices, including improper foreclosures by “robo-signing” foreclosure documents. U.S. Attorney General Eric Holder says the settlement moves toward “righting the wrongs that led to our nation’s housing-market collapse and economic crisis.” Read the rest of this entry »
Trumka to Justice Dept.: Investigate Banks
AFL-CIO President Richard Trumka is urging the Justice Department to lead a comprehensive investigation with state Attorneys General to prevent banks from engaging in future unlawful and deceptive practices that could exploit homeowners and put the economy further at risk.
(You can sign an online petition urging President Obama to side with working families in this issue. Click here.)
From Trumka:
We need to hold banks accountable for the fraudulent practices that brought about the worst economic crisis since the Depression. State Attorneys General have been investigating bank fraud, and these critical investigations must not be undermined by a premature and inadequate settlement. We call on the administration to reject any deal that insulates banks from full responsibility.
We commend state Attorneys Generals like New York’s Eric Schneiderman and Delaware’s Beau Biden for their leadership and courage in calling for a real investigation and relief on a scale that helps the millions of homeowners who face a new wave of foreclosures.
The economy is currently weighed down by $750 billion in negative home equity, so relief on a massive scale is needed to lift home values Read the rest of this entry »
The Truth About Taxes
In this cross-post from Our Fiscal Security, Tamara Draut, vice president of Policy & Programs at Demos, gives us a quick list of the top 10 tax stats.
1. The government collected less in taxes in 2010 than it has in over three generations, and tax rates are at historic lows.
2. The Bush tax cuts added $1.7 trillion to the nation’s debt over 2001-2008, which is more than it would cost to send 24 million kids to four-year public universities.
3. Corporate income taxes totaled about 1 percent of GDP this year, 60 percent lower than 40 years ago.
4. General Electric, which reported $5 billion in U.S. profits, paid ZERO taxes this year. Exxon Mobil, the most profitable corporation in history, paid ZERO federal taxes in 2009.
5. The Bush tax legacy means we currently tax wealth less than work: middle-income paychecks are taxed at 25 percent compared to stock dividends and capital gains for the wealthiest, which are taxed at a top rate of only 15 percent.
Jobs Rise by 151,000, Unemployment Stays at 9.6 Percent
Jobs increased by 151,000 in October and the unemployment rate remained the same as last month, at 9.6 percent, according to U.S. Department of Labor data out this morning. Other positive news: the unexpectedly modest jobs loss in state and local government, although economists say job losses in this sector will likely worsen in future months because of state and local budget challenges.
The increase is a significant jump from September, when 95,000 jobs were lost, and represents the minimum number of jobs needed to be created each month to keep up with the growth in the labor force. But to lower the nation’s unemployment rate to 6 percent by 2013, the economy needs to add 350,000 jobs a month.
AFL-CIO President Richard Trumka says:
Tuesday’s election results and today’s jobs numbers are a clarion call to the next Congress that job creation and fixing our economy must be the number one priority. With the unemployment rate stagnant at 9.6 percent, it’s no wonder people are angry, frustrated and disappointed. Despite a welcome increase of 151,000 jobs in October, nearly 15 million Americans are still unemployed. The unemployment rate has been essentially unchanged since May.
‘I Am Not Your ATM’
Working people have plenty to be angry with Wall Street about. A $700 billion bailout. Toxic assets and loan guarantees to the tune of hundreds of billions of dollars. A financial crisis and credit crunch. Billions of dollars in six- and seven-figure bonuses to the Wall Street executives who got us into this mess.
Unemployment reaching 10 percent. A mortgage crisis extending far beyond subprime loans. Abusive credit and debit card fees. More than five job-seekers for every one job.
Wall Street has treated Main Street as a giant ATM—gambling with the economy, then coming back with their hands out for help. But somehow, no matter how much help the banks need to survive, they always have the resources to fight proposals to regulate them or get them to pay their fair share.
