Black Lives Matter coalition issues first political agenda demanding slavery reparations
Black Lives Matter coalition issues first political agenda demanding slavery reparations
A coalition built on the Black Lives Matter movement has issued its first political agenda demanding reforms in the...
A coalition built on the Black Lives Matter movement has issued its first political agenda demanding reforms in the American justice system and reparations for slavery. Some 60 organisations in the Movement for Black Lives endorsed the platform calling for "black liberation" that had been forged over a year of discussions.
The agenda included six demands and 40 policy recommendations, including a reduction in military spending and a focus on protecting safe drinking water.
It also called for an end to the death penalty, decriminalisation of drug-related offences and prostitution, and the "demilitarisation" of police departments. It seeks reparations for lasting harms caused to African-Americans by slavery and investment in education, jobs and mental health programmes.
The agenda by the Movement for Black Lives came hard on the heel of the Republican and Democratic national conventions, which failed to satisfy members.
"On both sides of the aisle, the candidates have really failed to address the demands and the concerns of our people," said Marbre Stahly-Butts of the Movement for Black Lives Policy Table, which crafted the agenda.
He told the New York Times. "So this was less about this specific political moment and this election, and more about how do we actually start to plant and cultivate the seeds of transformation of this country that go beyond individual candidates."
The overarching mission of the group is to halt the "increasingly visible violence against black communities". Its agenda was issued just days before the second anniversary of the killing of unarmed black teen Michael Brown by a white police officer in Ferguson, Missouri.
Brown's death and the killing of other unarmed black men by white officers was the birth of the Black Lives Matter movement.
"We seek radical transformation, not reactionary reform," said Michaela Brown, a spokeswoman for Baltimore Bloc, one of the organisations that worked on the platform.
"As the 2016 election continues, this platform provides us with a way to intervene with an agenda that resists state and corporate power, an opportunity to implement policies that truly value the safety and humanity of black lives, and an overall means to hold elected leaders accountable."
By MARY PAPENFUSS
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The Minimum Wage Needs An Upgrade
The Minimum Wage Needs An Upgrade
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of...
Seventy-eight years ago today, the Fair Labor Standards Act made a groundbreaking promise to Americans: the promise of a fair minimum wage for an honest day’s work.
That promise, however, has eroded badly over time. In recent decades, the federal benchmark has grown increasingly obsolete, guaranteeing a bare minimum that is nowhere near enough to keep up with the growing costs of rent, food, and other essentials.
As calls for higher wages grow louder nationwide, it is imperative that federal officials take action to raise the federal minimum wage and renew the promise to American workers made nearly a century ago.
If the federal rate had merely kept up with inflation since its peak in the late 1960s, it would be nearly $11, one-and-a-half times today’s rate of $7.25. That rate has stayed stagnant since Congress last raised it in 2009. It is a remarkable number of years to go without an increase in wages, and workers have suffered for it.
In the absence of Congressional movement, states and cities have increasingly moved to give workers the raises they need. Yet entrenched forces at the federal level continue to stonewall, putting forth arguments that grow increasingly irrelevant by the day.
Many, for example, raise the specter of job losses. Yet cities that have raised their minimum wage in the past two years, from Los Angeles to Seattle to Chicago, simply have not seen the kinds of cataclysm that many warned about.
In fact, in Seattle, dozens of new restaurants have opened since higher wages kicked in – including many run by one of the fiercest critics of the increase. By the end of 2015, new permits for restaurants, coffee shops, and other food service establishments were on track to keep pace with or even surpass those issued in years past.
Another myth: higher wages would lead to higher prices - a bigger bill for a Big Mac, a pricier trip to Target. Yet here too, the apocalyptic predictions that precede wage increases fail to come true. In Seattle, the costs of groceries, gas, and retail have stayed stable over the past year - even though businesses warned they would need to hike prices if wages were to rise.
In recent weeks, some fast-food chains have made headlines by declaring they would replace employees with automated kiosks. Looking at the bigger picture, though, the overall risks of automation are low. Research just last year found that, while minimum wage increases can reduce some routinized jobs like cashiers, they also swell the number of more complex jobs like food preparation, resulting in an overall zero-sum change.
The fact is, raising the minimum wage gives local economies a boost by putting more money in the pockets of consumers. Higher wages also let businesses hold on to workers and improve customer satisfaction, all of which improve employers’ bottom line.
That’s why the majority of businesses actually support a higher minimum wage, despite the noise coming from groups like the Chamber of Commerce and the National Restaurant Association. A leaked memo earlier this year showed that 80 percent of business executives around the country support higher wages and paid sick days - and that they are coached to oppose those policies in public.
While powerful interests keep trying to muddle the debate, it’s clear that even a growing economy is simply not reaching millions of hardworking Americans. And it’s not just fast-food workers. A variety of workers receive less than $15: teachers, paramedics, home health-care workers, and many others. A recent study showed that even many manufacturing jobs – the foundation of the middle-class – pay less than $15, forcing the government to cover the gap with public assistance programs like food stamps and Medicaid.
As minimum wages affect more and more workers, it is no wonder that more Americans are starting to get on board. This year, dozens of cities and states – including some that lean deeply Republican – are considering increases. Colorado, Maine, Arizona and Washington State are all running ballot measures that would raise wages for close to two million workers in those states alone.
Rather than focusing on a fantasy Armageddon that never comes, lawmakers in Congress would do well to embrace the need for better pay. In the meantime, states and cities will continue the fight to fulfill the pledge that the FLSA made so many years ago.
By JoEllen Chernow
Source
Report Documents $100 Million in Charter School Fraud in 14 States and D.C.
Education Week - May 7, 2014, by Katie Ash - An examination of charter schools in 15 charter markets across the...
The report appears to be one of the first shots fired from Integrity in Education, a newly formed nonprofit that aims to expose corporate interests in public education, and is headed up by Sabrina Stevens, a former teacher and American Federation of Teachers staffer. The organization is decidedly anti-charter, likening school choice to "a euphemism for school closures" on its website.
The report gathered court cases, media investigations, regulatory findings, audits, and other sources from Arizona, California, Colorado, the District of Columbia, Florida, Illinois, Louisiana, Minnesota, New Jersey, New York, Ohio, Pennsylvania., Texas, and Wisconsin to examine the trends in charter school fraud, waste, and mismanagement.
It found that there were six main categories of fraud, waste, and abuse:
Charter operators using public funds for their personal gain.School revenue being used to support other charter operators' businesses.
Charter school mismanagement that fails to create a safe environment for students, such as not providing background checks on staff or not properly supervising students.
Charters requesting public funds for services they do not provide.
Charters inflating their enrollment numbers to boost revenues.
Charter operators mismanaging funds and schools.
After examination, the report found that the most prevalent form of fraud in charters was the first category—charter operators' using public funds for personal use.
The report provided several recommendations to help prevent fraud, waste, and abuse from occurring. States should establish an adequately funded office solely dedicated to charter school oversight that has the authority to investigate fraud, waste, and misconduct, the report said. All charters should be independently audited each year, and the schools should be held to the same transparency requirements as regular public schools, the report recommended.
In addition, the charter school's application, contract, financial information, board members and affiliations, vendor contracts over $25,000, and board-meeting minutes should be made available publicly online, said the report. In addition, relatives of charter school operators should not be allowed to serve on the board, while parents, teachers, and students (in the case of high schools) should be provided representation there, the report recommended.
The report's appendix includes an extensive list of the different charter fraud, waste, and misconduct cases broken down by state with links to media reports about each one.
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Slew Of Organizations Denounce Civil Right Violations of Puerto Ricans on May Day and Demand Gov. Roselló To Stop Austerity Measures
05.03.2018 New York, NY - In response to the violent reaction of the Puerto Rico Police Department to a peaceful...
05.03.2018
New York, NY - In response to the violent reaction of the Puerto Rico Police Department to a peaceful assembly of students, families and activists on May Day protesting against austerity measures and the national debt, the Center for Popular Democracy signed on to an open letter to Governor Roselló and released the following statement through its Co-Executive Director, Ana María Archila, who was present at the event and recorded the state violence response in a video:
“This week, as teachers, students, and retirees in Puerto Rico were exercising their First Amendment rights with a peaceful march to demand dignity for their families, the police came out in riot gear and unleashed tear gas on the crowd. Children, elderly people, entire families were fighting to catch their breath. It was a scene that doesn’t belong in a democratic society.
But this scene is not new in Puerto Rico. The police are used to controlling and enforcing colonial rule on the island. And they are enabled by our silence stateside. The crisis confronting Puerto Rico is enormous, and it’s as much a crisis of democracy as it is an economic and climate crisis.
Governor Roselló must condemn the violence perpetrated against his own people. And he must address the root causes of the march: the austerity measures that prioritize banks over people and are putting the brakes on the island’s recovery. We will continue to stand in solidarity with the Puerto Rican people as they continue to demand dignity and a better life for themselves and their families.”
Below, the Center for Popular Democracy join several organizations in solidarity with the Puerto Rican people and sign on this open letter to Governor Ricardo Roselló demanding an investigation into the abuses perpetrated by the Police Department on May Day rally and demand a stop to austerity measures and cancellation of the debt:
Open Letter to the Governor of Puerto Rico Ricardo Roselló
Sign-On Letter Condemning the Actions of the Puerto Rican Government on May Day and Demanding Justice for the Puerto Rican People
We, the undersigned organizations, stand in solidarity with the Puerto Rican people and organizations that came together on May 1, 2018 to march against inhumane austerity measures that continue to drive a massive exodus of families in search of a better life. We stand with the millions of Puerto Ricans who remain on the island and fight every day to sustain their families and improve their collective quality of life. We write today to condemn the inhumane and violent police actions of the government of Ricardo Rosselló.
On May 1, 2018, thousands of Puerto Rican people, including elderly adults and children, who were exercising their First Amendment right to protest were met with state violence through the use of tear gas and violence at the hands of the police. Images captured at the event, corroborated by first-hand accounts, show crowds of people fighting to catch their breath as they ran away from police in riot gear. This type of scene has no place in a democratic society. The right to assemble and express frustration at the government is essential to the practice of democracy. We are deeply disturbed by Governor Roselló’s defense of the police brutality and demand that the local government take the appropriate actions to prosecute those who gave and executed the orders for these actions to take place.
On May 1, 2018, thousands of Puerto Ricans came out to protest the measures that the governor and the fiscal control board have put forward over the last two years. These measures adversely affect working class Puerto Ricans, and include:
1. Privatizing of the public school system and the power company;
2. Doubling the tuition costs in Puerto Rico's public university;
3. Closing over 300 schools;
4. Slashing labor rights;
5. Raising taxes; and
6. Cutting pensions.
This dire situation is forcing families to flee the island en masse. The Center for Puerto Rican Studies estimates that Puerto Rico could lose 14% of its population, 470,000 people, by 2019.
On May Day, the people of Puerto Rico came out with clear demands for their government. Today we stand with them and echo their demands in solidarity, and we commit to advocate for them in the United States.
We further demand immediate accountability for the May Day violence. Our demands are as follows:
1. Stop austerity: The Government of Puerto Rico should stop all austerity measures and invest in the working people of Puerto Rico by strengthening labor rights, raising the minimum wage, and promoting other policies that allow families in the island to live with dignity. Living with dignity includes rebuilding Puerto Rico’s power grid with 100% clean and renewable energy and keeping the power grid and power generation in public hands under community control, so as to mitigate the climate crisis and adapt for future extreme weather.
2. Cancel the debt: The Government of Puerto Rico should not make, and the U.S. government should stop promoting, any more debt payments to billionaire bondholders. Instead, all government efforts should focus on securing payments to pension holders. The Puerto Rican government should also prosecute any individual that has profited from the debt crisis.
3. Prosecute: The Government of Puerto Rico should conduct a full, transparent and impartial investigation into the police violence during the May Day actions and prosecute every police officer and civil servant who instructed and executed these acts of violence against the Puerto Rican people. We also encourage human right organizations to conduct their own independent investigations and oversight to guarantee that this process is done with full transparency.
We, the undersigned organizations, stand in solidarity with the Puerto Rican people and their demands, condemn the actions of the Puerto Rican government, and demand that the local government take the appropriate actions to prosecute those who instructed and executed these actions.
Sincerely,
SPACEs United for a New Economy Maryland Communities United Black Voters Matter Fund CT PR Agenda Progressive Caucus Action Fund The Bully Project Center for Popular Democracy Make the Road PA Make the Road CT 215 People Alliance Alliance for Puerto Rico-Massachusetts Make the Road NJ United We DREAM NYCC Chicago Boricua Resistance! OLÉ in Albuquerque, NM Organize Florida Delaware Alliance for Community Advancement CASA Mi Familia Vota Make the Road NY VAMOS4PR 32BJ Matt Nelson Action Center for Race and the Economy Refund America Proyect Massachusets Jobs with Justice DiaspoRicans DiaspoRiqueños New Haven Association of Legal Services Attorneys United Action CT Womens March Alliance for Quality Education National Economic and Social Rights Initiative Courage Campaign Action NC Harry Potter Alliance Blue Future Youth Progressive Action Catalyst Pennsylvania Student Power Network Movement Voter Project Student Power Networks About Face: Veterans Against the War Americas for Conservation Florida Immigrant Rights Coalition- FLIC One America Services, Immigrant Rights, and Education Network (SIREN) Arkansas United Community Coalition Make the Road NV Sunrise Movement Lil Sis American Family Voices Resource Generation Climate Hawks Vote The Shalom Center National Korean American Service & Education Consortium (NAKASEC) Massachusetts Education Justice Alliance Public Higher Education Network of Massachusetts Institute for Policy Studies, New Internationalism Project Korean Resource Center (KRC) HANA Center NAKASEC - Virginia Pineros y Campesinos Unidos del Noroeste (PCUN) Coalition for Humane Immigrant Rights of Los Angeles (CHIRLA) Progressive Leadership Alliance of Nevada (PLAN)
Fed Up group plans counter Jackson Hole conference
The Fed Up coalition, made up of community activist groups, has rented a conference room in the same hotel where the...
The Fed Up coalition, made up of community activist groups, has rented a conference room in the same hotel where the Kansas City Federal Reserve Bank will be holding its annual Jackson Hole conference starting Thursday.
The group said Monday it will bring in low-wage workers from around the country who are struggling to make ends meet to emphasize the need for the Fed to do more to attack income inequality.
"Our life is a constant struggle. We know we have to pay the rent, buy food and pay the utilities on a very limited budget," Dawn O'Neal, a teaching assistant at a day care center in Atlanta, told reporters on a conference call Monday.
The mother of four said she made $8.50 an hour at her job and her husband, who is currently unemployed, has been trying to earn money by lining up early in the morning to compete for part-time construction jobs.
Ady Barkan with the Center for Popular Democracy and campaign director for Fed Up said that before Fed officials "can have a real discussion of raising interest rates and slowing the economy, they should understand firsthand who it would effect."
Barkan joked that while the Kansas City Fed charges $1,000 per person for its conference, participation in the teach-in will be free. In addition to arguing that raising rates now would be premature, the group will hold discussions on ways to reform the Fed's current selection process for the presidents of the Fed's 12 regional banks.
The group has protested the recent selection of Robert Kaplan, a former top executive at Goldman Sachs and currently associate dean at the Harvard Business School, as the new president of the Dallas Federal Reserve Bank, saying the selection process shut out input from community groups.
While the Fed announced in May that Yellen would not be attending this year's conference, Fed Vice Chairman Stanley Fischer is scheduled to deliver comments on inflation during a panel discussion at Jackson Hole on Saturday.
Financial markets will be closely examining those comments for any hints about whether the Fed is still likely to boost interest rates at its Sept. 16-17 meeting despite a huge sell-off in recent days in stocks that saw the Dow Jones industrial average fall another 588.47 points or 3.6 percent on Monday.
Source: CNBC
COMPTROLLER STRINGER DEBARS CONTRACTOR THAT CHEATED IMMIGRANT WORKERS OUT OF $1.7 MILLION IN PREVAILING WAGES AND BENEFITS
COMPTROLLER STRINGER DEBARS CONTRACTOR THAT CHEATED IMMIGRANT WORKERS OUT OF $1.7 MILLION IN PREVAILING WAGES AND BENEFITS
(New York, NY) – New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S....
(New York, NY) – New York City Comptroller Scott M. Stringer today assessed $3.2 million in fines against K.S. Contracting Corporation and its owner, Paresh Shah, for cheating dozens of workers out of the prevailing wages and benefits they were owed under the New York State Labor Law. In addition to being assessed $3.2 million in unpaid wages, interest, and civil penalties, K.S Contracting and Mr. Shah will be barred from working on New York City and State contracts for five years.
K.S. Contracting was named as one of the worst wage theft violators in New York in a report by the Center for Popular Democracy in 2015.
“With President Trump taking clear aim at immigrants across the country, we need to stand up and protect the foreign-born New Yorkers who keep our City running. Every New Yorker has rights, and my office won’t back down in defending them,” New York City Comptroller Scott M. Stringer said. “Contractors might think they can take advantage of immigrants, but today we’re sending a strong message: my office will fight for every worker in New York City. This is about basic fairness and accountability.”
K.S. Contracting was awarded more than $21 million in contracts by the City Departments of Design and Construction, Parks and Recreation, and Sanitation between 2007 and 2010. Projects included the Morrisania Health Center in the Bronx, the 122 Community Center in Manhattan, the Barbara S. Kleinman Men’s Residence in Brooklyn, the North Infirmary Command Building on Rikers Island, Bronx River Park, the District 15 Sanitation Garage in Brooklyn, and various City sidewalks in Queens.
The Comptroller’s Office began investigating the company after an employee filed a complaint with the office in May 2010. The multi-year investigation used subpoenas, video evidence, union records, and City agency data to uncover a kickback scheme that preyed on immigrant workers.
After a four-day administrative trial in May 2016, the Comptroller found that K.S. Contracting routinely issued paychecks to just half of its workforce and then required those employees to cash the checks and surrender the money to company supervisors. Those supervisors would then redistribute the cash to all of the employees on a jobsite, paying them at rates significantly below prevailing wages. K.S. Contracting, however, falsely reported to City agencies that all employees on the jobsite who received checks were paid the prevailing wage.
Between August 2008 and November 2011, the company cheated at least 36 workers out of $1.7 million in wages and benefits on seven New York City public works projects. K.S. Contracting reported that it paid its workers combined wage and benefit rates starting at $50 per hour but actually paid daily cash salaries starting at $90 per day. The majority of the workers impacted were immigrants of Latino, South Asian, or West Indian descent.
The New York City Comptroller’s office enforces state and local laws which require private contractors working on New York City public works projects or those with service contracts with City agencies to pay no less than the prevailing wage or living wage rate to their employees.
When workers are underpaid, the New York City Comptroller’s office works to recoup the amount of the underpayment plus interest.
Since taking office in 2014, Comptroller Scott M. Stringer’s Bureau of Labor Law has assessed over $20 million and barred 40 contractors from state and City contracts due to prevailing wage violations, both record amounts. The assessed violation number includes underpayment of wages and benefits with interest payable to workers, and civil penalties payable to the City treasury.
“We applaud the Comptroller for standing up for the rights of immigrant workers and debarring bad actors like K.S. Contracting – a company identified by the Center for Popular Democracy as one of the worst violators of wage theft laws in New York. The Comptroller’s aggressive enforcement of prevailing wage law is a perfect example of what is needed to effectively combat wage theft throughout the city and state,” said Kate Hamaji, Center for Popular Democracy.
“We commend Comptroller Stringer for defending the rights of immigrant workers and ensure that they receive the wages and benefits that they deserve,” said Steven Choi, executive director of the New York Immigration Coalition. “In a time when immigrant communities are worried for their future in this country, it is essential that we have strong city advocates who will ensure that their rights are protected.”
“At a time when exploitative employers are feeling increasingly emboldened by Trump’s hateful rhetoric, it is imperative that our City’s leaders are taking a strong stance in defense of immigrant workers. Wage theft is a persistent and pervasive problem in New York, with employers like Paresh Shah cheating their immigrant workers out of millions of dollars in lawful wages and benefits each year. We commend the Comptroller for fighting to recuperate wages for the workers at KS Contracting and for showing employers like Paresh Shah that their behavior will not be tolerated by the City of New York,” said Deborah Axt, Executive Director, Make the Road New York.
“I want to thank New York City Comptroller Scott Stringer for taking the lead in fighting wage theft. Unfortunately wage theft is a crime that is running rampart throughout the construction industry. Hard working men and women, who expect nothing more than a fair day’s pay for a fair’s day’s work are constantly seeing their hard earned wages stolen by dishonest, criminal employers. By debarring KS Contracting for five years, Comptroller Stringer and his office have sent a message loud and clear – stealing workers’ wages will not be tolerated in New York.” said Robert Bonanza, Business Manager, Mason Tenders District Council of Greater New York, LiUNA!.
“I would like to thank Comptroller Stringer and his team in the Bureau of Labor Law for bringing justice to the workers at K.S. Contracting. Unfortunately the Comptroller’s task is made more difficult by the fact that many City agencies do not put top priority on monitoring projects for labor violations. Too many employers in New York City exploit minority and immigrant workers. And it’s no secret that many immigrant workers are fearful of retaliation for standing up for their rights, especially in an environment where they are afraid of being deported. This undercuts labor standards for all workers, and safe, educated workers are our City’s most valuable resource. We need more responsible and proactive leaders like Comptroller Stringer to protect that resource,” said Lowell Barton, Vice President/Organizing Director, Laborers Local 1010, LiUNA!.
“In a city where diversity is our greatest strength, we will not let anyone target our immigrant workers for abuse. Undermining labor standards for immigrants it’s an attack on all workers. I commend Comptroller Stringer for standing up for immigrant workers and against wage theft at a time when our immigrant communities are under attack,” said Renata Pumarol, Communications Director, New York Communities for Change.
“We at the Alliance of South Asian American Labor (ASAAL) are extremely conscious of the rights of every human being who lives in this great nation no matter what their immigration status. Many hard working individuals are taken advantage of by unscrupulous employers. We greatly applaud Comptroller Scott Stringer’s aggressive approach to combat wage theft violations and in this way protect the rights of all workers. I applaud his historic record of debarring 40 contractors since taking office and assessing over $20 million in prevailing wage violations, including today’s order against K.S. Contracting,” said Maf Misbah Uddin, ASAAL National President.
By TIP NEWS
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Overnight Finance: Obama huddles with Yellen; Puerto Rico bill markup Wednesday
Overnight Finance: Obama huddles with Yellen; Puerto Rico bill markup Wednesday
TRADING NOTES: President Obama met with Federal Reserve Board Chairwoman Janet Yellen, but interest rates were...
TRADING NOTES: President Obama met with Federal Reserve Board Chairwoman Janet Yellen, but interest rates were apparently not on the agenda.
Obama did not plan to discuss interest rates with Yellen, according to White House press secretary Josh Earnest. He argued such a conversation could undercut the chair's independence in setting monetary policy.
"I would not anticipate that, even in the confidential setting, that the president would have a conversation with the chair of the Fed that would undermine her ability to make these kinds of critical monetary policy decisions independently," Earnest told reporters ahead of the meeting.
The closed-door discussion is instead an opportunity to "trade notes" on broader economic trends in the U.S. and abroad, as well as on a new set of regulations on Wall Street financial firms.
Obama and Yellen talked about the growth outlook, "the state of the labor market, inequality and potential risks to the economy," the White House said after the meeting. The Hill's Jordan Fabian has more: http://bit.ly/25VuzIZ.
HOUSE TO MARKUP PUERTO RICO DEBT BILL: The House Natural Resources Committee will begin on Wednesday to mark up legislation aimed at saving Puerto Rico from a massive debt crisis.
Lawmakers have been working to make significant changes to the measure, which is expected to unveiled as early as Monday night, since the panel released a discussion draft on March 29.
The Puerto Rico measure, which put the island's finances under federal oversight and authorize a restructuring of some of its debt, will need to strike a balance and attract bipartisan support and the backing of the White House to move forward.
LEW MAKES CASE FOR GLOBAL ECONOMIC LEADERSHIP: Treasury Secretary Jack Lew on Monday made the case for the United States to continue its global economic leadership as the administration faces criticism from Donald Trump and other presidential candidates.
"We know that the global landscape of the next century will be very different than that of the post-war era," Lew said in a speech at the Council on Foreign Relations. "And if we want it to work for the American people, we need to embrace new players on the global economic stage and make sure they meet the standards of the system we created, and that we have a strong say in any new standards."
"The worst possible outcome would be to step away from our leadership role and let others fill in behind us," he added. The Hill's Naomi Jagoda fills us in: http://bit.ly/1qjTIwe.
GOLDMAN SACHS SETTLES MORTGAGE PROBE FOR $5 BILLION: Goldman Sachs will pay more than $5 billion to settle charges that it engaged in "serious misconduct" when selling risky mortgages leading up to the 2008 financial collapse.
The $5.06 billion civil settlement also saw the Wall Street giant admit it failed to properly inform investors of the risks in the subprime mortgage securities the bank was selling.
"This resolution holds Goldman Sachs accountable for its serious misconduct in falsely assuring investors that securities it sold were backed by sound mortgages, when it knew that they were full of mortgages that were likely to fail," acting associate attorney general Stuart Delery said in a statement.
One of the government charges, which Goldman has now acknowledged, was that the bank kept internal concerns about the strength of the mortgage market hidden from potential investors. Here's more from The Hill's Peter Schroeder: http://bit.ly/1qjTJQQ.
SANDERS SAYS GOLDMAN'S BUSINESS 'RIGGED': Bernie Sanders charged Monday that the settlement proves Goldman Sachs's business is "based on fraud."
The Justice Department announced Monday that the Wall Street giant would pay over $5 billion to settle charges it sold risky mortgage investments in the lead up to the financial crisis, and didn't tell investors enough about it.
Sanders, who has built his presidential campaign in large part on big bank bashing, said the settlement proves his point.
"What they have just acknowledged to the whole world is that their system ... is based on fraud," he told supporters in New York.
Sanders also complained that the civil settlement did not include any criminal charges, proving the "corruption of our criminal justice system." http://bit.ly/1TNk2Lm
HAPPY MONDAY and welcome to Overnight Finance, where we're wondering why Herbert Hoover gets to join the racing presidents. I'm Sylvan Lane, and here's your nightly guide to everything affecting your bills, bank account and bottom line.
Tonight's highlights include securities fraud charges for Texas's attorney general, a trillion-dollar national pension gap and a Tax Day delay.
See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://www.thehill.com/signup/48.
ON TAP TOMORROW:
Senate Finance Committee: Hearing on examining cybersecurity and protecting taxpayer information, 10 a.m
Senate Appropriations Subcommittee on Financial Services: Hearings to examine proposed budget estimates and justification for fiscal year 2017 for the Securities and Exchange Commission and Commodity Futures Trading Commission., 10:30 a.m.
House Rules Committee: Business Meeting: H.R. 2666: No Rate Regulation of Broadband Internet Access Act; H.R. 3340: Financial Stability Oversight Council Reform Act; H.R. 3791: To raise the consolidated assets threshold under the small bank holding company policy statement and for other purposes.
Puerto Rico Oversight, Management, and Economic Stability Act expected to be released.
"Getting Her Money's Worth: What Will It Take to Achieve Equal Pay?" discussion featuring Sens. Kirsten Gillibrand (D-NY) and Heidi Heitkamp (D-ND), 11:45 am.
BERNIE FANS LEFT'S FLAMES AGAINST FED: Liberal activists are putting a target on the Federal Reserve for the 2016 elections, much to the delight of the Bernie Sanders campaign.
Denouncing an agenda that they say tilts toward Wall Street, members of the "Fed Up" coalition on Monday unveiled a set of reforms that would alter how the central bank does business.
"No longer are we focused only on fixing the Fed's monetary policy and internal governance positions," said Ady Barkan, the group's campaign director. "We are now beginning an effort to reform the Federal Reserve itself. Peter Schroeder breaks down the fight: http://bit.ly/23yMSBH.
YOU HAVE THREE MORE DAYS TO PROCRASTINATE: For most people, tax returns are due one week from today.
This year's due date for filing federal individual income tax returns is April 18, not April 15. This is because the District of Columbia is observing Emancipation Day on April 15, which falls on a Friday, according to the Internal Revenue Service (IRS).
People living in Massachusetts and Maine have until April 19 to file their tax returns because those states observe Patriots' Day on April 18.
Those who are serving in combat zones or contingency operations or become hospitalized due to injuries from their service can have additional time to pay their taxes. Those affected by federally declared disasters might also have more time, the IRS said: http://bit.ly/1Q3tzHk.
AG GROUPS PUSH FOR PACIFIC TRADE DEAL: The nation's farmers and ranchers are putting their weight behind efforts urging Congress to pass a sweeping Asia-Pacific deal this year.
In a letter to congressional leaders on Monday, 225 food and agricultural groups called on lawmakers to move forward on the 12-nation Trans-Pacific Partnership before President Obama leaves office.
"The TPP presents a valuable opportunity for U.S. agriculture; one that we cannot afford to miss," the groups wrote. The Hill's Vicki Needham explains why: http://bit.ly/1S5QCFD.
SEC CHARGES TEXAS ATTORNEY GENERAL: The Securities and Exchange Commission on Monday charged Texas's top law enforcement official with civil securities fraud for allegedly deceiving investors in a computer company.
Texas Attorney General Ken Paxton (R) received 100,000 shares of Servergy, a Nevada-based technology company, to pitch investors on a server it was selling between 2011 and 2013, according to the SEC complaint. Servergy officials allegedly marketed the server with incorrect information, and Paxton allegedly did not disclose to investors that he would be paid a commission: http://bit.ly/1RPHyG0.
US PUBLIC PENSIONS FACE $3 TRILLION HOLE: The nation's public pension system is facing a $3.4 trillion funding hole that may force cities and states to either cut spending or raise taxes to cover future shortfalls.
The deficit in pension funds is three times more than official figures and is growing, and without an overhaul could weigh on state and local budgets and lead to Detroit-like bankruptcies, according to research reported by the Financial Times.
Joshua Rauh, a senior fellow at the Hoover Institution who put together the report, told the FT that "the pension problems are threatening to consume state and local budgets in the absence of some major changes."
"It is quite likely that over a 5- to 10-year horizon we are going to see more bankruptcies of cities where the unfunded pension liabilities will play a large role." Here's more from Vicki Needham: http://bit.ly/1Su85op.
CONSERVATIVES FIGHT ENERGY TAX BREAKS IN FAA BILL: Conservative groups that oppose a proposal to include energy tax breaks in the long-term reauthorization of the Federal Aviation Administration are vowing to take their fight to the House if the Senate moves ahead.
Americans for Prosperity and Freedom Partners said Monday that if the Senate ends up attaching energy tax provisions to the FAA bill, the organizations will ratchet up pressure on lawmakers across the Capitol to oppose the language or pass a clean-extension of FAA.
"If the Senate isn't going to do anything to stop this, we're going to put pressure on the House," Andy Koenig, senior policy advisor at Freedom Partners, said on a press call. "The House is under no obligation to take up a bunch of energy subsidies if they don't want to." The Hill's Melanie Zanona walks us through the battle: http://bit.ly/1RPHrKH.
DEMS CALL FOR GREATER NONBANK MORTGAGE OVERSIGHT: Two Democratic lawmakers are calling on the nation's top consumer protection agency to ramp up its oversight of nonbank mortgage servicers.
Sen. Elizabeth Warren (Mass.) and Rep. Elijah Cummings (Md.) asked the Consumer Financial Protection Bureau (CFPB) on Monday to identify all of and collect more data on the growing number of financial institutions other than banks that service mortgages.
Warren and Cummings pointed to recommendations from a non-partisan government watchdog report published Monday. Warren, a long-time financial industry watchdog, and Cummings, the top Democrat on the House Oversight Committee, requested the Government Accountability Office (GAO) study. I'll fill you in on the rest here: http://bit.ly/1Sc3ldc.
Did you know 67% of all job growth comes from small businesses? Read More
NIGHTCAP: Five Starbucks locations in DC will start serving alcohol and "small plates," which is millennial for paying more money for less food: https://www.washingtonian.com/2016/04/08/5-dc-starbucks-will-sell-beer-wine-small-plates-next-week/.
By Sylvan Lane
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New York City allocates $500K to fight feds on deportation
US News - July 17, 2013, by Steven Nelson - Immigration advocates are thrilled that New York City is footing the bill...
US News - July 17, 2013, by Steven Nelson - Immigration advocates are thrilled that New York City is footing the bill for a pilot program to provide free legal representation to people fighting deportation.
The City Council allocated $500,000 in June for the pilot program, with Speaker Christine Quinn – a candidate for mayor – taking the lead in shepherding the funds into the fiscal year 2014 budget, advocates say.
"There really was no controversy because the statistics bore out the injustice," Angela Fernandez of the Northern Manhattan Coalition for Immigrant Rights told U.S. News.
Non-citizens living in the U.S. without legal permission aren't guaranteed a free lawyer in non-criminal deportation cases.
Immigration law is "as complex as tax law," Fernandez said. She pointed to a research conducted by federal judge Robert Katzmann that found defendants without attorneys prevail less than 10 percent of the time in immigration cases.
"If they have access to a high-quality deportation defense attorney, their chances of prevailing is 67 percent," she said.
The Vera Institute of Justice, a legal advocacy group, will administer the program and approve grants to experienced non-profits whose attorneys specialize in immigration defense.
Fernandez said is costs up to $4,000 to defend a person during the course of immigration proceedings.
"The stakes are pretty high," said Brittny Saunders of the Center for Popular Democracy. "Folks who are detained, in many cases on minor infractions of immigration law, have no right to counsel ... so they're going up against federally trained attorneys."
Fernandez and Saunders agreed that the pilot program - officially called the New York Immigrant Family Unity Project – is the first publicly funded endeavor to defend immigrants against deportation, and they hope it will become permanent.
Quinn's office confirmed to U.S. News that the program was funded in the city's recently approved budget.
The immigration advocates, attorneys and Quinn are scheduled to discuss the program during a Friday event at Yeshiva University's Cardozo School of Law.
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Dreamers Deferred As Congress Lets DACA Deadline Pass
Dreamers Deferred As Congress Lets DACA Deadline Pass
"For most of us, DACA was the only opportunity we had to come out of the shadows and show everyone what we are capable...
"For most of us, DACA was the only opportunity we had to come out of the shadows and show everyone what we are capable of doing, regardless of the legal status in which we stand in,” Aguilera said in a testimonial provided by the Center for Popular Democracy to ABC News...“With no clear path forward on the horizon to protect Dreamers, thousands of immigrant youth are left in limbo and in the sights of Trump’s deportation machine,” said Ana Maria Archila, co-executive director of the Center for Popular Democracy in a statement to ABC News.
Read the full article here.
Americans for Democratic Action Hosts Philly Charter School Forum: Who’s Minding the Store?
Weekly Press - December 17, 2014, by Nicole Contosta - Charter Schools have become a divisive issue in Philadelphia....
Weekly Press - December 17, 2014, by Nicole Contosta - Charter Schools have become a divisive issue in Philadelphia. Supporters swear to their effectiveness. Critics argue that they lack accountability.
Both sides of the charter school debate were heard last Tuesday, December 9th. That’s when the Americans for Democratic Action (ADA), hosted the Philly Charter School Forum: Who’s Minding the Store?
Panelists included Feather Houstoun from the Philadelphia School Reform Commission (SRC); Jurate Krokys, founding principal of the Independence Charter School, Kyle Serette of the Center for Popular Democracy and author of Fraud and Financial Mismanagement in PA’s Charter Schools; and Barbara Dowdall, retired public school teacher and former ADA board member.
Solomon Leach, Philadelphia Daily News Education Reporter, moderated. Leach began the evening’s discourse by asking Houstoun to comment on the evolution of charter schools in Philadelphia.
Houstoun, who spent most of her career in managing care, transit and welfare problems, cited her experience with "good oversight." But when Houstoun joined the SRC three and half years ago, "I was really surprised […] about the incredibly precarious situation the school district was in. Now," Houstoun continued, "we’re living within our means, but we’re horrifically under-resourced."
And with regard to charter schools, Houstoun said, "I was really dumbfounded by how badly over the course of time the [Philadelphia School] District had organized itself to assure that we were getting good value for children in charter schools."
To Houstoun, getting good value for the city’s children proves relevant given the fact that "40 percent of our children are being educated at charter schools that are separate from the district apparatus."
But, Houstoun continued, "We must accept responsibility for these things." And in Houstoun’s opinion, part of the problem resulted from the fact that "the District did not set up standards for academic performances. There were no systematic annual check-ups about what they were doing in terms of finance, corporate or academic measures."
Houstoun cited the fact that the SRC only renews charter schools on a five-year basis as contributing to the lack of oversight. However, at the same time, Houstoun expressed optimism when it comes to moving forward with the city’s charter schools. Over the past year, the SRC performed an overhaul of the charter school office, placing Julian Thompson at the helm. "We’re operating within charter school law that gives us the obligation to monitor and review charter schools," Houstoun emphasized.
From the charter school perspective, Krokys said that she hasn’t always had the best experience working with the SRC.
"I’ve been in the charter world for about 14 years," Krokys said, "In the past and sometimes the not so recent past—what it was—the relationship and the process of authorization and renewal were secret, haphazard, and hostile. And I’m not exaggerating. It was always up for grabs."
In answering Leach’s question about what she’s learned from really effective charter schools, Krokys said, "Community partners and stakeholders are one of the things that can be done with all schools—but it’s especially important for charter schools. Site admission selection for parents and staff—there’s nothing like feeling that you have chosen something and were not defaulted to it," Krokys stressed. "That makes a big difference in partnership.
The same thing," Krokys continued, "goes for staff. The staff is not assigned; they’re not grazing until they get their retirement. Staff is selected to work in a specific school."
Serette discussed the history and evolution of charter schools. That began on March 31, 1988. "That’s when our chamber got in front of the press club in DC and announced a new type of school, something that would help figure out the most complicated problems in our education system. And it was the charter school."
As Serette explained it, the charter school concept was designed as a "calculated risk to figure out if we could figure out something that could then be exported into the public system. And," Serette continued, "This makes sense because you don’t want to take a calculated risk and export it into the whole system. I think we forgot that lesson as we were expanding throughout the nation.
We have a situation where we have the largest charter school system in the country-K12 Inc.," Serette continued, "It’s fully funded by public dollars but it’s traded on the stock exchange. The goal of being on the exchange is to make money. So we have slightly diverged from the original mission of charters."
With regard to the effectiveness of charter schools, "they have had a meaningful impact," Serette said, adding, "They have taught us some really smart things to figure out and export to our system. The first charter school started in 1992. And now we have 43 states with charter school laws."
But, Serette noted, citing an investigation of 15 states, his office found, "about 136 million in charter school funding that was abused, that was used for fraud. To us, that was an alarming number."
In PA, Serette explained that he didn’t think the state government "did a great job of regulating the system. So we have here, two auditors looking after a system that has revenue of 700 million, auditing 86 charter schools.
Dowdall, in answering Leach’s question about academic accountability for charter schools said, "Rather than start with the charter school in the quest of academic accountability, we might journey back to the government entities that established, regulates and monitors them namely the PA State Legislature the Governor of PA, the State Department of Education and the SRC.
While the public schools whose assumed inadequacies sparked the takeover," Dowdall continued, "they were more or less placed in a giant petri dish; we more or less organized a dizzying away of name changes, administrative changes, etc. Test prep came to rule and push out libraries, librarians, music, art and other extra curricular activities. Funding cuts led to the disappearance of nurses, counselors, teaching assistants, custodial help and the financial oversight provided by operations personnel.
Twenty three neighborhood schools," Dowdall continued, "were shuttered. And 40 new charters are supposed to open. Since the SRC has the authority to approve schools," Dowdall said, "maybe they should do so based on the actual needs of the district rather than the whims and desires in some highly funded charters."
As the discussion continued, Leach asked Houstoun "how has the introduction [of reversing] no-charter re-imbursement in PA influence the SRC assessment when it comes to renewing charters?"
Leach’s question references the fact that Government Corbett eliminated the $100 million for charter school re-imbursement to the Philadelphia School District in 2011.
Houston cited the cancellation of the re-imbursement as painful. "For every child that’s added to charter school system, we can’t take off $10,000 for expenses. If," Houstoun explained, "we can restore the charter re-imbursement that was in place, it would alleviate the first level of pain that we’re suffering in the district right now."
Leach asked Krokys to comment on how to rectify the public perception of charter schools when taking into account those that are underperforming or fraudulent.
Krokys began her answering by stressing, "There are thousands and thousands of children who would not have had one chance in their neighborhood school. And a lot of them came through my doors and are now graduating from college."
When it comes to addressing inadequacies in Philadelphia charter schools, Krokys said, "It took a while for the charter school community to finally say, ‘yes. There are some charters that need be closed.’ Yes," Krokys said, "we are weary of the few bad apples because that’s what ends up in the papers. And that’s what ends up tainting everything else."
With regard to K12 Inc., "Who the hell gave permission for a for-profit to run a charter school?" Krokys asked. "Whose fault was that?"
To Serette, Leach asked, "One of the original aims of charter schools was to be a model for public schools. But that got lost in the shuffle over time. How do you think we can go back so that public schools can benefit from the successful roles of charters?"
According to Serette, "The narrative in the US is that the public school system is broken, right? And you can’t just get a good education so you have to be saved by a lot of other systems. But the truth is," Serette continued. "We have a good public school system in upper class and upper middle class neighborhoods. Those tend to be wonderful. And then you have the struggling sectors where people can’t make ends meet and we’re trying to figure that out."
Leach then asked Dowdall how charter and public schools could reach a middle ground.
To Dowdall, "It’s about equity. It’s about resources. Whether it’s traditional or charter, it can be defined. It’s about small classes with libraries where the students can be guided."
And in Dowdall’s opinion, "There needs to be an agreement between those on the board that authorization renewal for charter schools should be set at three years as opposed to five."
For more information on the ADA, visit Youth http://www.phillyada.org.
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5 days ago
5 days ago