“Relentless Wal Street Crime Spree”: Fines Are Not Adequate Deterrents To Corporate Misbehavior
When future historians look back at our era, they will doubtless be puzzled about how we allowed it to come to pass that faceless corporations were granted all the freedoms and protections of real people, but faced none of the consequences that real people face for criminal behavior. This puzzle is related to the problem I wrote about earlier this morning, in which social problems for normal people are solved with fines and jail time, but social problems caused by corporate “citizens” are given market solutions and self-regulation instead.
The latest case in point comes as six major banks guilty of manipulating currency markets were given the laughably small fine of $4.3 billion, and not a single one of the actual perpetrators is coming close to facing jail time.
On Wednesday, six massive international banks agreed to pay $4.3 billion to settle allegations from regulators in the United States, the United Kingdom, and Switzerland that their traders tried to manipulate the $5.3-trillion-a-day foreign-currency exchange market. But Wall Street watchdogs say the banks got off with a slap on the wrist.
From 2008 through 2013, traders at JPMorgan Chase, Bank of America, Citigroup, HSBC, the Royal Bank of Scotland, and UBS colluded to coordinate the buying and selling of 10 major currencies to manipulate prices in their favor….
In the real world, the crime spree being perpetrated by global corporations, particularly those in the financial sector, will never abate until the criminals perpetrating them are actually thrown in jail.
But critics say the banks, which were not forced to admit wrongdoing, deserved a much harsher punishment. “The global too-big-to-fail banks are again allowed to evade responsibility and accountability by using shareholders’ money to pay big fines, which will generate headlines but do little if anything to stop the relentless Wall Street crime spree,” Dennis Kelleher, the president of Better Markets, a financial reform advocacy shop, responded in a statement.
David Weidner, who covers Wall Street for MarketWatch, agrees. The settlements “appear to be just another cost-of-doing-business budget line for the banks,” he wrote. What’s more, financial reformers say, none of the employees involved in the rate-fixing will face criminal charges. “It’s corrupt, as usual,” says one House staffer. Regulators should “send crooks to jail.”
Fines are utterly inadequate to deter this sort of behavior. We understand this implicitly when it comes to check kiters and liquor store robbers. If you’re convicted of those things you go to jail. But if you collude to debase another country’s entire currency for your own profit, your company pays a small fine.
That’s going to look very weird and very corrupt in about 100 years. Or else it won’t–in which good luck to us all.
By: David Atkins, Political Animal, The Washington Monthly, November 15, 2014
“Republicans Will Now Taste Their Bitter Harvest”: The “Party Of No” Has No Agreement On What Is Yes
In the early 3rd century B.C., after King Pyrrhus of Epirus again took brutal casualties in defeating the Romans, he told one person who offered congratulations, “If we are victorious in one more battle with the Romans, we shall be utterly ruined.” In his more sober moments, Mitch McConnell (R-Ky.), about to achieve his lifelong ambition of becoming Senate majority leader, may wonder whether he, too, has achieved a pyrrhic victory.
Republicans are still crowing about the sweeping victories in 2014 that give them control of both houses of Congress. They will set the agenda, deciding what gets considered, investigated and voted on. Their ideas will drive the debate.
But Republicans have no mandate because they offered no agenda. Republicans reaped the rewards of McConnell’s scorched-earth strategy, obstructing President Obama relentlessly, helping to create the failure that voters would pin on the party in power. But the collateral damage is that the “party of ‘no’ ” has no agreement on what is yes. Instead of using the years in the wilderness to develop new ideas and a clear vision, Republicans have used them only to sharpen their tongues, grow their claws and practice their backhands.
Republicans paid no penalty for obstructing every measure that might have given the recovery more juice, blocking even the infrastructure spending that has been a bipartisan response in every downturn. They paid no penalty for shutting down the government and forcing mindless austerity that cost jobs. They paid no penalty for their perfervid hysteria on foreign policy issues – screeching about phantom terrors of pregnant immigrants helping Islamic State terrorists and Ebola victims slip in the country to kill us here at home. They never needed to fill in the magic asterisks in Rep. Paul Ryan’s risible budgets, enabling him to deny the damage to Medicare, education, food stamps and the most vulnerable that his plans would require.
The result is that McConnell leads into a power a party truly unfit and unready to govern. Indeed, the wingnuts at its base want it only to dismantle, not to govern. As Terrance Heath reported, the ever-apoplectic Rush Limbaugh announced that Republicans have a mandate to “stop Barack Obama” and “were not elected to govern.” Fox News host Megyn Kelly fantasized that Obama would “offend” Republicans into impeaching him; Phyllis Schlafly argued the first priority should be blocking all Obama’s judicial nominees. Sen. Ted Cruz (R-Tex.) pledged once more to repeal Obamacare. The dyspeptic Sen. John McCain (R-Ariz.) will use his chairmanship of the Armed Services Committee to demand more “boots on the ground” in Iraq and Syria, harsher sanctions to undermine negotiations with Iran and more macho posturing over Ukraine. Sen. Jim Inhofe (R-Okla.) will use his likely chairmanship of the Environment and Public Works Committee to deny the existence of catastrophic climate change even while allocating billions for cleanup in the wake of floods, droughts and storms to come.
McConnell portrays Republicans as ready to embrace a conservative Chamber of Commerce agenda, repaying the big money that helped bring them victory. This would include giving multinationals a massive tax break on money that they stashed abroad to avoid taxes, passing fast-track trade authority, pushing ahead the Keystone XL pipeline, weakening the Consumer Financial Protection Bureau and repealing the tax on medical devices, first of the salami-style effort to slice up Obamacare.
But the zealots in the House and Senate expect more fire and less compromise. They want Obamacare repealed. They want the scorched-earth obstruction to continue: Obama’s nominations blocked, scandals real and delusional investigated, Dodd-Frank financial regulation reversed and taxes and domestic spending slashed.
It isn’t at all apparent that McConnell and Boehner can corral Republican majorities for any measures that Obama might accept. But even if McConnell could put the Chamber of Commerce’s bills on the president’s desk, one thing is apparent: None of these will do anything to address the profound crises the country faces. There is no relief for the sinking middle class and impoverished low-wage workers, no strategy for addressing climate change, no response to the destructive excesses of banks too big to fail.
McConnell won his majority by brilliantly waging a partisan, dishonest, unrelenting policy of obstruction. But now, the absence of any ideas or of any clue will be exposed. And next time, when voters sensibly want to throw the bums out, they may have a far clearer view of just who the bums are.
By: Katrina vanden Heuvel, The Washington Post, November 11, 2014
“Voters Remorse”: The New GOP Congress Americans Do Not ‘Wish They Had’
The man who lost the last (presidential) election round and who goes around talk shows trying to pretend he did not, has some advice for the man who beat him in 2012.
Appearing on Sunday’s CBS Face the Nation, failed presidential candidate Mitt Romney told Bob Schieffer, when asked about the possibility of “Obama taking executive action to overhaul immigration policy,” “The president has got to learn that he lost this last election round.”
The man who lost the last (presidential) election round said so after lecturing his nemesis about how to fight ISIL (“what we should have done by now is have — is have American troops staying by in — in Iraq”) and after implying that perhaps the President should just curl up in a fetal position, contrary to David Axelrod’s and most Americans’ expectations. “The President ought to let the Republican Congress, the Republican House and the Republican Senate come together with legislation that they put on his desk which relates to immigration,” the man who lost the last (presidential) election round told Bob Schieffer.
This latest bit of GOP arrogance is very similar to Mitch McConnell’s recent hubris: “We’d like for the president to recognize the reality that he has the government that he has, not the one that he wishes he had, and work with us,” when a “very disturbed” incoming Senate Majority Leader lamented that the president was still the President and was still intending to use his executive powers.
Which, in turn, is very reminiscent of the effrontery of former Defense Secretary Donald Rumsfeld whose callous response to a soldier asking for better protection for our troops in Iraq was: “You go to war with the army you have, not the army you might want or wish to have at a later time.”
Memo to Messrs. Romney and McConnell — and to the GOP:
Midterm elections are not intended to neuter a president. They are midcourse corrections intended to make government work better for the people who elect their representatives; to — in fact — transform the government we have into the government the people wish they have. On November 4, 2014, the American people gave Republicans another chance to stop the obstruction, stop the obfuscation, stop the gridlock, stop the arrogance, stop the raw partisanship and work with a man who is still President of the United States for the common good of all Americans, not just a few.
To do all this, congressional Republicans must disprove the disturbing allegation that they “have been sent to Washington with a mandate not so much to conduct business but rather to collect a bounty, to do what they promised and what their supporters expect: Stop Obama at any cost and at every turn, to erase his name or at least put an asterisk by it.”
Or will they?
By: Dorian de Wind, The Huffington Post Blog, November 17, 2014
“A Backwards Looking Losing Theme”: The GOP Already Has The Wrong Message For 2016
Let’s “restore” America.
This theme has been an undercurrent of Republican politics since the 2008 elections, when President Obama and the Democrats won control of two of the three branches of the U.S. government. It was also an explicit goal of the Tea Party. Now, it looks like Republicans are testing it out as a slogan for the 2016 elections, including the key presidential contest.
If Jeb Bush runs, and wins, the GOP might mean “restore” almost literally, in the dynastic sense. But mostly the message is that the Republican Party is volunteering to clean up the mess those Democrats made, bringing us back to some idyllic time in America (probably the 1980s).
At The Atlantic, Peter Beinart has an entire article dedicated to “the Republican obsession with ‘restoring’ America,” including its many iterations in today’s GOP politics. “Restore” appears in the literature — both press releases and upcoming or recent books — from 2016 GOP hopefuls Marco Rubio, Ted Cruz, and Mike Huckabee, for example. It is a word that has inherent appeal for those whose politics are conservative, but it also has vaguely sinister overtones for groups that didn’t exactly have it better in the good old days.
The Week‘s resident linguist, Arika Okrent, notes that along with Rubio’s upcoming campaign book American Dreams: Restoring Economic Opportunity for Everyone, fellow presumptive 2016 presidential hopeful Paul Ryan is “Renewing the American Idea” in his book while Rick Santorum is “Recommitting to an America That Works.” All those “re-” words are “supposed to call up the idea of freshness and new blood,” she muses, “but something about the re- screams ‘do over!'”
The problem with the pledge of restoration is that it is inherently backward-looking. Americans may like the idea of America’s Golden Age — well, some Americans: “older, straight, Anglo, white, and male voters,” in Beinart’s analysis — but what they really want to hear is what a party will do to improve their future.
Democrats learned this lesson in 2004. After trying out a host of campaign themes, presidential nominee John Kerry settled on “Let America Be America Again” in late May. It’s from a 1938 Langston Hughes poem of the same name, and the message to the electorate was that President George W. Bush had broken America, or at least veered it off the right path, and Kerry would resurrect a more idyllic era (probably the 1990s).
Kerry used that line for the rest of the campaign, at times quoting extensively from the poem, and it didn’t work.
This wasn’t the only reason that Kerry lost, of course — he was leading Bush for much of the “Let America Be America Again” phase of the campaign, until “Swift Boat” August — but compare Kerry’s theme with Obama’s 2008 mantras of “Our Moment is Now” and “Hope and Change.” Big difference.
In any case, Republicans should already know that “restore America” is a losing theme. Mitt Romney’s 2012 super-PAC was the poetically nonsensical Restore Our Future. The first substantive section of the party’s 2012 platform was entitled “Restoring the American Dream.” And even the GOP’s “Great Communicator,” Ronald Reagan, couldn’t unseat fellow Republican Gerald Ford with his 1976 speech “To Restore America.”
Nostalgia is great for selling merchandise and rebooted TV and film franchises, but it’s not a very effective political cri de cœur for a national campaign. Republicans have been telling us what they’re against for the last six years — Obama — and if they want to be viable in 2016, they need to spend the next two telling us what they envision for the future.
By: Peter Weber, Senior Editor, TheWeek.com, November 17, 2014
“Speaking Of Asses”: Senator Complains About ‘Dumbass Liberals’
I actually remember the way Sen. Orrin Hatch (R-Utah) used to be, back when he boasted about being a “square peg” – a label he used as a shorthand to say he doesn’t always fit in.
The Utah Republican used to actually see value in cooperating with people with whom he disagreed, working with Democrats, for example, on stem-cell research, the DREAM Act, and S-CHIP.
But then he threw it all away. As Amanda Terkel reported, Hatch’s remarks at the Federalist Society’s annual conference are a reminder of the kind of politician he’s become.
Sen. Orrin Hatch (R-Utah) came out swinging against Democrats Friday, telling a room of conservative lawyers that Republicans were ready to give the other party “a taste of their own medicine.”
“Frankly, I intend to win with our candidate for the presidency in 2016, and we will give them a taste of their own medicine,” said Hatch. “And we’re going to win. We’re going to win. These next two years are extremely important. Maybe the most important two years in our history.”
“I get a big kick out of them using the word ‘progressive,’” the senator said of Democrats. “My gosh, they’re just straight old dumbass liberals anyway.”
Classy.
It wasn’t too long ago that Hatch was positioned to become a rare statesman in Republican politics. But that was before his partisan Memorial Day tantrums, his occasional references to hitting people he doesn’t like, and his juvenile whining about “dumbass liberals.”
Those looking for GOP statesmanship will apparently have to look elsewhere.
On a related note, did you happen to catch Hatch’s remarks about immigration reform?
“Part of it is our fault. We haven’t really seized this problem. Of course, we haven’t been in a position to do it either, with Democrats controlling the Senate. I’m not blaming Republicans. But we really haven’t seized that problem and found solutions for it.” […]
“Frankly, I’d like to see immigration done the right way,” Hatch added. “This president is prone to doing through executive order that which he cannot do by working with the Congress, because he won’t work with us. If he worked with us, I think we could get an immigration bill through.”
For goodness sakes, does Orrin Hatch not remember the events of the last two years? With “Democrats controlling the Senate,” a comprehensive, bipartisan immigration reform bill passed easily, and garnered the support of the business community, labor, law enforcement, immigration advocates, and the religious community. Republicans then killed it.
“I’m not blaming Republicans”? Why not? They’re the ones who chose to reject the legislation. They’re also the ones who promised a more partisan alternative, only to break their word.
“If he worked with us, I think we could get an immigration bill through.” President Obama did work with Congress, and helped rally support for a bipartisan bill. GOP lawmakers killed it anyway.
How is it possible Orrin Hatch doesn’t know this? For that matter, given the circumstances, shouldn’t he be slightly more circumspect about throwing around words such as “dumbass”?
By: Steve Benen, The Maddow Blog, November 17, 2014
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
