Wells Fargo Profits from Private Prisons
Media Roots
As big banks inject record amounts of cash into lobbying this year, largely aimed at access to financial regulators, Wells Fargo, in particular, stands out because of its added rapacious dimension of investments in for-profit prisons and immigrant detention centres. Certainly, legal wrangling over deportation policies is politicised. Yet, whereas pre-9/11, undocumented immigrants were summarily deported to their country of origin by border patrol agents along the border, post-9/11 for-profit detention centres are hugely profiting from the detention of scores of immigrants apprehended throughout the country, not just along the border at the point of entry.
Meanwhile, one of Wells Fargo’s biggest investors, the for-profit prison firm GEO Group, Inc., invests millions in lobbying for ever more draconian anti-immigrant legislation, as Eric Dolan (in the article below) and Hyun-Mi Kim (in the interview below) explain. Kim notes, the racist anti-immigrant SB 1070 Bill in Arizona was shaped in large part by the nation's top-two for-profit prison firms GEO Group, Inc. and Corrections Corporation of America. The two firms, says Kim, raked in a whopping $2.9 Billion in profits in 2010.
As regressive policies, such as NAFTA, create economic refugees forced to migrate from Latin America to the U.S. in search of employment, predatory anti-immigrant policies, shaped by for-profit prison firms, incentivise prolonged detentions, such as at the notorious T. Don Hutto Detention Center in Texas, as Davey D notes (below).
Kim correctly points out the complete betrayal by Obama to his campaign promises of compassion towards immigrant communities. Not only have record numbers of immigrants been imprisoned under Obama’s support for the regressive policies of I.C.E. and S-Comm, but Obama has even run defence on behalf of for-profit detention centres by exempting them from the Prison Rape Elimination Act of 2003. As Frontline has reported, immigrants “held in U.S. immigration detention facilities filed more than 170 allegations of sexual abuse over the last four years, mostly against guards and other staff at the centers, according to government documents obtained by FRONTLINE and the American Civil Liberties Union (ACLU).” Thus, not only must immigrants endure economic abuse, class-warfare, and arbitrary detention, but torture as well.
To Read the Rest of the Reports
Showing posts with label Lobbying. Show all posts
Showing posts with label Lobbying. Show all posts
Saturday, November 26, 2011
Sunday, November 20, 2011
Sarah Jaffe and Joshua Holland: Which Bank Is the Worst for America? 5 Behemoths That Hold Our Political System Hostage
Which Bank Is the Worst for America? 5 Behemoths That Hold Our Political System Hostage
by Sarah Jaffe and Joshua Holland
AlterNet
We've ranked the banks based on how shamelessly they game the political process through lobbying, revolving door politics and campaign donations.
The economic crash led to the loss of 9 million jobs and the biggest drop in American home-ownership since the Great Depression. Long-term unemployment, poverty and hunger have increased dramatically. People are angry. The Occupy Wall Street movement, a stand against Wall Street's greed, excess and criminality, has captured the imagination and participation of millions across the nation and the globe.
The giant mortgage bubble and the irresponsible and corrupt practices that caused the catastrophic economic crash didn't emerge out of thin air. They were a consequence of decades of pay-to-play politics rife with conflicts of interest; a political system awash in cash and legal pay-offs, designed to undermine the checks and balances that could have prevented the meltdown.
Many of these checks and balances were implemented during the Great Depression. How they were eroded and eventually abandoned is the story of a small group of banks, financial companies and elites involved in major conflicts of interest, revolving-door politics and backroom deal-making -- all to protect the interests of the global elite at the expense of the American public.
Big Finance has a long history of working hard to deregulate the American economic system on behalf of global capitalism run amok. One of its biggest coups was the overturning of the Glass-Steagall Act, a Depression-era law that created a firewall between investment banking and the commercial banks that hold deposits and make loans.
The first victory in the quest to overturn this major protection came in 1986. Under intense pressure from Wall Street, the Federal Reserve reinterpreted a key section of Glass-Steagall, deciding that commercial banks could make up to 5 percent of their gross revenues from investment banking. After the board heard arguments from Citicorp, J.P. Morgan and Bankers Trust, it loosened the restrictions further: in 1989, the limit was raised to 10 percent of revenues, and in 1996, they hiked it up to 25 percent.
Then, according to a report by PBS' Frontline, “In the 1997-'98 election cycle, the finance, insurance, and real estate industries (known as the FIRE sector), spen[t] more than $200 million on lobbying and [made] more than $150 million in political donations” – most of which were “targeted to members of Congressional banking committees and other committees with direct jurisdiction over financial services legislation.”
The following year, after 12 unsuccessful attempts, Glass-Steagall, which would have made the crash of 2007-2009 impossible, was finally repealed. And it was only then that the explosion of shaky mortgage-backed securities began. “Subprime” loans, which made the mortgage system so vulnerable, made up 5 percent of all mortgages in the U.S. the year before repeal, but had skyrocketed to 30 percent of the total at the time of the crash.
The Glass-Steagall act was killed by financial interests seeking to maximize deregulation. The result was a casino-like environment that almost destroyed the U.S. and global economy. The giants of Wall Street enjoyed a massive bailout courtesy of American taxpayers, and they're still hard at work gaming the system, lobbying hard against new regulations that might avert the next bubble-led crash.
AlterNet, in partnership with the Media Consortium, looked at the five banks that exert the most influence on our democracy. Based on their size, the amount of money they spend on campaign donations and lobbying, and the number of employees who’ve gone through the revolving door into public service, or vice versa, we determined which banks have had the worst impact on the country. We’ll rank each one based on our research, and come up with the worst of the worst--the big bank that’s done the most damage to America's economy and society.
A word of caution is in order. This report is based only on what the banks are forced to disclose. It doesn't include lobbying by corporate front-groups like the Chamber of Commerce, and it doesn't include the “independent” campaign spending that has exploded in the wake of the Supreme Court's Citizens United decision, which corporations are no longer required to disclose to the public. This is a classic story of American political corruption writ large.
Meet the Big Banks and Read the Rest
by Sarah Jaffe and Joshua Holland
AlterNet
We've ranked the banks based on how shamelessly they game the political process through lobbying, revolving door politics and campaign donations.
The economic crash led to the loss of 9 million jobs and the biggest drop in American home-ownership since the Great Depression. Long-term unemployment, poverty and hunger have increased dramatically. People are angry. The Occupy Wall Street movement, a stand against Wall Street's greed, excess and criminality, has captured the imagination and participation of millions across the nation and the globe.
The giant mortgage bubble and the irresponsible and corrupt practices that caused the catastrophic economic crash didn't emerge out of thin air. They were a consequence of decades of pay-to-play politics rife with conflicts of interest; a political system awash in cash and legal pay-offs, designed to undermine the checks and balances that could have prevented the meltdown.
Many of these checks and balances were implemented during the Great Depression. How they were eroded and eventually abandoned is the story of a small group of banks, financial companies and elites involved in major conflicts of interest, revolving-door politics and backroom deal-making -- all to protect the interests of the global elite at the expense of the American public.
Big Finance has a long history of working hard to deregulate the American economic system on behalf of global capitalism run amok. One of its biggest coups was the overturning of the Glass-Steagall Act, a Depression-era law that created a firewall between investment banking and the commercial banks that hold deposits and make loans.
The first victory in the quest to overturn this major protection came in 1986. Under intense pressure from Wall Street, the Federal Reserve reinterpreted a key section of Glass-Steagall, deciding that commercial banks could make up to 5 percent of their gross revenues from investment banking. After the board heard arguments from Citicorp, J.P. Morgan and Bankers Trust, it loosened the restrictions further: in 1989, the limit was raised to 10 percent of revenues, and in 1996, they hiked it up to 25 percent.
Then, according to a report by PBS' Frontline, “In the 1997-'98 election cycle, the finance, insurance, and real estate industries (known as the FIRE sector), spen[t] more than $200 million on lobbying and [made] more than $150 million in political donations” – most of which were “targeted to members of Congressional banking committees and other committees with direct jurisdiction over financial services legislation.”
The following year, after 12 unsuccessful attempts, Glass-Steagall, which would have made the crash of 2007-2009 impossible, was finally repealed. And it was only then that the explosion of shaky mortgage-backed securities began. “Subprime” loans, which made the mortgage system so vulnerable, made up 5 percent of all mortgages in the U.S. the year before repeal, but had skyrocketed to 30 percent of the total at the time of the crash.
The Glass-Steagall act was killed by financial interests seeking to maximize deregulation. The result was a casino-like environment that almost destroyed the U.S. and global economy. The giants of Wall Street enjoyed a massive bailout courtesy of American taxpayers, and they're still hard at work gaming the system, lobbying hard against new regulations that might avert the next bubble-led crash.
AlterNet, in partnership with the Media Consortium, looked at the five banks that exert the most influence on our democracy. Based on their size, the amount of money they spend on campaign donations and lobbying, and the number of employees who’ve gone through the revolving door into public service, or vice versa, we determined which banks have had the worst impact on the country. We’ll rank each one based on our research, and come up with the worst of the worst--the big bank that’s done the most damage to America's economy and society.
A word of caution is in order. This report is based only on what the banks are forced to disclose. It doesn't include lobbying by corporate front-groups like the Chamber of Commerce, and it doesn't include the “independent” campaign spending that has exploded in the wake of the Supreme Court's Citizens United decision, which corporations are no longer required to disclose to the public. This is a classic story of American political corruption writ large.
Meet the Big Banks and Read the Rest
Thursday, November 17, 2011
Jason Linkins: How Pizza Became A Vegetable Through The Magic Of Influence-Peddling
How Pizza Became A Vegetable Through The Magic Of Influence-Peddling
by Jason Linkins
Huffington Post
On Tuesday, Congress decided that pizza is a vegetable. I have to imagine that this news instilled confusion in many Americans, as many Americans are (a) familiar with pizza, (b) familiar with vegetables and (c) sane.
But, to provide specifics that will in no way dispel your lingering thoughts that we are governed by morons but at least allow you some anthropological insight into how a group of morons who have been given permission to sit in a fancy room in Washington, D.C., and grunt at each other actually think, here is their thinking: Pizza is a vegetable for the purposes of determining what goes into public school lunches by virtue of the fact that pizza traditionally includes a schmear of tomato paste. (Botanically speaking, tomatoes are actually fruit, but we're going to have to just let that slide.)
At any rate, you may still be wondering how it came to pass that Congress arrived at the conclusion that pizza could count as a serving of vegetables. Wonder no more! Congress was guided along this path by lobbyists. And lobbyists can do all sorts of things, by magic! (Except provide nutritious lunches for children.)
From the Associated Press:
The final version of a spending bill released late Monday would unravel school lunch standards the Agriculture Department proposed earlier this year. These include limiting the use of potatoes on the lunch line, putting new restrictions on sodium and boosting the use of whole grains. The legislation would block or delay all of those efforts.
The bill also would allow tomato paste on pizzas to be counted as a vegetable, as it is now. USDA had wanted to only count a half-cup of tomato paste or more as a vegetable, and a serving of pizza has less than that.
Nutritionists say the whole effort is reminiscent of the Reagan administration's much-ridiculed attempt 30 years ago to classify ketchup as a vegetable to cut costs. This time around, food companies that produce frozen pizzas for schools, the salt industry and potato growers requested the changes and lobbied Congress.
To Read the Rest and Access Hyperlinked Sources
by Jason Linkins
Huffington Post
On Tuesday, Congress decided that pizza is a vegetable. I have to imagine that this news instilled confusion in many Americans, as many Americans are (a) familiar with pizza, (b) familiar with vegetables and (c) sane.
But, to provide specifics that will in no way dispel your lingering thoughts that we are governed by morons but at least allow you some anthropological insight into how a group of morons who have been given permission to sit in a fancy room in Washington, D.C., and grunt at each other actually think, here is their thinking: Pizza is a vegetable for the purposes of determining what goes into public school lunches by virtue of the fact that pizza traditionally includes a schmear of tomato paste. (Botanically speaking, tomatoes are actually fruit, but we're going to have to just let that slide.)
At any rate, you may still be wondering how it came to pass that Congress arrived at the conclusion that pizza could count as a serving of vegetables. Wonder no more! Congress was guided along this path by lobbyists. And lobbyists can do all sorts of things, by magic! (Except provide nutritious lunches for children.)
From the Associated Press:
The final version of a spending bill released late Monday would unravel school lunch standards the Agriculture Department proposed earlier this year. These include limiting the use of potatoes on the lunch line, putting new restrictions on sodium and boosting the use of whole grains. The legislation would block or delay all of those efforts.
The bill also would allow tomato paste on pizzas to be counted as a vegetable, as it is now. USDA had wanted to only count a half-cup of tomato paste or more as a vegetable, and a serving of pizza has less than that.
Nutritionists say the whole effort is reminiscent of the Reagan administration's much-ridiculed attempt 30 years ago to classify ketchup as a vegetable to cut costs. This time around, food companies that produce frozen pizzas for schools, the salt industry and potato growers requested the changes and lobbied Congress.
To Read the Rest and Access Hyperlinked Sources
Subscribe to:
Posts (Atom)