The chancellor of the University of California, Davis on Saturday afternoon called video images of an officer calmly pepper-spraying a line of student protesters a day earlier "chilling" but said she would not step down.
Linda Katehi, who earlier Saturday said in a letter that she was forming a task force to investigate the incident, told an afternoon news conference that what the video shows is "sad and really very inappropriate."
..A UC-Davis professor called for the chancellor to step down, saying she was to blame for police pepper-spraying students during an Occupy protest on campus.
"You are responsible for it because this is what happens when UC Chancellors order police onto our campuses to disperse peaceful protesters through the use of force: students get hurt. Faculty get hurt," Nathan Brown, an assistant professor in the Department of English, wrote in an open letter to Katehi.
He said she was accountable for "the police brutality which occurred against students engaged in peaceful protest."
Brown was referring to an incident Friday in which UC Davis police arrested 10 protesters and pepper-sprayed about a dozen more while trying to clear an Occupy encampment on campus, according to the Davis Enterprise.
The students who were pepper-sprayed were sitting on the ground, arms linked in solidarity. Brown said several of them had to be treated at the hospital.
"You are responsible for the police violence directed against students on the UC Davis quad on November 18, 2011. As I said, I am writing to hold you responsible and to demand your immediate resignation on these grounds," Brown wrote.
Social Justice: Current Affairs, Business, Politics, and all the reasons in the world to Thrive on Creative Discontent!
Saturday, November 19, 2011
1% you are missing the point; fabricating research, buying politicians with lobbyists = is the heart of the problem
The Occupy Wall Street movement is a big enough problem for U.S. banks that they should pay for opposition research into the political motives of protesters, said a firm that lobbies for the industry.
Clark Lytle Geduldig & Cranford, a Washington-based firm, proposed the idea in a memo to the American Banking Association, an industry group which said on Saturday that it did not act on the idea.
The four-page memo outlined how the firm could analyze the source of protesters' money, as well as their rhetoric and the backgrounds of protest leaders.
"If we can show they have the same cynical motivation as a political opponent, it will undermine their credibility in a profound way," said the memo, according to a copy of it on the website of TV news channel MSNBC, which first reported on it.
Clark Lytle Geduldig counts the banking association among its regular lobbying clients, U.S. Senate records showed.
Other clients include MasterCard Worldwide and a banking coalition concerned about interchange fees.
The firm did not respond to requests for comment.
Its memo said it could deliver research, survey data and plans to use the information in 60 days at a cost of $850,000.
Banking association spokesman Jeff Sigmund told Reuters the memo is authentic, but his group was not interested.
The memo is dated November 24, five days after it became public. Sigmund did not respond to a follow-up question about the date. November 24 is also the Thanksgiving holiday.
The memo said U.S. financial firms should be concerned about comments that Democratic campaign consultants have made in the news media about trying to harness the energy of the Occupy Wall Street protesters.
"This would mean more than just short-term political discomfort for Wall Street firms," it said.
"If vilifying the leading companies of this sector is allowed to become an unchallenged centerpiece of a coordinated Democratic campaign, it has the potential to have very long-lasting political, policy and financial impacts on the companies in the center of the bull's-eye."
The memo is from Clark Lytle Geduldig's four name partners. Two of them, Sam Geduldig and Jay Cranford, are former aides to House of Representatives Speaker John Boehner, a Republican.
Using shorthand for Occupy Wall Street, the memo said:
"It may be easy to dismiss OWS as a ragtag group of protesters but they have demonstrated that they should be treated more like an organized competitor who is very nimble and capable of working the media, coordinating third party support and engaging office holders to do their bidding. To counter that, we have to do the same."
Clark Lytle Geduldig & Cranford, a Washington-based firm, proposed the idea in a memo to the American Banking Association, an industry group which said on Saturday that it did not act on the idea.
The four-page memo outlined how the firm could analyze the source of protesters' money, as well as their rhetoric and the backgrounds of protest leaders.
"If we can show they have the same cynical motivation as a political opponent, it will undermine their credibility in a profound way," said the memo, according to a copy of it on the website of TV news channel MSNBC, which first reported on it.
Clark Lytle Geduldig counts the banking association among its regular lobbying clients, U.S. Senate records showed.
Other clients include MasterCard Worldwide and a banking coalition concerned about interchange fees.
The firm did not respond to requests for comment.
Its memo said it could deliver research, survey data and plans to use the information in 60 days at a cost of $850,000.
Banking association spokesman Jeff Sigmund told Reuters the memo is authentic, but his group was not interested.
The memo is dated November 24, five days after it became public. Sigmund did not respond to a follow-up question about the date. November 24 is also the Thanksgiving holiday.
The memo said U.S. financial firms should be concerned about comments that Democratic campaign consultants have made in the news media about trying to harness the energy of the Occupy Wall Street protesters.
"This would mean more than just short-term political discomfort for Wall Street firms," it said.
"If vilifying the leading companies of this sector is allowed to become an unchallenged centerpiece of a coordinated Democratic campaign, it has the potential to have very long-lasting political, policy and financial impacts on the companies in the center of the bull's-eye."
The memo is from Clark Lytle Geduldig's four name partners. Two of them, Sam Geduldig and Jay Cranford, are former aides to House of Representatives Speaker John Boehner, a Republican.
Using shorthand for Occupy Wall Street, the memo said:
"It may be easy to dismiss OWS as a ragtag group of protesters but they have demonstrated that they should be treated more like an organized competitor who is very nimble and capable of working the media, coordinating third party support and engaging office holders to do their bidding. To counter that, we have to do the same."
Friday, November 18, 2011
CAFE 49.6 mpg by 2025; fully supported by manufacturers, citizens and small businesses
The U.S. Environmental Protection Agency and the U.S. Department of Transportation today formally unveiled their joint proposal to set stronger fuel economy and greenhouse gas emissions standards for model year 2017-2025 passenger cars and light trucks.
The proposed Corporate Average Fuel Economy, or CAFE, standards are projected to require 40.1 miles per gallon in model year 2021, and 49.6 mpg in model year 2025, on an average industry fleet-wide basis for cars and trucks combined.
The EPA's proposed greenhouse gas standards, which are harmonized with the CAFE standards, are projected to require emissions of no more than 163 grams/mile of carbon dioxide, CO2, in model year 2025. This CO2 standard is equivalent to 54.5 mpg if this level of emissions were achieved solely through improvements in fuel efficiency, the EPA says.
Cars, SUVs, minivans, and pickup trucks are currently responsible for nearly 60 percent of U.S. transportation-related petroleum use and greenhouse gas emissions.
These proposed standards will cut oil consumption by four billion barrels and cut two billion metric tons of greenhouse gas emissions over the lifetimes of the vehicles sold in those years, the agencies said.
Mitch Bainwol, president and CEO of the Alliance of Automobile Manufacturers, said, "This proposal continues the approach of establishing a single, national fuel economy program for fuel economy and greenhouse gas emissions, which is the right overall direction."
The Alliance of Automobile Manufacturers is a trade association of 12 car and light truck manufacturers including BMW, Chrysler, Ford, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, Volkswagen and Volvo.
"Today, on dealers' lots, there are more than 265 models that achieve 30 plus miles per gallon, with more coming," he said. "Sales of these and even more fuel-efficient vehicles will be critical to achieve these policy goals."
Today's action builds on the success of the first phase of the Obama administration's national program, which covers the model years 2012-2016. These earlier CAFE standards raise fuel efficiency equivalent to 35.5 mpg by 2016 and result in an average light vehicle tailpipe CO2 level of 250 grams per mile.
Automakers say the newly proposed CAFE standards will create more jobs.
Small Business Majority founder and chief executive John Arensmeyer said his members are behind the new CAFE standards.
"Our poll of more than 1,200 small business owners across the country found 87 percent of small business owners overwhelmingly support adopting strong standards now, and 80 percent support requiring the auto industry to increase mileage to 60 mpg by 2025 - an even stronger standard than the one the Obama Administration has announced."
Support from small businesses for increasing fuel economy standards is high in states with large auto manufacturing sectors, including Michigan (73 percent) and Ohio (75 percent), Arensmeyer said.
There is also strong support (71 percent) in the influential automotive market of California, which is preparing to update its Clean Cars Program aimed at reducing carbon emissions from cars sold in the state, he said.
California plans to issue its proposal for model year 2017-2025 vehicle greenhouse gas standards on December 7 and will finalize its standards in January.
The proposed Corporate Average Fuel Economy, or CAFE, standards are projected to require 40.1 miles per gallon in model year 2021, and 49.6 mpg in model year 2025, on an average industry fleet-wide basis for cars and trucks combined.
The EPA's proposed greenhouse gas standards, which are harmonized with the CAFE standards, are projected to require emissions of no more than 163 grams/mile of carbon dioxide, CO2, in model year 2025. This CO2 standard is equivalent to 54.5 mpg if this level of emissions were achieved solely through improvements in fuel efficiency, the EPA says.
Cars, SUVs, minivans, and pickup trucks are currently responsible for nearly 60 percent of U.S. transportation-related petroleum use and greenhouse gas emissions.
These proposed standards will cut oil consumption by four billion barrels and cut two billion metric tons of greenhouse gas emissions over the lifetimes of the vehicles sold in those years, the agencies said.
Mitch Bainwol, president and CEO of the Alliance of Automobile Manufacturers, said, "This proposal continues the approach of establishing a single, national fuel economy program for fuel economy and greenhouse gas emissions, which is the right overall direction."
The Alliance of Automobile Manufacturers is a trade association of 12 car and light truck manufacturers including BMW, Chrysler, Ford, General Motors, Jaguar Land Rover, Mazda, Mercedes-Benz, Mitsubishi, Porsche, Toyota, Volkswagen and Volvo.
"Today, on dealers' lots, there are more than 265 models that achieve 30 plus miles per gallon, with more coming," he said. "Sales of these and even more fuel-efficient vehicles will be critical to achieve these policy goals."
Today's action builds on the success of the first phase of the Obama administration's national program, which covers the model years 2012-2016. These earlier CAFE standards raise fuel efficiency equivalent to 35.5 mpg by 2016 and result in an average light vehicle tailpipe CO2 level of 250 grams per mile.
Automakers say the newly proposed CAFE standards will create more jobs.
Small Business Majority founder and chief executive John Arensmeyer said his members are behind the new CAFE standards.
"Our poll of more than 1,200 small business owners across the country found 87 percent of small business owners overwhelmingly support adopting strong standards now, and 80 percent support requiring the auto industry to increase mileage to 60 mpg by 2025 - an even stronger standard than the one the Obama Administration has announced."
Support from small businesses for increasing fuel economy standards is high in states with large auto manufacturing sectors, including Michigan (73 percent) and Ohio (75 percent), Arensmeyer said.
There is also strong support (71 percent) in the influential automotive market of California, which is preparing to update its Clean Cars Program aimed at reducing carbon emissions from cars sold in the state, he said.
California plans to issue its proposal for model year 2017-2025 vehicle greenhouse gas standards on December 7 and will finalize its standards in January.
Thursday, November 17, 2011
As with the Clean Air Act; we all win under Cap & Trade
One of the main complaints about the first cap-and-trade regime for greenhouse-gas emissions in the U.S. was well answered in a study released this week.
Critics had argued that the Regional Greenhouse Gas Initiative -- which links New York, Connecticut and eight other Northeastern states -- would increase energy costs for consumers. Based on its first three years, RGGI (pronounced Reggie) will actually do the opposite, producing $1.3 billion in consumer savings over the next decade, according to the study by the Analysis Group, an economic consulting firm. That’s because most participating states are investing a significant portion of their proceeds from carbon-allowance sales in energy-efficiency programs that reduce consumer bills.
Critics had argued that the Regional Greenhouse Gas Initiative -- which links New York, Connecticut and eight other Northeastern states -- would increase energy costs for consumers. Based on its first three years, RGGI (pronounced Reggie) will actually do the opposite, producing $1.3 billion in consumer savings over the next decade, according to the study by the Analysis Group, an economic consulting firm. That’s because most participating states are investing a significant portion of their proceeds from carbon-allowance sales in energy-efficiency programs that reduce consumer bills.
It’s time for a 21st-century abolitionist movement in the U.S. and around the world.
Srey Pov’s family sold her to a brothel when she was 6 years old. She was unaware of sex but soon found out: A Western pedophile purchased her virginity, she said, and the brothel tied her naked and spread-eagled on a bed so that he could rape her.
“I was so scared,” she recalled. “I was crying and asking, ‘Why are you doing this to me?’ ”
After that, the girl was in huge demand because she was so young. Some 20 customers raped her nightly, she remembers. And the brothel twice stitched her vagina closed so that she could be resold as a virgin. This agonizingly painful practice is common in Asian brothels, where customers sometimes pay hundreds of dollars to rape a virgin.
Most girls who have been trafficked, whether in New York or in Cambodia, eventually surrender. They are degraded and terrified, and they doubt their families or society will accept them again. But somehow Srey Pov refused to give in.
Repeatedly, she tried to escape the brothel but she said that each time she was caught and brutally punished with beatings and electric shocks. The brothel, like many in Cambodia, also had a punishment cell to break the will of rebellious girls.
As Srey Pov remembers it (and other girls tell similar stories), each time she rebelled she was locked naked in the darkness in a barrel half-full of sewage, replete with vermin and scorpions that stung her regularly. I asked how long she was punished this way, thinking perhaps an hour or two.
“The longest?” she remembered. “It was a week.”
Yet this is a story with a triumphant ending. At age 9, Srey Pov was able to dart away from the brothel and outrun the guard. She found her way to a shelter run by Somaly Mam, an anti-trafficking activist who herself was prostituted as a child. Somaly now runs the Somaly Mam Foundation to fight human trafficking in Southeast Asia
In Somaly’s shelter, Srey Pov learned English and blossomed. Now 19, Srey Pov can even imagine eventually having a boyfriend.
Srey Pov, Lithiya and Somaly encountered a form of oppression that echoes 19th-century slavery. But the scale is larger today. By my calculations, at least 10 times as many girls are now trafficked into brothels annually as African slaves were transported to the New World in the peak years of the trans-Atlantic slave trade.
So for those of you doubtful that “modern slavery” really is an issue for the new international agenda, think of Srey Pov — and multiply her by millions. If what such girls experience isn’t slavery, that word has no meaning. It’s time for a 21st-century abolitionist movement in the U.S. and around the world.
“I was so scared,” she recalled. “I was crying and asking, ‘Why are you doing this to me?’ ”
After that, the girl was in huge demand because she was so young. Some 20 customers raped her nightly, she remembers. And the brothel twice stitched her vagina closed so that she could be resold as a virgin. This agonizingly painful practice is common in Asian brothels, where customers sometimes pay hundreds of dollars to rape a virgin.
Most girls who have been trafficked, whether in New York or in Cambodia, eventually surrender. They are degraded and terrified, and they doubt their families or society will accept them again. But somehow Srey Pov refused to give in.
Repeatedly, she tried to escape the brothel but she said that each time she was caught and brutally punished with beatings and electric shocks. The brothel, like many in Cambodia, also had a punishment cell to break the will of rebellious girls.
As Srey Pov remembers it (and other girls tell similar stories), each time she rebelled she was locked naked in the darkness in a barrel half-full of sewage, replete with vermin and scorpions that stung her regularly. I asked how long she was punished this way, thinking perhaps an hour or two.
“The longest?” she remembered. “It was a week.”
Yet this is a story with a triumphant ending. At age 9, Srey Pov was able to dart away from the brothel and outrun the guard. She found her way to a shelter run by Somaly Mam, an anti-trafficking activist who herself was prostituted as a child. Somaly now runs the Somaly Mam Foundation to fight human trafficking in Southeast Asia
In Somaly’s shelter, Srey Pov learned English and blossomed. Now 19, Srey Pov can even imagine eventually having a boyfriend.
Srey Pov, Lithiya and Somaly encountered a form of oppression that echoes 19th-century slavery. But the scale is larger today. By my calculations, at least 10 times as many girls are now trafficked into brothels annually as African slaves were transported to the New World in the peak years of the trans-Atlantic slave trade.
So for those of you doubtful that “modern slavery” really is an issue for the new international agenda, think of Srey Pov — and multiply her by millions. If what such girls experience isn’t slavery, that word has no meaning. It’s time for a 21st-century abolitionist movement in the U.S. and around the world.
Wednesday, November 16, 2011
US Senate considers enacting a law whereby: American citizens and others can be indefinitely detained without charge or trial
Yesterday, a Senate deal was announced that leaves the door wide open to American citizens and others being indefinitely detained without charge or trial, even on American soil.
The deal was brokered behind closed doors, with no hearing and no public debate, and is an effort by the Senate Armed Services Committee to jam the National Defense Authorization Act (NDAA), the massive defense spending bill, through Congress.
If enacted, sections 1031 and 1032 of the NDAA would:
1) Explicitly authorize the federal government to indefinitely imprison without charge or trial American citizens and others picked up inside and outside the United States;
(2) Mandate military detention of some civilians who would otherwise be outside of military control, including civilians picked up within the United States itself; and
(3) Transfer to the Department of Defense core prosecutorial, investigative, law enforcement, penal, and custodial authority and responsibility now held by the Department of Justice.
These provisions in the NDAA are inconsistent with fundamental American values embodied in the Constitution. The Senate should reject the NDAA and its indefinite detention provisions.
Indefinite detention is wrong under any circumstances. And for the Senate to leave open the possibility that our own citizens and other civilians picked up at home or far from any battlefield could be thrown into prison without being charged and tried is unconscionable.
This unprecedented measure has been challenged by the White House, the Department of Defense, and by the Chairmen of the Senate Intelligence and Judiciary Committees, but certain senators are intent on making it the law almost immediately.
The deal was brokered behind closed doors, with no hearing and no public debate, and is an effort by the Senate Armed Services Committee to jam the National Defense Authorization Act (NDAA), the massive defense spending bill, through Congress.
If enacted, sections 1031 and 1032 of the NDAA would:
1) Explicitly authorize the federal government to indefinitely imprison without charge or trial American citizens and others picked up inside and outside the United States;
(2) Mandate military detention of some civilians who would otherwise be outside of military control, including civilians picked up within the United States itself; and
(3) Transfer to the Department of Defense core prosecutorial, investigative, law enforcement, penal, and custodial authority and responsibility now held by the Department of Justice.
These provisions in the NDAA are inconsistent with fundamental American values embodied in the Constitution. The Senate should reject the NDAA and its indefinite detention provisions.
Indefinite detention is wrong under any circumstances. And for the Senate to leave open the possibility that our own citizens and other civilians picked up at home or far from any battlefield could be thrown into prison without being charged and tried is unconscionable.
This unprecedented measure has been challenged by the White House, the Department of Defense, and by the Chairmen of the Senate Intelligence and Judiciary Committees, but certain senators are intent on making it the law almost immediately.
Trying to define Bravery, learn about these three 'peaceful' Freedom Fighters
Jabbar Savalan was jailed after calling for protests against the Azerbaijan government on Facebook.
A day after posting a Facebook message calling for protests against the government, Jabbar Savalan was brought to a police station for questioning. Police conveniently "discovered" marijuana in his outer coat pocket, and after reportedly hitting and intimidating Jabbar without a lawyer present, they coerced him into signing a confession. Jabbar maintains he does not use drugs and that the marijuana was planted on him. Authorities in Azerbaijan have a history of using trumped-up drug charges to jail those seen as critical of the government. Amnesty International believes the charges against Jabbar were fabricated, and considers him a prisoner of conscience.
Behareh Hedayat and Majid Tavakkoli
Iran
Behareh Hedayat and Majid Tavakkoli are serving long prison sentences for seeking for greater freedom in Iran. Majid was arrested and reportedly beaten by authorities in December 2009, after addressing a university rally in Tehran. Behareh was arrested later that month and charged with several offenses, including "insulting the leader" and "insulting the president." The two student leaders last year issued a joint statement from prison, encouraging others to continue to push for change in Iran. In response, authorities extended each of their prison sentences by another six months.
A day after posting a Facebook message calling for protests against the government, Jabbar Savalan was brought to a police station for questioning. Police conveniently "discovered" marijuana in his outer coat pocket, and after reportedly hitting and intimidating Jabbar without a lawyer present, they coerced him into signing a confession. Jabbar maintains he does not use drugs and that the marijuana was planted on him. Authorities in Azerbaijan have a history of using trumped-up drug charges to jail those seen as critical of the government. Amnesty International believes the charges against Jabbar were fabricated, and considers him a prisoner of conscience.
Behareh Hedayat and Majid Tavakkoli
Iran
Behareh Hedayat and Majid Tavakkoli are serving long prison sentences for seeking for greater freedom in Iran. Majid was arrested and reportedly beaten by authorities in December 2009, after addressing a university rally in Tehran. Behareh was arrested later that month and charged with several offenses, including "insulting the leader" and "insulting the president." The two student leaders last year issued a joint statement from prison, encouraging others to continue to push for change in Iran. In response, authorities extended each of their prison sentences by another six months.
Tuesday, November 15, 2011
Republican Candidates will make the Rich Richer and remove all safety nets for the 99%
The detailed tax plans from Republican presidential candidates would provide tax cuts for the highest earners with those from Rick Perry and Jon Huntsman offering the biggest benefits. Mitt Romney’s proposal, which suggests fewer changes.
On the surface, the 9-9-9 tax plan of Herman Cain would lead to the biggest tax cuts at the top of the income scale and the largest tax increases at the bottom.
On the surface, the 9-9-9 tax plan of Herman Cain would lead to the biggest tax cuts at the top of the income scale and the largest tax increases at the bottom.
Monday, November 14, 2011
Cheers for Wall Street Protesters
Not all reaction to the Occupy Wall Street movement has been predictable. Jim Chanos, a hedge-fund chief, and Bill Gross, the highest profile bond-fund manager in America, expressed sympathy for the protesters. And the chief executive of Citigroup Inc. said he'd be "happy to talk with them." Here's a look at what notable financiers, politicians, and media stars have said about the protests.
Colin Powell, Former U.S. Secretary of State, Army General
"Demonstrating like this is as American as apple pie. We've been marching up and down and demonstrating throughout our history. ... There's an increasing gap between those who are doing very, very well, and I'm doing well, and those who are not doing as well, and those who are not doing as well are not seeing their lives improve. So there's frustration, there's angriness there." (Source: Politico)
Michael Moore, filmmaker
"We started rewarding people not for making things or inventing things. We reward people for making money off money and moving money around and dividing up mortgages a thousand times over, selling it to China. We're against greed and the fact that 1% could get nine slices of the pie and the other 99% are supposed to fight over the last slice." (Source: Piers Morgan)
Russell Simmons, hip-hop entrepreneur
"Simple idea, power to the people. It's not a difficult idea, that we get the special interests and the money out of Washington." (Source: Keith Olbermann)
Bill Gross, founder of Pacific Investment Management Co.
"Class warfare by the 99%? Of course, they're fighting back after 30 years of being shot at." (Source: Twitter)
Laurence Fink, CEO of BlackRock
"The protesting is a statement (that) the future is very clouded for a lot of people. These are not lazy people sitting around looking for something to do. We have people losing hope and they're going into the street…” (Source: Bloomberg)
Joseph Dear, chief investment officer, CalPERS
"The financial system gets bailed out, executives' salaries stay high and the incomes of people who work for a living, paycheck to paycheck, continue to decline." (Source: CNBC)
Colin Powell, Former U.S. Secretary of State, Army General
"Demonstrating like this is as American as apple pie. We've been marching up and down and demonstrating throughout our history. ... There's an increasing gap between those who are doing very, very well, and I'm doing well, and those who are not doing as well, and those who are not doing as well are not seeing their lives improve. So there's frustration, there's angriness there." (Source: Politico)
Michael Moore, filmmaker
"We started rewarding people not for making things or inventing things. We reward people for making money off money and moving money around and dividing up mortgages a thousand times over, selling it to China. We're against greed and the fact that 1% could get nine slices of the pie and the other 99% are supposed to fight over the last slice." (Source: Piers Morgan)
Russell Simmons, hip-hop entrepreneur
"Simple idea, power to the people. It's not a difficult idea, that we get the special interests and the money out of Washington." (Source: Keith Olbermann)
Bill Gross, founder of Pacific Investment Management Co.
"Class warfare by the 99%? Of course, they're fighting back after 30 years of being shot at." (Source: Twitter)
Laurence Fink, CEO of BlackRock
"The protesting is a statement (that) the future is very clouded for a lot of people. These are not lazy people sitting around looking for something to do. We have people losing hope and they're going into the street…” (Source: Bloomberg)
Joseph Dear, chief investment officer, CalPERS
"The financial system gets bailed out, executives' salaries stay high and the incomes of people who work for a living, paycheck to paycheck, continue to decline." (Source: CNBC)
Sunday, November 13, 2011
If Lehman’s Brothers Collapse didn’t convince you…how about MF Global’s collapse = all industries and in particular the financial industry needs severe regulation.
Jon Corzine’s disastrous tenure at MF Global will boost something that Jon Corzine, the liberal senator from New Jersey, undoubtedly would have supported: the Dodd-Frank Act.
The financial reform law passed last year by Congress was aimed at a preventing a relapse of the crisis that nearly brought the U.S. economy to its knees in 2008. But efforts to implement the law have been stymied by congressional Republicans and industry lobbies. The law requires various federal regulators to write and pass about 400 rules, according to an analysis by law firm Davis Polk & Wardwell. Of those, only 74 rules have been finalized.
That may now change. While the failure of MF Global, which Corzine oversaw as its chairman and CEO, did not have the same seismic impact as the collapse of Lehman Brothers, experts say the shuttered futures firm speaks directly to the need for certain aspects of the regulatory framework envisioned by Dodd-Frank. It also gives ammunition to those who want to push through the mountain of rulemaking that remains to be done.
"It adds fire under our feet to get these regulations done as soon as possible," said Bart Chilton, a member of the Commodity Futures Trading Commission, in an interview. A staunch advocate for strong regulation, Chilton called MF Global the "new poster child" for the need to beef up market oversight. The CFTC is tasked to write 64 rules, of which it has completed 22, according to Davis Polk.
MF Global was brought down the last week of October after the publicly traded firm reported a record quarterly loss; saw its credit rating slashed to junk; spooked its trading partners and shareholders with its vast and highly leveraged exposure to European sovereign debt; has roughly $600 million unaccounted for, and a federal investigation is underway into both the whereabouts of the money and possible violations by the firm over its disappearance.
Meanwhile, the court-appointed trustee overseeing MF Global’s liquidation on Friday fired more than 1,000 of the firm’s broker-dealer employees to preserve funds for the claims process.
About 50,000 futures customers had their trading accounts frozen and partially transferred to other firms when MF Global entered bankruptcy.
MF Global belonged to an organization that is a central tenet of Dodd-Frank, said Kevin McPartland, senior analyst with the TABB Group.
"MF Global will encourage regulators to shine a much brighter spotlight on questions of clearinghouse governance," she said.
Others are using MF Global’s failure as a clarion call for imposing Dodd-Frank’s ban on federally insured banks using their own capital for speculative investments, otherwise known as proprietary trading.
It’s high time that we get on with it!!!
The financial reform law passed last year by Congress was aimed at a preventing a relapse of the crisis that nearly brought the U.S. economy to its knees in 2008. But efforts to implement the law have been stymied by congressional Republicans and industry lobbies. The law requires various federal regulators to write and pass about 400 rules, according to an analysis by law firm Davis Polk & Wardwell. Of those, only 74 rules have been finalized.
That may now change. While the failure of MF Global, which Corzine oversaw as its chairman and CEO, did not have the same seismic impact as the collapse of Lehman Brothers, experts say the shuttered futures firm speaks directly to the need for certain aspects of the regulatory framework envisioned by Dodd-Frank. It also gives ammunition to those who want to push through the mountain of rulemaking that remains to be done.
"It adds fire under our feet to get these regulations done as soon as possible," said Bart Chilton, a member of the Commodity Futures Trading Commission, in an interview. A staunch advocate for strong regulation, Chilton called MF Global the "new poster child" for the need to beef up market oversight. The CFTC is tasked to write 64 rules, of which it has completed 22, according to Davis Polk.
MF Global was brought down the last week of October after the publicly traded firm reported a record quarterly loss; saw its credit rating slashed to junk; spooked its trading partners and shareholders with its vast and highly leveraged exposure to European sovereign debt; has roughly $600 million unaccounted for, and a federal investigation is underway into both the whereabouts of the money and possible violations by the firm over its disappearance.
Meanwhile, the court-appointed trustee overseeing MF Global’s liquidation on Friday fired more than 1,000 of the firm’s broker-dealer employees to preserve funds for the claims process.
About 50,000 futures customers had their trading accounts frozen and partially transferred to other firms when MF Global entered bankruptcy.
MF Global belonged to an organization that is a central tenet of Dodd-Frank, said Kevin McPartland, senior analyst with the TABB Group.
"MF Global will encourage regulators to shine a much brighter spotlight on questions of clearinghouse governance," she said.
Others are using MF Global’s failure as a clarion call for imposing Dodd-Frank’s ban on federally insured banks using their own capital for speculative investments, otherwise known as proprietary trading.
It’s high time that we get on with it!!!
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