New Congress Supports Wall Street, Not the Public

capitol

Congress began a new session at the beginning of 2015, with the Democrats in the House of Representatives handing the reins over to the Republicans. Though the previous Congress wasn’t exactly known for being tough on Wall Street, the recent bill proposed by Representative Michael Fitzpatrick (R-PA) was a predictable giveaway to large financial institutions by way of slashing regulations […]

Read More →

Alert! Omnibus Spending Bill Favors Wall Street and Wealthy Donors

Dolla dolla bill

Congressional Democrats, in an attempt to prevent another government shutdown this year, may agree to let some troubling provisions into this year’s omnibus spending bill. Among the concessions made to the newly GOP-controlled legislature, the bill would strip critical restrictions on Wall Street under the Dodd-Frank Act. It would also permit a 3-fold increase in the amount of money a […]

Read More →

Update – US Banks Still Investing Heavily in Coal

Coal

Banktrack.org released an updated review of various financial institutions’ holdings in dirty coal energy. Green America promoted a scorecard earlier this year outlining the banks that were the strongest supporters of coal extraction and electricity production. The lowest marks went to Wells Fargo (D+), Bank of America (D-), Citi (F) and Chase (F). Of course, each of these banks has […]

Read More →

GWU Invests in Washington, DC Communities

http://www.freeimages.com/photo/1225847

Settled in the heart of the Foggy Bottom neighborhood of downtown Washington, DC, the George Washington University is characterized by its diverse student body, robust international affairs and political science programs, and high cost of attendance. Tuition fees go towards everything from funding events on campus space to acquiring new properties, but the institution was never known for its commitment […]

Read More →

Bank of America Reaches Record Settlement with Justice Department, and Taxpayers Cover the Costs

Over the past year, the Justice Department has reached multiple settlements with the country’s largest financial institutions regarding their involvement in the 2008 financial crisis. JP Morgan Chase forked over $13 billion this past November, Citigroup settled for $7 billion this July, and now Bank of America will pay a record $16.65 to the DOJ. While all of these settlements involved the sale of toxic mortgage-backed securities to unknowing investors, the recent case is different. Under the guise of providing relief to homeowners who have lost their houses, BofA will actually stick the taxpayer with a bill of up to $5.8 billion for their wrongdoings. The settlement, reached last Thursday, is unique in that it actually allows Bank of America to write-off most of the cost as a tax deduction. Previous settlements with similar large banks contained more restrictions on this practice, but BofA will be able to treat the payment as if it were just another operating cost, for tax purposes. Approximately $5 billion of the grand total is considered a “civil penalty.” Typically, money paid to resolve a civil penalty cannot be written off as a business expense, but a tenth circuit court ruled earlier this month that businesses may write off penalties such as these as a “compensatory cost.” If Bank of America doesn’t try to write off these $5 billion of civil penalties, the other $11.63 billion portion of the settlement will still stick the taxpayer […]

Read More →

Citigroup Reaches $7 Billion Settlement with Justice Department, but What’s Really Been Settled?

On Monday, July 14, Citibank agreed to pay a $7 billion settlement related to sub-prime mortgage-backed securities sold to investors during the lead up to the financial crisis of 2008. The settlement results from a Justice Department effort to crack down on the complex and risky behaviors that led Wall Street to the brink of collapse in 2008. While the overwhelming majority of Americans want to hold bankers accountable for gambling on peoples’ livelihoods, the recent settlements don’t represent a real victory for the population. If we break down the structure of the most recent settlement, it’s easy to see why. Citi agreed to pay a total of $7 billion dollars to end a DOJ inquiry into its involvement in the financial crisis. Citi will pay $4.5 billion in cash, and $2.5 billion to provide relief to struggling homeowners and low-income tenants in the form of restructured mortgages. Of the $4.5 billion cash payment, $4 billion will go to the Justice Department as a civil penalty. The other $500 million will be paid as fees to state Attorneys General and to the Federal Deposit Insurance Corporation (FDIC). There are a few reasons why this settlement looks more like a PR stunt than Citi actually trying to right any wrongdoing. First of all, the majority of the settlement will go to the agencies doing the prosecution, pretty much to spend at their discretion. The prosecuting agencies do not represent the true […]

Read More →