New Congress Supports Wall Street, Not the Public

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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 […]

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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 […]

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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 […]

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GWU Invests in Washington, DC Communities

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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 […]

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Megabanks can afford to break the rules, but can the economy afford the risk?

Recent high-profile settlements involving some of the nation’s largest banks have consumers scratching their heads. Since 2012, banking giants like Chase and Bank of America have come under fire from regulators in an effort to discourage the kind of egregious behavior that drove the economy to the brink of collapse in 2008. While the sums collected thus far by regulators appear to be huge, they are little more than a drop in the bucket for the megabanks. Have a look at some examples of the fines and settlements these banks have reached so far: Bank of America has paid over $15 billion since 2007 to settle claims related to the financial crisis, including $11.6 billion to Fannie Mae in 2012 to resolve repurchase claims related to bad mortgages between 2000 and 2008. Since October of 2012, American Express has refunded approximately $144.5 million to 585,000 customers for deceptive marketing regarding add-on products like payment protection and credit monitoring, as well as charging unlawful late fees to customers’ accounts. Capital One paid $210 million to the Consumer Finance Protection Bureau in 2012 to reimburse customers that they deceptively charged for unnecessary services like credit monitoring, generally targeting unemployed people and those with poor credit. Last year, Citi paid almost $1 billion to Fannie Mae resolving claims over nearly 3.7 million subprime mortgages it sold. In addition to paying $1.32 billion to Fannie Mae and Freddie Mac over subprime mortgages, Wells Fargo […]

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Mega-banks: More than just Banks

One of Green America’s goals is to teach consumers how the businesses you choose to support can have a big impact on the world around you. From the food we buy each week, to the clothes we wear, to the energy we use to heat and power our homes – on almost all levels of the economy, we have a choice between companies that operate with an awareness of the effects of their presence on the world, and companies that pursue the goal of growth over anything else. And while it is easy to see the negative impacts of massive agricultural engineering companies, clothing companies’ sweatshops in faraway countries, and dirty international oil companies, the financial services industry influences nearly every sector of the economy – often with serious implications for people and the planet. And as banks actually sell very few tangible products, it is more difficult to recognize that our choices can drastically affect our environment and our communities. To give an example, let us look at commodities: the raw materials for nearly every product you can buy. Recent news coverage of the banking industry has revealed that large investment institutions like JP Morgan Chase and Goldman Sachs have been spending their money on warehouses. As in the large empty buildings where industrial materials, like aluminum and copper are kept before manufacturers buy them to produce goods. Why would a bank be interested in owning a warehouse? There are […]

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“Dad, What’s a Financial Crisis?”

wall st

“It’s something that happens every five to seven years,” Jamie Dimon told his daughter without a breath of sarcasm, writes Bloomberg financial reporter Bob Ivry in his book “The Seven Sins of Wall Street.” As the United States navigates its way through a post-recession financial environment, our tendency to fall back on old habits makes the term “recovery” questionable at […]

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When in Doubt: Commit Forgery?

This week, Linda Tirelli, a lawyer representing a client in a foreclosure case with Wells Fargo came across a very disturbing piece of evidence: a company manual instructing the bank’s staff in how to forge documents to proceed with foreclosures.  The manual instructs employees how to process [mortgage] notes without endorsements and obtaining endorsements and allonges.  In essence, if employees lacked the documents needed for foreclosure, they were instructed to make them up.  As Tirelli stated to the Washington Post: “This is a blueprint for fraud,” said Tirelli, who attached a copy of the manual as evidence in the lawsuit filed in U.S. District Court in White Plains, N.Y. “The idea that this bank is instructing people how to produce these documents is appalling.” The disclosure of the manual has been duly reported in the business sections of major media, but has not made a huge splash.  It’s shocking that the media and the public are this numb to the latest revelations of fraudulent behavior by megabanks.  Two years ago, several banks paid a settlement of $25 billion for their fraudulent conduct in robo-signing mortgages (although much of that money never actually benefited the people who lost their homes).  Apparently, the money paid by Wells Fargo for its portion of the settlement was not enough to deter ongoing wrongdoing.  The bank is so emboldened by the failure of the US government to truly crackdown on bank fraud that it was […]

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