Daily Archives: January 19, 2015

Investor group backs off demand for vote on BofA chairman/CEO split

An activist investor group said Thursday it has backed off of a request that Bank of America give shareholders a vote on whether the chairman and CEO roles should be combined.

In exchange for withdrawing the proposed resolution on the issue, the Charlotte-based bank has agreed to produce a report on its business standards, said the Rev. Seamus Finn, chairman of the New York-based Interfaith Center on Corporate Responsibility.

The center had pushed for the resolution after the bank in October gave the chairman’s title to CEO Brian Moynihan. In making Moynihan chairman, the bank rolled back a bylaw change approved by shareholders in 2009 to separate the titles.

Proponents of splitting the chairman and CEO roles say it provides a better check on management.

The New Yorker Shares Its ‘Dream Of Reconciliation’ With Striking MLK Cover

New Yorker magazine

From The Left: Eric Garner, Trayvon Martin, Rev. Dr. Martin Luther King, Michael Brown and slain NY Officer Wenjian Liu.

Richest 1% is about to own more than everyone else put together: Oxfam

We all know the rich are getting richer and the poor are getting poorer — but the inequality gap may be widening faster than you think. Within two years, the top 1% will have more wealth than the remaining 99% of people on the planet, a new study says.

Just in time for the billionaire-and-politician get-together in Davos, Switzerland, Oxfam’s report on Monday lays out the increasing concentration of global wealth among a small elite.

This first chart, based on Credit Suisse Data from 2000-2014, shows how the bottom 99% has been losing wealth over the past decade or so, and the top 1% has been gaining:

Read on.

Banks and Congress blast Obama plan to tax Wall St and wealthy

And like clockwork, this is no surprise reaction by the banks and Congress…

The banking industry and Republicans have criticized a White House proposal to increase taxes on Wall Street and the wealthy as President Barack Obama steps up efforts to seize the initiative on economic policy.

Seeking to exploit a rising tide of populism in the U.S., he will unveil proposals in his State of the Union address on Tuesday that would pump funds raised from banks and rich families into policies likely to bepopular with the middle class.

Mr Obama aims to raise more than $300 billion by imposing a new levy on the US’s largest financial institutions, raising the top rate of capital gains tax to 28 per cent, and closing a loophole that lets wealthy families pass down assets without paying tax.

Read on.

Stress mounting on ‘do-or-die’ Citigroup

Citigroup faces “do-or-die time” as the Federal Reserve administers an annual stress test to the struggling bank, an analyst said.

“Either Citi gets it done or it’s time to more aggressively break up the company,” Mike Mayo, a banking-industry analyst at brokerage firm CLSA, toldCrain’s New York Business.

Citi has flunked the test twice in the past three years, and insiders say Chief Executive Michael Corbat probably can’t survive another failure. The bank submitted its paperwork earlier this month and should get results in mid-March.

Read on.

Before Dr. Martin Luther King Jr., there was a man named Vernon Johns

As we are remembering Dr. Martin Luther King today, very little mention in the media of a man named Vernon Johns. Who is Vernon Johns? From his bio:

 A brilliant thinker, Vernon Johns was a pastor and activist who was the predecessor to Dr. Martin Luther King Jr. at Dexter Avenue Baptist Church.

Synopsis

Born in Darlington Heights, Virginia, on April 22, 1892, Vernon Johns earned his divinity degree from Oberlin College. Having an unorthodox style that merged his rural upbringing with intellectual acumen, he became pastor at Dexter Avenue Baptist Church, highlighted by his community activism and challenges to the status quo. Succeeded by Martin Luther King Jr., Johns died on April 11, 1965.

I remembered watching actor James Earl Jones portraying Johns in a 1994 television film, The Road to Freedom. In this scene from the movie, Johns meet his predecessor, 26 year old Dr. Martin Luther king Jr:

 

 

Video

Rehypothecation – Distorting Legal Principles By Risking Mortgage Loans – Nemo Dat!

Deadly Clear

By Sydney Sullivan and Kenneth Dost

rehypothecation hijackIT’S 3:00 p.m., DO YOU KNOW WHERE YOUR COLLATERAL IS? An enlightening paper every homeowner should read. Written by Christian A. Johnson, Assistant Professor of Law, Loyola University Chicago School of Law. B.A.; MPrA, Utah; J.D., Columbia, 1990

It was Saturday afternoon when a group of us were teleconferencing about foreclosure issues. The focus was on the late assignment of mortgages, when one person said, “…think about it, the Plaintiff Trust says it became the owner of the loan over 3 years after the trust closed… how could it sell certificates to investors for something it did not own?” Great question!

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