Daily Archives: August 10, 2016

No Jill Stein, Federal Reserve cannot buy up student loans

Green Party candidate Jill Stein told CNBC on Wednesday she is the only 2016 presidential nominee who is free to provide the medicine the economy needs.

“As the only candidate that is not poisoned by corporate money lobbyists or super PACs, I can actually stand up for what it is we need,” she said in an interview on “Squawk Box.”

She said the United States needs an emergency jobs program like the New Deal — “a green New Deal” to solve “the emergency of climate change,” and a cancellation of student debt to “liberate a generation to lead us forward to the economy of the future.”

She said she would also make higher education free and make health care universal through a Medicare for all system.

The student loan forgiveness program could be paid for through aquantitative easing program in which the Federal Reserve would buy up student loans and agree not to collect on the debt, according to Stein.

“So essentially it’s an expansion of the money supply, but in a way that actually unleashes enormous productivity. This is basically the stimulus package of our dreams,” she said.

To be sure, the Federal Reserve is an independent government agency that devises monetary policy in accordance with its dual mandate of promoting price stability and maximizing employment. The president cannot dictate the Fed’s asset-buying programs.

Read on.

Federal Reserve cannot buy student loans because Federal Reserve doesn’t have reserves, and it’s not a bank, is an independent entity within government created by Congress and the President can’t tell the Federal Reserve how to buy back assets.

Vice News: The Baltimore Police Department are really racist, DOJ spent 1 year investigating since Freddie Gray’s death

Very disturbing..

The Baltimore Police Department has been under the spotlight since the death of Freddie Gray, an unarmed black man who died in April 2015 from spinal injuries while in police custody. Now there’s a way to gauge just how big of a problem system-wide racism is in the Baltimore Police Department: The US Department of Justice has issued a damning report after a year-long investigation.

The federal government investigated the Baltimore police’s activities between January 2010 and June 2015, and concluded that officers routinely violated black people’s rights, intruded upon their lives, and racial bias pervaded “every stage” of BPD’s enforcement activities.

Here are some of the most troubling statistics:

  • Black people make up 63 percent of the population, but 84 percent of people stopped on the street by Baltimore police in those five and a half years were black.
  • Officers made 520 stops for every 1,000 black residents in Baltimore, but only 180 stops for every 1,000 white residents.
  • Black residents were more likely to be stopped multiple times. Blacks accounted for 95 percent of those who were stopped more than 10 times.
  • Despite the higher rate of stops, officers were less likely to find contraband during searches of blacks than others. For example, during traffic stops and searches, police found contraband in 3.9 percent of blacks’ vehicles, compared to 8.5 percent of others. The report says that this difference suggests that Baltimore Police are more suspicious, and without justification, of blacks than of people of other races.
  • Baltimore police arrested blacks for misdemeanor offenses at a disproportionate rate. For example, blacks accounted for 83 percent of 6,500 arrests for disorderly conduct.

Read on.

Update: Baltimore police have fired some officers in the wake of a scathing review by the U.S. Department of Justice.

Fired Deutsche Bank Manager Claims Superiors Approved Deal Lists

  • Morton has sued bank for $17 million saying dismissal unfair
  • Dispute stems from payments made to Chinese joint venture

A former Deutsche Bank AG executive who’s suing the firm for unfair dismissal is arguing in court that the payments to a Chinese joint venture which got him fired were based on approvals by other top managers in Asia.

Douglas Morton, who was a managing director in Hong Kong, has alleged in the city’s High Court that senior executives including the co-head of the Asian corporate banking and securities unit at the time approved two lists of deals that formed the basis for revenue sharing payments made to Zhong De Securities Co. in 2013 and 2015, his lawyer at Robertsons Solicitors said.

Morton, 52, is seeking HK$135.3 million ($17 million) for unfair dismissal in a claim filed with Hong Kong’s labor tribunal in April. He has also filed a separate suit against Deutsche Bank seeking a declaration that he didn’t act improperly in signing off on the payments to Zhong De. Morton, a former co-head of Asia corporate finance, was fired for negligence because of his involvement in two deal lists which allegedly contained false information, according to internal bank documents seen by Bloomberg.

At issue is whether Morton was unfairly singled out over payments totaling 4.6 million euros ($5.1 million) to Zhong De. Morton alleges the transfers partly stemmed from efforts by senior Deutsche Bank management to keep the joint venture from posting losses for 2012 and 2014, his lawyer said. An internal Deutsche Bank investigation revealed that Zhong De was compensated for at least one transaction it didn’t work on, people familiar with the matter told Bloomberg last year.

Read on.

From Wall Street to Sing Sing

The Bernie Madoff of his time, Richard Whitney had tasted glory in 1930 as the youngest president ever of the New York Stock Exchange.

The most prominent Wall Streeter-turned-jailbird emerged from Sing Sing 75 years ago this week, in 1941. In raw dollar figures, Richard Whitney’s financial folly fell far short of Bernie Madoff’s—a few $100,000s (in 1930s dollars), here and there, a mere drop in the latter’s Ponzi bucket of billions. But Whitney was much better known on the public stage long before he went to the pen.

A Boston-bred blue blood whose youthful pedigrees included Groton and Harvard’s Porcellian Club, Whitney bought a New York Stock Exchange seat at age 23. He was elected to the NYSE board of governors in 1919. In 1930, at age 41, he became the youngest president in the exchange’s 138-year history.

Read on.

Liberal Groups Push Clinton To Reject Appointments From Wall Street

The organizations are trying to stop “the revolving door between private industry and government.”

 

An alliance of 15 progressive groups is pressuring Democratic presidential nominee Hillary Clinton to keep people connected to Wall Street out of her transition team and the White House if she wins the November election.

The organizations, several of which backed Bernie Sanders in the primary race, urged Clinton to select “proven policymakers whose commitment to the public interest is unimpeachable to lead your transition efforts.” They wrote to Clinton in a letterWednesday they provided to Bloomberg Politics that “personnel is policy” and that “too many Wall Street executives and corporate insiders have traveled through the revolving door between private industry and government.”

The groups—which include MoveOn.org, Democracy for America, and the Communications Workers of America—said rejecting people with Wall Street connections would demonstrate Clinton is serious about her promises, such as opposing the Trans-Pacific Partnership trade accord and further tightening regulations on the financial industry.

“Moreover,” they wrote, “we urge you to publicly state that, should you win the presidency, you will appoint personnel from backgrounds in public interest advocacy, academia, and public service to influential positions within your administration, rather than merely drawing from the usual set of corporate insiders.”

Read on.

Deutsche Bank, WMC Settle $1B Mortgage Pool Suit

Law360, New York (August 10, 2016, 2:48 PM ET) — Trustee Deutsche Bank National Trust Co. has asked the Second Circuit to pause an appeal of its suit accusing WMC Mortgage LLC of misrepresenting some $1 billion in bundled mortgages, saying the companies have reached a settlement.

Deutsche Bank was appealing a New York federal judge’s decision to toss the bank’s claims that WMC made misrepresentations about the quality of residential mortgages it sold in 2006 as part of a $1 billion pool. Both parties on Tuesday asked the Second Circuit to pause the appeal while…

Source: Law360

BREAKING: Jury Convicts CEO Accused Of $100M World Trade Center Contract Fraud

Law360, New York (August 10, 2016, 2:39 PM ET) — A Manhattan jury on Wednesday convicted DCM Erectors CEO Larry Davis of fraud, finding that the Canadian contractor deceived New York and New Jersey officials by using associates to make it look like work on a World Trade Center skyscraper and transportation hub was being done by women- and minority-owned contractors.

Jurors needed just 3.5 hours after a seven-day trial in front of U.S. District Judge Loretta A. Preska to deliver the verdict. Davis was charged in 2013 of conspiracy and fraud along with his company,…

Source: Law360