Daily Archives: June 3, 2017


Wells Fargo Refused To Criticize Trump On Climate Because The Bank Is Already Hated

Jennifer Dunn, Wells Fargo’s spokeswoman in Washington, D.C., says the Operating Committee, a group of the company’s top executives who manage the firm’s day-to-day business, wanted the bank to shy away from public positions on political issues.

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What about Bank of America? The bank signed letter with 30 other companies backing Paris pact, but stays quiet after Trump’s withdrawal.

Blankfein? Not happy:

And Dimon? Not happy about Trump exiting the Paris pact but he is standing by his man:

Though JPMorgan CEO Jamie Dimon says he totally disagrees with President Trump’s decision to withdraw the United States from the Paris climate agreement, the bank head is breaking with other corporate leaders by remaining a councilor to the White House.

“I absolutely disagree with the Administration” on its choice to pull out of the landmark accord on climate change, Dimon said in a statement Friday, “but we have a responsibility to engage our elected officials to work constructively and advocate for policies that improve people’s lives and protect our environment.”

Tough On Crime?: Sessions’ DOJ Drops Antitrust Case Against AmEx, But 11 States Press On

Attorneys general from 11 states filed a petition Friday afternoon asking the U.S. Supreme Court to review their case against American Express Co., which centers on whether the card company can ban merchants from encouraging consumers to use cards that run on competing networks, like Visa and Mastercard.

Also Friday, the Justice Department said it won’t ask the Supreme Court to review its antitrust case against AmEx. “We believe the DOJ’s decision not to proceed sends a strong signal that this seven-year litigation should come to an end,” an AmEx spokesman said in a statement.

Ohio is the lead state in the 48-page states’ petition and is joined by Connecticut, Idaho, Illinois, Iowa, Maryland, Michigan, Montana, Rhode Island, Utah and Vermont

AmEx card policy says merchants that choose to accept AmEx cards can’t steer consumers into using cards on other networks.

Read on.

Situation exacerbated: Wealthy people and business owners are delaying paying their taxes in anticipation of cuts

Wealthy Americans and business owners are putting off paying taxes in the hopes that Republicans will deliver big cuts, leaving the government increasingly short on cash and accelerating its crash into the debt ceiling.

Federal data and anecdotes from tax advisers reveal that a significant number of taxpayers are postponing cashing out on investments and other financial decisions, hoping to pay less later if the White House and congressional Republicans pass a huge reduction in tax rates.

The Treasury Department had $177 billion in its cash account as of Tuesday, a cash pile that it is drawing down because the government is limited in how much it can borrow by the debt ceiling.

Monthly swings can be immense. In March, for example, the government brought in $217 billion in new revenue but spent $393 billion, including $79 billion for Social Security, $75 billion for Medicare and $30 billion in interest on the debt.

Read on.

The Bankers Behind the Financial Crisis Actually Got Promoted

Millions lost their homes and jobs, and not only did the bankers not go to jail, most of them got new and better gigs, according to a new study.

By now it’s well known that no senior bank executives went to jail for the fraudulent activities that spurred the financial crisis. But a new study shows many of the senior bankers most closely tied to pre-crisis fraud didn’t suffer one bit in the aftermath. They mostly kept their jobs, enjoying the same kinds of opportunities and promotions as their colleagues.

Worst of all, the most plausible explanation the researchers came up with for why senior management didn’t fire the people who blew up the economy is that they didn’t want to admit their own failure as bosses. And if nobody on Wall Street is willing to see the problem, and the Trump administration is stocked with bankers and corporate cheerleaders, you can bet fraud will continue to shift into other products, harming consumers and investors while executives look the other way.

The study comes from John Griffin and Samuel Kruger of the University of Texas-Austin, and Gonzalo Maturana of Emory University. They tracked 715 individuals involved in issuing residential mortgage-backed securities (RMBS) from the key housing bubble years of 2004 to 2006, including the senior managers who actually signed off on the deals.

Read on.