2016 Postmortem
Related: About this forumMartin O'Malley Releases Scathing Open Letter to Wall St.: 'I Will Not Let Up On You'
Last edited Thu Jul 9, 2015, 10:04 AM - Edit history (1)
"I know that many of you have tried to dismiss and undermine my calls for stronger reforms as 'anti-capitalist.' Let me be clear- the ongoing reckless behavior of your megabanks isnt capitalismits the antithesis of it," O'Malley wrote. "True capitalism requires a level playing field on which everyone plays by the same set of rules. True capitalism requires competition. True capitalism means that just as businesses and banks can succeedthey can also fail."
In his letter, O'Malley describes the "megabanks" as an "grave threat" to the US economy with executives that are "somehow classified as too big to prosecute and too big to jail."
"Today, yourtoo-big-to-fail, too-big-to-manage, and too-big-to-jailmegabanks pose an enormous risk to the financial system, the economy, and American families. They are so big and so interconnected with the entire financial system that the failure of one or more of them could cause the collapse of the entire U.S. economy," O'Malley wrote.
According to his deputy campaign manager Lis Smith, on Thursday, along with the letter, O'Malley will release a "detailed Wall Street white paper that continues in mold of O'Malley leading with bold, progressive policy agenda."
read: http://www.businessinsider.com/martin-omalleys-open-letter-to-wall-street-2015-7
FROM: Governor Martin OMalley
DATE: July, 9 2015
As you may have read, Ive expressed grave concern about the state of our national economy, especially as it relates to the behavior of a select group of financial institutions on Wall Streetthe institutions that you work for and represent. I have called for significant structural and accountability reformslike reinstating Glass-Steagall and increasing enforcement at the SEC, DOJ, and other agencies and departmentsto prevent another economic crash and protect hard-working families from losing their jobs, homes, and life savings once again.
Most of our financial system works quite well. Of the almost 6,500 banks in our country, most of which work hard every day to serve their communities, just 29 have more than $100 billion in assets and only four have more than $1 trillion in assets. The high-risk, reckless, and illegal activities of your megabanks were the primary cause of the 2008 crash, which caused the worst recession since The Great Depression, and cost the American economy an estimated $14 trillion to $22 trillion.
I know that many of you have tried to dismiss and undermine my calls for stronger reforms as "anti-capitalist." Let me be clear- the ongoing reckless behavior of your megabanks isnt capitalismits the antithesis of it. True capitalism requires a level playing field on which everyone plays by the same set of rules. True capitalism requires competition. True capitalism means that just as businesses and banks can succeedthey can also fail.
Today, yourtoo-big-to-fail, too-big-to-manage, and too-big-to-jailmegabanks pose an enormous risk to the financial system, the economy, and American families. They are so big and so interconnected with the entire financial system that the failure of one or more of them could cause the collapse of the entire U.S. economy.
After several misguided deregulatory measures taken in the 1990s, your handful of megabanks went from having assets of approximately 15% of our countrys GDP to now having assets of nearly 65% of our GDP. As your megabanks grew in size, who gained from it? Credit card fees didnt get smaller. Mortgage rates didnt go down. The median wages of Americans certainly didnt increase. The only tangible gain weve seen from your institutions explosion in size is your ability to concentrate unprecedented power and wealth in the hands of your executives and to acquire the guarantee that all of your risky bets will be covered by taxpayers.
Now, because your institutions are so large, so leveraged, and pose such a grave threat to our economy, you dont face the same rules of the free market that apply to everyone else. If your bets go bad, you dont face bankruptcytaxpayers bail you out. When things go well, the upside is all yours and you get to cash in exorbitant bonuses. This violates the very principle of free market capitalism.
For similar reasons, both your megabanksand your executiveshave been somehow classified as too big to prosecute and too big to jail. Exacerbating the problem, our financial regulation system is defined by conflicts of interest and a lucrative revolving door. Former financial executives are hired to regulate their former colleagues and, when they leave for government, theyre given golden parachutes. Then, they turn right around and return to the firms they were supposed to be regulating.
All of this explains why, when laws are broken, you and your institutions get off with nothing more than a slap on the wristfines paid by shareholders that you can write off as nothing more than business expenses. No admission of guilt, no one faces jail time, everybody keeps their jobs -- back to bonuses as usual.
As President, I would end this double standard of justice. It is bad for our economy, and it is bad for our country.
A strong American economy depends on a strong, financial industry that plays by the rules. And among the greatest victims of your megabanks have been the thousands of community banks that are the backbone of our economy. These banks provide the financing for the American Dream of homes, businesses, educations, and secure retirements. Yet theyre forced to compete on an un-level playing fieldone where they bear the brunt of declining credit and wagesand where megabanks are rewarded with subsidies and bailouts.
So heres the bad newsfor you: As President, I have no plans to let up on you. Ill work tirelessly to eliminate the unique danger posed by the handful of too-big-to-fail banks. And while Im doing that, Ill finally bring real enforcement and oversight to the federal governmentto agencies and departments like the Department of Justice, Security Exchange Commission, Federal Reserve, Commodities Futures Trading Commissionso that they start doing the job the American people expect them to do and stop sitting on their hands.
If youand your megabankswhich we, the American taxpayer, saved want to begin to restore the confidence in your leadership, you need to start by saying two things: "were sorry" and "thank you."
Then, you have to do the right things: stop your war on financial reform, start following the law, and end your highest-risk, most dangerous activities so that your megabanks are in fact no longer too-big-to-fail.
read: https://martinomalley.com/dear-wall-street/
related:
OMalley to call for Wall Street reforms, breaking up big banks in latest policy initiative
http://www.washingtonpost.com/blogs/post-politics/wp/2015/07/09/omalley-to-call-for-wall-street-reforms-breaking-up-big-banks/
Gov. Martin O'Malley: Prevent another crash, reform Wall Street (March 19)
http://www.desmoinesregister.com/story/opinion/columnists/caucus/2015/03/20/prevent-another-crash-reform-wall-street/25057735/
Send Your Own Message to Wall Street! Annotate This Letter...Highlight text on site page (using Genius -sign up req.) and add your own comments.
*read Martin O'Malley's 10-page plan*: http://martinomalley.com/wp-content/uploads/2015/07/OMalley-Wall-Street-Reform.pdf
(http://www.democraticunderground.com/1251433142)
FSogol
(45,595 posts)bigtree
(86,021 posts)"O'Malley plans on burying his fellow opponents in piles of good policy"
Romeo.lima333
(1,127 posts)JustAnotherGen
(32,046 posts)kenfrequed
(7,865 posts)Bernie has a history of going after the banks time and time again.
I won't speak about Hillary on this score.
JustAnotherGen
(32,046 posts)I'm not fan of Clinton. She's said lots of things (Do an advanced search of LiberalStalwarts posts) where she sure had a lot of fun making race based attacks on Obama in 08 - but now . . .
She's going out to Jennifer Meyer Maguire's house in Brentwood CA to give lots of pretty speechs at $2700 a head cocktail and canapé parties.
It's just a different load of bullshit.
We Need Smith and No Labels. That's my story and I'm sticking to it.
kenfrequed
(7,865 posts)I was speaking more about Bernie's record with the banks which is fairly solid.
I wasn't directly talking about Hillary. I really am not a fan of Hillary either and I have serious questions about a candidate cashing Wallstreet checks on Tuesday being able to go after them on Thursday.
As to whether or not Hillary went after Obama in some kind of racial way back in '08 I think I might not have noticed it. I am not saying it didn't happen, I just wasn't aware of it. I was spending a bit of time groaning and rolling my eyes while supporting Kucinich.
I don't know about the Brentwood crowd. I always took them to be more Hollywood than anything else. But we are dealing with the wealthy there too.
I think we probably agree on a lot more than we disagree.
BeyondGeography
(39,395 posts)The combination of O'Malley and Sanders should lead to some very interesting debates for the frontrunner. And when people see there isn't much substantive policy daylight between the two to the left of O'Malley, he will gain.
bigtree
(86,021 posts)...very promising!
InAbLuEsTaTe
(24,128 posts)elleng
(131,415 posts)and learn all about him!
http://www.democraticunderground.com/?com=forum&id=1281
JustAnotherGen
(32,046 posts)bigtree
(86,021 posts)...right on!
JustAnotherGen
(32,046 posts)One thing I can wait on - wait for him to be in office because there's no time during this Administration - and President Obama has done a lot for us . . .
Re Competition - I'd like to see the Post Office being used as bank for small banking customers. I'd also like to see it be a place for currency exchange (tends to be 90-100% traveling abroad).
I think Glass Steagall is a good start.
But shutting down predatory payday loaners once and for all - would be a good thing. You don't have to shut them down - you just have to give people who work for every single penny - and NEED every single penny an alternative. When they see that maybe there's a $2 administrative fee at the Post Office - they'll start going there.
From the biggest of the big on down - there is a need for extreme oversight and alternatives for consumers.
bigtree
(86,021 posts)...well thought out and extremely compelling!
Thanks for sharing that!
dembotoz
(16,866 posts)Feeling the Bern
(3,839 posts)Go after the banksters. Populism works, people!
bigtree
(86,021 posts)"Go after the banksters. Populism works, people!"
JustAnotherGen
(32,046 posts)He wants to leave your Credit Union alone.
He wants to leave your local regional bank alone.
He wants to leave the boutique venture capitalists alone (critical for funding to minorities and women passion projects).
He wants to go after the RIGHT ones who put every other functional type in the financial ecosystems at risk - as well as the individual tax payer.
CU's, regional banks, boutique v.c.'s - they want to serve their customers and find ways for the small business entrepreneur to get where they are going.
Feeling the Bern
(3,839 posts)Bankers rate lower in my eyes than drug dealers and pimps.
As Woody Guthrie said:
"Yes, as through this world I've wandered
I've seen lots of funny men;
Some will rob you with a six-gun,
And some with a fountain pen.
And as through your life you travel,
Yes, as through your life you roam,
You won't never see an outlaw
Drive a family from their home."
hifiguy
(33,688 posts)with THEIR OWN MONEY and not with federally guaranteed assets. No problems with them. The top dozen-plus financial giants have to be broken up and/or cut off at the knees.
I like everything O'Malley is saying.
JustAnotherGen
(32,046 posts)But I do know - that after the reimplementation of Glass Steagall we need to be able to hold individual employees responsible when the wrong thing is done.
Caveat - I have 5 things in my Wheelhouse at work if you will - and one is import/export control.
If I allow a functional group to issue us funds to a BIS list entity or individual - ie they get my approval - everyone on that email chain is going to be prosecuted, fined, and at minimum put under house arrest for 6 months.
If allow our white glove service to ship a warranty or insurance device to an address on the OFAC list in Spain (High place for us citizens to travel abroad) - I'm going to jail.
My point -there is individual accountability TODAY for employees of companies that import/export everything from wireless antenna base stations to ball point pens.
We need that. We need people to know that if you willingly engage in that activity you are personally going to have the gates of legal hell rained down upon you.
Ed Suspicious
(8,879 posts)doesn't light my world on fire there either. Bernie has a long long track record, O'Malley's track record is far less well known to me. In almost every other measure besides drug policy, I am where Bernie is. O'Malley is not far off. Both are miles better than the front runner in my view.
I would be happy to package them up as President and Veep. Order is not completely important.
Feeling the Bern
(3,839 posts)Darb
(2,807 posts)He makes a good case without putting a big red target on his back.
bigtree
(86,021 posts)...very policy-oriented criticisms from my former governor.
I think it will resonate, as well!
jtuck004
(15,882 posts)FSogol
(45,595 posts)jtuck004
(15,882 posts)They aren't owned.
That would be like owning Ebola, or a serial killer.
rurallib
(62,483 posts)was actually just talking to an O'Malley staffer about this yesterday. This is a major concern of mine.
I know he has come out on Wall Street before, but I believe this is his strongest message yet. Liking him a lot.
bigtree
(86,021 posts)...on his earlier offensive against big banks and their Wall St. cohorts.
Even at the level of this latest offensive, I don't think we've seen his top on this.
americanrabbit
(27 posts)to Bernie.
raouldukelives
(5,178 posts)They are defending socialism for "corporate people" over people. They are defending ignorance of reality & science, they are defending whitewashing our history and destroying education, they are defending wars for profit and the militarization of our police forces, they are defending, with every dollar, the right of more for them, today, at the cost democracy, at the cost of everything, for everyone, forever.
There is no tragedy too extreme, no violence too unacceptable, no future too bleak, to dissuade the greedy from investing in, assisting in and enjoying the fruits of hell on earth.
libdem4life
(13,877 posts)with it, you can be blessed with superior intelligence to earn it, you can find the fire in the belly to demand it, but that leaves the rest to work for them. There must be worker bees. How they are organized and treated and paid, aka the Middle Class, which has been an intresting social experiment, depends on the benevolent nature of the Monied Class and government supervision/regulation/oversight.
That's what has been changing. Capitalism evolves into Oligarchy and then Tyranny, unless another social experiment intervenes. That's where we are now. Pray for Bernie, because I believe he's our last chance to literally ""go backwards" and reinvigorate the middle class with union benefits, sick days, Medicare for all, minimum wage...socialist things like that from the New Deal...and they are socialist. Just like libraries, fire services, police services, K-12 education, insurance et all. All are Socialism.
Not just the Social Democratic European format...right here in the good ol' USA.
elleng
(131,415 posts)with which it IS possible.
libdem4life
(13,877 posts)will reach its human depravity. Cars can go 150 mph, but safety laws say only 70, give or take. Politicaly, Aristocracy or Dictatorship is "natural" the fortunate few ruling/pillaging/killing/ et al everything else until serfdom results.
fbc
(1,668 posts)yeah I'm not voting for him for anything, ever.
Octafish
(55,745 posts)Guy's got heart and brains and puts them to work for ALL, a real Democrat, in other words.
bigtree
(86,021 posts)...from your keyboard to voters' ears.
elleng
(131,415 posts)for stronger reforms as 'anti-capitalist.' Let me be clear- the ongoing reckless behavior of your megabanks isnt capitalismits the antithesis of it."
libdem4life
(13,877 posts)elleng
(131,415 posts)Sheepshank
(12,504 posts)Sheepshank
(12,504 posts)d_legendary1
(2,586 posts)I'm gonna do my due dilligence and seek out who this guy is. I'm still hopeful for a Sanders-Warren ticket but this guy is sounding good too.
elleng
(131,415 posts)d_legendary1
(2,586 posts)elleng
(131,415 posts)red dog 1
(27,935 posts)K&R, thanks for posting.
Sunlei
(22,651 posts)bigtree
(86,021 posts)...first, by ending a practice that allowed payday lenders to bypass Marylands interest rate cap on short-term loans. The bill prevented credit service companies from charging a fee for arranging short-term loans to consumers if the fee, when combined with the interest rate, would exceed the states 33 percent interest rate for loans under $6,000. Lenders were charging over 600 percent annual interest, far in excess of Marylands legal limit of 33 percent. He also cracked down on payday lenders attempt to act as credit repair agencies. State regulators had already shut down storefront payday loan centers.
In 2007 Governor OMalley created the Homeownership Preservation Task Force to fight foreclosures with legal and regulatory reforms and legal assistance networks helping qualified borrowers get relief through a loan modification and provide an independent party to help both sides come to a resolution.
For homeowners who continue to be proactive, work in good faith and stay in touch with their lenders, this program is a valuable tool as they try to resolve their situation. This legislation will help keep more Marylanders in the homes they worked hard to purchase, said Governor Martin OMalley. These new protections empower our fellow Marylanders, putting them on a more equal footing with mortgage companies that too often cant be bothered to pick up the phone before beginning a foreclosure proceeding against a Maryland family. If a mortgage giant can pick up the phone to put a family into a home, they should be expected to pick up the phone before they throw a Maryland family out of a home.
Maryland became the second state after California to institute emergency regulations requiring loan servicers to provide detailed data to the state government about homeowners with adjustable rate mortgages that are about to reset to higher interest rates. This allows the state to identify residents facing default and foreclosure and help them avoid losing their homes.
elleng
(131,415 posts)Sunlei
(22,651 posts)'mega banks' he mentioned as the worse, 'to big to fail'?
bigtree
(86,021 posts)The document references JPMorgan Chase & Co., Bank of America Corp., Wells Fargo & Co., Citigroup Inc. and U.S. Bancorp as the five biggest banks
Sunlei
(22,651 posts)I wish more banks were allowed to open and there was some competition for our business. A couple years ago Post Office banks were mentioned.
bigtree
(86,021 posts)...fantastic idea, I think.
Sunlei
(22,651 posts)with all the consumer protection legislation they were advocating. About the time Mrs. Warrens consumer protectionDOTgov website opened. Haven't heard anything more about the post office bank idea.
We only hear about republicans blocking what they can of the crappy 'consumer protections' we Americans have.
I can't even pay a kid for a task by check, because Chase bank will take a $6.00 fee for the kid to cash a $30 check. The fee is even higher at all the 'we cash checks' places.
Hotler
(11,484 posts)"Now is not the time to point fingers." So much hope and yes we can.
Good for you Mr. O'Malley.
elleng
(131,415 posts)Koinos
(2,792 posts)And yet, well worked out and highly detailed.
He is saying that the big banks are an affront to capitalism, that they have undermined the principle of free and fair competition, that (my own interpretation) unregulated greed is not what Adam Smith had in mind.
He is not calling for the destruction of capitalism; he is calling for the reform of capitalism.
He is saying that not all banks are evil, and he is implying that not all corporations are evil.
Regional and community banks are good. Big banks which regard themselves as "above the law" are bad.
What I like about O'Malley is that he is thoughtful himself and gives us lots to think about.
His ten-page plan is thorough and well thought out.
His direct attack on the big banks is courageous. O'Malley pissed them off early on:
Fox Business Network correspondent Charles Gasparino claims a lot of his sources have been talking about Martin OMalley since the former Maryland governor launched his White House bid on Saturday. And Gasparino says Wall Street is angry with the Democratic presidential candidate.
Martin OMalley is now like, I would say persona non grata public enemy number one in in the halls of Goldman Sachs, in the halls of Black Rock, the big money management firm. All throughout Wall Street right now, Gasparino said in an appearance on Fox Business on Tuesday.
http://investmentwatchblog.com/need-to-know-omalley-becomes-wall-streets-public-enemy-no-1-bill-to-give-secret-address-to-health-insurers-hillary-in-trouble-and-why-she-cant-run-on-her-state-department-record/
elleng
(131,415 posts)Seen his interview with Chris Hayes? SUPER!
Koinos
(2,792 posts)He came on strong and pulled no punches with the big banks and Wall Street!
elleng
(131,415 posts)Hayes said he wants to interview him again, re: criminal stuff. I look forward to that, to lay a foundation on that issue and other urban matters.
rpannier
(24,350 posts)Lot of good points and ideas
I was skeptical but am becoming more impressed
I noted in an earlier thread about O' Malley, 'I think as more people start to get interested, I think O' Malley's numbers will pick up.'
I think he'll be a player come next winter and spring.
It'll be interesting to see how it all transpires
If he gets the nomination, I'd vote for him with little hesitation
Scuba
(53,475 posts)bigtree
(86,021 posts)...that he was a 'hedge funders boy.'
That post was desperate political tripe.
Buns_of_Fire
(17,217 posts)madokie
(51,076 posts)two things is right, "We're Sorry and Thank You" would go a long way. Providing its from the heart and not just lip service. the way to know the difference is how they act after they say that.
Bernie is my main man, Martin is a close second. Just so's you know
Andy823
(11,495 posts)bigtree
(86,021 posts)...I was just looking for this to kick it up.
Thanks, Andy!