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Friday, 14 September 2018 22:08

On 10th Anniversary of Wall Street Crash, Warren Says: Break Up the Banks and Jail the Bankers

Written by Jake Johnson | Common Dreams
Protesters join the March on Wall Street Rally in New York City on April 29, 2010. Protesters join the March on Wall Street Rally in New York City on April 29, 2010. (Photo: Jens Schott Knudsen/Flickr/cc)

To avoid another crash, the Massachusetts senator says the U.S. must "force law-breaking bankers to trade in their pinstripe suits for orange jumpsuits."

With Saturday marking the tenth anniversary of the collapse of Lehman Brothers and the start of the worst financial meltdown since the Great Depression, Sen. Elizabeth Warren (D-Mass.) declared Thursday night that the only way to avoid another crisis is to break up the Wall Street banks that caused it and hold wealthy executives accountable for their crimes.

"Oh, yeah. Give me a chance," Warren said when asked by Andrew Sorkin of the New York Times if she still supports breaking up big banks, many of which are far larger than they were before the 2008 crash.

"We have got to change the rules," Warren declared, highlighting her effort to implement a 21st century Glass-Steagall Act to separate commercial and investment banking. "This Congress rolling back regulations on the biggest financial institutions, rolling back regulations on Wall Street, this is absolutely the wrong direction for us to go."

Asked if the United States is prepared for another crisis—which a bipartisan deregulatory measure passed in March makes far more likely—Warren responded: "No, not even close."

In addition to pushing for stronger safeguards against big bank speculation, Warren also argued in a tweet on Thursday that "we need to start holding Wall Street executives accountable" if we are to avoid another crash.

Far from being held accountable for their actions, former Lehman Brothers executives and staffers are reportedly holding a ritzy tenth anniversary get-together on Saturday to celebrate the anniversary of their firm's collapse.

"I introduced the Ending Too Big to Jail Act to force law-breaking bankers to trade in their pinstripe suits for orange jumpsuits," Warren said, highlighting legislation she unveiled in March.

Warren's warning about the vulnerability of the American financial system and renewed call to break up the big banks were echoed by progressive commentators, lawmakers, and journalists ahead of the official tenth anniversary of the crisis—which, for most Americans, never actually ended.

As Rolling Stone's Matt Taibbi noted in a crisis retrospective on Thursday, the overwhelmingly "poor, nonwhite, and elderly" victims of the crash have been neglected by much of the corporate press in favor of heroic-sounding narratives of bankers teaming up with regulators to save the financial system from total catastrophe.

"Persistent propaganda about what happened 10 years ago not only continues to warp news coverage, but contributed to a wide array of political consequences, including the election of Donald Trump," Taibbi argued. "One of the main things the financial press missed in its countless crash post-mortems is that the subprime scam was significantly about race. In its particulars, it was really just a rehash of ancient race crimes like 'contract selling,' a predatory white-on-black home loan scam from the Jim Crow days."

These scams ultimately had a disastrous impact on black families in the U.S., which lost an astonishing 50 percent of their overall wealth when the system came crashing down.

As The Week's Ryan Cooper has argued, the meltdown was made worse by the fact that the Obama administration—which was stuffed with ex-bankers—deliberately chose to prioritize bailing out Wall Street over assisting homeowners who were devastated by the foreclosure crisis that continues in the present.

Thanks to the Obama administration's bailouts and the Trump administration's massive gifts to Wall Street in the form of tax cuts and deregulation, America's five biggest banks—JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, and Goldman Sachs—have raked in more than $583 billion in combined profits since the crisis, according to a new analysis by Public Citizen published this week.

In an op-ed for USA Today on Friday, Morris Pearl—former managing director of the financial firm BlackRock Investments and now chair of the Patriotic Millionaires—argued that by allowing Wall Street firms to continue to expand and engage in risky betting, the Trump administration is actively heightening the risk of another major crisis.

"In an effort to inflate profits for big banks, the Trump administration and Congress are setting us up for another crash," Pearl concluded. "Without adequate regulation, there's no world in which bankers voluntarily refrain from taking reckless bets again and again, until we're right back where we were 10 years ago."

Link to original article from Common Dreams

 
Read 17158 times Last modified on Friday, 14 September 2018 23:21

Meet the Hosts

Rev. Rodney Sadler

Dr. Sadler's work in the community includes terms as a board member of the N.C. Council of Churches, Siegel Avenue Partners, and Mecklenburg Ministries, and currently he serves on the boards of Union Presbyterian Seminary, Loaves and Fishes, the Hispanic Summer Program, and the Charlotte Chapter of the NAACP. His activism includes work with the Community for Creative Non-Violence in D.C., Durham C.A.N., H.E.L.P. Charlotte, and he has worked organizing clergy with and developing theological resources for the Forward Together/Moral Monday Movement in North Carolina. Rev. Sadler is the managing editor of the African American Devotional Bible, associate editor of the Africana Bible, and the author of Can a Cushite Change His Skin? An Examination of Race, Ethnicity, and Othering in the Hebrew Bible. He has published articles in Interpretation, Ex Audito, Christian Century, the Criswell Theological Review, and the Journal of the Society of Biblical Literature and has essays and entries in True to Our Native Land, the New Interpreter's Dictionary of the Bible, the Westminster Dictionary of Church History, Light against Darkness, and several other publications. Among his research interests are the intersection of race and Scripture, the impact of our images of Jesus for the perpetuation of racial thought in America, the development of African American biblical interpretation in slave narratives, the enactment of justice in society based on biblical imperatives, and the intersection of religion and politics.

Rev. Rodney Sadler

Co - Chair - People Demanding Action
North Carolina Forward Together/Moral Monday Movem
Radio Host: Politics of Faith - Wednesday @ 11 am

People Power with Ernie Powell

Ernie Powell has been involved in public policy, progressive campaigns and grassroots efforts since the mid 1960's. He worked as a boycott organizer with the United Farm Workers from 1968 until 1973. He then became a community organizer in Santa Monica, California involved in affordable housing advocacy while working with others in laying the foundation for one of the most progressive local rent control measures in the country. He organized on behalf of environmental and coastal access and preservation issues in California as well. Beginning in 1993 he served as Advocacy Representative and later as Manager of Advocacy for AARP in California working on national and state issues. He left AARP in 2012 to work as Field Director for the National Committee to Preserve Social Security and Medicare in Washington D.C. In late 2013 he returned to California and started a consulting business. He is a consultant with Social Security Works and is organizing groups nationally to fight for the protection and expansion of Social Security. He also consults with the California Long Term Care Ombudsman Association on issue impacting nursing home reform. He is a frequent author for Zocalo Public Square having just authored a piece on Social Security's 80th Birthday about the early impact of the Townsend Plan in building toward the passage of Social Security. Ernie has hosted two radio shows - the "Grassroots Corner" on "We Act Radio" in Washington D.C.and "the Campaign with Ernie Powell" at Radio Titans in Los Angeles. His focus for over 25 years has been on public policy issues impacting older Americans. He is a nationally recognized expert on grassroots organizing and campaigns. He is 66 years old and resides in Los Angeles, Ca.

Ernie Powell

Radio Host
Social Security Works
Los Angeles

Radio Host - Agitator Radio

Robert Dawkins is the founder of SAFE Coalition, North Carolina located in Charlotte, North Carolina. SAFE Coalition NC is a grassroots community coalition working to build public trust and accountability in NC law enforcement. We believe that critical dialogue, citizen oversight and legislative action are required to design a safe, accountable, fair and equitable system of criminal justice in our state.

Robert Dawkins

Founder
Safe Coalition, North Carolina
Charlotte, North Carolina

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