On the eve of the first G-20 summit since the global financial collapse, SEIU has a new report measuring the severe impact the economic crisis has had on working families. The report breaks down not just the cost of the bailouts, but also the (much, much bigger) associated costs that came along with them.
Here are some of the astounding highlights:
- Taxpayers have committed $4.7 trillion to the financial sector over the last year--only $700 billion of that $4.7 trillion was through TARP.
- The bank-induced economic crisis has cost American families $11 trillion in wealth in 2008, nearly 18% of their net worth.
- Americans have lost $6.1 trillion in homeowner wealth since June 2006.
Even banks like Goldman Sachs that returned their TARP funds earlier this year continue to benefit from other bailout programs, such as the $12.9 billion that Goldman received as an AIG counterparty that it will never have to pay back.
Meanwhile, banks continue to...
- Pay themselves millions in bonuses: the nation's top six banks paid out $31.2 billion in bonuses this past winter.
- Set aside $$ for future bonuses. In the first half of 2009 alone, banks set aside another $74.4 billion for bonuses and compensation--an amount alone that would solve the budget shortfalls in 15 states, including California.
- Make excessive profits on the backs of consumers: banks continue behaviors such as refusing to modify mortgages to prevent foreclosures and reducing their small business lending--they actually now give out less money than they did before their TARP infusion.
- Gouge us on overdraft fees. Americans will pay more than $38 billion in overdraft fees alone in 2009, more than $125 for every man, woman, and child in the United States.
The worst part? Big banks and other financial institutions aren't merely back to their old tricks and the same practices that caused the crisis in the first place--they're actually standing in the way of real reform that would protect consumers and prevent a future crisis.
Companies in the financial, insurance, and real estate sector spent $321 million lobbying against federal reforms such as:
- The creation of the Consumer Financial Protection Agency
- Limits on bonuses
- Loan modification proposals that could help keep millions of Americans in their homes,
- And the Employee Free Choice Act--which would provide a much-needed check on corporate power by giving workers a real voice in the workplace.
Read and download the report here:
"We now understand that the actions of a small group of greedy CEOs and Wall Street investors can wreak havoc on the global economy, yet we still haven't taken the necessary steps to prevent a future crisis," said SEIU Secretary-Treasurer Anna Burger at a briefing to release the report. At noon tomorrow, outside a secret meeting of the Financial Services Roundtable at the Mandarin Oriental Hotel in Washington, D.C., workers and community groups will kick off a month of actions in more than two dozen cities across the country.
Download the report here: The Trillion Dollar Bank Job: How Wall Street and the Big Banks Are Holding Up America's Economic Recovery.
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Your report on the historically monstrous fleecing of the middle class (all who subscribe to the work ethic) is entirely warranted. I write not to criticize it but to add a few points. The fleecing includes the Federal Reserve devaluing the dollar to 3% of its 1970 worth, while intentionally deceiving the middle class of its intentions and feeding insider tips to Wall Street. Wall Street owns Congress and federal agencies, which permitted manipulation of the oil price above 3X market in 2008, crashing the U. S. and global economies. Collapse in share prices was caused by rampant fraud in trading - ignored by the SEC - and naked short sellers profited immensely as Paulson at Treasury destroyed share prices of Bear, Fannie, Freddie, Lehman and others. Paulson was CEO of Goldman Sachs and was endorsed by Senator Schumer of New York on the day he was nominated by George W. Bush in 2006. Now, the Obama administration includes Wall Street's top choices in every post important to finance and the economy. Nothing has been done to stop the rampant financial fraud. Wall Street still owns the federal government, and is using that power to rob the middle class blind. This must be stopped.
I must add one point. The health-care legislation is designed by elitists to place population growth controls on the middle class. The "public option" would play the role of a non-union, low-cost provider which would destroy union negotiated health care plans by undercutting them. In the 1970's, I warned the building and construction unions that the ERISA treatment of pension trusts to create government-computed liabilities on employers would drive construction work into non-union hands. This health-care move is as bad or worse for middle class, particularly those in unions. Thank you for your report.
It amazes me that you think you have a right to complain about wall street and the bailouts! The SEIU gave Obama $35,155,663 dollars so he could make sure wall street got bailed out! I bet 80% of the people who payed SEIU dues dont even realize they put a communist socialist into office, do they! And healthcare, thats a joke! Who do you really think its going to benefit? Not the people that pay SEIU dues thats for sure. Wake up people.......Its Hitler all over again!
Thank you to the above commentators, but I have to take issue with the Hitler comparison TexasLady. Unless Barack pushed millions of his fellow human beings into the gas chamber, calling him Hitler is going too far. Admedinejad is more like a wannabe Hitler, with his strutting around on the world stage saber rattling and his denial of the Holocaust--while plotting a new one. You know, Admedinejad, Barack's friend. The guy he invited to the white house for a Fourth of July bbq. You know, Admedinejad, the guy who sends Al Qaeda into Iraq to attack American troops and keep the country unstable so he can invade. You know, Admedinejad, the terrorist leader, the Muslim fanatic dictator who civilized nations avoid like the plague, who Barack was indignant about not meeting with during the Presidential debates. I'll never forget watching a man running for President of the United States of America on tv saying "It is an OUTRAGE that we have not met with Iran."
Before you "open-minded citizens of the earth" rush to explain that "He was only trying to be diplomatic. Bush caused the war and US aggression causes terror. Don't you think trying to talk things out is better than having more wars?" I submit the following:
1. Why did no other candidates, including those on the left, NOT take Barack's position? Because entertaining a discussion with a person like that WITHOUT preconditions would serve to legitimize his evil regime and defeat the purpose of negotiating concessions, not to mention that he is not deserving, he is the scum of the earth. (If you think that is "hateful" than you are totally brainwashed, the man is a Charles Manson with an army.)
2. Barack's "diplomacy" did not and could not work. They are not interested in an issues based debate. They want to destroy you, our way of life, and topple the West. I know the Daily Show and Colbert insist that that is "fear-mongering propaganda from Bush/Cheney" but they are wrong, they are lying to you. The War on Terror is real and you need to get that through your head.
It did not work because Bush is out of office and we still have terrorist attacks, like the plot to blow up Americans on own soil intercepted last week that hopefully you are aware of.
It could not work because if the man who aspired to lead the free world would have taken the time to read a history book, he would have known what the other candidates did, that the Arab countries have broken every single peace treaty with the West and take kindness for weakness: that's their culture. They couldn't and do not respect Barack, you are living in a fantasy world is you think he can charm the terrorists like he did the public. His vaunted "Speech to the Muslim World" was a flop. Immediately following it they became even bolder with their terrorizing of innocent people who don't fit their fanatical belief system Why? They take kindness for weakness, that is their culture and it disproves the "Americans create terrorists" liberal talking point that Barack was spewing again just yesterday. The reality is that terrorism is not a desperate lashing out of a downtrodden people against foreign invaders, but in fact a calculated system to gain political concessions by brainwashing religious fanatics into scaring groups of people into making concessions, such as giving them aid or land: extortion. Barack is either willfully ignorant of this sad fact or complicit.
As for the fleecing of Wall Street, yes, it is true. So, all you liberal extremists cannot rebut criticism of the SEIU/Barack/ACORN fleecing cabal with "What about Wall Street? What about Enron?" I am an independent voter not a republican, and republican's do not go around defending Enron the way extremist liberals go around defending ACORN. ACORN was engaged in child prostitution. They are indefensible. Andy Stern was involved and if you don't believe me, do your homework. Congratulations to who ever read that fact before it got deleted but if you don't believe me, look it up.
They don't care about "fighting corporate greed," it is merely a flashpoint. This is the most corporatized union in America and they are our business partners, not the enemy. Corporate greed is running rampant and needs to be checked. It is an attention grabber for good-hearted idealists who grew up in the 80s and 90s, when many feature films depicted corporations and real estate developers as the villain characters. That being said, I think those greedy pigs at Enron should be tarred and feathered.