On Monday, the SEC slapped Bank of America with a $33 million fine for misleading investors on plans to award multi-billion dollar bonuses to Merrill Lynch executives during BofA's purchase of the failed bank. In case people are keeping track...this fine is less than one percent of the $3.6 billion in bonuses paid out. SEC officials say this is the largest penalty ever imposed for a failure to disclose relevant information in connection with shareholder votes.

Bank of America has agreed to settle, without admitting to the charges. The bank also has yet to pay back $45 billion in bailout funds of taxpayer money. "This is further proof that bank executives will do anything to pay themselves bonuses and stick it to taxpayers, shareholders and workers," said SEIU's Stephen Lerner in USA Today .

Wouldn't it be nice if all of us could solve our problems the BofA-way?

As part of their "Morris on Campus,™ Life According to an Upperclassman™" campaign to "educate and empower students to take control of their finances," Bank of America sponsored a survey last summer that found 38 percent of surveyed college-aged students reporting they could use help in managing their money. Four in ten (42 percent) students reported to overdrawing their checking account.

The irony here is almost too much to bear...Bank of America knows a thing or two about spending money they don't have. It's suffice to say that these students (like BofA's promotions poster child Morris) would probably be thrilled to be granted the same pardons as BofA. Imagine what that scenario would look like if we all lived under the same skewed logic BofA decision makers seem to be adhering to..."I owed thousands and thousands in student loans but walked away after earning my college diploma owing just 1 percent!" The same goes for the millions of people who owe money to their credit card companies. Or their health insurance companies.

Christmas come early? News reports today suggest that this latest failure by Bank of America could be setting the stage for CEO Ken Lewis's departure. In spite of all the hurt they've heaped onto our economy, there's really been no holding banks accountable for their shortsighted practices and failing to live up to their responsibilities to taxpayers who bailed them out in the first place. Kicking Ken Lewis to the curb would be a good start.

A new report released by SEIU today shows that Bank of America has cut small business loans made through the Small Business Administration (SBA) 7(a) program - despite taking billions in taxpayer-funded bailouts meant to stimulate the economy.

At a time when the failure rate of small businesses has been on the rise, Bank of America has - and continues - to reduce the amount it lends in SBA loans while increasing higher-interest credit card lending to small businesses. The result is less capital to support struggling small businesses and boost the economy.

Here's a quick look at the facts about Small Business Loans at the Bank of America.

FACT: Bank of America Cut Lending to Small Businesses AFTER Taking Billions in Bailout Money to Stimulate the Economy - Latest Cuts Came on Top of Years of Decreased Lending

• Not only did Bank of America cut small business lending after taking billions in bailout funds, but the bank lent out significantly less money to small businesses than many of its top competitors - under the SBA 7(a) program the Small Business Administration's main loan program.
• The average loan amount was comparatively small. In FY 2008, the average loan amount for all SBA 7(a) lenders was $182,492. At Bank of America, the average loan amount was only $31,032.

FACT: Bank of America Cut SBA 7(a) Loans by 90 percent -- Twice the National Average

• Over the past two years, Bank of America's small business lending has decreased from more than 10,000 SBA 7(a) loans to fewer than 500. The greatest decline occurred after the bank received bailout funds last October -- money intended to jump start lending.
• In the first seven months of FY 2009 (October-April), the bank made only 241 loans through the SBA 7(a) program, worth a total of $10 million. In the same time period last year, the bank made 3,053 SBA 7(a) loans, worth $92 million.

FACT: Bank of America Cut Small Business Lending in States

• In FY 2007, Bank of America lent more than $335 million to small businesses in 44 states through the SBA 7(a) program. In the first seven months of FY 2009, the bank cut SBA 7(a) lending completely in 14 states.
• Cuts were most severe in states like Arkansas, where the bank made 49 SBA 7(a) loans worth $1.4 million in FY 2007, and made zero in the first seven months of FY 2009, and in three New England states (Maine, New Hampshire, and Rhode Island), where the bank went from making 109 loans worth $2.8 million in FY 2007 to zero to date in FY 2009.

FACT: Bank of America Pulled a Bait and Switch, Shifting Small Business Portfolio from Traditional Loans to Higher-Interest Credits Cards

• Instead of lending money to small businesses through SBA loans (with typical interest rates of 7-9%), Bank of America appears to be moving its small business clients to higher-interest credit card loans. (Credit cards typically charge small businesses 16-23%.)
• In 2007 (the most recent year for which this data is currently available), more than 75% of Bank of America's small business loans were made through FIA Card Services, its credit card division. Bank of America acquired FIA (previously called MBNA) in January 2006. FIA's small business loan volume increased nearly 400% between 2006 and 2007. The $6.3 billion increase in the bank's total small business lending between 2006 and 2007 came almost entirely from the bank's credit card division.

FACT: Bank of America Hurt Small Businesses and Shareholders with Risky Lending Practices

• Bank of America shifted its loan portfolio - favoring "Express Loans" with lower underwriting standards - despite the fact that these loans are guaranteed by the SBA at a lower rate and have been found more likely to default. From FY 2006 through FY 2008, more than 95% of Bank of America's SBA 7(a) lending was through the SBA Express program, saddling shareholders and communities with unnecessary risk.
• Reminiscent of the mortgage crisis, small business defaults have risen. In fall 2008, Bank of America announced that its small business default rate had doubled to match the national rate and possibly exceed it, going from 6% in 2007 to 12% (annualized) in 2008. Bank of America's Chief Financial Officer Joe Price described the bank's small business lending as performing more like consumer debt than commercial lending. CEO Ken Lewis more bluntly called Bank of America's SBA loan portfolio "a damn disaster."

Read and download the full report "Small Business Lending at Bank of America" here.

Yesterday's federal government stress test results confirmed what concerned shareholders, taxpayers and bank employees have been saying all along--that Bank of America is failing taxpayers and our economy. In a statement, SEIU Secretary-Treasurer Anna Burger said this:

Bank of America is a sinking ship that needs more than just a change in captain to address fundamentally unsustainable and irresponsible business practices that are bad for consumers, bad for employees and dangerous for our larger economy.

Bank of America has already received $45 billion in TARP funds and now taxpayers could be on the hook for $33.9 billion, plus another $150 billion in guarantees to bailout the bank for its own bad behavior. Instead of cleaning house and finding substantive means to reform a business model that was already in the red, Bank of America gobbled up other financial institutions and continued to payout $5.2 million in bonuses. This is not smart economics.

The decision by the House yesterday (which the White House announced support for today) to vote for an independent commission to investigate the causes of the financial crisis is a significant win for the cause of accountability and reform on Wall Street and in the banking industry. However, as an institution at the frontlines of the financial structure that is about to bailed out by American taxpayers for a second time, it is time for Bank of America to do what's right and take responsibility for the damage it has caused.

We've already sent a letter to new Bank of America CEO Dr. Walter Massey, outlining the key principles of reform the bank needs to tackle, while engaging with taxpayers and Bank of America employees in solutions that will restore public confidence in the bank, ensure workers have a voice to protect consumers, and create an economy that works for everyone again. "After failing our economy, it is time taxpayers have a greater say in banking reform and for Bank of America to be a partner instead of a toxic asset as we work to create real solutions to the banking crisis," says Burger.

Next steps for Bank of America: http://action.seiu.org/page/s/masseyletter

We've just returned from our local AIG headquarters here in D.C., where around 130 people stood in the rain to take part in our Take Back the Economy day of action. Demonstrators held signs, sang songs, and presented AIG with a "reality check" worth billions of dollars from the American people.

Several people spoke, including SEIU President Andy Stern, who had this to say about AIG and other bailout recipients:

We own this company. And we didn't buy it to have them hand out million dollar bonuses. And I'll tell you this. It's not good enough to get just half the bonuses back. We want it all back, and we want it now.

We learned today that Citibank, who's gotten $45 billion of our money, is still going to spend $10 million to remodel their executive suite. Now I've been in the executive suite at Citigroup, and it is sweet. But remodeling the executive suite is like remodeling the Titanic before it sank. We don't need remodeling, we need our money back, we need home loans, we need jobs, we need fair pay for every American to get ahead

Watch the video here:

And here are some pictures of the rally:

To read the full transcript of Andy's speech, please read the extended entry.

If you've been following our blog, you've no doubt heard about last year's anti-Employee Free Choice call sponsored by Bank of America. As you'll remember, just three days after receiving its first set of bailout funds - $45 billion in total - participants on the call were encouraged to send "large contributions" to groups working to block passage of the bill.

Since that time, a number of groups have followed Bank of America's path. Rather than focusing on paying the American people back, they've instead used their resources to lobby against measures that would improve the lives of their new investors - us.

Here's a quick look at a few of these groups, in addition to Bank of America:

AIG

The American International Group has received the largest of all taxpayer bailouts, at a total cost of $173 billion to the American people, who now own approximately 80% of the group.

More than $90 billion of AIG's bailout funds went towards paying numerous domstic and foreign banks, such as Bank of America and Citigroup. Both of these groups are part of a huge lobbying effort against laws that would benefit working families, such as Free Choice.

The Financial Services Roundtable

The Financial Services Roundtable (FSR) a special interests group that represents more than 90 companies in the finance and insurance industry, including the nation's largest banks and insurance companies. Their leadership includes Bank of America, Wells Fargo, Citigroup, and U.S. Bank.

In total, member companies have received an estimated $213.8 billion in taxpayer money. You could buy a lot of round tables with that kind of money.

In every quarter in 2008, the RSF has lobbied against the Employee Free Choice Act. And this year, they've banded together with the U.S. Chamber of Commerce to make its defeat their top priority in 2009.

Citigroup

Since last year, Citi has received a total of $45 billion in taxpayer bailouts.
Following Bank of America's lead, they hosted a conference call to build opposition to the Employee Free Choice Act. The call, led by a senior executive at the U.S. Chamber of Commerce, was held on March 11th.

Just a day before the call, Citigroup cited Free Choice as the reason to downgrade Wal-Mart's rating, leading to speculation that the move was politically motivated to try to paint the bill as anti-business.

Burger King

Goldman Sachs is one of the largest shareholders of Burger King, and along with private equity firms TPG and Bain Capital, control the Burger King board through seats on its executive committee. Goldman Sachs has received $10 billion in taxpayer bailouts.

Burger King's second largest franchisee is a unit of Cerberus Capital Management, the same private equity firm that also owns Chrysler. Chrysler has received $5.5 billion in taxpayer bailouts.

Yesterday, as bailout bank CEOs entered the Rayburn House building to testify before Congresson how they used bailout funds, they were greeted by the playful chants and clever signs of SEIU members.

We've put together a short video of the demonstration - and managed to capture the thoughts of both the members participating and concerned citizens who were lined up to watch the hearing.

Take a look here:

And enjoy these photos of the event:

Yesterday, in a congressional hearing about major banking institutions' use of TARP funds (a.k.a. the "bailout" funds approved by Congress last fall), something that can only be described as "enraging" occurred.

When pressed by Congressman Keith Ellison (D-MN), Bank of America CEO Ken Lewis did not deny that his company lobbied against pending legislation - namely the Employee Free Choice Act - while receiving taxpayer money. (For the full background on the topic, see our earlier reporting.)

Lewis defended the company's lobbying actions, arguing "doing what's in the best interest of your company is always the best thing to do." Watch it here:

What does Ken Lewis mean by "best interest of our company?" To us, a company is not just the executives and shareholders, but its employees, its customers, and its community.

So it's tough to reconcile Lewis' apparent opposition to the Employee Free Choice Act with an internal Bank of America memo about the bill. In that memo, Bank of America admitted the bill would mean:

increased spending power of lower income consumers as this would be a de facto wage and benefit increase.

Let's get this straight: Bank of America admits that the Employee Free Choice Act would raise wages and benefits for consumers, pumping money into our flailing economy. But Bank of America will apparently continue its efforts to fight this bill despite knowing it can help the economy.

Ken Lewis makes $9,803 an hour, while his tellers - those that make Bank of America run - make $10-$15 an hour. A number of Lewis' 247,000 employees lack adequate health coverage and instead depend on state subsidies." While Lewis himself did not take a bonus for last year, Lewis made sure that high level staff still got bonuses even though Bank of America recently announced it was laying off another 35,000 employees.

So, we've got to ask. Is it really in the best interest of "the company" to actively lobby against measures that would improve the lives of very same people that work within the company - or is it just in the best interest of Ken Lewis?

Any company that receives money from the bailout should not be allowed to influence public policy. As the blog Turn Maine Blue noted:

Now there are efforts to provide that oversight, one of which is the Troubled Asset Relief Program Transparency Reporting Act (S. 133), cosponsored by Sen. Olympia Snowe.

But shouldn't this oversight also concern itself with how the recipients of TARP funds also lobby Congress? For example, a couple of weeks back Huffington Post broke the story that Bank of America, which has received $25 billion from the Fed, is actively lobbying against the Employee Free Choice Act.

Should banks that receive TARP money be allowed to lobby Congress about issues like the EFCA?

Americans need a guarantee that companies receiving billions from taxpayers will not lobby or otherwise influence legislation.

If that doesn't sit well with Ken Lewis, then he can give back his company's $45 billion bailout.

A group of SEIU members are on the Hill this morning, calling on Congress to prevent companies that are receiving massive taxpayer subsidies from spending money on lobbying that may pit their corporate interests, and the interests of highly compensated CEOs, against taxpayers' interests.

While taking taxpayer money, bailout recipients like Bank of America & Merrill Lynch have continued to lobby--through their trade association memberships--to block consumer protection measures, predatory lending regulations, and the Employee Free Choice Act, a measure that would ensure workers the freedom to form a union for a voice for improved wages, benefits, and working conditions. Beyond the Troubled Asset Relief Program (TARP), some bailout recipients--who fail to provide affordable healthcare or a living wage to their employees--are dipping into additional federal coffers, forcing thousands of employees to seek healthcare through taxpayer funded programs like Medicaid and food stamps.

Watch the C-SPAN live hearing as CEOs from eight major banks that received $125 billion in taxpayer bailout funds are called before Congress to account for their use of the funds.

UPDATE, @5PM: The hearing is over now, but you can still watch the testimony of the CEOs whose companies received the first TARP funds explain how they used the bailout money before the House Financial Services Committee.
> Watch the TARP hearing's morning session here and the afternoon hearing session here.

Last week, as reported on our blog, concerned citizens across the country participated in events where they talked directly to employees and Bank of America customers on what's happening with their company and why their CEO needs to be fired.

We've put together a video from some of these events:

As you can see from the video, there was plenty of interest - and much surprise - from people on the street. Hardly anyone could believe that Bank of America's CEO, Ken Lewis, makes around $9,803 an hour - or that many of Bank of America's employees don't have health care.

That's why it's important that we continue to get the word out on the four principles that Bank of America should agree to:

• Provide health care for its 247,000 workers
• Keep over 12,000 troubled borrowers in their homes with executive bonus money
• Sign new leases with renters who live in buildings that are being foreclosed upon
• Commit to providing affordable healthcare to all of its employees and their dependents.

We'd like to take a moment and thank our great volunteers who participated in these 40+ events. Because of you, we're getting the word out on Bank of America - and we'll hold them accountable for how they're using the $45 billion in bailout money that they've received.

Last week, as reported on our blog, concerned citizens across the country participated in events where they talked directly to employees and Bank of America customers on what's happening with their company and why their CEO needs to be fired.

We've put together a video from some of these events:

As you can see from the video, there was plenty of interest - and much surprise - from people on the street. Hardly anyone could believe that Bank of America's CEO, Ken Lewis, makes around $9,803 an hour - or that many of Bank of America's employees don't have health care.

That's why it's important that we continue to get the word out on the four principles that Bank of America should agree to:

• Provide health care for its 247,000 workers
• Keep over 12,000 troubled borrowers in their homes with executive bonus money
• Sign new leases with renters who live in buildings that are being foreclosed upon
• Commit to providing affordable healthcare to all of its employees and their dependents.

We'd like to take a moment and thank our great volunteers who participated in these 40+ events. Because of you, we're getting the word out on Bank of America - and we'll hold them accountable for how they're using the $45 billion in bailout money that they've received.

Reaction to Sam Stein's recent Huffington Post article on Bank of America's anti-Employee Free Choice conference call has been sweeping.

Wednesday night, on MSNBC show 1600 Pennsylvania Ave., host David Shuster reported on the call during his "Hypocrisy Watch" segment. Airing some of the tape from the call, Shuster makes the following comment:

"Bernie Marcus is entitled to his opinion on unions. Likewise, every American citizen is welcome to get involved in elections - elections matter. However, Bank of America and other financial institutions helped create the financial mess that our country faces, to begin with. For Bank of America to take taxpayer bailout money in order to 'improve the company's health' and then use that money to organize a conference call and get so involved in fighting in fighting workers who are trying to improve their own financial health...that's hypocrisy and that's wrong."

Watch the clip here:

When taxpayers gave Bank of America a $25 billion bailout, the country's largest bank was supposed to use the funds to help jumpstart the economy.

What multiple news sources have found, unfortunately, is the opposite. Rather than using the loan to keep money flowing through the financial system to ensure that the bank continues lending to consumers, as was the original intent, Bank of America has instead misspent the money on foreign investments, executive salaries, and corporate jets.

As of yesterday, the Wall Street Journal reports that Bank of America wants "billions" more in bailout funds.

But a simple blog post can't cover the sheer amount of facts that you need to know about Bank of America. That's why today we, along with Brave New Films, produced a short web video giving an overview of Bank of America, the bailout, how it treats its employees, and just how much of a "bad actor" the company is.

Watch the video here:

Our multi-media nationwide effort to take on Bank of America's business practices and use of bailout money is part of a greater multi-industry effort by SEIU to identify corporate practices that have helped deepen the nation's financial crisis--and hold these corporations accountable for the damage they've done to our economy and the damage they continue to do.

Here's what CNN Money wrote about our campaign:

Treasury already has provided Bank of America with $25 billion in capital through its controversial $700 billion Troubled Asset Relief Program. Congress has released half of the funding for that program.
"It is clear so far that the money we've spent has not changed anyone's business model," said Andy Stern, president of the Service Employees International Union."Why are we going to give them more bailout money if they're going to keep making the same mistakes?"

Someone has to say that enough is enough. Bank of America needs to either use its bailout to help the economy and its workers, or give back the bailout. We're counting on you to stand up and take action.

What can Bank of America do? We've created a list of common sense ideas that will help hundreds of thousands of working people get by in these tough times.

In addition to launching this online campaign, activists and SEIU members descended on Bank of America headquarters in Los Angeles, Charlotte, New York City, and Boston to present our demands of the campaign:

1. Provide health care for its 247,000 workers using the money it spent last year on executive salaries and bonuses. By providing its workers with inadequate health coverage, BofA is able to keep down its payroll costs at taxpayers' expense.
2. Keep over 12,000 troubled borrowers in their homes with executive bonus money
3. End the practice of unilaterally changing credit cardholder agreements.
4. Sign new leases with renters who live in buildings that are being foreclosed upon

Learn more about Bank of America's practices and this campaign at www.seiu.org/bankofamerica. Read our complete report, "Bank of America: A Billionaire's Boondoggle," here.

When taxpayers gave Bank of America a $25 billion bailout, the country's largest bank was supposed to use the funds to help jumpstart the economy.

What multiple news sources have found, unfortunately, is the opposite. Rather than using the loan to keep money flowing through the financial system to ensure that the bank continues lending to consumers, as was the original intent, Bank of America has instead misspent the money on foreign investments, executive salaries, and corporate jets.

As of yesterday, the Wall Street Journal reports that Bank of America wants "billions" more in bailout funds.

But a simple blog post can't cover the sheer amount of facts that you need to know about Bank of America. That's why today we, along with Brave New Films, produced a short web video giving an overview of Bank of America, the bailout, how it treats its employees, and just how much of a "bad actor" the company is.

Watch the video here:

Our multi-media nationwide effort to take on Bank of America's business practices and use of bailout money is part of a greater multi-industry effort by SEIU to identify corporate practices that have helped deepen the nation's financial crisis--and hold these corporations accountable for the damage they've done to our economy and the damage they continue to do.

Here's what CNN Money wrote about our campaign:

Treasury already has provided Bank of America with $25 billion in capital through its controversial $700 billion Troubled Asset Relief Program. Congress has released half of the funding for that program.
"It is clear so far that the money we've spent has not changed anyone's business model," said Andy Stern, president of the Service Employees International Union."Why are we going to give them more bailout money if they're going to keep making the same mistakes?"

Someone has to say that enough is enough. Bank of America needs to either use its bailout to help the economy and its workers, or give back the bailout. We're counting on you to stand up and take action.

What can Bank of America do? We've created a list of common sense ideas that will help hundreds of thousands of working people get by in these tough times.

In addition to launching this online campaign, activists and SEIU members descended on Bank of America headquarters in Los Angeles, Charlotte, New York City, and Boston to present our demands of the campaign:

1. Provide health care for its 247,000 workers using the money it spent last year on executive salaries and bonuses. By providing its workers with inadequate health coverage, BofA is able to keep down its payroll costs at taxpayers' expense.
2. Keep over 12,000 troubled borrowers in their homes with executive bonus money
3. End the practice of unilaterally changing credit cardholder agreements.
4. Sign new leases with renters who live in buildings that are being foreclosed upon

Learn more about Bank of America's practices and this campaign at www.seiu.org/bankofamerica. Read our complete report, "Bank of America: A Billionaire's Boondoggle," here.

In October, the federal government gave Bank of America and Merrill Lynch a combined $25 billion in bailout funds. According to the Wall Street Journal, the move was designed "to keep money flowing through the financial system, ensuring that banks continue lending to companies, consumers and each other." (1) Unfortunately for the taxpayers footing the bill, Bank of America appears to have had another agenda.

The other day, CBS News investigative correspondent Sharyl Attkisson reported the following:

"Once the bill became law on October 3, Henry Paulson's Treasury Department moved quickly on an entirely different front: Give bailout money to select banks to help them buy competitors."

According to the report, Paulson did not discuss this strategy in advance in his conversations with important members of Congress.

The report goes on to note that Bank of America "received $15 billion dollars and bought Merrill Lynch, which got $10 billion even as it was up for sale."

Watch the video here:

As we note in our own report, even though Bank of America claimed that it did not use bailout funds to invest in healthy banks, just three weeks after receiving the bailout money, BofA invested $7 billion of it in China Construction Bank Corp. - a foreign bank with no presence in the U.S.

Morningstar Inc. analyst Jaime Peters noted at the time, "This is falling closely on the heels of their receiving [bailout] money, which was intended to spur lending in the U.S. or have bigger, stronger banks buy the failing banks...But neither of these things is happening." (2)

The CBS News article mentioned above also noted that, this week, "congressional leaders...said no further bailout money will be given to Treasury without much stricter conditions."

Read more at www.seiu.org/bankofamerica

---

Sources:
1) Deborah Solomon, Damian Paletta, Jon Hilsenrath, and Aaron Lucchetti, "U.S. to Buy Stakes in Nation's Largest Banks," Wall Street Journal, 14 Oct 2008.
2) Luo Jun and David Mildenberg, "Bank of America to Pay $7 Billion to Double CCB Stake," Bloomberg, 18 Nov 2008; and "China Construction Bank wins UK regulatory approval to open London unit," Thomson Financial News, 11 Dec 2008.

In October, the federal government gave Bank of America and Merrill Lynch a combined $25 billion in bailout funds. According to the Wall Street Journal, the move was designed "to keep money flowing through the financial system, ensuring that banks continue lending to companies, consumers and each other." (1) Unfortunately for the taxpayers footing the bill, Bank of America appears to have had another agenda.

The other day, CBS News investigative correspondent Sharyl Attkisson reported the following:

"Once the bill became law on October 3, Henry Paulson's Treasury Department moved quickly on an entirely different front: Give bailout money to select banks to help them buy competitors."

According to the report, Paulson did not discuss this strategy in advance in his conversations with important members of Congress.

The report goes on to note that Bank of America "received $15 billion dollars and bought Merrill Lynch, which got $10 billion even as it was up for sale."

Watch the video here:

As we note in our own report, even though Bank of America claimed that it did not use bailout funds to invest in healthy banks, just three weeks after receiving the bailout money, BofA invested $7 billion of it in China Construction Bank Corp. - a foreign bank with no presence in the U.S.

Morningstar Inc. analyst Jaime Peters noted at the time, "This is falling closely on the heels of their receiving [bailout] money, which was intended to spur lending in the U.S. or have bigger, stronger banks buy the failing banks...But neither of these things is happening." (2)

The CBS News article mentioned above also noted that, this week, "congressional leaders...said no further bailout money will be given to Treasury without much stricter conditions."

Read more at www.seiu.org/bankofamerica

---

Sources:
1) Deborah Solomon, Damian Paletta, Jon Hilsenrath, and Aaron Lucchetti, "U.S. to Buy Stakes in Nation's Largest Banks," Wall Street Journal, 14 Oct 2008.
2) Luo Jun and David Mildenberg, "Bank of America to Pay $7 Billion to Double CCB Stake," Bloomberg, 18 Nov 2008; and "China Construction Bank wins UK regulatory approval to open London unit," Thomson Financial News, 11 Dec 2008.

This holiday season alone, hundreds of members and activists recruited through SEIU hosted house meetings on health care. In this same spirit, thousands of SEIU members will make calls, send emails, and set up lobby visits this week to urge Congress to act as swiftly on real economic recovery for working people in America as they did to bail out Wall Street.

Independent policy experts warn that due to the widening economic crisis, billions in crucial public services may be cut at a time when people affected by the recession rely on them more than ever. According to the Center on Budget and Policy Priorities, states are facing severe budget shortfalls this year and next that represent up to 25 percent of their general fund budgets.

SEIU members provide crucial public services--healthcare, senior services, and public safety--to a growing number of people most affected by the economic crisis and looming state budget cuts. These cuts would come at a time when local communities already feel the ripple effect of reduced spending by the people who work in these jobs providing care for our parents, our children, and ourselves.

Meanwhile, surging healthcare costs are already threatening millions of families with bankruptcy and putting others at risk of losing their homes. According to a recent Harvard University study, medical crises contribute to half of all home foreclosures and could put as many as 1.5 million Americans at risk of losing their homes each year.

"People are excited about Obama's inauguration, but they are worried about losing their own jobs, their healthcare, their ability to retire, their homes, losing their way of life for their kids. These fears are real and they are urgent, because leading economists say that without significant aid to states our economy is going to plunge deeper into recession," said SEIU Secretary-Treasurer Anna Burger.

Burger and SEIU President Andy Stern recently sent letters to Congress and the Obama transition team describing the elements of an economic recovery plan that would work for working people, including:

• significant relief to state and local governments to preserve and rebuild crucial services and good jobs
• major spending on infrastructure projects that are shovel-ready and others that with help create jobs and bolster local communities in the long-term; and
• spending on innovations in the health care and energy sectors to restore our economic competitiveness and put us on a sustainable path.

SEIU members are pressing for the economic recovery package as the first part of a wider campaign, Change That Works, designed to bring economic solutions to Main Street, including efforts to fix the nation's healthcare system and ensure workers have a voice on the job. This groundbreaking campaign will be unveiled on a telephone press conference today at 1:30 p.m. EST (more details here).

SEIU will also be holding a live chat with bloggers and activists about Change That Works tomorrow Thursday, January 8 at 4:15 p.m., which can be viewed live on www.SEIU.org/livechat -- don't forget to tune in!

WASHINGTON, DC -- SEIU President Andy Stern issued the following statement today regarding the negotiations of a bailout of the Big Three automakers:

"Today, amidst global economic insecurity, members of Congress and the White House are debating how and how much taxpayers will come to the aid of America's ailing auto industry. We stand together at a moment when change is no longer on the horizon but determined by the choices we make each day. This bailout gives us the opportunity to not just rescue another failing industry but to imagine how our next steps could be part of wider economic solutions that will benefit all working families.

"First and foremost, the auto executives could join efforts to reform our failing health care system. Ours is the only major economy on earth that puts the price of health care on the cost of our products--a reality that eats away at the competitiveness of American cars in the global marketplace. For years, the voice of the Big Three has been silent in the call for Congress to pass affordable, quality health care for all Americans. By breaking contractual agreements and leaving workers without access to health care, the automakers have cut costs at the expense of the hardworking men and women who built their companies. It is not too late for the auto executives to ask Congress to shoulder some portion of health care for retirees until national health care is achieved--a step that would relieve the automakers of a major cost and extend benefits to individuals who need expanded health care benefits.

"Secondly, the United States should replace its gas-guzzling and aging fleet with fuel efficient cars produced by the Big Three. By pre-ordering and pre-paying for more vehicles built to a specification that guarantees considerably higher fuel efficiency, the government could simultaneously support the industry, create demand for more fuel-efficient vehicles, reduce carbon-emissions and take steps toward greening the economy.

"Finally, the auto executives should drop expensive and backward-looking emissions lawsuits against states like California and instead encourage adoption of tougher national emissions standards. This would level the playing field for automakers and position them as part of the solution--rather than part of the problem--as our nation faces an undeniable and monumental climate change crisis.

"We now know from unfortunate experience that change is inevitable, but progress is optional. If taxpayers are going to be asked to invest in $15 billion or more in bridge loans to keep the industry afloat, the package must include serious taxpayer protections, limits on executive pay, and a strong hand for Congress and the White House in shaping and implementing the immediate restructuring necessary to restore the competitiveness of these three engines of the American economy."

2-million member union calls for Wall Street bailout to include $350 billion injection to address urgent needs of workers

WASHINGTON, DC -  With Washington moving toward a bailout of Wall Street banks, the Service Employees International Union (SEIU) called for action on legislation that will launch a new era of prosperity and address the real economic concerns of America's working families. SEIU leaders representing the union's two million members overwhelmingly approved a resolution calling for legislation to address the priorities of working people.

"The era of corporate cronyism and worship of the market is over--we need a new economic model that puts the government on the side of the people," said Andy Stern, SEIU International President. "It's time to take a deep breath and have a full discussion about how we solve our problems now while creating an investment strategy to revive the American economy."

The resolution comes as Capitol Hill lawmakers and regulators consider the final details of a $700 billion bailout package that fails to address the inadequate oversight, lack of transparency, and excessive risk-taking practices of private equity firms, hedge funds, and other unregulated institutions that are now culminating in what is globally perceived as the most severe economic crisis since the Great Depression. In particular, the SEIU resolution calls for dedicated investment in programs that would improve the lives of tens of millions of Americans, including:

1. Relief for struggling homeowners. Estimated cost: $0.
2. A national health care plan. Estimated cost: $130 billion over two years.
3. A plan for energy independence and green job creation. Estimated cost: $20 billion over two years.
4. Retirement security. Estimated cost: Negligible
5. Improved infrastructure. Estimated cost: $22 billion over two years.
6. Tax reforms to correct a system that currently favors CEOs and business while contributing to a growing income divide. Estimated cost: $80 billion.
7. Reforms that ensure workers have real freedom to choose a voice at work. Estimated cost: $0.
8. Affordable education. Estimated cost: $100 billion over two years.

Today's resolution comes as SEIU continues its unprecedented, multimillion dollar initiative to elect a progressive, working families majority at every level of government. More than 1,000 SEIU members have taken time off their jobs to work full time on the effort and 100,000 nurses, janitors, child care providers, and other workers are volunteering after work and on weekends as part of the initiative.