Home > #OWS > Alt-Banking calls on Senate to defend Main Street against Wall Street (#OWS)

Alt-Banking calls on Senate to defend Main Street against Wall Street (#OWS)

January 18, 2013

This is crossposted from the blog of the Alternative Banking Working group of #OWS.

Dear Senators,

It is now up to you to restore the integrity of the Department of the Treasury.

As the Department’s web site states, Treasury’s job is to:

“Maintain a strong economy and create economic and job opportunities by promoting the conditions that enable growth and stability…protecting the integrity of the financial system, and manage the U.S. Government’s finances and resources effectively.”

President Obama’s nominee, Jacob Lew, does not measure up to the task.

Since the days of the Clinton Administration, the office of the Treasury Secretary has morphed into the custodian of Wall Street interests, allowing fraudulent banking practices to lead us into a recession, paying little or no heed to the concerns of Main Street about economic growth or jobs. Moreover, unlike the George W. Bush presidency where Enron executives were jailed — little has been done since the latest crisis to prosecute the people responsible for the widespread criminality and total disregard of ethics and values in finance.

The new Treasury Secretary should be an individual who looks out for the 99%, not a Timothy Geithner clone who would rather save financial players than enforce the law. We need someone who will focus on the productive economy and jobs. We need someone who will push back against Wall Street, not someone who will do their bidding.

Jacob Lew’s tenure at the original too-big-to-fail bank, Citigroup, has disqualified him. He received a $900,000 bonus from Citi in 2008, essentially paid out of the taxpayer bailout, just before he returned to government. At best this has the “appearance of impropriety”.

As HSBC’s “too big to jail’ settlement shows, the too-big-to-fail problem persists. We need a Treasury Secretary who will work to address this. Despite being near the heart of the storm, or perhaps because he was at Citigroup, Jack Lew shows no recognition that the current structure of the banking system is the heart of the problem. We must block his appointment.

Criminality and greed are embedded in the culture of the financial system and only major reform will get rid of it.  Please join us in our efforts to reject Jacob Lew and ask President Obama to nominate someone who can truly live up to the mandate of the U.S. Treasury.

Sincerely,

Members of the OWS Alternative Banking Group

Marni Halasa
Josh Snodgrass
Hannah Appel
Linda Brown
Nicholas Levis
Cathy O’Neil
Anchard Scott
Yves Smith
Akshat Tewary

Categories: #OWS
  1. grwww
    January 18, 2013 at 10:55 am | #1

    The problem is that deregulation and the lack of “insight” by the FED, into the deregulated behavior caused credit to escalate out of control. This expanded the economy beyond the range of available cash (30%-40% which was flowing toward China and the rest of the world already) thus creating a recession.

    Where we are at now is in a place where we should be, from position of the size of the economy, overall. The cash in circulation is too low, and the printing that the FED is doing, because congress is not Taxing, is the only way to further relax the tension between Cash on hand and the size of the economy.

    Because of credit expanse, jobs were created, buildings built, debt acquired and all kinds of things when there was not cash in circulation to support. That, plain and simple, is the problem. Now that the economy has expanded, the only way to “fix” the recession is to inject cash at the lowest level of the economy. Only way to do that is tax rebate. Nothing else is going to fix anything, unless the economy continues to constrict to the point that there is Cash to support it.

  2. chaletfor2
    January 19, 2013 at 9:49 am | #2

    Anyone who did not notice the biggest (8 Trillion dollar) bubble in the world should be disqualified from any financial office.

  3. Janice
    January 19, 2013 at 11:42 am | #3

    Keep up the good work, OWS Alternative Banking Group!

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