India FDI Watch’s Battle with Wal-Mart

A Q&A session with the head of India FDI Watch, Dharmendra Kumar, about the successes of the campaign and the many obstacles they have faced along the way.

How did India FDI Watch first begin?

The India FDI Watch Campaign started in March of 2005 with the mission to prevent the opening of Foreign Direct Investment (FDI) in the retail sector in India. However, during the course of the past three years as large domestic corporations, like Reliance, have also entered the retail sector, the India FDI Watch Campaign has broadened its scope to address the rise of corporate retail in general. 

Specifically, the campaign seeks to prevent the insertion of multi-national retailers from entering the Indian market, and stunt the growth of domestic retailers, unless these companies make satisfactory guarantees that would protect communities; protect the environment; insure the livelihoods of existing small retailers, hawkers and farmers; guarantee fair wages and working conditions for their own employees and source employees along with union protection and agreements; and insure that a significant percentage of sourcing derives from the Indian market. 

Why do you think major retailers are looking towards India?

The retail industry is one of the world’s largest industries, increasingly being controlled by a handful of powerful corporations based mainly in the United States and Europe. Multi-national retailers, like Wal-Mart, Tesco, Carrefour and Metro have by and large saturated their home country markets and are now looking to enter into India. This is no surprise as A.T. Kearney, according to its Global Development Retail Index, has ranked India the 1st country for retail investment for three consecutive years.

Anticipating the entry of multi-national retailers and seeing huge opportunities for profit, large Indian business houses have also announced aggressive plans to expand or enter into the Indian retail market. It is reported that the top 40 retail chains--Bharti-Wal-Mart, Reliance, Birla and Pantaloons, being the four largest—have ambitions to grow the share of organized retail from the current 3% to 20% in the next four years. Over half all investment will go directly into the agriculture sector, as food retail will comprise a majority of sales. As far as growing India’s organized retail industry, many experts rightly point out that India is trying to do in 10 to 15 years what took other countries 25 to 30 years to do. 

What impact will organized retail have in India?

The rapid growth of organized retail will have devastating impacts in two main ways; livelihoods and the environment. A large part of the organized retail business will be in the sale of food and groceries, as can already be seen by outlets such as Food Bazaar, Subiksha and Reliance Fresh. These companies, along with Wal-Mart’s plan to enter through the supply-chain, are entering directly into the agricultural sector through contract farming. Therefore, corporate retail chains will not only be entering directly into the retail sector but also into the agriculture sector, India’s two largest sectors and sources of employment and livelihoods. 

As is already evident through the Bharti-Wal-Mart deal and through Reliance Retail these companies will enter into every aspect of what has come to define the retail industry, from direct production and contract farming, storage, distribution, land acquisition, real estate development and final sale. Therefore, this will have and is already having a direct impact on suppliers and workers throughout the supply chain and existing retailers. These groups are mainly--farmers, manufacturers, distributors, wholesalers, traders, shopkeepers, hawkers and cooperative stores. 

Already agriculture, land use, real estate, tax and labor policies and laws are changing and are facilitating the entry and growth of corporate retail and negatively impacting millions of people. Therefore the issue of Foreign Direct Investment (FDI) in the retail sector and the rise of corporate retail, more generally, is a question of employment and livelihoods of the people of India and is being approached in this way by the India FDI Watch Campaign. 

In addition to the impact that the rise of corporate retail will have on livelihoods, the large hypermarkets and malls that will house these corporate retail chains, will be extremely taxing on the local environment. This is of particular concern in large metros like Mumbai and Delhi where existing infrastructure cannot sustain the level and pace of growth of “mall culture”. Sufficient electricity, water, traffic, parking and roads, which are existing problems facing India’s urban centers, will simply be compounded by corporate retail chains like Bharti-Wal-Mart and Reliance. Already, Wal-Mart is one the world’s largest private consumers of energy and is known for increasing traffic and crime in areas where they have stores. Large hypermarkets that have sprung up around major metros are no different and have already intensified the energy and infrastructure crisis.

How much progress do you feel the campaign has made so far?

India FDI Watch has been meeting with Members of Parliament (MPs) across the political spectrum since November 2005, briefing them on the effects of opening FDI in Retail. The Campaign has built solid relationships with the Senior Leaders in the Left Parties, currently in coalition with the ruling Congress party and with the Bharatiya Janata Party (BJP), the more conservative national opposition party. We have been instrumental in providing needed material, briefing papers and other documents, which MPs have used to bring up the issue of FDI in Retail in Parliament discussions.

With the announcement of Wal-Mart’s Joint Venture with Bharti Enterprises, India FDI Watch organized a march in November 2006 on Parliament on the second day of the Winter Session. As a result of other major public demonstrations organized by the India FDI Watch campaign, Sonia Gandhi refused to meet with the top Wal-Mart official during his visit to Delhi in February 2007, and has issued cautionary warnings against the rise of corporate retail chains. The Prime Minister’s Office (PMO) has also responded to the campaign, by recommending that at Special Task Force be set up comprised of different interest groups, including unbiased academic institutions.

On February 15, 2006 the FDI Watch sponsored a meeting to begin to form a National Joint Action Committee to prevent foreign direct investment in the retail sector and stunt the rise of corporate retail. The attendees ranged from left wing parties, to the BJP, trade associations, farmers and unions. Out of the meeting there was broad agreement that allowing FDI in retail would cause a displacement of domestic retailers, especially the small and unorganized retailers, a rise in unemployment, a growth of monopoly in retailing, and a squeeze on domestic producers, especially farmers. 

This meeting helped lead to a shutdown of local markets in Delhi on March 1, 2006. The strike of small traders was called by the Confederation of All India Traders (CAIT) against the government’s decision to allow 51% FDI in single brand retailing and the recent demolition of thousands of small shops by the Delhi government. 

In July 2006, CAIT in coordination with India FDI Watch called a traders meeting where the National Traders Coordinating Committee to Oppose FDI in Retail was formed and a plan laid out to mobilize traders across the country to oppose FDI in Retail.  In that same month India FDI Watch, along with prominent agricultural activist Vandana Shiva’s group Navdanya, organized a public meeting with farmers’ groups on the impact that corporate retail will have on farmers.

India FDI Watch organized a successful program and press conference at the India Social Forum in November 2006. The program entitled, “FDI, Special Economic Zones, and the Corporate Hijacking of Retail; Impact on the Agriculture and Retail Sectors” linked together various issues and brought together prominent leaders on a common platform.

The Confederation of All India Traders called a national traders meeting on January 11-12, 2007 in Delhi and invited the Campaign to present a white paper on Wal-Mart and FDI in Retail. CAIT decided to carry out a national awareness campaign by distributing posters, developed by India FDI Watch to traders across the country. 

In February 2007 India FDI Watch organized a militant action in coordination with the Center for Indian Trade Unions (CITU), opposing the visit of top Wal-Mart executives to India to sign the deal. The militant action captured wide-spread media attention and elevated the Delhi campaign into public debate. 

One year after the initial February 2006 meeting, in April 2007, after a period of grassroots organizing, lobbying, media advocacy and relationship development, India FDI Watch organized a National Convention against Corporate Retail and established a National Joint Action Committee. 

What do you see in the future for India FDI Watch?

However, though much progress has been made, we cannot be naïve about the power and determination that companies like Wal-Mart and Reliance have in entering and expanding into India’ retail sector.  Companies like
Wal-Mart do not achieve their success with a lack of foresight and resolve. Wal-Mart has already opened a “war room” of political operatives and public relations firms in the US, and has purchased a public relations firm in India. Reliance’s influence in the Indian political system is no secret.

We have raised visibility and awareness and multinational and domestic retailers have begun to look vulnerable.  They have been forced to react, but so far that reaction is still in the direction of heading off public criticism, rather than true change. The next few years will be crucial in curbing the power of multi-national and domestic retailers, and will take resources and strategic planning. If these companies are not held accountable now they will continue to expand and become even harder to deal with than before, and the threat to livelihoods, erosion of worker’s rights, deterioration of the environment and communities, and the race to the bottom will continue.

Posted by Vasudha Desikan on Friday, June 13, 2008

Click Here for a Printer-Friendly Version

COMMENTS

BEST BUY, MY FOOT

Best Buy has some bad policies....

Normally, I would not share this with others, however, since this could happen to you or your friends , I decided to share it. If you purchase something from, Wal-Mart, Sam’s Club, JC Penny, Sears etc. And you return the item with the receipt they will give you your money back if you paid cash, or credit your account if paid by plastic.

Well, I purchased a GPS for my car, a Tom Tom XL.S from ‘Best Buy’. They have a policy that it mu st be returned within 14 days for a refund!

So after 4 days I returned it in the original box with all the items in the box, with paper work and cords all wrapped in the plastic. Just as I received it, including the receipt.
I explained to the lady at the return desk I did not like the way it could not find store names. The lady at the refund desk said, there is a 15% restock fee, for items returned. I said no one told me that. I said how much would that be. She said it goes by the price of the item. It will be $45.00 Dollars for you. I said, all your going to do is walk over and place it back on the shelf then charge me $45.00 of my money for restocking? She said that’s the store policy. I said if more people were aware of it they would not buy anything here! If I bought a $2000.00 computer or TV an d returned it I would be charged $300.00 dollars restock fee? She said yes, 15%.

I said OK, just give me my money minus the restock fee.

She said, since the item is over $200.00 dollars, she can’t give me my money back!!!

Corporate has to and they will mail you a check in 7 to ten days.!! I said ‘WHAT?!’

It’s my money!! I paid in cash! I want to buy a different brand..Now I have to wait 7 to 10 days. She said well, our policy is on the back of your receipt.

I said, do you read the front or back of your receipt? She said well, the front! I said so do I, I want to talk to the Manager!.

So the manager comes over, I explained everything to him, and he said, well, sir they should of told you about the policy when you got the item. I said, No one, has ever told me about the check refund or restock fee, whenever I bought items from computers to TVs from Best Buy. The only thing they ever discussed was the worthless extended warranty program. He said Well, I can give you corporate phone number.

I called corporate. The guy said, well, I’m not supposed to do this but I can give you a 45.00 dollar gift card and you can use it at Best Buy. I told him if I bought something and returned it, you would charge me a restock fee on the item and then send me a check for the remaining 3 dollars. You can keep your gift card, I’m never shopping in Best Buy ever again, and if I would of been smart, I would of charged the whole thing on my credit card! Then I would of canceled the transaction.

I would of gotten all my money back including your stupid fees! He didn’t say a word!

I informed him that I was going to e-mail my friends and give them a heads up on this stores policy.

Jerry in
Friday, June 13 at 11:48 PM

MONSANTO AND FARMER SUICIDES IN INDIA

AMY GOODMAN:Vandana Shiva remains with us, physicist; ecologist; director of the Research Foundation on Science, Technology, and Ecology; in ‘93, awarded the Alternative Nobel Peace Prize, the Right Livelihood Award; her latest book, Earth Democracy: Justice, Sustainability, and Peace. There is an epidemic you write about in India of farmer suicides. Can you explain what’s happening and where this is happening?

VANDANA SHIVA: Indian farmers have never committed suicide on a large scale. It’s something totally new. It’s linked to the last decade of globalization, trade liberalization under a corporate-driven economy. The seed sector was liberalized to allow corporations like Cargill and Monsanto to sell unregulated, untested seed. They began with hybrids, which can’t be saved, and moved on to genetically engineered Bt cotton. The cotton belt is where the suicides are taking place on a very, very large scale. It is the suicide belt of India.

And the high cost of seed is linked to high cost of chemicals, because these seeds need chemicals. In addition, these costly seeds need to be bought every year, because their very design is to make seeds nonrenewable, seed that isn’t renewable by its very nature, but whether it’s through patenting systems, intellectual property rights or technologically through hybridization, nonrenewable seed is being sold to farmers so they must buy every year.

There’s a case going on in the Supreme Court of India right now on the monopoly practices of Monsanto. An antitrust court ruled against Monsanto, because the price is so high, farmers necessarily get into a debt trap, which is why I was talking about credit, for the wrong thing, could actually be a problem and not a solution.

In addition, the price of cotton is collapsing under the huge $4 billion subsidies given to agribusiness in the United States, which then dumps cotton on a world market with 50% reduction of price artificially. This is what led to the Cancun failure of WTO, but this is what is killing Indian farmers. Just three days ago, farmers were protesting against the low prices of cotton. They went to the government agency, which before globalization used to buy cotton at a fair price. One farmer was shot dead. So we’re not just seeing suicides, we’re also seeing farmers’ protests treated as a new threat to the regime.

AMY GOODMAN: These descriptions of desperation, up to three farmers a day swallow pesticides, hang themselves from trees, drown themselves in rivers, set themselves on fire, or jump down wells, many of them plagued by debt, poor crops and hopelessness?

VANDANA SHIVA: 90% of the farmer suicides—we’ve studied it. Every year we bring out a report called “Seeds of Suicide.” We started the first report in ’97, which was the first suicide in the district of Warangal in Andhra Pradesh. Andhra Pradesh—

AMY GOODMAN: Where is it in India?

VANDANA SHIVA: Andhra Pradesh is kind of southern India. But Andhra Pradesh had a government that responded, and that’s the government that took Monsanto to court. Vidarbha in Maharashtra has emerged as the epicenter. This is where the Prime Minister visited, because the suicide issue had become so intense. Unfortunately, the Prime Minister offered exactly the same package, more of the same, as a solution. Included in this package is a 20 billion rupee seed replacement package, which means what seed farmers has gets further destroyed, so they have no renewable seed, no affordable seed. They must buy on the market every year. Farmer suicides in Vidarbha are now eight per day.

A few weeks ago, I was in Punjab. 2,800 widows of farmer suicides who have lost their land, are having to bring up children as landless workers on others’ land. And yet, the system does not respond to it, because there’s only one response: get Monsanto out of the seed sector—they are part of this genocide—and ensure WTO rules are not bringing down the prices of agricultural produce in the United States, in Canada, in India, and allow trade to be honest. I don’t think we need to talk about free trade and fair trade. We need to talk about honest trade. Today’s trade system, especially in agriculture, is dishonest, and dishonesty has become a war against farmers. It’s become a genocide.

http://www.democracynow.org/2006/12/13/vandana_shiva_on_farmer_suicides_the

SanDiegoView in
Saturday, June 14 at 06:19 AM

“Are we fighting a war on terror or aren’t we?  Was it or was it not started by Islamic people who brought it to our shores on September 11, 2001?

Were people from all over the world, mostly Americans, not brutally murdered that day, in downtown Manhattan , across the Potomac from our nation’s capitol and in a field in Pennsylvania ?

Did nearly three thousand men, women and children die a horrible, burning or crushing death that day, or didn’t they?

And I’m supposed to care that a copy of the Koran was “desecrated” when an overworked American soldier kicked it or got it wet?...Well, I don’t. I don’t care at all.

I’ll start caring when Osama bin Laden turns himself in and repents for incinerating all those innocent people on 9/11.

I’ll care about the Koran when the fanatics in the Middl e East start caring about the Holy Bible, the mere possession of which is a crime in Saudi Arabia

I’ll care when these thugs tell the world they are sorry for chopping off Nick Berg’s head while Berg screamed through his gurgling slashed throat.

I’ll care when the cowardly so-called “insurgents” in Iraq come out and fight like men instead of disrespecting their own religion by hiding in mosques.

I’ll care when the mindless zealots who blow themselves up in search of nirvana care about the innocent children within range of their suicide .

I’ll care when the American media stops pretending that their First Amendment liberties are somehow derived from international law instead of the United States Constitution’s Bill of Rights.

In the meantime, when I hear a story about a brave marine roughing up an Iraqi terrorist to obtain information, know this: I don’t care.

When I see a fuzzy photo of a pile of naked Iraqi prisoners who have been humiliated in what amounts to a college-hazing incident, rest assured: I don’t care.

When I see a wounded terrorist get shot in the head when he is told not to move because he might be booby-trapped, you can take it to the bank: I don’t care.

When I hear that a pri soner, who was issued a Koran and a prayer mat, and fed “special” food that is paid for by my tax dollars, is complaining that his holy book is being “mishandled,” you can absolutely believe in your heart of hearts: I
don’t care.

And oh, by the way, I’ve noticed that sometimes it’s spelled “Koran” and other times “Quran.” Well, Jimmy Crack Corn and-you guessed it-I don’t care !!

If you agree with this viewpoint, pass this on to all your E-mail friends.  Sooner or later, it’ll get to the people responsible for this ridiculous behavior!

If you don’t ag ree, then by all means hit the delete button. Should you choose the latter, then please don’t complain when more atrocities committed by radical Muslims happen here in our great Country! And may I add:

“Some people spend an entire lifetime wondering if they made a difference
in the world. But, the Marines don’t have that problem”—Ronald Reagan

I have another quote that I would like to add AND.......I hope you forward all this.

“If we ever forget that we’re One Nation Under God, then we will be a nation gone under.” Also by.. Ronald Reagan

One last thought for the day: In case we find ourselves starting to believe all the Anti-American sentiment and negativity, we should remember England’s Prime Minister Tony Blair ‘s words during a recent interview. When asked by one of his Parliament members why he believes so much in America , he said: “A simple way to take measure of a country is to look at how many want in.. And how many want out.”

Only two defining forces have ever offered to die for you:

1. Jesus Christ
2. The American G. I.
One died for your soul, the other for your freedom.

YOU MIGHT WANT TO PASS THIS ON,
AS MANY SEEM TO FORGET BOTH OF THEM

Commander (a real veteran) in
Saturday, June 14 at 09:40 PM

April 16, 2008

Wall Street Winners Get Billion-Dollar Paydays

By JENNY ANDERSON

Hedge fund managers, those masters of a secretive, sometimes volatile financial universe, are making money on a scale that once seemed unimaginable, even in Wall Street’s rarefied realms.

One manager, John Paulson, made $3.7 billion last year. He reaped that bounty, probably the richest in Wall Street history, by betting against certain mortgages and complex financial products that held them.

Mr. Paulson, the founder of Paulson & Company, was not the only big winner. The hedge fund managers James H. Simons and George Soros each earned almost $3 billion last year, according to an annual ranking of top hedge fund earners by Institutional Investor’s Alpha magazine, which comes out Wednesday.

Hedge fund managers have redefined notions of wealth in recent years. And the richest among them are redefining those notions once again.

Their unprecedented and growing affluence underscores the gaping inequality between the millions of Americans facing stagnating wages and rising home foreclosures and an agile financial elite that seems to thrive in good times and bad. Such profits may also prompt more calls for regulation of the industry.

Even on Wall Street, where money is the ultimate measure of success, the size of the winnings makes some uneasy. “There is nothing wrong with it — it’s not illegal,” said William H. Gross, the chief investment officer of the bond fund Pimco. “But it’s ugly.”

The richest hedge fund managers keep getting richer — fast. To make it into the top 25 of Alpha’s list, the industry standard for hedge fund pay, a manager needed to earn at least $360 million last year, more than 18 times the amount in 2002. The median American family, by contrast, earned $60,500 last year.

Combined, the top 50 hedge fund managers last year earned $29 billion. That figure represents the managers’ own pay and excludes the compensation of their employees. Five of the top 10, including Mr. Simons and Mr. Soros, were also at the top of the list for 2006. To compile its ranking, Alpha examined the funds’ returns and the fees that they charge investors, and then calculated the managers’ pay.

Top hedge fund managers made money in many ways last year, from investing in overseas stock markets to betting that prices of commodities like oil, wheat and copper would rise. Some, like Mr. Paulson, profited handsomely from the turmoil in the mortgage market ripping through the economy.

As early as 2005, Mr. Paulson began betting that complex mortgage investments known as collateralized debt obligations would decline in value, much as Wall Street traders bet that shares will drop in price. In that case, known as shorting, they borrow shares and sell them, wait for the price to fall, buy the shares back at a lower price and return them, pocketing the profit.

Then, over the next two years, Mr. Paulson established two funds to focus on the credit markets. One of those funds returned 590 percent last year, and the other handed back 353 percent, according to Alpha. By the end of 2007, Mr. Paulson sat atop $28 billion in assets, up from $6 billion 12 months earlier.

Mr. Soros, one of the world’s most successful speculators and richest men, leapt out of retirement last summer as the market turmoil spread — and he won big. He made $2.9 billion for the year, when his flagship Quantum fund returned almost 32 percent, according to Alpha. Mr. Simon, a mathematician and former Defense Department code breaker who uses complex computer models to trade, earned $2.8 billion. His flagship Medallion fund returned 73 percent.

Like Mr. Paulson, Philip Falcone, who founded Harbinger Partners with $25 million in June 2001, cast a winning bet against the mortgage market. He pulled in returns of 117 percent after fees in 2007 and made $1.7 billion. The trade thrust him from relative obscurity to hedge fund heavyweight: he now manages $18 billion. Harbinger recently won agreement from The New York Times Company to add two members to its board.

Hedge fund managers share their success with their investors, which include wealthy individuals, pension funds and university endowments. They typically charge annual fees equal to 2 percent of their assets under management, and take a 20 percent cut of any profits.

With a combined $2 trillion under management, the hedge fund industry is coming off its richest year ever — a feat all the more remarkable given the billions of dollars of losses suffered by major Wall Street banks.

The working poor also (real veterans) in America
Sunday, June 15 at 08:35 AM

In recent months, however, scores of hedge funds have quietly died or spectacularly imploded, wracked by bad investments, excess borrowing or leverage, and client redemptions — or a combination of those events.

“To some degree it’s a very gigantic version of Las Vegas,” said Gary Burtless, an economist at the Brookings Institution.
As Alpha’s list shows, managers who reap big gains one year can lose the next.

Edward Lampert, the founder of ESL Investments and a member of the 2007 Alpha list, was absent this year. His fund fell 27 percent last year, according to Alpha. About 60 percent of ESL’s equity portfolio is invested in Sears, whose shares plunged 40 percent last year. ESL is also a major holder of Citigroup, whose abysmal performance matched that of Sears.

A manager who ranked high in the 2007 list and fell off in 2008 was James Pallotta of the Tudor Investment Corporation, who was 17th last year and earned $300 million. Mr. Pallotta’s $5.7 billion Raptor Global Fund fell almost 8 percent last year, according to Alpha.

A few who did not make the cut still made buckets of money. Bruce Kovner of Caxton Associates and Barry Rosenstein at Jana Partners didn’t make the top 50. But Mr. Kovner earned $100 million, and Mr. Rothstein earned $170 million, according to Alpha. Spokesmen for the hedge fund managers either declined to comment on Tuesday or could not be reached.

Since 1913, the United States witnessed only one other year of such unequal wealth distribution — 1928, the year before the stock market crashed, according to Jared Bernstein, a senior fellow at the Economic Policy Institute in Washington. Such inequality is likely to impede an economic recovery, he said.

“For a recovery to be robust and sustainable you can’t just have consumer demand at Nordstrom,” he said. “You need it at the little shop on the corner, too.”

Despite the explosive growth of the industry — about 10,000 hedge funds operate worldwide — it is relatively lightly regulated. On Tuesday, two panels appointed by Treasury Secretary Henry M. Paulson Jr. advised hedge funds to adopt guidelines to increase disclosure and risk management.

And Mr. Gross, the fund manager, warned that the widening divide among the richest and everyone else is cause for worry.

“Like at the end of the Gilded Age and the Roaring Twenties, we are going the other way,” Mr. Gross said. “We are clearly in a period of excess, and we have to swing back to the middle or the center cannot hold.”

http://www.nytimes.com/2008/04/16/business/16wall.html

The working poor also (real veterans) in America
Sunday, June 15 at 08:37 AM

“To some degree it’s a very gigantic version of Las Vegas,” said Gary Burtless, an economist at the Brookings Institution.

The only difference being if you lose in Vegas, even if you lose big, the government won’t bail you out like it does ‘free market capitalists’.

Ken V in Texas
Sunday, June 15 at 11:53 AM

You’re right Ken.  There should be no bailouts for business failures.  It defeats rewarding the successful and basically says if you fail don’t worry.  That’s not how things should work in a “free market” economy.

mary in
Sunday, June 15 at 03:07 PM

That’s not how things should work in a “free market” economy.

On this we agree.

The question begs itself, however, is this a flawed free market or just another example of fascism?

Ken V in Texas
Sunday, June 15 at 04:08 PM

Prior to announcing his resignation as New York Governor on March 12th 2008 Eliot Spitzer issued this notification to the Bush legacy less than a month before. 

Predatory Lenders’ Partner in Crime

How the Bush Administration Stopped the States From Stepping In to Help Consumers

By Eliot Spitzer
Thursday, February 14, 2008; A25

Several years ago, state attorneys general and others involved in consumer protection began to notice a marked increase in a range of predatory lending practices by mortgage lenders. Some were misrepresenting the terms of loans, making loans without regard to consumers’ ability to repay, making loans with deceptive “teaser” rates that later ballooned astronomically, packing loans with undisclosed charges and fees, or even paying illegal kickbacks. These and other practices, we noticed, were having a devastating effect on home buyers. In addition, the widespread nature of these practices, if left unchecked, threatened our financial markets.

Even though predatory lending was becoming a national problem, the Bush administration looked the other way and did nothing to protect American homeowners. In fact, the government chose instead to align itself with the banks that were victimizing consumers.

Predatory lending was widely understood to present a looming national crisis. This threat was so clear that as New York attorney general, I joined with colleagues in the other 49 states in attempting to fill the void left by the federal government. Individually, and together, state attorneys general of both parties brought litigation or entered into settlements with many subprime lenders that were engaged in predatory lending practices. Several state legislatures, including New York’s, enacted laws aimed at curbing such practices.

What did the Bush administration do in response? Did it reverse course and decide to take action to halt this burgeoning scourge? As Americans are now painfully aware, with hundreds of thousands of homeowners facing foreclosure and our markets reeling, the answer is a resounding no.

Not only did the Bush administration do nothing to protect consumers, it embarked on an aggressive and unprecedented campaign to prevent states from protecting their residents from the very problems to which the federal government was turning a blind eye.

Let me explain: The administration accomplished this feat through an obscure federal agency called the Office of the Comptroller of the Currency (OCC). The OCC has been in existence since the Civil War. Its mission is to ensure the fiscal soundness of national banks. For 140 years, the OCC examined the books of national banks to make sure they were balanced, an important but uncontroversial function. But a few years ago, for the first time in its history, the OCC was used as a tool against consumers.

In 2003, during the height of the predatory lending crisis, the OCC invoked a clause from the 1863 National Bank Act to issue formal opinions preempting all state predatory lending laws, thereby rendering them inoperative. The OCC also promulgated new rules that prevented states from enforcing any of their own consumer protection laws against national banks. The federal government’s actions were so egregious and so unprecedented that all 50 state attorneys general, and all 50 state banking superintendents, actively fought the new rules.

But the unanimous opposition of the 50 states did not deter, or even slow, the Bush administration in its goal of protecting the banks. In fact, when my office opened an investigation of possible discrimination in mortgage lending by a number of banks, the OCC filed a federal lawsuit to stop the investigation.

Throughout our battles with the OCC and the banks, the mantra of the banks and their defenders was that efforts to curb predatory lending would deny access to credit to the very consumers the states were trying to protect. But the curbs we sought on predatory and unfair lending would have in no way jeopardized access to the legitimate credit market for appropriately priced loans. Instead, they would have stopped the scourge of predatory lending practices that have resulted in countless thousands of consumers losing their homes and put our economy in a precarious position.

When history tells the story of the subprime lending crisis
and recounts its devastating effects on the lives of so many innocent homeowners, the Bush administration will not be judged favorably. The tale is still unfolding, but when the dust settles, it will be judged as a willing accomplice to the lenders who went to any lengths in their quest for profits. So willing, in fact, that it used the power of the federal government in an unprecedented assault on state legislatures, as well as on state attorneys general and anyone else on the side of consumers.

The writer is governor of New York.

http://www.washingtonpost.com/wp-dyn/content/article/2008/02/13/AR2008021302783.html

Bailouts for Bankers in Bush Business World
Sunday, June 15 at 10:30 PM

who cares?

m att hew vantress in gresham,oregon
Monday, June 16 at 06:22 AM

my patriotism is limited to hating people who wont spend their money at wm.if i were to be any more full of shit people would know i am nothing better than a broken toilet for wm so i will zip my lip and remain the fool you have come to know me as already.

m att hew vantress in gresham,oregon
Monday, June 16 at 09:08 AM

also i love being a lameo dung beetle.can someone explain international and corporate greed to me?and remember i don’t really care about anything unrelated to the wm ass kissing championship.

m att hew vantress in gresham,oregon
Monday, June 16 at 10:35 AM

The writer is governor of New York.

Don’t you mean “was”, SVD??

bbrd in
Monday, June 16 at 11:19 AM

The working poor also (real veterans) in America

“With a combined $2 trillion under management, the hedge fund industry is coming off its richest year ever — a feat all the more remarkable given the billions of dollars of losses suffered by major Wall Street banks.”

Just a tid bit to put into perspective on how much a TRILLION dollars is.

If you were to stack THOUSAND dollar bills 4 inches high, that would be 1 MILLION dollars give or take (for the sake of argument and for this demonstration lets say it is million.) A TRILLION dollars would be a stack of THOUSAND dollar bills (get this) <b>62 miles high, that’s right MILES.<b>

I hope that helps to put those numbers in perspective for some out there.

Big D in
Monday, June 16 at 12:52 PM

“Prior to announcing his resignation as New York Governor on March 12th 2008 Eliot Spitzer issued this notification to the Bush legacy less than a month before.”

Reading is fundamental even in bbrd out of context world
Tuesday, June 17 at 02:01 AM

Only two defining forces have ever offered to die for you:

1. Jesus Christ
2. The American G. I.
One died for your soul, the other for your freedom.

YOU MIGHT WANT TO PASS THIS ON,
AS MANY SEEM TO FORGET BOTH OF THEM

Obviously, a few days later, Commander, some have already forgotten (either that, or they choose to run the ol’ spin-o-rama).

You people can call the working poor “real veterans” all you want, but would they be willing to “give all”, if asked to do so?

bbrd in
Tuesday, June 17 at 11:34 AM

You people can call the working poor “real veterans”...

I don’t know who “you people” is, but I call real veterans real veterans. If you served in the military, you are a real veteran.

but would they be willing to “give all”, if asked to do so?

I’m a ‘real veteran’ and I don’t know the answer to that. Thank God I was never “asked to do so”, but I doubt many are “willing” to die. You write like someone that’s never even been close, bbrd.

“No bastard ever won a war by dying for his country. He won it by making the other poor dumb bastard die for his country.” ~ Attributed to General George Patton Jr

Ken V in Texas
Tuesday, June 17 at 08:00 PM

Ken - I always say, that if you are working and are ‘poor’, you’re not doing it right.

jerry in
Wednesday, June 18 at 12:01 AM

We love you too, jerry.

Walmart public relations always in need of ass kissing types
Thursday, June 19 at 04:47 AM

SDV;re: Monsanto and Eugenics, the Heritage Foundation and Heritage’s spin-off organization, the Center for Education Reform [CER]~~~~~~~~~~~

Trusted “Christian” organizations, while using the pro-family, pro-Christian and anti-one world themes, are a conscious and willing part of a multi-layered apparatus as they work in partnership with Heritage-linked organizations. One deceptive aim is to deliver large numbers of trusting people to the United Nation’s/ GOALS 2000’s “reinvention” of education. Elsewhere, the Heritage Foundation and CNP member orgs such as Focus on the Family continue to operate on the “mass” as they work to seal the church/state bond through “faith-based” legislation, a plan whereby churches will receive federal grants for participation in community programs. Never mind that the churches then become organs of the state.

Monsanto: At Highest Levels of Power
“Monsanto has close connections to those at the highest levels power, especially in the field of agriculture, in Bush’s new cabinet. The Monsanto Agricultural Company produced one of the most controversial drugs ever to gain approval in the United State. Their genetically engineered bovine growth hormone has caused cancer in laboratory animals; it has been banned in Europe and Canada. During the 2000 elections Monsanto donated hundreds of thousands of dollars to political candidates. However, the connections between the presidential office today and Monsanto are much more wide reaching than most people realise. John Ashcroft, Attorney General, was given the most in donations by Monsanto (five times more than anybody else). In second place for donations was Larry Combest, the Chairman of the House Agriculture Committee. Combest named Richard Pombo to Head Agriculture’s Dairy, Livestock and Poultry Sub-committee. In the past Pombo has received money from Monsanto while voting on a bill that was going to effect the future of Monsanto and biotechnology generally. George Bush Senior appointed Monsanto’s lawyer to the Supreme Court, a force instrumental in the handing of the election to George W. Bush. Donald Rumsfeld, Secretary of Defense, and Ann Veneman, Secretary of Agriculture, have both been at the top or near the top levels of power in companies purchased by Monsanto. Secretary of Health, Tommy Thompson has received money from Monsanto during his election campaign. He has used state funds to set up a biotech zone in Wisconsin for $317 million. Mitch Daniels, Director of the Office of Management and Budget, was the vice president of another company that developed the hormone with Monsanto, Eli Lilly. Since Lilly ‘owns’ the European franchise, Mitch Daniel’s position will help get the hormone approved in Europe.” 2.

ddrb in
Thursday, June 19 at 08:51 AM

CHARTER SCHOOLS ADVOCACY ALLIANCE:
The Eugenics Internationale

Behind the “conservative/Christian” curtain of perceived grassroots organizations exists a vast consortium of institutions run by an interlocking directorate of global power brokers. Global politics is already under the control of the super-rich, large corporations and the international bankers who are king-makers. The Council on Foreign Relations (US) and its corresponding organization, the Royal Institute of International Affairs (UK), were behind the creation of communism and fascism; wars, revolutions and economic crises are also mechanisms by which they destroy the sovereignty of nations.  The CFR/RIIA have established a global network of power elites with institutional affiliations who currently occupy strategic positions at the upper end of the corporate sector (industrial, utilities, banks, insurance, investments), the public interest sector (media, education, foundations, law, civic and cultural organizations), and the governmental sector (legislative, executive, judicial, military). The individuals occupying these positions frequently hold several of these positions simultaneously, which is further evidence of a concentration of power at the top.

The CFR and RIIA were creations of the Cecil Rhodes’ Round Table groups, whose stated objective was the federation, expansion and consolidation of the British Empire. What Cecil Rhodes and Alfred Milner really had in mind was the restructuring of civilization based upon the principles of Malthusian Eugenics. Eugenics is the philosophy of depopulation through the reduction of inferior races –“human weeds,” if you will – and the selective breeding of “a race of thoroughbreds” as flaunted early in this century by the Rockefeller-funded, founder of Planned Parenthood, Margaret Sanger. When Thomas Malthus’ theory of population was coupled with Charles Darwin’s evolutionary model, the result was known as Social Darwinism—the ethical fallacy that social policy should allow the weak and unfit to fail and die, and that this is not only good policy but morally right.

“The combination of Malthusian population control, which included the deliberate neglect of populations and indirect methods of killing off populations, with Darwinism, produced National Socialism (Germany), International Socialism (Marxist Russia) and International Corporate Capitalism (Global Socialism, headquartered in the United States), and these forms of social conduct have constituted the main reason for the unequal distribution of planetary resources, famines, planned biological warfare, environmental poisoning, suppression of knowledge, suppression of inventions, dependence on backward technology for the population, planned wars to kill off populations and general planetary disorder. The problem is in the Social Darwin-Malthus paradigm, which has now been combined with the pseudo-sciences of behaviorism and genetics in the attempt to assert even tighter control over the planetary population, yielding forms of Neo-Darwinism being perpetrated by a host of post-Atlantean re-treads, per a 1947 Princeton consensus.”
~~~~~~~~~~~~~~

ddrb in
Thursday, June 19 at 08:55 AM

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