April, 06 2011, 12:00am EDT
The 'Down With Dodd-Frank' Routine
Statement of Bartlett Naylor, Financial Policy Advocate, Public Citizen’s Congress Watch Division
WASHINGTON
It's now a routine: Every Wednesday, it's "Down With Dodd-Frank" day on the Hill. For the third Wednesday in a row, Republicans in control of the U.S. House of Representatives Financial Services Committee have held a hearing legislation that threatens to stall or reverse the reforms of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Today, the Subcommittee on Financial Institutions and Consumer Credit, chaired by Rep. Shelley Moore Capito (R-W.Va.), held a hearing principally focused on the consumer protection features of Dodd-Frank and measures to strip key provisions.
If Dodd-Frank is weakened, the loser, of course, is the American public, which is still mired in an abyss of unemployment, foreclosures and a grim economic future. We need an effective consumer agency to prevent Wall Street rip-offs from odious financial products taking billions of dollars from Main Street to line the pockets of corporate CEOs.
Public Citizen is a nonprofit consumer advocacy organization that champions the public interest in the halls of power. We defend democracy, resist corporate power and work to ensure that government works for the people - not for big corporations. Founded in 1971, we now have 500,000 members and supporters throughout the country.
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Defeating 'MAGA Dark Money,' Summer Lee Wins Primary in Landslide
"This is a huge testament to our collective strength and resilience as a progressive movement," said the executive director of Justice Democrats.
Apr 24, 2024
U.S. Rep. Summer Lee, a member of the progressive "Squad," won the Democratic primary for Pennsylvania's 12th Congressional District on Tuesday, fending off an opponent whose campaign was backed by a billionaire Republican megadonor and ally of Israeli Prime Minister Benjamin Netanyahu.
Lee, a vocal critic of the Netanyahu government and leading supporter of a cease-fire in Gaza, handily defeated Bhavini Patel, a borough councilmember in Edgewood, Pennsylvania whose effort to unseat the progressive incumbent was bankrolled by Jeffrey Yass, the state's richest man. Patel actively courted Republican and pro-Israel voters, characterizing Lee as "fringe."
With more than 95% of the vote counted, Lee is ahead of Patel by more than 20 percentage points.
"I am so humbled and proud to win my first primary reelection to be the congresswoman for this incredible district I've spent my life fighting for," Lee said after the race was called in her favor. "Our campaign was built on a record of delivering for our democracy, defending our most fundamental rights, and expanding our vision for what is politically possible for our region's most marginalized communities."
"Our victory is a rejection of right-wing interests and Republican billionaires using corporate super PACs to target Black and brown Democrats in our primaries—be it AIPAC or Moderate PAC or any other MAGA billionaire in Democratic clothing," Lee added. "Western PA is the blueprint for the future all of America deserves."
Opposing genocide is good politics and good policy. #CeasefireNOW https://t.co/A7pnJNskWS
— Summer Lee (@SummerForPA) April 24, 2024
Through the misleadingly named Moderate PAC, Yass—a prolific tax dodger who has been floated as a possible treasury secretary pick if former President Donald Trump wins another term—spent hundreds of thousands of dollars boosting Patel and attacking Lee.
Rahna Epting, executive director of MoveOn Political Action, said that by ushering Lee to victory, residents of Pennsylvania's 12th District "soundly rejected MAGA dark money."
"MoveOn members are ready to defeat this dangerous flood of dark-money spending against progressive champions and ensure that we continue to elect working-class people to Congress," said Epting.
"Now that it's clear Summer won her primary, AIPAC's super PAC has already officially failed at their one goal for this cycle: taking out the entire Squad."
During her 2022 campaign, Lee faced and overcame huge spending by the powerful pro-Israel lobbying group AIPAC via its super PAC, the United Democracy Project. But the organization opted to stay on the sidelines this time around, even as it plans to spend $100 million to defeat progressives in this year's cycle amid growing public opposition to Israel's war on Gaza.
"They had every intention of spending in this race—but they didn't, because they realized they would likely lose," Justice Democrats executive director Alexandra Rojas wrote in an email late Tuesday. "And that is because all of us had Summer's back and supported her campaign to out-organize AIPAC in every way."
"This is a huge testament to our collective strength and resilience as a progressive movement," said Rojas. "Now that it's clear Summer won her primary, AIPAC's super PAC has already officially failed at their one goal for this cycle: taking out the entire Squad."
While AIPAC ultimately sat out the Pennsylvania race, it is devoting considerable resources to ousting other progressive lawmakers, including Reps. Jamaal Bowman (D-N.Y.) and Cori Bush (D-Mo.).
The pro-Israel lobbying group has endorsed Bush challenger Wesley Bell, calling him a "strong advocate for the U.S.-Israel relationship." As The Guardianreported last week, Bell has "raised more than $650,000 in earmarked contributions through the group Democracy Engine Inc. PAC—a donation platform that allows unpopular PACs to obscure their donations and lists AIPAC as a client on its LinkedIn page."
AIPAC is the largest donor to Bowman challenger George Latimer, who has supported Israel's war on Gaza and denied that Israel is committing genocide. The Democratic primary for New York's 16th Congressional District is on June 25.
We must be clear-eyed about what's next. @JamaalBowmanNY & @CoriBush are facing an existential threat from AIPAC, their GOP megadonors, and the politicians willing to compromise on core Democratic values to try to take a school principal & nurse out of Congress. #ProtectTheSquad
— Justice Democrats (@justicedems) April 24, 2024
Michele Weindling, political director of the youth-led Sunrise Movement, said Tuesday that following Lee's victory, "we're ramping up to take on AIPAC in Jamaal Bowman's race."
"With a candidate like George Latimer willing to sell their lies to the district, we are going to prove once again that a politician's commitment to their community beats dark money every time," said Weindling. "Whether it's in Pittsburgh or New York, Minneapolis or St. Louis, our generation is going to send billionaires packing and reelect the squad."
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Critics Blast 'Reckless and Impossible' Bid to Start Operating Mountain Valley Pipeline
"The time to build more dirty and dangerous pipelines is over," said one environmental campaigner.
Apr 23, 2024
Environmental defenders on Tuesday ripped the company behind the Mountain Valley Pipeline for asking the federal government—on Earth Day—for permission to start sending methane gas through the 303-mile conduit despite a worsening climate emergency caused largely by burning fossil fuels.
Mountain Valley Pipeline LLC sent a letter Monday to Federal Energy Regulatory Commission (FERC) Acting Secretary Debbie-Anne Reese seeking final permission to begin operation on the MVP next month, even while acknowledging that much of the Virginia portion of the pipeline route remains unfinished and developers have yet to fully comply with safety requirements.
"In a manner typical of its ongoing disrespect for the environment, Mountain Valley Pipeline marked Earth Day by asking FERC for authorization to place its dangerous, unnecessary pipeline into service in late May," said Jessica Sims, the Virginia field coordinator for Appalachian Voices.
"MVP brazenly asks for this authorization while simultaneously notifying FERC that the company has completed less than two-thirds of the project to final restoration and with the mere promise that it will notify the commission when it fully complies with the requirements of a consent decree it entered into with the Pipeline and Hazardous Materials Safety Administration last fall," she continued.
"Requesting an in-service decision by May 23 leaves the company very little time to implement the safety measures required by its agreement with PHMSA," Sims added. "There is no rush, other than to satisfy MVP's capacity customers' contracts—a situation of the company's own making. We remain deeply concerned about the construction methods and the safety of communities along the route of MVP."
Russell Chisholm, co-director of the Protect Our Water, Heritage, Rights (POWHR) Coalition—which called MVP's request "reckless and impossible"—said in a statement that "we are watching our worst nightmare unfold in real-time: The reckless MVP is barreling towards completion."
"During construction, MVP has contaminated our water sources, destroyed our streams, and split the earth beneath our homes. Now they want to run methane gas through their degraded pipes and shoddy work," Chisholm added. "The MVP is a glaring human rights violation that is indicative of the widespread failures of our government to act on the climate crisis in service of the fossil fuel industry."
POWHR and activists representing frontline communities affected by the pipeline are set to take part in a May 8 demonstration outside project financier Bank of America's headquarters in Charlotte, North Carolina.
Appalachian Voices noted that MVP's request comes days before pipeline developer Equitrans Midstream is set to release its 2024 first-quarter earnings information on April 30.
MVP is set to traverse much of Virginia and West Virginia, with the Southgate extension running into North Carolina. Outgoing U.S. Sen. Joe Manchin (D-W.Va.) and other pipeline proponents fought to include expedited construction of the project in the debt ceiling deal negotiated between President Joe Biden and congressional Republicans last year.
On Monday, climate and environmental defenders also petitioned the U.S. Court of Appeals for the D.C. Circuit, challenging FERC's approval of the MVP's planned Southgate extension, contending that the project is so different from original plans that the government's previous assent is now irrelevant.
"Federal, state, and local elected officials have spoken out against this unneeded proposal to ship more methane gas into North Carolina," said Sierra Club senior field organizer Caroline Hansley. "The time to build more dirty and dangerous pipelines is over. After MVP Southgate requested a time extension for a project that it no longer plans to construct, it should be sent back to the drawing board for this newly proposed project."
David Sligh, conservation director at Wild Virginia, said: "Approving the Southgate project is irresponsible. This project will pose the same kinds of threats of damage to the environment and the people along its path as we have seen caused by the Mountain Valley Pipeline during the last six years."
"FERC has again failed to protect the public interest, instead favoring a profit-making corporation," Sligh added.
Others renewed warnings about the dangers MVP poses to wildlife.
"The endangered bats, fish, mussels, and plants in this boondoggle's path of destruction deserve to be protected from killing and habitat destruction by a project that never received proper approvals in the first place," Center for Biological Diversity attorney Perrin de Jong said. "Our organization will continue fighting this terrible idea to the bitter end."
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'Seismic Win for Workers': FTC Bans Noncompete Clauses
Advocates praised the FTC "for taking a strong stance against this egregious use of corporate power, thereby empowering workers to switch jobs and launch new ventures, and unlocking billions of dollars in worker earnings."
Apr 23, 2024
U.S. workers' rights advocates and groups celebrated on Tuesday after the Federal Trade Commission voted 3-2 along party lines to approve a ban on most noncompete clauses, which Democratic FTC Chair Lina Khansaid "keep wages low, suppress new ideas, and rob the American economy of dynamism."
"The FTC's final rule to ban noncompetes will ensure Americans have the freedom to pursue a new job, start a new business, or bring a new idea to market," Khan added, pointing to the commission's estimates that the policy could mean another $524 for the average worker, over 8,500 new startups, and 17,000 to 29,000 more patents each year.
As Economic Policy Institute (EPI) president Heidi Shierholz explained, "Noncompete agreements are employment provisions that ban workers at one company from working for, or starting, a competing business within a certain period of time after leaving a job."
"These agreements are ubiquitous," she noted, applauding the ban. "EPI research finds that more than 1 out of every 4 private-sector workers—including low-wage workers—are required to enter noncompete agreements as a condition of employment."
The U.S. Chamber of Commerce has suggested it plans to file a lawsuit that, as The American Prospectdetailed, "could more broadly threaten the rulemaking authority the FTC cited when proposing to ban noncompetes."
Already, the tax services and software provider Ryan has filed a legal challenge in federal court in Texas, arguing that the FTC is unconstitutionally structured.
Still, the Democratic commissioners' vote was still heralded as a "seismic win for workers." Echoing Khan's critiques of such noncompetes, Public Citizen executive vice president Lisa Gilbert declared that such clauses "inflict devastating harms on tens of millions of workers across the economy."
"The pervasive use of noncompete clauses limits worker mobility, drives down wages, keeps Americans from pursuing entrepreneurial dreams and creating new businesses, causes more concentrated markets, and keeps workers stuck in unsafe or hostile workplaces," she said. "Noncompete clauses are both an unfair method of competition and aggressively harmful to regular people. The FTC was right to tackle this issue and to finalize this strong rule."
Morgan Harper, director of policy and advocacy at the American Economic Liberties Project, praised the FTC for "listening to the comments of thousands of entrepreneurs and workers of all income levels across industries" and finalizing a rule that "is a clear-cut win."
Demand Progress' Emily Peterson-Cassin similarly commended the commission "for taking a strong stance against this egregious use of corporate power, thereby empowering workers to switch jobs and launch new ventures, and unlocking billions of dollars in worker earnings."
While such agreements are common across various industries, Teófilo Reyes, chief of staff at the Restaurant Opportunities Centers United, said that "many restaurant workers have been stuck at their job, earning as low as $2.13 per hour, because of the noncompete clause that they agreed to have in their contract."
"They didn't know that it would affect their wages and livelihood," Reyes stressed. "Most workers cannot negotiate their way out of a noncompete clause because noncompetes are buried in the fine print of employment contracts. A full third of noncompete clauses are presented after a worker has accepted a job."
Student Borrower Protection Center (SBPC) executive director Mike Pierce pointed out that the FTC on Tuesday "recognized the harmful role debt plays in the workplace, including the growing use of training repayment agreement provisions, or TRAPs, and took action to outlaw TRAPs and all other employer-driven debt that serve the same functions as noncompete agreements."
Sandeep Vaheesan, legal director at Open Markets Institute, highlighted that the addition came after his group, SBPC, and others submitted comments on the "significant gap" in the commission's initial January 2023 proposal, and also welcomed that "the final rule prohibits both conventional noncompete clauses and newfangled versions like TRAPs."
Jonathan Harris, a Loyola Marymount University law professor and SBPC senior fellow, said that "by also banning functional noncompetes, the rule stays one step ahead of employers who use 'stay-or-pay' contracts as workarounds to existing restrictions on traditional noncompetes. The FTC has decided to try to avoid a game of whack-a-mole with employers and their creative attorneys, which worker advocates will applaud."
Among those applauding was Jean Ross, president of National Nurses United, who said that "the new FTC rule will limit the ability of employers to use debt to lock nurses into unsafe jobs and will protect their role as patient advocates."
Angela Huffman, president of Farm Action, also cheered the effort to stop corporations from holding employees "hostage," saying that "this rule is a critical step for protecting our nation's workers and making labor markets fairer and more competitive."
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