May, 22 2012, 03:23pm EDT
Bill Introduced to End Conflicts of Interest at the Federal Reserve
WASHINGTON
Sen. Bernie Sanders (I-Vt.) today introduced legislation to prohibit banking industry executives from serving as directors of the 12 Federal Reserve regional banks.
Sen. Barbara Boxer (D-Calif.) is an original co-sponsor of the measure to end conflicts of interest involving regulators and the financial institutions they regulate. She joined Sanders at a Capitol news conference. Sen. Mark Begich (D-Alaska) also is a co-sponsor of the bill.
A Government Accountability Office audit - conducted pursuant to a Sanders provision in the Dodd-Frank Wall Street Reform law - found that allowing members of the banking industry to both elect and serve on the Federal Reserve's board of directors creates "an appearance of a conflict of interest" and poses "reputational risks" to the Federal Reserve System.
The recent multi-billion-dollar trading loss at JPMorgan Chase underscored the need to structurally reform the Federal Reserve System to make a more democratic institution responsive to the needs of ordinary Americans, not just Wall Street CEOs.
"It is a blatant conflict of interest for Jamie Dimon, the CEO and chairman of JPMorgan Chase, to serve on the New York Fed's board of directors," Sanders said. "If this is not a clear example of the fox guarding the henhouse, I don't know what is."
"Allowing bank presidents to play such an important role at the Fed - the institution that regulates their industry - is a conflict of interest, plain and simple, and it must come to an end. This legislation will help restore the confidence of the American people that the Fed is a truly independent entity," Boxer said.
The Federal Reserve is responsible for both supervising the financial services sector and deciding whether to provide bank holding companies low-interest loans through the discount window.
Under current law, two-thirds of the Federal Reserve Bank board members are directly appointed by the financial services industry and one-third of the Fed directors are employed in the financial services industry that the Fed is in charge of regulating.
Under the legislation, no one who works for or invests in a firm eligible to receive direct financial assistance from the Fed would be allowed to sit on the Fed's board of directors or be employed by the Fed.
The measure also would prohibit Federal Reserve employees or board members from owning stock or investing in companies that the Fed oversees, regulates and supervises without any exceptions or waivers.
To read Sanders' full statement, click here.
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Amnesty Urges War Crimes Probe of 'Indiscriminate' Israeli Attacks on Lebanon
"The latest evidence of unlawful airstrikes during Israel's most recent offensive in Lebanon underscores the urgent need for all states, especially the United States, to suspend arms transfers," said one campaigner.
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Amnesty International on Thursday called for a war crimes investigation into recent Israeli airstrikes in Lebanon that killed dozens of civilians, as well as a suspension of arms transfers to Israel as it attacks Gaza, the West Bank, and Syria.
In a briefing paper titled The Sky Rained Missiles, Amnesty "documented four illustrative cases in which unlawful Israeli strikes killed at least 49 civilians" in Lebanon in September and October amid an Israel Defense Forces (IDF) campaign of invasion and bombardment that Lebanese officials say has killed or wounded more than 20,000 people.
"Amnesty International found that Israeli forces unlawfully struck residential buildings in the village of al-Ain in northern Bekaa on September 29, the village of Aitou in northern Lebanon on October 14, and in Baalbeck city on October 21," the rights group said. "Israeli forces also unlawfully attacked the municipal headquarters in Nabatieh in southern Lebanon on October 16."
Erika Guevara Rosas, Amnesty's senior director for research, advocacy, policy, and campaigns, said in a statement that "these four attacks are emblematic of Israel's shocking disregard for civilian lives in Lebanon and their willingness to flout international law."
The September 29 attack "destroyed the house of the Syrian al-Shaar family, killing all nine members of the family who were sleeping inside," the report states.
"This is a civilian house, there is no military target in it whatsoever," village mukhtar, or leader, Youssef Jaafar told Amnesty. "It is full of kids. This family is well-known in town."
On October 16, Israel bombed the Nabatieh municipal complex, killing Mayor Ahmad Khalil and 10 other people.
"The airstrike took place without warning, just as the municipality's crisis unit was meeting to coordinate deliveries of aid, including food, water, and medicine, to residents and internally displaced people who had fled bombardment in other parts of southern Lebanon," Amnesty said, adding that there was no apparent military target in the immediate area.
In the deadliest single strike detailed in the Amnesty report, IDF bombardment believed to be targeting a suspected Hezbollah member killed 23 civilians forcibly displaced from southern Lebanon in Aitou on October 14.
"The youngest casualty was Aline, a 5-month-old baby who was flung from the house into a pickup truck nearby and was found by rescue workers the day after the strike," Amnesty said.
Survivor Jinane Hijazi told Amnesty: "I've lost everything; my entire family, my parents, my siblings, my daughter. I wish I had died that day too."
As the report notes:
A fragment of the munition found at the site of the attack was analyzed by an Amnesty International weapons expert and based upon its size, shape, and the scalloped edges of the heavy metal casing, identified as most likely a MK-80 series aerial bomb, which would mean it was at least a 500-pound bomb. The United States is the primary supplier of these types of munitions to Israel.
"The means and method of this attack on a house full of civilians likely would make this an indiscriminate attack and it also may have been disproportionate given the presence of a large number of civilians at the time of the strike," Amnesty stressed. "It should be investigated as a war crime."
The October 21 strike destroyed a building housing 13 members of the Othman family, killing two women and four children and wounding seven others.
"My son woke me up; he was thirsty and wanted to drink. I gave him water and he went back to sleep, hugging his brother," survivor Fatima Drai—who lost her two sons Hassan, 5, and Hussein, 3, in the attack—told Amnesty.
"When he hugged his brother, I smiled and thought, I'll tell his father how our son is when he comes back," she added. "I went to pray, and then everything around me exploded. A gas canister exploded, burning my feet, and within seconds, it consumed my kids' room."
Guevara Rosas said: "These attacks must be investigated as war crimes. The Lebanese government must urgently call for a special session at the U.N. Human Rights Council to establish an independent investigative mechanism into the alleged violations and crimes committed by all parties in this conflict. It must also grant the International Criminal Court jurisdiction over Rome Statute crimes committed on Lebanese territory."
"Israel has an appalling track record of carrying out unlawful airstrikes in Gaza and past wars in Lebanon taking a devastating toll on civilians."
Last month, the court issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Israeli Defense Minister Yoav Gallant for alleged war crimes and crimes against humanity in connection with Israel's 433-day Gaza onslaught, which has left more than 162,000 Palestinians dead, maimed, or missing in the embattled enclave.
The tribunal also issued a warrant for the arrest of Hamas leader Mohammed Diab Ibrahim Al-Masri for alleged crimes committed during and after the October 7, 2023 attack on Israel, in which more than 1,100 people were killed and over 240 others were kidnapped.
Meanwhile, the International Court of Justice is weighing a genocide case brought by South Africa against Israel. Last week, Amnesty published a report accusing Israel of genocide in Gaza.
The United States—which provides Israel with tens of billions of dollars in military aid and diplomatic cover—has also been accused of complicity in Israeli war crimes in Palestine and Lebanon.
"Israel has an appalling track record of carrying out unlawful airstrikes in Gaza and past wars in Lebanon taking a devastating toll on civilians," Guevara Rosas said. "The latest evidence of unlawful air strikes during Israel's most recent offensive in Lebanon underscores the urgent need for all states, especially the United States, to suspend arms transfers to Israel due to the risk they will be used to commit serious violations of international humanitarian law."
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Echoing recent warnings from economists, business leaders, news reporting, and immigrant rights groups, Democrats on the congressional Joint Economic Committee detailed Thursday how President-elect Donald Trump's planned mass deportations "would deliver a catastrophic blow to the U.S. economy."
"Though the U.S. immigration system remains broken, immigrants are crucial to growing the labor force and supporting economic output," states the new report from JEC Democrats. "Immigrants have helped expand the labor supply, pay nearly $580 billion a year in taxes, possess a spending power of $1.6 trillion a year, and just last year contributed close to $50 billion each in personal income and consumer spending."
There are an estimated 11.7 million undocumented immigrants in the United States, and Trump—who is set to be sworn in next month—has even suggested he would deport children who are American citizens with their parents who are not and attempt to end birthright citizenship.
Citing recent research by the American Immigration Council and the Peterson Institute for International Economics, the JEC report warns that depending on how many immigrants are forced out of the country, Trump's deportations could:
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- Reduce the supply of workers for key industries, including by up to 225,000 workers in agriculture and 1.5 million workers in construction;
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Highlighting how mass deportations would harm not only undocumented immigrants but also U.S. citizens, the report explains that construction worker losses would "make housing even harder to build, raising its cost," and "reduce the supply of farmworkers who keep Americans fed as well as the supply of home health aides at a time when more Americans are aging and requiring assistance."
In addition to reducing home care labor, Trump's deportation plan would specifically harm seniors by reducing money for key government benefits that only serve U.S. citizens. The report references estimates that it "would cut $23 billion in funds for Social Security and $6 billion from Medicare each year because these workers would no longer pay into these programs."
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Along with laying out the economic toll of Trump's promised deportations, the JEC report makes the case that "providing a pathway to citizenship is good economics. Immigrants are helping meet labor demand while also demonstrating that more legal pathways to working in the United States are needed to meet this demand."
"Additionally, research shows that expanding legal immigration pathways can reduce irregular border crossings, leading to more secure and regulated borders," the publication says. "This approach is vital for managing increased migration to the United States, especially as more people flee their home countries due to the continued risk of violence, persecution, economic conditions, natural disasters, and climate change."
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One advocate called the CFPB's new rule "a major milestone in its effort to level the playing field between regular people and big banks."
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The Consumer Financial Protection Bureau, one of President-elect Donald Trump's top expected targets as he plans to dismantle parts of the federal government after taking office in January, announced on Thursday its latest action aimed at saving households across the U.S. hundreds of dollars in fees each year.
The agency issued a final rule to close a 55-year-old loophole that has allowed big banks to collect billions of dollars in overdraft fees from consumers each year,
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"The CFPB is cracking down on these excessive junk fees and requiring big banks to come clean about the interest rate they're charging on overdraft loans."
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The Federal Reserve Board exempted banks from Truth in Lending Act protections in 1969, allowing them to charge overdraft fees without disclosing their terms to consumers.
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