April, 22 2020, 12:00am EDT
WASHINGTON
Environmental, community, and justice groups who have called for greater oversight of the Federal Reserve's (the Fed) lending programs in response to the coronavirus crisis praised two letters sent to the Fed from Democratic lawmakers. Senators sent a letter Monday followed by a letter from members of Congress on Wednesday. Both letters called for greater oversight of the Fed program for which BlackRock was hired as the third-party investment manager, and urged the Fed to take climate risk into account.
"It's critical that federal relief funds are not used as a backdoor bailout for fossil fuel companies," said Sierra Club campaign representative Ben Cushing. "We applaud these Democrats for working to ensure much-needed transparency and accountability."
Both letters ask for full transparency on the terms and criteria guidelines of the program with the senators' letter saying: "We request that you publicly disclose the investment guidelines FRBNY provides its third-party investment manager, BlackRock Financial Markets Advisory; and that you publicly disclose in a timely and ongoing manner the details of all corporate debt purchases over the course of the programs."
Both letters also ask the Fed to take climate risk into account during its Covid-19 response. The senators write "the U.S. financial system's blindness to climate financial risks means that our response to the current economic crisis will make a future climate crisis more likely," and "the Fed should accelerate its efforts to better understand and price climate financial risks before it is too late." The congressional letter also asks the Fed to "submit a plan to Congress within 90 days that demonstrates how the Fed will ensure that BlackRock's activities can build a more resilient economy and diminish the long-term risks of corporate debt and climate change."
A few days after the Fed's programs were first announced in late March, over 30 public interest and environmental organizations issued a letter to the Fed asking for specific oversight of BlackRock's management of the massive new corporate debt purchase program. They also made clear that resilience to climate shocks should be part of the Fed's response to the Covid-19 crisis.
"Getting our economy through this global pandemic is vitally important, but we can't afford to accelerate climate change in the process. It's encouraging to see Senate Democrats pushing for climate risk to be taken into account," said Moira Birss, Finance Campaign Director at Amazon Watch. "Fossil fuels are inconsistent with goals to manage the climate crisis and many were failing before this crisis hit. Propping them up now is unacceptable for any prudent fiscal policy."
Yesterday, Reuters reported that the Independent Petroleum Association of America (IPAA) is asking the Fed "to reconsider a provision that bars eligible borrowers from using the cash (from the Main Street Lending Program) to repay other loan balances and requires borrowers to promise to repay the Fed before other debt of equal or lower priority." While this is a different Fed program from the one BlackRock was hired to manage, it shows that the oil and gas industry is now actively seeking bailouts from the U.S. government after oil prices plunged into negatives this week.
"It's good to see Democrats stepping up to call for more oversight, transparency, and climate accountability, even as the oil industry actively lobbies for bailouts and Republicans try to insert a pro-corporate agenda into stimulus efforts," said Rachel Curley, Democracy Advocate for Public Citizen's Congress Watch division. "In a time of crisis we should not be giving no- strings- attached bailouts and lucrative contracts to huge corporations while workers across this country are struggling to provide for their families."
The fossil fuel industry's attempts to profit from the coronavirus crisis and bailout packages have been well-documented by numerous watchdog groups. Last week, the Trump Administration floated the idea of paying oil companies billions of dollars to keep oil in the ground during the economic downturn. The next day, the Environmental Protection Agency weakened mercury pollution standards on coal-fired power plants and oil refineries.
Environmental groups will continue to play a watchdog role on the Fed, BlackRock, and other government agencies who are administering parts of the coronavirus bailout and recovery package. Today's letter is evidence that Congressional Democrats are increasingly on the case, as well.
The Sierra Club is the most enduring and influential grassroots environmental organization in the United States. We amplify the power of our 3.8 million members and supporters to defend everyone's right to a healthy world.
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UK Voters Send 'Shout' for Change to Tories as Labour Sweeps in Local Elections
"We are probably looking at certainly one of the worst, if not the worst, Conservative performances in local government elections for the last 40 years," said one analyst.
May 03, 2024
Nearly two weeks after the British Conservative Party pushed through a proposal to deport asylum-seekers to Rwanda in what one lawyer called "performative cruelty" in the name of winning the general election expected later this year, the local election results announced throughout the day Friday made increasingly clear the ploy hadn't worked.
Elections expert John Curtice projected the Tories could ultimately lose up to 500 local council seats as vote counting continues into the weekend, following elections in which voters cast ballots for 2,661 seats.
The Conservatives have lost around half of the seats they are defending Curtice told BBC Radio.
"We are probably looking at certainly one of the worst, if not the worst, Conservative performances in local government elections for the last 40 years," the polling expert said.
Curtice added that if the results were replicated in a general election, Labour would likely win 34% of the vote, with the Tories winning 25%—five years after the right-wing party won in a landslide in the last nationwide contest.
Labour leader Keir Starmer said the results represented a decisive call for "change" from British voters, particularly applauding the results of a special election in Blackpool South, where Labour candidate Chris Webb won nearly 11,000 votes while Conservative David Jones came in a distant second with just over 3,200.
Webb's victory represented a 26% swing in favor of Labour.
"That's the fifth swing of over 20% to the Labour party in by elections in recent months and years. It is a fantastic result, a really first class result," Starmer said. "And here in Blackpool, a message has been sent directly to the prime minister, because this was a parliamentary vote, to say we're fed up with your decline, your chaos... your division and we want change. We want to go forward with Labour."
"That wasn't just a little message," he added. "That wasn't just a murmur. That was a shout from Blackpool. We want to change. And Blackpool speaks for the whole country in saying we've had enough now, after 14 years of failure, 14 years of decline."
The Conservatives also lost ground in the northern town of Hartlepool, where they lost six council seats. The region swung toward the Tories after the party led the push for Brexit, the U.K.'s exit from the European Union.
A similar result was recorded in York and North Yorkshire, which includes the area Conservative Prime Minister Rishi Sunak represented as a member of Parliament.
"Yorkshire voted for Brexit in 2016," wrote William Booth, London bureau chief for The Washington Post. "But long gone are the days when many Conservatives want to stand before the voters and extol the advantages of leaving the European Union, which has been, in most sectors, a flop."
Sunak, added Booth, is "betting that immigration is still an issue with resonance and has promised to 'stop the boats,' the daily spectacle of desperate migrants risking their lives on rubber rafts trying to cross the English Channel. Sunak's government plans to fly asylum seekers arriving by boat to Rwanda. No flights have taken off yet. But the Home Office last week began a self-proclaimed 'large scale' operation to detain asylum seekers destined for removal."
The Labour Party has called Sunak's Rwanda plan a "gimmick" and said it would reverse a Tory policy blocking refugees from applying for asylum.
Average wages in the U.K. last year were "back at the level during the 2008 financial crisis, after taking account of inflation," according toThe Guardian.
"This 15 years of lost wage growth is estimated by the Resolution Foundation thinktank to have cost the average work £10,700 ($13,426) a year," reported the newspaper in March. "The performance has been ranked as the worst period for pay growth since the Napoleonic wars ended in 1815."
Analysts noted one setback for Labour in Oldham, where the party lost some seats in areas with large numbers of Muslim voters to independent candidates, costing it overall control of the council.
Arooj Shah, the Labour leader of the Oldham Council, told the BBC that the party's support for Israel in its bombardment of Gaza was behind its losses.
"Gaza is clearly an issue for anyone with an ounce of humanity in them, but we've asked for an immediate cease-fire right from the start," said Shah. "We have a rise of independents because people think mainstream parties aren't the answer."
The losses "should be a wake-up call for the Starmer leadership: Every vote must be earned," said the socialist and anti-racist group Momentum. "That means calling for an immediate arms ban to Israel, calling out Israeli war crimes, and delivering real leadership on climate."
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Israeli officials have told the Biden administration and humanitarian organizations how they plan to start forcibly expelling Gazans from Rafah ahead of a likely ground invasion—a move critics have likened to the ethnic cleansing of Palestine's Arabs during the establishment of the modern state of Israel.
Politicoreported Friday that Israel Defense Forces (IDF) officials informed the U.S. government and aid agencies that a plan is in place to remove Palestinians from Rafah, where approximately 1.2 million refugees forcibly displaced from other parts of Gaza are precariously sheltering alongside around 280,000 local residents in the embattled strip's southernmost city.
According to an unnamed U.S. official and two other people familiar with the plan, Israel would "move people out of Rafah, the main humanitarian hub in the enclave, to al-Mawasi, a small strip of land on the southern Gaza coast." Politico also obtained a copy of a map containing some details of the plan.
The Wall Street Journalreported Friday that Israel has given Hamas until next week to submit to a cease-fire proposal or face an invasion of Rafah.
"Such an invasion could lead to horrific massacres and raise scenarios of a second Nakba," the Gaza-based Palestinian Center for Human Rights said recently. "After 200 days of horrific genocidal acts in Gaza, the real objectives of the attack are the continuation of the 76-year-long ongoing Nakba and the erasure and genocidal destruction of the Palestinian people in Gaza. Israel is laying the groundwork to fulfill its settler-colonial plan of colonizing Gaza."
Human rights defenders have warned that Israel may ultimately seek to ethnically cleanse as many Palestinians as possible from Gaza.
The situation in Rafah is already dire. Water and other necessities are in desperately short supply. According to James Elder, the global spokesperson for the United Nations Children's Fund (UNICEF), there is approximately one toilet for every 850 people in Rafah and one shower for every 3,500 people.
On Friday, Jens Laerke, a spokesperson for the United Nations Office for the Coordination of Humanitarian Affairs, told reporters in Geneva that an Israeli ground invasion of Rafah would put hundreds of thousands of Palestinians "at imminent risk of death."
"Any ground operation would mean more suffering and death," Laerke said, warning of not only "a slaughter of civilians, but also at the same time an incredible blow to the humanitarian operation in the entire strip, because it is run primarily out of Rafah."
Around 5% of Gazans have been killed, maimed, or left missing by Israel's genocidal assault on Gaza, according to a report published Wednesday by the U.N. Development Program and the U.N. Economic Commission for Western Asia. That's more than 120,000 people, the vast majority of whom are innocent civilians, according to Palestinian officials and international human rights groups.
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"In exchange for the bribe payments to Imelda Cuellar, Henry Cuellar agreed to perform official acts in his capacity as a member of Congress," the indictment states.
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The U.S. Department of Justice confirmed Friday that Democratic Texas Congressman Henry Cuellar and his wife, Imelda Cuellar, were indicted last week for allegedly "participating in two schemes involving bribery, unlawful foreign influence, and money laundering."
According to the indictment, between at least December 2014 and November 2021, the Cuellars allegedly took approximately $600,000 in bribes from a fossil fuel company owned by the Azerbaijani government and an unnamed bank headquartered in Mexico City. The congressman, who has served on Capitol Hill for nearly two decades and is seeking reelection, previously co-chaired the Congressional Azerbaijan Caucus.
"The bribe payments were laundered, pursuant to sham consulting contracts, through a series of front companies and middlemen into shell companies owned by Imelda Cuellar," the document states. "In exchange for the bribe payments to Imelda Cuellar, Henry Cuellar agreed to perform official acts in his capacity as a member of Congress, to commit acts in violation of his official duties, and to act as an agent of the government of Azerbaijan and [the foreign bank]."
NBC News first reported early Friday that the Justice Department was expected to release the indictment, which came more than two years after a Federal Bureau of Investigation raid of the couple's Laredo home. Before the document was unsealed, the congressman claimed in a statement that his actions were "consistent with the actions of many of my colleagues and in the interest of the American people."
"I want to be clear that both my wife and I are innocent of these allegations," Cuellar said Friday. "Before I took any action, I proactively sought legal advice from the House Ethics Committee, who gave me more than one written opinion, along with an additional opinion from a national law firm."
The Cuellars "made their initial court appearance today before U.S. Magistrate Judge Dena Palermo in Houston," the Justice Departmnet said Friday. If convicted of all the charges, the 68-year-old congressman and his 67-year-old wife could face decades in prison.
Congressional Democratic leadership last year endorsed Cuellar for reelection in November, despite his opposition to abortion rights—a key issue for this cycle at all levels of politics. During the 2022 cycle, after nearly losing to progressive primary challenger Jessica Cisneros, he beat the Republican nominee, Cassy Garcia, 57% to 43%.
A spokesperson for U.S. House Minority Leader Hakeem Jeffries (D-N.Y.), Christie Stephenson, saidin a Friday statement that "Henry Cuellar has admirably devoted his career to public service and is a valued member of the House Democratic Caucus. Like any American, Congressman Cuellar is entitled to his day in court and the presumption of innocence throughout the legal process."
"Pursuant to House Democratic Caucus Rule 24, Congressman Cuellar will take leave as ranking member of the Homeland Security Appropriations Subcommittee while this matter is ongoing," Stephenson added.
Cuellar isn't the only Democrat in Congress battling allegations of corruption and bribery charges. Sen. Bob Menendez (D-N.J.) and his wife, Nadine Menendez, were indicted last September and accused of accepting bribes in the form of "cash, gold, payments toward a home mortgage, compensation for a low-or-no-show job, a luxury vehicle, and other things of value."
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