The Myth that Obama’s Taking Huge Contributions from Wall Street Was Fine [View all]

[Jefferson23]

By William K. Black
April 7, 2016 Bloomington, MN

I am now officially an economic advisor to Senator Sanders, and this column reflects some of that advice. Part of my advice is not to take money from Wall Street felons. (I am not taking credit for Bernie’s decision — at most I supported a decision he had already made over a year ago.) One of the reasons I reinforced Bernie’s decision was witnessing the problems President Obama experienced given his taking very large contributions from Wall Street. I channeled the prescient warning that Professor Thomas Ferguson (U. Mass, Boston) gave a group of us in 2008. He predicted, accurately, that Obama would not lead an effective crackdown on the endemic fraud by Wall Street elites that caused the financial crisis. Tom (he is a personal friend) is the expert on campaign finance. He authored the classic book on campaign finance entitled Golden Rule (as in the observation that he that has the gold makes the rules.).

Tom pointed out that (then) Senator Obama was accomplishing something unprecedented. He was not only raising more money from Wall Street than the Republicans were, he was doing so in the context of a nomination battle with (then) Senator Hillary Clinton. The Clintons were both preeminent leaders of the “New Democrats.” They crafted the coalition of conservative (on economics and national security issues) Democrats. The New Democrat’s apparatus was funded overwhelmingly by Wall Street and President Bill Clinton was famous for championing the three “de’s” – financial deregulation, desupervision, and de facto decriminalization. Even if Wall Street was willing to reverse decades of contributing primarily to Republicans, why would they choose Senator Obama over their great ally, Senator Hillary Clinton? Tom predicted that Obama would win the nomination and the election – and would reject emulating President Roosevelt’s “New Deal” and its transformation of finance. All three predictions proved accurate.

Hillary Clinton’s defense of taking millions of dollars in contributions from Wall Street and her extraordinary fees for speeches to Goldman Sachs is that Obama took even more money from Wall Street – indeed, more than anyone has ever taken from Wall Street.

snip* We also need to ask a more fundamental question of Hillary – why? Why with your huge Super PAC funding from Wall Street, your delegate lead, and the criticism you are getting from progressives and will get from independents and Republicans do you continue to take enormous sums from Wall Street felons? It is clearly a liability politically. It blows your cover as a self-describe convert to progressive approaches to regulating (and prosecuting) Wall Street.

remainder in full: http://neweconomicperspectives.org/2016/04/myth-obamas-taking-huge-contributions-wall-street-fine.html

Banking Expert Who Exposed Savings & Loan Corruption Joins Sanders Campaign
By Reno Berkeley
Crossposted from Inquisitor.com

An expert in banking corruption and finance has joined the Bernie Sanders campaign. William K. Black, an associate professor at the University of Missouri-KC, is Bernie Sanders’ new economic advisor. Black was one of the central figures in exposing and prosecuting corruption in the savings and loan crisis from the late 1980s and mid-1990s. His addition to the Sanders campaign brings important knowledge in laws pertaining to finance and banking.

The savings and loan banking crisis resulted from a multitude of causes, one of which were two laws that helped deregulate them. The Depository Institutions Deregulation and Monetary Control Act of 1980 was signed into law by President Jimmy Carter. That law allowed credit unions and savings and loans to offer checking deposits, and to charge any loan interest rate they chose.

In 1982, Ronald Reagan furthered the deregulation of savings and loans by signing the Garn-St. Germain Depository Institutions Act, which allowed property owners to put real estate into trust accounts to avoid future lawsuits or creditors. Both bills reduced regulatory oversight and by the time the crisis was in full swing in 1995, 1,043 out of 3,234 savings and loan associations had failed due to risky and illegal behavior.

in full: http://www.inquisitr.com/2979022/banking-expert-who-exposed-savings-loan-corruption-joins-sanders-campaign/#AAKVKckTPF0U3RSI.99