News Release

Bank Deal: A Beginning, Not an End

Liz Rose — Thu, 09 Feb 2012 10:08:17 -0500

Washington, DC – Robert Borosage, co-director of the Campaign for America’s Future, commented on the much-anticipated settlement deal with the banks regarding mortgage fraud. Borosage expresses concerns that the deal was cut before the Federal investigation of the crimes committed. He urges Americans to continue to press for an aggressive investigation. Borosage said, “The real question is whether the federal investigation will finally turn over all the cards so we know just how bad a hand the banks are holding. Only then is there a possibility for real accountability – and real relief for homeowners.”

Statement from Robert Borosage:

“The bank settlement of $25 billion over three years from five major banks for robo-signing forgeries is being hailed in Washington and scoured by leading bank critics. I’m reminded of Groucho Marx who said upon being invited to join a country club: ‘I wouldn’t want to belong to any club that would have me.’ Similarly, it is hard not to be suspicious of any deal that the banks would sign.

"But the deal should be seen for what it is – a relatively small ante by the banks handed out before the real cards are seen.

"What’s clear is that the banks trampled the law in their wilding while blowing up the housing bubble. They abused homeowners, committed routine forgery and perjury before the courts, and defrauded investors. The housing market then collapsed, leaving homeowners about $700 billion under water (owing that much more on their mortgages than their houses are worth).

"The banks are looking for a deal that will relieve them of untold criminal and civil liabilities. Untold is the right word because, outrageously, there has been no real investigation into the scope of their crimes. The state attorneys general simply don’t have the resources. The federal government does, but once the administration decided to continue President George W. Bush’s policies of bailing out the banks without reorganizing them, it has been committed to keeping insolvent banks afloat, not holding them accountable.

"So the administration and some state attorneys general started pushing a deal that would relieve the banks of immunity. Some courageous attorneys general – Eric Schneiderman of New York, Beau Biden of Delaware, Catherine Cortez-Masto of Nevada, Martha Coakley of Massachusetts, Kamala Harris of California and others – held out. Schneiderman led the effort to limit the scope of immunity offered the banks, expand the settlement, and force the administration to launch a real investigation at the federal level.

"So this deal is the result. It gets a relatively small sum from the banks in exchange for limited immunity on their flagrantly illegal robo-signing – or forgery – of mortgage documents. The money will provide homeowners with the possibility of real legal assistance and small amounts of relief. No private rights of action have been waived. The suit brought by Schneiderman against Mortgage Electronic Registration Systems, or MERS – the bank creation that simply trampled hundreds of years of property laws – continues, and other state attorneys general should follow suit. Schneiderman now co-chairs a federal task force charged with doing a real investigation that could result in a serious settlement.

"The deal has been cut before the investigation so it is suspect on its face, but limited in its scope. Whether it will be enforced adequately remains to be seen. How homeowners benefit will differ from state to state.

"The real question isn’t this ante. The real question is whether the federal investigation will finally turn over all the cards so we know just how bad a hand the banks are holding. Only then is there a possibility for real accountability – and real relief for homeowners.

“So this settlement must be the beginning, not the end. We have to sustain pressure on the administration for an aggressive investigation. State criminal and civil suits, individual and investor relief have to continue. We are a far remove from achieving the justice and accountability that are due.”

The Take Back the American Dream Conference is June 18 to 20, 2012

Liz Rose — Tue, 07 Feb 2012 10:21:21 -0500

Washington, DC -- Join thousands of progressives, five months before the critical 2012 elections, to energize the movement and "Take Back the American Dream."

Robert Borosage, co-director of the Campaign for America’s Future said, “We'll plan strategic campaigns on such themes as `Jobs, Not Cuts,’ `Challenging Citizens United,’ and `Taking on the Big Banks.’”

“We'll champion `American Dream’ candidates who are fighting for the 99%,” said Roger Hickey, co-director of the Campaign for America’s Future said, “From `We are One’ in Wisconsin to `Occupy Wall Street,’ progressive movements have created a new political moment. Come to Washington with thousands of progressives as we share ideas on how to move forward and "Take Back the American Dream."

Join the Campaign for America’s Future, Rebuild the Dream, Progressive Majority and thousands of progressive activists. Save the Date: June 18-20 at the Washington Hilton and Towers in Washington, DC. Conference details to come soon: ourfuture.org/takeback.

Campaign for America’s Future Applauds Schneiderman’s Lawsuit of the Big Banks to Address Mortgage Abuses

Liz Rose — Fri, 03 Feb 2012 13:36:04 -0500

Washington, DC – The Campaign for America’s Future welcomes the announcement that New York Attorney General Eric Schneiderman has initiated a lawsuit against the Bank of America, J.P. Morgan Chase, and Wells Fargo regarding their use of “MERS.”

Statement from Richard Eskow, Senior Fellow at the Campaign for America’s Future:

“We welcome the announcement by New York Attorney General Eric Schneiderman that his office has initiated a lawsuit against Bank of America, J.P. Morgan Chase, and Wells Fargo regarding their banks' use of “MERS.” As the Campaign for America's Future reported in October of 2010, “MERS’ is a shell corporation that has been widely used to avoid paying registration fees or filing title information with local authorities when mortgages are bought, sold, or traded.’

“Banks were able to avoid revealing the true holder of a mortgage note by holding them in the name of the MERS Corporation, then appointing its own employees as `officers’ of that corporation for court filings. This legal fiction resulted in a situation in which a company with less than fifty employees had thousands of vice presidents and assistant secretaries, as a MERS executive acknowledged in a deposition.

“MERS has made a mockery of longstanding legal principles, including the right of states and municipalities to collect taxes and record property holders and the right of borrowers to know and communicate with the holder of their loan. MERS also played a central role in the bundling and selling of mortgage-backed securities without proper review or disclosure, a process that led to the financial crisis of 2008. This feature was advertised in the company's materials as `ease of delivery into secondary markets.’

“Our review of internal MERS documents showed that some of the features, which the organization featured in its advertising materials resemble, at least superficially, some of the allegations in Mr. Schneiderman's lawsuit. `No recording or re-recording of documents,’ read one sales slide. `No chain-of-title issues.’ Other materials note that MERS allows its users to avoid paying local taxes.

“In a reflection of the corporate culture reflected by the organization, a dummy computer screen used to train its staff features a fictional borrower named `Harry Homeowner’ residing at `One Poverty Lane’ in foreclosure-plagued Jacksonville, Florida. The tragedy faced by millions of Americans appears to have been a source of humor for the staff, management, and thousands of artificial `officers’ of the MERS Corporation.

“There can be no resolution of our nation's ongoing mortgage crisis without aggressive action to address MERS abuses and the executive actions that lay behind them. The American people deserve justice, and they deserve to know more about the abuses that created a financial disaster for millions of people while unjustly enriching a few.

“We welcome this lawsuit. We applaud Mr. Schneiderman and his staff for their efforts on behalf of New York state residents and bank customers throughout the nation.”

# # #

Jobs Report Shows Progress, But Austerity Continues to Impede the Recovery

Liz Rose — Fri, 03 Feb 2012 09:01:51 -0500

Washington DC – The January jobs report of 243,000 new jobs and unemployment down to 8.3 percent -- shows progress. Robert L. Borosage, co-director of the Campaign for America’s Future, made the following statement about the new jobs report and its indications for the U.S. economy:

“We’ve now had 10 quarters of economic growth and five quarters of jobs growth. The report shows growth across the private economy, notably in manufacturing and construction.

“But don’t break out the bubbly. Any celebration should stay sober. The U.S. economy is still slogging slowly against fierce headwinds. We are still 6 million jobs short of where we were when the Great Recession began. There are still nearly 24 million people in need of full-time work. There are still more than four people lining up for every available job.

“Federal Reserve Chair Ben Bernanke stated the simple reality: `We still have a long way to go before the labor market can be said to be operating normally. Particularly troubling is the unusually high level of long-term unemployment.’ Nearly one-third of the unemployed have been out of work for a year or more. These are the true casualties of Wall Street’s excesses.

“American companies are producing more now than they did before the collapse. But Americans aren’t sharing in the rewards. Profits margins are at record heights; CEO salaries have soared, but there is no recovery in jobs, and wages and benefits continue to fall behind.

“Austerity continues to impede the recovery. Government employment was flat last month, but state and local governments project more cuts. Austerity in Europe is driving the EU and the United Kingdom into recession. U.S. exports will suffer accordingly, even without a Greek default or a financial calamity. U.S. government spending will be constricted by the budget deals.”

Republicans Wrongly Equate Pentagon Spending with American Security

Liz Rose — Thu, 02 Feb 2012 10:56:38 -0500

Washington, DC -- Senator John McCain and three other Republican Senators are unveiling legislation that would protect the Pentagon’s budget from the sequestration cuts required in the debt deal, forcing greater cuts in domestic investments.

The Campaign for America’s Future’s co-director Robert L. Borosage said:

“Republicans believe bloated Pentagon budgets strengthen American security. In fact, the reverse is true. The most important security priority for America is making the investments here at home vital to reviving our economy, modernizing our infrastructure, educating our children, and getting our fiscal house in order. To achieve this, we need to reduce unnecessary spending – and there is no greater source of that than the Pentagon.

“The Cold War is over. Bin Laden is dead and Al Qaeda dispersed. The U.S. cannot and should not police the world. The Pentagon now spends almost as much on the military as the rest of the world combined. It is the largest source of waste, fraud and abuse in the federal government. The Pentagon budget more than doubled over the past decade, bringing total U.S. defense spending to historically high levels not seen since World War II. It’s higher in comparable dollars than it was under Ronald Reagan in the midst of the Cold War.

“We can and should reduce our military spending, revise our forces to fit the new world we live in. Even after the full sequester, the U.S. will retain by far the most powerful – and expensive – military in the world. These Senators would weaken our security, not strengthen it. They are defending the entrenched interests of the military-industrial complex a Republican President, Dwight Eisenhower, warned us about, not the real security of the American people.”

President Obama Announces Banks Will Not Escape Investigation and Prosecution

Liz Rose — Tue, 24 Jan 2012 22:50:11 -0500

Washington, D.C. -- Robert Borosage, co-director of the Campaign for America's Future, lauded President Barack Obama's announcement that he is launching an investigation of the big banks on mortgage-related fraud. Hundreds of thousands of concerned Americans signed petitions that went to the President asking for this investigation. This is a victory for those activists and for the American people.

Statement from Robert L. Borosage, co-director of the Campaign for America's Future:

“After months of troubling rumors that the White House was urging state attorneys generals to hold banks blameless - and after months of protests by concerned Americans - the President is doing the right thing by announcing an investigation of the big banks. We hope news reports are true that he is putting Attorney General Schneiderman in charge of the investigation. It would demonstrate he is serious about investigating the banks.

“Americans from across the political spectrum are angry that the Wall Street banks blew up the economy and got bailed out, while homeowners and taxpayers were stuck with the bill. The bankers that put this economy at risk and hurt millions of homeowners need to be held accountable.

“Hundreds of thousands of concerned Americans signed petitions that went to the President asking for this investigation. This is a victory for those activists and for the American people."

“What the people want is clear: Penalize the perpetrators, not their victims. Any settlement must have sufficient scope to deal with the scale of the problem.

“It is vital to this country that the banks are made accountable. It is vital that they do not see the law as simply a minor price of doing profitable business, a speed bump on the way to their bonuses. Tonight the President announced a strong step towards the accountability that we need.

“I want to laud President Obama for starting this investigation. And we hope that news reports are true that he plans to choose Attorney General Schneiderman - who has bravely refused to accept a deal that protected the banks from prosecution -- to lead this investigation into the foreclosure crisis. His appointment to lead the Justice Department investigation would put a champion in charge - and would the whole effort tremendous credibility."

What Americans Hope to Hear in the State of the Union: Jobs. Jobs. Jobs.

Liz Rose — Tue, 24 Jan 2012 14:31:58 -0500

Washington, DC – On the eve of President Barack Obama’s third State of the Union Address, Robert Borosage and Roger Hickey, the co-directors of the Campaign for America’s Future urge the President to put job creation in America as the top priority.

Americans want to know that the President remains laser focused on Jobs. Jobs. Jobs,” said Robert Borosage, “We want him to advocate and fight for specific actions that will increase American employment: We want to see an ambitious jobs program. We want to see an ambitious jobs training program.”

“To maintain a middle class in America and allow those of us who have worked hard our whole lives to retire with dignity, we want to see the President speak clearly in defense of Social Security, Medicare and Medicaid,” said Roger Hickey. To assure that generations of Americans to come are prepared for the workforce, Hickey also encourages the President to fight for increased funding for education at all levels from pre-K through college.

Hickey said, “The President should boldly come out tonight for taxing the one percenters more. Gov. Romney’s tax returns show that wealthy Americans in fact pay lower tax rates than their secretaries.” He noted that polls show that Americans are overwhelmingly for asking millionaires and billionaires to pay more in taxes.

“This is the time to move on dramatic cuts in Pentagon spending,” said Borosage. “The cold war is long over. The wars in the Iraq and Afghanistan are winding down. We need to trim the fat in the defense budget and stop throwing money at the Pentagon and defense contractors.”

“If the President fights for jobs and the middle class, Americans will be with him. If Congress does not support these common sense measures for job creation and for sustaining the American dream including a secure retirement, then Members of Congress will return to their districts to an angry electorate.”

Campaign for America’s Future Urges President: Stand Against a Sweetheart Deal With the Big Banks

Liz Rose — Mon, 23 Jan 2012 13:46:30 -0500

Washington, D.C. --- Robert Borosage, co-director of the Campaign for America’s Future, is urging the Obama administration to investigate the big banks on mortgage related fraud before endorsing a settlement with them. With reports circulating of a pending state attorneys general settlement with the big banks that would immunize them from prosecution and civil suit in exchange for $25 billion, largely for principal reduction for underwater homeowners, the Campaign For America’s Future has joined in a broad coalition to oppose any sweetheart deal.

Statement from Robert L. Borosage, co-director of the Campaign for America’s Future:

“Americans from across the political spectrum are angry that the Wall Street banks blew up the economy and got bailed out, while home owners and taxpayers were stuck with the bill.

“This is a fundamental question of justice and democracy. The law is respected only if it is enforced. Cutting a settlement with the banks before there is an investigation violates our basic sense of justice. No one who robbed a bank would be offered immunity, a modest fine and no admission of guilt – before there was an investigation into who stole the money and how much they took.

“And there is a fundamental question of whether the democracy can hold the wealthiest few accountable. Americans are increasingly cynical about politicians, believing that Wall Street can buy and sell Washington. This is destructive to our democracy. The President’s campaign will highlight his commitment to fair rules and a fair shot for every American. A sweetheart deal with the banks would be a glaring contradiction to that theme. Any deal, enforced over the objections of the most independent Attorneys General, like New York’s Eric Schneiderman, will fail that test.

“What the people want is clear: Investigation before immunity. Penalize the perpetrators, not their victims. Any settlement must have sufficient scope to deal with the scale of the problem. There is an estimated $700 billion of negative equity in underwater homes. While 1 million homeowners have been helped by efforts to save homeowners, 10.7 million homeowners are underwater and that does not count people who have already suffered foreclosure. The top six banks paid bonuses worth $140 billion last year alone, or $420 billion over the last three years. They hold assets of $9.5 trillion. The rumored settlement of $25 billion is barely a slap on the wrist.

“With Occupy Wall Street inspiring activists and with citizens across the country being asked to pay to clean up the mess the banks created in the economy, every state Attorney General and the Administration should understand that any deal will receive widespread public scrutiny. Any settlement must be able to satisfy the standards of justice and fairness. What is now on the table does not come close.

“I want to laud Sen. Sherrod Brown (D-Ohio) and Rep. Brad Miller (D-N.C.) for defending the most vulnerable consumers and for advocating for better solutions to the foreclosure crisis.”

Act now: Stand Against a Sweetheart Deal for the Banks!

No Sweetheart Deal For Big Banks

Liz Rose — Wed, 18 Jan 2012 17:11:23 -0500

Washington, DC – Progressive groups are uniting today to send a strong message to the White House that bankers who commit fraud ought to be investigated, prosecuted and sent to jail. The Campaign for America’s Future and MoveOn, Credo, Progressives United, New Bottom Line, and Color of Change are working together to deliver more than 360,000 petitions to the White House and to the Chicago offices of Obama for America. The petition asks the President not to let the banks off the hook: No Deals. Investigate. Prosecute.

“Obama administration officials have been trying to pressure state attorneys general to cut a deal with bankers who broke the law and devastated the economy,” said Roger Hickey, co-director of the Campaign for America’s Future. “It’s clear from the overwhelming response to this petition drive that the public wants to see bankers who hurt the U.S. economy investigated and prosecuted to the fullest extent of the law.”

Link to Campaign for America’s Future’s Petition: Don't let banks off the hook. No deals. Investigate. Prosecute

Petition to President Obama:

“We the undersigned urge you, President Obama, to launch an immediate investigation into what the FBI warned was an “epidemic of fraud” that contributed to the housing crisis and threw millions out of their homes. The proposed sweetheart deal that would prevent such an investigation from taking place should be stopped. It is vital that the laws be enforced, that those who broke the law be held accountable – or else Wall Street bankers will feel free to defraud people in the future.”

Articles by Campaign for America's Future's co-director Robert L. Borosage: No Sweetheart Deals for Big Banks
and by Senior Fellow Richard Eskow: New Bank Deal Still Unfair

Jobs Report Shows Action Needed to Spur Hiring

Liz Rose — Fri, 06 Jan 2012 09:44:00 -0500

Washington, DC – Official job numbers released today by the Labor Department show that while employment continues to grow, without stronger policies to spur economic growth and job-creation, it will be many years before the US economy comes anywhere near full employment.

Roger Hickey, co-director of the Campaign for America’s Future, said in a statement:

“Economists estimate that the US will have to create more than 350,000 jobs per month – for the next three years – to get the unemployment rate down to 6 percent. December’s figure of 200,000 jobs created means that the economy is barely growing at the rate needed to keep up with the growth of the labor force. The fact that the unemployment rate has declined to 8.5 percent has got to mean that many more people have become so discouraged that they stopped looking for work (and thus are not counted as part of the labor force).

“The U.S. needs 4 to 5 percent growth to replace the 5.2 million jobs lost since 2007 and to keep up with new people who need jobs. But most forecasters predict that our economy will be lucky to grow at 2 or 3 percent this year.

“Clearly, if we don’t want to stay stuck at high levels of unemployment – and the growing inequality that comes with stagnant growth -- our government needs to take stronger steps to create jobs. Instead, Republicans in the Congress are still threatening to remove stimulus from the economy by blocking extension of unemployment benefits and continuation of President Obama’s middle-class tax cuts. Today’s report will add public pressure on Republicans to renew those policies before the two-month temporary extension expires next month. But we have to do much more than continuing last year’s modest stimulus. Americans need to pressure their representatives to take advantage of record low interest rates to invest in public infrastructure, energy conservation and renewables, and education. These are investments our economy needs to make anyway – and if we make them now, we can create enough jobs to escape today’s way-too-modest levels of growth and move our country to full employment.”

Hickey noted that, while private sector jobs continue to grow, government employment, driven by state and local layoffs, declined by 12,000 in December. “If the Federal government had continued the original Obama policy of financial aid to the states to keep those public servants employed, private sector firms could have benefited from the paychecks and economic demand of those public workers, leading to more private investment and job growth. Instead, layoffs of local government workers hurt overall growth.”

In summary, Hickey said, “today’s jobs report shows that our economy continues to struggle to create jobs. After more than two years of official `recovery,’ we are still not growing fast enough to make significant dents in the unemployment rate (and much of this month’s decline comes from discouraged workers giving up on their job search).

“The good news is that job creation is positive, but as Europe imposes job killing austerity and the world economy teeters on the edge of a new recession, Americans cannot allow conservative politicians to cripple the economy by slashing public spending, and we will be pushing Republicans to renew unemployment insurance and middle class tax cuts. However, Americans -- who all the polls show want to get beyond today’s status quo – will also be pressing politicians of both parties to put forward plans for investment and economic growth that can revive the American Dream of full employment and economic mobility. “