On Monday’s Late Show with David Letterman, Main Street warrior Senator Elizabeth Warren pre-gamed this week’s Senate Hearing by talking about ways in which the big banks cheated people out of insane amounts of money to make a profit.
“Yeah, I’m talking about actual law breaking,” Warren told Letterman. “And I’m talking about using every trick in the book.”
Warren discusses the ways in which big banks were not only loading up on profits, but also how they were loading up on risks:
“Now the big financial institutions that had both brought on this crisis and then had been bailed out by the American taxpayer… you might think that they would turn around and say ‘God, we’re really sorry about this what can we do to be helpful here.’ Instead, they started lobbying against any real change in financial reform. They spent more than a million dollars a day for more than a year lobbying against any real changes. you know what their number one target was? The idea of a new little consumer financial protection program. To have an agency in Washington that, unlike all those banking regulators that were looking out for the banks, an agency that would just begin to look out for people who get cheated on credit cards and mortgages.”
Wednesday in a Senate Banking Committee hearing on the increase in income inequality, Senator Warren read an excerpt of, “An Economy Doing Half Its Job,” a Harvard Business School survey released this month. The survey excerpt Warren reads outlines a “recent divergence of outcomes, with firms (especially larger firms) thriving and workers struggling.” It goes on to remark that this is not the norm for the US economy. “Historically, American companies and citizens have tended either to thrive together, as in the boom after World War II, or to suffer together, as during the Great Depression.”
Warren says there’s a simple explanation: Corporations no longer share their profits with workers. “Back in the 1980’s,” Warren quotes from research from Econ professor William Lazonick at UMass Lowell, “large corporations dedicated less than half of their corporate earnings to shareholders. The rest went to invest in their equipment and their employees. But from 2003 to 2012 those big companies dedicated 91 percent of their earnings to their shareholders.”
That’s not a shift in balance, that is a radical right turn towards greed.
Sarah Burris, Blue Nation Review