Team Clinton Worried Sanders Will Make Hillary ‘Look Like A Corporatist’

With the official entry of Senator Bernie Sanders of Vermont into the 2016 presidential race comes an atypical challenger for Hillary Clinton. Unlike traditional presidential aspirants, Sanders opened his campaign by sharpening his rhetoric rather than trying to dull it down. While this may mean Clinton will not have to worry about being outflanked by Sanders for the so-called (and largely illusory) “center,” it certainly means that Clinton’s alignment with Wall Street and Corporate America is going to prove problematic in the Democratic primary given her record.

This is something, reportedly, that Team Clinton is well aware of. It would not be at all surprising that Hillary Clinton and her supporters fear a contest of ideas – the neoliberal ideology she and her husband are closely associated with is very unpopular both with the general public and most members of the Democratic Party in the wake of the 2008 financial crisis.

Hillary Clinton knows this all too well and has been trying to distance herself from her own recent past including her husband’s presidency. Unfortunately for her, the shift looks too opportunistic and does little to neutralize the clear contrasts a Senator Sanders candidacy draws.

Insiders familiar with the Clinton campaign’s thinking described it as “frightened” of Sanders — not that he would win the nomination, but that he could damage her with the activist base by challenging her on core progressive positions in debates and make her look like a centrist or corporatist. The source described the campaign as “pleased,” at least, that O’Malley and Sanders will split the anti-Clinton vote. A Clinton spokesman declined to comment.

At his kickoff rally in Burlington, Vermont, on Tuesday, where thousands turned out to support him, Sanders vowed to “break up the largest financial institutions in the country” and provided the kinds of specifics Clinton has yet to color in. Sanders called for raising the minimum wage to $15 an hour. (Clinton has said she supports raising the minimum wage but has yet to say by how much.) Sanders also supports a single-payer health insurance system, expanding Social Security benefits, free tuition at public universities and universal pre-kindergarten.

Hillary Clinton is not only not illuminating her 2016 campaign platform, she is avoiding the press as best she can. Part of that is due to a few ongoing scandals concerning deleted emails and the corruption at the Clinton Foundation, but another aspect is surely due to worries over exactly what her positions should be. Crafting a poll-driven message is difficult in a country with such volatile politics, especially given that Clinton is going to be raising money from the very millionaires and billionaires her party’s base wants taxed and regulated.

Those donors, of course, will want something in return should Clinton become president. So maybe the real issue is not whether Sanders will make Hillary Clinton look like a corporatist, but whether she will govern like one if elected.

Over Easy: Bernie Sanders Launches Presidential Campaign in Burlington

On Tuesday, Senator Bernie Sanders (I-VT) kicked off his 2016 bid for US President with a speech in his home town of Burlington, Vermont, noting that “enough is enough” and heralding the event as the beginning of a “political revolution.”

Vox has a transcript of the speech. His beginning remarks include:

Today, here in our small state — a state that has led the nation in so many ways — I am proud to announce my candidacy for president of the United States of America.

Today, with your support and the support of millions of people throughout this country, we begin a political revolution to transform our country economically, politically, socially and environmentally.

Today, we stand here and say loudly and clearly that; “Enough is enough. This great nation and its government belong to all of the people, and not to a handful of billionaires, their Super-PACs and their lobbyists.”

Brothers and sisters: Now is not the time for thinking small. Now is not the time for the same old — same old establishment politics and stale inside-the-beltway ideas.

Senator Sanders highlighted the following issues:

-Income and Wealth Inequality

In America we now have more income and wealth inequality than any other major country on earth, and the gap between the very rich and everyone is wider than at any time since the 1920s.

-Economics and the Disappearance of the Middle Class

But it is not just income and wealth inequality. It is the tragic reality that for the last 40 years the great middle class of our country —once the envy of the world — has been disappearing.

-Citizens United

American democracy is not about billionaires being able to buy candidates and elections. It is not about the Koch brothers, Sheldon Adelson and other incredibly wealthy individuals spending billions of dollars to elect candidates who will make the rich richer and everyone else poorer. According to media reports the Koch brothers alone, one family, will spend more money in this election cycle than either the Democratic or Republican parties. This is not democracy.

-Climate Change

The debate is over. The scientific community has spoken in a virtually unanimous voice. Climate change is real. It is caused by human activity and it is already causing devastating problems in the United States and around the world.

-Jobs, Jobs, Jobs

If we are truly serious about reversing the decline of the middle class we need a major federal jobs program which puts millions of Americans back to work at decent paying jobs.

-Raising Wages

Let us be honest and acknowledge that millions of Americans are now working for totally inadequate wages. The current federal minimum wage of $7.25 an hour is a starvation wage and must be raised.

Senator Sanders also spoke on the following issues:

-Addressing Wealth and Income Inequality


-Reforming Wall Street

-Campaign Finance Reform

-Health Care for All

-College for All

-Protecting Our Most Vulnerable

In addition, he has a campaign website (“not paid for by billionaires”): https://berniesanders.com. For folks who happen to be at the website, but on the wrong page- or for folks who have gone looking for the hidden page at the website- there is a “404 Page Not Found” redirect. To see the message, go to https://berniesanders.com/wtf.

Bernie Sanders Has the Most Glorious 404 Error Page Ever

Read Bernie Sanders Full Text Presidential Campaign Speech
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Latest Guilty Pleas Prove Big Bank Criminality ‘Rampant,’ But Jail Time Non-Existent

In announcing settlement, Attorney General Loretta Lynch calls the crimes ‘a brazen display of collusion’ that caused ‘pervasive harm’

By Deirdre Fulton

In the wake of Wednesday’s announcement that five global financial institutions have agreed to plead guilty to multiple crimes and pay about $5.6 billion in penalties for manipulating foreign currencies and interest rates, corporate watchdogs are reiterating the call to ‘break up the banks’ in light of their ongoing malfeasance.

As with other recent settlements, Wednesday’s news provides further evidence to those who say certain megabanks are still considered “too big to fail”—or criminal bankers to jail.

“There are two messages in today’s plea deal,” said Public Citizen president Robert Weissman in a statement on Wednesday. “First, criminality is rampant on Wall Street. Second, the era of too-big-to-jail is alive and well. Even as they beat their chests announcing how tough they are, government regulators refuse to apply to the giant banks the same rules that apply to everyone else.”

According to the Wall Street Journal:

Five global banks have agreed to pay more than $5 billion in combined penalties and will plead guilty to criminal charges to resolve a long running U.S. investigation into whether traders at the banks colluded to move foreign currency rates in directions to benefit their own positions.

Four of the banks, J.P. Morgan Chase & Co., Barclays PLC, Royal Bank of Scotland Group PLC, and Citigroup Inc., will plead guilty to conspiring to manipulate the price of U.S. dollars and euros, authorities said.

The fifth bank, UBS AG, received immunity in the antitrust case, but will plead guilty to manipulating the Libor benchmark after prosecutors said the bank violated an earlier accord meant to resolve those allegations of misconduct. UBS will also pay an additional Libor-related fine.

The New York Times adds:

The Justice Department forced four of the banks — Citigroup, JPMorgan Chase, Barclays and the Royal Bank of Scotland — to plead guilty to antitrust violations in the foreign exchange market as part of a scheme that padded the banks’ profits and enriched the traders who carried out the plot. The traders were supposed to be competitors, but much like companies that rigged the price of vitamins and automotive parts, they colluded to manipulate the largest and yet least regulated market in the financial world, where some $5 trillion changes hands every day, prosecutors said.

Underscoring the collusive nature of their contact, which often occurred in online chat rooms, one group of traders called themselves “the cartel,” an invitation-only club where stakes were so high that a newcomer was warned, “Mess this up and sleep with one eye open.”

In announcing the settlement, Attorney General Loretta Lynch called the megabanks’ crimes “a brazen display of collusion” that caused “pervasive harm.”

Lynch declared: “Today’s historic resolutions are the latest in our ongoing efforts to investigate and prosecute financial crimes, and they serve as a stark reminder that this Department of Justice intends to vigorously prosecute all those who tilt the economic system in their favor; who subvert our marketplaces; and who enrich themselves at the expense of American consumers.”

But as Weissman noted, “important questions remain about this plea deal,” including:

Will individual executives be prosecuted? And did the DOJ charge the parent companies in this case to avoid triggering potential sanctions with real and significant business consequences for the banks, including charter revocation hearings? The public deserves answers to these questions. In that information is some insight into whether the government continues to protect the megabanks—those colloquially labeled “too big to jail.”

“What becomes clear is that regulators genuinely are afraid of enforcing the law when it comes to the megabanks,” Weissman concludes. “As a result, and notwithstanding today’s announcement and others like it, these banks are not deterred from violating the law—indeed, they are literally not subject to the same standards as other banks and other companies. A democratic society cannot tolerate having banks above the law. There’s a solution to this problem: break them up.”

Earlier this month, Sen. Bernie Sanders (I-Vt.) introduced a bill to do just that—the Too Big to Fail, Too Big to Exist Act—under which regulators on the Financial Stability Oversight Council would compile a list of institutions which say they are so large that their collapse could trigger an economic crisis. The Treasury Secretary, in turn, would then have a year from the bill’s passing to break up such banks.

In a recent report, the Corporate Reform Coalition warned that regulators’ continued reluctance to crack down on megabanks leaves the U.S. vulnerable to another financial crisis.

“Avoiding another meltdown depends on the will of federal regulators to use the new powers they were granted in the Dodd-Frank Wall Street Reform and Consumer Protection Act,” said Jennifer Taub, author of the report and professor of law at Vermont Law School. “If they behave as if they are beholden to the banks, we will likely face a more severe crisis in the future.”

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