Protecting the 1 Percent While Attacking the Other 99 Percent
It’s not news that Republicans will do nearly anything to protect the wealthy and special interests like Wall Street banks and Big Oil. Now they’re taking their own brand of class warfare even further by outright attacking the other 99 percent.
Here’s the rundown.
Majority Leader Eric Cantor (R-VA) Calls the 99 Percent Movement ‘Mobs’
After Cantor’s remarks Friday, White House press spokesman Jay Carney said the Republican leader’s criticism of the Wall Street protests was “hypocrisy unbound,” when compared to his support of Tea Party protests. He said both were examples of American democratic traditions.
“I don’t understand why one man’s mob is another man’s democracy,” Carney said.
Mitt Romney Calls 99 Percent Movement ‘Dangerous…Class Warfare’
Mitt Romney, who reportedly pays an effective tax rate of just 14 percent despite being worth nearly $200 Million, wasted no time in attacking the other 99 percent earlier this week:
I think it’s dangerous, this class warfare.
Herman Cain Calls 99 Percent Movement ‘Un-American,’ Says ‘If You Don’t Have a Job and You’re Not Rich, Blame Yourself!’
After attacking the other 99 percent, later in the week Herman Cain stepped up his attacks and called demonstrators “un-American.”
Evening Brief: Important Stories That You May Have Missed
A breakdown of trust
The strange phenomenon of Affordable Care Act denialism
Key foreign policy advisers to Mitt Romney advocate war with Iran.
Eleven facts you need to know about the nation’s biggest banks.
House Speaker John Boehner (R-OH) jokes that women have abortions out of convenience.
“House Republicans from blue places have greens seeing red,” writes Ron Brownstein on how GOP congressmen in swing districts are voting against the EPA.
Occupy Wall Street: Right Here All Over.
Ben & Jerry’s supports Occupy Wall Street.
11 Facts You Need to Know About the Nation’s Biggest Banks
Here’s the goods, via ThinkProgress’ Pat Garofalo:
The Occupy Wall Street protests that began in New York City more than three weeks ago have now spread across the country. The choice of Wall Street as the focal point for the protests — as even Federal Reserve Chairman Ben Bernanke said — makes sense due to the big bank malfeasance that led to the Great Recession.
While the Dodd-Frank financial reform law did a lot to ensure that a repeat of the 2008 financial crisis won’t occur — through regulation of derivatives, a new consumer protection agency, and new powers for the government to dismantle failing banks — the biggest banks still have a firm grip on the financial system, even more so than before the 2008 financial crisis. Here are eleven facts that you need to know about the nation’s biggest banks:
– Bank profits are highest since before the recession…: According to the Federal Deposit Insurance Corp., bank profits in the first quarter of this year were “the best for the industry since the $36.8 billion earned in the second quarter of 2007.” JP Morgan Chase is currently pulling in record profits.
– Banks make nearly one-third of total corporate profits: The financial sector accounts for about 30 percent of total corporate profits, which is actually downfrom before the financial crisis, when they made closer to 40 percent.
– Since 2008, the biggest banks have gotten bigger: Due to the failure of small competitors and mergers facilitated during the 2008 crisis, the nation’s biggest banks — including Bank of America, JP Morgan Chase, and Wells Fargo — are now bigger than they were pre-recession. Pre-crisis, the four biggest banks held 32 percent of total deposits; now they hold nearly 40 percent.
– The four biggest banks issue 50 percent of mortgages and 66 percent of credit cards: Bank of America, JP Morgan Chase, Wells Fargo and Citigroup issue one out of every two mortgages and nearly two out of every three credit cards in America.
– The 10 biggest banks hold 60 percent of bank assets: In the 1980s, the 10 biggest banks controlled 22 percent of total bank assets. Today, they control 60 percent.
– The six biggest banks hold assets equal to 63 percent of the country’s GDP: In 1995, the six biggest banks in the country held assets equal to about 17 percent of the country’s Gross Domestic Product. Now their assets equal 63 percent of GDP.
– The five biggest banks hold 95 percent of derivatives: Nearly the entire market in derivatives — the credit instruments that helped blow up some of the nation’s biggest banks as well as mega-insurer AIG — is dominated by just five firms: JP Morgan Chase, Goldman Sachs, Bank of America, Citibank, and Wells Fargo.
– Banks cost households nearly $20 trillion in wealth: Almost $20 trillion in wealth was destroyed by the Great Recession, and total family wealth is still down “$12.8 trillion (in 2011 dollars) from June 2007 — its last peak.”
– Big banks don’t lend to small businesses: The New Rules Project notes that the country’s 20 biggest banks “devote only 18 percent of their commercial loan portfolios to small business.”
– Big banks paid 5,000 bonuses of at least $1 million in 2008: According to the New York Attorney General’s office, “nine of the financial firms that were among the largest recipients of federal bailout money paid about 5,000 of their traders and bankers bonuses of more than $1 million apiece for 2008.”
In the last few decades, regulations on the biggest banks have been systematically eliminated, while those banks engineered more and more ways to both rip off customers and turn ever-more complex trading instruments into ever-higher profits. It makes perfect sense, then, that a movement calling for an economy that works for everyone would center its efforts on an industry that exemplifies the opposite.
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