Businessweek Apologizes for Racist Cover Warning Minorities Will Be Buying Houses Again

RACE IN AMERICA:  Businessweek apologizes for racist cover photo accompanying its cover story about the return of aggressive mortgage lending products is really something else. In other words, the cover is sending the message that minorities will return to purchasing houses again. Really?

“Our cover illustration last week got strong reactions, which we regret,” Josh Tyrangiel, the magazine’s editor, wrote in a statement sent to POLITICO. “Our intention was not to incite or offend. If we had to do it over again we’d do it differently.” Source

From the apology, they don’t seem to regret the meaning behind the cover. They would just have presented it differently. Enough said. They just lost a reader.

Here’s Businessweek’s racist magazine cover:

Businessweek racist magazine cover minorities buying houses again

Businessweek Apologizes for Racist Cover Warning Minorities Will Be Buying Houses Again

Study: 26 ‘Kingpin’ Companies, Including Citigroup and Boeing, Paid More to CEOs Than Federal Tax

Left-Leaning Institute for Policy Studies found that 26 big U.S. companies, including Boeing, AT&T and Citigroup paid their CEOs more than they paid in federal taxes.


Study: 26 ‘Kingpin’ Companies, Including Citigroup and Boein, Paid More to CEOs Than Federal Tax (Photo credit: Wikipedia)

Yahoo Finance:  Twenty-six big U.S. companies paid their CEOs more last year than they paid the federal government in tax, according to a study released Thursday by a liberal-leaning think tank.

The study, by the Institute for Policy Studies, said the companies, including AT&T, Boeing and Citigroup, paid their CEOs an average of $20.4 million last year while paying little or no federal tax on ample profits, according to regulatory filings.

On average, the 26 companies generated net income of more than $1 billion in the U.S., the study said.

The study blasted tax rules allowing unlimited deductions for CEO “performance-based” pay, like many stock options. It said the five biggest performance payers among the 26 companies took $232 million of these deductions last year.

Here’s an excerpt from the study results:

  • Of last year’s 100 highest-paid U.S. corporate chief executives, 26 took home more in CEO pay than their companies paid in federal income taxes, up from the 25 we noted in last year’s analysis. Seven firms made the list in both 2011 and 2010.
  • The CEOs of these 26 firms received $20.4 million in average total compensation last year. That’s a 23 percent increase over the average for last year’s list of 2010’s tax dodging executives
  • The four most direct tax subsidies for excessive executive pay cost taxpayers an estimated $14.4 billion per year—$46 for every American man, woman, and child. That amount could also cover the annual cost of hiring 211,732 elementary-school teachers or creating 241,593 clean-energy jobs.
  • CEOs have benefited enormously from the Bush tax cuts for upper-income taxpayers. Last year, 57 CEOs saved more than $1 million on their personal income tax bills, thanks to these Bush-era cuts.

Read the full report: Executive Excess 2012: The CEO Hands in Uncle Sam’s Pocket (PDF)

JPMorgan Chase CEO Jamie Dimon Should Step Down as NY Fed Director in Wake of $2 Billion in Risky Trades

Shouldn’t JPMorgan Chase CEO Jamie Dimon face some repercussions for the $2 billion blunder that occurred in the course of six weeks under his watch?  Once again, Wall Street is on the wrong side of reason and not working for the people on Main Street. They haven’t learned from the financial nightmare that engulfed this country and from which we still can’t gain a strong foothold to pull ourselves out. Well, Jamie Dimon should step down as director at the Federal Reserve Bank of New York, that’s the first order of business. We are seeing yet another incident in which Wall Street isn’t being held accountable for its actions because the lobbyists running up and down the halls of the Capitol are running the show.

What makes this even more despicable is the fact that these errant trades could have been prevented had the Volcker Rule provision been in place in the Dodd-Frank financial review law. Surprise, surprise, Jamie Dimon was a strong critic of that piece of legislation. He appeared Sunday on NBC’s “Meet the Press,” and acknowledged that JPMorgan Chase’s “misstep (if you can call it that) would give lawmakers new ammunition to seek more stringent controls on the nation’s banking practices. He said, “we know were sloppy. We know we were stupid. We know there was bad judgment. This is a very unfortunate and inopportune time to have this kind of mistake.” Um, you think Jamie? The Volcker Rule is intended to prevent banks from making high-risk trades for their own profit.

Dimon dismisses the misstep as a mere $2 billion, considering the company made $19 billion in profit last year. Let’s not be oblivious to the fact that the $2 billion loss could snowball and could potentially have been earned through crime. The bigger issue for me is that this screams out for stricter regulation or else taxpayers like you and I may be forced to step in again and rescue the company because of the “too big to fail” label. How many more massive errors will be allowed until stricter oversight is implemented or will lawmakers continue to jump in bed with lobbyists?

Ina Drew is the first executive to resign as a result of this scandal, but shouldn’t there be more far-reaching fallout at JPMorgan Chase, including Jamie Dimon stepping down as director at the Federal Reserve Bank of New York? Are you going to send the fox to guard the hen house? Chase has paid out billions to settle a laundry list of charges over the years, including perjury and forgery (foreclosure fraud and abuse), investor fraud and the sale of unregistered securities — all under Jamie Dimon’s watch. Either he is the real Teflon Don of the banking world or he has used his position to insulate himself from accountability, yet he is allowed to sit on the board of directors of the Federal Reserve Bank of New York. You see, Jamie Dimon is allowed to sit at the table with people whose responsibilities include how much of other people’s money gets earmarked for rescuing “too-big-to-fail” banks like his own. In other words, “we the people” will pay for a new hen house for Jamie Dimon when the one he has now is gobbled up by risky business transactions. He has screamed against all forms of regulation against Wall Street banks at every step of the way, even using extreme language to characterize the criticisms leveled against banks, such as saying bigotry is no different from racism.  The time has come for strict oversight on Wall Street on all fronts. JPMorgan Chase poses a threat to markets, economies and people globally, not just in the United States of America. Time to stand down Mr. Dimon. We can no longer allow you and your Wall Street buddies to do as you please.

UPDATE#1 (05/14/12):  President Obama says JPMorgan Chase is one of the best run banks around. Um, is he seeking donations from Wall Street? Obama made the comments during an appearance of ABC’s “The View,” adding “Jamie Dimon, is one of the smartest bankers we got and they still lost $2 billion and counting. We don’t know all the details. It’s going to be investigated, but this is why we passed Wall Street reform.” Obviously they aren’t as well run as they claim to be.


Black Finance Exec Robin Washington Listed Among T&R ’30 Outstanding Women in Finance’

Robin Washington, CFO of Gilead Sciences among Treasury & Risk Magazine’s 2012 list of the ’30 Outstanding Women in Finance.’ 

Black Finance Exec Robin Washington Listed Among T&R '30 Outstanding Women in Finance' (Gilead Sciences)

Robin Washington  CFO & SVP, Gilead Sciences
“As finance chief since 2008, Washington has presided over a period of significant revenue growth for the biotech company. She played a key role in its strategic use of cash,  as well as in the financing for Gilead’s recently announced purchase of Pharmasset.”

Here’s Robin Washington’s bio from Gilead Sciences:

Ms. Washington joined Gilead as Senior Vice President and Chief Financial Officer in May 2008. In this role, she oversees Gilead’s worldwide Finance and Investor Relations functions. Prior to joining Gilead, Ms. Washington served as Chief Financial Officer of Hyperion Solutions, an enterprise software company that was acquired by Oracle Corporation in March 2007.

Ms. Washington also spent nearly 10 years at PeopleSoft, a provider of enterprise application software, most recently in the role of Senior Vice President and Corporate Controller. She previously was a Director of Finance for Tandem Computers, an Accounting Analyst for the Federal Reserve Bank of Chicago and a Senior Auditor for Deloitte & Touche.

Ms. Washington holds a bachelor’s degree in business administration from the University of Michigan and a MBA from Pepperdine University. She currently serves on the Board of Directors of MIPS Technologies, Inc. and the Children’s Discovery Museum of San Jose.

Who said we don’t have positive role models in the black community for our young people to aspire to be like? I know this won’t be a popular story in the black news media, but I am proud to lead the charge on recognizing the achievements of all the women who made the list.

Here’s an excerpt from the press release:

Each year the editors of Treasury & Risk compile a list of women in corporate finance who have made a difference to their companies and their industries. The executives on this year’s list have worked on acquisitions, spin-offs and IPOs, led bond deals and negotiated credit lines, wrested upgrades from credit rating agencies, developed sourcing strategies, set up an in-house bank and built a best-in-class internal audit group.

“The percentage of women in executive positions at Fortune 500 companies has barely budged in the last few years,” says Editor-in-Chief  Donna Miskin. “Despite that discouraging reality; women executives in corporate finance continue to press forward, juggling work-life balances, multitasking to the hilt, and doing whatever it takes to get the job done.”

The accomplishments of these 30 leaders in corporate finance serve as an inspiration and a reminder that perseverance and execution count.

Read the full article on the 2012 Women in Finance:

Report: Georgia Ranks Dead Last in Financial Security, Not Just the Poor and Middle Class

Report: Georgia Ranks Dead Last in Financial Security, Not Just the Poor and Middle Class (CFED)

Georgia is dead last in the nation in financial security. According to a newly published report by the Corporation for Enterprise Development, Georgia ranked dead last in terms of the financial security of its residents, based on factors such as their high debt load, lack of savings and assets, and the prevalence of personal bankruptcies, the AJC reports. In other words, Georgians are living on the financial edge and one paycheck away from disaster. What’s even more alarming is that it’s not just the poor, it includes the middle class and beyond as well.

Survey Finds One in Five Women Would Abstain From Sex for Six Months to Avoid Paying Monthly Bills

SAN FRANCISCO, Jan. 31, 2012 /PRNewswire/ — A new survey(1) examined American’s bill payment behavior and found that more than one-third (35 percent) of consumers are struggling to pay their monthly bills either sometimes, often or always. The consumer survey was conducted by Independent market research firm Toluna, on behalf of BillFloat, Inc., the nation’s only bill payment provider to give consumers more time to pay when they need it. The survey also found that one quarter (25 percent) of respondents would turn off their TV for an entire month to have someone else pay their bills, while one in five women would abstain from sex for six months.

To read entire press release, CLICK HERE.

U.S. Federal Reserve Joins Central Banks Worldwide to Rescue Europe, Sounds Like 2008 Debacle

U.S. Federal Reserve joins central banks worldwide take emergency action to keep European banks afloat, but isn’t this a repeat of the 2008 debacle?

Did the U.S. Federal Reserve just throw European banks a lifeline at the expense of working class Americans? This is a throwback to 2008 when we were saw the Bear Stearns collapse that sent shock waves throughout the financial markets, resulting in an economic crisis. I came across an interesting article on AmericaBlog about the little scheme of the Federal Reserve:

In essence, the US central bank, or Federal Reserve, agreed to provide cheaper dollar funding to the European Central Bank—which can then provide cheaper dollar loans to cash-strapped European banks.

The participation of the central banks of Canada, England, Japan and Switzerland is more of an effort to show that all the central bankers are working together than any expectation that there will be lots of dollar borrowings under their facility.

The goal is to ease the credit crunch in Europe. Lots of European banks make dollar denominated loans, in part because US interest rates are so low. The banks do not usually finance these loans in the way you might think—by lending out the deposits of their retail customers. Instead, the loans are financed by short-term borrowings from other financial institutions.

We bailed out the “too-big-to-fail” banks in 2008, who did little to help Main Street, and we are bailing out Europe, while unemployment claims continue to climb? Where’s the logic? We are coming to everyone’s rescue but that of our own people. Just Monday Deutsche Bank through its servicer Chase Bank tried to evict a 103 year old woman, Vinia Hall, from her Atlanta home because of a delinquent second mortgage. The central banks are stepping into dangerous territory again — extending cheap loans (practically free) to the banks to help them maintain liquidity so they can continue to function. Sounds like 2008 all over again. Please, share your thoughts….

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401K Father Ted Benna Now Thinks He Created a Monster

INTERESTING: 401k Father Ted Benna now says he wants to blow up what he created in 1998 because what was intended to be simple for employees as pension plans, is now a monster. Benna told SmartMoney, “I would blow up the system and restart with something totally different.”“Blowing up the existing structures is the only way we can simplify them.” Once again, we were robbed by the system.


CUNA Says 40000 New Members Joined Credit Unions on Bank Transfer Day

CUNA says 40000 new members joined credit unions on Bank Transfer Day, about 24 times the normal rate.

CUNA says 40000 New Members Joined Credit Unions on Bank Transfer Day

CUNA says 40000 new members joined credit unions on Bank Transfer Day on November 5, making the call to action a resounding success. It is further proof that Americans are sick and tired of dealing with big banks and the brotherhood on Wall Street. Here’s an excerpt from the press release:

Credit unions brought in 40,000 in new members, and added $80 million in new savings account funds, on last Saturday’s Bank Transfer Day, capping a month that resulted in nearly 700,000 new credit union members joining the movement.

A Credit Union National Association (CUNA) survey of 1,100 credit unions found that around 80% of larger credit unions said they signed up new members on Bank Transfer Day, and many credit unions opened on Saturday, or extended their usual Saturday hours, to deal with the rush of new members. Credit unions surveyed said they made $90 million in new loans on Saturday.

If you don’t believe there is strength in numbers, just take a look at the success Bank Transfer Day was. The motto of The Hinterland Gazette is “you have the power to change the world!” We believe in that and want each of our readers to believe that and go out and change the world in their respective locales. If you don’t voice your position and vote, you can’t effect change. So, remember, “you have the power to change the world!”

Have You Paid Your Taxes Lately?

The new report from the U.S. Census Bureau stating 1 in 6 Americans is living in poverty is not good for the nation’s state of mind. Years of wars and Bush era tax cuts for the wealthy among us have finally caught up with us. To paraphrase my grandmother ‘our chickens have come home to roost’. The economic instability we now face is further compounded by a national sense of hopelessness. Most people today are suffering from a lack of hope that the economy will improve or that things will ever get better.

In light of President Obama’s job bill and his speech this morning asking Republicans annd democrats to cooperate, is a turn in the right direction. But what I want to focus on is the number of Americans earning a million dollars or more who should pay their fair share of taxes. A few weeks ago, a startled Warren Buffett said he’s paying less taxes than the people who work in his office. He suggested wealthy Americans pay their fair share. When you look at the country, it makes you wonder whose idea was it anyway for wealthy persons not to pay taxes based on how much they earn. I mean, doesn’t it seem to make common sense to pay your share? The reality is if we all do not pay our taxes, the America we have come to know will not exist any more. I cannot for the life of me understand the reluctance on the part of some politicians to accept the fact that failure to pay up now will have dire consequences later.

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