Justice, Peace, and Integrity of Creation » Economic Justice

Tell Congress: End Too-Big-To-Fail. Make Banking SAFE

christina — Thu, 17 May 2012 15:21:46 +0000

The top five banks now control 52 percent of the financial industry’s assets; they had 17 percent in 1970. The six largest banks control assets equal to 62 percent of the nation’s gross national product. They may be not only too big to fail, but also too big to save.

The biggest of them, Dimon’s JPMorgan Chase, has $2.1 trillion in assets and more than 239,000 employees. The bank’s recent bad bet that now amounts to $3 trillion, is a clear indication of the need for serious reform.

Sen. Sherrod Brown and Rep. Keith Ellison have introduced a measure to cut too-big-to-fail banks down to size. The SAFE (Safe, Accountable, Fair and Efficient) Banking Act would put in place an important element missing from the financial reform legislation of two years ago: a cap on how big banks can get. The bank lobby defeated all efforts to include a limit on their size.

Now the six largest banks – led by JPMorgan Chase – are collectively larger and more concentrated than they were before they blew up the economy, with the assets they control growing from $6.1 trillion before the collapse to more than $8.5 trillion today, according to Federal Reserve data.

Wall Street lobbyists have successfully delayed and diluted regulations that were supposed to flow from the Wall Street reform bill. And the big banks have ways to push their way around any barriers.

We need a fail-safe. If a bank can’t be too big, then it can’t be too big to fail.

Among the provisions of the Safe Banking Act are that no bank could hold more than 10 percent of all of the insured bank deposits in the country, nor could a bank holding company have non-deposit liabilities greater than 2 percent of the nation’s gross domestic product.

By the standards in the SAFE Banking Act, four existing banks are currently above the size cap—JPMorgan Chase, Bank of America, Citigroup and Wells Fargo—and would have to shrink. This would be a major step in making banking sober—and boring, as it should be—once again.

Click here to tell Congress: Break up the big banks! Pass Sen. Sherrod Brown and Rep. Keith Ellison’s SAFE Banking Act.

Thanks to the Campaign for America’s Future for the information on this bill.

Oblate Questions JP Morgan/Chase CEO Jaime Dimon

christina — Wed, 16 May 2012 21:48:00 +0000

Fr. Seamus Finn, OMI representing the Oblates of Mary Immaculate at the JP Morgan/Chase AGM yesterday in Naples, Florida, made pointed comments about the latest heavy losses at the company. He questioned Dimon’s opposition to the Volcker Rule and the bank’s lobbying in opposition to other aspects of the financial regulations being developed at the SEC in response to the Dodd-Frank legislation.

He was quoted today by Maureen Dowd in her NY Times column:

The Rev. Seamus Finn, representing shareholders from the Catholic organization Missionary Oblates of Mary Immaculate, did gently press the boss: “We’re wondering, Mr. Dimon, given what we’ve learned, do you still believe a company can self-regulate when trading on their own accounts?” He added: “Furthermore, should our company really be spending shareholder funds on, some $7 million last year alone, on lobbying efforts to thwart the Dodd-Frank legislation and the work of regulators to write the rules stemming from that legislation?”

The priest concluded that the shareholders, “weary of mistakes” and pledges to reform, wonder if Dimon is listening.

Fr. Finn was also quoted in The Guardian, on CNBC.com, The Telegraph, Crain’s New York Business, and the timesfreepress.com

Corporate Social Responsibility and the Churches

christina — Mon, 14 May 2012 18:03:11 +0000

Thanks to the European Africa Faith & Justice Network for the following information:

Bishops call for increased corporate transparency

Catholic bishops urge the European Union to legislate on extractive companies

While a group of EU member states, including Germany and the UK, are attempting to water down new EU transparency legislation, Catholic bishops from around the world urge the EU to push forward and require European Union-listed and large unlisted extractive companies to publicly disclose the payments they make to governments worldwide. In a joint statement, they say less stringent laws will fail to turn the curse of resource-rich developing countries into a blessing.

More information…

European Union Transparency Directive may have a positive impact on the lives of poor people

Mgr Joseph Banga from the Democratic Republic of Congo (DRC) says the upcoming revision of the EU Transparency and Accounting Directives could have a positive impact on the lives of poor people living in resource-rich developing countries. If EU companies are required to report on a country-by-country and project-by-project basis on their financial dealings with host governments, citizens will be able to monitor the management of their natural resources.

Learn more…

Watch the video interview Mgr Joseph Banga from the Democratic Republic of Congo (DRC) [in French with English subtitles]:

World Religious leaders protest against attitudes of mining companies

In many places around the world, religious leaders are protesting against mining companies and projects. What are their complaints? In Chad, that revenues intended to ease the pain of poverty are nowhere to be seen; in the DRC and in Nigeria that mining feeds devastating conflicts; in Ghana that mining in forest reserves threatens animal and plant species. The underlying story is one of broken promises, of powerful companies whose God is profit and of a wounded planet whose resources are despoiled harming the people who live nearby. On April 24, bishops, preachers, and advocates gathered at the Washington National Cathedral to explore how they might join forces both to draw attention to the harm that bad mining practices wreak on people and land, and to point to practical, positive ways to move forward. The Missionary Oblate JPIC Office was instrumental in organizing the conference.

Faith Groups Call for Increased Poverty-Focused Foreign Assistance

christina — Fri, 11 May 2012 14:44:30 +0000

The Missionary Oblates joined 35 multi-faith U.S.-based religious institutions in urging Congress to pass a faithful budget that increases funding above current levels for poverty-focused international development, humanitarian assistance and global health programs in the State and Foreign Operations Appropriations bill. The letter points out, “Using less than one percent of the federal budget, poverty-focused foreign assistance saves lives, lays the groundwork for economic growth around the world and fosters global human security. Its programs alleviate hunger and malnutrition, help communities access clean water and sanitation, facilitate rural development, educate children, combat deadly but preventable diseases and promote global health.”

Read the full letter (Download PDF)

UNCTAD Mandate on Debt Relief Sustained

christina — Thu, 03 May 2012 21:08:27 +0000

Eric LeCompte, Jubilee's Executive Director at UNCTAD meetings in Doha, Qatar on April 23-26

Jubilee USA is celebrating passage of the Doha Accord, a major step forward in developing solutions to the international debt crisis. The Missionary Oblates is a member of the Jubilee USA coalition and has a seat on the Board. Last week during tough and divisive negotiations in Qatar, Jubilee USA – working with governments and international partners – secured a strong mandate on debt and responsible lending and borrowing.

This United Nation’s consensus-built accord means the work of the United Nations Committee on Trade and Development (UNCTAD) will be renewed for the next four years. UNCTAD has served a vital role in consensus building on debt relief initiatives such as HIPC and MDRI that have resulted in more than 100 billion dollars in debt relief. Currently Jubilee serves as an expert to UNCTAD and has helped develop principles on responsible lending and borrowing – an actual solution to the international debt crisis. UNCTAD’s renewed mandate will allow them to build an international consensus on responsible lending and borrowing.

However – winning the new mandate was hard fought and hard won. A week before negotiations began on UNCTAD’s renewal, there was a release of negotiating documents which illustrated that some developed countries were seeking to weaken and even eliminate UNCTAD’s mandate on debt, financial reforms and continued consensus building on principles of responsible lending and borrowing. It seemed likely that there would be a North/South divide and the support of this effective UN body would end – but with the mobilization of significant pressure and the strong support of the Chinese – Jubilee and their allies won.

Jubilee USA staff were in contact with decision makers at the White House, Treasury and State Department during negotiations in Qatar and were able to meet with US government negotiators. Please read their thank-you letter to President Obama for joining Jubilee and ensuring a strong mandate for UNCTAD on debt relief and promoting financial reforms.

Eric LeCompte, Jubilee USA Executive Director, was hosted for these negotiations by UNCTAD to moderate a panel with 11 financial ministers and treasury heads from around the globe to speak in support of UNCTAD’s principles on responsible lending and borrowing. You can watch and hear this panel here and see UNCTAD’s press release here.

UNCTAD Meeting Overcomes Serious Disagreements

christina — Fri, 27 Apr 2012 20:22:46 +0000

At a contentious meeting of the UN Commission on Trade and Development (UNCTAD) ending Thursday in Doha, Qatar, the role of the UN organization in examining trade and development was confirmed, but not after a week of hard debate. The Doha Mandate, adopted by consensus by the member States, requests that UNCTAD continue its work along the three pillars of consensus-building, policy research and technical assistance. “UNCTAD remains the focal point in the United Nations for the integrated treatment of trade and development, and interrelated issues in the areas of finance, technology, investment and sustainable development,” reads part of the agreed text.

Profound discord between industrialized nations and developing countries threatened to ruin the UNCTAD meeting in Doha, and endangered the survival of this United Nations body that defends the interests of the developing nations of the South. Disagreements between the blocs, broadly identified as countries of the North and of the South, have arisen mainly from differing views of UNCTAD’s mandate and different visions of development and how it relates to social, environmental, economic and financial variables.   One important area under discussion involved giving UNCTAD a mandate to investigate the current global financial crisis and its effects on the real economy, something for which developing countries and NGOs pressed, but which industrialized countries rejected out of hand.

On Saturday April 21 at the conference’s inaugural session, 37 international and 137 national NGOs sent a message to participating governments, titled “Strengthen, don’t weaken, UNCTAD’s role in global governance”, highlighting the important role played by UNCTAD “in identifying the key causes” of the global crisis originating in 2008.   UNCTAD has assisted developing countries in seeking solutions to the impacts of the crisis, and has advocated the reform of global economic and finance policies in order to prevent similar crises from recurring, the NGOs said.   ”UNCTAD is well known for having predicted the crisis in advance, a fact that is to be commended, particularly given its paucity of resources compared to institutions such as the International Monetary Fund (IMF), the World Trade Organization (WTO), and the Organisation for Economic Co-operation and Development (OECD), which failed to do so,” the message says.   Signatories of the message to the governments at the UNCTAD meeting include ActionAid International, the African Trade Network, the Arab NGO Network for Development, CIDSE (an international alliance of 16 Catholic development agencies), the European Network on Debt and Development, and Friends of the Earth International. The Missionary Oblates JPIC Office joined the Hemispheric Social Alliance, the International Trade Union Confederation, Oxfam International, Public Services International, the Third World Network, the Transnational Institute and the World Council of Churches in signing the declaration.

In the negotiations of the conference’s outcome document, China and the Group of 77 (G77) defended UNCTAD’s role. The Group of 77 (G77) is the developing world bloc that was formed after the first UNCTAD conference, held in Geneva in 1964. Today, it is made up of 132 member countries. In addition to the EU, the JUSCANZ (JZ) group, consisting of Japan, the United States, Switzerland, South Korea, Canada, Australia, New Zealand, Norway and Liechtenstein, represented industrialized countries at the Doha conference.

UNCTAD Director Supachai’s views clashed with that of the industrialized country groups, and his report, presented to the conference on Saturday, warned against the dangers of globalization and development processes driven by international finance.   The disagreements between developing and industrialized countries are even more acute in the debate about the accords reached at the previous UNCTAD session four years ago, held in Accra, Ghana.   The G77 wanted to reaffirm and strengthen the Accra Accord, so that UNCTAD can continue with its present work, following the direction laid down by its secretariat.   But the JZ wanted all reference to reaffirming the Accra agreement eliminated from the outcome document, and proposed that the accord be reviewed.   In the end, the Accra Accord was confirmed. China was considered largely responsible for the success in holding firm against the demands of the EU and the JZ countries.

The industrialized countries also wanted to reject paragraphs about the management and resolution of national debts, the responsibilities of lenders and borrowers, and an orderly solution to the debt crisis.   Yet, the UNCTAD meeting kick started an endorsement process to adopt voluntary principles on sovereign lending and borrowing. The Jubilee USA Director, Eric LeCompte, attended the meetings as this is an area of particular concern to Jubilee USA, of which the Missionary Oblates is a member.

Read the Jubilee principles on responsible lending and borrowing.

Spring/Summer Issue of JPIC Report now available!

christina — Thu, 26 Apr 2012 16:48:48 +0000

The Spring/Summer Issue of our bi-annual print newsletter is now available on-line. (Download the PDF…)

This issue includes articles on Global HIV/AIDS funding, a new organic farm at Oblate headquarters in Washington, the human reality at the US/Mexican border, shareholder advocacy in the financial sector, human trafficking and environmental issues: from biodiversity loss and climate change to OMI JPIC work in solidarity with Bangladeshi colleagues and new solar panels on an Oblate church in California.

Shareholders, NGOs, raise questions about Newmont Mining’s social and environmental risks at company’s Annual General Meeting

christina — Thu, 26 Apr 2012 15:13:20 +0000

Shareholders and NGOs at the Newmont Mining annual meeting in Wilmington, DE on Tuesday, April 24, questioned company senior management and the Board of Directors about the operational and reputational risks Newmont faces in Peru, and emphasized the need for the Free, Prior and Informed Consent (FPIC) of local communities where Newmont operates. In addition, the group strongly encouraged additional disclosure by the company on its environmental and social guidelines and practices, including Board oversight of these issues. The Missionary Oblates are involved in the dialog with Newmont, with particular concerns about the company’s operations in Peru, the Congo and Indonesia.

In 2007, in response to a shareholder proposal filed by members of The Interfaith Center on Corporate Responsibility (ICCR), Newmont agreed to conduct a global review of its policies and practices related to community opposition in its mining operations. At this year’s annual shareholder meeting, the lead proponent of that proposal, Julie Tanner, Assistant Director of Socially Responsible Investing at Christian Brothers Investment Services (CBIS), expressed frustration over Newmont’s lack of disclosure on the implementation its Community Relations Review (CRR).

“The issue of accountability to stakeholders is critical and one which drove shareholders to request the evaluation of community relationships, including aspects of potential conflict and opposition. We ask the Newmont Board to publicly disclose to stakeholders, including shareholders, how it is overseeing implementation of the CRR, and the goals, benchmarks and indicators used to assess progress,” said Tanner.

In May 2009, the “Community Relationships Summary Report” was released that included an extensive review of recommendations to improve Newmont’s policies and practices relating to its relationships with local communities. According to the company’s website, the findings revealed that Newmont “must improve its relationships with local communities; build its capacity to resolve conflict and address grievances; and develop global policies, standards and programs that better guide its behaviors.”

“Three years ago, shareholders commended Newmont for its commitment to address the root causes of community conflict through review of its policies and practices regarding relationships in the communities in which it operates,” said Cathy Rowan, Corporate Responsibility Coordinator for the Maryknoll Sisters. “Until now, we do not know if implementation of the CRR has made any difference. Is the company able to demonstrate that community opposition has been reduced? In fact, given the situation the company faces today with the Conga Mine in Peru, we wonder if community conflicts are ‘the new normal’ for Newmont, and are concerned about Newmont’s ability to maintain a social license in Peru, and other countries where it has operations– currently or in the future.”

The shareholders addressed Newmont’s Board regarding how the company intends to ensure the long-term viability of its operations in Peru. At Newmont’s proposed Minas Conga mine in the northern Cajamarca region of Peru, community groups have voiced opposition to the project due to the quantity of water used and the potential for water pollution in the fragile watershed area. Construction has been halted since November 2011 after protests culminated in a shooting incident by the Peruvian National Police. A state of emergency was declared by the National Government in four districts within the Cajamarca Department on December 5th 2011 and was lifted on December 15th.

Nick Magel of the environmental group Earthworks, representing the Missionary Oblates of Mary Immaculate, said: ” Newmont has an opportunity to demonstrate real social and environmental leadership by adopting a free, prior and informed consent (FPIC) process that is implemented through independent and credible means. Newmont’s failure to obtain the free, prior and informed consent of affected communities in Peru and elsewhere has turned into a reputational and financial liability for the company.” By Newmont’s own estimates at the time the project was suspended in November 2011, project delays cost the company $2 million per day, which the company has attempted to reduce.

This is not the first time that issues regarding community consent and water use and quality have surfaced at Newmont’s gold mining operations in Peru. In 2004, Newmont suspended plans to develop a gold mine at Cerro Quilish following weeks of protests and opposition by local communities. At the time, Newmont issued a statement in Peruvian newspapers stating, “We wish to express our willingness to always listen to the feelings of the people of Cajamarca, acknowledge our mistakes and promote positive change in our behavior to reconstruct our relationship with the population.”

Last month, the investor research firm ECPI last month conferred an “F” grade to Newmont, as it has every year since 2007, due to serious social and governance concerns, writing: “In the last decade, community protests occurred in the Newmont Mining sites in Indonesia, Ghana and Peru because of severe environmental pollution caused by the mine tailings and waste disposal contaminating community water sources, as well as poor health and safety labor conditions. These severe impacts have prompted communities’ demonstrations and complaints against land grabbing and poor compensation for the damages caused by the mine operations.”

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For more information, contact:

Julie Tanner, Christian Brothers Investment Services, 917-723-7702

Cathy Rowan, Maryknoll Sisters, 718-822-0820

Nick Magel, Earthworks, 419-283-2728

Payal Sampat, Earthworks, 202-247-1180

Oblates Participate in 10th Harvard University Forum on Islamic Finance

christina — Fri, 20 Apr 2012 22:02:09 +0000

Fr. Séamus Finn, OMI participated in the 10th Harvard University Forum on Islamic Finance held in Cambridge, Massachusetts on March 24-25, 2012. He was a panelist in the plenary session on Faith-Based Investment and Social Responsibility.

The Forum brochure offered this summary of the proceedings:

The Tenth Forum features three main parallel sessions, which reflect three major themes within the topic of economic development. These include the Islamic financial sector’s contribution to global economic development, Islamic finance and the development of Small and Medium-sized Enterprises (SMEs), and faith-based investment and social responsibility. Apart from these three main sessions, there are also parallel sessions on Islamic finance and the Arab Spring movements, global perspectives on Islamic finance, Islamic finance and alternative economic thinking, and current academic research on product development in the Islamic finance industry. With over 50 speakers and 30 nationalities represented, the forum attracts the leading practitioners from academia and the industry to critically discuss the issues highlighted above with a view to proposing sustainable developmental plans for the Islamic finance industry in general. There is no doubt that this rapidly developing field of the global financial system requires a close scrutiny to maximally harness it for the development of the global economy.

Learn more about the Islamic Finance Project…

US Textile Trade Associations Press Bangladeshi Government on Murder of Labor Leader

christina — Fri, 20 Apr 2012 18:36:48 +0000

: Aminul Islam, slain Bangladeshi labor leader

A number of textile trade associations and unions sent a letter to the Bangladeshi Prime Minister in response to the recent murder of labor activist, Aminul Islam. Mr. Islam was a senior organizer at the Bangladesh Center for Worker Solidarity (BCWS) and a local leader for the Bangladesh Garment and Industrial Workers Federation (BGIWF). Both organizations have been working to help workers combat low wages, deadly factory fires, and repression of their right to organize. This letter went to the Prime Minister through the initiative of ICCR shareholders with Wal-Mart and PVH Corp. (Phillips Van Heusen). The Missionary Oblates is an active member of the Interfaith Center on Corporate Responsibility (ICCR).

Read the letter (Download PDF)

The International Labor Rights Forum sent out this information on Aminul Islam on April 12th:

Last Wednesday, Aminul Islam left his office for evening prayers. He noticed a police van parked outside and called his colleagues, worried about possible harassment. Then he went to meet with a worker. He never returned home.

His body was found a day later. According to police reports his legs had severe torture marks including a hole made by a sharp object. All his toes were broken.

Aminul was a senior organizer at the Bangladesh Center for Worker Solidarity (BCWS) and a local leader for the Bangladesh Garment and Industrial Workers Federation (BGIWF). ILRF has worked with BCWS and BGIWF for many years. They have been a critical force in the effort to defend workers’ rights in a country known for sub-poverty wages, deadly factory fires, and repression of the right to organize.

Over the past two years, the government of Bangladesh has carried out a campaign of intimidation and harassment against BCWS. On June 16, 2010, Aminul was detained by security forces, beaten repeatedly and threatened with death, in an attempt to coerce him into making incriminating statements against the organization. Not long after, he and his colleagues Kalpona Akter and Babul Akhter were arrested and kept in jail for nearly a month, where they were subjected to psychological and physical abuse. Since 2010, Aminul, Kalpona and Babul have faced criminal charges for which no substantiating evidence has been presented.

Given this history, there is strong reason to suspect that Aminul’s murder was in retaliation for his efforts as a labor rights organizer and to fear this could represent a violent escalation in the repression of worker rights advocates in Bangladesh.

Join with us in calling for a thorough and impartial investigation into Aminul’s murder. BCWS and BGIWF have asked for an outpouring of letters to the Prime Minister of Bangladesh. Please take a moment to add your voice!