Justice, Peace, and Integrity of Creation » Faith Responsible Investing

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.

The Sisters of ICCR: Genuine Faith in Action

christina — Mon, 07 May 2012 20:03:40 +0000

The Interfaith Center on Corporate Responsibility (ICCR), a shareholder coalition celebrating over 40 years of social justice advocacy, released a statement on Friday acknowledging the vital role of Catholic women religious in transforming corporate policies and practices in order to create a more just and sustainable world.

Read the statement here… (Download PDF)

Impacts of Mining Exhibit at the UN hosted by VIVAT International

christina — Tue, 01 May 2012 14:34:32 +0000

The Missionary Oblates and VIVAT International will host a multi-media exhibit on the impacts of mining operations on people and ecosystems around the world on May 8th at the United Nations. This unique exhibit will be up for viewing from 11:00-3:00 pm in the Chapel at the Church Center for the United Nations. May 8th is the second day of the Permanent Forum on Indigenous Issues, the theme of which is the Doctrine of Discovery. The exhibit organizers have reached out through their global faith-based networks for stories and images from local communities affected by mining operations. If you are in New York on May 8th, please attend!

Goals of the exhibit include:

Bearing witness to the suffering of the Earth and its peoples as a consequence of extractive industry abuses;
Underscoring the necessity of industry standards in preventing mining abuses; and
Revealing the courageous resistance of peoples all over the world to inadequate extractive industry standards.

At 2:30, there will be a special 15 minute commemoration of those who have been murdered around the world as a result due to their community resistance against the consequences of extractive industry on their communities.

Event details (Download PDF)

Banks Targeted in Divestment Campaign and by Faith-Based Shareholder Activism

christina — Mon, 30 Apr 2012 03:32:28 +0000

Churches and faith-based shareholders alike have been taking action against big banks that have failed to respond to the plight of homeowners and others seriously affected by the financial crisis. The Missionary Oblates have been actively engaging the big banks and financial institutions in an effort to deal with some of the underlying problems that have caused so much pain to so many.

Recently, members of the Interfaith Center on Corporate Responsibility (ICCR) facilitated the participation of VOICE (Virginians Organized for Interfaith Community Engagement) in the Detroit AGM of GE Capital. VOICE is a faith-based community organization representing people who have lost their homes or whose houses are threatened by the on-going foreclosure crisis. GE Capital holds some of these mortgages and has been resistant to negotiation of the mortgage terms.

A recent article in Catholic News Service looks at the growing divestment campaign and some of the other activities of church groups vis a vis the big banks.

Angry Homeowners, Community Groups Protested at Wells Fargo AGM

christina — Mon, 30 Apr 2012 03:25:01 +0000

Thousands of angry homeowners, immigrants, union members, Occupiers and community groups converged on the annual shareholders meeting of Wells Fargo Bank. In a carefully choreographed protest, simultaneous marches left Justin Herman Plaza on the city’s waterfront, site of the Occupy San Francisco encampment last fall. Demonstrators walked up parallel streets into the financial district, where they encircled the block in which the meeting was set to take place, in the Julia Morgan ballroom of the Merchant’s Exchange Building.

A group of religious, union and community representatives had purchased shares of stock in the bank beforehand, supposedly allowing them to attend the shareholders meeting. Some even held proxies, allowing them to vote the stock belonging to others. As the rally swirled outside, and speeches and songs filled the streets now vacant of their normal traffic, the police closed off the building and refused to let the shareholders inside:

Wells Fargo blocked over a hundred legitimate shareholders from entering the meeting, saying that the room had reached maximum capacity. About 20 shareholders inside took turns interrupting the CEO while he tried to give his speech. They were escorted out of the meeting. The meeting ended in 37 minutes (compared to 2.5 hours in previous years), with not a single question, largely due to the turmoil both outside and inside the meeting and the fact that Wells packed the room with their own employees.

While the media coverage portrayed the events as part of the Occupy movement, PICO groups in the Bay Area, SEIU, NPA, ACCE, AJS, NBL and other organizing groups provided the core leadership for the event.

Developing a Multi-Faith Global Statement on Extractives Industries

christina — Fri, 27 Apr 2012 17:54:19 +0000

On April 24, Oblate Bishop Dinualdo Guttierez OMI from Philippines and Bishop Bejoy D’ Cruze OMI from Bangladesh joined the JPIC staff in attending a conference designed to develop a multi-faith global statement on extractives industries. The meeting was held at the National Cathedral in Washington D.C.

Participants came from major faith groups and leading international NGOs from all continents. A multi-faith global statement on extractives will serve as a shared common document that people of faith can use when dealing with issues of extractives. The meeting was initiated and facilitated by the Bank Information Center and the Oblate JPIC office.

Participants in the April 2012 Multifaith Conference on Extractives Industries

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