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. 

]]> http://omiusajpic.org/2012/05/17/tell-congress-end-too-big-to-fail-make-banking-safe/feed/ 0 http://omiusajpic.org/2012/05/16/oblate-questions-jp-morganchase-ceo-jaime-dimon/ http://omiusajpic.org/2012/05/16/oblate-questions-jp-morganchase-ceo-jaime-dimon/#comments Wed, 16 May 2012 21:48:00 +0000 christina http://omiusajpic.org/?p=11510 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:

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

“In 1971 a small group of believers decided to establish the Interfaith Center for Corporate Responsibility to facilitate and coordinate their efforts to engage and challenge US corporations who had a presence in South Africa. The apartheid system of government was already well entrenched and they were searching for tools and opportunities that could join the chorus of advocates that were working to dismantle the apartheid system. Their objective was very simple; ask and advocate that US companies withdraw from South Africa and therefore deprive the government of any of the products or tax revenues that enabled their system of government to continue.”

Read the blog…

The group representing the Oblates at the ICCR 40th Anniversary event held in New York on September 22, 2011 from left to right are: Anne Van Dyke; Andrew Small, OMI; George Ngolwe; Seamus Finn, OMI; Christina Herman; Mary O'Herron; Daniel LeBlanc, OMI.

The Interfaith Center on Corporate Responsibility celebrates its 40th Anniversary this year. The Oblate JPIC staff, which is deeply engaged in the work of faith-based shareholder advocacy, joined in the celebration which followed a week of strategizing on issues as diverse as human trafficking, immigration, mining, responsible finance, water and access to medicines.

H.R. 2759 would require companies to include such disclosures in their annual reports to the Securities and Exchange Commission (SEC). Disclosure would include policies to identify and eliminate risks of forced labor, slavery, human trafficking, and the worst forms of child labor within their supply chains. It would also require suppliers to certify that materials incorporated into the products comply with laws regarding the above issues in the country or countries in which they are doing business.

The disclosures would be available on the SEC and company websites. The bill has been referred to the House Committee on Financial Services for further legislative consideration. Stay tuned to the JPIC website for updates on this important legislation.

Read about ICCR and some recent successful member initiatives.

New York, NY

Today, a task force from the Interfaith Center on Corporate Responsibility (ICCR) meets with representatives from the Federal Reserve to discuss its progress implementing regulation passed as part of the Dodd-Frank Bill last July. At issue are structures created by the Operations Management Group to monitor the global trading of derivatives in an effort to limit the excessive risk-taking that nearly toppled the financial system in 2008, left millions jobless and homeless, and shook global confidence in the markets to its core.

On Thursday, the same group will appear as shareholders at Citigroup’s AGM looking for investor support for their proxy resolutions. The Citigroup AGM will be the first in a series of shareholder meetings that includes members of the “too big to fail” banks that received billions in government bailout funds.

In October of 2010, the ICCR team released a white paper titled Faith and Finance: Finding Common Ground to Protect the Common Good which laid out the steps they believed were necessary for financial reform to be successful. The group stressed that “an open, transparent and well-regulated global financial system is vital to serve all stakeholders, especially the world’s poor.”

Fr. Seamus Finn of the Missionary Oblates of Mary Immaculate said: As people of faith we are concerned with how market instability impedes the free flow of capital putting millions of lives in jeopardy. As investors we understand that a combination of regulation from outside and inside these financial institutions is required to secure the system and restore the public’s confidence.

Sr. Barbara Aires of the Sisters of Charity of St. Elizabeth said: It’s not difficult to understand why things have to change: When there are no jobs, homes are being improperly foreclosed and now, state and local budgets are in crisis, it’s clear the system is broken. Citigroup management has an obligation to its shareholders to fix what is broken.”

ICCR members have been engaging the banks since the 1970s on a range of practices including predatory lending, modifications of housing loans, executive compensation and lobbying. At last year’s Citigroup meeting, their proposal requesting greater transparency around derivatives trading received an unprecedented 30% of the vote by shareholders, paving the way for even higher votes at Goldman Sachs, Bank of America and J.P. Morgan Chase.

“As the market recovers and bank CEO compensation returns to its breathtaking levels, we need to keep these issues front and center with bank management, government regulators and other investor groups until meaningful reform happen,” said Laura Berry, Executive Director of ICCR.

Finn said, “As Citigroup’s is the first shareholder meeting this proxy season, we want to send a strong message to bank management that we hope other investors will also hear: Share your strategies to reduce operational risk and make affordable capital available to everyone . Only then will the public’s confidence in the financial system be restored.”

For more information please contact:

Susana McDermott

Director of Communications, ICCR

212-870-2938

smcdermott@iccr.org

About the Interfaith Center on Corporate Responsibility

Currently celebrating its 40th year, ICCR is the pioneer coalition of active shareholders who view the management of their investments as a catalyst for change. Its 300 member organizations with over $100 billion in AUM have an enduring record of corporate engagement that has demonstrated influence on policies promoting justice and sustainability in the world.

Fr. Seamus Finn, OMI – Director of the Oblate JPIC Office and Board member of the Interfaith Center on Corporate Responsibility – will give the keynote address on corporate responsibility and socially responsible investing. He encourages people to integrate their beliefs — such as caring for the environment and paying workers a fair wage — into their investment and business decisions.

“You don’t have to sacrifice return on your investment or profit from your business by integrating either your beliefs or your values into that process,” Fr. Finn said.

He sees the issue moved to the front burner because of the string of problems in the Middle East.

“What it does for me is shine a spotlight on that part of the world and ask a question about whether or not the U.S. has been turning a blind eye to the plight of a lot of citizens in these countries and imported refugee labor because we need the oil,” he said.

But Fr. Finn, who has been pushing for social responsibility in business for more than two decades, said he sees reason for hope as more companies put the environment and people first with tags like organic and sweatshop-free.

“There’s a reason to be optimistic I think because the consumer — the person who’s out there buying a computer or a car or some piece of clothing — they’re asking more questions about where these things come from,” Finn said. “What I think is intriguing and encouraging is that it’s not as difficult to get answers to these questions as it was 20 years ago. You can take our your iPhone or Android and if you have a question, you can put it in there and someplace out there in this vast web of Internet connectivity you’re going to get some answers.”

Read the article at the Daily Pilot

Read the letter…

To see where various electronics companies rank in using conflict-free minerals and to send them messages, go to Raise Hope for Congo (English only)