News Archives » financial regulation
Bank of America is 2nd Major U.S. Financial Institution to Face Derivatives Proxy Vote By Shareholders April 26th, 2010
The verdict at BofA’s Wednesday Annual Meeting comes on the heels of a huge 30 percent support at Citigroup on the same Resolution. Of the four derivatives disclosure resolutions being filed, that with BofA may be the most telling, considering how the mishandling of Credit Default Swaps (a type of derivative) tripped up BofA’s Merrill Lynch.
With a much higher-than-expected 30 percent of Citigroup shares voted on April 20th in favor of more disclosure of derivatives practices, the focus now shifts to Bank of America (BofA), where shareholders will vote Wednesday (April 28th) on the same resolution sponsored by faith-based institutional investors belonging to the 300-member Interfaith Center on Corporate Responsibility (ICCR). The BofA vote will take place as Congress debates the fate of financial regulatory reform, including increased derivatives disclosure.
The resolution gives shareholders an opportunity, as they did at Citigroup, to express their concerns about the lack of transparency in the derivatives market that contributed significantly to the financial crisis. The higher-than-expected vote from Citigroup shareholders resulted even though the United States government, which controls 27 percent of Citigroup as a result of the bank bailouts, failed to fully support the resolution.
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Senate Urged to Include Derivatives Regulation in Financial Reform Bill April 25th, 2010
The Oblates joined a broad array of groups concerned about commodity speculation in urging the inclusion of a bill regulating derivatives in the larger Senate financial reform legislation being debated this week. Specifically, the groups are asking that the “Wall Street Transparency and Accountability Act” (reported out of the Agriculture Committee on Wednesday by a bipartisan vote), be incorporated into the “American Financial Stability Act” (S.3217) – otherwise known as the comprehensive “Wall Street Reform” bill.
The Missionary Oblates signed a letter generated by the Commodity Markets Oversight Coalition, an informal alliance of industry groups, consumer advocates and academics, representing commodity producers, processors, distributors, retailers, and residential, commercial and industrial end-users. The signatories believe that policy in the commodity trading markets should aim to strengthen oversight, transparency and stability, and to address inadequacies in the existing derivatives markets, both regulated and over-the-counter. As faith-based shareholders, the Missionary Oblates have been pressing for better management of derivatives in discussions with the financial services sector for a number of years.
Read the letter… (Download PDF)
Urge Your Senator to Vote for Strong Financial Reform and Consumer Protections February 11th, 2010
Jim Wallis of Sojourners Magazine argues forcefully that now is the time to press our Senators to vote for strong financial reform and consumer protections. Blogging about an interview with Elizabeth Warren, the Harvard economist who is Chair of the TARP Congressional Oversight Panel, Wallis conveys her deep concern about the lack of regulation over the financial sector. As he writes, “She makes the urgent case for reform with the compelling analysis of a top economist, the family values of a grandmother, and the moral arguments of a person of faith.”
Read Wallis’ blog on his interview with Elizabeth Warren…
Lift the Debt Burden on Poor Countries September 21st, 2009
Without debt relief, the developing world has little hope of economic progress, say the Rev. John Welch* and Ruth Messinger*.
The two members of Jubilee USA argue for debt cancellation in the poorest countries in a compelling article published in the Pittsburgh Post Gazette on the eve of the G-20, the international financial summit being hosted by President Obama.
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Civil Society Groups Urge President Obama to Press for Greater Financial Regulation September 21st, 2009
The Missionary Oblates joined with over 50 organizations representing some eight million Americans in sending a letter to President Obama urging him to advocate for strong regulation needed to prevent future financial crises.
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