News Archives » Economic Justice
Bank Scandal…Yet Again July 25th, 2012
Recent revelations of bank manipulation of the all-important LIBOR (London Interbank Offered Rate) form the basis for this most recent commentary, Here They Go Again, by Fr. Seamus Finn OMI on Huffington Post.
LIBOR is the average interest rate estimated by leading banks in London that they would be charged if borrowing from other banks. It is recognized as the primary benchmark for along with the Euribor (Euro Interbank Offered Rate), for short-term interest rates around the world
Commonly, financial institutions, mortgage lenders and credit card agencies set their own rates relative to it, hence its importance. At least $350 trillion in derivatives and other financial products are reportedly tied to the Libor
Read Fr. Finn’s blog on Huffington Post…
Watch: Fixing the Future! July 25th, 2012
- The Oblate-sponsored Community Supported Garden at La Vista is a good example of the community based economic alternative highlighted in Fixing the Future.
Fixing the Future is both a film and a project to help communities across America become aware of the sustainable, community-based economic alternatives developing everywhere in the US.
Host David Brancaccio, of public radio’s Marketplace and NOW on PBS, has traveled across the country to visit people and organizations that are attempting a revolution: the reinvention of the American economy. The film features communities using sustainable and innovative approaches to create jobs and build prosperity. Fixing the Future highlights effective, local practices such as: local business alliances, community banking, time banking/hour exchange, worker cooperatives and local currencies.
The Imploding Banking Sector July 24th, 2012
Read Fr. Finn’s latest blog on Huffington Post – his commentary on the latest implosion of the banking sector. It begins…
Summer months here in Washington, D.C. are generally characterized by the slower pace that is associated with southern cities and the rush of Congress and government employees to get in some vacationing with their families before Labor Day. Even the traffic reporters usually sprinkle their reports with comments about the decreased traffic flows or the early exits for the eastern shore that usually start on Thursday afternoon.
Unfortunately, if you are on the House Financial Services Committee or the Senate Banking committee or one of the regulators for the numerous corporations that operate in the financial services sector, there has been very little down time since the famous early May JPMC announcement about the huge trading loss in their Chief Investment Office in London. Since then the amount of the loss has more than doubled and numerous investigations into the actions of individuals involved in the loss have been opened. All of these activities promise to keep a number of folks at their desks for longer than expected.
Victory Against Vulture Funds! July 23rd, 2012
Jubilee USA Stopped Vulture Funds in New York State; Courts Stopped Them in the UK
In June, Jubilee USA – of which OMI JPIC is a member – launched a campaign to stop vulture fund legislation from passing in the New York State Legislature. Vulture funds were attempting to get Bills through that would have promoted and protected vulture funds in New York State courts, making it easier for vultures to litigate against poor countries.
Jubilee mobilized more than 4,000 New York Jubilee members to take action, calling and writing their Assembly Members and Senators to stand with the poor and not with the hedge funds.
The Wall Street Journal’s Jacob Gersham wrote how important this work was: “The path became trickier for Elliott on Friday, when an alliance of religious groups that supports debt relief for developing nations, Jubilee USA Network, entered the fray by issuing a mass alert about the bill. It said the proposed law could be wielded in poorer regions and “litigate poor countries into submission.” Read the full article in the Wall Street Journal.
UK Courts Rule Against Vulture Funds, Support DR Congo
In a surprise decision in the Jersey Isles, the UK’s Privy Council overturned a prior ruling, siding with the Democratic Republic of Congo against vulture fund FG Hemisphere. FG Hemisphere was seeking $100 million from the DRC for a debt the vulture fund bought for just $3 million. While having initially lost the case, the DRC has won on final appeal. While the UK passed a law in 2010 limiting the amount a vulture fund could claim from impoverished countries, it did not apply to crown protectorates, like Jersey, where vultures funds could still pursue cases. This decision was pleasantly unexpected and a cause for celebration.
Religious and Civil Society Groups Challenge Violent Repression of Peruvian Mining Protests July 12th, 2012
Newmont Mining Protests in Peru
The Oblates JPIC Office joined a broad array of civil society and religious groups expressing serious concern to the Peruvian government about the “alarming escalation in the repression of free speech, police brutalities, and human rights violations” in the country, largely related to mining activities. Indigenous communities, whose water supplies and way of life are threatened by the mining developments, have refused their consent to such projects. The government’s response has been heavy-handed, with the death of five people since the beginning of July 2012, and numerous injuries. The international groups resolved to continue to monitor and publicize developments, and asked the government to:
- Immediately halt the repression and violent attacks against protestors.
- Lift the “State of Emergency” that violates citizen rights and has led to the militarization of the region, with the potential to lead to additional acts of violence.
- Immediately undertake an independent investigation into the brutal arrest of Father Marco Arana and the intimidation of other leaders of the opposition to the Conga project.
- Adopt a mandate of community consent prior to all extractive industry projects, as the lack of consent is the largest driver of social conflicts in Peru.
