Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts

10/30/12

Paul Corbit Brown Challenges European Bankers on Coal: "Stop financing nightmares...begin financing dreams"


From Paul Corbit Brown's (bio) series of eighteen photographs, "Troubled Water" from his larger project, Toxic Water, Poisoned People: When Mountains Fall To Pay For Coal:  from left to right:

Photo 2 of 18: Acid mine drainage, July 27, 2008
Photo 3 of 16: Maria Lambert at  home in Prenter WV shows jars of water that came from her kitchen sink. Behind her are the jugs of water she filled and carried everyday from elsewhere so she would have water for her family to cook with and to drink.
Photo 6 of 18 (chosen by Blue Earth for its photograph of the day on September 17, 2012): Owen Stout with water from his family’s well in Cabin Creek, WV.

At 4:30 p.m., coming back from a late lunch, I noticed that my friend Paul Corbit had sent out--at 3:11 p.m. from Frankfurt, Germany via his cell phone--a status update on Facebook that he was "with" me and nine others speaking to a meeting of bankers from Germany, Austria and Switzerland, sharing why they should "no longer finance coal in general, and Mountaintop Removal in particular."

Through the magic of the internet, I started a conversation with him at  4:35 p.m.and by 5:12 he'd given his permission to share these notes from his talk and approved the use of the above copyrighted images.


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Ladies and gentleman, I would first like to thank you for having me here. I am honored to have the opportunity to speak to you about this incredibly important situation. Indeed, it is so important that I have spent a week of my life to travel thousands of miles, knowing I will have only 15 minutes to speak to you. I hope I am up to the task. I regret that I cannot address you directly, in your mother tongue, for we do not share that. But I do hope to reach you as a fellow human being.

I will not speak of the images behind me directly, but rather, I will let them play silently in the background as a witness to the irreversible devastation of my home in Appalachia, the second most bio-diverse ecosystem in the world, and the poverty, sickness, suffering and death of many people at the hands of the coal industry.

Martin Luther King said, " We must all learn to live together as brothers and sisters or we will all perish together as fools. We are tied together in the single garment of destiny, caught in an inescapable network of mutuality. And whatever affects one directly affects all indirectly."

First I would like to propose a toast

First, I would like to propose a toast. I ask each of you to raise your glass with me and drink to our shared destiny. I know it isn't normal to toast with water, but in this case, I think it is highly appropriate because water is one of the few things that all humans, in fact all life on this planet, share. Our planet is 2/3 water and our bodies are more than 3/4 water. And so it is true that whatever any one of us does to the water on this planet, we do to everyone and to all life on earth.

The bottle of water I am holding is water that came from a well in a community near where I live. You would be rightfully disturbed if I told you that you had just shared some of this water, unaware, just like the people in so many communities where coal is mined.

Don't worry, even if I had shared this water with you, it's doubtful only one sip of it would harm you very much. But unfortunately, my people have had more than one drink. It is their daily reality. It is the water they use to drink, to cook with, and to bathe themselves and their children.

I will pass this water around so you can see it up close and you can know what it feels like to hold death in your hands. You are even free to smell it, if you dare. I put it in a water bottle from here because it is symbolic of the very real fact that financing this industry anywhere, makes a problem for you here, because it makes your bank complicit in the system that creates this poison water.

The effluents of mining, preparing and burning coal include mercury, chromium, selenium, cadmium, lead and arsenic- just to name a few. Heavy metal poisoning is forever. Once it is ingested into your body, it stays there and, like radiation, it accumulates until it kills you. And even worse, large amounts of this poisoning have begun to cause genetic mutations in aquatic wildlife near my home. These mutations will eventually work their way up the food chain to us, humans, who on our current course of environmental devastation, won't stay at the top of this chain for long.

The good news is that we really needn't worry about saving the earth.

The good news is that we really needn't worry about saving the earth. She has been through several mass extinctions already. We aren't really destroying the earth, we are simply and rapidly making it unfit for human life. This is proven by the fact that 4,000 additional Appalachians die each year in the areas where coal is mined and burned.

Death to my people doesn't come quickly from the barrel of a gun. It comes slowly from the simple act of drawing water from the kitchen faucet. There is no difference in killing me slow or killing me fast.

Coal in general, and mountaintop removal mining in particular, is far more than an environmental disaster. The production and use of coal is an egregious human rights violation of epic proportions. It is a living, waking nightmare.

Why should you not finance mountaintop removal mining?

The question in front of us today is, "Why should you not finance mountaintop removal mining?" If, after hearing me talk and seeing the photographs of the way my communities and our ecosystem are being destroyed, isn't enough, I will give you another reason. You represent the banking industry. Banks exist for one very simply reason: to make a profit.

The science has finally arrived to prove what we in Appalachia have always known: coal is killing us. We now have more than 22 peer reviewed scientific studies that show how coal is irreversibly destroying our water and our health. These studies prove that people who live in areas around MTR are far more likely to suffer from heart attacks, cancer, respiratory diseases and are even more likely to have children with birth defects.

The science is here and the lawyers will soon follow.

The science is here and the lawyers will soon follow. Several large cases have already been heard in the courts, with tens of millions of dollars being rewarded to those who have suffered because of coal. This is only the beginning. The courts may finally force the coal industry to pay the true cost of its profits, the human cost- which until now, had been an externalized and hidden cost.

Many in the coal industry point to the jobs that coal creates. "Look at all we've given you," they say.

Yes. I see all you've given me every day.

And I answer," Yes. I see all you've given me every day. I watch my father gasping for his next breath, just like my grandfathers did. All of them victims of Black Lung disease. I see children dying of brain cancer and my own mother suffering through two fights with cancer. I see the communities left in ravages after you make your profit and leave. I see the five counties in my state that produce the most coal are among the poorest counties in my entire country. And I see you pointing to the food you have laid upon our tables, for a time, as being merely a distraction to the fact that you have poisoned the vessel from which we drink."

We should not need to wait for government legislation in order to do the right thing

As human beings with a hearts and minds, we should not need to wait for government legislation in order to do the right thing. Financing coal is exactly and simply financing the poisoning of Appalachian people and our planet. Why do you need to wait for the government to tell you it's wrong?

Coal is a barbaric and outdated method for producing heat and energy

Coal is a barbaric and outdated method for producing heat and energy. There are ways as yet unimagined to do all that coal has done and more. Rather than mining our mountains and destroying our water, invest your best money and efforts in mining the human imagination and the untapped potential for human creativity. The energy in coal pales in comparison to the unlimited and inexhaustible fire of the human spirit.

A good investment should be one for the future, rather than one of the past.

Imagine investing in chariots and stagecoaches when the automobile was first introduced

In hindsight, can you imagine investing in chariots and stagecoaches when the automobile was first introduced?

If you can't do it for my children, do it for your own. There is only one water and one air on this planet and, ultimately, it is shared by all of us. Would you want your children to drink this water and breath this toxic air? How would you feel to know that someone in another country was actually realizing a profit from the suffering and reduced life spans in your own community? I will not sit idly by, offering my life as a mechanism of sacrifice for anyone's profits.

Stop financing coal.

Dream won't manifest unless you, the bankers, finance it

In closing, I would like to share this:

Folks often confuse what they do, with who they are. Many people regard bankers as the greedy ones who only care about money and their profit. But I propose a different view, I suggest we look at bankers as those who sit at the right hand of the Architects of the Future. The architect can dream it, but the dream won't manifest unless you, the bankers, finance it.

From this perspective, the future truly lies in your hands. What will you choose to make of it? You can choose who you are by what you do. My father, for instance, was not merely a coal miner. He was a man who chose to work hard, at any peril to himself, to provide for his family and see to our wellbeing. He and my mother always chose to give of themselves for what was best for us and our community. The world is a better place due to the kindness, devotion and generosity they shared.

Although I don't know you, I have a great belief in each of you. I know each and every one of you has the capacity to change our world for the better. As I leave you, I will offer you this choice:
At the end of your lives, as you say to your children of the world you are leaving them, "I built this world and I now leave it to you", will you look back with pride or will you look back in regret?

The quality of our future will be measured in much more important terms than simply a financial return on our investments. It will be measured more by our ability to live peacefully with one another and in harmony with the planet that gives us life.

As bankers, I challenge you to stop financing nightmares and begin financing Dreams.

4/30/12

HANDS OFF APPALACHIA!: Occupy MTR Investor UBS

Illustration via William Isom, II

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The Historical Roots of May Day

May Day  originally commemorated Chicago's 1886 the Haymarket Massacre, when, during a general strike for the eight hour workday, an unknown person threw a dynamite bomb at police as they dispersed a public meeting, and police fired on workers, killing several demonstrators and resulting in the deaths of several police officers, largely from friendly fire.

 "Mayday," was also used as a distress signal for aviators because it approximates the French term "m'aider", meaning "come help me!"

 May Day 2012:  Occupy Movement Calls for a National Strike

This past winter, police aggression against even peaceful demonstrators, recalling Haymarket.  Occupy Oakland especially  brought this to light during  during the attack on Iraqi war veteran Scot Olsen.   Now Janet Weil, a San Francisco activist with Code Pink has written a manifesto. "Why I Strike"   in support of Occupy Wall Street's call for a general strike May 1.

Occupy Appalachia Joins Strike, Protests USB's Role in Destroying Our Mountains

Closer to home, Occupy Appalachia has called for May Day actions against Swiss-owned wealth management services company Swiss Banking giant UBS  which funds and provides investment support and advisory services for ALL companies engaged in mountaintop removal coal mining:  Arch Coal Inc, Alpha Natural Resources, Patriot Coal and James River Coal Company.

UBS  Fails to Live Up to Its Own Guidelines

  In UBS' 2011 Annual Report [p 62] it states:

"we decided to further strengthen our environmental and social risk management (including human rights) by identifying controversial activities where we will not do business, or only do business under stringent pre-established guidelines. Therefore we will not knowingly provide financial services to corporate clients, nor will we purchase goods or services from suppliers, where the use of proceeds, primary business activity, or acquisition target involves the following environmental and social risks: Extractive industries, heavy infrastructure, forestry and plantations operations that risk severe environmental damage."

"HANDS OFF APPALACHIA!" points out  that the company should bring its actions in line with its own annual report, and stop funding mountaintop removal coal mining.

Coal's Assault on Dissent

While Atlantic Magazine is asking if coal is doomed:  the companies have actually continued their assault on protest, "hoping to combine the results of several recent court cases to significantly narrow the ability of citizen groups to block new mountaintop-removal mining permits in federal court,"as Ken Ward, Jr. noted.

Lawyers for Alpha Natural Resources outlined their strategy last week during a hearing before U.S. District Judge Robert C. Chambers, who is considering citizen group challenges to at least two permits issued by the U.S. Army Corps of Engineers.

Targets for Occupy UBS:

Targets for Occupy UBS include East TM (Chattanooga, Cookeville, Johnson City, Kingsport, Knoxville, Oak Ridge); Southwest Virginia (10 South Jefferson Street, Suite 1050, Roanoke VA 24011; Western North Carolina (Ashville) and Kentucky (Lexington).
138 Charlotte Street, Asheville NC 28801

Invitation for Others to Suppport Hands Off Appalachia

If you cannot attend an action, Occupy Appalachia organizers are asking that you call or email the UBS branches and the headquarters and ask that they change their official policy on MTR:

Knoxville, TN
865-329-1239
Steven L. Meadows, Executive Director
steven.meadows@ubs.com


Johnson City and Kingsport, TN
423-928-7144 (Johnson City)
423-246 7111 (Kingsport)
David B. Arnold, Vice President - Investments, Johnson City & Kingsport Branches david.arnold@ubs.com


Oak Ridge, TN
865-522-5183
Bryan Mayo, Vice President - Investments, Oak Ridge Branch
bryan.mayo@ubs.com


Chattanooga, TN
423-267-1813
Jefferson B. Cronan CFP, Executive Director, Chattanooga Branch
jeff.cronan@ubs.com


Cookeville, TN
931-528-5426
John Stephen Boots, Account Vice President, Cookeville Branch
steve.boots@ubs.com


Roanoke, VA
540-344 5571
Paul Higgins, Branch Manager
paul.higgins@ubs.com
www.ubs.com/branch/roanokeah

Lexington, KY
859-269 6900
888-390-6900
859-335-8100 (fax)
Matthew Fresca, Branch Manager
matt.fresca@ubs.com
www.ubs.com/branch/lexingtonlc

Asheville, NC
828-258 9860
Jerome Hornowski, Branch Manager
erry.hornowski@ubs.com
http://financialservicesinc.ubs.com/branch/ashevillea8/

Right now haven't received the email contacts for the following. I'll add them, if I hear back from the organizers...

Washington, DC Branch
202-638-7090

Headquarters NYC
212-713-2000

Headquarters New Jersey
201-352-3000

Other Banks Are Complicit Both in Mining and Funding Coal-Fired Power Plants

The latest report on the reputational and financial risks of coal just released by RAN and Sierra Club omits USB, but ranks large banks as follows:




Mountaintop Removal Grade Coal Fired Power Plant Grade
Bank of America C- D
Citi C- D
GE Capital D D
Goldman Sachs F D (Cogentrix) / F (Other)
JP Morgan Chase D+ D
Morgan Stanley C- D
PNC C- F
Wells Fargo D D

EPA Has Failed to Protect Public

 April 4, more than three years after the TVA ash spill,   EJ, filed  against the EPA on behalf of 11 environmental and public health groups  (Appalachian Voices, Chesapeake Climate Action  Network, Environmental Integrity Project)  "to undertake long overdue action to address the serious and widespread risks that unsafe disposal of coal combustion waste or "coal ash" poses to human health and the environment."

Some in Congress Would Like to Prevent the EPA from Protecting Public Health

Meanwhile, David McKinley’s (R-WV)  successfully attached a clause to the House transportation bill which would bar the EPA from setting enforceable safeguards for toxic coal ash.  It's another case of  favoring  power plants and other big polluters.  Supporters for the amendment included US Chamber of Commerce, the American Coal Council, the United Mine Workers, utility companies like Duke Energy, and the American Road & Transportation Builders Association. Transportation Secretary Ray  LaHood--a Republican member of the House before he was appointed by Obama in 2009-- called the bill, H.R. 4348, a "big Christmas tree..."Look what they've loaded it up with... Keystone, coal ash — none of it has anything to do with transportation."


Currently industry dumps toxic waste into unlined and unmonitored ponds and landfills that can poison our waters and our health.   EJ states that "At least 185 coal ash dump sites have contaminated water supplies, and the U.S. Environmental Protection Agency admits that 54 dumps, a major spill will likely cause loss of human life."  [504  was a typo according to EJ's Lisa Evans].

In fact in nearby Giles County, the ash the unlined ash dump is on the banks of the scenic New River upstream from public drinking  and the Concerned Citizens of Giles County are in the process of suing the developer Giles Partnership for Excellence.

May Day is the Time for the Public to Take a Stand

In this this of increasing partisan divide and economic disparity, maybe it's time to return to both of the latter meanings. As Nancy L. Mancias, co-founder of Code Pink wrote on April 26, "Many people have suffered and died over the past decade of economic injustice and wars. Let's remember the words of labor organizer Mary 'Mother' Jones, who lived in Chicago in 1886: "Pray for the dead, and work like hell for the living!'"


12/8/10

The foreclosure crisis won't go away easily




Photo of Mike Hudson, author of The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America – and Spawned a Global Crisis. This piece was commissioned the Guardian, which published it today as, "Let's not foreclose on financial reform:  The modest Dodd-Frank Act is under threat, yet the foreclosure crisis shows the dire risks of an unfettered mortgage industry."  I've only made minor changes and kept the British spelling.


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This past week saw much coverage of the 1 December loan disclosures from the Federal Reserve, as required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.  The act--so named because it was sponsored by Representative Barney Frank (Democrat, Massachusetts) and shepherded by Senator Chris Dodd (Democrat, Connecticut)--was signed into law on 21 July by President Obama, as a legislative response to the last two years' economic meltdown engendered by the sub-prime mortgage debacle.

Less reported was the 1 December hearing Dodd held on mortgage servicing – the latest place where fraud has surfaced. Servicers, now regulated under the Dodd-Frank Act, calculate principal and interest, collect payments from the mortgagor, act as an escrow agent and foreclose in the event of default.

This makes servicers pertinent, as the US finds itself in the middle of a  foreclosure crisis that isn't going away. According to an interview with law professor Kurt Eggert, who testified at the hearing, the problem is that:
No one agency has been given the job of regulating servicers, and so any oversight has been piecemeal and haphazard. And the regulators often have been worried more about the soundness of banks than the protection of borrowers.
This has resulted in folks losing their homes, because, consumer advocates say, it's more profitable to foreclose than to make the mortgage adjustments once promised by Obama.

Many initial loans, however, were fraudulent. For instance, just recently, on 3 December, SunTrust's Alexandro Aquinta pled guilty to:
transactions in which straw buyers and unqualified buyers obtained over $4m in … loan proceeds … [from] applications [which] contained materially false, fraudulent and misleading information … regarding applicants' employment, income and assets.
But worse, to my mind, are the falsified documents filed by attorneys in so-called "rocket-docket" courts. The resulting foreclosures severely stress families who lose their homes, as well as neighbours who see their property values decline.

To understand how we got to this state, I interviewed Mike Hudson, one of the first investigative journalists to link predatory lending to the economic meltdown and author of The Monster: How a Gang of Predatory Lenders and Wall Street Bankers Fleeced America – and Spawned a Global Crisis.

According to Hudson, fraud in the banking and mortgage industries dates back to the 1980s. The sub-prime crisis was long in the making and was facilitated by government through bad policy and lax enforcement. Its origins lay in
[A] philosophy of trusting financial players to police themselves. A lack of cops on the street, as it were, allowed fraud to flourish [with] faked paperwork and other ugly practices [in] the origination of loans – and, now, similarly dicey practices in the foreclosure process.
This lack of regulation was a bipartisan business:
The philosophy started getting traction in the Carter administration, gained even more steam in the Reagan years, continue apace under Clinton and saw its full flowering during the Bush Administration. One influential figure who was there through the Reagan-Bush I-Clinton-Bush II years was Alan Greenspan. Remember he was considered to be 'the maestro', a guy who could see around corners and could guide us to unprecedented prosperity.
The meltdown will continue as long as the bad policy and lax enforcement do. The growing foreclosure crisis is just the latest chapter:
The business model for loan servicers ensures that questionable foreclosures will continue to flood the system. With Republicans' Congressional victories, [Dodd-Frank's] financial reform is in danger. If you think the legislative battle was tough, wait until you see the bareknuckled lobbying and backroom armtwisting that are going to emerge as the new Consumer Financial Protection Bureau gets under way.
As far as the Dodd-Frank Act goes, Hudson says that the best hope lies in Elizabeth Warren's push to simplify mortgage paperwork, as a measure that could command bipartisan support. But I have my doubts about whether Warren will succeed.  Republican Senate leader Mitch McConnell's continued stated primary goal is to block all of Obama's initiatives to render him a one-term president. There's already efforts afoot to weaken the law. And the  financial industry and banking industries and their water-carriers in Congress opposed Warren's appointment to head Dodd-Frank's Consumer Financial Protection Bureau; Obama tapped her only as a special adviser to set up the Bureau. And there are other troubling developments including the Fed's recent move to strip a key protection for homeowners under the guise of reform.

The 1 December hearing was the last Dodd will chair for the Senate committee on banking, housing and urban affairs. He decided not to run for re-election after disclosures about his own sweetheart mortgage deal with the predatory Countrywide. In line for the chairmanship is Tim Johnson (Democrat, South Dakota), who has a record of supporting small predatory loan companies (pay-day lending) and fighting credit card reform. 

Some argue that the financial trauma brought on by sub-prime mortgages was an unavoidable market accident: Federal Reserve chairman Alan Greenspan called it a "once-in-a-century credit tsunami". Some hold that borrowers were to blame – folks took out variable rate mortgages for homes they couldn't afford, betting already-inflated prices would continue to rise, so increasing their equity faster than their ballooning payments.

Others disparage government, either for its lack of regulation or for overselling the dream of home ownership. They argue that the buyers should beware, that corporations and politicians will always be complicit. 

I disagree.  I join Hudson in hoping that an informed public can stimulate reform:
The foreclosure crisis is a serious issue; it's more than a series of paperwork snafus. The powers that be in Washington failed to get the facts and act the first time around – when lenders were engaged in a feeding frenzy of predatory lending. The foreclosure scandal is a second chance for leaders and regulators to prove that they can dig out the truth and take action.