Hillary Clinton Suggested Breaking Up the Big Banks Won’t End Racism and Sexism. Is She Right?

[eridani]

http://inthesetimes.com/article/18962/break-up-banks-end-racism-and-sexism

At some point between the financial crisis of 2008 and the rise of Occupy in 2011, Americans began to understand that predatory lending was the cornerstone of modern finance. Usurious interest rates, extortionate fees and vicious cycles of ever-inflating indebtedness were a phenomenon that united black retirees in Detroit with Mexican day laborers in Hollister, Calif.; underemployed Vassar grads with underemployed University of Phoenix grads; the evaporating coffers of Jefferson County, Ala., and Harvard’s $36 billion endowment. The mechanics and fine print might differ case to case, but the business model was identical, needing two critical ingredients to thrive: a culture efficient at dehumanizing victims, and legal impunity.

First, at Washington Mutual—picked off for pennies on the dollar in 2008 by TBTF bank JPMorgan—subprime mortgage salesmen who didn’t sell enough predatory negative-amortization mortgages were assigned “trainers” whose first words were, “Do not feel sorry for ‘these’ people.” At Wells Fargo, where mortgage executives called minorities “mud people” and “niggers,” salesmen were directed to solicit new customers at African-American churches. Sexual harassment was indisputably rampant in the industry. “Mortgage sluts” peopled a 2008 Business Week cover story. Is there a more vivid embodiment of rape culture than the photos of the 2010 Halloween party held by staffers of the Steven J. Baum foreclosure mill?

Second, no major financial institution is as singly responsible for the “mainstreaming” of predatory lending as Citigroup. No other institution has employed as many veterans of the Clinton administration. Merely listing the relevant names could fill the better part of a book, but here are three: Peter Orszag, Jack Lew and Michael Froman. By 2007, Citi’s balance sheet was the biggest on Wall Street—when you included all its off-the-books assets, in any case—and in 2008 Citi became the recipient of the single biggest bailout.

If any corporate monstrosity was worthy of a breakup, it was Citi. Celebrated analyst Meredith Whitney said so, FDIC chairman Sheila Bair said so, TARP overseer Elizabeth Warren said so and former Citi exec Sallie Krawcheck said as much after she was fired by (serial sex-discrimination lawsuit defendant) Vikram Pandit.

[JustAnotherGen]

1. She's correct

It won't stop someone from not hiring an Asian woman with a plumbing certification and license because of her race and gender. Prejudice and bigotry is being reflected in the Trump base and a lot of those people are not in the banking industry.

The banks worked within the red line framework inflicted on black Americans by FDR's New Deal. I'm not holding anyone accountable for something that "officially ended" in 1968. That's around the time George Romney got fired for pointing out we had a serious problem.

This is why so many awoke black Americans see Red when people flippantly state - Lets bring back The New Deal.

Wait a second buddy boy - I'm not paying a thin red cent until I can see what harm you intend to inflict on me with a wink and a smile.

[eridani]

2. Did you notice the Wells FArgo execs attitude toward minorities in the OP?

Think that behavior had nothing to do with the banking crisis?

[JustAnotherGen]

3. Yes - I did

Why are you shocked that they are racists?

This isn't new.

It's called being black in America and we are well aware that this shit has been going on. This wasn't a ground breaking expose.

As heaven05 writes - . Amerikkka.

[Skwmom]

5. But it's okay. Good Old Boy Warren Buffet who was proud of the way Wells Fargo

conducted business and loves Wells Fargo and, who has a company that engages in predatory mobile home sales thinks that billionaires should pay more taxes and he supports Hillary.

What a guy....

[Skwmom]

4. That Citigroup employed more Clinton Admin veterans says it all. The gift that keeps on giving.n/t

[Vinca]

6. They're 2 different issues. In any case, nothing the government can do will truly end either racism

or sexism. It's something in the heart and mind, not the bills in Congress.

[Bad Thoughts]

7. Debt disempowers, allowing racism to be perpetuated

Yes, restructuring banking in the US wont end racism. However, what has recently made it pernicious is that debt, as a necessary element of education and home and auto ownership, has become a stranglehold on Americans, affecting minorities most of all. Indeed, home ownership are paying property taxes are elevated by some to be the hallmarks of good citizenship, and their are rights and privilege some enjoy over others. How are minorities expected to deal with racism when their hold of property can be tenuous.

[NCTraveler]

8. Yes, she is.

It wouldn't take care of income inequality either. I would need to see a better argument of why she is wrong considering the way the question was posed.

[Fuddnik]

9. Actually, according to the book "Confidence Men", by Ron Suskind. Obama ordered it.

He told Timmeh Geithner to come up with a plan for a break-up of Citi.

Several months later, at a meeting of his economic team (Timmeh didn't attend), he asked how the plan was coming along. Christina Romer replied, "Mr. President, there is no plan". An angered Obama thundered, "Well, there damn well better be!".

After the meeting Rahm Emmanuell reamed Romer a new asshole for attacking poor Timmeh, when he wasn't there to defend himself. The matter was never brought up again.

Timmeh just slow walked it until it faded from memory.

[Bluenorthwest]

10. The cancer patient's chemo will do nothing for my flu but I think they should do the chemo anyway.

Don't you?

[beedle]

11. Institutional racisms and sexism is called 'institutional' for a reason

[Doctor_J]

12. Curbing global warming also won't end racism and sexism. Neither will a living wage

Does that mean we shouldn't curb global warming or raise the minimum wage?

She is heading into Palin territory with her word salads. It seems that she, like her campaign, is coming unglued

[BillZBubb]

13. Of course she's right, but it is a nonsense premise to begin with.

It is almost a strawman. So easy to shoot down and allowing one to deflect from the screaming need to break them up for sound economic and fairness reasons.

[marew]

15. Exactly! Just shows how Hillary does not understand this at all!

As you so rightly said, it is about "sound economic and fairness reasons." She's had some pretty bad mistakes over the past several days. Does she have severe comprehension issues or what?

[Enrique]

14. how did I miss that quote

it sums up in a nutshell how Hillary is using racism and sexism in this campaign.

[marew]

16. Illustrates she has significantly limited understanding and confusion regarding the issues.

Or perhaps this absurd deflected reason is intentional. Either is bad.

So she is against break up big bank after all! What a surprise- NOT!

[Kalidurga]

17. Is she on stupid pills?

Or does she think we are? Yes, breaking up the big banks actually will help combat racism and sexism. It won't end it of course. But, here is how money in this country works. When you have a lot of wealth it is created by people who work for you. Now maybe you are a good person and you pay your workers well and they are happy for the most part. And further work hard to create a safe environment for all of your workers, good this is the minimum standard all employers should follow and I would say you aren't exploiting your workers. Unfortunately what has been happening since the beginning of capitalism is some workers are used and abused starting with being paid low wages and in addition to that employers are free to withhold promotions and raises it is not an accident that minorities and women are the most effected by this. So, yes ending some institutions the ability to make obscene amounts of money and stop them from being able to exploit people yes, it is one of many measures that will combat racism and sexism. And this is one institution that needs to be taken to task for their exploitation of the most vulnerable members of our society.

[amborin]

18. she's doing this:

http://www.democraticunderground.com/12511403635

[MisterP]

19. yes, because one of the biggest obstacles to racial advancement hasn't been

redlining by the banks

race isn't an issue for her, it's an electoral opportunity