@ItsLisaRice opens: "There are over 4 million instances of housing discrimination that occur each year"
Richard Rothstein of @NAACP_LDF explains how the racial wealth gap is built on and exacerbated by yesteryears's racist policies based on exclusion in housing
@SherrodBrown to Richard Rothstein "for those who might be skeptical, explain why the government has an obligation to remedy the harmful discrimination that it perpetuated"
@ChrisVanHollen asks Dr. Jason Reece to comment on why mobility vouchers are important
@ItsLisaRice explains in response to @TinaSmithMN that the government can help eliminate exclusionary zoning ordinances by applying the AFFH mandate not just to housing but also to community development
Asked by @MarkWarner if home mortgage loans targeted to first-generation homebuyers would promote equity across race lines, @ItsLisaRice gives a simple answer: yes #FairHousingMonth
@SenCortezMasto asks about the roles states and cities have in promoting fair housing in their communities
@ItsLisaRice gives a chilling example of the kinds of hurdles local communities will have to overcome to achieve equity.
When some small business owner suggests higher bank capital rules will reduce access to credit BEWARE: it may just be @GoldmanSachs astroturfing 🧵1/10
Goldman cooked up a PR initiative, “10,000 Small Businesses” to lobby the government. And right now, those businesses are fronting for Goldman’s opposition to higher bank capital levels, which help cushion against shocks and avoid financial crises 2/10 goldmansachs.com/citizenship/10…
The public dislikes #WallStreet (see this poll) so much that Goldman and other big banks often do their lobbying by hiding behind other entities 3/10 ourfinancialsecurity.org/2020/09/voters…
“[T]he explicit guarantee extended to the globally systemic banks is now extended to everyone,” said Renita Marcellin (@aphisha28)of @realBankRefrom. “We have this implicit guarantee for everyone, but not the rules and regulations that should be paired with [them].” 2/14
What do we need? How about a stable banking system, “essential services—such as deposits, money transfers, and credit—on a universal basis,” and “a strong role for regulatory agencies that protect consumers from abusive practices.” 3/14
GREAT SCOOPS: Last weekend, Federal Reserve Chair Powell sought to DOWNPLAY role of failed regulation/supervision -- partly by the Fed! -- in collapse of #SiliconValleyBank
"the Biden administration pushed to formally spotlight shortcomings in financial regulation that they blamed for the banks’ rapid descent to insolvency." But Powell "blocked efforts to include a phrase mentioning regulatory failures" 2/12 nytimes.com/2023/03/16/bus…
As @ddayen points out, that statement was pretty anodyne, and included praise for (unnamed) Dodd-Frank law of 2010 but no mention of the 2018 partial rollback that eased oversight of SVB 3/12 federalreserve.gov/newsevents/pre…
Thanks to the #BankLobbyistAct back in 2019, and the Trump-era Fed's further deregulation, the Fed took its eyes off large banks like SVB. AFR fought against that tooth and nail. 2/6
The government moved decisively to avoid a panic by guaranteeing deposits. Banks that benefit from that now need tougher supervision. AFR's Renita Marcellin told the NYT ... 3/6
The collapse of Silicon Valley Bank and Signature Bank have something in common: they both benefited from deregulation under the #BankLobbyistAct in 2018 1/5
Congress passed the law but the Trump-era regulators pushed it even further, giving authorities less oversight of these large-ish banks. Now we need action to reverse those changes and make others 2/5 ourfinancialsecurity.org/2023/03/news-r…
The subprime corporate credit market, which includes private equity’s fave, leveraged lending and CLOs, has hit $5 trillion in the US.
This problem portends bring slower growth, job losses, and possibly instability in parts of the financial sector.
🧵1/10
This lending seldom goes to productive uses, relies on sketchy accounting, and is often very opaque.
It's often to finance private equity buyouts refinance existing debt, or suck cash out of companies.
And it supports monopoly power, by driving corporate consolidation. 2/10
The odds of a 2008-style crisis are low but the risks of damage are high.
This debt has – a redistribution of money towards Wall Street – has left companies and workers in a worse position to handle a slowing U.S. economy. 3/10