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Banks Are Now Pleading Guilty to Crimes. So Why Aren’t They Being Punished Like Criminals?

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Attorney General Loretta Lynch speaks during her swearing-in ceremony at the Justice Department. (Freddie Allen/NNPA News Wire)

Attorney General Loretta Lynch speaks during her swearing-in ceremony at the Justice Department. (Freddie Allen/NNPA News Wire)

 

(Slate) – Not so long ago, federal prosecutors were simply terrified by the idea of what might happen if they ever brought criminal charges against a major bank. They worried that the consequences of a felony conviction might cause a large financial institution to collapse and wreak havoc on Wall Street, much as the accounting firm Arthur Andersen went bust after it was convicted for its role in the Enron scandal.

So the Department of Justice and the Securities and Exchange Commission landed on a compromise. When bankers got caught doing something illegal, the government asked them to pay a hefty fine and sign a “deferred prosecution agreement,” in which they promised to mend their behavior forever more. The government lawyers got to trumpet billion-dollar penalties. The banks got to go back to their businesses without much long-term damage. For everyone else, it was pretty clear Wall Street had simply gotten “too big to jail.”

Lately, the government’s lawyers have gotten a little braver. Attorney General Loretta Lynch announced Wednesday that four of the world’s largest banks had pleaded guilty to criminal charges that their traders had conspired to fix the massive and poorly regulated foreign exchange market. Citigroup, JPMorgan Chase, Barclays, and the Royal Bank of Scotland all admitted to being felons. Meanwhile, Switzerland’s UBS, pleaded guilty to manipulating the benchmark Libor interbank lending rate. The five banks are ponying up $5.6 billion in fines.

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Activism

Oakland Post: Week of April 17 – 23, 2024

The printed Weekly Edition of the Oakland Post: Week of April 17 – 23, 2024

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Barbara Lee

Congresswoman Barbara Lee Issues Statement on Deaths of Humanitarian Aid Volunteers in Gaza 

On April 2, a day after an Israeli airstrike erroneously killed seven employees of World Central Kitchen (WCK), a humanitarian organization delivering aid in the Gaza Strip, a statement was release by Rep. Barbara Lee (D-CA-12). “This is a devastating and avoidable tragedy. My prayers go to the families and loved ones of the selfless members of the World Central Kitchen team whose lives were lost,” said Lee.

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Congresswoman Barbara Lee
Congresswoman Barbara Lee

By California Black Media

On April 2, a day after an Israeli airstrike erroneously killed seven employees of World Central Kitchen (WCK), a humanitarian organization delivering aid in the Gaza Strip, a statement was release by Rep. Barbara Lee (D-CA-12).

“This is a devastating and avoidable tragedy. My prayers go to the families and loved ones of the selfless members of the World Central Kitchen team whose lives were lost,” said Lee.

The same day, it was confirmed by the organization that the humanitarian aid volunteers were killed in a strike carried out by Israel Defense Forces (IDF). Prior to the incident, members of the team had been travelling in two armored vehicles marked with the WCF logo and they had been coordinating their movements with the IDF. The group had successfully delivered 10 tons of humanitarian food in a deconflicted zone when its convoy was struck.

“This is not only an attack against WCK. This is an attack on humanitarian organizations showing up in the direst situations where food is being used as a weapon of war. This is unforgivable,” said Erin Gore, chief executive officer of World Central Kitchen.

The seven victims included a U.S. citizen as well as others from Australia, Poland, the United Kingdom, Canada, and Palestine.

Lee has been a vocal advocate for a ceasefire in Gaza and has supported actions by President Joe Biden to airdrop humanitarian aid in the area.

“Far too many civilians have lost their lives as a result of Benjamin Netanyahu’s reprehensible military offensive. The U.S. must join with our allies and demand an immediate, permanent ceasefire – it’s long overdue,” Lee said.

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Community

Financial Assistance Bill for Descendants of Enslaved Persons to Help Them Purchase, Own, or Maintain a Home

California Legislative Black Caucus (CLBC) vice chair Sen. Steven Bradford (D-Inglewood) introduced new legislation related to reparations to the Senate Committee on Housing on April 2 in Sacramento. Senate Bill (SB) 1007, “establishes the Homeowner’s Assistance for Descendants of Enslaved Persons Program to make financial aid or assistance available to descendants for the purposes of purchasing, owning, or maintaining a home,” the legislation states.

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Sen. Steven Bradford (D-Inglewood). Photo Courtesy of L.A. Sentinel
Sen. Steven Bradford (D-Inglewood). Photo Courtesy of L.A. Sentinel

California Legislative Black Caucus (CLBC) vice chair Sen. Steven Bradford (D-Inglewood) introduced new legislation related to reparations to the Senate Committee on Housing on April 2 in Sacramento.

Senate Bill (SB) 1007, “establishes the Homeowner’s Assistance for Descendants of Enslaved Persons Program to make financial aid or assistance available to descendants for the purposes of purchasing, owning, or maintaining a home,” the legislation states.

The Senate Housing Committee advanced the bill with an 8-1 vote. It will be re-referred to the Appropriations Committee for consideration.

Sen. Kelly Seyarto (R-Murrieta) was the only member who voted against the bill.

“SB 1007 is about starting a long process of paying back a debt that is not only owed, but that was also promised, and is 160 years overdue, to African Americans,” Bradford told the committee chaired by Sen. Nancy Skinner (D-Berkeley). “It is the first step in closing the wealth and equity gap created by centuries of slavery and racial discrimination policies.”

The bill aligns with one of the 115 recommendations listed in a two-year study conducted by the California reparations task force, of which Bradford was one of nine members.

Bradford said the report reveals that, in the state of California, a typical Black-owned home is 22% less valuable than a White-owned home.

Various advocacy groups from around the state attended the hearing held at the State Capitol Annex Swing Space. The California Housing Partnership, Bay Area Regional Health and Inequities Initiative, Coalition for A Just and Equitable California, Disability Rights of California, the American Civil Liberties Union of California, and California Community Builders all voiced their support of the bill.

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