I'm a One Percenter Who's Pre-Occupied with Wall Street

I confess I'm a one percenter.

I guess I'm one of the folks that the people down on Wall Street are pointing their fingers at. I don't blame them, I'm upset too.

That said, none of us --- neither the one percenters nor the 99 percenters --- can either ignore or deny the ripple of unrest disturbing the calm of America's social waters in the form of the Occupy Wall Street movement, which has spread in the course of the last month to hundreds of communities in the United States, and many others around the world.

The first occupation in a New York park in September started slowly, but has been gaining momentum (and a great deal of worldwide media coverage) over the past few weeks, coinciding with corporate earnings announcements and the inevitable weighing in from Washington and various and sundry political contenders and pretenders. Then it seemed to boil over when --- adding insult to injury --- the mega-banks announced a barrage of new fees, in particular those imposed in response to the new Federal Reserve regulation effective October 21^st which halves debit card swipe fees, and most particularly the new usage fee coming to millions of Bank of America debit card holders this January.

So, could a five dollar a month fee fan the flames of a movement as broad and as fervent as Occupy Wall Street? It certainly played a part, but let's consider a more complete narrative with regard to both BofA and the financial crisis in general.

You Mad?

The protesters around the country are riled up about a variety of things, sometimes in a quite disjointed and confusing way. It's also true that the movement has had many causes. Consider some recent political pandering.

This week Mitt Romney told a Las Vegas newspaper that we should allow the foreclosure juggernaut to "run its course and hit the bottom," arguably without much regard for those who'd get flattened in the process. John McCain and Mitch McConnell spent more time on the US Senate floor attacking the President for the type of bus he is using on his national tour drumming up support for his jobs proposal than trying to find solutions that put people back to work. Rumors are swirling that House Majority Leader Eric Cantor is preparing to deliver a speech on Friday to discuss how to "make sure the people at the top stay there." None of this really addresses the root causes of the Great Recession, or of the popular discontent that we are seeing now.

The unchecked greed which led to the meltdown, the foreclosure crisis, the stark and growing income disparity between the rich and everyone else, years of government gridlock and a host of other social and economic problems have had some role in fomenting what appears to be a durable and growing mood of unrest. Even the largest wildfire usually starts with a small spark or a single match, and I think it fair to say that the spark in this case may well have been the behavior (and hubris) of the big banks.

Putting the Bank of America Announcement into Context

The new fees were part of a series of events that led the average consumer to see the debit card fee increase as an affront; a slap in the face, and perhaps the straw that broke the camels' back. First, in late 2008, BofA teeters on the edge but is bailed out by the taxpayers in the form of largess from the Fed. Then, it's effectively bailed out again by Warren Buffett, who invested $5 billion in the bank in August. Then, after getting past the technical difficulties of the process, it begins aggressively foreclosing on homes all over the country. Then --- the icing on the cake --- in the first week of October, the bank discloses it voluntarily paid a total of $11 million as part of a separation agreement to Sallie Krawcheck and Joe Price, two executives thrown out by dint of a management restructuring, even as the company says it will begin firing as many as 30,000 employees over the next several years.

For those who doubt that there was genuine fury and furor among consumers that came to a head with the announcement of the new five dollar fee, I give you Ms. Molly Katchpole, the BofA customer who launched an online petition within a few days of the bank's late September announcement, that asked the bank to reverse its decision. "Tell Bank of America: No $5 Debit Card Fees" was signed by over 150,000 angry people within a week of its first posting. I'm not sure I can remember any petition that garnered so many signatures in such a short period of time. I would say that's a pretty viral exclamation point!

It's Time for an Attitude Adjustment

It's not just the lousy five bucks. It's the "Thank you, Screw You" attitude that's really lighting up the nation. Americans who are graduating from college without job prospects and with huge loans to pay, as well as those who are losing their jobs and their homes in unprecedented numbers, are feeling that the banks that did them in were bailed out on the backs of the 99%. They all also know that the fat cats who were in charge of this mess keep getting fatter. They are still making big salaries and big bonuses. Even as bank profits (billions though they may be) have slipped, the amount of money they pay out to employees - the bonus pool - has not dropped at a commensurate rate. And some banks, notably the one that has just instituted a certain $5 debit card fee, are actually spending more on their employees. Paul R. La Monica, of CNNMoney, writes, "BofA posted a 22% year-over-year drop in revenue for the first three quarters of 2011. Despite that, the bank said that 'personnel' expenses were up 7%. And this is from a bank that recently announced plans to cut 30,000 jobs!"

I may be a one percenter but I'm not a mega-banker. If my business fails, I will lose a great deal of money. Indeed, I may even get wiped out. But I don't wreck the economy, there's no taxpayer largesse to bail me out and I definitely don't get a fat bonus.

But let's not get sidetracked. This column is ultimately not about whether or not the Occupy Wall Street movement is correct or justified. It's not even about the actions taken by Bank of America or any of the other big banks that I believe have contributed mightily to a very real and developing protest movement. I'm not here to pass judgment.

Rather, I'm simply pointing out that given our country's recent economic history, movements like Occupy Wall Street --- and the Tea Party for that matter --- are inevitable. These collectives are hard to pin down on the issues because they are more a reflection of popular discontent with an overall system, rather than a focused campaign in favor or against a particular policy.

Stephen Stills was right: There's something happening here, what it is ain't exactly clear. And if banks and the government don't wake up to that fact, and truly acknowledge and respond to the real anger that has been created among the general populace of this country, we are only seeing the dust cloud that precedes the oncoming storm.

This article originally appeared on Credit.com.

 

 

 

Follow Adam Levin on Twitter: www.twitter.com/@Adam_K_Levin

Comments

[Sue McFarland]

12:56 PM on 10/22/2011

I have reluctantly decided Dylan Ratigan is onto something. I come screaming and ranting and raving to that position. The 1% absolutely doesn't get it--they should all go back and read their social and economic histories of the 1920s--as we all should, by the way.

Go to "GetTheMoneyOut.com" (I think that's the web cite; if not, just google the same thing, should come up immediately--and sign that petition. If Dylan can get over a million signature, I would think SOMEBODY in Washington would start paying attention. (And, oh yeah: cheer on Senator Bernie Sanders of Vermont who's been for "the little people" all along. And Alabaman: it would help to vote your senior senator out, too!)

[freedomny]

08:35 PM on 10/22/2011

Thanks Sue for signing Dylan's petition.

I think alot of Americans are nervous about the future. But we all need to get engaged. I know I'm scared and I have a great job.

We need our elected representatives to represent OUR voices... and not corporations.

Best to you Sue.

I am a banker and I support OWS and ethical capitalism.

[iridium53]

07:03 PM on 10/21/2011

power to the people

http://www.youtube.com/watch?v=Wos-dDxpJlQ

[CSDofNM]

04:00 PM on 10/21/2011

Thank you, Mr. Levin, for your insightful post.

I must urge you to go to OWS and lend the truth written on your heart to the consensus at the general Assembly. We need people from all walks of life, all perspectives, to share their truth and listen to the truth of others. Speak. Listen. Hear. Share. Do what is right for the spirit of our country.

Thank you for being a good and honorable man.

[trusk]

03:47 PM on 10/21/2011

I am a 99%er who thinks the OWS movement is a waste of time and energy. A perfect example of misguided and misdirected energies. I dislike Bank of America, a lot. However, I place the blame for the fee on our government. If they had not cut swipe fees through regulation the bank would not have started charging the fee. I am tired of politicians trying to fix things they do not understand and causing negative effects for the rest of us, then blaming the effects on others....like the evil, greedy corporations. There is nothing evil or illegal with maximizing profits. Don't like a company? Don't do business with them.

[CSDofNM]

04:03 PM on 10/21/2011

But when that business commits fraud? And destroys an entire industry? Fraud in packaging mortgages as securities, then not transferring the title with the security. Fraud in creating robo signed titles. Fraud in foreclosing on properties they didn't own. Fraud in filing robo signed titles with courts.

http://4cl­osurefraud­.org/2011/­04/24/robo­-signed-27­-job-title­s-for-bria­n-burnett-­of-indymac­/

http://www­.cbsnews.c­om/stories­/2011/07/1­8/national­/main20080­533.shtml

http://www­.toledobla­de.com/Rea­l-Estate/2­011/07/31/­Robo-signi­ng-lingers­-in-mortga­ge-industr­y.html

http://www­.foreclosu­reself-def­ense.com/2­011/02/rob­o-signer/

http://www­.tampabay.­com/news/b­usiness/ba­nking/know­n-florida-­robo-signi­ng-names-t­urn-up-on-­mortgage-d­ocuments-e­lsewhere/1­181163

http://ame­ricasoneti­tle.com/go­ldman-sach­s-withdraw­ing-robo-s­igned-mort­gage-forec­losures/

http://www­.huffingto­npost.com/­2011/09/01­/robo-sign­ing-practi­ces-1990s_­n_945867.h­tml

There is something evil about fraud.

[Dosadi]

09:26 PM on 10/21/2011

So if I lose my job and start a life of crime I can blame my old employer for FORCING me to do it?

"Don't like a company? Don't do business with them."

Now you've gone over board. What if that company controls your necessities like food or warmth? Who are you to turn to if you don't like your electric company?  Who do you turn to if you need emergency care? There is no market where you can get less expensive health care. the market is controlled and manipulated. You want a cheaper policy? You can get it but if you get sick it will cover almost nothing.

You bring new light to the term insanity.

[Rockyman]

03:42 PM on 10/21/2011

I'll gladly pass some judgement here! The banks created lots of "products" that allowed for naive and unsuspecting borrowers to try to get a slice of the american dream. Optimism met unreasonable leverage and the party was on. The "fiction" of rising home-values was ignored by all those gaming the system. And it was clear the party wasn't sustainable based on historic ratios of incomes/mortgage obligations. The banks bundled much of these risky loans to be rid of downturn vulnerability and some eventually came to the gov't needing bailing out. And the public's money did and the masses now live in homes worth much less than previously. The banksters continue with heads-held-high washing their greedy hands of any responsibility. And the gov't is complicit and unwilling to regulate or punish commensurate with the crimes commited. Yea, the anger is clearly justified!

[Gestas]

03:09 PM on 10/21/2011

99% of the people that vote for Republicans,,,Can't afford to be Republicans...

[calm truth]

03:25 PM on 10/21/2011

So true. I am constantly amazed at the power of their propaganda to get people to vote against their own interests.

[trusk]

03:41 PM on 10/21/2011

voting republican is in the best interest of anyone not living off the government

[hellothereandhere]

02:43 PM on 10/21/2011

In the long term, the people united in the US have a much better chance of survival than some dispersed corporations united from different nations, operating in horrific environment. So that should set the course of working together inside the country.

[Carl Caroli]

02:10 PM on 10/21/2011

Well said. You get it. Why doesn't the Washington or Wall St.?

[calm truth]

03:40 PM on 10/21/2011

Because they get paid not to.

[Jeffrey Alan Payne]

02:09 PM on 10/21/2011

In the midst of the “Occupy” economic protests sweeping the planet, a close colleague of mine shared a private saga. His story personifies the principles that are driving the spirit of the “Occupy” demonstrations. He allowed me to publish it:

“A few years ago, I deposited cash into an ATM......

http://www.jeffreyalanpayne.com/?p=416

[momlawyer1]

02:00 PM on 10/21/2011

I am not even a BOFA customer, and I still felt the "thank you, screw you" from that one. Exactly put.

[Christmas Tree]

01:59 PM on 10/21/2011

The oncoming storm? Is the Doctor coming? He is your last chance to repent! Regenerate, Wall Street, before it is too late!

[Paperless Tiger]

01:53 PM on 10/21/2011

America has long been blessed with mostly political solutions to the age old problem of wealth disparity, which is currently reaching critical mass. Why let a potentially dangerous situation fester? We can do better that this.

[Ulalume s Ague]

02:13 PM on 10/21/2011

"Why let a potentially dangerous situation fester?" You obviosuly have no understanding of American history. Not once has there been a corrective action regarding wealth disparity without kicking some butt. The unions would never have existed (meaning that we would all be working seven days a week, 12 hours a day alongside children and mamed co-workers) without strong and decisive action from the people. For the record, the middle class has been redistributing to the wealthiest for three decades now, so there is no recent political solution to the current problem of wealth disparity, let alone to the age-old one. You live a very naive sort of life in dreamy comfort if you believe that the wealthiest are willing and ready to sit down and offer us political solutions to their exponentially expanding power and wealth.

[demisfine]

01:50 PM on 10/21/2011

OWS is about drawing attention to the fact that 99% of the nation is without voice.
Our elected officials, our REPRESENTATIVE government officials, have jobs because we selected them to be our voice in congress.
That is not what is happening.
Our votes are overridden by the needs and desires of the corporations footing the bills and lobbying for their best corporate interests.
Get the money out, and recognize people, those with a pulse, as voters and corporations as the commercial units that they are.

[Werner John]

03:42 PM on 10/21/2011

I just thought of something. The chain of influence goes in a circle... Humans vote and elect politicians, who are influenced by those with megabucks, and these megabucks go toward ADVERTISING (in all its forms) in the next election, and the cycle starts over. One place the 99% can break this chain is in RESPONDING TO THE ADVERTISING. When and if the 99% starts to think for itself the chain will be broken.

[demisfine]

04:07 PM on 10/21/2011

Your logic would be perfect if in fact our votes really did count toward the total and the valid election outcome.
Unfortunately, the GOP is buying up that detail of our democracy, too.
Voter registration laws in states with GOP governors or legislatures are being re-written to disenfranchise and dilute the poor, elderly and student votes.
Disproportionately decreasing the democrats in any district effected.

[trusk]

03:49 PM on 10/21/2011

so let's start with voting out the man that received the most Wall St money and has surrounded himself with Wall st insiders, President Obama.

[CSDofNM]

04:09 PM on 10/21/2011

You are somewhat out of date. That person is Mitt Romney.

http://www.usatoday.com/money/markets/story/2011-10-17/cnbc-wall-street-donations-romney-obama/50806656/1
"Wall Street donates twice as much to Romney as Obama"

Care to revise your statement?

[demisfine]

04:10 PM on 10/21/2011

Your logic is flawed, because of all the possible targets, the only one honestly working to get anything done for the 99% is President Obama.
Those guilty of not representing their constituents are the entire republican caucus in the senate who just voted against doing what 63% of republican voters wanted - to pass the jobs bill.
That's how logic works.

[DSciarrino]

01:25 PM on 10/21/2011

All true and all reasonable. But we cannot allow banks and the government come up with the solutions. Anything they come up with will surely be to the advantage of both the banks and the Congress / Senate. We the 99% need to develop a few ideas right now and demand those as a starting place. A place to start is this (and these ideas are already out there)

1) Re-impose Glass Steagal. Bust up the commercial banks from the investment banks. There is no reason not to do this.
2) Add a millionaire's tax and put the money toward direct infrastructure jobs.
3) Beef up the SEC to regulate derivatives.

There are a whole host of things that can and should be done, but lets just start here and see how it goes. In the 60's the call was pretty simple; "Stop the war!" and "Civil rights for all!". We need to do this again.

[koos458]

01:16 PM on 10/21/2011

"To serve you better, we are now charging you more."