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Joseph A. Palermo

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The Big Banks Lose Control of the Optics

Posted: 10/06/11 04:53 PM ET

The mainstream press has been predictably abysmal in its coverage of the Occupy Wall Street protests. Andrew Ross Sorkin, one of the "money honeys" over at the New York Times, looks at the demonstrators as anthropological curiosities, as if they're from a remote tribe in Papua New Guinea. The Times' Ginia Bellafante calls the protesters "ideologically vague and strategically baffling," who are doomed to failure even though they've received the blessing of what she calls "the left's ruling class," (Michael Moore, Naomi Klein, and Susan Sarandon). Who would have known the "left" has a "ruling class?"

The only reason the press covered Officer Anthony Bologna's pepper spraying of those non-resisting young women was because it was caught on video. Even the liberal Nicholas Kristof displays his lack of insight when he offered the group his unsolicited advice for a demand: "Close the Carried Interest and Founders' Stock Loopholes!" (I'm sure down at Zuccotti Park right now people are writing that on placards.)

There are precious few voices in the news media suggesting breaking up the big banks through anti-trust enforcement, slapping windfall profits taxes on them, or dusting off the RICO (Racketeer Influenced and Corrupt Organizations Act) statute to put some of the perps behind bars.

Still, the optics are pretty bad for the big banks.

If JPMorgan Chase and the rest of the money cartel cared one whit about people perceiving them as being slightly more tolerable corporate citizens, they would have long ago voluntarily offered a lifeline to underwater mortgage holders and to local governments. Yet their campaign donations, lobbying activities, and predatory practices in abusing their "customers" (like Bank of America's recent fee hike or Jamie Dimon's big donation to the New York Police Department) show that these behemoths have no intention of reforming themselves. Instead, they intend to continue to give the country the shaft thinking themselves immune to the public's wrath by virtue of the immense piles of money they control -- which is precisely the problem, isn't it?

What those corporations on Wall Street and their enablers in Washington did to the country was unconscionable. Now New York Mayor Michael Bloomberg is putting out the tired line that bosses always use to divide workers whenever strike actions are called: "It's such an inconvenience to the little people! Those unions should be ashamed of themselves!" Bloomberg is just reminding us that he's just another billionaire whose setting up the PR discourse for an act of repression against the protesters.

The pressure from those "rudderless" protesters on Wall Street, sometimes called "spoiled brats," helped strengthen the spines of New York Attorney General Eric Schneiderman and California Attorney General Kamala Harris to push back against the Obama Administration's efforts to cut a sweetheart deal with the banks. Schneiderman and Harris stopped attorneys general from little states, like Iowa's Tom Miller and others, from being accomplices in covering up the banks' multiple felonies. (Last year Harris won a squeaker of an election, which is a reminder that even in a huge state like California every single vote matters.)

Back in May 1986, the Wall Street financier, Ivan Boesky, famously told the U.C. Berkeley business school commencement: "I think greed is healthy." Eighteen months later, he was convicted for insider trading, sentenced to three years in prison, and fined $100 million. As part of Boesky's plea deal with federal prosecutors, he gave up Michael Milken as a co-conspirator. The business press naturally had fallen in love with Milken, calling him "the premier financier of his generation" (Fortune); "the chief architect of America's corporate restructuring" (Forbes); and "probably the most influential American financier since J.P. Morgan" (The Economist). Milken's creative accounting in the context of a deregulated Wall Street greased the wheels for corporate raiders to engage in a wave of leveraged buyouts (LBOs) and hostile takeovers that piled up unimaginable profits and commissions. LBOs were particularly damaging to the real economy because they entailed buying companies and then selling them for parts like a chopped stolen vehicle. The financiers made out like bandits while the workers lost their jobs and their pensions when the companies were liquidated.

Even during the height of the Reagan Revolution federal authorities used RICO, normally aimed at mafia titans, to prosecute Milken. He pleaded guilty to six felonies of conspiracy and a host of tax and mail frauds and was sentenced to ten years in prison. Although Milken served less than two years he also paid what was then the biggest single fine in American history: $900 million. Boesky and Milken became the poster boys for the shady deals and widespread "control frauds" that were taking place on Wall Street throughout the 1980s. Their criminal convictions marked an end to an era of fast money and high-stakes gambling that had put the "real" economy at risk and were a factor in the October 19, 1987 stock market crash.

If the feds under Reagan could prosecute a couple of corrupt high rollers on Wall Street, why can't they do it under Obama?

The dominant ideas of any industrial society are those of its ruling elites. Terrible ideas -- such as "trickle down" tax cuts, deeming corporations "people," or deregulating everything -- drench us like a relentless thundercloud opening over our heads. No matter how damaging these ideas are to the well-being of our society, as long as they come down from on high they'll be ventilated widely and establish the parameters of "acceptable" public discussion.

This hegemony of ideas that serve power is why even "liberal" voices inside the news media cannot comprehend what's taking place near Wall Street. The nonviolent occupiers in their tents and sleeping bags are creating a subaltern culture, a workers' culture; the culture of the other 99 percent. They don't need a 13-point plan of specific demands. (And if they had such a list they'd be denounced for being overly rigid and ideological). What they're doing is far bigger and more significant than an itemized set of grievances. If you can't figure out what they're saying then you're not really listening.

When a U.S. Senator stands up in the well of the Senate and says that the bankers "own this place," it should ring alarm bells among our political class and even pundits who claim to care so much about America. Where were the Peggy Noonans or the Thomas Friedmans or the David Brookses when Senator Dick Durbin of Illinois made that sweeping admission? They're full of advice for working people to follow, but on the Senate controlled by Wall Street and a Supreme Court that uses chicanery to turn corporations into persons, we hear not a peep from these gatekeepers.

The Occupy Wall Street demonstrators most likely at some point will be cleared out, tear-gassed, and clubbed into relinquishing their liberated territory as was the case with the Bonus Army of veterans that occupied Washington in 1932. The economic depression that started in 1929 had awakened protest movements just as our current depression has sparked the occupation of Wall Street. But even if the protest is repressed this great endeavor of building of working-class culture that represents the aspirations and interests of the other 99 percent will have taken a huge stride forward. With labor unions, students, workers, the unemployed, the elderly, mortgage holders, and veterans working together to confront the centers of ill-gotten wealth and power that have run amok on Wall Street, the wider movement representing the other 99 percent is destined to grow.

 
 
 

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HUFFPOST SUPER USER
sfdyemd
06:00 PM on 10/10/2011
Please STOP using the way-over utilized jagon term "Optics" It makes you seem pretentious and foolish. Leave the term to the physicists. Stop trying to sound more intellectual than you are.
HUFFPOST SUPER USER
Karma2U
Blessed are the Peacemakers
05:54 PM on 10/08/2011
In the 2012 election, all 99% of us real Americans, need to vote for the most pro people candidates available, and vote out the corporate puppets. Then , going forward we will need to keep getting our voices heard and look for more progressive/independents to run for office.
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Aikaterina
A Greek-American living in California
01:43 PM on 10/08/2011
The only question I have is WHY it took so long for protests to begin. Bank predatory practices began nearly a decade ago, particularly after Glass-Steagall was repealed. NINJA loans, misleading-fraudulent claims (to borrowers and investors), bribing ratings agencies to get AAA marks on funds that banks-firms hedged their bets against (knowing they were volatile and would become "toxic"), robo-signing foreclosure documents (forgery), reckless speculation with other people's money, causing millions to lose jobs, homes and life-savings (theft-larceny), then (with their colleagues entrenched within the government) extorting nearly $3-trillion from taxpayers (the government) to bail them out of the consequences of their own doing. Even the TARP was misused: posh junkets, obscene bonuses, mergers-acquisitions making "too-big-to-fail" institutions even larger, and more lobbying-lawyers to enable them to continue precisely the same without accountability-scrutiny. Now, they want blanker immunity before investigations into their practices even begin, claiming they did nothing wrong. If so, why do they seek or expect immunity?
04:21 PM on 10/10/2011
Aikaterina, I finally figured you out. Your reading my mind!!!
11:27 PM on 10/07/2011
Good Article.
A take away,
" When a U.S. Senator stands up in the well of the Senate and says that the bankers "own this place,"
07:36 PM on 10/07/2011
Republicans stay up late at night with a jar of wesson oil and a sticky copy of "The Prince.' Democrats wander the halls of power whining like Rodney King, "Can't we just all get along?" We are like so screwed.
HUFFPOST SUPER USER
blueagle8u
07:33 PM on 10/07/2011
Great post! Well said!
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HUFFPOST SUPER USER
marignymitch
E pluribus unum percent
03:25 PM on 10/07/2011
Obama sides with the banksters; that's why he won't prosecute. In addition those same banksters occupy high ranking positions within the administration.
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Aikaterina
A Greek-American living in California
01:47 PM on 10/08/2011
His biggest contributors to the 2008 campaign were banks-firms on Wall St. He doesn't want to upset them, given he's going to need their cash for 2012.
None of the GOP candidates are likely to upset or challenge them either.
Regardless of party, all politicians are owned by corporate interests, the financiers, big oil, etc., and will do anything to garner cash contributions, enjoy posh junkets and get gifts-favors from them. They'll sell their loyalties and votes to the highest bidder.
04:19 PM on 10/10/2011
Correct!! Confirmation, once again, that the suppossed "elected" officials in Washington DO NOT represent he majority of the American people.
03:06 PM on 10/07/2011
Excellent article. Thanks, Joseph Palermo.

There comes a time when the greed and excesses at the top become too brutal and too cruel to be borne any longer. They broke the rules, played fast and loose and got into trouble. We gave them OUR tax money to help them, and they are using it to club us all over the head with.

I think that's what we are seeing, and even if the OWS folks are clubbed, arrested and tear gassed, even if the crowds do disperse, it will only be a temporary setback. They (we) will be back in greater numbers, and will keep at it and keep at it until even the idiot empty-headed media has to take notice, the DOJ must finally act, and the Congress must finally accede to passing REAL reforms. It's long overdue, but it has finally reached critical mass.
02:21 PM on 10/07/2011
Wait until Greece falls and sparks another Lehman Level Event. There won't just be the hundreds of us that are down here. We will be hundreds of thousands.
02:07 PM on 10/07/2011
Why doesn't Obama prosecute? Because the checks keep clearing, my friends, the checks keep clearing.
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Estreet1964
Gimmie the beat boys and free my soul....
10:20 AM on 10/08/2011
Obama better become more concerned about the reality check of thousands of people taking to the streets. They all better become concerned.

I believe that people in high places are starting to become a little bit uncomfortable. As these gathering become larger and more widespread you can begin to smell the fear.
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HUFFPOST SUPER USER
John Derrick
12:30 PM on 10/07/2011
Mr. Palermo, great article and right-on target with what is really going on. No matter the political preference; wrong is still wrong to most of us and Durbin should have been challenged on the floor of the Senate for stating the obvious...however he wasn't. This tends to signify that it was common knowledge and this is what should be troubling to us all. Mega-banks have grown (like the insurance giants) to a point that a system over-haul is necessary. Who will take the lead on this? Freshmen politicans, fresh from the States who have not yet embellished themselves with lobbist dollars. Obama and other "seasoned" politicans choose to do nothing because they choose to do nothing. Like I was told long ago...."Washington does nothing unless it chooses to do something." The simple fact that nothing is being done should signal to us all...that WE must do something. Let your votes be counted.
This user has chosen to opt out of the Badges program
11:29 AM on 10/07/2011
The top 1% should be ashamed of their collective behavior.
Their huge wealth accumulation over the last 30 years vs. the poverty many Americans face daily
should make them the target of all fair minded people.
Too bad the Corporate Media protects these spoiled ,greedy millionaires.
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HUFFPOST SUPER USER
Josh Crawford
Just the facts, man!
06:01 PM on 10/07/2011
Not only aren't they ashamed, they are actually proud of themselves and absolutely refuse to acknowledge that the playing field was blatantly tipped in their favor for the last 30+ years.
outnow
Ban the bomb
10:19 AM on 10/07/2011
If Obama wants to get re-elected, he will have to prosecute some of his biggest supporters on Wall Street, or he risks appearing to condone the conduct. Obama claims that no laws were broken. Does he have legal opinions for this position? Bill Black, a former prosecutor of the Savings and Loan scandal disagrees.

It should be up to juries to determine the guilt or innocence. There is more than probable cause to show that control crimes were committed, according to Black.

This issue will be hard to capitalize on by most Republicans because they see this as business as usual. The Occupy Wall Streeters will be saying this again and again. Can we address this important issue now? It isn't going away.
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HUFFPOST SUPER USER
Josh Crawford
Just the facts, man!
04:53 AM on 10/07/2011
"The dominant ideas of any industrial society are those of its ruling elites. Terrible ideas -- such as "trickle down" tax cuts, deeming corporations "people," or deregulating everything -- drench us like a relentless thundercloud opening over our heads. No matter how damaging these ideas are to the well-being of our society, as long as they come down from on high they'll be ventilated widely and establish the parameters of "acceptable" public discussion."
============================================
Truer words were never written...
03:07 PM on 10/07/2011
Exactly. Those words describe what is at the very core of the problem.
hellinahandcart
Your silence will not protect you.
03:16 AM on 10/07/2011
Very good article, Mr. Palermo- thank you.