Wall Street Bank Bonuses & Compensation Near 2007 ‘Good Times’ Levels, Report Finds

For immediate release: January 23, 2012
Contact: Sarah Roberts at 202-255-8332 or sarahrroberts@gmail.com
http://www.newbottomline.com/                                                Twitter @NBLcampaign

Wall Street Bank Bonuses & Compensation Near 2007 ‘Good Times’ Levels, Report Finds

As White House and Attorneys General Decide on Big Bank Settlement Today, The New Bottom Line Presses President Obama Not to Accept “1% Settlement” that Lets Banks Off the Hook for Mortgage Fraud

Report details how big bank bonuses could be used to rebuild the economy and profiles web of connections of bank board members who benefit from keeping bonuses high

(New York, New York) The nation’s top six banks -- Bank of America, JPMorgan Chase, Wells Fargo, Citigroup, Morgan Stanley and Goldman Sachs -- paid out $144 billion in bonuses and compensation for 2011, second only to the record $147 billion they paid out in 2007 at the height of the economic boom, according to a report released today by The New Bottom Line. Four banks – Bank of America, JPMorgan Chase, Wells Fargo, and Morgan Stanley – were awarded record high bonuses and compensation in 2011, despite their bleak stock performance during the year.

“Even though top bank executives have claimed that bonuses are down as much as 30 percent for 2011, total compensation has not decreased at all,” according to The New Bottom Line’s report, “Pulling Back The Curtain: The 1% Behind The 2011 Big Bank Bonuses.”

Many banks made up for smaller bonuses by increasing base salaries. For example, base salaries for named executive officers at Goldman Sachs more than tripled in 2011. At JPMorgan Chase, named executive officers saw salaries go up 50 percent. 

These near-record bonuses come amidst the news that a settlement is near between Wall Street banks and a group of states Attorneys General, including a predicted $20-25 billion in loan modifications and principal reduction. While the big banks continue to profit off the loss of the 99%, this potential sweetheart deal could let the banks off the hook for their crimes and only pay a small drop in the bucket.

“Big banks can crash the economy, take billions of dollars in tax-payer funded bailouts, award themselves more than $140 billion in bonuses and compensation, but can’t afford the necessary principal reduction that would help millions of homeowner?” said Tracy Van Slyke, co-director of The New Bottom Line.  “The settlement in its current form is a settlement for the one percent. President Obama must stand with the 99 percent and take the bold and necessary action to hold Wall Street and the big banks accountable. “

The New Bottom Line, which works with foreclosed families and underwater homeowners around the country, has called on President Obama to order a full investigation into the fraudulent and illegal activities of the big banks during the mortgage crisis. The New Bottom Line also maintains that a minimum of $300 billion in principal reduction for homeowners
Instead of going to bonuses and compensation, the report details how this money could used to rebuild the economy decimated by the Wall Street banks during the mortgage crisis. Specifically: 

• Just half of the banks’ bonus and compensation pools would be enough to write down the principals on all underwater mortgages in the country. 
• If the six banks took half of their bonus and compensation pool and put it directly into a public service jobs fund, they could create 1.8 million jobs, and still have enough money left over to pay the average employee $60,605.
• Just 72% of the $144 billion in bonuses and compensation at the top six banks would have been enough money to plug the $102.9 billion in budget holes for all 50 states for the current fiscal year.
• The report gives examples of how the money could be spent in California, Colorado, Florida, Illinois, Iowa, Minnesota, Missouri, Nevada, and Ohio. For example, just four days of bonuses and compensation at the top six banks would be enough to restore $2.2 billion for local schools in Minnesota.
• The report states that average banker pay at the six biggest banks hit an all-time high in 2011. The average employee at these banks will take home $121,209 for 2011, more than twice the national median household income of $49,445. At pure investment banks such as Morgan Stanley and Goldman Sachs, average bonuses and compensation in 2011 were double and triple the $121,209 figure.

“Pulling Back The Curtain” provides a behind the scenes look at why these bonus and compensations numbers are approved by profiling a cross-section of the six big bank boards of directors. By laying out their web of connections in government, corporate and public sectors as well as their financial rewards, the report demonstrates how it is in the self-interest of these board members to put their corporate cronies’ pocketbooks above the public interest.

These nine board members have also collectively spent more than $680,000 on political donations since 2000, trying to buy influence at both the state and federal levels. The board members examined include: Mukesh D. Ambani, Bank of America; Monica C. Lozano, Bank of America; Robert W. Scully, Bank of America; Stephen Burke at JPMorgan Chase; David C. Novak, JPMorgan Chase; William C. Weldon, JPMorgan Chase; Ernesto Zedillo, Citigroup; Erskine B. Bowles, Morgan Stanley; and William W. George, Goldman Sachs. Burke has spent more than $305,000 on state and federal political contributions since 2000, a figure that is more than six times the annual median household income in the U.S. 

Given that the country is in an economic crisis triggered by the banks’ mortgage fraud, the report calls on Wall Street to reject these high bonuses and compensations and “start investing back in the 99%” by:

• writing down principals on underwater mortgages;
• doing fair and sustainable loan modifications to prevent foreclosures;
• increasing lending to small businesses;
• making affordable loans to families, states, and local governments; and
• paying their fair share of taxes.

###

The New Bottom Line (NBL) is a new and growing movement fueled by a coalition of community organizations, congregations, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap, and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, and dozens of state and local organizations from around the country.

Environmental and Economic Justice Communities Target Bank of America

For Immediate Release: Jan 9, 2012

Contact: Margot Friedman, The New Bottom Line, 202-332-5550 or mfriedman@dupontcirclecommunications.com
Kerul Dyer, Rainforest Action Network, 707-834-3358 or Kerul@ran.org

BankruptingAmerica Tumblr Blog

Environmental and Economic Justice Communities Target Bank of America

Share your Story: New website uses humor, innovation to highlight BoA abuses

Today,  Rainforest Action Network and The New Bottom Line teamed up to launch a new Tumblr blog, called Bankrupting America. This hub on everything Bank of America highlights the worst of the big bank’s deeds, personal stories of those that have been hurt by the company and what everyday people are doing to fight back. The web site features everything from posts lampooning the company, to on-the-ground organizing efforts, to the latest news and reports on Bank of America activities.

People everywhere are invited to submit content, including their own personal stories of how Bank of America has hurt them, their families and their communities.

Leading up to the anticipated Bank of America shareholder meeting in Charlotte, North Carolina this spring, the groups provide a sampling of the widespread public outcry against BoA for the destructive environmental and economic impacts caused by company practices.

“Communities everywhere are fed up with Bank of America for putting profits before people and that’s what this new blog is all about,” said Amanda Starbuck, director of RAN’s  Energy and Finance program. “Whether it’s the fact that the company bankrolls climate change through coal investments or forecloses on America’s homeowners while paying top executives millions in bonuses, these are all symptoms of the bank’s lack of morality.”

“Bank of America is one of the prime movers behind the housing crisis and the economic collapse of this country.  From being the biggest forecloser in the country to avoiding paying their fair share of taxes to financing payday lenders, they are draining the 99% to pad their own bottom line,” said Tracy Van Slyke, co-Director for The New Bottom Line. “It’s time we have a new bottom line-where Bank of America contributes to the economy, and stops bankrupting it.”

In the final quarter of 2011, unprecedented consumer divestment in Bank of America rippled across the country and can be seen with over 50,000 pledged account closures and and industry analysis suggesting that 20 percent of the bank’s customers are considering leaving. The dissatisfied customers represent only a tiny fraction of those committed to boycott the company until it reforms.

The historic coalition between the environmental and economic justice organizations link struggles against Bank of America to point out three major grievances that hurt both the planet and people. The company leads all others when it comes to foreclosing on America’s homes, and financing the U.S. coal industry. As of June 2010, BoA had $88 billion worth of foreclosed homes in its portfolio, and invested over $4.3 billion in coal.  The company has shed nearly 100,000 jobs over the past seven years. And while Bank of America’s stock prices have plummeted in the last few months, executives are set to award themselves near-record bonuses for 2011.

Rainforest Action Network and The New Bottom Line are calling on Bank of America to:

• Pay its fair share
  Stop draining government of revenue. Pay the statutorily required 35% corporate income tax instead of gaming the system through off-shore tax shelters, loopholes, and scams.
• Stabilize the housing market and revitalize the economy
  Bank of America must stop investing in payday loans and must start making affordable business and family credit available, especially into communities of color. They must also reduce principal for all underwater homeowners to current market value. This would end the foreclosure crisis, reset the housing market, pump billions of dollars back into the economy, and create jobs.
• Fund the future — not dirty coal
  Stop financing for the coal industry and shift the balance of energy financing to support renewable power generation that is less threatening to our environment and health.

###

The New Bottom Line (NBL) is a new and growing movement fueled by a coalition of community organizations, congregations, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap, and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, and dozens of state and local organizations from around the country.

Rainforest Action Network (RAN) runs hard-hitting campaigns to break North America’s fossil fuels addiction, protect endangered forests and Indigenous rights, and stop destructive investments around the world through education, grassroots organizing, and non-violent direct action. For more information, please visit:www.ran.org

SF and Boston Updates: Across the Country, Americans Say Wall Street Must “Pay US Back”

Media Advisory beginning September 26, 2011
Alert for: Boston, Chicago, Denver, Honolulu, Los Angeles, Minneapolis, New York City, San Francisco, Seattle, and cities TBA
Contact:  Margot Friedman at 202-332-5550 or mfriedman@dupontcirclecommunications.com
www.newbottomline.com                                                                  twitter: @NBLcampaign

It’s not only Wall Street that’s occupied …

Across the Country, Americans Say Wall Street Must “Pay US Back”

(Bay Area, CA / Boston, MA) This week, homeowners, clergy, congregants, unions, and students in California’s Bay Area and Boston will conduct direct actions demanding that banks such as Wells Fargo, JPMorgan Chase, and Bank of America pay their fair share of taxes, end the mortgage crisis, and create jobs. Several weeks of 10-city actions from Boston to Honolulu (schedule below) are launching The New Bottom Line, a new nationwide coalition representing more than 1,000 faith-based and community organizations that seek to hold Wall Street accountable and find solutions for struggling and middle-class families.

The actions in the Bay Area include several clergy removing their church funds from major banks (today); families greeting bank executives at AT&T Park to demand they be allowed to keep their homes (Tuesday); cleaning up a foreclosed-on home and delivering the trash to the responsible bank (Wednesday); homeowners’ vigils at the Alameda County Courthouse to “mourn the American Dream” (Monday and Wednesday); and a mass mobilization of homeowners, city workers, nurses, teachers, and students in San Francisco’s Financial District (Thursday). See more details here: http://makebankspay.nationbuilder.com/events. A lead organizer is Alliance of Californians for Community Empowerment (ACCE).

In Boston, between September 30 and October 1, struggling and middle-class people are planning a “surprise” direct action at Bank of America, and plan to assist several foreclosed on families with moving back into their homes, as well as a march and rally on the Boston Common. Last week, local residents cleaned up an abandoned property in Malden, MA and returned the trash to its owner, Bank of America. In addition, they issued a large-scale “Notice to Quit” to Massachusetts BOA President Robert Gallery, which included some of the group’s key demands, such as principal reduction for underwater homeowners. See event details and video of the trash return here, under latest actions: http://www.takebackboston.org/. A lead organizer is Right to the City Alliance. 

In the first actions of the 10-city “Pay US Back” campaign last week, hundreds of protestors gathered at Chase Bank in Seattle and called on banks and CEOs to do more to help the struggling economy. Eleven people were arrested. In addition, 200 protesters disrupted wine tastings and golf tournaments at the Association of Washington Business Policy Summit at a secluded resort in Cle Elum, WA. 

“We are waiting for the Sheriff to give us a five day notice to vacate. We’re not going to leave our home. This is my American Dream and I refuse to let it go,” said Rose Mary Gudiel of La Puente, CA. Ms. Gudiel got a few days behind on her mortgage after her brother died, but quickly caught up. OneWest Bank directed her to apply for a loan modification, but denied it. She has announced that the Sheriff and OneWest will have to physically remove her. Watch the Gudiel family’s story here: http://www.youtube.com/watch?v=MlJDaWzWmSE

“Wall Street and the Big Banks are making record profits at the expense of the rest of us, and draining our wealth to pad their bottom line. Banks must pay their fair share of taxes, end the mortgage crisis by reducing principal for underwater homeowners, and create jobs through small business loans. Our bottom line means good jobs, healthy communities, and a government that fights for everyday people,” said LeeAnn Hall, Executive Director of Alliance for a Just Society, an organizational member of The New Bottom Line.

“Three years ago, when the collapse of Wall Street banks pushed our economy to the brink, taxpayers bailed out the guilty. The banks continued to hand out big bonuses, lobbied against financial reform, and foreclosed on millions of families. It’s time for banks like JPMorgan Chase, Bank of America and Wells Fargo to pay US back,” said George Goehl, Executive Director of National People’s Action, an organizational member of The New Bottom Line.

Each city (schedule below) has a local demand or proposal for making that community whole after years of mortgage fraud, predatory lending, and other wealth-stripping practices.

Nationwide, thousands of people are demanding that the banks “Pay US Back” and they must:

• Pay their fair share of taxes: Stop draining government of revenue and pay their statutorily required 35% corporate income tax. Stop gaming the system through off-shore tax shelters and loopholes.

• Stabilize the housing market and revitalize the economy:  Reduce principal for all underwater homeowners to current-market value. This would end the foreclosure crisis, reset the housing market, pump billions of dollars back into the economy and create one million jobs a year.

• Invest in American jobs: Stop sitting on trillions in cash reserves that could be invested in small businesses, the main source of jobs in the U.S., and other job-generating investments.

Following the fall actions, grassroots organizations across the country will be putting Wall Street accountability on the 2012 campaign agenda, including ballot initiatives, local, state, and federal legislation and divestment campaigns forcing city and state governments to divest from the big banks that are destroying their communities. New Bottom Line members will advance policies that make candidates choose, “Which side are you on: Wall Street or the people?”

Schedule of Direct Actions Demanding that Wall Street “Pay US Back”

Seattle	September 20-21 (completed, see links to coverage)	http://tinyurl.com/3clz2x3 http://tinyurl.com/3app7ps http://tinyurl.com/44xjvo9
San Francisco/Bay Area	September 26-29	Daily actions with mass mobilization on Sept. 29
Boston	September 29 to October 1	Large-scale direct action at a bank focused on foreclosures. Build up of actions at homes and banks throughout September.
Los Angeles	October 3-6	Mass mobilization on Oct. 6
Chicago	October 9-14	Mass mobilization, escalating actions throughout the week. Focus on revenue, jobs, foreclosure, and TIFs
New York City	October 11-14	Range of actions targeting banks, billionaires, state agencies and donors of elected officials against extending millionaires' tax. Tactics include marches, subway turnstile hopping, using moving trucks as props.
Minneapolis	October 10-15	A week of actions by Minnesotans for a Fair Economy partners directed at banks and financial institutions on issues including jobs, budget cuts/revenue, health care, and schools. Joint action in downtown Minneapolis on Friday, Oct. 15 at 3 p.m.
Denver	October 25-29	Direct actions targeting Wells Fargo on foreclosures, predatory/payday lending, and private prison divestment.
Honolulu	November 5-7	All-day conference kicking off New Bottom Line campaign in Hawaii, clergy leaders speaking at more than dozen Oahu churches. Holding events/actions during Asian Pacific Economic Conference.

###

The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, labor unions, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, Alliance of Californians for Community Empowerment (ACCE), Industrial Areas Foundation of the Southeast (IAF-SE) and dozens of state and local organizations from around the country.

 Alliance of Californians for Community Empowerment (ACCE) is a statewide community organization working with thousands of members in eleven counties creating transformative change by helping ordinary citizens to organize and take action. California is host to the world's eighth largest economy, yet every day more and more Californians are losing their jobs, falling further behind on their rent or mortgage payments and sending their kids to failing schools.  ACCE is dedicated to raising the voices of everyday Californians, neighborhood by neighborhood, so that our children have stronger communities and expanded opportunities.

Right to the City Alliance is a national alliance of membership-based organizations and allies organizing to build a united response to gentrification and displacement in our cities.  Our goal is to build a national urban movement for housing, education, health, racial justice and democracy.  We are building our power through strengthening local organizing; cross-regional collaboration; developing a national platform; and supporting community reclamation in New Orleans and the Gulf Coast.

Pay US Back: Big Bank Fall Actions Launch This Week. Join the Fight!

Three years ago, Wall Street crashed our economy and the federal government had to step in to save the culprits. 

Has Wall Street learned its lesson?  The answer: a resounding no.

Instead, big banks like JP Morgan Chase, Bank of America and Wells Fargo have taken away millions of homes from families through fraudulent foreclosures. They’ve drained billions of dollars from communities through the bailouts and wealth-sucking predatory actions. And they’re sitting on more than a trillion dollars instead of paying their fair share of taxes that could support education, roads, jobs, and pensions. Making matters worse, they’re converting that cash into political influence, as too many government officials are siding with the big banks and their big dollars over the needs of the everyday people they represent.

Wall Street and the Big Banks are making record profits at the expense of the rest of us, and draining our wealth to pad their bottom line.  While we struggle with less and less, the big banks profit more and more.  So how do we go about establishing a new bottom line-an economy that works for all of us that includes good jobs, healthy communities, and a government that fights for everyday people?

Read more

Americans to Wall Street: "Pay US Back!"

Media Advisory beginning September 20, 2011
Alert for: Boston, Chicago, Denver, Honolulu, Los Angeles, Minneapolis, New York City, San Francisco, Seattle, and cities TBA
Contact:  Margot Friedman at 202-332-5550 or mfriedman@dupontcirclecommunications.com
www.newbottomline.com                                                                  twitter: @NBLcampaign

Americans to Wall Street: “Pay US Back”

Thousands of Homeowners, Clergy, Congregants & Unions in 10 Cities Demand That Banks Pay Their Fair Share of Taxes, End the Mortgage Crisis and Create Jobs

(Washington, D.C.) Starting on September 20 in Washington State, everyday people fighting to create good jobs, reverse the foreclosure crisis, and build an economy that works for everyone will engage in a series of direct actions in 10 cities targeting big banks that bankrupted the country and drained wealth from American families. The direct actions primarily target JPMorgan Chase, Bank of America and Wells Fargo and include taking over bank buildings, meetings of corporate officials, civil disobedience, prayer vigils, mass mobilizations, and more.

The first of 10 direct actions will take place on September 20-21 at Suncadia, a mountain resort near Cle Elum, WA, where The Association of Washington Business (the statewide chamber of commerce) will be holding their annual policy summit. Two hundred low- and middle-income people allied with Washington Community Action Network will demand that banks, corporations and wealthy individuals pay their fair share of taxes. On September 21 from 12-1 p.m., protesters calling for an end to corporate tax loopholes will gather at JPMorgan Chase Bank in Seattle after Phyllis Campbell, Northwest Director of Chase Bank, speaks at Suncadia.   

The weeks of rolling actions (schedule below) will also publicly launch The New Bottom Line, a new nationwide coalition representing more than 1,000 faith-based and community organizations that seek to hold Wall Street accountable and find solutions for struggling and middle-class families.

“We are struggling with less and less, while the big banks profit more and more. The big banks have done nothing but dodge taxes, throw people out of their homes and choke small business, all the while draining our wealth to pad their bottom line. It’s time for JPMorgan Chase, Bank of America and Wells Fargo to pay US back,” said George Goehl, Executive Director of National People’s Action, an organizational member of The New Bottom Line. “We are fighting to build an economy that works for all of us. Our bottom line means good jobs, healthy communities, and a government that fights for everyday people.”

“The nation’s banks are sitting on a historically high level of cash reserves of $1.64 trillion, but they refuse to help the country. It’s downright unpatriotic. It’s time for a new bottom line: banks must pay their fair share of taxes, end the mortgage crisis by agreeing to principal write downs for all underwater homeowners, and help create jobs through small business loans,” said LeeAnn Hall, Executive Director of Alliance for a Just Society, an organizational member of The New Bottom Line.

Each city (schedule below) has a local demand or proposal for making that community whole after years of mortgage fraud, predatory lending, and other wealth-stripping practices.

Nationwide, thousands of people are demanding that the banks “Pay US Back” and they must:

• Pay their fair share of taxes: Stop draining government of revenue and pay their statutorily required 35% corporate income tax. Stop gaming the system through off-shore tax shelters and loopholes.

• Stabilize the housing market and revitalize the economy:  Reduce principal for all underwater homeowners to current-market value. This would end the foreclosure crisis, reset the housing market, pump billions of dollars back into the economy and create one million jobs a year.

• Invest in American jobs: Stop sitting on trillions in cash reserves that could be invested in small businesses, the main source of jobs in the U.S., and other job-generating investments.

Following the fall actions, grassroots organizations across the country will be putting Wall Street accountability on the 2012 campaign agenda, including ballot initiatives, local, state, and federal legislation and divestment campaigns forcing city and state governments to divest from the big banks that are destroying their communities. New Bottom Line members will advance policies that make candidates choose, “Which side are you on: Wall Street or the people?”

“Wall Street’s big dollars are getting our elected officials to rig the system for Wall Street. So it’s no surprise that politicians talk about cutting our kids’ education and our parents’ health care as though there’s no money. It’s a big lie. We know where the money is to keep our communities strong and healthy. It’s not in Grandma’s pension. It’s not in the homes of families fighting foreclosure. And it’s not in the pockets of American schoolchildren or schoolteachers. It’s not in cuts to what we care about most. The money is on Wall Street,” said Peggy Mears, Alliance of Californians for Community Empowerment, an organizational member of The New Bottom Line.

Schedule of Direct Actions Demanding that Wall Street “Pay US Back”

Seattle	September 20-21	Series of direct actions focusing on closing corporate tax loopholes at the annual policy summit of the Association of Washington Business (the statewide chamber of commerce) and JPMorgan Chase Bank in Seattle, Olympia and Spokane.
San Francisco/Bay Area	September 26-30	Daily actions with mass mobilization on Sept. 30
Boston	September 29 to October 1	Large-scale direct action at a bank focused on foreclosures. Build up of actions at homes and banks throughout September.
Los Angeles	October 3-6	Mass mobilization on Oct. 6
Chicago	October 9-14	Mass mobilization, escalating actions throughout the week. Focus on revenue, jobs, foreclosure, and TIFs
New York City	October 11-14	Range of actions targeting banks, billionaires, state agencies and donors of elected officials against extending millionaires' tax. Tactics include marches, subway turnstile hopping, using moving trucks as props.
Minneapolis	October 10-14	Community groups, faith and labor organizations will confront banks and financial institution from Oct 11 - 14 with demands that they support jobs not budget cuts, repay the public, and reform the worst practices of the industry. Coalition event Fri., Oct 14th at 3 pm, Minneapolis.
Denver	October 25-29	Direct actions targeting Wells Fargo on foreclosures, predatory/payday lending, and private prison divestment.
Honolulu	November 5-7	All-day conference kicking off New Bottom Line campaign in Hawaii, clergy leaders speaking at more than dozen Oahu churches. Holding events/actions during Asian Pacific Economic Conference.

###

The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, labor unions, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, Alliance of Californians for Community Empowerment (ACCE), Industrial Areas Foundation of the Southeast (IAF-SE) and dozens of state and local organizations from around the country. Learn more at www.newbottomline.com

Additional groups organizing events include SEIU locals, Right to the City, and more.

Protestors descend on Boston Bank of America, ramp up to fall excitement

Dozens of protesters descended on Boston Bank of America branches today, following the company’s announcement that it will slash more than 30,000 jobs in the coming months.  This was the first, exciting, taste of dozens of actions, events, trainings and more happening this Fall targeting the big banks for draining wealth from our communities and crashing the economy. 

Read more

As Mortgage Fraud Settlement Talks Continue, Homeowners, Clergy & Unions Demand that African Americans and Latinos Not Be Locked Out of Principal Reduction

For immediate release:  September 7, 2011
Contact:  Margot Friedman at 202-332-5550 or mfriedman@dupontcirclecommunications.com
www.newbottomline.com                                              twitter: @NBLcampaign

As Mortgage Fraud Settlement Talks Continue, Homeowners, Clergy & Unions Demand that African Americans and Latinos Not Be Locked Out of Principal Reduction

The New Bottom Line Plans Direct Actions Against Big Banks in Dozens of Cities to Hold Wall Street Accountable, Outlines Specific Demands to “Pay US Back”

(Washington, D.C.)  This week, as the President makes a major speech on jobs and the 50 state Attorneys General and the nation’s big banks continue talks to settle the banks’ responsibility for massive mortgage fraud, homeowners, clergy, unions, and others urge their state Attorney General to be sure that African Americans and Latinos are included in principal reduction programs. 

As the Attorneys General continue to negotiate with banks over a robo-signing and foreclosure fraud settlement, a major concern is that the banks may push for complete control over who gets principal reduction under the settlement agreement. 

Giving sole control to the banks could leave out African American and Latino communities since the banks would likely choose the least at-risk mortgages to clean up their balance sheets rather than make these hard-hit communities whole or create jobs where they are most needed.  Communities of color have been receiving less help to modify their mortgages and there is no reason to believe the banks, unless forced to, will change that pattern. As reported by the Center for Responsible Lending, African Americans and Latino homeowners are nearly twice as likely to go into foreclosure as white homeowners, regardless of income. The New Bottom Line urges the Attorneys General to stand firm for principal reductions where the banks’ fraudulent actions have had the most devastating impact.

“Communities of color were at the front of the line for mortgage fraud and abuse. They must not be forced to the back of the bus for relief,” said Liz Ryan Murray, Policy Director for National People’s Action, an organizational member of The New Bottom Line.

Growing numbers of economic experts, including Christine Lagarde, Managing Director of the International Monetary Fund, are saying that the US needs an “aggressive principal reduction programs for homeowners” to end the mortgage crisis and create jobs.  Ahead of the President’s jobs speech, The New Bottom Line proposed a plan that showed the nation’s banks could pump $71 billion per year into the economy, create more than one million jobs annually, save families $6,500 per year on mortgage payments, and fix the housing crisis by writing down all underwater mortgages to market value. 

The unemployment rate, while high overall, is shockingly high in communities of color with African Americans experiencing 16.7% unemployment and Hispanics 11.3%.  African American and Latino communities lost record amounts of wealth in the mortgage fraud crisis, were the most viciously targeted for predatory mortgage lending, and now have 20 times and 18 times less wealth than white families respectively.    

“The Attorneys General need to look out for me and my community who they have sworn to serve.  They must protect America’s bottom line, not just Bank of America’s bottom line,” said Ken Kelly of Antioch, California who was notified that he was being foreclosed upon by Bank of America while they offered him a loan modification, and a member of the PICO National Network.

The New Bottom Line and allies from around the country are not waiting for elected officials or Wall Street to do the right thing.  Starting in September and running throughout October and November, thousands of homeowners, clergy members, and everyday people angry about the state of their communities, jobs and the economy will participate in a series of rolling actions in dozens of cities across the country -- from Seattle to Minneapolis to Chicago to Boston.  Corporations and Wall Street are draining everyday people of all they have in order to amass wealth, opportunity and power in the hands of an elite few.

Thousands of people from across the country will join together to demand that the big banks and Wall Street “Pay Us Back” -- reinvest in America, put resources back into communities, and help rebuild families’ wealth.  All actions, as they take over streets, bank buildings, meetings of corporate officials, and more, will put forth local and national proposals outlining how big banks, such as JPMorgan Chase, Bank of America and Wells Fargo can and will:

• Pay their fair share of taxes to provide the revenue desperately needed for our communities and country’s budgets instead of cutting critical public services and “grandma’s pension.”
• Respond to the foreclosure fraud crisis they caused that has bankrupted millions of people and thousands of communities by creating permanent loan modifications and principal reductions for all underwater homeowners.
• Start making loans to small businesses to create more good jobs, instead of reducing small business lending.

The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, labor unions, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, Alliance of Californians for Community Empowerment (ACCE), Industrial Areas Foundation of the Southeast (IAF-SE) and dozens of state and local organizations from around the country. Learn more at www.newbottomline.com

Download Report: "The Win/Win Solution: How Fixing the Housing Crisis Will Create One Millions Jobs

Read and download the new report here. For more on the report, visit:

• The report overview blog post
• A visual breakdown of states by underwater mortgages, average homeowners savings, jobs created and more
• Our Take Action page

Read more

Fixing the Housing Crisis Would Create One Million Jobs Annually, New Report Finds

For immediate release:  August 17, 2011
Contact: Margot Friedman at 202-332-5550 or mfriedman@dupontcirclecommunications.com
www.newbottomline.com                                                                  twitter: @NBLcampaign

Fixing the Housing Crisis Would Create One Million Jobs Annually, New Report Finds

Homeowners, Clergy, Unions & Others Call on State Attorneys General to Demand Principal Reduction for Underwater Homeowners as Part of Settlement with Banks

(Washington, D.C.)  By writing down all underwater mortgages to market value, the nation’s banks could pump $71 billion per year into the economy, create more than one million jobs annually, save families $6,500 per year on mortgage payments, and fix the housing crisis once and for all, according to a new report by The New Bottom Line, a nationwide campaign representing 1,000 faith-based and community organizations that seeks to hold Wall Street accountable and find solutions for struggling and middle-class families.

Grassroots organizations across the country aligned with The New Bottom Line campaign are calling on State Attorneys General who are investigating the banks for foreclosure fraud to stand firm for a settlement agreement that (1) includes large-scale principle reduction for underwater borrowers; and (2) does not to release the banks from claims beyond the robo-signing scandal.  This would provide real restitution for homeowners and allow states to sue the banks for wrongdoing connected to the origination of mortgages and the steps leading up to foreclosure.

“Homeowners across the nation are struggling to pay their boom-era mortgages with their recession-era salaries and the economy is suffering for it. Writing down the principals and interest rates on all underwater mortgages to market value would serve as the second stimulus that America so desperately needs, only without added costs to taxpayers,” according to the report entitled “The Win/Win Solution: How Fixing the Housing Crisis Will Create One Million Jobs.”

One in five Americans owe more on their mortgage than their home is actually worth.  Collectively, underwater homeowners will have to pay down $709 billion in principal before they can start building equity in their homes.  Every effort to reboot the housing market to date has failed because it has not done the most essential thing: reduce the massive debt load carried by underwater homeowners. 

If the banks fix what they broke and wrote down principals on all underwater mortgages to current market value, it would inject a direct cash stimulus into the economy, redirecting billions of dollars that cash-strapped homeowners are currently paying on inflated mortgage debt toward other job-creating sectors of the economy.  The plan would lower homeowners’ mortgage payments by an average of more than $500 per month or $6,500 per year. 

Six billion dollars per month that is currently going to mortgage payments would instead go toward buying groceries, school supplies, and other household necessities.  As consumer demand picked up, businesses would start hiring again.  The report estimates that putting $71 billion into American consumers’ pockets annually would help create more than one million jobs per year.     

The report includes a state-by-state breakdown of how much underwater homeowners would save per month, the amount the proposal would pump into the local economy, and numbers of jobs created.  For example, the plan would inject an annual stimulus of $20.5 billion in California and 300,000 jobs per year; $1.64 billion in Ohio and 24,000 jobs; and $12 billion in Florida and almost 180,000 jobs. 

The report notes that the banks can afford to execute this plan.  Last year, the nation’s top six banks paid out more than twice the cost of the plan ($71billion per year) in bonuses and compensation alone ($146 billion in 2010).  Currently, the nation’s banks are sitting on a historically high level of cash reserves of $1.64 trillion. 

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The New Bottom Line is a new and growing movement fueled by a coalition of community organizations, congregations, labor unions, and individuals working together to challenge established big bank interests on behalf of struggling and middle-class communities. Together, we are working to restructure Wall Street to help American families build wealth, close the country’s growing income gap and advance a vision for how our economy can better serve the many rather than the few. Coalition members include PICO National Network, National People’s Action (NPA), Alliance for a Just Society, Alliance of Californians for Community Empowerment (ACCE), Industrial Areas Foundation of the Southeast (IAF-SE) and dozens of state and local organizations from around the country. Learn more at www.newbottomline.com

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