"Money Talks ... Ours Is Speaking for Justice"
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"Money Talks ... Ours Is Speaking for Justice"
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The
Coalition
Courier Articles in this issue: The
Emergency Economic Stabilization Act of 2008 The state of the economy continues to dominate the headlines, and the long-term prognosis for our national economic health remains unclear. Understandably, people remain concerned about the economy, and recent polls indicate that it is far and away the top issue on voters’ minds this election season. Some of the discussion in the news and around kitchen tables has focused on the economic rescue plan passed by Congress and signed by the President in early October. What does it do? Will it work? Is it a corporate bailout, a needed economic rescue, or neither?
The 451-page Emergency Economic Stabilization Act of 2008 is centered upon a proposal to use up to $700 billion of taxpayer dollars to buy troubled assets, particularly mortgage-backed securities, from the nation’s banks. The final bill also included and increased the size of deposits covered by the Federal Deposit Insurance Corporation (FDIC) to $250,000. Unrelated to the rescue plan, the bill also included a $150 billion package of tax cuts and extensions and several other additional pieces of legislation.
Only time will tell if the bill will accomplish all that Congress and the President intended. However, we will keep our principles in mind as we continue to assess this bill and its implementation. Below are some initial descriptions of what the bill says in several areas:
Oversight and Accountability: Two panels, one of federal banking regulators and Cabinet officials and another made up of five Members of Congress will review the purchase of assets. In addition, a new inspector general within the Treasury Department will monitor activities.
Taxpayer Protection: If after five years the government's sale of the assets purchased under the Troubled Asset Relief Program (TARP) results in losses, the President must submit a plan to Congress to recover costs from the financial industry. In addition, the law requires an equity (ownership) stake by our government in companies getting bailouts, intended to protect taxpayers from losses.
Protection from Foreclosures: The bill requires that the Treasury must establish a plan to reduce foreclosures and encourage companies servicing mortgages to modify loans to make payments affordable. It also strengthens the Hope for Homeowners Program, which was part of The Housing and Economic Recovery Act of 2008, by permitting the Federal Housing Administration to refinance the mortgages of at-risk borrowers living in their principal residence when certain conditions are met.
Protection for Renters: The Treasury Secretary is required to coordinate with the FDIC, the Federal Housing Finance Agency, the Secretary of HUD, and other federal entities that hold troubled assets that are purchased by the federal government “to permit bona fide tenants who are current on their rent to remain in their homes under the terms of the lease.”
Executive Pay: Much of the final authority to define the bill’s terms, including what is “excessive” and “appropriate” compensation, rests with the Treasury Secretary. The bill includes language that limits the pay of CEOs and top officials, including a ban on “golden parachutes” and permission for a federal “claw back” of executive earnings based on flawed accounting.
From the ELCA e-Advocacy Network
Members making a difference … Last year, when the Leadership Conference of Women Religious chose human trafficking as a concern, the Coalition decided to purchase stock in a company that this issue might be addressed through shareholder advocacy.
After looking into the various issue areas in which human trafficking was being addressed (travel agencies, tourism, hotel chains, airlines, cruise ships), the suggestion was to purchase stock in Wyndham Worldwide because at the time they did not have a Code of Conduct and did not seem to be moving to consider adopting one.
Shortly after the stock was purchased by several members, Wyndham announced that they were implementing a Code that they would be distributing to all of their affiliates. The company sent representatives to the conference (co-sponsored by the Interfaith Center on Corporate Responsibility) on human trafficking held in Washington, DC last year.
A conference call with the company and shareholders is being planned by the lead shareholder. The call will address the implementation of the Code—how has it been distributed to managers and what instructions regarding employee involvement have been given, is the policy available on Wyndham’s web site, what has been the follow-up regarding employee training (especially new hires), has information regarding trafficking (with phone numbers where help can be found by victims) been posted in the hotels.
Future conversations with the hotel chain will be based upon the information shared during this call. The company does seem to be open to us and our concerns.
Green is good ...
Visit Co-op America’s
National Green Pages Use Co-op America’s National Green Pages directory to find a nationwide listing of screened socially and environmentally responsible businesses.
The
Directory has more than 2,500 companies in over 150 product categories. Find
everything you might want or need to make your holiday shopping green and
sustainable. Simply go on-line to www.coopamerica.com and click on the icon for National Green Pages. Use the directory to shop from your computer or to find suggestions of businesses in your geographic area who carry the products that will make your shopping this holiday season both ecologically friendly and socially responsible.
* * * * * * * * * * * Volume 7, Issue 1 (August, 2008) Articles in this issue:
Companies Dive Into the Water Business
Water, water, everywhere ... Companies Dive Into the Water Business
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