Archive for federal regulation

Charter schools, corporations cheat kids, spend millions on trips, strip clubs #CharterSchoolsWeek


charter schools corporate

Charter schools are cheating our children. Brace yourselves: Over 100 million dollars meant for our kids have been misused, lost or stolen by charter operators and corporations. Why? Because there is no regulation. We all know how the GOP and corporate America hate regulations, and this is why.

Privatization gives greedy, corporate types all kinds of opportunities. For instance, the opportunity to use taxpayer funds meant for students; they're using that money, our money, to pay for house renovations, outings to strip clubs, and vacations to Atlantic City.

How in the world can we keep giving money to people (because we all know that corporations are people, my friend) who do this? How in the world can Americans keep supporting-- and voting for-- these pigs?

By the way, the report covers what "might just be the tip of the" proverbial iceberg, focusing on a mere fifteen of the forty-two states that have charter school laws.

Paul Rosenberg at Salon has the story:

While there are plenty of other troubling issues surrounding charter schools—from high rates of racial segregation, to their lackluster overall performance records, to questionable admission and expulsion practices—this report sets all those admittedly important issues aside to focus squarely on activity that appears it could be criminal, and arguably totally out of control. It does not even mention questions raised by sky-high salaries paid to some charter CEOs, such as 16 New York City charter school CEOs who earned more than the head of the city’s public school system in 2011-12. Crime, not greed, is the focus here. [...]

[The report] organized the abuse into six basic categories, each of which is treated in its own section:

• Charter operators using public funds illegally for personal gain;
• School revenue used to illegally support other charter operator businesses;
• Mismanagement that puts children in actual or potential danger;
• Charters illegally requesting public dollars for services not provided;
• Charter operators illegally inflating enrollment to boost revenues; and,
• Charter operators mismanaging public funds and schools.

Perhaps most disturbingly, under the first category, crooked charter school officials displayed a wide range of lavish, compulsive or tawdry tastes. Examples include:

• Joel Pourier, former CEO of Oh Day Aki Heart Charter School in Minnesota, who embezzled $1.38 million from 2003 to 2008. He used the money on houses, cars, and trips to strip clubs. Meanwhile, according to an article in the Star Tribune, the school “lacked funds for field trips, supplies, computers and textbooks.”


Others spent their stolen money on everything from a pair of jet skis for $18,000 to combined receipts of $228 for cigarettes and beer, to over $30,000 on personal items from Lord & Taylor, Saks Fifth Avenue, Louis Vuitton, Coach and Tommy Hilfiger. But the real damage came from the theft of resources for children’s future.

No wonder Republicans are trying to do away with public schools. They're no fun!

More at Salon.

charter schools privatization corruption


VIDEO: David Gregory changes subject to save guest from Barney Frank's question on wealthy bankers' huge salaries


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Happy fifth anniversary of the Wall Street Meltdown! Weeee! Could a financial crisis happen again? You bet.

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Meet the Press host David Gregory came to the rescue of his own personal NBC damsel in distress, CNBC host Maria Bartiromo, who thinks Americans need to come down with collective amnesia and get past all the silly little antics of Wall Street.

Never mind the pain and suffering, the poverty, the GOP cutting programs that would keep people alive who can barely make ends meet and who were cut off at the wallet by those poor, put-upon Big Banks.

Instead, Gregory's priority was to swoop in and end the awkward silence and nervous giggling that followed Barney Frank's question, "Why are bankers paying themselves so much money?" The panelists who are oh so into Wall Street were suddenly oh so silent:

Maria Bartiromo: We need to get beyond the conversation of, Is Wall Street evil?" Are the bankers evil and causing pain? And toward the conversation of, how do you create sustainable economic growth? That will answer the issue of inequality. Because with growth comes jobs. [...]

Barney Frank: I do want to add one thing, though, to your question about those poor beleaguered bankers who have been forced to do so much to keep from not being able to pay their debts they can’t lend money. If they really are running businesses that are so stressed that they can’t do their basic work, why are they paying themselves so much money? Where did these enormous salaries come from if they were in fact in such serious trouble?

pregnant pause

Maria Bartiromo: (laughing) Thank you for giving me that one. Okay.

David Gregory: But your point is to get beyond — to get beyond some of the resentment of the bankers and get to a place where we actually have more hiring going on, more investment going on and Washington plays a more constructive role beyond whether it was the bailout of the banks which changed our politics.

Think Progress:

(Nevermind that the deregulation of the financial sector is a primary driver of inequality in the U.S.) [...]

It would have been interesting to hear Bartiromo’s response had Gregory not intervened to prevent anyone answering Frank’s question. Wall Street executive pay seems difficult to defend five years on from the crisis. It isn’t just that banker bonuses and bank profits have returned to or even surpassed pre-crisis highs. It’s that a third of the highest-paid executives of the past 20 years have been failures or frauds. It’s that companies routinely manipulate performance-based compensation schemes to effectively guarantee executive payouts. It’s that taxpayers subsidize payments in the form of stock, which also give executives incentive to the sorts of fraud and risk-taking that created the financial crisis.

Here is the entire segment:

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Could a financial crisis happen again? You bet.


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Michael Hiltzik has yet another splendid column in today's Los Angeles Times. This one asks the question, "Could a financial crisis happen again?" His answer: "You bet."

Hiltzik, as he is wont to do, goes into some detail to support his case, so it's well worth reading the entire piece, but a few key points stood out. One is his reminder that no high-level executive of any major bank has faced trial, and most of them are still filthy rich. To rub salt into that wound, "no top executive of Bank of America, Bear Stearns, Lehman Bros., Goldman Sachs, Wells Fargo or JPMorgan has even been sued personally by the Securities and Exchange Commission."

Depressed yet? Angry yet? Banging your head against that nearby wall yet? Allow me to exacerbate your pain. Hiltzik recaps the Barclays tale of how that British-based bank paid a $450,000,000 price for manipulating interest rates for borrowers and is looking at a similar fine for rigging California's electricity market. However:

[Barclays] seems to have no trouble getting in the door of the Fed. How would you feel if your local D.A. took meetings with convicted felons to get their thoughts on how our tough criminal laws should be eased up? That's not far from what the Fed and Barclays are up to.

Feeling more secure? Me neither. Think things have changed? Me neither. Think Big Banks have watered down what should have been strict rules and are taking advantage of loopholes that benefit their bottom line at our expense? Hey, me too!

The banks today still fight regulation by claiming that tying their hands will hobble economic growth. This is one of those balancing tests where all the weights seem to have been piled on one side. What's left off is the cost of inaction.

[Per economists], the Great Recession cost the U.S. as much as $14 trillion in economic output, or up to $120,000 for every household in the country. That comes to a lot more than the cost of keeping a few bankers from collecting their bonuses through risky, manipulative financial deals.

The targets of regulation always squeal that trampling on their freedom of action will have economic costs. But the reality is that the cost of lax regulation is always higher than the cost of making a system safe. The U.S. understood that reality in the Thirties. What keeps us from understanding it now?

That wall you head is looking for is to your left. Bang away.


3/4 of Senate GOP want to bar any new legislation that would help workers, regulate workplace conditions


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Our own David Garber previously posted "Tom Coburn Isn’t An Idiot, He Just Plays One In The Senate":

Senator Tom Coburn, the firebrand senator from Oklahoma has his priorities on backwards. He believes in punishing the worker bee to get to the queen — in this case the Affordable Care Act. Silly man. Stupid Man. Dangerously idiotic man.

Here’s what Tom Terrific is doing. He doesn’t like the Affordable Care Act. So he’s going to be placing a hold on an administration executive nomination, in this case Katherine Archuleta, nominated to head the Office of Personnel Management....

It’s about pettiness. It’s about poor sportsmanship. It’s about “If I can’t pitch, I’m taking my baseball home and then nobody can play.” It’s attitude. Childish at that.

David's post was just the tip of the proverbial iceberg. Check out what Coburn and Rand Paul are up to now, but first take a swig of anything alcoholic and/or pop a Tums. Think Progress:

More than three-quarters of the Senate Republican caucus signed onto legislation introduced Wednesday by Sens. Tom Coburn (R-OK) and Rand Paul (R-KY) that could render it virtually impossible for Congress to enact any legislation intended to improve working conditions or otherwise regulate the workplace. Had their bill been in effect during the Twentieth Century, for example, there would likely be no nationwide minimum wage, no national ban on workplace discrimination, no national labor law and no overtime in most industries. [...]

Coburn and Paul’s bill appears to be an attempt to restore the constitutional regime that prohibited child labor regulation and other such nationwide regulation of the American workplace. [...]

What is somewhat surprising, however, is the sheer breadth of support for Coburn and Paul’s discredited view of the Constitution within the Senate Republican Caucus. According to Coburn’s press release, their bill is cosponsored by “Senators Ayotte (R-NH), Barrasso (R-WY), Blunt (R-MO), Boozman (R-AR), Burr (R-NC), Chambliss (R-GA), Coats (R-IN), Corker (R-TN), Cornyn (R-TX), Crapo (R-ID), Cruz (R-TX), Enzi (R-WY), Fischer (R-NE), Flake (R-AZ), Graham (R-SC), Grassley (R-IA), Hatch (R-UT), Heller (R-NV), Inhofe (R-OK), Isakson (R-GA), Johnson (R-WI), Lee (R-UT), McCain (R-AZ), McConnell (R-KY), Moran (R-KS), Risch (R-ID), Roberts (R-KS), Rubio (R-FL), Scott (R-SC), Sessions (R-AL), Thune (R-SD), Toomey (R-PA), Vitter (R-LA), and Wicker (R-MS).”

See how deeply these right wing extremists care about small businesses? Growing businesses? Employees? Jobs? Job safety? Equal rights? Equal pay? Health and welfare? Democracy? You? They say they do, they campaign like they do, but all they really care about is profit and power on the backs of ordinary working Americans.

We simply don't matter. At all. They convince people to donate to them and then vote them into office. Then once they're elected, this is how they want to treat you and your families... which leads me to get down on my knees and plead to you to register, to vote, and to help others do the same, in a huge way.

These self-serving, duplicitous skunks don't want to just "rebrand" their party (or as I like to call it, "destroy"), they want to rebrand the U.S. Constitution. They will have failed at both. "Dangerously idiotic" indeed.

But what do they care, as long as they appeal to their base. What a perfect word to describe anyone who would support them: base.

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