Category: employment

So Not a Surprise

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Geithner defended Wall Street and prevented any real consequences for their actions, and now he gets his back end bribe for doing this:

Timothy F. Geithner will join the private equity firm Warburg Pincus as president, the firm announced on Saturday. It would be his first prominent position since leaving office as Treasury secretary this year.

The unusually low-key announcement — made with little fanfare on a Saturday morning — is Mr. Geithner’s first foray into the private sector in 25 years, after serving in the Treasury Department, the International Monetary Fund and the Federal Reserve Bank of New York.

As president of the New York Fed in 2008, Mr. Geithner helped lead the federal government’s response to the financial crisis, including the sale of Bear Stearns and the bailout of the American International Group.

………

Mr. Geithner follows in the path of past Treasury secretaries who, after leaving government, have accepted lucrative Wall Street posts. After leaving the Clinton administration, Robert E. Rubin joined Citigroup. And John W. Snow, a Treasury secretary in the George W. Bush administration, joined the private equity firm Cerberus.

Note that Geithner has never worked as an investment banker or stock broker, and he’s president of a private equity firm.

This is a payment for not rocking the boat, and f%$#ing the average American in the mortgage crisis.

And any future regulator knows that if they do right by the banksters, the banksters can throw them some multimillion dollar crumbs when they leave government service.

What a Surprise, the New York Bank of the Federal Reserve is Completely Captured by the Vampire Squid*

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Case in point, we have a bank examiner fired by the NY Fed because she refused to ignore the law to help Goldman Sachs:

In the spring of 2012, a senior examiner with the Federal Reserve Bank of New York determined that Goldman Sachs had a problem.

Under a Fed mandate, the investment banking behemoth was expected to have a company-wide policy to address conflicts of interest in how its phalanxes of dealmakers handled clients. Although Goldman had a patchwork of policies, the examiner concluded that they fell short of the Fed’s requirements.

That finding by the examiner, Carmen Segarra, potentially had serious implications for Goldman, which was already under fire for advising clients on both sides of several multibillion-dollar deals and allegedly putting the bank’s own interests above those of its customers. It could have led to closer scrutiny of Goldman by regulators or changes to its business practices.

Before she could formalize her findings, Segarra said, the senior New York Fed official who oversees Goldman pressured her to change them. When she refused, Segarra said she was called to a meeting where her bosses told her they no longer trusted her judgment. Her phone was confiscated, and security officers marched her out of the Fed’s fortress-like building in lower Manhattan, just 7 months after being hired.

“They wanted me to falsify my findings,” Segarra said in a recent interview, “and when I wouldn’t, they fired me.”

Today, Segarra filed a wrongful termination lawsuit against the New York Fed in federal court in Manhattan seeking reinstatement and damages. The case provides a detailed look at a key aspect of the post-2008 financial reforms: The work of Fed bank examiners sent to scrutinize the nation’s “Too Big to Fail” institutions.

Segarra does not allege that Goldman was involved in the Fed’s decision to fire her, and I’m inclined to agree.

The nature of regulatory capture is that the regulators do the bidding of those that they regulate without being asked.

The question is how we fix this.

*Alas, I cannot claim credit for the bon mot describing Goldman Sachs as a, “great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” This was coined by the great Matt Taibbi, in his article on the massive criminal conspiracy investment firm, The Great American Bubble Machine.

This Says More About the University of Chicago Than They Would Like

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I’ve always wondered if the University of Chicago economics department was little more than than an attempt to engage in, “One of man’s oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness,” to quote John Kenneth Galbrath.

Now it appears that the whole damn school is exclusively structured for the purpose reinforcing privilege:

Back in May at the University of Chicago, this happened:

Two locksmiths with medical conditions were told to repair locks on the fourth floor of the Administration Building during the day. Stephen Clarke, the locksmith who originally responded to the emergency repair, has had two hip replacement surgeries during his 23 years as an employee of the University. According to Clarke, when he asked Kevin Ahn, his immediate supervisor, if he could use the elevator due to his medical condition, Ahn said no. Clarke was unable to perform the work, and Elliot Lounsbury, a second locksmith who has asthma, was called to perform the repairs. Lounsbury also asked Ahn if he could use the elevator to access the fourth floor, was denied, and ended up climbing the stairs to the fourth floor.

Clarke and Lounsbury were told they had to haul their asthma and hip replacements up four flights of stairs because the University of Chicago has had a policy of forbidding workers from using the elevators in this building, which houses the President’s office, during daytime hours. As the university’s director of labor relations put it: “The University has requested that maintenance and repair workers should normally use the public stairway in the Administration Building rather than the two public elevators.”

The problem is not just that the divide between rich and poor is too extreme, it is that we are going balls to the wall feudal as well.

It’s Jobless Thursday

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And the numbers suck, but as with the past few weeks, there are computer/reporting issues, so the accuracy is suspect:

Claims for U.S. jobless benefits jumped last week to the highest level in six months, providing the first statistical warning that the damage from the partial federal shutdown is starting to ripple through the economy.

 While half the increase came from California as the state worked through a backlog following a switch in computer systems, another 15,000 reflected the furlough of non-federal workers from employers losing government business, a Labor Department spokesman said as the data was released to the press. Applications (INJCJC) for unemployment insurance benefits surged by 66,000 in the week ended Oct. 5 to 374,000, the most since late March, figures from the Labor Department showed today in Washington.

Hopefully, we will start seeing some “normal” numbers in the next few weeks.

It’s Jobless Thursday

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The numbers look pretty good:

The number of Americans filing new claims for jobless benefits edged higher last week but remained at pre-recession levels, a signal of growing strength in the labor market.

Initial claims for state unemployment benefits rose 1,000 to a seasonally adjusted 308,000, the Labor Department said on Thursday.

The data could provide some of the strongest guidance this week on the health of the U.S. economy as a partial government shutdown delays the release of economic data, including the monthly employment report which was scheduled to be released on Friday.

In related news, we won’t get last month’s figures on Friday, because there literally three people left working at the Bureau of Labor Statistics.

It’s Jobless Thursday

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The number of initial claims, 292,000, sounds good, but there were problems with the statistics:

Initial jobless claims fell to their lowest level last week since the spring of 2006, the Labor Department said on Thursday. Or not.

The reported figure, which estimated that jobless claims had dropped to 292,000, about 31,000 fewer than the week before, seemingly suggested that the economy was finally entering a self-sustaining recovery on the back of a healing job market.

The number, however, is unreliable, the government said, skewed by upgrades on two state computer systems that caused those states to underreport claims. The total number of initial jobless claims is almost certainly higher than reported, though nobody knows the scope of the mismeasurement at this point.

The data malfunction has called into question the accuracy of a major leading indicator, one scrutinized by investors, economists and policy makers alike. It also shined a light on the imperfect and often outdated systems that states and the federal government use to provide benefits to workers and cull data on the labor market and the broader economy — a situation that some experts warn might become even worse because of the $1 trillion in budget cuts spread over 10 years known as sequestration.

The Labor Department would not confirm which two states had issues or guess as to the scope of the mismeasurement. But Nevada confirmed that it had not reported complete claims data to the federal government because of a computer upgrade.

So basically, the numbers won’t mean anything until next week, when the revision comes in.

The shortened Labor Day week probably skewed the numbers too, or at least made it harder for Nevada and a state to be named at a later date to get their act together with regard to the computer update..

The Best that Can Be Expected………

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I guess it was inevitable that former TARP Inspector General Neil Barofsky would have to find work.

Considering his background, taking a position in a large white shoe law firm tied in with finance was very likely and Jenner & Block appears to be much less evil than many of their competitors:

Neil Barofsky, the former prosecutor who brought transparency and accountability to the federal government’s 2008 bank bailout program as its first special inspector general, has joined Jenner & Block, a law firm based in Chicago, as a partner.

Mr. Barofsky, who was appointed by George W. Bush to oversee the $700 billion Troubled Asset Relief Program in late 2008, was a Washington outsider whose periodic reports on the program questioned Treasury officials’ claims of its effectiveness. He and his office drew criticism at times from those officials, as a result.

Mr. Barofsky left his post in 2011 to teach at New York University’s law school. He also wrote “Bailout,” a scathing account of his time in Washington that highlighted the problem of regulators who he said were for the most part captured by the institutions they were supposed to police.

In an interview, Mr. Barofsky said that joining Jenner & Block was a natural next step because the firm specialized in helping government agencies and major corporations with in-depth investigations of problematic practices. Such investigations, he said, are similar to the work he did at TARP. In addition, unlike many other large law firms, Jenner & Block represents clients bringing suits against large financial institutions.

“I can bring my experience investigating large financial institutions and complex financial transactions to a place that doesn’t just do defense work in this area,” Mr. Barofsky said. “This is an opportunity in private practice to help improve governance and have a truth-seeking role.”

Well, we’ll see how this goes, and he has done a real service in reporting on the corruption of the TARP as IG, and in his book about the experience, Bailout, which has probably earned him the undying enmity of Timothy Geithner, Eric Holder, and Barack Obama, and he deserves a lot of credit and a not inconsiderable payday, for that.

It’s Jobless Thursday

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Initial unemployment claims rose by 5,000 to 333,000, though the less volatile 4-week moving average fell to the lowest number in almost 6 years.

Continuing claims rose slightly.

It’s not a bad report, particularly when compared to Greece, where the May unemployment number was revised upward to 27.6%:

Greece’s jobless rate hit a new record high of 27.6 percent in May, official national data showed on Thursday as the country staggers under austerity linked to its international bailout.

Record joblessness is a nightmare for Greece’s two-party coalition government as it scrambles to hit fiscal targets and show there is light at the end of the tunnel after years of unpopular tax rises and cuts to wages and pensions.

Unemployment rose to 27.6 percent from an upwardly revised 27.0 percent reading in April, according to data from statistics service ELSTAT and was more than twice the average rate in the euro zone which stood at 12.1 percent in June.

This is grim, and the two mainstream parties have absolutely failed to do anything to fix this, and it is highly unlikely that they can do what it takes, given that step one is to stand up to German politicians spinning morality tales.

That leaves us with the left leaning SYRIZA party, or the the Fascist, nativist, and racist Golden Dawn party (see the party symbol on the right).

If history is true to form, the 1930s, it’s going to be the Fascists who win this, and given that we are already seeing Fascism lite in Hungary, this has very unpleasant historical echos.

It’s Jobless Thursday!!!

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Initial claims hit a 5 year low, with the 4-week moving average, continuing claims, and emergency claims falling as well.

Additionally, 2nd quarter GDP increase was adjusted up to a 1.7% annual rate (forcast was for 1.0%), though this was because the 1st quarter was revised down from 1.8% to 1.1%, meaning that the end position pretty much matched estimates.

It’s an artifact of the ill advised deal that gave us the sequester, because the federal spending cuts to a large degree offset good numbers from the manufacturing sector.

July job numbers come out tomorrow.

How Torture Comes Home, Part 55

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We now have a report that the CIA is hemorrhaging because its management sucks:

For the Central Intelligence Agency, he was a catch: an American citizen who had grown up overseas, was fluent in Mandarin and had a master’s degree in his field. He was working in Silicon Valley, but after the terrorist attacks of Sept. 11, 2001, he wanted to serve his country.

The analyst, who declined to be named to shield his association with the CIA, was hired in 2005 into the agency’s Directorate of Intelligence, where he was assigned to dig into Chinese politics. He said he was dismayed to discover that unimpressive managers wielded incredible power and suffered no consequences for mistakes. Departments were run like fiefdoms, he said, and “very nasty internecine battles” were a fixture.

By 2009, he had left the CIA. He now does a similar job for the U.S. military.

CIA officials often assert that while the spy agency’s failures are known, its successes are hidden. But the clandestine organization celebrated for finding Osama bin Laden has been viewed by many of its own people as a place beset by bad management, where misjudgments by senior officials go unpunished, according to internal CIA documents and interviews with more than 20 former officers.

So, how does this relate to torturers?

Because the torturers are people who are not that good at their jobs. If they were good, they wouldn’t have to break the law to create the illusion of results. (A quick Google shows that torture does not work)

Of course, between the torture fetishists of Bush and His Evil Minions™, and the torture apologists of Obama and His Evil Minions™, torture has become a ticket that you need to punch to advance in “the agency”.

So, because successive White Houses have institutionalized torture, they have also institutionalized incompetent agents who become incompetent managers who are fearful that their lack of ability will be exposed.

We have incentivized torture, incompetence, and corruption for people who want to have intelligence as a career path.

A New Definition of Chutzpah………

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Know your meme

Yes, John Pike, infamous as the Pepper Spray cop in Berkeley, who subsequently became a meme, and is now a poster boy for the banality of evil, has now filed for workmans’ comp:

The former UC police officer who was internationally condemned for pepper-spraying demonstrators at UC Davis is seeking workers’ compensation, saying he suffered psychiatric injury as a result of the November 2011 incident.

 John Pike has a settlement conference set for Aug. 13 in Sacramento, according to the state Department of Industrial Relations’ website and an Associated Press report.

 Pike was fired in July 2012, eight months after a task force investigation found that his action was unwarranted.

I’m beginning to think that the only folks out there with a bigger sense of entitlement than Congressional Republicans Newt Gingrich are bad cops.

Whenever the worm turns, and the scrutiny that they apply to others is applied to them, they employ every trick in the book to avoid justly deserved consequences.

Small Business Owners Are Complaining Because E-Verify Works, not Because it Doesn’t

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The Wall Street Journal writes about the problems that employers are having with E-Verify, the online worker verification system run by the INS.

The problem is not that the system is too buggy, its early problems have been ironed out, and it’s not too expensive, it’s free, no, for the small businesses interviewed, the problem is that works the way that it is supposed to:

Since January, Daniel VanLoh has turned away nine new dishwashers and one line cook from his four Atlanta, Ga., restaurants within days of hiring them.

 The reason: Not one was authorized to work in the U.S., according to background checks he ran on the job applicants using a federal verification system, known as E-Verify.

 He says he’s now struggling to fill six openings, with some job seekers simply walking away after hearing that the company uses the free, Internet-based system to check their immigration status.

This is the way that this is supposed to work.  Proper enforcement of worker verification is supposed to keep people who want to work illegally out of the job rolls.

Here is the money quote:

This month, Georgia required small employers to screen applicants with the system, a move that extended existing requirements for larger firms. At least 15 other states, including Arizona, Mississippi and South Carolina, have enacted laws in recent years requiring at least some, if not all, employers to run E-Verify checks on job applicants before hiring them. The laws don’t require employers to check existing employees.

Scott Whitehead, who operates an Atlanta landscaping service, began using E-Verify July 1. Over the past three weeks, he says he hasn’t found a single authorized worker among more than 50 applicants at his metro area firm, Unlimited Landscaping & Turf Management Inc. “Every immigrant who walks through this door is illegal” according to the online check, says Mr. Whitehead, whose firm has more than 100 employees.

He says the checks are shrinking the pool of applicants he’s able to hire. As he struggles to fill openings, existing maintenance workers, most of whom he pays about $14 an hour, are demanding higher wages.

(emphasis mine)

Gee without the possibility of easily recruiting workers who are willing to live in immigration status enforced peonage, his workers are asking for more money.

Hoocoodanode?

BTW, Whitehead’s solution is to engage in illegal discrimination:

The system is also bringing anxieties about productivity, he says. To avoid running afoul of the new Georgia law, Mr. Whitehead plans to hire only U.S. citizens who clear the system, even though, in landscaping, he has found that immigrant workers are generally more productive.

This is a violation of the civil rights law.

You cannot discriminate against legal workers on the basis of immigration status.

Unemployment is over seven percent, and if your crappy job cannot attract legal workers at a given wage, then raise the f%$#ing wage.

Why Janet Yellen will not Become the Federal Reserve Chairman

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Because she has ovaries:

The favored parlor game of the political-economic complex right now is guessing who will replace Ben Bernanke as chairman of the Federal Reserve. The clear front-runner is Federal Reserve Vice Chairman Janet Yellen. But she’s by no means a sure thing.

One important reason she’s not — and I don’t know another way to say this — is sexism, as evidenced by the whispering campaign that’s emerged against her.

The message isn’t always delivered in a whisper, of course. In May, Federal Reserve Bank of Dallas President Richard Fisher suggested on CNBC that if Yellen is chosen, the pick will have been “driven by gender.” That’s more of a shouting campaign.

Fisher hastened to add that Yellen is “extremely capable.” But, he said, “there are other capable people.” Capable people, I guess, who are male, and thus whose picks wouldn’t be driven by gender.

But Fisher’s comments aren’t the sort that matter in this process. They’re too crude. The significant doubts about Yellen are transmitted with more subtlety, and for months they’ve been coursing through the cloistered, close fraternity that will drive the selection of Bernanke’s successor.

If you look at the dynamics of the Obama administration and finance, at least under the auspices of (the now thankfully in private life) Timothy Geithner was contempt against those who lacked a Y chromosome.

Notwithstanding the presence of Valerie Jarrett, the Obama administration has many of the aspects of an old boy’s club, and even if you ignore the “boys” part, it is a club, and Larry Summers is most assuredly a part of that club, and Janet Yellen isn’t.

Johnny Cashing It Today

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Remember when I complained about ruining my shirt by leaving an uncapped pen in my pocket?

My dad, who follows my blog, sent me a bunch of dark colored shirts, including a black dress shirt.

Without thinking, I put on the black shirt today, and also grabbed a pair of black slacks.

I got comments on my style sense from about 5 people at work, the best being, “Johnny Cashing it today?”

I think that this is the closest that I have ever been to being fashionable in my life.

I Think that Carl Levin Just Suggested that Obama Fire James Clapper

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Seeing as how Levin is one of the most intelligence agency friendly Senators, so the fact that he is subtly suggesting that DNI Clapper be fired is a significant thing:

Senate Armed Services Committee Chairman Carl Levin (D-Mich.) said Tuesday that he was “troubled” by the testimony of Director of National Intelligence James Clapper and was unsure how Clapper could be held accountable.

………

The testimony prompted criticism from lawmakers and led to some calls for his resignation over the false testimony.

Levin said he wouldn’t go that far but suggested that the only way Clapper could be held accountable was if President Obama fired him.

“I’m troubled by that testimony, obviously,” Levin said at a breakfast roundtable hosted by The Christian Science Monitor.

“How do you hold him accountable? I guess the only way to do that would be for the president to, somehow or other, fire him,” Levin added. “I think he’s made it clear that he regrets saying what he said. I don’t want to call on the president to fire him, although I’m troubled by this.”

Actually, the distinguished gentleman from Michigan does want Clapper fired, he would not have brought it up, and then dismissed the suggestion, if he did not want Clapper gone.

It’s a Week for Good Court Rulings

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This one is a ruling that an unpaid internship must be an educational experience for the benefit of the intern, not an unpaid job:

Yesterday, a federal judge issued the first major ruling on the illegality of unpaid internships in recent years, challenging a rise in corporate reliance on uncompensated workers.

Judge William H. Pauley III ruled that Fox Searchlight Pictures violated U.S. and New York minimum wage laws by not paying two production interns for work done on the set of the movie “Black Swan.”

Pauley ruled that the interns had essentially completed the work of paid employees – organizing filing cabinets, making photocopies, taking lunch orders, answering phones – and derived little educational benefit from the program, one of the criteria for unpaid internships under federal law. Pauley also ruled that the plaintiffs were employees and thus protected by minimum wage laws.

“I hope this sends a shockwave through employers who think, ‘If I call someone an intern, I don’t have to pay them,’” Eric Glatt, one of the plaintiffs, told ProPublica. “Secondarily, it should send a signal to colleges and universities who are rubber-stamping this flow of free labor into the marketplace.”

It should also be noted that unpaid internships serve to keep poor people out numerous professions, because they cannot afford to work for free.