econscius

Occupy Wall Street Deposits At Bank Under FDIC Consent Decree For Falsifying Books

In FDIC, Financial Fraud, Occupy Wall Street Protests, Top 1% on November 9, 2011 at 12:21 am

Occupy Wall Street has raised over $500,000, depositing the money in a bank operating under a FDIC consent decree for falsifying its books – which is exactly the sort of bad banking behavior OWS claims to be protesting against on Wall Street. [1] [2] [3]

The FDIC enforcement action against Amalgamated Bank of New York, dated August 23, 2011, can be found here: http://www.fdic.gov/bank/individual/enforcement/2011-08-06.pdf.  The FDIC demands Amalgamated “shall take all steps necessary, consistent with provisions of this ORDER and safe and sound banking practices, to eliminate and correct unsafe or unsound banking practices, violations of law or regulation, all contraventions of regulatory policies or guidelines cited in the Report of Examination.” [4] 

OWS chose Amalgamated because it was the only union-owned bank in the United States [1], but Amalgamated recently sold a 40% position to, drum roll please, two billionaire investors, Wilbur Ross and Ron BurkleYes, OWS deposits are benefiting some of the very richest of the top 1%. [2] 

Day 14 Occupy Wall Street September 30 2011 Shankbone 49.JPG

Talking down the money raised thus far, Mr.Pete Dutro of the Occupy Wall Street finance committee said,”People see like $500,000 and they say ‘Wow that’s a lot of money’ but the reality is it’s not that much money.” [2] 

That is an interesting view coming from someone who is protesting the “1%” because many “1%” entrepreneurs would agree $500,00 is “not that much money”.  How much does it take to reach the top 1% of wage earners?  Just $343,927 pre-tax. [5]

Question: if Amalgamated Bank fails because of its bad loans and dodgy books, would Occupy Wall Street stand by its principles and oppose a bail out of Amalgamated depositors, including OWS itself, who hold funds in excess of FDIC insurance limits?

 

[1] http://www.fastcompany.com/1792790/for-some-financial-companies-occupywallstreet-is-a-great-marketing-hook?partner=rss

[2] http://www.teribuhl.com/2011/10/17/occupy-wall-streets-new-bank-under-fdic-enforcement-action/

[3] http://www.cnbc.com/id/44935914

[4] Page 20 of http://www.fdic.gov/bank/individual/enforcement/2011-08-06.pdf.

[5] http://www.taxfoundation.org/news/show/250.html

Occupy pictures from Wikipedia Commons.

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