Financial oversight panel unveils climate risk plan
An interagency panel of financial regulators approved a series of recommendations Thursday meant to help the federal government identify and fend off climate-related risks to the financial system.The Financial Stability Oversight Council (FSOC) issued Thursday a long-awaited report on the ways climate change and the societal response to it can pose risks across the financial sector. The report does not order member agencies to take any direct regulatory action, nor does it call for mobilizing the financial sector against the fossil fuel industry. Instead, the FSOC report lays out a series of steps regulators should take to help the U.S.
If an unrelenting pandemic, legislative gridlock, a looming election in Virginia and a supply chain crisis weren't causing enough national anxiety, Washington has something else in store: a legitimacy crisis at the Federal Reserve. © Greg Nash Financial self-dealing is rotting our government
On Monday the Federal Reserve banned its officials from trading individual stocks after a growing scandal over personal stock trading during the pandemic by top federal reserve officials implicated Fed Chair Jerome Powell. Powell's trades likely weren't made with any insider knowledge, but the visual of America's economic stewards playing in their personal portfolios as the stock market burned is an unsavory one.
Climate advocates turn sights on Wall Street
The fight over climate change is increasingly focusing on Wall Street, with a key federal watchdog this week directing regulators like the U.S. Securities and Exchange Commission (SEC) to do what they can to lower emissions.Civil society advocates told The Hill that in addition to sending a signal to Wall Street, the move by a top interagency oversight group to label climate change an existential threat to the financial system aids Democrats'Civil society advocates told The Hill that in addition to sending a signal to Wall Street, the move by a top interagency oversight group to label climate change an existential threat to the financial system aids Democrats' efforts to use financial regulation as a tool in the climate fight
Powell's trades may be clean, but that certainly isn't the case for all involved. Regional Federal Reserve Presidents Robert Kaplan and Eric Rosengren both announced hasty retirement plans after media investigations into their trades revealed conduct that veers dangerously close to outright criminality.
Public trust in government sits near historic lows. If our nation wants to avoid a serious legitimacy crisis in the near future, Congress must act to shore up ethics at the highest levels. They can start by passing bold legislation to shore up ethics laws where necessary, and craft new laws where our recent experiences have revealed dangerous gaps.
Earlier this month, Sen. Elizabeth Warren (D-Mass.) called on the Securities and Exchange Commission (SEC) to investigate potential instances of insider trading at the Federal Reserve. That's a good start, but start picking at Washington's insider trading epidemic and you'll find a city awash in market-moving confidential information and a political elite trading on secrets with impunity.
Regulators must act to protect financial system from climate risk: report
Federal regulators must act quickly to require banks to insulate themselves and their customers against the potentially ruinous financial effects of both climate change and the energy transition, a new report by Public Citizen and Americans for Financial Reform found. The report is a wish list of policies that the two groups are putting out in advance of a key report on climate risk in the financial system from the Financial Stability Oversight Council (FSOC), which was mandated by a May executive order from President Biden.
On Oct. 21, Business Insider published a list of 43 lawmakers flagrantly violating the STOCK Act, a 2012 law designed to curb insider trading in Congress. That's because in most cases, the penalties for violating the STOCK Act are nonexistent. "While lawmakers who violate the STOCK Act face a fine, the penalty is usually small - $200 is the standard amount - or waived by House or Senate ethics officials," Insider's Dave Levinthal writes. And while watchdog groups have periodically pushed for tougher conflict-of-interest laws to rein in the worst excesses, it's been nearly a decade since any serious insider trading legislation made it to the president's desk.
Official self-dealing has become such an expected part of American public life that TikTokers have taken to monitoring lawmakers' stock trades, offering both critiques of their investment strategies and pointed criticism of elected officials mingling their access to private market information with their suspiciously-timed and surprisingly lucrative personal stock plays. The TikTok kids may be all right, but they shouldn't be responsible for policing the ethics of our lawmakers.
Japan's Princess Mako marries commoner, loses royal status
TOKYO (AP) — Japanese Princess Mako married a commoner and lost her royal status Tuesday in a union that has split public opinion and was delayed more than three years by a financial dispute involving her new mother-in-law. The marriage document for Mako and Kei Komuro was submitted by a palace official Tuesday morning and is now official, the Imperial Household Agency said. They will make statements at a press conference in the afternoon but will not take questions because Mako showed fear and unease at the questions that would be posed, the agency said.
At the same time the Federal Reserve was putting in place basic safeguards to make corruption a little bit harder, the Office of Congressional Ethics was addressing Rep. Mike Kelly's (R-Pa.) shady financial dealings. With the help of his wife, Kelly earned a tidy profit during the Trump administration by trading in the stock of a local steelmaker based on privileged information Kelly picked up during the course of his legislative work.
"The ethics report details an aggressive push by Kelly, who worked closely with the company while pressing administration officials, including Mark Meadows, who was Trump's chief of staff at the time," the Associated Press reported. After Kelly's lobbying resulted in Trump administration action to protect domestic steel, "Word of the development spread quickly through Kelly's office, and the following day - several days before the announcement was made public - Victoria Kelly purchased between $15,001 and $50,000 worth of stock in the company."
But despite Kelly offering a flagrant example of government corruption, it's unlikely he'll face serious consequences due to a congressional accountability structure shot through with holes. Fortunately, Congress can address these gaps by passing legislation requiring the House Ethics Committee to follow through on referrals for subpoenas or further investigation made by the Office of Congressional Ethics.
Flaws in the Section 8 program leave poor people trapped in ‘monstrous, depressing places’
As more white people moved out of public housing and Black people moved in, the federal government let thousands of apartments fall into disrepair. Now, Black people make up about 13% of the U.S. population but more than 40% of the tenants who live in the nation’s roughly 1 million public housing units. In large urban centers, they often make up the overwhelming majority of public housing tenants. More in this series: Section 8 housing program reinforces a Jim Crow pattern in the South, data shows © Josh Morgan/The Greenville News Theresa Mozzee, 59, takes her daily medication in bed before having a meal.
Laws will help control the rising tide of insider trading among our leaders. But we must also ask why so many lawmakers and officials from both parties feel no shame engaging in transparently crooked financial schemes. Replacing norms with laws makes enforcement more reliable. Replacing the outcome-based morality that is currently eating away at Washington will prove harder.
Of course, we could also address the problem directly by banning lawmakers from buying and selling individual stocks while they serve the national interest. That's an idea supported by 67 percent of Americans - and an easy political winner for Democrats and Republicans.
After years of barely-veiled corruption by those elected to serve us, only a complete firewall between personal financial profit and public service can restore public trust in our institutions.
Max Burns is a Democratic strategist and founder of Third Degree Strategies, a progressive communications firm. Follow him on Twitter @themaxburns.
UK tells private sector it must invest big to save planet .
GLASGOW, Scotland (AP) — Britain called Wednesday for the world's financial industry to channel its vast funds towards greener investments to ensure that global efforts to curb global warming succeed. Treasury chief Rishi Sunak said that while the U.K. government is providing fresh financing to help poor countries cope with climate change, “public investment alone isn’t enough.” Speaking at the U.N. climate summit in the Scottish city of Glasgow, Sunak said U.K.