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Economy

Sen. Sherrod Brown On JP Morgan’s Trading Mess: ‘These Banks Are Not Just Too Big To Fail, They’re Too Big To Manage’

Sen. Sherrod Brown (D-OH)

The ill-advised trade that recently cost JP Morgan Chase billions of dollars has refocused some of the federal government’s attention back on Wall Street and the Dodd-Frank financial reform law. The White House has said that it will push harder to implement a robust version of the Volcker Rule, which is meant to rein in banks’ risky trading.

ThinkProgress spoke today with one of the foremost financial reform advocates in Congress, Sen. Sherrod Brown (D-OH). Brown said that JP Morgan’s trading mess proves banks are not only too big to fail — meaning they are explicitly backed by the government and will be rescued if they blow themselves up — but simply “too big to manage”:

Q: What’s your takeaway from JP Morgan Chase and their trading mess, particularly given that [CEO Jamie] Dimon was one of the most vocal critics of Dodd-Frank?

BROWN: That these banks are not just too big to fail, they’re too big to manage. Jamie Dimon’s smart, he’s articulate, he’s probably a good manager, he’s probably a good CEO. I don’t like his public persona in terms of what he’s done to weaken these regulations and to undercut them. They lost their fights in Congress, now they’re organizing to win them in the regulatory agencies. But I think, if he can’t manage a bank this size, it probably isn’t manageable. I think these banks will be stronger and healthier and probably more profitable if they’re smaller.

Watch it:

Former Federal Reserve Chairman Paul Volcker — whose names graces the Volcker Rule — made the same point yesterday, saying, “Maybe this JPMorgan thing is an illustration that these (banks) are really too big to manage…There are so many things going on at these banks.” Brown recently reintroduced legislation that would force the six biggest banks in the nation to shrink. The bill was rejected in 2010 during the debate over Dodd-Frank, but Brown recently told the Financial Times that he feels more optimistic about its chances now.

NEWS FLASH

New Super PAC will back Republican candidates who support marriage equality | The PAC will be financed, in part, by Paul Singer, a billionaire hedge fund manager. The New York Times reports: “Now, Singer says, he’s providing $1 million to start a new ‘super PAC’ with several Republican compatriots. Named American Unity PAC, its sole mission will be to encourage Republican candidates to support same-sex marriage, in part by helping them to feel financially shielded from any blowback from well-funded groups that oppose it.”

Climate Progress

Romney Energy Plan Includes Drilling ‘Virtually Every Part’ Of U.S., No Protections For National Parks

By Jessica Goad

Republican presidential candidate Mitt Romney is no stranger to attacks on the environment, as seen in his ads against clean energy jobs, his pledge to roll back fuel economy standards that protect public health and reduce carbon pollution, and the fact that he doesn’t know “the purpose of” public lands that belong to all Americans.

But this morning’s Washington Post sheds more light on Romney’s energy plan, including the fact that he would open up “virtually every part of U.S. lands and waters” to drilling regardless of whether they are national parks, national monuments, or protected in some other way.  As the Post reports:

Asked whether any place would be off limits for oil drilling, campaign spokesman Andrea Saul said, “Governor Romney will permit drilling wherever it can be done safely, taking into account local concerns.”

Current law sets some public lands and waters off limits to drilling, including national parks, national monuments, and wilderness areas.  These places are protected for other uses like hunting, fishing, sightseeing, and recreation.

Presumably, if there was oil and gas found there, Romney would allow drilling in places like the Grand Canyon, Arches National Park, Glacier National Park, Yellowstone, and Isle Royale National Park in the Great Lakes, regardless of its impacts on them.  In essence, he would take lands that belong to all Americans and turn them over to oil companies.

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Election

Republicans Block Online Disclosure Of Campaign Television Ad Spending

The Supreme Court’s Citizen United decision has created a flood of television ad spending — hundreds of millions of dollars — from outside groups, corporations, and individuals. The Justices who voted for the decision and its supporters argue that disclosure is all voters need to make informed decisions. But yesterday, a panel of House Republicans moved to keep much of this spending in the dark.

A new FCC guideline that would have forced the nation’s top television stations to list the funders behind political advertisements online.

But the House Appropriations financial services subcommittee voted along party lines to prohibit the FCC from implementing their proposal to add another layer of transparency to the political ad process. Committee Chair Hal Rogers (R-KY) argued that fiscal matters are private and should remain that way, according to the LA Times:

The proposal, which had cleared the Federal Communications Commission in April, would require TV stations affiliated with the four top networks in the 50 largest markets to post political ad sales records online. Stations are already required to make the records available to the public upon request, but most stations keep them in paper files, making it difficult to compile and track the information.

Democrats on the subcommittee tried, unsuccessfully, to strip the rider which blocked the FCC from the funding bill. Despite several groups and media organizations calling for the records to be posted online, the TV stations themselves have bristled at the idea of making those records publicly available. A widely circulated video made by journalism students at Kent State shows the difficulty they faced in attempting to get hard copies of those records. Political operatives and other insiders will get access to much of the information through high-priced subscription services.

Climate Progress

How Biodiversity Loss is Like LeBron James & Miami Heat

JR: With game 7 of Heat vs. Celtics tonight, it seems like an apt time for this repost.

AP photo

by Michael D. Lemonick, via Climate Central

Ecologists have been saying for decades now that the world is in the midst of a biodiversity crisis. Hundreds of species are vanishing every year, thanks to assaults to the environment that include deforestation, overfishing, toxic pollution and, increasingly, climate change — the lethal icing on an already poisoned cake. Twenty years ago, 150 countries signed the international Convention on Biodiversity to try and hold back the tide of extermination, but without much success: Scientists are now saying the planet may be going through its sixth mass extinction in the past 540 million years, and the first caused by humans.

But experts haven’t been so good at explaining exactly why this is such a terrible thing. “Most of the arguments have been based on the idea that biodiversity has some intrinsic value,” said Bradley Cardinale, an ecologist at the University of Michigan, in an interview yesterday. “We like it. It’s pretty. The Pope says we should conserve God’s creation. Maybe we’ll find new medicinal plants in the rainforest.”

In a new paper just published in Nature, however, Cardinale and 17 colleagues have made a much more solid argument. “We’re saying that biodiversity does things that are really important,” he said. “There’s really strong evidence that if we lose biodiversity, it will, among other things, affect food production and fresh water supplies and increase the frequency of pests and diseases that affect crops and animals.”

The paper is what’s known as a meta-analysis: the 18 authors, all of them leaders in the field of ecology, gathered more than a thousand studies published over the past 20 years that looked at biodiversity from a myriad of angles. Then they looked at whether differences in biodiversity affected an ecosystem’s ability to do useful things — the ability of a forest to remove carbon from the atmosphere, for example, or supply wood for construction; the ability of bacteria in a stream to neutralize pollutants; the ability of natural predators and parasites to control agricultural pests.

The answer, it turns out, is yes, to these and many other similar questions. In many cases, it boils down to two primary reasons. The first is that the most diverse ecosystems tend to include what the scientists call “super species.” Say you’re talking about the capacity of a diverse forest to produce wood, or to take carbon from the air, Cardinale said.

“About 50 percent of that effect will come from a single, highly productive species,” he said. The other half comes from a wide variety of other species that occupy different niches, grow at different rates. “It’s like the Miami Heat,” he said. “Half of their productivity comes from LeBron James, but without a strong supporting cast of players, that would not be enough.”

This 50-50 rule is one of six major “consensus statements” all of the scientists were able to agree on, even though some of the 18 disagree with others on narrower details. The others, paraphrased:

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Climate Progress

Open Thread Plus Climate Cartoon Of The Week

A penny for your cyber-thoughts.

http://www.stephaniemcmillan.org/codegreen/comics/2012-06-04-new-campaign.jpgHow about crowd-sourcing some real pennies for cartoonist, Stephanie McMillan, who has given me permission to reprint her cartoons. Here’s the link to Paypal where you can donate to her if you like her cartoons.  CLICK HERE (then click where it says DONATE).

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