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Seventh Generation Founder: ‘The US Chamber Of Commerce Doesn’t Act In The Best Interest Of Business’

Last week, over 150 business leaders from major American companies came to the capital to tell Congress to “pass comprehensive climate change and energy policy legislation this year.” One of the corporate titans who participated in the We Can Lead effort was Jeffrey Hollender, the co-founder, executive chairman, and “chief inspired protagonist” of Seventh Generation, the leading producer of green household products. In an exclusive interview with the Wonk Room, Hollender had strong words for the U.S. Chamber of Commerce, explaining that it made sense for prominent companies like Nike and Apple to cut ties to the chamber over its opposition to climate action:

I think the U.S. Chamber of Commerce doesn’t act in in the best interest of business. They represent what was historically best for business. They represent exactly what’s the polar opposite of the future of business. The chamber is a voice of the energy industry, of the coal industry. As you’ve seen in the last couple of days, Nike gives up its position on the board, Apple resigns — businesses will increasingly abandon the chamber because they are just so wrong on this issue. Not that they’re not wrong on most issues, but they’re more wrong on this issue than they usually are.

Watch it:

Hollender further described membership in the U.S. Chamber of Commerce as a “reputational risk“:

These companies, like Nike and Apple, are taking a leadership position with their own energy efficiency initiatives. They don’t want to see a playing field where companies who abuse and pollute get benefits, and companies that are more efficient don’t. So, part of it is making sure the playing field is leveled. But I also think it’s undeniably important that the consumers of these companies would be embarrassed if they knew that Nike was sitting on the board of the chamber. I mean, I think it’s a reputational risk to be associated with the chamber, given their behavior.

Pausing in the Russell Senate building between meetings with senators from some of the 20 states in which Seventh Generation has manufacturing facilities, Hollender explained why capitalists like himself support the efforts of Sen. John Kerry (D-MA) and Sen. Barbara Boxer (D-CA) to craft legislation with a cap-and-trade and energy efficiency provisions to cut global warming pollution and promote clean energy investment. Responding to critics who claim that advocates of a green economy are “socialists” who want to “kill capitalism,” he said, “the fact that we should be responsible for the effect we have on other people, anyone who tells you that’s anti-capitalist is crazy.”

Hollender concluded that Congress should pass clean energy and climate legislation immediately, because it’s “right for business, right for the economy, right for jobs, and good for the future of the country.”

Goldman’s Boom And Citigroup’s Bust Underscore How Much Main Street Is Still Hurting

Goldman Sachs CEO Lloyd Blankfein

Goldman Sachs CEO Lloyd Blankfein

In the last few days, a flurry of banks have released their earning statements for the third quarter of this year, and the differences between the banks that are doing well and those that are doing poorly highlights just how little of the banking sector’s recovery — and the recent Dow surge — is trickling down to the rest of America.

On the one hand, Goldman Sachs made $3.19 billion in the last three months. On the other, Citigroup lost $3.2 billion and Bank of America lost $1 billion. And the difference is, while Citi and BofA are still getting clobbered by losses on consumer items like mortgages and credit cards (to the tune of $8 billion and $9.6 billion, respectively), Goldman is reaping the benefits of its trading business:

Bumper third quarter profits at Goldman Sachs and another loss for Citigroup on Thursday highlighted the gap between the financial resilience of Wall Street and the woes of Main Street, fresh evidence that two Americas are emerging from the crisis. The diverging performance of investment banks such as Goldman and the retail banking operations of the banks such as Citi is problematic for an Obama administration that wants a strong Wall Street but is also under pressure to tackle the plight of ordinary people.

As Kevin Drum noted, “[Goldman] made better bets than the other guys, but the kind of business that would indicate a recovering economy is still very much in the tank.”

But the problem is not simply that Goldman is making money trading currencies, commodities, and risky over the counter derivatives. It’s that Goldman is doing it thanks to significant government support. As National Economic Council Director Larry Summers explained, “there is no financial institution that exists today that is not the direct or indirect beneficiary of trillions of dollars of taxpayer support.” And indeed, Goldman “has had a lot of help”:

Critics charge that the lion’s share of Goldman’s profits comes from making big bets using cheap dollars printed by a Fed…It received $13 billion in the costly, widely questioned September 2008 rescue of insurer AIG. It has sold $22 billion in federally guaranteed debt under a plan the feds started to restore capital markets activity.

Perhaps most troubling is the fact that, in order to gain access to much of the government’s financial rescue effort, Goldman converted from an investment bank to a bank holding company (essentially an institution that, at least in part, takes deposits and lends). But its business activities “haven’t changed at all.” In fact, Goldman’s earnings report shows no sign of any lending activity whatsoever.

As Alan Schram, the Managing Partner of the Los Angeles based investment firm Wellcap Partners, wrote, “now that they are a regular commercial bank they actually trade more, which makes sense: if the US Treasury covered my losses, I would also be happy to take major risks.” And in the meantime, Citi and BofA’s mounting losses reveal that consumers aren’t any better off.

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