U.S. Banks weigh whether to embrace or avoid progressive firebrand Ocasio - Cortez

[webfact]

U.S. Banks weigh whether to embrace or avoid progressive firebrand Ocasio - Cortez

By Pete Schroeder and Michelle Price

 

FILE PHOTO: Rep. Alexandria Ocasio-Cortez (D-NY) waits for a ceremonial swearing-in picture on Capitol Hill in Washington, U.S., January 3, 2019. REUTERS/Joshua Roberts/File Photo

 

WASHINGTON (Reuters) - Court, avoid or sideline?

 

Barely a month into the new Congress, financial lobbyists in Washington are already strategizing how to handle the star power of rookie Democrat lawmaker Alexandria Ocasio-Cortez.

 

The Democratic Socialist and Wall Street critic joined the 60-member House Financial Services Committee in mid-January and more than a dozen lobbyists interviewed by Reuters say the 29-year-old activist and former bartender is too high-profile to ignore.

 

Richard Hunt, chief executive of the Consumer Bankers Association, said he had not encountered a lawmaker like Ocasio-Cortez in more than 20 years in Washington. "She has the ability to influence unlike a lot of other freshmen."

 

The youngest woman ever to serve in Congress, Ocasio-Cortez has become a social media phenomenon with her posts and live-streams on everything from climate change to skin care tips attracting millions of followers across Twitter and Instagram.

 

The New York native has proved adept at using humor to explain complex concepts or rebuke opponents, often while preparing dinner or hanging out in her pajamas. A video of the lawmaker dancing outside her Congressional office last month has been viewed 21 million times.

 

An economics major and self-confessed "science nerd," Ocasio-Cortez campaigned on issues that put her at odds with the financial industry, including separating commercial and investment banking, breaking up large banks, and forgiving student debt.

 

Central to her campaign has been the rejection of corporate campaign dollars, closing off a traditional avenue for industry access and influence on Capitol Hill.

 

Now lobbyists fear that her enlarged platform will help the first-term junior lawmaker push her ideas into the mainstream and are trying to figure out how best to respond.

 

Lobbyists representing big banks, such as JPMorgan Chase & Co, Citigroup, Bank of America Corp, Wells Fargo and Morgan Stanley, which have embraced progressive causes such as diversity, inclusion, gun control or above-minimum wages, want to push these credentials. They also want to highlight how they employ thousands of people in Ocasio-Cortez's district in Queens and the Bronx, they said.

 

Smaller and mid-size firms, meanwhile, want to distance themselves from Wall Street titans and emphasize their critical role as community lenders.

 

Several financial lobbyists, noting she lacks a financial services background, said they were keen to meet with Ocasio-Cortez to explain their business models and issues.

 

Paul Merski, executive vice president at the Independent Community Bankers of America, said the group had contacted the lawmaker's office and was hoping to schedule a meeting. He added his focus would be to draw the distinction between larger financial firms and ICBA's members, which as small community lenders have built-up "tremendous goodwill" across the aisle.

 

Spokespeople for JPMorgan, Citigroup, Bank of America, Wells Fargo, and Morgan Stanley declined to comment.

 

Speaking to Reuters on the sidelines of a Capitol Hill event on Wednesday, Ocasio-Cortez said the appointment of progressives like her to the panel "sends a very powerful message" to the financial industry.

 

She said she wanted to pursue aggressive oversight and expose financial corporations' role in broader areas of concern, such as the detention of children in privately-funded facilities on the Mexico border.

 

"We can leap back in and say, what does a responsible financial sector looks like?"

 

"LIKE TALKING TO THE FBI"

Other lobbyists worry, however, engaging her could backfire, especially if Ocasio-Cortez uses social media to publicize the meeting. For example, she went on Twitter to name and shame corporate lobbyists at a Congressional freshman orientation event in December.

 

"The fear is, it's like going in to talk to the FBI, anything you do or say can be used against you," said one lobbyist for a major bank.

 

Lobbyists note how Ocasio-Cortez has already ignited a public debate on climate change and inequality by calling for a Green New Deal and proposing a 70 percent tax on income exceeding $10 million, an idea Nobel Laureate Paul Krugman has endorsed.

 

Waleed Shahid, a former campaign aide and a spokesman for Justice Democrats, the progressive group that recruited Ocasio-Cortez, said her ability to raise public awareness about complex issues had caught the establishment's attention.

 

"She can really explain what is happening with Wall Street in a way the public can understand it, and that's why Wall Street is terrified."

 

Speaking to Reuters, Ocasio-Cortez did not rule out listening to industry concerns to arrive at responsible regulation, but said "they have more than enough sympathetic ears" on the committee.

 

"We also saw in 2008 just a lot of advocacy for policies that were at its core totally irresponsible. But they were dressed up as conservative fair-minded measures," she added.

 

Saikat Chakrabarti, chief of staff for Ocasio-Cortez, whose Twitter handle is @AOC, had his own message for the industry: "@AOC is here to hold Wall Street accountable, not be your buddy," he Tweeted on Wednesday in response to this story.

 

The financial industry faced a similar challenge in 2012 when newly elected progressive firebrand Elizabeth Warren joined the Senate Banking Committee and her grilling of bank executives and regulators won her a national following.

 

But while Warren was well-known as a consumer advocate before joining Congress, she did not have the same social media platform as Ocasio-Cortez. Isaac Boltansky, director of policy research at Washington-based boutique investment bank Compass Point Research & Trading, said that whichever bank slips up next will get "taken to the woodshed in a way that we haven't seen before."

 

Often caught flatfooted by Warren, the industry hopes to rebuild bipartisan support it enjoyed in Congress before the 2007-09 financial crisis. And with many incumbent centrist Democrats smarting after Ocasio-Cortez called them out for doing big business's bidding, some see an opportunity to divide and conquer.

 

Several lobbyists told Reuters they believed they could isolate Ocasio-Cortez and other progressives on the financial services committee by building coalitions with moderate Democrats, such as fellow New York Representative Gregory Meeks, and centrist Republicans.

 

They said they would also lean on Committee Chairwoman Maxine Waters, a Democrat and a liberal who has pledged to work across the aisle, to rein in the progressive wing.

 

A spokeswoman for Waters declined to comment.

 

In a statement, Meeks said his priority this Congress would be to promote policies that "support our financial system, but ensure everyone benefits from its successes."

 

(Reporting by Pete Schroeder and Michelle Price; additional reporting by Lauren LaCapra in New York; editing by Neal Templin and Tomasz Janowski)

 

-- © Copyright Reuters 2019-02-07

[Puchaiyank]

This outspoken young New Yorker has the old established Washington do nothing male dominated Congress getting very nervous...she is shaking the place up...hasn't even been sworn in yet...I love the drama she brings to a boring establishment.

[mikebike]

AOC singlehandedly moves the Overton window!

 

The times they are a-changing... ????

[stevenl]

There is something wrong with the system when lobbyists think they can rein in the progressive wing (or any wing for that matter).

[helpisgood]

1 hour ago, webfact said:

 

"The fear is, it's like going in to talk to the FBI, anything you do or say can be used against you," said one lobbyist for a major bank.

 

It's about time!

 

After what Wall Street did in 2008 with their greedy schemes (CDOs!, etc.) to the US public and also affecting the rest of the world, it's an encouraging sign.  Some of those crooks - the more conniving in the financial world - in 2008 walked away from the disaster with bonuses, and I think only one banker was arrested.  Not much of a deterrence.

 

Meanwhile, people of more modest means are arrested for shoplifting just trying to make ends meet.  The following story is an example, although law enforcement here showed a lot of compassion:

 

https://www.yahoo.com/lifestyle/police-show-compassion-man-accused-shoplifting-terminally-ill-wife-200334056.html

 

[Chomper Higgot]

#HR1

 

Now!

[blazes]

IF ms AOC does not allow herself to be seduced by the blandishments of Wall St, she could prove to be the most important phenomenon in American life since Lincoln.

I fear that MS Hillary Lite from California will attempt to queer her pitch and water down (till it disappears) the radical challenge to "business as usual" presented by AOC.

A fascinating two years ahead.

[Boon Mee]

She's an empty-headed learned nothing in school disgrace. 

Trump nailed it when he stated America will never turn Socialist. 

[geriatrickid]

2 hours ago, Puchaiyank said:

This outspoken young New Yorker has the old established Washington do nothing male dominated Congress getting very nervous...she is shaking the place up...hasn't even been sworn in yet...I love the drama she brings to a boring establishment.

Far from it. She  has no understanding of the financial services industry in the USA. She is given to catch phrases and sloganeering, and  has not  offered viable alternatives. More importantly, she doesn't understand that this sector  adapts quickly and will find methods to circumvent laws and rules. 

There is no argument that there are a lot of things wrong with the investment services sector and that there are  unethical practices and inappropriate acts. However, the most effective way to deal with those weaknesses and failures is to use the existing laws and to hire  skilled investigators and prosecutors to enforce the laws. Compliance with the law will address much of what is wrong. If there are weaknesses in the  statutes after  there is enforcement, then the laws can be tweaked to address that.  One can have all the laws and rules one wants, but if there is no enforcement or a weak effort made to enforce, then nothing  will be accomplished.  

[Chomper Higgot]

4 minutes ago, Boon Mee said:

She's an empty-headed learned nothing in school disgrace. 

Trump nailed it when he stated America will never turn Socialist. 

She’s anything but empty headed.

 

Which is why the right wing are afraid of her.

[Chomper Higgot]

1 minute ago, geriatrickid said:

Far from it. She  has no understanding of the financial services industry in the USA. She is given to catch phrases and sloganeering, and  has not  offered viable alternatives. More importantly, she doesn't understand that this sector  adapts quickly and will find methods to circumvent laws and rules. 

There is no argument that there are a lot of things wrong with the investment services sector and that there are  unethical practices and inappropriate acts. However, the most effective way to deal with those weaknesses and failures is to use the existing laws and to hire  skilled investigators and prosecutors to enforce the laws. Compliance with the law will address much of what is wrong. If there are weaknesses in the  statutes after  there is enforcement, then the laws can be tweaked to address that.  One can have all the laws and rules one wants, but if there is no enforcement or a weak effort made to enforce, then nothing  will be accomplished.  

She understands allowing businesses to buy politicians is the reason why politics is working for businesses and not people.

 

And she understands how to get that message across to voters.

 

Your statement of how things are now is merely a statement of what she’s setting out to change.

[mikebike]

19 minutes ago, Boon Mee said:

...America will never turn Socialist. 

You are correct. America will never turn socialist. Many of the most popular policies in the USA already are socialist...

 

????????????

[IAMHERE]

A socialist governing the banks; gonna be interesting. Buy Gold.

[bristolboy]

4 hours ago, Puchaiyank said:

This outspoken young New Yorker has the old established Washington do nothing male dominated Congress getting very nervous...she is shaking the place up...hasn't even been sworn in yet...I love the drama she brings to a boring establishment.

She has already been both sworn in and sworn at.

[mcambl61]

3 hours ago, mikebike said:

AOC singlehandedly moves the Overton window!

 

The times they are a-changing... ????

 

[roobaa01]

both warren and cortez proposing economic illitrate ideas for they would lead to poverty and mass unemployment. it does make sense to conduct talks with economic illitrates.

 

wbr

roobaa01

[guest879]

she is a dumpster fire. almost as entertaining as trump on the opposite end of the spectrum.

[bristolboy]

24 minutes ago, roobaa01 said:

both warren and cortez proposing economic illitrate ideas for they would lead to poverty and mass unemployment. it does make sense to conduct talks with economic illitrates.

 

wbr

roobaa01

Nonsense. There is a huge volume of serious research showing that that marginal tax rates of 70% would do nothing at all to harm economic growth. If you're concerned about economic illiteracy, I suggest you take a close look at yourself.

[roobaa01]

9 minutes ago, bristolboy said:

Nonsense. There is a huge volume of serious research showing that that marginal tax rates of 70% would do nothing at all to harm economic growth. If you're concerned about economic illiteracy, I suggest you take a close look at yourself.

left wing politicians have no credentials in running a country economy successfully , the opposite is fallen aways true they " abort " economic successfully with their socialist crab examples are portugal, spain, italy, south africa, nicaragua, brazil, greece, cyprus, venezuela, cuba

 

wbr

roobaa01

[bristolboy]

14 minutes ago, roobaa01 said:

left wing politicians have no credentials in running a country economy successfully , the opposite is fallen aways true they " abort " economic successfully with their socialist crab examples are portugal, spain, italy, south africa, nicaragua, brazil, greece, cyprus, venezuela, cuba

 

wbr

roobaa01

Your economic illiteracy is showing. I could go into detail but in most of these countries you seem to assume that because they have severe econonic problems, it was because they were socialist. Most weren't and had a history of misrule from left or right. And I notice you avoid citing the economically developed nations of northern europe which are governed with large doses of what can only be called socialism and deliver a much better quality of life to most of their citizens than does the USA.

[JAG]

7 hours ago, bristolboy said:

Your economic illiteracy is showing. I could go into detail but in most of these countries you seem to assume that because they have severe econonic problems, it was because they were socialist. Most weren't and had a history of misrule from left or right. And I notice you avoid citing the economically developed nations of northern europe which are governed with large doses of what can only be called socialism and deliver a much better quality of life to most of their citizens than does the USA.

 If, as I suspect, he is an American, don't forget that they would regard me as a socialist! 

 

You would be an out and out Trotskyist! 

????

[JAG]

8 hours ago, guest879 said:

she is a dumpster fire.

Yes, I think she is quite hot too. 

[blazes]

2 hours ago, JAG said:

Yes, I think she is quite hot too. 

Too gummy....

[Ulic]

Avoid. 

[elmrfudd]

On 2/7/2019 at 9:02 AM, Chomper Higgot said:

She’s anything but empty headed.

 

Which is why the right wing are afraid of her.

AOC is vacuous and has no basic common sense or any basic understanding of how any principles of electricity, energy production or transportation actually function. 

 

But, it's a progressive liberal dream, so who cares if any of it is feasible, affordable or functional. Let's just destroy millions of jobs, billions if not trillions of dollars of tax revenue. The youth will want it, even if it is a ridiculous idea. Just put the word green in the title, so it must be great! 

 

The right isn't afraid of her, we are astounded people are stupid enough to listen to her ignorant ideas without having to make her explain what she is talking about with factual reality. 

 

[elmrfudd]

On 2/7/2019 at 1:12 PM, bristolboy said:

On 2/7/2019 at 12:46 PM, roobaa01 said:

both warren and cortez proposing economic illitrate ideas for they would lead to poverty and mass unemployment. it does make sense to conduct talks with economic illitrates.

 

wbr

roobaa01

Nonsense. There is a huge volume of serious research showing that that marginal tax rates of 70% would do nothing at all to harm economic growth. If you're concerned about economic illiteracy, I suggest you take a close look at yourself.

uh, no. if krugman thinks it a good idea, run like hell.

 

https://www.cato.org/publications/commentary/no-economists-dont-agree-70-percent-top-marginal-tax-rate-good-idea

 

[Solinvictus]

After reading the entire thread, wow. All of you who are dumping AOC, must think the current and past financial regulations are just fine? AOC, Bernie Sanders and E. Warren are being at the least, outspoken about them. Do you not appreciate that as middle-class (assuming) people?

 

I'm not much into the political teams but why do people bash her simply because she is more progressive? Ahh because she doesn't know how things work? Please elaborate.

 

Trickle-down economics is good on paper not reality. It has failed.

 

I think it was George Carlin that suggested lobbyists should wear the logos of their sponsors on their jackets just as NASCAR puts stickers on their cars.

[Solinvictus]

On 2/7/2019 at 7:29 AM, helpisgood said:

 

It's about time!

 

After what Wall Street did in 2008 with their greedy schemes (CDOs!, etc.) to the US public and also affecting the rest of the world, it's an encouraging sign.  Some of those crooks - the more conniving in the financial world - in 2008 walked away from the disaster with bonuses, and I think only one banker was arrested.  Not much of a deterrence.

 

Meanwhile, people of more modest means are arrested for shoplifting just trying to make ends meet.  The following story is an example, although law enforcement here showed a lot of compassion:

 

https://www.yahoo.com/lifestyle/police-show-compassion-man-accused-shoplifting-terminally-ill-wife-200334056.html

 

Nice post.

 

I guess Americans want further financial hardships. No worries. As long as they can fit into the "MAGA" social circle, they know they have someone they can trust and adhere too.  Thank you CNN and FOX.

 

Once again, Trickledown economics doesn't work.

[elmrfudd]

13 minutes ago, Solinvictus said:

After reading the entire thread, wow. All of you who are dumping AOC, must think the current and past financial regulations are just fine? AOC, Bernie Sanders and E. Warren are being at the least, outspoken about them. Do you not appreciate that as middle-class (assuming) people?

 

I'm not much into the political teams but why do people bash her simply because she is more progressive? Ahh because she doesn't know how things work? Please elaborate.

 

Trickle-down economics is good on paper not reality. It has failed.

 

I think it was George Carlin that suggested lobbyists should wear the logos of their sponsors on their jackets just as NASCAR puts stickers on their cars.

Massive tax increases to pay for more free stuff isn't an economic plan. 

 

Letting banks get away with what they did in 2008 is also a horrible thing. 

 

Don't blame it on capitalism, blame the govt that let it happen 

[Solinvictus]

On 2/7/2019 at 9:01 AM, geriatrickid said:

Far from it. She  has no understanding of the financial services industry in the USA. She is given to catch phrases and sloganeering, and  has not  offered viable alternatives. More importantly, she doesn't understand that this sector  adapts quickly and will find methods to circumvent laws and rules. 

There is no argument that there are a lot of things wrong with the investment services sector and that there are  unethical practices and inappropriate acts. However, the most effective way to deal with those weaknesses and failures is to use the existing laws and to hire  skilled investigators and prosecutors to enforce the laws. Compliance with the law will address much of what is wrong. If there are weaknesses in the  statutes after  there is enforcement, then the laws can be tweaked to address that.  One can have all the laws and rules one wants, but if there is no enforcement or a weak effort made to enforce, then nothing  will be accomplished.  

First off, please backup how she has no understanding of the financial industry.

 

Secondly, you talked about effective ways to deal with these issues of financial regulations etc as if they have not been tried before?