In an era where anyone can be an activist, even if only an armchair activist online, I invite you to participate in a Facebook action tomorrow and Wednesday.

On June 22, 23 and 24, Congress is scheduled to finalize the details on a financial reform package that politicians have promised us since the economy collapsed in 2008.

Prior to the 2008 collapse and recession/would-be depression that continuously threatens to become a full-blown economic disaster, few economists were talking about the need for greater regulation and financial reform that reverses the trend that had workers wages plummeting as corporate profits soared.  Joseph Stieglitz, and Naomi Klein

The conventional wisdom that the mainstream had been touting for the previous forty years had been the infinite wisdom of deregulation, slashing corporate taxes, leaving the global economy to what was often referred to as the invisible hand of the market – as if God were some sort of mercantilist who balanced the universe on buying and selling things, on supply being the ying to that demanding yang.  

To prevent the bill that Congress is drafting from changing the system too much, big Wall Street banks are spending $1.4 million per day to weaken the legislation.

To do your small part to raise awareness that this is happening, make your status update on Facebook this Tuesday and Wednesday a link to a website that will hopefully pique curiosity about financial reform from your politically inactive sister-in-law, apathetic high school friend, or co-workers of whom you know nothing of their politics.

MAKE THIS YOUR FACEBOOK STATUS ON TUESDAY JUNE 22:

“We have THREE DAYS to create strong financial reform. I support the strongest reforms to rein in Wall Street & protect consumers. Donate your status too! Americans for Financial Reform “

Americans for Financial Reform is a coalition of over 250 different organizations that have these main points as their platform for financial reform:

Establishing a Consumer Financial Protection Bureau that is independent, has broad enforcement authority, and the necessary funding to protect consumers. There should be no carve-outs or exceptions for car dealers or other special interest groups. 

Ending the “Casino Economy” and shining a light on the shadowy derivatives market, by creating new rules for this $600 trillion market that would require that banks’ bets be backed by capital. Congress must also ensure that the new regulations not be undermined by exemptions or enforcement gaps.

Holding Corporate Directors Accountable. Shareholders – the owners of public companies — need better tools to hold corporate directors accountable so they will be motivated to challenge executives who pursue excessively risky strategies. Congress must ease the way for shareholders to nominate candidates for corporate boards and give shareholders an annual advisory vote on executive compensation.

Ensuring comprehensive regulation of leveraged investment fund managers such as hedge funds, leveraged buyouts, and venture capital funds which now operate almost entirely without public oversight. Stronger House language is needed in conference to change this.
 
Addressing Systemic Risk by closing the Senate bill’s gaps in authority to regulate shadow banks and tomorrow’s riskiest financial companies. We must also separate high-risk speculative activities from the basic commercial banking business of making loans to consumers and businesses, through a Volcker rule strengthened by the Merkley-Levin amendment and Section 716’s separation of derivatives dealing from banks. Congress must also ensure that banks and speculators – not taxpayers – pay the costs when financial institutions fail.

Protecting investors by requiring all financial advisors to put their clients’ interest first. Without the changes in the House bill, brokers and insurance agents will be able to present themselves as advisors, but recommend products that they know are not in their customers’ best interests in order to turn a profit.

Reforming Bad Mortgage Lending Practices by creating strong, enforceable standards for home lending to protect American families’ largest investments – their homes – and to prevent lending abuses. Congress must also include provisions to protect families from losing their homes to foreclosure.

Taking on conflicts of interest and holding credit rating agencies accountable for stamping AAA seals of approval on the enormously risky products that brought down the economy. Congress should insulate the rating agencies from industry pressure to loosen standards by retaining the “Franken Amendment” to award rating assignments based on the agencies’ accuracy and value to investors. The strong House-passed liability language is also critical to giving investors the ability to hold credit rating agencies accountable.

Reforming Federal Reserve governance and increasing transparency by barring member banks from voting for regional Fed directors, giving the President and the Senate the right to select the powerful New York Fed president, and mandating audits of the Fed.

Call your House and Senate Conferee Members to bolster their support for meaningful reform:

Tom Harkin (D, IA)
Leonard Boswell – D, IA

To learn more, visit:  Ourfinancialsecurity.org
For interactive coverage of the conference when it is in session, visit SunlightFoundation