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Global Power Project, Part 9: Banking on Influence With Morgan Stanley

Global Power Project, Part 9: Banking on Influence With Morgan Stanley

By: Andrew Gavin Marshall

Originally published at Occupy.com

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Part 1: Exposing the Transnational Capitalist Class

Part 2: Identifying the Institutions of Control

Part 3: The Influence of Individuals and Family Dynasties

Part 4: Banking on Influence with JPMorgan Chase

Part 5: Banking on Influence With Goldman Sachs

Part 6: Banking on Influence With Bank of America

Part 7: Banking on Influence with Citigroup

Part 8: Banking on Influence with Wells Fargo

Morgan Stanley, one of the largest banks in the United States, reported a 66% increase in earnings in July over the same period last year. Morgan Stanley had taken more than $107 billion of U.S. taxpayer money through the bailout programs in the wake of the financial crisis that it helped to create, making it the largest U.S. recipient of bailout funds.

Like the other big banks, Morgan Stanley had been busy paying settlements for the massive criminal fraud conspiracies it engaged in, particularly related to the housing crisis. In 2011, the banks came to a $40 million settlement with the state of Nevada over mortgage fraud.

In 2012, Morgan Stanley paid a settlement of $4.8 million regarding electricity price-fixing charges leveled against the bank in New York State, costing consumers roughly $300 million, after generating $22 million in revenue for the bank. In a settlement over foreclosure fraud in 2013, the bank along with Goldman Sachs agreed to pay $557 million to more than 200,000 homeowners who had been foreclosed on.

A former real estate executive for Morgan Stanley pleaded guilty in 2012 to violating anti-corruption laws, and was “charged with secretly acquiring millions of dollars’ worth of property investments for himself and a Chinese government official.” In 2012, one Morgan Stanley executive was charged with a hate crime for using racial slurs and stabbing a cab driver of Egyptian descent, after having refused to pay the cab fare.

And yet it’s not simply enough for this financial behemoth to defraud the American public and profit from the economic crisis it helped create. It has also managed to profit from increasing hunger and land grabs across the so-called Third World. As big banks speculate on food prices, they drive the costs of food up, sparking food riots and increasing hunger across much of the world while making banks a nice profit in the process.

The three financial institutions most active in food speculation are Barclays, Goldman Sachs and Morgan Stanley. Thus, as millions more people get pushed into hunger, rest assured: Morgan Stanley will be there to swoop up the profits, as untold numbers of people get displaced and foreign investors purchase their lands at giveaway prices. In just one example, Morgan Stanley bought 40,000 hectares of land in Ukraine.

Thus, based on mortgage fraud, the housing crisis, bailouts, the food crisis and the great global land grabs, it’s fair to say that Morgan Stanley is a bank seeking profits at the expense of people, the environment and the world at large. The Global Power Project investigated 24 individuals on both the executive committee and board of directors of Morgan Stanley. The most highly represented institution shared by elites at Morgan Stanley is the Council on Foreign Relations, with six individual affiliations between the two organizations.

It is followed by four mutual affiliations with McKinsey & Co., and three affiliations each between the bank and the former Merrill Lynch (now owned by Bank of America), Columbia University, the Brookings Institution, and the Peterson Institute for International Economics. Further, the bank has two individual affiliations with each of the following: the World Economic Forum, the Business Council, Merck & Co., President Obama’s Economic Recovery Advisory Board, PricewaterhouseCoopers (PwC), the Conference Board, the Bank of Tokyo-Mitsubishi UFJ, Mitsubishi UFJ Financial Group, Stanford University and Alcoa.

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Meet the Elites

James P. Gorman is Chairman and CEO of Morgan Stanley, a former executive at Merrill Lynch, and a former Senior Partner at McKinsey & Co. He is a current member of the Board of Overseers of Columbia Business School, a member of the Business Council, the Partnership for New York City, the Financial Services Forum, the board of directors of the Institute of International Finance, and the International Advisory Panel of the Monetary Authority of Singapore.

Klaus Kleinfeld is on the board of directors of Morgan Stanley, and is Chairman and CEO of Alcoa, the world’s leading aluminum producer. Kleinfeld is also the former CEO of Siemens and a former director of Citigroup. He is a member of the Supervisory Board of Bayer AG, Chairman of the Board of the U.S.-Russia Business Council, a Trustee of the Conference Board, and a member of the Business Roundtable, the Board of Trustees of the Brookings Institution, the International Business Council of the World Economic Forum, the board of directors of the World Economic Forum USA, the board of directors of the U.S. Chamber of Commerce, and the Steering Committee of the Bilderberg Meetings.

Hutham S. Olayan is Senior Executive Director of the Olayan Group, President and CEO of Olayan America Corporation, and is a Trustee of the American University of Beirut. She is a member of the board of directors of the Peterson Institute for International Economics, a member of the International Board of the U.S.-Middle East Project, and a member of the International Advisory Council of the Brookings Institution. She is founding member of the Arab Bankers Association of North America, a member of the board of the MasterCard Foundation, a member of the International Advisory Board of the Blackstone Group, a member of the boards of Georgetown University and the Memorial Sloan-Kettering Cancer Center and is a Counselor of the Conference Board. Olayan is a member of the Advisory Council of the Carnegie Middle East Center and is a member of the Council on Foreign Relations.

James W. Owens is the former Chairman and CEO of Caterpillar, and a member of the board of directors of IBM, Alcoa and the Council on Foreign Relations. Owens is also Chairman of the Executive Committee of the Peterson Institute of International Economics, a Senior Advisor to Kohlberg Kravis Roberts & Co. (KKR), a former Chairman of the Executive Committee of the Business Council, and a former member of President Obama’s Economic Recovery Advisory Board. He is currently a member of the Board of Trustees of North Carolina State University.

Laura Tyson, who sits on the board of Morgan Stanley, is Professor of Global Management at the Walter A. Haas School of Business at the University of California Berkeley, and is former Dean of the London Business School and former Dean of Haas Business School. Tyson was the former National Economic Adviser to President Clinton from 1993 to 1996 and was a member of President Clinton’s National Security Council and Domestic Policy Council, as well as Chair of the White House Council of Economic Advisers. Tyson was director of the Council on Foreign Relations from 1997 to 2007, where she remains as a member, and is also a member of the MIT Corporation, as well as a former member of President Obama’s Economic Recovery Advisory Board. A Senior Advisor to McKinsey Global Institute, Credit Suisse Research Institute, The Rock Creek Group, and a Senior Fellow of the Center for American Progress, Tyson is currently a member of President Obama’s Council on Jobs and Competitiveness and has been a member of the Foreign Affairs Policy Board to the U.S. Secretary of State since 2011. She is also a member of the Advisory Council of the Brookings Institution Hamilton Project, a member of the board of AT&T, a former member of the board of Eastman Kodak Company from 1997 to 2011, and a member of the board of CB Richard Ellis and Silver Spring Network. Tyson is additionally a former director of New America Foundation, a former member of the board of the Peterson Institute of International Economics, and currently sits as a member of the Committee on Capital Markets Regulation, the Global Agenda Council of the World Economic Forum, the advisory board of Generation Investment Management and H&Q Asia Pacific, as well as a member of the National Academies’ Board on Science, Technology and Economic Policy and on the board of directors of the Committee for Responsible Federal Budget.

At Morgan Stanley, like elsewhere among the big Wall Street banks, an elite class of individuals connected through their institutional affiliations and social groups exert incredible influence over finance, corporations, the government, media, policy, educational institutions and global society at large. Regardless of the immense suffering that Morgan Stanley and its like institutions inflict on the world, so long as it is able to profit from that suffering, it considers itself safe and secure.

Too big to fail. Too big to jail. Too cancerous to care.

Andrew Gavin Marshall is a 26-year old researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, chair of the Geopolitics Division of The Hampton Institute, research director for Occupy.com’s Global Power Project, and hosts a weekly podcast show with BoilingFrogsPost.

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Global Power Project, Part 6: Banking on Influence With Bank of America

Global Power Project, Part 6: Banking on Influence With Bank of America

By: Andrew Gavin Marshall

Originally posted at Occupy.com

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Part 1: Exposing the Transnational Capitalist Class

Part 2: Identifying the Institutions of Control

Part 3: The Influence of Individuals and Family Dynasties

Part 4: Banking on Influence with JPMorgan Chase

Part 5: Banking on Influence With Goldman Sachs

This July, Bank of America was expecting to report an earnings increase of 32% from last year. The Washington Business Journal declared the bank among the top 10 “most improved brands” of the year. Bank of America is the second-largest bank in the United States following JPMorgan Chase.

So why does this bank deserve such an “improved” reputation? Perhaps it’s worth looking at a little of the bank’s record for some clarity.

During the first year of the global financial crisis, which the big banks helped to create and which they profited enormously from, the government stepped in to bail out Bank of America. They rewarded the bank $20 billion for its massive financial crimes, as well as a special guarantee for nearly $100 billion of potential losses on the balance sheets of Merrill Lynch, which Bank of America acquired during the crisis.

As it turns out, Bank of America and other big banks continue to get “backdoor bailouts” through the Federal Reserve Bank of New York, which acts as a legal guarantor and protector of the Wall Street chain gang of criminal conglomerates. The bank was recently added to a list, compiled by a corporate watchdog group, of the “dirty dozen” criminal financial institutions for its role deceiving investors, committing mortgage and foreclosure abuses and engaging in municipal bond rigging and illegal payments.

When Matt Taibbi wrote in Rolling Stone that Bank of America was “a hypergluttonous ward of the state whose limitless fraud and criminal conspiracies we’ll all be paying for until the end of time,” he wasn’t exaggerating. The bank foreclosed on tens of thousands of Americans through a “mass perjury” scheme and pushed worthless mortgages on pension funds and unions. As several big banks – including BofA, JPMorgan, Wells Fargo and Citigroup – agreed to pay a $25 billion settlement with the government over “abusive mortgage practices,” the Department of Justice granted the banks what amounted to legal immunity “from civil government claims over faulty foreclosures.” In January, Bank of America settled to pay $11.6 billion to the government-controlled mortgage company Fannie Mae in response to a legal battle over “bad loans.”

In June of 2013, six former BofA employees and one contractor issued sworn statements in which they accused the bank of lying to homeowners, fraudulently denying loan modifications and paying bonuses to staff who pushed people into foreclosure. One of the whistleblowers commented, “we were told to lie to customers.” Employees that pushed ten or more homeowners per month into foreclosure would receive a $500 bonus, and the Bank also “gave employees gift cards to retail stores like Target or Bed Bath and Beyond as rewards for placing accounts into foreclosure.”

Further, anyone who “questioned the ethics” of the bank’s practices was summarily fired – a policy that led to a lawsuit in which homeowners accused the bank of racketeering “to defraud homeowners who sought modifications and then acted as the kingpin of that [racketeering] enterprise.”

Of course, it doesn’t end there. Bank of America, along with multiple other big banks, has been accused of laundering money for Mexican drug cartels. The FBI confirmed that BofA was involved in laundering drug money for the Los Zetas drug cartel in Mexico. However, in a twist of fine news for the bank, U.S. government regulators indicated they would not hold the bank responsible for its actions.

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Banking on Influence

So how does a massive criminal enterprise engaging in large-scale fraud, racketeering and money laundering get a free pass from the U.S. government? The bank’s financial clout in the economy certainly plays a part. But so too do its affiliations with dominant national and international organizations, institutionalizing the bank within the larger global power structures and the elites who run them.

Research conducted for the Global Power Project found 28 individuals at Bank of America, including executives and members of board of directors, with institutional affiliations. Four of the individuals who hold leadership positions at BofA are also affiliated with the major foreign-policy think tank in the United States: the Council on Foreign Relations. Three individuals are connected to Morgan Stanley, another major financial institution, while two affiliations exist with the World Business Council for Sustainable Development (promoting big business “solutions” to environmental crises), the Business Council, Catalyst, Duke University, Stanford University, and BlackRock.

The following institutions each also hold one individual affiliated with Bank of America: Royal Dutch Shell, DuPont, Deere & Company, the World Wildlife Fund, the President’s Export Council, Harvard, the World Economic Forum, Brookings Institution, Sara Lee Corporation, Monsanto, CBS Corporation, BAE Systems, General Dynamics, Walt Disney Company, President Obama’s Council on Jobs and Competitiveness, the Rockefeller Foundation, Business Roundtable, Financial Services Forum, PepsiCo, Carlyle Group, Booz Allen Hamilton, Goldman Sachs, the International Advisory Panel of the Monetary Authority of Singapore and the International Advisory Board of the National Bank of Kuwait.

Meet the Elites

Bank of America’s CEO, Brian T. Moynihan, was a former executive vice president at Fleet Boston and director of BlackRock. He is currently a member of the Business Roundtable and Vice Chairman of the Financial Services Forum, as well as being a member of the International Advisory Panel of the Monetary Authority of Singapore.

Charles O. Holliday, Jr. is the Chairman of the Board of Bank of America and a director of Royal Dutch Shell, and was the CEO of DuPont from 1998 to 2009. He was the former Chairman of the World Business Council for Sustainable Development, the Business Council, Catalyst, the Society of Chemical Industry, and is a founding member of the International Business Council. Holliday is a director of Deere & Company, a member of the board of Planet Forward, Climate Works Foundation, the Nicholas Institute for Environmental Policy Solutions at Duke University, and is a member of the board of directors of the National Geographic Education Foundation and the World Wildlife Fund (WWF).

Mukesh D. Ambani is a member of the board of Bank of America and is the Chairman and Managing Director of Reliance Industries. He is a member of the Global Board of Advisors of the Council on Foreign Relations, a member of the Prime Minister’s Council on Trade and Industry for the Government of India, a member of the board of governors of the National Council of Applied Economic Research in New Delhi, and a member of the Millennium Development Goals Advocacy Group. Ambani is also a member of the Foundation Board of the World Economic Forum, a member of the Indo-U.S. CEOs Forum, a member of the International Advisory Board of the National Bank of Kuwait, Vice Chairman of the World Business Council for Sustainable Development, and a member of the Advisory Council of the Graduate School of Business at Stanford University. Additionally Ambani is a member of the Business Council, the India-Russia CEO Council, Co-Chair of the Japan-India Business Leader’s Forum, Chairman of the Board of Governors of the Indian Institute of Management, and is a member of the International Advisory Council of the Brookings Institution.

Monica C. Lozano is Chairman and CEO of ImpreMedia and CEO of La Opinion, as well as a member of the board of directors of the Walt Disney Company. She is also a member of the Board of Regents of the University of California, a Trustee of the University of Southern California and a director of the Weingart Foundation, as well as a member of the board of directors of the Commission of the 21st Century Economy. Lozano was a member of President Obama’s Economic Recovery Advisory Board from 2009-2011, and has since been a member of President Obama’s Council on Jobs and Competitiveness as well as a member of the Board of Trustees of the Rockefeller Foundation and a member of the Council on Foreign Relations.

Charles O. Rossotti is a senior adviser to the Carlyle Group and was the Commissioner of the IRS from 1997 to 2002, also sitting on the board of directors of Booz Allen Hamilton, Quorum Management Solutions, Primatics Financial and AES Corporation. He too is a member of the Council on Foreign Relations.

Linda P. Hudson, who sits on the board of BofA, is the President and CEO of the military contractor BAE Systems, and former Vice President of General Dynamics. Hudson sits on the board of the Smithsonian National Air and Space Museum and on the executive committee of the Aerospace Industries Association. She is a member of the University of Florida Foundation Board and the International Women’s Forum.

Anne M. Finucance, who is the Global Strategy and Marketing Officer at Bank of America, is also a director of Partners HealthCare System, CVS Caremark Corporation, a trustee of Stonehill College and Carnegie Hall, and a member of the Council on Foreign Relations. Finucance sits on the boards of the John F. Kennedy Library Foundation, the American Ireland Fund, the International Center of Journalists, and the National September 11 Memorial & Museum.

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Banking on America?

Bank of America is, in short, a profound symbol of much that is wrong on Wall Street: massive fraud, money laundering, racketeering, conspiracy, and weighty influence in Washington and beyond. Surely it’s comforting to know that a woman who sits on the board of BofA, Monica Lozano, also sits on President Obama’s Council on Jobs and Competitiveness, advising the president as to how to appropriately manage the economic “recovery”. In terms of the media reporting on Bank of America’s crimes, Lozano, as CEO of a media company and board member of the Walt Disney Company, along with BofA board member Charles K. Gifford — who sits on the board of directors of CBS Corporation — signal that a “fair” portrayal of the bank’s activities aren’t exactly what the public should expect.

What is clear is that Bank of America, like all big banks in our era, isn’t merely a financial institution but simultaneously acts as an influential institution in the media, military industrial complex, think tanks, chemical companies and government circles.

The bank is too big to fail. Too big to jail. And too connected to change.

Andrew Gavin Marshall is a 26-year old independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, the research director of Occupy.com’s Global Power Project, and has a weekly podcast with BoilingFrogsPost.

Global Power Project, Part 5: Banking on Influence With Goldman Sachs

Global Power Project, Part 5: Banking on Influence With Goldman Sachs

By: Andrew Gavin Marshall

Originally posted at Occupy.com

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Part 1: Exposing the Transnational Capitalist Class

Part 2: Identifying the Institutions of Control

Part 3: The Influence of Individuals and Family Dynasties

Part 4: Banking on Influence with JPMorgan Chase

Anyone who has paid even minimal attention to the global economic and financial crises gripping the world since 2007 has heard the name Goldman Sachs.

One of the largest banks in the United States, Goldman Sachs was central to the process of creating the housing bubble that popped in 2007-8, which led to the largest economic crisis since the Great Depression. As Matt Taibbi famously documented in Rolling Stone, Goldman has been involved in “every major market manipulation since the Great Depression,” profiting along the way as “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

Let’s go back to a little history.

In 2006 and 2007, as Goldman was selling high risk securities on home mortgages worth $40 billion, it was simultaneously betting against the housing market, ensuring that as the housing market crashed, the bank would make a significant profit. Thus, “the nation’s premier investment bank pass[ed] most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.”

In late 2007, as the mortgage crisis was accelerating, executives at Goldman Sachs sent each other emails explaining that they would make “some serious money” betting against the housing market. Like a self-fulfilling prophecy, the bank helped the market crash harder and faster.

A U.S. Senate investigation into Goldman Sachs concluded that the bank “profited from the financial crisis [which it helped cause] by betting billions against the subprime mortgage market, then deceived investors and Congress about the firm’s conduct,” and referred the Securities and Exchange Commission (SEC) and the U.S. Justice Department to investigate the bank for criminal or civil action.

As Goldman’s CEO Lloyd Blankfein himself stated: “We focused a lot of ourselves on trying to benefit from the crisis that happened… we were going to use that opportunity to make ourselves a better firm.”

In 2012, however, President Obama’s Justice Department announced that it would not pursue criminal charges against the bank. This, after the bank received over $12 billion in bailouts from the U.S. government to save the bank from the crisis that it created and profited from.

This, after Goldman Sachs helped create the Greek debt crisis for which entire populations of European countries are being punished into poverty while allowing the bank (among other banks) to continue to profit from the deepening depression and crisis in Europe.

This, after Goldman Sachs (along with other investment banks) helped create a global food crisis by speculating on food prices, sending the prices sky-high, then making immense profits while tens of millions of people around the world were pushed into hunger and starvation.

Obama’s decision not to prosecute the bank, of course, had nothing to do with the fact that Goldman Sachs was one of the top contributors to the Obama campaign in 2008 and again to his re-election campaign in 2012.

CEO Blankfein turned more heads when he told CBS News in November of 2012: “You’re going to have to undoubtedly do something to lower people’s expectations – the entitlements and what people think that they’re going to get, because it’s not going to – they’re not going to get it.” Suggesting that benefits like social security, Medicare and Medicaid were providing too much “support” to everyday people, Blankfein explained that “entitlements have to be slowed down and contained… because we can’t afford them.”

Apparently, the fact that Goldman Sachs received more than $10 billion in government welfare in exchange for its role helping to create a national and global financial crisis did not strike Blankfein as hypocrisy. The lesson he imparted: there is plenty of money to support the bank but not old-age pensioners. Because as Blankfein lectured the public about its need to “lower expectations” and lose its social benefits, bonuses for Wall Street executives were going up, with Goldman Sachs’s bonuses and salaries for 2012 topping $13 billion.

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Goldman’s Reach into Other Institutions

For the Global Power Project, we examined a total of 83 individuals at Goldman Sachs, including executives, the board of directors, and several advisory boards. The most highly represented institution was Harvard University, where 12 (or 14%) of the 83 individuals hold leadership positions.

Following Harvard was the Council on Foreign Relations, where 10 Goldman Sachs representatives are members. The University of Pennsylvania and the World Economic Forum each have five individuals sharing leadership positions with the bank; four individuals are affiliated with the Bilderberg Meetings, four with Columbia University; and three with the Federal Reserve Bank of New York, the Brookings Institution, Rockefeller University, the Nature Conservancy, the Securities Industry Association, and the World Bank.

And the list goes on from there, as Goldman Sachs shares two individual leadership positions or affiliations with Tsinghua University, Cornell University, the Partnership for New York City, Wal-Mart, the Aspen Institute, New York University, Fannie Mae, Yale University, the Carnegie Endowment for International Peace, the American Academy of Arts and Sciences, Credit Suisse, Oxford, Barnard College, Prudential, the Bank of England, EastWest Institute, the London School of Economics, the Trilateral Commission, DiamlerChrysler, the OECD, the Central Park Conservancy, the Museum of Modern Art, Caterpillar, the International Rescue Committee and the Asia Society. The bank also includes two former European Commissioners.

Goldman Sachs shares one leadership position – past or presently – with the following institutions: the Financial Services Forum, Catalyst, the Monetary Authority of Singapore, Stanford, Investor AB, Stockholm School of Economics, the President’s Foreign Intelligence Advisory Board, George W. Bush’s National Economic Council, ExxonMobil, Novartis, Honeywell International, Target, UnitedHealth Group, Perseus, EADS, PepsiCo, Royal Philips Electronics, Zurich Financial, PricewaterhouseCoopers, BP, Allianz, European Round Table of Industrialists, Royal Bank of Scotland, HSBC, Siemens, the Bank of Spain, IMF, the Group of Thirty, the Population Council, the European Central Bank, Princeton, Soros Fund Management, New York Stock Exchange, the Ford Foundation, Google, BHP Billiton, and the People’s Bank of China, among many others.

Meeting the Elites

There are several individuals holding leadership positions with Goldman Sachs who represent what we refer to as the global ruling class – or global plutocracy – by virtue of their multiple positions on numerous boards and advisory groups, think tanks, educational institutions, and other important institutions of influence, giving them unparalleled access to policy-makers around the world.

Let’s start with Goldman CEO Lloyd Blankfein, who has been chairman and CEO of the bank since 2006, and who is also a member of the Dean’s Advisory Board of Harvard Law School, a member of the Dean’s Council of Harvard University and is a member of the Advisory Board of Tsinghua University School of Economics and Management. Blankfein is also a member of the Board of Overseers of Weill Medical College at Cornell University, the board of directors of the Partnership for New York City, and is a member of the Council on Foreign Relations and the International Advisory Committee of the Federal Reserve Bank of New York. He is additionally a member of the board of Catalyst, Chairman of the Financial Services Forum and is a member of the International Advisory Panel of the Monetary Authority of Singapore.

Stephen Friedman is on the board of directors of Goldman Sachs and has been Chairman of Stone Point Capital since 2005. He was previously Chairman of President George W. Bush’s Intelligence Advisory Board and Intelligence Oversight Board from 2006 to 2008, and was Chairman of the Federal Reserve Bank of New York between 2008 and 2009. Friedman was also the Assistant to the President for Economic Policy and Director of the National Economic Council in George W. Bush’s White House from 2002 to 2004, and was previously the Chairman of Goldman Sachs. He is a Trustee of the Memorial Sloan-Kettering Cancer Center, a Trustee of Columbia University, a Trustee of the Aspen Institute, a former director of Wal-Mart and Fannie Mae, and is a member of the board of advisers of the Center for New American Security and the board of directors of the Council on Foreign Relations.

Also on the board of Goldman Sachs is Lakshmi N. Mittal, a director of ArcelorMittal, the world’s largest steel company, and is also a director of the European Aeronautic Defense and Space Company (EADS) N.V., as well as a member of the International Business Council of the World Economic Forum. He is a member of the Advisory Board of the Kellogg School of Management, a member of the Executive Committee of the World Steel Association, a member of the Foreign Investment Council of the Government of Kazakhstan, a member of the Indian Prime Minister’s Global Advisory Council, a member of the International Advisory Board to the President of Mozambique, and a member of the Domestic and Foreign Investors Advisory Council to the President of the Ukraine.

The Chairman of Goldman Sachs International is Peter D. Sutherland, former Attorney General of Ireland from 1981 to 1984, who was European Commissioner for Competition Policy in the EU from 1985 to 1989, after which he was Chairman of Allied Irish Banks from 1989 to 1993. Between 1990 and 1995, Sutherland was Chairman of the European Institute of Public Administration, and was the Director-General of the General Agreement on Tariffs and Trade (GATT) from 1993 and the first Director-General when it became the World Trade Organization (WTO), which he led until 1995. Sutherland was the Chairman of BP from 1997 to 2009, the former CEO of Ericsson, a former Director of the Royal Bank of Scotland, and former Chairman of the General Assembly and President of the Advisory Council of the European Policy Center. Sutherland was additionally the former European Chairman of the Trilateral Commission from 2000 to 2009, and remains at the Trilateral Commission as a member and Honorary European Chairman. He was previously the Vice Chairman of the European Round Table of Industrialists, from 2006 to 2009. He is a member of the Foundation Board of the World Economic Forum, the Supervisory Board of Allianz SE, a member of the boards of BW Group and Koc Holding, and President of the Federal Trust. He is a former member of the Council of International Advisors to the Chief Executive of Hong Kong, ia member of the Board of Directors Emeriti of the European Institute, and is on the International Advisory Board of BritishAmerican Business. Sutherland is also the Special Representative of the Secretary-General of the UN for Migration and Development and has been the Consultor of the Extraordinary Section of the Administration of the Patrimony of the Apostolic See (financial adviser to the Pope).

Senator Judd Gregg, a member of the International Advisory Board of Goldman Sachs, is a former member of the U.S. House of Representatives from 1980 to 1988, former Governor of New Hampshire from 1989 to 1993, and a U.S. Senator from 1993 to 2011. As a Senator, Gregg was the Chief Negotiator for the Emergency Economic Stabilization Act of 2008 (the bailout bill), and is a member of President Obama’s Bipartisan National Commission on Fiscal Responsibility and Reform. He is also a Senior Adviser to New Mountain Capital, and is on the boards of IntercontinentalExchange and Honeywell International.

Another member of Goldman Sachs’ International Advisory Board is Lord Griffiths of Forestfach, a member of the British House of Lords and member of the board of directors of Times Newspaper Holdings Ltd and Telereal Trillium. He is Vice Chairman of Goldman Sachs International, was a former Professor at the London School of Economics, former Dean at City University Business School, and was a director of the Bank of England from 1983 to 1985. Between 1985 and 1990, he was the head of Prime Minister Margaret Thatcher’s Policy Unit, where he “was a chief architect of the government’s privatization and deregulation programs.” In 2009, following a record-breaking $22 billion that was given out to Goldman Sachs executives and leadership in payment and bonuses, Lord Griffiths told a British audience that they should “tolerate the inequality as a way to achieve greater prosperity for all.”

Victor Halberstadt, a member of the International Advisory Board of Goldman Sachs, is also a Professor of Economics at Leiden University in the Netherlands, and former Crown-Member of the Netherlands Social-Economic Council. He is former Chairman of the International Advisory Board of DiamlerChrysler, former advisor to the Secretary-General of the OECD, former member of the Council on Defence for the Government of the Netherlands, and former Informateur to the Queen of the Netherlands, as well as the former President of the International Institute of Public Finance. Halberstadt is a former Honorary Secretary-General of the Bilderberg Meetings, where he remains as a member of the Steering Committee, and is a director of ING Group, Stork, DiamlerChrysler, KPN and PA Consulting Group. He is a member of the board of Koc University, the Lee Kuan Yew School for Public Policy in Singapore, and a member of the Board of Trustees of the Population Council. He is additionally Chairman of the Board of the American European Community Association (AECA), a member of the board of the Netherlands Opera and is a member of the Faculty of the World Economic Forum.

A Senior Director of Goldman Sachs is John C. Whitehead, who was former U.S. Deputy Secretary of State in the Reagan administration from 1985 to 1989, the founding Chairman of the Lower Manhattan Development Corporation, and was an employee, partner, Co-Chairman and Senior Partner for Goldman Sachs between 1947 and 1976. He is a former member of the board of directors of the New York Stock Exchange, former Chairman of the Securities Industry Association, former Chairman of the Board of the Federal Reserve Bank of New York, former Chairman of the United Nations Association, the International Rescue Committee, International House, the Andrew W. Mellon Foundation, and former Chairman of the Harvard Board of Overseers. Whitehead is an Honorary Life Trustee and former Chairman of the Asia Society, Chairman Emeriti of the International Rescue Committee, a former director of the Nature Conservancy, a board member emeriti of the Watson Institute for International Studies and a director emeriti of the EastWest Institute. He is former Chairman of the Hungarian-American Enterprise Fund, a former member of the Steering Committee of the Bilderberg Meetings, Chair Emeriti of the Brookings Institution, a Commissioner of the Global Commission on Drug Policy, a member of the board of the National September 11th Memorial and Museum at the World Trade Center and is a member of the Council on Foreign Relations.

It’s not surprising that with individuals like Stephen Friedman, Peter Sutherland and John C. Whitehead holding leadership positions with Goldman Sachs, the bank has established a highly influential network of affiliations with some of the world’s major institutions and policy-makers. The “vampire squid” has indeed spread its tentacles far beyond mere financial influence; through its affiliations with global plutocrats who serve on its boards, Goldman is a cosmopolitical conglomerate with ever-expansive power.

Even mother nature can’t seem to take on Goldman Sachs. When Hurricane Sandy hit New York City in November of 2012, power was knocked out for more than 1 million New Yorkers. But the bank’s 200 West Street headquarters were shining bright, “lights glowing and music playing.” With heaps and sandbags surrounding the building and generators running, Goldman sent off a lone, ominous blue glow into the stormy night: a symbol to all that even in the worst of circumstances, amid a sea of human suffering, Goldman Sachs remains ever present, lights on…doing business and making money.

Andrew Gavin Marshall is a 26-year old independent researcher and writer based in Montreal, Canada. He is Project Manager of The People’s Book Project, head of the Geopolitics Division of the Hampton Institute, the research director of Occupy.com’s Global Power Project, and has a weekly podcast with BoilingFrogsPost.

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On June 11, the Global Elite Gather in Montreal: Will the Maple Spring Say Hello?

On June 11, the Global Elite Gather in Montreal: Will the Maple Spring Say Hello?

By: Andrew Gavin Marshall

Paul Desmarais Jr., leaving a Power Corporation shareholders meeting as students protest on May 15, 2012

 

From June 11-14, Montreal will be hosting the International Economic Forum of the Americas at the 2012 Conference of Montreal, which will bring roughly 150 speakers from the global elite to speak to an audience of other elites and sympathetic media spokespersons. This year’s conference will include as the keynote speaker, Alan Greenspan, former Chairman of the Federal Reserve System (the U.S. central bank), who was once considered for nearly 20 years to be “the most powerful banker in the world,” and as such, was largely responsible for causing the global financial crisis, along with the heads of the central banks of Portugal, Spain, France, Brazil, Mexico and Canada. There will be delegates from 24 countries around the world gathering at the Hilton Bonaventure Montreal Hotel to discuss the theme of “A Global Economy in Transition: New Strategies, New Partnerships” in front of roughly 3,000 participants. Along with formal discussions, “the Conference of Montreal will also enable the world’s various economic and political players present on this occasion to strengthen their relationships and develop new business opportunities.”

Here is the website in English: The Conference of Montreal

Here is the website in French: Conférence de Montréal

Here is a Facebook Event for a protest/manifestation at the Forum.

This conference will include key policy-makers and power-holders in Canada, North America, and around the world. It provides a forum through which the global elite may meet, talk, debate, shape consensus, and discuss policy-objectives of their respective nations and institutions. The ideology of those present is relentlessly pro-globalization, pro-Capitalist, and pro-power. The speakers are often advocates of neoliberalism, globalization, fiscal austerity, privatization, corporatization, imperialism and social control. This conference takes place in the midst of Quebec students standing up against educational austerity and protesting against policies which benefit the rich at the expense of the many. Will the ‘Maple Spring’ say hello to the global elite as they gather in Montréal?

The event, which is hosted by Power Corporation, owned by the billionaire Desmarais family, and a host of other corporate sponsors, receives 25% of its funding from public sources, including the Government of Canada and the Province of Québec, which alone contributes nearly $200,000 to a Conference hosted by billionaires. But remember, while public subsidies are available for billionaires to discuss how to make billions more, there is no money for education, social services, health care, or your future.

What is the Conference of Montreal / International Economic Forum of the Americas?

The stated “Mission” of the IEFA/Conference de Montréal is “to heighten knowledge and awareness of the major issues concerning economic globalization, with a particular emphasis on the relations between the Americas and other continents.” The Conference “strives to foster exchanges of information, to promote free discussion on major current economic issues and facilitate meetings between world leaders to encourage international discourse by bringing together Heads of State, the private sector, international organizations and civil society.” Among the stated “Objectives” are:

* To give its participants access to privileged information while fostering free and extensive discussions on various aspects of economy, with contributors and experts from among the best qualified;

* To promote relations between governments, international organizations, business people, members of the civil society, workers associations and universities;

* To allow its participants from various areas in the world to have business meetings during which they can develop their company or organization internationally

The International Economic Forum of the Americas/Conference of Montreal began in 1994 “at a time when the globalization of the economies was beginning to emerge at an increased rate” with the founding of the World Trade Organization (WTO), the end of the Cold War, development of NAFTA and other free-trade agreements, and thus, there was “the idea that Montreal could be the host city for an international yearly economic conference concerned with this phenomenon of the globalization of economies.” The first Conference took place in 1995.

The 18th annual conference of the International Economic Forum of the Americas will include “some of the most important international decision makers have already confirmed their attendance.” The focus of this year’s Forum will include: “the financial crisis and its impact on the world economy”; “International trade, and in particular the new Americas-European Union economic space, including the Canada-European Union trade agreement: this important trade agreement, which should be finalized in 2012” and will include “a number of executives from Canadian and European companies [who] will take the opportunity to meet at the 2012 Conference of Montreal to form new business ties for this new and important economic space”; and of course, “developing and extracting natural resources.” The full program can be reviewed here: Program 2012.

This year’s speakers list includes representatives and leaders from: the C.D. Howe Institute, the World Economic Forum, Bombardier Inc., Citibank, the European Commission, McKinsey & Company, Rio Tinto Alcan, the Canadian Chamber of Commerce, the U.S. Department of Homeland Security, the Rector of the University of Montreal, the President of the Canadian Bankers Association, the Governor of the Bank of Canada (a former Goldman Sachs executive), J.P. Morgan Chase, BNP Paribas, Governor of the Bank of Portugal, former Canadian Ambassador to Egypt, Power Corporation of Canada, Canadian Ambassador to the United States, President and CEO of the U.S. Chamber of Commerce, Royal Bank of Canada, Federal Reserve Bank of New York, the Conference Board of Canada, the World Bank, Scotiabank, PepsiCo, McGill University, Canadian Council of Chief Executives, Deutsche Bank, the Chairman of the Bank for International Settlements (the central bank to the world’s central banks and the most powerful financial institution in the world), the Brookings Institution, the Wall Street Journal, CNN, the World Policy Institute and the World Bank, among many others.

At the 2007 Conference of Montreal, Premier Jean Charest stated that, “Quebec is deeply committed to the process of globalization,” and that, “Quebec has built an economy open to the world which has allowed us to reach a very high standard of living because globalization has worked for us.” By “us” he means his friends and informal advisers at Power Corporation and the Forum. In his speech to the Conference, Charest stated that, “We believe very much in equality of opportunity.” Apparently, this is not the case for students.

The Founding Chairman of the International Economic Forum of the Americas is Gil Rémillard, Counsel for the law firm Fraser Milner Casgrain LLP, and between 1985 and 1994 he held several different positions in the Quebec government, including Minister of International Relations, Minister of Public Security, Minister of Justice, Attorney General, and the Minister of Intergovernmental Affairs.

The Chairman of the Board of Governors of the Forum is Paul Desmarais Jr., Co-CEO of Power Corporation of Canada alongside his brother André Desmarais, both sons of one of Canada’s richest billionaires, Paul Desmarais Sr, collectively making up Canada’s most powerful family. Paul Desmarais Jr. sits on a number of corporate boards, including: Power Corporation of Canada, Power Financial Corporation, Investors Group Inc., The Great-West Life Assurance Company, Great-West Lifeco Inc., London Insurance Group Inc. and London Life Insurance Company; in the United States: Great-West Life & Annuity Insurance Company; in Europe: Pargesa Holding S.A. (Switzerland) and Groupe Bruxelles Lambert S.A. (Belgium). He is a member of the Board of Directors of Gesca Ltd, Les Journaux Trans-Canada Inc. and La Presse Ltd in Canada; Suez and TotalFinaElf in France, among others.

Another member of the Board of Governors of the Forum is the wife of Paul Desmarais Jr., Hélène Desmarais, Chair of the Board of Directors of HEC Montréal (Canada’s leading business school), Chairman and Chief Executive Officer of the Montreal Enterprises and Innovation Centre (CEIM), Vice-President of the Board of Directors and member of the Executive Committee of the Board of Trade of Metropolitan Montreal (which praised the passing of Bill 78), and is a member of the Board of directors of The Montreal Economic Institute, a right-wing think tank which has been promoting more neoliberalism in Québec and blaming the student strike for the “financial cost” it has made to Québec; and she is a board member of the C.D. Howe Institute, one of Canada’s most influential think tanks.

Another member of the board of governors of the Forum is Heather Munroe-Blum, Principal and Vice Chancellor of McGill University, who is also a member of the Trilateral Commission and is on the board of directors of the Royal Bank of Canada (RBC). Other members include the presidents of the Chamber of Commerce of Canada and the Canadian Council of Chief Executives (CCCE), the CEO of Rio Tinto Alcan, a major mining company; the CEO of GDF Suez, a French electricity and gas company; the CEO of Hydro-Quebec; and the executives of the African Development Bank, the Asian Development Bank, UNESCO, the OECD, the World Trade Organization (WTO), the European Bank for Reconstruction and Development (EBRD), the Organization of American States (OAS), the Inter-American Development Bank (IDB), the International Energy Agency (IEA), as well as Louis Lévesque, Canada’s Deputy Minister of International Trade.

The Forum’s official ‘Partners’ include first and foremost, the Desmarais-owned Power Corporation of Canada, followed by the Royal Bank of Canada, Rio Tinto Alcan, Cisco, Total, GDF Suez, McKinsey & Company, SNC Lavalin, Hydro-Quebec, BNP Paribas, Bell, Citibank, Desjardins Group, the Government of Canada and the Government of Quebec, with media partners including the Financial Post and La Presse (owned by the Desmarais family).

The ‘Power’ Behind the Conference of Montreal

The Desmarais family is unquestionably Canada’s most powerful family. The Desmarais family, wrote Christa d’Souza for the London Telegraph, are “Canada’s equivalent of the Rockefellers or Vanderbilts.” Founded in 1925, Power Corporation of Canada is an investment company involved in communications, business, and especially finance. In the 1960s, the company began to invest in energy, finance, industry, and real estate. In 1968, financier Paul Desmarais took over the leadership of Power Corporation, and rapidly expanded the assets held by the company, including by the 1970s: Canada Steamship Lines (transportation); Consolidated Bathurst (pulp and paper); Investors Group, Great-West Life, Montreal Trust (financial services); and Gesca (communications). Power Corporation expanded across Canada, Europe, and into China. Paul Desmarais stepped aside as Chairman and CEO in 1996, though remaining as the controlling shareholder, and had his two sons, Paul Jr. and André, become Chairman and President and Co-CEOs. Power Corporation owns Gesca, a communications company which in turn owns La Presse as well as six other daily newspapers in Quebec.

Paul Desmarais Sr. is one of Canada’s richest individuals, which is, of course, no surprise, and as Konrad Yakabuski wrote for the Globe and Mail, “Desmarais has been personally consulted by prime ministers on every major federal economic and constitutional initiative since the 1970s. Most of the time, they’ve taken his advice.” Power Corporation has taken large stakes in major European companies such as Bertelsmann, Total and Suez. In the mid-1960s, a protégé of Desmarais was a young Montreal lawyer named Brian Mulroney, who would later become Canada’s Prime Minister. Paul Sr. groomed his sons, and especially André, who is now perhaps the most well-known Canadian businessman in China. André also married the daughter of another Canadian Prime Minister, Jean Chrétien. Desmarais Sr. also got involved in French banking through Paribas, and later, Pargesa, which handled investments in a wide range of European corporations, and shot Desmarais into the accepted ranks of French nobility and the old-monied European elite. Paul Desmarais Jr. is close friends with the recent French President Nicolas Sarkozy, and socializes with Spanish royalty, the Rothschilds, and other European oligarchs. The Desmarais family have strong connections to Canada’s four major political parties: the Liberals, Conservatives, Bloc Quebecois, and the NDP. This has included close ties to Lucien Bouchard, former leader of the Parti Québecois and Premier of Quebec; Jean Chrétien, former Canadian Prime Minister; Brian Mulroney, former Canadian Prime Minister who worked for Power Corporation; Bob Rae, an NDP leader; and Paul Martin, another Liberal Prime Minister who worked for Power Corporation. In the 1990s, the international advisory board of Power Corporation included former Prime Ministers Brian Mulroney and Pierre Trudeau. Brian Mulroney was sure to create friendly ties between the Desmarais family and soon-to-be Canadian Prime Minister Stephen Harper, who put two Desmarais-connected politicians in his cabinet, Peter Mackay and Maxime Bernier.

Quebec author Robin Philpot wrote a scathing critique of the power of the Desmarais family several years ago, suggesting that, “Over the last several years, [Paul Desmarais Sr.] has spun his web to such an extent that it now enables him to call the shots,” especially in promoting his right-wing economic vision, with “a disproportionate influence on politics and the economy in Quebec and Canada.” Of course, it’s not only Canadian politicians with whom Desmarais is close, but French and American politicians as well, including Sarkozy, George H.W. Bush, and Bill Clinton. Desmarais owns seven of the ten French-language newspapers in Quebec, and has been close to nearly every Quebec premier, apart from Parti Québécois leaders Jacques Parizeau and Bernard Landry. Philpot alleged that Desmarais “has a lot of influence on Premier Jean Charest,” who is the current premier imposing tuition increases. When Desmarais received the French Légion d’honneur (Legion of Honour) from Nicolas Sarkozy, Jean Charest was in attendance, of which Philpot stated, “He took him along like a poodle.” Philpot added, “It’s a very unhealthy situation for a government to be indebted to a businessman that has his own interest at heart. They get their hands tied.”

Paul Desmarais Sr (left), Nicolas Sarkozy (middle), Québec Premier Jean Charest (right)

 

In rural Quebec, the Desmarais family has an estate the size of Manhattan, with a private golf course and pheasant shooting range, as well as a music pavilion where opera is performed. This is the home of Paul Desmarais Sr. Guests, such as former U.S. Presidents George H.W. Bush and Bill Clinton, come play golf on this vast estate, and are flown in on helicopters belonging either to Power Corporation or Desmarais personally. The Desmarais family has even had the internationally renowned Cirque du Soleil perform on their massive 15,000-acre estate. King Juan Carlos of Spain has even been a guest from time to time. André Desmarais is himself a member of the Trilateral Commission, founded by David Rockefeller, and is also on the International Advisory Board of David Rockefeller’s former bank, JP Morgan Chase, alongside other notables such as former British Prime Minister Tony Blair. Both brothers have regularly attended meetings of the Bilderberg Group, of which David Rockefeller is a top official (founded in 1954 as an elite think tank linking Western Europe and North America). A son of Paul Desmarais Jr., Paul Desmarais III, is a banker with Goldman Sachs. At times, the influence of the family is shyly acknowledged. As French President Sarkozy stated upon awarding Paul Desmarais Sr. with the French Legion of Honour, “If I am the president of France today, it is thanks in part to the advice, the friendship and the loyalty of Paul Desmarais.”

Here is a video documenting a party thrown for the wife of Paul Desmarais, Sr., including notable guests Quebec Premier Jean Charest and former U.S. President George H.W. Bush

 

Protesting Power: Students Protest Outside Shareholder Meeting of Power Corporation

On May 15, 2012, as Power Corporation (with total revenue of $7.2 billion) held its shareholder meeting announcing its first quarter earnings of $264 million, and its main subsidiary company, Power Financial, announced quarterly profits of $455 million, demonstrators met outside to ensure that Power was met with protest. The National Post reported that, “one of Canada’s wealthiest and most politically connected families has come under attack as the force and rhetoric of Quebec’s student protests move from the streets into corporate shareholder meetings.”

Student protesters met by riot police outside of Power Corporation’s shareholders meeting on May 15, 2012

 

Riot police guarded the hotel’s main entrance as protesters chanted (in French): “We must fight the thieves in ties,” and “Your wealth is our poverty.” A student group had called for the demonstration, but Quebec Finance Minister Raymond Bachand commented, “There are radical groups that systematically want to destabilize the Montreal economy… They are anti-capitalists, Marxists.” As Paul Desmarais Jr. was announcing the company’s profits and stating, “we have a solid risk management strategy,” police on horseback outside were pushing the protestors back: “risk management.” A reporter asked Desmarais about “the protests that have shaken Quebec’s political class and caused millions worth of dollars in lost productivity,” to which he replied, “How could you not be concerned right now in terms of what’s going on?” He added:

Like all citizens, we are concerned. But we want this issue to be resolved hopefully in a respectful fashion. Let’s start with respect. With a democratic way. Within the rule of law. And that we come to an agreement that makes sense and where everybody invests in the future of our students. But everybody’s got to participate in that.

The two brothers, Paul Jr. and André, told reporters that, “they were being unfairly criticized as the company’s annual meeting became the latest target in the ongoing protests in Quebec.” Paul commented: “We’re a very caring company and I think a very caring family and we care about the society around us and we’ve always demonstrated that.” Police outside used pepper spray on protesters, one of whom commented, “I think Power Corp. is a very good example of the one per cent and it shows how private companies can be more powerful than some countries.” Desmarais would not directly answer when questioned about whether or not he supported Charest’s tuition hike, instead saying, “Frankly I’m not elected. Why should I meddle in things of people who are elected to resolve these problems. Our job is to manage our company.” The two brothers explained that, “they were reluctant to publicly comment on public issues except when they’re asked to by governments on financial issues.” That is to say, they will not publicly comment on the private advice they give to our politicians.

So the name is Power, and it fits. The Desmarais family spend their leisure time with King Juan Carlos of Spain (who recently had to apologize for going on an elephant hunting trip in Africa while 50% of youth in Spain are unemployed), they have had Cirque du Soleil perform on their family estate (larger than the island of Manhattan) with guests that include presidents and prime ministers, and have close business and even family ties to every Canadian Prime Minister since Pierre Trudeau, and almost every Quebec premier, especially the current “poodle” Jean Charest. They are billionaires who sit on the boards of the major Canadian and international think tanks which set policy for our nations. The International Economic Forum of the Americas / Conference of Montreal is simply another venue through which elites gather to form consensus and debate, discuss, and promote policies which benefit the few at the expense of the many. Their rhetoric is replete with talk of “democracy” and “fairness,” but their actions speak louder than their words, their bank accounts weigh more heavily than their hearts, and their ideas more easily become policy. The elite do not go and protest in the streets, demanding justice and equality, because they call up their friends, our politicians, who they have cocktails with in social gatherings, play golf with, travel with, intermarry with, and who grant their favoured politicians financially bountiful positions on corporate boards when they leave political life. They do not have to agitate in the streets to have their voices heard because they are the patrons of our politicians and policy-makers, they are the real constituents of our constitutional “democracies,” they are the captains of corporations, barons of business, and Kings of Capital.

So this year, let the real masters of our political, economic, and social world hear the voices of the real people. Let students and others peacefully assemble and protest outside the Hilton Bonaventure Hotel from June 11-14, and have the elites inside hear the people say that we know who they are, those who rule our nations and undermine our democratic ideals.

They are the bankers and corporate executives, the heads of our universities and owners of our media, our politicians and their advisers, the patrons and “intellectuals” of the think tanks that lobby governments and set policies, the heads of foundations and civil society monopolists. Most especially it is the bankers who sit atop a vast network of social, political, and economic institutions. The bankers are the modern monarchs of our globalized state-Capitalist society. In Canada, our country is dominated by the ‘big five’ banks: Royal Bank of Canada (RBC Group), Canadian Imperial Bank of Commerce (CIBC), Toronto-Dominion Bank (TD), the Bank of Montreal (BMO), and the Bank of Nova Scotia (Scotiabank).

Peter Kruyt is Chairman of the Board of Governors of Concordia University in Montreal, and is also Vice-President of Power Corporation. The Chancellor of Concordia University is L. Jacques Ménard, the President of BMO Financial Group, as well as being on the boards of a number of other corporations and schools. The rest of the board of governors of Concordia is dominated by bankers and business executives. The Principal and Vice-Chancellor of McGill University is Heather Munroe-Blum, who sits on the board of directors of the Royal Bank of Canada as well as the board of governors of the International Economic Forum of the Americas, as well as sitting on a number of other boards. The Chairman of McGill University is Stuart Cobbett, who also sits on the board of Citibank Canada. Another member of the board of governors of McGill University is Kathy Fazel, who is also an executive with the Royal Bank of Canada. Another member of McGill’s board is Daniel Gagnier, former Chief of Staff to Quebec Premier Jean Charest. Another board member is Samuel Minzberg, who sits on the board of HSBC Bank Canada. Clearly, bankers and business executives run our schools.

In 2008 and 2009, Canada’s banks received a “secret bailout” from the Bank of Canada (run by a former executive at Goldman Sachs) and the Federal Reserve of the United States (owned by JP Morgan Chase and all the other big U.S. banks). Canada’s banks are always said to be the “best in the world,” and a model to follow, since they magically weathered the financial crisis untouched. As it turns out, that was BS. Canada’s banks were bailed out to the tune of $114 BILLION. That amounts to $3,400 for every single Canadian man, woman, and child, or 7% of Canada’s 2009 GDP. So Quebec students want to maintain tuition costs at less than $2,500, and we are called “entitled brats.” But Canada’s big banks, which are making record-high profits, and getting record-low tax cuts, sitting on hundreds of billions of dollars in cash reserves, while their increased profits come from the increased debt of the Canadian population, and yet, they get the equivalent of $3,400 from each and every Canadian, which we then have to pay for through increased taxes and increased costs (such as tuition). But it’s the students who are “entitled.”

TD Bank told the Government of Quebec in 2007 to increase university tuition. In 2008, TD Bank got $26 billion in support from the Bank of Canada (meaning Canadians citizens have to pay for that through taxes… just to pay the interest on that debt!), and $8 billion from the U.S. Federal Reserve (which U.S. taxpayers have to pay for). In March of 2012, TD Bank and Royal Bank (Canada’s two biggest banks) announced record profits. That same month, it was announced that the average Canadian household debt was $103,000, making income security for Canadians an “elusive dream.” More than half of the jobs created since 2008 have gone to people aged 55 and over. Increases in hourly wages did not keep pace with inflation last year, and thus, income inequality is growing. Nearly two million Canadians have student loans totaling $20 billion, with the average student debt in Canada at $27,000 upon graduation. We are told that 70% of new jobs will require a university education. A four-year degree for a student in Canada costs an average of $55,000, expected to rise to $102,000 by 2030. This was reported by TD Bank, which then stated, “we argue that students have to recognize an investment in higher education is really a long-term one.” Things are much harder for students and youth today than for previous generations. Increasing tuition in Quebec could inflate an already over-inflated student debt bubble which could do for youth what the mortgage crisis did for housing, and would end of costing the government more in the end; thus, “there is no need for additional funding for Quebec universities.” Meanwhile, all the banks have inflated a massive housing bubble in Canada which itself could pop in the near-term future, recreating here what took place in the US in 2008.

So, who is really “entitled” here? Is it the students and youth, who are simply demanding a chance to have a future, to not be disciplined and chained down with debt before we even leave our home, get a degree, or have our first job? Or is it the banks, that control the economy, inflate bubbles that create crises, get bailed out by our governments (which we have to pay for), that tell our governments to increase tuition, that get tax cuts from our governments and sit on hundreds of billions of dollars in cash reserves, and who make record profits? These banks support and sponsor the International Economic Forum of the Americas, as does the Government of Quebec and the Government of Canada. So our governments have money to support a conference held by billionaires, bankers, and financiers… so that they can all get together once a year and talk about how “ineffectual” government support is, so that they can praise the “free market” while their “invisible hand” reaches into our pockets, as our politicians sit comfortably in theirs. They spew and steam about “handouts” to poor people, and then take $114 billion from the Canadian people, who are already deep in debt. These reverse-Robin Hoods take money from the poor and give it to themselves… and then charge us interest.

This system is simply too insane to consent to. Canada’s elites, like most elites, represent a class of parasites, living off and at the expense of the people, while their local and global connections to and profits from organized crime enshrine them as a type of ‘Mafiocracy’ ruling class.

Perhaps the Maficocracy should hear the voices of the Maple Spring.

From June 11-14, 2012, the International Economic Forum of the Americas gathers in Montreal, Quebec.

On June 11, at 8:30 a.m., the Maple Spring will say hello!

 

Let your voice be heard peacefully:

June 11-14

Hilton Bonaventure Hotel

900, de la Gauchetière W.

Montreal, Quebec

 

Peace and Solidarity!

 

For more information on the ‘Maple Spring’, see:

The Québec Student Strike: From ‘Maple Spring’ to Summer Rebellion?

What Really Happened at the Montréal May Day Protest? From Peaceful Protest to Police Brutality

Ten Points Everyone Should Know About the Quebec Student Movement

From the Chilean Winter to the Maple Spring: Solidarity and the Student Movements in Chile and Quebec

Quebec Steps Closer to Martial Law to Repress Students: Bill 78 is a “Declaration of War on the Student Movement”

Writing About the Student Movement in Québec: You’re Damn Right I’m “Biased”! … Confessions of a Non-Neutral Observer

The Maple Spring and the Mafiocracy: Struggling Students versus “Entitled Elites”

Andrew Gavin Marshall is an independent researcher and writer based in Montreal, Canada, writing on a number of social, political, economic, and historical issues. He is also Project Manager of The People’s Book Project. He also hosts a weekly podcast show, “Empire, Power, and People,” on BoilingFrogsPost.com.