New York Times
Gretchen Morgenson is an assistant business and financial editor and columnist at the New York Times and a 2002 Pulitzer Prize-winner for her coverage of Wall Street. She is the author of Reckless Endangerment: How Outsized Ambition, Greed and Corruption Created the Worst Financial Crisis of Our Time.
The president and the economy: winners and losers As the stock market hits the highest level it's ever been, President Trump is celebrating what's often used as a measure of the US economy. But the devil is always in the details. Stocks are rising partly due to corporations buying back their shares at record low interest rates -- instead of creating new jobs or increasing wages. Ten percent of Americans are in on the good news. Ninety percent are being left behind. The president has promised help for those "forgotten Americans" — so, why tax cuts for corporations and shareholders?
Is Wells Fargo CEO Stumpf getting off easy? Wells Fargo’s board will force CEO John Stumpf to give up $41 million in stock options. Wells Fargo employees created millions of fraudulent accounts for customers without their knowledge under Stumpf’s watch, crossing all kinds of ethical boundaries, not to mention being illegal. So for Massachusetts Senator Elizabeth Warren, that financial punishment does not go far enough. Warren thinks Stumpf should resign and face criminal charges. But remember when Wall Street banks decimated the entire American economy? None of those CEOs were arrested or forced to give up their millions.
Wells Fargo Bank Sued by L.A. California-based Wells Fargo Bank with its folksy stage-coach logo is being accused of highway robbery. Los Angeles City Attorney Mike Feuer filed a lawsuit accusing the bank of employing shady, high-pressure sales tactics - such as opening bogus bank accounts - to juice its sales. What are the details of the allegations, and what is Wells Fargo's overall track record when it comes to customer shadiness?
California Sued Over Diversion of Money From National Mortgage Settlement Six years after the financial crisis, a lot of people are still struggling to hang onto their houses. And help is hard to come by. Now, 3 nonprofit groups are suing California. The suit says the state misused nearly $370 million that were supposed to help people facing foreclosure. Meanwhile, a new report says the Justice Department has basically stopped investigating mortgage fraud cases. Are our local and federal authorities giving up on cleaning up the mortgage mess?
Are America's Financial Institutions Still 'Too Big to Fail?' Five years ago this week, the bankruptcy of Lehman Brothers led to America's worst financial crisis since the Great Depression. The Bush and Obama Administrations used billions of taxpayer dollars to bail out banks that were so big their failure would have hurt the economy even more. Now some of those banks are bigger than ever. Will that lead to another round of excessive risk-taking by executives and investors confident of another government bailout? JP Morgan Chase is America's biggest bank. Today, JP Morgan Chase made a rare admission that it did wrong — to the tune of $920 million in fines to four regulatory agencies. The Dodd-Frank bill was supposed to prevent a repeat of the Great Recession. We talk to former Congressman Barney Frank and others. Should Main Street be worried about the future of Wall Street?
Goldman Sachs, Public Anger and a Possible Crackdown on Wall Street After weeks of secret negotiations, the Securities and Exchange Commission aimed at the fattest target on Wall Street and charged Goldman Sachs with securities fraud. Normally such votes are unanimous, but this time it was three to 2 with two Democrats and an Independent prevailing over two Republicans.
Goldman Sachs, Public Anger and a Possible Crackdown on Wall Street After weeks of secret negotiations, the Securities and Exchange Commission aimed at the fattest target on Wall Street and charged Goldman Sachs with securities fraud. Normally such votes are unanimous, but this time it was three to 2 with two Democrats and an Independent prevailing over two Republicans. Democrats see a chance to push finance reform, Republicans warn of more taxpayer bailouts, with each party accusing the other of siding with Wall Street. We look at what Goldman Sachs might or might not have done wrong, and get different opinions on how to stop banks from risking so much they threaten the whole economy.
Deleterious Effects of Lines outside IndyMac Last week, IndyMac bank in Pasadena, California, was taken over by the FDIC. It re-opened Monday, with police called to calm depositors standing in line. The run on deposits apparently was triggered when Charles Schumer (D-NY) raised questions about its solvency. The Senator blames the bank for its own problems, saying it engaged in "poor and loose lending practices" for years. Gretchen Morgenson, Pulitzer Prize-winning business columnist and reporter for the New York Times , has more on perceptions, realities and consumer confidence.
The Housing Crisis Is Eating America's Economy Home foreclosure may become an industry in itself. Today's New York Times features a California company called You Walk Away , which is looking for clients whose mortgages are now worth more than their houses, so they can't refinance to meet rising payments. For less than a thousand dollars, You Walk Away will show them how to deliver their problems back to the bank by foreclosure. Part of the problem is the idea that housing is not just a place to live, but a gold-plated investment whose value just keeps going up. What goes up must come down, leaving tens of thousands of people with increased payments on loans worth more than their houses. Are greedy banks and investors at fault? What about home buyers themselves? And what's the impact on an economy that depends on consumer spending?
Trump plays scolder-in-chief with NATO allies At the opening of NATO’s dramatic new headquarters in Brussels today, President Trump acknowledged that Article 5 — promising that “an attack on one nation is an attack on all” -- has only been invoked one time: in the aftermath of September 11. But the President failed to provide what 27 other Alliance members have been waiting for: a re-commitment by America’s new leader to Article 5. Instead, they got a scolding.
Janesville and the American Dream Janesville, Wisconsin is the hometown of Republican House Speaker Paul Ryan. But he couldn’t prevent the closing of the General Motors factory after 100 years. On this Memorial Day rebroadcast of To the Point, we hear what’s happened to what once was a model of American middle-class unity.
Trump's 'America First' goes missing abroad In the Middle East, President Trump is changing some policies of the Obama Administration—and reversing his own campaign attacks on Islam as a religion that "hates us." We hear about his visit to Saudi Arabia and what's at stake for the rest of his foreign excursion.
Will the Senate write a healthcare bill in secret? While Democrats and Republicans argue White House relations with Russia, another question is being decided behind closed doors: who gets help buying health insurance and who doesn't? We hear how the pros and cons are being shrouded in secrecy.