Occupy SEC played significant role in curbing risky banking and trading

From the “Economix” Blog of the New York Times by Simon Johnson:

There is a tendency in recent American political discourse to use the term “populism” as a form of putdown. The implication is that that while populists may have some legitimate grievances, they are rebelling in a disorganized and ill-informed way. As President Obama implied in early 2009, the populists have pitchforks, while his administration represented the responsible mainstream.

This is an inaccurate portrayal of populism in America, both historically and today. Occupy Wall Street is a perfect example. To be sure, part of that 2011 movement was purely about expressing frustration – justified frustration – at how very powerful people in the finance sector had behaved and continue to behave. But the movement also led to an important offshoot or related development,Occupy the S.E.C., which focused on the Securities and Exchange Commission.

This group wrote a brilliant commentary on the originally proposed Volcker Rule, which is designed to limit proprietary trading and other forms of excessive risk-taking at very large banks. Their comments, along with the work of others who wanted more effective reform, were helpful in pushing officials toward the final Volcker Rule, which was just unveiled.

At a hearing of the House Committee on Financial Services on Wednesday, at which I testified, some technical issues were raised by representatives of big banks and parts of the securities industry, but the broad outlines of the Volcker Rule are no longer resisted. When asked, none of the witnesses suggested that the Volcker Rule should be repealed. This is a big victory for Occupy the S.E.C. and all its allies.

Read the entire article here.

OWS attempts to shut down Stock Exchange, hundreds arrested

Hundreds of protesters marched on Wall Street early this morning to prevent traders, financiers, and technocrats from reaching their jobs at the Stock Exchange. So far, 100 people have been arrested as the Occupy Wall Street movement vows to keep up its visible presence in New York, highlighting the greed and injustice of the American financial and political system.

84-year-old Dorli Rainey was brutally pepper sprayed by Seattle police, and has become a symbol of the brutal tactics used by law enforcement to suppress democratic dissent.

Protesters clogged the streets around Wall Street, blocking traffic and halting people from reaching the Exchange. Police in riot gear moved in quickly, telling the marching crowds to disperse or face arrest. When dozens of people began sitting down in the intersections, they were quickly arrested. Similar protests and marches are scheduled to continue throughout cities across the nation.

The tactics of law enforcement have come under increasing scrutiny as video footage is leaked to the public and press, showing police pepper spraying and beating otherwise peaceful protesters. In Seattle, the police are being heavily criticized for unjustifiably using pepper spray and truncheons on its own citizens including 84-year-old Dorli Rainey, who has come to symbolize the protest movements nationwide.

As law enforcement moves to evict occupiers in cities across the country, more attention should focus on police tactics, which all too often rely on the brutalization of citizens and the violation of their civil liberties. The police are supposed to “serve and protect,” but their role in suppressing these democratic protests raises the question whether they have become an instrument for the wealthy and powerful to preserve the status quo. Mayors, police commissioners, and officers who are implicated in these brutal tactics should be held accountable for their actions.