Who Says that Irony is Dead?

White House Memo Justifying CFPB Takeover Was Written By Payday Lender Attorney

Seriously. We live in Bizarro World.

Read Harold Feld

He is a lawyer for the Public Knowledge, which advocates for, "Policies that serve the public interest."

He lives and breaths this stuff, and he has looked at the merger between AT&T and Time Warner, and the rumored remedies that the US Department of Justice is demanding, and concludes that the remedies demanded by the government, including requiring a divestiture of CNN, have extensive precedent and are reasonable in the context of the industry:

I want to start by applauding Randal Stephenson for coming out quickly and denying the rumors that DoJ asked them to sell CNN as the price of getting the merger done. At the same time, however, he acknowledged that negotiations were “complicated,” and that he and recently confirmed Asst A.G. for Antitrust Makan Delrahim were still “getting to know each other” and “figure out the ask on the other side of the table.” He also made it clear that, if DoJ does challenge, AT&T is prepared to go to court and are confident they will win.

AT&T is generally pretty good at persuading everyone that DoJ doesn’t really have a case against them. As folks may recall, despite the fact that the proposed AT&T/T-Mo transaction violated just about every basic tenant of existing antitrust law, AT&T managed to convince everyone for the longest time that DoJ was just playing hardball with them and didn’t really mean it because DoJ didn’t really have a case. While Stephenson refused to discuss what was negotiated, the rumors suggest it was a demand to divest either DIRECTV or the Turner Broadcasting cable channels (which include CNN, as well as TNT, HBO and a bunch of other real popular programming.) Once again, you have antitrust experts who do not have any particular experience with cable mergers shaking their heads and predicting that DoJ has no case.

In fact, demanding divestiture of either the must have content or the DIRECTV distribution platform is precisely the remedy you would expect if you believe the deal presents significant harm because of the vertical integration issues. That’s been the position of my employer, Public Knowledge, which has opposed the transaction since AT&T announced the deal. (That predates Trump’s election, for those of you wondering.) If you want a more detailed understanding of the theory of the harms, you can find it in my boss Gene Kimmelman’s testimony to Congress here. While generally true that vertical deals are hard to challenge, the cable industry has long been something of an exception, and the remedy here is similar to what the FTC imposed on the AT&T/Turner deal in 1996, where the FTC imposed stock divestitures and restructuring to eliminate the voting interest of John Malone and Liberty Media because of Malone/Liberty’s ownership TCI, which was then the largest cable operator in the United States (25% national market share). Given the massive criticism of “behavioral” remedies and a call to return to “structural” remedies from the right and the left, it’s unsurprising that DoJ would want actual divestiture rather than go the Comcast/NBCU consent decree route.

I would add that consent decrees tend to have limited effect over the long run, and that Public Knowledge has opposed this merger since before Trump's election.

While a lot of people have tried to cast opposition to the deal as political interference by Trump and his Evil Minions^™, it is clear that opposition could be easily justified.

This might be another case of a stopped clock being right twice a day, or it might be a vendetta by Donald Trump. 

Just don't jump to conclusions yet.

Read the rest.

It's Bank Failure Friday!!! (on Sunday)

We had another credit union failure, New York State Employees Federal Credit Union of New York City, which was taken over on the 27^th of October.

Depending on how you count, this might be equal to the 15 credit union failures last year, because 6 of those failures were from tightly linked organizations.

Here is the Full NCUA list.

Of Course, It's P G & F%$#ing E

Well, authorities are now looking at the potential cause of the devastating fires in northern California.

At the top of the list is tree branches hitting power-lines.

The power-lines in the area are operated by Pacific Gas and Electric, and PG&E has a very long history of short changing basic maintenance to improve the bottom line for shareholders.

This resulted in it being hit with significant fines for (quick Google) the Butte Fire (2015), the Rough and Ready fire (1994), the San Bruno gas explosion (2010), and (of course) poisoning people in Hinkley with toxic waste. (the movie Erin Brokovich was based on this)

The fires started almost simultaneously with reports of power outages around the origin points.

As the first reports came in Sunday night of numerous fires that would grow into one of the most destructive wildfire disasters in California history, emergency dispatchers in Sonoma County received multiple calls of power lines falling down and electrical transformers exploding.

In all, according to a review of emergency radio traffic by the Bay Area News Group, Sonoma County dispatchers sent out fire crews to at least 10 different locations across the county over a 90-minute period starting at 9:22 pm to respond to 911 calls and other reports of sparking wires and problems with the county’s electrical system amid high winds.

State fire officials said Tuesday that they are still investigating the cause of the blazes, which as of late Tuesday had killed 17 people and destroyed more than 2,000 homes in Sonoma, Napa and other Northern California counties.

But the reports of the power equipment failures began to turn the spotlight on PG&E, the giant San Francisco-based utility, raising questions about how well it maintained its equipment in the area and whether it adequately cut back trees from power lines to reduce fire risk — as required by state law.

………

PG&E and other large utilities in California have a long history of being found responsible for major wildfires because of inadequate maintenance of their power lines.

In April, the state Public Utilities Commission fined PG&E $8.3 million for failing to maintain a power line that sparked the Butte Fire in Amador County in September 2015. That fire burned for 22 days, killing two people, destroying 549 homes and charring 70,868 acres.

CalFire announced last year that it will seek to force PG&E to pay $90 million in firefighting costs. More than 1,000 lawsuits and claims are still pending against the utility.

“It was more than just a lack of maintenance. It was a complete disregard for their requirements of vegetation management in rural areas,” said Burlingame attorney Frank Pitre, who sued on behalf of the victims.

PG&E claims that these winds were "hurricane force", which is a lie.

Winds were in the 45 mph range (sustained) with gusts (3-5 seconds) to 75 mph, which are not at all unusual for California.

If they hadn't been bingeing on their own seed corn to overpay senior management, PG&E would have had no problems, and the current disaster would not have happened.

These sorts of disasters will get worse with the impact of anthropogenic climate change.

California privately owned utilities in general, and PGE in particular, have a long record of  neglecting maintenance, and PUC has an equally long history of being in bed with these companies.

Now might be a good time to look at making municipally owned utilities easier via the initiative petition process.

It gives cheaper rates and better run utilities.

Strike while the iron, and the forest, and a few thousand homes, are hot.

It's Bank Failure Friday!!!

Nothing for a quarter, and now we have a bank and a credit union in the past week and a half.

Still the pace is ahead of 2016.

And here they are, ordered, and numbered for the year so far:

7. The Farmers and Merchants State Bank of Argonia, Aragonia, KS

Full FDIC list

And here are the credit union closings: 

9. Shreveport Federal Credit Union, Shreveport, LA

Here is the Full NCUA list.

So, here is the graph pr0n with last few years numbers for comparison (FDIC only):

Deplorable People of the Week

Seattle police officers including lead plaintiff Robert Mahoney who attempted to assert a 2^nd Amendment right to administer violence indiscriminately:

When the Department of Justice handed down remedies for the Seattle Police Department's excessive use of excessive force, it told officers they would need to dial back their penchant for deadliness. Just prior to the DOJ's civil rights investigation, the PD was responsible for 20% of the city's homicides. The DOJ recommended officers work on their de-escalation tactics, as well as partake in training meant to steer officers away from viewing anything strange (medical conditions, mental health issues, drug impairment, behavioral crises) as something to be shot at or beaten.

Seattle PD officials adopted the DOJ recommendations and altered the department's use of force policies. Rather than comply or quit, several police officers decided to file a federal lawsuit against the DOJ. The officers asserted a nonexistent right (the "right" to make it home alive) and hammered an existing right (the 2nd Amendment) to it in hopes of persuading a federal court that using less force less often somehow violated their right to keep and bear arms.

The crowdfunded lawsuit didn't get very far. The district court pointed out the 2nd Amendment does not create a "right" to defend yourself, much less attempt to guarantee officers' personal safety. Gun ownership is regulated, not a free pass for cops to violate PD use of force policies as they see fit. It also tossed a variety of other rights violations claims, noting these were even more tenuously connected to the officers' protest of the new use of force policy than the 2nd Amendment claims.

The officers appealed this decision because of course they did. Despite raising less than $4,000 of their $100,000 legal defense fund goal, the officers apparently had enough funding to lose twice. The Ninth Circuit Court of Appeals has rejected [PDF] the officers' ridiculous rights violation assertions. (h/t Kevin Gosztola)

These guys are not peace officers, they are a clear and present danger to the community.

Oh Snap!

In response to reports that the EU scientific report on the safety of its glyphosate (RoundUp) weedkiller, where large blocks of text were copied and pasted from Monsanto application for re-approval, the European parliament held hearings to investigate whether or not the agricultural giant exerted undue influence on the process.

Monsanto refused to attend the meeting, so banned Monsanto and its lobbyists from the European parliament:

Monsanto lobbyists have been banned from entering the European parliament after the multinational refused to attend a parliamentary hearing into allegations of regulatory interference.

It is the first time MEPs have used new rules to withdraw parliamentary access for firms that ignore a summons to attend parliamentary inquiries or hearings.

Monsanto officials will now be unable to meet MEPs, attend committee meetings or use digital resources on parliament premises in Brussels or Strasbourg.

While a formal process still needs to be worked through, a spokesman for the parliament’s president Antonio Tajani said that the leaders of all major parliamentary blocks had backed the ban in a vote this morning.

“One has to assume it is effective immediately,” he said.

I'm a pessimist, so I expect that, after aggressive American lobbying, the EU will re-approve the chemical, but I'd really love to see them get slapped down.

Yeah, Like This is Gonna Work………

The Commodity Futures Trading Commission, which in recent years has been rather more aggressive in its investigation and regulation of various financial shenanigans, is changing its policies to rely soley on financial malefactors reporting themselves.

Yeah, like That is going to work:

After years as a sleepy federal backwater, the Commodity Futures Trading Commission became one of Wall Street’s most aggressive watchdogs during the Barack Obama administration.

Now the agency — which is responsible for policing a broad swath of markets and financial machinery, from trading in commodities to digital currencies to the complex derivatives that helped torpedo the financial system in 2008 — is shifting its law enforcement strategy: It will increasingly look to banks and other financial institutions to come clean on their own about misconduct and problems in the market.

The commission’s director of enforcement, James McDonald, plans to unveil the new framework in a speech Monday night at New York University. It is premised on the idea that large financial institutions, given the right incentives, have the potential to be invaluable partners for law enforcement.

“We start with the shared understanding that the vast majority of businesses want to comply with the law,” Mr. McDonald will say Monday, according to a draft of the speech reviewed by The New York Times.

Yeah, this goes hand in hand with Citi going back into the Synthetic CDO market, so I expect to see a resurgence bucket shops to accompany this regulatory malfeasance.

We are f%$#ed.

Oh Dear Lord!

The vaguely legal form of gambling known as Synthetic CDOs are back, but don't worry, Citigroup is telling us that it's different this time.

"It's different this time," is the most terrifying phrase in finance:

By now, the whole Lucy-and-the-football thing has become a political cliché, which is the worst kind of cliché to be. However, while considering the history and practice of the Wall Street casino, it is the most accurate metaphor and it’s likely to be until the day of glory and sunshine when the tumbrels begin to roll. From Bloomberg:

The 35-year-old Citigroup Inc. director has spent the past two years meeting clients, speaking at industry panels and becoming the face of a resurgent market for synthetic CDOs -- complex derivatives that let buyers make big, leveraged bets on the health of corporate America. Along the way, she’s helped establish Citigroup as its dominant player. It’s an astonishing comeback for the roughly $70 billion market for synthetic CDOs, which rose to infamy during the crisis and then faded into obscurity after nearly destroying the financial system. But perhaps the most surprising twist is Citigroup itself. Less than a decade ago, the bank was forced into a taxpayer bailout after suffering huge losses on similar types of securities tied to mortgages. Now, many in the industry say Citigroup is responsible for over half the deals that come to market, though precise numbers are hard to come by.

I’ll bet they are.

This time, Citigroup says, it’s doing things differently. The deals are tailored in a way that insulates it from any losses, while giving yield-starved buyers a chance to reap returns of 20 percent or more. The market today is also just a fraction of its size before the crisis, and few see corporate defaults surging any time soon. But as years of rock-bottom interest rates have pushed investors toward riskier products, the revival of synthetic CDOs may be one of the clearest signs yet of froth in the credit markets.

Why in the everloving fck would we trust these clowns again? And, even if we all got really stoned and decided to do that, why would we trust them with the same goddamn hand grenades that blew up everything the last time? There’s recividism and there’s recidivism and then there’s a genetic predisposition to stick your hands in everyone’s pockets and steal every last lint-covered penny that’s in there.

This is unbelievably f%$#ed up and sh%$.

About F%##ing Time

After a continuing problems with driver vetting, incident reporting, and its treatment of its employees, Uber has been stripped of its operating permit by the Transport for London.

Specifically, they have been ruled that Uber is not a, "Fit and proper," private car operator:

Uber has been stripped of its London licence in a surprise move that dealt a serious blow to one of Silicon Valley’s fastest rising companies and sparked an outcry from a coalition of customers, government ministers and drivers at the ride-hailing company.

The firm’s application for a new licence in London was rejected on the basis that the company is not a “fit and proper” private car hire operator.

Uber’s cars will not disappear immediately as its current licence expires on 30 September and it plans to challenge the ruling by London’s transport authority in the courts immediately. The hailing app can continue to operate in the capital – where it has 3.5 million users – until the firm has exhausted the appeals process. Uber has 21 days to launch an appeal but can continue to operate until the process expires – which could take months.

Uber chief executive Dara Khosrowshahi wrote to staff on Friday confirming that the company would appeal the ruling. He said he disagreed with the decision but it was based on past behaviour.

“The truth is that there is a high cost to a bad reputation,” he wrote. “It really matters what people think of us, especially in a global business like ours.

………

TfL said it had rejected the company’s application to renew its licence because “Uber’s approach and conduct demonstrate a lack of corporate responsibility” in relation to reporting serious criminal offences, obtaining medical certificates and driver background checks.

The licensing body also said it was concerned by Uber’s use of Greyball, software that can be used to block regulatory bodies from gaining full access to its app and undertaking regulatory or law enforcement duties.

What Khosrowshahi is basically saying is that Travis Kalanick is simply too toxic to run Uber.

As Hannah Jane Parkinson has noted, "You name it, and if it’s sh%$#y behaviour, Uber has probably done it." (%$# mine)

Uber's primary innovation has always been a willingness to behave with complete disregard for the law and for ethics.

It's nice to see that bubble popped.

Why We Hate Them

I am referring to Comcast, of course, who is now suing the state of Vermont for the audacity to insist that they keep their promises:

Comcast has sued the state of Vermont to try to avoid a requirement to build 550 miles of new cable lines.

Comcast's lawsuit against the Vermont Public Utility Commission (VPUC) was filed Monday in US District Court in Vermont and challenges several provisions in the cable company's new 11-year permit to offer services in the state. One of the conditions in the permit says that "Comcast shall construct no less than 550 miles of line extensions into un-cabled areas during the [11-year] term."

Comcast would rather not do that. The company's court complaint says that Vermont is exceeding its authority under the federal Cable Act while also violating state law and Comcast's constitutional rights:

The VPUC claimed that it could impose the blanket 550-mile line extension mandate on Comcast because it is the "largest" cable operator in Vermont and can afford it. These discriminatory conditions contravene federal and state law, amount to undue speaker-based burdens on Comcast's protected speech under the First Amendment of the United States Constitution... and deprive Comcast and its subscribers of the benefits of Vermont law enjoyed by other cable operators and their subscribers without a just and rational basis, in violation of the Common Benefits Clause of the Vermont Constitution.

Rival providers Charter and Burlington Telecom don't have to comply with these special requirements, Comcast said. Instead, the other companies "need only comply with the non-discriminatory line extension policies" established in a VPUC rule.

Comcast's complaint also objected to several other requirements in the permit, including "unreasonable demands" for upgrades to local public, educational, and governmental (PEG) access channels and the building of "institutional networks ("I-Nets") to local governmental and educational entities upon request and on non-market based terms."

………

Comcast often refuses to extend its network to customers outside its existing service area unless the customers pay for Comcast's construction costs, which can be tens of thousands of dollars.

Comcast is regularly at the top of the list on the most loathed company in America, but somehow or other, they continue to flourish.

There is some sort of profound market failure going on.

What an Evil Little Sh%$!

I am referring, of course, to a Silicon Valley type, who have honed the little sh%$ to a fine edge.

Specifically, I am referring to to Peter Thiel, who is literally vampire who wants to use the blood of the young to extend his lifespan.

The latest bit of evil is his funding "patently unethical" human experimentation, specifically testing a live virus vaccine without any regulatory oversight on the island of St. Kitts:

Heavyweight tech investor and FDA-critic Peter Thiel is among conservative funders and American researchers backing an offshore herpes vaccine trial that blatantly flouts US safety regulations, according to a Monday report by Kaiser Health News.

The vaccine—a live but weakened herpes virus—was first tested in a 17-person trial on the Caribbean Island of St. Kitts without federal oversight or the standard human safety requirement of an institutional review board (IRB) approval. Biomedical researchers and experts have sharply rebuked the lack of safety oversight and slammed the poor quality of the data collected, which has been rejected from scientific publication. However, investors and those running the trial say it is a direct challenge to what they see as innovation-stifling regulations by the Food and Drug Administration.

………

Madden, Thiel, and other investors have invested $7 million into the vaccine’s development, according to Rational Vaccines, the company orchestrating the trial. Though Thiel could not be reached for comment, he has been openly critical of the FDA’s review process. At one point, he claimed that the agency’s processes were so overbearing that “you would not be able to invent the polio vaccine today.”

The lead researcher behind the vaccine, William Halford, formerly of Southern Illinois University, made similar claims. In a positive university press release, Halford was quoted as saying: “Many of the virus vaccines we currently put in our kids—chickenpox, mumps, measles, and rubella—were developed using live-attenuated viruses in the ’50s, ’60s and ’70s when the regulatory landscape was more relaxed… and they have worked remarkably well.”

He went on to suggest that the FDA has made “barriers too high” and that countries with less regulation were better for vaccine and drug development. “There are governments around the world that the WHO [World Health Organization] has approved for vaccine development,” he said. “We’re talking to those types of governments.”

………

Other researchers and experts strongly disagreed with Halford's stance and handling of a live, attenuated virus vaccine, which can cause infections in the uninfected or severe side-effects in those already infected. “What they’re doing is patently unethical,” Jonathan Zenilman, chief of Johns Hopkins Bayview Medical Center’s Infectious Diseases Division, told KHN. “There’s a reason why researchers rely on these protections. People can die.”

Robert Califf, who served as FDA commissioner during the Obama era, agreed. “There’s a tradition of having oversight of human experimentation, and it exists for good reasons,” he said. “It may be legal to be doing it without oversight, but it’s wrong.”

………

A spokesperson for Southern Illinois University, one of the vaccine’s patent holders, said that the university has no legal responsibility to ensure proper safety protocols for the trial. However, after questions about the lack of IRB [Institutional Review Board] approval (a federal requirement), the spokesperson said that the university would “take this opportunity to review our internal processes to ensure we are following best practices.”

(emphasis mine)

In addition to the quality of the study being so poor that it was refused for publication, there are also reports of skin lesions from a study size of only 17 patients.

I would have thought that this would have merited a visit from the FDA, and possibly an FBI investigation for conspiracy, but it appears that the rules do not apply to rich people, which is an even bigger problem.

More of This

Tronc, the company formerly known as Tribune Publishing, has failed in its bid to buy the Chicago Sun Times and the Chicago Reader.

Instead, a group of investors, including the Chicago Federation of Labor, purchased the publisher of the two papers, maintaining its independence of one of the largest media conglomerates in the nations:

In the end, one man made all the difference.

Edwin Eisendrath, the former Chicago alderman who ran losing campaigns for governor and congressman earlier in his career, just won the most unlikely challenge he’d ever undertaken: He kept the Chicago Sun-Times independent and out of the clutches of Chicago Tribune owner tronc. “It was bashert,” Eisendrath told me, using the Yiddish word for “destiny.” How else to explain the odds he overcame to make it happen?

On Wednesday, Eisendrath and a coalition of labor unions and individual investors closed on the purchase of the daily Sun-Times and the alternative weekly Chicago Reader from Wrapports Holdings LLC. Terms of the deal were not disclosed, but sources said the key was securing more than $11.2 million in escow to cover projected operating losses over the next two years.

“Today’s deal to buy the Sun-Times preserves two independent newspaper voices in Chicago, a rare thing in America these days,” Eisendrath tweeted. “We wanted to make sure that Chicago had a genuine voice with honest and good reporting that connects with working men and women.”

Eight weeks ago it seemed all but certain tronc would take over the Sun-Times in a move that many believed would have stifled competition and led to the inevitable demise of the city’s No. 2 newspaper. All that stood in the way of the deal was the vigilance of the U.S. Department of Justice Antitrust Division.

Alone in answering the Justice Department’s call for alternative bidders was Eisendrath, backed by the Chicago Federation of Labor and a belief that the Sun-Times was too vital to the life of the city to forfeit its independence.

My guess is that the (probably pre-Trump) DoJ call for bidders had a lot to do with Tronc losing the bid, because it implied a lot of litigation if the two big Chicago papers merged.

I'd like to see more official moves against consolidation.

Not The Onion

Real headline from the Los Angeles Times:

Nevada Has a Drug Problem: Shops Are Running out of Marijuana

Nevada is running out of pot, and the Department of Taxation is freaking out, because they have been making serious bank from this new industry.

Basically, it's an artifact of lobbying from (you guessed it) liquor distributors, who were opposed to competition for chemically induced stupid:

Nevada officials have declared a state of emergency over marijuana: There’s not enough of it.

Since recreational pot became legal two weeks ago, retail dispensaries have struggled to keep their shelves stocked and say they will soon run out if nothing is done to fix a broken supply chain.

“We didn’t know the demand would be this intense,” Al Fasano, cofounder of Las Vegas ReLeaf, said Tuesday. "All of a sudden you have like a thousand people at the door.…We have to tell people we’re limited in our products.”

In declaring a state of emergency late last week, the state Department of Taxation warned that “this nascent industry could grind to a halt.”

As bad as that would be for marijuana consumers and the pot shops, the state has another concern: tax revenue. A 10% tax on sales of recreational pot — along with a 15% tax on growers — is expected to generate tens of millions of dollars a year for schools and the state’s general fund reserves.

………

In the run-up to last year’s state referendum over legalization — which was overwhelmingly approved by voters, allowing people aged 21 and over to buy or possess up to an ounce of marijuana — the state’s powerful alcohol lobby worried that legalized weed would cut into liquor store sales.

So in a concession to the the alcohol industry, the ballot measure stipulated that for the first 18 months of pot sales only wholesale alcohol distributors would be allowed to transport marijuana from cultivation facilities to the dispensaries.

When legalization took effect July 1, nearly 50 dispensaries — all of them already in the medical marijuana business — had been licensed to sell recreational pot. But no alcohol distributors had been approved to transport it.

The state Department of Taxation, which regulates legal marijuana, said it had received about half a dozen applications from alcohol distributors but that none had so far met the state licensing requirements, which include background checks and security protocols.

As a result, the dispensaries have had to rely on marijuana already in stock.

Dispensaries and state officials had anticipated the problem, and in late June the Department of Taxation attempted to loosen the licensing rules to allow dispensaries to transport their own marijuana.

But a District Court judge blocked the request, arguing that the state needed to go through the regulatory process to determine how many distributors were needed. The state appealed the decision to the Nevada Supreme Court.

Needless to say the juxtaposition of legislative cowardice and regulatory and judicial missteps has created a complete clusterf%$#, which has the state of Nevada scrambling to secure a reliable supply of weed.

Under normal circumstances, I'd be asking, "What the f%$# were they smoking when they came up with this?" but in this case, I think that we actually know what they were smoking.

Now We Know Why the Republicans Hate the CFPB

The Consumer Financial Protection Bureau has just issued a rule for banks that prohibits them from using arbitration agreements to ban class action suits:

In roughly 240 days from now, banks and other financial companies will no longer be allowed to prohibit customers from banding together in class-action lawsuits through the use of binding arbitration clauses, as the Consumer Financial Protection Bureau today released a long-awaited finalized rule on arbitration.

The 775-page rule [PDF] doesn’t ban the use of forced arbitration clauses outright, but it dictates when financial institutions, lenders, and others can use the provisions and creates specific language to be included in consumer contracts. 

………

The most troubling aspect of arbitration clauses is the fact they almost universally contain bans on class actions. This means that if several customers are all wronged by a bank in the same way, they must each go through the arbitration process individually.

To make matters worse, arbitration rulings are final, even when the arbitrator made an error that would have changed the outcome. In some instances, the arbitrator doesn’t even give a reason for their decision — just a simple ruling in favor of one party.

………

Instead, affected companies can still use arbitration rules in their contracts with individual customers, but they can not use these clauses to stop consumers from being part of a group action.
The rule includes specific language that companies must use if they include an arbitration clause in a new contract.

The rule, which will take effect 60 days after it is published in the Federal Register and become enforceable after 241 days, does not apply to all consumer contracts. For instance, the CFPB notes that existing accounts are not subject to the arbitration ban.

………

In addition to prohibiting certain uses of forced arbitration, the CFPB’s rule aims to make the arbitration process more transparent.

Because companies claim that arbitration actually benefits consumers, these businesses will be required to provide information to the CFPB regarding the number of arbitration claims that are filed against it and details on the awards provided to consumers who arbitrate.

The information such as initial claims, counterclaims, answers to claims, and awards issued in arbitration must be submitted to the CFPB with customer information redacted. The Bureau intends to publish these redacted materials on its website beginning in July 2019.

By gathering this data the CFPB says it will be enabled to better understand and monitor arbitration, including whether the process itself is fair.

Of course, this is an anathema to Republicans:  They want to ensure that there is no accountability of big business ever, because they should be ordinary folks' lord and master.

It's a toxic mix of neo-feudalism, Objectivism, and class bigotry that drives Republicans, and it ain't pretty.

Here is the Consumer Financial Protection Bureau's press release.

Meanwhile in Oregon*………

Oregon has passed passed "Fair Work Week" Legislation, which requires a week's notice of employee schedules and a 10 break between shifts:

Oregon is set to become the first U.S. state requiring certain businesses to furnish workers with a week's notice of their job schedules and a minimum of 10 hours rest between daily shifts under a bill that won final legislative approval on Thursday.

The bill, dubbed the "fair work week" act by supporters, is aimed at giving greater predictability to low-wage employees whose hours tend vary widely from day to day or week to week. Democratic Governor Kate Brown is expected to sign the bill into law.

The measure would go into effect next year and apply to Oregon workers on the payrolls of retail, food service and hospitality companies with at least 500 employees worldwide.

Under the bill, those companies must provide employees in Oregon, starting on July 18, with written estimates of their work schedules seven days in advance, with the required scheduling notice increased to two weeks beginning in July 2020.

Workers also would be entitled to a break of at least 10 hours between work shifts from one day to the next, and to receive extra pay if they agreed to a shorter rest interval - typically between closing hours at night and opening hours the next morning.

Moreover, the bill protects employees from workplace retaliation for merely expressing a scheduling preference to their bosses.

Work schedule predictability has emerged as a major issue causing growing anxiety in the American labor force even as the U.S. jobless rate has fallen to below-average levels.

My daughter works in a restaurant, and their weekly schedules frequently come out less than 24 hours before the new week.

It's lazy management, and it they do it because they can.

Putting a cost of laziness on the employer is a very good thing.

^*If I had said "Texas" or "Florida" instead of "Oregon", you know that it would be a clusterf%$#, but in most other states, you have to read the article to figure out which way it goes.

It's Bank Failure Friday!!!

Because of a slightly confusing site, I missed am about 2 weeks late on some credit union closings:

6. LOMTO Federal Credit Union, Woodside, NY
7. Citizens Community Credit Union , Devils Lake, ND
8. Riverdale Credit Union , ​Selma, AL

Here is the Full NCUA list.


So, once again there are more credit union failures than there are commercial bank failures.

I still don't know why this is so, but it is profoundly odd to me.

This is a Grammatically Correct Use of the Term Irony

Donald Trump has commissioned vote fraud commission to prove that he actually won the popular vote in 2016. (Yes, this is Narcissistic insanity)

He has appointed prominent figures in the voter suppression movement including Kansas Secretary of State Kris Korbach and Hans "Der novotenführer" von Spakovsky, whose primary goal has been to keep blacks and Hispanics from voting, primarily through purging them from voter rolls.

This commission is a clear attempt to go national with the voter purges in an attempt to gain partisan political advantage, and, in an attempt to go national programs to disenfranchise minorities.

Basically, the commission will manufacture data, and then manufacture outrage, and use this to jump start national legislation to suppress minority voting.

This is clear to anyone with two brain cells to rub together, so when the commission requested complete voter registration data from the states and the District of Columbia, over half of the states election officials have told the commission to go pound sand.

It turns out that, due to vagaries in state election law, one of the Secretaries of State that is telling Kris Korbach to go pound sand, is Kansas Secretary of State Kris Korbach:

Kris Kobach, the co-chair of Donald Trump’s glorious Find The Five Million Illegals Who Voted For Hillary Commission, has been running into a bit of pushback to his letter asking all 50 states to submit detailed voter information to be used in a great big study that would supposedly root out all the voter fraud. At least 25 states have said they won’t or can’t comply — or will not submit all the data Kobach requested, either because they’re restricted by state law, or they don’t trust the commission, which is expected to skew the data to support Republican claims of massive voter fraud, and to recommend restrictions on voting rights.

Among the states that won’t be giving the “Presidential Advisory Commission on Election Integrity” all the data Kris Kobach wants is Kansas, where Secretary of State Kris Kobach explained that under state law, he can’t release the last four digits of voters’ Social Security numbers. The state will release all other information requested in the letter, like voters’ names, addresses, dates of birth, voting history, party affiliation, and felony criminal history. Kobach explained,

 “If the commission decides that they would like to receive Social Security numbers to a secure site in order to remove false positives, then we would have to double check and make sure Kansas law permits,” Kobach said.

“I know for a fact that this information would be secured and maintained confidentially,” he added in response to security concerns.

He happens to personally know the commission’s co-chair, after all, and he trusts Kris Kobach not to pull any funny stuff.

Several other states, however, know exactly who Kris Kobach is, and have decided not to play along with Kobach, like Virginia, where Gov. Terry McAulliffe issued a statement saying

This entire commission is based on the specious and false notion that there was widespread voter fraud last November […] At best this commission was set up as a pretext to validate Donald Trump’s alternative election facts, and at worst is a tool to commit large-scale voter suppression.

Mississippi Secretary of State Delbert Hosemann, a Republican, was a bit more blunt. His statement not only said Mississippi wouldn’t comply with the request for voter records, he also told Kobach that while he hadn’t yet received the letter, based on the copies he’d seen, his reply to the commission would be “They can go jump in the Gulf of Mexico and Mississippi is a great state to launch from.”

(emphasis mine)

I think there is a method to Republican madness here: They want to institute nationwide voter suppression, and they are using Trumps ego to push this whole effort along.

Unlike prior Republican Presidents, who had the hubris to believe that they could pick the lock of the minority vote, Trump is personally hurt by the 2.8+ million voter deficit, and really believes that this was from widespread voter fraud.

As such, Trump is the perfect patient zero for the plague of voter suppression.

Who Found Pictures of the Registrar of the Copyright Office Engaging in Carnal Congress with a Goat?

After decades of interpreting copyright in the most bone headed and restrictive way possible, the US Copyright Office has come out in favor of a "Right to Repair".

This means that , which will allow people who own products to repair them, despite licensing terms that lock down the products and attempt to force them to drive them to expensive service arrangements.

John Deer for example, is attempting to force farmers to do even the most basic maintenance on their tractors, oil changes, new spark plugs, etc., at the dealers.

This office literally had to be overruled by an act of Congress, the Unlocking Consumer Choice and Wireless Competition Act, because the office decided that consumers should have no right to unlock the phone that they owned.

I think that what happened was that the interim registrar (the last permanent registrar was fired in part for IP extremism) has realized that some common sense needed to be applied:

Last week, to little fanfare, the US Copyright Office took its first baby steps towards stopping auto-makers wrapping their software in copyright rules.

The decision is important because auto-makers use the Digital Millennium Copyright Act's “technical protection measures” (TPMs) provisions to restrict diagnosis and repair to an approved ecosystem.

That's especially galling for farmers in remote locations who have argued that they can't always wait for a factory rep to okay fixes to agricultural machines, while in the more mundane world of automobile mechanics, legitimate repair shops complain that Detroit uses the DMCA to exert market power.

In a lengthy report (PDF) that also canvasses how exceptions to the TPM rules could apply to accessibility technologies, device unlocking, and library archives, the office proposes legislation that sides at least in part with the “right to repair” lobby.

………

Since “bona fide repair and maintenance activities are typically non-infringing”, the report suggests using the DMCA to tie up the repair market wasn't a legitimate use of the law.

Hence “to the extent section 1201 precludes diagnosis, repair, and maintenance activities otherwise permissible under title 17, the Office finds that a limited and properly‐tailored permanent exemption for those purposes, including circumventing obsolete access controls for continued functioning of a device, would be consistent with the statute’s overall policy goals”.

While this sounds like basic common sense, but the application of common sense to IP law has been virtually non-existent over the past 30+ years.

This constitutes a revolutionary shift in culture, even if it is a minor change in policy.

We are finally seeing meaningful push-back against a copyright and patent regime that increases inequality, reduces innovation, and perverts our economy and our society.

Fasten Your Seatbelts, Europe

Because European regulators just shut down two Italian banks:

Friday, in another sign that the eurozone financial system remains vulnerable even as the economy improves.

The central bank said in a statement that Veneto Banca and Banca Popolare di Vicenza, both based in northern Italy, had failed or were likely to fail because they did not have enough capital to meet regulatory requirements.

They become the second and third banks to be declared effectively dead by the central bank, which acquired power to supervise eurozone banks at the end of 2014.

The first, earlier this month, was Banco Popular, Spain’s fifth biggest bank.

Shareholders of the two Italian banks will lose their money, as will investors in so-called junior bonds that are intended to absorb losses first.

But deposits in the bank will be protected, as will investors in so-called senior bonds.

After 3 years, 3 banks in a month.

I'm wondering what is going to happen when (and it's when, not if) the ECB actually tries to down a German bank.