How the Teamsters Beat Goldman Sachs

[kondor]

If this is already posted, I apologize.

How the Teamsters Beat Goldman Sachs

By ANDREW COCKBURN

Among the causes of the ongoing financial meltdown, many experts cite the Commodity Futures Modernization Act, smuggled through Congress late on a December evening in 2000. The law exempted Credit Default Swaps (CDS) which are essentially bets on the value of securities from all regulation, including state gambling laws. This allowed Wall Street to conclude that any risk could be hedged with a bet. The result, of course, was disaster, with economic consequences that we will be feeling for a very long time.

“When I wrote part of that legislation with these hands on my little keyboard,” a former financial industry lobbyist who helped craft the law recently told me, “I didn’t realize that this was going to make people lose their jobs, pension funds their reserves, universities their endowments. But that’s what happened”

Thought it might be interesting.

[slavenomore]

It is very interesting. Goldman Sachs denied doing it yet this says that the Teamsters had inteligence that they were doing it.

"With strategic input from Greenberger, the Teamsters were able to identify whom they were up against. “We picked up intelligence that Goldman (Sachs) was making markets (in CDS) and then we got some direct evidence,” Teamster spokesman Ian Gold tells me. But Goldman was not alone. “All of Wall Street” was trying to bring the company down."

Our leaders did a great thing by standing up against this. Very great and commendable.

"Hedge fund entrepreneur David Einhorn, who denounced the malign practice at an investors’ conference earlier this year, claims that “basis packaging” has already been a major contributor to the bankruptcy of companies such as Abitibi-Bowater, General Growth Properties, Six Flags and even General Motors. Deriding calls for regulation of the CDS business, he declared that “trying to make safer CDS is like trying to make safer asbestos. How many real businesses have to fail before policy makers decide to simply ban them?”

Waiting for policy-makers to do the right thing will take a while. Credible reports indicate that Rahm Emanuel is counting on Wall Street cash to get the Democrats through the 2010 election. But fortunately the YRCW workers had the backing of their union, the Teamsters.
"

[stldude44]

Only when the Teamsters prepared to picket Brigade’s Park Avenue offices did the fund fold.

Just this once, a powerful union stopped the casino operators in their tracks. Meanwhile, too many other workers are left simply to fulfill their role as chips on the tables.

Andrew Cockburn: How the Teamsters Beat Goldman Sachs


This goes to show that the endless work going on behind the scenes by the Teamster leaders, while being criticized by some for allegedly not knowing what they were doing, was the main thing that saved YRC and allowed them new life and kept 30,000+ Teamster workers employed.

I wonder what the naysayers think now?

[Pullin3]

Just this once, a powerful union stopped the casino operators in their tracks. Meanwhile, too many other workers are left simply to fulfill their role as chips on the tables.

Yes, and I'm sure the union hasn't done anything for anyone at any other time

[stldude44]

Originally Posted by Pullin3

Yes, and I'm sure the union hasn't done anything for anyone at any other time

Of course the Unions have done much more to help their members. Judging from the lack of posts here many evidently take this with a grain of salt. I don't think that the magnitude of this event is being fully realized or appreciated by the masses. These money grubbing robbers were counting on putting all of you out of work for their own profit and backed down when they didn't want their true colors exposed....and one even decided that it would be good PR to assist us. That had to be a nearly impossible task to pull off but it happened. In this day and age that's huge.

[stldude44]

I guess the point I'm trying to make is that so many are quick to badmouth our leaders but very few will give them credit even for something this important. Sadly, to me that says a lot about the average member these days.

[MULER]

Before you trumpet their horn what proof do you have. Are we to believe an article? Should we also believe all the bad articles about Hoffa also. Please save the rah rah for when we have proof that he really did something. How about the people that are still posting how they are getting screwed? Why don't you notify all the OHFL TEAMSTERS and tell them how wonderful the Hoffa Team is. At what point did he help those Teamsters that fought and were never brought back.(NEVER). They swapped because they were offered a better deal. That is what I believe. And trust me when money people do something it is not for nothing. But you have the right to believe what you want and so do I. If what you believe is true then shouldn't there be criminal charges forth coming? I will be awaiting the trial. PS. What do you think we pay Hoffa for anyways? YOUR BROTHER ALWAYS!

[HBF]

Muler, Brother I sometimes wonder if he walked on water if that would be good enough to get a hell yeah out of you.

[stldude44]

Originally Posted by MULER

Before you trumpet their horn what proof do you have. Are we to believe an article? Should we also believe all the bad articles about Hoffa also. Please save the rah rah for when we have proof that he really did something. How about the people that are still posting how they are getting screwed? Why don't you notify all the OHFL TEAMSTERS and tell them how wonderful the Hoffa Team is. At what point did he help those Teamsters that fought and were never brought back.(NEVER). They swapped because they were offered a better deal. That is what I believe. And trust me when money people do something it is not for nothing. But you have the right to believe what you want and so do I. If what you believe is true then shouldn't there be criminal charges forth coming? I will be awaiting the trial. PS. What do you think we pay Hoffa for anyways? YOUR BROTHER ALWAYS!

What I'm saying here is that he did something major in this particular case. If not believing it makes you feel better that's your prerogative. The Oak Harbor issue is another story for another thread. I'm talking about this one and this thread starter. I don't know what the criminal charges would be since the derivative thing wasn't illegal, just about as underhanded as it gets. As far as the article and proof, if it's wrong or a lie there are libel charges that could be filed but I won't hold my breath on that. I'm surprised that you, of all people, would be so angry about something that's a major plus for the Teamsters at YRC........you know, the ones that are your Brothers Always. That just doesn't compute.

[BilyWamBam]

Yeah it will be a while before we hear of the SWEET HEART deals flying around at the last second, probably when we receice our contract books!!