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Deadly Cyclone Hits India

by maciao85 Posted on October 12, 2013

Mother Jones

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Cyclone Phailin NOAA

UPDATE 10:45 a.m. PT, Sunday, October 13, 2013: According to CNN, in India’s Odisha state, which was battered this weekend by Cyclone Phailin, “at least 13 people were killed after trees fell and walls collapsed when the storm hit, Police Chief Prakash Mishra said. Another death was confirmed in Andhra Pradesh state, India’s disaster management authority said. Many had feared the death toll would be higher. Massive evacuation efforts helped limit the number of casualties, officials said.”

UPDATE 7:30 p.m. PT, Saturday, October 12, 2013: Cyclone Phailin made landfall on Saturday night around 9 pm local time, according to the Times of India. “Broken glass pieces, wood shreds and asbestos sheets flew like killer projectiles in the adjoining cities of Gopalpur and Berhampur,” the Times reported. An estimated 12 million people were in the storm’s path by the time it made landfall, with wind speeds around the predicted 130 miles per hour. 18 fishermen were stuck at sea when the cyclone hit, according to the Times. As the sun rises in India Sunday morning, the country will begin assessing the damage.

By Saturday afternoon, a massive cyclone currently traveling across the Bay of Bengal is expected to hit the coast of India. The government has evacuated more than a quarter million people to prepare for the storm, named Cyclone Phailin (pronounced: phie-lin), which it expects to cause massive power outages, floods, and damage to homes in the region. Here are some facts on the storm, and what’s ahead:

How bad is this storm?

The India Meteorological Department describes Phailin as a “very severe” storm, and the National Center for Atmospheric research rates it as a Category 5. It’s expected to hit the coast with winds up to 137 miles per hour, 9.8 or more inches of rain, and storm surges up to 11.5 feet. For reference, the storm surge in the Battery in New York City during Superstorm Sandy peaked at 9.2 feet, and the surge in nearby Kings Point, NY was 12.7 feet according to the Weather Channel. The India Meteorological Department predicts “extensive damage” to houses made from hay and mud, which are common in the region, as well as flooding, power outages, traffic disruption, and “the flooding of escape routes” in areas affected by the cyclone.

Writing at Quartz, meteorologist Eric Holthaus thinks that Cyclone Phailin could be more damaging than current estimates (emphasis added):

At one point (2 am Friday, India time), one satellite-based measure of Phailin’s strength estimated the storm’s central pressure at 910.2 millibars, with sustained winds of 175 mph (280 kph). If those numbers were verified by official forecast agencies, they would place Phailin on par with 2005′s Hurricane Katrina, and break the record for the most intense cyclone in Indian Ocean recorded history.

To get a sense of the size of the storm, this satellite image from the University of Wisconsin shows the cyclone, which appears to be about half the size of India.

Where is it heading?

Cyclone Phailin will primarily hit two states on the eastern coast of India, Odisha and Andhra Pradesh, and is expected to cause heavy rainfalls in a third, West Bengal. Low-lying areas near the coast, which is dotted with small fishing towns, are expected to be damaged by the storm surge. Reuters reports that the Indian government has made an effort to evacuate people, though not all of them are willing to leave:

Some 260,000 people were moved to safer ground and more were expected to be evacuated by the end of the day, authorities in the two states said. Not everybody was willing to leave their homes and belongings, and some villagers on the palm-fringed Andhra Pradesh coast said they had not been told to evacuate.

“Of course I’m scared, but where will I move with my family?” asked Kuramayya, 38, a fisherman from the village of Bandharuvanipeta, close to where the hurricane is expected to make to landfall, while 3.5-metre (12-foot waves) crashed behind him. “We can’t leave our boats behind.”

What’s the difference between a cyclone and a hurricane?

There isn’t one. Hurricanes, cyclones, and typhoons are all the same weather phenomenon, but they have different names depending on where they occur. (This National Geographic article has a complete breakdown of storm names by region.)

Do cyclones hit India often?

Bangladesh and the eastern coast of India have a history of devastating cyclones. According to Weather Underground‘s history of cyclones in the region, “most of the deadliest tropical storms on earth have occurred in the Bay of Bengal when tremendous storm surges have swamped the low-lying coastal regions of Bangladesh, India, and Burma.” Of Weather Underground‘s list of the 35 deadliest storms on record, 26 of them occurred in the Bay of Bengal.

As cyclone Phailin heads towards land, the Hindu Times reports that many people are recalling the massive Cyclone 05B, often referred to as the Odisha cyclone, that hit the area in 1999 and killed nearly 10,000 people.

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Deadly Cyclone Hits India

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Obama’s Second Nobel Peace Prize?

by pawel Posted on October 11, 2013

Mother Jones

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There was a fair bit of huffing when the Norwegian Nobel Committee awarded President Barack Obama the Nobel Peace Prize in 2009, less than eight months after Obama had moved into the Oval Office. Too soon, declared critics and skeptics, who had a point. The president had not earned the award through any particular action. And he recognized that in his initial remarks about winning the prize: “Let me be clear: I do not view it as a recognition of my own accomplishments, but rather as an affirmation of American leadership on behalf of aspirations held by people in all nations. To be honest, I do not feel that I deserve to be in the company of so many of the transformative figures who’ve been honored by this prize.”

But Obama may well deserve a smidgen of credit for the Nobel Peace Prize that was handed out this week. The winner is the Organization for the Prohibition of Chemical Weapons, the Hague-based body created to enforce the UN Chemical Weapons Convention that bans such arms. The OPCW is now busy overseeing the cataloging and destruction of Syria’s chemical arsenal. Hence, the Obama connection.

It seems fair to argue that the OPCW is destroying chemical weapons equipment in Syria because Obama took a stand after the regime of Bashar al-Assad presumably attacked a suburb of Damascus with chemical weapons in August and killed about 1,400 people. After Obama threatened to launch a retaliatory attack on Syria with the aim of deterring Assad from again using these horrific weapons—a threat that resulted in a political kerfuffle in Washington—Russian leader Vladimir Putin brokered a deal under which Assad acknowledged he possessed chemical weapons and agreed to place them under international control. The subsequent negotiations are still under way, but, at least for the time being, Obama did achieve his aim—preventing the further use of chemical weapons in Syria. Moreover, he placed Putin on the hook for Assad’s chemical weapons.

Partly as a result of Obama’s actions, Assad’s use of chemical weapons became a top-line priority of the global community, and the work of the OPCW received far more notice. As Thorbjoern Jagland the chairman of the award committee, noted, “Recent events in Syria, where chemical weapons have again been put to use, have underlined the need to enhance the efforts to do away with such weapons.”

In trying to build support for a strike on Syria, Obama cited the importance of supporting the global ban on chemical weapons and echoed his previous calls for steps toward nuclear disarmament. Recognizing the OPCW award is a boost for international disarmament endeavors. After it was announced, the Stockholm International Peace Research Institute made this point:

SIPRI warmly welcomes the award of the 2013 Nobel Peace Prize to the OPCW, an organization closely aligned with the aims and work of SIPRI. The world is a safer and more peaceful place as a result of the work of the OPCW.

Achieving disarmament is a long-term, incremental process and implementing the Chemical Weapons Convention has not always been a high-profile activity. Awarding the prize to the OPCW at this time is also a recognition of the hard work of chemical weapons inspectors now working in Syria under dangerous conditions.

The achievements of the OPCW show that, thanks to international cooperation, it is possible to rid the world of chemical weapons. Indeed, they demonstrate that a world free of weapons of mass destruction is politically and technically feasible.

This Nobel Peace Prize is hence a reminder that the reduction and abolition of nuclear weapons are possible, and that it must be tackled as well. And once states have completely abandoned all nuclear, biological and chemical weapons, they must work together to prevent their reâ&#128;&#145;emergence, whether in the hands of states or non-state actors. The work of the OPCW—and its dedication to peace and security to help to form a safer world for all—will thus remain important for many years to come.

Don’t expect Obama to claim any credit for this award. But perhaps the leaders of OPCW can send him a thank-you card.

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Obama’s Second Nobel Peace Prize?

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6 Risky Gun Storage Products Sold by the NRA

by jp19gkx Posted on October 1, 2013

Mother Jones

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This Sunday, the New York Times published an extensive report on children accidentally killed by guns. Most of the tragic examples cited involved kids (almost always boys) coming across an unsecured firearm. As Mother Jones has previously reported, owning a gun has been found to substantially increase the risk of accidental death. Studies have also found that percent 40 percent of homes with guns and kids have at least one unlocked firearm. And an experiment by the American Academy of Pediatrics found that one third of 8- to 12-year-old boys who find a handgun will pull the trigger.

Nevertheless, the National Rifle Association has fought efforts to require safer gun storage. On its website, it even sells various gun storage products that ensure easy access to loaded weapons—without safeguards to protect curious kids (or anyone else). Here are a few:

The NRA Minuteman Concealment Mantel Clock
The NRA Store claims that, “like our revolutionary heroes,” this mahogany-stained working clock “conceals an underlying, defensive capability.” Simply pulling back on the clock’s magnetic front panel allows “quick access” to a gun up to 8 inches long, offering you a “heightened sense of security in your home.”

NRA Diversion/Concealment Book Set
These hollowed-out book covers‘ “elegant spines blend seamlessly with other fine literature” and easily open to store handguns up to 10.5 inches long. They come in two colors: The red set comes with the titles Life and Liberty and The Framework of Freedom. The black set comes with Eternal Vigilance and Rendezvous with Destiny.

NRA Amendment II Peacemaker Wooden Box
With decorations “reminiscent of 19th century Western designs,” this pine, birch, and poplar box features images of an American flag, three Peacemaker revolver, and the full text of the Second Amendment on a removable lid covering enough space for a real Peacemaker. The box is recommended for storing a flag, jewelry, documents, or “other items in need of old fashioned American protection” (hint, hint).

NRA Concealed Carry Day Planner
Featuring separate compartments for a handgun and a three-ring binder stocked with calendar pages, this tactical organizer also has lockable zippers—but a lock is not included.

NRA Under the Desk Holster
For those who need a firearm handy while checking email or paying bills, the NRA touts this desk holster as an “an easy way to inconspicuously keep your handgun at arm’s length.” The elastic holster is designed to “safely and securely” fit any size handgun.

Holster Mate
When combined with the NRA Slide Holster, the Holster Mate® allows you to slip your holster off your belt and onto a metal bracket that fits between your bed’s mattress and box spring. A hook-and-loop backing is included to eliminate slippage.

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6 Risky Gun Storage Products Sold by the NRA

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Here’s Where You’re Most Likely to Die From Air Pollution

by Aaron Darek Posted on September 20, 2013

Mother Jones

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This story first appeared on the Atlantic Cities website and is reproduced here as part of the Climate Desk collaboration.

Where on earth are you most likely to die early from air pollution? NASA provides the answer with this mortally serious view of the planet, and it is: lots of places.

Like tar stains on a healthy lung, the sickly yellow and brown areas in this visualization represent regions with significant numbers of pollutant-influenced deaths. Heavily urbanized places in eastern China, India, Indonesia, and Europe are stippled by the darkest colors of snuff, meaning they experience rates of ruination as high as 1,000 deaths per square kilometer each year.

In good news, areas painted in blue show where humanity has managed to lower its output of choking smog since the 1850s. These safer havens include spots in the middle of South America and the southeastern United States, where the amount of agricultural burning has decreased since the mid-19th century.

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Here’s Where You’re Most Likely to Die From Air Pollution

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The Case Against Rebuilding the Coastline After Superstorm Sandy

by Julie Plunkett Posted on September 17, 2013

Mother Jones

This story first appeared on the Atlantic Cities website and is reproduced here as part of the Climate Desk collaboration.

One year after Sandy, many of the affected communities remain vulnerable to another storm because of indecision about how best to respond. There are three basic options to mitigate risks from sea level rise and storm surge: Protect against the rising tides with engineered structures, accommodate the rising waters and make structures as resilient as possible, or retreat from risky low shorelines to higher ground. Our challenge is to tailor these options to particular locations, and to balance this with cost-effectiveness and sustainability over the long run. Retreat needs to be considered not as a defeatist last-resort, but as proactive strategy needed in some places.


Flood, Rebuild, Repeat: Are We Ready for a Superstorm Sandy Every Other Year?


Charts: How Likely Is Another Superstorm Sandy?


“The Sea Was Swallowing It Up”


Watch This House Being Raised Out of the Floodplain

See more MoJo coverage of climate change.

Take New York City, for example, where Mayor Michael Bloomberg has proposed 257 initiatives to be pursued over the next 10 years at an estimated $20 billion. He has repeatedly emphasized that the city “will not retreat from the waterfront.” But it will be hard to stand by this categorical commitment as sea levels continue to rise.

Meanwhile, New York Governor Andrew Cuomo proposed a $400 million home-buyout program, of which a meager $170 million has been HUD-approved. Only homes with damage more than 50 percent of their value are eligible. The Oak Beach community in Staten Island has applied as a pilot program for a community-based buyout, but hasn’t yet been approved. New Jersey Governor Chris Christie is encouraging rapid rebuilding while also proposing a limited buyout program. But with no funding set aside for it, he has made clear he prefers to rebuild rather than retreat.

For individual homeowners, the options are bleak. The cost to accommodate, to raise a structure—if that’s even technically possible—normally far exceeds insurance claims. But to not raise it or otherwise adapt means increasing insurance premiums by factors of five or more, making flood insurance simply unaffordable for many (though it is mandatory for mortgage holders). Selling is not a viable option either, since many home prices have plummeted below half the original cost. Owners can become trapped with foreclosure as the only option—which is why governments need to take a leading role in developing other, more feasible, options.

These options should include support for buyouts in mid-Atlantic communities, at least for coastal and estuary locations that are either at elevations of ten feet or less above the local mean higher high tide or 5 feet above the latest mapped FEMA 1 percent per year base flood elevations, whichever is higher. Once buyouts at these elevations are secured, they should progress to higher elevations.

Disallow new residential development in those low-lying elevations unless it is flood-adapted (safely moored and floatable or substantially raised with raised or floodable utility connections). With urgency, local building codes need to be re-written to take this into account, since those specifications don’t yet exist.

Know that flood-protective structures—sea gates, levees, or walls—have limits. To start, sea levels will inevitably surpass their finite design heights. But before that ever happens, they introduce their own collateral hazards. A barrier system meant to protect an estuary or river with considerable discharge could flood communities behind the protective systems.

Develop a set of land-use priorities. Infrastructure, including transportation networks, sewage treatment plants, solid waste facilities, energy supply and distribution systems, utilities, and public health facilities demand the highest priorities for adaptation, whether by protection, accommodation (some utility distribution systems could be made submergible; other system elements could be raised or made floatable); or by retreat to higher ground. In any case, for this essential infrastructure, higher flood standards need to be considered (such as the 0.2%/year flood elevations), and margins for sea level rise must be added that are in a time horizon commensurate with the expected lifetime of the facility itself. New rights of way will need to be relocated from low-lying areas to higher elevations.

These measures should be seen as an opportunity. The benefits of rebuilding more resiliently and at safer grounds can catalyze the modernization of what, for many municipalities, has become antiquated infrastructure. Subways, other mass transit systems, and road tunnels should be reconsidered before they become victims to ever more frequent saltwater flooding. Rail systems along the East Coast are a century old in their basic designs, and are located at ever more flood prone elevations and locations. Facing up to the demands imposed by climate change provides us with an opportunity to see a long overdue high-speed train network connecting storm-resilient cities.

Likewise, our energy-wasting land-use patterns should be consolidated and transformed from a suburban to a denser urbanized mode with reduced home-to-work travel time facilitated by mass transit, which not only makes us more resilient, but it just makes better sense. If we needed Sandy to advance us into a better future, we should celebrate Sandy’s first anniversary with optimism, and then get to work.

The “Rethink, Rebuild” series is a co-production of The Atlantic Cities and NYU’s Institute for Public Knowledge.

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The Case Against Rebuilding the Coastline After Superstorm Sandy

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Relocation of Alaska’s Sinking Newtok Village Halted

by TheodoreT Posted on August 8, 2013

Mother Jones

This story first appeared on the Guardian website and is reproduced here as part of the Climate Desk collaboration.

An Alaskan village’s quest to move to higher ground and avoid being drowned by climate change has sputtered to a halt, the Guardian has learned.

Newtok, on the Bering Sea coast, is sinking and the highest point in the village—the school, which sits perched atop 20-foot pilings—could be underwater by 2017. But the village’s relocation effort broke down this summer because of an internal political conflict and a freeze on government funds.

The Guardian wrote about the strains placed on Newtok by the erosion which is tearing away at the land, and at the villagers’ efforts to move to a new site, known as Mertarvik, in an interactive series in May.

Those tensions fed a rebellion against the village leadership, the Newtok Traditional Council, which had run the village for seven years without facing an election, and the administrator overseeing the relocation effort, Stanley Tom. His critics said he had botched the move to Mertarvik, and neglected the existing village.

Since October, Newtok residents voted repeatedly to elect a new roster of candidates to the council. They also tried to remove Tom. But the council refused to recognize the results, and Tom refused to step aside.

In July, the Bureau of Indian Affairs took the unusual step of intervening in the internal dispute, and ruled the old council—which was working closely with Tom—no longer represented the villagers of Newtok. In a July 11 letter, Eufrona O’Neill, acting regional director of the BIA, noted the agency generally did not intervene in tribal political conflicts.

But she said the standoff put the village at risk: “The continuation of a leadership vacuum would be detrimental to the best interests of the tribe, particularly in the present circumstances, where the community is in the midst of trying to physically relocate to a new village site due to serious erosion occurring at the present site.”

O’Neill noted the confusion could freeze funds for the village, as government agencies withhold funds if there are doubts about lawful signing authority. She went on to determine that the BIA now recognized the new council, which had challenged Tom’s authority. Tom said in a telephone interview he would appeal the ruling—ensuring the political standoff continues.

The long stalemate has cost the village several months in its efforts to relocate, Tom said. “Everything is kind of frozen right now,” he said. “We’ve had a pretty big setback.” Other relocations efforts were also on hold for unrelated causes.

The internal dispute exposed the severe strain on native Alaskan villages—such as Newtok—in dealing with the effects of climate change. Some 186 native Alaskan villages—or 86 percent of all native communities in Alaska—are threatened by climate change, a federal government report found.

Many villages, like Newtok, are losing land to erosion. The Ninglick River, which encircles Newtok, is eating the land out from under the village. Others are sinking in the melting permafrost. A handful have started the process of relocation. But none had gone as far as Newtok in finding a new site and beginning the slow and laborious process of negotiating through the web of state agencies to find funds for their relocation.

Robin Bronen, a human rights lawyer in Anchorage, has argued extensively that the federal government’s failure to recognize slow-moving climate threats as disasters leaves such communities stranded, with no clear set of guidelines—or designated funds—to secure their communities in place, or plan a move.

Now even Newtok’s relocation effort is in trouble. Amid the funding delays and political crisis, Newtok did not take on any new building work—leaving the 350 residents with no place to go when the waters come in. It was the second year in a row the village was forced to cancel planned construction. In 2012, a barge laden with materials for a road project undertaken by the military ran aground—shutting down construction for the year.

Tom had said at the start of the year that he hoped 2013 would bring a burst of construction at the new site. He had initially hoped to use more than $4 million in Alaskan state government funds to bring in heavy equipment to quarry rock and to build housing for the villages. Tom also said he was hoping to complete a detailed planning survey.

There were plans also to complete the largest planned structure for the new village—an evacuation center designed to provide shelter to all of Newtok’s residents in the event of a severe storm. The evacuation center now consists of a simple concrete platform. But the funds were not released, and Tom’s determination to contest the BIA decision suggests the standoff could continue.

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Relocation of Alaska’s Sinking Newtok Village Halted

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NRA attacks “shadowy network” of enviros and zoos fighting to ban lead bullets

by Raisacjayv Posted on August 6, 2013

NRA attacks “shadowy network” of enviros and zoos fighting to ban lead bullets

By Claire Thompson

Shutterstock

In search of the truth.

You might think the NRA would be busy enough fighting its current battles, fending off crazy ideas like expanded background checks for gun sales. But no. The group is now picking a whole new fight, this one against activists who want to ban lead bullets.

Studies have shown that as many as 20 million birds, including endangered California condors, die each year from lead poisoning after ingesting bullet fragments. Ammunition is likely the greatest unregulated source of lead released into the environment, according to a statement [PDF] from scientific experts in lead and environmental health. Some states, notably California, are now weighing regulations to outlaw the use of lead in bullets.

The NRA isn’t going to stand by and let that happen. The group has launched a campaign called Hunt for Truth to fight back against “the assault on traditional lead ammunition” by targeting the groups and individuals — mostly scientists, nonprofits, and government agencies — behind this unconscionable attack on American values.

But the thing is, requiring hunters to use lead-free bullets wouldn’t cause them any great hardship, the Huffington Post reports:

Lead-free bullets are widely available from top manufacturers, and have not been shown to function any differently than bullets containing the highly toxic element.

So this should be a no-brainer — an easy opportunity for the NRA to toss the bird-huggers a bone and get back to its more important mission of keeping guns less regulated than toys. But since when does the NRA cave that easily?

In order to rally its members to oppose the lead regulation, the NRA described a conspiracy theory involving crooked scientists, phony research, and a shadowy network of nonprofits, zoos and government agencies all conspiring to ban hunting.

According to the NRA, an “activist portion of the scientific community” has formed “a highly organized network of like minded researchers with an agenda to ban lead ammunition.” In order to thwart this looming threat, “Hunt for Truth will expose the researchers associated with ‘faulty science’ critical of lead ammunition,” the gun lobby says.

Scientists aren’t the NRA’s only new targets. Nonprofits like the San Diego Zoo and the California Condor Recovery Team are also on the enemies list. The NRA claims these groups “have considerable influence over many legislators and regulators,” which they use to “capture” the regulatory agencies and bureaucrats responsible for lead ammunition restrictions.

Now that’s rich: the NRA — perhaps the nation’s most powerful lobby, commanding mind-boggling subservience from Congress and other lawmakers — accusing nonprofit environmental groups of controlling the legislative process. The San Diego Zoo and the California Condor Recovery Team can only dream of having even the tiniest fraction of the “considerable influence” the NRA wields. But hey, these are people who think we’d all be safer with more guns, not fewer. I can only imagine the kind of paranoia that must go hand-in-hand with that mentality.

Although I am intrigued by the idea of an underground network of shady zoos; sounds spooky. Someone call M. Night Shyamalan. Or Scooby Doo.

Claire Thompson is an editorial assistant at Grist.

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NRA attacks “shadowy network” of enviros and zoos fighting to ban lead bullets

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Pie Chart of the Day: Police Are Tracking You 24/7

by 0dyqe2k7 Posted on July 17, 2013

Mother Jones

The ACLU reports today that routine tracking and storage of license plate information is becoming increasingly common:

License plate readers would pose few civil liberties risks if they only checked plates against hot lists and these hot lists were implemented soundly. But these systems are conï¬&#129;gured to store the photograph, the license plate number, and the date, time, and location where all vehicles are seen — not just the data of vehicles that generate hits. All of this information is being placed into databases, and is sometimes pooled into regional sharing systems.

….More and more cameras, longer retention periods, and widespread sharing allow law enforcement agents to assemble the individual puzzle pieces of where we have been over time into a single, high-resolution image of our lives. The knowledge that one is subject to constant monitoring can chill the exercise of our cherished rights to free speech and association. Databases of license plate reader information create opportunities for institutional abuse, such as using them to identify protest attendees merely because these individuals have exercised their First Amendment-protected right to free speech. If not properly secured, license plate reader databases open the door to abusive tracking, enabling anyone with access to pry into the lives of his boss, his ex-wife, or his romantic, political, or workplace rivals.

The chart on the right is for Maryland: for every million license plates read, only 47 were even tentatively associated with actual serious crimes.

As with NSA phone records, this is something we have to figure out as a society. These kinds of databases almost certainly help to catch bad guys. Nobody knows how much they help, but it’s probably nonzero. So is that worth it? Do we mind having government agencies track our public movements every minute of the day? Do we mind if they team up with the private sector to track our buying habits? Do we mind if they keep track of who we call, who we email, and who we send letters to? Do we seriously think that if we shrug our shoulders at this, that it won’t someday be abused on a massive scale?

I don’t. But I’m unsure of how my fellow citizens feel about this. Most of them don’t really seem to mind as long as they think it keeps them just a little bit safer.

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Pie Chart of the Day: Police Are Tracking You 24/7

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Elizabeth Warren Declares Victory over GOP on Senate Confirmation of Wall Street Watchdog

by Sue Allen Posted on July 17, 2013

Mother Jones

“It is truly a historic day,” Sen. Elizabeth Warren said Tuesday after the Senate agreed to allow a vote on Richard Cordray to head the Consumer Financial Protection Bureau (CFPB), the consumer watchdog agency that Warren devised and helped get on its feet. “It took nearly two years, but…now the American people will have a strong watchdog in Washington,” Warren continued in a conference call with reporters. “David beat Goliath.”

On Tuesday evening, the Senate confirmed Cordray by a vote of 66 to 34 after Republicans agreed not to filibuster his confirmation. The vote came after Republicans spent years trying to block Cordray’s appointment and attacking the CFPB in court.

The CFPB has already accomplished much to benefit consumers—forcing credit card companies to refund nearly half a billion dollars they juked consumers out of, implementing new rules to make mortgages safer, and creating a center that fields consumer complaints about shady dealings by financial institutions. But without a director confirmed by the Senate, the agency’s powers were limited. Now that Cordray has been confirmed, the CFPB is fully legitimate, Warren says. “There are no more clouds. Period. This locks all the pieces in place,” she told reporters Tuesday.

It was a long struggle. Senate Republicans filibustered Cordray when Obama first nominated him to head the agency in July 2011. In response, Obama used a recess appointment—a presidential appointment that happens while the Senate is on vacation and does not require Senate approval—to install Cordray in January 2012. Republicans then sued to challenge the constitutionality of Cordray’s appointment. Senate Republicans intended to filibuster Cordray again this time around, demanding fundamental changes that would weaken the CFPB before they’d allow a vote. Harry Reid, the Democratic Senate majority leader, threatened to change the rules of the Senate to block the GOP filibuster. But late Tuesday, the Senate devised a truce to avert the Republicans’ filibuster—and Reid’s rule change.

The agency was devised by Warren after the financial crisis, who pointed out at the time that it was “impossible to buy a toaster that has a one-in-five chance of bursting into flames and burning down your house. But it is possible to refinance an existing home with a mortgage that has the same one-in-five chance of putting the family out on the street.” The agency came to life as part of the 2010 Dodd-Frank financial reform act, and Warren has aggressively campaigned for Cordray’s confirmation ever since.

Republicans will continue to push for changes to the agency, such as forcing the agency to be subject to the congressional appropriations process so Congress can revoke its funding and allowing other regulatory agencies to veto CFPB actions. And the Supreme Court will review the constitutionality of Cordray’s previous recess appointment in the fall.

But Warren is not worried. “They can introduce whatever legislation they want. The political stalemate is over,” she told reporters, adding that any Supreme Court ruling would have few implications since Cordray now has the Senate’s official approval. As she said in a statement after the Tuesday vote, “The consumer agency is the law of the land and is here to stay.”

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Elizabeth Warren Declares Victory over GOP on Senate Confirmation of Wall Street Watchdog

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The Not-So-Triumphant Return of Glass-Steagall

by BerndHugg Posted on July 12, 2013

Mother Jones

The unlikely duo of John McCain and Elizabeth Warren want to bring back Glass-Steagall, the Depression-era law that split up commercial banking and investment banking. The basic idea behind this is sound: commercial banks are insured by taxpayer dollars, so they should be conservatively run. Investment banks, which make lots of risky bets, should be on their own.

But I’ve never been much of a fan of bringing back Glass-Steagall. There are several reasons, but I really only need one: in practice, its repeal doesn’t seem to have made any difference. Take a look at the two most serious bank failures in 2008: Bear Stearns and Lehman Brothers. They were both pure investment banks. IndyMac and Countrywide were pure commercial banks. Wachovia did both commercial and investment banking. AIG was an insurance company. Merrill Lynch was a pure investment bank that got rescued by combining it with Bank of America.

Now take a look at the strongest banks in 2008. JP Morgan Chase and Wells Fargo combined commercial and investment banking. Goldman Sachs and Morgan Stanley were pure investment banks.

Basically, I just don’t see a trend here. Both pure and combined banks failed in 2008, and both pure and combined banks succeeded. And that’s without even getting into the shadow banking system, where many of the problems of the financial crisis originated.

I’m in favor of smaller banks, and I suppose that splitting up the big universal banks would accomplish that. But either Congress is willing to split up the big banks or it isn’t. If it’s not, then the McCain-Warren bill won’t pass. If it is, there are far better ways of doing it.

For my money, I wouldn’t bother at this point. I’d simply mandate higher capital requirements for everyone, and much higher capital requirements for the biggest banks on a sliding scale. That would automatically put pressure on banks to stay smaller, and it would make them safer regardless of their size. It’s a better, simpler way to go.

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The Not-So-Triumphant Return of Glass-Steagall

Posted in FF, GE, PUR, Safer, Uncategorized, Venta | Tagged , , , | Comments Off on The Not-So-Triumphant Return of Glass-Steagall