Venezuelan Spring

More than words are at work. Last week the Bank of England blocked Mr. Maduro from withdrawing $1.2 billion in gold reserves. On Friday the U.S. gave Mr. Guaidó control of Venezuelan government accounts at the Federal Reserve Bank of New York and other U.S.-insured banks.

.. Venezuelans have made numerous attempts since 2002 to restore the liberties lost when Chávez used his majority backing to dissolve civil rights and a free press. But they were never able to persuade the military high command, infiltrated by Cuba, to break ranks with the dictator. If this time is different it’s because Mr. Maduro can no longer guarantee the interests of the top brass.

Mr. Guaidó is rumored to be backed by Venezuela’s military rank-and-file and midlevel officers. There are also reports that some commanders of detachments around the country no longer support Mr. Maduro.

The regime is unleashing repression and the international community wants to avoid more bloodshed. The U.S. has offered the military high command safe passage out of the country, and if international efforts to cut financial channels for the leadership are successful, many may find it an attractive option.

.. On Jan. 10 Canadian Foreign Minister Chrystia FreelandwarnedMr. Maduro that he would not be recognized: “We call on him to immediately cede power to the democratically-elected National Assembly until new elections are held, which must include the participation of all political actors and follow the release of all political prisoners in Venezuela.”

.. Mr. Maduro says this is a U.S. conspiracy. But as a member of Canada’s Liberal Party and the lead negotiator of the bitter rewrite of the North American Free Trade Agreement, Ms. Freeland is hardly a Trump administration lackey.

The tyrant isn’t entirely alone. Russia, China, Iran, Cuba, Bolivia, Nicaragua and Hezbollah stand with him. Havana runs the counterintelligence network charged with controlling the Venezuelan armed forces and brownshirts. Reuters reported Friday that Russia has flown an unspecified number of paramilitary contractors into the country. A new asymmetric war can’t be ruled out.

New York Life Insurance Sold Slave Insurance

Banks like JP Morgan Chase and Wells Fargo accepted Slaves as Collateral

Rachel Swarns of the New York Times joins us to discuss what she discovered when she followed the money trail of one of the nation’s top financial institutions all the back to the 19th century.
.. RACHEL: In 1847, Godfrey died in the Midlothian Coal Mines. We still don’t know exactly how he died, but in New York Life’s accounting of the deaths that happened, they simply described, “burned to death.


New York Life was good for its policy. And Nicholas Mills put in a claim and within months of Nicholas Mills’ claims— three months, actually— they paid up: $337. The folks at New York Life collected a lot of information, but not information that his family, today, might wanna know, or people looking at the institution of slavery might wanna know. They did not record his last name. They did not record where he was, or if he was, buried. Simply “burned to death” and “$337 payment.”

CHENJERAI: This payment to a Southern slave owner wasn’t coming from Charleston, or Richmond, it was coming from New York.
.. And slaves were often used by people who went to a bank, wanted to get a loan, and had to, as we often do today, show some property for collateral, and would say, “okay, I got these 20 guys here. This is my collateral.”

That was a very pernicious system because, if you think it through, what happens when that guy defaults? Well, we know what happens if you default on your car loan today. The bank will come take it. The same thing happened back then.

JACK: Wait a minute. There were slave repo men?

RACHEL: There were slave repo men.

It’s very simple. You default on your loan, you have given up some collateral, the banks then become the owners of that property. And so the banks became owners of human beings, of these enslaved people. They took them, repossessed them, and tried to sell them, because it’s just like in foreclosures, you know, they don’t wanna hold on to these distressed properties. You know, they’re not in the real estate business. Banks are not really in the slave owning business.

RACHEL: We are talking about, you know, there, there are contemporary banks that have this history, you know.

CHENJERAI: Could you, could you name them?

RACHEL: So some of the banks that were involved in this business, banks who accepted slaves as collateral were J.P. Morgan Chase and Wells Fargo.
.. CHENJERAI: So this how the descendants are responding? How are the insurance companies responding to this?

RACHEL: You know, no one really wants a call from a reporter saying, talking about…. their ties to slavery. It’s, it’s just not … A lot of people are looking-

JACK: Mm.

RACHEL: … for coverage from the New York Times. This is not an issue where anyone is happy about a connection.

This information about slave insurance and these records came out in the 2000s, when states and municipalities required companies to disclose their ties to this period of time. So, you know, there was some trying to say, “well this is old news, there’s no reason to delve into this.” In some ways, it’s no surprise that-
.. There was a lawsuit that was filed particularly against New York Life and other companies that was dismissed in 2004, after a judge ruled that the black plaintiffs had been unable to establish a direct link to the companies that they had sued, and that the statute of limitations had run out.

With the advance of genealogy and the digitization of records, it’s now possible, difficult, but possible, to trace these people, and their descendants to the present day.
.. JACK: And in terms of just Americans coming to grips with this history, how should we- how do we tell that story?


RACHEL: You know, I think, with a lot of these issues, you know, there is the moral question, right? And what do we do with that, as, as Americans? It is simply true that African Americans were not paid for labor, right? For a long time. (laughing).
.. Ta-Nehisi Coates obviously did that really provocative piece about reparations and arguing for reparations. And he actually was at a conference and he was talking about that debate in American society and saying… You know people were saying, “Well, what would it look like?” and he said, “You know, we can’t really talk about what reparations looks like if there is no consensus that there was a debt.”

And I think that’s where America is right now is trying to figure out is there a debt? And part of the work that I do, and the work that a lot of people are doing in this area and looking at these kinds of connections between slavery and today, is just illuminating those kinds of connections.

Trump-Appointees Urge Bank Examiners to Go Easier on Risky Practices

After years of acrimony, the nations top banking regulators are seeking a detente with the firms they oversee. Two Trump-appointed officials have spent several months touring the country, visiting bank examiners in regional offices and asking them to adopt a less-aggressive tone when flagging risky practices and pressing firms to change their behavior.

  • The Federal Reserve’s Randal Quarles and the Federal Deposit Insurance Corp.’s Jelena McWilliams aim to change policy in a subtle but significant way and reshape regulators’ relationship with banks, which officials have said was too contentious during the Obama years that followed the financial crisis.
  • Critics say friendlier examiners could blunt the effect of postcrisis rules, giving banks more freedom to engage in riskier practices.

Investors Aren’t Buying Bank Chiefs’ Optimism

The heads of America’s biggest three banks all spoke positively about the economy Tuesday as their share prices fell sharply

Bankers are often criticized for being out of touch with the real world. Often that is unfair, but on Tuesday, as the leaders of the nation’s three biggest banks told investors that the economy was great, investors were acting like the boom was over.

Speaking at the Goldman Sachs financial conference, the chief executives of JPMorgan Chase , JPM -4.46% Wells Fargo WFC -4.54% and Bank of America BAC -5.43% all said they see exceptionally strong economic conditions at the moment, citing strong consumer spending and business confidence.

On closer inspection, all three bank executives gave hints of trouble just beneath the surface.

JPMorgan Chase Chief Executive James Dimon spoke of the indirect costs of trade tensions to business confidence and investment. He sounded skeptical these tensions would be resolved within the cease-fire time period agreed to by the U.S. and China over the weekend. “There’s no way you can finish the complexity of these trade negotiations in 90 days,” he said.

.. Mr. Dimon also suggested he’s been puzzled that middle-market borrowers haven’t ramped up their borrowing more as the economy has improved… Bank of America’s Brian Moynihan struck a similar note, saying medium to large-size clients are already making changes to their supply chains in response to the trade uncertainty, which he said costs them money while adding no value for their customers.

Wells Fargo Chief Executive Timothy Sloan cited a different risk, saying the biggest concern he hears from business clients is “their inability to hire enough workers.” This is the kind of thing that can lead to what Mr. Dimon referred to as a “traditional recession” caused by Federal Reserve raising interest rates as wages and prices rise.

Sometimes the risks are greatest just when things seem to be at their best. Investors are right to brace for what may come next.