Archive for September, 2011

Addressing the Jobs Crisis

Friday, September 30th, 2011
Reuters/Jason Reed - Members of the audience listen to U.S. President Barack Obama speak at a Labor Day event in front of General Motors Headquarters in Detroit, Michigan

Event Information

Friday, September 30, 2011
10:00 AM to 11:30 AM

Falk Auditorium
The Brookings Institution
1775 Massachusetts Ave., NW
Washington, DC

Register for the Event
On September 30, Brookings hosted AFL-CIO President Richard L. Trumka for a conversation on what is needed to end the jobs crisis and rebuild the U.S. economy for the 21st century. Trumka discussed how a range of proposals now before Congress—including investing in infrastructure, clean energy and manufacturing, extending unemployment benefits and providing aid to state and local governments—can spur immediate job creation and sustained economic growth into the future.

Watch a full video archive of this event via C-SPAN here.

Richard Trumka was elected president of the AFL-CIO in 2009, after serving as the AFL-CIO’s secretary-treasurer for 15 years. The AFL-CIO is the nation’s largest labor federation, representing 12.2 million members across the country.

Strobe Talbott, president of the Brookings Institution, provided introductory remarks. After the program, Richard Trumka took audience questions. Darrell West, vice president and director of Governance Studies at Brookings, moderated the discussion.

Event Audio

Transcript

Participants

Welcome
Strobe Talbott

President, The Brookings Institution

Featured Speaker
Richard L. Trumka

President
AFL-CIO

Moderator
Darrell M. West

Vice President and Director, Governance Studies

Fitch Upgrades Residential Credit Solutions’ Servicer Ratings

Friday, September 30th, 2011
Mortgage servicer Residential Credit Solutions (RCS) stands out from the crowd in today's world of almost commonplace ratings downgrades and default servicing challenges. RCS has been awarded two upgrades from Fitch of its primary servicer rating for subprime products and its special servicing rating. Fitch said the rating actions reflect the company's 'high touch' servicing approach, competitive performance metrics, and effective default and foreclosure practices.

Former Countrywide Employee Behind Bars

Friday, September 30th, 2011
A former Countrywide employee is now behind bars and being forced to pay $1.2 million in restitution for stealing and dispersing confidential customer information, including social security numbers. A U.S. district judge sentenced 39-year-old Pasadena resident Rene Rebollo to eight months in prison and 10 months in a community corrections facility. Rebollo, who served as a senior financial analyst in Countrywide's subprime mortgage division, pled guilty to the charges.

Job Loss Could Put One in Three Out of Their Home

Friday, September 30th, 2011
One in three Americans would be unable to make their mortgage or rent payment beyond one month if they lost their job, according to the results of a national survey taken in mid-September. Job loss has become the primary driver of mortgage defaults. With the state of the labor market posing one of the biggest obstacles for struggling homeowners and their lenders, a number of programs at both the national and state level have been launched to assist unemployed homeowners, but so far the expected results haven't materialized.

Putin’s Return to the Russian Presidency and U.S.-Russian Arms Control

Friday, September 30th, 2011
Reuters - A vendor demonstrates opening a traditional Matryoshka doll or Russian nesting doll, bearing the faces of Russian Prime Minister Vladimir Putin (underneath) and President Dmitry Medvedev at a souvenir market in St. Petersburg September 26, 2011.
In a speech to the United Russia party on Saturday, President Dmitri Medvedev announced his intention to step aside so that Prime Minister Vladimir Putin can return to the presidency next spring. The Russians still have an election to hold in March, but one can predict the outcome with assurance. While his ratings have declined since his first two terms as president, Putin remains the most popular politician in Russia. The state’s bureaucratic and financial resources will mobilize to support his candidacy, and no serious opposition candidate has emerged.

Pundits have speculated for two years on whether Medvedev or Putin would be the establishment candidate in 2012. The fact that the two talk publicly in different terms fueled the speculation. But little hard evidence suggests that the two clashed on any serious policy question. Although Putin has been prime minister—nominally the second highest position in Moscow—he and Medvedev have worked as a tandem, and few doubt who held the real power.

What will Putin’s return to the presidency mean for U.S.-Russian arms control? Let me offer five observations.

First, as prime minister, Putin has certainly been involved in all key policy decisions. It is inconceivable that Medvedev last year would have signed the New START Treaty or agreed to explore NATO-Russia missile defense cooperation without Putin’s approval. Russia’s strategic approach to arms control with the United States likely will not change.

Second, Putin’s return could mean differences at the margins. He views Washington with greater skepticism and distrust than does Medvedev. Part of that may stem from experience. During his first two terms as president, he dealt with President George W. Bush. While the two got along well personally, the Bush administration walked away from the ABM Treaty and only grudgingly agreed to a vague strategic nuclear reductions agreement. In 2004, a slide began that brought U.S.-Russian relations in 2008 to their lowest point since the Soviet Union’s collapse.

Third, Putin is pragmatic. He talks now of the need for Russia to boost defense spending. But in 2003-2007, when rising oil and gas prices filled the Russian government’s coffers with hundreds of billions of dollars, Putin chose to increase foreign currency reserves and create a government “rainy date” fund while keeping defense spending increases modest. One reason why the Russian military today is headed for levels of deployed strategic warheads and strategic delivery vehicles well below the New START limits is that Putin did not pump additional funding into accelerating the production of new ICBMs. Russia’s future budget outlook offers a mixed picture, and a new arms reduction agreement might prove attractive if the defense budget comes under pressure from other domestic needs.

Fourth, on missile defense, the current situation differs from Putin’s earlier time as president. The prospective deployment of SM-3 missile interceptors in Central Europe presents less of a threat to Russian strategic forces than did the Bush administration’s planned ground-based interceptor deployment. Moreover, the Bush administration negotiated bilateral missile defense arrangements with Poland and the Czech Republic; some in Moscow undoubtedly harbored hopes that they could sow dissension within NATO ranks and undermine the plan. The Obama administration has the Alliance squarely on board with its missile defense program. Will a pragmatic Putin conclude, perhaps even while Medevdev remains president, that missile defense cooperation is worth a try?

Fifth, although the Russian presidential election is now virtually decided, it’s not the only presidential vote scheduled for 2012. The Russian election will not change Moscow’s approach to arms control questions, but Russian officials believe that the outcome of the U.S. presidential election could have a major impact on how Washington approaches those issues. Senior Russian officials thus say privately that, until they know who will reside in the White House in 2013, they will wait to take major steps on further nuclear reductions—and that is regardless of whether Medvedev or Putin is president.

Authors

Publication: Ploughshares Fund
Image Source: Reuters

States Can Learn from New England’s Foreclosure Prevention Programs

Friday, September 30th, 2011
As delinquencies and impending foreclosures rose, New England states responded with foreclosure prevention programs, generally falling into one of two categories: foreclosure mediation and financial assistance. The Federal Reserve Bank of Boston examined these efforts to determine ways other states can learn from them. Five of the six New England states have their own mediation programs, and Massachusetts created a program allowing negotiation without a mediator.

The Death of Anwar al-Awlaki: Al Qaeda Will Still Survive in Yemen

Friday, September 30th, 2011
Reuters - Anwar al-Awlaki, a U.S.-born cleric linked to al Qaeda's Yemen-based wing, gives a religious lecture in this still image taken from video released by Intelwire.com.
The death of Anwar al-Awlaki is a significant setback for al Qaeda in the Arabian Peninsula but far from a fatal blow. Nor does his demise change the dynamics in Yemen which is sliding into a civil war that benefits al Qaeda in the Arabian Peninsula (AQAP).

Awlaki’s greatest asset was his ability to communicate to both English and Arabic speaking audiences the message of the global jihad. His sermons inspired many to “join the caravan” of Islamic extremism both in the West and Arabia. He has been a prolific writer and speaker for over a decade. The most recent edition of AQAP’s English language web magazine, Inspire, which was released this week promised that Awlaki would soon have a new message.

Ominously this yet-to-be-seen message is entitled “targeting the population of countries that are at war with the Muslims” and the preview shows a picture of a large train station filled with commuters. If he is dead, al Qaeda will doubtless release this last testament with his martyrdom memorial. His death will remove a major propaganda figure and a rising star in al Qaeda’s world.

Awlaki was born in Las Cruces, New Mexico, in 1971 while his father was a Fulbright scholar studying agriculture at New Mexico State University. His childhood was split between the United States and Yemen, then he graduated from Colorado State University. He spent one college summer fighting in Afghanistan with the mujahedin, the same battlefield where Osama bin Laden and Ayman Zawahiri earned their jihadist credentials.

He is always been an elusive figure. As a preacher in mosques in San Diego, California, and Falls Church, Virginia, in 2000 and 2001 he had repeated contacts with three of the 19 hijackers before 9/11, but the FBI did not link him to the attack. His phone number was found in the Hamburg, Germany apartment of Ramzi bin al Shibh, one of the masterminds of the 9/11 attack. He may have been a central player in the events of September 11th 2001, but we will probably never know. In 2002 he fled to the U.K. and then in 2004 toYemen and was arrested in 2006 on kidnapping charges.

His position in AQAP has been elusive as well. Some claim he served as one of the group’s operational planners after being released from prison in 2007; others say he was only a propaganda figure. He was in email contact with Major Nidal Hasan, the Fort Hood soldier who killed 13 of his fellow soldiers on November 5, 2009, but the U.S. Army has still not released the 18 emails found on Hasan’s laptop. Awlaki later told Yemeni journalists that he blessed Nidal’s decision to kill as jihad.

He may have recruited Umar Farouk Abdulmuttalab, the Nigerian who tried to blow up Northwest Airlines 253 over Detroit on Christmas Day 2009 with a bomb provided by AQAP. Awlaki said the Nigerian was one of his students in Yemen in a 2010 message in which he also warned Americans that “nine years after 9/11, nine years of spending $40 billion on security systems and nine years of beefing up you security and you are still unsafe even in the holiest and most sacred of day to you, Christmas.” Many other terrorists including the Times Square bomber Faysal Shahzad say Awlaki’s sermons and articles inspired their actions.

But he was not the commander or deputy commander of AQAP. Those roles are held by Yemenis and Saudis who have been fighting for years in the Arabian Peninsula and who are the most important operational leaders of the group. Nor was he the bomb maker who built Abdulmuttalab’s miniature bomb and the parcel bombs sent to blow up postal jets over Chicago last October. The evil genius who builds these devices is a Saudi who is teaching a cohort of recruits in AQAP camps in Yemen how to build more bombs. In short AQAP’s key players are still at large and very dangerous.

Yemen is falling apart. The country is fragmenting into hostile blocks. President Ali Abdallah Saleh, who returned from hospital in Saudi Arabia last week after almost being assassinated last June, will probably point to Awlaki’s death as evidence his regime can still help fight terror and should survive. We should not fall for this line.

In fact the longer Saleh tries to hold on to power the more chaotic Yemen is likely to get. Saleh and his sons and nephews control only parts of the military; much of the rest has mutinied and is fighting gun battles every day with the loyalists in Sanaa and other cities. The far north of the country has been over run by Shia rebels who have been fighting Saleh for years. Several southern towns have been occupied by AQAP. The port city of Aden is wracked by car bombs and assassination plots. Pro-democracy demonstrators are murdered by Saleh’s goons and snipers.

The more broken Yemen becomes the more AQAP benefits because the break down in law and order allows it to operate and recruit more easily. Saleh is only part of the problem in Yemen, the country is running out of water and oil and is over populated, but his departure is essential to starting to salvage an increasingly desperate situation. Awlaki may be dead but AQAP is very much alive.

Authors

Publication: The Daily Beast
Image Source: Reuters

@ Brookings Podcast: Make Defense Cuts Carefully

Friday, September 30th, 2011

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As the congressional “supercommittee” works to produce a deficit reduction plan, Peter Singer urges the lawmakers to balance cuts in domestic discretionary and defense spending carefully. Singer says the debate over defense cuts too often focuses on specific weapons programs, not the support needed to maintain weapons, or changes to the Pentagon’s personnel and health care policies that might also produce significant and ongoing savings. He warns that a great nation must keep pace with technological advances.

Featured

Peter W. Singer

Audio

eMortgage Logic Releases Interactive Polygon Mapping Functionality

Friday, September 30th, 2011
eMortgage Logic (EML), a national property valuations provider based out of Texas, is taking the guesswork out of determining the neighborhood for the subject property with the release of new proprietary interactive polygon mapping functionality. The company says the transparency provided through this new tool will enhance internal and external quality analysis and will provide clients with the confidence that comparables are not only similar in characteristics, but also in location.

Industry Veterans Join to Deliver Portfolio Management Solutions

Friday, September 30th, 2011
MasterServ Financial, Inc., a new provider of portfolio monitoring, analysis, and management tools and services, has named veterans from the mortgage lending industry to its management team. Led by CEO and Big Four consulting veteran John Iatesta, the MasterServ Financial team is tasked with leveraging the company's technology resources and a customer list that includes the likes of HUD and Ginnie Mae to improve portfolio performance and asset quality for private sector financial services organizations and the GSEs.