Today's Teamster News 10.30.13

Newsday drives off with new union pact  New York Post   ...Just two weeks after rejecting a new labor contract, workers, who are members of the IBT/Graphic Communications Conference at Newsday, ratified the same pact that cuts 25 driver jobs but hikes pay for the remaining workers by 6 percent over four years...
Grocery worker contract vote begins Tuesday  KIRO TV   ...Voting on the proposed contract will take place at several locations Tuesday and Wednesday for the unionized grocery workers, including members of Teamsters Local 38...
YRC requests meeting with Teamsters for company update   Kansas City Business Journal ...YRC Worldwide Inc. is calling its members of the International Brotherhood of Teamsters to Dallas to talk about the company's future...
UPS TCI Supplement Passes   teamster.org   ...The UPS TCI Supplement has passed by a vote of 87 to 12. That brings the total number of revoted local supplements and riders that have been approved by members to seven...
Rail optimistic on union deal as strike deadline nears  Reuters   ...Canadian National Railway Co., the country's largest railroad, said on Monday it is still talking with the union representing about 3,300 conductors and other workers and expects the two sides will be able to avoid a strike...
U.S. sham corporations aid drug lords  CNN   ... the Russian "Merchant of Death" Victor Bout used a global network of shell companies to move the funds of his international outfit, which authorities say provided weapons used to fuel conflicts throughout Africa, South America and the Middle East. At least 12 shell companies in Texas, Florida and Delaware have been linked to him...
Dutch Rabobank fined $1 billion over Libor scandal  Reuters   ...U.S. and European regulators have fined Dutch lender Rabobank $1 billion for rigging benchmark interest rates, making it the fifth bank punished in a scandal that has helped to shred faith in the industry...
'We got away with murder': £2.2m avoidance boast of Gordon Ramsay's tax expert in leaked memo  Daily Mail   ...Gordon Ramsay ‘really got away with murder’ as his company hid ‘incriminating evidence’ of alleged fraud from the taxman, a leaked memo claims...
The Coming Food Stamp Cut Will Hit 900,000 Veterans  ThinkProgress   ...Benefits from the Supplemental Nutrition Assistance Program (SNAP), otherwise known as food stamps, will automatically drop come Friday thanks to the loss of additional funds from the 2009 stimulus bill. That cut will hit about 900,000 of the country’s veterans...
Senate OKs Obama pick for NLRB general counsel  The Guardian   ...Senators voted 62-37 Tuesday to end Republican delaying tactics against Richard Griffin, who Obama nominated to be NLRB general counsel...The general counsel investigates and prosecutes cases before the board. Griffin is a Democrat and long-time labor lawyer...
Another View: Americans' appetite for Amtrak service growing (opinion)  Des Moines Register   ...On the heaviest traveled passenger rail corridor in the nation, the Northeast Corridor, Amtrak keeps breaking ridership records...
Municipal workers, nurses, pensioners protest against austerity  Cyprus Mail   ...Tuesday, in the Republic of Cyprus, was a day of protests outside parliament and the finance ministry as nurses, pensioners and municipality workers all gathered to voice their discontent at government imposed cuts. Municipality workers from trade unions PEO and DEOK went on strike for four hours to protest against a further 12 per cent cut to state funding for 2014...
8 Scary Facts About The Trans-Pacific Partnership   BuzzFeed   ...The Trans-Pacific Partnership, or TPP, is a massive, secret trade agreement being negotiated behind the backs of Congress and the American people...
Brunei Sultan Raises More Worries About TPP   teamster.org   ...The Trans-Pacific Partnership (TPP) has rightfully come under fire for its potential to make things worse for workers and consumers both in the U.S. and the 11 other countries which are currently involved in negotiations...
Snyder rejected pension fund conditions  Detroit News   ...Gov. Rick Snyder’s testimony Monday in Detroit's historic Chapter 9 case marked a dramatic turn, featuring a sitting governor forced to defend a series of decisions likely to set a national precedent for union protections and pension rights in municipal bankruptcy...
Republican Says He'd Bring Back Slavery If His Constituents Asked Him To  AlterNet   ...A Nevada Republican sparked outrage after he told members of the GOP that he’d bring back slavery if that’s what his constituents wanted...
More follies from the Kasich circus! Toledo Blade   ...A Blade investigation of Ohio’s taxpayer-funded job-creation efforts discovered that businesses did not create thousands of jobs that state documents said they did. The probe also revealed that Ohio development officials awarded tens of millions of dollars to companies they knew little about. Much of that money is now lost...
Gov. Walker says he cannot yet comment on alleged discrepancies in his book  WKOW   ...Governor Scott Walker (R-Wisconsin) says he cannot yet comment on alleged discrepancies between what is reportedly published in his upcoming book and the recording of a phone conversation he had with a blogger posing as billionaire Republican donor David Koch on February 22, 2011...

Banksters might be able to seize your bank deposits. Yup, yours.

Cyprus is a tiny country that recently bailed out its banks by letting them seize large depositors' money. The government would have ordered the seizure of every depositor's savings, but was prevented from doing so by massive protests.

Reuters reports on who gets dinged:

Depositors with savings of more than 100,000 euros at Cyprus Popular Bank and Bank of Cyprus held at Cypriot branches will lose at least 30 to 40 percent to help pay for the bailout. 

What's frightening is that it could happen here -- or in the UK -- or in New Zealand -- or anywhere. Lawrence E. Rafferty explains:

The recent news about Cyprus banks confiscating depositor’s funds sent chills throughout the financial world here and abroad.  I couldn’t believe that the plan in Cyprus hinged on the idea that the bank could just steal customer’s funds to balance the bank’s books.  I muttered to myself when I read the story that something as crazy as that couldn’t possible happen here in the United States.  Unfortunately, I learned that the plan to pull a Cyprus type grab here was already in the works. 

“A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds. ” NationofChange  

The above article explains that most of us do not realize that when you deposit money in a bank, that it becomes the property of the bank and we become unsecured creditors of the bank! “Although few depositors realize it, legally the bank owns the depositor’s funds as soon as they are put in the bank. Our money becomes the bank’s, and we become unsecured creditors holding IOUs or promises to pay. (See here and here.) But until now the bank has been obligated to pay the money back on demand in the form of cash. Under the FDIC-BOE plan, our IOUs will be converted into “bank equity.” The bank will get the money and we will get stock in the bank. With any luck we may be able to sell the stock to someone else, but when and at what price?” NationofChange

You can read the plan here. Rafferty points out that it amounts to a poorly managed bank stealing depositors' funds and forcing them to accept stock in a bank that's poorly managed.

The good news is that Congress would have to approve such a plan before the banks start seizing our savings.  The bad news -- well, you know what that is.

The idea of taking depositors' money to bail out banks has supporters in Europe and New Zealand as well. The German publication Der Spiegel reports that the Dutch finance minister said the rest of Europe should follow Cyprus's lead. He apparently wasn't alone:

Whether at the European Parliament or in several Continental capitals, many are saying that the time is ripe for the financial sector to assume a greater share of the costs for rescuing ailing banks.

In other words, they think depositors should help pay for bailouts rather than just the taxpayers.

Can you say "bank run?" As zero hedge notes,

This raises the prospect of raids on bank accounts, pension funds, and any investments the government can get its hands on. In other words, no one's money is safe in any financial institution in Europe. Bank runs are now a certainty in future crises, as the people realize that they do not really own the money in their accounts. How long before bureaucrat and banker try that here?

Good question.