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Gov. Responds to Financial Crisis
September 15th, 2008

Gov. David Paterson’s office just put out the release below, responding to the sour financial news. It directs the state’s Labor Department to “reach out” to affected Wall Street workers.

This follows an announcement earlier today that the state would give the American International Group, or A.I.G., a $20 billion loan from its subsidiaries to keep it afloat.

Paterson said the state was approached by the massive insurance company for help, and they worked together over the weekend. This assistance is in contrast with a statement Mayor Michael Bloomberg made at a press conference today.

“No one should look to us for their own improved budgeting,” he said — a clear sign that the city would not be making any loans to Wall Street’s financial institutions.

Here is the latest:

Governor David A. Paterson has directed the New York State Labor Department to take immediate action by reaching out to affected workers on Wall Street. The Labor Department will dispatch its rapid response specialists to assist displaced workers in New York City’s financial industry. These rapid response sessions will provide workers with basic information on how to file an unemployment claim, possible training opportunities, labor market information, and workshops covering everything from resume writing to interviewing skills.

Upon the request of Governor Paterson, commissioners from both the New York State Department of Labor and the New Jersey Department of Labor and Workforce Development met this morning to discuss how both agencies can best devote joint resources and staff to assist the industry’s displaced workers.

“These are unparalleled circumstances that workers in New York’s financial industry are facing, and they need to know that government is here to help in every way we can,” said Governor Paterson. “Wall Street’s continuing problems should serve as a stark reminder that this recession is far from over, and clearly there is significant work to be done to help our state economy and, more importantly, the residents of New York weather this financial crisis.”

Approximately 11,000 jobs were lost in New York’s finance and insurance sectors between July 2007 and July 2008. More recent data will likely show this number continues to grow and based on past data, approximately 40,000 jobs in the financial services industry in the New York City area can be expected to be lost in the current downturn. All told, approximately 120,000 jobs may ultimately be directly and indirectly affected as a result of financial sector turmoil.

Additionally, the New York State Labor Department is leading the coordination of a Federal Reserve-Bank of New York Mellon hosted tri-state initiative which will examine the impact of financial sector turmoil in New York. This initiative will focus on job loss in the financial services and related industry sectors, in addition to the spillover effects on other employment that is indirectly supported by those jobs.

New York State Labor Commissioner M. Patricia Smith said: “We are acting right now on behalf of workers to help them get back on their feet so they can continue to contribute to our city and state’s economy. This unprecedented collaboration between New York and New Jersey will begin immediately, and won’t end until this crisis is over.”

New Jersey Labor Commissioner David J. Socolow said: “Governor Corzine and I know that many Lehman Brothers workers commute to or from New Jersey. By working together with the New York Labor Department we can provide a comprehensive approach to reaching the workers and guiding them to the right services no matter where they live or where they worked.”

The Labor Department will reach out to Wall Street investment companies and offer resources for their current and former employees, including meetings with human resources to collect information on worker skills. The Labor Department will then contact area employers who may be interested in recruiting these workers.

According to the State Labor Department, over the long term, the securities and commodities industry is an economic driver for New York City, with employment and wages growing far faster than the overall economy. In 2007, Wall Street accounted for 185,700 jobs; 5.8 percent of New York City’s private sector employment and 28 percent of private sector wages.

By on September 15, 2008, 6:53 pm
In category: Gotham City | 5 Comments »

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5 Responses to “Gov. Responds to Financial Crisis”

  1. Larry Littlefield Says:
    September 16th, 2008 at 8:49 am

    Those with special tax deals will keep them. Retirement income will remain exempt from income taxes. Public employee pensions, with all the “free” sweeteners adopted over the past 10 years, will be paid, and no retired public employee will be forced to pay for health care. Goldbricking seniority jobs will be retained. New York will continue to lead the world in Medicaid spending on seniors. Debts will be paid, because the rich buy municipal bonds and make campaign contributions. Those in political posts will keep them, and those in gold-brick seniority posts will keep them to. A collapse of the transit system won’t matter to those with placards. And school districts in the rest of the state will continue to hire, capturing a larger share of state school aid by doing so.

    In reality, to those with power, nothing else matters. After all, everything that happens will be the “inevitable result of circumstances beyond our control,” given that the above cannot change.

  2. Larry Littlefield Says:
    September 16th, 2008 at 8:50 am

    And by the way, I assume the state unemployment insurance fund is bankrupt again, due to a decision to defer costs and increase benefits. Future businesses, if they are stupid enough to open here, will pay.

  3. Cliff Fraser Says:
    September 17th, 2008 at 12:05 am

    Hey – Let’s get back to basics, take off the blinkers and look around a bit. Just how much real wealth have all these financial companies (banks, financial advisors, insurance companies etc) ever created? Quick answer – absolutely none. Everything, and I mean everything in this world that we judge our wealth by is made by the Producers. Yes, the guys who build the cars, the buildings, every electronic gadget on the planet, planes, clothes, grow and process food etc, etc. So ask yourself this; why is it that all the people who actually produce all the real wealth have to borrow from the banks in order to buy back the very things they produced in the first place.

    The banks don’t produce any real wealth, none, so where did they get all their money from that allows them to lend so much back to the very gullible public? Google ‘Fractional Reserve Banking’, the key to the world’s financial woes are clear for anyone to research.

    The little investor? well he just represents around 25% of all investment, the rest is owned by the financial institutions of the world who spend their days playing around with the wealth originally created by the Producers. And since all the other financial institutions in the world have never created any real wealth, where did they get their money from? The financial markets around the world have gotten just a bit too big and the Producers of the real wealth just can’t satisfy their greed – result, the so called Credit Crunch (and every other financial crisis there has ever been for that matter).

    In reality the Producers should not need to borrow money to buy things, the credit society has been created by the banks, for the banks. It’s time to reorganize the whole corrupt scene. The chances of it happening any time soon – Zero. The bankers have too strong a hold now, they control all the major Governments in the world and the others will follow soon. Beware of the bankers; remember you read it here. Just one other thing, you can’t deny that it makes for really great television, the continuous stream of red teletype along the bottom of the Bloomberg Television screen and scenes of Lehman employees exiting their ex-workplaces with their cardboard boxes is way better than anything Comedymax is screening right now.

  4. Ed Poline Says:
    September 24th, 2008 at 12:19 am

    Both Republicans and Democrats alike failed to do their jobs. I, like many others, have no confidence in Bush or any members of the congress coming up with a viable plan. I’ll be going door to door to get petitions signed with demands of the people of the United States. I urge everyone to do the same, and send them before this weekend to Bush, your senators and representatives in the House. Here is the petition. You may add or delete, or write your own if you wish, but it’s important that our voices are heard. If we don’t get the results we want, it’s time to contact reliable media outlets to let everyone know millions of us were ignored when we spoke out. I have been dealing with state and local politicians for many years, and most times, they listen. If you don’t speak up, you have only youself to blame hen things don’t get done.

    September 24, 2008

    We the people of the United States of America, demand that the current fiscal and financial crises be solved in a responsible manner
    by the President of the United States and his cabinet members, as well as all members of the United States Congress,
    and the Supreme Court of the United States.
    The current plan to provide funds to financial institutions is unacceptable. In essence, it forces taxpayers to invest in
    these institutions with no return on their investments, yet provides renumeration to officers of these financial institutions,
    who were negligent, incompetent, and/or criminal in the manner in which they conducted business

    If this plan is to be instituted, there are several demands by the people.

    1. Any and all renumeration for the outgoing officers of all institutions involved is to be eliminated.

    2. Criminal investigations of all parties involved, including, but not limited to, officers and employees of financial institutions,
    elected officials, and lobbyists.

    3. Criminal investigations into illegally approved, or fraudulent mortgages, by any person or persons employed by any financial institution.

    4. In such cases where guilty verdicts are found, those convicted must immediately repay any commissions earned, and face criminal sentencing.

    5. All foreclosure proceedings be halted. Interest rates are to be recomputed at 3%. Those who can afford the new rates may keep their homes.
    Those who cannot, and have some equity in their homes, including down payments, shall be compensated for such equity, with the option of using
    that compensation to negotiate new terms.
    Those who elect to keep their homes, must purchase mortgage insurance.
    Those who cannot because they did not qualify for a mortgage, and did not make a down payment toward the home, shall face foreclosure proceedings.

    6. All forclosures which were implemented because interest rates were raised to the point that the mortgagees could no longer afford to make full payments,
    shall be deemed null and void.
    All interest from the time of such increases shall be forgiven. Such mortgagees, if so desired, shall resume making payments at a rate that is fixed
    at the time immediately before their interest rates were raised.
    Any period of time between when the interest rates were raised, until the first reassumed payment is due, shall be declared as payment and interest free.
    Those who elect to keep their homes must purchase mortgage insurance.

    7. Any profits made by the United States Government on properties acquired through funding financial institutions shall be refunded to the taxpayers.

    8. Any plan to solve the current financial crises must include an oversight committee made up of disinterested parties.

    9. All future mortgages shall not be approved without the purchase of mortgage insurance.

    10. Any plan must not include additional federal spending.

  5. chimney construction Says:
    April 6th, 2012 at 11:26 am

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