Wednesday marked the beginning of what could be a stockholders revolution as Bank of America CEO Kenneth D. Lewis was ousted as chairman of the board.

A coalition of unions, community groups, pension funds, and angry stockholders forced Lewis to step down over his acquisition of Merrill Lynch at $15 billion loss and decision to give out $3.6 billion in bonuses to Merrill Lynch’s executives. His loss of the chairmanship is most likely a precursor to him being forced to leave as CEO as it was for Wachovia’s Kennedy Thompson and Washington Mutual’s Kerry Killinger.

A coalition called Take Back the Economy, composed of organized labor, religious groups, community organizations and Moveon.org, had been calling for Lewis’ ouster for several months. Brave New Films produced a video narrated by former Labor secretary Robert Reich outlining the corruption occurring at Bank of America . Through a grassroots and netroots-driven campaign, over 100 events were held across the nation against Bank of America and more than 90,000 taxpayer proxy cards were collected calling for Lewis’s ouster for his corruption and greed.

In addition to the ouster, these groups demanded that two new board seats be created for an independent taxpayer director and a front-line employee. They demanded that all bonuses for executives be eliminated until taxpayers are paid back money the bank received under the Troubled Asset Relief Program. They also demanded that stronger whistleblower protections for any workers who reports abusive lending or banking practices are put in place. Finally, they called for Bank of America to provide health-care to all of its 247,000 workers, which it currently does not.

Meanwhile, The Finger Brothers, owners of 1.1 million shares of Bank of America from the sale of their family-controlled bank, Charter BancShares, to Bank of America), spent over $100,000 of their own money running television ads against Lewis. At the same time, worker-controlled pension funds like the CalPERS (the California pension plan whose efforts to sucessfully bring down corrupt NYSE Chairman DIck Grasso I wrote about last month here) and other state workers’ pension funds came out publicly that they were going to vote against Lewis. All the heat from activists, angry investors, and state pension funds lead proxy advisory firms like RiskMetrics and Glass Lewis, which advise the portfolio managers of large institutional investors such as churches and nonprofits, to advocate that their clients cast their votes against Lewis.

As a result of the organized campaign from activists, pension funds, and angry stockholders, Lewis was ousted as chairman by a narrow 50.34 percent to 49.66 percent margin.

The message to the CEOs was clear: Watch out! Either CEOs will be more responsive to the demands for reform from small stockholders and activists or they will risk sharing the same fate as Ken Lewis. With over $6 trillion of workers’ money in retirement plans, pension funds, profit-sharing, and stock plans, worker-controlled pension funds and their allies have a lot of weight in making these CEOs more accountable.

Could we be onto the start of something big, perhaps a stockholder revolution? I certainly hope so. My message to all the people upset over their losing their retirement funds is, “Don’t mourn, organize.”

Growing up the son of a union organizer in Pittsburgh, PA, Mike Elk has been a part of the labor movement for nearly his entire life. Currently, he works on the health care reform team at Campaign for America’s Future. He has worked as a union organizer for the United Electrical, Radio, and Machine Workers (UE) and the Obama-Biden Campaign. Mike served as a research fellow at the Instituto Marques de Salamanca in Rio de Janeiro, Brazil helping to set up worker run cooperatives. When Mike is not scanning a twenty blogs at a time, he enjoys jazz, golden retrievers, and making friends of stranger. He blogs at Yinzer Solidarity.

Over the last week, two important constituencies in the House and Senate have come out forcefully in favor of a public health insurance option.

Yesterday, Senator Sherrod Brown of Ohio sent a letter to Senators Baucus and Kennedy, the chairmen of the two Senate committees overseeing health reform, expressing his support for the public health insurance option. It was signed by 15 other Senators:

As members of key committees and leaders on health care issues, we write to support a public plan option as a core component of this reform. There is no reason to believe that private insurers alone will meet the public purpose of ensuring coverage for all Americans at affordable prices for taxpayers.

The day before, members of the Progressive Caucus (CPC), the Black Caucus (CBC), the Hispanic Caucus (CHC), and the Asian Pacific American Caucus (CAPAC) in the House, 117 Members in all, sent a similar letter to President Obama and House and Senate leadership:

…our support for enacting legislation this year to guarantee affordable health care for all firmly hinges on the inclusion of a robust public health insurance plan like Medicare.

If you add in those Members of Congress who support Health Care for America Now (and take out the duplicates), we have 26 Senators and 235 Representatives.

That means, a majority of the House of Representatives supports a public health insurance option!

(also posted at the NOW! blog)

The budget has passed the Senate by a vote of 53-43, after passing the House by large margins earlier today. (Predictably, Bayh, Byrd, and Nelson voted against as well.)

This is, of course, a victory for President Obama and a victory for health care, as reconciliation for health care was included, with a drop dead date for the bill to be passed out of committee by October 15th.

Arlen Specter, our newest Democrat, voted no.

Though this vote isn’t the truest test, as Specter is still working through the transition to his new party, I’d be curious to hear the rational for voting against the budget, yet voting for the economic recovery package. The way it looks to me, Specter was under a lot of pressure on recovery, while we didn’t need his vote to pass the budget. And so, Specter seems to vote where the pressure leads him.

Or, to put it another way, Specter will vote Democratic when its politically in his interest, not because he has any sort of principles. If I were considering a Democratic challenge to Specter in the Pennsylvania primaries, I’d look closely at pushing that narrative.

The Media Matters for America Action Network has just released the definitive research document to date on Rick Scott.

Now, there’s a lot that we already know about Scott, like his $1.7 billion fraud investigation, and how he’s using the golden parachute he got for leading his company, Columbia/HCA, to defraud the government (a reported $10 million in severance and $300 million in stock options) to fight against health care reform with his new outfit, Conservatives for Patient’s Rights.

But what happened after Scott was forced out of Columbia/HCA? Turns out, there were more shady deals.

Two months before Scott was forced out, in May of 1997, he announced Columbia/HCA’s intent to buy a controlling interest in a company called America’s Health Network (AHN), a cable company which produced original, health-related television. When Scott was kicked to the curb (with a $310 million golden parachute) in July amid fraud investigations, the deal fell apart, causing AHN to lay off 80% of its workforce and other investors to sell of their stakes, most likely at firesale prices.

The next year, Scott, along with another disgraced Columbia/HCA executive forced out with him, bought 75% of AHN, again, likely at firesale prices.

Now, after Scott bought his controlling interest, what original investors AHN had left filed suit against Columbia/HCA for scuttling the prior deal which led to the devaluation of AHN. According to The Tennessean:

On Friday investors in a limited partnership with the former America’s Health Network an Orlando, Fla.-based cable property now known as The Health Network filed suit against HCA in Davidson County Chancery Court. The suit claims that HCA aborted a promised deal to invest in the then fledgling network on the same day in 1997 that Scott, at the time HCA’s embattled chairman and chief executive officer, was shown the door. The lawsuit seeks unspecified financial compensation for losses investors say they have suffered as a result of the deal’s demise.

Now, why did these investors wait a year to file suit against Columbia/HCA? And why didn’t AHN sue Columbia/HCA itself, as opposed to just a group of investors? Turns out, Scott used his controlling interest in AHN to scuttle the suit against his former employers. The best part is, Scott claimed conflict of interest prevented him from suing:

In its complaint, the suing investors say Scott has failed to pursue litigation because of a ‘conflict of interest’ stemming from his ties to AHN and role in HCA’s original decision to buy a controlling stake in AHN.

Clearly, if Scott had any morals, he would have recused himself from discussions about these suits and left the decision of whether AHN would sue Columbia/HCA to those who didn’t have ties to both sides of the complaint.

But no.

Scott refused to allow the suit to go forwards on the incredibly preposterous claim that his conflict of interest prevented it. Since, Scott has used similar logic, most recently accusing President Obama of “cooking the books” with his new health care plan without noting that he made Columbia/HCA so “successful” by cooking the books, though he couldn’t weasel his way out of the fraud investigation.

No morals, shady deals, circular logic, every-man-for-himself mentality. This is the life story of Richard Scott. And this is what he’s selling to the American people when it comes to health care. He wants to deny us the choice of a public health insurance option. He wants to leave us at the mercy of the insurance industry. And he uses fear mongering, clever editing, and outright lies to try and bully us into submission.

Luckily, he’s a borderline criminal, otherwise I’d be worried someone might actually be listening to him.

(also posted at the NOW! blog)

Some final Specter thoughts.

Arlen Specter may manage to kill two political parties in a state with one race. He’ll almost certainly beat the right-wing lunatic Pat Toomey. And even if Republicans find someone else to run, I’d be doubtful they’d win.

But Specter kills the Democratic party, or at least keeps them down. He cut deals all over before announcing this switch (Gov. Rendell, Harry Reid, Joe Biden), and he’ll most likely run unopposed in the Democratic primary. And so, we’ve lost the opportunity to replace Specter with a real Democrat, or at the very least, develop some talent for future races.

How will Specter vote, though? I’m not entirely certain, but I’m not optimistic. Though one analysis says party-jumpers vote as much as 25% more in line once they’ve switched parties, I’m not seeing how putting no pressure on Specter is going to make him a vote for health care, energy, or the Employee Free Choice Act. Granted, Specter did eventually vote for the economic recovery package, so maybe we can get his vote on similarly huge legislation like health care, but things like Free Choice? I just don’t see it happening without some electoral pressure.

And so, I’m with Chris Bowers, at least until Specter proves himself otherwise:

I like sticking it to Republicans. But I am also pretty pissed right now. We need to run a primary challenge against Specter anyway, leadership be damned.

Last December, Republic Windows, maker of energy-efficient windows, gained worldwide attention when members of United Electrical, Radio, and Machine Workers (UE) Local 1110 occupied the plant after their company refused to provide them with severance pay. After a six-day occupation, in which President Obama declared his support for the occupying workers, the UE members won their struggle for severance pay and established a committee to look for buyers to reopen the Chicago plant.

Serious Materials CEO Kevin Surace, at the urging of the Sierra Club, became interested in buying the plant to produce energy-efficient windows. The Sierra Club had a long relationship of working with the UE on economic and environmental issues, and they facilitated the initial conversations about reopening the plant between UE Local 1110 President Armando Robles and Serious Materials CEO Kevin Surace. As a result, the union was able to work out a contract with Serious Materials and helped the company purchase the factory in bankruptcy court.

On Monday, Republic Windows and Doors reopened and started producing energy-efficient windows. Vice President Joe Biden attended the opening ceremony and praised the CEO of the company for bringing back the workers and their union:

“Instead of doing what has too often been the case in the last, I would argue, 10 to 15 years, you reached out for the most qualified workers in the world. Instead of saying, if you want to come back I’m going to break your union, you said, come back, union and all. That’s a big deal.”

I would not be so quick to highly praise Serious Material’s CEO. This window manufacturer recently reopened a less famous factory in Vandergrift, Pa., without recognizing the union. The Pennsylvania facility had been unionized under its previous employer. When Serious reopened the facility, the workers were without the protection of their union and, unlike the workers at the reopened Chicago plant, were hired back without the seniority rights established under their previous contract.

Yesterday, I asked Surace why he brought back the union in Chicago and not in Vandergrift. Mr. Surace said it was because the union in Chicago had been very active and had he not brought the union back the “workers would have been outside protesting.” In the Pennsylvania factory, Surace said the union had not been as “active” as the UE workers in Chicago and hence he saw no reason to bring the union back.

Looks like Michael Steele was typing really really fast. Note, this is the actual headline of the RNC’s press release:

Statement from Chairman Steele ON sENATOR aRLEN sPECTeR’S dECISION TO SWITCH TO THE DEMOCRATIC PARTY

WASHINGTON – Republican National Committee (RNC) Chairman Michael Steele released the following statement today:

“Some in the Republican Party are happy about this. I am not.

Let’s be honest-Senator Specter didn’t leave the GOP based on principles of any kind. He left to further his personal political interests because he knew that he was going to lose a Republican primary due to his left-wing voting record.

Republicans look forward to beating Sen. Specter in 2010, assuming the Democrats don’t do it first.”

###

Nice, professional work there, Steele. I like the whining, too.

Arlen Specter of PA has switched from Republican to Democrat, announcing that he’ll run as a D in the 2010 Pennsylvania primary. For those who are elated thinking seating Specter and Franken add up to 60 votes for Democrats, think again. Here are Specter’s own words:

While each member of the Senate caucuses with his Party, what each of us hopes to accomplish is distinct from his party affiliation. The American people do not care which Party solves the problems confronting our nation. And no Senator, no matter how loyal he is to his Party, should or would put party loyalty above his duty to the state and nation.

My change in party affiliation does not mean that I will be a party-line voter any more for the Democrats that I have been for the Republicans. Unlike Senator Jeffords’ switch which changed party control, I will not be an automatic 60th vote for cloture. For example, my position on Employees Free Choice (Card Check) will not change.

As usual, Specter is with you unless you need him.

What this really does is keep a real Democrat from running and winning in Pennsylvania.

Update: I agree with what Jon Cohn says, as well:

Specter is one of the better-known senators in America. If you follow politics even casually, you’ve seen or heard him on the news before. So it’s going to register with you that a major Republican senator has decided his party has become too extreme for him. And if you’re a Republican, you might wonder if it’s become too extreme for you, as well.

As if Republican grandstanding on the confirmation of Kathleen Sebelius weren’t ridiculous enough, America now heads into what the WHO is calling something close to a global pandemic. And yet Republicans are refusing to unanimously confirm Sebelius, filibustering the nomination and forcing Democrats to overcome a 60 vote threshold. As Greg Sargent points out:

Bottom line: The filibuster over an abortion controversy is still throwing a hurdle in the way of this nomination, despite the flu epidemic.

SEIU has a petition up explaining the direct connection between Sebelius and our response to this flu:

The Center for Disease Control (CDC), which is responsible for preventing the spread of swine flu, is managed by Health and Human Services (HHS) - a 65,000-person federal department lead by the HHS Secretary. At this moment, the office of HHS Secretary is empty. The reason? Republicans are delaying a vote to fill the office.

Head over and sign it. The vote is expected today.

(also posted at the NOW! blog)

Rick Scott, the Bernie Madoff of health care, is up on the air again with another $1 million of his ill-gotten gains. It’s not hard to debunk his latest lie. From the Media Matters Action Network:

Here’s the full ad watch, plus a bit of facts from the doctors you see in the ad, who’s words have been edited pretty carefully to make Scott’s point.

As Igor Volsky at the Wonk Room points out, Scott is again using a straw man argument to mislead the public:

Obama has rejected a British/Canadian-like single-payer reform and most policy makers are looking for a “uniquely American solution” that preserves the employer-sponsored system and creates a hybrid public-private partnership. In other words, American reforms would look a bit like the Swiss health system in which the government “leaves the provision of health care and health insurance in private hands” but creates a marketplace within which insurers can compete on price, and not avoid insuring the sickest patients.

Lies, misleading comparisons, lots of money. All in a day’s work for the disgraced Rick Scott.

(also posted at the NOW! blog)