Showing posts with label Financialization. Show all posts
Showing posts with label Financialization. Show all posts

Saturday, May 12, 2012

Protest, Policing, and the UC Regents' Committee on Finance

The UC Regents are having another meeting on May 16, and tuition hikes are once again on the table. According to the budget report [pdf] to the Committee on Finance, the Regents will discuss the possibility of raising tuition and fees by 6 percent for the fall 2012 semester as well as an additional, mid-year tuition hike "in the range of double digits" for spring 2013 if Governor Brown's tax proposal doesn't pass in November. Chris Newfield's analysis of the budget scenarios is a must read here.

But there's something on the Committee on Finance's agenda that appears at first glance to be strangely out of place. Nestled between discussions of expenditure rates for the general endowment pool and plans for the formation of a captive insurance agency, we find Discussion Item F7, titled "Update regarding Report to the President on Response to Protest on University of California Campuses."

This is a reference, of course, to the Robinson-Edley Report [pdf], which was released in draft form last week to great media fanfare. The text of the discussion item [pdf] for the Regents' meeting is more or less the Executive Summary of the report. Writing at the request of UC President Mark Yudof in the wake of the November 9 police riot at UC Berkeley, General Counsel Charles Robinson and Dean Christopher Edley were charged with generating a set of best policing practices for UC campuses to use in dealing with future protests. The infamous pepper-spraying incident at UC Davis the following week only intensified the report's urgency. Over the course of 50 recommendations (although the version for the Regents' meeting appears to contain only 48 -- it's not clear which two recommendations have been removed), it suggests that the issue at hand is essentially one of free speech. As the Executive Summary states,
This Report is premised on the belief that free expression, robust discourse, and vigorous debate over ideas and principles are essential to the mission of our University. The goal of this Report is to identify practices that will facilitate such expression — while also protecting the health and safety of our students, faculty, staff, police, and the general public. (1)
Joshua Clover has recently shown how the frame of rights and free speech represents a fundamental misrecognition about what is happening on UC campuses and around the world. According to this understanding, the sequence of events goes something like this: students protest, then police respond. Perhaps the police respond a little too hard, arresting a few too many protesters, using a little too much pepper spray. So the administration steps in and formulates a new set of policing practices to ensure that in the future this kind of excessive force isn't deployed. Here, the issue at hand is one of demarcating the limits of protest as speech, of regulating the proper relations between protesters and police.

In fact, as Clover points out, the sequence of events is very different. It begins not with students arbitrarily protesting, but with the administration developing and implementing austerity policies across the UC system -- raising tuition, cutting classes, firing workers, increasing out-of-state admissions, and so on, austerity's myriad manifestations within the particular context of the post-crisis university. These struggles are not rhetorical but material; they are about how the university is run, about what, under the technocratic directives of the UC administration, the university is coming to be. By displacing these struggles onto the terrain of speech, we unwittingly let the administration off the hook: "One suspects there will be some payouts to injured students, and that a cop or two will be pastured. And the matter will be tentatively resolved, despite the economic content remaining entirely unaddressed; thus, the administration wins by 'losing.'"

This is precisely what the Robinson-Edley report does. Without going into too much detail, it's worth looking at an example. One thing that jumps out in the report is the extent to which the authors see the problem as rooted at least in part in students' ignorance: "We also were struck by a more fundamental information gap," write the authors. "[M]ost members of our community know very little about our campus police departments" (23). Apparently, this is not for lack of opportunity. "At UC Santa Cruz, for example, the police department offers a quarter-long course titled 'Citizen Police Academy,' for up to twenty-five students, faculty, and staff. Class members gain a deep familiarity with the campus police department. In addition, on some of our campuses, the police make presentations at new student orientations. But these existing opportunities for students and other members of the University community to educate themselves about their campus police departments apparently have not satisfied the community’s desire for information" (24). Predictably, the report goes on to recommend more such classes, more opportunities for students to "become acquainted with the campus police agency" as well as "with the applicable rules for campus protest -- including rights and responsibilities, triggers for an administration or police response, the response option framework, and alternate modes for engaging with authorities" (26).

The objective is to transform struggles over privatization into a sort of choreographed dance between students and police, to minimize or obscure the work of the administration, and to avoid at all cost any disturbance of the material operations of the university. Despite the much-hyped statement in the Executive Summary that administrators and police will have to stop thinking primarily in terms of "the maintenance of order and adherence to rules and regulations," this order is ultimately upheld as fundamental. In response to concerns that arose from the UC Davis pepper-spraying incident, the report recommends not that pepper-spray should be eliminated but that "event response team’s guidelines, should specify that administrators will not authorize any physical police response against protesters non-aggressively linking arms unless the protesters were significantly interfering with the academic mission of the campus" (37). In the end, order must be maintained, the restructuring of the university must continue unabated.

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Why, then, are protest and policing a concern of the UC Regents' Committee on Finance? No doubt some of the recommendations in the Robinson-Edley report will require some appropriation of funds to implement -- mainly the hiring and training of police officers (Recommendation Group 4) and the surveillance and monitoring of protest actions (Recommendation Group 7). But these will be minor expenses and anyway have little to do with UC finances at large. This apparently unlikely arrangement must be read as an acknowledgment, on the part of the UC's top managers, of what campus protests are really about. They know that the only thing standing in the way of their austerity policies, of their ever accelerating and increasingly desperate attempts to tie the university to the financial markets, student tuition, and debt, are the students and workers -- and occasionally faculty -- standing in their way, literally using their bodies to keep the machine from operating.

It could not be otherwise. At the UC today, protest and policing are inextricably a question of finance.

Monday, April 9, 2012

On the Recent Retreat of US Bank and US Bancorp



These days, US Bank is retreating on multiple fronts. First and most immediately, protesters at UC Davis recently won an important victory in the battle against the financialization of public education when the bank decided, following a blockade that lasted an entire quarter, to close its on-campus branch. While it remains unclear whether the new ID cards that UC Davis students were forced to obtain, which double as US Bank ATM cards, will be phased out ("Your Aggie Card. Your ATM Card. All in one."), the bottom line is that a central and high-traffic space on campus has been stripped from the bankers' hands. The administration and the Regents will continue their search for "new, fun sources [of revenue]," as UCD Associate Vice Chancellor Emily Galindo described the US Bank deal (at approximately minute 2:30 in the linked video), but this space is ours -- it belongs to the students, workers, faculty, and community -- and we won't let them sell it off (or, for that matter, sell us off) again in backroom deals to their fellow 1%-ers.

Second and in the bigger picture, it's being reported today that US Bancorp (the parent company that owns US Bank) is exiting the private student loan market. According to the Minneapolis/St. Paul Business Journal, the corporation held about $4.66 billion in student loans at the end of 2011. JP Morgan Chase also decided recently to "sharply reduc[e] its lending." For these lenders, dealing in the student loan market is apparently not worth the risk. (It's worth noting that this trend is by no means absolute. Other lenders, like Discover Financial Services, are "ramping up their participation in the [student debt] market" just as US Bank is pulling out. Similarly, according to UCD spokesman Barry Schiller, other banks have "informally expressed an interest to step in" to replace US Bank.)

All of this is taking place in a context of increasingly apocalyptic discussions about the possibility that the student debt bubble is about to burst ("This could very well be the next debt bomb for the U.S. economy"). We don't want to get into that debate here. All we want to do is offer some brief thoughts on the possible intersection of the parallel retreats of US Bank/corp we identified above. The imbrication, that is, between two levels of scale: the blockade and subsequent decision of US Bank to abandon its Memorial Union branch; and the strikingly coincident decision of US Bancorp to abandon its financial position in the student debt market.

In a recent op-ed in the California Aggie, UCD professor Joshua Clover argued that "The university is selling students to the bank because it’s the only way to generate more income from students who don’t otherwise have it." He continued:
This is why shutting down the bank of campus is not just a sensible idea but an obvious first step in reclaiming education. The bank is not only profiting, but it is also the emissary of the profit motive; it does nothing else. Perhaps the closing of this small branch is purely symbolic; it won’t end global capitalism, after all.

But perhaps it’s something more. Everybody starts small. You fight where you can. The fact that there are ten thousand banks doesn’t mean you don’t begin with one -- it means you do. Closing a single recruiting center wasn’t going to end the military, but one by one, such closings helped end the war. The bank is fighting a war on your future, and for the moment the university is collaborating -- on the wrong side.
While there's no question that the bank blockade directly caused US Bank to withdraw from the campus of UC Davis, it would be absurd to suggest that the same blockade was responsible for scaring US Bancorp into deciding that student debt was no longer worth it. It's not just a question of scale. For the bank's financial managers, student debt simply wasn't generating enough profit to justify the expense. And with defaults rising, those same profits may appear increasingly risky in their speculative eyes.

In other words, US Bancorp's withdrawal from the student debt market was a result of the crisis. That crisis, however, takes many forms: it is a crisis of profitability, of course, but it also appears as precarity in its multiple economic and affective senses; as austerity and the regime of state violence on which it depends; and as the global waves of outrage, protest, and insurrection that more than anything characterize our historical moment. It is out of this last formation of crisis that the slogan emerged during the California student movement in the fall of 2009: we are the crisis. If the bank in Memorial Union is "the emissary of the profit motive," as Clover suggested, then it also constitutes a localized, concrete form into which this abstract phenomenon had congealed. We should understand the blockade, likewise, as a small but significant drop in a much larger wave that not only forced US Bank off campus but also pushed US Bancorp out of student debt.

Monday, September 19, 2011

Wall Street Occupation, Day Three

September 19, 2011, 8:50 pm
Originally posted here.

Thousands gathered Saturday

a guest post by Zach Schwartz-Weinstein

Zuccotti Park in the Lower Manhattan financial district has been occupied by a politically diverse group for the last three days, with participation of up to several thousand at a time. Protesters have renamed the space “Liberty Park,” to brand it as an American counterpoint to Cairo’s Tahrir (“Liberation”) Square, and it has played host to general assemblies of thousands of people, hundreds of whom have slept in the park for the last two nights.

They hope to begin a sustained occupation to, in the words of two of the authors of the original call to action, “escalate the possibility of a full-fledged global uprising against business as usual.”

Taking cues not only from the so-called Arab Spring revolts in Tunisia, Egypt, Yemen, Libya, Bahrain, Iran, and Syria, but also the Spanish indignados, and anti-cuts protestors in the UK, Greece, France, and Italy, as many as 5,000 protestors converged on Wall Street this past Saturday. A march Monday morning resulted in seven arrests.

That many of these protesters are or have been students should surprise few. Yet rather than dismiss their actions as youthful idealism, it’s important to understand the role students have played in the struggle against contemporary austerity politics.

Though the language of austerity measures is often promissory, gesturing towards an alternatingly apocalyptic future (which we must sacrifice now to avoid) or a bucolic future (which awaits us after austerity ‘rights the ship,’) many cuts have targeted youth, mortgaging that future or rendering it altogether absent.

The news last year that student debt has surpassed credit card debt as the largest source of consumer debt in the United States is a function of rising costs of attending higher education, cuts to state and federal financial aid, and the growth of for-profit private industry around the student loan bubble.

This summer’s debt-ceiling compromise included an end to subsidized loans for graduate students, and in a year, it will mean that graduate and professional students will have to pay back their undergraduate student loans while in grad school, a difficult proposition for many.

This occupation is not the first on U.S. soil in recent years, and it is unlikely to be the last.

Whether and how it can attract the levels of support and involvement that similar occupations have elsewhere is an open question, but even NY Mayor Michael Bloomberg sees in the present crisis the possibility of escalating student rebellions.

Washington Post photo gallery
International Business Times article (“several thousand protesters showed up in New York’s financial district”) photo gallery
Guardian op-ed (“The call to occupy Wall Street resonates around the world”)
DailyKos: Chris Bowers
xposted: howtheuniversityworks.com

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Meanwhile, at 55 Wall Street, the building's occupants stand around and on the balconies drinking champagne and um, playing the fiddle.


Saturday, September 17, 2011

Almost one of every 12 recent California college graduates with student loans defaulted within two years of starting repayment


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"Almost one of every 12 recent California college graduates with student loans defaulted within two years of starting repayment -- if they ever started making payments at all, according to new data from the U.S. Department of Education.

About 21,500 former California students scheduled to started loan repayment between Oct. 1, 2008 and Sept. 30, 2009 defaulted by Sept. 30, 2010. Default rates were highest among "for-profit" colleges. Community colleges also had high default rates, but relatively few of their students took out loans, given low costs."

Read more here.