Democrats Move Funds into Union-Owned Amalgamated Bank

amalgamated-bankUnions have an understandable dislike for doing business with nonunion employers. It’s a matter of self-interest. And as the City of Charlotte prepares to host the Democratic National Convention during September 3-6, a growing roster of labor and politically allied organizations are indicating their displeasure over the party’s decision to hold the event in that decidedly nonunion locale. Some groups, which include an apparently chastened Democratic National Committee, are shifting deposits from the Charlotte-based Bank of America (BoA) to a union-owned New York City institution, Amalgamated Bank. This exodus in large measure has been motivated by payback for BoA bankrolling much of the event. Yet this process, if taken far enough, could result in more investment decisions of the sort that put Amalgamated, and union depositors, in harm’s way not long ago.

Amalgamated Bank isn’t exactly a union. Yet it looms as potentially the most important labor organization in the …

Billionaire Clinton Friend, Union Accused of Racketeering

Ron Burkle is a very wealthy man, with a net worth listed last year in Forbes magazine at $2.5 billion.  He’s also a close friend of former President Bill Clinton.  That relationship is now coming under greater scrutiny given the backdrop of Burkle’s now-successful attempt to buy out a major long-distance car-hauling company, with an able assist from the International Brotherhood of Teamsters.  On April 23, investors of Hawk Opportunity Fund sued Burkle’s private-equity company, Yucaipa Companies, in Atlanta federal court, charging Yucaipa and IBT leaders with racketeering in Yucaipa’s takeover of Allied Holdings, Inc., North America’s largest hauler.  The plaintiff is demanding $200 million in damages, a figure that could triple under RICO statutes. Yucaipa thinks the case is groundless.  “We think that this suit is totally without merit,” said company lawyer Robert Klyman.  A Teamsters spokesperson likewise dismissed the suit as having