Opportunity Finance Network

The Bernanke Factor

Credibility. Affirmation. Chairman Bernanke's keynote speech was important on many levels for the industry and for Opportunity Finance Network. As I look back over what he said, what still jumps out most at me were his concluding comments:

"These efforts demonstrate the ability of CDFIs to adapt their business strategies to evolving markets, as indeed they have done throughout their thirty-year history. I expect that the local knowledge and specialized financial expertise that CDFIs provide will continue to add significant economic value and complement market forces in the support of community economic development. Thus, CDFIs are likely to contribute to our share goal of expanding economic opportunity for many years to come."

I hope to hear and read everyone using that quote for years to come.

Election Impact on CDFI Fund Advocacy

We'll Make it Through. When your strategy is bi-partisan, as ours is, every election means you win some and you lose some.

Five Republican Senators who lost their seats in the midterm elections were supporters of our call for $80 million for the CDFI Fund: Allen (VA), Santorum (PA), Burns (MT), Chafee (RI), and Talent (MO). Only one of the five--Chafee--was among the 10 new Republican backers we gained in 2006.

In addition, we lost to retirement our sole Independent (Jeffords of VT), but we expect to pick up Senator-elect Sanders.

Senate Chairs. With the assumption that the Virginia results stand, the new chairs of key Senate Committees and Subcommittees are likely to be:

• Appropriations: Senator Kent Conrad (ND)
• Our Appropriations Subcommittee: Senator Patty Murray (WA)
• Agriculture: Senator Tom Harkins (IA)
• Banking: Senator Chris Dodd (CT)
• Environment and Public Works: Senator Barbara Boxer (CA)
• Finance: Senator Max Baucus (MT)
• Health, Education, Labor and Pensions: Senator Ted Kennedy (MA)
• Small Business: Senator John Kerry (MA)
• Indian Affairs: Senator Byron Dorgan (ND)

House Chairs

• Appropriations: Rep. David Obey (WI)
• Our Appropriations Subcommittee: Rep. John Olver (MA)
• Agriculture: Rep. Collin Peterson (MN)
• Education and the Workforce: Rep. George Miller (CA)
• Financial Services: Rep. Barney Frank (MA)
• Small Business: Rep. Nydia Velazquez (NY)
• Ways and Means: Rep. Charlie Rangel (NY)

Please keep a watch for more detailed information from Sandra Kerr, our Policy Director. And please note that some of the Committees might change in scope and jurisdiction, as well as name.

Memorable Comments

Elsie Meeks... said during her comments at the first Native CDFI Awards:

"So many tribes have existed by selling poverty. We've gotten our federal support and our grants and all that by being poor.... We're not selling poverty anymore. The message is about opportunity."

First Native CDFI Awards

Congratulations! On Tuesday, October 31, Oweesta and Opportunity Finance Network awarded the first-ever Native CDFI Awards to:

• Citizen Potawatomi Community Development Corporation in Shawnee, OK, received the "Circle of Honor" Award for Outstanding Leadership, and
• Susan Hammond, founding director of Four Directions Development Corporation of Orono, ME, received the "Visionary Leader" Award for Outstanding Achievement.

Oweesta Executive Director Elsie Meeks said at the ceremony that, "For many Native people and tribes, the idea of private assets and ownership is often viewed as diametrically opposed to their cultural ways and traditions. Therefore, we wanted to honor the efforts of those who are committed to making Native CDFIs a force for change in their communities."

It is an honor to be part of the rapidly expanding Native CDFI movement.

Congratulations to the awardees.

Congratulations, Kathy!

Social Investment Forum. Congratulations, Kathy Stearns, our Executive Vice President for CARS(TM), who won a seat on the board of the Social Investment Forum last week at the "SRI in the Rockies" Conference.

Be Careful What You Say

Rove's Critical Mistake. There are many reasons the Republicans stumbled so badly in yesterday's election. I believe the Republicans started to unravel just a few days after the 2004 elections, when Karl Rove told reporters that he planned to stay at the White House and did not plan to get involved in future presidential campaigns. That offhand comment weakened his hand at disciplining the Republican troops, since no Republicans had cause to fear him as much. Rove recognized the problem and, just days, later tried to recover, but the damage was done. The Republicans started to fray.

Pelosi's Comment. In politics, you don't make promises you can not keep. On NPR this morning, I heard Speaker-to-be Nancy Pelosi say that under her leadership the House of Representatives in the 110th Congress would be the most ethical, most principled, and most honorable House ever. It sounds good, but even the NPR newscaster noted that it was "an awful big promise to keep." As soon as something unethical, unprincipled, and/or dishonorable happens--and it will--Pelosi's comment will come back at her.

Politics is a tough business.

Overwhelming

Against the Odds. The Democratic House gains are particularly remarkable because of the structural obstacles the Republicans had built while in power--notably extreme gerrymandering, incumbency, the power of the White House (which seems to have backfired), and fundraising. When you hear commentators such as George Will say that the Democratic gains are average for the sixth year of a presidency, remember that the playing field this year tilted Republican. Apparently, the national mood tilted sharply Democratic.

Nancy Pelosi, Speaker of the House

History. One of the things we will always remember about this election is Nancy Pelosi's rise to the highest elected office any woman has attained in the history of the United States. It's been a long time coming.

It's Starting to Look Overwhelming

Watching from PA-08. This election is turning out just the way the polls suggested it would. Fascinating. Somehow, no matter what we sometimes want to believe, the law of large numbers seems to hold, election cycle after election cycle.

I am in Pennsylvania's 8th District, where incumbent Michael Fitzpatrick (R) is trailing challenger Patrick Murphy (D) by less than 1,000 votes. This district (I grew up here) has long leaned moderate Republican, and still does, though it has gradually become more Democratic. Fitzpatrick ran a much better campaign, but Murphy (an Iraqi war veteran) fought hard.

When this race showed up as "competitive" about a month ago, I started to believe that the election was going to trend Democratic. Democratic challengers have already pulled off a bunch of upsets in Pennsylvania and elsewhere, so Murphy just might hold on.

We'll see, but probably not until tomorrow morning.

CDFI Backers in the Loss Column

Santorum, Northup Lose. Two strong supporters of the CDFI Fund have lost, according to projections: Senator Rick Santorum (R-PA) and Rep. Anne Northrup (R-KY).

Election Watching

Early Results. What's interesting early on is that the results seem to be tracking the prevailing poll results.

Don't Miss This!

Important News Amid Election Noise. Today's elections are important. So is  a speech delivered yesterday by Janet Yellen, President of the San Francisco Federal Reserve Bank. Discussing income inequality, not the usual fare of Fed Presidents, Yellen concluded:

"...there are signs that rising inequality is intensifying resistance to globalization, impairing social cohesion, and could, ultimately, undermine American democracy. Improvements in education are an imperative for reducing inequality and an easily justifiable investment, given its high social return. In contrast, improvements in the social safety net entails costs, even when policy interventions are well-designed from an efficiency standpoint. Even so, in my opinion, they deserve high policy priority. Inequality has risen to the point that it seems to me worthwhile for the U.S. to seriously consider taking the risk of making our economy more rewarding for more of the people."

I have uploaded the full speech here: Download yellen_11606_speech.pdf.