Need to visit the barber? Come to Occupy Boston (Dewey Square) for a haircut today!
At Dewey Square today—Monday, November 28—you will see six barber stools representing the six biggest banks: JPMorganChase, Bank of America, Citibank, Wells Fargo, Morgan Stanley, and Goldman Sachs. From 3 pm to 6 pm, skilled barbers will operate at each of these stations, providing free haircuts to occupiers and supporters.
But why?
Occupy Boston is transforming itself into a barbershop to send a message about a financial concept called a “haircut”. In banking, a “haircut” is when a bank or other lender adjusts the terms of a loan to decrease the debt on the borrower. While banks routinely take “haircuts” when dealing with large corporations and wealthy clients, they rarely do the same when dealing with members of the 99% who are paying back mortgage loans, student loans, credit card loans and other debts.
When faced with losses of homeowners and consumers, big banks often play hardball. They threaten homeowners with foreclosure and report the borrower to the credit agencies, damaging their credit rating. But with bigger, richer borrowers like corporations, bankers routinely agree to negotiate haircuts and other changes in loan contracts, since refusing to do so could cause the borrower to file for bankruptcy, causing even bigger losses and jeopardizing future business (and the lucrative fees) from corporate borrowers.
Now, big banks need to take a haircut. Banks can provide immediate relief to American homeowners, families, working people, and students by writing down the value of underwater mortgages and unbearable consumer and student loan debt. Banks agree to haircuts on loans for large corporations because rigid adherence to the terms of the loan will hamstring the prosperity and productivity of the borrower. Banks’ insistence on rigid adherence to the terms of loans is, right now, destroying the prosperity and productivity of American homeowners, students, and workers. By taking haircuts on loans belonging to the 99%, banks would reduce monthly loan payments for millions of Americans, providing immediate relief to household budgets and spurring economic recovery.
Banks need a haircut. Do you?
