Deval Patrick on Corporations

Democratic Governor (MA) and presidential contender


Focus investments on community as part as long-term value

Q: Many Americans are already skeptical of large corporations' influence over policy decisions. How can we trust your ability to regulate an industry you so recently worked in?

PATRICK: I founded a fund at Bain Capital to invest in companies for social and environmental good. Because I wanted to prove what I believe to be true, which is that this notion of having to trade financial return for social good was a false trade all along, that you don't have to. And we proved that we could get a competitive return and have measurable, meaningful social & environmental good. We've been practicing a kind of capitalism in this country for a long time that was all about short-term gains, next quarter's results, without due regard for the long-term interests in the enterprise, of the people in the community and the planet. We've got to get back to a different definition of long-term value. And I think it's an incredibly important proof point for business generally and for investment in particular.

Source: CNN N. H. Town Hall on eve of N. H. primary , Feb 6, 2020

Served on board of corporate parent of predatory lender

From 2004 to 2006, Patrick was on the board of ACC Capital, corporate parent of Ameriquest, the nation's largest originator of subprime loans--described as one of "the worst" lenders in the country by the Treasury Department. It used high-pressure sales tactics to get people who already owned their homes to refinance themselves out of straightforward mortgages and into loans that featured skyrocketing interest rates and balloon payments. It particularly targeted the African-American community.

Patrick joined the board after it was already under investigation and has argued he used his position to help change the bank's culture. In May 2005, with Patrick on its board, the company settled a $50 million class-action lawsuit charging it had defrauded borrowers in four states. The following year, it agreed to pay $325 million to end a lawsuit brought by 49 state attorneys' general that alleged systemic fraud. Patrick quit the board shortly after the $325 million settlement.

Source: DailyBeast.com on 2019 Democratic primary , Nov 24, 2019

Opportunity requires growth, and growth requires investment

For pilgrims seeking to worship freely, for slaves seeking freedom, for immigrants seeking a better way, for your mothers and fathers and grandmothers and grandfathers seeking a toehold in the middle class, Massachusetts has beckoned seekers as a land of opportunity.

Everybody in this Chamber gets that. You respond to seekers, just as I do. You see their craving for opportunity, and you know that opportunity is at the core of the American Dream itself. From good jobs to good communities, creating opportunity is at the center of our best work.

Opportunity is too important to leave to chance. Opportunity requires growth. And growth requires investment. It's just as true of government as in any business. The economy is not like the weather; it is not some natural force that is beyond our control, something where we have to wait for others to predict or explain. What we choose to do, and not to do, shapes our future. That is why we invest in education, innovation & infrastructure.

Source: 2013 State of the State address to Commonwealth Legislature , Jan 16, 2013

Financial bottom line is not the only bottom line

There is a mindset in our country among hard right-wingers and free-market purists that poverty is exclusively the fault of the impoverished. They're lazy. They're not motivated. Capitalism produces the greatest good for the greatest number, and if there's collateral damage in the process, so be it.

All that market fundamentalism is about is letting people's consciences off the hook. If the market is "just," none of us is responsible for the havoc it may wreak. But the invisible hand of the market need not be free of ethical values, and ought not be. In any event, there is a right way to lay off people and a wrong way.

The financial bottom line is not the only bottom line. There is also a community bottom line, an environmental bottom line, a moral bottom line, and public leadership should try to integrate all of them.

Source: A Reason to Believe, by Gov. Deval Patrick, p.169 , Apr 12, 2011

Local capital for local biz, & state pays for infrastructure

Q: What would you do to keep small businesses in Massachusetts?

PATRICK: We’ve got to speed up the permitting and approval processes. I also think we have to do things to connect up good ideas with the capital they need to get started. Remember, it is small and medium businesses where most jobs get created and it’s a good idea looking for capital in a neighborhood. I also think we’ve got to reinvest in our infrastructure, because if the roads and bridges are falling apart businesses will leave.

Source: 2006 MA Gubernatorial debate on Fox News with Chris Wallace , Sep 25, 2006

Regulation at the speed of business

Consistent with good environmental stewardship, no state permit or approval process will take more than 6 months. Businesses will have one place to go to manage through necessary state approvals. We will work with local authorities & interested parties to pre-permit development sites and anticipate infrastructure needs so that they are development-ready. I will sign into law the pending legislative proposal to stimulate the Massachusetts economy.
Source: Moving Massachusetts Forward, Patrick’s policy booklet, p. 4 , Sep 15, 2005

Access to start-up capital for small businesses

State funds will leverage private capital in private investment funds to provide start-up capital for new enterprises across the State, with an emphasis on small businesses. The more jobs created by the new enterprise, particularly in distressed areas, the more favorable the terms for repayment.  Sign Economic Stimulus Package into Law.
Source: Moving Massachusetts Forward, Patrick’s policy booklet, p. 4 , Sep 15, 2005

Focused on fair lending practices in Clinton Admin

Q: You faced a lot of other challenges in these two years. What are you most proud of?

A: I think we have made a tremendous amount of progress in the area of fair lending. We have had a number of very carefully targeted cases, all but one of which have resulted in agreed resolutions.

Q: And what were the problems you’re addressing with those cases?

A: There were a couple of different kinds. One was underwriting discrimination, that is, differences in judgments among comparably qualified individuals that seemed to be based entirely on race or ethnic background, in some cases on age or gender differences. In other cases we saw people with comparable credit backgrounds and credit histories being charged dramatically different rates for the same lending product. The lending industry itself attributes to the attention that this administration has given these issues a record level of lending to African-American and Hispanic-American borrowers. I think that has been terrific.

Source: Elizabeth Farnsworth interview on PBS Newshour , Jan 10, 1997

Other candidates on Corporations: Deval Patrick on other issues:
2020 Presidential Democratic Primary Candidates:
V.P.Joe Biden (D-DE)
Mayor Mike Bloomberg (I-NYC)
Gov.Steve Bullock (D-MT)
Mayor Pete Buttigieg (D-IN)
Rep.Tulsi Gabbard (D-HI)
Sen.Amy Klobuchar (D-MN)
Gov.Deval Patrick (D-MA)
Sen.Bernie Sanders (I-VT)
Sen.Elizabeth Warren (D-MA)

2020 GOP and Independent Candidates:
Rep.Justin Amash (Libertarian-MI)
CEO Don Blankenship (C-WV)
Gov.Lincoln Chafee (L-RI)
Howie Hawkins (Green-NY)
Gov.Larry Hogan (R-MD)
Gov.John Kasich (R-OH)
V.P.Mike Pence (R-IN)
Gov.Mark Sanford (R-SC)
CEO Howard Schultz (I-WA)
Pres.Donald Trump (R-NY)
Gov.Jesse Ventura (I-MN)
V.C.Arvin Vohra (Libertarian-MD)
Rep.Joe Walsh (R-IL)
Gov.Bill Weld (L-NY,R-MA)
Civil Rights
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External Links about Deval Patrick:

2020 Withdrawn Democratic Candidates:
State Rep.Stacey Abrams (D-GA)
Sen.Michael Bennet (D-CO)
Sen.Cory Booker (D-NJ)
Secy.Julian Castro (D-TX)
Mayor Bill de Blasio (D-NYC)
Rep.John Delaney (D-MD)
Sen.Kirsten Gillibrand (D-NY)
Sen.Mike Gravel (D-AK)
Sen.Kamala Harris (D-CA)
Gov.John Hickenlooper (D-CO)
Gov.Jay Inslee (D-WA)
Mayor Wayne Messam (D-FL)
Rep.Seth Moulton (D-MA)
Rep.Beto O`Rourke (D-TX)
Rep.Tim Ryan (D-CA)
Adm.Joe Sestak (D-PA)
CEO Tom Steyer (D-CA)
Rep.Eric Swalwell (D-CA)
Marianne Williamson (D-CA)
CEO Andrew Yang (D-NY)

Page last updated: Feb 24, 2020