Bailout Banks Sought More Foreign Workers

Number Of H-1B Visas Requested By Banks For Employees Increased By One-Third Last Year

(AP)  Even as the economy collapsed last year and many financial workers found themselves unemployed, the dozen U.S. banks now receiving the biggest rescue packages requested visas for tens of thousands of foreign workers to fill high-paying jobs, according to an Associated Press review of visa applications.

The major banks, which have received $150 billion in bailout funds, requested visas for more than 21,800 foreign workers over the past six years for senior vice presidents, corporate lawyers, junior investment analysts and human resources specialists. The average annual salary for those jobs was $90,721, nearly twice the median income for all American households.

The numbers of visas sought by the dozen banks in AP's analysis increased by nearly one-third, from 3,258 in the 2007 budget year to 4,163 in fiscal 2008.

The AP reviewed visa applications the banks filed with the Labor Department under the H-1B visa program, which allows temporary employment of foreign workers in specialized-skill and advanced-degree positions. Such visas are most often associated with high-tech workers.

It is unclear how many foreign workers the banks actually hired; the government does not release those details. The actual number is likely a fraction of the 21,800 foreign workers the banks sought to hire because the government only grants 85,000 such visas each year among all U.S. employers.

During the last three months of 2008, the largest banks that received taxpayer loans announced more than 100,000 layoffs. The number of foreign workers included among those laid off is unknown.

Foreigners are attractive hires because companies have found ways to pay them less than American workers.

Companies are required to pay foreign workers a prevailing wage based on the job's description. But they can use the lower end of government wage scales even for highly skilled workers; hire younger foreigners with lower salary demands; and hire foreigners with higher levels of education or advanced degrees for jobs for which similarly educated American workers would be considered overqualified.

"The system provides you perfectly legal mechanisms to underpay the workers," said John Miano of Summit, New Jersey, a lawyer who has analyzed the wage data and started the Programmers Guild, an advocacy group that opposes the H-1B system.

David Huber of Chicago is a computer networking engineer who has testified to Congress about losing out on a 2002 job with the former Bank One Corp. He learned later the bank applied to hire dozens of foreign visa holders for work he said he was qualified to do.

"American citizenship is being undermined working in our own country," Huber said in an AP interview.

Beyond seeking approval for visas from the government, banks that accepted federal bailout money also enlisted uncounted foreign workers, often in technology jobs, through intermediary companies known as "body shops." Such businesses are the top recipients of the H-1B visas.

The use of visa workers by ailing banks angers Sen. Chuck Grassley of Iowa, the senior Republican on the Senate Finance Committee.

"In this time of very, very high unemployment ... and considering the help these banks are getting from the taxpayers, they're playing the American taxpayer for a sucker," Grassley said in a telephone interview with AP.

Grassley, with Sen. Richard Durbin, an Illinois Democrat, is pushing for legislation to make employers recruit American workers first, along with other changes to the visa program.

Banks turned to foreign workers before the current economic crisis, said Diane Casey-Landry, chief operating officer for the American Bankers Association. The group said a year ago that demand exceeded the pool of qualified workers in areas like sales, lending and bank administration. Now with massive layoffs, the situation is different, Casey-Landry said.

The issue takes on a higher profile as the government injects billions of dollars into the economy and President Barack Obama pushes for massive government spending to create jobs nationwide, on top of the $700 billion already approved for the ailing banks.

But New York Mayor Michael Bloomberg believes more access to "worldwide talent pools" will better position U.S. financial companies against global competitors, spokesman Andrew Brent said.

U.S. Citizenship and Immigration Services declined to disclose details on foreign workers hired at the banks that have received federal bailouts. The AP has requested the information under the U.S. Freedom of Information Act.

Nearly all the banks the AP contacted also declined to comment on their foreign hiring practices. Arlene C. Roberts, spokeswoman for State Street Corp. of Boston, which has received $2 billion in bailout money, said the company has reduced H-1B hiring in recent years, and just hires for specialized positions.

Jennifer Scott of Yreka, California, a retired technical systems manager at Bank of America in Concord, California, said in 2004 she oversaw foreign employees from a contractor firm that also sent overnight work to employees in India.

"It had nothing to do with a shortage, but they didn't want to pay the U.S. rate," she said, adding that the quality of the work was weak. "It's all about numbers crunching."

[h1btax]

"In this time of very, very high unemployment ... and considering the help these banks are getting from the taxpayers, they're playing the American taxpayer for a sucker," Grassley said in a telephone interview with AP.

regarding this....i respect grassleys views....but my point is. you are helping the banks from taxpayer money to create jobs. then you should not forget in that $700m there is some part of money that has been collected as a tax from a worker who is on H1b. So by collecting money from a person as tax.....bailing out those money to banks and then telling that person that sorry buddy you are of no help to use is totally an injustice to that person....My question to those ppl who are protectionist. You force to pay h1b worker the same tax as a person who is citizen and when it comes to using that money you think that h1b worker is an hinderance to the economy. isnt that unfair? also let me point one more thing. An h1b worker in california is suppose to pay 33% taxes, just like a citizen do. but when it comes to getting benefits they dont get the same benefits that a citizen gets...isnt that unfair

[lilly1232]

The big picture here is in order for banks to make money off americans, americans need good jobs. Banks involved in this scam are too stupid to realize they are cutting their own throats. In the past 8 years I have said 1 thing over and over and over. Americans are too stupid to realize...
BTW...I hear bush''''s brother will be running for president in 2012. All you stupid americans will have another shot at complete stupidity in 4 years. Can''''t wait.


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Posted by kuei12

The same can be said for all of you American''s that buy *** cars. and you think the banks are cutting their own throuts. well, I thought the same over 20 years ago. But guess what ya still keep buying *** cars. Now you are losing your jobs to coutries all over the world. After all this time I do not see any change coming any time soon. Except, there may not be a United States in the near future.

[lilly1232]

I have only read two of the posts on this subject. I have one thing to say about it.
And you still think we don''t need unions. why people think big business is going to be fair,is beyond me. They never have been nor will they ever be. This proves it.
If President Obama want real change, he will stop this raping of our country by big business.

[goosfraba2]

Corporate-America and Congress just don''t get it. The French royal family and the nobles (the rich) in the late 18th Century didn''t get it either.

[ctla567]

If Diane Casey-Landry, chief operating officer of American banker Association, thinks those who are now worker for the association are qualified to work there, she better thinks again.

[jetranger7]

BREAKING NEWS- as being reported on MSNBC.COM Banks are complaing that the federal Government won''t let them make loans ! Yet we find out thru an ABC NEWS Invetigation, that "BANK of AMERICA" just Spent "10- Million dollars" of "YOUR" Tax Dollars on the SUPER BOWL for their Corporate Executives to attend lavish penthouse suites and an after Super Bowl Party !!! Thats 10- Million US TAX DOLLARS after we Bailed them out !! Weren''t you invited to that lavish party ???? These Corporate Banks are nothing more than Liars and Con Artists, Fraudulent and Corrupt, all should be sent to prision immediately, We''ve been Ripped Off by the Corporate Bankers- BOYCOTT these Banks such as BOA !!!!

[mcv57]

Posted by stevador39

Obama is not protecting him, the GOP and rich are protecting him.

[mcv57]

This country''s economic condition is so perverted that one must be a foreigner who is willing to work slave wages.

I have a degree and I can''t get a job unless I speak spanish.

[win4usa]

I''m surprised that anyone whose against bailout funds/loans hasn''t withdrawn all their money from these banks and stopped using all their services. Banks don''t survive if they don''t have customers.

[jetranger7]

EVERYBODY- Research this, and spread the word to as many as possible Quickly ! Go GOOGLE "BILDERBERGER SECRET MEETING" , read what their about, who their attendees are, where these Secret Meetings are held, why they are so secret, why the armed guards, and why NO Press is ever allowed, Why they believe in the "NWO" - NEW WORLD ORDER,,, they believe in that, and also believe in the Economic Destruction of the United States, and order out of Chaos, and theres plans for whats known as "OPERATION GARDEN PLOT" - Google that too,,, Ohhh My God- its here, its Happening, and its Real, their doing it, and getting by with it, and nobody is paying attention,, OHHH MY GOD , OH MY GOD !!!!!!!!!!!!

[enriquecaliente]

Off-shoring, is what the banks and brokerage houses and most tech companies call it. All tech support is coming out of INDIA. All that the CEO''s and CFO''s see are the numbers in savings, that they get. They don''t have to pay anything into SS, or benefits, insurance costs are down as they don''t have the overhead. They''ve cut salaries and then they dived that into their bonuses. These very same corporations complain and the Repubitards will swear to, that they''ve got the larges corporate taxes ion the world. BUT, what they don''t say is that they also get so many tax breaks, that by the time they pay their taxes it''s less then a quarter of what is was in the first place. PLEASE.

[stevador39]

Bail out Obama led the dems fight for money for the rich. He deserves to be impeached. Bush is a War Criminal and Obama is protecting him from Treason charges.

[endrepubs]

These banks should not get a penny of American taxpayer bailout money when they are outsourcing jobs overseas. That should be a requirement of getting the money. Create American jobs with American money.

[noloyalisti]

You can''t make up this level of right wing slime. You just have to blatantly fool and rape the American taxpayers.

[hsinco-2009]

Why do Repugs and Corporations hate the US worker?

Is it because they want to be paid a fair wage? Not like foreigners who are willing to take anything offered?

[jxknowles]

Lack of regulation and oversight caused the problems in the financial/banking and energy sectors. They thought they were bigger and more powerful than the whole of America. Keep the banks, just fire all the people running them. Hire people who can do an honest job.

[incog-nito]

Reasons why the American worker is in trouble, economic crisis or not:

1. Outsourcing cheap labor to other countries.
2. Insourcing cheap labor from other countries.
3. Cheap labor from legal and illegal immigration.

These trends will continue indefinitely as long as American wages are still higher than foreign ones. You can thank your trusty "American" corporations for that.

[win4usa]

Washington will hear us if we boycott all companies receiving bailout funds/loans.

[roghil]

Of course they did, because they are just

greed driven republiCON pigs, all they care about

is the wealthy and money,

you republiCON LIARSA can blame Clinton or even Obama

but the rest of us know how to read, and we have been

paying attention to what the republiCON party has

done for the last eight years,

RepubliCON''''s are anti american fascists


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Posted by pythoncharly at 11:03 AM : Feb 02, 2009
+ report abuse

Apparently, you don''t know how to read. It was Barney Frank and his buddies that fought against tighter regulations of Freddie Mac and Fannie Mae that were proposed by former President Bush in 2002. This was after the de-regulation Former President Clinton convinced Congress to pass in 1998. You can look up Barney Frank on Youtube and see the videos of the hearings. I guess you wouldn''t want facts to get in the way of your little rants though.

[noloyalisti]

This bailout for the rich was a scam from the beginning and that is why I was out on the street protesting it. I mean Bozo Butch was for it so how could it have been good. I am just sorry that some of the Dems are traitors also.