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Can the AEC be a success? - nsnbc international | nsnbc international - 0 views

  • After almost two decades of discussion, the ASEAN Economic Community (AEC) will be proclaimed on 31st December. The AEC is a potentially significant and competitive economic region, should it be allowed to develop according to the aspiration of being a “single market and production base, with free flow of services, investments, and labour, by the year 2020”.
  • The ASEAN region as a composite trading block has the third highest population at 634 million, after China and India. GDP per capita is rapidly rising. The AEC would be the 4th largest exporter after China, the EU, and the United States, with still very much scope for growth from Cambodia, Myanmar, the Philippines, and Vietnam from a diverse range of activities ranging from agriculture, food, minerals and commodities, electronics, and services. The coming AEC is already the 4th largest importer of goods after the United States, EU, and China, making it one of the biggest markets in the world. Unlike the other trade regions, the AEC still has so much potential for growth with rising population, rising incomes, growing consumer sophistication, and improving infrastructure. Perhaps the biggest benefit of the upcoming AEC is the expected boost this will give to intra-ASEAN trade. Most ASEAN nations have previously put their efforts into developing external relationships with the major trading nations like the EU, Japan and the US through bilateral and free trade agreements. To some extent, the potential of intra-ASEAN trade was neglected, perhaps with the exception of the entrepot of Singapore. The AEC is an opportunity to refocus trade efforts within the region, especially when Vietnam, Cambodia, Indonesia are rapidly developing, and Myanmar is opening up for business with the rest of the region.
  • There are no integrated banking structures, no agreement on common and acceptable currencies (some ASEAN currencies are not interchangeable), no double taxation agreements, and no formal agreements on immigration. There is not even any such thing as a common ASEAN business visa. These issues are going to hinder market access for regional SMEs. Any local market operations will have to fulfil local laws and regulations which may not be easy for non-citizens to meet and adhere to. Even though there are some preferential tariffs for a number of classes of ASEAN originating goods, non-tariff barriers are still in existence, which are insurmountable in some cases like the need for import licenses (APs) in Malaysia, and the need to have a registered company which can only be formed by Thai nationals within Thailand. Some of these problems are occurring because of the very nature of ASEAN itself. ASEAN was founded on the basis of consultation, consensus, and non-interference in the internal affairs of other members. This means that no formal problem solving mechanism exists, and the ASEAN Secretariat is a facilitator rather than implementer of policy. Illegal workers, human trafficking, money laundering, and haze issues between member states have no formal mechanisms through which these issues can be solved from an ASEAN perspective. This weakens the force for regional integration.
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  • However the necessary infrastructure to support intra-ASEAN trade growth is lagging behind with a delay in the completion of the Trans-Asia Highway in Cambodia, and vastly inadequate border checkpoints between Malaysia and Thailand in Sadao and Kelantan. Some infrastructure development projects have been severely hit by finance shortfalls within member states. There are a number of outstanding issues concerning the growth and development of the AEC. The ASEAN Secretariat based in Jakarta has a small staff, where the best talent is lacking due to the small salaries paid. The Secretariat unlike the EU bureaucratic apparatus in Brussels relies on cooperation between the member state governments for policy direction, funding and implementation of the AEC. Thus the frontline of AEC implementation are the individual country ministries, which presents many problems, as some issues require multi-ministry cooperation and coordination, which is not always easy to achieve as particular ministries have their own visions and agendas. Getting cooperation of these ministries isn’t easy. There are numerous structural and procedural issues yet to be contended with. At the inter-governmental level, laws and regulations are yet to be coordinated and harmonized. So in-effect there is one community with 10 sets of regulations in effect this coming January 1st. Consumer laws, intellectual property rights, company and corporate codes (no provision for ASEAN owned companies), land codes, and investment rules are all different among the individual member states.
  • One of the major issues weakening the potential development of the AEC is the apparent lack of political commitment for a common market by the leadership of the respective ASEAN members. Thailand is currently in a struggle to determine how the country should be governed. Malaysia is in the grip of corruption scandals where the prime minister is holding onto power. Myanmar is going through a massive change in the way it will be governed. Indonesia is still struggling with how its archipelago should be governed. There is a view from Vietnam that business within the country is not ready for the AEC. Intense nationalistic sentiments among for example Thais, exasperated by the recent Preach Vihear Temple conflict along the Thai-Cambodian border need to be softened to get full advantage out of the AEC. The dispute in the International Court of Justice over Pedra Branca, and the Philippine rift with China over the South China Sea show the delicacy of relationships among ASEAN members. The recent Thai court decision on the guilt of Zaw Lin and Win Zaw Tun in the murder of two young British tourists may also show how fragile intra-ASEAN relationships can be. The AEC is going to fall far short of achieving its full potential of becoming a major influence in global trade. The AEC is not intended to be the same model as the EEC. The AEC is far from being any fully integrated economic community. The lack of social, cultural, and political integration within the ASEAN region indicates the massive job ahead that Europe had been through decades ago. There is still a lot of public ignorance about what the AEC is, and lack of excitement or expectation for what should be a major event within the region. Respective national media are scant on information about the forthcoming launch of the AEC.
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Orange's pullout from Israel gives lift to boycott movement - 0 views

  • French telecom giant Orange SA's declaration that it wants to cut business ties with Israel has given a boost to the burgeoning anti-Israel boycott movement while also drawing a sharp rebuke from Prime Minister Benjamin Netanyahu on Thursday. The Orange company logo is seen covered with an Israeli flag at the "Partner Orange" Communications Company's offices in the city of Rosh Haain, Israel, Thursday, June 4, 2015. An Israeli Cabinet minister has called on the French president to fire the chief executive of French telecom giant Orange. Culture Minister Miri Regev issued her appeal on Thursday, a day after Orange's CEO announced in Cairo that he would like to sever his company's ties to Israel as soon as possible.
  • The move bodes poorly for Israel at a time of growing international anger over its West Bank settlements and could potentially put almost any Israeli company in the crosshairs of the boycott campaign. It also has illustrated just how deeply intertwined Israeli settlements are with the rest of the country. Netanyahu responded angrily on Thursday, calling on "the French government to publicly repudiate the miserable statement and miserable action by a company that is under its partial ownership." The remarks came a day after Orange's chief executive Stephane Richard said he would end his company's relationship with Partner Communications Ltd. "tomorrow" if he could, but that he was bound by a contract for the time being. He cited the company's sensitivity to Arab countries. Partner licenses the Orange brand name in Israel. Richard's announcement caused uproar in Israel. "The absurd drama in which the democracy that observes human rights — the state of Israel — and which defends itself from barrages of missiles and terrorist tunnels, and then absorbs automatic condemnations and attempted boycotts, this absurd drama will not be forgiven," Netanyahu also said. Pro-Palestinian activists in France have been pushing for Orange to end the relationship over Partner's activities in Israeli settlements. The settlements, built on land the Palestinians want for a future state, are seen as illegitimate by the international community.
  • With Richard's comments, Orange appeared to becoming the largest and best-known company to yield to pressure from a global movement calling for boycotts, divestment and sanctions against Israel. Israeli officials say the so-called BDS movement is not out to promote peace, but instead aims to "delegitimize" the country's very existence as a Jewish state. They point to the grassroots BDS movement's support for millions of Palestinian refugees to return to ancestors' homes in what is now Israel. Israel rejects the "right of return," saying it would end the country's character as a Jewish and democratic state. In a statement issued in Paris, Orange said it sought to clarify that it wants to pull out of Israel for business reasons, not political ones. The company said it doesn't want to maintain a presence in countries where Orange itself is not a phone provider, and that the move is "in conformity with its brand policy." Orange said it "has no reason to take part ... in a debate of a political nature." Other Israeli officials also denounced Richard's comments. Culture Minister Miri Regev called on the French government to "show zero tolerance for anti-Semitism." She also urged Jewish customers of Orange in France and around the world to drop their service and switch carriers.
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  • Orange, one of the world's largest telecom companies, provides mobile phone services in about 30 countries. It says it has about 200 million customers worldwide, and declared revenue last year of 39 billion euros ($44 billion). The French government holds a roughly 13.5 percent stake in Orange. The BDS movement has been showing increasing signs of traction. Several high profile artists have canceled performances in Israel and the movement has also become increasingly popular on U.S. college campuses.
  • U.S. Ambassador Dan Shapiro told Israel's Army Radio on Thursday that Washington would continue to oppose "inappropriate one-sided criticism against Israel." But he said this job would be harder to do because peace negotiations are not taking place. "Talks were always the most effective tool to beat these efforts," he said. "So if we don't have any talks now, and most of the world doesn't think they will take place anytime soon, how can we fight boycott, sanctions and delegitimization, and how can we keep two state solution realistic?"
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Securing Our Digital Economy | Internet Society - 0 views

  • Germany wants G20 leaders to agree to a concrete plan – one that includes affordable Internet access across the world by 2025, common technical standards and a focus on digital learning. Today, the G20 economies, like so many other economies around the world, are digital and interconnected. Digital services have opened up new avenues for sustainable economic growth. But, the digital economy will only continue to thrive and generate opportunities for citizens if the Internet is strong, secure, and trusted. Without this foundation, the global digital economy is at risk. Currently, there are 360 million people that take part in cross-border e-commerce. 28% of output in mature economies is digital. The Internet is set to contribute $6.6 trillion a year, or 7.1% of the total GDP in the G20 countries. And, by 2020, it’s estimated that more than 1 billion users will be added and there will be 30-50 billion additional connected devices. This level of interconnection will only boost the market. However, this cannot happen without a serious commitment by all parties to security and privacy. The truth is that economies can only function within a secure and trusted environment. Which brings us to encryption. Strong encryption is an essential piece to the future of the world’s economy and the Internet Society believes it should be the norm for all online transactions. It allows us to do our banking, conduct local and global business, run our power grids, operate, communications networks, and do almost everything else.
  • Encryption is a technical building block for securing infrastructure, communications and information. It should be made stronger and universal, not weaker. However, rather than being recognized as the way to secure our online transactions or our conversations, all too often the debate focuses on the use of encryption as a way to thwart law enforcement. To undermine the positive role of encryption in the name of security could have devastating consequences. Many great minds have already devoted considerable effort to resolving the conundrum posed by competing public policy objectives: providing security, safety and trust on the one hand, and law enforcement and legitimate policy goals on the other. But, it is time to stop kicking the encryption football up and down the field. Instead, we should recognize that encryption is key to the future digital economy and stop treating it as simply an obstacle to law enforcement. We need to deconstruct the issues faced by law enforcement and policy makers and agree together how we can achieve a trusted digital economy underpinned by encryption. This is the first time the G20 countries are holding a Ministerial on digital matters. It is also the first time that the G20 is inviting non-government stakeholders to contribute to these issues. This is a turning point that should not be missed. All views, including the technical perspective, must be at the table if we are to achieve progress on the G20’s ICT goals. If the G20 countries are serious about strengthening their economies and continuing to deliver economic and social prosperity to their citizens in future, there are three key principles they should endorse and implement immediately:
  • 1. Encryption is an important technical foundation for trust in the digital economy and should be the norm. All users (whether government, business or individual) should use encryption to protect infrastructure, communications and the privacy and integrity of their data. Encryption technologies should be strengthened, not weakened. 2. The security of the digital economy is a shared responsibility that needs the expertise and experience of all stakeholders, across border and across disciplines. It is an urgent need that will require open, inclusive collaboration. 3. Users’ rights should be at the heart of any decisions related to the digital economy. They are both the customers and the contributors to the success of the digital economy. The Internet Society calls for ubiquitous encryption for the Internet. We strongly believe that this is the best foundation for trust in the digital economy, and we urge the G20 nations to stand behind encryption.
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Subprime Banking Mess - 0 views

  • John Bird and John Fortune (the Long Johns) brilliantly, and accurately, describing the mindset of the investment banking community in this satirical interview.
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Zombie foreclosures: Borrowers hit with debts that won't die - Feb. 20, 2013 - 0 views

  • Borrowers are discovering that their foreclosed homes are coming back to haunt them -- long after they have moved out. In these "zombie foreclosures," borrowers move out after their bank schedules a foreclosure auction only to learn months or years later that the auction never took place or the bank never transferred the deed. That means the borrower still technically owns the house and is on the hook for property taxes, fees and homeowners' association dues. Since the housing bubble burst seven years ago, almost two million properties have started but never completed the foreclosure process, according to RealtyTrac. While no one knows the exact number, it's estimated that tens of thousands could be zombie foreclosures. Many of these homes are in low-income communities where foreclosures are so difficult to sell that lenders sometimes delay taking possession to save on taxes and other costs that then stay under the borrower's name. Those debts can then go unpaid for years because the borrower is unaware they owe them, further slamming their credit score and making life after foreclosure even harder.
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Report: Countrywide Used Loan Discounts to Buy Congress,          : Informati... - 0 views

  • The former Countrywide Financial Corp., whose subprime loans helped start the nation's foreclosure crisis, made hundreds of discount loans to buy influence with members of Congress, congressional staff, top government officials and executives of troubled mortgage giant Fannie Mae, according to a House report.   The report, obtained by The Associated Press, said that the discounts - from January 1996 to June 2008, were not only aimed at gaining influence for the company but to help mortgage giant Fannie Mae.
  • Among those who received loan discounts from Countrywide, the report said, were:   -       Former Senate Banking Committee Chairman Christopher Dodd, D-Conn.   -       Senate Budget Committee Chairman Kent Conrad, D-N.D.   -       Mary Jane Collipriest, who was communications director for former Sen. Robert Bennett, R-Utah, then a member of the Banking Committee.   -       Rep. Howard "Buck" McKeon, R-Calif., chairman of the House Armed Services Committee.   -       Rep. Edolphus Towns, D-N.Y., former chairman of the Oversight Committee.   -       Rep. Elton Gallegly, R-Calif.   -       Top staff members of the House Financial Services Committee. (AP)
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Why Bitcoin Matters | Marc Andreessen - 0 views

  • First, Bitcoin at its most fundamental level is a breakthrough in computer science – one that builds on 20 years of research into cryptographic currency, and 40 years of research in cryptography, by thousands of researchers around the world. Bitcoin is the first practical solution to a longstanding problem in computer science called the Byzantine Generals Problem. To quote from the original paper defining the B.G.P.: “[Imagine] a group of generals of the Byzantine army camped with their troops around an enemy city. Communicating only by messenger, the generals must agree upon a common battle plan. However, one or more of them may be traitors who will try to confuse the others. The problem is to find an algorithm to ensure that the loyal generals will reach agreement.” More generally, the B.G.P. poses the question of how to establish trust between otherwise unrelated parties over an untrusted network like the Internet.
  • The practical consequence of solving this problem is that Bitcoin gives us, for the first time, a way for one Internet user to transfer a unique piece of digital property to another Internet user, such that the transfer is guaranteed to be safe and secure, everyone knows that the transfer has taken place, and nobody can challenge the legitimacy of the transfer. The consequences of this breakthrough are hard to overstate. What kinds of digital property might be transferred in this way? Think about digital signatures, digital contracts, digital keys (to physical locks, or to online lockers), digital ownership of physical assets such as cars and houses, digital stocks and bonds … and digital money. All these are exchanged through a distributed network of trust that does not require or rely upon a central intermediary like a bank or broker. And all in a way where only the owner of an asset can send it, only the intended recipient can receive it, the asset can only exist in one place at a time, and everyone can validate transactions and ownership of all assets anytime they want.
  • How does this work?
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  • Bitcoin is a digital bearer instrument. It is a way to exchange money or assets between parties with no pre-existing trust: A string of numbers is sent over email or text message in the simplest case. The sender doesn’t need to know or trust the receiver or vice versa. Related, there are no chargebacks – this is the part that is literally like cash – if you have the money or the asset, you can pay with it; if you don’t, you can’t. This is brand new. This has never existed in digital form before. Bitcoin is a digital currency, whose value is based directly on two things: use of the payment system today – volume and velocity of payments running through the ledger – and speculation on future use of the payment system. This is one part that is confusing people. It’s not as much that the Bitcoin currency has some arbitrary value and then people are trading with it; it’s more that people can trade with Bitcoin (anywhere, everywhere, with no fraud and no or very low fees) and as a result it has value.
  • Bitcoin is an Internet-wide distributed ledger. You buy into the ledger by purchasing one of a fixed number of slots, either with cash or by selling a product and service for Bitcoin. You sell out of the ledger by trading your Bitcoin to someone else who wants to buy into the ledger. Anyone in the world can buy into or sell out of the ledger any time they want – with no approval needed, and with no or very low fees. The Bitcoin “coins” themselves are simply slots in the ledger, analogous in some ways to seats on a stock exchange, except much more broadly applicable to real world transactions. The Bitcoin ledger is a new kind of payment system. Anyone in the world can pay anyone else in the world any amount of value of Bitcoin by simply transferring ownership of the corresponding slot in the ledger. Put value in, transfer it, the recipient gets value out, no authorization required, and in many cases, no fees. That last part is enormously important. Bitcoin is the first Internetwide payment system where transactions either happen with no fees or very low fees (down to fractions of pennies). Existing payment systems charge fees of about 2 to 3 percent – and that’s in the developed world. In lots of other places, there either are no modern payment systems or the rates are significantly higher. We’ll come back to that.
  • Why would any merchant – online or in the real world – want to accept Bitcoin as payment, given the currently small number of consumers who want to pay with it? My partner Chris Dixon recently gave this example: “Let’s say you sell electronics online. Profit margins in those businesses are usually under 5 percent, which means conventional 2.5 percent payment fees consume half the margin. That’s money that could be reinvested in the business, passed back to consumers or taxed by the government. Of all of those choices, handing 2.5 percent to banks to move bits around the Internet is the worst possible choice. Another challenge merchants have with payments is accepting international payments. If you are wondering why your favorite product or service isn’t available in your country, the answer is often payments.” In addition, merchants are highly attracted to Bitcoin because it eliminates the risk of credit card fraud. This is the form of fraud that motivates so many criminals to put so much work into stealing personal customer information and credit card numbers. Since Bitcoin is a digital bearer instrument, the receiver of a payment does not get any information from the sender that can be used to steal money from the sender in the future, either by that merchant or by a criminal who steals that information from the merchant.
  • What’s the future of Bitcoin?
  • Bitcoin is a classic network effect, a positive feedback loop. The more people who use Bitcoin, the more valuable Bitcoin is for everyone who uses it, and the higher the incentive for the next user to start using the technology. Bitcoin shares this network effect property with the telephone system, the web, and popular Internet services like eBay and Facebook. In fact, Bitcoin is a four-sided network effect. There are four constituencies that participate in expanding the value of Bitcoin as a consequence of their own self-interested participation. Those constituencies are (1) consumers who pay with Bitcoin, (2) merchants who accept Bitcoin, (3) “miners” who run the computers that process and validate all the transactions and enable the distributed trust network to exist, and (4) developers and entrepreneurs who are building new products and services with and on top of Bitcoin. All four sides of the network effect are playing a valuable part in expanding the value of the overall system, but the fourth is particularly important.
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    WOW! This is the must read article of the year. Great explanation of Bitcoin; what it is, how it works, and why it is so significant. Excellent analysis!
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Money Power - 0 views

  • money power exists and is wielded ruthlessly by the Anglo-American power elite that has amassed astounding, unimaginable wealth. Today, as the Internet forcibly relaxes the grip of the power elite (at least momentarily) the term is making something of a comeback. There are over 1.5 million Google cites featuring the term "money power."
  • "In a letter written to William Elkin less than five months before he was assassinated: "I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. As a result of the war, corporations have been enthroned and an era of corruption in high places will follow, and the money power of the country will endeavor to prolong its reign by working upon the prejudices of the people until all wealth is aggregated in a few hands, and the Republic is destroyed. I feel at this moment more anxiety for the safety of my country than ever before, even in the midst of war."
  • They know that there is a power somewhere so organized, so subtle, so watchful, so interlocked, so complete, so pervasive, that they had better not speak above their breath when they speak in condemnation of it."
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  • "The fact is that there is a serious danger of this country becoming a pluto-democracy; that is, a sham republic with the real government in the hands of a small clique of enormously wealth men, who speak through their money, and whose influence, even today, radiates to every corner of the United States."
  • Thomas Jefferson – "If the American people ever allow private banks to control the issue of their money, first by inflation and then by deflation, the banks and corporations that will grow up around them, will deprive the people of their property until their children will wake up homeless on the continent their fathers conquered."
  • American Mercury Magazine (December 1957, pg. 92) – "The invisible Money Power is working to control and enslave mankind. It financed Communism, Fascism, Marxism, Zionism and Socialism. All of these are directed to making the United States a member of World Government."
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Putin Advisor Proposes "Anti-Dollar Alliance" To Halt US Aggression Abroad | Zero Hedge - 0 views

  • It has been a while since both Ukraine, and the ongoing Russian response to western sanctions (which set off the great Eurasian axis in motion, pushing China and Russia close together, and accelerating the "Holy Grail" gas deal between the two countries) have made headlines. It is still not clear just why the western media dropped Ukraine coverage like a hot potato, especially since the civil war in Ukraine's Donbas continues to rage and claim dozens of casualties on both sides. Perhaps the audience has simply gotten tired of hearing about mixed chess/checkers game between Putin vs Obama, and instead has reverted to reading the propaganda surrounding just as deadly events in the third war of Iraq in as many decades. However, "out of sight" may be just what Russia's political elite wants. In fact, as VoR's  Valentin Mândr??escu reports, while the great US spin and distraction machine is focused elsewhere, Russia is already preparing for the next steps. Which brings us to Putin advisor Sergey Glazyev, the same person who in early March was the first to suggest Russia dump US bonds and abandon the dollar in retaliation to US sanctions, a strategy which worked because even as the Kremlin has retained control over Crimea, western sanctions have magically halted (and not only that, but as the Russian central bank just reported, the country's 2014 current account surplus may be as high as $35 billion, up from $33 billion in 2013, and a far cry from some fabricated "$200+ billion" in Russian capital outflows which Mario Draghi was warning about recently). Glazyev was also the person instrumental in pushing the Kremlin to approach China and force the nat gas deal with Beijing which took place not necessarily at the most beneficial terms for Russia.
  • It is this same Glazyev who published an article in Russian Argumenty Nedeli, in which he outlined a plan for "undermining the economic strength of the US" in order to force Washington to stop the civil war in Ukraine. Glazyev believes that the only way of making the US give up its plans on starting a new cold war is to crash the dollar system. As summarized by VoR, in his article, published by Argumenty Nedeli, Putin's economic aide and the mastermind behind the Eurasian Economic Union, argues that Washington is trying to provoke a Russian military intervention in Ukraine, using the junta in Kiev as bait. If fulfilled, the plan will give Washington a number of important benefits. Firstly, it will allow the US to introduce new sanctions against Russia, writing off Moscow's portfolio of US Treasury bills. More important is that a new wave of sanctions will create a situation in which Russian companies won't be able to service their debts to European banks. According to Glazyev, the so-called "third phase" of sanctions against Russia will be a tremendous cost for the European Union. The total estimated losses will be higher than 1 trillion euros. Such losses will severely hurt the European economy, making the US the sole "safe haven" in the world. Harsh sanctions against Russia will also displace Gazprom from the European energy market, leaving it wide open for the much more expensive LNG from the US.
  • Co-opting European countries in a new arms race and military operations against Russia will increase American political influence in Europe and will help the US force the European Union to accept the American version of the Transatlantic Trade and Investment Partnership, a trade agreement that will basically transform the EU into a big economic colony of the US. Glazyev believes that igniting a new war in Europe will only bring benefits for America and only problems for the European Union. Washington has repeatedly used global and regional wars for the benefit of  the American economy and now the White House is trying to use the civil war in Ukraine as a pretext to repeat the old trick. Glazyev's set of countermeasures specifically targets the core strength of the US war machine, i.e. the Fed's printing press. Putin's advisor proposes the creation of a "broad anti-dollar alliance" of countries willing and able to drop the dollar from their international trade. Members of the alliance would also refrain from keeping the currency reserves in dollar-denominated instruments. Glazyev advocates treating positions in dollar-denominated instruments like holdings of junk securities and believes that regulators should require full collateralization of such holdings. An anti-dollar coalition would be the first step for the creation of an anti-war coalition that can help stop the US' aggression.
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  • Unsurprisingly, Sergey Glazyev believes that the main role in the creation of such a political coalition is to be played by the European business community because America's attempts to ignite a war in Europe and a cold war against Russia are threatening the interests of big European business. Judging by the recent efforts to stop the sanctions against Russia, made by the German, French, Italian and Austrian business leaders, Putin's aide is right in his assessment. Somewhat surprisingly for Washington, the war for Ukraine may soon become the war for Europe's independence from the US and a war against the dollar.
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    Russia takes aim at the Fed's printing press with a U.S. dollar boycott to end the war in Ukraine. There are a lot of incentives for EU investors to join the boycott. Interesting idea; I'll need to think about this.  
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NSA Spied on World Bank, IMF, UN, Pope, World Leaders, and American Politicians and Mil... - 0 views

  • He says the NSA started spying on President Obama when he was a candidate for Senate: 
  • Another very high-level NSA whistleblower – the head of the NSA’s global intelligence gathering operation – says that the NSA targeted CIA chief Petraeus. Of course, the NSA also spied on the leaders of Germany, Brazil and Mexico, and at least 35 world leaders total. The NSA also spies on the European Union, the European Parliament, the G20 summit and other allies.
  • The NSA conducts widespread industrial espionage on our allies. That has nothing to do with terrorism, either.  And the  NSA’s industrial espionage has been going on for many decades.
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    Nice collection of links in a list of targets of NSA surveillance. 
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A new, extremely dangerous kind of Jewish fanaticism - Israel Opinion, Ynetnews - 0 views

  • What operation of the ugly kind with which we have become familiar, which aims to take revenge against Arabs or deter the authorities from evacuating communities.
  • t turns out that in the past year, the Shin Bet – especially its Jewish Division – has been dealing with a new kind of cancer, violent and repulsive, which has surpassed its predecessor. We are talking about a group of young Jews which has adopted an ideological, anti-Zionist, fanatic and anarchistic common denominator, seeking to destroy the "state of the Zionists" (that's their terminology) and establish a holy kingdom instead of it. The Shin Bet sees them as a terror organization for all intents and purposes, which is violently undermining the foundations of the Israeli society.
  • This group is made up of dozens of young people, some of them minors. The older ones are 22 or 23 years old. They come from all parts of the country and have no unique characteristics apart from the fact that they have all left their families and educational institutions and live in the Judea and Samaria hills. They don't have a permanent settlement point. Rather, they move from place to place on a daily basis.   Their operational doctrine can be found in a document authored by Moshe Orbach of Bnei Brak, who belongs to the group that torched the   They have marked five potential explosive points for themselves: Igniting a conflict at the Temple Mount, banishing gentiles (by torching Arab homes), eliminating idol worship (by torching churches and mosques), religious coercion and undermining the government system. They are not talking about armed activity like the Jewish Underground and are not using firearms for now. They create provocations and don't hesitate to kill – a step up from the "price tag" activity, which focused on property.   Their first known operation was in December 2014, when they tried to torch a house in South Mount Hebron. The Shin Bet detained the perpetrators, but they were released under administrative restrictions. In February 2015, they tried to torch a church in Bethlehem, and in July they torched the church at Tabgha. Five were detained, but only two were prosecuted. Moshe Orbach was indicted.
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  • The murder in Duma characterizes the group's ideological and operational perception. It wasn't an act of revenge but one aimed at igniting a conflict between the people, setting the region on fire and bringing down the Zionist regime which is "delaying salvation." In order to fulfill their goal, the group members are willing to sacrifice their lives and have no problem killing. It's a small group which carries out particularly harsh terror attacks, as part of its revolutionary outlook.   There is no rabbinical authority there. They do not accept the rabbinical authority linked to the "price tag" hooligans – like Rabbi Yitzchak Ginzburg. On the other hand, rabbis like Ginzburg disagree with their ideology.
  • The group was located by the Shin Bet, dozens of its members were called in for a deterrence talk, and some of them were subject to movement restrictions and ordered to spend the night at home. Some were even removed from the area. But without clear legal evidence, they were released.   This year alone, the Shin Bet has thwarted at least three terror attacks planned by this group – but only a very small number of indictments have been filed in light of restrictions on the Shin Bet's ability to question civilians.   The cell which carried out the attack at the Bethlehem church was caught, but the evidence obtained so far has made it impossible to file charges. They are working on it: Administrative orders have been issued against the suspects, but the legal proceedings are moving very slowly and there is no longer any deterrence.   On Sunday, the Shin Bet asked the cabinet to allow the implementation of quick and adamant legal proceedings. Five indictments have been filed so far in 2015, and 22 were filed in 2014, most of them for "price tag" activities. But only three suspects have been arrested for arson and sentenced to two-three years in prison. It was the first time the Shin Bet succeeded in arresting "price tag" members, and they mostly have Defense Minister Moshe Ya'alon to thank for that, following his decision to define the activity as an "unauthorized organization," which provided the Shin Bet with intensive tools. On Sunday, the Shin Bet demanded even more tools in order to eradicate this new insanity.
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    Bibi Netanyahu just announced that now Jews who commit acts of terrorism will be subject to administrative detention without trials, which in the past has been a device used only against Arab Palestinians. Now the Israeli press is seeking to justify Netanyahu's action. The measure was announced in the wake of a "price tag" arson of a Pelestinian home in the West Bank, which killed an infant and left the remainder of its family with severe burns over 60-90 per cent of their bodies.  But the blame properly belongs on the racist apartheid government of Israel itself, which has for decades promoted racist attitudes among its citizens. True to form, no arrests have been made in the arson case.
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Obama Visits Jamaica, Urges Caribbean Nations to Break from PetroCaribe | venezuelanaly... - 0 views

  • US President Barack Obama arrived today in Jamaica as part of an ongoing effort to persuade the island and its neighbors to reduce dependency on Venezuela’s bilateral PetroCaribe program.As the first active US president to visit Jamaica in 33 years, the primary goal of Mr. Obama’s trip will be to develop, in coordination with the World Bank, an investment plan in the Caribbean’s energy sector. Vice-president Joe Biden has alleged that PetroCaribe, founded by Hugo Chavez in 2005, is being used as a “tool of coercion” against the region by the South American nation. For almost a decade, Venezuela has shipped fuel to 18 nations in the Caribbean and Central America with favorable terms for payment, such as low-interest loans, while investing in community projects including hospitals, schools, highways, and homeless shelters.
  • Last week, the Bolivarian government, through the Petrocaribe initiative, donated US$16 million to help the government of St. Kitts and Nevis provide for former sugar industry workers.In January, Biden gathered Caribbean heads of state in Washington as part of his Caribbean Energy Security Initiative, which he claims is seeking clean energy solutions for small island governments. However, the focus of the event was less about environmentalism and more about breaking away from Venezuelan trade.“Whether it’s the Ukraine or the Caribbean, no country should be able to use natural resources as a tool of coercion against any other country,” he told the leaders in attendance.Last month, US Secretary of State John Kerry warned of “strategic damage” on Venezuela’s part which could cause “a serious humanitarian crisis in our region.”
  • According to a Miami Herald report published on March 26th, Venezuela has halved subsidized shipments of crude oil to Cuba and other PetroCaribe member nations from 400,000 barrels per day in 2012, to 200,000 barrels per day.The article, which claimed to cite a Barclay’s Bank report, has since been refuted by the Venezuelan government. Venezuelan Foreign Affairs Minister Delcy Rodriguez insisted last week that the information was “not true,” and was being published in a concerted effort to discredit PetroCaribe.
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  • Maintaining that the organization remains “pretty strong” despite sliding oil prices and a contracting economy, Rodriguez said a “war” is being waged against the socialist program, because it “brings solutions to poor people.”
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    It seems the banksters are truly upset with Venezuela's leaders for failure to be in hock to the IMF and for spreading their natural resoices and wealth amongst the poor. 
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Case for war crimes against Israel more likely with Palestine willing to join Internati... - 0 views

  • The possibility of a war crimes investigation into the conduct of Israeli forces in Gaza, until recently unthinkable, has grown after the Palestinians said this week they wanted to become a party to the International Criminal Court.
  • The legal groundwork for such a move was laid in November 2012 when the 193-member United Nations General Assembly overwhelmingly approved the de facto recognition of the sovereign state of Palestine by upgrading the Palestinian Authority's observer status to "non-member state" from "entity". If the Palestinians were to sign the ICC's founding treaty, the Rome Statute, the court would have jurisdiction over crimes committed in the Palestinian territories. With Palestinian authorisation, an ICC investigation could then examine events as far back as July 1, 2002, when the court opened with a mandate to try individuals for war crimes, crimes against humanity and genocide. "If Palestine applies it will be admitted to the ICC," John Dugard, international law professor and a former UN Special Rapporteur for the Palestinian territories, told Reuters. "The UN has spoken and it has recognised the state of Palestine and it is now for the ICC to admit Palestine. I cannot see how that can be resisted."
  • Dugard said the Palestinians could then ask prosecutors to investigate alleged crimes in July and August in Gaza, but also the legality of Israeli West Bank settlements. "The settlements are an ongoing crime and it is quite clear that the settlements constitute a war crime under the Rome Statute and that is what Israel is desperately worried about," Dugan said. Israel says the settlements are legal, as it captured the West Bank from Jordan, rather than a sovereign Palestine, in the 1967 Middle East war.
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  • One Israeli official, who spoke on condition of anonymity because the legal strategy is confidential, said the Israeli government is planning a defense of the Gaza operation and that counter-claims, including against the administration of President Mahmoud Abbas, could follow if the ICC launches a case. "We are talking about terrorism involving officials, security personnel and others, from his administration, and emanating from areas under his control," the official said.
  • ICC membership has been described by diplomats and officials as the Palestinian "nuclear option" because it is the key leverage the Palestinians hold in negotiations. It would also expose the Palestinians themselves to possible prosecution. Nearly a month of fighting in Gaza "left us no choice" but to seek a case against Israel at the ICC, Palestinian Foreign Minister Raid al-Malki said on Tuesday after meeting with prosecutors to discuss joining the court. "An investigation by the ICC is becoming crucial in the absence of a real system of accountability, due to the existence of a pervasive culture of impunity given to Israel and resulting from the lack of action by the international community," he said. Malki said "there is no difficulty for us to show or build the case. Israel is in clear violation of international law."
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Analysis: PA 'balking' at war crimes probe - Middle East - Al Jazeera English - 0 views

  • After a document obtained by Al Jazeera revealed the Palestinian Authority (PA) has stalled the launch of a formal investigation into alleged Israeli war crimes in Gaza, Palestinian legal and human rights experts remain dubious that the PA ever truly intended to join the International Criminal Court (ICC). In a confidential letter obtained exclusively by Al Jazeera's Investigative Unit, the ICC's top prosecutor, Fatou Bensouda, said she "did not receive a positive confirmation" from PA Foreign Minister Riad al-Malki that the request submitted for an international investigation had the Palestinian government's approval. Palestinian officials have, on numerous occasions, threatened to head to the ICC to hold Israel accountable for possible war crimes and crimes against humanity. But their efforts so far, have proved fruitless. In July, a French lawyer filed a complaint with the court on behalf of the Palestinian minister of justice, accusing Israel of carrying out war crimes in the Gaza Strip. This came after a 2009 call for an ICC investigation into Israel's three-week military offensive in Gaza that was later dropped when the prosecutor said Palestine was not a court member. In August, Malki met with ICC officials to discuss the implications of ratifying the Rome Statute, the treaty that established the criminal court. "Everything that has happened...is clear evidence of war crimes committed by Israel, amounting to crimes against humanity," he told reporters in The Hague, referring to the recent 51-day Israeli military offensive on Gaza, which left more than 2,100 Palestinians dead. Six Israeli civilians were killed, along with 66 Israeli soldiers.
  • Two years ago, Palestine became recognised as a non-member observer state at the UN General Assembly. This made it eligible to join the ICC; however, to date, Palestinian officials have not signed the Rome Statute, even though almost 80 percent of Palestinians support going to the court. Senior Fatah official Mohammad Shtayyeh didn't say when the Palestinians would apply to the ICC, but said it would probably happen in another few months. "The indictment against Israel at the ICC and all the accompanying documents are ready," Shtayyeh told Al Jazeera. One of the remaining hurdles, Shtayyeh said, is getting one remaining Palestinian faction - Islamic Jihad - to sign an accession document before the Palestinians can present it. Hamas signed onto the proposal at the behest of the PA in August. "We're not in a situation of setting a deadline or making an ultimatum," he said. "We're following developments in the region and the world, and therefore, we'll wait for answers from the international community. But I believe that by November-December, the picture should be clearer."
  • In response to Al Jazeera's claims, the Palestinian Justice Minister Salim al-Saqqa said that Palestinian President Mahmoud Abbas was serious about going to the ICC and was "awaiting national dialogue" to pursue it. "This issue is our number-one priority," he said. "It is still on the table awaiting a few legal and technical procedures. We have not missed our opportunity to head to the court." So far, the Palestinians have struggled to use the court to pursue their claims, with some attributing this to the PA's use of an ICC investigation as a political bargaining chip. "The PA can go to the ICC in one day," said Shawan Jabarin, the director of Ramallah-based human rights group al-Haq. "Abbas, who has been turned this into a political issue, is balking." Many factors are working against setting off a war crimes investigation at the ICC, not least the international community's apparent opposition to the move. "It is the PA's trump card because the Israelis and the Americans have said it is a red line," said Diana Buttu, a lawyer and former adviser to the Palestine Liberation Organisation (PLO).
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  • "When this red line is crossed, then the US said it won't give money to the PA. That's what we call blackmail. But at what point will Abu Mazen [Abbas] say this is a trump card but we will use it?"
  • During US-mediated peace talks between Israel and the Palestinians, Washington ensured that the PA would freeze all moves to turn to international organisations until April 2014. "The Palestinian Authority has been consistently pressured by the USA, Israel, Canada, the UK and other EU Member States not to take steps to grant the ICC jurisdiction," Amnesty International said. "Such pressure has included threats to withdraw financial assistance on which the Palestinian Authority depends."
  • But when Israel reneged on its pledge to free a total of 104 veteran Palestinian prisoners in four tranches, the PA responded by joining 15 international treaties and conventions. Israel said this spelled the end of their negotiations with the Palestinians, while the US said that the PA's moves negatively affected attempts to engage both parties in talks. "The PA's hesitancy can be attributed to several factors: The need to preserve it as a trump card, and also a fear of the US and some European countries' reaction," Jabarin said. "The problem is the method being used by Abbas; he has subjected the issue to political bargaining and to the whims of negotiations." Another reason the PA may be hesitant to set a war crimes investigation in motion is the ramifications it may have on some Palestinian factions. The ICC would likely look into Hamas and Islamic Jihad's rocket-firing o
  • In the past week, Israel said it would open a criminal investigation into several instances of what it is calling "military misconduct" in the Gaza war. Israel's swift call for a probe appears to be an attempt to pre-empt any independent investigations into allegations that its military committed war crimes in Gaza. "The PA gave the Israelis enough time to come up with a trick to prevent the court from opening any investigation," said Saad Djebbar, a London-based lawyer. Generally, the ICC launches probes in instances where the country involved is unable or unwilling to launch an investigation itself, Djebbar told Al Jazeera. "If the court tries to open an inquiry, the Israelis can claim they have jurisdiction [to do it themselves] because the ICC's jurisdiction is complementary," he explained. "The ICC is legally bound to allow an Israeli [probe] to continue."
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    Which helps explain why, in a recent poll of Palestinians in both Gaza and the West Bank, the Hamas leader outpolled Abbas by something on the order of 70-30 on the question of who Palestinians would vote for as President if elections were held at that time. 
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UNRWA suspends cash aid in Gaza due to lack of fund | Cairo Post - 0 views

  • The cash assistance program in Gaza has been suspended due to lack of fund, the United Nations Relief and Works Agency (UNRWA) announced Tuesday. The program urgently called for raising U.S. $100 million in aid in the first three months of 2015 to 12,000 displaced Palestinians in Gaza, mostly to repair their homes damaged during the latest 51-day war between Palestine and Israel in July and August 2014. “US$ 720 million is required to address this need. To date, UNRWA has received only US$ 135 million in pledges, leaving a shortfall of US$ 585 million,” the UNRWA said in a statement Tuesday. “We are talking about thousands of families who continue to suffer through this cold winter with inadequate shelter. People are literally sleeping amongst the rubble; children have died of hypothermia,” UNRWA Director in Gaza Robert Turner was quoted as saying in the statement.
  • U.S. $ 5.4 billion were pledged at a Cairo-based donor conference on Gaza reconstruction Oct. 12, 2014; however, the program statement noted that none of the announced aid has reached Gaza strip, saying “this is distressing and unacceptable.” “People are desperate and the international community cannot even provide the bare minimum – for example a repaired home in winter – let alone a lifting of the blockade, access to markets or freedom of movement,” Turner continued. UNRWA was established in 1949 to provide more than 5 million registered Palestinian refugees in neighboring countries with aid. In a previous statement, the UNRWA announced that it had spent the “last available dollar on repairs and temporary shelter cash assistance.”
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    Under international law, Israel as the occupier of Palestine and Gaza, bears all financial responsibility for humanitarian aid in Gaza. I'd be all for the U.S. suspending all financial and other forms of aid to Israel until Gaza is repaired, its siege ended, all illegal settlements in the West Bank are removed, and Palestinians driven out of Israel in 1948 (and their heirs) have their property within Israel restored.  And if necessary, sending in the U.S. military to ensure that all happens muy pronto. But I'm not holding my breath until that happens. 
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Is NSA Surveillance Mastermind Keith Alexander Selling US Secrets to Wall Street? | VIC... - 0 views

  • Perhaps you already assume that there's some kind of twisted marriage between Wall Street megabanks and the US global surveillance regime. Why wouldn't there be? But not even a total cynic could have anticipated spymaster Keith Alexander cashing in this hard, this fast. As Bloomberg recently reported, the former National Security Agency chief, who resigned in March at the age of 62, quickly offered his cyber-security expertise at the eye-popping price of $1 million per month to an assortment of shady business lobbies. And now at least one member of Congress is probing this most delightfully dystopian of arrangements, raising the possibility that Alexander will be shamed out of the practice, if nothing else. “Disclosing or misusing classified information for profit is, as Mr. Alexander well knows, a felony. I question how Mr. Alexander can provide any of the services he is offering unless he discloses or misuses classified information, including extremely sensitive sources and methods,” Florida Democratic Rep. Alan Grayson wrote one of the business groups, the Security Industries and Financial Markets Association (SIFMA), which holds it down for Wall Street in Washington. “Without the classified information that he acquired in his former position, he literally would have nothing to offer to you.”
  • In an interview Monday, Grayson was even more strident in his criticism. "Frankly, what the general is doing is beginning to resemble an extortion racket," he told me. "This is a man who basically lied for a living, and he continues to do that." To be clear, what's uniquely outrageous about Alexander, who has apparently lowered his asking price to $600,000, is not that he is a former US official dangling his alleged expertise and the allure of privileged access to government officials before Wall Street. Former Secretary of State Hillary Clinton, who served under Barack Obama and is the odds-on favorite to succeed him, does this all the time, usually at a rate of about $250,000 a pop. (Indeed, one might argue that the very fact she has managed to do so while enjoying a stellar national reputation is what signaled to Alexander he might as well dive headlong through the revolving door.) But the former NSA head presumably knows things about sophisticated intelligence-gathering practices that very, very few people on Earth have been privy to—information that could be useful in the private sector, which has a tendency to collude with the military in ways that made former President and World War II General Dwight Eisenhower very sad.
  • "What could he possibly have that's worth $1 million a month other than classified information?" wonders Melanie Sloan, founder of Citizens for Responsibility and Ethics in Washington (CREW), a good government group. "That's more than former presidents make." Indeed, even former President Bill Clinton, whose corruption since leaving office is by now the stuff of legend, doesn't have the gall to ask for that much per gig. There's a sort of "fuck it!" attitude to what Alexander is doing, seemingly kicking sand in the face of everyone angry at his surveillance regime by getting paid to reflect on the experience of assembling it. More ominously, there's the prospect that Alexander, whether deliberately or otherwise, may have left behind vulnerabilities while running the NSA so as to put himself in prime position to effectively hold the banks hostage now. Certainly, there have been reports suggesting the agency was aware of some vulnerabilities it either could or did not address.   "What is especially troubling is he might actually be worth it," says former North Carolina Democratic Congressman Brad Miller, who worked extensively on financial regulation and Wall Street reform in Congress. "He's obviously not a computer geek. Some of the things that might have seemed paranoid a few years ago now seem more than plausible given what we've already learned the NSA has been doing."
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  • In an email, former New York Times reporter and Goldman Sachs regulatory guru Stephen Labaton—who is currently president of communications and influence powerhouse RLM Finsbury and apparently fielding the General's media inquiries—dismissed Grayson's critique and Miller's concerns. "The letter is ludicrous," he wrote me, before adding about Miller, "The congressman’s kidding, right? Will he [Alexander] next be tied to the Kennedy assassination?" But as Marcy Wheeler points out, given that the former NSA boss has spent the last year hyping the incredible risk of catastrophic cyber-attack, as well as the alleged damage done by Edward Snowden (an assessment his successor does not seem to share), it's fair to ask if his consultancy is essentially a scam. That the victims are, for now, Wall Street bankers—some of the least sympathetic human beings around—is a sweet bit of irony. But it doesn't change the bigger picture: In this age of total surveillance and unchecked financial power, the frontiers of corruption never seem to stop expanding.
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A perfect storm brews in the Middle East - The Washington Post - 0 views

  • Mistrust between the Obama administration and Benjamin Netanyahu has widened even further in recent days because of U.S. suspicion that the Israeli prime minister has authorized leaks of details about the U.S. nuclear talks with Iran.
  • The decision to reduce the exchange of sensitive information about the Iran talks was prompted by concerns that Netanyahu’s office had given Israeli journalists sensitive details of the U.S. position, including a U.S. offer to allow Iran to enrich uranium with 6,500 or more centrifuges as part of a final deal. Obama administration officials believed these reports were misleading because the centrifuge numbers are part of a package that includes the size of the Iranian nuclear stockpile and the type of centrifuges that are allowed to operate. A deal that allowed 500 advanced centrifuges and a large stockpile of enriched uranium might put Iran closer to making a bomb than one that permitted 10,000 older machines and a small stockpile, the administration argues.
  • An initial report Sunday by Israel’s Channel 2 news that the administration had cut all communications with Israel about the Iran talks was denied by White House spokesman Alistair Baskey. Sources here said that Philip Gordon, the Middle East director for President Obama’s National Security Council, would see Israeli national security adviser Yossi Cohen and other senior officials on Monday. The discussion would include Iran policy, but U.S. officials aren’t likely to share the latest information about U.S. strategy in the talks.
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  • Then came the alleged leaks about the nuclear talks. On Jan. 31, the Times of Israel reported that an unnamed senior Israeli official had told Channel 10 TV news that the United States was ready to allow more than 7,000 centrifuges and had “agreed to 80 percent of Iran’s demands.” Channel 2 reported that the U.S. offer was 6,500 centrifuges. U.S. officials believed that Netanyahu’s office was the source of these reports and concluded that they couldn’t be as transparent as before with the Israel leader about the secret talks. Asked for comment, an official in Netanyahu’s office said: “The details of the last round of negotiations are known in Washington, Paris, London, Moscow, Beijing, Berlin and Tehran. It is perplexing that a decision would be made to try to keep those details a secret from Jerusalem when Israel is threatened by Iran with annihilation and its very survival could be threatened by a bad deal.”
  • Iran policy isn’t the only short-circuit between Washington and Jerusalem. The administration also fears that Netanyahu is ignoring a potential new blowup with the Palestinians. U.S. intelligence reports indicate that the Palestinian Authority, which governs the West Bank and has nominal authority now in Gaza, could run out of money as early as next month. If that happened, the United States fears that the civil service and security force in the West Bank could collapse, creating a new crisis for Israel and the region. “This is a dangerous issue,” Palestinian Authority President Mahmoud Abbas warned Friday. “Israel is withholding our money and this means that the ‘State of Palestine’ will face a crisis.” The United States believes Abbas may simply dissolve his government if the money isn’t released.
  • The money crunch stems from Israel’s decision to withhold tax revenue it collects on behalf of the Palestinian Authority. This move was retaliation for the Palestinian decision last fall to pursue legal action against Israel in the International Criminal Court.
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Bankers/Investors Urgently Told Get Money Out of Saudi Arabia and Turkey - 0 views

  • Flash message via the SWIFT Banking Communication System urges Bankers / Investors to immediately remove their capital (cash/stocks) from Turkey and Saudi Arabia.  The message allegedly says war "imminent" -- Turkey and Saudi Arabia to suffer "staggering" losses to Russia once invasion of Syria begins. Message suggests only forty eight hours remain for banks/investors to get assets out safely!
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Brazil's Epic Scandal Takes Down a Banker - Bloomberg Business - 0 views

  • Brazilians have become inured to seeing politicians and businessmen marched off to prison for corruption. But the mug shot of banker André Esteves—unshaven and frowning—that flashed across TV screens in early December was a shock. Part of a cadre of mavericks who got astonishingly rich from Brazil’s transformation into one of the world’s top 10 economies in the 2000s, Esteves helped turn Grupo BTG Pactual into Latin America’s biggest standalone investment bank. Supremely confident, Esteves—who was a billionaire by his mid-30s—liked to quip that the initials in his company’s name stood for “Better than Goldman.”Around dawn on Nov. 25, Esteves’s fortunes soured in an instant. Police showed up at his apartment, which faces Rio de Janeiro’s legendary Ipanema beach, and hauled him away on allegations of obstructing a federal investigation into a massive pay-to-play scheme centered on Brazil’s state-run oil giant, Petrobras. Now Esteves, 47, resides in a cell block with concrete beds and communal toilets at Bangu, a high-security prison in Rio better known for housing drug traffickers and murderers.
  • Having its founder, chief executive officer, and chairman behind bars has pushed BTG Pactual to the brink of insolvency as clients pull their money out. Within days of his arrest, Esteves had relinquished his controlling stake in the firm, and his partners had begun a wholesale selloff of assets. To avert disaster, Brazil’s central bank helped engineer a $1.6 billion rescue line from the country’s privately funded deposit guarantee fund. Still, the bank’s shares have lost half their value since Esteves’s arrest. On Dec. 7, prosecutors formally accused the banker of obstruction of justice. Antônio Carlos de Almeida Castro, Esteves’s lawyer, says his client has done nothing wrong.The metastatic graft scandal that sent Esteves to jail threatens more than the survival of BTG. So many legislators are implicated, Congress has been unable to pass legislation to contain an exploding budget deficit. President Dilma Rousseff has grown so unpopular that lawmakers are maneuvering to impeach her for allegedly cooking the government’s books. Meanwhile, the economy is sliding into what Goldman Sachs calls a full-blown depression.
  • BTG’s collapse won’t cause Brazil’s capital markets to seize up as Lehman Brothers’ failure did in the U.S. in 2008. Yet having one of the country’s most prominent financiers behind bars is a body blow to the confidence of investors at a time when Brazil needs their cash. “It very much gives you the impression that the corruption scheme is so widespread that it induces a kind of counterparty risk,” says Monica de Bolle, a former International Monetary Fund economist. “You enter into transactions with people in Brazil without knowing whether or not they might be implicated in something.” The result: “Nothing gets done. There’s no business,” she says.
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Ex-Wells Execs Hit With $59MM In Fines Over Fake Account Scandal; Stumpf Barred For Lif... - 0 views

  • Nearly four years after Wells Fargo's reputation was terminally crushed by the humiliating fake accounts scandal, the punishment for Warren Buffett's favorite bank and its (mostly former) employees is still being doled out, and moments ago the Office of the Comptroller of the Currency announced $59 million in civil charges and settlements with eight former Wells Fargo senior executives on Thursday, including the payment of a $17.5 million fine by John Stumpf, the bank’s former CEO, who also agreed to a lifetime industry ban. Carrie Tolstedt, who led Wells Fargo’s community bank for a decade, faces a penalty of as much as $25 million.
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