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Feds charge trendy sushi restaurant for serving whale meat - CNN.com - 0 views

  • The misdemeanor charge carries a federal prison sentence of up to a year and a fine of up to $200,000 for the company, said Thom Mrozek, spokesman for the U.S. Attorney's Office. Lawyers for Typhoon could not be reached for comment. But the restaurant told the Los Angeles Times it accepts responsibility and will pay a fine. The investigation began in October when two members of the team that made "The Cove" visited The Hump, officials said. "The Cove," which exposes the annual killing of dolphins at a Japanese fishing village, won the Academy Award for Best Documentary on Sunday. The restaurant, located at the Santa Monica Airport, is known for its exotic fare. Its Web site asks diners to surrender themselves to its chefs for "a culinary adventure ... unlike any that you have previously experienced." Armed with a hidden camera, the two women captured the waitress serving them whale and horse meat and identifying them as such, a federal criminal complaint said. A receipt from the restaurant at the end of the meal identified their selection as "whale" and "horse" with the cost -- $85 -- written next to them. The women snuck pieces of the meat into a napkin and later sent them for examination to a researcher at Oregon State University. He identified the whale sample to be that of sei whale, prosecutors said.
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    Federal authorities have charged a trendy Santa Monica sushi restaurant with serving whale meat -- an investigation that was spurred by the team behind the Oscar-winning documentary, "The Cove." Prosecutors charged Typhoon Restaurant Inc., the parent company of The Hump, and one of its chefs -- Kiyoshiro Yamamoto, 45 -- with the illegal sale of a marine mammal product for an unauthorized purpose. While it is considered a delicacy in Japan and some other countries, meat from whale -- an endangered species -- is illegal to consume in the United States.
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Pink Floyd wins battle with EMI over downloads - Mar. 11, 2010 - 0 views

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    Pink Floyd won a legal battle Thursday against EMI that prevents the band's long-time record label from selling individual songs online. Sir Andrew Morritt, chancellor of Britain's High Court, ruled that Pink Floyd's contract forbids EMI from breaking up the band's albums without its permission, according to a spokeswoman for the British judicial system. EMI had argued that the stipulation only applied to physical albums, not online sales.
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Huge 'botnet' amputated, but criminals reconnect - washingtonpost.com - 0 views

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    "The sudden takedown of an Internet provider thought to be helping spread one of the most promiscuous pieces of malicious software out there appears to have cut off criminals from potentially millions of personal computers under their control. But the victory was short-lived. Less than a day after a service known as "AS Troyak" was unplugged from the Internet, security researchers said Wednesday it apparently had found a way to get back online, and criminals were reconnecting with their unmoored machines. "
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Leaked documents: UK record industry wrote web-censorship amendment - Boing Boing - 0 views

  • Parliamentarians need to recognize that copyright touches everyone and every technology in the digital age. It is no longer a question of inter-business regulation and deals. Getting copyright wrong has the potential to mess up our freedom of speech, prevent us from getting the benefits of new technologies, and damage society in other very profound ways. It is therefore deeply inappropriate for such fundamental proposals to have been introduced by both the government or the opposition parties at the behest of one side of the debate. That applies just as much to disconnection, which Mandelson introduced in the summer at the last minute under pressure again from the BPI and other rights holders.
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    Last week, the UK LibDem party was thrown into scandal when two of its Lords proposed an amendment to the Digital Economy Bill that would allow for national web-censorship, particularly aimed at "web-lockers" like Google Docs and YouSendIt. Now a leaked document from the British Phonographic Institute suggests that the amendment was basically written by the record industry lobby and entered into law on their behalf by representatives of the "party of liberty." This weekend, LibDem members who attend the national convention in Birmingham will have the chance to vote on an emergency measure affirming the party's commitment to an open and just Internet, repudiating this disastrous measure. If you (or someone you know) is attending the convention, please support the "Save the Net" emergency measure and help rehabilitate the party's reputation on fundamental freedoms in the information society.
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    Proving once again that special interests can "buy" the "support" of politicians of any stripe! And they can do so regardless of the "best interests" of the "majority of the people", who those politicians are supposedly morally (by honor) and legally (by oath) bound to represent!
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Bankers winning financial reform battle - Answer Desk- msnbc.com - 0 views

  • Proponents of comprehensive regulatory reform hope for sweeping measures to protect consumers from predatory lending, rein in high-stakes Wall Street trading in arcane derivatives, boost capital requirements for banks that want to bet big with depositors' money and spread some regulatory sunshine on the dark pools of the “shadow banking system” that caught regulators flat-footed when the market spiraled into the abyss in the fall of 2008. “We cannot afford to let the status quo continue,” Sheila Bair, head of the Federal Deposit Insurance Corp., told a meeting of business economists in Washington. The final law is still in doubt. Sen. Christopher Dodd, D-Conn., has pressed for reform during a year of intensely partisan bickering. On Friday, Dodd — a lame duck who announced his retirement after disclosures that he accepted favorable terms from subprime lender Countrywide Financial — claimed that the Senate Banking Committee he chairs was “days away” from wrapping up a bill. Any resolution faces a major political hurdle that has drawn the most public attention: a proposal to create a new agency to protect consumers from predatory lending and other abusive financial practices. While the "systemic risks" to the financial system may represent a bigger threat in dollar terms, voters might be more focused on the consumer impact.Dodd said that’s not hard to understand.“The subject matter of derivatives and swaps and the issue of systemic risk and too-big-to- fail seem somewhat removed from the general public,” he told CNBC after the Senate compromise was reached. “Watching my credit card go to 32 percent rates and huge fees, watching prepayment penalties on mortgages, these are things that millions of people understand.”
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    As Congress this week inches toward a new set of rules to avert another global financial collapse, it is focused on two conflicting goals: reforming the banking system to protect consumers while still giving lenders the freedom to take risks. So far the score looks like: Bankers 1, Consumers 0. More than a year after a wave of risky mortgage bets brought Wall Street to its knees, banks and other financial institutions are still playing by the same rules that got them into the mess.
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Big majority wants Wall Street regulation - U.S. business- msnbc.com - 0 views

  • A Harris release on the February 16-21 telephone survey of 1,010 adults did not specify how financial regulation should be applied but said three-quarters of Americans believe Wall Street companies should pay bonuses only while in the black.Story continues below ↓advertisement | your ad heredap('&PG=NBCMSB&AP=1089','300','250');Harris said the U.S. public does see value in Wall Street itself: nearly 60 percent say the financial sector is an essential benefit to the United States.But a slightly larger majority disagrees that what is good for Wall Street is good for the country, while about two-thirds harbor strong negative views about the people who work there.By a margin of 66 percent to 29 percent, Americans agree that "most people on Wall Street would be willing to break the law if they believed they could make a lot of money and get away with it," pollsters found.Sixty-five percent say most successful people on Wall Street do not deserve the kind of money they make.
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    An overwhelming majority of Americans wants Wall Street subjected to tougher regulation in the aftermath of the bank bailout and the bonus scandals that have rocked the U.S. financial sector, according to a Harris poll released on Thursday. The findings suggest that 82 percent of Americans want the government to clamp down more strongly on Wall Street excesses, with a particular emphasis on bonus schemes that have rewarded employees at loss-making companies such as American International Group.
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Gary Gensler's Conversion to Financial Reformer - NYTimes.com - 0 views

  • Today, he is emerging as one of the nation’s archreformers, pushing to impose some of the most stringent new financial regulations in history. And as the head of the Commodity Futures Trading Commission, the leading contender to oversee the complex derivatives contracts that played a central role in the financial crisis and, in turn, the Great Recession, he is in a position to influence the outcome. It may seem an unlikely conversion, but it is one that has won the approval of Brooksley E. Born, of all people, a former outspoken head of the commission. She sounded alarms more than a decade ago about the dangers hiding in the poorly understood derivatives market and was silenced by the same Washington power brokers that counted Mr. Gensler as a member. Mr. Gensler opposed Ms. Born, according to people who worked at the commission in the 1990s, and in 2000 played a significant role in shepherding through Congress deregulation measures that led to explosive growth of the over-the-counter derivatives market. That was then. These days, Ms. Born is convinced of Mr. Gensler’s reformist zeal, as he takes on Wall Street in what is becoming one of the fiercest battles over regulation in the postcrisis era. “I think he is doing very well,” she said in an interview. “He certainly seems to be committed to robust oversight of derivatives and limiting excessive speculation and leverage.” The proposals championed by Mr. Gensler, if adopted by Congress, would substantially alter what is now a largely unregulated market in over-the-counter derivatives, financial instruments used by companies and investors to protect themselves and bet on moves in variables, like interest rates or currencies, and to speculate. The proposals include forcing the big banks that sell derivatives to conduct their trades in the open on public exchanges and clear them through central clearinghouses, so that any investor can see the prices that dealers charge their customers. Today, those transactions are bilateral and private.
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    For 18 years, Gary G. Gensler worked on Wall Street, striking merger deals at the venerable Goldman Sachs. Then in the late 1990s, he moved to the Treasury Department, joining a Washington establishment that celebrated the power of markets and fought off regulation at almost every turn.
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    Maybe he has "SEEN THE LIGHT" (had an almost "religious" conversion to the benefits of regulation). Then again, maybe his old employer (Goldman Sachs) - having become the "biggest and baddest" in the regulation-less free-for-all (including getting bailout funds through AIG for credit-default-swap "insurance" on derivatives) - wants to "cement" their position with regulation preventing any other party from doing what they did (and he is willing to help them in that regard)!?
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    Maybe he has "SEEN THE LIGHT" (had an almost "religious" conversion to the benefits of regulation). Then again, maybe his old employer (Goldman Sachs) - having become the "biggest and baddest" in the regulation-less free-for-all (including getting bailout funds through AIG for credit-default-swap "insurance" on derivatives) - wants to "cement" their position with regulation preventing any other party from doing what they did (and he is willing to help them in that regard)!?
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EFF: Apple "acting as a jealous and arbitrary feudal lord" | Hardware 2.0 | ZDNet.com - 0 views

  • Fred von Lohmann, EFF’s senior staff attorney, has been through the agreement and calls it “very one-sided contract, favoring Apple at every turn.” Some of the troubling aspects of the agreement that has come under von Lohmann’s scrutiny are: Ban on Public Statements App Store Only Kill Your App Any Time We Never Owe You More than Fifty Bucks How can Apple get away with imposing such heavy-handed restrictions on developers? Because it is the sole gateway to the more than 40 million iPhones that have been sold. In other words, it’s only because Apple still “owns” the customer, long after each iPhone (and soon, iPad) is sold, that it is able to push these contractual terms on the entire universe of software developers for the platform. It’s all down to competition, or the lack of it: In short, no competition among app stores means no competition for the license terms that apply to iPhone developers. von Lohmann then goes on to accuse Apple of acting like a “feudal lord” rather than a “leader.” If Apple wants to be a real leader, it should be fostering innovation and competition, rather than acting as a jealous and arbitrary feudal lord. Developers should demand better terms and customers who love their iPhones should back them.
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    The Electronic Frontier Foundation (EFF) has criticized Apple over its iPhone developer's contract, branding the company "as a jealous and arbitrary feudal lord."
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Firing the $70 billion man - Mar. 10, 2010 - 0 views

  • Not only did TCW oust Gundlach, but the firm also announced that it was acquiring an entire company -- crosstown rival Metropolitan West Asset Management -- to replace him. That in turn set off a wave of defections from TCW, as 45 of the 60 staffers who had worked for Gundlach streamed out the door to join him at a new firm that he had opened within days of leaving.Then things really turned nasty. TCW filed an incendiary lawsuit in January accusing Gundlach of conspiring with confederates at TCW to steal proprietary information as part of a long-running plot to form their own competing firm. The suit added a salacious twist of the knife, perfectly calibrated for maximum media interest -- Gundlach had allegedly stashed a trove of illicit material in his office: 70 pornographic magazines and videos, 12 "sexual devices," and several bags of marijuana.Gundlach has countered with his own lawsuit. He charges TCW and its owner, the French bank Société Générale, with pushing him out so that they can get their hands on his lucrative fees. In addition to his mutual funds, Gundlach had managed what were effectively two hedge funds for TCW, each of which commanded the amped-up fees typical of those vehicles. Gundlach calculates that he would have personally reaped $600 million to $1.2 billion over the next few years.
  • TCW seemed content with the arrangement and did little to tie its managers' fates to the company as a whole. Few of them, for example, received significant stakes in TCW. That bred frustration in multiple generations of standout performers, who viewed corporate executives (some of whom did receive ownership shares) as getting rich off their toil.So it went for Gundlach, a bona fide investing star who, by the end, oversaw about 70% of TCW's assets, some $70 billion, putting him in charge of one of the biggest pots of money in the country. Gundlach didn't just generate steady returns; he avoided the blowup of the century. A specialist in mortgage-backed securities, he publicly warned in 2007 that "the subprime mortgage market is a total, unmitigated disaster, and it's going to get worse." He invested accordingly, not only delivering positive returns in the blighted year of 2008 but also earning himself a growing role as a media sage. His ego grew along with it.There are few people like Jeffrey Gundlach in the mutual fund world -- or in any world. A former rock-and-roll drummer, Gundlach, 50, is a math whiz (but not a quant). He views everything in binary terms: Either you perform to his standards or you don't, and he won't hesitate to let you know which category you fall into. Nor is he shy in articulating his view of himself. "I was by far the biggest revenue generator at TCW, by far the biggest performer," he says. "I created $4 billion in value for clients in '09. If telling you that is self-promotion, so be it. It's just a fact."
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    On November 19, 2009 Jeffrey Gundlach was named a finalist for Morningstar's award for bond fund manager of the decade. For Gundlach, the nomination recognized 10 years of stellar results, exceeding even the returns of the legendary king of bonds, Bill Gross. Two weeks later Gundlach was confronted, fired, and then pursued on foot out of a Los Angeles skyscraper by two lawyers working for TCW, the money management firm with $110 billion in assets where Gundlach had worked for 24 years.
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BBC News - Irish arrests over 'plot to kill Swedish cartoonist' - 0 views

  • The Vilks controversy arose in 2007, when his entry in an arts project was published by the newspaper. It pictured a dog with the head of a bearded man in a turban. Several Muslim countries protested against the picture. At the time, Swedish officials expressed regret at any hurt caused to Muslims' feelings, but said the government could not prevent the publication of such drawings because of media freedom rules. The case came about a year and a half after a series of depictions of Muhammad in Denmark's Jyllands-Posten paper caused an uproar in early 2006. Those cartoons sparked protests from Muslims around the world. Dozens of people were killed in riots. Muslims regard any image of the Prophet Muhammad as blasphemy. In January, one of the cartoonists whose drawing appeared in Jyllands-Posten, the Dane Kurt Westergaard, was targeted in his own home, allegedly by a Somali radical Muslim with an axe. Mr Westergaard, who escaped unharmed, had depicted the Prophet Muhammad with a bomb in his turban. Mr Vilks told The Associated Press news agency that the telephone threats in January had come from "a Swedish-speaking Somali. He reminded me about what had happened to Westergaard and threatened with a follow-up and that 'now it's your turn'."
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    Seven people have been arrested in the Irish Republic over an alleged plot to kill a Swedish cartoonist for depicting the Prophet Muhammad, police say. The four men and three women are all Muslim immigrants, according to media reports, though a police statement did not confirm this. Cartoonist Lars Vilks had depicted the Prophet Muhammad with the body of a dog in the Nerikes Allehanda newspaper. Islamic militants put a $100,000 (£67,000) bounty on his head. Mr Vilks was quoted as saying he was unfazed by the arrests, which he said he thought could be linked to two death threats he had received by telephone in January.
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Hold vendors liable for buggy software, group says - 0 views

  • "The only way programming errors can be eradicated is by making software development organizations legally liable for the errors," he said. SANS and Mitre, a Bedford, Mass.-based government contractor, also released their second annual list of the top 25 security errors made by programmers. The authors said those errors have been at the root of almost every major type of cyberattack, including the recent hacks of Google and numerous utilities and government agencies. According to the list, the most common mistakes continue to involve SQL injection errors, cross-site scripting flaws and buffer overflow vulnerabilities. All three have been well-known problems for
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    A coalition of security experts from more than 30 organizations is urging enterprises to exert more pressure on software vendors to ensure that they use secure code development practices. The group, led by the SANS Institute and Mitre Corp., offered enterprises recent hacks of Google draft contract language that would require vendors to adhere to a strict set of security standards for software development. In essence, the terms would make vendors liable for software defects that lead to security breaches. "Nearly every attack is enabled by [programming] mistakes that provide a handhold for attackers," said Alan Paller, director of research at SANS, a security training and certification group.
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    Of course, a more general way to address this and other "business" generated problems / abuses (like expensive required "arbitration" by companies owned and in bed with the companies requiring the arbitration!), is to FORBID contract elements that effectively strip any party of certain "rights" (like the right to sue for defectives; the right to freedom of speech; the right to warranty protections; the right to hold either party to public or published promises / representations, etc.). Basically, by making LYING and DECEIT and NEGLIGENCE liability and culpability unrestricted. Or will we hear / be told that being honest and producing a quality product is "anti-business"? What!? Is this like, if I can't lie and cheat being in business isn't worth it!? If that is true, then those parties and businesses could just as well "go away"! Just as "conservatives" say other criminals like that should. One may have argued that the software industry would never have "gotten off the ground" (at least, as fast as it did) if such strict liability had been enforced (as say, was eventually and is more often applied to physical building and their defects / collapses). That is, that the EULAs and contracts typically accompanying software ("not represented as fit for any purpose" more or less!) had been restricted. On the other hand, we might have gotten software somewhat slower but BETTER - NOT being associated with or causing the BILLIONS of dollars in losses due to bugs, security holes, etc. Others will rail that this will merely "make lawyers richer". So what if it will? As long as government isn't primarily "on the side" of the majority of the people (you know, like a "democracy" should be), then being able to get a individual "hired gun" is one of the only ways for the "little guy" to effectively defend themselves from corporate criminals and other "special interest" elites.
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Paper prevails over electronic documents - 0 views

  • "Despite the fact that the legal admissibility of scanned paper documents has been established for nearly 20 years and is nailed down in legislation and standards around the world, there is still this suspicion among users that they may need to produce the original paper copy at some stage," Mancini said. The survey also found that many documents are "born digital," then printed out to be signed and later scanned into document systems.
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    Office employees are loath to give up the vast amount of paper stored in their filing cabinets, much to the chagrin of companies that sell scanners and electronic document management systems. A recent survey by AIIM, an industry association representing vendors of such products, found that 62% of important documents are still archived in paper form. Even when documents are sent off to be scanned for archiving, 25% are photocopied beforehand "just in case," the survey found.
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    And no wonder. We know that "quality" paper will last for hundreds of years through a wide variety of conditions. Even "cheap" and/or abused paper can still be marginally useful (or have information from it recovered with extreme means). Generally NOT so with electronic media. Remember NASA's sad loss of terabytes of space data stored on tape? And then there is the real (as little as 2 years) verses the touted (20 to 100 years) lifetime of optical disks of various sorts. From http://www.archives.gov/records-mgmt/initiatives/temp-opmedia-faq.html - CD/DVD experiential life expectancy is 2 to 5 years even though published life expectancies are often cited as 10 years, 25 years, or longer. However, a variety of factors discussed in the sources cited in FAQ 15, below, may result in a much shorter life span for CDs/DVDs. Life expectancies are statistically based; any specific medium may experience a critical failure before its life expectancy is reached. Additionally, the quality of your storage environment may increase or decrease the life expectancy of the media. We recommend testing your media at least every two years to assure your records are still readable.
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Mini-cyclone, record floods hit Australia - Yahoo! News - 0 views

  • In the city centre the National Gallery of Victoria suffered flooding, while the Docklands Stadium was among those buildings damaged during the violent storm, which washed out horse races. Bureau of Meteorology forecaster Wasyl Drosdowsky said the hail that hit in one suburban area was up to 10 centimetres (four inches) in diameter. "(It was) tennis ball size roughly," he said. "As far as we can tell, that's close to the biggest hail we've seen in Melbourne." As the city readied for further violent storms Sunday, once-in-a-century floods were peaking in the state of Queensland in the country's northeast, parts of which have been in drought for almost a decade. Townships in the state's cotton-growing south were cut off by rising flood waters and in St George the Balonne River reached 13.5 metres (44 feet), its highest level since records began in 1890. Queensland Premier Anna Bligh said the cost of the flooding would be in the hundreds of millions of dollars, as there had been major damage to highways and rail lines had been washed away. "This is a massive water event which has smashed all the records known here in the southwest," she told reporters Sunday as she toured St George.
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    Melbourne was bracing itself Sunday for further storms after a mini-cyclone ripped through Australia's second largest city, bringing with it hail stones the size of tennis balls. The storm dumped heavy rain across the southern state of Victoria, and smashed into the regional capital with winds of up to 100 kilometres (62 miles) an hour, cutting power to 100,000 homes. Some 26 millimetres (one inch) of rain fell on Melbourne within an hour while other areas recorded up to 70 millimetres during the Saturday storm.
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    Droughts, fires, severe rains - extreme weather in wild swings with records on all ends is a primary prediction of global warming.
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Woman charged in breast milk assault on jailer - Yahoo! News - 0 views

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    "A woman in jail for public intoxication was accused of assaulting a jailer by squirting breast milk at her. WYMT-TV reported that a 31-year-old woman was arrested Thursday on a misdemeanor charge of public intoxication. But as she was changing into an inmate uniform, she squirted breast milk into the face of a female deputy who was with her. The woman now faces a felony charge of third degree assault on a police officer. Her bond was set at $10,000."
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Hollywood billboards taken down amid legal battle - Yahoo! News - 0 views

  • The ads for Asics athletic gear that hung horizontally across several storefronts near the Kodak Theater where the Oscars will be held Sunday were all removed by Saturday. Three of the four people charged have posted $100,000 bail each. City law bans the installation of supergraphics, vinyl images draped over buildings. Last week in the most severe step taken in the ongoing battle over the banners, Los Angeles businessman Kayvan Setareh was jailed on $1 million bail for hanging an enormous movie ad on a Hollywood Boulevard building he owns near the Kodak Theatre.
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    Five giant billboards have been removed from buildings in Hollywood near the site of the Academy Awards after Los Angeles prosecutors charged four people and four companies with hanging the so-called supergraphics illegally.
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Switzerland Keeping the Secrets of Alleged Tax Evaders - Yahoo! News - 0 views

  • Pick a dictator, almost any dictator - Cuba's Fulgencio Batista, the Philippines' Ferdinand Marcos, Haiti's Papa and Baby Doc Duvalier, the Shah of Iran, Central African Republic Emperor Jean-BÉdel Bokassa - and they all have this in common: they allegedly stashed their loot in secret, numbered accounts in Swiss banks, safely guarded by the so-called Gnomes of Zurich. This association - of bank secrecy and crime - has been fed into the public's imagination by dozens of books and movies. It's a reputation that rankles the Swiss, who have a more benevolent view of their commitment to privacy - one that happens to extend to tax privacy. Don't ask, because we won't tell. But the dramatic federal investigation of Switzerland's UBS has blown the lid off bank secrecy - and revealed how Swiss banks abet tax evasion on a far more widespread, if more banal, level. Over the past two decades, these secret banking services have been peddled progressively downmarket - first to the lesser-known fabulously wealthy, then to just the wealthy; more recently, private bankers have been tripping over themselves soliciting business from doctors, lawyers and other folks who are what the biz generally calls "high net worth" individuals. "The IRS has been concerned for decades that a combination of a global economy, the Internet, offshore banking, was really going to take offshore tax evasion from the old so-called 'gentlemen's sport' to tax evasion for the masses," says Mark Matthews, a former deputy IRS commissioner and now a tax attorney with Morgan, Lewis & Bockius LLP.
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    The federal investigation into UBS, which led to a $780 million fine and an agreement to turn over the names of more than 4,450 suspected tax cheats, is now in tatters after Swiss courts ruled against the executive-branch deal. To get around it, a special law has been proposed to accomplish the handoff, but that may not get anywhere in the legislature either. One outcome is already known: tax evasion had become a key service of the Swiss economy, not some isolated event. "They have been outed completely because a very large chunk of their business has been shown to include people cheating on taxes," says Jack Blum, a tax-haven expert. Being "reasonably conservative," he estimates 30% of Swiss banking is related to tax evasion, a figure that jibes with recently released bank data. These revelations come as the financial meltdown has punched a huge hole in projected revenues for governments, which are suddenly a whole lot less tolerant of tax cheats. That's particularly true in Germany, whose wealthy account for a significant portion (at least 10%) of the $1.8 trillion in Swiss banking assets. That translates into hundreds of millions in lost revenue and is the reason the German Finance Minister recently thundered, "There's no future for bank secrecy. It's finished. Its time has run out." The Swiss are not going to be so easily convinced. The Swiss government has already warned that it will not cooperate with German authorities if they go ahead with plans to purchase purloined data about Germans with Swiss bank accounts.
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In Past Decade, American Funds Created Most Wealth - Yahoo! News - 0 views

  • Morningstar determined that Janus and Putnam were the two largest "wealth destroyers" during the decade, losing $58 billion and $46 billion, respectively. "Janus and Putnam rode the growth wave more than anyone else," Kinnel says. "They had some very aggressive funds that put up big numbers that got huge inflows." After the tech bubble burst, the funds that were most heavily invested in these types of holdings experienced huge sell-offs, which made it difficult for these funds to attract inflows through the remainder of the decade. According to Morningstar, American Funds created about $191 million in wealth for investors during the decade, followed by Vanguard and Fidelity. Since American Funds generally employs a more value-oriented strategy, the firm was largely able to avert the first bear market of the decade. "The 2000 to 2002 bear market was all growth and tech, and American barely touched that, whereas they had lots of value, dividend payers, and bonds, which did very well," Kinnel says. Recently, the tables have turned for American. In 2009, it lost the most of any fund family (more than $25 billion). No fund family, including American, was able to avoid the bear market of 2008. The same strategy that allowed American to bypass most of the first bear market failed because many well-known dividend-paying companies, like big financial firms, experienced huge losses.
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    In a decade with two bear markets and lackluster returns for many investors, American Funds created the most wealth for investors, while Janus destroyed the most wealth, according to a survey released by Morningstar. For the survey, Morningstar looked at the 50 largest mutual fund families and their total net assets at the end of 1999. Then the fund tracker subtracted each fund company's total cash flows over the decade and deducted their total net assets at the end of 2009. Numbers were calculated in dollar terms so that any funds that were liquidated during the decade would also be included.
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    Get this! Mutual funds, where most American's have their 401Ks, IRAs, and retirement savings, performed pitifully in the "great economy" of the 2000's (brought to you by Republican deregulationists starting with Ronald Reagan). The "best" made $191 million (but lost $25 billion in 2009!), the worst lost around $50 billion! What a great way to transfer all that hard earned savings, mostly by the "little guy", from them to the Wall Street gamblers. Another socialistic Republican "redistribution of wealth" of the corporate criminal rich, by the corporate criminal rich, and for the corporate criminal rich.
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Lawrence Lessig: Systemic Denial - 0 views

  • So in coming to this meeting of some of the very best in the field -- from Elizabeth Warren to George Soros -- I was keen to hear just what the strategy was to restore us to some sort of financial sanity. How could we avoid it again? Yet through the course of the morning, I was struck by two very different and very depressing points. The first is that things are actually much worse than anyone ever talks about. The pivot points of our financial system -- the infrastructure that lets free markets produce real wealth -- have become profoundly corrupted. Balance sheets are "fictions," as Professor Frank Partnoy put it. Trillions of dollars in liability hide behind these fictions. And as expert after expert demonstrated, practically every one of the design flaws that led to the collapse of the past few years remains essentially unchanged within our financial system still. That bubble burst, but we can already see the soaring profits of the same firms that sucked billions in taxpayer funds. The cycle has started again. But the second point was even worse. Expert after expert spoke as if the problems we faced were simple math errors. As if regulators had just miscalculated, like a pilot who accidentally overshoots the run way, or an engineer who mis-estimates the weight of cargo on a plane. And so, because these were mere errors, people spoke as if these errors could be corrected by a bunch of good ideas. The morning was filled with good ideas. An angry earnestness was the tone of the day.
  • There were exceptions. The increasingly prominent folk-hero for the middle class, Elizabeth Warren, tied the endless list of problems to the endless power of "the banking lobby." But that framing was rare. Again and again, we were led back to a frame of bad policies that smart souls could correct. At least if "the people" could be educated enough to demand that politicians do something sensible. This is a profound denial. The gambling on Wall Street was not caused by the equivalent of errors in arithmetic. It was caused by a corruption of the system by which we regulate those markets. No true theorist of free markets -- and certainly none of the heroes of even the libertarian right -- believe that infrastructure markets like financial systems can be left free of any regulation, including the regulation of rules against fraud. Yet that ignorant anarchy was the precise rule that governed a large part of our financial system. And not by accident: An enormous amount of political influence was brought to bear on the regulators of these core institutions of a free market to get them to turn a blind eye to Wall Street's "innovations." People who should have known better yielded to this political pressure. Smart people did stupid things because "the politics" of doing right was impossible. Why? Why was their no political return from sensible policy? The answer is so obvious that one feels stupid to even remark it. Politicians are addicts. Their dependency is campaign cash. And in their obsessive search for campaign funds, they let these funders convince them that for the first time in capitalism's history, markets didn't need the basic array of trust-producing regulation. They believed this insanity because it made it easier for them -- in good faith -- to accept the money and steer financial policy over the cliff. Not a single presentation the whole morning focused this part of the problem. There wasn't even speculation about how we could build an alternative to this campaign funding system of pathological dependency, so that policy makers could afford to hear sense rather than obsessively seek campaign dollars. The assembled experts were even willing to brainstorm about how to educate ordinary Americans about the intricacies of financial regulation. But the idea of changing the pathological economy of influence that governs how Washington governs wasn't even a hint. We need to admit our (democracy's) problem. We need to get beyond this stage of denial. We need to recognize that until we release our leaders from a system that forces them to ignore good sense when there is an opportunity for large campaign cash, we won't have policy that makes sense. Wall Street continues unchanged because the Congress that would change it is already shuttling to Wall Street fundraisers. Both parties are already pandering to this power, so they can find the fix to fund the next cycle of campaigns. Throughout the morning, expert after expert celebrated the brilliance in Franklin Roosevelt's response to the Nation's last truly great financial collapse. They yearned for a modern version of his system of regulation. But we won't get to Franklin Roosevelt's brilliance till we accept Teddy Roosevelt's insight -- that privately funded public elections tend inevitably towards this kind of corruption. And until we solve that (eminently solvable) problem, we won't make any progress in making America's finances safe again.
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    Everyone recognizes that our nation is in a financial mess. Too few see that this mess is not simply the ordinary downs of a regular business cycle. The American financial system walked the American economy off a cliff. Large players took catastrophic risk. They were allowed to take this risk because of a series of fundamental regulatory mistakes; they were encouraged to take it by the implicit, sometimes explicit promise, that failure would be bailed out. The gamble was obvious and it worked. The suckers were us. They got the upside. We got the bill.
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Vatican Hit By Gay Sex Scandal - 0 views

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    The Vatican has been thrown into chaos by reports that one of the Pope's ceremonial ushers, as well as a member of the elite Vatican choir, were involved in a homosexual prostitution ring. The allegations came to light after Italian newspapers published transcripts of phone calls recorded by police, who had been conducting an unrelated corruption investigation.
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Unintended Acceleration Not Limited To Toyotas : NPR - 0 views

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    The dangerous problem of cars accelerating without a driver's input has put Toyota in the headlines - and brought the giant carmaker's executives to congressional hearings. But unintended acceleration has been a problem across the auto industry, according to an NPR analysis of consumer complaints to federal regulators. The NPR News investigation finds that other automakers have had high rates of complaints in some model years, including Volkswagen, Volvo and Honda - in some cases resolving the apparent problems through evolving technology and recalls. The analysis covers about 15,000 complaints filed over the past decade, covering cars back to the 1990 model year. The complaints were filed with the National Highway Transportation Safety Administration, which regulates auto safety.
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