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Javier E

5 Big Banks Expected to Plead Guilty to Felony Charges, but Punishments May Be Tempered... - 0 views

  • For most people, pleading guilty to a felony means they will very likely land in prison, lose their job and forfeit their right to vote.
  • The Justice Department negotiations coincide with the banks’ separate efforts to persuade the S.E.C. to issue waivers from automatic bans that occur when a company pleads guilty. If the waivers are not granted, a decision that the Justice Department does not control, the banks could face significant consequences.
  • Most if not all of the pleas are expected to come from the banks’ holding companies, the people said — a first for Wall Street giants that until now have had only subsidiaries or their biggest banking units plead guilty.
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  • The Justice Department is also preparing to resolve accusations of foreign currency misconduct at UBS. As part of that deal, prosecutors are taking the rare step of tearing up a 2012 nonprosecution agreement with the bank over the manipulation of benchmark interest rates, the people said, citing the bank’s foreign currency misconduct as a violation of the earlier agreement.
  • The guilty pleas, scarlet letters affixed to banks of this size and significance, represent another prosecutorial milestone in a broader effort to crack down on financial misdeeds. Yet as much as prosecutors want to punish banks for misdeeds, they are also mindful that too harsh a penalty could imperil banks that are at the heart of the global economy, a balancing act that could produce pleas that are more symbolic than sweeping.
  • While the S.E.C.’s five commissioners have not yet voted on the requests for waivers, which would allow the banks to conduct business as usual despite being felons, the people briefed on the matter expected a majority of commissioners to grant them.
  • In reality, those accommodations render the plea deals, at least in part, an exercise in stagecraft. And while banks might prefer a deferred-prosecution agreement that suspends charges in exchange for fines and other concessions — or a nonprosecution deal like the one that UBS is on the verge of losing — the reputational blow of being a felon does not spell disaster.
  • The action against UBS underscores the threats that Justice Department officials issued in recent months about voiding past deals in the event of new misdeeds, a central tactic in a plan to address the cycle of corporate recidivism. Leslie Caldwell, the head of the Justice Department’s criminal division, recently remarked that she “will not hesitate to tear up a D.P.A. or N.P.A. and file criminal charges where such action is appropriate.”
  • But when five of the world’s biggest banks plead guilty to an array of antitrust and fraud charges as soon as next week, life will go on, probably without much of a hiccup.
  • For example, some banks may be seeking waivers to a ban on overseeing mutual funds, one of the people said. They are also requesting waivers to ensure they do not lose their special status as “well-known seasoned issuers,” which allows them to fast-track securities offerings. For some of the banks, there is also a concern that they will lose their “safe harbor” status for making forward-looking statements in securities documents.
  • it seemed probable that a majority of the S.E.C.’s commissioners would approve most of the waivers, which can be granted for a cause like the public good. Still, the agency’s two Democratic commissioners — Kara M. Stein and Luis A. Aguilar, who have denounced the S.E.C.’s use of waivers — might be more likely to balk.
  • Senator Elizabeth Warren, Democrat of Massachusetts, and other liberal politicians have criticized prosecutors for treating Wall Street with kid gloves. Banks and their lawyers, however, complain about huge penalties and guilty pleas.
  • lingering in the background is the case of Arthur Andersen, an accounting giant that imploded after being convicted in 2002 of criminal charges related to its work for Enron. After the firm’s collapse, and the later reversal of its conviction, prosecutors began to shift from indictments and guilty pleas to deferred-prosecution agreements. And in 2008, the Justice Department updated guidelines for prosecuting corporations, which have long included a requirement that prosecutors weigh collateral consequences like harm to shareholders and innocent employees.
  • “The collateral consequences consideration is designed to address the risk that a particular criminal charge might inflict disproportionate harm to shareholders, pension holders and employees who are not even alleged to be culpable or to have profited potentially from wrongdoing,” said Mark Filip, the Justice Department official who wrote the 2008 memo. “Arthur Andersen was ultimately never convicted of anything, but the mere act of indicting it destroyed one of the cornerstones of the Midwest’s economy.”
  • After years of deferred-prosecution agreements, the pendulum swung back in favor of guilty pleas in 2012
  • In pursuing cases last year against Credit Suisse and BNP Paribas, prosecutors confronted the popular belief that banks had grown so important to the economy that they could not be charged
  • Yet after prosecutors announced the deals, the banks’ chief executives promptly assured investors that the effect would be minimal.“Apart from the impact of the fine, BNP Paribas will once again post solid results this quarter,” BNP’s chief, Jean-Laurent Bonnafé, said.Brady Dougan, Credit Suisse’s chief at the time, said the deal would not cause “any material impact on our operational or business capabilities.”
sgardner35

Amtrak Train Derails in Philadelphia, Killing at Least 6 and Injuring Dozens - NYTimes.com - 0 views

  • bound Amtrak train that derailed and overturned late Tuesday, killing six people, injuring dozens more, and disrupting train service for thousands of riders in the Northeast region.
  • The train had at least seven cars, including the engine, which separated from the rest, officials said. Six cars overturned. At least one looked as bent as a crumpled soda can, and parts of the damaged cars were so badly mangled that firefighters had to use hydraulic tools to rescue people trapped inside.
  • On Wednesday, Temple University Hospital said it had received 54 people from the wreck. Herbert E. Cushing, the chief medical officer, said one person died overnight from a massive chest injury, and 25 remained in the hospital, including eight people in critical condition.
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  • Early on Wednesday, Mr. Nutter said officials had still not accounted for everyone on board.
  • Still, the derailment on Tuesday took place in roughly the same area of track that was the site of one of the nation’s deadliest rail accidents.
  • Amtrak canceled service between New York and Philadelphia, and modified three other routes. Officials said New Jersey Transit would honor Amtrak tickets between New York City and Trenton.
  • Into the early morning, train cancellations piled up, not just from Amtrak but also from New Jersey Transit and other services that use the same section of track that is now mangled.
sgardner35

Reports: North Korea publicly executes defense chief - CNN.com - 0 views

  • North Korea has publicly executed the country's defense minister after the regime accused him of treason, according to reports from South Korea.
  • l in front of hundreds of people in Pyongyang, the South Korean Intelligence Agency was reported to have told parliament members in a closed door session
  • expressed discontent towards leader Kim Jong Un, and failed to follow Kim's orders on several occasions, according to Kim Gwang-lim
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  • Hyon was seen nodding off during a meeting organized by Kim Jong Un
  • A spokesman for South Korea's Unification Ministry said the government considered the execution to be another display of "fear politics" in North Korea.
  • Hyon was a longtime Kim family loyalist who spent years working under North Korea's former leader Kim Jong Il as a high-ranking military official.
  • During 2014, Hyon was promoted again to the National Defense Commission (NDC), described as a supreme organ of the state which has authority over the Ministry of People's Armed Forces and Ministry of People's Security.
  • North Korean leader Kim Jong Un has been accused of ordering the executions of as many as 15 top officials so far this year. However, during a rare trip by CNN to Pyongyang last week, a top official dismissed the allegation as "malicious slander."
  • North Korea is one of the most closed and repressive countries on Earth.
  • "Kim Jong Un has shown a ruthless side that we haven't seen since his grandfather consolidated power back in the 50s and 60s -- going after rivals and potential rivals and having them executed."
Javier E

The Center-Right Moment - NYTimes.com - 0 views

  • there are a few broader trends to be observed. The first is that the cutting-edge, progressive economic arguments do not seem to be swaying voters.
  • Over the past few years, left-of-center economic policy has moved from opportunity progressivism to redistributionist progressivism. Opportunity progressivism is associated with Bill Clinton and Tony Blair in the 1990s and Mayor Rahm Emanuel of Chicago today. This tendency actively uses government power to give people access to markets, through support for community colleges, infrastructure and training programs and the like, but it doesn’t interfere that much in the market and hesitates before raising taxes.
  • The conservative victories probably have more to do with the public’s skepticism about the left than with any positive enthusiasm toward the right.
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  • Redistributionist progressivism more aggressively raises taxes to shift money down the income scale, opposes trade treaties and meddles more in the marketplace. This tendency has won elections in Massachusetts (Elizabeth Warren) and New York City (Bill de Blasio) but not in many other places. Ed Balls, the No. 2 figure in the Labour Party in Britain, co-led the group from the Center for American Progress that wrote the most influential statement of modern progressivism, a report on “inclusive prosperity.” Balls could not even retain his own parliamentary seat in the last election.
  • there are a few things center-right parties have done successfully.
  • First, they have loudly (and sometimes offensively) championed national identity
  • Second, they have been basically sensible on fiscal policy
  • Third, these leaders did not overread their mandate. Cameron in Britain promised to cut the size of government, and he did, from 45.7 percent of G.D.P. in 2010 to 40.7 percent today,
  • But he made these cuts without going overboard. Public satisfaction with government services has gone up. And there have been some sensible efforts to boost those at the bottom. As The Economist pointed out, “The richest 10 percent have borne the greatest burden of extra taxes. Full-time workers earning the minimum wage pay a third as much income tax as in 2010. Overall, inequality has not widened — in contrast to America.”
  • Cameron’s win suggests the kind of candidate that would probably do well in a general election in this country. He is liberal on social policy, green on global warming and pragmatically conservative on economic policy. If he’s faulted for anything, it is for not being particularly ideological, though he has let his ministers try some pretty bold institutional reforms to modernize the welfare state.
  • Globally, voters are disillusioned with large public institutions. They seem to want to reassert local control and their own particular nationalism (Scottish or anything else). But they also seem to want a slightly smaller public sector, strong welfare state reform and more open and vibrant labor markets as a path to prosperity.
qkirkpatrick

America's Changing Religious Landscape | Pew Research Center - 0 views

  • The Christian share of the U.S. population is declining, while the number of U.S. adults who do not identify with any organized religion is growing, according to an extensive new survey by the Pew Research Center.
  • While the drop in Christian affiliation is particularly pronounced among young adults, it is occurring among Americans of all ages.
  • But the major new survey of more than 35,000 Americans by the Pew Research Center finds that the percentage of adults (ages 18 and older) who describe themselves as Christians has dropped by nearly eight percentage points in just seven years, from 78.4% in an equally massive Pew Research survey in 2007 to 70.6% in 2014.
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  • To provide a detailed account of the size of the religious groups that populate the U.S. landscape;
  • To describe the demographic characteristics, religious beliefs and practices, and social and political values of those religious groups; and
  • To document how the religious profile of the U.S. has changed since the first study was conducted in 2007. With more than 35,000 interviews each, both the 2007 and 2014 studies have margins of error of less than one percentage point, making it possible to identify even relatively small changes in religious groups’ share of the U.S. population.
  • The results of the 2014 Religious Landscape Study will be published in a series of reports over the coming year.
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    The Religious landscape is changing in America
jlessner

Turkey and Iran Put Tensions Aside, for a Day - NYTimes.com - 0 views

  • ISTANBUL — President Recep Tayyip Erdogan of Turkey accused Iran last month of trying to “dominate the region” through its proxies in Iraq, Lebanon, Syria and Yemen, suggesting to some that Turkey was shifting toward confrontation with its neighbor and joining a Saudi-led coalition to push back against Iranian influence across the Middle East.
  • Yet it was all smiles and handshakes in Tehran on Tuesday, as Mr. Erdogan was welcomed by Iran’s president, Hassan Rouhani, at the start of a one-day visit that had been long planned but was put in jeopardy after some Iranian lawmakers called for it to be canceled after Mr. Erdogan’s comments.
  • In a joint news conference broadcast live on state television, Mr. Erdogan and Mr. Rouhani pledged to work together to calm regional crises. “The region is burning in a fire,” Mr. Erdogan said. “So far, more than 300,000 were killed in Syria. All were Muslim. We do not know who is killing whom. We have to get united and block the killing and bloodshed.”
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  • The Iranian president called for an end to the Saudi-led airstrike campaign in Yemen — Tuesday was its 13th day — and for all Middle Eastern countries to “fight terrorism and extremism” together.
jlessner

Egyptian Court Upholds Mubarak Verdict - NYTimes.com - 0 views

  • n Egyptian court on Saturday reconfirmed a corruption conviction of former President Hosni Mubarak amid signals from the authorities that he may soon be released.
  • The court on Saturday reissued a three-year sentence for Mr. Mubarak that had been originally handed down in May 2014 but temporarily set aside in January when an appeals court ordered a retrial.
  • After the verdict, Egyptian state news also reported that prosecutors were calculating whether Mr. Mubarak had now served enough time to warrant his release. He has already spent more than three years in detention since his overthrow in 2011.
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  • If confirmed, Mr. Mubarak’s release would be the latest erosion of the charges, convictions and sentences that the authorities had hurled against him after the 2011 uprising.
jlessner

U.S. Urges Greece to Reject Russian Energy Project - NYTimes.com - 0 views

  • ATHENS — The United States, wading into the international efforts to shape Greece’s economic and geopolitical orientation, is pushing the leftist government in Athens to resist Russia’s energy overtures.
  • The dueling sales pitches, reminiscent of a Cold War struggle, come as debt-burdened Greece is desperate for new sources of revenue of the sort that a gas pipeline could bring.
  • That pipeline would carry Russian gas to Europe through Turkey and Greece, bypassing pipelines that run through Ukraine.
jlessner

300,000 March Through Moscow With Portraits of WWII Veterans - NYTimes.com - 0 views

  • As the head of the vast column reached Red Square, the marchers were joined by Russian President Vladimir Putin, who held a photograph of his late father in his naval uniform.
  • The march of the so-called Immortal Regiment was part of Saturday's commemorations of the 70th anniversary of the victory over Nazi Germany.
  • Earlier in the day, 16,500 troops took part in a military parade on Red Square.
jlessner

After Iraqis Wrest Tikrit From ISIS, Sectarian and Tribal Tensions Persist - NYTimes.com - 0 views

  • The battle for Tikrit and its surrounding villages, which pro-government forces won more than a month ago, was seen as a crucial test of the ability of the Iraqi government and its partners — including Shiite militias, Iranian military advisers and the American-led coalition — to win back territory from the Islamic State.
  • After the victory, an equally important challenge remains: stabilizing the Sunni-dominated area, and repopulating it, without recreating the sectarian animosities that helped the Islamic State seize the territory in the first place.
  • Another question was who would control the territory after it was wrested from the Islamic State: the Shiite groups or local Sunni forces.
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  • More than a month after the liberation, there is an undeniably Sunni face to the constellation of armed groups in control of the area, even if Shiite militia commanders still appear to be ultimately calling most of the shots.
jlessner

'Inequality Is a Choice' - NYTimes.com - 0 views

  • It turns out that the Wall Street bonus pool in 2014 was roughly twice the total annual earnings of all Americans working full time at the federal minimum wage.
  • Yet while we broadly lament inequality, we treat it as some natural disaster imposed upon us. That’s absurd. The roots of inequality are complex and, to some extent, reflect global forces, but they also reflect our policy choices.
  • We as a nation have chosen to prioritize tax shelters over minimum wages, subsidies for private jets over robust services for children to break the cycle of poverty. And the political conversation is often not about free rides by corporations, but about free rides by the impoverished.
jlessner

How Russians Lost the War - NYTimes.com - 0 views

  • When I grew up, I realized that in 1944 and 1945, my father was sinking ships that were evacuating German civilians and troops from Riga, in Latvia, and Tallinn, in Estonia. Hundreds, if not thousands, of people met their deaths in the waters of the Baltic — for which my father received his medals. It’s been a long time since I was proud of him, but I don’t judge him. It was war.
  • My father fought the evil of fascism, but he was taken advantage of by another evil. He and millions of Soviet soldiers, sailors and airmen, virtual slaves, brought the world not liberation but another slavery. The people sacrificed everything for victory, but the fruits of this victory were less freedom and more poverty.
  • So my father went off to defend his homeland. He was still a boy when he went to sea, in constant terror of drowning in that steel coffin. He ended up protecting the regime that killed his father.
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  • The victory gave the slaves nothing but a sense of the grandeur of their master’s empire. The great victory only reinforced their great slavery.
  • The chief Russian question is: If the fatherland is a monster, should it be loved or hated? Here everything has run together, inseparably. Long ago, a Russian poet put it this way: “A heart weary of hate cannot learn to love.”
  • Of course, I wish my homeland victory. But what would constitute a victory for my country? Each one of Hitler’s victories was a defeat for the German people. And the final rout of Nazi Germany was a victory for the Germans themselves, who demonstrated how a nation can rise up and live like human beings without the delirium of war in their heads.
  • Today, though, Victory Day has nothing to do with the people’s victory or my father’s victory. It is not a day of peace and remembrance for the victims. It is a day for rattling swords, a day of zinc coffins, a day of aggression, a day of great hypocrisy and great baseness.
  • In the 16th year of his rule, President Vladimir V. Putin has achieved everything a dictator could strive for. His people love him; his enemies fear him. He has created a regime that rests not on the shaky paragraphs of a constitution but on the unshakable laws of the vassal’s personal loyalty to his sovereign, from the bottom to the top of the pyramid of power.
  • My father was a Russian; my mother, a Ukrainian. But the Putin regime has set our peoples against each other. Sometimes, I think it’s good my parents did not live to see how Russians and Ukrainians are killing one another. Continue reading the main story Write A Comment
  • It is impossible to breathe in a country where the air is permeated with hatred. Much hatred has always been followed in history by much blood. What awaits my country? Transformation into a gigantic version of Ukraine’s eastern Donbass region?
  • Once again, the dictatorship is calling on its subjects to defend the homeland, mercilessly exploiting the propaganda of victory in the Great Patriotic War. Russia’s rulers have stolen my people’s oil, stolen their elections, stolen their country. And stolen their victory.
Javier E

Triumph of the Unthinking - NYTimes.com - 0 views

  • “Words,” wrote John Maynard Keynes, “ought to be a little wild, for they are the assault of thoughts on the unthinking.”
  • It’s true that in practice Mr. Obama pushed through a stimulus that, while too small and short-lived, helped diminish the depth and duration of the slump. But when Republicans began talking nonsense, declaring that the government should match the belt-tightening of ordinary families — a recipe for full-on depression — Mr. Obama didn’t challenge their position. Instead, within a few months the very same nonsense became a standard line in his speeches, even though his economists knew better, and so did he.
  • Like Mr. Obama and company, Labour’s leaders probably know better, but have decided that it’s too hard to overcome the easy appeal of bad economics, especially when most of the British news media report this bad economics as truth.
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  • What nonsense am I talking about? Simon Wren-Lewis of the University of Oxford, who has been a tireless but lonely crusader for economic sense, calls it “mediamacro.” It’s a story about Britain that runs like this: First, the Labour government that ruled Britain until 2010 was wildly irresponsible, spending far beyond its means. Second, this fiscal profligacy caused the economic crisis of 2008-2009. Third, this in turn left the coalition that took power in 2010 with no choice except to impose austerity policies despite the depressed state of the economy. Finally, Britain’s return to economic growth in 2013 vindicated austerity and proved its critics wrong.
  • every piece of this story is demonstrably, ludicrously wrong
  • Yet this nonsense narrative completely dominates news reporting, where it is treated as a fact rather than a hypothesis. And Labour hasn’t tried to push back, probably because they considered this a political fight they couldn’t win. But why?
  • Mr. Wren-Lewis suggests that it has a lot to do with the power of misleading analogies between governments and households, and also with the malign influence of economists working for the financial industry, who in Britain as in America constantly peddle scare stories about deficits and pay no price for being consistently wrong. If U.S. experience is any guide, my guess is that Britain also suffers from the desire of public figures to sound serious, a pose which they associate with stern talk about the need to make hard choices (at other people’s expense, of course.)
  • The fact is that Britain and America didn’t need to make hard choices in the aftermath of crisis. What they needed, instead, was hard thinking — a willingness to understand that this was a special environment, that the usual rules don’t apply in a persistently depressed economy, one in which government borrowing doesn’t compete with private investment and costs next to nothing.
Javier E

How Russians Lost the War - NYTimes.com - 0 views

  • Of course, I wish my homeland victory. But what would constitute a victory for my country? Each one of Hitler’s victories was a defeat for the German people. And the final rout of Nazi Germany was a victory for the Germans themselves, who demonstrated how a nation can rise up and live like human beings without the delirium of war in their heads.
  • Today, though, Victory Day has nothing to do with the people’s victory or my father’s victory. It is not a day of peace and remembrance for the victims. It is a day for rattling swords, a day of zinc coffins, a day of aggression, a day of great hypocrisy and great baseness.
  • hanks to the “zombie box,” the population now has a make-believe idea of the world: The West wants to destroy us, so we are compelled, like our fathers and grandfathers, to wage holy war against fascism and we must be prepared to sacrifice everything for victory.
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  • Russia’s rulers have stolen my people’s oil, stolen their elections, stolen their country. And stolen their victory.Father, we lost the war.
Javier E

The Battle for DuPont - NYTimes.com - 0 views

  • DuPont is a pretty well-run company. Under the leadership of Ellen Kullman, a company veteran who became its chief executive in 2009, this once unwieldy conglomerate has undergone a great deal of change, with more still to come. It has cut some $2 billion in costs, eliminating a third of its management; announced the spinoff of its performance chemicals business; and “refreshed” its board with such corporate stalwarts as Edward Breen, who is best known for turning around Tyco International in the early 2000s. Since Kullman took over, the company has delivered 266 percent in total shareholder returns, easily outpacing the Standard & Poor’s 500-stock index. It is in the middle of a major restructuring designed to boost earnings growth.
  • Have we really gotten to the point where the activist now gets the benefit of the doubt, no matter how well run the company?
  • In the DuPont/Trian fight, the hedge fund is on record as saying that the company is not getting a return on its research-and-development spending. Yet R.& D. — science — is at the very heart of DuPont’s business model and always has been. And it can take years to turn a scientific advance into a successful product. A DuPont stripped of much of its R.& D. doesn’t just hurt the company; it hurts the country.
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  • Activist funds are now such a powerful force in the market that many companies — even good ones — have no choice but to offer them board seats.
  • “Activism has caused companies to cut R.& D., capital investment and, most significantly, employment,” he said. “It forces companies to lay off employees to meet quarterly earnings.”“It is,” he concluded, “a disaster for the country.”
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