Global Articles on what is going on...posted daily

[sandi66]

FDIC to Open Window on Rulemaking Process
By Joe Adler, American Banker
July 23, 2010

WASHINGTON — As federal regulators begin implementing regulatory reform, at least one agency plans to step up its disclosure of private meetings with industry insiders.

Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
The Federal Deposit Insurance Corp. is planning to disclose the names of individuals and groups that meet with agency officials about the Dodd-Frank Act, which President Obama signed Wednesday. Such a plan goes well beyond current disclosure policies and comes amid the perception that banks will attempt to weaken provisions of the reform law as regulators put them into effect.

"A significant share of the American public thinks the game is rigged in finance's favor," said Robert Litan, a senior fellow at the Brookings Institution and research chief at the Kauffman Foundation. "Now, since everyone knows the bill is essentially just laying a road map for the regulators and all the real work is going to be done at the agencies, I think" FDIC Chairman Sheila Bair "is being very smart. I think you'll see other agencies do what she does."

Currently, the agencies only publish records of meetings dealing with a formal proposed regulation held during the proposal's comment period. Some meetings get disclosed outside of a comment period, but usually a journalist or other member of the public must request details through the Freedom of Information Act to obtain such records. Lawmakers are not required to disclose meeting with lobbyists.

The FDIC, which under the law must implement reforms ranging from changes in how banks are assessed premiums to developing a resolution system for giant nonbanks, appears ready to go further.

In a July 15 statement on the Senate's final passage of the bill, Bair emphasized that the agency would develop rulemakings "in an open, transparent and collaborative fashion."

"In addition to a dedicated webpage where the public can track key steps in the implementation process, we will also release the names and affiliations of outside individuals and groups that meet with FDIC officials about the bill," she said.

A spokesman said the agency was still developing the plan, and would provide no further details.

The plan echoes moves by the Obama administration, which has published records of meetings held with lobbyists in connection with economic stimulus measures and the Troubled Asset Relief Program.

"As hard as [the bill] was, the difficulty and complexity and amount of work yet to come is probably not fully appreciated by even those who think we appreciate it," said Chuck Muckenfuss, a partner at Gibson, Dunn & Crutcher LLP. "If the transparency serves to diminish the cynicism and enhance the legitimacy of the process, then that's a good thing."

Yet Muckenfuss and others said posting such meeting records may have drawbacks. The clearest one, observers said, is there could be fewer meetings — discouraging debate over an implementation issue — if attendees prefer that records not be disclosed. "The trade-off is that it from time to time could impede the flow of information," Muckenfuss said.

Jan Witold Baran, a partner at Wiley Rein, said President Obama's policies to publicize meetings have discouraged administration officials from meetings with lobbyists.

"The net effect … is that administration officials will decline to have any communications with registered lobbyists because it will require the posting of this information, and they either don't want to do that or they're too busy to do it," Baran said. "In the abstract, there shouldn't be any problem with posting records of meetings that have occurred. But what we have experienced is that the requirement in and of itself has discouraged meetings. I don't think that's healthy or beneficial."

It is unclear how far other agencies responsible for implementing the bill will go in disclosing their meetings.

A spokeswoman for the Federal Reserve Board said the central bank has in the past posted some meeting records before issuing formal proposals, including when the agency was involved in the implementation of Basel II capital standards.

Under the reform law, the Fed's implementing duties cover provisions such as new restrictions on interchange fees for debit cards and the oversight of systemically important companies.

The spokeswoman said the Fed was considering its options for posting a record of meetings concerning the reform law, but no decisions have yet been made.

A spokesman for the Office of the Comptroller of the Currency, which under the law will absorb the Office of Thrift Supervision, said the long-standing policy regulators now follow — to post meetings associated with formal comment periods — was sufficient. "As this transparent policy has served the public well for a number of years, we will continue this policy," the spokesman said.

If the public wanted more information, he said, "all of our schedules may be received under FOIA for those who are interested in an hour by hour activity record of any OCC executive."

Like what you see? Click here to sign up for our daily newsletter to get the latest on advisor market trends, investment management, retirement planning, practice management, technology, compliance and new product development.
Industry representatives said they do not oppose increased disclosure, as long as the FDIC logs more than just its meetings with bankers.

"It should include not only what private parties are saying about regs, but it should include government agencies who are trying to influence the regs," said Wayne Abernathy, the executive director for financial institutions policy and regulatory affairs at the American Bankers Association. "If someone from the White House is calling the FDIC and wants to weigh in, that's fine, but it should be included in the records too.

Open-government advocates said the industry's influence makes an initiative for increased transparency a no-brainer.

"You can't question the power a lot of private interests wield as far as banking regulation" goes, said Anne Weissmann, the chief counsel for Citizens for Responsibility and Ethics in Washington. "There's a good reason to believe that they had a great deal of influence on the legislation. So given that, it's all the more important that there be enhanced transparency in how the legislation is actually implemented."

www.bankinvestmentconsultant.com/news/fdic-reg-reform-2668006-1.html

[sandi66]

US Bank Closures Hit 103 Compared With 64 Last Year

Posted: July 24, 2010 at 7:23 am


The FDIC in conjunction with state bank authorities closed seven more banks on July 23, bringing the total for the year to 102.

The cost to the Deposit Insurance Fund was modest because the banks were all small, with the exception of Crescent Bank and Trust Company which cost the FDIC $242 million. Some analysts expect that 200 banks will close in 2010 and another 10o or more in 2011, putting a strain on FDIC resource. The agency had to assess the banks it insures their fees through 2012 to raise money when it ran out of funds in September 2009. The Treasury would have had to provide the funds otherwise.

Home Valley Bank, Grants Pass, OR, SouthwestUSA Bank, Las Vegas, NV, Community Security Bank, New Prague, MN, Thunder Bank, Sylvan Grove, KS, Williamsburg First National Bank, Kingstree, SC, Crescent Bank and Trust Company, Jasper, GA, and Sterling Bank, Lantana, FL were closed.

Home Valley Bank, Cave Junction, Oregon, was closed by the Oregon Department of Consumer and Business Services, which appointed the Federal Deposit Insurance Corporation as receiver. The FDIC entered into a purchase and assumption agreement with South Valley Bank & Trust, Klamath Falls, Oregon, to assume all of the deposits of Home Valley Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $37.1 million.

SouthwestUSA Bank, Las Vegas, Nevada, was closed by the Nevada Financial Institutions Division, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Plaza Bank, Irvine, California, to assume all of the deposits of SouthwestUSA Bank. The FDIC estimates that the cost to the DIFwill be $74.1 million

Community Security Bank, New Prague, Minnesota, was closed by the Minnesota Department of Commerce, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with Roundbank, Waseca, Minnesota, to assume all of the deposits of Community Security Bank. The FDIC estimates that the cost to DIF will be $18.6 million

Thunder Bank, Sylvan Grove, Kansas, was today by the Kansas Office of the State Bank Commissioner, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with The Bennington State Bank, Salina, Kansas, to assume all of the deposits of Thunder Bank. The FDIC estimates that the cost to the DIF will be $4.5 million

Williamsburg First National Bank, Kingstree, South Carolina, was today by the Office of the Comptroller of the Currency, which appointed the FDIC as receiver. The FDIC entered into a purchase and assumption agreement with First Citizens Bank and Trust Company, Inc., Columbia, South Carolina, to assume all of the deposits of Williamsburg First National Bank. The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $8.8 million

Crescent Bank and Trust Company, Jasper, Georgia, was closed by the Georgia Department of Banking & Finance, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with Renasant Bank, Tupelo, Mississippi, to assume all of the deposits of Crescent Bank and Trust Company. The FDIC estimates that the cost to the DIF will be $242.4 million.

Sterling Bank, Lantana, Florida, was today by the Florida Office of Financial Regulation, which appointed the FDIC as receiver. To protect the depositors, the FDIC entered into a purchase and assumption agreement with IBERIABANK, Lafayette, Louisiana, to assume all of the deposits of Sterling Bank. The FDIC estimates that the cost to the DIF will be $45.5 million.

247wallst.com/2010/07/24/us-bank-closures-hit-103-compared-with-64-last-year/

[sandi66]

President Barack Obama and GOPers spar over how to fix economy
BY Aliyah Shahid
DAILY NEWS STAFF WRITER

Saturday, July 24th 2010, 12:51 PM


The President is staying on message: Don't blame me for this economic mess. It's the Republicans' fault.

President Barack Obama hammered GOP opposition to his economic proposals on Saturday, just three days after signing into law historic financial reform.

But the Republicans fired back at the President, arguing Obama is merely using partisan tactics because he can't sell his own plan when millions of Americans want the jobs that he initially promised.

"The fact is that Washington Democrats' policies have created uncertainty that has undermined our economy, shaken the confidence of the nation and cost millions of American jobs," said House GOP leader John Boehner. "Our nation needs leadership, not excuses."

More than 2 million Americans are out of work as unemployment remains stuck at more than 9%.

Obama said the new financial regulations are critical in helping to breathe new life into the economy, something experts say he'll use as a cornerstone when he campaigns for congressional Democrats in November.

"It took nearly a decade of failed economic policies to create this mess, and it will take years to fully repair the damage," Obama said in his weekly address. "But I am confident that we are finally headed in the right direction. We are moving forward. And what we can't afford right now is to go back to the same ideas that created this mess in the first place."

Obama acknowledged that economic growth under his administration isn't enough to replace the millions of jobs that were lost. But the alternative GOP plan to repeal health care law, administer tax cuts to the rich and not investing in clean energy, would be much worse, he said.

"They are the same policies that led us into this recession," Obama said. "They will not create jobs, they will kill them."

With News Wire Services

In picture: President Obama slammed GOP opposition to his economic proposals during his weekly address on Saturday.

Play video....

www.nydailynews.com/news/politics/2010/07/24/2010-07-24_face_off_obama_and_gopers_spar_over_how_to_fix_economy.html

[sandi66]

July 24, 2010, 12:42 PM ET Obama to Netroots Nation: ‘Let’s Finish What We’ve Started’

By Susan Davis

It wasn’t lost on the 2,100 liberal activists gathered in Las Vegas at Netroots Nation for the annual four-day confab that the only Obama administration official who made the trip this time was Treasury Secretary Ray LaHood—a Republican.

But in a surprise video message this morning, President Barack Obama sought to rally his progressive base.

“We’re moving America forward and when we’ve come this far we can’t afford to slide backward,” Obama said, “Let’s finish what we’ve started.”

While progressives have been disappointed in many of the legislative compromises crafted by congressional Democrats and the White House, the president touted items on the agenda ahead that appeal to the base, including a repeal of the military’s Don’t Ask, Don’t Tell policy, closing Guantanamo Bay, and the end of the combat mission in Iraq.

blogs.wsj.com/washwire/2010/07/24/obama-to-netroots-nation-lets-finish-what-weve-started/

video there 7/24/10

[sandi66]

Biden thinks Republicans ‘wildly out of step’

July 23, 4:32 PM

For someone who is a part of the party who has expressed some concern about what will happen at the voting booth in November, it’s almost amusing that Biden thinks that the Republicans are “wildly out of step.” This ridiculous proclamation was verbalized at a Democratic fundraiser on Thursday, according to a www.mcclatchydc.com article. He further claimed that the present group of cronies in Washington actually brought the ailing economy “back from the cliff, helped clean up the abuses of Wall Street and extended health care insurance.” Let’s take a closer look at each of those claims, shall we?

The “badly wounded economy,” which Biden and most of Washington’s Dems claim was “inherited,” actually had a national unemployment rate of about 7 percent by the end of the Bush presidency. When Obama took office, he promised it wouldn’t go above 8 percent because of the bailouts that he and the rest of Washington pushed through. Bailouts which most American citizens were screaming that they didn’t want. Now that Biden and the rest of the Washington Democrats have control, and national unemployment is being reported at nearly 10 percent. And that doesn’t include those who are underemployed or whose benefits have run out because it now takes about 33 weeks to find a job – just enough for standard unemployment benefits to run out. According to Reuters, it’s being projected that under this administration, food stamp enrollment will average 40.5 million by September, and by 2011, it could average 43.3 million. This would be higher than under the previous administration.

It was under this administration when the UN became more outspoken about the instability of the American dollar. As this administration continued to accelerate its spending spree in the name of saving the economy, the UN became more emphatic about finding a new reserve currency to replace the increasing instability of the US dollar.

While the new Wall Street reform legislation is being touted as a reform whereby credit card companies and banks can’t sock consumers with fees anymore, there is an eerie silence regarding which fees that includes. The new law also gives away power to a government entity to shut down banks that they think are failing. The idea is for big banks to overtake smaller banks. That particular move would continue the drive toward a One World monetary system, as will the push for a new reserve currency, which will contribute to the establishment of a One World system / New World Order to be presided over by a One World dictator anti-Christ figure.

The most telling aspect regarding just how “helpful” the Washington Democrats have been in relation to fixing the economy should be Democrat Chris Dodd’s words about the monstrosity bill that he helped to pen, “no one will know until this is actually in place how it works,” and “it will take the next economic crisis, as certainly it will come, to determine whether or not the provisions of this bill will actually provide this generation or the next generation of regulators with the tools necessary to minimize the effects of that crisis.” Yeah, real effective way to clean up Wall Street, isn’t it? They don’t even know if the reforms they passed are going to work!

And then there is the new healthcare legislation. You know, the same one which Pelosi declared needed to be passed so that we could know what’s in it. Not only were the majority of Americans screaming about not wanting this healthcare industry mess of a bill that the Democrats had created, but now that we’ve been stuck with it, a www.rasmussenreports.com article from Monday stated that “sixty-nine percent (69%) of mainstream voters favor repeal”! And what are many Republicans campaigning on right now? Repealing the messes that the Democrats make!

There were promises that there wouldn’t be rationed care, but Obama appointed Donald Berwick as “Administrator of the Centers for Medicine and Medicaid Services,” and Berwick is considered an “expert on rationing.”

Though the IRS has absolutely no background in healthcare, they will be responsible for forcing citizens to purchase the government mandated product of health insurance and may eventually be raiding private retirement accounts to help pay for this nearly 1 trillion dollar disaster.

Even more telling with regard to who is “wildly out of step” is the Rasmussen statistic that, “68% of voters nationwide believe the nation’s political class doesn’t ‘care what Americans think.’” If Biden and the rest of the Democrats continue to deny the numbers, they’ll be faced with a rather radical reality check come November.

www.examiner.com/x-16044-Christianity--Politics-Examiner~y2010m7d23-Biden-thinks-Republicans-wildly-out-of-step

[sandi66]

Treasury names John Walsh acting head of OCC

Friday July 23, 2010

WASHINGTON (Reuters) - John Walsh, chief of staff at the Office of the Comptroller of the Currency, will become the acting head of the agency, which supervises the largest U.S. banks.

Walsh was closely involved in all aspects of the OCC during the financial crisis, when bank regulators were instrumental in crafting rescue programs and shoring up the dismal confidence in the U.S. financial system.

He will step into his new position when Comptroller of the Currency John Dugan leaves office on August 14 near the end of his five-year term, the U.S. Treasury Department said on Friday.

Walsh is seen as an interim appointment until the Obama administration names a permanent head to the agency.

The OCC, like other U.S. financial regulators, faces the daunting task of crafting dozens of new rules to carry out the massive financial reform legislation that President Barack Obama signed into law earlier this week.

Walsh will take on the initial steps, including the process of the OCC absorbing the Office of Thrift Supervision, a regulator that largely oversees mortgage lenders and one whose reputation was severely damaged during the subprime mortgage crisis.

"We have many challenges ahead of us, including implementation of the financial reform law and completion of the Basel III capital process, and so I'm grateful I can rely on the highly professional and talented staff of the OCC," Walsh said in a statement.

Walsh's international experience will likely be an asset as he helps global regulators hammer out new capital rules for banks, known as Basel III.

Before becoming the OCC's chief of staff in 2005, he was executive director of the Group of 30, a consultative group that focuses on international economic and monetary affairs.

The Group of 30 was closely associated with Paul Volcker, former head of the Federal Reserve and now White House economic adviser.

He also serves as treasurer of the Baraka School, an international educational program designed to connect students in Kenya to American inner-city youth. The school was featured in the 2005 documentary "The Boys of Baraka."

www.wtaq.com/news/articles/2010/jul/23/treasury-names-john-walsh-acting-head-of-occ/

[sandi66]

Sunday July 25, 2010

Another threat to European banks

FRANKFURT, Germany — The sovereign debt crisis would seem to create concern enough for European banks, but there is another threat that has not garnered as much notice. Financial institutions must repay or roll over trillions of dollars in short-term borrowing in the next two years.

The European Central Bank, the Bank of England and the International Monetary Fund have all warned of a looming crunch, especially in Europe, where banks have struggled to raise money.

The concern is that banks hungry for refinancing will compete with governments — which must also roll over huge sums — for the bond market’s favor. As a result, credit for business and consumers could become more costly and scarce, with unpleasant consequences for economic growth.

“There is a cliff we are racing toward — it’s huge,” said Richard Barwell, an economist at Royal Bank of Scotland and formerly a senior economist at the Bank of England, Britain’s central bank. “No one seems to be talking about it that much.” But, he added, “it’s of first-order importance for lending and output.”

Advertising
Banks worldwide owe nearly $5 trillion to bondholders and other creditors due through 2012, according to estimates by the Bank for International Settlements. About $2.6 trillion of the liabilities are in Europe.

U.S. banks must refinance about $1.3 trillion through 2012. While that sum is nothing to scoff at, analysts seem most concerned about Europe because its banking system is already weighed down by the sovereign debt crisis.

How banks will come up with the money is an open question. With investors concerned about government over-indebtedness in Greece, Spain, Ireland and other countries, many banks have been reluctant or unable to sell bonds, which they typically use to raise money that they lend to businesses and households.

The financing crunch has its origins in a worldwide trend for banks to borrow money for shorter periods. The practice of short-term borrowing and long-term lending added to the near-collapse of the financial system in late 2008 when short-term financing dried up. Banks suddenly found themselves starved for cash, and some would have collapsed without central bank support.

Government bank guarantees extended in response to the crisis inadvertently encouraged short-term lending. The guarantees were typically for only several years, and banks issued bonds to match.

Other banks took advantage of the gap between short-term and long-term rates, borrowing cheaply and lending to their customers at higher, long-term rates.

A study in November by Moody’s Investors Service found that new bond issues by banks in the last five years matured in an average of 4.7 years — the shortest average in 30 years.

Since then, worries about Greek and Spanish debt and whether Europe is headed for another recession have caused new problems. Investors are unsure which institutions are in good shape and which are sitting on piles of bad loans and potentially tainted government bonds.

Bond issuance by European banks plunged to $10.7 billion in May, compared with $106 billion in January and $95 billion in May 2009, according to Dealogic, a data provider. New issues have recovered somewhat since, to $42 billion in June and $19 billion so far in July.

www.omaha.com/article/20100725/MONEY/707259928

[sandi66]

Iraqi parliament to resume session on Tuesday

2010-07-25 20:36:13

BAGHDAD, July 25 (Xinhua) -- The Iraqi political blocs decided Sunday to hold the parliament session on Tuesday, an official Iraqi television reported.

"The leaders and representatives of the political blocs agreed during their meeting today to hold the parliament session on Tuesday, July 27," the state-run Iraqia quoted Fuad Masum, the temporary speaker of the new Council of Representatives, as saying.

news.xinhuanet.com/english2010/world/2010-07/25/c_13414625.htm

ty nalmann

[sandi66]

Iraqi parliament to resume session on Tuesday

English.news.cn 2010-07-25 20:36:13


BAGHDAD, July 25 (Xinhua) -- The Iraqi political blocs decided Sunday to hold the parliament session on Tuesday, an official Iraqi television reported.

"The leaders and representatives of the political blocs agreed during their meeting today to hold the parliament session on Tuesday, July 27," the state-run Iraqia quoted Fuad Masum, the temporary speaker of the new Council of Representatives, as saying.

On June 14, the Iraqi new parliament held its first session which only lasted about 20 minutes and was adjourned until further notice to give the political blocs the time to agree on the three presidencies (president, parliament speaker and prime minister) and the government formation.

The parliament again was scheduled to convene on July 13, but was delayed for two weeks to give more time for the rival political blocs to overcome their differences.

According to the Iraqi constitution, the parliament must elect its new speaker and his two deputies in the first session, then the parliament under the new speaker must elect a new president who will later call on the candidate of the largest bloc for the prime minister post to form his cabinet.

However, the Iraqi parliamentary blocs insist to agree on the names of the three presidencies as one package before resuming the parliament session.

Since the March 7 parliamentary election, Iraqi politicians have been bickering about who should have the right to form the next government.

Former Iraqi Prime Minister Ayad Allawi's secular list won the most 91 seats in the March 7 polls, just two seats more than the State of Law alliance led by Prime Minister Nuri al-Maliki. Editor: Tang Danlu


news.xinhuanet.com/english2010/world/2010-07/25/c_13414625.htm

ty nalmann & tramp

[sandi66]

Larry Fink owns over 1 billion shares of BP


Larry Fink’s $12 Trillion Shadow


Though few Americans know his name, Larry Fink may be the most powerful man in the post-bailout economy. His giant BlackRock money-management firm controls or monitors more than $12 trillion worldwide—including the balance sheets of Fannie Mae and Freddie Mac, and the toxic A.I.G. and Bear Stearns assets taken over by the U.S. government last year. How did Fink rebound from a humiliating failure to become the financial fulcrum of Washington and Wall Street? Through a series of interviews, the author probes his role in the crisis, his unique risk-assessment system, and the growing concern he inspires.

By Suzanna Andrews •

The “psychologically astute” Larry Fink, photographed at BlackRock headquarters in February.
Considering the enormous power he is believed to wield, it’s remarkable how few people have heard of Larry Fink. In political and business circles—among the men who travel the now well-worn corridor between Washington and Wall Street—Fink, the chairman and C.E.O. of BlackRock, the giant asset-management firm, is described as possibly the most important man in finance today. But mention his name to most people and they draw a blank. Despite his considerable wealth, he is virtually unknown on the society circuit in Manhattan, where he has an apartment on the Upper East Side, or in Aspen, where he also has a home. In North Salem, the affluent enclave north of New York City where he and Lori, his wife of 35 years, have a 26-acre farm, he is perhaps slightly better known, if only because a number of Wall Street bankers have estates there. But still—just a few months ago—when one of his neighbors, a prominent New York agent, furious that a popular horse path through the Fink estate had been blocked off, was told who owned the property, her response was: “Who is Larry Fink?”

Yet among the men who run Wall Street, it would be hard to find anyone who is not at least a little bit in awe of Larry Fink. While some—especially those who have known him the longest—snicker privately about how clearly the 57-year-old seems to relish his “transformation” in the last year and a half “into a Wall Street statesman,” its top consigliere, and the leading member of the country’s financial oligarchy, there is nothing but admiration for the vast power of BlackRock. In December, when Fink’s $13.5 billion acquisition of Barclays Global Investors was finalized, BlackRock, the company he founded 22 years ago, officially became the largest money-management firm in the world. A global colossus—with $3.3 trillion in assets under its direct management and another $9 trillion it supports—BlackRock manages about $1 trillion of pension and retirement funds for millions of Americans and oversees the investments of scores of institutions around the world: from state and local governments to college endowments, from Fortune 500 companies to the sovereign-wealth funds of, among others, Abu Dhabi and Singapore.

BlackRock’s vast reach in the global markets is not, however, its only source of influence these days. That Fink pulled off the Barclays deal in the aftermath of 2008’s financial meltdown is, in itself, impressive, but he did more than merely survive the wreckage unscathed. Indeed, it is hard to argue that anyone, or any firm on Wall Street, gained as much stature from the economic crisis as did Fink and BlackRock. At the height of the disaster, when the American economy was on the brink, it was to Fink that Wall Street’s C.E.O.’s—including J. P. Morgan Chase’s Jamie Dimon, Morgan Stanley’s John Mack, and A.I.G.’s Robert Willumstad—turned for help and counsel. As did the U.S. Treasury and the Federal Reserve Bank of New York, whose top officials turned to Fink for advice on the financial markets and assistance on the $30 billion financing of the sale of Bear Stearns to J. P. Morgan, the $180 billion bailout of A.I.G., the $45 billion rescue of Citigroup, and those of Fannie Mae and Freddie Mac at $112 billion and growing.

Today, through an array of government contracts, BlackRock has effectively become the leading manager of Washington’s bailout of Wall Street. The firm oversees the $130 billion of toxic assets that the U.S. government took on as part of the Bear Stearns sale and the rescue of A.I.G.; it also monitors the balance sheets of Fannie Mae and Freddie Mac—which together amount to some $5 trillion—and provides daily risk evaluations to the New York Fed on the $1.2 trillion worth of mortgage-backed securities it has purchased in an effort to jump-start the country’s housing market.

If Larry Fink is currently “at the hub of the wheel of American capitalism,” as his friend Ken Langone, the co-founder of Home Depot and a former director of the New York Stock Exchange, puts it, he has achieved this position largely in the shadows. Even on Wall Street, until recently, there were people who only vaguely knew what he did. According to William D. Cohan, a former investment banker and the author of the best-selling account of Bear Stearns’s collapse, House of Cards, there were many bankers at the firm who for months had no idea how deeply Fink and BlackRock were involved in the dismantling of their company. “He’s like the Wizard of Oz,” Cohan says. “The man behind the curtain.”

When they speak of what Larry Fink has achieved, Wall Street C.E.O.’s use the sort of gushing encomiums that are usually overheard in Hollywood pitch meetings: “unbelievable, completely remarkable”; “spectacular”; “brilliant.” If so many turn to him for advice now, it is “because he understands business backwards and forwards, he understands risk, and he knows the markets,” says Fink’s friend John Mack, the chairman of Morgan Stanley. He also “hasn’t made the big mistakes, and some people have,” adds Mack, whose firm was saved by $10 billion of tarp funds, since returned, and a capital infusion from a Japanese bank—a deal which BlackRock helped to value. Considering his profound understanding of the markets, his gold-plated Rolodex, and his intimate knowledge of the culture and management of nearly every major Wall Street firm, some C.E.O.’s even suggest privately that Fink should be considered for the next Treasury secretary—if the embattled Timothy Geithner does not survive his current term.

But BlackRock’s enormous and growing influence and its sheer size—too big to fail, some say—has begun to raise questions. “It’s like the Blackwater of finance, almost a shadow government,” says one senior bank executive, referring to the mountain of government contracts awarded to the firm. Although others—including the massive California-based Pacific Investment Management Company—have benefited from the gravy train of post-bailout government jobs, none appears to have gained nearly as much as BlackRock. Fink’s firm has been granted a privileged view into a broad swath of the financial markets, raising questions, says James Bianco, the C.E.O. of Bianco Research, about how it is handling possible conflicts of interest. That BlackRock was awarded key contracts with no competitive bidding, in a process enveloped in secrecy, has also raised hackles in Congress and led to questions about Fink’s long-standing relationships with senior government officials, particularly former Treasury secretary Henry Paulson and Geithner, his successor.

“You see a lot of concentration now in the financial industry of people who are more connected than brilliant,” says Janet Tavakoli, the president of Tavakoli Structured Finance and the author of Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street. “So why BlackRock? Not to take anything away from Larry Fink, but all the contracts awarded to BlackRock, in the way they’ve been awarded, deserves some question.”

The Yenta of Wall Street
It is the polished, calm, measured Fink—the “Wall Street Wise Man”—that one sees on television, often on CNBC, where he has appeared with increasing frequency. Tall, balding, and bespectacled—pontificating about interest rates, the dollar, bond yields, and financial regulatory reform—he speaks softly, in a tone that is authoritative and bland, which is nothing like the man off the air.

Passionate, “intense, very intense,” Fink, in person, friends say, is above all “blunt,” “very opinionated.” “He is a very strong personality,” says J. Tomilson Hill, the vice-chairman of the Blackstone Group, the $100 billion asset management and advisory firm. “He will give you a point of view when a lot of people don’t want to be pinned down.” Part of the reason men on Wall Street not only like Fink but, says Hill, “really trust him” relates to BlackRock’s unusual status on Wall Street. As an asset manager, BlackRock trades only money that belongs to its clients. Unlike other Wall Street C.E.O.’s, whose firms trade for their own account and whose advice to others and loyalty to their clients are often subordinated to their own quest for profits, Fink is perceived as objective.

But it is Fink’s willingness to take a stand, many of his peers say, that really distinguishes him. “There is no hidden agenda with Larry,” says Ken Langone. “He’s right out front. He doesn’t run for the hills like some other so-called business leaders.” And he doesn’t mince words, as in telling Goldman Sachs chairman Lloyd Blankfein, “What the f**k were you thinking?,” when he learned that Goldman was trying to buy as much as $1 billion of Fannie Mae tax credits last November in a deal—widely criticized as yet another Goldman money grab—that was eventually nixed by the Treasury on the ground that it would have cost the U.S. government far more than Fannie would have gained.......

www.vanityfair.com/business/features/2010/04/fink-201004


ty joye

[sandi66]

Goldman threatened with audit by US panel
By Justin Baer in New York

Published: July 25 2010 22:06 | Last updated: July 25 2010 22:06

Goldman Sachs is facing a threat by the Financial Crisis Inquiry Commission to bring in outside accountants to comb through the bank’s systems for data on its derivatives business, the panel’s chairman has said.

The commission will not back down from demands for information Goldman’s executives have maintained they do not track, Phil Angelides told the Financial Times.

EDITOR’S CHOICE
In depth: Crisis inquiry - Jun-21On Wall Street: Slapped wrist and back to business - Jul-23In depth: Goldman Sachs - Jul-23Lex: Goldman Sachs - Jul-20Gapper: Goldman not superhuman - Jul-20Goldman finds itself at crossroads - Jul-21“We have a deep level of questioning about whether we’re getting the straight scoop here and whether Goldman is working with us on information that they surely have,” Mr Angelides, chairman of the US Congress-appointed commission.

His comments mark the latest episode in the dispute between Goldman and the commission, which has scolded the bank for its “abysmal” response to the inquiry. The frustration of FCIC members was evident several weeks ago when two of Goldman’s executives, Gary Cohn, president, and David Viniar, chief financial officer, told the panel the bank’s accounting systems did not break out trading revenue generated strictly from derivatives.

They maintained that such information would give little insight into the bank’s trading risks as many trades involving a derivative contract also include an offsetting cash security. For instance, Goldman might buy a credit default swap to hedge against the possible default of a company where the bank also has a position in its debt. Tracking the revenue of one slice of a trade would ignore whatever gains or losses were booked on the other side, the bank said.

“We continue to work with the FCIC and their staff,” Mr Viniar told the FT last week.

On Friday, people familiar with the matter said Goldman had fulfilled another request by the FCIC – giving it a list of counterparties from which the bank bought credit insurance on AIG, the US insurer.

Mr Angelides said he remained sceptical that Goldman did not have the derivatives information, given the bank’s reputation for risk management and its discipline in marking the value of every position daily. “It’s not credible that that’s a black hole,” Mr Angelides said. “It defies logic that these institutions have no clue of how much money they are making or losing from these derivatives.”

The information was vital, he said, because it would help explain how Wall Street had evolved along with the use and complexity of derivatives. “These banks have become trading operations,” he said. “This is essential information. It’s the centre of their business.”

That is the problem, said Brad Hintz, an analyst with Sanford Bernstein. The ubiquity of derivatives changed the way banks tracked trading risks and, eventually, how they structured their businesses.

“Over the years the model of a separate derivatives book became a very dated model for trading,” Mr Hintz said. “Can I really take the profitability of the corporate bond desk out of the derivatives desk?

Mr Hintz, an analyst at ­Sanford Bernstein, estimated that derivatives accounted for about 15 per cent of Wall Street’s fixed-income trading business and 20 per cent of ­equities trading.

“We’ll pursue all of our options,” Mr Angelides said. “We’re going to continue to press this very hard.”

tinyurl.com/2fzw32a

[sandi66]

Alarm at banks’ unreported risk

By Norma Cohen in London and Justin Baer in New York

Published: July 25 2010 22:37 | Last updated: July 25 2010 22:37

As many as five US banks failed to report hundreds of billions of dollars in credit derivatives bought from foreign counterparties during 2009, leaving those risks below the radar of regulators in the US and Europe.

The banks’ underreported exposures to credit default swaps came to light as the US Federal Reserve and the Bank for International Settlements were preparing first-quarter reports of the industry’s lending and risk activities. It was revealed as a footnote to the BIS report’s lengthy tables.

The BIS became alarmed at the discrepancy, according to one official familiar with the report.

“This underscores how little transparency there was and how much information was missing,” said one BIS official familiar with the report.

The missing exposures came from a group of financial institutions that were hastily granted bank holding company status in 2008 as panic engulfed the world’s financial system. The rapid conversion to bank status allowed them to borrow cash from the Fed, if needed, as liquidity threatened to dry up.

The mishap underlines how the conversion also introduced those companies to a raft of complex bank reporting standards, and raises new questions on the lack of scrutiny they faced under previous regulators.

The Fed, following a review of its quarterly report on cross-border risks, discovered that the group, which included Goldman Sachs, Morgan Stanley, American Express and CIT, only submitted claims on credit derivatives up to the amount where there was a corresponding position to hedge against. The additional risks, which totalled $400bn in the first quarter, were left out.

The BIS has been among the most vocal supporters of transparency in the derivatives market, particularly that for instruments such as CDSs that are traded over the counter.

In a speech last month, Stephen Cecchetti, head of the monetary and economic department of the BIS, noted the events that threatened the world’s financial system in 2008 stemmed largely from the lack of knowledge about each bank’s risks.

People familiar with the matter said the Fed concluded the failure to report the derivatives position stemmed from a lack of familiarity with requirements rather than any intentional move to withhold details. Regulators plan to update their 2009 cross-border risk reports to add the banks’ missing data.

www.ft.com/cms/s/0/78ef70be-9812-11df-b218-00144feab49a.html?ftcamp=rss

[sandi66]

Apollo exploits loophole to create new bank
By Henny Sender in New York

Published: July 25 2010 22:36 | Last updated: July 25 2010 22:36

Private equity group Apollo Management will establish a new bank under an obscure provision buried in the US financial regulations signed into law last week.

Apollo is to take advantage of a change that allows banks to operate in multiple US states without a national charter, lawyers say.

The company, which has about $55bn under management, has hired a team from Countrywide Financial to run the bank, and is awaiting regulatory approval. Apollo plans to get round ownership restrictions which can force a private equity group to be considered a bank holding company by asking its investors to put money alongside it in the new bank, to be called Ares. The bank will have a separate board and operate independently of Apollo. However, it is not currently clear how ambitious Apollo’s plans for the bank will prove, people familiar with the matter say.

Apollo’s move reflects a back-to-basics thesis that bank lending will become more important as capital markets decrease in importance in coming years – at least as long as the securitisation market remains frozen.

The group, which plans to list on the New York Stock Exchange soon, declined to comment.

The Countrywide team came from the banking side of the lender, not the mortgage operation that came under scrutiny following the collapse of the US housing market. It is headed by James Furash, who founded the banking side and built up its retail deposits, and Mark Suter, another senior executive, people familiar with the matter said.

Apollo’s new template comes as most private equity groups have abandoned efforts to create banks and given up hope that Federal Deposit Insurance Corp sales of troubled banks would be a source of lucrative deals.

In numerous FDIC auctions, regulators have made it clear they prefer strategic buyers, putting private equity groups at a disadvantage. “There is only downside for regulators in selling banks to private equity firms,” said the person in charge of financial investments for one private equity group.

For example, on the Blackstone earnings call last week, Tony James, president, said the company had “changed focus from assisted bank deals”. This month, Wilbur Ross, the turnround specialist bought a minority stake in publicly listed Sun Bancorp of New Jersey.

www.ft.com/cms/s/0/9b04ecc4-9817-11df-b218-00144feab49a.html

[sandi66]

The LBMA joins the gold squeeze cover-up

By: Adrian Douglas



-- Posted Monday, 26 July 2010 | Digg This Article | | Source: GoldSeek.com



The London Bullion Market Association has just taken the highly unusual step of blocking access to statistics relating to the trading activities of its member bullion banks. This information has been available to the public since 1997 but as of this week it is available only to LBMA members. (See http://www.lbma.org.uk.)

I have recently written a series of exposes of the LBMA (see References 1-4 below) using the association's own data to show that the LBMA's bullion banks are operating on a "fractional reserve" basis. My analysis indicates that the bullion banks are holding only 1 real ounce for about every 45 ounces of gold that they have sold, a reserve ratio of just 2.3 percent

At the March 25 public hearing of the U.S. Commodity Futures Trading Commission on precious metals futures markets I cited the LBMA's own statistics to label the "unallocated gold" accounts of the bullion banks as a Ponzi scheme. (See Reference 3 below.) There were bullion bank representatives at the hearing but no one expressed an objection. That hearing was videotaped and posted at the CFTC's Internet site but the bullion banks have not made any public statement rebutting what I said. In fact at that hearing Jeffrey Christian, CEO of the CPM Group, acknowledged that what is widely called the "physical market" is in reality a largely "paper market" trading gold and silver as if they are financial assets and not physical metals. Christian stated that 100 ounces of paper gold are traded for every 1 ounce of physical gold.

When the LBMA first made its trading statistics available in January 1997, observers and analysts were shocked. (See Reference 5 below.) No one could reconcile the statistics with other market data, nor comprehend how the bullion banks could be trading on a net basis more than 240,000 tonnes of gold annually while the global mine output was only 2,400 tonnes. Over the years the furor over these statistics had subsided until the end of 2009, when I commenced writing about my studies, showing that the statistics can be reconciled with other market data if the bullion banks are operating a fractional-reserve bullion banking operation with a recklessly low reserve ratio. I have also shown how the price of gold is suppressed because 45 ounces of demand are being diluted to result in purchase of only 1 ounce of real metal. If instead all 45 ounces were to be sourced and purchased, the gold price would be multiples of the current price.

Typically when people are exposed in a scandal their first reaction is a cover-up. The most notorious examples of this are the Nixon administration, when it doctored the Watergate tapes, and Arthur Anderson, which shredded millions of pages of documents relating to audits of Enron Corp.

The LBMA has now commenced a cover-up with respect to the gold trading activities of its member bullion banks, withdrawing statistics from the public domain.

This appears not to be the only cover-up going on in the gold market.

For years the International Monetary Fund has made great fanfare of its mere contemplation of selling some of its gold, and actual sales by the IMF have been widely publicized. Since February the IMF has been surreptitiously selling large tonnages of gold each month, but these sales now are to be found only by digging through the IMF's financial statements, and even there the recipients of the gold are not disclosed. (See Reference 6 below.) One has to wonder why the IMF now is trying to fly under the radar with its gold sales.

Similarly it was recently discovered that the Bank for International Settlements didn't feel it necessary to announce its involvement in the largest gold swap in history, 346 tonnes. (See Reference 7 below.) The BIS swaps instead were discovered only because a market analyst dug through the footnotes of the bank's financial statements.

These developments have all the hallmarks of cover-ups.

In June the LBMA trading statistics showed that in May 2010 the average net daily trading in gold by LBMA member banks jumped a massive 50 percent from the month before to 24 million ounces each day from 16 million ounces each day. That translates to $7.5 trillion annually. If an operation is running on a razor-thin fractional reserve basis, such step changes are often fatal.

It appears that a run on the bullion banks has commenced.

There is a cover-up of back-door injections of liquidity of physical gold, and the LBMA now is trying to conceal trading information.

There has been much debate about how investors, politicians, and regulators didn't see the 2008 financial crisis coming, and lack of transparency was cited as a key reason. Clearly those who have been manipulating the gold market are trying to skulk deeper into darkness. They have a lot to hide.

Investors could have been blindsided by the events of 2008, but anyone who misses the writing on the wall about what's going on in the bullion markets is just foolish. The bullion banks have sold far more metal than they can deliver, and more and more customers are asking them to deliver. This has led to back-door bailouts and cover-ups.

Anyone who has "unallocated" bullion should be very concerned. The LBMA itself describes owners of "unallocated bullion" accounts as "unsecured creditors." That means that the account holder has no collateral or title to any bullion.

Bullion bank unallocated account agreements require the bank only to settle in cash for non-performance. That means when the physical squeeze that is evolving takes gold and silver prices to multiples of the current price, holders of unallocated metal accounts will not get any bullion, nor will they be compensated at the prevailing market price.

I interpret the LBMA's move to secrecy as a sign that the opportunity to get real metal is closing fast.

----

References:

1. Adrian Douglas: Proof of Gold Price suppression -- Gold and the U.S. Dollar:

www.gata.org/node/8844

2. Adrian Douglas: Price Suppression Follows Inevitably from Fractional-Reserve Gold Banking:

www.gata.org/node/8820

3. Adrian Douglas: It's Admitted to the CFTC: London Gold Market Is a Ponzi Scheme:

www.gata.org/node/8478

4. Adrian Douglas: Jeff Christian's CPM Group Explains How to Make Paper Gold:

www.gata.org/node/8627

5. The Grand LBMA Expose: A Collective-Mind Analysis:

www.gold-eagle.com/gold_digest/baron907.html

6. Adrian Douglas: IMF Can't Explain Gold Sales Now Without Revealing Squeeze:

www.gata.org/node/8607

7. Adrian Douglas: Mysterious BIS Gold Swaps Are Likely a Bullion Bank Bailout:

www.gata.org/node/8803


news.goldseek.com/GATA/1280124540.php

[sandi66]

EM ASIA FX-Singapore dlr hits 2-yr high; won strength capped
Published: 25 Jul 2010 23:13:58 PST

* Singapore dollar jumps after IMF report

* Korean authorities intervene to cap won -traders

* Onshore dollar/rupee premiums edge higher

SINGAPORE, July 26 - The Singapore dollar hit a two-year high after the International Monetary Fund predicted its further appreciation, while South Korea's authorities were spotted intervening to try to cap the rising won.

The euro hit a seven-week high against the yen as a rise in shares prompted dealers to unwind long yen positions, but scepticism about the credibility of the euro zone's bank stress tests limited its gains versus the dollar.

Thailand's markets were shut for holiday.

SINGAPORE DOLLAR

The Singapore dollar gained half of a percent to 1.3640 per U.S. dollar, the highest since July 2008, after the IMF said in a report that the currency is likely to appreciate further as economic growth strengthens.

The Singapore dollar has gained 2.5 percent so far this month, buoyed also by recent data which showed the island's economy grew a record 19.3 percent in the second quarter from a year earlier.

Fund inflows have been on the rise as foreigners buy Singapore stocks and bonds, analysts say.

"Singapore's stocks are doing well and bonds are doing well, too. We still expect Singapore dollar to hit 1.34 to the U.S. dollar by year-end," said Thio Chin Loo, strategist at BNP Paribas.

WON

The won rose as much as 0.8 percent to 1,189.8 per dollar, a one-month high, as exporters bought the unit for settlements while other investors rushed to clear their dollar-long positions to stop losses.

The won later pulled back to 1,191 as traders spotted dollar-buying intervention by the authorities.

The won has risen 2.6 percent against the dollar so far this month, propelled by foreign buying of local assets.

"Exporters have many dollars to sell before their summer vacations," said a foreign bank dealer.

Seoul shares rose 0.6 percent, driven by foreign buying.

RUPEE

The Indian rupee gained a fifth of a percent 46.84 per dollar, the highest since July 16.

Onshore dollar/rupee premiums edged higher across tenors as traders braced for at least another 25 basis point interest rate rise on Tuesday.

One-year onshore dollar/rupee premiums rose to 171 points from 167 points at close on Friday.

Dealers spotted some paying after a rise in overnight indexed swap rates ahead of the rate review on Tuesday and also tracking a rise in the spot rupee.

"A 25 basis point hike is nearly priced in by the market -- there can never be a fool-proof math to market levels and rate expectations, today there is some paying happening, to price in the uncertainty," said R.K. Gurumurthy, head of treasury at ING Vysya Bank. CURRENCIES VS U.S. DOLLAR Change on the day at 0640 GMT Currency Latest bid Previous day Pct Move Japan yen 87.36 87.44 +0.09 Sing dlr 1.3630 1.3705 +0.55 Taiwan dlr 32.076 32.152 +0.24 Korean won 1191.00 1198.80 +0.65 Baht 32.22 32.22 +0.00 Peso 46.18 46.32 +0.29 Rupiah 9025.00 9030.00 +0.06 Rupee 46.85 46.93 +0.17 Ringgit 3.1855 3.2000 +0.46 Yuan 6.7797 6.7803 +0.01 Change so far in 2010 Currency Latest bid End prev year Pct Move Japan yen 87.36 92.90 +6.34 Sing dlr 1.3630 1.4053 +3.10 Taiwan dlr 32.076 32.030 -0.14 Korean won 1191.00 1164.50 -2.23 Baht 32.22 33.32 +3.41 Peso 46.18 46.20 +0.04 Rupiah 9025.00 9420.00 +4.38 Rupee 46.85 46.54 -0.67 Ringgit 3.1855 3.4220 +7.42 Yuan 6.7797 6.8270 +0.70

news.alibaba.com/article/detail/markets/100367647-1-em-asia-fx-singapore-dlr-hits.html

[sandi66]

raq: Maliki, Allawi and the Premiership – Update 11 (30$)
Posted on: Mon, Jul 26, 2010
US Vice-President Joe Biden is said to have told Iraqi PM Nouri Al-Maliki and former Iraqi PM Ayad Allawi that Washington might declare a curfew in the country until a new PM is appointed. The following 421-word report tells how Iran intends to react to US curfew in Iraq and how the government issue is developing there. It also tells what initiative Syria is preparing to ease the issue.

tacticalreport.com/view_news/Iraq:_Maliki_Allawi_and_the_Premiership_%E2%80%93_Update_11/1311

[sandi66]

Al Sadr may opt to back Allawi

It is looking increasingly likely that the Iraqi cleric will reach an agreement with the former prime minister

By Sami Moubayed, Special to Gulf News

Published: 00:00 July 27, 2010


The high-profile meeting in Damascus last week between former Iraqi prime minister Eyad Allawi and Moqtada Al Sadr, a one-time rival turned potential ally, brought back strong memories of various Lebanese politicians journeying to the Syrian capital during the Civil War to hammer out their differences.

Syria has stressed that it stands at arm's length from all political players in Iraq, having hosted Ammar Al Hakim of the Supreme Iraqi Islamic Council (SIIC) in June, also with the aim of speeding up the formation of an Iraqi government, with the country having been in limbo since parliamentary elections took place in March.

Syria's mediating role in Iraq — for years ignored by the Bush White House — is now beginning to resurface. In 2006, the famous Baker-Hamilton Report advised that stability in Iraq required engagement with both Syria and Iran. Talking to both simultaneously was too difficult a proposition for the Bush team to digest and continuing to talk to neither was not working.

The Americans reasoned that talking to Syria was the more viable option, since it had no history of anti-Americanism and shared similar views on the future of Iraq to regional heavyweights such as Saudi Arabia and Turkey. The Syrians were opposed to religious clerics running Baghdad and the de-Baathification laws that unjustly punished the entire Sunni community in 2003.

These views were shared by Saudi Arabia and Turkey, who expected the Iraqi government to disarm militias, be they Shiite or Sunni, and frowned upon the idea of granting Shiites autonomy in southern Iraq, similar to Iraqi Kurdistan in the north. That would have given the Kurds and Shiites control over Iraq's oil, leaving the Sunnis in central Iraq with no oil.

More influential

The Americans also realised that while Iran had at best influence over 80 to 90 per cent of Iraqi Shiites, Syria had more wide-ranging sway. It had the ear of important Shiite leaders such as Al Sadr, for example, as well as influence in Sunni districts where Iran had no control, thanks to overlapping tribes divided between Syria and Iraq, and its historic relationship with former Baathists.

US President Barack Obama is clearly more interested in achieving results in Iraq than in the Middle East peace process. In order for him to deliver on what matters most to the Syrians — the restoration of the occupied Golan Heights — he needs stability in Iraq. Syria and Saudi Arabia have hammered out their differences over Lebanon, realising that what united them in Baghdad was greater than what divided them in Beirut.

Simply put, both were furious with how Nouri Al Maliki had handled his country's relations with the Arab world and were keen to replace him with a moderate Iraqi leader such as Allawi. The Syrians and Saudis used their influence in January 2009 to encourage high Sunni turnout in the provincial elections.

Even in areas that were once hotbeds of the Sunni insurgency such as Tikrit, Sunnis voted in large numbers for Allawi's coalition. Then, in the March 2010 elections, thanks to the backing of Riyadh and Damascus, Allawi secured 91 seats, more than either Al Maliki's 89 or the SIIC's 70 (down by 70 seats since 2005).

Iraq's kingmaker

The only leader able to tip the balance in favour of either Allawi or Al Maliki is Al Sadr, who controls 40 seats in parliament. If he puts his weight behind Al Maliki's 89 MPs and the 30 MPs of the Iraqi National Alliance (INA), who are already his allies, the incumbent premier would have 159 votes in parliament — bringing him very close to the majority of 163 required. If Al Sadr threw his weight behind Allawi, the former prime minister would have 131 seats. With Sunni backing in parliament, he too could get closer to the 163-seat majority required.

Recently, it was rumoured in Baghdad that Iran had asked Al Maliki to give in to all of Al Sadr's demands in order to secure a sustainable alliance with the Sadrists, thereby preventing Allawi's rise to the premiership. This would require an amnesty releasing all of Al Sadr's men from prison, and giving the Sadrists important government posts that they held in 2006, such as the portfolios of education, health and commerce.

Al Maliki would have to protect Al Sadr from the US dragnet, while Al Sadr would legitimise Al Maliki within his vast constituency, including the young and poor in the suburbs of Baghdad. Al Maliki would remain prime minister, while Allawi would be given the less powerful position of president of the Political Council for National Security.

Twenty-four hours after this rumour came to light, Al Sadr showed up in Damascus for talks with Allawi. This put paid to the earlier scenario, as there followed an announcement that progress over Cabinet formation was being made with the former prime minister. On Saturday, media reports said that King Abdullah Bin Abdul Aziz of Saudi Arabia would be in Damascus early in August to discuss — among other things — the situation in Iraq.

Suddenly, thanks to regional dynamics, Al Maliki's chances of securing a new term as prime minister are looking very slim indeed.

gulfnews.com/opinions/columnists/al-sadr-may-opt-to-back-allawi-1.659741

[sandi66]

Banking News: Bank of America Corp (NYSE: BAC) to Enhance Wholesale Banknotes Platform

July 26th, 2010

Bank of America Corp (NYSE: BAC)’s Merrill Lynch division announced on Friday that it would be enhancing its wholesale bank notes platform that it provides to clients, which will have “greater customization and improved functionality, demonstrating the bank’s strong commitment to Global Banknote Services. “

Merrill Lynch’s Banknotes Services business manages the import and export of U.S. dollars and other foreign currencies for financial institutions and corporates. According to a statement, “It also supports such industries as hospitality, cruise lines, gaming and theme parks. Building on its leading position in the industry, BofA Merrill has developed several enhancements that will provide more efficiency, security and flexibility for clients. “

The company wrote in a statement, “The new version of the Cruise Line Global Foreign Currency (GFC) Offline Application allows more efficient management of foreign currency on cruise ships, while “Live Rates” capabilities within the GFC system will enable clients to retrieve currency rates in real time during currency transactions. Other enhancements this year will add currency images online and improve the bank’s internal efficiencies. “

“As one of the world’s leading providers of global banknote services to financial institutions, Bank of America Merrill Lynch is dedicated to giving our clients the highest level of service,” said Kathleen Gowin, Global Wholesale Banknotes executive and head of Americas Financial Institutions Treasury Sales at BofA Merrill. “These enhancements show our commitment to banknote services, and our global footprint allows us to provide clients with all tradable currencies.”

The statement noted, “BofA Merrill provides banknote services in more than 75 countries, with an inventory of 120 currencies and several strategically located foreign currency vaults, which are electronically connected to expedite access worldwide. The bank also has extensive relationships with several central banks and other large foreign financial institutions, which leverage BofA Merrill’s global infrastructure to reduce their own commitments of capital and human resources.”

“Bank of America Merrill Lynch is a leading global provider of treasury services to financial institutions, corporates and governments,” said Paul Donofrio, head of Global Corporate Banking at BofA Merrill. “The enhancements to our banknotes business will help drive growth in key markets and enable us to provide full service, state-of-the-art integrated capabilities across paper and electronic products to our clients around the world.”

www.americanbankingnews.com/2010/07/26/bank-of-america-corp-nyse-bac-to-enhance-wholesale-banknotes-platform/

[sandi66]

Allawi and Hakim, Maliki's government have decided to strip the powers
2010-07-26 1:15:47 AM 2010-07-26 1:15:47 AM
. Decided that the Iraqi List led by Iyad Allawi and the Iraqi National Coalition led by Ammar al-Hakim yesterday, voting in the Iraqi parliament to strip the current government of its powers and make the work of the caretaker government, demanded in an extraordinary session to convene. ( ) . The President of the House of Representatives (Chairman of age) that the parliament will hold a meeting tomorrow, his second since the elections on the seventh of last March, after the trading session for representatives of the political blocs have not attended a state of law coalition led by Prime Minister outgoing Nuri al-Maliki.
" 27 ". He said in a news conference after the trading session yesterday, "after the agreement of the political blocs on Sunday, the Iraqi parliament will hold its second meeting On Tuesday, July 27, I call on all MPs to attend." . A parliamentary source said that the Iraqi parliamentary political blocs held a deliberative meeting yesterday was the third, but without the presence of members of the coalition rule of law, and that the meeting tomorrow will be in accordance with the constitutional merit.
" " . He added that the political blocs met at the parliament building in the Green Zone, to discuss the crisis forming a new government in Iraq and the distribution of the three presidencies "Parliament and of the Republic and the government," is expected to postpone the hearing tomorrow to early August . And detect the source, who requested anonymity, said the meeting discussed the project for the withdrawal of powers from the current government and make government conduct of the business and access to a compromise formula for the distribution of the three presidencies between blocks winner.
. Adnan al-Aldenbos member of the Iraqi List The meeting of representatives of the blocks yesterday did not result in anything new about the distribution of the three presidential positions. ". "I would be a session of parliament called for in order to vote on the conversion of the current government to the Government of the conduct of business."
" " ". " ". In the context of clear leadership of the National Coalition Hassan Shammari during a press conference held at the headquarters of the parliament, "" The coalition agreed with the Iraqi forces during the meeting of the political blocs to hold a special session of parliament is expected to take place in the first of August, to withdraw the powers of the current government and characterization of its work and the formation of a committee to review Rules of Procedure of the House of Representatives. "He added that" national and Iraqi forward to the presidency of the interim parliament a request for the special meeting. "
. The deputy from the Iraqi List, Falah Hassan Zeidan Iraqi National agreed to vote in the parliamentary session expected early August of a resolution making the current government a caretaker administration. . The aim is to pressure on the coalition of the rule of law is to accelerate the process of forming a government. . He stated that he would ask parliament to elect an interim president to activate the parliament, pointing out that the consortium members will attend the meeting on Tuesday a coalition of national and not in the National Alliance with the state law.
" ". For his part, leader of the Iraqi List, Abd al-Karim al-Samarrai told a news conference at the parliament building that "the current government still exercises full powers to issue instructions and orders, transportation, retirement and others, this is a constitutional violation." " 16 ". He stressed that "the government after 16 March, the government should be the conduct of business, and there are calls for internal and external calls for this sort of thing."
" 16 " " " " ". He called Samurai "the need to characterize the government's work and to review all decisions made since March 16 so far," saying that "non-performance of both houses of the presidency and the cabinet sworn in during the session of parliament is a violation of the constitution", adding that "after it ratified the Federal Court on the election results became each of the nominated and won the election as Deputy, and therefore there is no legal justification to occupy these positions by the occupants. "
" ". He emphasized that "the Iraqi National Coalition agreed on the need to hold an extraordinary session to describe the work of the government, sworn to speed up agreement on the three presidencies, and put an end to prolong the life of the open meeting, which is pressing some of the beneficiaries to prolong." " 46 " " ". He added that "after 46 days to convene parliament and even today continue to list the largest bloc in the Iraqi Council of Representatives", and called in this regard to "activate the constitution, respect the will of the voters of Iraq, mandated the formation of the Iraqi government." " " " ". The leader of the Iraqi List, was surprised by what he considered "the government deliberately disrupt the parliament," said "The state knows that its Parliament, however, the only broken today is the parliament, while the presidency and both houses of ministers working without supervision." " " " ". The Samurai, "The House of Representatives will shift at a meeting on Tuesday from the stage of disruption to the stage of effective performance," and expressed hope that "the agreement is the sharing of the three presidencies before the meeting."

**********************

Allawi and Hakim, Maliki's government have decided to strip the powers

2010-07-26 1:15:47 AM 2010-07-26 1:15:47 AM

ÞÑÑÊ ÇáÞÇÆãÉ ÇáÚÑÇÞíÉ ÈÒÚÇãÉ ÃíÇÏ ÚáÇæí æÇáÇÆÊáÇÝ ÇáæØäí ÇáÚÑÇÞí ÈÒÚÇãÉ ÚãÇÑ ÇáÍßíã ÃãÓ¡ ÇáÊÕæíÊ Ýí ÇáÈÑáãÇä ÇáÚÑÇÞí Úáì ÊÌÑíÏ ÇáÍßæãÉ ÇáÍÇáíÉ ãä ÕáÇÍíÇÊåÇ æÌÚáåÇ ÍßæãÉ ÊÕÑíÝ ÃÚãÇá¡ Ýí ÌáÓÉ ÇÓÊËäÇÆíÉ ØÇáÈÊÇ ÈÚÞÏåÇ. Decided that the Iraqi List led by Iyad Allawi and the Iraqi National Coalition led by Ammar al-Hakim yesterday, voting in the Iraqi parliament to strip the current government of its powers and make the work of the caretaker government, demanded in an extraordinary session to convene. æÃÚáä ÑÆíÓ ãÌáÓ ÇáäæÇÈ (ÑÆíÓ ÇáÓä) Ãä ÇáÈÑáãÇä ÓíÚÞÏ ÛÏÇð ÇáÌáÓÉ ÇáËÇäíÉ áå ãäÐ ÅÌÑÇÁ ÇáÇäÊÎÇÈÇÊ Ýí ÇáÓÇÈÚ ãä ãÇÑÓ ÇáãÇÖí¡ ÈÚÏ ÌáÓÉ ÊÏÇæá áããËáí ÇáßÊá ÇáÓíÇÓíÉ áã íÍÖÑåÇ ÇÆÊáÇÝ ÏæáÉ ÇáÞÇäæä ÇáÐí íÊÒÚãå ÑÆíÓ ÇáæÒÑÇÁ ÇáãäÊåíÉ æáÇíÊå äæÑí ÇáãÇáßí. The President of the House of Representatives (Chairman of age) that the parliament will hold a meeting tomorrow, his second since the elections on the seventh of last March, after the trading session for representatives of the political blocs have not attended a state of law coalition led by Prime Minister outgoing Nuri al-Maliki.

æÞÇá Ýí ãÄÊãÑ ÕÍÝí ÚÞÈ ÌáÓÉ ÇáÊÏÇæá ÃãÓ "ÈÚÏ ÇÊÝÇÞ ããËáí ÇáßÊá ÇáÓíÇÓíÉ ÃãÓ ÇáÃÍÏ ÝÅä ÇáÈÑáãÇä ÇáÚÑÇÞí ÓíÚÞÏ ÌáÓÊå ÇáËÇäíÉ íæã ÇáËáÇËÇÁ ÇáãÕÇÏÝ 27 íæáíæ æÃÏÚæ ÌãíÚ ÇáäæÇÈ Åáì ÇáÍÖæÑ". He said in a news conference after the trading session yesterday, "after the agreement of the political blocs on Sunday, the Iraqi parliament will hold its second meeting On Tuesday, July 27, I call on all MPs to attend." æÐßÑ ãÕÏÑ ÈÑáãÇäí ÚÑÇÞí Ãä ÇáßÊá ÇáÓíÇÓíÉ ÇáÈÑáãÇäíÉ ÚÞÏÊ ÃãÓ ÇÌÊãÇÚÇð ÊÏÇæáíÇð åæ ÇáËÇáË¡ áßä Ïæä ÍÖæÑ ÃÚÖÇÁ ÇÆÊáÇÝ ÏæáÉ ÇáÞÇäæä¡ æÃä ÌáÓÉ íæã ÛÏ ÓÊßæä æÝÞÇ ááÅÓÊÍÞÇÞ ÇáÏÓÊæÑí. A parliamentary source said that the Iraqi parliamentary political blocs held a deliberative meeting yesterday was the third, but without the presence of members of the coalition rule of law, and that the meeting tomorrow will be in accordance with the constitutional merit.

æÃÖÇÝ Ãä ÇáßÊá ÇáÓíÇÓíÉ ÚÞÏÊ ÇÌÊãÇÚåÇ Ýí ãÈäì ÇáÈÑáãÇä Ýí ÇáãäØÞÉ ÇáÎÖÑÇÁ ¡ áÈÍË ÃÒãÉ ÊÔßíá ÍßæãÉ ÌÏíÏÉ Ýí ÇáÚÑÇÞ æÊæÒíÚ ÇáÑÆÇÓÇÊ ÇáËáÇË "ÇáÈÑáãÇä æÇáÌãåæÑíÉ æÇáÍßæãÉ"¡ ãÊæÞÚÇ Ãä íÊã ÊÃÌíá ÌáÓÉ ÛÏ Åáì ãØáÚ ÃÛÓØÓ. He added that the political blocs met at the parliament building in the Green Zone, to discuss the crisis forming a new government in Iraq and the distribution of the three presidencies "Parliament and of the Republic and the government," is expected to postpone the hearing tomorrow to early August æßÔÝ ÇáãÕÏÑ ÇáÐí ØáÈ ÚÏã ÐßÑ ÇÓãå Ãä ÇáãÌÊãÚíä äÇÞÔæÇ ãÔÑæÚÇ áÓÍÈ ÇáÕáÇÍíÇÊ ãä ÇáÍßæãÉ ÇáÍÇáíÉ æÌÚáåÇ ÍßæãÉ ÊÕÑíÝ ÃÚãÇá æÇáæÕæá Åáì ÕíÛÉ ÊæÇÝÞíÉ áÊæÒíÚ ÇáÑÆÇÓÇÊ ÇáËáÇË Èíä ÇáßÊá ÇáÝÇÆÒÉ. And detect the source, who requested anonymity, said the meeting discussed the project for the withdrawal of powers from the current government and make government conduct of the business and access to a compromise formula for the distribution of the three presidencies between blocks winner.

æÞÇá ÚÏäÇä ÇáÏäÈæÓ ÚÖæ ÇáÞÇÆãÉ ÇáÚÑÇÞíÉ Åä ÇÌÊãÇÚ ããËáí ÇáßÊá ÃãÓ áã íÓÝÑ Úä Ãí ÔíÁ ÌÏíÏ ÍíÇá ÊæÒíÚ ÇáãäÇÕÈ ÇáÑÆÇÓíÉ ÇáËáÇË. Adnan al-Aldenbos member of the Iraqi List The meeting of representatives of the blocks yesterday did not result in anything new about the distribution of the three presidential positions. æÃÖÇÝ ÃÊæÞÚ Ãä Êßæä ÌáÓÉ ÇáÈÑáãÇä ÇáÊí ÏÚÇ ÅáíåÇ ãä ÃÌá ÇáÊÕæíÊ Úáì ÊÍæíá ÇáÍßæãÉ ÇáÍÇáíÉ Åáì ÍßæãÉ ÊÕÑíÝ ÃÚãÇá". "I would be a session of parliament called for in order to vote on the conversion of the current government to the Government of the conduct of business."



æÝí ÇáÓíÇÞ ÃæÖÍ ÇáÞíÇÏí Ýí ÇáÇÆÊáÇÝ ÇáæØäí ÍÓä ÇáÔãÑí ÎáÇá ãÄÊãÑ ÕÍÝí ÚÞÏå Ýí ãÞÑ ÇáÈÑáãÇä "Åä "ÇáÇÆÊáÇÝ ÇÊÝÞ ãÚ ÇáÚÑÇÞíÉ ÎáÇá ÇÌÊãÇÚ ÇáßÊá ÇáÓíÇÓíÉ Úáì ÚÞÏ ÌáÓÉ ÇÓÊËäÇÆíÉ ááÈÑáãÇä íÊæÞÚ Ãä ÊäÚÞÏ Ýí ÇáÃæá ãä ÃÛÓØÓ ÇáãÞÈá¡ áÓÍÈ ÕáÇÍíÇÊ ÇáÍßæãÉ ÇáÍÇáíÉ æÊæÕíÝ ÚãáåÇ æÊÔßíá áÌäÉ áãÑÇÌÚÉ ÇáäÙÇã ÇáÏÇÎáí áãÌáÓ ÇáäæÇÈ". æÃÖÇÝ Ãä "ÇáæØäí æÇáÚÑÇÞíÉ ÞÏãÇ Åáì ÑÆÇÓÉ ÇáÈÑáãÇä ÇáãÄÞÊÉ ØáÈÇ ÈÔÃä ÇáÌáÓÉ ÇáÇÓÊËäÇÆíÉ". In the context of clear leadership of the National Coalition Hassan Shammari during a press conference held at the headquarters of the parliament, "" The coalition agreed with the Iraqi forces during the meeting of the political blocs to hold a special session of parliament is expected to take place in the first of August, to withdraw the powers of the current government and characterization of its work and the formation of a committee to review Rules of Procedure of the House of Representatives. "He added that" national and Iraqi forward to the presidency of the interim parliament a request for the special meeting. "

æÃßÏ ÇáäÇÆÈ Úä ÇáÞÇÆãÉ ÇáÚÑÇÞíÉ ÝáÇÍ ÍÓä ÒíÏÇä Ãä ÇáÚÑÇÞíÉ æÇáæØäí ÇÊÝÞÇ Úáì ÇáÊÕæíÊ Ýí ÌáÓÉ ÇáÈÑáãÇä ÇáãÞÈáÉ ÇáãÊæÞÚÉ ãØáÚ ÃÛÓØÓ Úáì ÞÑÇÑ íÌÚá ãä ÇáÍßæãÉ ÇáÍÇáíÉ ÍßæãÉ ÊÕÑíÝ ÃÚãÇá . The deputy from the Iraqi List, Falah Hassan Zeidan Iraqi National agreed to vote in the parliamentary session expected early August of a resolution making the current government a caretaker administration. æÃæÖÍ Ãä ÇáåÏÝ åæ ÇáÖÛØ Úáì ÇÆÊáÇÝ ÏæáÉ ÇáÞÇäæä ßí íÊã ÇáÅÓÑÇÚ ÈÚãáíÉ ÊÔßíá ÇáÍßæãÉ. The aim is to pressure on the coalition of the rule of law is to accelerate the process of forming a government. æÐßÑ Ãäå ÓíØáÈ ãä ÇáÈÑáãÇä ÇÎÊíÇÑ ÑÆíÓ ãÄÞÊ áÊÝÚíá ÇáÈÑáãÇä¡ áÇÝÊÇð Åáì Ãä ÃÚÖÇÁ ÇáÇÆÊáÇÝ ÓíÍÖÑæä ÌáÓÉ íæã ÛÏ ÇáËáÇËÇÁ ßÇÆÊáÇÝ æØäí æáíÓ Öãä ÇáÊÍÇáÝ ÇáæØäí ãÚ ÏæáÉ ÇáÞÇäæä. He stated that he would ask parliament to elect an interim president to activate the parliament, pointing out that the consortium members will attend the meeting on Tuesday a coalition of national and not in the National Alliance with the state law.

ãä ÌÇäÈå ÃæÖÍ ÇáÞíÇÏí Ýí ÇáÞÇÆãÉ ÇáÚÑÇÞíÉ ÚÈÏ ÇáßÑíã ÇáÓÇãÑÇÆí Ýí ãÄÊãÑ ÕÍÝí ÈãÈäì ÇáÈÑáãÇä Ãä "ÇáÍßæãÉ ÇáÍÇáíÉ áÇ ÊÒÇá ÊãÇÑÓ ÕáÇÍíÇÊ ßÇãáÉ æÊÕÏÑ ÇáÊÚáíãÇÊ æÇáÃæÇãÑ æÇáäÞá æÇáÅÍÇáÉ Úáì ÇáÊÞÇÚÏ æÛíÑåÇ æåÐÇ íÚÊÈÑ ãÎÇáÝÉ ÏÓÊæÑíÉ". For his part, leader of the Iraqi List, Abd al-Karim al-Samarrai told a news conference at the parliament building that "the current government still exercises full powers to issue instructions and orders, transportation, retirement and others, this is a constitutional violation." æÃßÏ Ãä "ÇáÍßæãÉ ÈÚÏ 16 ãÇÑÓ ßÇä íÌÈ Ãä Êßæä ÍßæãÉ ÊÕÑíÝ ÃÚãÇá¡ æåäÇß äÏÇÁÇÊ ÏÇÎáíÉ æÎÇÑÌíÉ ÊØÇáÈ ÈåÐÇ ÇáÔíÁ ". He stressed that "the government after 16 March, the government should be the conduct of business, and there are calls for internal and external calls for this sort of thing."

æØÇáÈ ÇáÓÇãÑÇÆí "ÈÖÑæÑÉ ÊæÕíÝ Úãá ÇáÍßæãÉ æÅÚÇÏÉ ÇáäÙÑ Èßá ÇáÞÑÇÑÇÊ ÇáÊì ÕÏÑÊ ãäÐ 16 ãÇÑÓ ÍÊì ÇáÂä"¡ ãÚÊÈÑÇð Ãä "ÚÏã ÃÏÇÁ ãÌáÓí ÇáÑÆÇÓÉ æÇáæÒÑÇÁ ááíãíä ÇáÏÓÊæÑíÉ ÎáÇá ÚÞÏ ÌáÓÉ ÇáÈÑáãÇä íÚÏ ãÎÇáÝÉ ÏÓÊæÑíÉ"æÃæÖÍ Ãäå "ÈÚÏ Ãä ÕÇÏÞÊ ÇáãÍßãÉ ÇáÇÊÍÇÏíÉ Úáì äÊÇÆÌ ÇáÇäÊÎÇÈÇÊ ÃÕÈÍ ßá ãä ÑÔÍ æÝÇÒ Ýí ÇáÇäÊÎÇÈÇÊ äÇÆÈÇ¡ æÈÇáÊÇáí áÇ íæÌÏ ãÈÑÑ ÞÇäæäì Ãä ÊÔÛá åÐå ÇáãäÇÕÈ ãä ÞÈá ÔÇÛáíåÇ". He called Samurai "the need to characterize the government's work and to review all decisions made since March 16 so far," saying that "non-performance of both houses of the presidency and the cabinet sworn in during the session of parliament is a violation of the constitution", adding that "after it ratified the Federal Court on the election results became each of the nominated and won the election as Deputy, and therefore there is no legal justification to occupy these positions by the occupants. "

æÃßÏ Ãä "ÇáÚÑÇÞíÉ æÇáÇÆÊáÇÝ ÇáæØäì ÇÊÝÞÇ Úáì ÖÑæÑÉ ÚÞÏ ÌáÓÉ ÇÓÊËäÇÆíÉ áÊæÕíÝ Úãá ÇáÍßæãÉ¡ æÃÏÇÁ Çáíãíä ÇáÏÓÊæÑíÉ áÊÓÑíÚ ÇáÇÊÝÇÞ Úáì ÇáÑÆÇÓÇÊ ÇáËáÇË¡ ææÖÚ ÍÏ áÅØÇáÉ ÚãÑ ÇáÌáÓÉ ÇáãÝÊæÍÉ ÇáÊí ÊÖÛØ ÈÚÖ ÇáÃØÑÇÝ ÇáãÓÊÝíÏÉ áÅØÇáÊåÇ". He emphasized that "the Iraqi National Coalition agreed on the need to hold an extraordinary session to describe the work of the government, sworn to speed up agreement on the three presidencies, and put an end to prolong the life of the open meeting, which is pressing some of the beneficiaries to prolong." æÃÖÇÝ Ãäå "ÈÚÏ ãÑæÑ 46 íæãÇ Úáì ÚÞÏ ÌáÓÉ ÇáÈÑáãÇä æÍÊì Çáíæã ãÇ ÒÇáÊ ÇáÞÇÆãÉ ÇáÚÑÇÞíÉ ÇáßÊáÉ ÇáÃßÈÑ ÏÇÎá ãÌáÓ ÇáäæÇÈ"¡ ãØÇáÈÇ ÈåÐÇ ÇáÕÏÏ ÈÜ"ÊÝÚíá ÇáÏÓÊæÑ¡ æÇÍÊÑÇã ÅÑÇÏÉ ÇáäÇÎÈ ÇáÚÑÇÞí¡ æÊßáíÝ ÇáÚÑÇÞíÉ ÈÊÔßíá ÇáÍßæãÉ". He added that "after 46 days to convene parliament and even today continue to list the largest bloc in the Iraqi Council of Representatives", and called in this regard to "activate the constitution, respect the will of the voters of Iraq, mandated the formation of the Iraqi government." æÃÚÑÈ ÇáÞíÇÏí Ýí ÇáÞÇÆãÉ ÇáÚÑÇÞíÉ Úä ÇÓÊÛÑÇÈå ããÇ ÇÚÊÈÑå "ÊÚãÏ ÇáÍßæãÉ ÊÚØíá ÇáÈÑáãÇä"¡ æÞÇá Åä "ÇáÏæáÉ ÊÚáã Ãä äÙÇãåÇ ÈÑáãÇäí¡ æãÚ Ðáß ÝÅä ÇáÌåÉ ÇáæÍíÏÉ ÇáãÚØáÉ Çáíæã åí ÇáÈÑáãÇä¡ Ýí Ííä ãÌáÓí ÇáÑÆÇÓÉ æÇáæÒÑÇÁ íÚãáÇä ãä Ïæä ÑÞÇÈÉ". The leader of the Iraqi List, was surprised by what he considered "the government deliberately disrupt the parliament," said "The state knows that its Parliament, however, the only broken today is the parliament, while the presidency and both houses of ministers working without supervision." æÃßÏ ÇáÓÇãÑÇÆí Ãä "ãÌáÓ ÇáäæÇÈ ÓíÊÍæá Ýí ÌáÓÉ íæã ÛÏ ÇáËáÇËÇÁ ãä ãÑÍáÉ ÇáÊÚØíá Åáì ãÑÍáÉ ÇáÃÏÇÁ ÇáÝÚÇá"¡ ãÚÑÈÇ Úä Ããáå ÈÃä "íÊã ÇáÇÊÝÇÞ Úáì ÊÞÇÓã ÇáÑÆÇÓÇÊ ÇáËáÇË ÞÈá ÚÞÏ ÇáÌáÓÉ". The Samurai, "The House of Representatives will shift at a meeting on Tuesday from the stage of disruption to the stage of effective performance," and expressed hope that "the agreement is the sharing of the three presidencies before the meeting."

[sandi66]

Iraq: Maliki, Allawi and the Premiership

Washington might declare a curfew in the country until a new PM is appointed

Posted on: Mon, Jul 26, 2010

US Vice-President Joe Biden is said to have told Iraqi PM Nouri Al-Maliki and former Iraqi PM Ayad Allawi that Washington might declare a curfew in the country until a new PM is appointed. The following 421-word report tells how Iran intends to react to US curfew in Iraq and how the government issue is developing there. It also tells what initiative Syria is preparing to ease the issue.

tacticalreport.com/view_news/...Update_11/1311

[sandi66]

translate.google.com/translat...d%3D1280141355

Iraq: tomorrow to vote on my presidency, parliament and the republic and have been asked to form a government

Baghdad (News) .. Revealed that the Iraqi List, a hearing on Gdalthelathae House of Representatives will vote secretly on my presidency of parliament and the republic.


The official spokesman for the Iraqi List Rahim Al Shammari (of the Agency by news) on Monday: The session will see the House of Representatives tomorrow to vote on the posts of my presidency, parliament and the Republic by secret ballot and will be assigned to a candidate Iraqi List to form a government As the larger blocs in the parliament. Noting that the Iraqi plan to complete the formation of the new government before the month of Ramadan.

He Shammari: The blocks of political will also determine at the same meeting that the current government a caretaker administration and accountability of the Prime Minister outgoing decisions since 16 / 3 so far.

It was a meeting between the Iraqi List led by Iyad Allawi and the National Coalition, led by Hakim address the possibility of submitting the draft to withdraw the powers of the Maliki government and transferred to the Ministry of the conduct of business.

It is noted that political blocs discussed a few days ago The idea of electing a temporary chairman of the House can resume its normal and the oversight role on the current government until the formation of a new government. / End /. (7. T. M)

Date of article 26 July 2010 05:49 AM




translate.google.ca/translate...3Den%26tl%3Dar


ty David

[sandi66]

BIS: Govs, Heads Reach Broad Agreement On Cap,Liquid Rfrms-2

First Published Monday, 26 July 2010 06:55 pm - © 2010 Need to Know News

FRANKFURT (MNI) - The following is the second part of the annex of a press release on capital and liquidity reforms issued Monday by the Bank for International Settlements, in Basel, Switzerland.

B. Transition to the leverage ratio

The Committee agreed to divide the transition period into the following milestones:

--The supervisory monitoring period commences 1 January 2011. The supervisory monitoring process will focus on developing templates to track in a consistent manner the underlying components of the agreed definition and the resulting ratio.

--The parallel run period commences 1 January 2013 and runs until 1 January 2017. During this period, the leverage ratio and its components will be tracked, including its behaviour relative to the risk based requirement. Bank level disclosure of the leverage ratio and its components will start 1 January 2015. The Committee will closely monitor disclosure of the ratio.

Based on the results of the parallel run period, any final adjustments would be carried out in the first half of 2017 with a view to migrating to a Pillar 1 treatment on 1 January 2018 based on appropriate review and calibration.

IV. Regulatory buffers, provisions, and cyclicality of the minimum
Regulatory buffers

The Committee has issued for consultation a countercyclical buffer proposal, with comments due by 10 September 2010. A fleshed out version of the conservation buffer proposal was already issued as part of the December 2009 consultative package and remains unchanged. The two proposals will be finalised jointly by the end of this year.

The capital conservation buffer should be available to absorb banking sector losses conditional on a plausibly severe stressed financial and economic environment. The countercyclical buffer would extend the capital conservation range during periods of excess credit growth, or other indicators deemed appropriate by supervisors for their national contexts. Both buffers could be run down to absorb losses during a period of stress.

Mitigating cyclicality of the minimum

The December 2009 proposal included possible approaches to address any excess cyclicality of the minimum requirement. The Committee, through its quantitative impact study (QIS), has collected data to assess the impact of these approaches, the purpose of which is to adjust for the compression of probability of default (PD) estimates in the internal ratings based approach during benign credit conditions by using PD estimates for a banks portfolios in downturn conditions. This work also will be informed by the findings of the Committees Capital Monitoring Group on the cyclicality of the minimum requirement. The output would be a set of supervisory tools to assess the adequacy of banks capital buffers in relation to the differing ratings methodologies used by banks.

Forward looking provisioning

While capital focuses on unexpected losses, the Committee also has developed a concrete proposal to operationalise the expected loss approach to provisioning proposed by the IASB. The Committee sent a comment letter to the IASB on 30 June 2010 in which it spelled out its proposed approach. The Committee has been in close dialogue with the IASB on this topic.

V. Systemic banks, contingent capital and a capital surcharge
In addition to the reforms to the trading book, securitisation, counterparty credit risk and exposures to other financials, the Group of Governors and Heads of Supervision agreed to include the following elements in its reform package to help address systemic risk:

--The Basel Committee has developed a proposal based on a requirement that the contractual terms of capital instruments will allow them at the option of the regulatory authority to be written-off or converted to common shares in the event that a bank is unable to support itself in the private market in the absence of such conversions. At its July meeting, the Committee agreed to issue for consultation such a gone concern proposal that requires capital to convert at the point of non-viability.

--It also reviewed an issues paper on the use of contingent capital for meeting a portion of the capital buffers. The Committee will review a fleshed-out proposal for the treatment of going concern contingent capital at its December 2010 meeting with a progress report in September 2010.

--Undertake further development of the guided discretion approach as one possible mechanism for integrating the capital surcharge into the Financial Stability Boards initiative for addressing systemically important financial institutions.

Contingent capital could also play a role in meeting any systemic surcharge requirements.

VI. Global liquidity standard

A. Liquidity coverage ratio (LCR)

Governors and Heads of Supervision also agreed on the Basel Committees concrete proposals to recalibrate the stress scenarios to achieve a conservative bank level and plausibly severe system wide shock. The Committee also made revisions to the definition of qualifying liquid assets subject to the overall requirement that such assets remain prudently liquid in periods of stress. The goal is to achieve a calibration and definition that penalises imprudent liquidity profiles, while minimising system level distortions. Specifically, Governors and Heads of Supervision endorsed the Committees following revisions to the December proposal. The Committee will review the impact of these changes to ensure that they deliver a rigorous overall liquidity standard.

--Retail and SME deposits: Lower the run-off rate floors to 5% (stable) and 10% (less stable), respectively (from 7.5% and 15%). These numbers are floors and jurisdictions are expected to develop additional buckets with higher run-off rates as necessary.

--Operational activities with financial institution counterparties: Introduce a 25% outflow bucket for custody and clearing and settlement activities, as well as selected cash management activities. These activities will be clearly defined in the final rule and would require specific supervisory approval before the funds specifically related to those activities could be considered "operational" (ie not all funds from the counterparty would qualify). The bank that has deposited the operational deposits would receive a 0% inflow recognition for those deposits, as those funds would be expected to remain at the other bank during a time of stress. The Committee also is in the process of discussing the treatment of cooperative and savings bank networks and will provide a concrete proposal for consideration at the September 2010 BCBS meeting.

--Deposits from domestic sovereigns, central banks, and public sector entities (PSEs):

For unsecured funding, treat all (both domestic and foreign) sovereigns, central banks and PSEs as corporates (ie with a 75% roll-off rate), rather than as financial institutions with a 100% roll-off rate.

For secured funding backed by assets that would not be included in the stock of liquid assets, assume a 25% roll-off of funding.
--Secured funding: Only recognise roll-over of transactions backed by liquidity buffer eligible assets.

--Undrawn commitments: Lower retail and SME credit lines from 10% to 5%. Treat sovereigns, central banks, and PSEs similar to non-financial corporates, with a 10% run-off for credit lines and a 100% run-off for liquidity lines.

--Inflows: Rather than leave it to bank discretion to determine the percentage of "planned" net inflows, establish a concrete harmonised treatment in the standard that reflects supervisory assumptions.

--Definition of liquid assets: All assets in the liquidity pool must be managed as part of that pool and are subject to operational requirements. The December 2009 proposal outlined that the assets must be available for the treasurer of the bank, unencumbered, and freely available to group entities. The Committee will finalise these operational requirements by the end of this year.

As part of the narrow definition of liquid assets, allow the inclusion of domestic sovereign debt for non-0% risk weighted sovereigns, issued in foreign currency, to the extent that this currency matches the currency needs of the bank's operations in that jurisdiction.

--Introduce a "Level 2" of liquid assets with a cap that allows up to 40% of the stock to be made up of these assets.

--Include (with a 15% haircut) government and PSE assets qualifying for the 20% risk weighting under Basel II's standardised approach for credit risk, as well as high quality non-financial corporate and covered bonds not issued by the bank itself (eg rated AA- and above), also with a 15% haircut.

--Utilise both ratings and additional criteria as outlined in the December proposal (bid-ask spreads, price volatility, etc) to determine eligibility.

Develop standards for review at the September 2010 BCBS meeting for jurisdictions which do not have sufficient Level 1 assets to meet the standard.

www.automatedtrader.net/real-time-news/50891/bis-govs--heads-reach-broad-agreement-on-cap-liquid-rfrms_2

[sandi66]

UN to play a role in Iraq’s political stalemate

Monday, July 26th 2010 2:04 PM

Erbil, July 26 (AKnews) – An Iraqi Kurdish lawmaker said on Monday that the United Nations’ Security Council may interfere in the process of government formation in Iraq if the country’s political factions fail to reach an agreement soon.

Parliament member Mahmoud Othman told AKnews that the United Nations’ Secretary General is also expected to issue a statement on the current political deadlock in Iraq.

He said that the UN will also discuss efforts to end Iraq’s Chapter 7 status in an upcoming meeting of the Security Council. But he said the international body is not likely to exert “meaningful pressure” on Iraqi political parties on setting up a new government.

Iraq has been placed under the UN Chapter 7 status since its invasion of Kuwait in 1990. According to the chapter, Iraq is still recognized a threat against international peace and security.
More than four months after the country's parliamentary elections, Iraqi political groups have not been able yet to form a new government.

Meanwhile, Haidar Mullah, a parliamentarian from al-Iraqiya bloc, expressed his wish for the UN to play a role to help Iraqis get out of the current political crisis.

But he also called on Iraqi groups to come up with an agreement on their own, because UN efforts might negatively impact the situation in the country.

Iraqi lawmakers will meet tomorrow and may elect a speaker and two deputies.

Al-Iraqiya came in first place during the country’s parliamentary elections last March with 91 seats. Current Prime Minister Nouri al-Maliki’s State of Law Coalition ended up second with 89 seats. The Iraqi national Alliance, dominated by Muqtada Sadr’s group, came third with 71 seats. A coalition of Kurdish groups came forth with 57 seats.

Ba/Ms/AKnews


ty David

[sandi66]

Naked Short-Selling Ban Coming into Force in Germany



Published: Monday, 26 Jul 2010 | 9:55 AM ET

A law to ban naked short selling in Germany will come into force on Tuesday after having been approved by the parliament earlier this month.

Naked short selling means selling securities without borrowing the underlying assets, in the hope of buying them later at a lower price.



The German government unilaterally imposed a ban on naked short selling of some financial market instruments and some shares in May, and it widened it to include all German shares in June.



Initially the ban only applied for stocks of Germany's biggest banks, government bonds and related credit default swaps (CDS).



The abrupt initial ban rattled financial markets, with analysts saying unilateral action by one government suggested lack of unity in combating the market turmoil from Europe's government debt crisis.



Politicians and many others argue that markets' behavior worsened Europe's debt crisis. In Germany, there have been increasing calls across the political spectrum for tougher regulation.



www.cnbc.com/id/38412190


ty joye

[sandi66]

... Alex. Brown also played a key role in refinancing the Carlyle Group for its acquisition of United Defense Technologies in 2000."


maxkeiser.com/



“Suicide Speculators: ‘The Story of How Wall St. Bankers Bet on Their Own 9/11 Deaths’ (BROKZ:PMF)



Why did this guy quit the Alex Brown unit of Deutsche Bank on Sept 12 2001?


www.mayoshattuck.net/index.html


"From 1997 to 1999, Mayo Shattuck served as Vice Chairman of Bankers Trust Corporation, which merged with Deutsche Bank in June 1999. From 1991 until 1997, Mr. Shattuck was President and Chief Operating Officer and a Director of Alex. Brown Inc., which merged with Bankers Trust in September 1997."

Feb 2002
Enron’s Deals Were Marketed to Companies by Wall Street
www.nytimes.com/2002/02/14/business/14TRUS.html?pagewanted=1

"Bankers at Citigroup , Credit Suisse First Boston and Deutsche Banc Alex. Brown found ways for Enron to remove lagging assets from its balance sheet by selling bonds backed by Enron’s stock"
(Mike Ruppert)


www.fromthewilderness.com/free/ww3/010306_end_grid.shtml


"A close associate of CFR powerhouses like Peter G. Petersen and Steven Bechtel of the Bechtel Corporation, Shattuck is today the President and CEO of Constellation Energy Group, one of the firms that gained access to Vice President Dick Cheney’s energy task force, the one from which the Bush administration is unconstitutionally refusing to release the records.
(NEPDG)

Alex. Brown also played a key role in refinancing the Carlyle Group for its acquisition of United Defense Technologies in 2000."

maxkeiser.com/


ty joye

[sandi66]

Obama urges liberals to ‘keep up the fight’
The Associated Press

Tuesday, July 27, 2010 | 12:18 a.m.

President Barack Obama and Democratic leaders sought to soothe relations with the party's disgruntled left wing Saturday in advance of elections in which Republican gains could upend the White House agenda.

"Change hasn't come fast enough for too many Americans. I know that," Obama said in a surprise video appearance to liberal activists and bloggers at Las Vegas convention. "I know it hasn't come fast for many of you who fought so hard during the election."

In a year when Democrats are expected to lose seats in Congress, party leaders have grown increasingly concerned with malaise running through the left wing. Liberals who helped elect Obama in 2008 have grown disenchanted on issues from the ongoing wars in Iraq and Afghanistan to the failure to create a government-run insurance option in the health care overhaul, and many believe the White House has been too accommodating with Republicans.

In his remarks to the annual Netroots Nation gathering, the president said the combat mission in Iraq would soon end, and that the administration is working to repeal the military's "don't ask, don't tell" policy for gays and close the U.S. prison for terrorism suspects at Guantanamo Bay.

"In ways large and small we've begun to deliver on the change you fought so hard for," Obama said.

"We cant afford to slide backward. And that's the choice America faces this November," he added. "Keep up the fight."

Conservative bloggers and activists were meeting in a hotel nearby in what amounted to a rival convention, where Nevada Senate candidate Sharron Angle, a tea party favorite, called for support to oust Senate Majority Leader Harry Reid.

Obama's message was amplified by Reid and House Speaker Nancy Pelosi, who called for setting aside differences to elect Democratic candidates.

Reid earned a burst of applause by telling the Netroots Nation crowd, "I know that there are times, I'm told, I get on your nerves."

He said there might be differences from time to time but "let's all understand this county would be in a lot more trouble if we weren't around."

House Speaker Nancy Pelosi, who introduced Obama's video, asked the crowd to recognize what's been achieved in Washington since Obama's election and not let differences cause a political fissure.

The day after the election "we want to have no regrets," Pelosi said.

Hundreds of activists and bloggers applauded warmly after the Obama video ended, but some were not appeased.

The video "doesn't really change my views. I'm still waiting for action," said Matthew Filipowicz, 33, a cartoonist and comedian from Chicago. "Words only do so much."

Pelosi received a standing ovation from most of the people in the cavernous, partly filled auditorium at a Las Vegas casino.

When asked a question about the military policy on gay servicemembers, someone shouted from the audience.

"Your impatience is justified," Pelosi responded.

Just two days after Senate Democrats gave up plans to attempt to pass an energy bill that caps greenhouse gases blamed for global warming, Pelosi said "this is not an issue the Senate can walk away from."

The plan was a priority of Obama, who had hoped to add a climate bill to his list of legislative successes.

"We'll welcome whatever the Senate can pass to reduce our dependence on foreign oil," Pelosi said. "Sooner or later this has to happen."

Reid lamented GOP opposition to the bill and said new, albeit trimmed down, legislation would be introduced. He has said previously it would crack down on oil giant BP PLC, boost energy efficient homes and provide incentives to convert many of the nation's large trucks from diesel fuel to natural gas.

www.lasvegassun.com/news/2010/jul/27/obama-urges-liberals-to-keep-up-the-fight/

[sandi66]

News Summary
July 26, 2010 - 12:37:59
BAGHDAD / Aswat al-Iraq: Following is a summary of news reports posted until 04:00 p.m. Baghdad local time Monday – July 26:

*Politics:

BAGHDAD - The Iraqi Council of Ministers has decided to compensate Iraqi Kurds damaged by Iranian bombing of the Kurdistan Region.

BAGHDAD - Kurd political blocs want an Iraqi Kurd to hold the position of Iraq’s President, Iraqi Deputy Prime Minister Rowsch Nuri Shaways (Kurd) told the press on Monday.

BAGHDAD - Leaders of the Al-Iraqiya Alliance are currently in a meeting, Hussein al-Shaalan, a leading figure of the Al-Iraqiya, said on Monday.

*Security:

BAGHDAD - Three of the Al-Arabiya TV staff members in Baghdad have been wounded on Monday in a suicide car bombing in central Baghdad.

BAGHDAD -: Lawmaker Salam al-Zobaee said on Monday that four of his guards’ vehicles were set on fire in the suicide bombing that targeted the Al-Arabiya TV office in Baghdad.

BAGHDAD - The Al-Arabiya TV station’s office in the al-Harthiya neighborhood, central Baghdad, has been totally destroyed in the suicide bombing that targeted the office on Monday.

BAGHDAD - Three of the Al-Arabiya TV station’s staff members in Baghdad were killed on Monday and another wounded in the suicide bombing that targeted the station’s office in the al-Harthiya neighborhood, central Baghdad, said the spokesperson of the Baghdad Operations Command (BOC).

BAGHDAD - Four people were killed on Monday and at least 10 others were wounded in the suicide bombing that targeted the Al-Arabiya TV office in the Iraqi capital, said the official spokesperson of the Baghdad Operations Command (BOC).

BAGHDAD - Lawmaker Salam al-Zobaee of the Al-Iraqiya Alliance has been wounded as well as three of his guards in the suicide bombing that targeted the Al-Arabiya TV station’s office in Baghdad on Monday.

BAGHDAD - Four people were killed and 15 others wounded in the suicide car bombing that targeted the Al-Arabiya TV station’s office in Baghdad on Monday, said a source from the Iraqi police.

*Economy:

MISSAN - A new industrial area will be introduced to replace the old one east of Amara city, Missan province.

*Sports:

BAGHDAD - Iraq has won four medals in the Weightlifting World Tournament for the Disabled currently taking place in Malaysia.

*Variety:

BAGHDAD - Tareq Mahir, one of the Al-Arabiya TV station’s reporters in Baghdad, refused to talk to Aswat al-Iraq news agency, because he was busy rescuing his wounded colleagues who fell in the blast that targeted the station’s office in Baghdad on Monday.

en.aswataliraq.info/?p=134922

**************************



Urgent / Mullen in Baghdad
July 27, 2010 - 10:46:42
BAGHDAD / Aswat al-Iraq: U.S. Joint Chief of Staff Mike Mullen arrived in Baghdad on Tuesday to complete the plans of his troops’ withdrawal from Iraq in August 2010.

The al-Iraqiya state-run TV station reported the event.

en.aswataliraq.info/?p=134970

[sandi66]

Iraq: Political blocs postpone Parliament’s session
July 27, 2010 - 09:18:57
BAGHDAD / Aswat al-Iraq: Representatives of political blocs had a meeting on Tuesday, and they decided to keep the Iraqi Parliament’s first session open until the blocs reach an agreement regarding the three major positions in Iraq: presidency, premiership, and Parliament’s speakership.

“They agreed that the Parliament will not have a session today,” a source close to the meeting told Aswat al-Iraq news agency.

He noted that they also agreed to proceed in dialogue to set the schedule of the Parliament’s next session that would be held during the coming days.

en.aswataliraq.info/?p=134957

[sandi66]

Tax Revenue Creeps Up, but Can't Fill State Budget Gaps

Published: Tuesday, 27 Jul 2010 | 8:36 AM ET

State tax revenue is improving, but only slightly, and may not be enough to end steep spending cuts or replace the loss of assistance from the federal stimulus plan that expires in December, according to a report Tuesday.



The National Conference of State Legislatures said states faced a collective budget gap of $83.9 billion when creating their budgets for fiscal 2011, which for most began on July 1.

Officials surveyed by the group, which represents state lawmakers, said revenue was beginning to pick up or at least slow its rate of decline. Nearly every state expects tax collections this fiscal year to surpass last year's.

"For the first time in a long time we're seeing some slight improvement in the state revenue situation," Corina Eckl, the NCSL's fiscal program director, said in a statement accompanying the report. "But glimmers of improvement are tarnished by looming problems."

Already, 33 states are forecasting budget gaps for fiscal 2012 and 23 anticipate shortfalls for fiscal 2013, highlighting the fragile state of their finances. Last year's collapse in state revenue — one of the largest on record — has shaken all parts of the U.S. economy.

Investors in the U.S. municipal bond market wonder about the future of debt issuance as state deficits swell.

Public employees see threats to their livelihoods and pensions as governments turn to layoffs. Citizens worry how the revenue crash will affect spending on schools and other services, and whether their tax bills will rise.

There are also concerns states will lead the country into a "double dip" recession. All except Vermont are required by law to balance their budgets.

Last week, Federal Reserve Chairman Ben Bernanke said state and local government budgets are reducing the speed of the recovery from the economic recession that began in 2007. He warned that in order to balance budgets, those governments would likely cut "several hundred thousand jobs."

White House Chair of the Council of Economic Advisers Christina Romer has said state budget shortfalls will be equal to about 1 percent of the country's gross domestic product.

The Center on Budget and Policy Priorities, a think tank that tracks state economic conditions, said earlier this month the recession had caused the steepest decline in state tax receipts on record and that more than 30 states raised taxes.

At least 46 states started fiscal 2011 addressing a shortfall. The Center estimated budget gaps for the fiscal year will total $121 billion, 44 percent higher than the forecast from the state legislatures.

The U.S. Census has also found state revenue is picking up, with state and local government tax revenue rising 0.82 percent in the first quarter of 2010. The Rockefeller Institute of Government, a New York-based research group, recently said overall state tax revenue rose 2.5 percent in the first quarter.

Still, those increases are not enough to push revenue back to pre-recession levels, the NCSL found.

"State lawmakers are going to need extra stamina to push through this next round of budget challenges," said William Pound, executive director of the NCSL. "It will be a long march before state revenues return to their pre-recession levels, not to mention other hurdles lawmakers have to clear."

The economic stimulus plan passed last year included the largest transfer of funds from the U.S. government to states, at $135 billion, but the aid runs out in less than six months.

Measures in Congress to extend some of that aid have stalled over fiscal conservatives' concerns about the deficit. Without the extension of Medicaid money, states will face new budget shortfalls topping $10 billion, the NCSL found.

Medicaid is the healthcare program for the poor, jointly administered by states and the U.S. government, which takes up 20 percent of state budgets. The stimulus boosted federal reimbursements for the program, freeing up money for other programs.

At least 25 states will have new budget gaps if the enhanced reimbursements are not continued for another six months, according to the NCSL, with 21 of those gaps greater than $100 million. Texas, North Carolina, New York and California risk having budget shortfalls of more than $1 billion.

www.cnbc.com/id/38426943

[sandi66]

Berlin expects to agree Basel accord
By James Wilson in Frankfurt

Published: July 27 2010 20:54 | Last updated: July 27 2010 20:54

Germany’s bank regulator has dismissed concerns that the country is unhappy with international proposals revealed this week to strengthen lenders against a financial crisis.

Jochen Sanio, head of Bafin, the financial services supervisor, said Germany expected to reach agreement on schedule this year but had expressed reservations this week because important elements of the proposals remained unclear.

Germany was the solitary holdout when the Basel Committee on Banking Supervision announced on Monday what it called the “main design elements” of proposals for future regulation, including tightening banks’ capital requirements and leverage standards.

The committee, made up of central bank governors and regulators, said “one country” – Germany – “still has concerns and has reserved its position” until later this year. Mr Sanio told the Financial Times: “You can only reach the final agreement on the whole capital accord. Until now we have only seen some partial portions. We are waiting now for the finalisation of the Basel III package. We want the accord to be delivered in time for November’s G20 summit in Korea.”

The Basel committee has still to set a key element of its plans: the amount of capital that must be held relative to a bank’s risk-weighted assets.

“What is still lacking is calibration,” said Mr Sanio. “Without it we cannot assess the impact for the German banking system.”

Other German officials said the country was concerned about the impact of the Basel standards on smaller savings banks that fund many small and medium businesses. These banks do not raise equity capital and rely heavily on retained earnings.

Mr Sanio denied that any part of the German banking system was particularly under threat from the proposals. But he said: “The programme of Basel III is not only to increase the quantity of capital but also to refine the quality of capital. By doing so we will eliminate parts of banks’ actual capital base, which will make it more difficult to increase the quantity in the end. That’s why the defining elements of capital are so important.”

Some analysts believe German public sector banks could face a need to raise funds because certain types of capital might be less highly regarded.

“We want a robust, functioning banking system that is able to service the financing needs of the real economy,” Mr Sanio said.

Financial markets welcomed the committee’s changes, which suggested the standards could be less onerous. Shares in French and European lenders rose

www.ft.com/cms/s/0/51fe7d50-99a8-11df-a852-00144feab49a.html