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

[sandi66]

Obama, Wen Pledge Cooperation on Economic Issues

By Kate Andersen Brower and Julianna Goldman -

Sep 23, 2010 3:09 PM ET

President Barack Obama and Chinese Premier Wen Jiabao pledged their countries to closer cooperation on economic issues to foster the global recovery.

In remarks to reporters before a meeting at the United Nations in New York, the two leaders didn’t directly address the friction points between China and the U.S., including China’s currency valuation and trade.

Both subjects were addressed at length during their one-on- one conversation, and Obama told Wen the U.S. wants to see a more rapid and “significant” rise in the yuan’s value, Jeff Bader, Obama’s director of Asian affairs, said at a briefing later.

Obama said China has been an “outstanding partner” and its work with the U.S. is “absolutely critical” in dealing with the financial crisis.

“Obviously we continue to have more work to do on the economic front,” Obama said. More discussions are needed to achieve “balance and sustained economic growth.”

Wen said through a translator the common interests of the U.S. and China “far outweigh” any differences. He also said he wants to “foster favorable conditions” for a U.S. visit by President Hu Jintao sometime next year.

Political pressure is building on Obama to take a more aggressive stance on China’s currency policy, which he has said is valued lower than the market would indicate and gives China an advantage in trade. China overtook Japan in the second quarter as the world’s second-largest economy after the U.S.

Trade Deficit

The U.S. trade deficit with China widened to $145 billion in the first seven months of this year, from $123 billion for the same period in 2009. The deficit is widening at a time when Obama is dealing with a sluggish economic recovery in the U.S. and an unemployment rate of 9.6 percent.

The yuan has appreciated about 2 percent against the dollar since June 19, when the central bank said it would pursue a more flexible exchange rate after keeping the currency at about 6.83 versus the U.S. currency for almost two years.

“The president talked about the importance of our trading relation in general and the currency issue specifically,” Bader told reporters. Obama told Wen that China needs to “do more than it has done to date” and described it as “the most important issue” in their talks.

‘Rapid’ Revaluation

“We look to see more rapid and a significant” revaluation “in the months to come,” Bader said. The Chinese also know “we were disappointed” that there hasn’t been much movement in the yuan’s value since the central bank’s decision, he said.

Chinese leaders are aware of the building momentum in the U.S. Congress for action to restrict China’s imports over the currency issue, Bader said.

“There was a lengthy discussion of the impact and the politics of the issue,” Bader said, characterizing the meeting as having a “positive tone.”

Wen reiterated China’s intention “to continue with reform of their exchange rate mechanism,” he said.

At a hearing of the House Financial Services Committee yesterday, U.S. Treasury Secretary Timothy F. Geithner repeated his assertion that the yuan is “significantly undervalued.”

Pressure from Congress

House Democratic leaders say they are moving forward with legislation intended to push China to raise the value of its currency by allowing U.S. companies to petition for duties on imports. Polls showing Democratic seats at risk heading into the November elections may boost prospects for the bill.

Representatives for companies such as Peoria, Illinois- based Caterpillar Inc., New York-based Citigroup Inc. and Redmond, Washington-based Microsoft Corp. have been lobbying to block the legislation, which they say will be counterproductive.

Wen said at a meeting yesterday with U.S. business leaders including Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein in New York that the yuan’s value isn’t the cause of the U.S. trade deficit with his country.

“The main cause of the U.S. trade deficit is not the exchange rate of the Chinese currency, but the structure of investment and savings,” he said. “China doesn’t pursue a trade surplus intentionally.”

In a speech to the UN today, Wen said his government will seek political “restructuring” while creating a more conducive environment for foreign investors.

Domestic Demand

The movement of hundreds of millions of Chinese farmers to towns and cities in the coming decades “will create more domestic demand than ever, open up broad market and development space and serve as a powerful engine” for the Chinese and world economies, he told the UN.

Among the other areas in which the U.S. is seeking China’s cooperation is keeping up pressure on Iran to submit to UN mandates that it halt efforts to enrich uranium, a step toward building a nuclear bomb. Obama said the U.S. and China have had “very frank discussions” on climate change.

“The world looks to the relationship between China and the United States as a critical ingredient on a whole range of security issues around the world,” Obama said.

Hu’s state visit to the U.S. may be scheduled in January of 2012, Robert Gibbs, Obama’s chief spokesman said. The date is still under discussion.

Tomorrow, Obama is scheduled to meet with leaders from the Association of Southeast Asian Nations. Obama has said involvement in the region is crucial to trade and economic growth, and keeping the U.S. as a counterweight to China’s growing influence.

The 10-member Asean group is the fourth-biggest market for U.S. goods. Still, China’s trade with Asean surpassed that of the U.S. in the past decade, growing to $178 billion last year.

Obama last met with Asean leaders in Singapore in November 2009, the first U.S. president to do so. The member-nations are Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

www.bloomberg.com/news/2010-09-23/obama-china-s-wen-pledge-increased-cooperation-on-global-economic-issues.html

[sandi66]

Regulators order 5 more state banks to make improvements
Posted on: Sat, 25 Sep 2010 02:39:28 EDT

Sep 25, 2010

More Wisconsin-based banks have been hit with special orders demanding improvements, regulators disclosed Friday.

The Federal Deposit Insurance Corp. said consent orders have been issued to the Park Bank, Madison; Community Business Bank, Sauk City; First State Bank, New London; Cambridge State Bank, Cambridge; and Securant Bank & Trust, Menomonee Falls.

The orders allege "unsafe or unsound banking practices" and outline steps to improve.

While the orders indicate regulators were concerned with loan problems at Community Business Bank, First State Bank and Securant, the orders to the Park Bank and Cambridge State focus on compliance with banking rules.

Securant announced this month it had been ordered by regulators to increase capital and reduce loan delinquencies, and it said it already had made significant progress. After losing $6.2 million in 2009, Securant posted a $1.1 million profit through the first half of 2010, FDIC records show.

Cambridge State received a previous order telling it to reduce delinquent loans and boost its financial performance. Cambridge State lost $5.2 million last year and more than $1.6 million through June 30 this year.

The new order with Cambridge State calls for increased participation by the bank's board of directors. It also calls for the compliance committee to include at least two members who are not active officers of the bank, along with a new compliance officer who has expertise in consumer laws.

Cambridge State Bank issued a statement Friday saying the bank's compliance issues were indentified in January and were the result of bank management practices over the previous three years. The bank said it has "already accomplished many aspects of the agreement." It installed a new management team in January, and ownership has injected more than $9 million in capital in the last 12 months, the bank said.

The order with the Park Bank also calls for more board oversight of the bank's operations. It requires the bank to have a compliance officer, hire a compliance consultant, and develop compliance policies and procedures. It also calls for an external audit to ensure the bank's compliance with consumer laws.

Kelly Lietz, vice president of marketing for the Park Bank, said the period covered in the exam that prompted the action was 2005 to 2009, and the bank has been working to resolve the issues for more than a year.

"I would stress that the violations in this area had no financial impact on our clients nor do they reflect negatively on Park Bank's financial position," Lietz said.

Madison's Park Bank, which had a profit of $995,000 in the first six months of 2010 after earning $175,000 in 2009, isn't affiliated with Park Bank in Milwaukee.

Community Business Bank, which lost $369,000 in 2009 and $162,000 in the first half of this year, was ordered to maintain higher-than-normal levels of capital and reduce delinquent loans.

Debra Lins, president and CEO, said Community Business Bank was working on many of the issues even before the consent order.

"We view this as a non-event for our clients and will continue to provide the service and personal attention they have come to expect from CBB," she said, adding that the bank tries to work with customers affected by the economic downturn.

First State Bank, which lost $1.3 million in the first six months of this year after recording a $1.2 million loss in 2009, also was told to maintain capital above normal levels and to reduce troubled loans. Harry Radix, president of First State Bank, said the issue stemmed from real estate loans.

"This is a situation that we have been working to rectify for some time now," said Radix, noting that the problem loans were tied to the bank's traditional real estate lending role. "Our board and management team continue to take the necessary steps to reduce our problem loans and assure our capital remains significantly above the 'well capitalized' threshold established by the regulators."

In the last two years, more than 30 banks based in Wisconsin have received special orders from regulators to make improvements.

www.tradingmarkets.com/news/stock-alert/fsce_regulators-order-5-more-state-banks-to-make-improvements-1190743.html

[sandi66]

The face of the financial crisis - It seems we had a financial crisis but we can’t find its face.

September 26, 2010

In the 1980s LBOs supposedly were throwing people out of jobs and bankrupting established firms. Mike Milken kindly lent his face and went off to jail for several years. In the 2000s accounting manipulation created unsustainable stage-set companies. Jeff Skilling stepped in and he, too, went off to jail for several years.

Then along came the mother of all meltdowns. Trillions of dollars changed hands or went up in smoke and the whole system almost toppled. We found ourselves wishing for the good old days of a nice understandable accounting scandal.

We need somebody we can send off to jail. Jail apparently provides the moral clarity necessary to wrap up a financial crisis. Bernie Madoff’s just an old-fashioned fraud from another era. The Justice Department has sent almost 3,000 people to jail for financial fraud between October, 2009 and June 2010, but no faces. Countrywide’s Angelo Mozilo is still resisting insider trading and fraud charges, Bear Stearns hedge fund managers Cioffi and Tannin have been acquitted, and the SEC has entered into tiny settlements in splashy cases against Citigroup and Bank of America, big banks that were supposedly at the heart of the crisis. Justice had former AIG executive Joseph Cassano, Michael Lewis’s “man who crashed the world,” in its sights, but let him wiggle off for lack of proof.

Alas, the Wall Street Journal quoted Fred Gibson, the FDIC’s deputy inspector general, as saying, “[t]here hasn’t been a prosecution that’s put a face on this crisis.”

Oliver Stone, who gleefully dismantled the financial world in “Wall Street,” can’t even find a fictional face in the sequel, “Money Never Sleeps.” The NY Times’ Joe Nocera is disappointed fans didn’t get what they were expecting – “a movie that took on the financial crisis and eviscerated the folks responsible.” If we can’t find a real person to blame you’d think we could at least pin it on a fictional character.

Why is the face so hard to find? One reason is that a satisfying culprit needs to have actually done something wrong. Bad business judgment isn’t a crime. Most of the main culprits, like Joe Cassano, were trying to make a lot of money for their firms, which used to be seen as a good thing. They were also making a lot of money for themselves, but we’re not yet ready to criminalize incentive compensation either. Nor were the culprits lying about their firms. Like the Bear Stearns hedge fund guys, they were caught in a tsunami they didn’t understand and couldn’t control.

But this isn’t a full explanation. Joe Cassano actually looks a lot like Skilling – a man caught in a bank run who may or may not have told the whole truth about it. We’re now learning that it’s far from clear that even Jeff Skilling did anything criminal, and there have always been doubts about Milken’s punishment. If not Cassano, why Skilling?

Maybe what’s different is that prosecutors recently burned by the implosions of the Enron cases are twice shy now. Making up new theories to catch scapegoats doesn’t have the cachet it once had. It might be getting harder to use the criminal laws to get moral clarity.

Maybe we’re finally ready to admit that the faces of the past were just scapegoats we threw on the fire because it was much too hard to figure out what really happened or to admit that stuff just happens.

Or maybe it’s become just too obvious that we created the financial crisis. As even Oliver Stone showed in his movie, we borrowed all that money and thought the housing boom would never end. We saw the risks in the disclosure documents but ignored them, or refused even to look. We heard the doomsayers and preferred to ignore them. We elected the politicians who subsidized the housing bubble, and decided which firms should live and which should die.

Maybe we have seen the face of the financial crisis. In the mirror.

blogs.forbes.com/larryribstein/2010/09/26/the-face-of-the-financial-crisis/

[sandi66]

Treasury Said to Ready Plan to Sell AIG Stake, Recoup Taxpayer Investment
By Hugh Son and James Sterngold - Sep 26, 2010 7:28 PM ET

The U.S. Treasury Department may announce plans as early as this week to return American International Group Inc. to independence and recoup taxpayer money from the insurer’s bailout, according to three people with knowledge of the talks.

The biggest part of that strategy is for Treasury to begin converting its $49 billion preferred stake into common stock for sales by the first half of next year, said the people, who declined to be identified because the negotiations are private. The timing of an announcement depends on the pace of talks between regulators and the New York-based insurer, and discussions may extend beyond this week, the people said.

The government is seeking to dispose of its AIG stake as Chief Executive Officer Robert Benmosche, 66, prepares divestitures of two non-U.S. divisions that he said would largely repay the firm’s Federal Reserve credit line. MetLife Inc. said this month its purchase of American Life Insurance Co., for about $15.5 billion, is “on track” to be completed on Nov. 1. AIG may hold an initial public offering of another business, AIA Group Ltd., in October.

The insurer’s objective is to “repay the taxpayers and position AIG, over time, as a strong, independent company worthy of investor confidence,” said Mark Herr, a spokesman for the firm. “We have been in discussions with the U.S. Treasury, the Federal Reserve Bank of New York and trustees of the AIG Trust over the terms of the government’s exit from AIG.”

Last to Repay

AIG and its government overseers are set to discuss terms of the exit strategy by Sept. 29 and may issue a statement after that meeting, said one of the people. Mark Paustenbach, a Treasury spokesman, and Jack Gutt of the New York Fed declined to comment.

AIG, once the world’s largest insurer, was first rescued in September 2008 by the Federal Reserve. After three revisions, the firm’s $182.3 billion lifeline includes a Fed credit facility, a Treasury investment of as much as $69.8 billion and up to $52.5 billion to buy mortgage-linked assets owned or backed by AIG.

The company, which in addition to the Treasury’s preferred stake owes about $20 billion on the Fed credit line, is the only insurer yet to repay its Troubled Asset Relief Program rescue funds. Hartford Financial Services Group Inc. and Lincoln National Corp. repaid their bailouts, and this month Treasury raised more than $900 million selling warrants in the companies.

‘Significant Dilution’

Treasury Secretary Timothy F. Geithner said last week that the U.S. would “largely get the taxpayers’ money back” from TARP. Estimates for losses on the $700 billion program are shrinking, Geithner said, citing a Congressional Budget Office estimate that TARP would cost $66 billion, compared with $105 billion in an earlier Treasury report.

AIG has climbed about 22 percent in New York Stock Exchange trading this year through Sept. 24. It slipped 4.5 percent last year and plunged 97 percent in 2008, the year writedowns tied to soured housing-market bets forced the insurer to take a rescue.

The firm’s plan to gain independence “could result in the issuance of a large number of additional shares of AIG common stock,” the company said in the Aug. 6 filing. The new securities “could result in significant dilution to AIG’s current shareholders,” the firm said.

The government’s exit from AIG could be modeled after that of New York-based Citigroup Inc., in which the government sold shares through a set trading program, Benmosche has said. Citigroup is still 18 percent owned by Treasury.

AIG’s trustees, a three-person panel, wield the government’s almost 80 percent stake in the insurer and control votes on asset sales, mergers and the selection of top executives.

Treasury added two members to AIG’s board of directors this year under an agreement that allowed for the appointments if the company skipped dividend payments on the government’s preferred shares for four straight quarters.



www.bloomberg.com/news/2010-09-26/treasury-said-to-ready-plan-to-sell-aig-stake-recoup-taxpayer-investment.html

[sandi66]

Obama heads west, seeking youthful spirit of '08
By Stephen Collinson (AFP) – 1 hour ago

WASHINGTON — President Barack Obama headed west Monday, seeking to rekindle the spirit of his barnstorming 2008 campaign and fire up young voters who helped land him in the White House.

The two-day trip was designed to skewer Republicans ahead of November's mid-term elections but also tracks across swing-states New Mexico, Wisconsin, Iowa and Virginia which will be vital to Obama's presumed 2012 reelection bid.

With his presidency dragged down by war, a sluggish economic recovery, huge unemployment and a likely electoral hammering for Democrats, the heady enthusiasm and youthful promise of Obama's 2008 campaign is a mere memory.

But the president, in almost a chiding tone, made clear Monday that young voters must step up and back his fellow Democrats in November, warning that politics was not just "fun and games" but a tough slog for change.

"I want to send a message to young people across the country about how important this election is," Obama said on a frank conference call with student journalists ahead of the November 2 polls on Monday.

"You can't just sit it out," said Obama, who saddled by approval ratings in the mid-40s, now lacks the potency he once had as a campaign champion for his fellow Democrats.

In 2008, Obama confounded political analysts and skeptics and enthused young voters, who are historically fickle when it comes to polling day.

According to a Pew Research survey issued shortly after the 2008 presidential election, Obama captured 66 percent of voters under the age of 30 compared to the 31 percent who plumped for his Republican rival John McCain.

Young people also showed up in higher numbers for Obama than they had for Democratic nominees John Kerry in 2004 and Al Gore in 2000, the figures showed.

The young, combined with the crucial Hispanic block and African American voters made up what pollsters termed "the surge" that helped Obama redraw the political map, and win some traditionally conservative states like Virginia.

Anecdotally, it is also clear the young played a huge role -- tens of thousands of people -- many of them under 30, packed out his huge rallies.

Obama will seek to recreate that iconic imagery with a rally for the Democratic National Committee at the University of Wisconsin on Tuesday -- likely his biggest political showpiece since the 2008 campaign.

His other events feature small backyard discussions with families about the economy, an apparent attempt to show that despite the claims of critics, Obama has not forgotten the grim economic plight of the Middle Class.

While the under 30s may not have been decisive in pure raw numbers in the election, Obama's campaign more than any before it, mobilized them to knock on doors and make repeated small campaign donations.

In states like Iowa, where Obama built the grassroots army that pulled off a shocking upset against Democratic foe Hillary Clinton, young people clearly played a key role in lobbying family and friends on his candidacy.

Yet, in this mid-term election, with the president not on the ballot, few analysts expect Obama's youthful legions to turn out in such numbers.

Their absence could make the difference in some close races in an expected Republican wave.

So, Obama, in the knowledge that his chances of enacting more ambitious reforms will dim if Republicans capture the House of Representatives and even add the Senate, is pleading with his core supporters to boost him again.

"You can't suddenly just check in once every 10 years or so, on an exciting presidential election, and then not pay attention during big midterm elections where we've got a real big choice between Democrats and Republicans.

"Even though this may not be as exciting as a presidential election, it's going to make a huge difference in terms of whether we're going to be able to move our agenda forward over the next couple of years," he said on Monday's call.

Obama admitted that some young people who had been fired up by his anti-Iraq war campaign, and heady mixture of hope and change, may have been turned off by the grim grind of governing and partisan warfare.

But he warned that often, US democracy was of the two-steps-forward and one step back variety, and they should not be so easily disillusioned.

"I just want to remind young people, they've got to get reengaged in this process," he said on the call.

"They're going to have to vote in these mid-term elections. You've got to take the time to find out where does your congressional candidate stand on various issues."

www.google.com/hostednews/afp/article/ALeqM5gN6cXf43aEuCp-1dhbBtSlyy2d-w?docId=CNG.cd0ab416a2c7901c0abb23f392c5057d.b81

[sandi66]

September 27, 2010 9:35 AM

President Obama's Schedule Today (9/27/10)

In the morning, President Obama will be interviewed live on NBC's "Today Show" in the Green Room. Later in the morning, he will receive the Presidential Daily Briefing and will then meet with senior advisers in the Oval Office.

In the afternoon, the president will host an on-the-record conference call with college and university student-journalists. Later, he will sign the Small Business Jobs Act in the East Room.

In the evening, Mr. Obama will travel to Albuquerque, New Mexico.

Here's the Full Schedule from the White House (all times Eastern):

8:00AM: President Obama is interviewed live on NBC Today Show

10:15AM: President Obama receives the Presidential Daily Briefing

10:45AM: President Obama meets with senior advisers

12:10PM: President Obama hosts an on-the-record conference call with college and university student-journalists

1:45PM: President Obama signs the Small Business Jobs Act

5:00PM: President Obama departs the White House

5:15PM: President Obama departs Andrews Air Force Base en route Albuquerque, New Mexico

8:55PM: President Obama arrives Albuquerque, New Mexico

www.cbsnews.com/8301-503544_162-20017669-503544.html

[sandi66]

G-20 Nations May Find ‘Compromise’ on Currencies, S. Korea Says
September 28, 2010, 4:51 AM EDT



Sept. 28 (Bloomberg) -- Leaders of Group of 20 nations may find some solution to tensions over exchange-rate policies by the end of their November summit, a South Korean official said.

“Policy makers are talking over the currency issue and thus I expect they will be able to find a compromise at the Seoul summit,” Sakong Il, chairman of the nation’s presidential committee for the summit, told reporters in Seoul today. He didn’t elaborate on what kind of solution may be found.

Former Canadian Prime Minister Paul Martin also said at the joint press conference that the G-20, as a steering committee for international economic cooperation, has to deal with the currency issue involving the U.S. and China as it’s not just a matter between the two countries.

U.S. lawmakers pressing China to raise the value of its currency aim to vote on a measure providing protection to U.S. companies this month. Treasury Secretary Timothy F. Geithner has said that the U.S. will use every available tool to urge China to let its currency rise more quickly. Premier Wen Jiabao has said that a 20 percent jump in the yuan risks “major” social upheaval and job losses.



www.businessweek.com/news/2010-09-28/g-20-nations-may-find-compromise-on-currencies-s-korea-says.html

[sandi66]

INA / MP Ali al-Adeeb: tomorrow will announce the coalition candidate for prime minister

2010/9/27 11:54 pm



ÇßÏ ÇáÞíÇÏí Ýí ÇÆÊáÇÝ ÏæáÉ ÇáÞÇäæä ÇáäÇÆÈ Úáí ÇáÇÏíÈ Çä"ÇÌÊãÇÚ Çáíæã ßÇä ÇíÌÇÈí æãËãÑ æãåã æíÚØí ÇáÇãá ÈÎÑæÌ ÇáÊÍÇáÝ ÇáæØäí ÈãÑÔÍ æÇÍÏ Úäå áÑÆÇÓÉ ÇáÍßæãÉ ". Said the leadership of the coalition of state law, MP Ali al-Adeeb said "Today's meeting was positive and fruitful and important and gives hope for the exit of the National Coalition for a single candidate for prime minister."

æÞÇá ÇáÇÏíÈ Ýí ÊÕÑíÍ ÎÕ Èå ãÑÇÓá ( æßÇáÉ ÇäÈÇÁ ÇáÇÚáÇã ÇáÚÑÇÞí/æÇÚ ) Çä"ÇáÊæÇÝÞ ÇáÐí ÍÕá Èíä ÇØÑÇÝ Adeeb said in a statement singled out by the reporter (news agency, media / INA) that "the consensus reached between the parties ÇáÊÍÇáÝ ßÇä 100% Íæá ÇáãÑÔÍ ÇáãÊÝÞ Úáíå æäÍä äÑì ÈÇä ÇáÓÇÚÇÊ ÇáÞÇÏãÉ æÎÇÕÉ íæã ÛÏÇ Óíßæä ÇáÇÚáÇä ÈÔßá ÑÓãí æ äåÇÆí ãä ÞÈá ÇáÊÍÇáÝ ÇáæØäí Úä ÇÓã ãÑÔÍå". Alliance was 100% agreed on a candidate and we see that the next hours and tomorrow will be a special announcement on the formal and final by the National Alliance for the name of the candidate. "

æÇÖÇÝ Çä" ãÑÔÍ ÇáÊÍÇáÝ ÓäÏÇÝÚ Úäå Ýí ãÌáÓ ÇáäæÇÈ ãä ÞÈáäÇ ßßÊáÉ ÇßÈÑ ÚÏÏÇ ÚäÏãÇ ÊÍÏË ÇÚÊÑÇÖÇÊ Úáíå ãä ÞÈá ÈÇÞí ÇáßÊá ÇáÓíÇÓíÉ ". He added that the "candidate of the Coalition will defend it in the House of Representatives from us as a bloc the largest number when speaking objections by the other political blocs."



translate.google.com/translate?hl=en&ie=UTF-8&sl=ar&tl=en&u=http://al-iraqnews.net/new/political-news/27222.html&prev=_t&rurl=translate.google.com

[sandi66]

SEC Finds Its Rules Had Hand in 'Crash'

September 29, 2010

As the Securities and Exchange Commission finalizes its report on the May 6 "flash crash," it is being forced to confront the fallout of its own decisions—which Wall Street sought and cheered—that ushered in an era of fast trading dispersed across dozens of venues.

We expect the report will highlight any areas in which market structure played a role in the events of May 6," Ms. Schapiro said in a statement this week. Spokesmen for the CFTC and the SEC declined to comment on the coming report.

While the SEC has been pilloried in recent years for failures such as ignoring tips about Bernard Madoff's Ponzi scheme, the agency had started to ask questions about the reliability of the stock market months before the flash crash.

In January, in a so-called concept release on stock-market structure, the agency noted the significant changes that have taken place in trading thanks both to legislative and regulatory developments and advances in technology.

The changes were largely designed to usher in increased competition and speed, both of which were seen lowering costs for investors. In the release, which sought public comment, the SEC raised questions about what downsides the changes had wrought for markets.

Before May 6, the vast majority who responded to the SEC's concerns dismissed them.

We "think that our current equity-market structure generally works well," wrote Joseph M. Velli, chief executive of brokerage firm BNY ConvergEx Group LLC, in comments filed in April. "Innovation and technological advances can fix many perceived problems without the need for additional regulation."

Mr. Velli said this week through a spokesman that he "would support certain technical rule changes, like the single-stock circuit breakers, designed to iron out a few limited issues."

Some Wall Street players say the changes appear to have left markets more vulnerable to rapid and unchecked swings than had been anticipated.

Among the changes: The SEC in 1998 adopted regulation ATS to allow for nonexchanges to execute trades electronically. That marked a precursor to today's dark pools, private trading venues that have taken substantial trading volume away from the public exchanges. Ms. Schpiro has recently raised questions about the effect of dark pools on market stability and investors' ability to size up prices.


In 2000, the SEC mandated stock pricing in pennies instead of 1/8 fractions, a move that was touted as a benefit to small investors but that also has reduced the per-trade profits and incentives for traders expected to bring stability as market makers.

In 2005, the SEC adopted Regulation NMS, aimed at opening up stock trading to greater competition and ending the duopoly of the New York Stock Exchange and Nasdaq Stock Market.

The 2010 concept release questions whether having numerous trading centers, compared with essentially two a decade ago, could have a damaging effect. It asked whether there should be minimum requirements on the duration of orders.

And one question that became especially relevant after the flash crash was whether high-speed traders who reliably supplied liquidity would do so in crisis. "Are their orders accurately characterized as phantom liquidity that disappears when most needed by long-term investors and other market participants?" the release asked.

Larry Leibowitz, chief operating officer of Big Board operator NYSE Euronext, says the SEC's broad questioning of market structure is appropriate. "Regulations don't exist in a static world. Regulations need to be tailored and tinkered."

Others say that, despite the May 6 flash crash, the markets are largely functioning well. Plus, any new alterations could themselves have unintended consequences.

Dan Mathisson, head of electronic trading at Credit Suisse Group, before May 6 described the recent evolution of the stock market as "a complete success." He largely stands by that assessment.

The flash crash "clearly revealed some problems," Mr. Mathisson said in a recent interview. "But it does not throw away all the tremendous progress that the market has made."

Write to Tom Lauricella at [e-mail], Kara Scannell at [e-mail] and Jenny Strasburg at [e-mail]

online.wsj.com/article/SB10001424052748704791004575520363764665240.html

[sandi66]

SEPTEMBER 29, 2010

The Pelosi-Reid Deficits
Blame Congress, not presidents Bush or Obama, for our perilous fiscal situation.

During a recent press conference, President Obama blamed George W. Bush for the nation's fiscal condition. "When I walked in," he declared, "wrapped in a nice bow was a $1.3 trillion deficit sitting right there on my doorstep." Earlier this year he asserted that "we came in with $8 trillion worth of debt over the next decade."

Neither statement is correct, according to the Congressional Budget Office (CBO). True enough, the outgoing Bush administration bequeathed big deficits to Mr. Obama. The expected 2009 deficit was $1.19 trillion, not $1.3 trillion, however—and the actual deficit for 2009 came in at $1.41 trillion, meaning that the new president added some $220 billion to the total.

Far more significant, however, was the president's misstatement that Mr. Bush and the Republicans left the country with $8 trillion of debt over the next 10 years. The CBO's projected 10-year deficit when Mr. Obama took office was actually $4.09 trillion. Now, after 20 months of his presidency, the expected deficit has almost doubled, to $7.68 trillion.

A strong case can be made that the people most responsible for the gigantic deficits we face today are neither George W. Bush nor Barack Obama. The real culprits are Speaker of the House Nancy Pelosi and Senate Majority Leader Harry Reid.

Congress controls the purse strings. When Mrs. Pelosi and Mr. Reid rose to their present jobs in January 2007, the deficit was $161 billion. It had been on a downward trajectory from $413 billion in 2004. Three years later, the Pelosi-Reid Congress had added $1.2 trillion to the deficit.

Of course, Mr. Bush sponsored or signed into law many of these deficit-raising bills, such as the bank bailouts and effective tax rebates of 2008. But the Democratic Congress passed them.

Long forgotten is the promise Mrs. Pelosi made on the day she became speaker: "Our new America will provide unlimited opportunity for future generations, not burden them with mountains of debt." I think future generations would like a do-over.

Today, Mr. Obama and Democrats in Congress love to talk about how Mr. Bush turned a $200 billion Clinton surplus into a $1 trillion deficit. Indeed he did, though they ignore the 9/11 terrorist attacks that happened less than a year after Mr. Bush became president. Those attacks were fiscal game-changers, jolting the economy to a temporary standstill and requiring unplanned spending for homeland security and antiterrorism efforts.

For the sake of comparison, let's look at the Pelosi-Reid fiscal record over 10 years. In January 2007, the CBO projected a $379 billion surplus over the next decade. Now, after four years under Mrs. Pelosi and Mr. Reid, and two years of Mr. Obama in the White House, the 2007-2016 projection is a deficit of $7.16 trillion.

This deterioration of the nation's fiscal situation is arguably the worst in United States history, and it was brought to us courtesy of a congressional leadership that pledged "pay as you go" budgeting to bring the budget into balance.

It is no wonder that Americans are not eager to retain the services of these two spendthrifts as leaders of Congress.

online.wsj.com/article/SB10001424052748703882404575519784046288058.html?KEYWORDS=Bank+of+America

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U.S. Vice President Biden calls on Iraq to expedite efforts to form a democratic government


Wednesday, 29 September 2010

U.S. Vice President Joe Biden on Tuesday called on Iraq to expedite efforts to form an inclusive and legitimate government responsive to the needs of the Iraqi people.

Biden spoke with Dr. Ayad Allawi, former Iraqi Prime Minister and leader of the Iraqiyya coalition, during a phone call on Tuesday. During the call, Biden reaffirmed the support of the U.S. government towards the formation of a democratic government in the Arab country.

The U.S. government expects that Iraq will form an inclusive government that reflects the results of the election and Biden emphasized that the Obama administration is not backing any candidate.

Last March, the narrow victory in the parliamentary polls resulted in no clear winner and caused tensions over who should have the right to form the next government.

Biden, however, said that all four winning coalitions should have the opportunity to play a role in the new government and expressed support for Iraqi consideration of power-sharing arrangements in accordance with the constitution.

Differences have deepened among the four winning coalitions as the Iraqiyya coalition said that it would not join any government headed by incumbent Prime Minister Nuri al-Maliki.

www.turkishweekly.net/news/108029/u-s-vice-president-biden-calls-on-iraq-to-expedite-efforts-to-form-a-democratic-government.html

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Iceland's ex-PM Geir Haarde hires lawyer to defend against banking crisis charges

September 29, 2010 - 08:24 AM

LONDON (AP) - Iceland's former prime minister has hired a lawyer to defend himself against charges that he failed to act to prevent the nation's financial crisis.

Geir Haarde told Icelandic broadcaster Stod 2 Wednesday that attorney Andri Arnason would lead the defense, if Haarde faces an unprecedented trial in the nation's special court.

Iceland's parliament voted 33-30 Tuesday night to refer charges against Haarde to the court, which has the power to throw out the case. Haarde faces a maximum jail term of two years if convicted.

In other close votes, legislators decided not to refer charges against three former ministers in Haarde's government.

Iceland's 2008 financial crisis sparked protests, toppled the government and brought the economy to a standstill.

www.canadianbusiness.com/markets/market_news/article.jsp?content=D9IHJ0180

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Why Brown should be joining Iceland's former PM into the dock

September 29th, 2010

Iceland’s decision to push ahead with charges of negligence against its former prime minister, Geir Haarde, raises the not entirely frivolous question of whether it might be possible to mount a similar case against Gordon Brown.

Nevermind the alleged war crimes of Tony Blair, ruination of the British economy is a pretty serious charge. The case is quite easily constructed; that he did willfully take the brakes off public spending, that he failed to control the recklessness of the banks, that he stripped the Bank of England of its powers of financial supervision and gave them instead to a shiny new, politically correct but wholly inept regulator, that he misled parliament over the state of the public finances, and that he did gratuitiously insult the hapless Gillian Duffy. I could go on, but let’s not intrude too far into private grief.

In any case, all this would seem quite enough to put him behind bars. Yet as my colleague Ambrose Evans-Pritchard, has just pointed out to me, there is one overarching act of mitigation. He refused to allow Tony Blair to take us into the euro, which had it happened would have sealed our fate as surely as that of Greece, Spain and Portugal. The prisons are quite crowded, I’m told, so perhaps a non custodial sentence is in order.

blogs.telegraph.co.uk/finance/jeremywarner/100007850/why-brown-should-be-joining-icelands-former-pm-into-the-dock/

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World News: Thousands set to join march against cuts in Brussels - Thousands of people from across the EU are expected to march in Brussels to protest against sweeping austerity measures by many national governments.

29 September 2010

The European Trade Union Confederation says its protest could be one of the biggest in Belgium's capital for years.

The union says EU workers could become the biggest victims of a financial crisis set off by bankers and traders. A general strik
ADVERTISEMENTe has begun in Spain and protests are planned in Greece, Poland, Italy, Latvia, Ireland and Serbia.

Many governments across the 27-member bloc have been forced to impose punishing cuts in wages, pensions and employment to deal with debts.

In Greece and the Republic of Ireland, unemployment figures are at their highest level in 10 years, while Spain's unemployment has doubled in just three years.

In Britain, the government is planning to slash spending by up to 25 per cent, while France has seen angry protests against a planned increase in the minimum retirement age.

Labour unions in Spain have started a general strike by marching through Madrid, in an effort to shut down the city.

Ex-PM set for court over crisis
Iceland's parliament has narrowly voted to refer former prime minister Geir Haarde to a special court over his role in the country's financial crisis.

The Landsdomur will now decide whether the 59-year-old should face trial for negligence.

Legal victory for prostitutes
A JUDGE in Ontario has overturned key Canadian anti-prostitution laws, finding they force sex workers into the streets.

She ruled with three prostitutes who had challenged bans on brothels, pimps and solicitation.

The government is weighing an appeal.

Finding the laws unconstitutional, Justice Susan Himel called on the Canadian parliament to regulate the sex trade.

"These laws... force prostitutes to choose between their liberty, interest and their right to security of the person," she wrote in a 131-page ruling in the Ontario Superior Court of Justice.

Plaintiff Terri Bedford, described in court documents as a prostitute who had been beaten and raped while working in the streets of Windsor, Calgary and Vancouver, said: "It's like emancipation day for sex trade workers."

Ms Bedford said she hoped to work as a dominatrix.

Fresh hope for miners
Thirty-three miners trapped underground in Chile for nearly two months could be out sooner than thought.

Rescuers digging to reach the men say one of their drills has cut through 50m (164ft) of rock in 24 hours.

At that rate they could be ready to bring the men to the surface by the middle of October.

But they have warned that they could yet run into problems, and the government still says it could take until November.

Jacko's manager seeks records
Michael Jackson's last business manager is seeking detailed financial records from the singer's estate, arguing that the sealing of the documents could prevent him and other creditors from being paid.

Tohme Tohme has claimed he is entitled to at least £1.5 million from the estate.

Key posts for son of North Korean leader
North Korea: The youngest son of North Korean leader Kim Jong-il has been appointed to two key party posts, widely seen as part of a gradual transfer of power.

Kim Jong-un was named vice-chairman of the Central Military Commission of the Workers' Party and appointed to its central committee.

United States: More than 11,000 Los Angeles residents remain without electricity a day after 45C temperatures caused a record surge in demand

edinburghnews.scotsman.com/world/World-News-Thousands-set-to.6556290.jp

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Iceland’s Haarde Is First Leader Indicted Over Crisis

September 29, 2010, 7:22 AM EDT

Sept. 29 (Bloomberg) -- Iceland’s former Prime Minister Geir H. Haarde, who led the island from boom to bust two years ago, became the first political leader to be indicted for mismanagement of economic affairs during the financial crisis.

Parliament voted 33 to 30 to charge Haarde, 59, in Reykjavik yesterday. Lawmakers decided not to charge former Finance Minister Arni M. Mathiesen, former Business Minister Bjorgvin G. Sigurdsson and former Foreign Minister Ingibjorg Solrun Gisladottir. The indictment is the first time a special court set up in 1905 to hear such cases will be convened.

The 2008 banking failure forced the island, the world’s fifth-richest per capita a year earlier, to turn to the International Monetary Fund for help and sent the krona plunging as much as 80 percent against the euro in the offshore market. Lawmakers had been debating the issue of whether to move against individual political leaders since a parliamentary committee on Sept. 11 recommended the four be charged.

“This indictment is unprecedented,” said Gudni Th. Johannesson, an historian with the Reykjavik Academy. “Over the past two years, banks all over the world have collapsed and economies faltered. Obviously, heads of state have been indicted before for war crimes, such as Slobodan Miloševiæ and Charles Taylor, but never for anything such as economic mismanagement.”

‘Violations’

Haarde, who was prime minister from 2006 until the beginning of 2009, must be held responsible for “violations committed from February 2008 through the beginning of October of the same year, by intent or gross neglect, mostly violations against the laws of ministerial responsibility” as well as breaches of the penal code, the committee of nine lawmakers said. The same charges were brought against the other three.

Bjarni Benediktsson, chairman of Haarde’s Independence Party and leader of the opposition bloc, said this month his lawmakers would seek to block any charges. The Independents, among five parties represented in the committee, recommended none be indicted. The ruling Social Democrats wanted to indict only Haarde, Gisladottir and Mathiesen, while the Left Green Movement -- the junior coalition partner -- and the opposition Progressive and Movement parties insisted all four be indicted.

‘Peculiar’

“This is a very peculiar outcome -- parliament has decided to hold one man accountable for the economic collapse,” said Eirikur Bergmann, a professor in political science at Bifrost University on the island. “This decision will mean that Iceland’s political discourse will be plagued by disunity. More than anything, this is a sad outcome.”

The government of Prime Minister Johanna Sigurdardottir, in office since January last year, is struggling to rebuild the crippled economy as Icelanders come to terms with spiraling debt burdens and incomes reduced by 20.3 percent last year.

“An indictment will tell politicians that their posts are associated with great responsibility and that the law dictates that this responsibility be interpreted in the strictest sense; they shouldn’t just sit there and look pretty,” said Gunnar Helgi Kristinsson, a professor in political science at the University of Iceland, in an interview before the vote. “This could set a political precedent.”

The committee was appointed after a separate commission investigating the causes of the 2008 crisis in April found that the government, central bank and financial regulator had all been “negligent” in their failure to address some of the factors that exacerbated the collapse.

Oddsson’s Role

The commission had suggested previous central bank governor David Oddsson as well as former head of the Financial Supervisory Authority Jonas Fr. Jonsson acted negligently in the years leading up to the meltdown, according to the April report.

Jonsson and Oddsson, who now runs the country’s second- biggest newspaper Morgunbladid, escaped legal action when the state prosecutor said in June a Special Investigation Commission’s findings didn’t warrant a criminal probe.

Oddsson was head of government from 1991 until 2004, making him Iceland’s longest-serving Prime Minister and the principal architect of the privatization of the island’s banks. Haarde served as Finance Minister from 1998 until 2005.

The commission alleged that Haarde, Sigurdsson and Mathiesen didn’t exert enough pressure on the banks to shrink their balance sheets after they amassed debts equivalent to 10 times Iceland’s economic output, a development the commission said was key in fuelling the financial collapse.

Bank Failures

Kaupthing Bank hf, Landsbanki Islands hf and Glitnir Bank hf all collapsed within weeks of each other in October 2008 after they were unable to secure enough short-term funds to continue their operations. The state was forced to step in and take control of the domestic assets to create new local units. The banks’ failures left creditors wondering how to recoup a total of $86 billion.

The committee had also recommended the former ministers be charged for failing to ensure that Landsbanki created a U.K. subsidiary when selling its Icesave accounts there -- a measure that would have forced the British government to cover depositor claims, it said.

Iceland’s government has yet to settle a dispute with the U.K. and Dutch over how to settle $5.1 billion in depositor funds stemming from the failure of Landsbanki.

www.businessweek.com/news/2010-09-29/iceland-s-haarde-is-first-leader-indicted-over-crisis.html

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Justice Department Seeks a Broader Fraud Law to Cover Self-Dealing

Published: September 28, 2010

WASHINGTON — The Justice Department asked Congress on Tuesday for a law that would restore powers prosecutors have used against public and private sector officials who intentionally hide conflicts of interest for personal gain.

Lanny A. Breuer, the assistant attorney general and head of the criminal division, told senators Tuesday that the Supreme Court’s ruling this year in a case involving Jeffrey K. Skilling, the former chief executive of Enron, significantly narrowed the government’s ability to bring cases against officials involved in secret, self-dealing activities.

For example, if a public or corporate official secretly funneled contracts to third parties under his control, the scheme would be corrupt but would not be bribery and is no longer covered by federal law because of the Supreme Court’s ruling. In the Enron decision, the court ruled that existing fraud laws apply only to bribery and kickbacks.

“A public official who conceals his financial interests and then takes official action to advance those interests engages in behavior every bit as corrupt as if he accepts a clear bribe from a third party,” Mr. Breuer told the Senate Judiciary Committee. “The department urges Congress to act quickly to restore our ability to prosecute individuals for this kind of undisclosed self-dealing.”

Mr. Breuer said the ruling’s impact was “real,” though he declined to comment on investigations that had not yielded formal charges.

The court’s decision has spurred a wave of requests for dismissals, retrials, and appeals for charges and convictions brought under the statute. The federal district court in New Orleans has agreed to hear Mr. Skilling’s request for a retrial on Nov. 1.

Senator Patrick J. Leahy, Democrat of Vermont and chairman of the judiciary panel, introduced legislation that would expand the so-called honest services law to cover intentionally undisclosed self-dealing by state and federal public officials, and officers and directors of publicly traded companies and public charities.

Mr. Leahy said in a statement: “The Skilling decision left gaps in the current law. The Honest Services Restoration Act aims to restore the law to what it was before the decision, strengthening it to allow prosecutors to investigate and combat public corruption and corporate fraud.”

It was unclear if Senator Jeff Sessions of Alabama, the ranking Republican on the panel, had seen the bill before it was introduced and his office did not return a phone call. At Tuesday’s hearing, he argued for legislation to be specific.

www.nytimes.com/2010/09/29/business/29fraud.html?_r=2&ref=us

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The White House

Office of the Press Secretary

For Immediate Release
September 29, 2010
Executive Order Designating Iranian Officials Responsible for or Complicit in Serious Human Rights Abuses
EXECUTIVE ORDER
- - - - - - -
BLOCKING PROPERTY OF CERTAIN PERSONS WITH RESPECT TO SERIOUS HUMAN RIGHTS ABUSES BY THE GOVERNMENT OF IRAN AND TAKING CERTAIN OTHER ACTIONS

By the authority vested in me as President by the Constitution and the laws of the United States of America, including the International Emergency Economic Powers Act (50 U.S.C. 1701 et seq.) (IEEPA), the National Emergencies Act (50 U.S.C. 1601 et seq.), the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (Public Law 111-195) (CISADA), and section 301 of title 3, United States Code, and in order to take additional steps with respect to the national emergency declared in Executive Order 12957 of March 15, 1995,

I, BARACK OBAMA, President of the United States of America, hereby order:

Section 1. (a) All property and interests in property that are in the United States, that hereafter come within the United States, or that are or hereafter come within the possession or control of any United States person, including any overseas branch, of the following persons are blocked and may not be transferred, paid, exported, withdrawn, or otherwise dealt in:

(i) the persons listed in the Annex to this order; and

(ii) any person determined by the Secretary of the
Treasury, in consultation with or at the recommendation of the Secretary of State:

(A) to be an official of the Government of Iran or a person acting on behalf of the Government of Iran (including members of paramilitary organizations) who is responsible for or complicit in, or responsible for ordering, controlling, or otherwise directing, the commission of serious human rights abuses against persons in Iran or Iranian citizens or residents, or the family members of the foregoing, on or after June 12, 2009, regardless of whether such abuses occurred in Iran;

(B) to have materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services to or in support of, the activities described in subsection (a)(ii)(A) of this section or any person whose property and interests in property are blocked pursuant to this order; or

(C) to be owned or controlled by, or to have acted or purported to act for or on behalf of, directly or indirectly, any person whose property and interests in property are blocked pursuant to this order.

(b) I hereby determine that the making of donations of the type of articles specified in section 203(b)(2) of IEEPA (50 U.S.C. 1702(b)(2)) by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to subsection (a) of this section would seriously impair my ability to deal with the national emergency declared in Executive Order 12957, and I hereby prohibit such donations as provided by subsection (a) of this section.

(c) The prohibitions in subsection (a) of this section include but are not limited to:

(i) the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any person whose property and interests in property are blocked pursuant to this order; and

(ii) the receipt of any contribution or provision of funds, goods, or services from any such person.

(d) The prohibitions in subsection (a) of this section apply except to the extent provided by statutes, or in regulations, orders, directives, or licenses that may be issued pursuant to this order, and notwithstanding any contract entered into or any license or permit granted prior to the effective date of this order.

Sec. 2. (a) Any transaction by a United States person or within the United States that evades or avoids, has the purpose of evading or avoiding, causes a violation of, or attempts to violate any of the prohibitions set forth in this order is prohibited.

(b) Any conspiracy formed to violate any of the prohibitions set forth in this order is prohibited.

Sec. 3. For the purposes of this order:

(a) the term "person" means an individual or entity;

(b) the term "entity" means a partnership, association, trust, joint venture, corporation, group, subgroup, or other organization;

(c) the term "United States person" means any United States citizen, permanent resident alien, entity organized under the laws of the United States or any jurisdiction within the United States (including foreign branches), or any person in the United States;

(d) the term "Government of Iran" includes the Government of Iran, any political subdivision, agency, or instrumentality thereof, and any person owned or controlled by, or acting for or on behalf of, the Government of Iran; and

(e) the term "family member" means, with respect to an individual, a spouse, child, parent, sibling, grandchild, or grandparent of the individual.

Sec. 4. For those persons whose property and interests in property are blocked pursuant to this order who might have a constitutional presence in the United States, I find that because of the ability to transfer funds or other assets instantaneously, prior notice to such persons of measures to be taken pursuant to this order would render those measures ineffectual. I therefore determine that for these measures to be effective in addressing the national emergency declared in Executive Order 12957, there need be no prior notice of a listing or determination made pursuant to section 1(a) of this order.

Sec. 5. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA and sections 105(a)-(c) of CISADA (22 U.S.C. 8514(a)-(c)), other than as described in sections 6 and 7 of this order, as may be necessary to carry out the purposes of this order other than the purposes of sections 6 and 7. The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government consistent with applicable law. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby further authorized to exercise the functions and waiver authorities conferred upon the President by section 401(b) of CISADA (22 U.S.C. 8551(b)) with respect to the requirement to impose or maintain sanctions pursuant to IEEPA under section 105(a) of CISADA (22 U.S.C. 8514(a)) and to redelegate these functions and waiver authorities consistent with applicable law. All agencies of the United States Government are hereby directed to take all appropriate measures within their authority to carry out the provisions of this order.

Sec. 6. The Secretary of State is hereby authorized to exercise the functions and authorities conferred upon the President by section 105(a) of CISADA (22 U.S.C. 8514(a)) with respect to imposition of the visa sanctions described in section 105(c) of CISADA (22 U.S.C. 8514(c)) and to redelegate these functions and authorities consistent with applicable law. The Secretary of State is hereby further authorized to exercise the functions and authorities conferred upon the President by section 105(c) of CISADA (22 U.S.C. 8514(c)) with respect to the promulgation of rules and regulations related to the visa sanctions described therein and to redelegate these functions and authorities consistent with applicable law. The Secretary of State is hereby further authorized to exercise the functions and waiver authorities conferred upon the President by section 401(b) of CISADA (22 U.S.C. 8551(b)) with respect to the requirement to impose or maintain visa sanctions under section 105(a) of CISADA (22 U.S.C. 8514(a)) and to redelegate these functions and waiver authorities consistent with applicable law. In exercising the functions and authorities in the previous sentence, the Secretary of State shall consult the Secretary of Homeland Security on matters related to admissibility or inadmissibility within the authority of the Secretary of Homeland Security.

Sec. 7. The Secretary of State, in consultation with the Secretary of the Treasury, is hereby authorized to submit the initial and updated lists of persons who are subject to visa sanctions and whose property and interests in property are blocked pursuant to this order to the appropriate congressional committees as required by section 105(b) of CISADA (22 U.S.C. 8514(b)) and to redelegate these functions consistent with applicable law. The Secretary of State, in consultation with the Secretary of the Treasury, is hereby further authorized to exercise the functions and waiver authorities conferred upon the President by section 401(b) of CISADA (22 U.S.C. 8551(b)) with respect to the requirement to include a person on the list required by section 105(b) of CISADA (22 U.S.C. 8514(b)) and to redelegate these functions and waiver authorities consistent with applicable law.

Sec. 8. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to take such actions, including the promulgation of rules and regulations, and to employ all powers granted to the President by IEEPA, as may be necessary to carry out section 104 of CISADA (22 U.S.C. 8513). The Secretary of the Treasury may redelegate any of these functions to other officers and agencies of the United States Government consistent with applicable law.

Sec. 9. The Secretary of the Treasury, in consultation with the Secretary of State, is hereby authorized to determine that circumstances no longer warrant the blocking of the property and interests in property of a person listed in the Annex to this order, and to take necessary action to give effect to that determination.

Sec. 10. This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Sec. 11. The measures taken pursuant to this order are in response to actions of the Government of Iran occurring after the conclusion of the 1981 Algiers Accords, and are intended solely as response to those later actions.

Sec. 12. This order is effective at 12:01 a.m. eastern daylight time on September 29, 2010.


BARACK OBAMA


THE WHITE HOUSE,
September 28, 2010.




ANNEX

Individuals



Mohammad Ali JAFARI [Commander of the Islamic Revolutionary Guard Corps, born September 1, 1957]

Sadeq MAHSOULI [Minister of Welfare and Social Security, former Minister of the Interior and Deputy Commander-in-Chief of the Armed Forces for Law Enforcement, born 1959]

Qolam-Hossein MOHSENI-EJEI [Prosecutor-General of Iran, former Minister of Intelligence, born circa 1956]

Saeed MORTAZAVI [Head of Iranian Anti-Smuggling Task Force, former Prosecutor-General of Tehran, born 1967]

Heydar MOSLEHI [Minister of Intelligence, born 1956]

Mostafa Mohammad NAJJAR [Minister of the Interior and Deputy Commander-in-Chief of the Armed Forces for Law Enforcement, born 1956]

Ahmad-Reza RADAN [Deputy Chief of the National Police, born 1963 or 1964]

Hossein TAEB [Deputy Islamic Revolutionary Guard Corps Commander for Intelligence, former Commander of the Basij Forces, born 1963]

www.whitehouse.gov/the-press-office/2010/09/29/executive-order-designating-iranian-officials-responsible-or-complicit-s

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US adds more sanction against Iran for human rights abusesBy Elise Labott, CNN Senior State Department Producer

September 29, 2010 2:02 p.m. EDT

Washington (CNN) -- Citing "mounting evidence" of repression of the Iranian opposition, the Obama administration added more sanctions against Iranian government officials, members of the Revolutionary Guards Corps and others accused by the United States of being responsible for human rights abuses.

The sanctions, announced Wednesday by Secretary of State Hillary Clinton and Treasury Secretary Timothy Geithner, block the assets of, and prohibit U.S. citizens from engaging in any business with, those on the list, which includes the head of the Iranian Revolutionary Guards Corps, the country's prosecutor general, and the ministers of welfare and intelligence.

"On these officials' watch or under their command Iranian citizens have been arbitrarily, beaten, tortured, raped, blackmailed and killed," Clinton said. "Yet the Iranian government has ignored repeated calls from the international community to end these abuses, to hold to account those responsible, and respect the rights and fundamental freedoms of its citizens."

"Today we declare our solidarity with their victims and with all Iranians who wish for a government that respects their human rights and their dignity and their freedom," she said.

Geithner emphasized the measures would not harm the whole country, rather the sanctions were designed to target those who engage in behavior that harms the Iranian people.

"We have found that when we single out Iran's bad actors and expose their illicit conduct--banks, businesses, and governments around the world respond by cutting off dealings with these individuals, groups and businesses," he said, adding the measures would send a message across the world about the risks to continued business with Iran, just as with the recent sanctions against Iran's nuclear business.

The US has been increasing its criticism of Iran's goverment's human rights record since President Mahmoud Amhadinejad's disputed landslide election victory unleashed massive demonstrations in the country. Iran's leaders called the uprising a foreign-led plot to overthrow the regime. It cracked down on the protesters, with many killed and even more jailed. Images of the bloody crackdown fueled worldwide outrage.

Clinton said that new legislation passed earlier this year gives the administration tools to impose sanctions against Iranian officials where there are credible evidence against them. But she acknowledged the administration was "also very mindful" since last year's election about messages from the opposition about keeping a low profile.

"We had to be careful that this indigenous opposition that we certainly had nothing to do with, that was attempting to stand up for the rights of the Iranian people, was not somehow seen as a U.S. enterprise, because it wasn't," she said, adding: "And so walking that line in trying to be both encouraging, forthright and strong in our support of the fundamental rights and freedoms of the Iranian people, at the same time not giving any reason for the Iranians to claim that this reaction from within was somehow either motivated or directed or connected with us, required a balancing act.

The order targets Mohammad Ali Jafari, Commander of the Islamic Revolutionary Guard Corp (IRGC); Sadeq Mahsouli, current minister of welfare and security and former minister of the Interior; Qolam-Hossein Mohseni-Ejei, current prosecutor general of Iran and former minister of intelligence; Saeed Mortazavi, former prosecutor-general of Tehran; Heydar Moslehi, minister of Intelligence; Mostafa Mohammad Najjar, current minister of the Interior and former deputy commander of the armed forces for law enforcement; Ahmad-Reza Radan, deputy chief of Iran's National Police; and Hossein Taeb, current deputy IRGC commander for intelligence and former commander of the IRGC's Basij Forces.

www.cnn.com/2010/US/09/29/iran.new.sanctions/

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JCRC’s Israel Education Center expands efforts of the Iran Advocacy Initiative to college campuses
By EMILY BRISKMAN
Israel Education Center Director
JUF’s Jewish Community Relations Council is expanding the successful efforts of the Iran Advocacy Initiative to college campuses. JCRC’s accomplishments have already included championing the legislation that ultimately led the Illinois State Pension Board to divest $133 million dollars from 39 companies in Iran, lead the national fight against delegitimation of Israel at the National Jewish Leadership Advocacy Day on Iran, and continue to be outspoken about Iran’s human rights violations on IranWatch.

JCRC’s Israel Education Center is sponsoring Iranian refugee Tabby Davoodi to speak at both the University of Illinois Urbana-Champaign and the University of Illinois at Chicago next week about her life in Iran after the Iranian revolution.

"Davoodi escaped Iran with her family during the height of tension between Iran and West," said Erez Cohen, Israel Fellow at UIUC’s Hillel. "Her personal stories, photographs and reflections will shed light on one of the most significant emerging powers in the world today, and why events occurring in Iran impact the lives of every American."

Widespread support for this event is indicative of a growing movement on both the UIUC campus and across the country. This movement is characterized by concern about Iran's ongoing human rights violations, the fraudulent 2009 presidential election and subsequent brutal repression of citizen dissent, as well as the threat that Iran's nuclear ambitions pose to the Middle East and the rest of the world. The event at UIUC is being co-sponsored by College Republicans, College Democrats, Sexual Health Peers, AEPi, Philippine Student Association, Illini Conservatives Union, Chabad, ZBT, and StandWithUs.”

Posted: 9/29/2010 1:04:45 PM

www.juf.org/news/local.aspx?id=63942

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Wednesday, September 29 2010

All Times ET Next .9:30 am The Vice President meets with Senator Carl Levin
Closed Press

11:05 am The President meets with Des Moines family
Local Event Time: 10:05 AM CDT
Des Moines, Iowa, Private Residence
Travel Pool Coverage

11:15 am The President holds a discussion on the economy
Local Event Time: 10:15 AM CDT
Des Moines, Iowa, Private Residence
Open to pre-credentialed media

12:45 pm The President departs Des Moines, Iowa en route Richmond, Virginia
Local Event Time: 11:45 AM CDT
Des Moines International Airport
Open Press

2:45 pm The President arrives Richmond, Virginia
Richmond International Airport
Open Press

3:20 pm The President meets with Richmond family
Richmond, Southampton Recreation Association, Virginia
Travel Pool Coverage

3:35 pm The President holds a discussion on the economy
Richmond, Southampton Recreation Association, Virginia
Open to pre-credentialed media

5:05 pm The President departs Richmond, Virginia en route Andrews Air Force Base
Richmond International Airport
Open Press

5:40 pm The President arrives at Andrews Air Force Base
Andrews Air Force Base
Travel Pool Coverage

5:55 pm The President arrives at the White House
South Lawn
Open Press

www.whitehouse.gov/schedule/complete

[sandi66]

Government's Plan to Sell Citigroup (C) Shares By Year End Could Fall Short

27 September 2010

The government's plans to sell all of its 7.7 billion common shares of Citigroup (NYSE: C) by year end may have been too ambitious, as slowing trading volume has impacted the Treasury's sale plan, the FT.com reported.

"The sales of Citigroup stock have slowed way down in July and August ," Linus Wilson, a professor of finance at the University of Louisiana, said. "The only option for the Treasury if it wants to exit Citigroup before the year-end seems to be to conduct a large secondary offering of the stake."

By the end of August, the government has sold less than half of its 7.7 billion shares, the report noted.

The government's current trading plan is set to expire on September 30, with or without it being completed, ahead of a quite period for third quarter earnings which is expected to begin on October 1.

Earlier in the month, StreetInsider.com reported that the government was nearing completing the sale of its latest 1.5 billion traunch. Even if the government completed the full sale of this traunch on time, it would still leave them with 3.6 billion shares remaining to sell before year end.

It would seem ambitious for the government to sell the remaining shares before year end using the current trading plan. However a stock offering, or share buyback by Citigroup itself could still make the year-end goal a reality.

Despite this minor set-back, there are two pieces of good news for Citigroup shareholders:
1. Citigoup shares tend to outperform the market when the government takes a break in selling the shares.
2. The government share sales will soon be out of the way, which could be a green light for a number of institutions to "buy, buy' buy."

www.streetinsider.com/Insiders+Blog/Government%27s+Plan+to+Sell+Citigroup+%28C%29+Shares+By+Year+End+Could+Fall+Short/5998470.html

[sandi66]

Please watch this video. Every view counts. ... and please email it to your contact list and ask them to watch. Thanks so much.


ireport.cnn.com/docs/DOC-497133 (video)


GOLDMAN Sachs Fat Fingers

iReport —

How does a company steal trillions of dollars a year from the American People and get fined $550 million and NO ONE even goes to jail. Where is the Media??? Where is the DOJ??




ty joye

[sandi66]

BDO: Wells Fargo partnership to grow remittance business

09/30/2010 | 05:43 PM

Banco de Oro Unibank Inc. (BDO), the bank controlled by shopping magnate Henry Sy, expects to corner a larger share of the money transfer business after it partnered with San Francisco, California-based lender Wells Fargo & Co.

As of end-June, the Philippine lender had a 30 percent market share of remittances in the Philippines.

BDO senior vice president Ismael Estela Jr. said Thursday that BDO — whose market share was 26 percent as of end-June 2009 — would grow further as it partnered with the San Francisco-based lender Wells Fargo & Co.

Wells Fargo, which had merged with US lender Wachovia, was ranked by Fortune magazine as the 19th largest corporation in the US last year.

The US lender has access to more than 10,000 banking stores and some 12,000 automated teller machines (ATMs) in North America, Estela said.

The partnership was announced only on Thursday and after the link to BDO’s 2,700 pickup stations in the Philippines was established for Wells Fargo account holders in North America.

“With this partnership with Wells Fargo, I think we should be able to grow our market share this year," Estela said.

BDO account holders in the Philippines may avail themselves of financial services via more than 7,000 automated teller machines interconnected among the banking networks of Megalink, Expressnet, and Bancnet, he noted.

“BDO is the country’s top remittance bank and Wells Fargo is likewise a very solid player in this arena. We certainly formed a formidable partnership — one that is designed to benefit our clients with even faster, secured, and reliable services," said Jonathan Diokno, senior vice president and head of BDO’s international remittance operations.

Daniel Ayala, Wells Fargo executive vice president for global remittance service, emphasized the essential role of overseas Filipino workers (OFW) in the economy, saying OFW remittances account for 11 percent of the gross domestic product.

“By helping our Filipino customers reach more locations throughout the country, we hope we can help them stimulate the economy of their homeland by supporting their family and friends," Ayala said.

The Bangko Sentral ng Pilipinas expected total remittances to reach $18 billion this year, from $17.348 billion last year.

www.gmanews.tv/story/202324/bdo-wells-fargo-partnership-to-grow-remittance-business

[sandi66]

Banking News: U.S. Treasury to Sell Citigroup, Inc (NYSE: C) Debt Securities

September 30th, 2010

The U.S. Department of Treasury said that it will sell some of the $2.2 billion worth of debt securities that it holds in Citigroup, Inc (NYSE: C), the latest in a series of debt and equity sales by the government in a move to divest itself from the New York-based bank.

Taxpayers invested more than $45 billion of capital into Citigroup, Inc (NYSE: C) in 2008 and 2009 through a series of emergency actions which lead to taxpayers owning 33% of Citigroup’s stock and more than $20 billion in company debt. Citigroup has since repaid the $20 billion in debt that it owed to the U.S. government at the end of 2009.

The Treasury Department is also in the process of selling off its Citigroup, Inc (NYSE: C) stock. The government started selling its stock in April and had sold 2.6 of the 7.7 billion shares it originally owned by July 23rd. The U.S. Treasury said that it had hoped to sell another 1.5 billion shares by September 30th.

The trust preferred securities in Citigroup, Inc (NYSE: C) will be sold in an offering lead by Bank of America Corp (NYSE: BAC)’s Merrill Lynch division, JPMorgan Chase & Co. (NYSE: JPM), Morgan Stanley (NYSE: MS) and UBS’ investment banking. The Treasury said that it hopes to sell the debt for at least their face value and any interest that the government has earned, but not yet received. The department said the actual amount of the debt that it sells will depend on market conditions.

Citigroup Inc. (Citigroup) is a global diversified financial services holding company. The Company provides consumers, corporations, governments and institutions with a range of financial products and services. As of December 31, 2009, Citigroup had approximately 200 million customer accounts and did business in more than 140 countries. Citigroup operates through two primary business segments: Citicorp, consisting of its Regional Consumer Banking (RCB) businesses and Institutional Clients Group (ICG), and Citi Holdings, consisting of its Brokerage and Asset Management (BAM), Local Consumer Lending (LCL), and Special Asset Pool (SAP). In April 2010, Barclays PLC acquired Italian credit card business of Citibank International Bank plc. In May 2010, the Company announced the creation of a new Collateral Management Services unit within its Securities and Fund Services business.

Shares of Citigroup, Inc (NYSE: C) traded up 0.97% during mid-day trading on Wednesday.

www.americanbankingnews.com/2010/09/30/u-s-treasury-to-sell-citigroup-inc-nyse-c-debt-securities/

[sandi66]

Foreclosure Errors Cloud Homeownership With `Blighted Titles'

By Kathleen M. Howley - Oct 1, 2010

U.S. courts are clogged with a record number of foreclosures. Next, they may be jammed with suits contesting property rights as procedural mistakes in those cases cloud titles establishing ownership.

“Defective documentation has created millions of blighted titles that will plague the nation for the next decade,” said Richard Kessler, an attorney in Sarasota, Florida, who conducted a study that found errors in about three-fourths of court filings related to home repossessions.

Attorneys general in at least six states are investigating borrowers’ claims that some of the nation’s largest home lenders and loan servicers are making misstatements in foreclosures. JPMorgan Chase & Co. is asking judges to postpone foreclosure rulings, while Ally Financial Inc. said Sept. 21 its GMAC Mortgage unit would halt evictions. The companies said employees may have completed affidavits without confirming their accuracy.

Such mistakes may allow former owners to challenge the repossession of homes long after the properties are resold, according to Kessler. Ownership questions may not arise until a home is under contract and the potential purchaser applies for title insurance or even decades later as one deed researcher catches errors overlooked by another. A so-called defective title means the person who paid for and moved into a house may not be the legal owner.

‘Nightmare Scenario’

“It’s a nightmare scenario,” said John Vogel, a professor at the Tuck School of Business at Dartmouth College in Hanover, New Hampshire. “There are lots of land mines related to title issues that may come to light long after we think we’ve solved the housing problem.”

The costs for title insurers to defend customers and reimburse for lost properties rose 14 percent to $480.5 million in 2010’s first half from a year earlier, according to American Land Title Association, a Washington-based industry group.

Fidelity National Financial Inc. of Jacksonville, Florida, is the largest insurer, with 38 percent of the market in the second quarter, the association said. First American Title Insurance Co., a unit of Santa Ana, California-based First American Financial Corp., is No. 2, with a 27 percent share.

Fidelity National said today that any documentation flaws “will not have a material impact on its title business.” Even if a court stops a foreclosure because of title problems, “the foreclosing lender would be required to return to our insureds all funds obtained from them, resulting in no loss under the title insurance policy,” the company said in a statement.

Shares Drop

Fidelity National shares fell 4.3 percent to $15.04 at 4:15 p.m. in New York Stock Exchange composite trading, the biggest decline in 11 months. First American Financial sank 3.1 percent to $14.48, the most since Sept. 7.

Title insurers use their records and public documents to verify a seller is the home’s true owner and that the property is free from liens. They collect a one-time premium and pay costs that may arise if someone challenges a new owner’s right to the property. To obtain a mortgage, buyers are required to purchase a policy to protect the lender. Many people also get a so-called owners policy to protect themselves.

“Title is everything,” said Susan Wachter, a real estate professor at the University of Pennsylvania’s Wharton School in Philadelphia. “There’s no collateral without possession, and that is title.”

Mortgage Distress

Almost one-fourth of U.S. home sales in the second quarter involved properties in some stage of mortgage distress, RealtyTrac Inc. said yesterday. In August, lenders took possession of record 95,364 homes and issued foreclosure filings to 338,836 homeowners, or one out of every 381 U.S. households, according to the Irvine, California-based data seller.

The biggest deficiency in foreclosure suits is missing or improperly handled documents, Kessler found in his study of court filings in Florida’s Sarasota County. When home loans are granted, borrowers sign a promissory note outlining payment obligations and a separate mortgage that puts an encumbrance on the property in the lender’s name. If mortgages are resold, both documents must be properly conveyed to prevent competing claims.

Most of the document errors involved mortgages that had been bundled into securities sold to investors, Kessler said. At the end of the U.S. real estate boom in 2005 and 2006, about 70 percent of the $6.1 trillion in mortgage lending was packaged into bonds, according to the Securities Industry and Financial Markets Association in New York.

‘Proper Trail’

Typically, bundling a mortgage involved three transactions: originators sold loans to companies that packaged them, those firms sold the loans to interim trusts, and then they were put into bonds, Kessler said.

“A mortgage has to follow the proper trail every step of the way, or you have title problems,” he said.

In some cases, mortgages were conveyed using the Reston, Virginia-based Mortgage Electronic Registration System, or MERS, designed to cover transfers among system members. Promissory notes also often were endorsed as payable to the bearer to avoid the need for multiple transfers. Both practices have been challenged in court.

Copies of documents aren’t enough to establish rights, just as copies of dollar bills wouldn’t be honored by a bank, said Geoff Walsh, an attorney with the National Consumer Law Center in Boston. In cases of lost or mishandled paperwork, attorneys may file affidavits and other evidence to correct omissions and establish a claim, Walsh said.

Lost Paperwork

Given the volume of mortgage securitization, it was easy for paperwork to get lost, said Kathleen Engel, a financial services law professor at Suffolk University in Boston.

“Wall Street was very good at packaging loans and making sure the money flowed to the right people, but not so good at keeping track of mortgage documents,” Engel said. As a result, “we have a growing number of toxic titles,” she said.

GMAC, based in Detroit, said in a Sept. 20 statement that it had told its brokers and agents there might be issues with “judicially required forms” tied to home repossessions. An employee said in a December 2009 deposition that he signed thousands of documents without verifying their accuracy.

“If I were in the title industry, or a mortgage holder, or someone who bought a foreclosed property, this is something I would be very worried about,” said Michael Carliner, a Potomac, Maryland-based economic consultant specializing in housing.

State Investigations

Attorneys general in Florida, Texas, Iowa, Illinois, North Carolina and Connecticut have started their own investigations into GMAC. In addition, Florida investigators have issued subpoenas to three law firms after homeowners facing eviction said the firms pursued foreclosures without following proper procedure.

JPMorgan must prove its home foreclosures are legal, and if it can’t, must stop the practice, California Attorney General Jerry Brown said today. He made a similar demand on Sept. 24 of GMAC.

“This is the most important issue of the whole mortgage mess because families are being thrown out of their homes by people who may not have the right to do that,” said Glenn Russell, a Fall River, Massachusetts, real estate attorney who won a case last year that reversed a foreclosure because of faulty paperwork.

Mark and Tammy LaRace, his clients, were able to move back into their Cape Cod-style house in Springfield, Massachusetts, more than two years after they were evicted.

In February, Judge Keith Long of the Massachusetts Land Court reaffirmed his 2009 decision to return the house to the LaRaces. San Francisco-based Wells Fargo & Co., which initiated the suit in an attempt to clear the property’s title after it foreclosed on it, has appealed the decision. The case now is under consideration by the state’s Supreme Judicial Court.

www.bloomberg.com/news/2010-10-01/foreclosure-errors-cloud-homeownership-with-millions-of-blighted-titles-.html

[sandi66]

SEPTEMBER 30, 2010, 2:08 P.M. ET

'Flash Crash' Report Could Come Friday

WASHINGTON—Regulators are close to releasing a report on the causes of the May 6 "flash crash."

The Securities and Exchange Commission staff is expected to circulate final copies of the report to all five SEC commissioners soon, a person familiar with the matter said, making it possible the report could be released by Friday.

Two of the agency's five commissioners, Elisse Walter and Kathleen Casey, are out of the country, a possible complication in securing release of the report. A majority of the five SEC commissioners must sign off on its release.

Sources familiar with the issue said the long-awaited "flash crash" report, expected to run about 100 pages, isn't likely to point to a smoking gun or any novel explanation for the dive in the U.S. stock market that day.

Rather, it will present a detailed account of the events that day, showing that a confluence of factors led to the plunge that wiped out roughly $862 billion in equity-market value in less than 20 minutes.

Markets that day were already down heavily on fears around European debt problems when a number of large trades in derivatives markets fueled heavy selling in stocks. Some exchange systems became bogged down with the flow of market data, which prompted several major trading firms to cease trading activity, reducing the pool of available liquidity.

The report was prepared jointly by staff of the SEC and the Commodity Futures Trading Commission, which have in recent days been in discussions over precise wording in the text, fueling speculation the report's release would slip into next week.

All five SEC commissioners are expected to authorize the report's release.

The document aims to give a definitive account of the events that day, including second-by-second descriptions of parts of the day when rattled traders fled the markets, people familiar with the report said.

A draft of the report circulated to SEC commissioners over the weekend didn't proscribe any policy changes, nor did it attempt to nudge regulators to pursue certain reforms, according to a person who has seen it.

While no major revelations are expected in the report, market participants and regulators have voiced hope that a thorough accounting of the multiple factors playing into the market swings of May 6 will help boost investors' confidence in the market.

Stock trading activity in the third quarter of 2010 has dropped about 27% from second-quarter levels, according to figures from Barclays Capital, while trading in options and futures is off 21% and 15%, respectively.

online.wsj.com/article/SB10001424052748704483004575524071346805064.html


ty nalmann

[sandi66]

Alpert Says Fed May Seek More Stringent Rules Than Basel: Video

Sep 30, 2010 1:49 PM ET

Daniel Alpert, managing partner at Westwood Capital LLC, talks with Bloomberg's Julie Hyman and Mark Crumpton about the outlook for U.S. financial regulations.

Alpert also discusses Federal Reserve Chairman Ben S. Bernanke's testimony in Congress today and American International Group Inc.'s plan to wind down the government's stake in the company. (Source: Bloomberg)


www.bloomberg.com/news/2010-09-30/alpert-says-fed-may-seek-more-stringent-rules-than-basel-video.html

[sandi66]

Wells Fargo Eliminates Canadian Brokerage Business Citing New Regulations, More Banks Will Rethink Strategy Once Reform Hits U.S. And Europe

Sep. 30 2010 - 2:26 pm

Hits U.S. And Europe
By HALAH TOURYALAI

Wells Fargo Advisors closed 2,000 client accounts in Canada after new regulatory reform was implemented.

While Goldman Sachs’ CEO warned Europe yesterday that too much regulation would tempt banks to leave the region, Wells Fargo had already made such a decision in Canada.

A Wells Fargo spokesperson says the new regulations there required it to set up a Canadian-based operation that would be regulated separate from its U.S operations. He says the firm wasn’t interested, and stopped offering services in Canada on September 28.

It’s important to note that Wells had no actual offices in Canada. Instead, it served 2,000 brokerage clients there (mostly American expatriates ) through its U.S. offices. The company could not say what sorts of assets were left behind but the figure is likely insignificant compared with its domestic business.

But what’s important about this move is that a large financial institution made a decision to close a part of its business in one country strictly because of newly implemented regulations there. Sure 2,000 clients are merely a drop in the bucket for Wells Fargo which boasts over 13,000 U.S. financial advisors, but will more such exits take place when new financial regulations are finally enforced in the U.S. and Europe?

One Barclays Capital analyst says banks will no doubt alter how and where they do business once regulations are finalized across Europe and the U.S. “If the regulations are cost prohibitive and restrictive then banks will figure out if it’s worth running certain parts of their businesses in certain countries,” he says.

Alois Pirker, a research director at Aite Group who specializes in wealth management trends, says, “Just about every country it seems has new financial regulations coming down. Firms are going to be calculating whether it’s worth the effort to comply with them or if they should withdraw altogether.”

It’s too early for most banks to make those decisions though since the financial regulatory changes that will have the most impact on banks, like Dodd-Frank bill in the U.S. and Europe’s proposed overhaul, are still pending.

But it’s clear that retail financial services units are going to be closely watched since they deal mostly with individual investors. Consumer protection is a major issue that’s getting lots of attention from governments. That’s clear here at home where the newly developed Consumer Financial Protection Bureau was formed. The bureau will have the authority to investigate and enforce violations much like the SEC. That extra layer of regulation will come at a cost for many banks, particularly small ones.
The extra costs and labor required to comply with new regulations will force some firms to give up parts of their business. For instance, if the retail brokerage arm of a bank is not a huge revenue generator, then it might be put up for sale.

And as Pirker points out, “You will see some firms bow out. But that will create opportunities for other banks to come in and scoop up the ones trying to get out of the business.”

blogs.forbes.com/halahtouryalai/2010/09/30/wells-fargo-eliminates-canadian-brokerage-business-more-banks-will-follow-suit-in-u-s-and-europe-once-reform-hits/?boxes=financechannellatest

[sandi66]

Canadian Swiss accounts probed - PM vows to 'aggressively' pursue tax evaders after stolen bank information handed to investigators

October 1, 2010 2:12 AM


French investigators are probing some 1,500 Canadian-registered Swiss bank accounts at HSBC as part of a crackdown on unreported wealth, the head of Canada's revenue agency said Thursday.

Authorities are looking into accounts obtained from a former HSBC worker who allegedly stole the records from the bank and handed them over to investigators. Canadian tax authorities are working with the French investigatorsGu

HSBC, Europe's largest bank, said it was co-operating with the probe.

The paper trails marks the latest breach of strict bank secrecy laws that make Switzerland a popular tax haven, and comes as Canadians are increasingly storing money in offshore tax havens.

"The largest accounts are now being audited, and others will follow. All accounts that are linked to Canadian taxpayers will be reviewed," Keith Ashfield, minister of national revenue, said in a statement.

Canada will "aggressively" pursue tax evaders, Prime Minister Stephen Harper told the House of Commons on Thursday.

"This government will continue to go aggressively after tax evaders," the PM said. "If Canadians are using Swiss bank accounts to avoid paying taxes in Canada, these citizens will face the full force of the law."

"The largest accounts are now being audited, and others will follow," said the Canada Revenue Agency.

While it is not illegal for Canadians to hold Swiss bank accounts, they must declare all their income to Canadian tax authorities.

No allegations of wrongdoing by Canadians were mentioned by the minister or in initial media reports about the probe.

Government and academic studies in recent years say that Canadian investments in offshore tax havens has ballooned in the past decade.

"If havens are used to evade legal taxes, the government will use all the force of the law against these citizens." Canadian Prime-Minister Stephen Harper said during a parliamentary back-and-forth with opposition members on the subject of the probe.

Switzerland is the world's biggest wealth manager with 27 per cent of global offshore assets, followed by Britain and Luxembourg.

Its status was tarnished last year following a d**ning U.S. tax probe that revealed UBS had helped Americans seeking to hide money abroad. The U.S. Internal Revenue Service has recovered billions in lost taxes as part of the investigation.

Canada has requested that UBS hand over the names of Canadian clients suspected of tax evasion. A number of Canadians agreed to settlements totalling tens of millions of dollars.

A spokesman for HSBC noted that the bank was also a victim of a criminal act, pointing to the theft of the records.

"HSBC in no way condones tax evasion and is co-operating with authorities while protecting the rights of our clients to confidentiality." said Jezz Far, the bank's global head of media relations.

The documents in the French probe showed that proportionally more of the HSBC bank accounts were held by Canadians than Americans, who had about 1,600 accounts, according to a report by the Globe and Mail newspaper and Canadian Broadcasting Corporation.

The Globe report also said that as many as 1,800 accounts were being looked at.

It was unclear how much money are in the accounts, but the HSBC employee who gave the documents to investigators told the Globe that clients were required to deposit a minimum of $500,000 each.

"Tax cheating is a crime. We will use any necessary measures to ensure this law is abided by," said Canadian Revenue Minister Keith Ashfield.

www.edmontonjournal.com/news/Canadian+Swiss+accounts+probed/3607512/story.html

[sandi66]

Posted: 3:25 AM Oct 1, 2010

President Obama To Make Announcement Friday
President Obama says he'll make a personal announcement Friday and although he won't say what it is, it's expected to be about the departure of his Chief of Staff.


President Obama says he'll make a personal announcement Friday and although he won't say what it is, it's expected to be about the departure of his Chief of Staff.

Rahm Emanuel is expected to resign from his White House position Friday and begin his campaign for Mayor of Chicago.

The President's event is also likely to include another announcement naming an interim or permanent replacement for Emanuel. That person is said to be Senior Adviser Pete Rouse.

The President is likely to choose a permanent Chief of Staff after the Nov. 2 midterm elections.



www.witn.com/news/headlines/104136608.html?ref=608