Tuesday, November 3, 2009

Financial Times

From World 8:07am

Karzai vows inclusive government

Hamid Karzai Reuters

Pledge to crack down on corruption

From World 9:32am

Australian recovery spurs second rate rise

Quarter-point increase brings rate to 3.5%

From Markets 9:08am

Gold nears record high on India purchase

IMF’s 200-tonne sale prompts speculation of further buying by central banks

Lloyds and RBS logos From Companies 8:24am

UK unveils latest bank shake-up

RBS and Lloyds agree to limit bonuses

UBS Agence,France-Presse From Companies 8:30am

Client outflows take their toll on UBS

Bigger-than-expected loss due to one-off charges

From World 10:03am

N. Korea makes arms-grade plutonium claim

Analysts says North has enough plutonium for one bomb

From World 5:56am

Senior US officials arrive in Burma

Highest-level talks with regime for 14 years

From Companies 11:14pm

Goldman holds stake in China group battling M Stanley

Case highlights China’s derivatives disputes

A worker at an aluminum products factory welds pieces of the metal together in Beijing, China From World 7:19pm

Stronger signs of global recovery

Manufacturing output rises across the world

From World 8:37am

Czech court dismisses Lisbon treaty objection

Ruling removes last obstacle to treaty ratification

US businesses at risk as lender CIT Group files for bankruptcy

The CIT Group headquarters in New York

• Restructure enables CIT to cut debt and continue trading
• US taxpayers stand to lose last year's $2.3bn state bailout

The CIT Group headquarters in New York. Photograph: Bebeto Matthews/AP

Thousands of small and medium-sized businesses in the US face financial difficulties and could go out of business after lender CIT Group filed for bankruptcy protection last night.

Although the company will keep operating, it is unlikely to be able to make the same number of loans as before. CIT provides working capital to small firms such as shops, their suppliers and restaurants, many of whom are already struggling in the recession.

In one of the the biggest corporate failures in US history, CIT made its filing in the New York bankruptcy court yesterday, after a debt-exchange offer to bondholders failed. CIT said most of its bondholders have agreed a prepackaged reorganisation plan which will reduce total debt by $10bn (£6.1bn) while allowing the company to continue to do business.

The collapse is also bad news for US taxpayers, who stand to lose the $2.3bn provided last year to prop up the troubled lender.

Creditors will end up owning the company, while common and preferred shareholders – including the US government – will be wiped out by the plan. This is the government's biggest loss yet through its Troubled Asset Relief Programme (Tarp).

"The decision to proceed with our plan of reorganisation will allow CIT to continue to provide funding to our small business and middle-market customers, two sectors that remain vitally important to the US economy," said CIT's chairman and chief executive, Jeffrey Peek, who will step down by the end of the year.

But retail trade groups are worried that many shops will be left without financing – and stock – ahead of the crucial Christmas season, with traditional banks also cutting back credit.

CIT has provided funding to 2,000 firms that supply merchandise to more than 300,000 stores. About 60% of America's clothing industry depends on CIT for financing.

Harold Reichwald of law firm Manatt, Phelps & Phillips said CIT's case is likely to force the company's customers to look elsewhere for financing.

"If I was a small businessman, I would say to myself, 'I have to find alternatives'," he said. "In this marketplace, there aren't a lot of alternatives."

$258,900 for a Condo in Santa Monica? One Catch. It is 400 Square Feet. Attorney General Has Eyes Set on Option ARMs.

I have been covering the option ARM fiasco for a very long time now and as I have highlighted before, this is very much a California problem. Apparently I’m not the only one that has realized that option ARMs are a ticking time bomb just waiting to go off. None other than our own attorney general, Jerry Brown is going after the top option ARM banks and servicers. He has a few of the same questions that we have. How in the world are banks going to deal with the coming recasts? Have banks done anything since the crisis has started in addressing these loans? Inquiring minds would like to know.

The AG has been busy in the last year. He went after toxic mortgage poster child Countrywide successfully and recently, has gone after State Street. Jerry Brown recently came on CNBC regarding State Street:

cnbc jerry brown

Source: Zero Hedge

If anything, the AG is one of the few people that is actually going after the crony bankers and Wall Street for their financial robbery against the U.S. We should be saluting the AG for this. Instead, CNBC with their typical pandering and cheerleading for Wall Street tries to make a mockery out of the interview:

“I don’t dispute that $56 million is a lot of money, I don’t dispute the merits of the suit but you had a big press conference, you’re coming on C….N….B….C…. all this surrounding publicity over this $56 million, what do you say to people who look at this and say this is a perfect example of the demagoguery that attorney generals [sic] use when they want to run for governor.”

This is precisely what is fundamentally wrong with the financial press. Here we have a public official who has gone after Countrywide, is going after State Street, and is now openly questioning the practice regarding option ARMs that are arguably the worst loan products ever devised and CNBC has the gall to mock him for “$56 million” because in their journalistic circles, this is a tiny amount that only the proletariat would worry about. Contrary to their comrade circles, $56 million is a lot of money plus, there is the need to stop the financial thievery that has engulfed this country. Who else is going after these institutions legally? I realize that next year is a big election year and Jerry Brown is the front leading Democrat but come on financial press, we should be seeking out folks like this and Elizabeth Warren who are actually on the side of the consumer.

So what is in the letter you ask?

Global anti-Semitism demands a united response

The recent desecration of a Jewish cemetery in south Ottawa should be a wake-up call. The beast of anti-Semitism is back.

In Europe, politicians who deny the Holocaust or trivialize the massacre of Jews are elected to the European Parliament.

The Swedish left-wing paper, Aftonbladet, recently published an article claiming that Israeli soldiers kidnap and kill Palestinians to extract and sell their organs. This is the blood libel first put into circulation in the middle ages in England by anti-Jewish priests.

Another of the old anti-Semitic stereotypes is that of the secret cabal or lobby manipulating events behind the scenes to the profit and interest of Jews. A U.S.-based website called "Uncle Semite" has just published a 19-volume "catalogue of Jewish names" with 220,000 listed so that they can be sent anti-Semitic e-mails.

In Britain, the leader of the anti-Jewish National Party has been elected to the European Parliament. There, alongside openly anti-Semitic MEPs from Hungary, France, Belgium and Italy, he enjoys parliamentary immunities and lavish allowances and expenses to spend peddling his poison.

Or take the Hungarian MP, Oszkar Molnar, who speaks for the main opposition party, Fidez. He said Hungary was under threat from "global capital -- Jewish capital if you like -- which wants to devour the entire world, especially Hungary." His party is set to win power next year and his anti-Jewish remarks have been defended by the party leadership.

Then there are the difficulties of Britain's Conservative Party. Its leader, David Cameron supports Israel and is a sincere friend of Britain's Jewish community. But his hardline anti-EU associates have made an alliance in Europe with oddball Latvian politicians who celebrate the Waffen SS conscripts from Latvia despite the widespread massacres of Jews in the country during the war. British members of the European Parliament are led by a Polish politician, Michal Kaminski, who was formerly a member of a neo-Nazi party as a young man and has said Jews should apologize for killing Poles in the Second World War.

It is as if Europe's nerve-endings on anti-Semitism have atrophied and a new tolerance of what a few years ago was politics beyond the pale is now the norm. At the same time global anti-Semitism has the endorsement of state leaders such as Iranian President Mahmoud Ahmadinejad and is propagated throughout Europe by a network of Wahabi mosques and preachers financed by Saudi Arabia. Egypt recently tried to install its Culture Minister, Farouk Hosni, as head of Unesco despite his call to burn Israeli books at Cairo University. He was defeated but only by a handful of votes and nation after nation at Unesco were ready to vote for a man with his record as the UN's education and culture supreme.

Dislike of Israel has permitted dislike of Jews to become tolerated politics again. Of course to criticize Israel is not anti-Semitic. But Jews in Canada, Britain or elsewhere in the world should not be made to feel that their beliefs and affinities can face a new anti-Semitism when other forms of racism are combatted.

That is why the initiative of the Canadian Parliament to set up its own commission of inquiry into anti-Semitism, which will begin hearings today, is to be welcomed.

I have the honour of representing the British House of Commons after I chaired a similar commission of inquiry which reported in 2006. There was no doubt after our evidence sessions and visits outside of London that British Jews faced levels of anti-Semitic pressure that was not acceptable in a modern democracy. Girls frightened to wear a Star of David chain, boys jostled on their way home from school if they sported a kippa were minor incidents, if frightening enough for students. Worse were the attacks on rabbis or Hasidic students and the organized network of anti-Semitic Islamist ideologues making university life a misery for Jewish students if they did not bow to the anti-Israel hate of Hamas and Hezbollah.

Now is time for a fightback. Government departments, editors, university leaders, diplomats and all decent politicians have to wake up to the return of organized anti-Semitism in too many of the world's democracies. Canada is showing a lead in North America but the struggle against 21st-century anti-Semitism has to be global or it will fail.

Denis MacShane, a British MP, was No. 2 at the Foreign Office under Tony Blair. He chaired the British House of Commons Commission of Inquiry into Anti-Semitism. He will be talking about his new book "Globalising Hatred: the new Antisemitism" in Ottawa and Toronto.

By Denis MacShane, Citizen Special

Cheney Failed to Answer 72 FBI Questions

(AP) Federal prosecutor Patrick Fitzgerald famously declared in the Valerie Plame affair that "there is a cloud over the vice president." Last week's release of an FBI interview summary of Dick Cheney's answers in the criminal investigation underscores why Fitzgerald felt that way.

On 72 occasions, according to the 28-page FBI summary, Cheney equivocated to the FBI during his lengthy May 2004 interview, saying he could not be certain in his answers to questions about matters large and small in the Plame controversy.

The Cheney interview reflects a team of prosecutors and FBI agents trying to find out whether the leaks of Plame's CIA identity were orchestrated at the highest level of the White House and carried out by, among others, I. Lewis "Scooter" Libby, Cheney's chief of staff.

Among the most basic questions for Cheney in the Plame probe: How did Libby find out that the wife of Bush administration war critic Joseph Wilson worked at the CIA?

Libby's own handwritten notes suggest Libby found out from Cheney. When Libby discovered Cheney's reference to Plame and the CIA in his notes - notes that Libby knew he would soon have to turn over to the FBI - the chief of staff went to the vice president, probably in late September or early October 2003.

Sharing the information with Cheney was in itself an unusual step at the outset of a criminal investigation in which potential White House witnesses were being ordered by their superiors not to talk to each other about the Plame matter.

"It turns out that I have a note that I had heard about" Plame's CIA identity "from you," Libby says he told the vice president.

And what did Cheney say in response? Fitzgerald asked Libby in front of a federal grand jury six months later.

"He didn't say much," Libby replied. "You know, he said something about 'From me?' something like that, and tilted his head, something he does commonly, and that was that."

Cheney's version of the conversation, as related in the FBI interview summary?

Cheney "cannot recall Scooter Libby telling him how he first heard of Valerie Wilson. It is possible Libby may have learned about Valerie Wilson's employment from the vice president ... but the vice president has no specific recollection of such a conversation."

On another basic point, Cheney simply refused to answer.

Fitzgerald had gathered evidence that Cheney apparently persuaded President George W. Bush to hurriedly declassify portions of a prewar National Intelligence Estimate on weapons of mass destruction in Iraq. The declassification was followed by Libby providing the information to a New York Times reporter while simultaneously talking to reporters about Plame's CIA identity.

As Fitzgerald pressed the issue in the FBI interview, Cheney refused to confirm any discussion with Bush, saying that he must refrain from commenting about any private or privileged conversations he may have had with the president.

It was an instance of Libby, who had testified two months earlier to a federal grand jury, being more forthcoming than Cheney.

Prosecutors obtained information about the leaking of the declassified NIE from Cheney's chief of staff, who testified that he had talked to New York Times reporter Judith Miller about the National Intelligence Estimate following the "president's approval relayed to me through the vice president."

Cheney's FBI interview is a study in contrasts.

Expressing uncertainty on many areas he was being questioned about and refusing to discuss another area altogether, Cheney was emphatic on at least one basic point.

According to the FBI summary, Cheney said there was no discussion of using Plame's employment with the CIA to counter her husband's criticism that the Bush administration had manipulated prewar intelligence to exaggerate the Iraqi threat. There was no discussion, Cheney insisted, of "pushing back" on Joseph Wilson's credibility by raising the issue of nepotism, the fact that Wilson's wife worked for the CIA, the same agency that dispatched him to the African nation of Niger to run down the report of an agreement to supply uranium "yellowcake" to Iraq.

It was one example of Cheney being categorical and Libby seeming uncertain.

"In a prior FBI interview, you indicated it was possible that you may have talked to the Vice President on Air Force Two ... about whether you should share the information with the press about Wilson's wife?" the prosecutor asked Libby in his grand jury testimony.

"It's possible that would have been one of the times I could have talked to him about what I had learned," Libby replied.

"As you sit here today, do you recall whether you had such a conversation with the vice president on Air Force Two?" the prosecutor asked.

"No, sir. My, my best recollection of that conversation was what I had on my note card which we have produced which doesn't reflect anything about that," Libby replied.

Libby was indicted, tried and convicted for perjury, obstruction and lying to the FBI. The president commuted his 30-month prison sentence, but rejected Cheney's pleas in the last days of the administration to pardon the vice president's former chief of staff.

The Cheney interview summary was released Friday to the watchdog group Citizens for Responsibility and Ethics in Washington, which sued to get the material under the Freedom of Information Act.

10/30/09 Peter Schiff on Fox Business: Double-Dip Recession

Check this link ...... http://bit.ly/1PUu7d

Ukraine "mutated" H1N1 Swine Flu has killed 3000 people very quickly, NO CURE, NO VACCINE PNEUMONIC

Check this link ....... http://bit.ly/G7DIM