Financial Crisis Panel Blames Wall Street Executives, Nasdaq Stock Exchange Hacked, “Some Evidence” Points to Russia, U.S. Intelligence Reveals that Religious Extremists in Yemen Could Be Plotting to Strike Wall Street
The congressionally appointed panel assigned to probe the origins of the 2008 credit crisis heaped blame on “reckless” Wall Street firms and “weak” federal regulators, concluding the meltdown could have been avoided.
“The captains of finance and the public stewards of our financial system ignored warnings and failed to question, understand and manage evolving risks within a system essential to the well-being of the American public,” the Financial Crisis Inquiry Commission wrote in a 545-page book outlining its conclusions. “Theirs was a big miss, not a stumble.”
A copy of the book obtained by Bloomberg News, a paperback emblazoned with a U.S. seal, faults the Securities and Exchange Commission and the Federal Reserve for failing to clamp down on the banks they supervised. It singles out former Fed Chairman Alan Greenspan for backing “30 years of deregulation.”
Continue Reading >> Bloomberg | January 26, 2011
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Nasdaq Hacked: World’s Second Biggest Exchange Admits to Finding ‘Suspicious Files’ on Computer Servers
The Nasdaq stock exchange operator has been attacked by hackers after ‘suspicious files’ were discovered on its US computer servers.
Bosses have called in the FBI and US Department of Justice to carry out an urgent investigation, but insist its trading platforms – allowing shares to be bought and sold in companies including Google, Apple and Amazon – have not been hit.
Nasdaq’s internet-based programme, Director’s Desk, which allow directors of major companies to share information was ‘potentially affected’, the operator said.
Continue Reading >> The Daily Mail | February 6, 2011
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U.S. Intelligence Fears Al-Qaeda Plotting to Strike Wall Street
U.S. intelligence officials are informing the heads of some of the country’s most powerful financial entities that Yemeni-based al-Qaeda operatives could be plotting terrorist strikes against Wall Street banks or their top managers, NBC News reported on Tuesday.
Security sources are emphasizing the danger is not specific and that there “is no indication of a targeted assassination plot” toward any banking leaders. Officials, though, worry that foreign-based extremists have talked about targeting specific individuals.
Intelligence researchers said there is a nonspecific but increasing fear that extremists in Yemen could make another attempt at shipping hidden explosive devices or chemical and biological weapons materials to New York financial institutions.
Continue Reading >> GlobalSecurityNewsWire | February 6, 2011
Chinese Espionage and French Trade Secrets
Paris prosecutor Jean-Claude Marin on Jan. 14 began an inquiry into allegations of commercial espionage carried out against French carmaker Renault. The allegations first became public when Renault suspended three of its employees on Jan. 3 after an internal investigation that began in August 2010. Within days, citing an anonymous French government source, Reuters reported that French intelligence services were looking into the possibility that China played a role in the Renault espionage case. While the French government refused to officially confirm this accusation, speculation has run wild that Chinese state-sponsored spies were stealing electric-vehicle technology from Renault.
Stratfor | January 20, 2011
General Electric CEO: China to Replace U.S. as Top Economic Power
For Jeff Immelt, the CEO of General Electric (GE.N), the 130 year-old American industrial behemoth, the financial crisis marked the end of the age of America’s economic dominance.
Reuters | January 20, 2011
Crouching Dollar, Floating Yuan
The Chinese President Hu Jintao is enjoying the red-carpet treatment in Washington DC against a backdrop of increasing tension between his country and the US.
As the two leaders meet, a number of US lawmakers are demanding again that China allow its currency to float against the dollar – arguing that a weak yuan is hurting American business.
But is China really listening? Its global expansion takes in every corner of the globe. And its influence is growing. Will this be China’s century? Will the US have to live in China’s shadow? Inside Story, with presenter David Foster, discusses.
Al Jazeera English | January 20, 2011
Dollar’s Dominance ‘Product of the Past’
China’s president today raised grave questions over the future of the dollar by claiming it should no longer be used as the world’s reserve currency.
Hu Jintao said that using the American currency as the default for international trade and investment was a ‘product of the past’.
In unusually frank comments he said that even though the arrangement had stood in place since the end of Second World War, now was the time to reassess.
The Daily Mail | January 17, 2011
Brazil: The World’s Next Economic Superpower?
Steve Kroft Reports on the Country That is Poised to Become the Fifth-Largest Economy in the World.For decades, the joke about Brazil has been that it’s the country of the future – and always will be. Despite enormous natural resources, it has long displayed an uncanny ability to squander its vast potential. Now it’s beginning to look like Brazil may have the last laugh.
CBS News | December 12, 2010
Economic Growth and Financial Activity in South America
Paraguay tops the list as the region’s winner, with almost 10 percent of economic growth, followed closely by Uruguay, Argentina, Brazil, Mexico, Chile and Venezuela, according to the United Nations Economic Report, a recently released document detailing world financial activity over the past year. Press TV’s Melissa Abalo reporting from Buenos Aires.
Press TV | January 7, 2011
Jordan, Syria, Lebanon and Turkey Steering their Way towards Economic Integration
A Jordanian official says Jordan, Syria, Lebanon and Turkey have moved closer to economic integration.
The official Petra agency said Thursday that the countries signed an agreement establishing a committee to unify their legislation to enhance economic integration.
It quoted Transport Minister Alaa Batayneh as saying Jordan has been tasked to draw up joint plans to develop the transport sector. Syria is to work on energy, Lebanon on tourism and Turkey on industry.
Batayneh also says the ministers want to draw up a regional transport plan, involving road and railway links.
Cumhuriyet | January 6, 2011
Argentina as a Testing Ground for Neoliberal Economic Policies
Michel Chossudovsky of the Centre for Research on Globalization joins us to discuss Argentina’s status in the economic new world order and how that country has served as a testing ground for the neoliberal economic policies that have ravaged countries around the globe.
The Corbett Report | January 2, 2011
China Considers Buying European Debt
Analyst Marko Papic examines speculation that China is considering buying European outstanding debt in 2011.
Stratfor | January 3, 2011
Rising Fuel and Food Prices in India
Rising fuel and food prices in India are reviving inflation fears. During the past year, the nation’s food price index rose 12.13 percent. Basic vegetables are of main concern as consumers complain about being unable to afford certain dietary staples. The price of onions, for example, has risen by 350%. Up-scale restaurants have also seen a steady increase in prices these last six months, effecting their profit margins. Although they are able to absorb the price hike right now, the question that remains is: for how long? In an effort to ease the sting, India’s embattled government banned onion exports and scrapped import duties. High food inflation has dislodged state governments in the past. India’s Congress party that leads the ruling coalition has to come up with a solution before the partial state elections later this year.
AlJazeera English | January 2, 2011
Japan Economy Continues to Slide
The Christmas shopping season has arrived in Tokyo, but there is little good news to be heard when it comes to the Japanese economy. Two new economic surveys paint a picture of weakening growth: Core machinery orders fell a greater-than-expected 1.4% in October; and bank loans to companies fell 2.0% in November. And Slower growth in key overseas markets has cooled export demand.
Press TV | December 8, 2010
The U.S. economy: stand by for even worse news
What is happening in Europe is heading to America’s shores soon.
A top economic adviser to the Democratic Party, speaking on deep background, told WMR that the domino-like collapse of the economies of Iceland, Greece, Ireland, and, now, possibly Spain, is coming also to the United States.
One of the triggering mechanisms will be at the end of this month when two million idled workers, now collecting unemployment, will be dropped from the rolls. At the end of December, another two million workers will join the ranks of those who have exhausted their unemployment benefits and a total of 4 million Americans will be without unemployment checks and face destitution.
Four million Americans will put financial pressure on municipalities and state governments already facing bankruptcy. Unlike Iceland, Ireland, Greece, Portugal, and, to some extent, Spain, which have strong central government control, the United States is a federal republic and, as such, the collapse of the economy will be state-by-state and begin at the municipality level, according to our source who has contacts within the Obama White House and the Democratic leadership of the Congress.
Municipalities, which guarantee the pensions of their retired employees through the issuance of municipal bonds, will find themselves faced with bankruptcy and the “Muni” bonds will be rated at junk status. Municipalities unable to pay out pensions will discover their pension funds can be bailed out by the Pension Benefit Guaranty Corporation (PBGC) in Washington, a federal corporation set up by the Employee Retirement Income Security Act of 1974.When the first municipality declares bankruptcy and seeks a bailout from the PBGC, there will be a domino effect, with others seeing it as a quick way out. Soon, the PBGC will, itself, be forced into bankruptcy. WMR has been told by our source it is doubtful that a Republican Congress will be interested in bailing out the PBGC.
The wildfire of municipality bankruptcies will then spread to the states, with California and Illinois likely to be the first two states to default on their debts and declare bankruptcy.
In order to raise quick cash for a financially-desperate state government, California Governor Arnold Schwarzenegger plans to sell 24 state buildings, including the Earl Warren Building in San Francisco, headquarters for the California Supreme Court, and then rent them back from the new owners. However, such desperate moves by states, including the selling off of their turnpike systems and state buildings — with parks maybe next on the auction block — is not enough to forestall bankruptcy. Unlike the federal government, which can print as much cash as it likes and needs, states do not have that luxury. However, given the imminent collapse of the national economy, some states may decide to print their own currency, an act that would lead to the dissolution of the present 50-state union.
As far as bank accounts are concerned, our source recommended avoiding large national and regional banks that have a high percentage of toxic assets, especially in the commercial real estate area. The next major bust, after the residential real estate plunge, will be commercial real estate, where values of buildings and shopping centers have been halved. Our source sees smaller, state-based banks, as safer for account holders. Also, as more and more large shopping malls begin to close across the country, the unemployment numbers will also skyrocket.
WMR was also informed that President Obama will not seize the bully pulpit and level with the American people about who and what caused the present economic crisis. “Obama is subservient to his teleprompter,” the White House insider source said, “if he’d scrap the teleprompter and speak directly to the American people, he might help things, but right now, he’s a disaster.”
Wayne Madsen Report | November 24, 2010
Iran raises investment in Turkey
A Turkish union specializing in commerce says Iranian investors have entered partnerships with 276 firms established in the country in the first 10 months of 2010.
The overall number of firms that were set up in Turkey in the first 10 months of this year increased by 3.18 percent, IRNA reported, citing statistics released by the Chambers and Commodity Exchanges of Turkey (TOBB).
October 2010 alone witnessed a 16.11 percent rise in the number of foreign companies, the report adds.
In the same month, 216 firms were established in Turkey with Iranian investment alongside 26 German companies.
From January to October, 2,005 partnerships with foreign companies were established in Turkey, 276 of which were invested in by Iranians.
The report says that during the same ten-month period, 239 German companies, 124 Russian firms, and 107 Azerbaijani firms began work in Turkey.
Ankara’s policy of attracting foreign investment through economic liberalization does not discriminate between nationals or foreigners in opening firms.
Applicants are only required to comply with foreign investment regulations that mandate the employment of Turkish citizens.
Based on current regulations in Turkey, foreign investors can both establish a firm with 100 percent foreign investment or share the investment with Turkish nationals.
Press TV | November 23, 2010
Russia, Belarus, Kazakhstan abolish customs barriers
Russia, Belarus and Kazakhstan are abolishing the customs clearance of their citizens within the boundaries of their Customs Union, says the Kazakh Prime Minister Karim Masimov.
According to him, the three countries have reached agreement that customs clearance will have been altogether abolished in the framework of the Customs Union as of July 1st 2011.
So far it is only functionaries that have been exempted from customs clearance on the borders of the Customs Union member-nations.
The Voice of Russia | November 22, 2010
South Africa signs new trade pacts with China
South Africa and China inked a series of energy and trade deals Wednesday as the Asian economic power sought to secure minerals needed to fuel its booming economy.
The agreements were announced during a bilateral trade commission co-chaired by Chinese Vice President Xi Jinping and South African Deputy President Kgalema Motlanthe.
“For the growth path to be a success we require the support of partners such as China,” Motlanthe told reporters.
“We see the future destiny of our two countries as inextricably linked with the African continent.”
Xi, who is expected to be China’s next president, is on a three-day tour of South Africa to secure mineral rights and boost trade relations.
China, which last year overtook the United States to become South Africa’s largest export destination, mainly imports raw materials such as iron ore, as well as refined iron and steel, to fuel its booming economy.
Trade between the two countries last year totalled about 16 billion dollars. But the relationship was uneven, with South Africa posting a trade deficit of 2.7 billion dollars with China.
In August, South African President Jacob Zuma visited Beijing, signing a slate of cooperation deals on mineral resources, investment in railways, power transmission, construction, mining and nuclear power.
China has assembled an expansive investment portfolio in southern Africa, particularly in Zambia, Angola and Zimbabwe.
Xi is also expected travel to oil-rich Angola and Botswana in visits seen as securing China’s energy and resource deals there.
China has unveiled billions of dollars in loans and investment to African governments, which analysts have described as the second scramble for African resources after Western colonisation.
South Africa has lobbied extensively to join China in the BRIC group of countries, a coalition of emerging economies that also includes Brazil, Russia and India.
The countries are not officially linked but hold summits in an effort to bolster economic cooperation among them.
AFP | November 18, 2010
Currency War and the G-20
Analyst Peter Zeihan examines the potential for currency war between the United States and China and what is expected to emerge from the G-20 summit.
Stratfor | November 10, 2010
China’s economy to overtake US in two years
Just ahead of the G20 summit, there is a new report which came out recently stating the United States’ economy will be overtaken by China in the next two years. Should the American people be worried about their livelihoods? Economist Max Fraad Wolff says Americans should take a look at their clothes and see where they are made, that should give people an idea of what is happening.
RT America | November 10, 2010
Brazil’s Prospects for Growth
Paulo Leme, Goldman Sachs’ emerging markets chief, says his native Brazil should seize a historic opportunity for growth as a new President takes over.
Goldman Sachs’ (GS) emerging markets chief says his native Brazil should seize a historic opportunity for growth as a new President takes over
How do you see Brazil right now?
The economy is growing at almost twice the rate that it has in the last 10 years. Brazil is experiencing a fairly healthy increase in employment and wages, and an improvement in income distribution, so there is a feel-good factor. I would say this is a once-in-a-century kind of opportunity to accelerate growth to 6 or 6.5 percent and unleash all of this upward mobility.
How can Brazil make that happen?
The key is structural reform—for example, a reduction in the tax burden, which would make exports more competitive. Also things that would boost productivity, like better education and a better health system.
Is Brazil growing too fast?
Domestic demand is outstripping supply. The appreciation of the real also makes it cheaper to import from the rest of the world. Brazil would benefit enormously from some containment in fiscal spending and public credit growth and moderation in public-sector wage hikes.
Is that the direction you expect from President-elect Dilma Rousseff?
She has the awareness and possibly the inclination to do some rebalancing of macroeconomic policies. We are on the eve of another significant monetary easing by central banks in advanced economies. However, at some point they will tighten significantly. The question is, will that lead to a sudden stop of capital flows or even a reversal? Brazil’s macro policy should be prepared for that eventuality.
Bloomberg Businessweek | November 4, 2010
Iraq Banks Told to Raise $7 Billion
The Central Bank of Iraq has instructed private banks to raise at least $7 billion in fresh capital over the next three years to be able to handle an expected oil-fueled construction boom, a top bank official said Wednesday.
The Wall Street Journal | October 26, 2010
France, Kazakhstan sign deals worth two billion euros
Kazakhstan’s government signed some 2 billion euros (USD2.8 billion) worth of deals with French industrial groups on Wednesday as part of the central Asian country’s drive to modernise and attract foreign investment, AFP reported. French President Nicolas Sarkozy and Kazakh President Nursultan Nazarbayev announced the deals, including contracts with EADS, Alstom, and Areva, after a working lunch at the Elysee presidential palace. Among the 18 deals announced was a contract with aerospace group EADS for 45 EC145 helicopters, another with engineering group Alstom for 295 locomotives and one with energy firm Areva to build a nuclear materials assembly plant in Kazakhstan.
Alstom’s deal, part of a joint venture with Russian railway equipment maker Transmashholding (TMH), is worth 800 million euros, said the head of Alstom Transport, Phillippe Mellier.
Focus Information | October 27, 2010
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Kazakhstan agreed in 2009 to allow military hardware for French forces fighting in Afghanistan to pass through its territory.
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