http://www.lunarplanner.com/HCpages/Venus.html">Click on Picture Above .. Venus Transit ...
Monday, May 14, 2012
IMF to buy Gold worth $2.3 billion as credit risk increases
May 14, 2012
IMF to buy Gold worth $2.3 billion as credit risk increases
The International Monetary Fund (IMF) is planning to purchase more than $2 billion worth of gold on account of rising global risks. The IMF currently holds around 2800 tonnes of gold at various depositories.
“The Fund is facing increased credit risk in light of a surge in program lending in the context of the global crisis. While the Fund has a multi-layered framework for managing credit risks, including the strength of its lending policies and its preferred creditor status, there is a need to increase the Fund’s reserves in order to help mitigate the elevated credit risks”, Bloomberg quotes a report by an IMF staff while also adding that a $2.3 billion gold purchase is in the planning.
IMF's borrowers include Eurozone countries like Greece and Portugal. Greece is IMF's biggest borrower and the nation is currently caught in a political deadlock that seems bent on denying itself the much needed bailout fund.
Countries like Spain is also officially in recession after its first quarter GDP contracted. Other nations in the Eurozone region is also showing increased signs of slow manufacturing activity and economic growth.
In such a risky financial environment, the IMF's move could be considered wise and can be seen as an indication of how much trust the mainstream financial community now has on precious metals like gold.
source
IMF to buy Gold worth $2.3 billion as credit risk increases
The International Monetary Fund (IMF) is planning to purchase more than $2 billion worth of gold on account of rising global risks. The IMF currently holds around 2800 tonnes of gold at various depositories.
“The Fund is facing increased credit risk in light of a surge in program lending in the context of the global crisis. While the Fund has a multi-layered framework for managing credit risks, including the strength of its lending policies and its preferred creditor status, there is a need to increase the Fund’s reserves in order to help mitigate the elevated credit risks”, Bloomberg quotes a report by an IMF staff while also adding that a $2.3 billion gold purchase is in the planning.
IMF's borrowers include Eurozone countries like Greece and Portugal. Greece is IMF's biggest borrower and the nation is currently caught in a political deadlock that seems bent on denying itself the much needed bailout fund.
Countries like Spain is also officially in recession after its first quarter GDP contracted. Other nations in the Eurozone region is also showing increased signs of slow manufacturing activity and economic growth.
In such a risky financial environment, the IMF's move could be considered wise and can be seen as an indication of how much trust the mainstream financial community now has on precious metals like gold.
source
Bank of Canada unveils new polymer $20
May 2011 .. link .. Canada's New Currency ~ Raising the Curtain on Canada's New Polymer Notes .. and .. Related articles ~ 2010~ More in depth information @ Link ~ Canadian currency will become plastic and have new security features next year ...
May 14th, 2012
Bank of Canada unveils new polymer $20
The main reason for issuing a new $20 bill is to stay ahead of conterfeiting threats.
CALGARY - Some bewildered Canadians have greeted them as funny money, but the Bank of Canada wants you to know they're counterfeit-fighters.
When the new polymer $100 notes appeared last November to replace their paper counterparts, some balked, said Ted Mieszkalski, regional spokesman for the Bank of Canada (BoC).
So the country's monetary overseers want to make certain Canadians have currency confidence when the updated version of the $20 note -- easily the most numerous -- begin circulating late this year, he said.
"There is that 'wow' factor and the 'What is that?' question," Mieszkalski said.
"They're distinctly different in feeling ... we're trying to educate the citizenry."
Last March, the updated $50 note appeared with its transparent column opposite the face of former prime minister Mackenzie King.
The most prolific denomination of paper money, the twenty, will carry a more current likeness of Queen Elizabeth II on the front, and on its back an image of the Vimy Ridge Memorial in France.
Canadians were consulted on how they wanted their new generation of money to look, and the Vimy theme proved a popular one, said Mieszkalski.
"Vimy came to symbolize the many Canadian lives lost in conflict," he said.
Currently, the $20 notes comprise about half of all $1.6 billion Canadian bills in currency.
Each new polymer bills costs 19 cents to manufacture, but on top of being harder to fake, will last 2-1/2 times longer, said Mieszkalski.
"It's coming from a security and durability standpoint," he said, adding counterfeiting in Canada has fallen by 90% since 2004.
Polymer $5 and $10 bills will come into use by late 2013.
About 30 other countries around the world use the same substance in at least some of their notes.
source
May 14th, 2012Bank of Canada unveils new polymer $20
The main reason for issuing a new $20 bill is to stay ahead of conterfeiting threats.
CALGARY - Some bewildered Canadians have greeted them as funny money, but the Bank of Canada wants you to know they're counterfeit-fighters.
When the new polymer $100 notes appeared last November to replace their paper counterparts, some balked, said Ted Mieszkalski, regional spokesman for the Bank of Canada (BoC).
So the country's monetary overseers want to make certain Canadians have currency confidence when the updated version of the $20 note -- easily the most numerous -- begin circulating late this year, he said.
"There is that 'wow' factor and the 'What is that?' question," Mieszkalski said.
"They're distinctly different in feeling ... we're trying to educate the citizenry."
Last March, the updated $50 note appeared with its transparent column opposite the face of former prime minister Mackenzie King.
The most prolific denomination of paper money, the twenty, will carry a more current likeness of Queen Elizabeth II on the front, and on its back an image of the Vimy Ridge Memorial in France.
Canadians were consulted on how they wanted their new generation of money to look, and the Vimy theme proved a popular one, said Mieszkalski.
"Vimy came to symbolize the many Canadian lives lost in conflict," he said.
Currently, the $20 notes comprise about half of all $1.6 billion Canadian bills in currency.
Each new polymer bills costs 19 cents to manufacture, but on top of being harder to fake, will last 2-1/2 times longer, said Mieszkalski.
"It's coming from a security and durability standpoint," he said, adding counterfeiting in Canada has fallen by 90% since 2004.
Polymer $5 and $10 bills will come into use by late 2013.
About 30 other countries around the world use the same substance in at least some of their notes.
source
The Weight Of The Nation ~ Documenting America's Obesity Epidemic ...
May 14, 2012
"The Weight Of The Nation": Documenting America's Obesity Epidemic: Part 1 - Consequences
68.8% of Americans are overweight or obese: this stunning fact, setting aside the unsustainability of US fiscal or monetary policy, means that something must change in this country, or very soon it won't matter if America has $20 trillion or $1 googol in debt: everyone will be simply too fat to care. And, shortly thereafter, too dead.
Now that America's obesity epidemic is rapidly, and finally, becoming a front and center topic of conversation, and one which can not be excluded from any rational healthcare policy discussion, increasingly more media has started to narrow in, pardon the pun, on the causes, consequences, choices and challenges involved in recognizing that America does in fact have an obesity problem, and that the sooner proactive steps are taken, the better for everyone.
As Charles Hugh Smith pointed out recently, sickcare represents a(n at least) 8% hidden VAT tax to all Americans, of which obesity is the primary cause for outflows: this number will only grow, until it too becomes merely one more unsustainable line item in America's increasingly improbable income statement.
Starting tonight, HBO is releasing a 4 part documentary titled "The Weight of the Nation - confronting America's obesity epidemic" to bring more attention to a systemic threat which if left unchecked will, by 2020, impact 75% of America's population. We present the first movie in the series below, and will bring the remaining three parts shortly.
Read more submitted by Tyler Durden .. Here
Iraqi Dinar ~ Central Bank calls for formation of a Joint Coordinating Committee to resolve the problem delete the zeros ...
2012-05-15Central Bank calls for formation of a Joint Coordinating Committee to resolve the problem delete the zeros
Baghdad, Called by the Central Bank of Iraq to form a Joint Coordinating Committee of the Parliament and the Government to resolve the issue of the draft Iraqi currency delete zeros.
He said the Bank's Deputy Governor Mohammad Saleh appearance of agency/JD/draft delete zeros is the draft fundamental change accounting regulations amendment includes all nodes State and not easy. He said the main problem in delaying the project lies in the fear of many officials of the project, stating that this fear caused by lack of knowledge of the benefits of the project and effectiveness in support of the Iraqi economy.
And valid with loakod meeting of the Joint Commission, the decisions would be binding for all. There was a problem of timing as the opinion of the Council of Ministers on the wait in the project due to the timing may be appropriate to start so step because similar projects conducted in the more stable political conditions.
The Central Bank of Iraq intends to carry out radical change in monetary policy through three zeros from the deleted version cash estimated at 32 trillion corresponding 4 billion banknotes of different categories and this large number, in the case of application of the new system, it will provide the expenses of publication and print 4 billion paper currency and old groups new as the old currencies destroys every 5 years and not ruin this new speed is therefore very economical project.
The task of the Central Bank of Iraq in maintaining price stability and the implementation of monetary policy, including exchange rate policies and foreign exchange reserves management and regulation of the banking sector.
source
Fulford
May 14, 2012
Major Purge Of US Puppets In Japan Continuing Behind The Scenes, Nato Terrorist State Group Being Cut Off
The top US criminal corporate government representative in Japan, Edward Nye, will no longer be welcome in Asia following the release of new information about his links to the March 11, 2011 nuclear and tsunami terror attack on Japan.
He is believed to be the author of a February, 2000 CIA report on the Japanese energy sector that stated the following: “In order to prevent Japanese national power from becoming any stronger and to prevent a resurgence of anti-American feeling in Japan it is necessary to put hand-cuffs on Japan’s energy sector over the long term. Nuclear energy now accounts for 30% of Japan’s power production. The most effective counter measure would be to neutralize the main concentration of Japanese nuclear know-how, the Tokyo Electric Power Corporation.
TEPCO has Japan’s largest market capitalization and it is a leader of Japan’s corporate and financial world. It is also very trusted by the Japanese people. To prevent Japan from becoming a nuclear power, it is necessary to destroy trust in TEPCO and drastically set back Japan’s progress in nuclear power.”
This CIA report was quoted in the November 2002 issue of Zaikai Tenbo, a leading Japanese business magazine.
Many of the top Japanese and Korean agents working for the US corporate government in Japan have already been or are about to be purged and now all “Japan handlers,” working for the criminal corporate US mafia government are being advised to get out of Japan and never come back.
Major Purge Of US Puppets In Japan Continuing Behind The Scenes, Nato Terrorist State Group Being Cut Off
The top US criminal corporate government representative in Japan, Edward Nye, will no longer be welcome in Asia following the release of new information about his links to the March 11, 2011 nuclear and tsunami terror attack on Japan.
He is believed to be the author of a February, 2000 CIA report on the Japanese energy sector that stated the following: “In order to prevent Japanese national power from becoming any stronger and to prevent a resurgence of anti-American feeling in Japan it is necessary to put hand-cuffs on Japan’s energy sector over the long term. Nuclear energy now accounts for 30% of Japan’s power production. The most effective counter measure would be to neutralize the main concentration of Japanese nuclear know-how, the Tokyo Electric Power Corporation.
TEPCO has Japan’s largest market capitalization and it is a leader of Japan’s corporate and financial world. It is also very trusted by the Japanese people. To prevent Japan from becoming a nuclear power, it is necessary to destroy trust in TEPCO and drastically set back Japan’s progress in nuclear power.”
This CIA report was quoted in the November 2002 issue of Zaikai Tenbo, a leading Japanese business magazine.
Many of the top Japanese and Korean agents working for the US corporate government in Japan have already been or are about to be purged and now all “Japan handlers,” working for the criminal corporate US mafia government are being advised to get out of Japan and never come back.
Iraq ~ Presidencies will meet this week
15/05/2012Presidencies will meet this week
Iraqi tend to agree to attend a national meeting of
Baghdad morning
I learned the "morning" of informed political sources said the three presidencies will be an important meeting this week to discuss the political crisis. This information comes at a time and continued to the President of the Republic held his meetings in Baghdad. examined the President of the Republic with delegation from the State of Law coalition headed by Sheikh Khalid al-Attiyah yesterday, all the issues taking place in the political arena in the country and the roads that should be its approach in addressing the problems and deal with the current crisis over the serious and constructive dialogue to remove all obstacles and based on the principles of the Constitution and previous agreements and securities provided to ease the situation and access to solution and a comprehensive national.
U.S. Export Import ~ an agreement paving the way to raise the financing authority of the U.S. Export-Import Bank to $140 billion by 2014 ...
May 14, 2012
Deal Struck For Export Financing
Senators reached an agreement paving the way to raise the financing authority of the U.S. Export-Import Bank to $140 billion by 2014, as an unexpected fight about the role of the federal government in helping American exporters nears an end.
The Senate is expected on Tuesday to approve legislation passed last week by House lawmakers, readying it for President Barack Obama to sign it into law.
The Export-Import bank is a federal agency that helps U.S. companies sell manufactured goods to foreign firms by providing loan guarantees and some forms of insurance.
Mr. Obama has championed the bank as part of his drive to ramp up U.S. exports, in an election-year agenda aimed at job creation. He has repeatedly called on Congress to raise the bank's financing cap and extend its authority.
Conservative Republicans in both the House and the Senate have resisted, saying the bank exposes taxpayers to undue risk and constitutes inappropriate government interference in the marketplace.
They have called for the bank to be put out of business, or at least to be limited in its activities.
The bank's reauthorization has been the subject of a corporate lobbying battle. Big exporters such as Boeing Co., BA -1.95%General Electric Co. GE -0.26%and Caterpillar Inc. CAT -1.62%have urged Congress to expand the bank's lending powers, saying the bank supports U.S. jobs. Companies including Delta Air Lines Inc. DAL +0.89%have fought the reauthorization efforts, saying the bank effectively subsidizes foreign companies that compete with U.S. companies, costing American jobs.
The bank's opponents have been largely unsuccessful. The bill the Senate is expected to approve includes instructions to the administration to begin negotiations with foreign trading partners aimed at ultimately winding the bank down. But those directions have little heft, because they don't specify a time limit or force the administration to act.
The Senate plans to hold votes Tuesday on five Republican amendments to the bill, each of which would increase scrutiny of the bank's activities and in one case would terminate the bank after one year. The votes are expected to fail.
Next, the Senate would hold a vote on the underlying bill, which is expected to easily win passage.
The legislation increases the financing cap the bank operates under to $140 billion from the current $100 billion level, with the condition that the bank maintain a loan-default rate of less than 2%. Its default rate currently is around 1.5%.
The bill requires greater disclosure and will probably mean more trips to Capitol Hill by senior bank officials to explain to lawmakers what types of transactions the bank has been involved in.
On Friday, 12 Senate Republicans sent a letter to Senate Majority Leader Harry Reid (D., Nev.) asking him to allow amendment votes to take place. In exchange, they pledged to support final passage of the bill.
In previous years, the bank's authorization has been renewed with little or no congressional debate.
Deal Struck For Export Financing
Senators reached an agreement paving the way to raise the financing authority of the U.S. Export-Import Bank to $140 billion by 2014, as an unexpected fight about the role of the federal government in helping American exporters nears an end.
The Senate is expected on Tuesday to approve legislation passed last week by House lawmakers, readying it for President Barack Obama to sign it into law.
The Export-Import bank is a federal agency that helps U.S. companies sell manufactured goods to foreign firms by providing loan guarantees and some forms of insurance.
Mr. Obama has championed the bank as part of his drive to ramp up U.S. exports, in an election-year agenda aimed at job creation. He has repeatedly called on Congress to raise the bank's financing cap and extend its authority.
Conservative Republicans in both the House and the Senate have resisted, saying the bank exposes taxpayers to undue risk and constitutes inappropriate government interference in the marketplace.
They have called for the bank to be put out of business, or at least to be limited in its activities.
The bank's reauthorization has been the subject of a corporate lobbying battle. Big exporters such as Boeing Co., BA -1.95%General Electric Co. GE -0.26%and Caterpillar Inc. CAT -1.62%have urged Congress to expand the bank's lending powers, saying the bank supports U.S. jobs. Companies including Delta Air Lines Inc. DAL +0.89%have fought the reauthorization efforts, saying the bank effectively subsidizes foreign companies that compete with U.S. companies, costing American jobs.
The bank's opponents have been largely unsuccessful. The bill the Senate is expected to approve includes instructions to the administration to begin negotiations with foreign trading partners aimed at ultimately winding the bank down. But those directions have little heft, because they don't specify a time limit or force the administration to act.
The Senate plans to hold votes Tuesday on five Republican amendments to the bill, each of which would increase scrutiny of the bank's activities and in one case would terminate the bank after one year. The votes are expected to fail.
Next, the Senate would hold a vote on the underlying bill, which is expected to easily win passage.
The legislation increases the financing cap the bank operates under to $140 billion from the current $100 billion level, with the condition that the bank maintain a loan-default rate of less than 2%. Its default rate currently is around 1.5%.
The bill requires greater disclosure and will probably mean more trips to Capitol Hill by senior bank officials to explain to lawmakers what types of transactions the bank has been involved in.
On Friday, 12 Senate Republicans sent a letter to Senate Majority Leader Harry Reid (D., Nev.) asking him to allow amendment votes to take place. In exchange, they pledged to support final passage of the bill.
In previous years, the bank's authorization has been renewed with little or no congressional debate.
BACKGROUND AND SUMMARY OF REGULATION O AND FIRA TITLES VIII AND IX
BACKGROUND AND SUMMARY OF REGULATION O AND FIRA TITLES VIII AND IX
3--1027
Title VIII of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRA) prohibits banks that maintain correspondent accounts with each other from extending credit to each other's executive officers, directors, or principal shareholders unless the extension of credit (1) is made on substantially the same terms as those prevailing at the time for comparable transactions with other persons and (2) does not involve more than normal risk of repayment or present other unfavorable features. Banks whose executive officers, directors, or principal stockholders have received preferential extensions of credit from other banks are prohibited from opening correspondent relationships with those banks.
3--1027
Title VIII of the Financial Institutions Regulatory and Interest Rate Control Act of 1978 (FIRA) prohibits banks that maintain correspondent accounts with each other from extending credit to each other's executive officers, directors, or principal shareholders unless the extension of credit (1) is made on substantially the same terms as those prevailing at the time for comparable transactions with other persons and (2) does not involve more than normal risk of repayment or present other unfavorable features. Banks whose executive officers, directors, or principal stockholders have received preferential extensions of credit from other banks are prohibited from opening correspondent relationships with those banks.
White House : JP Morgan Loss Reinforces Need For Strict Wall Street Oversight (Here we go .. Problem, Reaction Solution) ..
Related articles .. link .. *JP Morgan's CEO, Jamie Dimon, says bank reacted badly to red flags .. (The grand Illusion?) ... .. and April 2012 .. *Wall Street banks to reshuffle top traders ahead of 'Volcker rule' .. April 2012 .. *EU ministers meet to end a row over banks' capital (banks face $323 billion capital hole) ... .. and .. link .. *** Links - Banking Reform ... Plan Moving Forward ...
05/14/2012
JPMorgan Chase & Co. : White House : JP Morgan Loss Reinforces Need For Strict Wall Street Oversight
*White House says losses show need for Wall Street reform
*White House says shareholders, not taxpayers, should suffer from the losses
*White House criticizes those trying to water down regulations
The White House said Monday the losses at JPMorgan Chase & Co. (JPM) reinforce the need for stricter oversight of Wall Street and criticized people who say rules for banks should be watered down.
"This event only reinforces why it was so important to pass Wall Street reform, and why it is so important to implement Wall Street reform," White House Press Secretary Jay Carney said Monday while en route to New York with President Barack Obama.
05/14/2012
JPMorgan Chase & Co. : White House : JP Morgan Loss Reinforces Need For Strict Wall Street Oversight
*White House says losses show need for Wall Street reform
*White House says shareholders, not taxpayers, should suffer from the losses
*White House criticizes those trying to water down regulations
The White House said Monday the losses at JPMorgan Chase & Co. (JPM) reinforce the need for stricter oversight of Wall Street and criticized people who say rules for banks should be watered down.
"This event only reinforces why it was so important to pass Wall Street reform, and why it is so important to implement Wall Street reform," White House Press Secretary Jay Carney said Monday while en route to New York with President Barack Obama.
Dodd - Frank Law ~ Sen. Dodd calls on giving the gov't sweeping new powers to prevent another economic collapse
Today .. link .. White House : JP Morgan Loss Reinforces Need For Strict Wall Street Oversight (Here we go .. Problem, Reaction Solution) ..
and 2009 .. link ..*** Fed Faces Biggest Blow to Authority in Dodd Proposal (Nov. 2009) ... ..
and .. link .. *** Links - Nationalize the Banks ... Plan Moving Forward ...
Bumped .. (from 2009:) ...
snip ~ Also unlike the House bill, Dodd's proposal would establish a single federal regulator for banks called the
"Financial Institutions Regulatory Administration."
Dodd circulates financial overhaul bill
Sen. Dodd calls on giving the gov't sweeping new powers to prevent another economic collapse
Tuesday, November 10, 2009
Washington, Senate Banking Committee Chairman Christopher Dodd on Tuesday called for sweeping new government powers to prevent another economic collapse, protect consumers and dismantle failing institutions.
Dodd's 1,100 page-draft would strip the Federal Reserve and other regulators of their powers to regulate banks and hand that job to a single agency.
The bill also would take away the Fed's ability to monitor credit cards and mortgages and establish a new "Consumer Financial Protection Agency."
The bill, inspired by last year's financial meltdown, will minimize "economic turmoil and protect(ing) the interest of taxpayers," the Connecticut Democrat wrote.
President Barack Obama has demanded that Congress rewrite the federal regulations governing Wall Street to close legal loopholes and prevent the kind of fraud and abuse that fed the crisis.
Dodd's proposal was expected to gain broad support among Democrats, but Republicans haven't signed on.
Among the top points of contention is Dodd's desire to create a new agency to protect consumers taking out home loans or using credit cards against predatory lending and surprise interest rate hikes.
Republicans counter that creating another bureaucracy will make business harder for banks and limit the availability of credit.
The Senate Banking Committee was expected to review the legislation next week, paving the way for a floor vote by early next year.
The House was already on track with its own proposal. Rep. Barney Frank, chairman of the House Financial Services Committee, said he expects a floor vote in December.
Dodd's plan differs slightly from Frank's bill and the administration's proposal in that it would do more to scale back the powers of the Federal Reserve, which many lawmakers blame for the economic crisis.
For example, Frank has proposed that the Fed be in charge of enforcing tougher regulations on large and influential financial firms so that they don't grow "too big to fail." A council of regulators would monitor these firms and make recommendations.
Under Dodd's bill, the Fed would have less reach. An "agency for financial stability," managed by a board that includes Fed representation would enforce new rules and dismantle complex financial firms if they threaten the broader economy.
Both the House and Senate bills would likely put limits on the Fed's ability to provide emergency loans and eliminate its oversight of consumer protections.
Also unlike the House bill, Dodd's proposal would establish a single federal regulator for banks called the "Financial Institutions Regulatory Administration."
The single regulator would get rid of two existing federal bank regulators -- the Office of the Comptroller of the Currency and the Office of Thrift Supervision. It also would strip the Federal Deposit Insurance Corporation of its oversight of state banks and the Fed in their supervisory powers of bank holding companies. (insert .. 2012 ..link .. U.S. Senate Confirms Thomas Curry as Comptroller of the Currency ....
Dodd has said consolidated oversight is needed to prevent banks from shopping around for an agency that will impose the least amount of oversight.
source
and 2009 .. link ..*** Fed Faces Biggest Blow to Authority in Dodd Proposal (Nov. 2009) ... ..
and .. link .. *** Links - Nationalize the Banks ... Plan Moving Forward ...
Bumped .. (from 2009:) ...
snip ~ Also unlike the House bill, Dodd's proposal would establish a single federal regulator for banks called the
"Financial Institutions Regulatory Administration."
Dodd circulates financial overhaul bill
Sen. Dodd calls on giving the gov't sweeping new powers to prevent another economic collapse
Tuesday, November 10, 2009
Washington, Senate Banking Committee Chairman Christopher Dodd on Tuesday called for sweeping new government powers to prevent another economic collapse, protect consumers and dismantle failing institutions.
Dodd's 1,100 page-draft would strip the Federal Reserve and other regulators of their powers to regulate banks and hand that job to a single agency.
The bill also would take away the Fed's ability to monitor credit cards and mortgages and establish a new "Consumer Financial Protection Agency."
The bill, inspired by last year's financial meltdown, will minimize "economic turmoil and protect(ing) the interest of taxpayers," the Connecticut Democrat wrote.
President Barack Obama has demanded that Congress rewrite the federal regulations governing Wall Street to close legal loopholes and prevent the kind of fraud and abuse that fed the crisis.
Dodd's proposal was expected to gain broad support among Democrats, but Republicans haven't signed on.
Among the top points of contention is Dodd's desire to create a new agency to protect consumers taking out home loans or using credit cards against predatory lending and surprise interest rate hikes.
Republicans counter that creating another bureaucracy will make business harder for banks and limit the availability of credit.
The Senate Banking Committee was expected to review the legislation next week, paving the way for a floor vote by early next year.
The House was already on track with its own proposal. Rep. Barney Frank, chairman of the House Financial Services Committee, said he expects a floor vote in December.
Dodd's plan differs slightly from Frank's bill and the administration's proposal in that it would do more to scale back the powers of the Federal Reserve, which many lawmakers blame for the economic crisis.
For example, Frank has proposed that the Fed be in charge of enforcing tougher regulations on large and influential financial firms so that they don't grow "too big to fail." A council of regulators would monitor these firms and make recommendations.
Under Dodd's bill, the Fed would have less reach. An "agency for financial stability," managed by a board that includes Fed representation would enforce new rules and dismantle complex financial firms if they threaten the broader economy.
Both the House and Senate bills would likely put limits on the Fed's ability to provide emergency loans and eliminate its oversight of consumer protections.
Also unlike the House bill, Dodd's proposal would establish a single federal regulator for banks called the "Financial Institutions Regulatory Administration."
The single regulator would get rid of two existing federal bank regulators -- the Office of the Comptroller of the Currency and the Office of Thrift Supervision. It also would strip the Federal Deposit Insurance Corporation of its oversight of state banks and the Fed in their supervisory powers of bank holding companies. (insert .. 2012 ..link .. U.S. Senate Confirms Thomas Curry as Comptroller of the Currency ....
Dodd has said consolidated oversight is needed to prevent banks from shopping around for an agency that will impose the least amount of oversight.
source
JPMorgan Estimates Immediate Losses From Greek Exit Could Reach 400 Billion
Related Articles .. link .. Greek Central Bank Issues Euro Exit Warning ... .. and .. April 2012 .. Goldman Sachs doubles profits (Hmm .. That's Because Goldman Sachs Rules The World. Right?) ... .. and .. March 2012 .. Moody's: Greece has defaulted .. and .. Lloyd Blankfein Seen Lunching In Boca With A Certain Former President .. and .. Feb. 2012 .. As I Said Was Guaranteed To Happen Two Years Ago: Greece = Kaboom! But Now Many Misunderstand The Consequences
May 14, 2012
JPMorgan Estimates Immediate Losses From Greek Exit Could Reach 400 Billion
While our earlier discussion of the implications of Greece's exit from the Euro are critical reading to comprehend the real-time game of chicken occurring in front of our eyes, JPMorgan's somewhat more quantifiable estimates of the costs and contagion, given the results of the Greek election have raised market expectations of an exit of Greece from the Euro, also provide key indicators and flows that should be monitored. Identifying what has gone wrong with Greece's co-called 'adjustment' program, they go on to identify key transmission mechanisms to Spain and Italy, how it could potentially improve (Marshall-Plan-esque) and most critically, given the exponentially growing TARGET2 balances, if and when Germany throws in the towel.
Read Full Report By Tyler Durden .. Here
Mutlaq: the holiday will not affect the legislative National Conference and the country is going through an impact on the performance of Parliament
14/05/2012
Mutlaq: the holiday will not affect the legislative National Conference and the country is going through an impact on the performance of Parliament
Baghdad, Deputy Hamid al-Mutlaq, the Iraqi List, that the legislative recess for the House of Representatives will not affect the national conference was held, and if necessary, to the presence of all members of Parliament can attend to them within hours, indicating that what is going through the political process Tdhorat impact on the work of Parliament.
Mutlaq said in a statement, told the independent press (Iba) that the legislative recess for the House of Representatives that a month will not affect the date of the national meeting of the blocks or approve it, and if necessary to attend the Members of Parliament can attend to them within hours.
Mutlaq: the holiday will not affect the legislative National Conference and the country is going through an impact on the performance of Parliament
Baghdad, Deputy Hamid al-Mutlaq, the Iraqi List, that the legislative recess for the House of Representatives will not affect the national conference was held, and if necessary, to the presence of all members of Parliament can attend to them within hours, indicating that what is going through the political process Tdhorat impact on the work of Parliament.
Mutlaq said in a statement, told the independent press (Iba) that the legislative recess for the House of Representatives that a month will not affect the date of the national meeting of the blocks or approve it, and if necessary to attend the Members of Parliament can attend to them within hours.
Iraq .. After gas, Iraq has big petrochemical plans ...
May 14, 2012After gas, Iraq has big petrochemical plans
Baghdad, Iraq plans to build on its nascent gas sector to power a new petrochemicals industry, looking to foreign firms to invest $35-50 billion from 2017-2023.
Mohammed Abdullah, a deputy minister with responsibility for companies, said the ambitious plan was to produce 10 million tonnes of petrochemicals a year during that period.
"The amount of investments which we could attract from this field to the country could reach $35 billion to more than $50 billion,
"This is our current view and that could be revised upwards in the future," he said.
China buying oil from Iran with yuan ...
Thank you to the peoples champ for the article below ...
May 8, 2012
China is promoting the usage of the yuan as a rival international currency to the dollar
China is buying crude oil from Iran using its currency the yuan, an Iranian diplomat has said.
Oil transactions are usually settled in dollars but US sanctions make it difficult for Iran to accept payments in the US currency.
Iran is using the revenue to buy goods and services from China, Mohammed Reza Fayyad, Iran's ambassador to the United Arab Emirates, confirmed.
China is the biggest buyer of Iranian crude oil exports.
The country buys some $20bn-30bn of oil from Iran each year, but the US has been pressuring Beijing to join an international boycott of Iran over Tehran's nuclear programme.
The Iranian ambassador's comments, reported by the Reuters news agency, confirmed a report in the Financial Times that claimed that Unipec - a subsidiary of the Chinese state-owned oil firm Sinopec - was buying the oil, as was another company called Zhuhai Zhenrong.
Meanwhile, China has been trying to promote usage of yuan as an international currency as a rival to the dollar, including the establishment of a new offshore trading centre in London alongside the existing centre in Hong Kong.
According to the FT report, China has been providing the currency to Iran via Russian banks rather than its own domestic banks.
Lobbying efforts The US plans to implement a round of sanctions, starting on 28 June, against banks based in countries that do not cut their oil imports from Iran.
The US and its western partners suspect Iran of using its nuclear programme to develop the capacity to make atomic weapons.
Tehran says the programme is solely for civilian purposes.
The US has already said it will not apply sanctions to banks in Japan and 10 EU countries, after they all agreed to cut their imports from Iran.
China, India and South Korea, now find themselves at the centre of current US lobbying efforts.
China has already cut its imports from Iran by half in the first three months of this year, although this was mainly in order to negotiate better trading terms with Tehran.
It is unclear whether the cuts will be continued into the rest of the year.
China is highly dependent on crude oil imports, and petrol prices in China have been rising sharply this year
source
May 8, 2012
China is promoting the usage of the yuan as a rival international currency to the dollar
China is buying crude oil from Iran using its currency the yuan, an Iranian diplomat has said.
Oil transactions are usually settled in dollars but US sanctions make it difficult for Iran to accept payments in the US currency.
Iran is using the revenue to buy goods and services from China, Mohammed Reza Fayyad, Iran's ambassador to the United Arab Emirates, confirmed.
China is the biggest buyer of Iranian crude oil exports.
The country buys some $20bn-30bn of oil from Iran each year, but the US has been pressuring Beijing to join an international boycott of Iran over Tehran's nuclear programme.
The Iranian ambassador's comments, reported by the Reuters news agency, confirmed a report in the Financial Times that claimed that Unipec - a subsidiary of the Chinese state-owned oil firm Sinopec - was buying the oil, as was another company called Zhuhai Zhenrong.
Meanwhile, China has been trying to promote usage of yuan as an international currency as a rival to the dollar, including the establishment of a new offshore trading centre in London alongside the existing centre in Hong Kong.
According to the FT report, China has been providing the currency to Iran via Russian banks rather than its own domestic banks.
Lobbying efforts The US plans to implement a round of sanctions, starting on 28 June, against banks based in countries that do not cut their oil imports from Iran.
The US and its western partners suspect Iran of using its nuclear programme to develop the capacity to make atomic weapons.
Tehran says the programme is solely for civilian purposes.
The US has already said it will not apply sanctions to banks in Japan and 10 EU countries, after they all agreed to cut their imports from Iran.
China, India and South Korea, now find themselves at the centre of current US lobbying efforts.
China has already cut its imports from Iran by half in the first three months of this year, although this was mainly in order to negotiate better trading terms with Tehran.
It is unclear whether the cuts will be continued into the rest of the year.
China is highly dependent on crude oil imports, and petrol prices in China have been rising sharply this year
source
Deadline Friday, May 18th .. National Alliance doesn't need to implement all Erbil meeting demands within 15 days
14/05/2012National Alliance doesn't need to implement all Erbil meeting demands within 15 days, says Ahrar leader
Baghdad, The 15-day deadline specified in the letter by leaders during their meeting in Erbil does not require the National Alliance (NA) to enforce all of the demands within the period, but the bloc should announce that it accepts the demands and will enforce them, said the head of Ahrar bloc.
The Erbil letter that was sent to the NA contains a condition, a clear condition related to a 15-day deadline, said head of Ahrar bloc Baha al-Aaraji.
He said the deadline is not for enforcing all of the demands because some of them need time and "some require only 15 minutes for being resolved."
Message from SaLuSa by Mike Quinsey - May 14, 2012 ...
Message from SaLuSa by Mike Quinsey - May 14, 2012
There is evidence of the inevitable collapse of the dark cabal, and you need to be on your guard. They will try every possible ruse and disinformation to make a last attempt to create doubt and fear. Be aware and ignore anything that feels other than the Light, and focus on all that is pure and harmonious. There is nothing to fear any longer, as your future is absolutely assured and nothing is going to prevent Disclosure and the arrival of our Space Friends.
The opportunity to ascend is the natural conclusion of this cycle, and although you have missed out on earlier occasions, this time if you are ready you are absolutely certain to ascend. Mere mortals cannot stop what has been divinely decreed, and bear in mind it applies to the whole Universe.
Amer Morshedi Allawi calls to clarify his position on the issue of Kirkuk
05/14/2012
Amer Morshedi Allawi calls to clarify his position on the issue of Kirkuk
Baghdad, Secretary General of the pool called the new Iraq and allied forces Amer Morshedi the Iraqi leader Iyad Allawi to clarify the position of the list of the issue of Kirkuk and the Kurds claim annexed to Kurdistan. said Morshedi, told the independent press (Iba) We question directly to the brother Iyad Allawi .. Are you ready to give Kirkuk and disputed areas in favor of the Kurdistan region, the main demand of the Kurdish leaders and build relationships and Abermn Agyatem under Alatravlhma demand response?
We added that the leaders of the Kurds call Kirkuk (Jerusalem of Kurdistan) and we know that the close relationship between you and the brothers the Kurds did not come out of the blue and follow your statements carefully did not find you during the last period which is where the top of your differences with the state law, any statement the issue of Kirkuk, we have fellowship the right direction question is whether you give promises to the leaders of the Kurds over Kirkuk and what are these promises.
He Morshedi told Allawi, we know that the Kurdish dream of the historical is the proclamation of an independent Kurdish state, be sure that your meetings repeated in Kurdistan Ttrguetm to oil and gas law and the purchase of aircraft and other weapons to the Iraqi army and to all matters at issue now with the Baghdad government, and many questions and hope you answer.
source
Amer Morshedi Allawi calls to clarify his position on the issue of Kirkuk
Baghdad, Secretary General of the pool called the new Iraq and allied forces Amer Morshedi the Iraqi leader Iyad Allawi to clarify the position of the list of the issue of Kirkuk and the Kurds claim annexed to Kurdistan. said Morshedi, told the independent press (Iba) We question directly to the brother Iyad Allawi .. Are you ready to give Kirkuk and disputed areas in favor of the Kurdistan region, the main demand of the Kurdish leaders and build relationships and Abermn Agyatem under Alatravlhma demand response?
We added that the leaders of the Kurds call Kirkuk (Jerusalem of Kurdistan) and we know that the close relationship between you and the brothers the Kurds did not come out of the blue and follow your statements carefully did not find you during the last period which is where the top of your differences with the state law, any statement the issue of Kirkuk, we have fellowship the right direction question is whether you give promises to the leaders of the Kurds over Kirkuk and what are these promises.
He Morshedi told Allawi, we know that the Kurdish dream of the historical is the proclamation of an independent Kurdish state, be sure that your meetings repeated in Kurdistan Ttrguetm to oil and gas law and the purchase of aircraft and other weapons to the Iraqi army and to all matters at issue now with the Baghdad government, and many questions and hope you answer.
source
End of June Postponement of the tariff would destroy the national economy
May 14, 2012
Attorney Abdulabas Xiaa: postponement of the tariff would destroy the national economy
Rejected by the Economic Commission for the National Alliance MP Abdulabas broadly, the proposals to postpone the application of the tariff, criticizing those who call to postpone it and called them that they do not understand the meaning of the law.
He said broadly that the law on customs tariff to be applied at the end of next June, is important for supporting the national economy, and can not be any point that you delay it or wait it because that would mean the destruction of the Iraqi economy and wrecking lost in the failure to protect local product.
The deputy proposed Xiaa put the state rate of 5% of the fees on the goods at the beginning of the application of law to see the reaction of the local market and its impact law and then begin to increase rates gradually so as not to affect prices in the domestic market.
source
Attorney Abdulabas Xiaa: postponement of the tariff would destroy the national economy
Rejected by the Economic Commission for the National Alliance MP Abdulabas broadly, the proposals to postpone the application of the tariff, criticizing those who call to postpone it and called them that they do not understand the meaning of the law.
He said broadly that the law on customs tariff to be applied at the end of next June, is important for supporting the national economy, and can not be any point that you delay it or wait it because that would mean the destruction of the Iraqi economy and wrecking lost in the failure to protect local product.
The deputy proposed Xiaa put the state rate of 5% of the fees on the goods at the beginning of the application of law to see the reaction of the local market and its impact law and then begin to increase rates gradually so as not to affect prices in the domestic market.
source
Deputy: House behind Central Bank failures
2012-05-14
Deputy: House behind Central Bank failures
Baghdad, The Member of the Committee on the economy, investment and Parliamentary Deputy Iraqi accusation, Aziz Sharif almeyahy White House to stand behind the Iraqi Central Bank failures.
Almeyahy said in a press statement today, received/copy/dinars that neglect the House for its oversight role in the follow-up to the Central Bank of Iraq to make the Bank continue failures which resulted in the continued rise of the dollar and uncertainty in monetary transactions through a bank currency auctions incorrect policies ".
Deputy: House behind Central Bank failures
Baghdad, The Member of the Committee on the economy, investment and Parliamentary Deputy Iraqi accusation, Aziz Sharif almeyahy White House to stand behind the Iraqi Central Bank failures.
Almeyahy said in a press statement today, received/copy/dinars that neglect the House for its oversight role in the follow-up to the Central Bank of Iraq to make the Bank continue failures which resulted in the continued rise of the dollar and uncertainty in monetary transactions through a bank currency auctions incorrect policies ".
How euro money printing is going to drive up gold and silver prices
May 13, 2012How euro money printing is going to drive up gold and silver prices
Those investors panicking now and selling their gold and silver will feel as sick as dogs when they see what happens next to prices. For after a bleak patch lasting at most a couple of months the eurozone authorities will start their money printing presses rolling and hey what is the one money that they can never print?
We saw the start of the European Central Bank’s money printing with the announcement of the $1.3 trillion LTRO program last Christmas. It worked and rallied markets for a few months, rather less than QE2 from the Fed. And that is the dynamic of money printing.
Money printing consequences
It works just fine in the initial stages and surprises everybody to the upside. But over time the upside will become shorter and the amounts that have to be pumped into the system will become bigger and bigger, and so will the impact on precious metal prices.
History Tends To Repeat Itself ...
Related articles .. link .. Swat Teams Conduct Food Raids ... and .. link .. G20 backs agriculture plan except regulation-source ..and .. June 2011 .. link ..Sarkozy urges G20 tackle speculation to ensure food security .. and .. link .. Oct. 2011 .. Brussels Plans Green Farming Revolution
DHS and Department of Ag in Minnesota ATTACK 10 FARMERS with weapons threats!
The Communist plan to shut down family farms and cause a gigantic famine in America is in progress. Soon there will be blood...
This is JUST what Stalin did in Russia!
Stalin made private farming a crime and siezed all the equipment and farms! Just like in Obama's martial law order!
DHS and Department of Ag in Minnesota ATTACK 10 FARMERS with weapons threats!
The Communist plan to shut down family farms and cause a gigantic famine in America is in progress. Soon there will be blood...
This is JUST what Stalin did in Russia!
Stalin made private farming a crime and siezed all the equipment and farms! Just like in Obama's martial law order!
Greece Virtually Out Of Cash One Day Before Critical Bond Maturity
May 14, 2012
Virtually Out Of Cash One Day Before Critical Bond Maturity
Curious why the topic of tomorrow's €430 million non-Greek law bond maturity payment (which we first pointed out as a D-Day type of cash outflow for the Greek people) is particularly touchy? Simple: if Greece makes the payment it will see its already in the red cash balance drop by another 30% to a sub redline €1 billion.
Which would mean the country will likely not pass go and go straight into looting mode once the people realize that some evil, evil hedge fund hold outs (who are doing precisely what they are contractually entitled to, and what we said back in January would be the event that breaks the bank, i.e., holding out) have been paid in full despite the Greek restructuring, while there is no money to pay anything else...
Because as Bloomberg points out, "the level of funds in Greece’s state coffers has fallen below 1.5 billion euros ($1.9 billion), Imerisia reported, citing “reliable information.” If the state doesn’t receive predicted revenue for the rest of this month, it will find it difficult to pay for social services, pensions and public-sector wages, the newspaper said."
Translation: when the money runs out, it's game over. But it will also be game over if and when Greece either does not want to or does not have the cash to pay tomorrow.
Things are moving fast now.
source
Virtually Out Of Cash One Day Before Critical Bond Maturity
Curious why the topic of tomorrow's €430 million non-Greek law bond maturity payment (which we first pointed out as a D-Day type of cash outflow for the Greek people) is particularly touchy? Simple: if Greece makes the payment it will see its already in the red cash balance drop by another 30% to a sub redline €1 billion.
Which would mean the country will likely not pass go and go straight into looting mode once the people realize that some evil, evil hedge fund hold outs (who are doing precisely what they are contractually entitled to, and what we said back in January would be the event that breaks the bank, i.e., holding out) have been paid in full despite the Greek restructuring, while there is no money to pay anything else...
Because as Bloomberg points out, "the level of funds in Greece’s state coffers has fallen below 1.5 billion euros ($1.9 billion), Imerisia reported, citing “reliable information.” If the state doesn’t receive predicted revenue for the rest of this month, it will find it difficult to pay for social services, pensions and public-sector wages, the newspaper said."
Translation: when the money runs out, it's game over. But it will also be game over if and when Greece either does not want to or does not have the cash to pay tomorrow.
Things are moving fast now.
source
Swat Teams Conduct Food Raids ...
Thanks cp for the following ...
A local farmer that is an acquaintance of ours relayed this story to us a few years back. Here is the article from that raid on an Ohio farm in 2008. That was the first time I had ever heard of these types of raids. What angers me about these raids is that the feds come in with weapons drawn and that it traumatizes the families...
Swat team conducts food raid in rural Ohio ..
link .. http://www.crossroad.to/articles2/08/swat-team.htm
Note: The report below was not written by me (Berit), but I did add these quotes:
"Over the past 20 years Congress has encouraged the U.S. military to supply intelligence, equipment, and training to civilian police. That encouragement has spawned a culture of paramilitarism in American law enforcement. The 1980s and 1990s have seen marked changes in the number of state and local paramilitary units, in their mission and deployment, and in their tactical armament." --Cato Institute (more information below)
A local farmer that is an acquaintance of ours relayed this story to us a few years back. Here is the article from that raid on an Ohio farm in 2008. That was the first time I had ever heard of these types of raids. What angers me about these raids is that the feds come in with weapons drawn and that it traumatizes the families...
Swat team conducts food raid in rural Ohio ..
link .. http://www.crossroad.to/articles2/08/swat-team.htm
Note: The report below was not written by me (Berit), but I did add these quotes:
"Over the past 20 years Congress has encouraged the U.S. military to supply intelligence, equipment, and training to civilian police. That encouragement has spawned a culture of paramilitarism in American law enforcement. The 1980s and 1990s have seen marked changes in the number of state and local paramilitary units, in their mission and deployment, and in their tactical armament." --Cato Institute (more information below)
Sunday, May 13, 2012
May 31st ~ Brussels Economic Forum 2012
Brussels Economic Forum 2012
The Brussels Economic Forum (BEF) 2012 offers a unique opportunity to discuss the next phase of European economic development. High level decision-makers, economists, business executives and the media will gather at the Forum on 31 May to debate and exchange ideas.
Compared with this time last year, Europe has made considerable progress in improving its economic governance. Most of the tools – such as the European Semester, the reinforced Stability and Growth Pact, and the new Macroeconomic Imbalance Procedure – are now in place to manage a closer economic union. Now it’s time to reap the full benefits and go for sustainable economic growth and growth-enhancing reforms.
The Brussels Economic Forum (BEF) 2012 offers a unique opportunity to discuss the next phase of European economic development. High level decision-makers, economists, business executives and the media will gather at the Forum on 31 May to debate and exchange ideas.
Compared with this time last year, Europe has made considerable progress in improving its economic governance. Most of the tools – such as the European Semester, the reinforced Stability and Growth Pact, and the new Macroeconomic Imbalance Procedure – are now in place to manage a closer economic union. Now it’s time to reap the full benefits and go for sustainable economic growth and growth-enhancing reforms.
40 die in Chinese hailstorm ...
May 13, 2012
40 die in Chinese hailstorm
BEIJING: Forty people were killed when a brief but violent hailstorm and torrential rain swept through a mountainous region of northwest China, the local government said on Sunday.
Eighteen others remained missing in Min county, a disaster-prone area of Gansu province, while 87 had been sent to hospital, the county government said in a statement on its website.
40 die in Chinese hailstorm
BEIJING: Forty people were killed when a brief but violent hailstorm and torrential rain swept through a mountainous region of northwest China, the local government said on Sunday.
Eighteen others remained missing in Min county, a disaster-prone area of Gansu province, while 87 had been sent to hospital, the county government said in a statement on its website.
China, Japan, S. Korea warn N. Korea off atom test; sign economic agreement ...
Related article .. April 2010 link .. China, Japan, South Korea "mutually complementary in economy, closely linked in trade": former Chinese vice premier .. and 5-2012 .. link .. China's PM warns of 'unstable' situation as summit starts, Sunday, the three nations will sign an investment agreement which was concluded in March ..
China's Premier Wen Jiabao (L), South Korea's President Lee Myung-bak (C) and Japan's Prime Minister Yoshihiko Noda
May 13, 2012
China, Japan, S. Korea warn N. Korea off atom test
Beijing, China, Japan and South Korea warned North Korea Sunday they will not tolerate further nuclear tests, the South Korean president said, amid fears that Pyongyang is preparing a third atomic blast.
Lee Myung-Bak made the remark after talks in Beijing with Chinese Premier Wen Jiabao and Japanese Prime Minister Yoshihiko Noda that also saw the trio decide to start free-trade area negotiations before the end of this year.
"Our three countries agreed that we will not accept further nuclear tests or further provocations from North Korea," Lee told reporters after meeting with his two counterparts for 90 minutes.
China's Premier Wen Jiabao (L), South Korea's President Lee Myung-bak (C) and Japan's Prime Minister Yoshihiko NodaMay 13, 2012
China, Japan, S. Korea warn N. Korea off atom test
Beijing, China, Japan and South Korea warned North Korea Sunday they will not tolerate further nuclear tests, the South Korean president said, amid fears that Pyongyang is preparing a third atomic blast.
Lee Myung-Bak made the remark after talks in Beijing with Chinese Premier Wen Jiabao and Japanese Prime Minister Yoshihiko Noda that also saw the trio decide to start free-trade area negotiations before the end of this year.
"Our three countries agreed that we will not accept further nuclear tests or further provocations from North Korea," Lee told reporters after meeting with his two counterparts for 90 minutes.
Going Global Headline News For Saturday and Sunday May 12th and May 13th ...
*Poof For Sunday, May 13th ~ Happy Mother's Day ...
*Three to Exit J.P. Morgan After Losses
*JP Morgan's CEO, Jamie Dimon, says bank reacted badly to red flags .. (The grand Illusion?) ...
*Economist reveal four solutions to raise the price of the dinar against the dollar
*Spanish banks unveiled fresh funds on Sunday ~ Spain's banks detail new cost of property clean-up
*Iraq and Chapter 7: May 23rd Meeting (5 +1) in Baghdad, evidence of the return of Iraq's international prestige ...
*GCC, Monday, May 14th Meeting ~ From Gulf Union to a likely birth of Saudi-Bahraini entity ...
*Agreement between Iraq and Barzani to adhere to the Convention and the decisions of the meeting of leaders of Arbil's five
*Talabani and Al-Hakim, Abdel Mahdi agree to resolve the crisis through the National Conference and the implementation of the Convention on Arbil
*High Nassif calls on the Government to urge the international community to close the file of Kuwaiti missing persons in Iraq and remove chapter 7 ...
*Member of the Finance Committee: there will be no deficit budget this year and will be distributed in cash surplus oil imports for the people ...
*Iraq's Central Bank: Development of the Warka Bank is settled ...
*Iraq and Kuwait May 15th and UN delegation to Iraq to follow up the decisions of the Joint Committee
**China's PM warns of 'unstable' situation as summit starts, Sunday, the three nations will sign an investment agreement which was concluded in March ..
*Going Global's Featured Videos ...
*Banks prepare for the return of the drachma .. (hmmm, already prepared?) ...
*America's Looming Default Crisis ...
*House of Representatives begins the official holiday on Monday, May 14th and returns June 14th ...
*Iraq Making Progress on Path to Stability - UN Press Release ...
*Iraq has the best investment law in the region ..
*Iraq and WTO ~ Commission: the application of free economy and Iraq enters alkmarikh tariff to WTO ...
*Shabibi/dinar/world bank: a slight decline in demand for the dollar
*Iraqi Dinar .. Finance Committee calls for the study of the process of replacing the currency to reduce the volatility in the market
*Iraqi Dinar and U.S. Dollar .. Deputy: application to replace the currency deliberately limits the fluctuation of the dinar against the dollar ...
*Message From The Angels May 12, 2012 ...
*CBI acknowledges the existence of an imbalance in the exchange rate and the deterioration of the value of the dinar denies
*JPM losses ... around 18 Billion?
*Going Global headline News For Friday, May 11, 2012 ...
Three to Exit J.P. Morgan After Losses
May 13, 2012
Three to Exit J.P. Morgan After Losses
Three high-ranking people are expected to leave J.P. Morgan Chase JPM -9.28%& Co. this week, said people familiar with the situation, in the latest fallout from a trading blunder that has cost the bank at least $2 billion.
The departures involve three of the highest-ranking executives with direct connections to the losses, according to the people familiar. Those leaving are Ina Drew, who since 2005 has run the risk-management unit that is responsible for the losses; Achilles Macris, who is in charge of the London-based desk that placed the trades; and trader Javier Martin-Artajo, a managing director on Mr. Macris' team, the people said.
Ms. Drew has offered to resign multiple times and that request will likely be accepted this week, these people said. She is expected to leave as soon as Monday, the people said.
Read Full Article .. Here
Three to Exit J.P. Morgan After Losses
Three high-ranking people are expected to leave J.P. Morgan Chase JPM -9.28%& Co. this week, said people familiar with the situation, in the latest fallout from a trading blunder that has cost the bank at least $2 billion.
The departures involve three of the highest-ranking executives with direct connections to the losses, according to the people familiar. Those leaving are Ina Drew, who since 2005 has run the risk-management unit that is responsible for the losses; Achilles Macris, who is in charge of the London-based desk that placed the trades; and trader Javier Martin-Artajo, a managing director on Mr. Macris' team, the people said.
Ms. Drew has offered to resign multiple times and that request will likely be accepted this week, these people said. She is expected to leave as soon as Monday, the people said.
Read Full Article .. Here
Economist reveal four solutions to raise the price of the dinar against the dollar
Snip ~ He added: it will be setting conditions for the import operation to lift the dinar, the State will also re-examine the oil policy and revenue.
Sunday, 13-05-2012
Economist reveal four solutions to raise the price of the dinar against the dollar
Baghdad, Detect Economist Salim Al-Bayati, of the intention of the Government to take new measures within the next two months will be to raise the price of the Iraqi dinar against the dollar, noting that the absence of oil policy were the most important factors of the high price of the u.s. dollar.
Sunday, 13-05-2012
Economist reveal four solutions to raise the price of the dinar against the dollar
Baghdad, Detect Economist Salim Al-Bayati, of the intention of the Government to take new measures within the next two months will be to raise the price of the Iraqi dinar against the dollar, noting that the absence of oil policy were the most important factors of the high price of the u.s. dollar.
Poof For Sunday, May 13th ~ Happy Mother's Day ...
Mother's Day lyrics
'Atmosphere'
*LINK*
She lost one to pneumonia and the other to prison, And now she spends mother's day sitting in her kitchen. Looking at her pictures of the past felt surreal, She had a couple people, some friends that helped her heal but, Days like today, she doesn't want to be a bother And as far as she's concerned, her boys didn't have a father.
Nut-uh, she had to teach 'em the ways, Teach 'em how to be behave, be brave, and even how to shave. Some days it makes her feel like a soldier, And other times it makes her feel like a failure. Why did the stronger one die from a cold, huh? Why did the smarter one end up in jail, Nah. She gave them boys everything that she could, Two full time jobs to keep them in a good neighborhood.
They understood how to love and how to live, Now she doesn't, understand how it comes down to this. Maybe she should go work in her yard, And take her mind off the past, try to let the day start. But she's waiting on one of those annual calls, While she's looking at the photos on her hallway walls.
His big sibling died, and mom's by her self, And now he spends everyday inside of that cell. Looking at the photos of his past makes him crash, So he never takes them out of that folder under his mattress. Days like today he doesn't think about what happened, No, still gotta call mommy, wish her a happy one.
Uh huh, mom, if only she'd have been around, Maybe big brother would still be living now. Some days, it makes him feel like a traitor, And other times it makes him feel like a martyr. Seems like some displacement of anger, Seems like he blames her more than his father. She was gone all the time at work, Never around to play the part of the police or the nurse.
She understood how things fall apart, So why'd she let the nest hit the ground this hard? Maybe he should go walk in the yard, And take his mind off the past, try to let the day start. Cause this soldier forgot to admit it's his fault, When he's looking at the faces in his hallway walls.
Greetings and Salutations;
Not all babies are born under the best of circumstances, sometimes they have to go to ICU to increase their viability, in the long term. In this instance, our baby has been in an icu, while outside circumstances were addressed to allow the baby's best circumstances improved to allow it to live in this world with out getting harmed by they who would love to snuff it out. Some of the old system couldn't be applied as was thought, so it required some tweaks, some new soft ware, kind of like going from microsoft to apple hardware/software.
Spanish banks unveiled fresh funds on Sunday ~ Spain's banks detail new cost of property clean-up
Related article? .. link .. What is a tranche?
05/13/2012
Spain's banks detail new cost of property clean-up
Spanish banks unveiled fresh funds on Sunday to meet new government demands aimed at cleaning up the country's sickly property market and easing international markets' concerns about the troubled financial sector.
In its fourth attempt to mend the fall-out from a property crash four years, Spain's government said on Friday lenders must set aside 30 billion euros ($39 billion), on top of 54 billion euros ordered in February, as provisions against toxic real estate assets.
Spain's biggest bank Santander (Banco Santander, S.A.) said it would set aside an extra 2.7 billion euros in funds against its rotten property assets, adding to the 2.3 billion it announced in February.
05/13/2012
Spain's banks detail new cost of property clean-up
Spanish banks unveiled fresh funds on Sunday to meet new government demands aimed at cleaning up the country's sickly property market and easing international markets' concerns about the troubled financial sector.
In its fourth attempt to mend the fall-out from a property crash four years, Spain's government said on Friday lenders must set aside 30 billion euros ($39 billion), on top of 54 billion euros ordered in February, as provisions against toxic real estate assets.
Spain's biggest bank Santander (Banco Santander, S.A.) said it would set aside an extra 2.7 billion euros in funds against its rotten property assets, adding to the 2.3 billion it announced in February.
Iraq and Chapter 7: May 23rd Meeting (5 +1) in Baghdad, evidence of the return of Iraq's international prestige ...
Sunday, May 13, 2012Watermelon: Meeting (5 +1) in Baghdad, evidence of the return of Iraq's international prestige
The Secretary-General of the Iraqi bloc white beauty of watermelon possibility of Iraq's return to normal and its international relations through the meeting (5 +1) to be the end of this month.
The melon in a statement on Sunday that Iraq currently plays a major role in the convergence of views between the United States of America and the Islamic Republic of Iran, and between Iran and some Arab countries, particularly the Gulf, and this evidence of Iraq's return to international status.
added according to the statement that Iraq will return to its status and its international relations through the meeting (5 +1), and specifically with the countries that imposed a blockade on Iraq during the the former regime.
source
GCC, Monday, May 14th Meeting ~ From Gulf Union to a likely birth of Saudi-Bahraini entity ...
May 13, 2012From Gulf Union to a likely birth of Saudi-Bahraini entity
Emirati analyst warns six members are ‘not all enthusiastic about a union’, as they struggle to shape economic integration which has proved elusive.
Gulf leaders at a meeting in Riyadh on Monday will discuss a Saudi proposal to develop their six-nation council into a union, likely to start with the kingdom and unrest-hit Bahrain, officials said.
The Gulf Cooperation Council leaders "will discuss a form of union between Saudi Arabia and Bahrain," said a top Gulf official, requesting anonymity.
Bahrain's state minister for information, Samira Rajab, revealed that a Saudi proposal to evolve the GCC into a union will be on the agenda of the Riyadh meeting, adding that the idea backed by Bahrain could start with two or three members.
"This union could start with two or three" GCC members, she said.
Saudi King Abdullah proposed forming a GCC union last December at a summit of the group.
Saudi Foreign Minister Saud al-Faisal has backed the proposal.
"The threats of all kinds necessitate a serious move by the GCC countries to cross from the cooperation phase to a unity that is acceptable for all," he said last month.
Emirati analyst Abdulkhaliq Abdullah said the idea of a Gulf union was in the offing, expecting an announcement from the consultative summit "at least at a bilateral level."
But he warned that the six members were "not all enthusiastic about a union," as they struggle to shape an economic integration which has proved elusive ever since the GCC was founded.
Saudi analyst Anwar Eshqi, who heads the Jeddah-based Middle East Centre for Strategic and Legal Studies, said the Saudi enthusiasm for a Gulf union was due to "pressure from Iran," which is accused of meddling in Gulf affairs.
The Gulf Cooperation Council was formed in 1981 when the Sunni-dominated monarchies aimed to bolster security after the 1979 Islamic revolution in Iran and its war with Iraq.
The tension between Shiite Iran and Saudi Arabia escalated last year after Saudi troops rolled into Bahrain to help quell protests led by the Sunni-ruled state's Shiite majority.
Tensions mounted further with the deadly clampdown on the uprising in Syria, whose President Bashar al-Assad is a staunch ally of Tehran, while Riyadh and other Arab states in the Gulf have called for the fall of his regime.
Tehran's growing influence in Iraq since the withdrawal of US troops as well as its territorial dispute with the United Arab Emirates have also contributed to fuelling cross-Gulf animosity.
"It is interesting to know if this union (between Bahrain and Saudi Arabia) is going to be economic, political, or military," said Salman Sheikh, director of the Brookings Doha Centre.
"I wonder if this union is going to solve the problems of Bahrain," he added, pointing out that the results of the Riyadh summit would "give an indication of the (regional) ambitions of Saudi Arabia."
Bahrain's Shiite-led opposition has already warned that a union or federation with Saudi Arabia would have to be put to a referendum.
Saudi Arabia is by far the largest Gulf country in terms of population, and size of territory and economy, but other GCC countries, mainly Qatar and the UAE, are unlikely to accept Saudi domination.
Riyadh argues that evolving the GCC into a union has economic potential.
Such a union would turn the oil-rich GCC into a "solid economic bloc," said the Saudi foreign minister, as the combined economic output of the group hit $1,400 billion in 2011.
But the GCC continues to face hurdles preventing the group from reaching goals set at its launch.
Only four members -- Bahrain, Kuwait, Qatar and Saudi Arabia -- have signed a monetary council agreement, and analysts said Gulf states still have a long way to go in their bid to launch a single currency initially slated for 2010.
A customs union launched at the start of 2003 for a three-year transition period has been put off until 2015, as issues of revenues, dumping and protectionism repeatedly delay its full implementation.
source
JP Morgan's CEO, Jamie Dimon, says bank reacted badly to red flags .. (The grand Illusion?) ...
MUST READ .. Link .. Links ~ JPMorgan, Jamie Dimon ...
05/13/2012
JPMorgan CEO says bank reacted badly to red flags
JPMorgan Chase & Co CEO Jamie Dimon said his bank reacted badly to warning flags last month that it had large losses in financial derivatives trading, a $2 billion embarrassment that has given banking regulators new ammunition.
In an interview broadcast on Sunday on NBC's "Meet the Press" television program, Dimon said bank executives were "completely wrong" in public statements they made in April after being challenged over the trades in media reports.
"We got very defensive. And people started justifying everything we did," Dimon said. "We told you something that was completely wrong a mere four weeks ago."
In early April, Bloomberg News and the Wall Street Journal published stories quoting sources in the derivatives markets saying the bank's corporate investment office had made big bets that distorted prices and could be hard for the bank to unwind.
Dimon called the stories "a tempest in a teapot" when questioned by analysts in an April 13 conference call.
On Thursday, Dimon announced that the bank, the biggest in the United States by assets, had lost $2 billion or more by mishandling a portfolio of derivatives.
The comments to NBC were Dimon's first public statements since he spoke to analysts in a conference call on Thursday. He is scheduled to speak again on Tuesday at the company's annual meeting in Tampa, Florida.
Dimon did not explain in the interview why the trades went wrong. He had declined on Thursday, too, to describe details of the trades when pressed by the analysts. He said the positions were first designed to hedge risks in the bank's investments.
"The strategy we had was badly vetted," Dimon said in the interview. "It was badly monitored. It should never have happened."
The debacle provides ammunition to advocates already calling for tougher regulation of banks, Dimon said. "This is a very unfortunate and inopportune time to have had this kind of mistake," he said.
Dimon has the been the most outspoken bank executive in arguing that new regulations being finalized and implemented by the U.S. government go too far.
"We hurt ourselves and our credibility," Dimon said. "We got to fully expect and pay the price for that." He said the huge trading loss was not "life threatening" to JPMorgan.
The interview was tapped Friday as an addendum to one Dimon had recorded for the program earlier in the week on a wide range of subjects.
source
05/13/2012
JPMorgan CEO says bank reacted badly to red flags
JPMorgan Chase & Co CEO Jamie Dimon said his bank reacted badly to warning flags last month that it had large losses in financial derivatives trading, a $2 billion embarrassment that has given banking regulators new ammunition.
In an interview broadcast on Sunday on NBC's "Meet the Press" television program, Dimon said bank executives were "completely wrong" in public statements they made in April after being challenged over the trades in media reports.
"We got very defensive. And people started justifying everything we did," Dimon said. "We told you something that was completely wrong a mere four weeks ago."
In early April, Bloomberg News and the Wall Street Journal published stories quoting sources in the derivatives markets saying the bank's corporate investment office had made big bets that distorted prices and could be hard for the bank to unwind.
Dimon called the stories "a tempest in a teapot" when questioned by analysts in an April 13 conference call.
On Thursday, Dimon announced that the bank, the biggest in the United States by assets, had lost $2 billion or more by mishandling a portfolio of derivatives.
The comments to NBC were Dimon's first public statements since he spoke to analysts in a conference call on Thursday. He is scheduled to speak again on Tuesday at the company's annual meeting in Tampa, Florida.
Dimon did not explain in the interview why the trades went wrong. He had declined on Thursday, too, to describe details of the trades when pressed by the analysts. He said the positions were first designed to hedge risks in the bank's investments.
"The strategy we had was badly vetted," Dimon said in the interview. "It was badly monitored. It should never have happened."
The debacle provides ammunition to advocates already calling for tougher regulation of banks, Dimon said. "This is a very unfortunate and inopportune time to have had this kind of mistake," he said.
Dimon has the been the most outspoken bank executive in arguing that new regulations being finalized and implemented by the U.S. government go too far.
"We hurt ourselves and our credibility," Dimon said. "We got to fully expect and pay the price for that." He said the huge trading loss was not "life threatening" to JPMorgan.
The interview was tapped Friday as an addendum to one Dimon had recorded for the program earlier in the week on a wide range of subjects.
source
Saturday, May 12, 2012
Agreement between Iraq and Barzani to adhere to the Convention and the decisions of the meeting of leaders of Arbil's five
12-05-2012
Al jumaily: agreement between Iraq and Barzani to adhere to the Convention and the decisions of the meeting of leaders of Arbil's five
Irbil, Chairman of the Kurdistan region Massoud Barzani, the Iraqi list led by delegation leader and Finance Minister Rafe Al-Issawi, political developments and the relationship between Iraq and the Kurdish Alliance list.
President cluster Salman Al-jumaily, the Iraqi parliamentary reporter (News Agency news) after the meeting late Saturday: Iraqi delegation discussed with President Barzani, political developments and the ongoing negotiations to resolve the crisis, and mechanisms for resolving before they deteriorate and affect the Iraqi Street.
Al jumaily said: that agreement has been reached on the need to stick to what was agreed at the meeting of the five leaders (Talabani, Barzani, Allawi alngivi, chest), and full implementation of the Convention on Arbil, noting that President Barzani stressed that with any solutions to the crisis provided the implementation of what is agreed and not growing dictatorship in the country.
Al jumaily said: the Iraqi delegation in all supported Barzani, where the delegation relied to presentations and ideas convergent with presentations and Barzani, visions of the Iraqi list, continued: the aaraket delegation also discussed convergence between the Kurdish Alliance and how to develop convergence and increased cooperation between the two lists.
This top leadership in the Iraqi list Rafe Al-Issawi, Minister of Finance of Iraq delegation to Erbil and included Iraqi Parliamentary Bloc leader Salman Al-jumaily, the head of the party leadership and House Jaber Al jaberi.
source
Al jumaily: agreement between Iraq and Barzani to adhere to the Convention and the decisions of the meeting of leaders of Arbil's five
Irbil, Chairman of the Kurdistan region Massoud Barzani, the Iraqi list led by delegation leader and Finance Minister Rafe Al-Issawi, political developments and the relationship between Iraq and the Kurdish Alliance list.
President cluster Salman Al-jumaily, the Iraqi parliamentary reporter (News Agency news) after the meeting late Saturday: Iraqi delegation discussed with President Barzani, political developments and the ongoing negotiations to resolve the crisis, and mechanisms for resolving before they deteriorate and affect the Iraqi Street.
Al jumaily said: that agreement has been reached on the need to stick to what was agreed at the meeting of the five leaders (Talabani, Barzani, Allawi alngivi, chest), and full implementation of the Convention on Arbil, noting that President Barzani stressed that with any solutions to the crisis provided the implementation of what is agreed and not growing dictatorship in the country.
Al jumaily said: the Iraqi delegation in all supported Barzani, where the delegation relied to presentations and ideas convergent with presentations and Barzani, visions of the Iraqi list, continued: the aaraket delegation also discussed convergence between the Kurdish Alliance and how to develop convergence and increased cooperation between the two lists.
This top leadership in the Iraqi list Rafe Al-Issawi, Minister of Finance of Iraq delegation to Erbil and included Iraqi Parliamentary Bloc leader Salman Al-jumaily, the head of the party leadership and House Jaber Al jaberi.
source
Talabani and Al-Hakim, Abdel Mahdi agree to resolve the crisis through the National Conference and the implementation of the Convention on Arbil
12-05-2012Talabani and Al-Hakim, Abdel Mahdi agree to resolve the crisis through the National Conference and the implementation of the Convention on Arbil
Baghdad, President Jalal Talabani discussed with the Chairman of the Islamic Supreme Council, accompanied by the leadership Council Adel Abdul Mahdi, ways to address the political crisis.
A presidential source said (News News Agency): President Talabani, met with the President of the Islamic Supreme Council, accompanied by Vice President, Ammar al-Hakim, Adil Abd al-Mahdi, former Office Saturday evening, to discuss political developments in the country, and how to handle the crisis as dialogues between political blocs.
Source: Al-Hakim, Abdel Mahdi had heard the vision of President Talabani to resolve the crisis, and in turn, they also heard of vision and the Islamic Supreme Council positions towards the crisis, where emphasis was placed on the importance of strengthening efforts towards access to effective process solutions that promote collaboration and enhance the rows with reinforcing State-building and stability and achieve best performance and political and parliamentary government.
Noted: President Talabani and Al-Hakim, Abdel Mahdi stressed that dialogue is the only way out of the crisis is through the National Convention, and implementing what has been agreed.
This smooth, President Talabani met Friday and Saturday, with Deputy Prime Minister and head of the Al-khuzai khudair National Congress, Ahmed Chalabi, Deputy Prime Minister Saleh Al-mutlaq and others to reach consensus and mechanisms to resolve the political crisis.
Source
High Nassif calls on the Government to urge the international community to close the file of Kuwaiti missing persons in Iraq and remove chapter 7 ...
Sunday, 13-05-2012
High Nassif calls on the Government to urge the international community to close the file of Kuwaiti missing persons in Iraq
Baghdad, Invited the Iraqi bloc MP/free/high Nassif Government requested the international community to close a file remains of missing Kuwaitis in Iraq after assurances by committees formed for this purpose in the absence of any remains of Kuwaitis in Iraq.
She told him of the information Office of the block received (News Agency news) a copy thereof: that some Kuwaiti officials raised the issue of the remains of missing persons in Iraq in the corridors of the United Nations between now and then, in an effort to win the sympathy of the EU countries concerned with issues relating to human rights and address wars.
She added: all committees previously formed for this purpose more than once affirmed that there are no remains of Kuwaitis in Iraq, especially after the excavations which were shown in which Iraq cooperated with the Kuwaiti side.
Nassif said: the need to put his question to the international community, Kuwait in Iraq's interest to hide the remains of Kuwaitis? Calling: close this file as one of the reasons to keep Iraq under heading VII.
source
High Nassif calls on the Government to urge the international community to close the file of Kuwaiti missing persons in Iraq
Baghdad, Invited the Iraqi bloc MP/free/high Nassif Government requested the international community to close a file remains of missing Kuwaitis in Iraq after assurances by committees formed for this purpose in the absence of any remains of Kuwaitis in Iraq.
She told him of the information Office of the block received (News Agency news) a copy thereof: that some Kuwaiti officials raised the issue of the remains of missing persons in Iraq in the corridors of the United Nations between now and then, in an effort to win the sympathy of the EU countries concerned with issues relating to human rights and address wars.
She added: all committees previously formed for this purpose more than once affirmed that there are no remains of Kuwaitis in Iraq, especially after the excavations which were shown in which Iraq cooperated with the Kuwaiti side.
Nassif said: the need to put his question to the international community, Kuwait in Iraq's interest to hide the remains of Kuwaitis? Calling: close this file as one of the reasons to keep Iraq under heading VII.
source
UK Central Bank Official Says Shadow Funds Sponsored by Banks Should Be Consolidated on Bank Balance Sheets; and MMFs Must Choose VNAV or CNAV
Sunday, May 13, 2012
UK Central Bank Official Says Shadow Funds Sponsored by Banks Should Be Consolidated on Bank Balance Sheets; and MMFs Must Choose VNAV or CNAV
Shadow banking vehicles or funds that are sponsored or operated by banks should be consolidated on to bank balance sheet, emphasized Paul Tucker, Deputy Governor of the Bank of England. In remarks at a European Commission seminar, he also said that money market funds should be required to choose between being Variable Net Asset Value (NAV) funds or Constant NAV funds.
The definition of shadow banking employed by the Financial Stability Board and the Commission is credit intermediation, involving leverage and maturity transformation, that occurs outside or partly outside the banking system. In addition to leverage and maturity transformation, Mr. Tucker would include monetary services in that definition.
Shadow banking comes in many forms, he noted. The liquidity offered by some shadow banks relies almost entirely and openly on committed lines of credit from commercial banks. In these cases, the liquidity insurance offered by the shadow bank is derivative.
But for other shadow banks, liquidity services are offered without such back-up, making claims on the shadow bank effectively a monetary asset. Examples of the latter would include money market mutual funds and an element of the prime brokerage services offered by securities dealers to leveraged funds
The deputy governor posits that shadow banking vehicles sponsored or operated by banks are effectively part of their parent bank, including structured investment vehicles, conduits, and money market funds. Many benefitted from the financial support of their parent during the financial crisis. Thus, he recommends that shadow banking vehicles or funds that are sponsored or operated by banks should be consolidated on to bank balance sheets. While acknowledging that consolidation might require changes in accounting rules, which could take time, the senior official maintains that these vehicles and funds should be treated as consolidated in the application of Basel 3 regulatory capital requirements.
Even where a shadow bank is not de facto or de jure part of a banking group, he continued, many are fundamentally dependent on banks through committed lines of credit. The central banker believes that providing committed lines to shadow banks is riskier than providing such lines to non-bank businesses, since shadow banks are liable to call on their lines just when the banking system is coming under liquidity pressure itself.
Noting that this should be reflected in regulations on banks’ liquidity exposures, Mr. Tucker suggested that the draw-down rate assumed in the Basel 3 Liquidity Coverage Ratio should be higher for committed lines to financial companies than for lines to non-financial companies. This would result in banks holding more liquid assets against such exposures.
Claims on money funds have, in effect, become monetary assets in the hands of savers, noted the official and, in parts of the world, especially the US, they are treated like current accounts. Given the restrictions on their asset holdings, he said, they resemble narrow banks in mutual-fund clothing.
For a normal open-end mutual fund, he noted, the value of investments in it fluctuates with the value of the vehicle’s asset portfolio. By contrast, most money funds hold themselves out as offering par under any circumstances; when they break the buck, they must unwind. Their investors run at that prospect, said Mr. Tucker, and so the funds themselves are flighty investors.
Compared to most types of shadow banking, money funds do not borrow in the usual sense. But by promising par, they are in effect incurring debt-like obligations, he reasoned, and can be exposed to leverage. Thus, he recommends that money market funds be required to choose between being Variable Net Asset Value (NAV) funds or Constant NAV funds, with any remaining CNAV funds subjected to capital requirements of some kind. Moreover, they all should be subject to gates or other measures that can be used to delay withdrawals in order to make runs less likely.
There must be a globally consistent approach to regulating money funds, he emphasized, and the US is crucial in this regard since the largest money-fund industry in the world is based in the US. Further, the US money market fund industry is internationally active; lending to banks, corporations and sovereigns around the world. This fact underlines the importance of the outcome of the deliberations of the SEC and of the Financial Stability Oversight Counsel in this area.
While hopeful that US authorities will take action, observed the UK official, if they do not, the EU and other global authorities will need to determine what if any measures they could sensibly take to make the financial system more resilient to the fault line that the money fund industry currently represents. One possibility would be for bank regulators to limit the extent to which banks could fund themselves short-term from US money funds and from other fragile and flighty sources, including CNAV money funds domiciled elsewhere.
The Deputy Governor emphasized that such a policy need not be targeted at US funds per se. Rather, it could be cast in terms of the liability structure and sources of funding of the banking system. The Basel 3 Net Stable Funding Ratio could be employed. He also noted that on some fronts, notably transparency, the EU should aim to catch up with the progress the US has already made.
Some shadow banks are businesses, such as securities dealers and finance companies, and not funds or vehicles. If they are financed materially by short-term debt, Mr. Tucker believes that they should be subject to bank-type regulation and supervision of the resilience of their balance sheets. In the EU, many dealers are investment firms and thus already subject to the same Directives as banks on capital adequacy. But this is not true of finance companies in many jurisdictions. The central bank official suggested that there should be a size threshold for applying bank-style capital and liquidity regulation to such non-bank banks.
For non-banks, he continued, any client moneys and unencumbered assets should be segregated and should not be used to finance the business to a material extent. It should, however, remain permissible for non-banks to lend to such clients on a collateralized basis to finance their holdings of securities, such as margin lending. This is an area where regimes vary enormously around the world or are non-existent. For example, the US domestic regime is stricter on this than Europe. Mr. Tucker called for a global discussion in this area.
source
UK Central Bank Official Says Shadow Funds Sponsored by Banks Should Be Consolidated on Bank Balance Sheets; and MMFs Must Choose VNAV or CNAV
Shadow banking vehicles or funds that are sponsored or operated by banks should be consolidated on to bank balance sheet, emphasized Paul Tucker, Deputy Governor of the Bank of England. In remarks at a European Commission seminar, he also said that money market funds should be required to choose between being Variable Net Asset Value (NAV) funds or Constant NAV funds.
The definition of shadow banking employed by the Financial Stability Board and the Commission is credit intermediation, involving leverage and maturity transformation, that occurs outside or partly outside the banking system. In addition to leverage and maturity transformation, Mr. Tucker would include monetary services in that definition.
Shadow banking comes in many forms, he noted. The liquidity offered by some shadow banks relies almost entirely and openly on committed lines of credit from commercial banks. In these cases, the liquidity insurance offered by the shadow bank is derivative.
But for other shadow banks, liquidity services are offered without such back-up, making claims on the shadow bank effectively a monetary asset. Examples of the latter would include money market mutual funds and an element of the prime brokerage services offered by securities dealers to leveraged funds
The deputy governor posits that shadow banking vehicles sponsored or operated by banks are effectively part of their parent bank, including structured investment vehicles, conduits, and money market funds. Many benefitted from the financial support of their parent during the financial crisis. Thus, he recommends that shadow banking vehicles or funds that are sponsored or operated by banks should be consolidated on to bank balance sheets. While acknowledging that consolidation might require changes in accounting rules, which could take time, the senior official maintains that these vehicles and funds should be treated as consolidated in the application of Basel 3 regulatory capital requirements.
Even where a shadow bank is not de facto or de jure part of a banking group, he continued, many are fundamentally dependent on banks through committed lines of credit. The central banker believes that providing committed lines to shadow banks is riskier than providing such lines to non-bank businesses, since shadow banks are liable to call on their lines just when the banking system is coming under liquidity pressure itself.
Noting that this should be reflected in regulations on banks’ liquidity exposures, Mr. Tucker suggested that the draw-down rate assumed in the Basel 3 Liquidity Coverage Ratio should be higher for committed lines to financial companies than for lines to non-financial companies. This would result in banks holding more liquid assets against such exposures.
Claims on money funds have, in effect, become monetary assets in the hands of savers, noted the official and, in parts of the world, especially the US, they are treated like current accounts. Given the restrictions on their asset holdings, he said, they resemble narrow banks in mutual-fund clothing.
For a normal open-end mutual fund, he noted, the value of investments in it fluctuates with the value of the vehicle’s asset portfolio. By contrast, most money funds hold themselves out as offering par under any circumstances; when they break the buck, they must unwind. Their investors run at that prospect, said Mr. Tucker, and so the funds themselves are flighty investors.
Compared to most types of shadow banking, money funds do not borrow in the usual sense. But by promising par, they are in effect incurring debt-like obligations, he reasoned, and can be exposed to leverage. Thus, he recommends that money market funds be required to choose between being Variable Net Asset Value (NAV) funds or Constant NAV funds, with any remaining CNAV funds subjected to capital requirements of some kind. Moreover, they all should be subject to gates or other measures that can be used to delay withdrawals in order to make runs less likely.
There must be a globally consistent approach to regulating money funds, he emphasized, and the US is crucial in this regard since the largest money-fund industry in the world is based in the US. Further, the US money market fund industry is internationally active; lending to banks, corporations and sovereigns around the world. This fact underlines the importance of the outcome of the deliberations of the SEC and of the Financial Stability Oversight Counsel in this area.
While hopeful that US authorities will take action, observed the UK official, if they do not, the EU and other global authorities will need to determine what if any measures they could sensibly take to make the financial system more resilient to the fault line that the money fund industry currently represents. One possibility would be for bank regulators to limit the extent to which banks could fund themselves short-term from US money funds and from other fragile and flighty sources, including CNAV money funds domiciled elsewhere.
The Deputy Governor emphasized that such a policy need not be targeted at US funds per se. Rather, it could be cast in terms of the liability structure and sources of funding of the banking system. The Basel 3 Net Stable Funding Ratio could be employed. He also noted that on some fronts, notably transparency, the EU should aim to catch up with the progress the US has already made.
Some shadow banks are businesses, such as securities dealers and finance companies, and not funds or vehicles. If they are financed materially by short-term debt, Mr. Tucker believes that they should be subject to bank-type regulation and supervision of the resilience of their balance sheets. In the EU, many dealers are investment firms and thus already subject to the same Directives as banks on capital adequacy. But this is not true of finance companies in many jurisdictions. The central bank official suggested that there should be a size threshold for applying bank-style capital and liquidity regulation to such non-bank banks.
For non-banks, he continued, any client moneys and unencumbered assets should be segregated and should not be used to finance the business to a material extent. It should, however, remain permissible for non-banks to lend to such clients on a collateralized basis to finance their holdings of securities, such as margin lending. This is an area where regimes vary enormously around the world or are non-existent. For example, the US domestic regime is stricter on this than Europe. Mr. Tucker called for a global discussion in this area.
source
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