The great interest rate ripp off part 2

[interestrateripoff]

Apple's Jobs takes 3rd medical leave, stock slumps

 

SAN FRANCISCO/LONDON (Reuters) - Apple Inc Chief Executive Steve Jobs is taking medical leave for the third time since 2004, sending its shares tumbling more than 8 percent as the surprise revived concerns over the long-term future of the iPhone- and iPad-maker. | Video

Continue Reading

 

 

 

Caution sets in after BP-Rosneft deal

 

LONDON (Reuters) - Investors and analysts gave a cautious welcome to BP's share swap and Arctic exploration deal with Russia's Rosneft, saying that any return is likely a long way off.

Gulf Oil Spill 4:48pm GMT

 

FTSE falls as weak banks

 

LONDON (Reuters) - The top share index fell on Monday, with declines from miners and banks offsetting a lift from merger and acquisition moves, as finance ministers were gathering to discuss changes to the euro zone's rescue fund.

5:42pm GMT

 

Airbus sells 10,000th plane, beats Boeing in 2010

 

TOULOUSE, France (Reuters) - European planemaker Airbus celebrated a surprise win in the annual orders race against Boeing with the 10,000th plane sale in its 40-year history, part of a $5 billion (3 billion pounds) order from Virgin America.

Aerospace & Defence 7:36pm GMT

 

Goldman to exclude U.S. from Facebook placement

 

NEW YORK (Reuters) - Goldman Sachs said it will limit its private placement of shares of social networking site Facebook to investors outside the United States, citing "intense media coverage," according to the investment bank.

7:14pm GMT

 

UK kick-starts plan to sell Northern Rock

 

LONDON (Reuters) - The government is seeking advisers to help return state-owned retail bank Northern Rock Plc to the private sector, three years after it was nationalised during the financial crisis.

7:42pm GMT

 

Euro zone finmins discuss changes to rescue fund

 

BRUSSELS (Reuters) - Euro zone finance ministers called on Monday for an increase in the effective lending capacity of the currency bloc's rescue fund, but EU paymaster Germany said there was no urgency and it would be March before a firm plan was in place.

6:53pm GMT

 

GSK faces Q4 profit wipe-out on $3 billion legal hit

 

LONDON (Reuters) - GlaxoSmithKline will record a legal charge of 2.2 billion pounds for the fourth quarter, effectively wiping out its profit, as it settles further claims related to Avandia and sales practices.

5:16pm GMT

 

ECB won't change interest rates until Q4 - poll

 

LONDON (Reuters) - The European Central Bank is not seen shifting interest rates until the fourth quarter but expectations for an earlier hike are on the up, a Reuters poll of analysts found.

7:39pm GMT

 

December CPI to pose further headaches for Bank

 

There is an upward skew to Reuters' poll of economists' forecasts for consumer price inflation. While the median forecast is for CPI to remain at November's six-month high of 3.3 percent, the 26 predictions ranged from 3.1 percent to 3.7 percent, and the mean is just short of 3.4 percent.

[interestrateripoff]

17 January 2011 Last updated at 16:07

 

Apple boss takes 'medical leave'

 

Apple boss Steve Jobs announces that he is to take another round of medical leave from the high-profile technology firm.

 

Bank 'must keep nerve on rates'

 

The Bank of England should "hold its nerve" and avoid pressure to raise interest rates, an influential economic forecaster says.

 

 

 

• Glaxo takes £2.2bn legal charge
   
  GlaxoSmithKline sets aside £2.2bn ($3.4bn) to cover costs relating to investigations into its drugs, including Avandia.
  
• BP shares rise after Rosneft deal
   
  Shares in BP rise 2% after the oil giant announced a joint venture with Russian energy firm Rosneft late on Friday.
  
• Wikileaks given Swiss bank data
   
  A former Swiss banker hands over data to Wikileaks that he says contains offshore account details of 2,000 prominent people.
  
• Farm shops' loyalty card launched
  
• Smiths shares up on bid rejection
  
• Airbus plane orders exceed Boeing
  
• Store thefts 'soar year on year'
  
• Massmart backs sale to Wal-Mart
  
• Rising borrowing costs predicted
  
• Production increase for UK Coal
  
• Directors in 'boardroom bubble'
  
• China questions currency system
  
• Small business confidence 'falls'
  

[interestrateripoff]

Apple Says Steve Jobs Will Take a New Medical Leave

 

By MIGUEL HELFT 2:00 PM ET

 

 

Steven P. Jobs, the chief executive of Apple, said he needed to “focus on my health,” a year and a half after his return from a liver transplant. Timothy D. Cook, the chief operating officer, is to oversee day-to-day operations.

 

• Video From Reuters
  
• Times Topics: Steven P. Jobs | Apple, Inc. | Timothy D. Cook
  
• Post a Comment | Read (148)
  

 

 

 

Justin Sullivan/Getty Images

 

The Apple C.E.O. Steve Jobs at Apple’s headquarters in Cupertino, Calif., last October.

 

 

 

 

 

 

Goldman Limits Facebook Investment to Foreign Clients

 

By ANDREW ROSS SORKIN 6 minutes ago

 

Goldman Sachs said it was restricting participation in its Facebook investment fund to clients outside the United States, in the wake of intense media attention.

 

Ex-Swiss Banker Gives Data to WikiLeaks

 

By RAVI SOMAIYA and JULIA WERDIGIER 15 minutes ago

 

A former executive with Julius Baer said he had given WikiLeaks details of more than 2,000 individuals and companies that he contends engaged in criminal activity.

 

Glaxo Takes $3.4 Billion Charge on Legal Problems

 

By DUFF WILSON 7 minutes ago

 

The move, prompted by claims over the diabetes drug Avandia and inquiries into sales practices, will effectively wipe out its quarterly profit.

 

Betting on Justice

 

Lawsuit Loans Add New Risk for the Injured

 

By BINYAMIN APPELBAUM

 

Lending to plaintiffs is usually unregulated, leaving the industry free to ignore laws that protect borrowers.

 

• Previous Articles in the Series »
  

 

Your Brain on Computers

 

In New Military, Data Overload Can Be Deadly

 

By THOM SHANKER and MATT RICHTEL

 

Raw information helps determine what targets to hit and what to avoid, but sometimes the data is overwhelming.

 

• Previous Articles in the Series »
  

 

Big Retailers Fill More Aisles With Groceries

 

By STEPHANIE CLIFFORD

 

Stores known for selling clothes or aspirin, like Walgreens, CVS and Target, are expanding into the grocery business.

 

• Read Comments (115)
  

 

Europe’s Challenge: Fostering Growth Amid Austerity

 

By LIZ ALDERMAN

 

Weaker euro zone members are taking hard steps to stabilize their finances, but the strains on a currency that must serve both solvent and wavering economies are visible.

 

• Irish Leader Rejects Push to Resign as Party Chief
  

 

Italy Drops Inquiry Into Google

 

By ERIC PFANNER

 

Since the investigation began, Google had made it easier for publishers to quit Google News without affecting their search results, and the company pledged to maintain that system.

 

Virgin America Places Big Order for New Airbus Jet

 

By JAD MOUAWAD 5:40 AM ET

 

The order for 30 of the A320neo model will be booked to 2010, allowing Airbus to slip past Boeing in orders.

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[/url]

 

 

BP shares rise on Rosneft deal

 

BP shares rose 2pc as investors got their first chance to react to a share-swop deal with Russia's state-controlled Rosneft which gives it access to areas of the Arctic previously reserved for Russian oil groups.

How to invest in oil

 

 

BP's new Russian excursion is a risk worth taking

 

 

Buy into BP

 

 

 

 

US banned from investing in Facebook

 

Goldman Sachs has banned US investors from buying shares in Facebook as it prepares to sell a stake in the social network website, blaming the level of media attention the deal had generated.

 

German coalition split over EU's bail-out fund

 

Members of Angela Merkel's coalition are resisting plans for an increase in the EU's bail-out fund, ahead of Monday's crucial meeting of EU finance ministers.

 

Stanley Gibbons eyes Royal Wedding boost

 

The Royal Wedding bandwagon is gathering pace after Stanley Gibbons, the stamp and memorabilia group, said its sales would benefit from the marriage of Prince William and Kate Middleton.

 

Housing market toughens for first-time buyers

 

Housing affordability is at near-record levels but first-time buyers will find it harder to buy because mortgage lending has tightened.

 

Severstal plans $5bn Nord Gold London listing

 

 

 

 

India picks banks to lead $4bn sale of ONGC stake

 

 

 

 

FSA sues '£140m' private investor

 

 

 

 

Car industry seeks to eliminate use of rare earth minerals

 

 

 

 

E&Y takes Cameron to task over inflation comments

 

 

New age of intervention in food prices

 

Worries over food prices are gathering pace and triggering alarm among politicians across the world. For there is nothing more likely to bring down a government than ignoring starving citizens.

EMU policies are pushing Southern Europe into systemic political crisis

 

 

 

 

Irish lenders besiege ECB for loans

 

 

 

 

Illusions that imperil the future of China and the West

 

 

Council staff to go on loan to companies

 

Council staff are set to be seconded to private sector companies where they're needed.

John Timpson: how to act when business partners fall out

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MERS Minus A Few Bricks....

Which one is the critical one that, when removed, causes all of this bogosity to crumble into dust?

A Utah court case in which the owner of a D****r townhouse got clear title to the property, even though he still owed $132,000 on it, raises new legal and financial questions about a property-records database created by mortgage bankers.

Oops.

What happened here was that an attorney went in and filed a "quiet title" action - that is, to remove any clouds on the title. The problem MERS instantly ran into is that it has publicly disavowed being a real party at interest - that is, it's only a nominee. Therefore, it doesn't have to be named.

This is a major problem for them. See, the point of MERS is to avoid paying recording fees. But the point of property records is to provide a clear and clean record of who owns a property and who has an interest in it - including who has a lien. MERS entire purpose is obscuring this and abstracting it to a thing inside their database only, making the disclosure of the underlying facts a function of the investor's desires, rather than one of public notice and record.

Unfortunately for MERS (and those who bought paper allegedly "secured" in this fashion) state property law says otherwise in a number of jurisdictions. Specifically, State Property Law in some jurisdictions requires that security interests be held by a named entity, just as a deed must be. That is, you can't transfer a deed "in blank" nor can you have a security interest "in blank"; the identity of said person or corporation has to be known and recorded.

What happened here is that an enterprising attorney, recognizing this, sued for quiet title - that is, to remove any clouds on the title. Since MERS was not entitled to be noticed as they by their own words and actions are not a real party at interest, they didn't know about it. The title companies, which were on the original records and the original writer of the mortgage, who were in the records, didn't bother to respond because the title company doesn't hold the paper and the original lender was paid in full when he sold off the note - so he has no real interest either.

Oops.

Mish is going bananas over this, claiming it's "a travesty of justice."

No it's not.

The debt is still collectable. It's just unsecured. Now that makes foreclosure impossible, but not a suit for collection. Effectively, the mortgage is now like a credit-card loan - it has no security interest associated with it, and that might make it far more difficult to collect.

It also, however, brings into question whether the purchasers of MBS that were assembled by the people who did this have a claim under criminal and civil fraud statutes. The parties assembling these loans into trusts knew damn well that State Law required recordation of interests and that they were marketing these loans as fully-secured by the underlying real estate. They decided, on their own initiative, to forego the "hassle" and "expense" of recording the interests, as well as (in the case in Massachusetts) bothering to transfer the notes as required into the trusts at the time, producing a business record that was sufficient to meet the requirements of law and admissible evidence.

Deciding to play "go go" during the bubble years was a decision made by the securitizers and lenders; the borrowers had exactly nothing to do with it. They were no more able to influence that decision than was Mickey Mouse, and to claim that there's something "inequitable" that comes about when someone makes an allegedly secured loan but doesn't bother to do the things necessary under the law to retain the security interest is pure nonsense.

Again, the debt isn't gone - it's just lost its characteristic of a secured note.

And that, my friends, is exactly what the rule of law says should happen when you make an intentional decision to cheat the process for your own pecuniary benefit.

You get the consequences.

 

The legal fallout from this mess is going to last years!!!!

[interestrateripoff]

http://www.debtbombshell.com/

 

A glorious date for our nation, we now owe over £1tr it's a great achievement.

[interestrateripoff]

Breaking news

 

• Brazil adds record payroll jobs in 2010-ministry - Reuters
  
• Citigroup trading drop shows revival obstacles - Reuters
  
• Comcast wins Justice Dept approval for NBCU deal - Reuters
  
• U.S. FCC approves Comcast/NBCU deal - Reuters
  
• US Supreme Court weighs 20-year fight on warplane - Reuters
  
• Private equity ups bid for Ireland's EBS-source - Reuters
  
• US Supreme Court weighs 20-year fight on warplane - Reuters
  
• Apple news impacts hedge funds, heavy investors - Reuters
  
• Two charged over iPad hacking on AT&T network - Reuters
  

 

 

 

• HMV distributors denied credit insurance
   
  Last updated six minutes ago
  New blow to HMV after fears over loan covenant and grim Christmas trading
  
• Apple shares fall 4% as Wall Street digests news of Jobs medical leave
   
  Investors nervous after Monday's announcement that Jobs will take a third, open-ended, period of medical leave
  15 comments
  
• Inflation hits 3.7% after record monthly increase
   
  UK inflation has surged to its highest level since April 2010 as the rising cost of food and oil continued to hit consumers and businesses
  379 comments
  
  • Poor's standard of living 'will continue to fall'
    
  • Consumer confidence rises
    
  • Datablog: UK inflation since 1948
    
  • Inflation: what the experts say
    
  • Larry Elliott: We expected bad, but not this bad
    
  • Interactive: Inflation in the UK
    
  • Q&A: How to beat the rise in inflation
    
  • Rate rise could wreck recovery, economists warn
    

  [*] Citigroup returns to profit

   

  Wall Street bank sets aside £15bn to pay salaries and bonuses as it makes it back into the black for the first time since the financial crisis

  6 comments

  • Barclays fined £7.7m over investment advice failures
    
  • Lloyds to pay millions in 'golden hello'
    
  • Santander chief faces Spanish banking ban
    
  • Goldman under fire for $15.4bn wage bill
    
  • Andrew Clark: Self-regulation of bonuses won't work
    
  • Anger as JP Morgan bankers get $10bn
    
  • More on bank bonuses
    

  [*] Chilly end to 2010 for housing market

   

  Rics survey finds sales levels stabilised in December – but inquiries dropped for seventh month in a row and new instructions also fell

  25 comments

 

 

• Burberry sales jump as China booms
   
  The luxury clothing company saw global like-for-like sales rise 14% in the last quarter of 2010, but Chinese sales soared by more than 30%
  8 comments
  
• Eurozone tensions rise amid bailouts
   
  José Sócrates reportedly begged Angela Merkel for help last week as Portugal became the latest eurozone country tipped for a bailout. But the cynical response from IMF chief Dominique Strauss-Kahn reveals rising tensions within the bloc
  
• TNK-BP boss predicted breakup of Russian joint venture
   
  Leaked comments by David Peattie, head of BP in Russia, suggest British oil group expected Kremlin-backed takeover
  12 comments
  
  • Risks and rewards for BP in Russia
    
  • Nils Pratley: BP wants to be cuddly with the Kremlin
    
  • BP's shares rise despite criticism of Russian deal
    
  • Miliband calls BP's Russian tie-up 'worrying'
    
  • US reputation is torched, now it's Bolshoi Petroleum
    
  • US hostility grows over BP's Russian deal
    

  [*] Fancy a pail of coffee? Starbucks thinks so

   

  Richard Adams: Starbucks announces plans to sell bladder-bursting 'Trenta' cup size - holding almost a litre of coffee - in its US outlets

  105 comments

  • Starbucks: is a pint-and-a-half of coffee too much?
    

  [*] More business news

  [*] RBS sells the Priory Group

  [*] China ahead of World Bank in loans to developing world

  [*] Northern Rock launches hunt for buyers

[interestrateripoff]

GSK sets aside £2.2bn to cover Avandia claims

 

Nikhil Kumar: Legal bills related to diabetes drug will wipe out profits for the past quarter.

 

 

• Inflation rise adds to pressure for rates hike new
  
• Record £7.7m fine for Barclays
  
• Bank sells rehab clinics in £925m deal
  
• Many bankers are overpaid, admits RBS boss
  
• Heinz workers agree pay deal new
  
• Starting gun fired on Northern Rock sale
  
• Eurozone ducks crucial issues on rescue fund
  

 

David Prosser: Apple owes it to investors to tell them more about the boss's health

 

Outlook: In theory, it is the business of no one other than his nearest and dearest why exactly Steve Jobs has had to take a second leave of absence from Apple – or what his prognosis now is. In practice, Apple investors will want more information than the skimpy announcement that the technology giant yesterday offered. If it refuses to provide an update, Apple is not being fair to its shareholders.

 

 

• Stephen Foley: Dimon's gripes reveal reform is still being resisted by the banks
  
• Stephen Foley: So, what 'should we' make of Goldmans?
  
• David Prosser: Do the credit rating agencies dare hold the US to account?
  
• David Prosser: Take the politics out of the Sky decision
  
• James Thompson: Snow shows the need for a slick internet operation
  

 

Cadbury deal turns sour for Green & Black's

 

 

When Craig Sams sold his organic chocolate company Green & Black's to Cadbury for £20m in 2005, he was anxious to emphasise that his ultra-ethical brand was in good hands.

 

• The Business On: Andy Hornby, chief executive, Alliance Boots
  
• Polar pioneers: Is arctic oil the final frontier?
  
• Henderson throws golden bonus net over Gartmore's new stars
  
• Energy giants desperate to come in from the cold
  
• The business on...David Montgomery, Ex-chief executive, Mecom
  

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FTSE snaps losing streak buoyed by corporate results

 

LONDON (Reuters) - Banks and commodity stocks helped the top share index break a three-day losing streak on Tuesday, as upbeat corporate results from Burberry , SAB Miller and Rio Tinto lifted investor sentiment.

Continue Reading

 

 

 

Inflation leaps to 8-month high, pressure on Bank

 

LONDON (Reuters) - A record monthly jump in prices drove inflation to an 8-month high in December, piling pressure on the Bank of England to raise interest rates and show it is not letting inflation get out of control. | Video

David Cameron 7:00pm GMT

 

Power reform may attract new players - Ofgem

 

LONDON (Reuters) - Proposed reform to Britain's power market could result in new companies investing in the future of the energy system, while incumbent players may take a back seat, the country's energy regulator said on Tuesday.

UK, 7:05pm GMT

 

Citigroup trading drop shows revival obstacles

 

NEW YORK (Reuters) - A sharp drop in bond trading revenue pushed Citigroup Inc fourth-quarter profit far below expectations, highlighting Chief Executive Vikram Pandit's challenges in fully reviving the bank.

5:11pm GMT

 

New Irish law to trim IMF bailout rate

 

DUBLIN (Reuters) - Ireland's cost of borrowing from the International Monetary Fund under a bailout package will be cut by around 15 basis points after the government passes legislation on changes to the country's IMF representation.

4:06pm GMT

 

Myners denies giving bank auditors comfort

 

LONDON (Reuters) - Auditors were not given specific government reassurances so they could hand banks a clean bill of health at the height of the financial crisis, a former minister said on Tuesday.

7:32pm GMT

 

Europe goes slow on rescue fund, stress tests

 

BRUSSELS (Reuters) - European finance ministers inched forward on Tuesday towards beefing up the euro zone's rescue fund and preparing new stress tests for the region's shaky banks, dashing market hopes of quicker action.

FXpert 7:51pm GMT

 

National Grid staff to start protest next week - union

 

LONDON (Reuters) - Employees at Britain's energy network operator National Grid will start an indefinite period of industrial action on January 28 due to a dispute over pay rises, labour union Unison said on Tuesday.

UK 6:22pm GMT

 

EU raids European truckmakers in cartel probe

 

STOCKHOLM/BRUSSELS (Reuters) - European Union authorities launched cartel raids on major truck manufacturers in Europe Tuesday, including the industry's top two firms.

6:56pm GMT

 

Boeing sees first Dreamliner delivery in third quarter

 

CHICAGO (Reuters) - Boeing Co said the first delivery of its long-delayed 787 Dreamliner would come in the third quarter of 2011, clearing up fears about the schedule after a November electrical fire on a test flight threw the timing into doubt.

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http://uk.finance.yahoo.com/news/-103-trillion-credit-needed-reuters_molt-684155710.html?x=0

 

An extra $103 trillion of credit is needed over the next decade if global economic growth is to meet consensus forecasts, the World Economic Forum and McKinsey said in a report to be discussed at next week's Davos meeting. The study, to be presented at the WEF's annual meeting of policymakers, bankers and business leaders in the Swiss ski resort, said meeting credit demand would be challenging.

"Globally, financial protectionism may constrain cross-border financing, a key to the provision of sufficient credit in the next decade, as global imbalances persist," the WEF said in a statement on Tuesday.

It said Asia might struggle to meet high credit demand growth of $40 trillion with less developed financial systems and capital markets, while banks in the European Union would need to lend a further $13 trillion.

"To supply this, banks will require additional capital that, after retained earnings, could lead to a capital shortfall of $2 trillion," the report said.

Meanwhile, the United States will continue to need to draw on global savings, potentially by up to $3.8 trillion in 2020, to fund its credit needs, unless there is a big increase in the domestic savings rate.

 

In a debt based monetary system the only way to create more growth is to create more debt.

 

https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html

 

GDP (purchasing power parity):

 

$74.43 trillion (2010 est.)

country comparison for the world

$71.17 trillion (2009 est.)

$71.67 trillion (2008 est.)

note: data are in 2010 US dollars

GDP (official exchange rate):

 

 

GWP (gross world product): $62.22 trillion (2009 est.)

 

We have the exponential growth of debt funding the exponential growth of GDP.

 

I would argue we are at the limits of the exponential game the figures quoted are losing all meaning.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8266582/Big-banks-running-an-oligopoly-says-Virgin-Money-chief.html

 

Jayne-Anne Gadhia, chief executive of Virgin Money, told a meeting of the Treasury Select Committee that the UK’s five biggest lenders had an “effective oligopoly” and said more needed to be done to improve competition.

 

“The consumer has not got much of a look in. The problem is that effectively with the oligopoly it was very difficult to get scale,” said Ms Gadhia.

 

Ms Gadhia added that consumers were "being misled" by big banks, but often stayed with them because of "brand loyalty".

 

Under repeated questioning from the MPs, Ms Gadhia declined to call for the forced separation of banks, but admitted that some form of break-up of the branch networks of the largest lenders could be good for customers.

 

So oligopoly bad, but the forced splitting up of the big banks shouldn't happen?

 

Fantastic.

 

She also fails to grasp that if they are operating in an oligopoly their is no incentive to move because you are only going to move like for like which will offer no benefit so what's the point in moving.

[interestrateripoff]

[/url]

 

 

Big banks running an oligopoly, says Virgin Money chief

 

The chief executive of Virgin Money says the break up of the country’s largest lenders could benefit the retail banking market.

Jayne Anne Gadhia - Virgin Money's 'more sporty than brainy' boss

 

 

Profile: Ana Botín - Santander's tough operator

 

 

Big banks are operating as an 'oligopoly'

 

 

 

 

Food, fuel raise inflation to 8-month high

 

The pace of price rises surged to a shock eight-month high in December, piling pressure on Bank of England policymakers to raise interest rates to stop inflation spiralling higher.

Rate rises are coming, households should prepare

 

 

Beware government's slow-motion bank robbery by inflation

 

 

Inflation hits 8 month high - market reaction

 

 

 

Barclays faces near £70m mis-selling bill

 

The bank has been ordered to pay compensation of up to £60m to customers sold unsuitable investments and fined a record £7.7m by the Financial Services Authority.

The FSA's 10 biggest fines

 

 

 

Citigroup defends bond traders as revenues fall

 

Citigroup was forced to defend its bond traders on Tuesday as a drop in fixed-income revenue overshadowed the bank's first annual profit since the financial crisis almost destroyed it.

 

'Lack of supply not to blame for $99 oil'

 

The world is well supplied with oil, OPEC insisted, as it took a swipe at warnings the price could derail the economic recovery.

 

Vodafone complains to India over Essar restructure

 

 

 

 

Goldman shuns BRICs for Wall St

 

 

 

 

EU finance ministers back bigger bailout fund

 

 

 

 

Burberry shares up as sales exceed expectations

 

 

 

 

Glaxo faces £2bn legal bill after Avandia probe

 

 

Inflation costs pensioners £500 a year

 

Pensioners are losing out more than £500 a year because of rising levels of inflation, according to research that has highlighted how those over the age of 55 are being hit hard by cost of living increases.

Surge in cost of food and fuel pushes inflation above forecasts

 

 

 

 

Rate rises are coming, households should prepare

 

 

 

 

Don't focus on short-term inflation, says BoE's Fisher

 

 

Beware government's slow-motion bank robbery by inflation

 

Surge in cost of food and fuel pushes inflation above forecasts

 

 

 

 

Millions of savers need 6pc interest to beat inflation

[interestrateripoff]

18 January 2011 Last updated at 20:41

 

UK inflation rate rises to 3.7%

 

UK inflation jumped to 3.7% in December, its highest rate for eight months, increasing pressure for an interest rate rise.

 

• Flanders: Inflation conundrum
  
• Q&A: What is inflation?
  
• Who is hardest hit by inflation?
  
• Calculate your inflation rate
  
• Will pay catch up with prices?
  
• Road haulier feeling the fuel pinch Watch
  

 

Barclays' £60m compensation bill

 

Barclays is told to pay millions of pounds in compensation after giving people poor advice about investing their retirement savings.

 

• Dangers of advice from your bank
  

 

 

Apple shares drop on Jobs' health

 

Shares in technology giant Apple fall as much as 6% in New York trading after boss Steve Jobs takes indefinite medical leave.

 

• Profile: Apple's Steve Jobs
  
• Profile: Apple's Tim Cook
  
• Shock over Steve Jobs' leave
  
• Apple boss takes 'medical leave'
  

 

 

 

• TV giant looms with NBC clearance New
   
  A new television powerhouse looks set to be created after US regulators clear Comcast's proposed $13.8bn takeover of NBC Universal.
  
• Boeing postpones Dreamliner again
   
  Boeing postpones the delivery date for the first of its new 787 Dreamliners again, this time until the third quarter of 2011.
  
• Citigroup profits below forecasts
   
  Citigroup reports a $1.3bn fourth quarter profit, but its shares fall on disappointment that the results are not better.
  
• Russian bank staff investigated
  
• Snow 'caused slow housing market'
  
• Strong rise in Burberry's sales
  
• China lends more than World Bank
  
• Banks 'must be allowed to fail'
  
• Euro up despite rescue fund delay
  
• Bank pay too high, says RBS boss
  
• Shuttle demand boosts Eurotunnel
  
• Plans for minimum alcohol pricing
  
• China attracts record investment
  
• Facebook share plan hits trouble
  

 

Risky business

 

Outlook for HMV worsens as suppliers struggle to get insurance

 

The HMV is a dead business model, not bought anything from them for years. Why pay £10 for an old album when you can probably pick it up for 1p + shipping at Amazon? On cost HMV can't compete with Amazon very big and large warehouses are far cheaper than hundreds of high street shops.

[interestrateripoff]

Citigroup Posts First Annual Profit Since 2007

 

By BEN PROTESS 1:58 PM ET

 

The bank, which posted its first profitable year since Vikram S. Pandit became chief executive, reported annual earnings of $10.6 billion, compared with a $1.6 billion loss in 2009. But it disappointed for the quarter.

 

• DealBook: Comerica to Buy Sterling Bancshares for $1 Billion
  

Mario Tama/Getty Images

 

Vikram Pandit, chief executive of Citigroup.

 

 

 

Jobs’s Departure Overshadows Apple Earnings Report

 

By CHRISTINE HAUSER 45 minutes ago

 

Apple’s shares showed some resilience after an announcement by the chief executive, Steven P. Jobs, that he was taking a medical leave of absence.

 

• Boeing Helps Give Dow a Push Higher
  

 

A Deep Bench of Leadership at Apple

 

By MIGUEL HELFT and CLAIRE CAIN MILLER

 

A decision by Steven P. Jobs, the chief executive, to take leave puts a spotlight on several executives, in particular Timothy D. Cook, who will take over day-to-day operations.

 

Bits Blog

 

Two Arrested in iPad Security Breach

 

By NICK BILTON

 

The United States Attorney's Office in Newark filed charges against two men who accessed 114,000 e-mail addresses of iPad owners through AT&T's Web site.

 

Media Decoder Blog

 

U.S. Approves Comcast-NBC Deal

 

By BRIAN STELTER and TIM ARANGO 12 minutes ago

 

The U.S. government approved a proposed combination, smoothing the way for the deal to close this month.

 

Europeans Vow to Get Tough on Bankers Pay

 

By STEPHEN CASTLE 1:40 PM ET

 

Finance ministers also promised that new banking stress tests would be stricter than the ones conducted last year that failed to restore market confidence in the euro.

 

Boeing Again Delays Delivery of 787 Dreamliner

 

By CHRISTOPHER DREW 2:29 PM ET

 

The third-quarter delivery date reflected the impact of the November fire and the time required to install new software and new electrical panels.

 

Delta Warns That Higher Fuel Costs Could Erase Gains

 

By JAD MOUAWAD 2:25 PM ET

 

The airline reported a profit for the fourth quarter, but earnings fell short of analysts’ expectations.

 

Media Decoder Blog

 

Regis Philbin to Leave His Show

 

By BILL CARTER 11:31 AM ET

 

Regis Philbin told viewers Tuesday morning that he will step down as co-host of "Live with Regis and Kelly" sometime later this year.

 

Executive Suspended for Criticizing European Satellite

 

By KEVIN J. O'BRIEN 2:50 PM ET

 

The chief executive of a Germany satellite company told U.S. diplomats that Europe’s Galileo satellite project was redundant, according to cables.

 

French Minister Dismisses Chinese Role in Renault Spying Case

 

By MATTHEW SALTMARSH and DAVID JOLLY 2:35 PM ET

 

The French finance minister said that speculation about a Chinese link to the spying case at Renault was unfounded.

 

Nike Tries to Salvage Sponsorship of French Soccer Team

 

By ERIC PFANNER 1:40 PM ET

 

A new uniform is the centerpiece of an investment made by Nike just before the team’s fortunes went south.

[interestrateripoff]

And.... It's All QE

If you're wondering what happens if The Fed abandons QE2, the following should put it in stark relief:

Monthly net TIC flows were $39.0 billion. Of this, net foreign private flows were $79.8 billion, and net foreign official flows were negative $40.8 billion.

Yuck.

Here's the problem - this entire ramp job is nothing other than monetization. And while this feels "real good", the question is always sustainability.

Anyone who believes that The Fed will be able to continue to monetize forever, and that prices will thus rise forever, and will not decline back to their actual risk-adjusted return and price once that buying stops, either by choice or force..... well..... you're rather deluded.

Foreign governments have got it figured out, and they're slowly slinking through the door, hoping you don't notice.

Who's the sucker again?

 

The perpetual expansion of the economy will never end..... I mean what could possible go wrong with this plan.

[interestrateripoff]

http://www.nytimes.com/2011/01/19/business/19place.html?_r=1&ref=business

 

The nation’s banks are posting runaway profits for 2010, in a drastic reversal from 2009, when the prospect of widespread loan defaults forced them to set aside billions of dollars to cover losses.

 

The banks now say they set aside more money than they needed, and so they are withdrawing large sums from loss reserves. A big chunk of the newfound earnings, nearly a third, comes from those withdrawals.

 

So bank earnings since the peak of the financial crisis in 2008 have been exaggerated to a large degree, in both directions, by the shuffling of money into and out of reserves.

 

A more reliable gauge of the banks’ health, then, would be not the bottom line of the income statement but rather the top-line revenue, which is not affected by rainy-day reserves.

Here, the picture is less rosy. Industrywide, revenues are off 17 percent from their peak in 2007, and the latest figures are flat or declining.

 

“This decade for U.S. banks will show the worst revenue growth since the decade of the Great Depression,” said Michael Mayo, a longtime banking industry analyst. “It’s a real issue for long-term investors.”

 

On Tuesday, Citigroup announced earnings of $10.6 billion for 2010, its first full-year profit since the start of the financial crisis. This came only a month after the federal government sold off the last part of its nearly one-third stake in the company, acquired during the bailouts.

 

But revenue fell by more than 5 percent from the prior year, to $86.6 billion, hurt by weak trading results and lackluster performance in its domestic consumer lending operations.

 

Even JPMorgan Chase, which bucked the trend in banking by remaining relatively healthy throughout the crisis, is straining to move the revenue needle. On Friday, it posted a $17.4 billion profit for 2010, helped by a large withdrawal of money it had set aside to cover bad credit card loans and mortgages. Still, its revenue dipped more than 3 percent, to $104.8 billion.

 

New questions about the industry’s growth prospects will surely come this week, when Bank of America, Goldman Sachs and Wells Fargo release their year-end results.

 

All told, the banking industry’s profits rose to about $70 billion in 2010, with about $20 billion coming from the release of loss reserves, according to estimates by Foresight Analytics, a research firm. That is nearly a sevenfold increase in net income. Revenue, on the other hand, is down about 1 percent, to about $790 billion.

 

The challenges are formidable. New regulations, particularly those governing derivatives and credit cards, are only starting to cut into revenue. And unemployment remains historically high. Although bankers report a modest pickup in requests for credit, it is hard to see a surge in new lending so long as a large portion of the work force remains on the sidelines.

 

What’s more, the lucrative margins that made Wall Street trading businesses such profit engines in the immediate aftermath of the crisis are starting to narrow as corporations and investors return to the markets and demand lower fees. So are the fat returns that banks made off their own investments, as they snap up securities with lower rates.

 

Still I'm sure the recovery will boost earnings and revenue!!!

 

The future looks rosy, so all of these earnings are one off's? When they've finished fudging the accounts what will the next trick be? Once your reserves have gone your just asking for trouble. Can we assume our own banks are doing the same?

[interestrateripoff]

Breaking news

 

• EU locks carbon market after security breach - Reuters
  
• Hedge fund industry assets swell to $1.92 trillion - Reuters
  
• Italy's Ferrero loses Ukraine chocolate battle - Reuters
  
• Italy's Ferrero loses Ukraine chocolate battle - Reuters
  
• US STOCKS SNAPSHOT-S&P 500 falls 1 percent - Reuters
  
• Brent above $98 on N.Sea supplies, US crude down - Reuters
  
• Latin America FX intervention may be here to stay - Reuters
  
• Libya's LAP buys stake in Niger's Sonitel - Reuters
  
• Italy antitrust looks at Intesa's Monte Parma buy - Reuters
  

 

 

 

• Youth unemployment hits record high
   
  Total number of adults under 25 who are out of work moved close to the million mark in the three months to November, rising by 32,000 to 951,000
  451 comments
  
  • UK unemployment inches below 2.5m
    
  • IPPR warns of jobless 'double dip'
    
  • Brown warns of global youth unemployment epidemic
    
  • Interactive: UK unemployment since 1984
    
  • Youth unemployment: who's to blame?
    
  • Unemployment: What the experts say
    
  • Video: Youth unemployment in Leeds
    
  • Unemployment benefit claimants by constituency
    

  [*] BP defends Russian oil deal

   

  BP chief executive Bob Dudley and foreign minister Lord Howell hit back at criticism of Rosneft tie-up

  [*] Oliver serves up profits for Pearson

   

  Jamie Oliver is helping Financial Times publisher Pearson to serve up record profits following the success of the celebrity chef's Jamie's 30-Minute Meals

  [*] HMV shares hit new low

   

  HMV shares tumbled to their lowest ever levelafter it emerged that some of the high street chain's key suppliers are now unable to obtain credit insurance

  19 comments

  • Comet owner blames snow for profit warning
    
  • HMV suppliers denied credit insurance
    
  • Burberry sales jump as China booms
    
  • Interactive: retail winners and losers
    

 

 

• Goldman Sachs bankers to receive $15.3bn in pay and bonuses
   
  Bank makes no public show of pay restraint as overall pay pot increases in size relative to revenues
  276 comments
  
  • Goldman Sachs results day: as it happened
    
  • Citigroup returns to profit
    
  • Andrew Clark: Self-regulation of bonuses won't work
    
  • Anger as JP Morgan bankers get $10bn
    
  • More on bank bonuses
    

  [*] National Audit Office to investigate UK tax deals with multinationals

   

  Scrutiny follows furore surrounding Vodafone's £1.2bn settlement with the taxman

  [*] More business news

  [*] Inflation surge piles pressure on Bank

   

  • Rate rise could wreck recovery, economists warn
    
  • Larry Elliott: We expected bad, but not this bad
    
  • Datablog: UK inflation since 1948
    
  • Inflation: what the experts say
    
  • Interactive: Inflation in the UK
    
  • Q&A: How to beat the rise in inflation
    

  [*] Barclays fined £7.7m over investment advice

[interestrateripoff]

Goldman defies public fury with another £10bn bonus payout

 

 

Stephen Foley: Investment bank to reveal new round of bumper bonus payouts that is expected to average around £280,000 per person.

 

• Goldman Sachs rewards staff with £9.6bn
  
• Inflation soars as commodity price surge hits the high street
  
• Domino's Pizza lines up Lance Batchelor as next chief executive
  
• Energy giants' profits continue to soar
  
• Barclays faces huge fine over investment sales
  
• '$100 oil is threatening economic recovery,' says IEA
  
• Citigroup misses targets as trading revenues slide
  

 

David Prosser: Why are Britons crosser about bankers' bonuses than anyone else?

 

 

Outlook So here we go again. There is something about Goldman Sachs that winds people up the wrong way. So while Goldman is an American bank that has had no direct support from the British taxpayer, there will no doubt be a hue and a cry when it today unveils its compensation figures, including, as they will, some generous rewards for London-based staff.

 

 

• David Prosser: The inflation outlook has not changed
  
• David Prosser: Apple owes it to investors to tell them more about the boss's health
  
• Stephen Foley: Dimon's gripes reveal reform is still being resisted by the banks
  
• Stephen Foley: So, what 'should we' make of Goldmans?
  
• David Prosser: Do the credit rating agencies dare hold the US to account?
  

 

2011: The year of the takeover?

 

Merger mania has gripped the City again, with nearly £2bn worth of deals unveiled in just a fortnight

 

 

• Cadbury deal turns sour for Green & Black's
  
• The Business On: Andy Hornby, chief executive, Alliance Boots
  
• Polar pioneers: Is arctic oil the final frontier?
  
• Henderson throws golden bonus net over Gartmore's new stars
  
• Energy giants desperate to come in from the cold
  

[interestrateripoff]

FTSE falls on profit taking, retail woes

 

LONDON (Reuters) - The top shares fell on Wednesday, dragged down by banks and miners, while sentiment in the retail sector was dented by a profit warning from Kesa and worries about the long-term future of HMV .

Continue Reading

 

 

 

IMF stress tests come early for UK, German banks

 

LONDON/STOCKHOLM (Reuters) - A team from the International Monetary Fund will ask Britain's biggest banks for detailed information this week as it assesses the health of lenders in five European countries.

5:24pm GMT

 

Goldman profit slides as bond trading wilts

 

NEW YORK (Reuters) - Goldman Sachs Group Inc posted a 53 percent decline in fourth-quarter profit as trading revenue tumbled, dashing hopes that the Wall Street bank had bucked a tough market climate that hurt its rivals. | Video

5:33pm GMT

 

Germany lifts 2011 growth forecast to 2.3 percent

 

BERLIN (Reuters) - Germany raised its 2011 growth forecast by half a percentage point to 2.3 percent on Wednesday, predicting the recovery in Europe's powerhouse will broaden and that previously sluggish domestic demand will pick up. | Video

5:35pm GMT

 

Citi names John Havens president and COO

 

NEW YORK (Reuters) - Citigroup Inc named investment bank chief John Havens president and chief operating officer on Wednesday, expanding its most senior level of executives and elevating a long-time friend of Chief Executive Officer Vikram Pandit.

3:00pm GMT

 

Assura to spend 46 million pounds in acquisitions

 

BANGALORE (Reuters) - Assura Group , which owns and invests in primary care centres across UK, is all set to give a boost to its medical property portfolio by spending about 46 million pounds in acquisitions.

4:23pm GMT

 

T-bill auction comforts debt-laden Portugal, for now

 

LISBON (Reuters) - Prime Minister Jose Socrates' won breathing space in his fight to avoid a bailout for debt-laden Portugal on Wednesday with a successful treasury bill auction in which the country's borrowing costs fell.

6:52pm GMT

 

Obama presses China's Hu on currency, North Korea

 

WASHINGTON (Reuters) - U.S. President Barack Obama pressed Chinese President Hu Jintao on Wednesday to let the value of China's currency rise and sought cooperation in dealing with nuclear standoffs with North Korea and Iran. | Video

World, 7:38pm GMT

 

Italy's Ferrero loses Ukraine chocolate battle

 

MILAN (Reuters) - Italian chocolate maker Ferrero has lost a long-running trademark battle over its top-selling praline in Ukraine in a case that was closely watched for its implications for foreign investments in the country.

8:01pm GMT

 

Euro zone growth shows scant sign of picking up - Reuters Poll

 

LONDON (Reuters) - The euro zone's motley collection of economic leaders and losers are unlikely to muster anything more than grinding, unspectacular growth over the coming two years, a Reuters poll of economists showed on Wednesday.

[interestrateripoff]

19 January 2011 Last updated at 20:06

 

UK unemployment increases again

 

UK unemployment rose by 49,000 to almost 2.5 million in the three months to the end of November, the Office for National Statistics says.

 

• Councils axe a further 2,200 jobs
  
• Jobless rate 'will grow' in 2011
  
• How to cope with unemployment
  
• Job hunt 'getting tougher'
  

 

Jobcentre workers set to strike New

 

Thousands of workers at Jobcentre Plus call centres across the UK are set to begin a 48-hour walkout in a row over working conditions.

 

• How to cope with unemployment
  
• Claiming benefits: your questions answered
  

 

 

Wikileaks banker is found guilty

 

A former Swiss banker who said he gave Wikileaks details of rich tax evaders has been found guilty of breaching Switzerland's strict bank secrecy laws.

 

 

 

• US housebuilding faltered in 2010
   
  The number of new homes being built in the US falls faster than expected, underlining concerns about the strength of America's economic recovery.
  
• China to buy 200 Boeing aircraft
   
  China and the US sign a trade deal that includes the $19bn purchase of 200 Boeing aircraft according to a US official.
  
• Apple shares increase on upgrades
   
  Apple receives vote of confidence as analysts raise their price target for the company's shares a day after it unveils record profits and revenues.
  
• Goldman Sachs profit down by half
  
• Act over prices, ministers urged
  
• HMV shares hit by insurance fears
  
• 'Inflation concern' for UK families
  
• RAC says green cars need support
  
• Indian micro finance 'to change'
  
• China's inflation rate 'at 4.6%'
  
• Germany raises growth forecast
  
• Women 'keener to seek debt help'
  
• Comet knocks Kesa Christmas sales
  
• Online bets boost William Hill
  
• Cargill to split off fertilisers
  
• China's Alibaba boosts deliveries
  

 

Inflation risks

 

The dilemma facing the Bank of England interest rate setters

[interestrateripoff]

Goldman Sachs pays out £9.6bn in compensation as profits slide

 

Goldman Sachs saw profits tumble by more than half in the final three months of 2010, but the investment bank had a strong enough year to reward staff with £9.6bn in pay and bonuses.

Disappointing 2010 results at Goldman Sachs are not a cause for celebration

 

 

 

 

Youth unemployment rises to record levels

 

Total jobless figure shoots up by 49,000 to 2.5m in latest sign that private sector is struggling to offset public sector cuts.

Let's make sure we fill the job vacancies we have now

 

 

Number of older people forced out of work reaches record high

 

 

 

UK facing £1bn fines over use of EU money

 

The UK could be hit with up to £1bn in fines over the way it uses EU money, and roughly £398m of 'financial corrections' has already been imposed by the European Commission.

 

UK police investigate Russian fraud at EBRD

 

British police are investigating charges of corruption and fraud against the Russian representative on the powerful European Bank for Reconstruction & Development.

 

World's most expensive apartments open

 

The world’s most expensive residential apartments at One Hyde Park have been officially unveiled today by the colourful property duo, the Candy brothers.

One Hyde Park: what do you get for £140m?

 

 

Profile: the Candy Brothers

 

 

 

EU carbon market suspended over fraud fears

 

The European carbon market has been thrown into turmoil after the scandal-hit scheme was suspended for a week.

 

Sacked energy trader sues BP

 

 

 

 

'Lack of supply not to blame for $99 oil'

 

 

 

 

Boeing delays Dreamliner for seventh time

 

 

 

 

JD Wetherspoon customers keep drinking through the snow

 

 

IMF stress test on UK

 

 

Latest news on: UK jobs, Retailers, Stress tests, BA

Market Report today

 

 

Number of older people forced out of work reaches record high

 

 

 

Record number of people forced to work part-time

 

Has the Bank of England gone soft on inflation?

 

 

Inside One Hyde Park

 

 

The £650 million One Hyde Park development – the most expensive in London's history – has been unveiled for the first time.

[interestrateripoff]

At Goldman, Quarterly Profit Drops 53%

 

By SUSANNE CRAIG 11:09 AM ET

 

Goldman Sachs experienced a slowdown in many divisions, and quarterly earnings fell 53 percent, to $2.39 billion, or $3.79 a share.

Jemal Countess/Getty Images For Time Inc.

 

 

 

 

DealBook

 

Study Points to Windfall for Goldman Partners

 

By SUSANNE CRAIG and ERIC DASH

 

Regulatory filings show the extent to which Goldman Sachs concentrates power and money among its 475 partners.

 

• Video: The Golden Ticket
  
• Post a Comment
  
• .refer .inlinePlayer .refer { font-size: 1em; } Back Story With The Times's Susanne Craig
   
  

 

DealBook

 

Wells Fargo Fourth-Quarter Profit Rises 21%

 

By BEN PROTESS

 

An improving loan portfolio bolstered the results at the big consumer bank.

 

Wall Street Weighed Down by Bank Earnings

 

By THE ASSOCIATED PRESS 38 minutes ago

 

Goldman Sachs reported a drop in profit and American Express announced job cuts. Investors are also closely following Apple and I.B.M. shares.

 

• U.S. Housing Starts Slowed Sharply in December
  
• American Express to Cut 550 Jobs and Close Some Service Centers
  

 

U.S. Shifts Focus to Press China for Market Access

 

By HELENE COOPER and MARK LANDLER

 

American companies concerned with being beat by China-backed businesses have given President Obama support to pursue a tough approach with President Hu Jintao.

 

• Economix: Software Piracy in China
  
• Diplomatic Dangers Lurk in State Dinner for Chinese Leader
  
• Taiwan Tests Missiles; Results Mixed
  
• City Room: China's Publicity Videos Arrive in Times Square
  
• Times Topics: Hu Jintao
  

 

DealBook

 

Chiesi Pleads Guilty in Galleon Insider Trading Case

 

By PETER LATTMAN 27 minutes ago

 

The plea comes just weeks before the trial of Raj Rajaratnam, the founder of the Galleon Group hedge fund.

 

Bits Blog

 

Pay by Phone at Starbucks

 

By CLAIRE CAIN MILLER

 

Starbucks announced Wednesday that customers can pay by using a smartphone application instead of cash or a credit card.

 

Greece Debt Buyback Has Its Supporters

 

By JACK EWING 9:55 AM ET

 

Greece and Germany denied that such a plan existed, but analysts supported the idea of Greece buying back its bonds on the open market.

 

France Seeks More Open Commodity Markets Among G-20

 

By MATTHEW SALTMARSH 2:15 PM ET

 

Paris hopes to use its presidency of the Group of 20 nations to place better regulation of food and energy markets on the agenda.

[interestrateripoff]

http://www.bloomberg.com/news/2011-01-18/jpmorgan-s-emc-mortgage-sued-over-mortgage-loan-documents.html

 

JPMorgan Chase & Co.’s EMC Mortgage, facing homeowner lawsuits over foreclosures, was sued by the trustee of a mortgage portfolio for refusing to turn over documents detailing the quality of loans bought by the trust.

 

Wells Fargo & Co., the trustee, is seeking access to files for more than 2,000 underlying mortgages in the Bear Stearns Mortgage Funding Trust 2007-AR2, according to the complaint filed today in Delaware Chancery Court in Wilmington.

 

“The trustee has repeatedly requested that EMC provide access to the subject documents,” Wells Fargo said in the complaint. “EMC has played proverbial ‘rope a dope’ and otherwise continued to drag its feet, and has produced nothing.”

 

.......

In a September interview, Grais said he was also working with two hedge funds that hadn’t filed suits and had contacted trustees with similar complaints. He wouldn’t name the funds.

 

In the Aug. 31, 2010, letter to San Francisco-based Wells Fargo, Grais said he had investigated 1,317 of the loans held by the trust and determined that EMC appeared to have violated its representations with respect to 938 loans, according to the complaint.

 

Grais didn’t immediately return a phone call today seeking comment on the complaint.

 

400 Loans

 

Wells Fargo began requesting the documents in January last year and reached an agreement with EMC in December on access to files for 400 loans. EMC had until Jan. 12 to produce documents on the first 100 loans, according to the complaint.

 

Looks like the legal games in the US are hotting up, the banks will soon be suing each other over this mess.

 

Everyone has worthless bits of paper and the Fed is just printing it.

[interestrateripoff]

"Run The Clock" Runs Out

Well well well.... what do we have here?

JPMorgan Chase & Co.’s EMC Mortgage, facing homeowner lawsuits over foreclosures, was sued by the trustee of a mortgage portfolio for refusing to turn over documents detailing the quality of loans bought by the trust.

Who sued them? Wells Fargo!

The issue is that EMC is refusing to turn over loan files.

Wait a second.... where's EMC's role in this?

We're gonna have problems here I think. Shouldn't Wells have these documents already? Probably - unless they had a custodial agreement with EMC. And if they did, what's EMC's excuse? They don't have one in that instance - they're an agent of Wells, not a principal, which means that Wells is odds-on to have never received what was supposed to be transferred to them.

What else didn't they receive?

Like, for instance, conveyance of the notes themselves?

In the Aug. 31, 2010, letter to San Francisco-based Wells Fargo, Grais said he had investigated 1,317 of the loans held by the trust and determined that EMC appeared to have violated its representations with respect to 938 loans, according to the complaint.

That's a large percentage. Gee, you think that might have been standard practice to sell trash into these trusts? After all, we have Citi's former chief underwriter who testified to this under oath - why would it be different with this case?

As I have said since the beginning - the wheels of justice turn slowly, but they do turn.

And this year, I suspect, is the year when the flood gates break - if for no other reason than Statutes of Limitations are going to be coming up and it's either going to be "sue or shut up" time.

I think we're see lots of "sue"s, and once a few of these get cranking, and discovery gets going, the sharks are going to smell that first taste of blood.....

In fact, they may have already.

 

Dennigers take on the above.

[interestrateripoff]

http://www.theaustralian.com.au/business/chinese-bank-scams-vindicate-local-claims/story-e6frg8zx-1225989865717

 

They appear similar to a rort that undermined an Australian company's attempts to set up an extensive clean energy business there.

 

Until now the company, wind energy firm Energreen, has found it difficult to convince its Australian partners, regulatory agencies, diplomatic authorities and the Chinese police that it was the victim of criminal duplicity.

But now, three years later, it has become clearer that the [problem] that entrapped Energreen was just the tip of an iceberg of phony Chinese funding arrangements worth billions of dollars.

 

Energreen part-owner Alan Keller, a building engineer based in the NSW Hunter Valley, told The Australian last year that the company had contracts to provide expertise and management on Chinese projects worth about $2 billion.

 

The company is embroiled in a complex legal case over the issue, with veteran barrister Tom Hughes now leading the Bank of China's defence against Energreen's claim over a $US50 million ($50.6m) promissory note.

 

Today, Qilu Bank is being investigated over a scandal allegedly involving $227m of forged commercial bank bills, used to provide short-term loans to business, and other forged commercial paper.

 

The lender, which is 20 per cent owned by Australia's Commonwealth Bank, is based in Jinan, the capital of Shandong province, in northeast China.

 

Other banks in Shandong, including Huaxia and Citic, are also being investigated, with charges likely to follow, according to Beijing News.

 

China Business News said auditor PwC found irregularities in Qilu Bank's 2009 financial report, including abnormal credit for some lenders and illegal deposit pledges.

 

Fantastic news for the global banking system, the whole edifice is rotten to the core, if this is true I think it's fair to assume this is common practice across the whole of China.

 

The parasitical bankers are bleeding everyone dry.

 

Banking is fraud, I believe someone once said.