Author: Admin

Saturday, April 17, 2010

US bank Goldman Sachs has been accused of fraud by the American regulator Securities and Exchange Commission (SEC).

According to the SEC, Goldman Sachs failed to inform investors of a conflict of interest in the banks’ marketing of sub-prime mortgage investments, which were being sold at a time of uncertainty in the US housing market. The SEC says that a Goldman subsidiary, Paulson & Co., had been involved in the selection of securities included in the mortgage investments. It had not been disclosed to investors that Paulson had bet that the value of the investments would fall, benefiting Paulson but not those who bought the investments.

The securities, which were combined into a package called Abacus that was sold to investors, lost over $1 billion during the collapse of the US housing industry. According to the SEC, Goldman, Paulson, and the creator of Abacus, a vice-president of Goldman Sachs named Fabrice Tourre, all knew that the housing market was going to collapse, but continued to sell Abacus despite the risks.

Tourre had been in command of selecting the investments within Abacus, and then was the person responsible for selling it to investors. He had told those who invested in Abacus that its components had been selected by an independent party, ACA Management.

In all, 99% of the investments within Abacus were downgraded, and investors lost upwards of a billion US dollars.

The SEC alleged that “Goldman Sachs arranged a transaction at Paulson’s request in which Paulson heavily influenced the selection of the portfolio to suit its economic interests.” In a short response from Goldman, the bank said that “The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.”

Sunday, December 12, 2010

In diplomatic cables released by the whistle blowing website Wikileaks on Friday, it is revealed that the United States embassy in Rangoon suspects the North Korean and Burmese military are participating in “covert military or military-industrial” activities. In the cables dating back as early as January 2004, the embassy reports the military activities could include the construction of a nuclear reactor in or near Minbu, along with “SAM missiles” and an underground facility with as many as 300 North Korean military personnel assisting the Burmese military in the construction. Burma is primarily controlled by its military.

In the January 2004 cable, a businessman reportedly told the U.S. embassy in Rangoon that “massive” barges were bringing in large pieces of equipment to Minbu from the Irawaddy River. He suggested that “the quantities involved as well as the diameter of the rebar suggested a project larger than ‘factories.'” In the same cable, the U.S. acknowledges that rumors of a nuclear reactor being constructed in the area date back to 2002, with suspected Russian involvement. “Rumors of ongoing construction of a nuclear reactor are surprisingly consistent and observations of activity such as that described [sic] appear to be increasing,” said Martinez, the reported cable author. According to a news report in March, The Irrawaddy claims Burma was close to completing at least three nuclear reactors. The country’s leadership claims the nuclear research that is taking place is to be used for peaceful purposes.

In August of the same year, the U.S embassy receives more information that North Korea military is assisting in the construction of “SAM missiles (surface to air missiles) of unknown origin” and an “underground, concrete reinforced” facility in Minbu. The construction allegedly includes buildings which would house at least “20 Burmese army battalions that will be posted near the site.” The correspondent again says that the report “tracks with other information Embassy Rangoon and others have reported in various channels.”

“This account is perhaps best considered alongside other information of various origins indicating the Burmese and North Koreans are up to something. Something of a covert military or military-industrial nature. Exactly what, and on what scale, remains to be determined,” said McMullen, the reported cable author. He also admits that the number of North Koreans thought to be assisting the Burmese military “is much higher than our best estimates of North Koreans in Burma.” According to the Agence France-Presse in 2002, citing an unnamed U.S State Department official, the U.S. warned Burma not to pursue a nuclear program saying that it expects Burma “to live up to its obligations [under the non-proliferation treaty] and to not pursue production of weapons grade fissile material.” However a 2008 cable says that Burma may already be in possession of weapons grade uranium. The cable reports that a civilian tried to sell 2,000 kilograms of uranium-238 which “could be dug up” from the ground at a site in Kayah State. Uranium-238 could be used in the construction of nuclear weapons.

“A Burmese civilian met with members of USDAO [United States Defense Attaché Office] Rangoon and offered to sell Uranium-238. The individual had initially contacted the USDAO eight days prior with the offer. The individual provided a small bottle half-filled with metallic powder and a photocopied certificate of testing from a Chinese university dated 1992 as verification of the radioactive nature of the powder,” said the cable. “The individual claimed to be able to provide up to 2000 kg of uranium-bearing rock from a location in Kayah State, and further stated if the U.S. was not interested in purchasing the uranium, he and his associates would try to sell it to other countries, beginning with Thailand,” it added. The cable adds that the Burmese government was unaware that such a transaction was taking place and that they “would likely seize any additional samples or stocks of the material if aware of their existence.” However, a cable in January of 2007 says that the Burmese military may have received a shipment of uranium at the end of that month. The “sensitive shipment” was said to have come from Singapore via shipping freighter.

“[An unnamed witness] claimed that metals are usually exported in blocks, whereas the bags in this shipment were filled with loose earth and mud. The source of the mixed ore, Maw Chi, is also a source for uranium, they claimed. Security was tighter than usual, surveillance was heavier, and officials paid closer attention to the movement of the shipment and activity at the port,” said the cable. The cable author, ‘Villarosa,’ later states that the embassy in Rangoon was given allegedly detailed information on the shipping methods, weight and cost. No further cables have yet to be released on the matter.

Tuesday, October 14, 2008

The San Diego, California suburb of Chula Vista has responded to the recent housing crisis with an aggressive blight control ordinance that compels lenders to maintain the appearance of vacant homes. As foreclosures increase both locally and throughout the United States, the one year old ordinance has become a model for other cities overwhelmed by the problem of abandoned homes that decay into neighborhood eyesores.

Chula Vista city code enforcement manager Doug Leeper told the San Diego Union Tribune that over 300 jurisdictions have contacted his office during the past year with inquiries about the city’s tough local ordinance. Coral Springs, Florida, and California towns Stockton, Santee, Riverside County, and Murietta have all modeled recently enacted anti-blight measures after Chula Vista’s. On Wednesday, 8 October, the Escondido City Council also voted to tighten local measures making lenders more accountable for maintenance of empty homes.

Under the Chula Vista ordinance lenders become legally responsible for upkeep as soon as a notice of mortgage default gets filed on a vacant dwelling, before actual ownership of the dwelling returns to the lender. Leeper regards that as “the cutting-edge part of our ordinance”. Chula Vista also requires prompt registration of vacant homes and applies stiff fines as high as US$1000 per day for failure to maintain a property. Since foreclosed properties are subject to frequent resale between mortgage brokers, city officials enforce the fines by sending notices to every name on title documents and placing a lien on the property, which prevents further resale until outstanding fines have been paid. In the year since the ordinance went into effect the city has applied $850,000 in fines and penalties, of which it has collected $200,000 to date. The city has collected an additional $77,000 in registration fees on vacant homes.

Jolie Houston, an attorney in San Jose, believes “Lenders will respond when it costs them less to maintain the property than to ignore local agency requirements.” Traditionally, local governments have resorted to addressing blight problems on abandoned properties with public funds, mowing overgrown lawns and performing other vital functions, then seeking repayment afterward. Chula Vista has moved that responsibility to an upfront obligation upon lenders.

As one of the fastest growing cities in the United States during recent years, Chula Vista saw 22.6% growth between 2000 and 2006, which brought the city’s population from 173,556 in the 2000 census to an estimated 212,756, according to the U.S. Census Bureau. Chula Vista placed among the nation’s 20 fastest growing cities in 2004. A large proportion of local homes were purchased during the recent housing boom using creative financing options that purchasers did not understand were beyond their means. Average home prices in San Diego County declined by 25% in the last year, which is the steepest drop on record. Many homeowners in the region currently owe more than their homes are worth and confront rising balloon payment mortgages that they had expected to afford by refinancing new equity that either vanished or never materialized. In August 2008, Chula Vista’s eastern 91913 zip code had the highest home mortgage default rate in the county with 154 filings and 94 foreclosures, an increase of 154% over one year previously. Regionally, the county saw 1,979 foreclosures in August.

Professionals from the real estate and mortgage industries object to Chula Vista’s response to the crisis for the additional burdens it places on their struggling finances. Said San Diego real estate agent Marc Carpenter, “that kind of measure will add additional costs to banks that have been hit really hard already and ultimately the cost will be transferred down to consumers and investors.” Yet city councils in many communities have been under pressure to do something about increasing numbers of vacant properties. Concentrations of abandoned and neglected homes can attract vandals who hasten the decline of struggling neighborhoods. Jolie Houston explained that city officials “can’t fix the lending problem, but they can try to prevent neighborhoods from becoming blighted.”

CEO Robert Klein of Safeguard, a property management firm, told the Union Tribune that his industry is having difficulty adapting to the rapidly changing local ordinances. “Every day we discover a new ordinance coming out of somewhere”, he complained. Dustin Hobbs, a spokesman from the California Association of Mortgage Bankers agreed that uneven local ordinances are likely to increase the costs of lending. Hobbs advised that local legislation is unnecessary due to California State Senate Bill 1137, which was recently approved to address blight. Yet according to Houston, the statewide measure falls short because it fails to address upkeep needs during the months between the time when foreclosure begins and when the lender takes title.

Thursday, July 3, 2014

Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.

Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).

Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.

In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”

An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.

Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.

Wednesday, September 7, 2005

The US state of Massachusetts is turning a portion of Camp Edwards, an active Cape Cod military base, into a “village” for 2,500 evacuees of Hurricane Katrina, as part of Operation Helping Hand.

The temporary shelter on the Massachusetts Military Reservation will have a population the size of Truro, Massachusetts and will include an active mayor and a system of government that will be like a town council

However, the shelter will face security demands different from the fifteen Cape towns because Cape Edwards is an active base used for training exercises. Security will be overseen by the Massachusetts National Guard, with help from the Massachusetts State Police and the County Sheriff’s office. Massachusetts Governor Mitt Romney stressed that he wanted to give it a comfortable, non-hostile atmosphere.

Upon touching down at Otis Air National Guard Base, Massport officials will issue identification cards, create case files for them and ask the evacuees to provide personal information which will go into to a database to be shared with other states that are taking evacuees.

The agencies that will be on hand are, the Massachusetts Emergency Management Agency, the American Red Cross and the Salvation Army. These agencies will coordinate volunteers, who must commit themselves to five days of volunteer efforts, and they must be able to transport themselves to the camp. Romney has asked for donations from the community.

Evacuees will be assigned housing by groups. There could be barracks for single men, another for single women, and then space for elderly and families with children. Visitors will not be allowed.

The school superintendent for the township of Bourne, Ed LaFleur, will work on enrolling the children of evacuees into Cape Cod schools. Romney met yesterday with leaders of the Blake Churches Alliance who will make available chaplains and counselors for the evacuees.

Romney spent Monday night asking for the State House to pass a $25 million emergency spending bill to pay the initial costs of the facility.

The arrival time of the evacuees has been postponed, for unknown reasons.

Saturday, October 1, 2011

Last week, Nature Genetics carried twin studies into the genetics of bipolar disorder and schizophrenia. This special report examines the month’s research into the illnesses in detail, with Wikinews obtaining comment from experts based in Australia, the United States, and the United Kingdom ahead of the U.S. Mental Illness Awareness Week, which starts tomorrow.

Eleven genetic regions were identified; seven of these were for schizophrenia and five of those were hitherto undiscovered. The parallel studies, conducted separately, examined more than 50,000 people worldwide and identified two genetic loci associated with both diseases.

Little is known about the two illnesses, each of which affects around 1% of people and is treated with strong medication. Bipolar sufferers experience extremes of mood – depression and mania, hence the previous name “manic depression” for the illness. Schizophrenia is associated with hearing voices, chaotic thoughts, and paranoia. There is no known cure.

The latest research examined both the healthy and the afflicted, using computers to scan genomes. Inheritance was thought to be a factor from prior knowledge of the diseases as a familial trait, but the original desire had been to isolate a single faulty gene. Instead it has become apparent that the genetic factors are many; in the case of schizophrenia, at most around 30% of the genetic components are thought to have been identified.

The University of Chicago’s Pablo Gejman, a lead researcher on the schizophrenia study, explained to Wikinews in a telephone interview from Buenos Aires, Argentina that “One of the goals of genetic research is to find druggable targets” – to “find treatments at the root of the problem”.

Whilst noting that there is no guarantee the genetic code identified is druggable, Gejman named calcium-activated neurochemical channels in the brain as candidates for new drugs. The channels were linked to schizophrenia in the study.

Gejman explained that a genetic locus called mir137 “suggests an abnormality of gene regulation.” The diseases are so poorly understood that it is uncertain if they are in fact two components of a single spectrum, or even each comprised of multiple illnesses.

The new and “provocative data” gathered showed the significant loci identified were “not part of the pre-existent hypothesis.” Calling this “interesting”, Gejman added that the team found no evidence that dopamine receptors are involved; current drug treatments target dopamine receptors. The findings are “not related to anything we thought we knew [about schizophrenia],” he told our correspondent.

Quizzed about the possibility variations in the genetic factors involved in expressing the diseases explained the variation seen in symptoms, Gejman was uncertain. “We will have the answer, probably, only when we sequence the whole [human] genome.” He notes that the relationship between genotype and phenotype is unclear, and that “We know very little of the genetic architecture of schizophrenia and” other disorders.At the time the results were published, participating scientist Professor Rodney Scott from the University of Newcastle in Australia said “The strength of this research is in the numbers. The findings are robust and give us a lot of statistical power to identify the genetic determinants of schizophrenia.” Scott told Wikinews that “If any single centre tried to undertake such a study, it would require millions of pounds. Since it was a collection of data from across the world the costs were spread. In this era of financial difficulty it will become increasingly difficult to secure funding for this type of project even though the pay-offs will be significant.”

Gejman expressed similar sentiment. “The research budget is not growing, which makes [funding] difficult,” he said, though he felt the cost “is not prohibitive because of the benefits.” “I think that it was money well invested” and “very well spent for the future,” he said, adding that organisations in Europe and the US were aware of the importance of such research.

Gejman also agreed on reliability – the study is “Very reliable because of the sample size; that should provide robust results… [we] have worked with a much larger sample than before.” Scott told us it was “a highly reliable study” that has the potential to lead to new treatments “in the long run”.

Another point was the two genetic loci identified as common to both – how much support do they lend to the notion the diseases are linked? “Until more information is available it is really only suggestive,” says Scott. “Strong enough to say there may be potentially a common pathway that bifurcates to give rise to two diseases.”

“It is an excellent demonstration,” said Gejman “because you have the same chains that are common to both disorders, in fact not just the same chains but also the same alleles.” He stressed uncertainty in how strong the relationship was, however.

Scott said examining how the variation of genetic factors may translate into varied symptoms being expressed “certainly is a good target for future research”; “It is not known how many genetic factors contribute to either of these diseases but it is likely that not all are necessary to trigger disease.” “New questions will always arise from any major study,” he told our reporter. “Certainly, new questions about bipolar and schizophrenia are now able to be formulated on the basis of the results presented in the two reports.”

These weren’t the only studies to look at the two diseases together in September. The British Medical Journal carried research by a team from the University of Oxford and King’s College London that examined mortality rates in England for schizophrenia and bipolar sufferers. They found both groups continued to suffer higher mortality rates than the general population – whilst these included suicides, three quarters of deaths were down to ailments such a s heart conditions. General death rates dropped from 1999 to 2006, but sufferers below 65 saw their death rate remain stable – and the over-65 saw theirs increase.

“By 2006, the excess risk in these groups had risk to twice the rate of the general population, whereas prior to that it had only been 1.6 times the risk, so it increased by almost 40%,” said Dr Uy Hoang of Oxford. The study looked at every discharged inpatient with a diagnosis of either condition in England in the relevant time.

Hoang said at the time of the research’s release that doctors should devote attention to predicting and preventing physical illness associated with mental disorders. His study comes at a time when the UK has launched a “no health without mental health” strategy which does attempt to screen for physical illnesses coinciding with mental illnesses. The government aims to reduce the death rate of those with mental disorders.

Rodney Scott described this research result to Wikinews as “Possibly” connected to genetic association with other hereditary ailments, such as cardiovascular disease; he told us another possibility is that “The continued raised mortality rates may be associated with the diseases themselves.”

“We believe the NHS [National Health Service] and Department of Health need to do more to support research and service development for people with bipolar disorder,” Wikinews was told by Suzanne Hudson, Chief Executive of London-based British charity MDF The Bipolar Organisation. “The provision of specialist services for bipolar is very limited in the UK and the demand for our services is unprecedented.”

“A genetic test for bipolar would be a useful tool but the science and ethics are very complex,” Hudson told us, referring to the Nature Genetics genetic study. “Just because someone has ‘bipolar genes’ does not mean they might go on to develop it. Family studies of bipolar show that this is a likely outcome of genetics research in this area. Even if it were possible to accurately predict bipolar in this way, questions about how you treat that person are difficult. For example do you start medication that is not necessary at that point in time?”

“Current treatment is not satisfactory” because it does not always work and has “side effects,” Gejman told us. Robert Whitaker, a US medical journalist and book author, told an audience in New Zealand at the end of August that evidence suggests antidepressant drugs may make children and teenagers worse – “You see many become worse and end up with a more severe diagnosis, like bipolar illness,” and the suicide risk may increase.

Whitaker blames commercial interests. “The adult market appeared saturated, and so they began eying children and teenagers. Prior to this, few children and youth were seen as suffering from major depression, and so few were prescribed anti-depressants.”

One possible alternative, raised by a connection between depressive illness and inflammation, is aspirin and similar compounds. “The link between inflammation and mood disorders has been known for sometime and the use of aspirin and other drugs in depression is now becoming more common in the literature,” Hudson says. “Any new treatments for bipolar, which is a very complex and co-morbid illness, has to be a good thing.”

Professor Dr. Michael Berk, chairman of psychiatry at Australia’s Deakin University, recently gave a talk to just this effect. Speaking at this year’s Congress of the European College of Neuropsychopharmacology, held this past month, he also highlighted statins as a treatment. Recognising the link to physical ailments, he told an interviewer “The brain does not exist in isolation, and we need to understand that pathways similar to those that underpin risks for cardiovascular disorders, stroke, and osteoporosis might also underpin the risk for psychiatric disorders, and that other treatments might be helpful.”

Berk also touched upon speed of diagnosis and treatment; “Early interventions can potentially improve the outcome” of bipolar sufferers, he told his audience. MDF The Bipolar Organisation claim an average of ten years is possible before a person is diagnosed. “This clearly is an issue, if we believe that earlier diagnosis and treatment facilitate better outcomes,” Berk told Wikinews. Though he questions the effectiveness of currently-used drugs on advanced bipolar cases, he does not go so far as to say drugs are actively harmful. He told us “it appears that our best treatments work best earlier in the illness course; and that seems to apply to psychotherapy and pharmacotherapy.”

Berk has already performed research using statins which suggests they can form a treatment. He now seeks funding for research involving aspirin. On funding, he tells Wikinews “psychiatric disorders comprise between 16% and 22% of the burden of disability (depending on who measures it), attracts^[sic] just over 6% of the clinical budget at least in Australia and 3% of the research budget. Research as a discretionary spending item is at great risk.”

Berk’s research, in the past, has been funded by companies including GlaxoSmithKline. Hudson told Wikinews this did not concern her charity; in fact, they welcomed it. “We believe it is important pharmaceutical companies continue to invest in the development of new medications for bipolar. This is how it works in all other health specialities and mental health should be no different.”

“There is a need for greater education for mental health professionals and GPs [general practitioners] about bipolar [in the UK],” she told us. “As the national bipolar charity we receive many, many calls and requests from GPs and other health professionals for our leaflets and information sheets which is fantastic. We very much welcome opportunities to work together for the benefit of individuals affected by bipolar.”

Wikinews contacted the UK’s National Institute for Clinical Excellence (NICE) to discuss issues raised in this article, including future treatments, genetic screening, and mortality rates. NICE did not respond.

Might statins and/or aspirin improve treatment – might they be cheaper, perhaps, or safer? “This is an area of research promise,” says Berk, “however it is too early to make any clinical treatment claims; [all] we can say is that this needs to be studied in properly designed trials capable of giving a more definitive answer.” And what of possible explanations for the increased mortality rate observed in England? Should researchers look at whether bipolar influences more than just the brain, or if it is linked to other genetic conditions?

“For sure,” he told us. “There is new evidence that similar pathways contribute to the risk for both medical and psychiatric illness, both in terms of lifestyle factors, and biomarkers of risk.”

Saturday, December 3, 2005

Mayor Scott Jewell of the city of Dyer, Tennessee did not issue a “stop work order” to Dyer Grain Company late Tuesday afternoon as had been expected. The order would have temporarily halted construction of new grain storage tanks.

Dyer Grain’s efforts at expansion have been blocked several times over the past few years both by zoning restrictions on the height of structures and by citizens groups who filed suit against the grain company and the city’s board of zoning appeals. The lawsuit was dismissed two months ago. The Dyer City Council then amended the zoning ordinance to include “grain storage tanks and bins” in a section of the ordinance listing exclusions, such as free standing spires and towers, to the regular 40 foot height restriction on buildings.

Several citizens spoke at the November 28 city council meeting to address alleged deficiencies in the building permit issued to Dyer Grain. The citizens claimed that according to the site plan filed with the application for the permit, the location of the tanks will violate another provision in the zoning ordinance restricting the height of all structures to the distance from surrounding property lines plus ten feet. The citizens were also concerned over a “grain conveyor” that will cross a city street. Mayor Jewell indicated that he would contact the Gibson County building inspector (who is contracted by the city to act as the municipal inspector) to research the citizens’ concerns.

Jewell contacted Ricky Bailey, Gibson County Building inspector, on Wednesday. Bailey reportedly could find no deficiencies with the permit and, based on this advice, Jewell chose not to issue the stop work order himself. The City Council could still meet and vote to issue the order. The council meets the second Monday of each month.

“The main problem is that the grain company is in an industrial zone — which is located smack in the middle of a low-density residential zone.” Nathan Reed, an elected Alderman of Dyer said, “The property values in the area have increased (with inflation) but not at the same rate as other properties.”

Normal buildings, such as offices and warehouses, can’t exceed 40′ plus 10′ to the eave. The requested change in the ordinance changes the status of the towers from a building to the same status of an antenna or tower.

Mr Reed added, “The height to the eave is 76′, the height to the top of the tank is 105′, the height to the top of the elevator (atop the tank) is 133′. The 133′ is the only measurement that matters now because the change to the zoning ordinance means this is no longer a “building”, but rather the same as an antenna or tower.”

“The grain company specifically requested that change to the ordinace — which was opposed by several citizens…They can build it as high as they like so long as it conforms to the overal height restriction for towers, spires, etc.”

Mr Reed commented on additional concerns, “The citizens are concerned about the health effects of (additional) grain dust, noise, and grain explosions.”

The new construction is expected to generate annual property tax revenues of $10,000 to $16,000.