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by GREYDOG

The European Union Catches The Banks Holding Hands by J. Iddhis Bing

2:18 pm in Uncategorized by GREYDOG

Bob Diamond

By J. Iddhis Bing, 99GetSmart

Where’s Bob Diamond Now?

Early in the summer of 2012, Bob Diamond was an American banker with a talent for making numbers say what he wanted them to say. He was legit and was sitting in the catbird seat at Barclays Bank UK. He’d made $100 million over the previous six years.

A few weeks later, in early July, the world had flipped. Instead of sitting at his desk at Barclays Diamond was answering questions from a Parliamentary committee investigating LIBOR rate-fixing in 2008. A week after that he was out of work.

What’s LIBOR? The London Interbank Offered Rate measures the price at which banks lend currencies to each other. It gauges how much banks charge each other when they carry out interbank trades and it affects the rates businesses and households all over the world pay on loans and other financial products.

Diamond lost his job and Barclays was fined £290m. It was the financial scandal of the summer. Some say of the century, but we’ve got plenty of time to go yet.

July, 2012 was just the first act. The European Union wasn’t asleep at the wheel and started to investigate two other currency markets, the EURIBOR and the Yen LIBOR. They took their time and announced their findings two days ago. It turns out to be a good deal more serious than having to sweat through a rough morning in Parliament. Barclays got off with a £290m penalty in 2012 for their bad behavior. Maybe that wiped out a quarter or a half year’s earnings, and brought them some bad publicity. They found a way to dodge the bullet this time.

On Wednesday it was Joaquín Almunia’s job to announce EU charges against the banks involved. Almunia is the European Commission Vice-President in charge of competition policy. He stood behind the podium in Brussels looking like the stern accountant with the big glasses who comes in to set things straight after the wild party’s over. The European Commission was going to levy €1.7bn in fines on seven banks and a brokerage firm for their roles in the worldwide interest rate manipulation. Banks named were Barclays, UBS, the Royal Bank of Scotland (RBS, bailed out at taxpayer expense), Deutsche Bank, Société Générale and two American banks, Citigroup and JP Morgan. A brokerage house, RP Martin, is in the mix, too. They’re contesting the charges and the fine. The tables with the damages, courtesy the EC, are included here as illustrations.

For its part of the deal, RBS will pay another £300m on top of the £390m it has already paid to US and UK regulators. RBS is a nationalized bank. That means English taxpayers will pick up the tab for the bank’s behavior.

Barclays was the first bank caught in the sting back in 2012. They knew which way the wind was blowing. They decided to cut a deal: by exposing the cartel in Euribor rate-fixing they avoided an additional £570m fine. Swiss bank UBS was spared a £2bn fine by doing the same for the rigging of yen interest rates. A cartel? The banks were working together? This is where things get interesting.

“What is shocking about the Libor and Euribor scandals is not only the manipulation of benchmarks, which is being tackled by financial regulators worldwide, but also the collusion between banks who are supposed to be competing with each other,” Almunia said.

Barclays tried to make it sound like they were Boy Scouts who got a little lost in the woods and stumbled on a coven of witches: “The European Commission has today announced that it has reached a settlement with Barclays and a number of other banks in relation to anti-competitive conduct concerning Euribor. The settlement acknowledges that the banks’ conduct infringed EC competition law by attempting to distort the normal course of pricing components for interest rate derivatives referencing Euribor. As today’s announcement from the Commission confirms, Barclays voluntarily reported the Euribor conduct to the Commission and cooperated fully with the Commission’s investigation.”

Which is a nice, elaborate way of saying, we burned the witches and got off scot-free. Would the EU have known about the Euribor fix if they hadn’t? Read the rest of this entry →

by GREYDOG

Tuesday READ – 13 August 2013

7:42 am in Uncategorized by GREYDOG

 

Posted by greydogg, 99GetSmart

* FINALLY A BILLBOARD THAT CREATES DRINKABLE WATER OUT OF THIN AIR

No really, it’s a billboard that can generate up to 26 gallons of water a day from nothing but air.

By Matt Peckham, Techland

I’ve never cared much for billboards. Not in the city, not out of the city — not anywhere, really. It’s like the saying in that old Five Man Electrical Band song. So when the creative director of an ad agency in Peru sent me a picture of what he claimed was the first billboard that produces potable water from air, my initial reaction was: gotta be a hoax, or at best, a gimmick.

Except it’s neither: The billboard pictured here is real, it’s located in Lima, Peru, and it produces around 100 liters of water a day (about 26 gallons) from nothing more than humidity, a basic filtration system and a little gravitational ingenuity.

Let’s talk about Lima for a moment, the largest city in Peru and the fifth largest in all of the Americas, with some 7.6 million people (closer to 9 million when you factor in the surrounding metro area). Because it sits along the southern Pacific Ocean, the humidity in the city averages 83% (it’s actually closer to 100% in the mornings). But Lima is also part of what’s called a coastal desert: It lies at the northern edge of the Atacama, the driest desert in the world, meaning the city sees perhaps half an inch of precipitation annually (Lima is the second largest desert city in the world after Cairo). Lima thus depends on drainage from the Andes as well as runoff from glacier melt — both sources on the decline because of climate change. […]

VIDEO @ http://techland.time.com/2013/03/05/finally-a-billboard-that-creates-drinkable-water-out-of-thin-air/#ixzz2bqVAhEwK

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* YOU’RE MORTGAGE DOCUMENTS ARE FAKE!

By David Dayen, Salon

Prepare to be outraged. Newly obtained filings from this Florida woman’s lawsuit uncover a horrifying scheme

If you know about foreclosure fraud, the mass fabrication of mortgage documents in state courts by banks attempting to foreclose on homeowners, you may have one nagging question: Why did banks have to resort to this illegal scheme? Was it just cheaper to mock up the documents than to provide the real ones? Did banks figure they simply had enough power over regulators, politicians and the courts to get away with it? (They were probably right about that one.)

A newly unsealed lawsuit, which banks settled in 2012 for $1 billion, actually offers a different reason, providing a key answer to one of the persistent riddles of the financial crisis and its aftermath. The lawsuit states that banks resorted to fake documents because they could not legally establish true ownership of the loans when trying to foreclose.

This reality, which banks did not contest but instead settled out of court, means that tens of millions of mortgages in America still lack a legitimate chain of ownership, with implications far into the future. And if Congress, supported by the Obama Administration, goes back to the same housing finance system, with the same corrupt private entities who broke the nation’s private property system back in business packaging mortgages, then shame on all of us. […]

READ @ http://www.salon.com/2013/08/12/your_mortgage_documents_are_fake/

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* THE NSA IS TURNING THE INTERNET INTO A TOTAL SURVEILLANCE SYSTEM

By Alexander Abdo and Patrick Toomey, The Guardian

Another burst of sunlight permeated the National Security Agency’s black box of domestic surveillance last week.

According to the New York Times, the NSA is searching the content of virtually every email that comes into or goes out of the United States without a warrant. To accomplish this astonishing invasion of Americans’ privacy, the NSA reportedly is making a copy of nearly every international email. It then searches that cloned data, keeping all of the emails containing certain keywords and deleting the rest – all in a matter of seconds.

If you emailed a friend, family member or colleague overseas today (or if, from abroad, you emailed someone in the US), chances are that the NSA made a copy of that email and searched it for suspicious information. […]

READ @ http://www.theguardian.com/commentisfree/2013/aug/11/nsa-internet-surveillance-email

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* DEBT, AUSTERITY, DEVASTATION: IT’S EUROPE’S TURN

By Susan George, CADTM

As the creditors get fatter, the innocent are punished. Susan George laments a leadership subservient to big business.

Read the rest of this entry →