Wednesday, 23 April 2008
UniCredit said writedowns of around 650 million euros on its asset-backed securities portfolio
UniCredit said writedowns of around 650 million euros on its asset-backed securities portfolio would contribute to a trading loss of about 675 million euros ($1.08 billion) in the first quarter of 2008.In a statement on Wednesday after comments by the head of its HVB unit, Europe's No. 3 bank said it should also see a consolidated profit of around 1 billion euros.UniCredit said the widening of spreads on bonds and the "dislocation" of the basis spread between credit default swaps and underlying cash bonds for about 350 million euros also contributed to the trading loss in its markets and investment banking division.
Friday, 11 April 2008
George Soros says high-risk credit default swaps could be the next sector of the investment market to strike trouble,
George Soros high-risk credit default swaps could be the next sector of the investment market to strike trouble, increasing the current turbulence.
Mr Soros said there was no regulation of CDS investment products globally, giving speculative investors freedom to punt on debt. CDSs are a form of insurance against bond issuers defaulting on their interest payments, and premiums have jumped sharply in recent months. The investor and philanthropist has called the current global market rout a financial "Armageddon" and has predicted further problems. Mr Soros has earned a worldwide reputation for picking the peaks of the market. He has blamed the US Government and its regulatory bodies for not intervening in the market slide earlier. He said the growing credit default swap market was incredibly risky and could be the next area of danger. CDSs are traded on a grey market that is reportedly on a similar scale to the US share market. "It is a very large business. It allows people to speculate effectively in the bond market without owning or borrowing the bonds," Mr Soros said. "That means it can be done on a very, very thin margin and they can take very large positions with very little capital. "It allows them to assume risk without being regulated. You can actually act as an unregulated insurance company." CDSs have been extending their reach. ANZ struck trouble with the investment products through its involvement with bond insurer ACA. "One does not know, if there's a default on a big scale, that CDS investors can meet their obligations," Mr Soros said. "This uncertainty is creating mistrust and there is a counter-party risk involved. "You have this market with a nominal value of $45 trillion. "It's an enormous amount and it's totally unregulated." In a new book, Mr Soros says the current market crisis is a "man-made" event exacerbated by free-market theory. Mr Soros said the US economy was already in recession, and the actions taken by the Federal Reserve, and the Bush administration's fiscal rescue package, were not enough. "This is a man-made crisis that was created by the false belief that the market can correct itself, and the regulators have failed to do their jobs," he said. "There have been some steps taken but they have not been sufficient. "The situation is going to get worse before it gets better."
Hedge funds were contributing to the current share market volatility, he said.
The recent spike in commodity prices, particularly soft commodities, has been attributed to hedge funds diversifying out of equities.
"Hedge funds are influential. Some hedge funds employed a strategy of being very leveraged and they claimed to be market-neutral," Mr Soros said.
"It was a losing strategy. Some of those guys have been wiped out, and generally hedge funds have had to de-leverage.
"They are in the process of de-leveraging now, and it's a very painful process involving wealth destruction
Mr Soros said there was no regulation of CDS investment products globally, giving speculative investors freedom to punt on debt. CDSs are a form of insurance against bond issuers defaulting on their interest payments, and premiums have jumped sharply in recent months. The investor and philanthropist has called the current global market rout a financial "Armageddon" and has predicted further problems. Mr Soros has earned a worldwide reputation for picking the peaks of the market. He has blamed the US Government and its regulatory bodies for not intervening in the market slide earlier. He said the growing credit default swap market was incredibly risky and could be the next area of danger. CDSs are traded on a grey market that is reportedly on a similar scale to the US share market. "It is a very large business. It allows people to speculate effectively in the bond market without owning or borrowing the bonds," Mr Soros said. "That means it can be done on a very, very thin margin and they can take very large positions with very little capital. "It allows them to assume risk without being regulated. You can actually act as an unregulated insurance company." CDSs have been extending their reach. ANZ struck trouble with the investment products through its involvement with bond insurer ACA. "One does not know, if there's a default on a big scale, that CDS investors can meet their obligations," Mr Soros said. "This uncertainty is creating mistrust and there is a counter-party risk involved. "You have this market with a nominal value of $45 trillion. "It's an enormous amount and it's totally unregulated." In a new book, Mr Soros says the current market crisis is a "man-made" event exacerbated by free-market theory. Mr Soros said the US economy was already in recession, and the actions taken by the Federal Reserve, and the Bush administration's fiscal rescue package, were not enough. "This is a man-made crisis that was created by the false belief that the market can correct itself, and the regulators have failed to do their jobs," he said. "There have been some steps taken but they have not been sufficient. "The situation is going to get worse before it gets better."
Hedge funds were contributing to the current share market volatility, he said.
The recent spike in commodity prices, particularly soft commodities, has been attributed to hedge funds diversifying out of equities.
"Hedge funds are influential. Some hedge funds employed a strategy of being very leveraged and they claimed to be market-neutral," Mr Soros said.
"It was a losing strategy. Some of those guys have been wiped out, and generally hedge funds have had to de-leverage.
"They are in the process of de-leveraging now, and it's a very painful process involving wealth destruction
foreign banks operating in Pakistan
The Banking Mohtasib (Ombudsman) is dissatisfied with the attitude of local as well as foreign banks operating in Pakistan towards their customers. He said that all banks were not thoroughly screening loan or credit card applicants to determine their repayment capacity and credit worthiness. The failure to do so had resulted in subsequent delinquencies. He urged banks to exercise prudence when granting credit facilities.
The Annual Report 2007 made public today by him includes case studies which show the apathetic attitude of banks in their dealings with customers. Banking Mohtasib said that judging from the types of complaints received, service standards within most banks were indifferent. A service oriented mind-set appears to be lacking across the industry, he stressed the need for a proactive complaints resolution process within banks.Based on investigations and complaints, the Banking Mohtasib has made recommendations to SBP on systemic issues and non-compliance by banks with SBP’s directives. Key areas on which recommendations have been made are:Lockers vandalism, Credit Card fraud, and Debt collection by banks. The Banking Mohtasib said that his Unit had resolved numerous complaints, particularly from illiterate individuals of meager means, who had placed their trust and life savings in the banking system only to discover that financial security they had sought was misconceived as was their vision of a secure financial future because of deceitful actions by a handful of dishonorable bank staff. He added that it has been exceedingly gratifying and fulfilling that the Banking Mohtasib establishment could assist these persons in the resolution of their grievances. The Banking Mohtasib presented the 2007 Annual Report at a ceremony at a local hotel. Banking Mohtasib function opened to the public on May 2, 2005 to serve as an independent, impartial and cost free service for redressal of public grievances against scheduled banks. In order to speed up the complaints resolution process certain amendments have been made in the Banking Companies Ordinance to improve the process.
The Annual Report 2007 made public today by him includes case studies which show the apathetic attitude of banks in their dealings with customers. Banking Mohtasib said that judging from the types of complaints received, service standards within most banks were indifferent. A service oriented mind-set appears to be lacking across the industry, he stressed the need for a proactive complaints resolution process within banks.Based on investigations and complaints, the Banking Mohtasib has made recommendations to SBP on systemic issues and non-compliance by banks with SBP’s directives. Key areas on which recommendations have been made are:Lockers vandalism, Credit Card fraud, and Debt collection by banks. The Banking Mohtasib said that his Unit had resolved numerous complaints, particularly from illiterate individuals of meager means, who had placed their trust and life savings in the banking system only to discover that financial security they had sought was misconceived as was their vision of a secure financial future because of deceitful actions by a handful of dishonorable bank staff. He added that it has been exceedingly gratifying and fulfilling that the Banking Mohtasib establishment could assist these persons in the resolution of their grievances. The Banking Mohtasib presented the 2007 Annual Report at a ceremony at a local hotel. Banking Mohtasib function opened to the public on May 2, 2005 to serve as an independent, impartial and cost free service for redressal of public grievances against scheduled banks. In order to speed up the complaints resolution process certain amendments have been made in the Banking Companies Ordinance to improve the process.
UK lenders are sitting on far larger undisclosed mortgage-related losses than its European counterparts
A report from the International Monetary Fund (IMF) shows that British banks will have to take an extra £11 billion from sub-prime losses - in addition to the £9.6 billion write-downs already announced.
UK lenders are sitting on far larger undisclosed mortgage-related losses than its European counterparts, according to figures in the Global Financial Stability report. In comparison, lenders in the US and the rest of Europe have already revealed their losses. In Europe, top lenders will probably total around £6 billion of additional losses while lenders in the US could report a further £25 billion of write-downs, but that is only half the figure they have already confessed to. Earlier this week, the IMF warned that losses from the worldwide credit crunch could reach $1 trillion (£500 billion).
Experts have tried to estimate the cost of one of the worst financial disasters in history but have not exceeded $600 billion. The trillion figure (a million billion) will result in requests for further state intervention to balance credit markets.
Commenting on the report, IMF official Jaime Caruana said the credit shock emanating from the US sub-prime crisis is set to broaden amid a significant economic slowdown.
With a weakening economy, write-downs and prospects for further losses are placing additional pressure on banks’ balance sheets, which may limit their capacity to lend. Britain is particularly vulnerable to the cash crunch because of its over extended property market, concluded Mr Caruana.
UK lenders are sitting on far larger undisclosed mortgage-related losses than its European counterparts, according to figures in the Global Financial Stability report. In comparison, lenders in the US and the rest of Europe have already revealed their losses. In Europe, top lenders will probably total around £6 billion of additional losses while lenders in the US could report a further £25 billion of write-downs, but that is only half the figure they have already confessed to. Earlier this week, the IMF warned that losses from the worldwide credit crunch could reach $1 trillion (£500 billion).
Experts have tried to estimate the cost of one of the worst financial disasters in history but have not exceeded $600 billion. The trillion figure (a million billion) will result in requests for further state intervention to balance credit markets.
Commenting on the report, IMF official Jaime Caruana said the credit shock emanating from the US sub-prime crisis is set to broaden amid a significant economic slowdown.
With a weakening economy, write-downs and prospects for further losses are placing additional pressure on banks’ balance sheets, which may limit their capacity to lend. Britain is particularly vulnerable to the cash crunch because of its over extended property market, concluded Mr Caruana.
Monday, 7 April 2008
Brian Meehan became the first financial victim of the new legislation when the Cab successfully secured the forfeiture of €104,000 of his criminal pro
Brian Meehan, a key figure in John Gilligan's gang, whose activities led to the setting up of the multi-agency body. Some of the Gilligan gang were involved in the murder of journalist Veronica Guerin in June 1996 and that crime was the catalyst for the introduction of the Proceeds of Crime Act.
Meehan, who is serving a life sentence for that murder, became the first financial victim of the new legislation when the Cab successfully secured the forfeiture of €104,000 of his criminal profits. However, he is still fighting a court battle to prevent the CAB from seizing another €800,000. This massive haul is being held in an Austrian bank by Meehan, a native of Crumlin, on the southside of Dublin. Meehan is the only person to be have been publicly identified from the list of targeted names, which have been drawn up by senior CAB personnel. Other targets have property and assets stashed away in countries such as Spain and the Netherlands, as well as parts of eastern Europe, including Bulgaria. The CAB is already active in helping to implement confiscation requests presented here by other countries. The aim now is to ensure reciprocal arrangements can be successful operated, and the setting up of the network of asset recovery offices and streamlining legislation are regarded as crucial to securing that aim. According to the head of the financial crime section in the European Commission, Sebastiano Tine, confiscation makes it possible to attack the decision-makers within criminal organisations and also acts as a deterrent by proving that crime does not pay.
Meehan, who is serving a life sentence for that murder, became the first financial victim of the new legislation when the Cab successfully secured the forfeiture of €104,000 of his criminal profits. However, he is still fighting a court battle to prevent the CAB from seizing another €800,000. This massive haul is being held in an Austrian bank by Meehan, a native of Crumlin, on the southside of Dublin. Meehan is the only person to be have been publicly identified from the list of targeted names, which have been drawn up by senior CAB personnel. Other targets have property and assets stashed away in countries such as Spain and the Netherlands, as well as parts of eastern Europe, including Bulgaria. The CAB is already active in helping to implement confiscation requests presented here by other countries. The aim now is to ensure reciprocal arrangements can be successful operated, and the setting up of the network of asset recovery offices and streamlining legislation are regarded as crucial to securing that aim. According to the head of the financial crime section in the European Commission, Sebastiano Tine, confiscation makes it possible to attack the decision-makers within criminal organisations and also acts as a deterrent by proving that crime does not pay.
Saturday, 5 April 2008
Pirates boarded a French luxury cruise yacht off the coast of Somalia and took its entire crew hostage today
Pirates boarded a French luxury cruise yacht off the coast of Somalia and took its entire crew hostage today, a French military spokesman said.
The yacht, the Ponant, "was the victim of an act of piracy early this afternoon as it was sailing between Somalia and Yemen," spokesman Christophe Prazuck said.
The 850-tonne, three-masted yacht was carrying about 30 crew but had no passengers on board, Prazuck said."As far as we know, no shots have been fired," he said. French military forces and a US-led task force, both present in the area, "were able to confirm the situation and are following its evolution."
France has a patrol aircraft based in Djibouti, as well as a dispatch boat.
French cruise operator CMA-CGM confirmed one of its boats had been seized in the Gulf of Aden, on its way from the Seychelles to the Mediterranean, and "the majority" of its crew were French nationals.
"The ship is indeed the Ponant, property of the CMA-CGM group. We were informed that there were pirates on board," a company spokesman said.
Prime Minister Francois Fillon's office said the government had launched a piracy alert plan.
The foreign ministry said it had made contact with the ship's owner and was trying to reach the crew's relatives.
The 32-cabin Ponant, fully equipped with lounges, bar and restaurant, is one of three operated by the Marseille-based firm, which describes itself as France's leading cruise provider.
With a capacity for 64 passengers, it offers several cruises in the Gulf region, including between Egypt and Aqaba in Jordan, and off the coast of Oman, according to the company's website.
Pirate attacks are frequent off Somalia's 3700-km coastline, prompting the International Maritime Bureau to advise sailors to steer clear.
The French navy was called on in recent months to escort World Food Program boats through Somali waters, after two of the agency's boats were stolen.
UBS, the region's largest bank by assets, rallied
UBS, the region's largest bank by assets, rallied the most in more than six years after saying it seeks to raise 15 billion Swiss francs ($14.9 billion) in a rights offer. Credit Suisse Group and UniCredit SpA also paced gains by financial shares. Infineon Technologies AG, Europe's second-biggest semiconductor maker, led technology stocks higher after Elpida Memory Inc. of Japan said it will raise chip prices.
European Union finance officials agreed to tighten oversight of banks and increase crisis cooperation,
The finance ministers and central bankers signed an accord yesterday at Brdo, near Ljubljana, Slovenia, to create links among the supervisors of multinational financial companies and set guidelines for responding to market disruptions.
The plan, born from a 2006 crisis simulation that exposed confusion in a cross-border financial meltdown, gained urgency as subprime-related losses and writedowns mounted to more than $77 billion at EU banks, four of which have needed rescues.
``Decisive steps needed to be taken,'' Slovenian Finance Minister Andrej Bajuk said at a news conference after the signing. Regulators ``are obliged now to cooperate in normal times and in times of crisis.'' Charlie McCreevy, EU financial-services commissioner, said existing arrangements were inadequate to deal with a bailout such as at Northern Rock Plc of the U.K. or IKB Deutsche Industriebank AG of Germany, if the bank had major cross-border business.
UBS AG of Switzerland -- not an EU member -- has written off $38 billion, in the biggest hit sparked by an increase in defaults by lower-rated homebuyers in the U.S.
The new EU plan commits regulators to set up monitoring groups for big banks such as Deutsche Bank AG and insurers including Allianz SE. The accord also covers stock exchanges, which are reaching across borders with tie-ups such as London Stock Exchange Group Plc's acquisition of Borsa Italiana SpA last year.
The plan, born from a 2006 crisis simulation that exposed confusion in a cross-border financial meltdown, gained urgency as subprime-related losses and writedowns mounted to more than $77 billion at EU banks, four of which have needed rescues.
``Decisive steps needed to be taken,'' Slovenian Finance Minister Andrej Bajuk said at a news conference after the signing. Regulators ``are obliged now to cooperate in normal times and in times of crisis.'' Charlie McCreevy, EU financial-services commissioner, said existing arrangements were inadequate to deal with a bailout such as at Northern Rock Plc of the U.K. or IKB Deutsche Industriebank AG of Germany, if the bank had major cross-border business.
UBS AG of Switzerland -- not an EU member -- has written off $38 billion, in the biggest hit sparked by an increase in defaults by lower-rated homebuyers in the U.S.
The new EU plan commits regulators to set up monitoring groups for big banks such as Deutsche Bank AG and insurers including Allianz SE. The accord also covers stock exchanges, which are reaching across borders with tie-ups such as London Stock Exchange Group Plc's acquisition of Borsa Italiana SpA last year.
Central banks have the tools to contrast high volatility on financial markets and it is in their interest to use them
Central banks have the tools to contrast high volatility on financial markets and it is in their interest to use them, European Central Bank Executive Board member Juergen Stark said on Saturday.
As liquidity tensions pushed interbank lending rates higher in recent months, the ECB has intervened steadily in money markets to keep overnight rates in line with its 4 percent policy rates.
"With respect to central banks," Stark said in the text of a speech he delivered at a conference in the northern Italian city of Cernobbio, "it is in their own interest to contribute to an orderly functioning of money markets and to solidly anchor inflation expectations in order to avoid additional volatility."
The ECB meets on Thursday and is widely expected to leave interest rates unchanged.
The financial system could play an important role in boosting growth and productivity, Stark said, adding he saw "encouraging signs" of the euro area's potential to remain competitive despite the apparent cyclical nature of its productivity gains.
Stark said higher competition in the banking sector tended to support economic growth. In this respect, cross-border mergers and acquisitions played a positive role while extensive public ownership of banks may distort competition.
The German state is heavily involved in the banking business in Europe's biggest economy.
Stark also pointed to the fragmentation of the retail banking market.
He urged cooperation among supervisory authorities and between them and central banks to detect possible threats to the financial system, especially after the recent market turmoil highlighted the need for more transparency and monitoring on credit risks.
Stark listed a loosening of credit standards and a probably riskier lending attitude among a number of weak points for the euro area's banking sector in the context of the recent turmoil.
"In addition there was a widespread underestimation of risks and a lack of transparency in the context of the extensive use of derivative products," he said.
Despite the need for further integration and possible reforms, Stark said he saw the level of development reached so far by the financial system as "highly beneficial" for the economy of the euro area
As liquidity tensions pushed interbank lending rates higher in recent months, the ECB has intervened steadily in money markets to keep overnight rates in line with its 4 percent policy rates.
"With respect to central banks," Stark said in the text of a speech he delivered at a conference in the northern Italian city of Cernobbio, "it is in their own interest to contribute to an orderly functioning of money markets and to solidly anchor inflation expectations in order to avoid additional volatility."
The ECB meets on Thursday and is widely expected to leave interest rates unchanged.
The financial system could play an important role in boosting growth and productivity, Stark said, adding he saw "encouraging signs" of the euro area's potential to remain competitive despite the apparent cyclical nature of its productivity gains.
Stark said higher competition in the banking sector tended to support economic growth. In this respect, cross-border mergers and acquisitions played a positive role while extensive public ownership of banks may distort competition.
The German state is heavily involved in the banking business in Europe's biggest economy.
Stark also pointed to the fragmentation of the retail banking market.
He urged cooperation among supervisory authorities and between them and central banks to detect possible threats to the financial system, especially after the recent market turmoil highlighted the need for more transparency and monitoring on credit risks.
Stark listed a loosening of credit standards and a probably riskier lending attitude among a number of weak points for the euro area's banking sector in the context of the recent turmoil.
"In addition there was a widespread underestimation of risks and a lack of transparency in the context of the extensive use of derivative products," he said.
Despite the need for further integration and possible reforms, Stark said he saw the level of development reached so far by the financial system as "highly beneficial" for the economy of the euro area
Thursday, 3 April 2008
Northern Rock had up to £30bn of mortgages coming up for renewal this year and customers would be offered help to transfer to other lenders
Liberal Democrat Treasury spokesman Vince Cable branded the payout to Mr Applegarth, who stepped down last December, as a “reward for failure”.
Shareholders and union chiefs want an inquiry but the Prime Minister said the bank’s former board had to take responsibility for its decisions, including the payment to ex-chief executive Adam Applegarth, before the Government took charge after nationalisation.The Financial Services Authority also refused to be drawn on a possible inquiry, saying it was up to shareholders and the board to monitor company bosses.The bank, which is set to cut its workforce by 2,000, sank to a £167.6m loss last year, according to accounts released yesterday.They reveal the board agreed to contribute towards legal costs incurred by directors, including £5,000 plus VAT to Mr Applegarth. He also received enhanced security at his home.
The row came as the Rock’s new executive chairman Ron Sandler unveiled details of an operating plan under which the bank has promised to repay around £24bn in government loans by the end of 2010.The strategy includes the bank halving its balance sheet to £50bn by the end of 2011 by stopping all business lending and accelerating mortgage redemptions for existing customers.
Mr Sandler warned of “significant losses” this year as the credit market turmoil continued, adding that the earliest the bank could become profitable was by the end of 2012.He said Northern Rock had up to £30bn of mortgages coming up for renewal this year and customers would be offered help to transfer to other lenders.
“The chief executive who led the disastrous business strategy is being generously rewarded for failures of leadership whereas shareholders get nothing and large numbers of workers are being made redundant,” said Mr Cable.
Newcastle Central MP Jim Cousins said Mr Applegarth should hand the bulk of the money to the Northern Rock Foundation – but questioned the value of a new inquiry. North Durham Labour MP Kevan Jones urged Mr Applegarth to give up the cash, warning of anger among workers facing job cuts.Hexham MP Peter Atkinson warned against scapegoating one individual, when the blame lay across the financial sector.
Northern Rock said Mr Applegarth’s termination payment was “substantially less” than he was otherwise due.Under the terms of the severance deal, Mr Applegarth’s payment is reduced if he gets another job before November 16. And £75,000 of his mortgage will continue to be charged at the concessionary staff interest rate until November this year.
Shareholders and union chiefs want an inquiry but the Prime Minister said the bank’s former board had to take responsibility for its decisions, including the payment to ex-chief executive Adam Applegarth, before the Government took charge after nationalisation.The Financial Services Authority also refused to be drawn on a possible inquiry, saying it was up to shareholders and the board to monitor company bosses.The bank, which is set to cut its workforce by 2,000, sank to a £167.6m loss last year, according to accounts released yesterday.They reveal the board agreed to contribute towards legal costs incurred by directors, including £5,000 plus VAT to Mr Applegarth. He also received enhanced security at his home.
The row came as the Rock’s new executive chairman Ron Sandler unveiled details of an operating plan under which the bank has promised to repay around £24bn in government loans by the end of 2010.The strategy includes the bank halving its balance sheet to £50bn by the end of 2011 by stopping all business lending and accelerating mortgage redemptions for existing customers.
Mr Sandler warned of “significant losses” this year as the credit market turmoil continued, adding that the earliest the bank could become profitable was by the end of 2012.He said Northern Rock had up to £30bn of mortgages coming up for renewal this year and customers would be offered help to transfer to other lenders.
“The chief executive who led the disastrous business strategy is being generously rewarded for failures of leadership whereas shareholders get nothing and large numbers of workers are being made redundant,” said Mr Cable.
Newcastle Central MP Jim Cousins said Mr Applegarth should hand the bulk of the money to the Northern Rock Foundation – but questioned the value of a new inquiry. North Durham Labour MP Kevan Jones urged Mr Applegarth to give up the cash, warning of anger among workers facing job cuts.Hexham MP Peter Atkinson warned against scapegoating one individual, when the blame lay across the financial sector.
Northern Rock said Mr Applegarth’s termination payment was “substantially less” than he was otherwise due.Under the terms of the severance deal, Mr Applegarth’s payment is reduced if he gets another job before November 16. And £75,000 of his mortgage will continue to be charged at the concessionary staff interest rate until November this year.
"ring of security"UK's new unified border agency was launched today by the home secretary.
Working as a shadow agency of the Home Office, it will bring together border, immigration, customs and visa checks.Jacqui Smith argued it would help to protect borders, control migration and prevent border tax fraud, smuggling and immigration crime. Ms Smith said the public would soon see a "ring of security" around Britain.
The 25,000 strong organisation will work as a shadow agency of the Home Office.
Full powers are yet to be granted to its staff, but over the coming months 1,000 frontline staff will be given immigration and custom powers and employees in England and Wales will be handed police-like powers after an agreement with the Association of Chief Police Officers. Ms Smith said: "The UK Border Agency (UKBA) will help strengthen protection of our border. With tough customs, immigration and police-like powers UKBA officers will be better equipped than ever to guard our ports and airports, protecting the country from illegal immigration, organised crime and terrorism. "This 25,000 strong force will work both at home and abroad to tackle smuggling of people and goods into Britain using intelligence, new technology and wide-ranging powers and I am confident it will help strengthen policing at the border." Jane Kennedy, financial secretary to the Treasury, said the new agency would provide a crucial service. "It will protect tax revenues and assist international trade and the passage of essential goods at the frontier," she said. The Home Office has already begun fingerprinting all foreign visa applicants and from November ID cards will be rolled out for foreign nationals
The 25,000 strong organisation will work as a shadow agency of the Home Office.
Full powers are yet to be granted to its staff, but over the coming months 1,000 frontline staff will be given immigration and custom powers and employees in England and Wales will be handed police-like powers after an agreement with the Association of Chief Police Officers. Ms Smith said: "The UK Border Agency (UKBA) will help strengthen protection of our border. With tough customs, immigration and police-like powers UKBA officers will be better equipped than ever to guard our ports and airports, protecting the country from illegal immigration, organised crime and terrorism. "This 25,000 strong force will work both at home and abroad to tackle smuggling of people and goods into Britain using intelligence, new technology and wide-ranging powers and I am confident it will help strengthen policing at the border." Jane Kennedy, financial secretary to the Treasury, said the new agency would provide a crucial service. "It will protect tax revenues and assist international trade and the passage of essential goods at the frontier," she said. The Home Office has already begun fingerprinting all foreign visa applicants and from November ID cards will be rolled out for foreign nationals
European Commission says it has sent Bulgaria and Romania a final warning
The European Commission says it has sent Bulgaria and Romania a final warning, threatening to take both countries to court if they do not ensure that the 112 European emergency telephone number works properly.
Under EU rules, member states have to make sure that emergency services can be called free of charge with the single European emergency number 112.
They also have to ensure that telecoms operators provide the emergency authorities with information on the caller's location for 112 calls made from both fixed and mobile phones.
In Bulgaria, 112 is still not available nationwide, while in Romania the emergency services are still not provided with caller location information for mobile calls.
Under EU rules, member states have to make sure that emergency services can be called free of charge with the single European emergency number 112.
They also have to ensure that telecoms operators provide the emergency authorities with information on the caller's location for 112 calls made from both fixed and mobile phones.
In Bulgaria, 112 is still not available nationwide, while in Romania the emergency services are still not provided with caller location information for mobile calls.
four men on trial for attempting to extort money from the Liechtenstein bank LLB by threatening to reveal data on 2,325 suspected tax dodgers
Germany is to put four men on trial next week for attempting to extort money from the Liechtenstein bank LLB by threatening to reveal data on 2,325 suspected tax dodgers.The case is expected to revive questions about the ethics of the German BND intelligence service this year paying 4.2 million euros ($A6.95 million) for another purloined list of customers of a different Liechtenstein bank, the LGT.
Prosecutors in the northern port city of Rostock will need to argue that German authorities buying such a list was legal, but demanding money from Liechtenstein to keep it a secret was a crime
Liechtenstein, a territory between Switzerland and Austria, insists it is not a tax haven, but its cast-iron bank secrecy has attracted rich people from around the world setting up low-tax trusts
Four men are to go on trial on April 11 for extortionately obtaining 9 million euros ($A15.45 million) from the LLB for returning bank statements they obtained in 2005, prosecutors said.The data was allegedly stolen by a bank employee.The quartet is said to still possess data on more than 700 customers of the Liechtensteinische Landesbank (LLB) and have been negotiating via their lawyers for a lower sentence in exchange for its return.The prosecutors declined to comment on the progress in these talks, but stressed that if the data was not returned, the defendants would be deemed to be continuing the extortion, which is said to involve 4 billion euros in hidden funds in the Alpine principality.The indictment said the group sought to extort 4 million euros ($A6.9 million) from Liechtenstein for the return of the last block of data.The leader of the group was arrested last year as he was about to leave the country and take refuge in Thailand.Their lawyers reportedly offered the data to German tax authorities too, but were told that only prosecutors could negotiate over it.
Prosecutors in the northern port city of Rostock will need to argue that German authorities buying such a list was legal, but demanding money from Liechtenstein to keep it a secret was a crime
Liechtenstein, a territory between Switzerland and Austria, insists it is not a tax haven, but its cast-iron bank secrecy has attracted rich people from around the world setting up low-tax trusts
Four men are to go on trial on April 11 for extortionately obtaining 9 million euros ($A15.45 million) from the LLB for returning bank statements they obtained in 2005, prosecutors said.The data was allegedly stolen by a bank employee.The quartet is said to still possess data on more than 700 customers of the Liechtensteinische Landesbank (LLB) and have been negotiating via their lawyers for a lower sentence in exchange for its return.The prosecutors declined to comment on the progress in these talks, but stressed that if the data was not returned, the defendants would be deemed to be continuing the extortion, which is said to involve 4 billion euros in hidden funds in the Alpine principality.The indictment said the group sought to extort 4 million euros ($A6.9 million) from Liechtenstein for the return of the last block of data.The leader of the group was arrested last year as he was about to leave the country and take refuge in Thailand.Their lawyers reportedly offered the data to German tax authorities too, but were told that only prosecutors could negotiate over it.
Tuesday, 1 April 2008
International credit crisis has left its deepest marks yet on the European banking system
International credit crisis has left its deepest marks yet on the European banking system. Two mega-banks, Swiss bank UBS and Germany's Deutsche Bank, announced fresh asset write-downs amounting to billions of euros.Germany's biggest bank announced Tuesday, April 1, that it will write down an estimated 2.5 billion euros ($3.9 billion) in its first quarter. Deutsche Bank blamed bad loans in the housing sector and noted that conditions in international financial markets had become "significantly more challenging" in recent weeks.The announcement did not come as a complete surprise. Deutsche Bank had warned last week it might miss 2008 earning target.UBS is hoping for a sunnier futureBut Deutsche Bank's bad news was dwarfed by that of Swiss banking giant UBS, which announced it will write down 12 billion euros for the first three months of 2008.
"Deutsche Bank took advantage of the timing, coming on the heels of UBS so as not to have to rattle the market a second time," said Heino Ruland, analyst at FrankfurtFinanz told Reuters.With Tuesday's announcement, USB had the dubious distinction of being the bank which has taken the worst hit from the US subprime mortgage crisis. UBS Chairman Marcel Ospel, seen by many as the man responsible for leading the bank into disastrous US subprime mortgages, announced his resignation Tuesday."I ultimately take responsibility for the bank's situation," Ospel said in a statement.UBS's new write-downs come on top of $18.4 billion the bank had written down in 2007, bringing the bank's total write-downs to $37.4 billion. USB will turn to its shareholders to raise another 15 billion Swiss francs (9.5 billion euros, $14.8 billion) to shore up its financial base.
"Deutsche Bank took advantage of the timing, coming on the heels of UBS so as not to have to rattle the market a second time," said Heino Ruland, analyst at FrankfurtFinanz told Reuters.With Tuesday's announcement, USB had the dubious distinction of being the bank which has taken the worst hit from the US subprime mortgage crisis. UBS Chairman Marcel Ospel, seen by many as the man responsible for leading the bank into disastrous US subprime mortgages, announced his resignation Tuesday."I ultimately take responsibility for the bank's situation," Ospel said in a statement.UBS's new write-downs come on top of $18.4 billion the bank had written down in 2007, bringing the bank's total write-downs to $37.4 billion. USB will turn to its shareholders to raise another 15 billion Swiss francs (9.5 billion euros, $14.8 billion) to shore up its financial base.