Germany's Melkus files for bankruptcy

Another boutique maker of compact sports coupes has filed for bankruptcy in Germany. Melkus was a company we always enjoyed seeing at European auto shows. You never knew where the company would be – all of a sudden you'd notice a sleek, lissome coupe with open gullwing doors and you'd go, "Ah, there you are." That won't be happening anymore unless a white knight shows up: Melkus has reportedly filed for bankruptcy in a Dresden court, citing a lack of sales for its dire cash position.

Six year ago, Sepp Melkus, the grandson of the man who built the original Melkus sports cars from 1969 to 1980, restarted the company. The planned run was 25 examples a year at €115,000 ($143,000 U.S.), which would get customers either 270 horsepower from a Toyota 1.8-liter turbocharged four or up to 325 hp from aVolkswagen 2.0-liter turbo (enough to dash from zero to 62 mph in 4.5 seconds). Turns out that tweaking aLotus Elise, which the Melkus RS2000 is based on, and charging six figures in today's economy wasn't the way to go. The company isn't completely giving up yet, but it joins Artega in the search for a Mr. or Ms. Bigto replenish the coffers and keep the lights from going out for good.

Jessica Harper admits £2.4m Lloyds Bank fraud

A former Lloyds Bank worker in charge of online security has admitted carrying out a fraud worth more than £2.4m. Jessica Harper, 50, had been accused of submitting false invoices to claim payments between 2007 and 2011. At the time she was working as head of fraud and security for digital banking and made false claims totalling £2,463,750. Harper, of South Croydon, south London, will be sentenced on 21 September. At Southwark Crown Court, Harper admitted a single charge of fraud by abuse of position by submitting false invoices to claim payments. 'A very simple fraud' She also admitted a single charge of transferring criminal property, the money, which she had defrauded from her employers. Harper was arrested on 21 December before being charged in May. Continue reading the main story “ Start Quote Jessica Harper has today been convicted of the type of crime the bank employed her to combat” Sue Patten Crown Prosecution Service Antony Swift, prosecuting, did not open the facts of the case but said it was a "a very simple fraud". He added Harper had already repaid £300,000 and was in the process of selling her house for about £700,000. "That will be some £1m out of £2.5m that's gone missing," he told the judge. Carol Hawley, defending, said: "She appreciates the seriousness and has made full admissions in interview. "She understands perfectly well on the next occasion she will be facing imprisonment of some length." Breach of trust Judge Nicholas Loraine-Smith granted Harper bail on the condition she stays at her current address, obeys a 21:00 to 07:00 curfew and hands in her passport. Sue Patten, head of the Crown Prosecution Service, Central Fraud Division, said: "Jessica Harper has today been convicted of the type of crime the bank employed her to combat. "The evidence in the case was clear and left Harper with little choice but to plead guilty. "In doing so, she has admitted to a huge breach of trust against her former employer." Lloyds is now 39.7% state-owned after being bailed out by the government during the financial crisis.

Shares in Standard Chartered dive after Iran allegations

Shares in Standard Chartered PLC dropped sharply today as investors reacted to US charges that the bank was involved in laundering money for Iran. The charges against Standard Chartered were a shock for a bank which proudly described itself recently as “boring.” Shares were down nearly 20 percent at 1,187 pence at one point in early trading Tuesday on the London Stock Exchange. In Hong Kong, they were down 16.6 percent near the end of the session. New York State Department of Financial Services alleged on Monday that Standard Chartered schemed with the Iranian government to launder $250 billion from 2001 to 2007, leaving the United States' financial system “vulnerable to terrorists.” Standard Chartered said it “strongly rejects” the allegations. In a statement, the bank said “well over 99.9 percent” of the questioned transactions with Iran complied with all regulations, and the exceptions amounted to $14 million. The New York regulator ordered Standard Chartered representatives to appear in New York City on Aug. 15 “to explain these apparent violations of law” and to demonstrate why its license to operate in the State of New York “should not be revoked.” Gary Greenwood, analyst at Shore Capital in London, said the possible revocation of the New York license was of far greater concern than any potential fine, which could run into hundreds of millions of dollars. Standard Chartered's US operation facilitates trade for customers that have operations in both the United States and emerging markets. “Indeed, this is an area of the business that has been highlighted by management for growth,” Greenwood said. “A loss of its US banking license would not only jeopardize part of this profit stream, but the associated reputational damage could also have a severely damaging impact to its operations within emerging markets.” The New York agency alleged that Standard Chartered conspired with Iranian clients to route nearly 60,000 different US dollar payments through Standard Chartered's New York branch “after first stripping information from wire transfer messages used to identify sanctioned countries, individuals and entities.” The New York regulators called the bank a rogue institution and quoted one of its executives as saying: “You (expletive) Americans. Who are you to tell us, the rest of the world, that we're not going to deal with Iranians.” The order also identifies an October 2006 “panicked message” from a London group executive director who worried the transactions could lead to “very serious or even catastrophic reputational damage to the group.” If proven, the scheme would violate state money-laundering laws. The order also accuses the bank of falsifying business records, obstructing governmental administration, failing to report misconduct to the state quickly, evading federal sanctions and other illegal acts. Between 2004 and 2007, about half the period covered by the order, the department claims Standard Chartered hid from and lied about its Iranian transactions to the Federal Reserve Bank of New York. Before 2008, banks were allowed to transact some business with Iran, but only with full reporting and disclosure, the order states. In 2008, the US Treasury Department stopped those transactions because it suspected they helped pay for Iran to develop nuclear weapons and finance terrorist groups including Hamas and Hezbollah. The order states the bank has to provide information and answer questions to determine if any of the funding aided the groups or Iran's nuclear program. Last week, Standard Chartered' chief executive, Peter Sands, boasted that the bank has racked up a 10-year string of record first-half profits “amidst all the turbulence in the global economy and the apparently never-ending turmoil in the world of banking.” “It may seem boring in contrast to what is going on elsewhere, but we see some virtue in being boring,” Sands added.

yellow jacket stun gun case for iphone

yellow jacket is a case that transforms the iPhone 4 & 4S into that 650,000-volt stun gun you've always needed.

scheduled to hit the US market in fall 2012 the case is advertised as being able to 
easily stop an aggressive male attacker, and ready for use in less than two seconds. 
its designer seth froom, a former military policeman came up with the product after 
being robbed in his home at gunpoint.

what is the demand for such a hostile product you might ask? well, yellow jacket 
has managed to receive over 100,000 USD worth of backing on the crowd-funding 
website indiegogo which means that there must be quite a few people out there 
who feel the need to transform their phone into a weapon.


detail of the stun gun nodes 

the iPhone's designers could never have conceived half of the the weird and wonderful accessories 
that have been designed for use with the iPhone since its launch, but even in the name of self defense 
a stun gun seems a bit much, doesn't it?

Now You Can Buy a $250,000 Nail Polish

Remember that time when everyone got all freaked out about thatsnakeskin pedicure that cost $300? Well, get ready to completely lose it, because we just got a press release for the “most expensive nail polish in the world.”

That title was previously held by Models Own, which produced a $130,000 bottle (featuring a 24-carat gold, diamond-encrusted lid) back in 2010. However, the self-professed “king of black diamonds,” Azature, has doubled that figure. A bottle of black nail polish containing a whopping 267 carats of black diamonds in the actual polish will go for $250,000. Yikes. You won’t be able to just walk into Duane Reade and buy this sucker, however–only one bottle of the stuff will be produced.
For those of us who can’t afford a quarter of a million dollars for a manicure, Azature is offering a $25 version (see, now doesn’t $25 nail polish sound downright cheap in comparison?) containing one measly black diamond. You’ll be able to pick it up in LA at Fred Segal starting this month.

Estepona Town Hall sacks 176 municipal workers

The news was given on Wednesday by the Councillor for Personnel, Pilar Fernández-Figares Estepona Town Hall has sacked 176 municipal workers. The PP Councillor for Personnel, Pilar Fernández-Figares, announced on Wednesday that the 176 workers are victims of the ERE Employment Regulation which the Town Hall put forward in June. The workers will be compensated with 2.5 million € and they will be given their ‘finiquito payments of 408,000 € between them. Pilar Fernández-Figares said one they were sacked the Town Hall will start to work on a new ‘training program for the reinsertion of the sacked workers’.

San Bernardino in California files for bankruptcy

The California city of San Bernardino has filed for bankruptcy protection amid a $46m (£30m) budget deficit and ongoing criminal investigations. The city listed assets and debts of over $1bn, court documents show, and becomes the third in the state to go bust in just over one month. Mayor Patrick Morris said San Bernardino filed for Chapter 9 to avoid legal action from creditors. In June, Stockton filed for bankruptcy, followed by Mammoth Lakes in July. The city council of San Bernardino approved the decision to file for bankruptcy protection last month. 'Remarkably sobering' The city's mayor confirmed the bankruptcy and told local media of his feelings at being tasked with filing the papers. "It's remarkably sobering to walk in that door, and to put that in the clerk's hand is a moment that gives one great pause," Patrick Morris told the Inland Valley Daily Bulletin. But he defended the move to file for bankruptcy protection, saying: "It was simply a filing for the purpose of avoiding any possible seizure by litigants of our liquid assets." Meanwhile, Acting Assistant City Manager Gwendolyn Waters said the legal procedures should not have an immediate impact on the city of about 210,000 people. Ms Waters said there were no current plans to scale back public services, but added that a proposal of budget cuts would be laid out within three weeks and those plans could include cuts. The city has already reduced its workforce by 20% over the last four years, Bloomberg reported. Analysts say the development is indicative of the deep blow dealt to US states by the financial crisis. San Bernardino, located 60 miles (96km) east of Los Angeles, was pummelled by a foreclosure crisis spawned by the housing crash, a now-familiar story. As well as having an estimated 5,000 homes repossessed, San Bernardino is struggling with an unemployment rate close to 16%, almost double the national average. Stockton - a city of nearly 300,000 in California's Central Valley - filed last month for bankruptcy amid a $26m budget gap. It was followed by Mammoth Lakes, a ski resort of about 8,000 residents, which was saddled with a $43m legal judgment. Before Stockton, a Californian city had not filed for bankruptcy since Vallejo in 2008.

BMW to sell luxury cars for less online

The BMW i3 concept car at the 2012 Detroit Auto Show in January. (John T. Greilick / Detroit News)

BMW will sell cars over the Web for the first time as the world's largest maker of luxury vehicles seeks an inexpensive way to reach more buyers to recoup spending on its electric models.

A direct online sales platform for BMW's new I sub-brand will be unique in an industry where, outside of small-scale experiments, competitors leave Internet orders for cars to dealers. BMW's range of strategies for the models, including a roaming sales force backing a limited showroom network, reflects the challenge carmakers face as low-emission vehicles trickle into dealerships to sluggish demand after years of development.

"There is considerable risk in BMW's approach of promoting the I brand so prominently," said Stefan Bratzel, director of the Center of Automotive Management at the University of Applied Science in Bergisch Gladbach, Germany. "There is the image risk, if they don't succeed as quickly as expected, and then there's the main risk of costs, which can only be countered with high deliveries."

BMW opened the I models' first showroom Tuesday in London, although only prototype cars and informational materials will be displayed at first because the vehicles themselves won't go on sale before next year. BMW is spending about $3 billion developing the i3 battery-powered city car and i8 plug-in hybrid supercar, according to an estimate by Frost & Sullivan. Industry sales of electric cars last year, at 43,000 vehicles, were only 57 percent of the 75,000 deliveries predicted by Sarwant Singh, a London-based automotive partner at the consulting company.

Starting prices posted

The four-seat i3, scheduled to reach the market in late 2013, will be priced at about 40,000 euros ($48,500), Bratzel estimated. That compares with a 23,850-euro starting price ($29,388) in Germany for the 1-Series, the cheapest BMW-brand car. The i8, targeted for sale in 2014, will cost more than 100,000 euros ($123,221), according to Ian Robertson, BMW's sales chief.

Details of how I-model buyers, the website and dealerships will interact are "still in the planning process" and will be communicated later, Linda Croissant, a spokeswoman at Munich- based BMW, said last week. Sales will be focused on the world's major urban areas, she said.

The online sales option is aimed at a generation of drivers used to making daily purchases over the Internet, and will be an extension of the car configuration that most automakers offer customers to view models with desired options such as interior colors, seat materials and roof styles.

Test drives not an option

The Internet platform may take a while to catch on because "many customers will still want to go somewhere to look at and drive the vehicle before buying," said Ian Fletcher, an auto analyst in London at research company IHS Global Insight.

"With new technologies, there may be even greater skepticism about buying a car over the Internet, as in many cases you'll have to win the confidence of customers that it works and there is support for them," Fletcher said in an email.

The setup may help BMW reduce expenses: Internet sales require less than half the cost of distributing through a dealership, according to Ferdinand Dudenhoeffer of the Center Automotive Research at the University of Duisburg-Essen in Germany. That allows online car prices to be 5 percent to 7 percent less than showroom tags.

Still, BMW sees standard dealerships as "the backbone of what we are doing in the interface with the customer" for the I models, Robertson said in June at a press presentation at the sub-brand's Park Lane showroom in London.

Dealer selection criteria

Outlets will be restricted to dealers with high BMW-brand sales volume who have floor space as well as capacity to work with I models' powering technology and carbon-fiber body material, Robertson said. The carmaker has chosen 45 of its approximately 200 dealers in Germany to sell the i3 and i8, a ratio that will probably be similar elsewhere, he said.

Dealers will be designated as agents for the I models, which provides an "advantage" by keeping the vehicles on the carmaker's books, the association of BMW distributors in Germany said in an email.

Electric vehicles' disadvantages versus conventional cars include costly battery packs, limited ranges and the time needed to recharge. Consumer reception to models like the Nissan Motor Co.'s Leaf and General Motors Co.'s Chevrolet Volt has been tepid.

"Currently available electric cars have a limited market success because they are a big compromise," said Arndt Ellinghorst, a London-based analyst at Credit Suisse AG. "Customers are not willing to compromise and spend a lot of money."

Carbon fiber bodies lighter

BMW Chief Executive Officer Norbert Reithofer started Project I at the end of 2007 as tighter emissions regulations threatened the viability of sporty sedans. BMW chose to create all-new vehicles that use expensive carbon fiber for a lighter body to make up for the weight of the battery system.

The approach contrasts with a decision by Daimler AG's Mercedes-Benz Cars division to convert existing models, such as the van-like B-Class or two-seat Smart, to electric power.

To make its electric vehicles more attractive, Stuttgart, Germany-based Daimler's Smart brand offers to lease the battery separately from the car. The automaker has a target of selling more than 10,000 of the models next year, with a starting price of 18,910 euros plus monthly battery rental at 65 euros.

The I models' new technology poses risks for BMW, "but they have no choice if they want to keep their premium and image as an innovation leader," Ellinghorst said.

The i3 and i8 will probably be among BMW's lowest-selling models through 2024, alongside the existing Z4 roadster, according to IHS estimates. In 2014, the first full year of production, BMW will probably deliver 31,380 i3s, compared with 564,760 of the best-selling 3-Series model and 18,101 Z4s, a study by the research company shows.

BMW's stance is that the models should produce earnings from the start, sales chief Robertson said.

"We clearly, as a company, go into any product launch with the view of making profit, which is no different with the I brand," Robertson said. "This is a car line just as every other car line, and we intend to make profit from Day 1."

Asil Nadir 'hid Polly Peck theft' behind success

Former Polly Peck tycoon Asil Nadir hid multi-million pound theft behind the success of his international company, the Old Bailey has been told. Philip Shears QC, prosecuting, told the jury that Mr Nadir's massive success had been a smokescreen for the thefts. Asil Nadir, 71, faces 13 counts of theft of £34m from Polly Peck International between 1987 and 1990. He denies the charges. The judge is expected to ask the jury to consider their verdicts next week. Mr Nadir is accused of stealing up to £150m from his company, Polly Peck International (PPI), to benefit himself, his family and other associates. The trial is focused on sample charges relating to just over a quarter of the money that allegedly disappeared. Prosecutors say Mr Nadir funnelled cash away from PPI through a complex series of international transactions, including through a bank he owned in northern Cyprus. Mr Nadir denies the charges and says legitimate withdrawals to circulate cash around the business were matched by desposits at the northern Cyprus end of the operation. Continue reading the main story Chronology 1980 - Asil Nadir buys Polly Peck, at the time a small textile firm 1989 - Polly Peck International, by now worth £2bn, acquires giant fruit company Del Monte 24 Oct 1990 - PPI goes into administration Dec 1990 - Mr Nadir is charged with embezzling money May 1993 - He flees to northern Cyprus Aug 2010 - Mr Nadir returns to the UK Mr Shears said the trial had featured a lot about how Mr Nadir built the PPI empire and wielded considerable power and influence. "I wonder if some of you might have thought that what was happening here is that he is hiding behind the success story of Polly Peck, hiding behind the unpleasant reality that in the end he was found out, found out for stealing," said Mr Shears. "We invite you to conclude there is a wealth of evidence to show Mr Nadir stole very large sums of money from PPI." Mr Shears said that the businessman took cash to support share dealing, to pay debts and also the taxman. But he had also taken cash from PPI to buy racehorses, antique marble fireplaces, jewellery and shares in newspaper and video companies. Prosecutors say other large payments were made for a farm, property in London and to cover the losses of his other enterprises. Mr Shears said that Mr Nadir's attitude under cross-examination had been very revealing and that he was a man who was "adept at blaming others". "You may think he is a man who perhaps is used to getting his own way," Mr Shears said. "A man who likes to be in control. A man who has time and time again failed to give a straight answer to a straight question. "A man who - it is a matter for you - often descended into long rambling answers almost as if to produce a smokescreen to hide from the thrust of a particular question. "We submit to you this is a case of theft on a very substantial scale over what you might think was quite a significant time." Counsel for the defence will give their closing speech to the jury next week.

Barclays has admitted the public’s trust in banks has “been decimated and needs to be rebuilt” as it set out measures aimed at rebuilding its reputation in the wake of Libor rigging.

Announcing the appointment of veteran lawyer-turned-banker Anthony Salz to lead a review of its operations, Britain’s second-largest lender on Tuesday said the scandal that saw chief executive Bob Diamond and chairman Marcus Agius resign showed “banks need to revisit fundamentally the basis on which they operate, and how they add value to society”. Describing the “daunting” task ahead of it, Barclays said it needed a culture change that would see it “affirming key values” with “reinforcing mechanisms” to ensure staff behaved appropriately. Alluding to management and pay, it added “visible leadership” and rewards would have to be aligned to these values. The review will see Mr Salz interview investors, regulators and staff over the coming months and his findings are expected to be published in the spring. Barclays said it planned to implement the findings of the Salz Review in full. “Barclays has a real opportunity to use the events of the past weeks to drive a change in its values and practices. I look forward to hearing views on the changes that should be made,” Mr Salz said. “I hope that this review will significantly assist Barclays in rebuilding trust and reaffirming its position as one of our leading institutions.”

Banks 'Face £27bn Libor Hit'

The banks under investigation in the Libor rate-fixing scandal face combined losses of up to $42bn (£27bn), far more than previous estimates, according to one of the City's leading equity research houses. I have obtained a confidential note sent to clients by Autonomous Research today which suggests that 16 banks face a financial hit that would potentially alter the economics of investing in the global banking sector. In its note, Autonomous (which is chaired by the former City minister, Lord Myners) warns that if Libor was under-reported (in other words, that banks' submissions were too low) by 2.2 basis points, it could trigger fines and litigation costs of as much as £27bn. "We estimate $37bn of potential damages for rates derivatives (across all currencies)... We estimate adding bank loan and money market fund lawsuits could add a further 14%, or $5bn to the overall damages, bringing the possible total to $42bn," its note said. To be clear, the figures are at this stage pure conjecture, and Autonomous points out that they "must be used with great care and read in conjunction with a very long list of caveats". Nonetheless, the fact that such a respected research team as that of Autonomous is depicting such a cataclysmic financial scenario points to the grave crisis facing the international banking sector. It does not make pretty reading for investors in UK banks, with the analysts pointing to a prospective cost of £6.9bn for Barclays, HSBC, Lloyds Banking Group and Royal Bank of Scotland. Last week, Morgan Stanley attracted headlines with a note forecasting losses for 12 banks running to $22bn (£14.1bn) Libor is the benchmark for hundreds of trillions of pounds-worth of derivatives, loans and mortgages, and is now the subject of formal inquiries by the Government, the European Commission and regulators in several countries. Barclays is so far the only bank to have settled with authorities over Libor-fixing. It was fined £290m by regulators in the UK and US, a relatively modest sum in the context of what analysts now believe may be the final bill facing it and other banks. The estimates are so vast because of the tsunami of shareholder litigation that is expected to flow from the scandal as well as the prospect of tighter regulation that could restrict banks' profits. Barclays, of course, will not be immune to this, so it's conceivable that its own financial hit will ultimately be much larger than the £290m in fines. The Automonous analysts pick Barclays, Citi, Royal Bank of Scotland and UBS as having the largest exposure to legal costs although they add that "we believe it is both premature and inappropriate to focus on individual banks at this early stage in the process. As more evidence comes to light, perceptions of alleged manipulation and/or collusion could change dramatically". Barclays' executive committee hinted at the scale of the impact on the wider industry in a memo to staff on Friday. Referring to the litigation risk facing the banks under investigation, which also include Deutsche Bank, Autonomous says that "given the regulatory and political furore over the Libor allegations, we find it hard to believe this case will be easily dismissed by the defendant banks". On Monday, Jerry del Missier, the former Barclays executive who passed an instruction to the bank's Libor-setters to falsify its submissions, will give evidence on the scandal to the Treasury Select Committee.

J.P. Morgan 'Whale' Report Signals Deeper Problem

J.P. Morgan Chase JPM +5.96% & Co. said traders appear to have hidden problems in a portfolio whose losses have ballooned to $5.8 billion, the latest twist in an episode that has tested the reputation of Chief Executive James Dimon as one of Wall Street's soundest risk managers. A review of roughly 1 million e-mails and tens of thousands of voice tapes suggests traders within the once-obscure Chief Investment Office "may have been seeking to avoid showing the full amount of losses" during the first quarter by placing inaccurate prices on their positions, the bank said Friday. One trader, nicknamed the "London whale," may have been pressured by a boss to mark positions more aggressively, people close to the investigation said. WSJ's David Reilly pulls up a chair on Mean Street and discusses the idea that despite J.P. Morgan's Q2 loss announced on Friday, should CEO Jamie Dimon be seen as a hero? Photo: Getty Images. The discovery, made in recent days, prompted the company to restate earnings for the first quarter and admit to a "material weakness" within a unit that manages the bank's excess cash—embarrassments for J.P. Morgan, long considered one of the best-managed U.S. banks. Timeline: Tracking Trading at CIO View Interactive "This has shaken our company to the core," Mr. Dimon told analysts and investors Friday. Recap: The J.P. Morgan Call 'Maximum' Clawbacks Sought Deal Journal: Three Key Results Tracking the Trade: New 'Whale' Revelations Heard on the Street: J.P. Morgan's Cookie-Jar Quarter The largest U.S. bank tried to demonstrate Friday that the worst of the problem was in the rear-view mirror, reporting a $4.96 billion profit for the second quarter, down 8.7% from a year ago. The New York company said the results reflect solid performances in its retail, investment-banking and mortgage units. Second-quarter mortgage-loan originations jumped 29% from a year ago to $43.9 billion, while credit-card sales volume rose 12% from a year earlier to $96 billion. The company's investment bank was ranked first globally in fees. Enlarge Image Associated Press J.P. Morgan Chase CEO James Dimon enters the company headquarters Friday. The bank also cited an overhaul in personnel and risk controls within the Chief Investment Office, and announced that compensation would be clawed back from former CIO head Ina Drew and three London managers involved in the bad bets, without giving a total. Ms. Drew declined to comment. "It's time to move forward," Matt Zames, the new head of the CIO, said in a memo to employees. Investors reacted positively, pushing up shares of the bank $2.03, or 6%, to $36.07. Following J.P. Morgan's earnings call and details of their $5.8 billion loss, will investors be too jittery to invest in the stock in the long term? David Benoit reports on Markets Hub. (Photo: Mark Wilson/Getty Images) But it could take longer for J.P. Morgan Chase to lastingly convince investors that any risk-management weaknesses have been fixed and the losses are under control. The trading losses are far larger than the $2 billion to $3 billion of losses that the company two months ago said could result from the bungled trades; the $5.8 billion total is through Thursday. Chief Financial Officer Doug Braunstein said Friday that the troubled positions could still lead to additional losses of $700 million to $1.7 billion. Eight agencies are conducting probes into the losses, including the Justice Department and the Securities and Exchange Commission. Now Reporting Track the performances of 150 companies as they report and compare their results with analysts' estimates. Sort by date and industry. More photos and interactive graphics In addition, the second-quarter profit was boosted by one-time gains that won't likely recur in coming quarters, and revenue tumbled 17% from a year earlier. Overall, J.P. Morgan has lost $18 billion in market value since it shocked Wall Street on May 10 with the existence of trading losses. J.P. Morgan's assurances on Friday don't "eliminate the concern that this accident could be a predictor of future accidents," said Mike Mayo, a banking analyst with CLSA. "Maybe they are higher risk than we thought before. There is a nagging overhang that we might not know everything that we should know." The bank has been probing the losses for two months. But it was only in recent days that the bank became convinced that traders may have done more than make trading mistakes, according to two people close to the investigation. The company's report didn't name the traders, but one of the turning points came in an interview with one of them, Bruno Iksil, known as the London whale for his large trades, the people said. As part of its investigation, the bank said it "has recently identified concerns around the integrity of traders' marks," or the values placed on the traders' positions. The bank said "emails, voice tapes and other documents, supplemented by interviews, [are] suggestive of trader intent not to mark positions where they believed they could execute." The London Whale Claw Is Out for 'Whale' Officials July 11, 2012 J.P. Morgan plans to reclaim millions of dollars in stock from executives who were at the center of the bank's costly trading blunder. Dimon on the Hill: Cool and Contrite June 13, 2012 J.P. Morgan's chief, tarnished by trading losses, remains steadfast before Senate Banking Committee J.P. Morgan Knew of Risks June 12, 2012 Warning flags were raised two years ago about the trading desk that lost $2 billion. Inside J.P. Morgan's Blunder May 18, 2012 A behind-the-scenes account reveals that CEO Dimon blessed the concept behind the trads that cost the bank billions and stunned Wall Street. Bruno Iksil: From 'Caveman' to Whale May 17, 2012 Last year, J.P. Morgan's Iksil wagered large and won, but in 2012, his bets soured. J.P. Morgan's $2 Billion Blunder May 11, 2012 The nation's second-largest bank by assets admits losses on a massive trading bet gone wrong, a mistake CEO James Dimon calls "egregious" and "self-inflicted." The Original WSJ Article: 'London Whale' Rattles Debt Market April 6, 2012 The credit markets have been buzzing about the identity of a deep-pocketed trader dubbed 'the London Whale,' and some investors are placing heavy bets against him. How the London Whale story unfolded The two people close to the investigation say investigators didn't find a smoking gun suggesting potential malfeasance. But the evidence "painted a picture that made us uncomfortable," one of them said. Mr. Iksil received pressure from a boss to be more aggressive about certain valuations within an accepted range, one of the people said. Mr. Iksil's lawyer said his client "has done nothing wrong and will be exonerated." On Friday, executives offered the most detailed account to date of how the losses happened, attributing the fiasco to a combination of complacency, poor judgment and faulty risk controls. The portfolio—which featured outsize bets on certain corporate credit indexes—generated about $2 billion of profit from 2007 to 2011. Traders were asked in late 2011 to reduce the positions and instead put on other trades that increased the size of overall portfolio. The bank also singled out risk management within the Chief Investment Office for being "ineffective" and having "failed to meet expectations." Risk managers should have addressed the office's inadequate risk limits more quickly, challenged the office's leaders more forcefully and escalated more problems to management. The person who was named chief risk officer for the unit in late Janaury, Irv Goldman, has resigned from the bank, said a person familiar with the situation. Mr. Goldman couldn't be reached for comment. In January, certain risk limits within the office were breached, and yet in February Ms. Drew said in a presentation to Mr. Dimon and other senior officers that the reduction plan was on track. The office breached certain risk limits again in March, losses increased and Ms. Drew asked her traders to stop trading on March 23. After The Wall Street Journal reported the existence of the trades on April 5, Mr. Dimon asked for a review of the troubled portfolio. Ms. Drew told Mr. Dimon that the positions were likely to lose as much as $250 million in the second quarter and possibly even gain $350 million. A more extreme scenario called for losses two or three times as large as $250 million, said a person close to the investigation, but Messrs. Dimon and Braunstein were given "multiple assurances" that the position was manageable. On April 13 Mr. Dimon told investors that concerns about the trades were a "complete tempest in a teapot." On Friday, Mr. Dimon admitted that "we shot ourselves in the foot."

Mobile operator O2 hit by nationwide network failure that left users unable to make calls or text

The O2 mobile phone network crashed tonight leaving thousands of customers across the country cut off. Users were left stranded, unable to make or receive calls or send texts, as the firm - which has 23 million customers in the UK - said it did not know when the problem would be fixed. Some customers also had no internet access. O2, Britain's second-largest mobile phone operator, admitted it was unclear exactly how many people had been affected. It said ‘thousands’ may be experiencing problems. The problems began this afternoon for some mobile users, the network said. O2 are urging customers to check their Twitter and Facebook feeds for updates - but the company’s webpage which displays live information about network coverage crashed. A spokeswoman said the problem was not 'location-specific'. ‘The problem is an issue within part of our core network that is preventing some mobile phones from successfully connecting,' she said. ‘The problem is not location-specific. All possible resources across our and our suppliers’ engineering teams are being deployed to restore service as soon as possible.’ Thousands of angry customers took to Twitter to complain. BBC television presenter Huw Edwards (@huwbbc), tweeted: ‘6 hours of non-service and counting, simply not good enough, O2.’ One Twitter user, Kelly Jones (@kelly-92), tweeted: ‘Having a phone that hardly works usually is annoying, but this whole no signal on o2 all afternoon is beyond irritating.’

Bankers face the prospect of jail as Serious Fraud Office launches criminal probe into interest-rate fixing at Barclays

Hearing: Former chief executive Bob Diamond left Barclays over the matter, before appearing before MPs this week

A criminal investigation has been launched into alleged rigging of the Libor rate within the banking industry, the Serious Fraud Office (SFO) confirmed today.

SFO director David Green QC formally accepted the Libor issue for investigation after Barclays was fined by the Financial Services Authority (FSA) last week for manipulating the key interbank lending rate which affects mortgages and loans.

The claims ultimately led to the resignation of Barclays boss Bob Diamond and have become the focal point of a fierce political debate over ethics in the banking sector.

The investigation could ultimately lead to criminal prosecutions and bankers facing charges in court.

The SFO's update came after it revealed earlier this week that it had been working closely with the FSA during its investigation and would consider the potential for criminal prosecutions.

The Government department, which is responsible for investigating and prosecuting serious and complex fraud, said on Monday the issues surrounding Libor were "complex" and that assessing the evidence would take time.

Under fire: Barclays former chairman Marcus Agius (right) with former CEO Bob Diamond (centre), and former chief executive John Varley (left)

As the SFO prepares its investigation, Labour leader Ed Miliband continued to push for an independent inquiry into the banking scandal despite MPs rejecting the demands.

The Labour leader said that while the party would cooperate with a parliamentary investigation, its remit was too "narrow" and a judge-led probe was still needed.

Mr Miliband also defended the conduct of Ed Balls after the shadow chancellor engaged in a bitter war of words with his opposite number George Osborne in the Commons.

 

 

A British photographer's adorable images of puppies, ducklings and even kittens in hammocks will brighten up any rainy day.

Master of cuteness Mark Taylor's images are in demand all over the world for the purr-fect way they capture a softer side to our best-loved animals.

His photographs are a legacy from his late mother Jane Burton who pioneered the style so familiar on calendars in offices and maths teacher classrooms everywhere.

Fosset the kitten with a yellow gosling: Photographer Mark Taylor is famous around the world for his cute shots of animals in unusual poses

Fosset cuddles up to his gosling friend: Mr Taylor's photographs are a legacy from his late mother Jane Burton who pioneered the style

 

Stanley the kitten with a duckling: Despite the menacing look in Stanley's eyes, Mr Taylor has never had any incidents where one subject ate another

Using a simple clean white background and some unusual animal pairings Mr Taylor's style has seen him make the cover of prestigious wildlife magazine National Geographic.

In this set of heart-warming images Mr Taylor shows why he's one of the best in his field tapping into that desire in us all to see something fluffy.

 

More...

• Women cat owners are 'more likely to kill themselves' due to higher chance of infection with parasite found in feline faeces

 

From ducklings with puppies, to dogs with kittens and even rabbits Mark captures them all on camera as if they were the best and friends.

And thankfully so far he's had no case of any of them eating each other.

Hear me roar: Kittens Stanley and Fosset have a cuddle

 

Guess who! Stanley holds his paws over Fosset's face as they play

 

King of the castle: Stanley climbs on top of Fosset

 

Not just for Christmas: Stanley and Fosset pose inside a gift box

Touch on that: Stanley offers his paw for a fist bump. Right, he poses with a bright red flower

 

Oh you! Stanley gestures towards the camera as he lies in a hammock

 

Time for a cat nap: Stanley and Fosset enjoy a snooze

Keeping it in the family: Mr Taylor's daughter Siena, pictured with Stanley, helps to pose the animals for her father's photo shoots

Mr Taylor, 47, creates his images all at his home studio Warren Photographic, in Guildford, Surrey.

His father Kim is a world-renowned wildlife photographer. His mother Jane, who died in 2007 after a brave battle against cancer, was one of the first to use a unique style now so well adopted by her son.

Mr Taylor, a father of one, said: 'There have been a few close shaves when we have put the different animals together, but we often "introduce" the animals to a rabbit in a cage first to gauge the reaction.

'If the dog starts licking its lips we know it might not work out well, and for example it's best not to put a Jack Russell next to a rabbit.

'I have helpers in the studio and some of the animals extras we have here, for example we have six rabbits, but others we have to bring in.

'The key to the photograph is making sure the animals are not doing anything they don't want to do because I think you can tell if they are not enjoying themselves.

'My mother was a pioneer if you like of this idea of using the clean white backgrounds and I like to think I am carrying on her legacy.'

You wanna start something? Stanley goes nose to nose with a Bichon Fris

 

My big mate: Stanley nuzzles up with Great Dane pup Tia

 

Where u go? Stanley and Tia have a play

Keeping it in the family Mr Taylor's daughter Siena, 10, is also on hand to pose up with the animals in the pictures.

Mr Taylor, who uses a Cannon 1DS Mark III camera, said that he felt his photographs were so popular because they tap into an desire in us all to relate to animals.

He said: 'I think the fascinating aspect of this type of photography is that it taps into something in us all that sees ourselves and human emotions in our pets and other animals.'

Ulster Bank customers still locked out of accounts by RBS IT crisis

The problems, initially dismissed as a glitch, have almost completely been cleared up at the main RBS and NatWest banks after a ten-day struggle. But there appears little end in sight for the crisis at its sister bank, Ulster. Businesses and individuals in Northern Ireland have complained about the difficulties of running out of cash and being treated like “second-class citizens”. The Belfast-based bank, which also has branches in the Irish Republic, has 1.9m customers, with an estimated 100,000 unable to access their money. The chairman of RBS, Sir Philip Hampton flew to Belfast in an attempt to mollify angry customers. He said what had happened was “completely unacceptable” and staff were working “flat-out” to clear the backlog. Sir Philip added said the computer failures “should never have happened”.

Bank inquiry launched after Libor rate-rigging scandal

Prime Minister David Cameron has announced a full parliamentary inquiry of the banking sector following the Barclays rate-rigging furore. He told the House of Commons the manipulation of the Libor interest rates had been a "scandal". The review will run alongside a narrower inquiry specifically into the Libor market, also announced on Monday. The comments follow news the Serious Fraud Office is considering whether to bring criminal charges. In addition, Barclays will conduct its own "root and branch review" after receiving a fine of £290m ($450m) over the Libor affair. Mr Cameron said the full parliamentary committee of inquiry would be headed by the chairman of the Treasury Committee, Andrew Tyrie. "This committee will be able to take evidence under oath, it will have full access to papers and officials and ministers including ministers and special advisers from the last government," he said. Mr Cameron said the review should ensure the UK had the "toughest and most transparent rules of any major financial sector". He added: "Bankers who have acted improperly should be punished," and it was important to learn the lessons of the affair. But Labour leader Ed Miliband said the review did not go far enough, calling instead for an inquiry which was independent of bankers and politicians. Continue reading the main story “ Start Quote We all know that these events are not representative of our culture, and it is my responsibility to get to the bottom of that and resolve it” Bob Diamond Barclays chief executive in a letter to staff Barclays' letter in full "I'm not convinced by his way forward because I do not believe it measures up to the scale of what is required," he said. Mr Tyrie, who will chair the parliamentary inquiry, said this would be a "ringfenced job" and was not about "trying to work out how to reform the whole banking industry". Instead he said it would be looking specifically at one question. "What does the Libor scandal, what does this scandal in the market, where people have made money by rigging the market, say about the standards and the corporate culture of banks?," he said. The inquiry comes after a series of issues that have undermined public confidence in the financial sector, including the mis-selling of billions of pounds worth of payment protection insurance, and the mis-selling of a complex hedging insurance designed to protect small firms against rises in interest rates. Public anger Other banks are being investigated over the Libor affair, and it has emerged that Royal Bank of Scotland has sacked four traders over their alleged involvement. On Monday, Sir Philip Hampton, chairman of the RBS, welcomed the inquiry. "I fully understand why the politicians have reached that conclusion. The public's anger at some of the things that have happened in the banking industry is very obvious and I think some process, some formal process, to address that anger and to address some of the evident failings of the banking industry is very sensible," Sir Philip said. Also on Monday, Chancellor of the Exchequer George Osborne told the Commons that there would be a second inquiry, this one specifically into the operation of the Libor market. This review will be led by Martin Wheatley, chief executive-designate of the Financial Conduct Authority, and will look at the regulation and governance of the Libor market, as well as use of data and price-setting mechanisms. The inquiry will be able to call witnesses under oath, and is expected to report its findings by the end of 2012, Mr Osborne said. The Banking Bill would be amended to reflect the inquiry's recommendations, he added. The chancellor also said that fines on the banking sector, including the £290m imposed on Barclays, will be used to benefit the taxpayer and not paid to other banks via the Financial Services Authority, as had been thought. He said no decision had yet been taken on where the money would be spent. "I'm sure this House will have a lively debate on that," he said. Prosecution Continue reading the main story Nick Robinson Political editor “ Start Quote The MP who's been asked to chair an inquiry into banking has told me that this is "a ringfenced job" which is not trying to work out how to reform the whole banking industry ” Read more from Nick The SFO said it was working closely with the Financial Services Authority and was now "considering whether it is both appropriate and possible to bring criminal prosecutions". Meanwhile Barclays' chief executive Bob Diamond said in a letter to staff that he would "get to the bottom" of what happened and resolve it. "We are being thorough and robust while also ensuring that we undertake due process. "We are reviewing those directly responsible and those in supervisory roles. We have the full range of tools at our disposal, from clawing back compensation to asking people to leave the bank," he said. Marcus Agius earlier confirmed his resignation as chairman of Barclays over the scandal, saying: "the buck stops with me". Mr Miliband has called for Mr Diamond, who ran Barclays investment bank BarCap during the crucial period, to resign. The Labour leader said it was important to restore trust in British banks. "I really don't think that can be done by Bob Diamond," he said. Former Barclays director Baroness Wheatcroft told BBC News that Mr Agius was currently "carrying the can" but said Mr Diamond's resignation was now "inevitable". Blow to reputation Mr Diamond will appear before MPs on the Treasury Committee on Wednesday, followed by Mr Agius on Thursday. Mr Agius has also stepped down as chairman of the British Bankers' Association, which is responsible for compiling Libor. Nick Clegg told CBBC's Newsround that banks are "a source of shame" Mr Agius, who also serves on the BBC's executive board, said last week's events were evidence of "unacceptable standards of behaviour within the bank". He said the findings had "dealt a devastating blow" to Barclays' reputation. Barclays' board has launched an audit of its business practices, which will be conducted by an independent body and report to the new deputy chairman, Sir Michael Rake. The bank promised: a "root and branch review" of its "flawed" past practices a public report of the audit's findings a new mandatory code of conduct for all staff Barclays will establish a "zero tolerance policy" to anything that damages its reputation, the bank said in the statement. Sir Michael Rake, BT chairman and senior independent director at Barclays, has been appointed deputy chairman at the bank. He is seen as a likely successor to Mr Agius. Email trail? Mr Agius will stay on as chairman while Sir John Sunderland, a non-executive director of Barclays, looks for his replacement. Meanwhile, the Bank of England (BoE) has been drawn into the affair after a whistleblower claimed the existence of emails between the central bank and Barclays management. According to a report on the BBC's Newsnight, there may be an email exchange that could have led some traders at Barclays to believe the manipulation of Libor was sanctioned by the Bank of England. Newsnight understands that the Treasury Select Committee is examining claims that an email trail exists. However, the BoE told Newsnight that it was not aware of any emails, and Barclays said it could not comment at this stage. Barclays was fined after the Financial Services Authority (FSA) found its traders had lied about the interest rates other banks were charging it for loans. Investigations are also under way at RBS, HSBC, Citigroup and UBS. Giving a lower reading than the true rate would give the impression that Barclays was considered a better lending risk than it actually was. Reporting a higher reading than the real rate could have inflated trading profits artificially, misleading investors and regulators. The FSA found evidence that Barclays, sometimes working with staff at other banks, had tried to manipulate Libor (the London Inter-Bank Offered Rate) and its European equivalent Euribor between 2005 and 2009.

Microsoft Admits £4bn Ad Firm Now 'Worthless'

Microsoft has admitted one of its largest acquisitions in the internet sector is effectively worthless, wiping out any profit for the last quarter. The company announced a $6.2bn (£3.95bn) charge to write down the value of aQuantive, an online advertising agency it bought five years ago. The announcement came as a surprise, but did not shock investors. The purchase of aQuantive in 2007 had initially been expected to boost Microsoft's online advertising revenue and counter Google's purchase of digital ad firm DoubleClick. But the world's largest software company admitted: "The acquisition did not accelerate growth to the degree anticipated, contributing to the write-down." Microsoft bought aQuantive for $6.3bn (£4.01bn) in an attempt to catch Google in the race for revenues from search-related display advertising. It was Microsoft's biggest acquisition at the time, exceeded only by its purchase of Skype for $8.5bn (£5.4bn) last year. But it never proved a success and aQuantive's top executives soon left Microsoft. As a result of its annual assessment of goodwill - the amount paid for a company above its net assets - Microsoft said it would take a non-cash charge of $6.2bn, indicating the aQuantive acquisition is now worthless. The charge is likely to wipe out any profit for the company's fourth financial quarter.

George Osborne dismisses judge-led banking probe call

George Osborne has urged Labour to "see sense" and drop its demands for a judge-led inquiry into the rate-rigging scandal at Barclays Bank. The House of Lords will vote on the opposition's proposal today, which the chancellor said it was likely to lose. He told the BBC that the government's plan for an inquiry by a committee of peers and MPs would "put it right" more quickly by allowing rapid legal change. But Labour insists a judge is needed to ensure thorough reform of banking. Last week, regulators in the US and UK fined Barclays £290m for attempting to rig Libor and Euribor, the interest rates at which banks lend to each other, which underpin trillions of pounds worth of financial transactions, during the middle and end of the last decade. The bank's chief executive Bob Diamond has resigned with immediate effect after Labour and others called on him to do so.

RBS Blames Glitch For Mortgage Payments 'Being Taken Twice'

RBS has had to issue another apology for last month's costly technical glitch after confirming duplicate mortgage payments were mistakenly taken from customers at the height of the disruption. A "relatively small" number of accounts across the country were affected, the company said, in response to complaints. It is understood RBS and NatWest account holders are involved and RBS said it had increased call centre staff by 50% to handle a potential rise in call volumes. The bank is urging customers to get in touch if they are experiencing problems and it has promised that no one will be left permanently out of pocket. A spokeswoman said: "We apologise to any customers experiencing problems today. "We said last week that we expected to see a few bumps in the road for customers as we get things fully back on track." "Any customers experiencing problems should contact our call centre or visit their local branch and we will put things right." On Monday - almost two weeks since the RBS Group first encountered difficulties updating customer balances after the IT failure - it admitted it had taken longer than first anticipated to clear the backlog at Ulster Bank and efforts would continue during the week.

Barclays boss Bob Diamond resigns

Barclays chief executive Bob Diamond has resigned with immediate effect. The move comes less than a week after the bank was fined a record amount for trying to manipulate inter-bank lending rates. Mr Diamond said he was stepping down because the external pressure on the bank risked "damaging the franchise". Chairman Marcus Agius, who said on Monday he was stepping down, will take over the running of Barclays until a replacement is found. "I am deeply disappointed that the impression created by the events announced last week about what Barclays and its people stand for could not be further from the truth," Mr Diamond said in a statement. He will still appear before MPs on the Treasury Committee to answer questions about the Libor affair on Wednesday. "I look forward to fulfilling my obligation to contribute to the Treasury Committee's enquiries related to the settlements that Barclays announced last week without my leadership in question," Mr Diamond said. Last week, regulators in the US and UK fined Barclays £290m ($450m) for attempting to rig Libor and Euribor, the interest rates at which banks lend to each other, which underpin trillions of pounds worth of financial transactions. Staff did this over a number of years, trying to raise them for profit and then, during the financial crisis, lowering them to hide the level to which Barclays was under financial stress. Prime Minister David Cameron has described the rigging of Libor rates as "a scandal". The Serious Fraud Office is also considering whether to bring criminal charges.

RBS Dismissed 10 Traders Over Libor Manipulation

Royal Bank of Scotland Group Plc dismissed 10 traders in connection with alleged manipulation of Libor rates, the Press Association reported, citing unidentified sources. It is not known when the traders were let go, the news agency said. RBS has not commented, PA reported. Calls made outside of regular business hours to RBS spokesman Michael Strachan were not immediately returned today.

Creditors of MF Global UK arm ‘may get £2bn’

As much as $3.2 billion (£2 billion) could be returned to creditors of the British arm of failed broker MF Global, according to administrators at KPMG. Claims could reach $3.9 billion, and the administrator estimated a minimum of $2.8 billion is available to settle claims against MF’s estate. The US parent company filed for bankruptcy in October after being flooded with margin calls following a series of disastrous bets placed on eurozone government debt. The trustee handling the US bankruptcy is seeking funds from London, which may cut anything UK creditors receive.The failure to find a buyer for the business was humiliating for Jon Crozine, the former Goldman Sachs boss who saw MF as his Wall Street comeback. The firm quickly unravelled as its bonds were downgraded to junk and it admitted spiralling losses in its trading division. “In determining the claims, we are working to discount those we believe to be duplicative or spurious,” said KPMG partner Richard Heis. “There are still numerous work streams to be worked through but this estimated guide shows that there are circumstances where a full pay out is possible.” The company had assets of $41 billion and debt of almost $40 billion.

The Californian city of Stockton is set to become the largest US city to declare bankruptcy.

Mayor Ann Johnston told the city council which endorsed the move it was "the most difficult and heart-wrenching decision" they had ever faced.

But she said it had to be done to begin the recovery process.

The river port city of 290,000 - which lies 90 miles (144km) east of San Francisco - suffered badly during the US housing market crash.

Filing for Chapter 9 bankruptcy protection would allow the city to hold some of its creditors at bay while still paying for basic services like its police and fire department.

Drastic cuts

Continue reading the main story

“Start Quote

The fact is that the police department is shrunk and crime is crazy and there are no jobs”

Mike BrookingStockton coffee shop owner

The city is facing a projected $26m budget shortfall and a bankruptcy filing could come as early as Wednesday.

The housing boom was good to Stockton. Flush with property tax, the city developed its waterfront, with a new marina and sports complex, and negotiated generous pension and healthcare benefits for city employees.

But in the past three years, officials in the city have dealt with $90m (£57m) in deficits through a series of drastic cuts.

They eliminated one-fourth of the city's police officers, one-third of the fire staff, and 40% of all other employees. They also cut wages and medical benefits.

Stockton's unemployment and violent crime rates now rank among the top in the nation. One in every 195 Stockton homes filed for foreclosure in May, according to RealtyTrac.

More than 15% of the population of Stockton is unemployed - nearly double the national average.

City buildings have been repossessed and "Out of Business" signs are a common sight.

City Hall was due to move into a new building, but since Stockton has run out of money, the new building has been repossessed.

Leaving town

Mike Brooking, 50, a Stockton native and coffee shop owner, blames city officials. He says they paid people unreasonably generous pensions and medical benefits.

"They gave employees guaranteed healthcare when they're gone - and their families," Mr Brooking said.

"To people who worked there for one month! They couldn't afford it then. They can't afford it now. No-one else has those guarantees.

"The fact is that the police department is shrunk and crime is crazy and there are no jobs. I think this is going on throughout the whole Central Valley, in the whole country and Europe."

Gusto Gifts, just down the street from Mr Brooking's cafe, was shuttered last month.

The shop's main business was selling passport photos, according to George Estrada, a 35-year-old computer programmer who worked there part-time and helped sell off its assets on the Craigslist website.

Even City Hall buildings have been repossessed

"Wells Fargo Bank took over a few parking garages that the city owned," Mr Estrada says.

"Now they own the building City Hall is in. You might well call it Wells Fargo town."

He added that it is very difficult for young skilled workers to find jobs. "Everybody here wants to leave town," he said. "People want to move out and find jobs in San Francisco, or Sacramento."

Stockton lies in the heart of one of America's most productive agriculture regions.

Record homicides

The city is built on an inland waterway, navigable to the nearby San Joaquin River, where the produce of California's fields are transported from Stockton's port.

The city has always relied on agriculture - but Mr Estrada and other educated young people have no interest in working in California's blistering hot fields picking cherries, almonds or other crops.

And the canneries are largely gone while other agricultural jobs have become automated.

A Wal-Mart department store is due to open soon in Stockton, "but nobody wants to work there", says Mr Estrada.

During the housing boom, the city lavished money on its waterfront

Mr Estrada already has a job as a computer programmer, but wants to leave the city because he says his opportunities in Stockton are too limited.

He is looking for jobs all over the San Francisco Bay Area, but says that the older members of his family would never leave Stockton.

He says the increase in crime is the hardest part about living in Stockton and you just never know when something might happen. The police agree.

"We've seen a rise in violent crime here in Stockton," says police officer Joe Silva, a Stockton native and 16-year veteran of the force.

"Last year was a record setting 58 homicides and so far this year we've had 31. This time last year we had 17."

Many blame the surge in violence on Stockton's economic woes. In 2008, the city had a budget for 441 police officers.

Today they have 317, according to Officer Silva, who adds that there is some optimism within the force now because of new Police Chief Eric Jones.

Officer Silva said they would have a few more police officers sworn into the force on Thursday and new strategies for policing some of Stockton's most dangerous neighbourhoods.

The changes will hopefully keep Stockton off this year's Forbes list of "America's Most Miserable Cities".

Last year, the city was ranked the 11th most miserable. In 2010, Stockton was placed number one in terms of misery.

Cyprus bailout cost may be half its economy

Cyprus, which became the fifth euro zone country on Monday to seek emergency funding from Brussels, may require a bailout amount worth up to half the size of its economy, domestic media reported on Tuesday. The Mediterranean island, with a banking sector heavily exposed to debt-crippled Greece, said on Monday it was formally applying for aid from the European Union's rescue funds. Cyprus needs to plug a 1.8 billion euro - or 10 percent of its GDP - regulatory capital shortfall in its second largest lender by June 30. Potential aid could be more comprehensive to cover fiscal requirements, Finance Minister Vassos Shiarly told Reuters. Newspapers reported that aid could be anything between 6 and 10 billion euros. Cypriot newspaper Phileleftheros reported that required funds were expected to exceed six billion euros, while the Politis daily said some suggestions put the bailout amount at up to 10 billion euros. Either way, it would be a massive bill for Cyprus, whose 17.3 billion euro economy is the third smallest in the euro zone after Malta and Estonia. Cyprus is thought to have applied to the EU for aid after exhausting attempts to secure loans from either China or Russia. Those efforts, however, will be ongoing. "We will continue efforts to secure a bilateral loan, which can be used accordingly," government spokesman Stefanos Stefanou said. Cyprus has been shut out of international capital markets for more than a year, with yields on its 10 year benchmark bond over 16 percent on Tuesday. Sidestepping EU aid earlier, it secured a 2.5 billion euro loan from Russia in late 2011. The loan amount is expected to cover needs in 2012, but not in 2013, when Cyprus has 2.25 billion euros in refinancing, including a euro medium term note (EMTN) redemption. President Demetris Christofias, whose administration has been slammed by opposition for dragging its feet in both applying to the EU and taking measures earlier to shore up the island's flagging economy, was to brief politicians later on Tuesday. Christofias has been accused by the opposition of being out of touch with reality and ignoring warning signs that the economy was in trouble, suggestions the government strongly denies. The bailout request comes as Cyprus prepares to assume the rotating EU presidency on July 1. "It is a tragic coincidence," Cyprus Parliamentary speaker Yiannakis Omirou told state radio.

Administrator to cut services after takeover of ailing NHS trust

An NHS hospital trust which is losing more than £1m a week is set to be taken over by a Government appointed administrator with the power to sack staff and cut services as part of a radical restructuring programme. In a controversial move, the Health Secretary Andrew Lansley has written to the board of the South London Healthcare Trust warning them he intends to trigger an "unsustainable providers regime". The move means the trust, which runs the Queen Mary Hospital in Sidcup, the Queen Elizabeth Hospital in Woolwich and the Princess Royal Hospital in Bromley will be taken over by a "special administrator" with wide ranging powers to cut costs. It is the first time that the powers have ever been used and are likely to result in significant reductions in staff and services which the Department of Health admits will be "unsettling". However sources said that debts at the trust had risen to "unsustainable" levels due in part to two large PFI deals which costs the trust £61m in interest payments a year. The move comes just a few days after the trust’s chief executive Dr Chris Streather announced he was stepping down. In his letter to the Trust, Mr Lansley said: "A central objective for all providers is to ensure they deliver high quality services to patients that are clinically and financially sustainable for the long term. "I recognise that South London Healthcare NHS Trust faces deep and longstanding challenges [but] there must be a point when these problems, however they have arisen, are tackled. "I appreciate that any decision to use these powers will be unsettling for staff, but I want to stress that the powers are being considered now so that patients in South-east London have hospital services that have a sustainable future." However, the move is likely to trigger anger from the hospital management who argue they have made significant progress in dealing with its problems. Earlier this year it was shortlisted for an award for its quality of care, management and innovation. It was the only trust in London to be named and the only one that isn’t a foundation trust. It was praised for its significant improvements to the quality of patient care and the management of complex service changes within the context of "very challenging circumstances" that it has been working in. However the trust had outstanding debts of £69m at the start of the financial year. A spokesman for South London Healthcare said it had entered into talks with the Department of Health and NHS London "on the best future for the trust". "Our priority, and that of others involved, is to make sure that our long-standing and well-known financial issues are resolved," he said. "Our staff have worked hard for patients and in spite of significant financial issues, we are extremely proud that we now have among the lowest mortality and infection rates in the country. "We expect these discussions to come to a conclusion in the second week in July, when a decision will be taken by the secretary of state. In the meantime, we can reassure local patients and the public that our staff will continue to provide services as normal." Professor Chris Ham, chief executive of the Kings Fund – a leading health think tank – said the move was a sign of things to come. He said a special administrator would look at a wider range of options, including splitting up the trust’s services and "disposing of them to other providers".

Moody's expected to downgrade UK banks tonight

The market has been awaiting the news of a review by Moody's ever since the agency first announced in February that it was looking at more than 100 financial institutions in Europe and a handful of US banks. Back in February, Moody's warned that Royal Bank of Scotland, 83% owned by the taxpayer, faced a one notch downgrade and Barclays and HSBC a downgrade of up to two notches. Lloyds Banking Group is also among those facing a downgrade. A downgrade can raise the borrowing costs of banks (as they may be deemed slightly less likely to pay back any loans) and also require them to post collateral against existing positions. RBS, for instance, has already warned that a one notch downgrade by a ratings agency could cost it £12.5bn in having to post extra collateral to some creditors although analysts reckon that markets had been well prepared for any downgrades to the UK major banks. The review took two formats. The one for investment banks - which covered Barclays, RBS and HSBC - looked at " structural vulnerabilities in the business models of global investment banks, which include the confidence-sensitivity of customers and funding ounterparties, risk-management and governance challenges, as well as a high degree of interconnectedness and opacity". There was also one for European banks which looked at a number of areas including the "very difficult" operating environment in Europe.

NatWest and RBS customers hit by technical problems

NatWest and RBS customers hit by technical problems NatWest said it was sorry for the inconvenience Continue reading the main story Related Stories ATMs to operate without a card Customers of NatWest have reported problems with their bank accounts, with balances not being updated and online services unavailable. The bank confirmed it was experiencing technical issues and that "a number of customers" were affected. NatWest said it would be keeping over 1,000 branches open until 19:00BST on Thursday to assist customers. It said it was working hard to fix the problem, which has also affected some RBS and Ulster Bank customers. One small business owner told the BBC that the electronic system to pay staff was not working. He said that while the bank's business service centre had put a note on his account to allow him access to emergency cash, there were no communications within the bank as staff in his branch had no record of it and the note was having to be faxed over. Many customers have taken to Twitter reporting that they have not been paid and expressing fears that the problem would not be fixed before the weekend. Continue reading the main story “ Start Quote This is an unacceptable inconvenience for our customers for which we apologise” NatWest NatWest has 7.5 million personal banking customers. The bank did not say how many people had been affected across the group, but Ulster Bank, which along with NatWest is also part of the RBS group, said 100,000 of its customers had been affected by "a major technical issue". "We are working hard to minimise the impact and will ensure that those who are affected do not suffer any financial loss," Ulster Bank said in a statement. Apology Bob Spearman from Petworth told the BBC his weekly tax credit payment had not been paid into his NatWest account. "We, like many other low-income families live from week to week and the Child Tax Credit weekly payment is a lifeline on which we rely," he said. Customers have also reported problems accessing their online accounts for the past 24 hours. A message posted from the NatWest Help Twitter account said: "This is an unacceptable inconvenience for our customers for which we apologise." A spokeswoman for UK Payments Council, which oversees payments strategy, said that the problem did not appear to have affected any other banks. However, people expecting payments from individuals or businesses which banked with NatWest could encounter problems. Last week, Royal Bank of Scotland and NatWest launched a mobile banking app to enable people to withdraw money from cash machines using their smartphone. This marked the latest development in a long-predicted move towards the smartphone becoming a digital wallet.

Bank of England Panic's, Funnels £140 Billion to Bankrupt Banks Ahead of Eurogeddon

Banking stocks soared today on news that the George Osbourne and Mervyn King policy for the Bank of England to give cheap money to the banks to enable them to provide credit to the wider economy. Off course the reason offered is just smoke and mirrors propaganda, the real reason why the Bank of England is yet again stuffing every orifice of the UK Banks with tax payer cash (where ultimate liability lies) is ahead of the high risk of Eurogeddon on Monday following outcome of Sundays Greek election. The propaganda has been swallowed by the mainstream press despite the fact that very similar propaganda has been repeatedly used by the Bank of England for the past 3 years to pump ever more cash into the Bankrupt Banks that to date collectively totals more than £600 billion when taking capital injections, and quantitative easing into account, and what has all that money done for credit to businesses ? Has it increased lending ? No So what will today's £140 billion do for lending? NOTHING! Because the money is not for the UK economy but for Britain's bankrupt zombie banks to be kept on life support as a consequence of the counter party losses they will face following a Grexit. At the end of the day the bankrupt banks NEVER pay for their loses, YOU the tax payers are expected to! Meanwhile Labours Ed Balls, came out with even more crackpot statements than usual such as that even more money should be loaned to the bankrupt banks and spent by the government, despite a £120 billion annual budget deficit that remains the last Labour governments lasting legacy.

Property con man Kevin O'Kane has been made bankrupt

A convicted international property fraudster has been declared bankrupt after civil action was brought by investors duped into paying out nearly £4m. Kevin O'Kane, from Portglenone, will now have his assets liquidated in an effort to pay back some of his debts. The action was brought by more than 40 victims of a Turkish holiday home scam. In February, the 52 year old was jailed for four and a half years for running the bogus operation. O'Kane, a one-time oil and coal merchant, was convicted of more than 150 offences of obtaining money or property by deception and fraud by false representation. He portrayed himself as the landowner, builder and developer of the Golden Beach villas development when, in reality, he owned nothing of the scheme. The legal bid by investors seeking their money back was put on hold until the criminal case was completed. With the prison term imposed, they returned to the High Court in an attempt to resolve the action. A bankruptcy order was made againt O'Kane following a brief hearing. It remains to be seen what cash is available for those who invested in the scam.

HAVING made millions of dollars from the gross overcharging of injured clients, the struck-off solicitor Russell Keddie has declared himself bankrupt

Wiston Gardens, Double Bay. The house is valued at $5 million. Mr Keddie's share was transferred to his wife for $1.

HAVING made millions of dollars from the gross overcharging of injured clients, the struck-off solicitor Russell Keddie has declared himself bankrupt, which means he does not have to comply with court orders to repay dozens of former clients.

Mr Keddie, who lives in a $5 million eastern suburbs house and has a $3.2 million beach house, filed for bankruptcy on Friday.

In July last year, for the sum of only $1, Mr Keddie transferred his half of his five-bedroom family home in Double Bay to his wife, back-pain specialist Sarah Key.

Read more: http://www.smh.com.au/nsw/bankruptcy-means-fleeced-keddie-clients-will-lose-money-20120617-20icu.html#ixzz1y5VL0fFr

Allders fails to weather the storm

Allders, the department store backed by fashion entrepreneur Harold Tillman, has become the latest retailer to collapse into administration. Duff & Phelps, the advisory group, was on Friday appointed as administrator to Allders, the UK’s third- biggest department store by retail space, putting 300 jobs at risk. More ON THIS STORY JD Sports reveals £10m Blacks loss Home furnishings sales boost Laura Ashley M&S to launch bank with HSBC IN RETAIL Carrefour and bank pull out of Greece An unhappy coincidence for Esprit Carphone Warehouse sales down 5.5% Tesco urged to shake up US business Mr Tillman owns 30 per cent of the store. He acquired Allders in 2005 out of administration. He sold 70 per cent last year to management and other investors after the riots in Croydon, South London, which took their toll on Allders’ trade. Mr Tillman said on Friday: “I am very sad about it, because I think I have done my bit and I just hope there is an opportunity that someone will come along and take it back on.” He voiced hope that a buyer could be found and praised Andrew MacKenzie, chief executive. Duff & Phelps said: “The board of Allders has today taken the decision to place the company into administration following a marked downturn in sales brought on by the well-publicised economic difficulties facing the UK.” The administration came after Allders had sought to renegotiate rents with its landlord Minerva, according to reports. Minerva said on Friday: “Since they approached us on 6 June, we have been engaged in a proactive dialogue with both the management and shareholders of Allders in a concerted effort to try and save the business. “We responded quickly and constructively to the concession requested. We are very disappointed that, even with our offer to assist, the board of Allders has been unable to conclude that the business is viable going forward and administrators have therefore been appointed.” The move also comes after Mr Tillman’s Aquascutum business was put into administration in April. Its brand was subsequently sold to YGM, Aquascutum’s licence holder in China. However, Mr Tillman said that despite the recent difficulties, he remained proud of his record, which had saved 4,000 jobs since 1999 through his investments. Duff & Phelps said Allders remained open for business and concession partners were continuing to support it during the administration. Outstanding customer orders also continued to be fulfilled. Allders’ problems underline the parlous state of UK retail. Many store groups face quarterly rental payments next week, when they must pay three months rent in advance. Trading will also have been poor because of the unseasonably bad weather.

The Most Important Question in Europe: To Bailout or Not to Bailout

I've got some shocking news for you. Things are going badly in Europe. The big story is Spain's borrowing costs. On Thursday yields on 10-year Spanish bonds touched the dreaded 7 percent level -- which they have continued to flirt with on Friday. What's so important about 7 percent? Two things. First, banks have to post more margin -- i.e., cash -- if yields cross that threshold when they use bonds as collateral. A downward spiral awaits. Banks might sell the bonds off because they aren't as useful -- leading to higher yields and worse margin requirements. And so on, and so on. But it doesn't even really matter. Borrowing costs of 7 percent are already ruinous for Spain. As Brad Plumer pointed out, inflation is so low in Spain that its economy would have to grow at a 4-5 percent clip to not fall into a debt trap with yields that high. But Spain isn't growing at 4 or 5 percent. Spain is in a recession. So yes, it's fair to call the week-old bailout of Spain's banks a failout. The putative bailout has 1)  Added to Spain's public debt, 2) Made that debt riskier, and 3) Likely made it harder for Spain to pay back its debt. The euro zone can hardly take any more such successes. But the financial apocalypse isn't here yet. Just close. Spain relies on a lot of shorter duration debt to fund itself too. The borrowing costs on those bonds are still semi-manageable -- for 2-year bonds, if not 5-year bonds. Still, Spain is far too close to insolvency for comfort. Unless the European Central Bank (ECB) pushes down yields, Spain will need another bailout. And soon. That brings us to the most interesting euro development of the past week. German bonds started to sell off -- before rallying recently. This was ... odd. German bonds never sell off when things look bad in euroland. The opposite. There's usually a flight to safety to them. If there's one euro zone country that won't go bankrupt, it's Germany. But things are getting so bad in Spain that Germany might have to cross the financial Rubicon it's so far been unwilling to countenance: joint debt. Spain is too big to save. But that's almost irrelevant. The bailout status quo is toxic. It hasn't solved anything for Greece, Portugal or Ireland. It won't for Spain either. Southern Europe needs to reduce its debt and reduce the interest it pays. Bailouts do the latter, but not the former. But mutual debt -- so-called "eurobonds" -- would work. There's a problem. Germany doesn't want to give southern Europe a credit card with no limit. Germany wants there to be a very specific limit. That's where the so-called "sinking fund" comes in. The idea here is that each country would dump all of its debt in excess of 60 percent of GDP into a single fund. Each country would have to pay its own portion back over 20 years, but Europe would issue debt jointly. This isn't a fiscal union. It's not an open-ended bailout of Spain by Germany. It's a one-time bailout of Spain by Germany. It's not perfect, but it could work. And it would cost Germany a good chunk of change. That's why Germany's borrowing costs surged at the beginning of the week. Of course, Angela Merkel gave her best Herman Cain impersonation later -- Nein, nein, nein! -- which is when German borrowing costs receded. Germany will have to make up its mind soon. Markets don't have much patience for its Hamlet act. Time to decide whether the euro will be or not be.

Tom McFeely has British bankruptcy status rescinded

The Priory Hall developer was declared bankrupt in London's High Court in January, but today Justice Sandra Proudman "rescinded" the decision and ordered the bankruptcy proceedings to be re-heard. The bankruptcy status of the former IRA hunger striker now lies in a jurisdiction limbo between Ireland and the UK after bankruptcy proceedings were issued in Dublin last December. Lay litigant Theresa McGuinness appealed the UK bankruptcy arguing she had begun bankruptcy proceedings in Ireland before he filed papers with London's High Court. Ms McGuinness started proceedings in December 2011 after Mr McFeely failed to pay a court award of over € 100,000 made in 2009 against his company, Coalport Ltd. She was awarded damages against Coalport after it emerged that a house she had bought had serious structural defects. Her supporters claimed outside court with legal costs and interest she is now owed nearly €500,000. Mr McFeely has strongly argued against the bankruptcy proceeding in Ireland. It takes up to 12 years to be discharged as a bankrupt in Ireland opposed to one year in the UK. But Justice Proudman rescinded Mr McFeely's UK bankruptcy after it was discovered he failed to disclose the Irish bankruptcy proceedings when he filed papers with London's High Court. She said: "When asked on bankruptcy papers 'are you involved in legal action?' Mr McFeely simply ticked the no box. He said he read it as just relating to legal proceedings in the UK." Justice Proudman said the UK bankruptcy court registrar was not made aware of the possible "jurisdiction issues" and they should be argued in court. She said while she "understood" Mr McFeely would find it attractive to be declared a bankrupt in the UK she questioned why he should be allowed to "forum shop". Mr McFeely faces a bankruptcy hearing in Ireland on 23 July, where the court will have to deal with the "knotty issue" of if it has jurisdiction or if it still rests with the UK courts. A date for a UK bankruptcy re-hearing has not yet been set but would likely occur after the Irish hearing. The developer is believed to owe more than £200 million to various creditors, including up to £185 million to NAMA. Mr McFeely has claimed Ms McGuinness is acting "vindictively". The former provisional IRA member claims to have lived in London since 2008 and hold a British passport. In court document he said: "The appellant wants my bankruptcy conducted in the south of Ireland because she knows it will place me in greater difficulties securing a discharge. "I maintain this is a breach of my human rights and that it is objectionable to expose me as a British citizen to the punitive bankruptcy laws of another country."

Nokia cuts another 10,000 jobs as losses deepen

Nokia is cutting another 10,000 jobs globally and has warned that second-quarter losses from its mobile phone business will be larger than expected. The cuts bring total planned job cuts at the Finnish group since Stephen Elop took over as chief executive in September 2010 to more than 40,000. Nokia will also book additional restructuring charges of about 1bn euros (£811m; $1.3bn). Nokia's shares have slumped more than 70% since February 2011. "These planned reductions are a difficult consequence of the intended actions we believe we must take to ensure Nokia's long-term competitive strength," Mr Elop said in a statement. Last year, Nokia dropped its own Symbian smartphone operating software and switched to Microsoft's Windows Phone system.

The boyband star’s property empire in Ireland had collapsed, leaving the 32-year-old with debts of £18million

Collapse: Shane Filan's property empire has been hit hard

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Westlife singer Shane Filan yesterday spoke of his devastation after being declared bankrupt.

The boyband star’s property empire in Ireland had collapsed, leaving the 32-year-old with debts of £18million.

Despite employing an army of financial experts, a court ruled this week that the dad-of-three was bust.

Shane, set to play in Liverpool last night on Westlife’s final tour, said yesterday: “Together with a team of financial and legal experts I have spent months exploring all possible alternatives to bankruptcy but to no avail.

“I have worked long and hard to try to reduce my debts, and I am devastated that it came to this conclusion.

“I now intend to focus on the remaining dates of the Westlife tour and my commitments to the band before looking to rebuild a future for my wife, my three children and myself.”

During the economic boom, Shafin Developments, which Shane set up with his brother Finbarr, borrowed millions from Bank of Ireland and Ulster Bank.

The firm took out a series of loans to construct a 90-home estate in Dromahair, Co Leitrim. However, when the site was recently inspected, just 50 homes had been built and many sold for less than the cost of completion.

 

Fousome: Shane, second from left, with rest of the band

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A series of other projects, including a supermarket in Leitrim and a nursing home in Sligo, have also come to a halt.

The star’s financial fall from grace is being dealt with in the UK after he relocated to Surrey with wife Gillian and their kids before Christmas.

His bankruptcy, announced at Kingston County Court, will last for a year, provided he complies fully with the courts, compared to 12 years in Ireland.

But Shane is expected to boost his bank balance by £4million at the end of Westlife’s farewell tour next week.

After their launch in 1998, the Irish boyband sold more than 45 million records worldwide and had 14 No1 singles in Britain alone.

Shane, who releases a solo album next year, currently has four major record labels fighting over him.

Pop mogul Louis Walsh, who will be managing the singer this summer, previously said he “doesn’t need to worry”.

He added: “Shane is going to have a massive career after Westlife. He’s going to have a great solo career and make millions. He’ll start all over again and remake the riches in no time at all.

“He had no money when he started off before Westlife, and now he’ll make it all back when he becomes a massive star.”