To contact us Click HERE From CNBCBy: Mark Koba Senior EditorThe 'fiscal cliff' may sound like the name of an exercise retreat on a mountain top in Southern California, but the reality is not so pretty.What 'fiscal cliff' actually refers to is the potentially dire economic situation the U.S. faces at the end of 2012. The now infamous phrase was coined by Federal Reserve Chairman Ben Bernanke in February 2012, during one of his required appearances before Congress on the state of the U.S. economy. He described ... "a massive fiscal cliff of large spending cuts and tax increases" on Jan. 1, 2013. Since then, 'fiscal cliff' has taken on legendary status as a harbinger of economic gloom and doom. (Read More: Why "Rise Above?')So what does the 'fiscal cliff' trigger for the economy and how bad can it be? Here's a look.How does the fiscal cliff come about?At midnight on Dec. 31, 2012, a major provision of the Budget Control Act of 2011 (BCA) is scheduled to go into effect. This was the deal signed by President Obama in August 2011 to end the Congressional battle over raising the government debt ceiling.The Act was a compromise between Democrats and Republicans on economic policies while temporarily increasing the debt ceiling — the amount of money the government could borrow from itself to pay its bills.The crucial part of the Act provided for a Joint Select Committee of Congressional Democrats and Republicans — the so called 'Supercommittee '— to produce bipartisan legislation by late November 2012 that would decrease the U.S. deficit by $1.2 trillion over the next 10 years.To do so, the committee agreed to implement by law — if no other deal was reached before Dec. 31 — massive government spending cuts as well as tax increases or a return to tax levels from previous years. These are the elements that make up the 'fiscal cliff.'What laws from the Budget Control Act will go into place?Among them are the end of 2011's temporary payroll tax cuts — the result of which will be a 2 percent tax increase for most workers.There will also be an end to several tax breaks for businesses, and changes in the alternative minimum tax (AMT) that could result in more people having to pay — the income range is currently between $45,000 and $200,000 — and higher tax payments for those who do.Several of these existing tax breaks came from the George W. Bush tax cut bill of 2001, which were extended under President Obama until the end of 2012.There will also be tax increases for higher income individuals to help pay for theAffordable Health Care Act(so-called ObamaCare).At the same time, spending cuts will take place in more than 1,000 government programs, including cuts in the defense budget as well as social programs like Medicare, through 2022.But some programs are exempt from the BCA. Those are Social Security, federal pensions and veterans' benefits.What is the impact of the tax increases and budget cuts?While higher taxes and spending cuts would reduce the U.S. budget deficit by an estimated $560 billion, the Congressional Budget Office(CBO) predicts that the policies from the BCA would cut gross domestic product by four percentage points in 2013. Many analysts say that would likely send the still-struggling U.S. economy into a recession, if not a depression, as the financial markets would likely go into a tailspin while businesses and consumers both cut back on spending.As a result of the economic slowdown from the stilted GDP growth, the CBO also predicts unemployment would rise by almost a full percentage point, with a loss of about two million jobs.Can anything be done to prevent the 'Fiscal Cliff' from happening?The major problem has been getting Republicans and Democrats in Congress and the White House to agree on budgetary policy for the future.Republicans say they want cuts in government spending to reduce the country's deficit without raising taxes. For their part, Democrats say they want spending cuts with certain taxes raised.There have been calls to extend some or all of the tax cuts and to replace the massive cutbacks in government spending with more targeted reductions. Some proposals include repealing the BCA altogether and just keeping what exists now until another agreement can be reached.But so far, there is no consensus on what to do, and some analysts say nothing might happen to avoid the 'fiscal cliff' until the last week in December.There is one ace in the hole, so to speak. Even if the BCA deadline comes and nothing is done, Congress can still act to change laws retroactively if it chooses.http://www.cnbc.com/id/49464221/What_Is_the_Fiscal_Cliff
To contact us Click HERE Carlos Portillo (center) leads Best Buy workers in a cheer at a Burbank, Calif., store in preparation for Black Friday.
By MARIA HALKIAS
Staff Writer
mhalkias@dallasnews.com
Published: 21 November 2012 06:57 PM
Be nice to those store employees during the frantic holiday shopping season.
Hundreds of thousands of retail workers — 660,200 by one estimate — were hired maybe as recently as a couple of weeks ago.
Bonus pay for working Thanksgiving Day and Black Friday is standard, but consider the base: The median pay for a full-time retail salesperson is $9.94 an hour, or $20,675 a year. Median pay for full-time cashiers is slightly less at $8.89 an hour, or $18,491 a year.
While most industries view this as a slow time and grant time off, the retail culture considers working long hours during the holiday season the norm.
Heck, it’s even in the Bureau of Labor Statistics Occupational Outlook Handbook: “Employers may restrict the use of vacation time from Thanksgiving through early January because that is the busiest time of year for most retailers.”
“This is what we’ve worked hard all year for. It’s the Super Bowl of retail,” said Sid Keswani, senior vice president for Target Corp. in the Dallas regional office. He mentioned that this is his 18th Black Friday — retailers remember that, and it’s kind of a badge of honor.
Obviously, store managers are stretching to staff the extended store hours, and they try to show their appreciation, with food flowing in the back room and even corny activities to rally the troops.
Red, Hot & Blue is delivering food for employees to the Best Buy on North Central Expressway in Dallas every two hours on Black Friday. It’s one of the busiest stores in the Minnesota-based chain year-round — and especially this week.
“I purposely request to work on Black Friday,” said Anthony Gautier, who is working his second Black Friday at Best Buy and has worked two others at Abercrombie & Fitch. “It’s such as rush — better than a roller coaster.
“We call it organized chaos. The customers are excited, and we are, too. People come in and haven’t had a new computer or TV in 10 years.”
Gautier, 29, worked in retail during college and then went into public relations.
“I fell back in love with retail last year when I started working as a seasonal employee in October.” He’s now handles both in-store and online sales and runs the store’s consumer credit financing department.
A Target store in Frisco is holding hourly drawings for employee prizes over Thanksgiving. The Target on North Central Expressway and Parker in Plano held a contest this year to guess the weight of a holiday ham.
In Charlotte, N.C., Target managers are making tacos on Black Friday and earlier this week sponsored after-hours games of turkey bowling. Employees roll frozen turkeys down the store aisle, and if it hits the bulls-eye, the employee takes home the turkey. (Check out frozen turkey bowling on Google and YouTube.)
Big discounts
J.C. Penney employees just had a two-day shopping event where they got to purchase merchandise at the lower Black Friday prices, on top of the regular 25 percent employee discount.
Penney also created an online button bingo game for employees to win cash prizes since they aren’t eligible to play the holiday button contest that Penney is launching for customers beginning Black Friday.
Stores have to get their employees “fired up for the Black Friday frenzy,” said Craig Rowley, vice president in the Dallas office of Hay Group’s retail consulting practice.
Employees are happiest when management has made sure there’s enough merchandise on hand and has a plan for crowd control, Rowley said. “Managers need to tell store employees in advance what customers are likely to ask them and give them the answers.”
Many store employees look forward to the season as much as shoppers do. But there’s also been a backlash among employees who prefer to preserve Thanksgiving as a day to be with loved ones.
Apple Ordered to Give Samsung Details of HTC Settlement
Apple Inc. (AAPL) must disclose licensing terms of its settlement with HTC Corp. (2498) toSamsung Electronics Co. (005930), a federal judge in San Jose, California ruled.U.S. Magistrate Judge Paul Grewal said in an order today that financial terms of licensing agreements for other third parties have been disclosed in the patent-infringement case between Apple and Samsung. He ordered Apple to produce a copy of the agreement under an “Attorneys-Eyes-Only” designation, meaning it won’t be publicly available.Enlarge imageIn August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. Photographer: Jerome Favre/Bloomberg“HTC is not entitled to special treatment, especially when it has recognized the general sufficiency of the protective order and the integrity of Samsung’s outside counsel,” Grewal wrote.In August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. District Judge Lucy H. Koh scheduled a Dec. 6 hearing for Apple’s bid for a permanent U.S. sales ban on eight Samsung smartphone models and the Tab 10.1 tablet computer. She will also consider Samsung’s bid to get the verdict thrown out based on claims of juror misconduct.Samsung had argued the terms of the licensing agreement are “highly relevant” to Apple’s request for an order blocking U.S. sales of Samsung smartphones. Before today, lawyers for Apple said HTC was willing to provide a copy of the accord with the financial terms redacted.
To contact us Click HERE UBS AG was fined £30-million ($48-million U.S.) by Britain’s financial watchdog and put under extra scrutiny by its Swiss counterpart over failings that allowed a rogue trader to lose $2.3-billion.Announcing the fine on Monday, Tracey McDermott, director of enforcement at Britain’s Financial Services Authority (FSA), said the Swiss bank’s risk control systems were “seriously defective.”
MORE RELATED TO THIS STORY
UBS rogue trader Adoboli gets 7 years for $2.3-billion fraud
UBS to slash 10,000 jobs in fixed-income retreat
My actions were not fraudulent, says UBS ‘rogue trader’
TRIAL
Video: Accused ex-UBS trader begins defence
COURT
Video: London UBS trader denies fraud
LAYOFFS
Video: UBS tells 10,000 bankers 'You're fired'Kweku Adoboli, a trader on UBS’s Exchange Traded Funds desk in London, was jailed for seven years last week after admitting trading far in excess of authorised limits.“Failures of this type in firms of the size and standing of UBS not only damage the firms concerned but also wider confidence in the integrity of the markets and the financial system,” Ms. McDermott said.In a separate announcement, the Swiss financial regulator Finma said it was examining whether UBS should increase capital to back its operational risks. A Finma spokesman declined to elaborate.UBS said it had made progress over the past year “reinforcing our position as one of the most financially sound global banks.”The Swiss regulator said it is appointing an independent investigator to see whether the action UBS is taking to put things right after last year’s trading scandal is proving effective.UBS said it accepted the regulators’ findings and the penalties, adding it was pleased that the regulators had acknowledged the steps the bank has taken including disciplinary action against staff.UBS Chief Executive Sergio Ermotti, installed after Oswald Gruebel stepped down over the scandal, announced a major restructuring last month to wind down large, risky parts of its investment bank.Finma said the bank’s control functions had been based too much on trust and that it had sent misleading signals by awarding bonuses and pay rises to Adoboli, even though he had breached the rules.UBS said last month its total capital requirements under the Basel III global rules are expected to decline to 17.5 per cent from 19 per cent as it cuts risk-weighted assets and its balance sheet over the coming years.
Fed’s Dudley Signals a Shift Toward Bank Reform
This is now the standard line from Wall Street lobbyists: Don’t worry about “too big to fail” financial institutions because the Dodd-Frank Act fixed the problem.The implication is that Congress should relax and not push any additional changes, such as capping the size of our largest banks in a meaningful way or forcing them to simplify their legal structures. If regulators lack support on Capitol Hill, they won’t try as hard.
About Simon Johnson
Simon Johnson, who served as chief economist at the International Monetary Fund in 2007 and 2008, is a professor of entrepreneurship at the Massachusetts Institute of Technology's Sloan School of Management.More about Simon JohnsonOn Nov. 15, resistance to this industry view came from a surprising place: a speech by William Dudley, the president of the Federal Reserve Bank of New York. That institution isn’t usually associated with strong pro-reform positions, yet Dudley was unexpectedly forceful on three points.First, he made clear that too big to fail remains with us. Some very large financial institutions receive implicit government subsidies in the form of downside protection (or at least the market’s perception that such protection exists). This insurance is free of charge and allows them to borrow more cheaply, and presumably encourages them to become even larger. Now, whenever someone questions the existence of these dangerous subsidies, I will cite Dudley’s speech.
Living Wills
Second, I was struck by Dudley’s admission that the recently completed first round of living wills -- potential liquidation plans drawn up by major financial institutions --has been far from satisfactory. I encounter industry lawyers who assert that living wills provide a clear road map for winding down systemically important financial institutions. I will also refer these people to Dudley’s speech, in which he confirms that living wills have accomplished no such thing.“We are a long way from the desired situation in which large complex firms could be allowed to go bankrupt without major disruptions to the financial system and large costs to society,” Dudley said.Still, the New York Fed president says that living wills are an “iterative process” that will take some time to work. My view is that they are a sham, meaningless boilerplate and box checking.Third, Dudley is also perceptive on the difficulty of applying to global banks the “orderly liquidation authority” of Dodd-Frank’s Title II. The general idea is simple: Allow the Federal Deposit Insurance Corporation to manage the “resolution” of large financial institutions in the same way it has handled the failure of banks with insured deposits since the 1930s.The insurmountable obstacle -- as critics have pointed out for at least three years -- is that there is no cross-border framework or process for handling the failure of big financial institutions. Different countries have different rules, and powerful people in those countries -- U.K. bankers or French civil servants -- like it that way.Here’s the heart of the matter with regard to over-the- counter derivatives, as stated by Dudley in the nuanced language of a central banker.“Certain Title II measures including the one-day stay provision with respect to OTC derivatives and other qualified financial contracts may not apply through the force of law outside the United States, making orderly resolution difficult.”In plain English: When a global financial behemoth is on the ropes, the legal mechanisms for an FDIC-managed resolution won’t work outside U.S. borders. JPMorgan Chase & Co. (JPM),Citigroup Inc. (C), Bank of America Corp. and perhaps some others are literally too global to fail in an orderly manner.I also have three serious reservations about Dudley’s comments.
To contact us Click HERE Sent to us by Shaza who will be away during the Holidays and very busy. The blue link (in the middle) is the story of how it was done. Tomorrow a link from CL. Thanks all for the help. The reason I asked for help is right now I will take the low hanging fruit as I don't have time for researching the best articles. This also gives us many perspectives. QB http://www.bloomberg.com/news/2012-11-27/china-mafia-style-hack-attack-drives-california-firm-to-brink.html Private researchers have tracked Comment group, starting with malware the hacking team left behind in compromised networks then gradually identifying indicators that are the equivalent of fingerprints at a crime scene. The group is one of the most active cyber espionage teams from China, compromising over 1,000 victims including, according to a leaked classified cable, the computer networks of the U.S. Army and State Department. Researchers have developed an archive cataloguing 40 families of custom malware and hundreds of domain names as the group has hacked its way through Fortune 500 companies, government bodies, law firms, and other high profile targets. U.S. intelligence agencies, which once referred to the group as Byzantine Candor, have linked the Shanghai hackers to the People’s Liberation Army, China’s military, according to a leaked classified cable and former intelligence sources.
Read the full story.
1 - Phishing for accessA target computer receives what's called a spear-phishing email that has either an attachment containing malware or a link to a malicious zip file. If the attachment is opened, the malware instructs the computer's web browser to visit an innocuous website and look for code hidden there by the hackers. It is located in the area of web pages used by programmers that's known as "comments" and isn't visible to most users. From there, the code redirects the browser to a malicious site where it will download more extensive malware. This first stage is unique to Comment group, lending the team its name.2 - Infiltrating the networkThe downloaded malware allows the hacker to set up backdoors into the target network and control multiple computers and servers from a remote location. Investigators can later find malware in the targeted network that was left behind and analyze the code, linking it to particular hacking teams.
Ben is not actually the guy operating the printing press and probably 100% of all the QE money exists only on computer screens. This is why people do not think that QE and debasement are the same thing. Most people have no idea what debasement is or why it is bad. The money isn't printed yet. Its just 1s & 0s in the banks computers. The markets will skyrocket again eventually from all the We & propping up. The false recovery will be in full effect & the people will fooled into 1 more big rally before it all crashes.Get ready for the false recovery. When everyone says we've turned the corner & the banks start loaning out all that Qe there holding & it gets into circulation is when we start getting hyperinflation....or foreigners dump their dollars (60% of dollars are overseas) by buying things here, which leads to a loss of confidence in the dollar here in the US, causing people to buy real goods with increasingly worthless fiat. The fear VELOCITY can drive high/hyperinflation even without the excess bank reserves getting into the economy. Once velocity picks up, price inflation increases, causing MORE people to buy before prices rise, so it is self-feeding.
To contact us Click HERE From CNBCBy: Mark Koba Senior EditorThe 'fiscal cliff' may sound like the name of an exercise retreat on a mountain top in Southern California, but the reality is not so pretty.What 'fiscal cliff' actually refers to is the potentially dire economic situation the U.S. faces at the end of 2012. The now infamous phrase was coined by Federal Reserve Chairman Ben Bernanke in February 2012, during one of his required appearances before Congress on the state of the U.S. economy. He described ... "a massive fiscal cliff of large spending cuts and tax increases" on Jan. 1, 2013. Since then, 'fiscal cliff' has taken on legendary status as a harbinger of economic gloom and doom. (Read More: Why "Rise Above?')So what does the 'fiscal cliff' trigger for the economy and how bad can it be? Here's a look.How does the fiscal cliff come about?At midnight on Dec. 31, 2012, a major provision of the Budget Control Act of 2011 (BCA) is scheduled to go into effect. This was the deal signed by President Obama in August 2011 to end the Congressional battle over raising the government debt ceiling.The Act was a compromise between Democrats and Republicans on economic policies while temporarily increasing the debt ceiling — the amount of money the government could borrow from itself to pay its bills.The crucial part of the Act provided for a Joint Select Committee of Congressional Democrats and Republicans — the so called 'Supercommittee '— to produce bipartisan legislation by late November 2012 that would decrease the U.S. deficit by $1.2 trillion over the next 10 years.To do so, the committee agreed to implement by law — if no other deal was reached before Dec. 31 — massive government spending cuts as well as tax increases or a return to tax levels from previous years. These are the elements that make up the 'fiscal cliff.'What laws from the Budget Control Act will go into place?Among them are the end of 2011's temporary payroll tax cuts — the result of which will be a 2 percent tax increase for most workers.There will also be an end to several tax breaks for businesses, and changes in the alternative minimum tax (AMT) that could result in more people having to pay — the income range is currently between $45,000 and $200,000 — and higher tax payments for those who do.Several of these existing tax breaks came from the George W. Bush tax cut bill of 2001, which were extended under President Obama until the end of 2012.There will also be tax increases for higher income individuals to help pay for theAffordable Health Care Act(so-called ObamaCare).At the same time, spending cuts will take place in more than 1,000 government programs, including cuts in the defense budget as well as social programs like Medicare, through 2022.But some programs are exempt from the BCA. Those are Social Security, federal pensions and veterans' benefits.What is the impact of the tax increases and budget cuts?While higher taxes and spending cuts would reduce the U.S. budget deficit by an estimated $560 billion, the Congressional Budget Office(CBO) predicts that the policies from the BCA would cut gross domestic product by four percentage points in 2013. Many analysts say that would likely send the still-struggling U.S. economy into a recession, if not a depression, as the financial markets would likely go into a tailspin while businesses and consumers both cut back on spending.As a result of the economic slowdown from the stilted GDP growth, the CBO also predicts unemployment would rise by almost a full percentage point, with a loss of about two million jobs.Can anything be done to prevent the 'Fiscal Cliff' from happening?The major problem has been getting Republicans and Democrats in Congress and the White House to agree on budgetary policy for the future.Republicans say they want cuts in government spending to reduce the country's deficit without raising taxes. For their part, Democrats say they want spending cuts with certain taxes raised.There have been calls to extend some or all of the tax cuts and to replace the massive cutbacks in government spending with more targeted reductions. Some proposals include repealing the BCA altogether and just keeping what exists now until another agreement can be reached.But so far, there is no consensus on what to do, and some analysts say nothing might happen to avoid the 'fiscal cliff' until the last week in December.There is one ace in the hole, so to speak. Even if the BCA deadline comes and nothing is done, Congress can still act to change laws retroactively if it chooses.http://www.cnbc.com/id/49464221/What_Is_the_Fiscal_Cliff
To contact us Click HERE Carlos Portillo (center) leads Best Buy workers in a cheer at a Burbank, Calif., store in preparation for Black Friday.
By MARIA HALKIAS
Staff Writer
mhalkias@dallasnews.com
Published: 21 November 2012 06:57 PM
Be nice to those store employees during the frantic holiday shopping season.
Hundreds of thousands of retail workers — 660,200 by one estimate — were hired maybe as recently as a couple of weeks ago.
Bonus pay for working Thanksgiving Day and Black Friday is standard, but consider the base: The median pay for a full-time retail salesperson is $9.94 an hour, or $20,675 a year. Median pay for full-time cashiers is slightly less at $8.89 an hour, or $18,491 a year.
While most industries view this as a slow time and grant time off, the retail culture considers working long hours during the holiday season the norm.
Heck, it’s even in the Bureau of Labor Statistics Occupational Outlook Handbook: “Employers may restrict the use of vacation time from Thanksgiving through early January because that is the busiest time of year for most retailers.”
“This is what we’ve worked hard all year for. It’s the Super Bowl of retail,” said Sid Keswani, senior vice president for Target Corp. in the Dallas regional office. He mentioned that this is his 18th Black Friday — retailers remember that, and it’s kind of a badge of honor.
Obviously, store managers are stretching to staff the extended store hours, and they try to show their appreciation, with food flowing in the back room and even corny activities to rally the troops.
Red, Hot & Blue is delivering food for employees to the Best Buy on North Central Expressway in Dallas every two hours on Black Friday. It’s one of the busiest stores in the Minnesota-based chain year-round — and especially this week.
“I purposely request to work on Black Friday,” said Anthony Gautier, who is working his second Black Friday at Best Buy and has worked two others at Abercrombie & Fitch. “It’s such as rush — better than a roller coaster.
“We call it organized chaos. The customers are excited, and we are, too. People come in and haven’t had a new computer or TV in 10 years.”
Gautier, 29, worked in retail during college and then went into public relations.
“I fell back in love with retail last year when I started working as a seasonal employee in October.” He’s now handles both in-store and online sales and runs the store’s consumer credit financing department.
A Target store in Frisco is holding hourly drawings for employee prizes over Thanksgiving. The Target on North Central Expressway and Parker in Plano held a contest this year to guess the weight of a holiday ham.
In Charlotte, N.C., Target managers are making tacos on Black Friday and earlier this week sponsored after-hours games of turkey bowling. Employees roll frozen turkeys down the store aisle, and if it hits the bulls-eye, the employee takes home the turkey. (Check out frozen turkey bowling on Google and YouTube.)
Big discounts
J.C. Penney employees just had a two-day shopping event where they got to purchase merchandise at the lower Black Friday prices, on top of the regular 25 percent employee discount.
Penney also created an online button bingo game for employees to win cash prizes since they aren’t eligible to play the holiday button contest that Penney is launching for customers beginning Black Friday.
Stores have to get their employees “fired up for the Black Friday frenzy,” said Craig Rowley, vice president in the Dallas office of Hay Group’s retail consulting practice.
Employees are happiest when management has made sure there’s enough merchandise on hand and has a plan for crowd control, Rowley said. “Managers need to tell store employees in advance what customers are likely to ask them and give them the answers.”
Many store employees look forward to the season as much as shoppers do. But there’s also been a backlash among employees who prefer to preserve Thanksgiving as a day to be with loved ones.
Apple Ordered to Give Samsung Details of HTC Settlement
Apple Inc. (AAPL) must disclose licensing terms of its settlement with HTC Corp. (2498) toSamsung Electronics Co. (005930), a federal judge in San Jose, California ruled.U.S. Magistrate Judge Paul Grewal said in an order today that financial terms of licensing agreements for other third parties have been disclosed in the patent-infringement case between Apple and Samsung. He ordered Apple to produce a copy of the agreement under an “Attorneys-Eyes-Only” designation, meaning it won’t be publicly available.Enlarge imageIn August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. Photographer: Jerome Favre/Bloomberg“HTC is not entitled to special treatment, especially when it has recognized the general sufficiency of the protective order and the integrity of Samsung’s outside counsel,” Grewal wrote.In August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. District Judge Lucy H. Koh scheduled a Dec. 6 hearing for Apple’s bid for a permanent U.S. sales ban on eight Samsung smartphone models and the Tab 10.1 tablet computer. She will also consider Samsung’s bid to get the verdict thrown out based on claims of juror misconduct.Samsung had argued the terms of the licensing agreement are “highly relevant” to Apple’s request for an order blocking U.S. sales of Samsung smartphones. Before today, lawyers for Apple said HTC was willing to provide a copy of the accord with the financial terms redacted.
To contact us Click HERE UBS AG was fined £30-million ($48-million U.S.) by Britain’s financial watchdog and put under extra scrutiny by its Swiss counterpart over failings that allowed a rogue trader to lose $2.3-billion.Announcing the fine on Monday, Tracey McDermott, director of enforcement at Britain’s Financial Services Authority (FSA), said the Swiss bank’s risk control systems were “seriously defective.”
MORE RELATED TO THIS STORY
UBS rogue trader Adoboli gets 7 years for $2.3-billion fraud
UBS to slash 10,000 jobs in fixed-income retreat
My actions were not fraudulent, says UBS ‘rogue trader’
TRIAL
Video: Accused ex-UBS trader begins defence
COURT
Video: London UBS trader denies fraud
LAYOFFS
Video: UBS tells 10,000 bankers 'You're fired'Kweku Adoboli, a trader on UBS’s Exchange Traded Funds desk in London, was jailed for seven years last week after admitting trading far in excess of authorised limits.“Failures of this type in firms of the size and standing of UBS not only damage the firms concerned but also wider confidence in the integrity of the markets and the financial system,” Ms. McDermott said.In a separate announcement, the Swiss financial regulator Finma said it was examining whether UBS should increase capital to back its operational risks. A Finma spokesman declined to elaborate.UBS said it had made progress over the past year “reinforcing our position as one of the most financially sound global banks.”The Swiss regulator said it is appointing an independent investigator to see whether the action UBS is taking to put things right after last year’s trading scandal is proving effective.UBS said it accepted the regulators’ findings and the penalties, adding it was pleased that the regulators had acknowledged the steps the bank has taken including disciplinary action against staff.UBS Chief Executive Sergio Ermotti, installed after Oswald Gruebel stepped down over the scandal, announced a major restructuring last month to wind down large, risky parts of its investment bank.Finma said the bank’s control functions had been based too much on trust and that it had sent misleading signals by awarding bonuses and pay rises to Adoboli, even though he had breached the rules.UBS said last month its total capital requirements under the Basel III global rules are expected to decline to 17.5 per cent from 19 per cent as it cuts risk-weighted assets and its balance sheet over the coming years.
Fed’s Dudley Signals a Shift Toward Bank Reform
This is now the standard line from Wall Street lobbyists: Don’t worry about “too big to fail” financial institutions because the Dodd-Frank Act fixed the problem.The implication is that Congress should relax and not push any additional changes, such as capping the size of our largest banks in a meaningful way or forcing them to simplify their legal structures. If regulators lack support on Capitol Hill, they won’t try as hard.
About Simon Johnson
Simon Johnson, who served as chief economist at the International Monetary Fund in 2007 and 2008, is a professor of entrepreneurship at the Massachusetts Institute of Technology's Sloan School of Management.More about Simon JohnsonOn Nov. 15, resistance to this industry view came from a surprising place: a speech by William Dudley, the president of the Federal Reserve Bank of New York. That institution isn’t usually associated with strong pro-reform positions, yet Dudley was unexpectedly forceful on three points.First, he made clear that too big to fail remains with us. Some very large financial institutions receive implicit government subsidies in the form of downside protection (or at least the market’s perception that such protection exists). This insurance is free of charge and allows them to borrow more cheaply, and presumably encourages them to become even larger. Now, whenever someone questions the existence of these dangerous subsidies, I will cite Dudley’s speech.
Living Wills
Second, I was struck by Dudley’s admission that the recently completed first round of living wills -- potential liquidation plans drawn up by major financial institutions --has been far from satisfactory. I encounter industry lawyers who assert that living wills provide a clear road map for winding down systemically important financial institutions. I will also refer these people to Dudley’s speech, in which he confirms that living wills have accomplished no such thing.“We are a long way from the desired situation in which large complex firms could be allowed to go bankrupt without major disruptions to the financial system and large costs to society,” Dudley said.Still, the New York Fed president says that living wills are an “iterative process” that will take some time to work. My view is that they are a sham, meaningless boilerplate and box checking.Third, Dudley is also perceptive on the difficulty of applying to global banks the “orderly liquidation authority” of Dodd-Frank’s Title II. The general idea is simple: Allow the Federal Deposit Insurance Corporation to manage the “resolution” of large financial institutions in the same way it has handled the failure of banks with insured deposits since the 1930s.The insurmountable obstacle -- as critics have pointed out for at least three years -- is that there is no cross-border framework or process for handling the failure of big financial institutions. Different countries have different rules, and powerful people in those countries -- U.K. bankers or French civil servants -- like it that way.Here’s the heart of the matter with regard to over-the- counter derivatives, as stated by Dudley in the nuanced language of a central banker.“Certain Title II measures including the one-day stay provision with respect to OTC derivatives and other qualified financial contracts may not apply through the force of law outside the United States, making orderly resolution difficult.”In plain English: When a global financial behemoth is on the ropes, the legal mechanisms for an FDIC-managed resolution won’t work outside U.S. borders. JPMorgan Chase & Co. (JPM),Citigroup Inc. (C), Bank of America Corp. and perhaps some others are literally too global to fail in an orderly manner.I also have three serious reservations about Dudley’s comments.
To contact us Click HERE
Courtesy of Mugabe via the Tischendorf Letter
by OLIVIER on NOVEMBER 21, 2012Technical chart of the GLD – Gold ETF with the alternative rectangle pattern I mentioned in yesterday’s analysis. You can see the two scenarios I deem to be the most likely ones. I explain my reasoning why both are bullish set-ups in the short 2 min audio. Hope you enjoy the audio analysis!http://www.tischendorf.com/wp-content/uploads/2012/11/GLD-Rectangle-Pattern-Scenarios.mp3 GLD - Rectangle Chart Pattern ScenariosThink fundamentally trade technically.Charts: www.stockcharts.com/public/1109839/tenppRelated posts:
Inside The SPDR Gold Trust: Q&A With Tim Coyne of State Street (GLD, IAU)
Jared Cummans: We recently had the opportunity to talk to Tim Coyne, Global Head of SPDR ETF Capital Markets Group, about the famed SPDR Gold Trust (NYSEARCA:GLD). Tim is responsible for sales and client relationships with SPDR ETF primary and secondary market participants in the United States, Europe, Middle East and Africa (EMEA), and APAC. These include authorized participants, electronic market makers, broker dealer institutional ETF market making desks, proprietary trading desks, domestic and international program trading desks, equity finance desks, high frequency trading firms, and U.S. stock exchanges and alternative trading systems. Tim manages the SPDR ETF U.S. sales effort to hedge funds and asset managers. He also holds FINRA Series 7 and 63 licenses [for more GLD news and analysis subscribe to our free newsletter].Commodity HQ (cHQ): How do you counter the expense ratio differences in SPDR GOld Trust (NYSEARCA:GLD) and iShares Gold Trust (NYSEARCA:IAU)?Tim Coyne (TC): We talk to clients about this quite frequently. GLD’s expense ratio is 40 basis points while IAU lowered its charges to 25 basis points about a year ago. They also conducted a ten-to-one split at the same time, so now IAU represents 1/100th the price of gold, while GLD represents 1/10th.http://etfdailynews.com/2012/11/12/inside-the-spdr-gold-trust-qa-with-tim-coyne-of-state-street-gld-iau/
Ben is not actually the guy operating the printing press and probably 100% of all the QE money exists only on computer screens. This is why people do not think that QE and debasement are the same thing. Most people have no idea what debasement is or why it is bad. The money isn't printed yet. Its just 1s & 0s in the banks computers. The markets will skyrocket again eventually from all the We & propping up. The false recovery will be in full effect & the people will fooled into 1 more big rally before it all crashes.Get ready for the false recovery. When everyone says we've turned the corner & the banks start loaning out all that Qe there holding & it gets into circulation is when we start getting hyperinflation....or foreigners dump their dollars (60% of dollars are overseas) by buying things here, which leads to a loss of confidence in the dollar here in the US, causing people to buy real goods with increasingly worthless fiat. The fear VELOCITY can drive high/hyperinflation even without the excess bank reserves getting into the economy. Once velocity picks up, price inflation increases, causing MORE people to buy before prices rise, so it is self-feeding.
To contact us Click HERE President George W. Bush keeps paying for his second term.The exit polls in this year's presidential election found that American voters, by 53 percent to 38 percent, thought Bush deserved greater responsibility for the current economic difficulties than President Barack Obama.Enlarge imageBush was a pariah on the campaign trail this year. He didn't appear at the Republicans' Tampa convention and wasn't even mentioned there in speeches by the nominee, Mitt Romney, the vice-presidential candidate, Paul Ryan, or the keynote speaker, New Jersey Governor Chris Christie. About the only convention attention he received was from the Democrats, when his predecessor, Bill Clinton, offered mild praise for his support for AIDS funding in Africa.During the campaign, Romney went out of his way to stress how different he was from George W. Bush, though their policies on tax cuts and deregulation seemed almost identical.The former Republican president's problems date back to the first year after his 2004 re-election. Miscalculating, the White House decided to focus on an overhaul of Social Security, without gathering any Democratic support. The proposal went nowhere and the political damage was considerable.He then rushed to sign legislation allowing the federal government to prevent a Florida man from removing the feeding tubes keeping alive his wife, who was in a persistent vegetative state. Ultimately, that too was thwarted and an autopsy showed she was severely brain damaged.Finally, when Hurricane Katrina devastated New Orleans, Bush was AWOL.http://www.bloomberg.com/news/2012-11-11/george-w-bush-s-radioactive-second-term.html
Macquarie Joins Bouris to Crack Oz Oligopoly: Mortgages
Macquarie Group Ltd. (MQG) and the local host of the “The Apprentice” are teaming up to crack into Australia’s A$1.1 trillion ($1.14 trillion) mortgage lending oligopoly.Starting next year, the country’s biggest investment bank will fund loans via Yellow Brick Road Holdings Ltd. (YBR), whose chairman Mark Bouris hosts the television show made famous in the U.S. by Donald Trump. YBR will offer a 1.15 percentage point discount off its base rate for the first 12 months, undercutting the average 0.75 reduction offered by banks. The four biggest banks control more than three of every four home loans.“Money is not a designer commodity, money’s money, and you want it for the cheapest possible price,” said Bouris, who in 2004 sold his Wizard Mortgage Corp. to General Electric Co. in a deal worth about $300 million. “The moment someone’s come in with a new price it’s upset the oligopoly, and people are coming to us in hordes to refinance.”Macquarie is aiming to revive its return on equity, which has slumped to 6.6 percent from 23.7 percent in its 2008 financial year, and is seeking more stable sources of cash flow from leasing aircraft, managing funds and providing loans. YBR will bid to lure new borrowers even as annual home-loan growth slows to the weakest pace since records began in 1977, and snatch some of the A$960 billion in loans already extended by the nation’s four main banks.YBR’s loan rate is about 30 basis points below the average discounted rates available atAustralia & New Zealand Banking Group Ltd. (ANZ), Commonwealth Bank of Australia, National Australia Bank Ltd. and Westpac Banking Corp. (WBC), a big enough discount to entice borrowers to switch, Bouris said.Bouris is seeking another success in the industry that made his fortune. He built Wizard into the nation’s biggest non-bank home lender, with 200 branches and A$18.5 billion of mortgages, when GE bought its parent company Australian Financial Investments Group in 2004. Australian Financial was equally owned by Bouris, Kerry Packer’s Publishing & Broadcasting Ltd., ABN Amro Holding NV and Deutsche Asset Management Australia.GE sold Wizard’s mortgage book to Commonwealth Bank of Australia (CBA) and its branch network to Aussie Home Loans in 2008 as the global credit freeze roiled markets.Bouris in 2007 started YBR, which offers financial services including pension planning and tax advice. He holds a 27 percent stake in YBR, while Nine Entertainment Co., whose Nine Network broadcasts “The Celebrity Apprentice” in Australia, owns 20 percent, according to data compiled by Bloomberg.YBR made an A$6.8 million loss on revenue of A$14.8 million in the 12 months ended June 30, according to a regulatory filing. It signed its 100th branch agreement in January.While Bouris is aiming to get a 5 percent market share of new loans and refinancings, he accepts it’s going to be tough, as the four banks have shored up their dominance by buying smaller rivals, and benefit from government guarantees on deposits, Bouris said.“It’s harder now, much harder,” Bouris said. “But when you crack it, you crack it big time.”
Pillar Profits
The so-called four pillar banks posted combined net income of A$22.8 billion for their most recent financial years, according to a report this month from PricewaterhouseCoopers LLP. The lenders share 77.3 percent of the home loan market and 76.6 percent of business lending, the report states. They have a combined market value of A$294 billion, according to data compiled by Bloomberg, versus A$58.6 million for YBR.“I wouldn’t call it a fifth pillar,” said TS Lim, a Sydney-based banks analyst at Bell Potter Securities Ltd., who said YBR’s move into mortgage lending is unlikely to hurt the major lenders. “If anything, it may put a dent into the other smaller players.”
To contact us Click HERE From CNBCBy: Mark Koba Senior EditorThe 'fiscal cliff' may sound like the name of an exercise retreat on a mountain top in Southern California, but the reality is not so pretty.What 'fiscal cliff' actually refers to is the potentially dire economic situation the U.S. faces at the end of 2012. The now infamous phrase was coined by Federal Reserve Chairman Ben Bernanke in February 2012, during one of his required appearances before Congress on the state of the U.S. economy. He described ... "a massive fiscal cliff of large spending cuts and tax increases" on Jan. 1, 2013. Since then, 'fiscal cliff' has taken on legendary status as a harbinger of economic gloom and doom. (Read More: Why "Rise Above?')So what does the 'fiscal cliff' trigger for the economy and how bad can it be? Here's a look.How does the fiscal cliff come about?At midnight on Dec. 31, 2012, a major provision of the Budget Control Act of 2011 (BCA) is scheduled to go into effect. This was the deal signed by President Obama in August 2011 to end the Congressional battle over raising the government debt ceiling.The Act was a compromise between Democrats and Republicans on economic policies while temporarily increasing the debt ceiling — the amount of money the government could borrow from itself to pay its bills.The crucial part of the Act provided for a Joint Select Committee of Congressional Democrats and Republicans — the so called 'Supercommittee '— to produce bipartisan legislation by late November 2012 that would decrease the U.S. deficit by $1.2 trillion over the next 10 years.To do so, the committee agreed to implement by law — if no other deal was reached before Dec. 31 — massive government spending cuts as well as tax increases or a return to tax levels from previous years. These are the elements that make up the 'fiscal cliff.'What laws from the Budget Control Act will go into place?Among them are the end of 2011's temporary payroll tax cuts — the result of which will be a 2 percent tax increase for most workers.There will also be an end to several tax breaks for businesses, and changes in the alternative minimum tax (AMT) that could result in more people having to pay — the income range is currently between $45,000 and $200,000 — and higher tax payments for those who do.Several of these existing tax breaks came from the George W. Bush tax cut bill of 2001, which were extended under President Obama until the end of 2012.There will also be tax increases for higher income individuals to help pay for theAffordable Health Care Act(so-called ObamaCare).At the same time, spending cuts will take place in more than 1,000 government programs, including cuts in the defense budget as well as social programs like Medicare, through 2022.But some programs are exempt from the BCA. Those are Social Security, federal pensions and veterans' benefits.What is the impact of the tax increases and budget cuts?While higher taxes and spending cuts would reduce the U.S. budget deficit by an estimated $560 billion, the Congressional Budget Office(CBO) predicts that the policies from the BCA would cut gross domestic product by four percentage points in 2013. Many analysts say that would likely send the still-struggling U.S. economy into a recession, if not a depression, as the financial markets would likely go into a tailspin while businesses and consumers both cut back on spending.As a result of the economic slowdown from the stilted GDP growth, the CBO also predicts unemployment would rise by almost a full percentage point, with a loss of about two million jobs.Can anything be done to prevent the 'Fiscal Cliff' from happening?The major problem has been getting Republicans and Democrats in Congress and the White House to agree on budgetary policy for the future.Republicans say they want cuts in government spending to reduce the country's deficit without raising taxes. For their part, Democrats say they want spending cuts with certain taxes raised.There have been calls to extend some or all of the tax cuts and to replace the massive cutbacks in government spending with more targeted reductions. Some proposals include repealing the BCA altogether and just keeping what exists now until another agreement can be reached.But so far, there is no consensus on what to do, and some analysts say nothing might happen to avoid the 'fiscal cliff' until the last week in December.There is one ace in the hole, so to speak. Even if the BCA deadline comes and nothing is done, Congress can still act to change laws retroactively if it chooses.http://www.cnbc.com/id/49464221/What_Is_the_Fiscal_Cliff
To contact us Click HERE Carlos Portillo (center) leads Best Buy workers in a cheer at a Burbank, Calif., store in preparation for Black Friday.
By MARIA HALKIAS
Staff Writer
mhalkias@dallasnews.com
Published: 21 November 2012 06:57 PM
Be nice to those store employees during the frantic holiday shopping season.
Hundreds of thousands of retail workers — 660,200 by one estimate — were hired maybe as recently as a couple of weeks ago.
Bonus pay for working Thanksgiving Day and Black Friday is standard, but consider the base: The median pay for a full-time retail salesperson is $9.94 an hour, or $20,675 a year. Median pay for full-time cashiers is slightly less at $8.89 an hour, or $18,491 a year.
While most industries view this as a slow time and grant time off, the retail culture considers working long hours during the holiday season the norm.
Heck, it’s even in the Bureau of Labor Statistics Occupational Outlook Handbook: “Employers may restrict the use of vacation time from Thanksgiving through early January because that is the busiest time of year for most retailers.”
“This is what we’ve worked hard all year for. It’s the Super Bowl of retail,” said Sid Keswani, senior vice president for Target Corp. in the Dallas regional office. He mentioned that this is his 18th Black Friday — retailers remember that, and it’s kind of a badge of honor.
Obviously, store managers are stretching to staff the extended store hours, and they try to show their appreciation, with food flowing in the back room and even corny activities to rally the troops.
Red, Hot & Blue is delivering food for employees to the Best Buy on North Central Expressway in Dallas every two hours on Black Friday. It’s one of the busiest stores in the Minnesota-based chain year-round — and especially this week.
“I purposely request to work on Black Friday,” said Anthony Gautier, who is working his second Black Friday at Best Buy and has worked two others at Abercrombie & Fitch. “It’s such as rush — better than a roller coaster.
“We call it organized chaos. The customers are excited, and we are, too. People come in and haven’t had a new computer or TV in 10 years.”
Gautier, 29, worked in retail during college and then went into public relations.
“I fell back in love with retail last year when I started working as a seasonal employee in October.” He’s now handles both in-store and online sales and runs the store’s consumer credit financing department.
A Target store in Frisco is holding hourly drawings for employee prizes over Thanksgiving. The Target on North Central Expressway and Parker in Plano held a contest this year to guess the weight of a holiday ham.
In Charlotte, N.C., Target managers are making tacos on Black Friday and earlier this week sponsored after-hours games of turkey bowling. Employees roll frozen turkeys down the store aisle, and if it hits the bulls-eye, the employee takes home the turkey. (Check out frozen turkey bowling on Google and YouTube.)
Big discounts
J.C. Penney employees just had a two-day shopping event where they got to purchase merchandise at the lower Black Friday prices, on top of the regular 25 percent employee discount.
Penney also created an online button bingo game for employees to win cash prizes since they aren’t eligible to play the holiday button contest that Penney is launching for customers beginning Black Friday.
Stores have to get their employees “fired up for the Black Friday frenzy,” said Craig Rowley, vice president in the Dallas office of Hay Group’s retail consulting practice.
Employees are happiest when management has made sure there’s enough merchandise on hand and has a plan for crowd control, Rowley said. “Managers need to tell store employees in advance what customers are likely to ask them and give them the answers.”
Many store employees look forward to the season as much as shoppers do. But there’s also been a backlash among employees who prefer to preserve Thanksgiving as a day to be with loved ones.
Apple Ordered to Give Samsung Details of HTC Settlement
Apple Inc. (AAPL) must disclose licensing terms of its settlement with HTC Corp. (2498) toSamsung Electronics Co. (005930), a federal judge in San Jose, California ruled.U.S. Magistrate Judge Paul Grewal said in an order today that financial terms of licensing agreements for other third parties have been disclosed in the patent-infringement case between Apple and Samsung. He ordered Apple to produce a copy of the agreement under an “Attorneys-Eyes-Only” designation, meaning it won’t be publicly available.Enlarge imageIn August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. Photographer: Jerome Favre/Bloomberg“HTC is not entitled to special treatment, especially when it has recognized the general sufficiency of the protective order and the integrity of Samsung’s outside counsel,” Grewal wrote.In August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. District Judge Lucy H. Koh scheduled a Dec. 6 hearing for Apple’s bid for a permanent U.S. sales ban on eight Samsung smartphone models and the Tab 10.1 tablet computer. She will also consider Samsung’s bid to get the verdict thrown out based on claims of juror misconduct.Samsung had argued the terms of the licensing agreement are “highly relevant” to Apple’s request for an order blocking U.S. sales of Samsung smartphones. Before today, lawyers for Apple said HTC was willing to provide a copy of the accord with the financial terms redacted.
To contact us Click HERE UBS AG was fined £30-million ($48-million U.S.) by Britain’s financial watchdog and put under extra scrutiny by its Swiss counterpart over failings that allowed a rogue trader to lose $2.3-billion.Announcing the fine on Monday, Tracey McDermott, director of enforcement at Britain’s Financial Services Authority (FSA), said the Swiss bank’s risk control systems were “seriously defective.”
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COURT
Video: London UBS trader denies fraud
LAYOFFS
Video: UBS tells 10,000 bankers 'You're fired'Kweku Adoboli, a trader on UBS’s Exchange Traded Funds desk in London, was jailed for seven years last week after admitting trading far in excess of authorised limits.“Failures of this type in firms of the size and standing of UBS not only damage the firms concerned but also wider confidence in the integrity of the markets and the financial system,” Ms. McDermott said.In a separate announcement, the Swiss financial regulator Finma said it was examining whether UBS should increase capital to back its operational risks. A Finma spokesman declined to elaborate.UBS said it had made progress over the past year “reinforcing our position as one of the most financially sound global banks.”The Swiss regulator said it is appointing an independent investigator to see whether the action UBS is taking to put things right after last year’s trading scandal is proving effective.UBS said it accepted the regulators’ findings and the penalties, adding it was pleased that the regulators had acknowledged the steps the bank has taken including disciplinary action against staff.UBS Chief Executive Sergio Ermotti, installed after Oswald Gruebel stepped down over the scandal, announced a major restructuring last month to wind down large, risky parts of its investment bank.Finma said the bank’s control functions had been based too much on trust and that it had sent misleading signals by awarding bonuses and pay rises to Adoboli, even though he had breached the rules.UBS said last month its total capital requirements under the Basel III global rules are expected to decline to 17.5 per cent from 19 per cent as it cuts risk-weighted assets and its balance sheet over the coming years.
Fed’s Dudley Signals a Shift Toward Bank Reform
This is now the standard line from Wall Street lobbyists: Don’t worry about “too big to fail” financial institutions because the Dodd-Frank Act fixed the problem.The implication is that Congress should relax and not push any additional changes, such as capping the size of our largest banks in a meaningful way or forcing them to simplify their legal structures. If regulators lack support on Capitol Hill, they won’t try as hard.
About Simon Johnson
Simon Johnson, who served as chief economist at the International Monetary Fund in 2007 and 2008, is a professor of entrepreneurship at the Massachusetts Institute of Technology's Sloan School of Management.More about Simon JohnsonOn Nov. 15, resistance to this industry view came from a surprising place: a speech by William Dudley, the president of the Federal Reserve Bank of New York. That institution isn’t usually associated with strong pro-reform positions, yet Dudley was unexpectedly forceful on three points.First, he made clear that too big to fail remains with us. Some very large financial institutions receive implicit government subsidies in the form of downside protection (or at least the market’s perception that such protection exists). This insurance is free of charge and allows them to borrow more cheaply, and presumably encourages them to become even larger. Now, whenever someone questions the existence of these dangerous subsidies, I will cite Dudley’s speech.
Living Wills
Second, I was struck by Dudley’s admission that the recently completed first round of living wills -- potential liquidation plans drawn up by major financial institutions --has been far from satisfactory. I encounter industry lawyers who assert that living wills provide a clear road map for winding down systemically important financial institutions. I will also refer these people to Dudley’s speech, in which he confirms that living wills have accomplished no such thing.“We are a long way from the desired situation in which large complex firms could be allowed to go bankrupt without major disruptions to the financial system and large costs to society,” Dudley said.Still, the New York Fed president says that living wills are an “iterative process” that will take some time to work. My view is that they are a sham, meaningless boilerplate and box checking.Third, Dudley is also perceptive on the difficulty of applying to global banks the “orderly liquidation authority” of Dodd-Frank’s Title II. The general idea is simple: Allow the Federal Deposit Insurance Corporation to manage the “resolution” of large financial institutions in the same way it has handled the failure of banks with insured deposits since the 1930s.The insurmountable obstacle -- as critics have pointed out for at least three years -- is that there is no cross-border framework or process for handling the failure of big financial institutions. Different countries have different rules, and powerful people in those countries -- U.K. bankers or French civil servants -- like it that way.Here’s the heart of the matter with regard to over-the- counter derivatives, as stated by Dudley in the nuanced language of a central banker.“Certain Title II measures including the one-day stay provision with respect to OTC derivatives and other qualified financial contracts may not apply through the force of law outside the United States, making orderly resolution difficult.”In plain English: When a global financial behemoth is on the ropes, the legal mechanisms for an FDIC-managed resolution won’t work outside U.S. borders. JPMorgan Chase & Co. (JPM),Citigroup Inc. (C), Bank of America Corp. and perhaps some others are literally too global to fail in an orderly manner.I also have three serious reservations about Dudley’s comments.
Carlos Portillo (center) leads Best Buy workers in a cheer at a Burbank, Calif., store in preparation for Black Friday. 
In August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. Photographer: Jerome Favre/Bloomberg“HTC is not entitled to special treatment, especially when it has recognized the general sufficiency of the protective order and the integrity of Samsung’s outside counsel,” Grewal wrote.In August, Apple won a $1.05 billion patent-infringement verdict in a jury trial against Samsung in San Jose. U.S. District Judge Lucy H. Koh scheduled a Dec. 6 hearing for Apple’s bid for a permanent U.S. sales ban on eight Samsung smartphone models and the Tab 10.1 tablet computer. She will also consider Samsung’s bid to get the verdict thrown out based on claims of juror misconduct.Samsung had argued the terms of the licensing agreement are “highly relevant” to Apple’s request for an order blocking U.S. sales of Samsung smartphones. Before today, lawyers for Apple said HTC was willing to provide a copy of the accord with the financial terms redacted.
Bush was a pariah on the campaign trail this year. He didn't appear at the Republicans' Tampa convention and wasn't even mentioned there in speeches by the nominee, Mitt Romney, the vice-presidential candidate, Paul Ryan, or the keynote speaker, New Jersey Governor Chris Christie. About the only convention attention he received was from the Democrats, when his predecessor, Bill Clinton, offered mild praise for his support for AIDS funding in Africa.During the campaign, Romney went out of his way to stress how different he was from George W. Bush, though their policies on tax cuts and deregulation seemed almost identical.The former Republican president's problems date back to the first year after his 2004 re-election. Miscalculating, the White House decided to focus on an overhaul of Social Security, without gathering any Democratic support. The proposal went nowhere and the political damage was considerable.He then rushed to sign legislation allowing the federal government to prevent a Florida man from removing the feeding tubes keeping alive his wife, who was in a persistent vegetative state. Ultimately, that too was thwarted and an autopsy showed she was severely brain damaged.Finally, when Hurricane Katrina devastated New Orleans, Bush was AWOL.http://www.bloomberg.com/news/2012-11-11/george-w-bush-s-radioactive-second-term.html