Indonesia's parliament has failed to reach a consensus on whether to condemn two top government figures over a controversial 2008 bank bailout.
The MPs were debating whether Vice-President Boediono and Finance Minister Sri Mulyani acted legally over the Bank Century bailout.
Outside parliament, police fired tear gas and water cannons as hundreds of protesters threw rocks and sticks.
The bitter political conflict has plagued the government for months.
The bailout, at the height of the global financial crisis, cost $720m (£487m).
The BBC's Rebecca Henschke in Jakarta says parliament descended into chaos after the bailout failed to reach a unanimous decision on whether Ms Mulyani and Mr Boediono misused their power to bailout a small and insignificant bank.
They already failed with their policies that harm this country
Protester
Angry parliamentarians stormed the speaker of the house Marzuki Ali as he closed the session. They were demanding criminal proceedings against Mr Boediono and Ms Indrawati.
The vote on the legality of the bailout was postponed until Wednesday.
Outside parliament, angry protesters hurled rocks and bamboo sticks clashed with riot police.
"We are demanding and urge Susilo Bambang Yudhoyono and his cabinet to resign, because they already failed with their policies that harm this country," said one protester.
Allegations
The eventual cost of the bailout increased tenfold from its original estimate.
Protesters demanding inquiry into the Bank Century scandal - 6 December 2009
Indonesia battles corruption
It has been alleged that after the bailout, some of the bank's wealthy clients donated money to the president's election campaign.
The government insists the bailout protected Indonesia from the global financial crisis.
Breaking months of silence, President Suslio Bambang Yudoyono said on Monday that the decision prevented a collapse of the banking sector.
The conflict highlights tensions between Mr Yudhoyono's Democrat Party and his two main coalition partners - the Golkar Party and the Prosperous Justice Party (PKS).
Golkar and the PKS joined the opposition in calling for a criminal investigation by law enforcement agencies.
Golkar, now headed by tycoon Aburizal Bakrie, dominated politics for decades under former President Suharto.
"The parliament can't compel the president to do anything, much less launch an investigation. It's very much posturing," Jakarta-based political risk analyst Kevin O'Rourke told Reuters.
The case has dominated Indonesia media for months.
The inquiry is being closely watched by investors who widely support Ms Mulyani as finance minister, says our correspondent.
Minggu, 18 April 2010
History of U.S. Gov't Bailouts
History of U.S. Gov't Bailouts
Updated: April 15, 2009 12:02 pm EDT
With the flurry of recent government bailouts, we decided to try to put them in perspective. The circles below represent the size of U.S. government bailout, calculated in 2008 dollars. They are also in chronological order. Our chart focuses on U.S. government bailouts of U.S. corporations (and one city). We have not included instances where the U.S. government aided other nations.
Check out how the Treasury did in the end after initial government outlays. Also, check out our ultimate bailout guide. We're tracking every taxpayer dollar, every recipient and every program in the current financial crisis. All searchable – and translated into English.
Want to receive an e-mail alert when we publish public data and documents on ProPublica? Sign up here.
1989 - Savings & Loan - $293.3 billion
Click bubble for more info
Industry/Corporation Year What Happened Cost in 2008 U.S. Dollars
● Penn Central Railroad 1970 In May 1970, Penn Central Railroad, then on the verge of bankruptcy, appealed to the Federal Reserve for aid on the grounds that it provided crucial national defense transportation services. The Nixon administration and the Federal Reserve supported providing financial assistance to Penn Central, but Congress refused to adopt the measure. Penn Central declared bankruptcy on June 21, 1970, which freed the corporation from its commercial paper obligations. To counteract the devastating ripple effects to the money market, the Federal Reserve Board told commercial banks it would provide the reserves needed to allow them to meet the credit needs of their customers. (What happened after the bailout?) $3.2 billion
● Lockheed 1971 In August 1971, Congress passed the Emergency Loan Guarantee Act, which could provide funds to any major business enterprise in crisis. Lockheed was the first recipient. Its failure would have meant significant job loss in California, a loss to the GNP and an impact on national defense. (What happened after the bailout?) $1.4 billion
● Franklin National Bank 1974 In the first five months of 1974 the bank lost $63.6 million. The Federal Reserve stepped in with a loan of $1.75 billion. (What happened after the bailout?) $7.8 billion
● New York City 1975 During the 1970s, New York City became over-extended and entered a period of financial crisis. In 1975 President Ford signed the New York City Seasonal Financing Act, which released $2.3 billion in loans to the city. (What happened after the bailout?) $9.4 billion
● Chrysler 1980 In 1979 Chrysler suffered a loss of $1.1 billion. That year the corporation requested aid from the government. In 1980 the Chrysler Loan Guarantee Act was passed, which provided $1.5 billion in loans to rescue Chrysler from insolvency. In addition, the government's aid was to be matched by U.S. and foreign banks. (What happened after the bailout?) $4.0 billion
● Continental Illinois National Bank and Trust Company 1984 Then the nation's eighth largest bank, Continental Illinois had suffered significant losses after purchasing $1 billion in energy loans from the failed Penn Square Bank of Oklahoma. The FDIC and Federal Reserve devised a plan to rescue the bank that included replacing the bank's top executives. (What happened after the bailout?) $9.5 billion
● Savings & Loan 1989 After the widespread failure of savings and loan institutions, President George H. W. Bush signed and Congress enacted the Financial Institutions Reform Recovery and Enforcement Act in 1989. (What happened after the bailout?) $293.3 billion
● Airline Industry 2001 The terrorist attacks of September 11 crippled an already financially troubled industry. To bail out the airlines, President Bush signed into law the Air Transportation Safety and Stabilization Act, which compensated airlines for the mandatory grounding of aircraft after the attacks. The act released $5 billion in compensation and an additional $10 billion in loan guarantees or other federal credit instruments. (What happened after the bailout?) $18.6 billion
● Bear Stearns 2008 JP Morgan Chase and the federal government bailed out Bear Stearns when the financial giant neared collapse. JP Morgan purchased Bear Stearns for $236 million; the Federal Reserve provided a $30 billion credit line to ensure the sale could move forward. $30 billion
● Fannie Mae / Freddie Mac 2008 On Sep. 7, 2008, Fannie and Freddie were essentially nationalized: placed under the conservatorship of the Federal Housing Finance Agency. Under the terms of the rescue, the Treasury has invested billions to cover the companies' losses. Initially, Treasury Secretary Hank Paulson put a ceiling of $100 billion for investments in each company. In February, Tim Geithner raised it to $200 billion. The money was authorized by the Housing and Economic Recovery Act of 2008. $400 billion
● American International Group (A.I.G.) 2008 On four separate occasions, the government has offered aid to AIG to keep it from collapsing, rising from an initial $85 billion credit line from the Federal Reserve to a combined $180 billion effort between the Treasury ($70 billion) and Fed ($110 billion). ($40 billion of the Treasury’s commitment is also included in the TARP total.) $180 billion
● Auto Industry 2008 In late September 2008, Congress approved a more than $630 billion spending bill, which included a measure for $25 billion in loans to the auto industry. These low-interest loans are intended to aid the industry in its push to build more fuel-efficient, environmentally-friendly vehicles. The Detroit 3 -- General Motors, Ford and Chrysler -- will be the primary beneficiaries. $25 billion
● Troubled Asset Relief Program 2008 In October 2008, Congress passed the Emergency Economic Stabilization Act, which authorized the Treasury Department to spend $700 billion to combat the financial crisis. Treasury has been doling out the money via an alphabet soup of different programs. Here’s our running tally of companies getting TARP funds. $700 billion
● Citigroup 2008 Citigroup received a $25 billion investment through the TARP in October and another $20 billion in November. (That $45 billion is also included in the TARP total.) Additional aid has come in the form of government guarantees to limit losses from a $301 billion pool of toxic assets. In addition to the Treasury's $5 billion commitment, the FDIC has committed $10 billion and the Federal Reserve up to about $220 billion. $280 billion
● Bank of America 2009 Bank of America has received $45 billion through the TARP, which includes $10 billion originally meant for Merrill Lynch. (That $45 billion is also included in the TARP total.) In addition, the government has made guarantees to limit losses from a $118 billion pool of troubled assets. In addition to the Treasury's $7.5 billion commitment, the FDIC has committed $2.5 billion and the Federal Reserve up to $87.2 billion. $142.2 billion
Jesse Nankin, Eric Umansky, Krista Kjellman, Scott Klein
Updated: April 15, 2009 12:02 pm EDT
With the flurry of recent government bailouts, we decided to try to put them in perspective. The circles below represent the size of U.S. government bailout, calculated in 2008 dollars. They are also in chronological order. Our chart focuses on U.S. government bailouts of U.S. corporations (and one city). We have not included instances where the U.S. government aided other nations.
Check out how the Treasury did in the end after initial government outlays. Also, check out our ultimate bailout guide. We're tracking every taxpayer dollar, every recipient and every program in the current financial crisis. All searchable – and translated into English.
Want to receive an e-mail alert when we publish public data and documents on ProPublica? Sign up here.
1989 - Savings & Loan - $293.3 billion
Click bubble for more info
Industry/Corporation Year What Happened Cost in 2008 U.S. Dollars
● Penn Central Railroad 1970 In May 1970, Penn Central Railroad, then on the verge of bankruptcy, appealed to the Federal Reserve for aid on the grounds that it provided crucial national defense transportation services. The Nixon administration and the Federal Reserve supported providing financial assistance to Penn Central, but Congress refused to adopt the measure. Penn Central declared bankruptcy on June 21, 1970, which freed the corporation from its commercial paper obligations. To counteract the devastating ripple effects to the money market, the Federal Reserve Board told commercial banks it would provide the reserves needed to allow them to meet the credit needs of their customers. (What happened after the bailout?) $3.2 billion
● Lockheed 1971 In August 1971, Congress passed the Emergency Loan Guarantee Act, which could provide funds to any major business enterprise in crisis. Lockheed was the first recipient. Its failure would have meant significant job loss in California, a loss to the GNP and an impact on national defense. (What happened after the bailout?) $1.4 billion
● Franklin National Bank 1974 In the first five months of 1974 the bank lost $63.6 million. The Federal Reserve stepped in with a loan of $1.75 billion. (What happened after the bailout?) $7.8 billion
● New York City 1975 During the 1970s, New York City became over-extended and entered a period of financial crisis. In 1975 President Ford signed the New York City Seasonal Financing Act, which released $2.3 billion in loans to the city. (What happened after the bailout?) $9.4 billion
● Chrysler 1980 In 1979 Chrysler suffered a loss of $1.1 billion. That year the corporation requested aid from the government. In 1980 the Chrysler Loan Guarantee Act was passed, which provided $1.5 billion in loans to rescue Chrysler from insolvency. In addition, the government's aid was to be matched by U.S. and foreign banks. (What happened after the bailout?) $4.0 billion
● Continental Illinois National Bank and Trust Company 1984 Then the nation's eighth largest bank, Continental Illinois had suffered significant losses after purchasing $1 billion in energy loans from the failed Penn Square Bank of Oklahoma. The FDIC and Federal Reserve devised a plan to rescue the bank that included replacing the bank's top executives. (What happened after the bailout?) $9.5 billion
● Savings & Loan 1989 After the widespread failure of savings and loan institutions, President George H. W. Bush signed and Congress enacted the Financial Institutions Reform Recovery and Enforcement Act in 1989. (What happened after the bailout?) $293.3 billion
● Airline Industry 2001 The terrorist attacks of September 11 crippled an already financially troubled industry. To bail out the airlines, President Bush signed into law the Air Transportation Safety and Stabilization Act, which compensated airlines for the mandatory grounding of aircraft after the attacks. The act released $5 billion in compensation and an additional $10 billion in loan guarantees or other federal credit instruments. (What happened after the bailout?) $18.6 billion
● Bear Stearns 2008 JP Morgan Chase and the federal government bailed out Bear Stearns when the financial giant neared collapse. JP Morgan purchased Bear Stearns for $236 million; the Federal Reserve provided a $30 billion credit line to ensure the sale could move forward. $30 billion
● Fannie Mae / Freddie Mac 2008 On Sep. 7, 2008, Fannie and Freddie were essentially nationalized: placed under the conservatorship of the Federal Housing Finance Agency. Under the terms of the rescue, the Treasury has invested billions to cover the companies' losses. Initially, Treasury Secretary Hank Paulson put a ceiling of $100 billion for investments in each company. In February, Tim Geithner raised it to $200 billion. The money was authorized by the Housing and Economic Recovery Act of 2008. $400 billion
● American International Group (A.I.G.) 2008 On four separate occasions, the government has offered aid to AIG to keep it from collapsing, rising from an initial $85 billion credit line from the Federal Reserve to a combined $180 billion effort between the Treasury ($70 billion) and Fed ($110 billion). ($40 billion of the Treasury’s commitment is also included in the TARP total.) $180 billion
● Auto Industry 2008 In late September 2008, Congress approved a more than $630 billion spending bill, which included a measure for $25 billion in loans to the auto industry. These low-interest loans are intended to aid the industry in its push to build more fuel-efficient, environmentally-friendly vehicles. The Detroit 3 -- General Motors, Ford and Chrysler -- will be the primary beneficiaries. $25 billion
● Troubled Asset Relief Program 2008 In October 2008, Congress passed the Emergency Economic Stabilization Act, which authorized the Treasury Department to spend $700 billion to combat the financial crisis. Treasury has been doling out the money via an alphabet soup of different programs. Here’s our running tally of companies getting TARP funds. $700 billion
● Citigroup 2008 Citigroup received a $25 billion investment through the TARP in October and another $20 billion in November. (That $45 billion is also included in the TARP total.) Additional aid has come in the form of government guarantees to limit losses from a $301 billion pool of toxic assets. In addition to the Treasury's $5 billion commitment, the FDIC has committed $10 billion and the Federal Reserve up to about $220 billion. $280 billion
● Bank of America 2009 Bank of America has received $45 billion through the TARP, which includes $10 billion originally meant for Merrill Lynch. (That $45 billion is also included in the TARP total.) In addition, the government has made guarantees to limit losses from a $118 billion pool of troubled assets. In addition to the Treasury's $7.5 billion commitment, the FDIC has committed $2.5 billion and the Federal Reserve up to $87.2 billion. $142.2 billion
Jesse Nankin, Eric Umansky, Krista Kjellman, Scott Klein
Can India bail out America and rest of the world from economic crisis
Can India bail out America and rest of the world from economic crisis
By JYOTI KOTHARI
Indian Economy: Fourth largest in the world
(This hub is published on
13 November 2008).
India can bail out America from its present economic crisis and financial crisis.
How can it be done?
I have already discussed Strength of Indian economy (fourth largest in the world in price parity parameter) in the previous part of the article.
Can India bail out America and rest of the world from present economic crisis? Part 1
It is in the best interest of the American citizens to go through the hub to know how to get rid of their economic crisis.
Followings are the potentials and opportunities in India that gives a wide angled view of the Indian economy. It describes Para by Para how India can bail out America and rest of the world from present economic crisis.
1. Two hundred fifty million Indian middle class along with many billionaires and millionaires creates a huge and potential market for everyone. The Americans and people of rest of the world can use this market selling their products and services and bailout them from present economic crisis.
2. Indian citizens save thirty five percent of their annual income and the country has the fifth highest foreign currency reserve in the world. Foreign currency reserve of India is more than the US and most of the European countries. This reserve provides Indian Government, corporations and citizens at large an opportunity to invest all over the world.
3. India has a well regulated and strong banking system. Most of them are well capitalized. Not a single bank or financial institute is failed so far. Indian government need not to come out with a bailout plan for their banks and financial institutes.
It is something unusual in this particular time of economic crisis and financial problem. Most of American and European banks and financial institutes are either collapsed or in financial crisis. Many Asian banks are also in problem. Indian banks provides a safe heaven of investment for the global investors small or big.
State Bank of India in US
Concerns of President Obama and India
4. Skilled and young workforce of India has the ability to change the destiny of the world. They are well trained and educated. They have shown their abilities in Silicon Valley and in many other sectors in the US.
5. India has world class educational institutes such as Indian Institute of Technology (IIT), Indian Institute of Management (IIM) etc. where costs are moderate in comparison to American, Australian or European institutes. Indian Medical colleges and IT institutes are also doing very good. It is advisable for American students to include India as one of their destinations, particularly when education loans look burdensome.
6. There are many world class hospitals and health care centers in India with state of art facilities. Indian medical professionals are world class. India is also home for Ayurveda, Naturopathy and Yoga. It also excels in alternate therapies e.g.Homoeopathy, Yunani, Acupressure and Su-zok. The most fascinating feature is that all these facilities are significantly cheaper. Is not it a good news for American citizens who have practically lost their health care facilities in their own country? Obama, the President elect, has already expressed his concern about health-care facilities to his citizens. It is worth for him to act with Indian Government in this sector.
Which feature of India fascinates you the most?
* Foreign currency reserve
* Strong banking system
* Large economy
See results without voting
Indian agriculture
Indian milk product
Some more points worth mention
Some points have been described above to show the capabilities of India in bailing out America and rest of the world from its present economic and financial crisis.
7. India is a leader in agricultural products such as Tea, sugar cane, spices, jute, aromatics and herbs etc. Indian agriculture sector consumes huge quantity of fertilizers, seeds, agro-tools and other equipments.India is also producing healthy food from organic farming.
There are many processing industries in India for agricultural products. However, it needs much more. There is a huge potential in processing industries in agricultural sector.
8. India produces more than two hundred million tons of food grains but it has inadequate warehousing facilities. Hence, Americans and entrepreneurs of rest of the world have ample opportunities to develop infrastructure for warehousing. Food processing industries may be another major sector to look at.
9. India produces highest quantity of milk in the world. Hence potential for processing units is enormous.
10. India has signed a nuclear treaty with America and France. It requires a supply amounting to $ 150 B for its energy needs. This can generate huge employment in the US and France. India and America can also join their hands in clean energy sector to fight global warming and climate change.
India has also started generatinggreen collar jobs along with America. Again, America can collaborate with India in the green collar job sector.
11. India has forty five percent market share of global business process outsourcing. Skilled and trained Indian manpower help American corporations to enhance their efficiency and cut cost. It in turn increases their global competitiveness. It is not in the interest of America to discourage outsourcing.
12. India is growing at the rate of seven to nine percent per annum. It is to be continued at least at the rate of six to seven percent even in the period of global recession.
13. However, India is lacking far behind the developed nations in physical infrastructure. This is the main drawback of the country. Core sectors are roads, sea-ports and airports; energy, warehousing, laboratories etc. Prime Minister Man Mohan Singh has recently invited $ 500 B foreign investment in this arena. India also needs advanced technologies from the US to develop its industries. Technology is also needed in clean energy field. American corporations may come forward with their expertise in these fields to handle the tasks and be benefited. It can generate enough employment for the common Americans.
14. Sixty percent of total Indian population has to be uplifted to global standards. This marathon task needs huge investments, technological support and continued action. This alone can bring America and rest of the world out of recession.
15. Indian entrepreneurs are opening their offices in cities like New York generating employment to the common Americans.
Above mentioned are just the glimpses and there are many other points worth mention. It is in the best interest of American Government and people to increase bi-lateral co-operation with India. Having this done India can bail out America and the entire globe from present economic crisis and financial problem.
Americans prefer Indian hospitals
Updation 27 July 2009
1. Ms. Clinton visited India few days back and urged India to play its role as economic mega power.
Visit forum posts for more info.
2. India has launched its nuclear submarine 'Arihant' on 26 July, 2009, on the occassion of 10th victory day of Kargil war. It is worth mention that only five other nations have nuclear submarine.
By JYOTI KOTHARI
Indian Economy: Fourth largest in the world
(This hub is published on
13 November 2008).
India can bail out America from its present economic crisis and financial crisis.
How can it be done?
I have already discussed Strength of Indian economy (fourth largest in the world in price parity parameter) in the previous part of the article.
Can India bail out America and rest of the world from present economic crisis? Part 1
It is in the best interest of the American citizens to go through the hub to know how to get rid of their economic crisis.
Followings are the potentials and opportunities in India that gives a wide angled view of the Indian economy. It describes Para by Para how India can bail out America and rest of the world from present economic crisis.
1. Two hundred fifty million Indian middle class along with many billionaires and millionaires creates a huge and potential market for everyone. The Americans and people of rest of the world can use this market selling their products and services and bailout them from present economic crisis.
2. Indian citizens save thirty five percent of their annual income and the country has the fifth highest foreign currency reserve in the world. Foreign currency reserve of India is more than the US and most of the European countries. This reserve provides Indian Government, corporations and citizens at large an opportunity to invest all over the world.
3. India has a well regulated and strong banking system. Most of them are well capitalized. Not a single bank or financial institute is failed so far. Indian government need not to come out with a bailout plan for their banks and financial institutes.
It is something unusual in this particular time of economic crisis and financial problem. Most of American and European banks and financial institutes are either collapsed or in financial crisis. Many Asian banks are also in problem. Indian banks provides a safe heaven of investment for the global investors small or big.
State Bank of India in US
Concerns of President Obama and India
4. Skilled and young workforce of India has the ability to change the destiny of the world. They are well trained and educated. They have shown their abilities in Silicon Valley and in many other sectors in the US.
5. India has world class educational institutes such as Indian Institute of Technology (IIT), Indian Institute of Management (IIM) etc. where costs are moderate in comparison to American, Australian or European institutes. Indian Medical colleges and IT institutes are also doing very good. It is advisable for American students to include India as one of their destinations, particularly when education loans look burdensome.
6. There are many world class hospitals and health care centers in India with state of art facilities. Indian medical professionals are world class. India is also home for Ayurveda, Naturopathy and Yoga. It also excels in alternate therapies e.g.Homoeopathy, Yunani, Acupressure and Su-zok. The most fascinating feature is that all these facilities are significantly cheaper. Is not it a good news for American citizens who have practically lost their health care facilities in their own country? Obama, the President elect, has already expressed his concern about health-care facilities to his citizens. It is worth for him to act with Indian Government in this sector.
Which feature of India fascinates you the most?
* Foreign currency reserve
* Strong banking system
* Large economy
See results without voting
Indian agriculture
Indian milk product
Some more points worth mention
Some points have been described above to show the capabilities of India in bailing out America and rest of the world from its present economic and financial crisis.
7. India is a leader in agricultural products such as Tea, sugar cane, spices, jute, aromatics and herbs etc. Indian agriculture sector consumes huge quantity of fertilizers, seeds, agro-tools and other equipments.India is also producing healthy food from organic farming.
There are many processing industries in India for agricultural products. However, it needs much more. There is a huge potential in processing industries in agricultural sector.
8. India produces more than two hundred million tons of food grains but it has inadequate warehousing facilities. Hence, Americans and entrepreneurs of rest of the world have ample opportunities to develop infrastructure for warehousing. Food processing industries may be another major sector to look at.
9. India produces highest quantity of milk in the world. Hence potential for processing units is enormous.
10. India has signed a nuclear treaty with America and France. It requires a supply amounting to $ 150 B for its energy needs. This can generate huge employment in the US and France. India and America can also join their hands in clean energy sector to fight global warming and climate change.
India has also started generatinggreen collar jobs along with America. Again, America can collaborate with India in the green collar job sector.
11. India has forty five percent market share of global business process outsourcing. Skilled and trained Indian manpower help American corporations to enhance their efficiency and cut cost. It in turn increases their global competitiveness. It is not in the interest of America to discourage outsourcing.
12. India is growing at the rate of seven to nine percent per annum. It is to be continued at least at the rate of six to seven percent even in the period of global recession.
13. However, India is lacking far behind the developed nations in physical infrastructure. This is the main drawback of the country. Core sectors are roads, sea-ports and airports; energy, warehousing, laboratories etc. Prime Minister Man Mohan Singh has recently invited $ 500 B foreign investment in this arena. India also needs advanced technologies from the US to develop its industries. Technology is also needed in clean energy field. American corporations may come forward with their expertise in these fields to handle the tasks and be benefited. It can generate enough employment for the common Americans.
14. Sixty percent of total Indian population has to be uplifted to global standards. This marathon task needs huge investments, technological support and continued action. This alone can bring America and rest of the world out of recession.
15. Indian entrepreneurs are opening their offices in cities like New York generating employment to the common Americans.
Above mentioned are just the glimpses and there are many other points worth mention. It is in the best interest of American Government and people to increase bi-lateral co-operation with India. Having this done India can bail out America and the entire globe from present economic crisis and financial problem.
Americans prefer Indian hospitals
Updation 27 July 2009
1. Ms. Clinton visited India few days back and urged India to play its role as economic mega power.
Visit forum posts for more info.
2. India has launched its nuclear submarine 'Arihant' on 26 July, 2009, on the occassion of 10th victory day of Kargil war. It is worth mention that only five other nations have nuclear submarine.
Jumat, 16 April 2010
Pay czar: Fewer bailed-out execs getting big pay
Pay czar: Fewer bailed-out execs getting big pay
Treasury issues 2010 pay guidelines for firms that have TARP money
Special Report
For decades, U.S. manufacturing jobs have been slipping away even as American factories churn out billions of dollars worth of goods.
msnbc.com
Most popular
• Most viewed • Top rated • Most e-mailed
Cultural tensions hinder China quake relief
U.S. charges Goldman with subprime fraud
Europe faces more air travel chaos
Museum warns: Don’t touch the live nudes
When bad things happen to good laptops
Most viewed on msnbc.com
Exonerated anthrax suspect: FBI harassed me
Shipmaster took 90 minutes to report reef crash
Mexico cartels empty border towns
Dad sues ‘Thank God for Dead Soldiers’ church
U.S. charges Goldman with subprime fraud
Most viewed on msnbc.com
Fanged leech pulled from girl's nose
Good Samaritans Help Reunite Cat, Owner
Manufacturer expands pet food recall
Iceland volcano could have world consequences
10 essential iPad tips and tricks
Most viewed on msnbc.com
updated 1:33 p.m. ET April 16, 2010
WASHINGTON - The Obama administration's pay czar issued rulings on Friday for a second tier of top earners at bailed-out companies and said far fewer were getting big cash salaries this year than last.
The number of employees whose cash salaries were proposed to be $500,000 or more was down sharply in 2010, a Treasury official said, but it was unclear exactly how many were at that level.
Kenneth Feinberg still is supervising pay practices at five firms that received money under the government's Troubled Asset Relief Program (TARP). They can still receive other benefits, like stock, in addition to salaries within principles set by the Treasury that aim to tie total compensation to performance.
Story continues below ↓advertisement | your ad here
Feinberg supervises pay practices at American International Group Inc , General Motors , General Motors Acceptance Corp., Chrysler Group LLC and Chrysler Financial and will as long as they owe TARP money to the government.
Amid public anger at companies that got taxpayer bailout funds and still paid their executives generously, the administration said last December it was capping pay for the top 25 employees. The information issued on Friday covers the next tier of executives from the 26th top paid through No. 100.
A Treasury official told reporters only five of the group will get cash salaries of $500,000 or more in 2010, down from 65 who were to get salaries at that level in 2009.
Click for related content
U.S. charges Goldman Sachs with civil fraud
New Balance sidesteps "Made in USA" ad rules
Companies that pay cash salaries under $500,000 to their top employees do not have to be face a review by Feinberg.
Total compensation, which covers not just salary but bonuses and stock awards, is supposed to be guided by principles that include a stress on long-term rewards and favorable corporate performance.
The Treasury official said that, in theory, there is not a strict upper limit on potential compensation provided that it meets the standards set under the guiding pay principles.
Treasury issues 2010 pay guidelines for firms that have TARP money
Special Report
For decades, U.S. manufacturing jobs have been slipping away even as American factories churn out billions of dollars worth of goods.
msnbc.com
Most popular
• Most viewed • Top rated • Most e-mailed
Cultural tensions hinder China quake relief
U.S. charges Goldman with subprime fraud
Europe faces more air travel chaos
Museum warns: Don’t touch the live nudes
When bad things happen to good laptops
Most viewed on msnbc.com
Exonerated anthrax suspect: FBI harassed me
Shipmaster took 90 minutes to report reef crash
Mexico cartels empty border towns
Dad sues ‘Thank God for Dead Soldiers’ church
U.S. charges Goldman with subprime fraud
Most viewed on msnbc.com
Fanged leech pulled from girl's nose
Good Samaritans Help Reunite Cat, Owner
Manufacturer expands pet food recall
Iceland volcano could have world consequences
10 essential iPad tips and tricks
Most viewed on msnbc.com
updated 1:33 p.m. ET April 16, 2010
WASHINGTON - The Obama administration's pay czar issued rulings on Friday for a second tier of top earners at bailed-out companies and said far fewer were getting big cash salaries this year than last.
The number of employees whose cash salaries were proposed to be $500,000 or more was down sharply in 2010, a Treasury official said, but it was unclear exactly how many were at that level.
Kenneth Feinberg still is supervising pay practices at five firms that received money under the government's Troubled Asset Relief Program (TARP). They can still receive other benefits, like stock, in addition to salaries within principles set by the Treasury that aim to tie total compensation to performance.
Story continues below ↓advertisement | your ad here
Feinberg supervises pay practices at American International Group Inc , General Motors , General Motors Acceptance Corp., Chrysler Group LLC and Chrysler Financial and will as long as they owe TARP money to the government.
Amid public anger at companies that got taxpayer bailout funds and still paid their executives generously, the administration said last December it was capping pay for the top 25 employees. The information issued on Friday covers the next tier of executives from the 26th top paid through No. 100.
A Treasury official told reporters only five of the group will get cash salaries of $500,000 or more in 2010, down from 65 who were to get salaries at that level in 2009.
Click for related content
U.S. charges Goldman Sachs with civil fraud
New Balance sidesteps "Made in USA" ad rules
Companies that pay cash salaries under $500,000 to their top employees do not have to be face a review by Feinberg.
Total compensation, which covers not just salary but bonuses and stock awards, is supposed to be guided by principles that include a stress on long-term rewards and favorable corporate performance.
The Treasury official said that, in theory, there is not a strict upper limit on potential compensation provided that it meets the standards set under the guiding pay principles.
Toyota to recall 600,000 Sienna minivans
Toyota to recall 600,000 Sienna minivans
Spare tire cables could rust and break, creating a road hazard
 | Video |
 | Toyota announces Sienna minivan recall
April 17: According to the automaker, corrosion from road salt could cause the spare tire to fall off the car. NBC’s Brian Williams reports. Nightly News |
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 | Toyota recall timeline
Toyota is facing the biggest recalls in its history after uncovering widespread problems with several aspects of its vehicles. |
By Ken Thomas
updated 7:35 p.m. ET April 16, 2010
WASHINGTON - Toyota Motor Corp. said Friday it was recalling 600,000 Sienna minivans sold in the United States to address potential rusting spare tire cables that could break and create a road hazard in the latest safety problem to strike the beleaguered automaker.
The recall came as House investigators said they planned to hold another congressional hearing in May to review potential electronic problems in runaway Toyotas. The Japanese automaker has recalled more than 8 million vehicles because of faulty accelerator pedals, humbling a car company long known for its quality and safety.
Company leaders vowed to respond quickly to the safety concerns.
Toyota said its latest recall covered the 1998-2010 model year Siennas with two-wheel-drive that have been sold or registered in 20 cold-climate states and the District of Columbia. Toyota said rust from road salt could cause the carrier cable that holds the spare tire to rust and break, allowing the tire to tumble into the road. The problem could threaten the safety of other drivers.
Toyota said it was unaware of any accidents or injuries. The National Highway Traffic Safety Administration said it had received six complaints of spare tires falling off Siennas.
The company said it was working on a fix for the problem. In the meantime, customers will receive a notice telling them to bring their vehicle to a dealership for an inspection.
The recall involves Siennas in the District of Columbia and the following states: Connecticut, Delaware, Illinois, Indiana, Kentucky, Massachusetts, Maryland, Maine, Michigan, Minnesota, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, Vermont, Wisconsin and West Virginia.
"Toyota is listening to its customers attentively, and we want to make sure their voices are heard," said Steve St. Angelo, Toyota's chief quality officer for North America.
St. Angelo said the company was providing free inspections of the spare tire carrier cable across the nation, including states not included in the recall.
Lawmakers remain focused on the spate of recalls affecting the company. Rep. Henry Waxman, chairman of the House Energy and Commerce Committee, and Rep. Bart Stupak, a subcommittee chairman, said they plan to hold a May 6 hearing to look into potential electronic causes of sudden acceleration in Toyota vehicles.
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Toyota has said it has found no evidence of electronic problems, attributing the issues to sticking gas pedals and accelerators that can become jammed in floor mats.
Toyota said in a statement Friday it was "more than willing to meet with the committee and discuss the ongoing testing related to our electronic throttle control system, as well as the steps we are taking to improve our quality assurance processes. Nothing is more important to us than the safety and reliability of the vehicles our customers drive."
The Transportation Department has fined the company $16.4 million for failing to promptly notify the government about defective gas pedals among its vehicles. Toyota has until Monday to agree to the penalty or contest it. The fine is the largest civil penalty ever issued to an automaker by the government.
Transportation officials have not ruled out additional fines. The department is reviewing whether Toyota delayed for six weeks the late January recall of the 2009-2010 Venza in the United States to address floor mats that could entrap the accelerator pedal after making a similar recall in Canada.
Selasa, 13 April 2010
Icelandic authorities 'negligent' over banking collapse
Icelandic authorities 'negligent' over banking collapse
 Icesave's parent bank, Landsbanki, collapsed in 2008 |
Leading Icelandic figures, including ex-Prime Minister Geir Haarde, are guilty of "negligence", a report into the Icelandic banking crisis has said.
More should have been done to limit the damage to Iceland of the collapse of its biggest banks in 2008, it said.
Authorities should also have made sure UK Icesave depositors were insured by the UK, saving Iceland nearly £5bn.
The scathing 2000-page report also cited evidence of possible insider trading by key Icelandic investors.
It found that money had been withdrawn by "insiders" only days before the banks went bust. The matter has been referred to Iceland's prosecution service.
'Understaffed'
 |  [The financial services regulator] was... understaffed and inexperienced  Special Investigation Commission presentation on its report |
The Special Investigation Commission report, which was commissioned by the Icelandic parliament, said that the collapse of the banking system, which took place in October 2008, was already inevitable by the end of 2006.
In the seven years leading up to the crisis, Icelandic banks grew 20-fold in size. The Icelandic financial services regulator was overwhelmed by the growth, the report said.
It was "in general understaffed and lacked experience" and did not use the legal powers available to it, according to the commission's presentation.
Prime Minister Johanna Sigurdardottir acknowledged that "mistakes were certainly made".
"The private banks failed, the supervisory system failed, the politics failed, the administration failed, the media failed, and the ideology of an unregulated free market utterly failed," she said.
Missed opportunity
The report said that the Icelandic authorities missed important opportunities in 2008 to limit the eventual damage to Iceland from the collapse.
The biggest of these missed opportunities relates to Icesave, the brand name used by Icelandic bank Landsbanki for its bank accounts in the UK and Netherlands.
|  They had the necessary information, but did not act accordingly, each pointing the finger at the next person Pall Hreinsson, Special Investigation Commission chairman |
If the Icelandic authorities had intervened in the summer of 2008 to ensure that Icesave was turned into a subsidiary, it would have meant that Iceland was no longer liable for its nearly £5 billion in deposits, the report said.
In February to April 2008, Icesave experienced a brief crisis during which some 20% of its UK deposits were withdrawn amid various press reports in the UK that the Icelandic banks were in trouble.
This prompted a discussion between Icesave's owner, Icelandic bank Landsbanki, and the UK's Financial Services Authority (FSA) about the feasibility of turning Icesave from a branch into a subsidiary, a move that would take about six months to implement.
As a branch, Icesave was legally part of Landsbanki itself - in other words Icesave depositors were handing their money directly to a bank in Iceland - whereas if it were turned into a subsidiary, it would have become a separate UK bank owned by Landsbanki.
The important point for Icesave's British depositors is that if Icesave had been a subsidiary the first £50,000 of their money would have been guaranteed by the UK's deposit insurance scheme.
However, for Landsbanki, turning Icesave into a subsidiary was less desirable because it would have meant that the cash collected from depositors by Icesave was no longer easily available for Landsbanki to use in its day-to-day business.
According to the report, by late April the first spate of withdrawals from Icesave came to an end.
With the emergency seemingly over, Landsbanki "changed its tune" about turning Icesave into a subsidiary, telling [UK financial regulator] the FSA that the this was now only a medium to long term objective.
"I'm surprised it took the central bank so long to figure out the reason," said Anne Sibert, economist at Birkbeck College in London, referring to Landsbanki's apparent conflict of interest in keeping Icesave as a branch.
"It seems like the authorities sat back [during the summer of 2008] while Landsbanki and the FSA went back and forth and back and forth, without anything coming from it."
Negligence
The report accuses leading Icelandic figures of negligence in failing to appreciate the systemic risk posed by Icesave to the Icelandic banking system.
Among those specifically criticised are the former Prime Minister Geir Haarde, the former finance and business ministers, as well as the head of the Icelandic central bank and the head of the financial services regulator.
The commission chair, Pall Hreinsson, said that a parliamentary committee would now decide whether legal action ought to be brought against those named in the report.
"They had the necessary information, but did not act accordingly, each pointing the finger at the next person," Mr Hreinsson told reporters.
The report also noted that the owners of all three of the big banks "had an abnormally easy access to loans in these banks, apparently in their capacity as owners... [and this] raises questions as to whether the lending is done at arms length".
'Horrified'
Anne Sibert, who now sits on the Icelandic central bank's Monetary Policy Committee, was hired by Landsbanki in January 2008 to produce a report on the vulnerability of the Icelandic banking system.
"I knew nothing about the Icelandic banking system, so I googled it. And after 10 minutes I was horrified… I realised pretty quickly that the situation was not viable", she told BBC News.
Ms Sibert, along with husband and fellow economist Willem Buiter, said the banking system's key weakness was insufficient reserves at the central bank to cover foreign currency liabilities, including UK depositors at Icesave.
"The market realisation of this lack of reserves was exactly what would cause [the banking crisis]," said Anne Sibert.
Housing market: Seller numbers 'outweighing buyers'
Housing market: Seller numbers 'outweighing buyers'
Cheltenham residents give their views on house prices
The property market has bounced back after its dip at the start of 2010.
In March the number of people trying to sell their homes hit its highest level since May 2007, the Royal Institution of Chartered Surveyors (Rics) said.
The Council of Mortgage Lenders (CML) said the number of new loans granted to home buyers in February was 12% higher than the previous month, at 35,000.
And annual house price inflation rose from 6.2% to 7.4% in February, according to government figures.
Cold weather and the reintroduction the old stamp duty threshold of £125,000, at the end of 2009, produced a slump in sales and lending at the start of the year.
That led to a dip in prices in February, put at 0.1% by the house price report from the Department for Communities and Local Government (DCLG).
But this now seems to have passed.
The number of new mortgages granted in February was not only higher than in January but 49% up on a year ago, when the market was at its most depressed in the wake of the banking crisis.
However Bob Pannell, the CML's head of research, was cautious about prospects for the rest of the year.
"Transactions have been affected by the ending of 2009's stamp duty concession and the harsh weather, making it hard to identify clear trends in recent months," he said.
"We are unlikely to see much change in the near future although the new stamp duty exemption for first-time buyers could boost the market somewhat and we hope to see the traditional seasonal pick-up as the weather gets warmer and the days get longer," he added.
More sellers
Rics said in March new instructions from sellers had outstripped enquiries from would-be buyers for the third month in a row.
| Activity is expected to rise over the coming months, but at a more subdued pace, meanwhile, prices are expected to more or less stabilise over the coming months Royal Institution of Chartered Surveyors |
Price increases were still more common than price falls across the UK, but the surveyors' body predicted prices would stabilise in the next few months
"With the general election approaching and uncertainty growing over the political direction of the country, many vendors who were previously inclined to sit on the sidelines now appear eager to put their properties on the market," said Rics spokesperson Ian Perry.
"However, with stocks increasing and sales decreasing we may see some modest price falls in some regions although London, the South East and Scotland are continuing to perform well," he added.
The latest monthly Rics survey indicated that prices during March had dropped in East Anglia, Yorkshire & Humberside, the north of England, the West Midlands and Northern Ireland, but had continued to rise strongly in London, the South East and Scotland.
Prices
An apparent shortage of properties for sale has been cited by most commentators as the main reason for the surprising rise in house prices, which started in spring 2009.
Although the precise scale of the rebound is disputed, with different figures being generated by different surveys, there is little doubt that the recent trend has been upwards.
The DCLG's figures confirmed the findings of other surveys that prices had fallen back in February.
But over the past year prices have risen significantly, up by 7.4% on the DGLG's measurement - a bigger increase than the 6.2% rise recorded in the year to January.
Reflecting the low level of completed sales since the start of the year, Rics said the average number of sales per surveyor had dropped from 18 in the previous three months to 17, but predicted that the market would pick up.
"Activity is expected to rise over the coming months, but at a more subdued pace, meanwhile, prices are expected to more or less stabilise over the coming months," Rics said.
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