money.cnn.com/2009/10/23/news/economy/bank_failure/index.htmBy Karin Matussek
Oct. 29 (Bloomberg) -- Helmut Kiener, the K1 Group hedge- fund firm founder who was arrested yesterday, must remain in custody after a court’s ruling, said a spokesman for prosecutors in Wuerzburg, Germany.
The German court made its ruling today after a hearing for Kiener, 50, prosecutors’ office spokesman Dietrich Geuder said in a telephone interview. Geuder declined to say if Kiener, who is suspected of fraud and breach of trust, made any comments on the allegations during the hearing.
A man who answered the phone at K1 said he isn’t authorized to comment. Kiener’s wife declined to comment when contacted by Bloomberg News today before a prosecutors’ statement was issued. She said Kiener wasn’t available. Later calls weren’t answered.
K1 Group is embroiled in an international criminal investigation after saddling banks, including Barclays Plc, JPMorgan Chase & Co., BNP Paribas SA and Societe Generale SA, with about $400 million of losses, people with knowledge of the probe said. European and U.S. authorities are examining whether K1, which manages funds of hedge funds, deceived the banks when borrowing money to ratchet up investments, according to the people, who declined to be identified because the investigation isn’t public.
Barclays entrusted about $220 million to Kiener’s firm, while BNP provided about $60 million, said the Sueddeutsche Zeitung, a newspaper based in Bavaria, citing unspecified documents.
‘Accusations by Prosecutors’
Kiener arranged for money from Barclays to be invested in a network of funds and entities in the Cayman Islands, Switzerland and U.S., the Handelsblatt newspaper said, citing “accusations by prosecutors.” The money was initially used to buy stakes in an array of funds, including at least one managed by a firm Kiener controlled, the paper said. At least $100 million was ultimately routed to a pair of British Virgin Islands-based K1 funds, while other money supported his lifestyle, financing aircraft and Florida real estate.
Geuder didn’t answer his phone after office hours when called by Bloomberg News for comment on the media reports. Daniel Hunter, a spokesman for London-based Barclays, and Paris- based BNP spokeswoman Carine Lauru declined to comment.
Two Suspects
There are two suspects in the German probe, Geuder said. The second is a manager at a K1 company, according to K1’s German Web site, which was taken down yesterday. Phone calls to a number listed on the site for that person weren’t answered.
Geuder declined to name the lawyers for the two suspects.
Wuerzburg prosecutors yesterday searched several homes including Kiener’s, according to an e-mailed statement by Geuder. The investigation centers on allegations that the K1 manager may have breached investment agreement guidelines with U.K. and French banks.
“Several million in funds” may have been invested contrary to the agreements, Geuder said. He declined to comment on any cooperation with BaFin, Germany’s financial regulator, or with U.S. authorities.
The offices of Treukapital Treuhandverwaltung AG in Goeschenen, Switzerland, were also searched, Managing Director David Zuendorf said in a phone interview today. Treukapital handles administration for K1, including back-office assistance in accounting for investor transactions with the fund, he said.
No allegations of wrongdoing have been made against Treukapital, Zuendorf said.
“Swiss authorities acted upon a request for legal aid by Germany,” said Zuendorf. “We were very surprised. We’re witnesses in the probe and we were also questioned.”
Files were also seized at Treukapital, Zuendorf said. His company didn’t handle dealings with banks that made loans to K1 and he knows nothing about this aspect of the case, he said.
Investigators are also looking into the K1 Global Sub Trust, which is registered in the Caribbean, Geuder said in the statement.
To contact the reporter on this story: Karin Matussek in Berlin at kmatussek@bloomberg.net.
Last Updated: October 29, 2009 15:07 EDT
AFP/Pool SYDNEY (AFP) - China on Friday called for a sweeping new era in ties with Australia including a free-trade deal, marking a dramatic turnaround in relations which reached crisis-point this year. Full Story »
In an interview with ABC, Sen. Joe Lieberman (I-D) -- who campaigned for John McCain in last year's presidential election, and has threatened to help filibuster the health care legislation in the Senate if it contains a public option -- now says he'll campaign for some Republican candidates in the 2010 midterms.
"I probably will support some Republican candidates for Congress or Senate in the election in 2010. I'm going to call them as I see them," Lieberman said.
Paris, France (CNN) -- Former French President Jacques Chirac must stand trial on corruption charges, marking the first time a former French president is being brought to court.
The charges relate to Chirac's final months as mayor of Paris, when he is alleged to have employed staff on the city payroll who were instead working on his presidential campaign.
Chirac was mayor from 1977 to 1995 and served as president from 1995 until he was succeeded by Nicolas Sarkozy in 2007.
Specifically, Chirac is charged with breach of trust and misuse of public funds from March 1994 to May 1995. The charges refer to 21 cases of "fictitious" employees.
Chirac, 76, had immunity from prosecution while he was president, but there has been talk since Chirac left office that he might face charges.
Still, the decision to charge Chirac was somewhat unexpected after the prosecutor asked last month that the charges be dropped, saying the statute of limitations had run out on several of the charges.
Mit einem dramatischen Fehlstart ist die neue schwarz-rote Koalition in Thüringen gestartet: CDU-Kandidatin Christine Lieberknecht brauchte drei Wahlgänge, um die Wahl zur Ministerpräsidentin zu bestehen. Während sie in den ersten beiden Wahlgängen die absolute Mehrheit verfehlte, stimmten im dritten Wahlgang mehr Abgeordnete für Lieberknecht als CDU und SPD Mandate haben....»
9/11 passports found in Pakistan
Authenticity of docs belonging to Al Qaeda members not yet verified.
WASHINGTON – After months of struggle, House Democrats rolled out sweeping legislation Thursday to extend health care coverage to millions who lack it and create a new option of government-run insurance. A vote is likely next week on the plan largely tailored to President Barack Obama's liking. Full Story »
Die Chancen des britischen Ex-Premiers Blair auf den neuen Posten eines EU-Ratspräsidenten sind praktisch auf Null gesunken. Die sozialdemokratischen Regierungen wollen lieber den EU-Außenminister bestimmen. Derweil droht der EU-Gipfel schon am ersten Tag bei seinem zentralen Thema zu scheitern - dem Klimaschutz....»
www.guardian.co.uk/world/2009/oct/27/iraq-nuclear-reactor-pr...
www.bloomberg.com/apps/news?pid=20601087&sid=aACzaZGHTqxQThe former New York lawyer and accountant had been a friend of Madoff for decades.
A statement from Palm Beach police said Picower's wife and a maid found the body at the bottom of the pool Sunday afternoon and rescue workers could not revive him. Picower was transported to Good Samaritan Medical Center where he was pronounced dead at about 1:30 p.m.
Twin Baghdad car bombs kill 136
Turmoil in central Baghdad as at least 136 dead, another 600 wounded.
Schäuble excludes a balanced budget for the coming 4 years definetly. Germany has 2 cope with the exorbitant high debt according 2 the christ dem politician. "(He´s) vain enuf" to use the debt-barrier of the constitution.
German Rail will be privatized when the next opportunity rises
Chief of the leftfaction in grman parliament, Gregor Gysi, declined an unification of his party with the social dems even in distant future strictly. "Everything within my might Ill do against an unification "said Gysi ´Bild am Sonntag´. "
As a primary reason Gysi announced that the social dems only intended 2 design capitalism more socially. "I think though that capitalism cannot be the final answer of history. I´m a democratic socialist. Though I wouldn´t accept a socialist dictatorship anytime again."
2nd reason against a fusion was the tendency of the social dems 2 become ever more right said Gysi. `This will happen even stronger if not corrected from left.´ Gysis 3rd reason:" I don´t wanna die as a social dem. Hasnt 2 b like it, eh?"
Furthermore Gysi denied a Social dem ability 2 rebel. ´The only opposition will b us," Gysi continued.
Der neue SPD-Fraktionsvorsitzende Frank-Walter Steinmeier "kann nicht mal Opposition sein, von Führer ganz zu schweigen. Vom Afghanistankrieg über Hartz IV und Gesundheitsfonds bis zur Mehrwertsteuer hat er doch alles mit beschlossen. Ich verstehe nicht, was da in Steinmeiers Kopf vorgeht, welche Rolle er spielen will."
8:14pm: Banks in Florida, Georgia, Illinois, Minnesota and Wisconsin, were shuttered, costing the FDIC an estimated $356.6 million. More
Rep. Gregg Harper (R-MS) was interviewed by Politico this week and responded mainly with a stream of wisecracks. When asked, "Have you broken your streak of not introducing any bills yet?" he answered, "Bill who?" And a question about the Congressional Sportsmen’s Caucus brought the reply, "We hunt liberal, tree-hugging Democrats, although it does seem like a waste of good ammunition."
The snapshot of Madoff's prison life — and a contrasting picture of a former high-flying life laced with cocaine and salacious parties — are in a legal complaint filed by Burlingame, California-based lawyer Joseph Cotchett, who represents about a dozen victims of Madoff's massive investment Ponzi scheme. Cotchett interviewed Madoff in July at the Butner Federal Correctional Complex near Raleigh, North Carolina.
The lawyer found the mastermind of one of history's largest financial frauds now reduced to nighttime walks around a prison track for fun, according to the new filing. It builds on one investor's existing civil case against various Madoff associates and financial institutions; the suit claims they were complicit in Madoff's fraud or should have stopped it. Madoff has consistently said he acted alone.
People speak of "Finance-political Tricks-Stunts", "balnce falsifying" and the "largest scaled budget swindle" : Der Plan of conservatives, to extradite the billion deficits of social insurance into a shadow budget,causes dismay among the opposition and economists....»
Nicaragua's Ortega can seek re-election
According to 'heavily politicized' Sandinista court.
The comment came during a late-night TV talk show. Berlusconi phoned in after Bindy, 58, openly criticized the Prime Minister following a recent court decision to remove his immunity from prosecution. When the matronly Bindy interrupted Berlusconi, he sarcastically replied, “I recognise you are increasingly more beautiful than you are intelligent.”
Bindy replied, “I am not a woman at your disposal.”
As it became apparent that he had offended many woman, he tried to laugh off his comment, saying that it was intended to be a “light-hearted joke for the public.”
Under heavy pressure, President Hamid Karzai agreed on Tuesday to hold a run-off election with his top challenger on Nov. 7.
However, yesterday CPR filed its third quarter lobbying disclosures with the U.S. Senate, revealing that the Swift-Boat style attack group has contracted veteran health insurance lobbyist Brian McManus. McManus, while at the same time advising CPR, is currently the Director of Federal Affairs at the Council for Affordable Health Insurance (CAHI), a private health insurance trade group advocating Health Savings Accounts. So while CPR has paid McManus at least $60,000, he continues to also collect an income from a private insurer-backed group.
CPR’s call to target an anti-reform message comes on the heel of news that Senate Republicans plan to kill reform by delaying a vote for as long as possible. A Roll Call article today explains that the GOP plan is to “delay, define and derail” health reform:
Senate Republicans, acknowledging they lack the votes to block a health care reform bill outright, have implemented a comprehensive political strategy to delay, define and derail. [...] The Republicans also plan to use the time between now and a final floor vote to deliver a narrowly focused message via a series of floor speeches, press conferences and media appearances. And even though GOP Members will discuss their counterproposals for health care reform, criticism of the Democratic bill will be the priority.
Despite the “hatchet job” report last week distorting the Finance Committee bill, the health insurance industry has tried to pretend it still supports reform. However, with the revelation that industry operative McManus is working with CPR, it appears the overall strategy for the insurers is to have Republicans slow down debate so that attack groups will have more time to air ads undermining reform.
McManus has a history of coordinating efforts among right-wing outside groups with lobbyists inside DC to advance legislation favorable to the private health insurance industry. After serving as the Vice President of Golden Rule, a subsidiary of health insurer giant UnitedHealth, McManus founded the “Health Care Freedom Coalition,” a network of astroturf front groups and think tanks. The Coalition works in tandem with organizations like FreedomWorks to promote a deregulation approach to health reform that would hurt consumer protections while adding to insurer profits.
ThinkProgress has documented how insurers have long used a “two-faced” campaign to, on the one hand present themselves to the public as committed to producing change, while at the same time orchestrating front-group based attacks on reform.
As Democratic congressional leaders and White House officials work to shape health care bills that will go to the House and Senate floors, a new Washington Post-ABC News poll shows that support for a government-run health plan to compete with private insurers has rebounded from its summertime lows and now wins clear majority support from the public.
Americans remain sharply divided about both the overall health care package and President Obama's leadership on the issue, reflecting the intense partisan battle that has raged for months over the administration's top legislative priority. But majorities now back two key and controversial provisions: both the so-called public option and a new mandate requiring all Americans to carry health insurance.
Independents and senior citizens, two groups crucial to the debate, have warmed to the idea of a public insurance option, and are particularly supportive if it were administered by the states and limited to those without access to affordable private insurance, as stipulated in some versions of the legislation.
Two suspected drug traffickers were killed and four were arrested in Sunday's operations by Rio de Janeiro's military police, the official news agency Agencia Brasil reported.
But the atmosphere in general appeared calm in the slum known Morro dos Macacos in northern Rio, where the day before crossfire between two gangs left 12 dead, including two police officers who died when their helicopter was shot out of the sky. Residents had also set eight buses on fire during the clashes in an attempt to divert the attention of police.
Was it just an eratic behaviour directed at the lib dems - or a triggered message by Christian Wulff towards the own chancellor? Participants of the talks in the Europe-hall of Northrinia-Westphalia's state representation in Berlin's Tiergarten were questioning for longer why Wulff showed his frustration about the tax cut plans of the lib dems with hefty words relentlessly."Unacceptable" or "tax-political blindflight" Wulff roared. He couldn't carry such in Germanys state chamber Bundesrat Wulff said.
COCHABAMBA, Bolivia (AFP) – Leftist Latin American leaders agreed here on the creation of a regional currency, the Sucre, aimed at scaling back the use of the US dollar.
Nine countries of ALBA, a leftist bloc conceived by Venezuelan President Hugo Chavez, met in Bolivia where they vowed to press ahead with a new currency for intra-regional trade to replace the US dollar.
"The document is approved," said Bolivia's President Evo Morales, who is hosting the summit.
The new currency, dubbed the Sucre, would be rolled out beginning in 2010 in a non-paper form.
That move echoes the European Union's introduction of the euro precursor, the ECU, an account unit designed to tie down stable exchange rates between member states before the national currencies were scraped.
20 people are being killed during a suicide attack onto the Revolutionary guard, 40 are injured. It was done by Irans Rebel group "Djundollah"....»
Gesundheit, Steuern und Finanzen: Bei den größten Problemen scheitern Union und FDP in ihren Koalitionsverhandlungen bislang an einer gemeinsamen Lösung. Nun sollen die Parteichefs im sogenannten Beichtstuhlverfahren eine Einigung erzielen. CDU-Vize Rüttgers kündigt angesichts der Finanznot bereits harte Einschnitte an....»
8:45am: Nation's biggest bank is hit by bad loans. Outgoing CEO Ken Lewis calls credit costs 'our major financial challenge going forward.' More
Donnerstag, 15. Oktober 2009
"Große Mengen Plutonium am selben Ort können zu einer gefährlichen Kettenreaktion führen", sagte Alain Delmestre, Vizechef der Atomsicherheitsbehörde, in Paris. In einem solchen Fall könnten Menschen tödlich verstrahlt werden. Nach Angaben der Behörde handelt es sich um den ersten Zwischenfall der Gefahrenstufe zwei von insgesamt sieben in diesem Jahr in Frankreich.
Schwarz-Gelb will die Bürger um voraussichtlich 20 Milliarden Euro entlasten. Im Gegenzug müsse es einen "radikalen Sparkurs" geben, sagt CDU-Vize Koch: "Das bedeutet, dass wir in den nächsten vier Regierungsjahren rund 50 Milliarden Euro einsparen müssen". Wichtige Vorentscheidungen sollen auf einer Klausurtagung am Wochenende fallen....»
US bans pics of military deaths
Policy applies to eastern Afghanistan; reaction to AP photo controversy.
Berlin (AFP) - Empfänger von Arbeitslosengeld II sollen künftig besser gestellt werden. Mehr »
Der Parteichef rechnet ab: Schuld am Niedergang der SPD sei vor allem Lafontaine, der die SPD "aus niederen persönlichen Motiven" verraten und beschädigt habe. Müntefering warnt deshalb davor, nun allzu schnell mit dem Linkspartei-Chef gemeinsame Sache zu machen. Derweil rutscht die SPD in Umfragen ab und liegt nur noch knapp vor der FDP....»
Die Grünen aim 2 present the Premiere for Jamaika in Germany as a regional decision. The votum of the Saar ecos has no meaning on federal level said Greens´-Chief Cem Özdemir....»
