Just In: Britain draws up emergency plans for collapse of Euro after warnings Italy needs £500bn bailout

By JAMES CHAPMAN

Last updated at 8:34 PM on 27th November 2011

Britain is drawing up emergency plans for the collapse of the ‘creaking’ Eurozone amid warnings debt-stricken Italy will need a £500 billion bailout involving billions of pounds of UK taxpayers’ money.  

Chancellor George Osborne said the Treasury had ‘stepped up’ contingency planning and aimed to be ready for ‘whatever the Eurozone throws at us’.

It emerged yesterday that the International Monetary Fund, in which Britain is a major shareholder, could be forced to offer Italy a €600 billion (£514bn) rescue package to give its unelected new prime minister Mario Monti 12 to 18 months’ breathing room to implement big tax rises and spending cuts.

Read more: http://www.dailymail.co.uk/news/article-2066862/Britain-draws-emergency-plans-collapse-Euro-warnings-Italy-needs-500bn-bailout.html#ixzz1exBFgNyL

Just In: Specific, unconfirmed terror threat received against New York or Washington

By Jerry Markon and Greg Miller, Thursday, September 8, 8:50 PM

U.S. officials are investigating a “credible but unconfirmed” terrorist threat, with Washington and New York City being mentioned as possible targets, law enforcement and other officials said late Thursday.

President Obama was briefed on the threat Thursday morning and updated throughout the day, even as he prepared to address a joint session of Congress, a White House official said. Officials would not specify the nature of the information, but one federal official said it came from overseas.

“The United States government has already significantly enhanced its security posture in advance of the 9/11 anniversary to protect the country against possible terrorist threats,’’ said the White House official, who spoke on condition of anonymity because the threat information is not public. “Nevertheless, the President directed the counterterrorism community to redouble its efforts in response to this credible but unconfirmed information.”

In a statement, Homeland Security Department spokesman Matt Chandler said: “It’s accurate that there is specific, credible but unconfirmed threat information. As we always do before important dates like the anniversary of 9/11, we will undoubtedly get more reporting in the coming days.”

Members of Congress were also briefed on the threat.

“There were very, very specific facts that were made known in this threat,” Rep. Peter King (R-N.Y.) told CNN. “I would tell people right now to go about their lives. There’s no need to panic. We don’t know if this threat is real yet. It’s being tracked down.”

One federal law enforcement official, speaking on condition of anonymity, said: “Given the dates that are coming up, nobody wants to underplay anything. The government is going to do everything it can to run this to the ground and assess its accuracy.’’

As the anniversary nears, security was already being ramped up nationwide, particularly in New York, where Obama and former president George W. Bush will mark the occasion at Ground Zero inside what police call a “frozen zone.”

Law enforcement officials have said they are acutely aware that before Osama bin Laden was killed, he seemed fixated on attacking the United States again on Sept. 11.

In the trove of digital and handwritten materials found at bin Laden’s compound in Pakistan in May, there were numerous references to the 10-year anniversary of the attacks on New York and Washington. The material also contained various inchoate ideas about how al-Qaeda might construct a terrorist operation, according to law enforcement and intelligence officials.

Credit: The Washington Post

Just In:Federal court tosses lawsuit over health reform

By LARRY O'DELL 
Associated Press

RICHMOND, Va. (AP) -- A federal appeals court in Virginia has dismissed two lawsuits that had claimed President Barack Obama's health care overhaul was unconstitutional.

The unanimous decision was issued Thursday by a three-judge panel of the 4th U.S. Circuit Court of Appeals. It is the second appellate court ruling affirming the government's right to require individuals to buy health insurance or pay a penalty. A federal appeals court in Cincinnati also upheld the law, but an appeals court in Atlanta struck down the insurance mandate.

Two of the judges on the Virginia panel were appointed by Obama, the other by Bill Clinton. They rejected claims by the state's Republican attorney general and Liberty University that the insurance mandate is unconstitutional.

More than 30 lawsuits have been filed over the law.

Credit: The Associated Press

Just In: Obama Administration Pressuring New York Attorney General to Support Mortgage Whitewash

It is high time to describe the Obama Administration by its proper name: corrupt.

Admittedly, corruption among our elites generally and in Washington in particular has become so widespread and blatant as to fall into the “dog bites man” category. But the nauseating gap between the Administration’s propaganda and the many and varied ways it sells out average Americans on behalf of its favored backers, in this case the too big to fail banks, has become so noisome that it has become impossible to ignore the fetid smell.

The Administration has now taken to pressuring parties that are not part of the machinery reporting to the President to fall in and do his bidding. We’ve gotten so used to the US attorney general being conveniently missing in action that we have forgotten that regulators and the AG are supposed to be independent. As one correspondent noted by e-mail, “When officials allegiances are to El Supremo rather than the Constitution, you walk the path to fascism.”

Revealingly, one of the Administration’s allies said: “Wall Street is our Main Street.” And the worst is that this remark may not be a cynical Ministry of Truth pronouncement. Team Obama bears all the hallmarks of being so close to banks and big corporations that it has lost all contact with and understanding of mainstream America.

The latest example is its heavy-handed campaign to convert New York state attorney general Eric Schneiderman to a card carrying member of the “be nice to our lords and masters the banksters” club. Schneiderman was the first to take issue with the sham of the so-called 50 state attorney general mortgage settlement. As far as the Administration is concerned, its goal is to give banks a talking point and prove to them that Team Obama is protecting their backs in a way that the chump public hopefully won’t notice.

The Administration joined this effort to hurry it forward and assure it resulted in a suitably financier-friendly outcome. And it has done so despite recent HUD inspector general’s auditsfinding that the five biggest servicers were defrauding taxpayers. We’ve heard not a peep of follow up on that front; instead, the Administration keeps leaking its tired “A settlement is just around the corner” story.

Schneiderman is far from the only person to see what a sellout this “settlement” is. The basic premise of a settlement is to obtain some sort of restitution to induce a prosecutor/plaintiff to drop a current or likely lawsuit. For the aggrieved party to get a good settlement, it needs to have a credible case, as in facts (a smoking gun or two) and a legal theory as to why those facts mean the perp is in hot water.

Aside from robosigning, which was all over the funny papers last year, the Administration and the AGs have made sure they have no facts. A member of the Administration who was involved in the settlement talks confirmed what we have long said on this blog: there was no investigation of any kind, despite Iowa attorney general Tom MIller’s lies claims to the contrary. They didn’t even bother getting to first base, namely making document requests.

And that is why at least some of the AGs are so uncomfortable with what is going on. Even though Gretchen Morgenson of the New York Times focuses tonight on the Administration’s efforts to leash and collar Schneiderman, he isn’t alone in having significant reservations. Beau Biden of Delaware is also making a broad-ranging investigation, which is inconsistent with entering into a settlement. Martha Coakley of Massachusetts and Catherine Masto of Nevada also have initiatives underway that are at odds with a settlement, and neither one looks interested in reversing course. We’ve also been told the Colorado AG may opt out of the deal.

And a story in the Wall Street Journal tonight suggests that this horse has already left the barn and is in the next county. Tellingly, Lisa Madigan, the Illinois AG, who is a political weathervane and was working closely with Tom Miller, has come forward and indicated she’ll at most support only a qualified release from liability, when the banks want a broad release. The article indicates that her view is shared by a fair number of the AGs. Per the Journal (hat tip reader Deontos);

“They wanted to be released from everything, including original sin,” said a U.S. official involved in the discussions. The legal protection sought by the banks included loan origination; securitization and servicing practices; fair-lending procedures; and their use of the Mortgage Electronic Registration Systems, an industry-owned loan registry that often acts as an agent for owners of mortgage loans…

“Those of us at the table…have maintained this investigation is about robo-signing and loss-mitigation problems,” Illinois Attorney General Lisa Madigan said in an interview. “The release should be narrowly drafted to cover those issues.”

If the AGs stick to this stance, there is no deal. The article maintains the AGs still want damages of $20 to $25 billion. The banks aren’t going to pay much if anything to settle on robosigning, and the AGs haven’t done the legwork to make a case on loss mitigation.

So the bullying of Schneiderman looks to be misguided, since the settlement is likely to fall apart. But it is nevertheless germane because it reveals the Administration’s warped thinking and sense of priorities. As we’ve said, the Administration’s decision to cast its lot with the banks in early 2009 dictated its course of action:

Obama’s incentives are to come up with “solutions” that paper over problems, avoid meaningful conflict with the industry, minimize complaints, and restore the old practice of using leverage and investment gains to cover up stagnation in worker incomes. Potemkin reforms dovetail with the financial service industry’s goal of forestalling any measures that would interfere with its looting. So the only problem with this picture was how to fool the now-impoverished public into thinking a program of Mussolini-style corporatism represented progress.

Morgenson shows how this plays out:

In recent weeks, Shaun Donovan, the secretary of Housing and Urban Development, and high-level Justice Department officials have been waging an intensifying campaign to try to persuade the attorney general to support the settlement…

But Mr. Donovan and others in the administration have been contacting not only Mr. Schneiderman but his allies, including consumer groups and advocates for borrowers, seeking help to secure the attorney general’s participation in the deal, these people said. One recipient described the calls from Mr. Donovan, but asked not to be identified for fear of retaliation.

Yves here. So get this: we have unemployment at roughly 16% if you include discouraged workers, and many “employed” workers are underemployed. The housing market hasn’t bottomed; experts have pushed their hopes estimates from 2011 to 2012. And continued concerns about unaddressed chain of title issues may well impede any housing recovery.

Yet rather than address real, serious problems, senior administration officials are instead devoting time and effort to orchestrating a faux grass roots campaign to con a state AG into thinking his supporters are deserting him because he has dared challenge the supremacy of the banks.

So how does the Administration rationalize its failure to do anything effective? It goes deeper into its propaganda hall of mirrors:

Mr. Donovan said…“our view is we have the immediate opportunity to help a huge number of borrowers to stay in their homes, to help their neighborhoods and the housing market.”

This doesn’t even qualify as competent three card monte. “No, don’t look at what we are trying to do for the banks. Really, all we care about is homeowners!”

Marcy Wheeler, who has more patience for this vomititious tripe than I do, explains why Donovan’s assertion does not pass the credibility test:

You see, the Administration has an “immediate opportunity to help a huge number of borrowers stay in their homes,” without any action from Eric Schneiderman. They have a way to do so more swiftly, in such a way the servicers actually would be held accountable It would involve offering refis with principal reductions to all the underwater homeowners whose loans are owned by Fannie and Freddie. That would not only help a huge number of borrowers stay in their home, but it would be massive stimulus.

But instead they’re sending Donovan to pressure Schneiderman to pursue a measure that would benefit far fewer homeowners and probably take more time, while putting the last nail in the coffin of the rule of law in this country.

Finally, to the toad-hopping-out-of-mouth utterance, “Wall Street is our Main Street.” That came from finance’s favorite camp follower, Kathryn S. Wylde. As we described in an earlier post, she’s wiling to throw the rule of law under the bus to serve the interests of the banks who happen to be major funders of the business-promoting not for profit she heads. And she is also a director of the New York Fed. So it should not be surprising that she got in a “contentious conversation” with Schneiderman when they crossed paths in public.

Her argument, as she recounted it to the Times, is intellectually and morally bankrupt:

[I]it is of concern to the industry that instead of trying to facilitate resolving these issues, you seem to be throwing a wrench into it. Wall Street is our Main Street — love ’em or hate ’em. They are important and we have to make sure we are doing everything we can to support them unless they are doing something indefensible.

Translation:

In this state, banks count for a lot, and therefore your job it to make their problems go away. You don’t seem to understand that you are supposed to act like a proper bought and paid for public official. Your role is to support big companies. You are to go after them only when the things they do make the public so angry that you have to help us make a credible show that the elites care about the little people.

If you think that is an unfair rendition of Wylde’s remark, consider the damage the major banks have done. They have failed so badly at being competent lenders and record keepers that when judges in New York demand that bank attorneys certify that they have taken reasonable steps to verify documents submitted to the courts, foreclosures grind to a near halt. Two separate investigations, one by Fortune, the other by the New York Post, ascertained that an overwhelming majority of foreclosures took place when the banks failed to demonstrate that they had the right to do so. Banks have foreclosed illegally on servicemen, and have also foreclosed on people who didn’t have mortgages. Their is ample evidence that they have systematically violated their own contracts, the agreements that govern mortgage securitizations, and have on a widespread basis charged impermissible fees to borrowers. And when these junk and pyramiding fees precipitate foreclosures, the servicers have effectively ripped off investors too. They have tooth and nail fought every effort that would help borrowers if it in any way impinged on their profits, even though their very survival is the result of taxpayer munificence. Finally, they’ve made a mess of property records in this country.

But apparently none of this, in the eyes of Ms. Wylde, rises to the level of being worth remedying, much the less “indefensible”. Given the ample of evidence of malfeasance, we must reach one of two conclusions. One is that she has no idea what is going on and therefore can be ignored as being not competent to opine. The other is that no amount of economic harm to individuals rates as being worth pursuing in her eyes. It appears that the only thing that might rise to the level of being “indefensible” is damage to life and limb, so all white collar crimes are exempt. This is a classic totalitarian, “might makes right,” argument.

And mind you, Wylde allegedly represents “the public” on the New York Fed’s board. With friends like this, who needs enemies?

Felix Salmon wrote today of a global crisis of institutional legitimacy, and although his tour started with Libya, it focused mainly on Europe and the US. If you want to know why the governed are withdrawing their consent in advanced economies, you need look no further than toadies like Donovan and Wylde who defend institutionalized profiteering and seek to undermine the few like Schneiderman who’ve managed, despite the odds, to get in a position where they might be able to do something to reverse it.

If you are a New York resident, I hope you’ll call (800 771-7755 or 212 416-8000) or e-mailSchneiderman and thank him for standing up to the corruption of the banks and their enablers in the Administration. I think he will appreciate the show of support.

Credit: http://www.nakedcapitalism.com

Just In: NYT shocked, shocked to find anger at Obama in Weiner’s district

BY ED MORRISSEY 

The race to replace Anthony Weiner in NY-09 has taken a disturbing turn for Democrats.  Bob Turner, who lost in 2010 by a wide margin to the disgraced former Congressman, only narrowly trails David Weprin in what had been considered a safe district in the Big Apple.  Now the seat that once was held by Democratic luminaries like Chuck Schumer and Geraldine Ferraro has taken a back seat to a referendum on the Obama administration, and the New York Times finds itself surprised that Democrats could lose such a plebescite:

Of all the places to hear fulminations against President Obama, one of the least expected is the corner of 71st Avenue and Queens Boulevard, in the heart of a Congressional district that propelled Democrats like Geraldine A. Ferraro, Charles E. Schumer andAnthony D. Weiner to Washington.

But it was there that Dale Weiss, a 64-year-old Democrat, approached the Republican running for Congress in a special election and, without provocation, blasted the president for failing to tame runaway federal spending. “We need to cut Medicaid,” she declared, “but he won’t do that.” She shook her head in disgust. “He is a moron.”

After nodding approvingly for a time, the Republican candidate, Bob Turner, signaled for an assistant to cut off Ms. Weiss. Frustration with Mr. Obama is so widespread, he explained later, that he tries to limit such rants to about 30 seconds, or else they will consume most of his day. …

The race was widely viewed as a sleepy sideshow — a mere formality that would put David I. Weprin, a Democratic state assemblyman and heir to a Queens political dynasty, into a seat known for its deep blue hue.

Instead, the race has become something far more unsettling to Democrats: a referendum on the president and his party that is highlighting the surprisingly raw emotions of the electorate.

And despite the clear registration advantage in the district, Turner has caught up to Weprin.  A Siena College poll almost two weeks ago showed Weprin only leading by six points, and below the 50% level that would indicate enough strength for a victory.  Weprin loses 30% of Democrats in the district and trails among independents 42/46, and is down six points in Brooklyn, which has about 1/3rd of the district’s voters.

Perhaps that’s why Democrats got desperate enough to launch a robo-call campaign to label Turner a “Tea Party extremist” — an effort that prompted a retort from former New York City Mayor Ed Koch:

Nervous state Democrats are flooding voters with mailings blasting Republican candidate Bob Turner in the hotly contested 9th Congressional District, upping the ante in the closer-than-expected race to succeed disgraced ex-Rep. Anthony Weiner.

With President Obama’s standing in the polls in free fall, the state Democratic Committee’s mailings to Queens and Brooklyn residents accuse Turner of being a “Tea Party extremist” who wants to dismantle Social Security and Medicare.

Turner struck back with a “robo-call” from former Mayor Ed Koch yesterday, slamming Democratic rival David Weprin for lying to scare senior citizens. …

Democrat Koch, who crossed parties to endorse Turner, said in a recorded telephone message to thousands of seniors in the district, “David Weprin is making phone calls trying to scare seniors. They’re nonsense. Weprin should be ashamed of himself . . . Bob Turner is running for Congress to protect your Medicare and Social Security.

“If anyone tries to scare you with lies about Bob Turner, tell ‘em Ed Koch told them to knock it off!”

The Times interviewed a number of Democrats who expressed anger at Obama’s performance.  One said that Obama was ‘way off base in his spending”; another called Weprin “part of the party regime.”  Even one member of the DNC from New York admitted that the election is much less about Turner and Weprin than it is about Barack Obama.

If that’s become a bad thing in New York City and NY-09, just imagine what it will look like in 2012 across the rest of the country.

Credit: HotAir.com

Just In: Obama Administration to Review All Deportation Cases, Apply DREAM Act-Style Criteria

The Obama administration announced Thursday that it would launch a case-by-case review of illegal immigrants slated for deportation, in a move that could grant a reprieve to so-called DREAM Act beneficiaries and thousands of others. 

The DREAM Act is a proposal in Congress to give illegal immigrants who came to the U.S. as children a chance at legal status if they complete two years of college or military service. Though the bill has not passed, supporters and critics alike suggested Thursday's announcement could serve to unilaterally carry out its provisions.

Read more: http://www.foxnews.com/politics/2011/08/18/obama-administration-to-review-all-deportation-cases/#ixzz1VR0U4DFd

Just In: Here we go again: Stocks plunge on economic fear

 Stan Choe, AP Business Writer, On Thursday August 18, 2011, 1:57 pm

NEW YORK (AP) -- More signs of economic weakness triggered a global sell-off in stocks Thursday. The Dow Jones industrial average fell 400 points in a return to the wild swings in the market last week.

In the United States, there were reports that more people joined the unemployment line last week than a week earlier, gasoline prices contributed to higher inflation and manufacturing slowed in the mid-Atlantic.

In Europe, bank stocks slid on worries about the region's debt problems. In Asia, Japan's exports fell for the fifth straight month.

The U.S. and European economies are "dangerously close to recession," Morgan Stanley economists wrote in a report. "It won't take much in the form of additional shocks to tip the balance."

The Dow Jones industrial average fell 456 points, or 4 percent, to 10,954 at 1:55 p.m. in New York. The Dow was down as many as 528 points about a half-hour into trading.

The Standard & Poor's 500 index fell 55 points, or 4.6 percent, to 1,138. All but three of the 500 stocks in the index fell. The Nasdaq composite fell 127, or 5 percent, to 2,383.

"This is yet another stage of panic selling," said Gene Peroni Jr., a portfolio manager with Advisors Asset Management with $7.3 billion in client assets. "Investors are reacting first and asking questions later."

Last week was one of the wildest in Wall Street history. The Dow moved more than 400 points on four straight days for the first time.

But stocks had been relatively stable this week because investors were calmed by strong earnings reports and a flurry of corporate acquisition deals. The Dow had fallen 76 points Tuesday and risen four points Wednesday -- the first time that the average rose or fell by less than 100 points on two straight days in nearly three weeks.

That ended Thursday. And with stocks down big, money flooded into U.S. Treasurys and gold, both considered safer investments.

The yield on the 10-year Treasury note briefly fell below 2 percent for the first time, before recovering to 2.09 percent. Low yields show that investors are willing to accept a lower return on their money in exchange for safety. Demand for government debt has stayed high, and yields low, even after Standard & Poor's stripped the United States of its top credit rating.

Gold rose to a record of $1,829.70 per ounce before falling back to $1,821.80. That's up from $1,400 at the start of the year and more than double the price several years ago. The price of gold has set one record after another, with some investors looking for stability and others simply looking to cash in.

The Morgan Stanley economists cut their forecast for growth in developed economies this year to 1.5 percent from 1.9 percent. Over the past 20 years, growth for developed economies has been closer to 2.3 percent. The economists cited policy errors among other factors, including Europe's slow response to its debt problems and the partisan debate in Washington around the U.S. debt level.

Among Thursday's disappointing U.S. economic news:

-- 408,000 people applied for unemployment benefits last week, up from 399,000 the week before and the most in four weeks.

-- Inflation at the consumer level rose 0.5 percent in July, the highest since March. It had fallen 0.2 percent in June.

-- Manufacturing has sharply weakened in the Philadelphia region, according to a report from the Federal Reserve. Manufacturing had been one of the economy's strongest industries since the recession ended in 2009, but its growth has slowed this year.

-- The National Association of Realtors said the number of people who bought previously occupied homes dropped in July for the third time in four months.

The fresh signs of economic weakness underscore the challenge for the Federal Reserve as it tries to help the economy with prices rising and the job market weak, said Jack Ablin, chief investment officer at Harris Private Bank.

"Every time the economy got the sniffles, we had the Federal Reserve standing by with tissues," Ablin said. "This time around, I think the box is empty, and we're going to have to go through this alone. I think we can do it. It's just not something we're accustomed to."

The Fed has already said it will keep short-term interest rates super-low into 2013. But the risk of further stoking inflation may keep it from taking additional steps, such as an additional round of massive bond-buying.

In the meantime, worries about European debt hang over the markets. A default by any country would hurt the European banks that hold European government bonds, plus American banks that have loans to their European counterparts.

"Europe is the big question in the market, and nobody really knows what happens from here," said Scott Brown, chief economist at Raymond James.

On Thursday, stocks in industries that depend on a growing economy fell the most. Industrial stocks in the S&P 500 fell 5.6 percent, stocks of raw materials producers fell 5.5 percent and energy stocks fell 5.4 percent.

NetApp Inc. fell 16.4 percent, the most among stocks in the S&P 500. The maker of computer data storage products reported revenue for last quarter that fell short of analysts' expectations.

JDS Uniphase Corp., a maker of communications equipment, fell 12.6 percent after it gave a profit forecast for this quarter that was below analysts' expectations.

The smallest losses came from industries whose profits are less dependent on the economy. Utility stocks in the S&P 500 fell just 2 percent because customers still turn on the lights during a recession.

The VIX index, a measure of investor fear, rose 30 percent to 41. But it is still below where it was early last week, when it was at 48.

Crude oil fell $4.11 per barrel to $83.47 on worries that a weaker global economy will mean less demand. Falling prices for crude oil should work their way to the gas pump, though, and bring household budgets at least some relief.

Asian markets started Thursday's drop. Japan's Nikkei 225 index fell 1.3 percent. South Korea's Kospi stock index fell 1.7 percent, and India's Sensex index fell 2.2 percent.

The declines extended to Europe. In London, the FTSE 100 index fell 4.5 percent after a report showed that growth in British retail sales slowed more than economists expected last month. Germany's DAX index fell 6.6 percent.

Credit: Associated Press

Just In: Obama: Syria's Assad must step down

By Richard Wolf, USA TODAY


WASHINGTON -- President Obama called Thursday for Syrian President Bashar Assad to step down in the wake of a brutal government crackdown that has killed hundreds of people in his country.


"We have consistently said that President Assad must lead a democratic transition or get out of the way. He has not led. For the sake of the Syrian people, the time has come for President Assad to step aside," Obama said.


Secretary of State Hillary Clinton followed Obama's written statement by going before cameras at the State Department. "It's time for Assad to get out of the way," she said, accusing him of "slaughtering thousands of unarmed Syrian citizens, including children."


Syrian protesters seeking democracy have called for an end to the Assad regime. In response, for five months the Syrian president has used tanks and troops against them, killing hundreds and detaining thousands.


The U.S. announcement is being echoed by other countries in the region and elsewhere, including Britain, France, Germany, the European Union, and Canada.


It was accompanied by even stronger sanctions against Syria, including a ban on importing Syrian petroleum products that Clinton said would "further tighten the circle of isolation around the regime."


While the Syrian people want no international interference in their affairs, she said, "We will stand up for their universal rights and dignity by pressuring the regime, and Assad personally, to get out of the way of this transition."


The United Nations Security Council is meeting later today to discuss what Clinton called the "ongoing threat to international peace and security."


Here is Obama's full statement:


The United States has been inspired by the Syrian peoples' pursuit of a peaceful transition to democracy. They have braved ferocious brutality at the hands of their government. They have spoken with their peaceful marches, their silent shaming of the Syrian regime, and their courageous persistence in the face of brutality -- day after day, week after week. The Syrian government has responded with a sustained onslaught. I strongly condemn this brutality, including the disgraceful attacks on Syrian civilians in cities like Hama and Deir al Zour, and the arrests of opposition figures who have been denied justice and subjected to torture at the hands of the regime. These violations of the universal rights of the Syrian people have revealed to Syria, the region, and the world the Assad government's flagrant disrespect for the dignity of the Syrian people.


The United States opposes the use of violence against peaceful protesters in Syria, and we support the universal rights of the Syrian people. We have imposed sanctions on President Assad and his government. The European Union has imposed sanctions as well. We helped lead an effort at the UN Security Council to condemn Syria's actions. We have coordinated closely with allies and partners from the region and around the world. The Assad government has now been condemned by countries in all parts of the globe, and can look only to Iran for support for its brutal and unjust crackdown.


The future of Syria must be determined by its people, but President Bashar al-Assad is standing in their way. His calls for dialogue and reform have rung hollow while he is imprisoning, torturing, and slaughtering his own people. We have consistently said that President Assad must lead a democratic transition or get out of the way. He has not led. For the sake of the Syrian people, the time has come for President Assad to step aside.


The United States cannot and will not impose this transition upon Syria. It is up to the Syrian people to choose their own leaders, and we have heard their strong desire that there not be foreign intervention in their movement. What the United States will support is an effort to bring about a Syria that is democratic, just, and inclusive for all Syrians. We will support this outcome by pressuring President Assad to get out of the way of this transition, and standing up for the universal rights of the Syrian people along with others in the international community.


As a part of that effort, my Administration is announcing unprecedented sanctions to deepen the financial isolation of the Assad regime and further disrupt its ability to finance a campaign of violence against the Syrian people. I have signed a new Executive Order requiring the immediate freeze of all assets of the Government of Syria subject to U.S. jurisdiction and prohibiting U.S. persons from engaging in any transaction involving the Government of Syria. This E.O. also bans U.S. imports of Syrian-origin petroleum or petroleum products; prohibits U.S. persons from having any dealings in or related to Syria's petroleum or petroleum products; and prohibits U.S. persons from operating or investing in Syria. We expect today's actions to be amplified by others.


We recognize that it will take time for the Syrian people to achieve the justice they deserve. There will be more struggle and sacrifice. It is clear that President Assad believes that he can silence the voices of his people by resorting to the repressive tactics of the past. But he is wrong. As we have learned these last several months, sometimes the way things have been is not the way that they will be. It is time for the Syrian people to determine their own destiny, and we will continue to stand firmly on their side.


Credit: USA Today

Just In: SEC may have destroyed documents, senator says

By Ronald D. Orol, MarketWatch

WASHINGTON (MarketWatch) — The Securities and Exchange Commission may have destroyed documents and compromised enforcement cases involving activity at large banks and hedge funds during the height of the financial crisis in 2008, according to allegations made by a lawmaker on Wednesday.

“From what I’ve seen, it looks as if the SEC might have sanctioned some level of case-related document destruction,” said Sen. Chuck Grassley, Republican of Iowa, in a letter to the agency’s chairman, Mary Schapiro.

“It doesn’t make sense that an agency responsible for investigations would want to get rid of potential evidence. If these charges are true, the agency needs to explain why it destroyed documents, how many documents it destroyed over what timeframe, and to what extent its actions were consistent with the law.”

Agency staff “destroyed over 9,000 files” related to preliminary agency investigations, according to a letter sent in July to Grassley, the top Republican on the Senate Judiciary Committee, and obtained by MarketWatch.

The allegations were made by SEC enforcement attorney, Darcy Flynn, in a letter to Grassley. Flynn is a current employee, and according to the letter, received a bonus for his past year’s work.

Flynn alleges the SEC destroyed files related to matters being examined in important cases such as Bernard Madoff and a $50 billion Ponzi scheme he operated as well as an investigation involving Goldman Sachs Group Inc. GS -0.04%   trading in American International Group credit-default swaps in 2009.

Flynn also alleged that the agency destroyed documents and information collected for preliminary investigations at Wells Fargo & Co. WFC +1.34% , Bank of America Corp.BAC -0.27% , Citigroup C +0.03%  , Credit Suisse CS +0.38%  , Deutsche Bank DB +0.79% Morgan Stanley MS -0.12%  and the now-bankrupt Lehman Brothers.

The letter goes into particular detail about Deutsche Bank, the former employer of current SEC enforcement chief Robert Khuzami as well as former enforcement chiefs Gary Lynch and Richard Walker.

The allegations that the SEC destroyed documents were first reported by the Rolling Stone magazine in a report Wednesday.

An SEC spokesman did not return a request for comment. However, according to the Rolling Stone article, the SEC told the National Archives and Records Administration that the commission “is not aware of any specific instances of the destruction of records from any other MUI.”

The SEC added that it “cannot say with certainty that no such documents have been destroyed over the past 17 years.” Read Grassley's letter to the SEC

Flynn’s lawyer, Gary Aguirre, was a former SEC attorney. Aguirre was fired in September 2005 as he was investigating allegations of insider trading at the major hedge fund Pequot Capital Management.

At the time, the SEC said Aguirre had personality conflicts with other staff attorneys, was reticent to be supervised and did not follow the agency’s chain of command. 

Credit: http://www.marketwatch.com/