Mainstream News

New York Fed Agreed To Testify For Bank Of America In Exchange For $43 Million

"The previously confidential agreement spells out the terms of a deal in which the New York Fed received $43 million from Bank of America’s Countrywide unit. The money changed hands to settle a narrow dispute involving cash flows on several mortgage securities held by an investment vehicle, known as Maiden Lane II. That vehicle was created by the New York Fed as part of the rescue of A.I.G., which had held the Countrywide securities. But in exchange for that $43 million, the New York Fed did something else for Bank of America. It agreed to testify on behalf of the bank in its legal battle against A.I.G. over fraud claims." Continue reading →

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Bitcoin Ready To Go Mainstream With First U.S. Exchange

"Recently armed with $500,000 in seed funding and a partnership with Silicon Valley Bank, Coinlab, a startup based out of Seattle, is bringing its innovative Bitcoin project closer to the U.S. market. The deal brings over the North America-based book of Mt. Gox, one of the largest and most widely used bitcoin to currency exchanges. According to Coinlab CEO, Peter Vessenes, the book is worth nearly $500 million in annualized trade volumes, which he expects to grow nearly ten times over the next year. Silicon Valley Bank, a company that provides financial services to emerging growth companies, will be holding deposits of bitcoin and dollars for Coinlab." Continue reading →

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Hundreds of thousands march against austerity in Portugal

"Hundreds of thousands of people took to the streets of Lisbon and other Portuguese cities Saturday to protest against the government's austerity measures. The rallies were organised by a non-political movement which claimed 500,000 marched in the country's capital and another 400,000 in the main northern city of Porto. But the mood of the crowd was clearly political, calling for new elections with banners declaring 'Portugal to the polls!' and 'If you fall asleep in a democracy, you wake up in a dictatorship'. Another banner showed a picture of centre-right Prime Minister Pedro Passos Coelho with the caption: 'Today I am in the street, tomorrow it will be you.'" Continue reading →

Continue ReadingHundreds of thousands march against austerity in Portugal

Italian newcomer Grillo predicts collapse in six months

"Italy's comedian turned protest politician, Beppe Grillo, has told German news magazine 'Focus' that he believes the country's political system could crumble within the year. 'I'd give the old parties another six months - then it will be all over here,' Grillo said in excerpts of the interview released on Saturday ahead of Focus' publication. 'Then they won't be able to cover pension payments or public sector salaries anymore.' Grillo, a populist who pledged a referendum on Italy withdrawing from the euro during the country's recent election campaign, said that Italy's national debt was becoming unsustainable and that its terms had to be renegotiated." Continue reading →

Continue ReadingItalian newcomer Grillo predicts collapse in six months

Fannie Mae and Freddie Mac to begin merging operations

"The regulator of mortgage finance giants Fannie Mae and Freddie Mac detailed plans Monday to begin contracting their business while merging their securitization operations. Federal Housing Finance Agency acting director Edward DeMarco said the two, rescued by the government in 2008 in a $180 billion bailout after the housing market collapse, needed to begin reducing their dominance of the market as private financing makes a comeback. One effort planned for this year is to raise the fees they charge to mortgage lenders for guaranteeing their loans, reducing the market’s near-complete dependence on the two." Continue reading →

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United Nations report: ‘Designer drug’ use, abuse and production surging

"Designer drugs are multiplying at a worrying rate and increasingly sending users to hospital, a UN-affiliated report said Tuesday, calling for international efforts to stem the spread of these substances. Aggravating the problem further was the fact that these drugs were not subject to international control regimes and were readily available on the Internet, requiring states and international institutions to find new ways to identify the drugs and stop their distribution. Another problem was the rise in prescription drug abuse, including painkillers, sedatives and others used to treat epilepsy, attention-deficit hyperactivity disorder and mental illnesses." Continue reading →

Continue ReadingUnited Nations report: ‘Designer drug’ use, abuse and production surging

United Nations says changing U.S. marijuana laws violate international drug conventions

"Cannabis decriminalisation measures across the United States, including the medical use of marijuana in California, have been sharply criticised by the United Nations, which has warned Washington they violate the international drug conventions. The International Narcotics Control Board (INCB), which polices the drug treaties, has also warned about the growing public health threat from the 'unprecedented surge' in 'legal highs' and called for concerted global action to curb the growing trade." Continue reading →

Continue ReadingUnited Nations says changing U.S. marijuana laws violate international drug conventions

The IRS wants to tax your illegal income

"Dealt some drugs? Stole some cash? There's a line on your income tax form to declare it. As ridiculous as it sounds, the federal government requires that money acquired through illegal means be reported and taxed just like legitimate income. It's right there on the official IRS tax instructions: 'Income from illegal activities, such as money from dealing illegal drugs, must be included in your income on Form 1040, line 21, or on Schedule C or Schedule C-EZ (Form 1040) if from your self-employment activity.' If you tell the IRS you made $1 million from stealing money or dealing drugs, does the agency tip off the cops?" Continue reading →

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Swiss to Ban Big Cash Purchases to Curb Money Laundering

"Switzerland is proposing to ban cash payments in excess of 100,000 francs ($107,500), including on watches and real estate, and wants to tighten the due diligence requirements for banks to prevent money laundering. Transactions above that amount will have to be processed through a bank. According to the proposal, banks will also have to undertake thorough checks to ensure funds are tax-compliant and must in the future refuse to accept any funds they believe are not declared. The measures implement recommendations from the Financial Action Task Force, an international organization tasked with co-ordinating the fight against money laundering." Continue reading →

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U.S. calls on UN to ban drunken diplomats from budget negotiations

"The assembly’s budget body, the Fifth Committee, holds marathon negotiations in December each year on spending and national contributions. These often last all night for several days in a row so that a vote can be held before the end of year holidays. Some envoys have turned up for talks 'falling down drunk,' said one diplomat, speaking on condition of anonymity. 'On one occasion the note-taker who was meant to be recording the talks was so intoxicated he had to be replaced,' said another. Both spoke on condition of anonymity." Continue reading →

Continue ReadingU.S. calls on UN to ban drunken diplomats from budget negotiations