Scandals involving major financial institutions continue to rock the banking world, the latest of which involves UBS that is being accused of manipulating London interbank offered rates or Libor. Libor, extensively used by banks all over the world particularly in the US and Europe, is the benchmark for determining average interest rates on virtually everything from home loans to credit cards to pension funds and municipal bonds. Any change in the rate no matter how small could mean millions of dollars in profits to one bank – or could spell an equal amount of losses for hedge funds, investors or other banks.
Several arrests have already been made over the weekend, with the US Department of Justice also preparing charges to be brought against a number of individuals allegedly involved in the manipulation of Libor interest rates in Tokyo and many parts of Europe starting in 2007, with UBS facing a $1.6 billion settlement with the US Justice Department and UK and Swiss financial authorities. But according to insiders, the investigation is spreading far and wide with several banks being eyed on suspicion of Libor manipulation as far back as 2005.
Much earlier, Barclays sacked several employees and agreed to a $453 million settlement with US and UK regulators over a similar Libor interest rate rigging scandal that led to the departure of its chief executive officer in July. The Royal Bank of Scotland, which is facing a probe over the same manipulation charges, could reportedly be slapped with penalties estimated at $564 million.
Many are calling 2012 the “annus horribilis” for giant banking institutions in the West, with shocking revelations about the misdeeds of these financial giants. HSBC for instance was accused of engaging in money laundering activities involving terrorist organizations, with a US Senate report using the phrase “pervasively polluted” in describing the bank for allowing the diversion of “dirty money” from individuals and organizations involved in criminal and terrorist activities. The bank agreed to a settlement amounting to $1.9 billion over allegations that it allowed itself to be used by terrorists, drug lords and rogue states for a period spanning 2000 to 2010.
Even credit card giants Visa and Mastercard were dragged into controversy, with allegations of connivance concerning credit card fees. Both naturally denied the allegations but agreed to pay $7.3 billion to resolve lawsuits filed by merchants and retailers “in the best interest of all parties involved” – a statement which many said was tantamount to a “confession of guilt.”
Felix’s (the) CATS Harley-Davidson
Felix Ang of CATS Motors will be launching the iconic Harley-Davidson motorbike in the first quarter of 2013 with US Ambassador Harry Thomas as guest of honor. This certainly comes as exciting news for avid Filipino bikers who have been waiting for the entry of the high-end American brand into the country.
Recently Felix Ang had asked President Noy if he liked riding motorcycles, and the president recounted how in his early teens he to had to listen to a lengthy sermon by his mother when she found out he rode a motorcycle with a friend. When his father (who was incarcerated at the time) heard about the motorcycle adventure, the young Noynoy endured an even lengthier sermon about riding a motorbike.
But to thousands of Filipino big boys, the ultimate in toys is no less than the roaring, two-wheeled Harley-Davidson whose price range can easily go from P1 million and more depending on the make and model.
Connecticut school shooting revives gun control debate
The shocking massacre of schoolchildren – some of them as young as five – at an elementary school in the US has sparked fresh debates regarding gun control. The right to bear arms is enshrined in the Second Amendment of the US Constitution, but the seeming laxity of many states regarding gun ownership plus the spate of gun homicides seems to be driving the argument for stricter gun control not only in the US but in neighboring Canada.
According to available data, the United States has the highest rate of gun ownership in the world at 88 percent, followed by Yemen at a much lower rate of 54.8 for every 100 people. But while the US does not have the highest ranking when it comes to gun murders (number 28) since the dubious distinction belongs to Honduras, El Salvador and Jamaica, this is little consolation for those whose loved ones were victims of gun homicides, like the relatives of the 20 children and eight adults who perished during the still unexplained shooting rampage of a young man who stormed his way into the elementary school after shooting his mother, a schoolteacher, at home.
According to a UN Office on Drugs and Crimes UNODC)/Small Arms survey, an average of 9,146 Americans are killed by guns, compared to Canada with 173 and England/Wales with 41 gun homicides. Experts attribute the high number of gun deaths to the ready availability of firearms in the US with only a credit card or a driver’s license as sufficient identification or prerequisite needed for a purchase, in contrast with Canada where it could take up to 60 days to get a firearm – and that’s after complying with registration, course training and other background checks.
In the Philippines, no reliable data on the number of gun deaths is readily available.
“More fun in the Philippines” catching on
The “It’s more fun in the Philippines” ads aired regularly over networks in Canada and the US West Coast have apparently caught the attention of many Canadians and Americans. Many are clearly impressed – they are so tempted to visit the Philippines. We must congratulate the Department of Tourism Secretary Mon Jimenez for the attention-getting ads.
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