Thursday, April 28, 2011

On Wednesday, at the first live public news conference ever given by the Federal Reserve (Fed), Federal Reserve Chairman Ben S. Bernanke explained the US central bank’s recent policy to a small group of reporters and answered some questions.

The conference was conducted two hours after the release of a report by the Fed’s policymaking committee, the Federal Open Market Committee outlining its policies decided the day before. Until 1994 the Fed gave no information about the policy decisions made in its meetings pertaining to short-term interest rates and other policies. The public was left to guess what decisions were. In 1994 the Fed began issuing brief reports.

Unlike the US, the central banks in Europe, Japan, Canada and other countries have regularly meetings with the press after making such policy decisions.

The public has increasingly been aware of the secretive practices of the Fed, especially after its unprecedented intervention with massive bailouts of large financial institutions during the recent financial crises.

At Wednesday’s meeting, it was decided that the Fed would maintain near-zero interest rates to stimulate the economy. It announced that it plans to end its program of buying back treasury bonds by the end of June, a program receiving criticism from Republicans concerned about the budget deficit.

Bernanke’s exchange with reporters, called “historic” by the Los Angeles Times, was the first of a series of regular news conferences planned to be held quarterly by Bernanke to provided the Fed with more transparency. He was cautious in his remarks. He made no news but explained in general terms the Fed’s policy.

He said the Fed is attempting to revive the US economy by creating jobs and keeping inflation low.

“The trade-offs are getting less attractive at this point,” Bernanke said. “Inflation has gotten higher … it’s not clear we can get substantial improvements in payrolls without some additional inflation risk.”

During the conference, Bernanke said he recognized that the average American was unhappy with the increasing inflation and the slow job growth, but said the Fed projected that long-term inflation will remain stable while he acknowledged the effects of the short-term price increases which he said were driven largely by the increase in the price of oil.

“There’s not much the Federal Reserve can do about gas prices, per se, at least not without derailing growth entirely, which certainly is not the right way to go,” Bernanke said. “After all, the Fed can’t create more oil.”

When asked by reporters to explain his vague answers, he gave general replies. For example, when asked to clarify the Fed’s intention to maintain near-zero interest rates for an “extended period” he said the wording suggested this period would probably continue through a couple more policymaking meetings at least.

“Unfortunately, the reason we use this vaguer terminology is we don’t know with certainty how quickly response will be required,” he said.

Diane Swonk, chief economist at Mesirow Financial, said of Bernanke’s performance at the press conference, “He was well-prepared and did exactly what he wanted to do – do no harm.”

Sunday, February 6, 2005

LONDON,United Kingdom —The new London police commissioner Sir Ian Blair has warned middle class dinner party users of cocaine that he is out to get them. In contrast, he is relaxed about cannabis smokers, saying he does not wish to waste police time pursuing them. He has been quoted as saying: “People seem to think the price of a wrap of cocaine is 50 quid [UK pounds], but the cost is misery on estates here and a trail of blood back to Colombia. Someone has died to bring it [cocaine] to a dinner party. People who wouldn’t dream of having a non-organic vegetable don’t seem to notice the blood on their fingers.”

Blair is clearly trying to prick the conscience of the 624,000 estimated cocaine users in the UK, hoping to persuade them to boycott this Class A drug. Others, including Colombian Nobel Prize winner and author Gabriel García Márquez, have stated that the misery both in Colombia and on poor housing estates in the UK is caused not by drugs themselves but by the banning of them. Marquez has specifically said that he cannot see the end of the civil war in Colombia as long as the illegal drug trade exists, and he cannot see the end of the illegal drug trade unless drugs are legalized. The trade in cannabis also generates violence both at home (in the UK) and abroad, in spite of Sir Ian’s softly, softly approach to this recently reclassified Class C drug.

Tuesday, January 19, 2010

Drivers in the Russian capital, Moscow, were given an unexpected show courtesy of a 30-by-20 foot electronic highway billboard when an explicit pornographic video was played for nearly twenty minutes in place of the paid advertisement clips that are usually shown. The incident happened near the entrance into Serpukovskiy tunnel on Sadovoe Ring Road, about 2 kilometers south of the Kremlin.

“Within three minutes we found it out, and within fifteen minutes the screen was shut off,” the deputy head of the Moscow city advertising committee, Alexander Menchuk, said in a statement to Interfax. A passerby told the Associated Press that she was “so shocked that I couldn’t even shoot video or take a picture of it.”

The display screen’s owner, the Three Stars Advertising Agency of Panno.ru, said that computer hackers attempting to execute a practical joke were likely to blame. Viktor Laptev, commercial director for the firm said, “They were either acting out of hooliganism or were from a rival company.”

Although a city official has been quoted as telling local media that Moscow would increase security of data transmission in light of what happened, local police say they have yet to receive a single complaint about the incident, and thereby have not opened an investigation. Nudity on television is officially banned in Russia.

Thursday, October 3, 2013

A review this week by Wikinews of US Consumer Financial Protection Bureau (CFPB) complaints about mortgages in the United States shows Bank of America leads all lending institutions in complaints.

Since mortgages complaints were recorded in December 2011, 77,622 total have been added to CFPB’s database. 29.2% of these complaints involved Bank of America, with the second most received by Wells Fargo, accounting for 15.5% of all complaints. JPMorgan Chase ranked third by volume of complaints with 9.8%. Ocwen was fourth with 8.7% and Citibank was fifth with 4.8%. Nationstar Mortgage; Green Tree Servicing, LLC; HSBC; PNC Bank; U.S. Bancorp; OneWest Bank; SunTrust Bank; Flagstar Bank; and Select Portfolio Servicing, Inc. each had between 1.0 and 3.8% of total complaints. The remaining 14.4% of all complaints about consumer mortgages were divided between about 530 other lending institutions.

The Motley Fool reported last month that for the past fiscal quarter, the biggest US based mortgage lenders were from first to fifth Wells Fargo, JPMorgan Chase, Bank of America, Quicken Loans and U.S. Bancorp.

According to the US Federal Reserve, debt for family residences stands at US$10.706 trillion for the second quarter of 2013. As of the end of June of this year, Bank of America is the United States’s second largest commercial bank with US$1.343 trillion in domestic assets. Wells Fargo is the fourth largest commercial bank with US$1.251 trillion in domestic assets. JPMorgan Chase is the largest US commercial bank with US$1.329 trillion in domestic assets and US$1.947 trillion in total assets.

The mortgage complaints in the CFPB report include several subproducts. Conventional fixed mortgages account for 27.1% of all complaints. Conventional adjustable mortgages account for 10.0%. FHA mortgages account for 7.7% of all complaints. Home equity loans or lines of credit account for 3.8% of all complaints. VA mortgages are 1.4% of all complaints. Second mortgages and reverse mortgages each account for 0.6% of complaints. The remaining 48.7% of complaints are about other mortgages or other mortgage issues. A few years ago, FHA loans accounted for about 10% of all US mortgages while VA loans accounted for about 3%. Prime loans accounted for over 75% of the market and the rest were subprime mortgages.

California leads all states by volume of complaints with 14768. It is followed by Florida, New York, Georgia and Texas. When complaints are divided by a state’s total population, New Hampshire leads. The state is followed by Washington D.C., Maryland, Georgia and Florida. Complaints do not correlate with national rankings for August’s foreclosure rate by state where Nevada topped the list, followed by Florida, Ohio, Maryland and Delaware.

Two zip codes account for over 1,000 total complaints between them. 565 complaints originated in the 48382 zip code, which is in Commerce Township, Michigan, located in suburban Detroit. 553 complaints originated in the 33071 zip code, in Coral Springs, Florida. According to real estate website Zillow, there are currently 1,033 properties in foreclosure in Coral Springs while Commerce Township only has 131 properties currently in foreclosure. Four other zip codes have 100 plus complaints originating from them. 91730, in Rancho Cucamonga, California, had 158 complaints. 33409, in West Palm Beach, Florida, had 132. 92626, in Costa Mesa, California, had 125 complaints. 92660, in Newport Beach, California, had 122 complaints. Respectively, the towns had 534, 1,068, 153, and 134 properties currently in foreclosure. These numbers are higher than for the cities of a few sampled zip codes where there was only one complaint, such as Gold Hill, Oregon which has 4 properties in foreclosure, and Decatur, Illinois which has 6 properties in foreclosure.

The CFPB categorizes complaints into six categories: “Loan modification, collection,foreclosure” or problems when a person is unable to pay; “Loan servicing, payments, escrow account” or problems with making a payment; “Application, originator, mortgage broker”; “Credit decision / Underwriting”; “Settlement process and costs”, and “Other”. The CFPB says the complaint types indicate consumers “appear to be driven by a desire to seek agreement with their companies on foreclosure alternatives. The complaints indicate that consumer confusion persists around the process and requirements for obtaining loan modifications and refinancing, especially regarding document submission timeframes, payment trial periods, allocation of payments, treatment of income in eligibility calculations, and credit bureau reporting during the evaluation period.” Currently, 59.6% of all complaints against lenders deal with being unable to pay. 25.1% deal with problems in making a payment. 7.0% have to do with the application process.

Of the complaint-heavy zip codes, for 48382 in Commerce Township, Michigan, 98.9% of all complaints have to deal with being unable to pay. Accounting for 23.4% of all mortgage complaints in Commerce Township, 132 of the complaints for being unable to pay were made regarding Bank of America, accounting for 97.8% or all but 3 complaints against them from the zip. 121 of the Bank of America responses in Commerce Township were closed with explanation and 12 were closed with non-monetary relief. 33071 in Coral Springs is different, with 537 of the 553 complaints being categorized under other. Only 11 complaints relate to foreclosure and issues with being able to pay. 92626 in Costa Mesa, where 32% of the mortgage complaints were about Bank of America and 26.4% were about Wells Fargo, had 93.6% of its complaints dealing with being unable to pay. 5 total complaints dealt with payment issues and 3 dealt with applications.

Beyond regional variance in complaint types lodged, the top five mortgage lenders by volume of complaints all had being unable to pay as their top complaint category, ranging between 55.8% for Citibank and 69.4% for Bank of America. Problems with payment accounted for the second largest area of complaints, with Ocwen having the largest percentage of complaints at 31.9% and Bank of America having the smallest at 18.8%. Foreclosure was the top area of complaints for a number of other lending institutions including 1st Alliance Lending, OneWest Bank, Ally Bank, Banco Popular de Puerto Rico, Bank of the West, BMO Harris, BOK Financial Corp, Caliber Home Loans, Inc, Capital One, Deutsche Bank and EverBank.

Nationally, complaints reached a high of 5,840 for January 2013, 1,107 more than the next highest month of April 2013. The total emerging for September is the second lowest since records were first kept in December 2011. On a state by state level, this pattern largely repeats with a major exception for Florida which saw a peak of 849 complaints in June 2012. Then, as now, Florida was one of the top five states in the nation in its foreclosure rate. The national January spike came as the Qualified Mortgage standard required by the The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 came into play. It required mortgage lenders to take steps to insure borrowers could repay their mortgages.

Bank of America’s complaint volume follows the national trend, with a spike in January 2013 with 1,925 total complaints. Unlike nationally, the next month by volume of complaints was February of this year with 1,598 complaints. Prior to that, the highest month was May 2012 with 1,418 complaints. The lowest volume of complaints is September this year with 334.

Wells Fargo matched national trends for volume of complaints by month, with the exception of the current month being the lowest on record for number of complaints with 197 compared to the next lowest month, December 2011, when they had 221. JPMorgan’s complaint volume by month spiked in January and March of this year with 504 complaints. April of this year was the next highest month with 493 complaints, edging out May of last year with 488 complaints. September this year is on track to be the lowest month by complaint volume.

The federal government shutdown is unlikely to impact the current mortgage situation in the United States directly for most consumers, though mortgage processing by the Federal Housing Administration could be slower, resulting in fewer mortgages processed.

Wednesday, October 15, 2008

Today, the Constitutional Court of Thailand (Supreme Court) issued the sixth arrest warrant for Thailand’s deposed premier, Thaksin Shinawatra. Following on from a string of corruption charges, the latest centres on the country’s telecommunications industry. The former Prime Minister was removed by a bloodless military coup in September 2006 while at the United Nations in New York. Prior to the coup the country experienced widespread unrest, demonstrations, and allegations against Thaksin and his Thai Rak Thai party of corruption and vote buying.

The warrant is over Thaksin’s failure to appear in court on charges relating to conversion of concession payments in the country’s lucrative telecoms market to excise tax during 2003; a move that is estimated to have cost the country’s exchequer 40 billion baht (US$1.2 billion). The deposed PM remains in self-imposed exile in London, having been there since August. At that time he and his wife left Thailand whilst on bail related to the charges surrounding the Ratchadaphisek land purchase deal. The deal saw Thaksin’s wife, Khunying Potjaman purchase what is considered a prime piece of real estate for 772 million baht ($22.7 million) at auction; this price was described as a bargain. At this point the ex-PM has not been convicted on any of the charges, although his wife, Khunying, faces a jail sentence.

Next Tuesday, will see the trial over the Ratchadaphisek land case again come before the Supreme Court—this time with a verdict possibly to be read. This could be deferred due to the defendants’ absence, but a guilty verdict could see Thaksin facing jail time should he return to Thailand.

Last month, saw other warrants issued against Thaksin, in relation to the country’s numbers lottery. Malfeasance allegations led to charges over the sale of two and three digit numbers during the 2001-2006 period of his time in office as Prime Minister. The trial, currently suspended by the Criminal Division for Holders of Political Office, will resume and examine further evidence in December.

The ongoing controversy surrounding Thaksin has seen calls for his diplomatic passport to be revoked. The movement for the coveted red passport to be withdrawn started in mid-September with Thai air force chief, Chalit Phukpasuk, referencing the then-outstanding warrants and widespread lack of respect for the former PM stated, “he has now fallen from grace, he no longer deserves such an honour”. The general, who retired at the end of September, condemned Thaksin for failing to appear in court and defend himself. The newly appointed Foreign Minister and deputy PM has washed his hands of the diplomatic passport issue, preferring to pass this off as an issue for the Prime Minister himself. The military junta of Surayud Chulanont had revoked the passport, but this decision was revoked by the democratically elected Foreign Minister when civilian government was restored.

Adding to the public pressure on the former PM, Thailand’s armed forces’ supreme commander, Boonsrang Niempradit, called on the current Prime Minister Somchai Wongsawat to ensure appropriate justice was meted out to Thaksin. Boonsrang asserted the prime minister must, “dispense justice to everyone, ensuring justice does not necessarily mean offering assistance. Sometimes, justice involves meting out punishment as well”. Current PM Somchai, brother-in-law of exiled Thaksin, has his own legal worries that could see him removed from office and parliament; charges against him centre round a share scandal. His holdings in a telecoms company which does business with the state are allegedly in contravention of several constitutional articles.

Saturday, August 15, 2009

A cargo ship spotted off the African island nation of Cape Verde could be the missing MV Arctic Sea.

The Maltese flagged MV Arctic Sea disappeared off the French coast sometime after July 29. Owned by the Russian Arctic Sea company she was operated by the Finnish Solchart Management company and had a Russian crew.

French intelligence sources have found a ship matching the Arctic Sea’s description about 400 Nautical miles north of São Vicente.

The Arctic Sea was on a scheduled route from the Finnish seaport of Pietarsaari to the Algerian seaport of Béjaïa with a cargo of timber when it was boarded in Swedish waters between the islands Öland and Gotland on the night of July 24. The alleged boarders left the ship the same day according to its crew and the ship continued her voyage although it would have been expected to anchor at the nearest port.

The last official contact with the ship was with the Maritime and Coastguard Agency in Britain on July 28. Viktor Matveyev, the director of Solchart Management says the ship radioed that it was off the coast of Portugal on July 31. The 98-meter-long ship has so far not reached the Straits of Gibraltar and is now being sought by the Portuguese Navy and Russian Navy.

If proven this could be the first case of piracy in Europe in the modern era. There is speculation as to the reason for the ship’s hijacking, as its cargo of wood, valued at 1.3 million euros, is not especially valuable. Suggestions include possible contraband, and the possibility of a commercial dispute between the crew or some other party and the ship’s owners.

Thursday, June 21, 2007

A recall issued last week for Thomas the Tank Engine toys made in China and containing lead-based paint, is the latest scare for consumers, and follows recent scandals involving Chinese-made pet food, pharmaceuticals, toothpaste and other toys, The New York Times has reported in a series of articles.

Last week, RC2, a U.S. toy company based in Oak Brook, Illinois, issued a recall for its popular wooden “Thomas the Tank Engine and Friends” train sets. The recall involved 1.5 million “Thomas Wooden Railway” vehicles and train sets sold at toy stores and various retailers across the U.S. from January 2005 through June 2007.

A subsequent recall has been issued in the United Kingdom, where Thomas the Tank Engine was originated in the 1940s as a character in a children’s story by the Reverend W.V. Awdry. Around 70,000 toys are involved in the U.K. recall, according to The Guardian.

“RC2 has determined that the surface paints on the recalled products contain lead. Lead is toxic if ingested by young children and can cause adverse health effects,” the Consumer Product Safety Commission said in a press release dated June 13. “Consumers should take the recalled toys away from young children immediately and contact RC2 Corp. for a replacement toy,” the commission said.

Those “adverse health effects” could include brain and nerve damage, especially in young children, as well as blood and brain disorders. Severe lead poisoning causes vomiting, diarrhea, convulsions, anemia, loss of appetite, headaches and in particularly high doses, coma and death.

In an article on Monday, The New York Times reported that recalls have been issued for 24 different toys in the U.S. in the past year, and every one of them was made in China. According to the Toy Industry Association, toys made in China account for around 70 percent to 80 percent of all the toys sold in the U.S., The Times said.

“These are items that children are supposed to be playing with,” Prescott Carlson was quoted as saying by The Times. Carlson is a co-founder of a child-safety website called Imperfect Parent, which tracks recalls of toys and other baby products. “It should be at a point where companies in the United States that are importing these items are held liable,” Carlson said.

RC2 would not comment to The Times, and a Consumer Product Safety Commission spokesman would not say how long ago the problem with the lead paint was discovered.

For a follow-up article on Tuesday, The Times visited a factory in Dongguan, in China’s Guangdong province, where the “Thomas and Friends” toys are made. The paper interviewed workers and took photos on the factory floor.

“You’re intruding,” a factory manager identified only as Zhong was quoted as telling the reporters. “Tell me, why exactly are you here?”

During the visit, a reporter, translator and a photographer were detained by factory officials, and released a day later after local police and government officials intervened.

The factory also produces other toys for RC2, including toy John Deere trucks, NASCAR racing models and M&M’s cars, The Times said. RC2 makes the toys under licenses from various companies. The “Thomas and Friends” toys are made under license from Hit Entertainment, which owns the “Thomas” brand.

According to RC2, items in the “Thomas and Friends” recall are:

• Red James Engine & Red James’ # 5 Coal Tender
• Red Lights & Sounds James Engine & Red James’ #5
• Lights & Sounds Coal Tender
• James with Team Colors Engine & James with Team Colors *#5 Coal Tender
• Red Skarloey Engine
• Brown & Yellow Old Slow Coach
• Red Hook & Ladder Truck & Red Water Tanker Truck
• Red Musical Caboose
• Red Sodor Line Caboose
• Red Coal Car labeled “2006 Day Out With Thomas” on the Side
• Red Baggage Car
• Red Holiday Caboose
• Red “Sodor Mail” Car
• Red Fire Brigade Truck
• Red Fire Brigade Train
• Deluxe Sodor Fire Station
• Red Coal Car
• Yellow Box Car
• Red Stop Sign
• Yellow Railroad Crossing Sign
• Yellow “Sodor Cargo Company” Cargo Piece
• Smelting Yard
• Ice Cream Factory

Toys listed that are marked with codes containing “WJ” or “AZ” are not included in the recall.

Earlier, RC2 said that customers would have to cover shipping costs to return the toys to the company. It later agreed to cover postage after angry complaints by parents, The Times said in an article yesterday. Refunds will take about two months.

Wednesday, April 4, 2012

The following is the fifth in a monthly series chronicling the U.S. 2012 presidential election. It features original material compiled throughout the previous month after a brief mention of some of the month’s biggest stories.

In this month’s edition on the campaign trail, a politician from outside the fifty states receives significant mention as a potential Republican Party vice presidential nominee, Wikinews gets the reaction of three Democratic Party candidates after the party strips delegates from two of their fellow challengers, and a minor third party removes its presidential nominee for fraud.