Showing posts with label Citizens. Show all posts
Showing posts with label Citizens. Show all posts

Sunday, March 17, 2013

Cyprus Rapes Citizens with 6.75% to 9.9% "Tax" on Deposits; Contagion of Idiocy is Everywhere

The hot news out of Cyprus today is the direct confiscation of depositor’s money via an alleged tax on deposits of 6.75 percent on amounts less than 100,000 euros and 9.9 percent above that.
The measures will raise 5.8 billion euros, Dutch Finance Minister Jeroen Dijsselbloem, who leads the group of euro-area ministers, told reporters early today after 10 hours of talks in Brussels. The euro region’s bailout kitty and, possibly, the International Monetary Fund will look to make up the shortfall. A partial “bail-in” of junior bondholders is also possible.

Funds to pay the levy were frozen in accounts immediately, ECB Executive Board Member Joerg Asmussen said.


Officials have struggled to find an agreement that would rescue Cyprus, which accounts for just half of a percent of the euro region’s economy, without unsettling investors in larger countries and sparking a new round of market contagion.


Read that last paragraph carefully. Officials raped Cyprus citizens to avoid “unsettling investors in larger countries”.


Here’s the deal. Large investors should have risk. The nannycrats and thugs in Europe still don’t see it this way and this is the most blatant example of theft yet, all in the name  of preventing “contagion”.


Contagion of Idiocy is Everywhere.


Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com



Mish’s Global Economic Trend Analysis




Cyprus Rapes Citizens with 6.75% to 9.9% "Tax" on Deposits; Contagion of Idiocy is Everywhere

Sunday, February 24, 2013

RBS plans IPO for U.S. arm Citizens in next two years

People walk past a Royal Bank of Scotland office in London February 6, 2013. REUTERS/Neil Hall

People walk past a Royal Bank of Scotland office in London February 6, 2013.

Credit: Reuters/Neil Hall

LONDON | Sun Feb 24, 2013 9:09am EST

LONDON (Reuters) – British state-backed lender Royal Bank of Scotland (RBS.L) is set to signal this week that it plans a partial sale of its U.S. bank Citizens this year or next, a source close to the matter said.

RBS will say at its annual results on Thursday that its preferred option for Citizens is an initial public offering (IPO) in New York to sell about 20-25 percent of the bank, the source said.

Britain’s financial regulator has put pressure on RBS to sell Citizens, which analysts have valued at between $ 9 billion and $ 15 billion, to bolster its capital and concentrate its focus on its core UK business.

The bank announced on Sunday that it is to cut jobs in India as a part of its plan to wind down retail and commercial operations in the country.

However, it is keen to avoid selling Citizens at a knock-down price, and a partial share offering would create price transparency and improve its strategic options, the source said

The board has not finalised the plan, but the Financial Services Authority appears to be supportive, he added.

Canada’s Toronto Dominion Bank (TD.TO) has for some time been seen as a possible buyer of Citizens. Other suitors could include U.S. regional banks PNC (PNC.N) and U.S. Bancorp (USB.N) or Brazil’s Itau Unibanco (ITUB4.SA), bankers and analysts have said.

RBS declined to comment.

The bank is under pressure to get in shape so the government can start selling its shares. The taxpayer owns 82 percent of RBS after a 45 billion pound ($ 69 billion) rescue in 2008.

RBS Chairman Philip Hampton told Reuters in October that the bank was preparing for the government to start selling its shares before the next general election in 2015.

The Bank of England has also said that banks need to strengthen their capital as fines and mis-selling costs add up, economic weakness continues and regulators impose stricter rules on how banks assess risk weightings for their assets.

RBS Chief Executive Stephen Hester is nearing the end of a five-year restructuring plan, which has shrunk the bank’s balance sheet by 700 billion pounds but has still left the taxpayer sitting on a paper loss of 14 billion pounds on its stake.

Still haunted by past mistakes, the bank is expected to report another loss on Thursday.

It was fined $ 612 million last month for manipulating Libor interest rates and is expected to set aside at least another 1 billion pounds to cover the cost of mis-selling scandals.

Sky News reported at the weekend that RBS will increase its provision for mis-selling interest rate swaps by about 700 million pounds and raise its provision for payment protection insurance claims by more than 400 million pounds.

RBS is also expected to shrink its investment bank further, even though it has been cut back heavily already and accounts for about 20 percent of the group’s operating profit.

(Editing by David Goodman)


Reuters: Business News


RBS plans IPO for U.S. arm Citizens in next two years

Wednesday, February 20, 2013

Citizens United Part II? Supreme Court takes up direct campaign donations

The U.S. Supreme Court will return to the controversial question of campaign finance once again. On Tuesday, the court announced it will take up a case challenging limits on how much individuals can contribute directly to candidates or political parties within an two-year election cycle. Congress put the limits in place in the 1970s in response to the Watergate scandal, as an effort to curb corruption through large political donations. 

A conservative Alabama businessman named Shaun McCutcheon brought the case that the Supreme Court has decided to take up. McCutcheon recently wanted to make contributions to more candidates and more Republican Party committees than is allowed under current limits. He and the Republican National Committee are asking the Supreme Court to consider lifting those limits, on the grounds that they are unconstitutional.

The plaintiffs also argue that in the wake of the court’s ruling in Citizens United three years ago, which removed independent political spending limits on corporations and individuals, more money is now being siphoned away from candidates and political parties and into outside super PACS which are less transparent and harder to hold accountable. They say removing limits on direct contributions to candidates and parties could level the playing field.

That approach amounts to “fighting fire with fire,” says Tara Malloy of the Campaign Legal Center, a proponent of campaign finance restrictions. Malloy has calculated that without limits on direct contributions, a single person could give almost $ 3.5 million to a party and its candidates, in total.

“I don’t think a single person can give an eye-popping sum like $ 3.5 million without raising very serious concerns about what type of influence that person will have over the party and the office holders of that party,” she says.

Bert Johnson, a political science Professor at Middlebury College, says one person giving such vast sums of money is a pretty rare hypothetical. What’s really at stake in this case, Johnson says, is the principal of limiting direct campaign contributions in the first place.

When Congress passed limits after Watergate, Johnson says the country was “worried about corruption and the appearance of corruption, and the Supreme Court said our worries are a good enough reason to limit the contributions to candidates and parties.”

But in recent years, the court has been increasing their scrutiny of campaign contribution limits, and Johnson says the McCutcheon case could signal a further change in the high court’s views. 

With the Citizens United case three years ago, the court threw out limits on outside, independent spending for political causes. With this case, the court will consider lifting limits on giving directly to candidates and their parties. And that’s something the court has, until now, been reluctant to do.   

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Citizens United Part II? Supreme Court takes up direct campaign donations