04 January 2012
Israeli drone over Turkish-Syrian border. Battles in Syrian-Jordanian-Israeli border triangle
Israeli Eitan drone
A request by local Turkish officers to fire anti-air missiles to down the Israeli Eitan went unanswered by the Turkish general staff until the drone was gone. According to the Turkish sources, two Turkish F-16 fighter jets were scrambled from the Diyarbakir 2nd Air Force Command Strike Center and stayed overhead as long as the Israeli drone was present.
debkafile reports this is the first time Israeli UAV's have been reported monitoring events on the Turkish-Syrian border. On Dec. 16, our sources disclosed 21 Syrian Scud missile launchers had been stationed opposite Hatay province as a warning to Turkey, NATO and Arab forces to stay out of the Syrian uprising.
MF Global sold assets to Goldman before collapse: sources
By Lauren Tara LaCapra and Matthew Goldstein | Reuters
(Reuters) - MF Global unloaded hundreds of millions of dollars' worth of securities to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions. But it did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co , one of the sources said.
The sale of securities to Goldman occurred on October 27, just days before MF Global Holdings Ltd filed for bankruptcy on October 31, the ex-employees said. One of the employees said the transaction was cleared with JPMorgan Chase.
At the same time MF Global, which was run by former Goldman Sachs head Jon Corzine, was selling securities to Goldman to raise badly needed cash, the futures firm was also drawing down a $1.2 billion revolving line of credit it had with JPMorgan, according to one of the former MF Global employees.
JPMorgan spokeswoman Mary Sedarat said the bank did not withold money because of the line of credit. She declined further comment on details of the transactions.
JPMorgan has fought aggressively in bankruptcy court to protect its interests, and received a lien on some of MF Global's assets in exchange for granting the firm $8 million to fund its bankruptcy costs. The lien puts JPMorgan's interests ahead of MF Global customers who have not yet received an estimated $900 million worth of money from their accounts, which remain frozen as regulators search for missing funds.
(Reuters) - MF Global unloaded hundreds of millions of dollars' worth of securities to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions. But it did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co , one of the sources said.
The sale of securities to Goldman occurred on October 27, just days before MF Global Holdings Ltd filed for bankruptcy on October 31, the ex-employees said. One of the employees said the transaction was cleared with JPMorgan Chase.
At the same time MF Global, which was run by former Goldman Sachs head Jon Corzine, was selling securities to Goldman to raise badly needed cash, the futures firm was also drawing down a $1.2 billion revolving line of credit it had with JPMorgan, according to one of the former MF Global employees.
JPMorgan spokeswoman Mary Sedarat said the bank did not withold money because of the line of credit. She declined further comment on details of the transactions.
JPMorgan has fought aggressively in bankruptcy court to protect its interests, and received a lien on some of MF Global's assets in exchange for granting the firm $8 million to fund its bankruptcy costs. The lien puts JPMorgan's interests ahead of MF Global customers who have not yet received an estimated $900 million worth of money from their accounts, which remain frozen as regulators search for missing funds.
An Exercise In Futility (Thank you for contacting the New York Fed)
Part 4 of the exercise:
On November 24, 2011 I wrote to the same people:
I find it quite bizarre: you are several people working in press / public relations departments for the N.Y. Fed, the Board of Governors of the Federal Reserve, and the US Treasury / Exchange Stabilization Fund. I am a journalist for finance. I have asked each of you a very, very simple question. And not a single one of you can even reply to me with a single sentence?
Since it is now proved beyond doubt that a US/German gold agreement was reached in 1975 to “manage” the price of gold:
http://www.gata.org/node/10686,
I consider it a legitimate question that I have forwarded to you months ago.
Before I will ask it again, please be assured that this question will be raised more often in the future going forward. It won’t go away. You can’t be silent about it forever.
Here is the question one more time:
Does the United States of America and/or the US Treasury/ESF, N.Y. Fed, the Federal Reserve System have any kind of swap arrangement with the Deutsche Bundesbank and/or the Federal Republic of Germany related to that part of the souvereign German gold reserve that is held at the N.Y. Fed?
By the way, after I heard nothing from the New York Fed and Federal Reserve in Washington, I asked GATA Chairman Bill Murphy about it.
Murphy replied: “I think their lack of response and lack of denial — I mean, that’s pretty simple to deny, really simple — that they haven’t come back to you at all is indicative of the answer.”
Kind regards,
Lars Schall.
Of course, I received an automatic response from the New York Fed that said:
Thank you for contacting the New York Fed. We will respond to your e-mail as soon as possible. For more information, please visit our website at http://www.newyorkfed.org./
In response to your message:
Dear Ladies and Gentlemen,
as a financial journalist from Germany I try to get some specific answers to specific questions…
Part 5 of the exercise:
On December 30, 2011 I wrote to the same people:
Dear Ladies and Gentlemen,
at the end of the year, everyone is doing New Year resolutions. One of mine is that you’ll get in 2012 at the last day of every single month the same old question from me:
Does the United States of America and/or the US Treasury/ESF, N.Y. Fed, the Federal Reserve System have any kind of swap arrangement with the Deutsche Bundesbank and/or the Federal Republic of Germany related to that part of the souvereign German gold reserve that is held at the N.Y. Fed / within the United States?
This way a story will build up very naturally all by itself that will make you look foolish at the end.
All the best in 2012!,
Lars Schall.
On November 24, 2011 I wrote to the same people:
I find it quite bizarre: you are several people working in press / public relations departments for the N.Y. Fed, the Board of Governors of the Federal Reserve, and the US Treasury / Exchange Stabilization Fund. I am a journalist for finance. I have asked each of you a very, very simple question. And not a single one of you can even reply to me with a single sentence?
Since it is now proved beyond doubt that a US/German gold agreement was reached in 1975 to “manage” the price of gold:
http://www.gata.org/node/10686,
I consider it a legitimate question that I have forwarded to you months ago.
Before I will ask it again, please be assured that this question will be raised more often in the future going forward. It won’t go away. You can’t be silent about it forever.
Here is the question one more time:
Does the United States of America and/or the US Treasury/ESF, N.Y. Fed, the Federal Reserve System have any kind of swap arrangement with the Deutsche Bundesbank and/or the Federal Republic of Germany related to that part of the souvereign German gold reserve that is held at the N.Y. Fed?
By the way, after I heard nothing from the New York Fed and Federal Reserve in Washington, I asked GATA Chairman Bill Murphy about it.
Murphy replied: “I think their lack of response and lack of denial — I mean, that’s pretty simple to deny, really simple — that they haven’t come back to you at all is indicative of the answer.”
Kind regards,
Lars Schall.
Of course, I received an automatic response from the New York Fed that said:
Thank you for contacting the New York Fed. We will respond to your e-mail as soon as possible. For more information, please visit our website at http://www.newyorkfed.org./
In response to your message:
Dear Ladies and Gentlemen,
as a financial journalist from Germany I try to get some specific answers to specific questions…
Part 5 of the exercise:
On December 30, 2011 I wrote to the same people:
Dear Ladies and Gentlemen,
at the end of the year, everyone is doing New Year resolutions. One of mine is that you’ll get in 2012 at the last day of every single month the same old question from me:
Does the United States of America and/or the US Treasury/ESF, N.Y. Fed, the Federal Reserve System have any kind of swap arrangement with the Deutsche Bundesbank and/or the Federal Republic of Germany related to that part of the souvereign German gold reserve that is held at the N.Y. Fed / within the United States?
This way a story will build up very naturally all by itself that will make you look foolish at the end.
All the best in 2012!,
Lars Schall.
EXCLUSIVE-Big banks may line up to block sale of LME
* Potential bidders CME, ICE would entail U.S. regulation
* Tough regulator could curb holdings of dominant positions
* Blocking stake of 25.1 pct seen achievable
By Melanie Burton and Susan Thomas
LONDON, Jan 3 (Reuters) - Top bank stakeholders of the London Metal Exchange are likely to amass enough support to block a sale they fear would bring a more heavily regulated owner and hurt their lucrative warehousing businesses, senior industry sources say.
The LME said in September that at least 10 parties had expressed interest in buying it, and analysts estimate it could be worth as much as $1 billion. As a member-owned organisation, the exchange requires approval from members holding 75 percent of outstanding ordinary or "A" shares for any sale.
Potential buyers are likely to include CME Group Inc , IntercontinentalExchange and SGX Singapore Exchange. The first two in particular have stricter U.S. regulators, which could threaten members' businesses.
Big banks such as J.P. Morgan and Goldman Sachs have invested heavily in physical metals business since the economic downturn began by buying warehouses and beefing up their trading teams and financing operations.
Shunting metal around has been a money spinner for them as slowing global growth pulls down commodity prices and leads to stockpiles of surplus material.
* Tough regulator could curb holdings of dominant positions
* Blocking stake of 25.1 pct seen achievable
By Melanie Burton and Susan Thomas
LONDON, Jan 3 (Reuters) - Top bank stakeholders of the London Metal Exchange are likely to amass enough support to block a sale they fear would bring a more heavily regulated owner and hurt their lucrative warehousing businesses, senior industry sources say.
The LME said in September that at least 10 parties had expressed interest in buying it, and analysts estimate it could be worth as much as $1 billion. As a member-owned organisation, the exchange requires approval from members holding 75 percent of outstanding ordinary or "A" shares for any sale.
Potential buyers are likely to include CME Group Inc , IntercontinentalExchange and SGX Singapore Exchange. The first two in particular have stricter U.S. regulators, which could threaten members' businesses.
Big banks such as J.P. Morgan and Goldman Sachs have invested heavily in physical metals business since the economic downturn began by buying warehouses and beefing up their trading teams and financing operations.
Shunting metal around has been a money spinner for them as slowing global growth pulls down commodity prices and leads to stockpiles of surplus material.
The World from Berlin 'Iran Is Playing with Fire'
With international pressure mounting against Iran to end its nuclear ambitions, the country has begun ominously rattling its sabers in the Persian Gulf. German commentators on Monday urge caution on both sides.
Tensions between Iran and the West escalated again on Monday as Tehran announced it had test-fired two long-range missiles in international waters near the strategic Strait of Hormuz.
"We have successfully test-fired long-range shore-to-sea and surface-to-surface missiles, called Qader (capable) and Nour (Light) today," Deputy navy Commander Mahmoud Mousavi told state television.
Amid ongoing international criticism of Iran's nuclear program, the missile launches were Tehran's latest show of force in military exercises started in response to the pressure. Monday's maneuvers came after the country announced the launch of a medium range missile the day before.
The so-called war games could bring Iranian ships near US naval forces operating in the Persian Gulf. Both the US and Israel have not ruled out a military response in the conflict over Iran's nuclear ambitions, and US forces based in Bahrain have said they will not allow a closure of the important Strait of Hormuz -- through which 40 percent of the world's crude oil is transported.
Iranian officials have made conflicting statements about possibly blocking the passage if sanctions were imposed on its oil exports, which are vital to the country's economy. Despite threats to the contrary from Iranian officials last week, on Monday military officials insisted there were no plans to close the waterway. "No order has been given for the closure of the Strait of Hormuz. But we are prepared for various scenarios," navy chief Habibollah Sayyari told state television. Deputy navy Commander Mahmoud Mousavi called the military excercises a "tactical" expression of the country's ability to control the strait if necessary.
Fuel Rod Breakthrough
Tehran continues to deny that it is attempting to build nuclear weapons, insisting their program is for generating electricity alone. On Sunday, Iranian state television announced a breakthrough in their nuclear progress, reporting the country had produced uranium fuel rods for power plant use for the first time.
The conflict with the West over the program has intensified since US President Barack Obama approved new sanctions on Saturday against financial institutions that do business with Iran's central bank. Obama will have the option of applying the sanctions flexibly, and depending on how strictly they are enforced, the sanctions could block oil refiners from buying crude oil from Iran, the world's fourth largest producer of the crucial product.
The United Nations Security Council has already implemented four rounds of international sanctions against Iran in hopes of discouraging the country's nuclear ambitions. The European Union is now also considering a ban on Iranian crude oil imports. But on Saturday Iranian media reported that a nuclear negotiator would likely signal a new willingness to resume EU talks on the matter.
With international talks stalled for almost a year now, EU officials welcomed news of the offer. But Iran would not be allowed to impose any pre-conditions on such negotiations, a spokesperson for EU foreign affairs representative Catherine Ashton said on Sunday.
German Foreign Minister Guido Westerwelle's had a similar reaction, encouraging Iran to abandon vague proclamations and urging the country to undertake "concrete, verifiable action" in the matter.
German commentators on Monday warned both sides to exercise caution in the potentially explosive conflict.
Tensions between Iran and the West escalated again on Monday as Tehran announced it had test-fired two long-range missiles in international waters near the strategic Strait of Hormuz.
"We have successfully test-fired long-range shore-to-sea and surface-to-surface missiles, called Qader (capable) and Nour (Light) today," Deputy navy Commander Mahmoud Mousavi told state television.
Amid ongoing international criticism of Iran's nuclear program, the missile launches were Tehran's latest show of force in military exercises started in response to the pressure. Monday's maneuvers came after the country announced the launch of a medium range missile the day before.
The so-called war games could bring Iranian ships near US naval forces operating in the Persian Gulf. Both the US and Israel have not ruled out a military response in the conflict over Iran's nuclear ambitions, and US forces based in Bahrain have said they will not allow a closure of the important Strait of Hormuz -- through which 40 percent of the world's crude oil is transported.
Iranian officials have made conflicting statements about possibly blocking the passage if sanctions were imposed on its oil exports, which are vital to the country's economy. Despite threats to the contrary from Iranian officials last week, on Monday military officials insisted there were no plans to close the waterway. "No order has been given for the closure of the Strait of Hormuz. But we are prepared for various scenarios," navy chief Habibollah Sayyari told state television. Deputy navy Commander Mahmoud Mousavi called the military excercises a "tactical" expression of the country's ability to control the strait if necessary.
Fuel Rod Breakthrough
Tehran continues to deny that it is attempting to build nuclear weapons, insisting their program is for generating electricity alone. On Sunday, Iranian state television announced a breakthrough in their nuclear progress, reporting the country had produced uranium fuel rods for power plant use for the first time.
The conflict with the West over the program has intensified since US President Barack Obama approved new sanctions on Saturday against financial institutions that do business with Iran's central bank. Obama will have the option of applying the sanctions flexibly, and depending on how strictly they are enforced, the sanctions could block oil refiners from buying crude oil from Iran, the world's fourth largest producer of the crucial product.
The United Nations Security Council has already implemented four rounds of international sanctions against Iran in hopes of discouraging the country's nuclear ambitions. The European Union is now also considering a ban on Iranian crude oil imports. But on Saturday Iranian media reported that a nuclear negotiator would likely signal a new willingness to resume EU talks on the matter.
With international talks stalled for almost a year now, EU officials welcomed news of the offer. But Iran would not be allowed to impose any pre-conditions on such negotiations, a spokesperson for EU foreign affairs representative Catherine Ashton said on Sunday.
German Foreign Minister Guido Westerwelle's had a similar reaction, encouraging Iran to abandon vague proclamations and urging the country to undertake "concrete, verifiable action" in the matter.
German commentators on Monday warned both sides to exercise caution in the potentially explosive conflict.
Greece will leave euro if second bailout fails, says Kapsis
Greece will have to leave the eurozone if it fails to clinch a deal on a second, 130 billion euro bailout with its international lenders, a government spokesman said on Tuesday.
It was an unusually public stark warning from the embattled country, aimed at shoring up domestic support for tough measures and possibly also at the lenders themselves.
"The bailout agreement needs to be signed otherwise we will be out of the markets, out of the euro," spokesman Pantelis Kapsis told Skai TV. "The situation will be much worse."
Greece is racing against the clock to agree with the EU, the IMF and private bondholders on the details of the rescue plan before a major bond redemption in March. It risks a default if there is no deal by this date.
Athens and its EU partners have repeatedly ruled out a euro exit, which could drag the bloc even deeper into crisis, and usually avoid saying this is a possible scenario.
But top Greek officials, who need to push through unpopular reforms to clinch the bailout deal, have warned over the past few days that a return to the drachma would be "hell" and that the country must stick to austerity to avoid it.
It was an unusually public stark warning from the embattled country, aimed at shoring up domestic support for tough measures and possibly also at the lenders themselves.
"The bailout agreement needs to be signed otherwise we will be out of the markets, out of the euro," spokesman Pantelis Kapsis told Skai TV. "The situation will be much worse."
Greece is racing against the clock to agree with the EU, the IMF and private bondholders on the details of the rescue plan before a major bond redemption in March. It risks a default if there is no deal by this date.
Athens and its EU partners have repeatedly ruled out a euro exit, which could drag the bloc even deeper into crisis, and usually avoid saying this is a possible scenario.
But top Greek officials, who need to push through unpopular reforms to clinch the bailout deal, have warned over the past few days that a return to the drachma would be "hell" and that the country must stick to austerity to avoid it.
Eurozone is closer to break-up, warns Standard Chartered's Peter Sands
The chief executive of Standard Chartered has warned that there is an increasing likelihood of a country falling out of the eurozone because of the inability of politicians to resolve the crisis.
The head of one of Britain's "Big Five" banks warned that any break-up of the single currency would have dire consequences for the global economy because it would be difficult to judge how the contagion would unravel.
"Obviously we close 2011 with a huge amount of focus on the trials and tribulations of the eurozone," Mr Sands said.
"I actually think the big news of last month's summit was that unfortunately once again the eurozone political leadership didn't really produce something that was that compelling or credible as a plan to deal with the problems and to re-engergise growth in the eurozone.
"We enter 2012 with a very difficult outlook for the eurozone [and] with an increasing possibility of countries actually leaving the eurozone.
"Nobody should underestimate what a big deal that would be, because it would be very difficult to manage the contagion risk, even if it was only Greece. The disruption from that would really be quite significant.
The head of one of Britain's "Big Five" banks warned that any break-up of the single currency would have dire consequences for the global economy because it would be difficult to judge how the contagion would unravel.
"Obviously we close 2011 with a huge amount of focus on the trials and tribulations of the eurozone," Mr Sands said.
"I actually think the big news of last month's summit was that unfortunately once again the eurozone political leadership didn't really produce something that was that compelling or credible as a plan to deal with the problems and to re-engergise growth in the eurozone.
"We enter 2012 with a very difficult outlook for the eurozone [and] with an increasing possibility of countries actually leaving the eurozone.
"Nobody should underestimate what a big deal that would be, because it would be very difficult to manage the contagion risk, even if it was only Greece. The disruption from that would really be quite significant.
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