Wage Controls for Wall Street?

Wage controls
for wall street

gift hub

Obama expressed outrage earlier this week after the New York state comptroller reported that Wall Street firms disbursed $18.4 billion in bonuses last year as the U.S. sank into a recession. While the figure represents a 44 percent decline from the previous year amid record losses in the securities industry, the bonus pool was the sixth-largest ever, the comptroller said in a yearly report. [bloomberg]

Politicians make low salaries but make up the difference with graft, and with revolving door jobs before and after taking office. Are we suggesting that Wall Street should work the same way, on the take and off the books? Or should the firms that take bailout money pay lower compensation than those who did not get bailed out? Will that lead to a brain drain from the bailed out companies? And if the loss of brains leads to a less efficient firm, will we bail the dummies out again? Seems that the only real solutions are systemic. Maybe a year of unpaid job corp service for every year an executive makes more than one million? Make philanthropy mandatory at a 55% rate above one million a year in compensation? Wage Controls for Wall Street?
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Best bipartisan buddies: Sarah Palin and Barack Obama

Sarah Palin
Barrack Obama

Los Angeles Times, CA
January 30 2009

While most everyone was watching the attempted bipartisanship on Capitol Hill this week, some of it broke out successfully in an unlikely place elsewhere.

It seems that Alaska Republican Gov. Sarah Palin, the unsuccessful GOP VP nominee, was worried that the Army was going to cut off pensions to the state's old-timers long-retired from the Alaska Territorial Guard. So she sat down and wrote a letter to the new big guy himself, Democratic President Barack Obama, who's vowed to take extra special care of veterans.

And the largest state's small congressional delegation got involved too.

And, what do you know? According to the ever-vigiliant Sarah Palin for President blog, the Army suddenly decided it didn't really need to cut off those payments after all

It found a special fund to pay them, while Sens. Lisa Murkowski, a Republican, and Mark Begich, a Democrat, together shepherd the proper authorizing legislation through Congress.

Amazing when it works.

And speaking of Sarah and Barack, this weekend they're both attending the off-the-record black tie dinner of the Alfalfa Club, one of those fraternity-like get-togethers that Washingtonians schedule throughout the year to convince themselves of their eliteness. Palin, who as The Ticket reported, formed her own SarahPAC this week, says she's attending to pitch the interests of Alaska.

And?

According to Paul Bedard over at Washington Whispers, Palin's presence in D.C. has sparked an interview bidding war between CNN's Larry King, who's had seven wives and almost as many heart attacks, and ABC's George Stephanopoulos, who hasn't.

--Andrew Malcolm

Speaking of bipartisan, members of all parties can register here for Twitter alerts on each new Ticket item? RSS feeds are also available here. And we're on Amazon's Kindle now as well.

Photo credit: Vogue

French Strike against economy

French Strike
against economy

1 February 2009
Wall Street Journal

French unions are worried that the faltering economy will lead to massive job cuts. So naturally they organized a general strike yesterday that could cost the economy a few hundred million euros in lost working hours. Nobody has ever accused the union bosses of clear thinking.
"Black Thursday" is the first sign of political trouble in a major European economy as a result of the economic crisis. More than one million people protested against President Nicolas Sarkozy's economic management. As always, France's public-sector employees were particularly eager to strike -- 23% of them didn't show up for work

Apart from the professional strikers among France's radical unions, many French people are genuinely scared of losing their jobs. Unemployment, just under 8% now, could top 10% by next year. About 70% of the public support the strikes. The problem is that the left is fueling these understandable fears to advance its political agenda, which would only make things worse.
The opposition Socialist Party called for the government to revoke tax cuts of up to €15 billion implemented in 2007, right after Mr. Sarkozy's election, and to spend that money on pump-priming the economy. The unions demand that the government halt precrisis plans to phase out 30,000 jobs in France's bloated public sector. But government debt is already on the rise as a result of the recession, multibillion-euro banking bailouts and stimulus plans. Urging the state to waste more money on superfluous pencil pushers is no boost for the economy.
The unions also want better job protection and a repeal of legislation that relaxed rules on the 35-hour workweek. But this would only increase production costs for French companies, forcing more layoffs. Unemployment would worsen.

Trouble is also flaring up elsewhere in Europe. Iceland's government had to resign Monday after weeks of protests. The economic crisis has triggered antigovernment protests in Bulgaria, Latvia and Lithuania. Several countries face general elections later this year, including Slovakia, Lithuania, Bulgaria and Germany, Europe's biggest economy.

These campaigns will take place amid the worst recession in decades. The challenge for mainstream parties will be to prevent social unrest while stopping radicals from gaining at the polls. As tempting as it might be, pandering to the left can only backfire.

Somalia: New President Sheikh Sharif sworn-in

Seikh Sharif Sheikh Ahmad
the new President of Somalia

Jan 31, 2009

DJIBOUTI CITY, Djibouti Jan 31 (Garowe Online) - The newly elected president of Somalia's 'unity government' was sworn-in Saturday in a ceremony attended by international diplomats, Radio Garowe reports.

Sheikh Sharif Ahmed took the oath of office in Djibouti City, where Somali peace talks ended yesterday after he was elected president by an expanded parliament that included Islamists.

The swearing-in ceremony took place at Hotel Kempinski, with diplomats from the United Nations, the African Union, the European Union, the Arab League watching as Sheikh Sharif swore on the Qur'an, Islam' s holy book.

Somalia's new president addressed the gathering afterwards, promising to lead the Horn of Africa country out of chaos and in a new direction.

He thanked the international community for its support during the peace process, while calling for peaceful relations with neighboring countries like Ethiopia.

President Sheikh Sharif vowed to take strong action against pirates, saying: "I ask for the Somali people’s help as I take on this big responsibility."

He spoke at length about Somali reconciliation, restoring security and strengthening international cooperation.

The new government is mandated to work during a transitional two-year period, as it attempts to retake control of the capital Mogadishu, much of which was seized by Islamist rebels after Ethiopian troops withdrew last month.

Sheikh Sharif's new government faces colossal challenges and the government's performance will largely depend on foreign support.

Two self-governing regions in the north – Somaliland and Puntland – have rejected the Djibouti peace process altogether, while the Al Shabaab guerrillas who are dominant in southern Somalia say the war will continue until Islamic law is restored.

Celebrations erupted in parts of Somalia, including Mogadishu, Middle Shabelle and Hiran regions. Hundreds of supporters cheered Sheikh Sharif's victory.

Source: Garowe Online

SINGAPORE: DBS CEO has leukemia, chairman runs bank for now

DBS CEO has leukemia,
chairman runs bank for now

By Saeed Azhar
SINGAPORE,
Jan 29 (Reuters)

DBS Group's (DBSM.SI) chief executive Richard Stanley has leukemia, creating a leadership vacuum at Southeast Asia's largest bank when its two key markets are suffering from recessions.

Koh Boon Hwee, the Singapore bank's chairman, will take charge after Thursday's shock announcement that Stanley would be absent for up to six months for medical treatment.

Analysts said Stanley's absence after just over eight months at the helm the bank, would be worrying if it went beyond the six months the bank had stated.

"At the moment we don't see a major shift in direction unless he stays away for a bit longer than six months," Daphne Roth, anal yst at ABN AMRO private bank "Beyond that they will have to find a replacement."

Stanley, 48, previously head of Citigroup (C.N) China, was hired in May last year with an aim to expand the bank's reach beyond its two core markets Singapore and Hong Kong. [ID:nSP332811]

He cut 900 jobs last year to slash costs, sold preference shares last year and last week completed a S$4 billion rights ($2.67 billion) issue, which was oversubscribed.

DBS last month predicted its fourth-quarter profit may fall from the previous three months and analysts have warned that the lender, which makes 90 percent of its profit from Singapore and Hong Kong, could be hit by loan losses due to the worsening economic outlook. Continued...

Romanian president opposes asking for IMF help

Romanian president
opposes asking for IMF help

By Justyna Pawlak
Forbes
01.27.09

BUCHAREST, Jan 27 (Reuters) - Romanian President Traian Basescu has spoken out against a potential deal with the International Monetary Fund, defying expectations from many economists that Bucharest may be forced to seek IMF help.

Bucharest's month-old coalition government appears conflicted about seeking the fund's help to shore up jittery markets and insulate the economy from the threat of a financing crisis, in deals similar to those sought in 2008 by Hungary and Ukraine.

Basescu's comments, made in a late-night television show on Monday, come as the Washington-based lender began a scheduled mission to Bucharest. The fund has said talks about any assistance programme are not on the agenda for the visit.

A senior coalition strategist, Ionut Popescu, said in December at least 10 billion euros in IMF cash may be necessary, while Prime Minister Emil Boc has said a decision whether to seek help had not yet been taken, saying the country had 'many solutions' to its current situation.

But Basescu, who has close political ties with Boc's month-old cabinet, said Romania should not seek an IMF deal.

'Romania needs financing ... but the solution is to take money from the EU, not from the Fund .. We are not in the same situation as Hungary,' he said.

[Romanian president opposes asking for IMF help
Forbes, NY ]

Rohingya refugees face deportation

A group of Rohingya refugees who say they were beaten and burned by Myanmar soldiers as they tried to flee on boats to Thailand are facing likely deportation back to Myanmar.

The 78 refugees were intercepted earlier this week by Thai authorities, who have themselves faced accusations of abusing Rohingya boat people in recent days.

On Wednesday 66 members of the group appeared in court in the town of Ranong in southern Thailand to hear charges of illegally entering the country.

They were not represented by lawyers and will not have an opportunity to defend themselves.

The remaining members of the group were minors too young to appear in court.

Al Jazeera correspondent Selina Downes was in court and said that if they are convicted, as seems likely, they will face jail for up to a month followed by deportation.

She said some who were too injured to injured to walk were taken into court on stretchers carried by other refugees.

'Tortured'

Who are the Rohingya?

The Rohingya are a Muslim ethnic group from the northern Rakhine state of western Myanmar, formerly known as Arakan state. Their history dates to the early 7th century, when Arab Muslim traders settled in the area. They are physically, linguistically and culturally similar to South Asians, especially Bengali people. According to Amnesty International, they suffer from human rights violations under the Myanmar military government, and many have fled to neighbouring Bangladesh as a result. The vast majority of them have effectively been denied Myanmar citizenship. In 1978 an estimated 200,000 Rohingyas fled to Bangladesh. Approximately 20,000 Rohingya are living in UN refugee camps in Bangladesh.

Earlier speaking to Al Jazeera in hospital in Ranong, several of the men showed evidence of serious injuries they said were inflicted after their boat was intercepted by the Myanmar military as they tried to escape the country.

One man who gave his name as Sutamin said he was taken onto a military vessel, where soldiers wrapped a cloth around a wooden stick, doused it in kerosene, ignited it and held it to his skin.

"I got beaten. Everybody got beaten," he said. "But not a normal beating - this was very hard. I was tortured."

He said the soldiers had also tied a noose around his neck and threatened to strangle him.

Thai medical teams treating the group said they were shocked at the extent of their wounds.

The Rohingyas are a stateless Muslim minority group who face persecution in Myanmar, whose military government does not recognise them as citizens.

Tens of thousands have fled the country, often in rickety wooden boats to Thailand from where they travel overland to Malaysia.

Earlier this month the Thai army was itself accused of abusing Rohingya refugees, beating them and forcing their boats to return to sea without food and fuel, or with their boat's engines disabled or removed.

'Economic migrants'

Reports from survivors who washed up on India's Andaman islands and northwest Indonesia suggested hundreds who were towed out to sea by Thai soldiers may have died.

"There is no reasonable ground to believe that these migrants fled from their country of origin for well-founded fear of being persecuted" Thai government statement

Human rights groups say the Thai military has been engaged in a secret and systematic campaign against Rohingya migrants, because of suspicions they may be involved with Muslim separatist fighters in Thailand's south.

The Thai military and government have rejected the allegations.

They also deny that the Rohingya face persecution in their country of origin.

On Wednesday the government issued a statement re-iterating its position that the Rohingya are illegal economic migrants, not refugees, and will never be let into the country

"There is no reasonable ground to believe that these migrants fled from their country of origin for well-founded fear of being persecuted," the statement said.

Larry Jagan, a Myanmar specialist, told Al Jazeera that the root of the problem lay with the government in Myanmar, and any solution would require a strong international approach.

He said the repression carried out in Arakan, the region of Myanmar where most Rohingya come from, was "immense".

"It's much worse than abuses committed by the government elsewhere in the country, but it's not new - this has been going on for about 20 years."

[Rohingya refugees face deportation
Aljazeera.net, Qatar]