Bankrupt Banker

"Malpractice at the Bernanke Federal Reserve" has now turned into billion dollar annuities to the stock holders of the large banks.

"Malpractice at the Bernanke Federal Reserve" has now turned into billion dollar annuities to the stock holders of the large banks. The Bernanke Fed began paying interest on reserves held by the banks in October 2008 when the financial crisis heightened after large financial firms went bankrupt or were bailed out. It was essential policy to safeguard the banking system with loans, but not with incentive payments to reduce their lending and increase their reserves at the expense of businesses and employment. The excess reserves, reserves that banks are not required to keep, exploded: from $1.875 billion on September 1, 2008 to $1.191 trillion on February 2, 2011. The chart of excess reserves from the Federal Reserve is exploding while its chairman, Ben Bernanke, talks about plans to increase the interest on bank reserves. Today in the middle of the Bernanke Fed's continuing purchase of $600 billion in Treasury securities -- its quantitative easing purchases, "QE2," which ends in June 2011 -- where do you think most of the $600 billion is going? Loans to businesses? Purchase of private sector income earning assets? No and No. Since September 2008 -- 25 months -- the Fed has pumped out an average of $49 billion a month. This monetary base of the country (currency, coin and bank reserves) is now $2.210 trillion. Over half (57 percent) of the $2.210 trillion sits in the banks as reserves drawing interest. Now with inflation looming on the horizon and a need to finance huge governments deficits, interest rates will rise unless there is some event that temporarily makes investors rush to buy Treasury securities. What will the Fed do to prevent banks from moving their reserves into private sector assets, as banks make loans and buy other income earning assets. The money supply would spike and add strong fuel to inflation and higher interest rates. To keep the money supply from ballooning Bernanke has advocated, and many other at the Fed probably agree, that more interest on reserves will be needed. As I previously stated, that is the wrong policy. It is long past time to raise the Fed's target interest rate target. The Fed's near zero interest rate policy causes many misallocations of resources. A higher Fed interest rate target would lower the monetary base as the Fed sells its securities. The interest paid to banks could be lowered and eventually eliminated making the banks invest in loans and other income earning assets that benefit the economy and employment. Today the banks receive 0.25 percent interest on their reserves (plus deposits of their reserves that are held for a designated period, The Term Deposits Facility). That cost to the taxpayers was $2.7 billion in 2010. If the interest rate paid to banks increases to 1 percent and reserves are at the present level, the cost to the taxpayers would be around 4 times that amount, $10.8 billion a year. In 2005 I testified in Congress against the payment of interest on bank reserves. I had already helped House Banking Committee Chairman Henry Reuss write a bill that became a law (1980 Monetary Control Act) that allowed the Fed to pay interest on special required reserves in times of emergency. The Fed was evidently not interested in bringing this up at the hearings (although they sent an excellent official, Governor and future Vice Chairman Donald Kohn, to present their case) since they wanted carte blanche on the taxpayers' money to pay banks interest on reserves. The average interest rate over a prior thirty year period used for Fed loans to banks was 5 percent. At today's level of reserves that would cost the taxpayers $60 billion a year. Based on the calculations given below, that level of interest payments would have a present value primarily for bank stockholders of $1.08 trillion.

"Malpractice at the Bernanke Federal Reserve" has now turned into billion dollar annuities to the stock holders of the large banks.

"Malpractice at the Bernanke Federal Reserve" has now turned into billion dollar annuities to the stock holders of the large banks...

'Banks are trying to take my house'

average employee takes home £1,088 a year less than two years ago when the sum is adjusted for inflation, research commissioned by BBC Panor...

Equitable Life’s announcement is a bit of good news for some departing policyholders, it will not benefit the vast majority who are looking at losses of 85pc

Equitable Life’s announcement is a bit of good news for some departing policyholders, it will not benefit the vast majority who are looking at losses of 85pc – despite the compensation due to be paid by the Government. In spite of collective losses in excess of £6bn, the Government is proposing to pay 945,000 victims of the Equitable Life scandal just 15pc of the amount they have actually lost. This means that someone who has lost £50,000 from their pension pot may receive just £7,500 in compensation at some point between now and 2014. It is unclear whether any further interest will be paid to compensate for the delay. The Government has already admitted that victims’ losses exceed £4bn, but the Equitable Members’ Action Group (Emag) reckons they are closer to £6.3bn when maladministration from 1991 and exit penalties are taken into account. The £775m allocated for non with-profits annuitants means that victims can expect to get just 15pc of their losses. Emag will be renewing its campaign to press for full compensation by the end of this parliament. We know from our bulging postbag that our members are furious at what they see as a broken pledge from the coalition.

Equitable Life’s announcement is a bit of good news for some departing policyholders, it will not benefit the vast majority who are looking at losses of 85pc

Equitable Life’s announcement is a bit of good news for some departing policyholders, it will not benefit the vast majority who are looking ...

British bank Northern Rock, nationalised three years ago to avert financial meltdown, said Monday that it will axe almost 700 jobs by the end of 2011 as it looks to return to the private sector.

British bank Northern Rock, nationalised three years ago to avert financial meltdown, said Monday that it will axe almost 700 jobs by the end of 2011 as it looks to return to the private sector. The loss-making bank said in a statement that it planned "a reduction of up to 680 jobs, affecting employees at all grades across the company. The process is expected to conclude by the end of the year." Northern Rock, which will have a workforce of under 2,000 compared with about 6,500 in 2007 according to Britain's main union Unite, was last year broken into two parts -- "good" and "bad" banks. "Economic and trading conditions remain very challenging for a bank like Northern Rock," executive chairman Ron Sandler said in Monday's statement. "In order to meet our agreed objectives, we must continue to manage our cost base, which is too big relative to the size of the company -- regrettably, this will involve job losses." Sandler added: "This is an unsettling time for our employees, who have been through a lot in the last few years. We will keep them well informed throughout the process and provide support to those who are affected." Senior Unite official David Fleming expressed outrage at the latest round of cuts. "This appalling news of 680 job cuts is scandalous. Another round of brutal job cuts is simply a step too far for this workforce that has already lost a third of colleagues," he said in a separate statement. "We are witnessing another move to scale back this already lean organisation, in a desperate bid to find a private buyer." Unite wants Northern Rock turned into a building society, or mutual, whereby it would be owned by the bank's depositors. Earlier this month, Northern Rock Plc -- the lender's "good bank" -- posted a pre-tax loss of £232.4 million (271 million euros, $377 million) in its first set of annual results. The "bad" bank, Northern Rock Asset Management, houses its toxic loans and is to be wound down. This division will unveil its annual results on Thursday. Only Northern Rock Plc -- a mortgage and savings bank -- is to be offered for sale to the private sector. Northern Rock collapsed in mid-September 2007 when its exposure to the credit crunch forced it to seek emergency assistance from the Bank of England, sparking the first run on a British bank in recent history. To prevent a wider system meltdown, the government agreed in December 2007 to guarantee all customer deposits held at the struggling group, before taking the lender over in early 2008.

British bank Northern Rock, nationalised three years ago to avert financial meltdown, said Monday that it will axe almost 700 jobs by the end of 2011 as it looks to return to the private sector.

British bank Northern Rock, nationalised three years ago to avert financial meltdown, said Monday that it will axe almost 700 jobs by the en...

former Sydney bank employee will face court today over an alleged conspiracy to defraud major banks of up to $100 million

. The 34-year-old woman has been charged with offences including money laundering and participating in a criminal group. Police say the scam...

U.S. regulators seized an Illinois bank, the third in that state to fail this year.

<a href="http://online.wsj.com/article/SB10001424052748704517404576223353390013240.html?mod=googlenews_wsj"> </a> The Federal Deposit Insurance Corp. said Friday that the sole office of the Bank of Commerce, of Wood Dale, Ill., was closed. Advantage National Bank Group, of Elk Grove Village, Ill., entered a purchase-and-assumption agreement with the FDIC to assume all of Bank of Commerce's deposits. It brings the total number of U.S. failures this year to 26. The number of banks that failed last year—157—was the highest since the savings-and-loan crisis ended in 1992, although the total assets at 2010's fallen banks were much smaller than the total the year before. Bank of Commerce had about $163.1 million in total assets and $161.4 million in total deposits at year end. Advantage National Bank agreed to pay a 0.1% premium to assume all the deposits and agreed to purchase essentially all of the failed bank's assets. The FDIC estimates that the cost of the failure to the Deposit Insurance Fund will be $41.9 million. Depositors of the failed bank will automatically become depositors of the new bank, and the deposits will continue to be insured by the FDIC. The FDIC insures deposits for up to $250,000 per depositor.

U.S. regulators seized an Illinois bank, the third in that state to fail this year.

The Federal Deposit Insurance Corp. said Friday that the sole office of the Bank of Commerce, of Wood Dale, Ill., was closed. Advantage Nati...

Andy Hornby, the man running HBOS when it had to be rescued by Lloyds bank in 2008, has unexpectedly quit his £1m-a-year job as chief executive of healthcare group Alliance Boots with immediate effect.

Andy Hornby, the man running HBOS when it had to be rescued by Lloyds bank in 2008, has unexpectedly quit his £1m-a-year job as chief executive of healthcare group Alliance Boots with immediate effect. Sources close to Hornby insisted that his surprise departure was his own choice. City analysts suspected a personality clash at the top of the company. Hornby, aged 44, indicated that he needed to step back from the demands of corporate life. "After an intense last five years as CEO of two major companies, I have decided to take a few months' break and, having discussed it with the board of Alliance Boots, to stand down from my post as group chief executive," said Hornby in a statement. He had joined Alliance Boots in June 2009, just months after his tenure at HBOS ended with the stricken bank being rescued by rival LLoyds TSB. Stefano Pessina, the executive chairman of Alliance Boots, said Hornby left "with our very best wishes for the future".

Andy Hornby, the man running HBOS when it had to be rescued by Lloyds bank in 2008, has unexpectedly quit his £1m-a-year job as chief executive of healthcare group Alliance Boots with immediate effect.

Andy Hornby, the man running HBOS when it had to be rescued by Lloyds bank in 2008, has unexpectedly quit his £1m-a-year job as chief execut...

Moody’s warned that the AAA rating was at risk if Mr Osborne’s predictions were not met.

Does anybody remember the rhetoric of Mr Cameron and Mr Osborne in the months before last year’s election? Britain was in danger of losing its coveted AAA credit rating under Labour. All this was said despite the fact that, in February 2010, two of the three ratings agencies, Moody’s and Fitch, were both on record as saying Britain’s economic outlook was stable and there was no danger of a downgrade. This, remember, was when it was assumed Britain’s budget deficit for 2009 had been £178 billion. It later turned out the Treasury had massively overestimated the deficit which was, in fact, £150bn. This week, Mr Osborne announced in his budget speech the budget deficit for 2010 would be £146.5bn – a figure that would have been lower had the economy not contracted by 0.6% in Q4 2010 having previously grown by 1.7% in the previous two quarters as Labour’s stimulus measures took effect. He also revised down the Treasury’s growth forecast for the coming two years, although at 1.7% in 2011 and 2.5% in 2012, the predictions are still highly optimistic. This optimism is clearly evident to the markets. The following day Moody’s warned that the AAA rating was at risk if Mr Osborne’s predictions were not met. As Daily Mail blowhard Richard Littlejohn might say, “you couldn’t make it up”.

Moody’s warned that the AAA rating was at risk if Mr Osborne’s predictions were not met.

Does anybody remember the rhetoric of Mr Cameron and Mr Osborne in the months before last year’s election? Britain was in danger of losing i...

Barclays Plc (BARC) is being investigated by regulators seeking to determine if it broke information- sharing rules when setting the London interbank offered rate,

Barclays Plc (BARC) is being investigated by regulators seeking to determine if it broke information- sharing rules when setting the London interbank offered rate, a person briefed on the probe said. U.S. and U.K. regulators are examining if communications between Barclays’s traders and its treasury broke regulations that stop information being shared across the bank, said the person, who declined to be identified because the details of the investigation are private. The Financial Times reported the inquiry on its website yesterday. Barclays, the U.K.’s third-biggest bank, is among banks including Citigroup Inc. (C) and UBS AG that have received subpoenas from U.S. regulators investigating whether some firms manipulated the Libor rate, two separate people familiar with the probe said yesterday. The U.S. Department of Justice, Securities and Exchange Commission and Commodity Futures Trading Commission are working together with the U.K.’s Financial Services Authority on the probe. Spokesmen for London-based Barclays, the BBA and Financial Services Authority declined to comment when contacted by Bloomberg News. A Citigroup spokesman declined to comment<a href="http://www.bloomberg.com/news/2011-03-25/barclays-said-to-be-investigated-by-regulators-in-libor-probe.html">.</a>

Barclays Plc (BARC) is being investigated by regulators seeking to determine if it broke information- sharing rules when setting the London interbank offered rate,

Barclays Plc (BARC) is being investigated by regulators seeking to determine if it broke information- sharing rules when setting the London ...

Iberian Peninsula faced a slew of downgrades from credit rating agencies

<a href="http://blogs.forbes.com/afontevecchia/2011/03/24/portugals-sovereigns-downgraded-spanish-banks-get-the-guillotine/">I</a>berian Peninsula faced a slew of downgrades from credit rating agencies on Thursday, after Fitch decided to cut its sovereign rating for Portugal by two notches to A- while downgraded 30 Spanish banks by one or more notches. Portugal took center stage late into Wednesday’s session, as Prime Minister Socrates resigned after Parliament failed to pass his fourth round of austerity measures.  Socrates told his fellow lawmakers that failing to accept his austerity plan would lead to a bailout which would count with harsher deficit reduction plans.  Fitch’s director of sovereign ratings, Douglas Renwick, echoed Socrates’ statements, explaining “The downgrade reflects increased risks to policy implementation and fiscal financing in light of the Portuguese parliament’s failure to pass fiscal consolidation measures and the resignation of the Prime Minister on 23 March<a href="http://blogs.forbes.com/afontevecchia/2011/03/24/portugals-sovereigns-downgraded-spanish-banks-get-the-guillotine/">.</a>

Iberian Peninsula faced a slew of downgrades from credit rating agencies

I berian Peninsula faced a slew of downgrades from credit rating agencies on Thursday, after Fitch decided to cut its sovereign rating for P...

Ireland banks are in need of another €27.5 billion ($39 billion), and may need it as soon as two weeks next week,

Ireland banks are in need of another €27.5 billion ($39 billion), and may need it as soon as two weeks next week, according to a Bloomberg s...

TV presenter Anthea Turner’s ‘humiliated’ husband Grant Bovey has been discharged from his bankruptcy.

Just a year after his property company collapsed with debts of £50million, TV presenter Anthea Turner’s ‘humiliated’ husband Grant Bovey has been discharged from his bankruptcy. The 49-year-old entrepreneur received his automatic discharge a week ago, 12 months after his voluntary petition was heard at Guildford County Court, Surrey. Bovey is now freed from debt and has already started the process of trying to turn his fortunes around, opening a new bank account and working on a ‘number of projects’.  Before the crunch: Grant Bovey and Anthea Turner at a friend's wedding in 2006 The former millionaire, who listed his occupation as ‘unemployed’ during his bankruptcy hearing, is working with a group of ex-business associates on ‘new ideas’. But he is believed to want to stay in the shadows, rather than front the new ventures, for fear of putting investors off. A close associate tells me: ‘Grant is delighted his bankruptcy has been discharged as it will allow him to get his life back on track. It has been a nightmare since the property bubble burst and his firm went down. He has been fighting an uphill battle and it put a huge strain on his relationships. ‘He knows he let Anthea down and other investors who lost a lot of money, and is determined to make a new venture a success.’ Despite his financial fall from grace, the one-time property speculator managed to hold on to some of his lavish lifestyle. He lives in a pretty cottage in Hascombe, Surrey, owned by his wife and I can also reveal the couple managed to do a deal to keep their £4million French ski chalet.  Bovey agreed to pay off a substantial sum to a bank, representing his half of the chalet’s value. Anthea owns the other 50 per cent. But the helicopters he used to fly around the UK have been sold. Miss Turner has been the main breadwinner and has spent considerable time working in Canada on a show called Dinner Party Rules. Bovey blamed the credit crunch for ruining his property empire, which was once worth £100million, forcing him to sell their £10million estate. Last year he admitted: ‘It’s humiliating and I feel that I’ve let Anthea down, that I’ve let down my children and everyone who had faith in me.’

TV presenter Anthea Turner’s ‘humiliated’ husband Grant Bovey has been discharged from his bankruptcy.

Just a year after his property company collapsed with debts of £50million, TV presenter Anthea Turner’s ‘humiliated’ husband Grant Bovey has...

Tribune Co. Chairman Sam Zell is battling to avoid legal liability for leading what he called “the deal from hell,” the $8.2 billion buyout of the bankrupt newspaper and television company.

In court papers filed yesterday, Zell asked the judge overseeing Tribune’s bankruptcy for permission to challenge a lawsuit filed against him by creditors. The lawsuit seeks to recover money from him, and other Tribune managers, whom creditors blame for the company’s inability to repay about $13 billion in debt, most of which is tied to the 2007 buyout. “He is the one person who did nothing wrong,” David Bradford, Zell’s bankruptcy attorney, said in court yesterday, a few hours before filing the latest round of court papers in which the Chicago real estate billionaire denied responsibility for Tribune’s insolvency. Two groups of hedge funds have submitted competing plans to reorganize Tribune and resolve billions of dollars worth of legal claims related to the buyout. Both groups would allow a federal lawsuit against Zell and Tribune’s other managers to go forward. Chicago-based Tribune filed bankruptcy in December 2008, one year after the two-stage buyout was completed. The company owns eight newspapers, including the Los Angeles Times and the Chicago Tribune, with a combined daily circulation of 1.9 million last year. The company’s 23 TV stations include sites in New York, Chicago and Los Angeles. The bankruptcy case is In re Tribune Co., 08-bk-13141, U.S. Bankruptcy Court, District of Delaware (Wilmington).

Tribune Co. Chairman Sam Zell is battling to avoid legal liability for leading what he called “the deal from hell,” the $8.2 billion buyout of the bankrupt newspaper and television company.

In court papers filed yesterday, Zell asked the judge overseeing Tribune’s bankruptcy for permission to challenge a lawsuit filed against hi...

Bulgaria's Interior Minister Tsvetan Tsvetanov has revealed that the police are holding negotiations with the armed robber who keeps 7 hostages in Sliven.

Bulgaria's Interior Minister Tsvetan Tsvetanov has revealed that the police are holding negotiations with the armed robber who keeps 7 h...

Ashley Mitchell stole £7 million ($11.4 million) in virtual currency from Zynga Poker and has now been sentenced to two years in jail, the Guardian reports.

Ashley Mitchell stole £7 million ($11.4 million) in virtual currency from Zynga Poker and has now been sentenced to two years in jail, the Guardian reports. "He made determined and repeated efforts to attack Zynga's systems. He succeeded and transferred 400bn chips and sold them to realise a substantial profit." James Taghdissian, representing prosecution said. Mitchell, a 29 year old gambling addict living in Paignton, Devon logged on to Zynga's mainframe, stole the identities of two Zynga employees and transferred the virtual currency to himself. He sold the stolen chips to other Facebook users, over the course of two months ending with a total profit of £53,612. "Gambling had complete control of his life." said Ben Darby, defending Mitchell. The prosecution for the case estimated that the total damages to Zynga were $12m (£7m). "That is what they estimate they would have lost if all the chips were successfully sold on." Taghdissian said. It was clear something nefarious was going on as early as August 2009 when large amounts of virtual chips went missing. Investigators initially suspected the two Zynga employees, but later determined that their account had been hacked. Mitchell was finally identified after using his neighbor's unsecured wifi networks and logging into his own facebook account during one of the hacks. "It was clear there had been a systematic approach adopted in probing and accessing Zynga. Checks on [Mitchell's] bank account showed at this time he bought items including a Rolex watch and was also spending money on online gambling." He had only sold about a third of his total chips before he was caught. Mitchell admitted his crimes and was, today, sentenced. He also has a 30 day suspended sentence for hacking into the computers from where he previously worked

Ashley Mitchell stole £7 million ($11.4 million) in virtual currency from Zynga Poker and has now been sentenced to two years in jail, the Guardian reports.

Ashley Mitchell stole £7 million ($11.4 million) in virtual currency from Zynga Poker and has now been sentenced to two years in jail, the G...

Colonel Gaddafi’s state investment fund came within a whisker of buying Kaupthing Bank Luxembourg in 2009

Colonel Gaddafi’s state investment fund came within a whisker of buying Kaupthing Bank Luxembourg in 2009 in a move that would have made the Libyan dictator banker to some of Europe’s wealthiest individuals. Kaupthing Luxembourg, which specialised in banking services to the super-rich, collapsed along with its Icelandic parent company in late 2008. Pricewaterhouse-Coopers were appointed as administrators to the bank and the Luxembourg government began talks with potential buyers. A report to creditors of the parent Kaupthing Bank in Iceland reported that a provisional agreement to sell the bank to the Libyan Investment Authority had been signed. But the talks failed and Kaupthing Luxembourg was bought by financier David Rowland in July 2009. Mr Rowland reopened the Luxembourg bank as Banque Havilland, inviting Prince Andrew as guest of honour at the relaunch. Kaupthing Luxembourg was the conduit for many of the controversial loans to British entrepreneurs, including Robert Tchenguiz and his brother Vincent, who were recently arrested and questioned, though released without charge, by the Serious Fraud Office as part of their investigation into the collapse of the bank<a href="http://www.dailymail.co.uk/news/article-1368001/Why-did-Prince-Andrew-visit-Gaddafi-Libya-shady-Tory.html">.</a>

Colonel Gaddafi’s state investment fund came within a whisker of buying Kaupthing Bank Luxembourg in 2009

Colonel Gaddafi’s state investment fund came within a whisker of buying Kaupthing Bank Luxembourg in 2009 in a move that would have made the...

US regulator, the Securities and Exchange Commission (SEC) has handed out subpoenas to more banks over alleged manipulation of the LIBOR rate, the wholesale rate at which banks lend to each other.

US regulator, the Securities and Exchange Commission (SEC) has handed out subpoenas to more banks over alleged manipulation of the LIBOR rate, the wholesale rate at which banks lend to each other. Barclays, Citigroup and Bank of America are now being investigated by US regulators - as well as authorities in the UK and Japan. They will assess whether the banks submitted artificially low borrowing costs to the British Banking Association, which calculates LIBOR, between 2006 and 2008. UBS, the Swiss banking giant, revealed yesterday that it was under investigation for its “improper attempts... to manipulate LIBOR rates at certain times”, the lender said in its annual results. To calculate the rate, the BBA pools together data from panel banks received at 1100 daily. The rates are ranked, and the middle two quartiles are then averaged to create the LIBOR for that day. The effectiveness of the LIBOR system has come into question in recent years, as it is thought not to reflect the true lending rates in the market as panel banks could easily report inaccurate data. LIBOR, the London InterBank Offered Rate, is the basis for settlement of interest rate contracts on many of the world’s major futures and options exchanges.

US regulator, the Securities and Exchange Commission (SEC) has handed out subpoenas to more banks over alleged manipulation of the LIBOR rate, the wholesale rate at which banks lend to each other.

US regulator, the Securities and Exchange Commission (SEC) has handed out subpoenas to more banks over alleged manipulation of the LIBOR rat...

UK banks have around £136 billion of exposure to crisis-struck Japan,

UK banks have around £136 billion of exposure to crisis-struck Japan, the City watchdog has said. The estimate from the Financial Services Authority (FSA) comes as the country battles to stave off a nuclear meltdown following its devastating earthquake and tsunami. But the FSA said it was "too soon" to estimate the scale of losses for insurers from the disaster. Its comments follow fears over a mammoth claims bill for insurers, which has sent shares in the sector plunging since last Friday's events. News of the banking exposure also comes at a difficult time for the sector, which has been left reeling on concerns over vulnerability to debt-laden Portugal - which suffered a credit ratings downgrade. The FSA said it was trying to establish the total impact Japan's disaster will have on the UK's financial sector. The £136 billion bank exposure estimate, which is based on Bank of England figures, includes loans to Japanese firms in Britain and holdings in Japanese government debt. David Rule of the FSA's prudential risk team, said: "The risk we think is manageable on the banking side. On the insurance side it's early days." One estimate earlier this week put the potential claims bill from just the earthquake at as much as £22 billion. Reinsurers - which insure insurers - are thought to be most at risk, with concerns 2011 profits could be completely wiped out as the Japanese tragedy adds to a series of recent natural disasters, including the New Zealand earthquake and Australian floods. Shares in Catlin, a Lloyd's insurer, have fallen 8% in the past week, while fellow groups Beazley and Hiscox have slumped 9% and 4% respectively since last Friday.

UK banks have around £136 billion of exposure to crisis-struck Japan,

UK banks have around £136 billion of exposure to crisis-struck Japan, the City watchdog has said. The estimate from the Financial Services A...

Bank of Canada said that while it's aware of the allegations against Securency International

Australian company chosen to help make this country's new plastic-based currency is embroiled in an international scandal that includes allegations of million-dollar kickbacks and even of offering a prostitute to one client. However, the Bank of Canada said that while it's aware of the allegations against Securency International, they won't delay this November's release of the new Canadian currency. "The bank is fully aware of the allegations related to past business practices of Securency International," said Bank of Canada spokeswoman Julie Girard in an email to Postmedia News. Securency International, a company started and partially owned by the Reserve Bank of Australia, that country's central bank, has been tapped to provide the material — a non-porous, plastic film that makes counterfeiting extremely difficult and bills more durable — for the new Canadian currency. Last week, the Bank of Canada announced it is introducing new $100 bank notes, printed on the special polymer base, starting in November, with new $50 bills to follow next March. Securency, however, has been the subject of an investigation by the Australian Federal Police and the British Serious Fraud Office into allegations that agents employed by the company paid millions of dollars in kickbacks to government officials in countries such as Malaysia, Vietnam and Nigeria to encourage them to use their product. Girard said the Bank of Canada is "confident in its business arrangements," and is satisfied that Securency "has taken appropriate steps to strengthen its governance and business practices." "Security is the main consideration for the bank when choosing the materials for Canadian bank notes," she said. "The polymer material and security features chosen are the best option available for Canada's new series of bank notes, and the Bank has put in place robust supply arrangements to ensure that Canadians have the most secure bank notes possible."

Bank of Canada said that while it's aware of the allegations against Securency International

Australian company chosen to help make this country's new plastic-based currency is embroiled in an international scandal that includes ...

Radiation levels in Tokyo, one of the world's most populous cities, rose 10 times above average

Radiation levels in Tokyo, one of the world's most populous cities, rose 10 times above average Tuesday evening, spreading fear among many of the 33 million residents in the metropolitan area. The best advice experts could give them was to stay indoors, close the windows and avoid breathing bad air -- steps very similar to those for handling a smog alert or avoiding influenza. While these steps may sound inconsequential, experts said the danger in Tokyo, while worrisome, is slight - at least for now. "Everything I've seen so far suggests there have been nominal amounts of material released. Therefore, the risks are generally low to the population," Jerrold Bushberg, who directs programs in health physics at the University of California at Davis, said in a telephone interview. "There may be more significant risks for emergency workers on site. They are dealing with the occupational exposure, but not for the population at large." Fresh explosions Tuesday at the Fukushima plant, 180 miles north of Tokyo, released low levels of radiation, escalating a crisis triggered by last week's massive earthquake and tsunami. With cooling systems knocked out, the fear is more blasts within the reactors at the complex could eventually cause a major radiation leak. The levels measured around Tokyo at one point were 40 times above normal but have receded to 10 times. That amounts to roughly the same dose as a chest or abdominal CT scan.

Radiation levels in Tokyo, one of the world's most populous cities, rose 10 times above average

Radiation levels in Tokyo, one of the world's most populous cities, rose 10 times above average Tuesday evening, spreading fear among ma...