Archive - Jun 2008

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More than 400 real estate industry players have been indicted since March, including dozens over the last 2 days, in a crackdown on mortgage fraud stemming from America’s housing crisis.

Two former Bear Stearns hedge fund managers today became the first executives to face criminal charges related to the collapse of the subprime mortgage market, following a federal criminal probe into the collapse of two funds they oversaw. In an indictment unsealed in New York, Ralph Cioffi and Matthew Tannin were charged with conspiracy, securities fraud and wire fraud. Cioffi was also charged with insider trading. Cioffi, 52, and Tannin, 46, surrendered to officials and were paraded in handcuffs in front of reporters and onlookers en route to their arraignment today. Their lawyers said they will fight the charges.

Since the beginning of March, 406 people have been arrested in the sting dubbed Operation Malicious Mortgage resulting from 144 cases across America. Sixty people were arrested yesterday alone, including in Chicago, Miami, Houston and a dozen other regions policed by the FBI. Law enforcement officials said their stepped-up focus on mortgage cases aims to combat problems that have grown out of the risky lending practices prevalent until the mortgage market collapse started last year.

Across the country, reports of mortgage fraud have soared over the past year as the subprime mortgage market collapsed, and defaults and foreclosures soared. Banks reported nearly 53,000 cases of suspected mortgage fraud last year, up from more than 37,000 a year earlier and about 10 times the level of reports in 2001 and 2002, according to the Treasury Department’s Financial Crimes Enforcement Network. In recent months, the FBI has been investigating more than 1,400 mortgage fraud cases and 19 companies - including Bear Stearns - tied to the subprime mortgage crisis.

Edward Little, lawyer for Cioffi, said the two men were being used as scapegoats in a crisis that was not their fault. “The subprime crisis took everyone by surprise, including the Fed and Treasury, and dozens of the largest financial institutions have lost over $US300 billion to date on the same investments,” the lawyer said in a statement. “We are shocked and disappointed that the government has seen fit to fix blame on these two decent men. The good news though is that there will be a trial, and we look forward to the day they will be vindicated.”

Officials declined to say who might be the next corporate target, but FBI Director Robert Mueller said the investigations focus on accounting fraud, insider trading, and failure to disclose the value of mortgage-related securities and other investments. Under review for potential fraud are: investment banks, hedge funds, credit rating agencies, brokerage houses and due diligence firms - which evaluate loans packaged into investments. Similar to the federal investigations of Enron Corp. and WorldCom Inc., the cases are complex and rely on intense scrutiny of documents, Mueller said.

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Images courtesy of Lanzano/AP, Hermann for News and AFP/Getty Images/File

Original Source: The West Australian

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Oil prices surged as some members of the Opec producers' cartel rejected demands to increase output ahead of tomorrow's meeting in Saudi Arabia to discuss soaring fuel costs. The president of Opec, Chakib Khelil, said yesterday that it would be "illogical and irrational" for it to increase output.

On Thursday oil prices fell sharply - around $5 a barrel - after Saudi Arabia announced a production hike of 200,000 barrels a day and China increased fuel prices by dropping subsidies.

But yesterday, New York's main oil futures contract, light sweet crude for July delivery, jumped $4.27 to $136.20 a barrel at one stage and in London Brent North Sea crude for August rose $3.46 to $134.46.

Venezuela initially refused to attend the meeting, but energy minister Rafael Ramirez reportedly changed his mind at the last minute after blaming speculators and the falling dollar for the high prices. Meanwhile, Iran said raising output would not curtail prices.

Saudi Arabia, the world's largest producer and the de facto leader of Opec, called the summit in the hope of easing the strains on consuming economies caused by soaring oil prices.

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5 June 2008
World's biggest solar farm at centre of Portugal's ambitious energy plan in country without oil or gas
From a distance the bizarre structures sprouting from the high Alentejo plain in eastern Portugal resemble a field of mechanical sunflowers. Each of the 2,520 giant solar panels is the size of a house and they are as technically sophisticated as a car. Their reflective heads tilt to the sky at a permanent 45 degrees as they track the sun through 240 degrees every day.

The world's largest solar photovoltaic farm, generating electricity straight from sunlight, is taking shape near Moura, a small town in a thinly populated and impoverished region which boasts the most sunshine per square metre a year in Europe.

When fully commissioned later this year, the £250m farm set on abandoned state-owned land will be twice the size of any other similar project in the world, covering an area nearly twice the size of London's Hyde park. It is expected to supply 45MW of electricity each year, enough to power 30,000 homes.

Portugal, without its own oil, coal or gas and with no expertise in nuclear power, is pitching to lead Europe's clean-tech revolution with some of the most ambitious targets and timetables for renewables. Its intention, the economics minister, Manuel Pinho, said, is to wean itself off oil and within a decade set up a low carbon economy in response to high oil prices and climate change.

"We have to reduce our dependence on oil and gas," said Pinho. "What seemed extravagant in 2004 when we decided to go for renewables now seems to have been a very good decision."  read more »

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DENALI NATIONAL PARK, Alaska (AP) — Two young backpackers rationed peanut butter sandwiches and granola bars, growing hungrier as they wandered for six days in the dense vegetation of Denali National Park. Erica Nelson and Abby Flantz were down to their last granola bar Wednesday, the day they were rescued. Trekking through the remote park, they regularly clicked on their cell phone until they finally found reception that led to their rescue. "We got a signal and I said, 'Wow, I have to call my mom,'" Nelson told reporters before heading with her family to Houston, where she plans to serve as maid of honor Saturday in her sister's wedding.

What started as an overnight hike June 12 turned into an intensive search that cost more than $118,000 and sometimes involved 100 people from volunteer groups and state and federal agencies, according to park spokeswoman Kris Fister. Rangers estimate the women logged at least 20 miles before they were picked up by a helicopter crew outside the northeastern side of the 9,400-square-mile park, Fister said.

Nelson, 23, of Las Vegas and Flantz, 25, of Gaylord, Minn., had no idea they had trigged a search of that magnitude. They were reported overdue when they failed to show up at work Saturday at Denali Princess Wilderness Lodge, a hotel outside the park. But after a few days of being lost, they did figure that people might be concerned. "We were gone long enough, we knew there might be searches for us, but we didn't know it would be this big," Flantz said.

The women said they each packed only bare essentials, such as two sandwiches and granola bars, thinking that would be enough for their short trek. They brought a compass and a map but still lost their bearing, mistaking one river for another. They tried to follow the river, but that proved impossible many times, Flantz said. "There were steep hills, so we had to get away from them and there was this high brush we had to push through," she said. "I cried a little bit, but not much."

The days wore on and they rationed their food, but ran out of water and drank river water or melted snow. They ripped up a shirt to bandage scratches and blisters. Hiking exhausted them, but they trudged on when the weather was good, hoping their destination was over the next bend. At night they slept in a tent. Along the way, they saw plenty of bear tracks, steering far from the fresh prints. The only wildlife they saw, however, was a porcupine. The last couple of days it rained, so they mostly stayed in the tent, conserving their waning energy.

By Wednesday, the cell phone's battery was weak, but Nelson finally got through to her mother, Ellane, who was listening to park officials give a morning briefing on the search. That was the day Nelson's sister, Alecia, and her future brother-in-law were to decide whether to postpone their wedding. Nelson told her mother she and Flantz were alive and well but gave the wrong location of their whereabouts, so searchers couldn't find them. She called her mother again about 3:30 p.m., and officials told her to hang up and text message instead to save the dying battery. Then they were able to locate the signal several miles north of the 100-square-mile area they had been searching.

The search area, about 180 miles north of Anchorage, is a mix of national park and state-owned lands. It includes dense alder and willow, some black spruce forest, but also miles of tundra. Flantz, who plans to return to work on Saturday, said she's not giving up on outdoor adventures — but next time she'll be better prepared.

Officials said it was unlikely the women merely decided to extend their camping trip. Nelson was scheduled to fly Sunday night to Houston so she could be maid of honor in her sister's wedding. Nelson said she thought a lot about her sister when she was lost. "The whole time I was just, we got to keep going. I got to make it to her wedding," Nelson told KTUU.

Fister said she believed the wedding was still on.

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Photos courtesy of AP Photo/Matt Hage and Laurent Dick

Original Source: Associated Press and KATU

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They were going for the gold and they got it - Firefox has set a world download record with the release of Firefox 3 with 8.3 million downloads. beating its own goal by three million. Mozilla reported that there were around 8,000 downloads a minute, with a one-day estimate of between five and seven million downloads. Almost 2,7 million users have downloaded Firefox 3 only in the United States. Germany has ranked second in the Top 10 of Firefox fans with 700,000 downloads, while in Spain and France the browser has surpassed 300,000 downloads.

Mozilla Firefox, the little Web browser with the quirky name, has grown up fast. Four years ago, Firefox was an obscure project Microsoft felt free to ignore. Now it has grabbed about a fifth of the market worldwide. And while Microsoft has shipped only one upgrade to its Internet Explorer in that time, Firefox just hit its fourth major release. Like the earlier 1.0, 1.5 and 2.0 versions, Firefox 3 -- a free download for Windows 2000, XP and Vista; Mac OS X 10.4 and 10.5; and recent Linux releases at http://mozilla.com - makes the Web easier and safer to use in a few distinct ways.

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I am fond of pigs. Dogs look up to us. Cats look down. Pigs treat us as equals.
- Sir Winston Churchill

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They are not usually used to the limelight. In fact you might imagine them blinking as they emerge into the sunshine. The political directors of the foreign policy departments of the great powers are the archetypal bureaucrats - more used to influencing policy behind closed doors, than appearing before the glare of television lights.

But in the stylish residence of the German ambassador to Iran, they took their place alongside the EU foreign policy envoy Javier Solana, in what was, not for the first time in Tehran, a rather bizarre news conference. The aim was to demonstrate the unity of the international community, in the face of Iran's nuclear programme. In the event, it showed rather the opposite.

Mr Solana's mission was to bring a new package of incentives, designed to encourage Iran to suspend the enrichment of uranium - the process the West fears could be used to make a nuclear bomb.

Diplomatic optimism

But while he was in the process of delicately explaining his offer to various Iranian officials, US President George W Bush jumped the gun, and announced that Iran had already rejected the package "out of hand".

In fact, as Mr Solana quietly explained later on, Iran has agreed to take away the ideas and think about them.

It was more than just a misunderstanding on Mr Bush's part.

What was so striking was the difference in tone. President Bush was quick to condemn the Iranian government at the earliest opportunity.  read more »