European investors face billions of dollars losses in the wake of disclosure of "Ponzi" scheme run by Bernard Madoff, now being investigated by the American authorities.
European banks, including Spain's Grupo Santander SA and France's BNP Paribas, were quoted by the Wall Street Journal as saying that their clients and shareholders face billions of euros of losses on investments, underscoring the global reach of the alleged Ponzi scheme run by the veteran New York money manager.
A ponzi scheme is a type of securities fraud where the promoter makes some sort of false or misleading statement about an investment (often including a guaranteed high rate of return) and pays off older investors with newer investors money.
Santander, the eurozone's largest bank by market value, said its clients had an exposure of 2.33 billion euros ($3.1 billion) to Madoff's investment funds, mainly through its Optimal Strategic US Equity fund.
The company, which has been relatively unscathed from global financial crisis, said it had hired Madoff's firm to execute the Optimal fund's investments. Santander vowed to "undertake the legal actions which may be needed to defend the interests of investors."
The Journal reported that BNP, France's largest bank by market value, said it could lose as much as 350 million euros as a result of the alleged fraud.
However, the bank said it has no investment of its own in the hedge funds managed by Bernard Madoff Investment Services. BNP Paribas, however, said it is exposed to these funds through its trading business and lending to hedge funds that had invested in Madoff's funds.
The losses, the Journal said, could prove particularly embarrassing for banks' private-banking businesses, which charge high fees to wealthy investors in return for what is supposed to be superior advice and due diligence.
More than two billion euros belongs to institutional investors and international clients of Santander's private-banking business, which provides services to wealthy individuals, it was quoted as saying. The remaining 320 million euros belongs to private-banking customers in Spain, where the bank is based.
Most of the European banks' exposures were on client investments they managed, rather than on the banks' own balance sheets, it said, adding that it's not yet clear how much, if anything, investors in Madoff's funds may be able to recover.
Exposures to Madoff's funds have also emerged among a growing number of smaller European private banks.
In a letter posted on its website, the Swiss private bank Reichmuth and Co said its clients had an exposure of some 385 million Swiss francs to Madoff funds.
The bank said Reichmuth Matterhorn, a fund that invests in other hedge funds, faced a potential loss of about 8.6 per cent on its exposure to Madoff. That amount represented about 3.5 per cent of the 11 billion Swiss francs Reichmuth & Co. has under management, the bank said, the Journal reported.
Source: Agencies
Monday, December 15, 2008
Sunday, December 14, 2008
Concern voiced over employability of tech students!
A Parliamentary Committee has voiced concern over "employability" of students passing out of technical institutions in the country,saying the expected response from the industry is "simply missing".
Despite several initiatives taken for meaningful interaction between industry and academia for mutual benefits specific to technical education system, linkages between industry and technical institutions continue to remain weak, the Committee said.
The anticipated response from the industry is simply missing and the variety of initiatives has failed to evolve the desired level of participation of the industry, the Parliamentary Standing Committee on HRD said in its report on the functioning of All India Council of Technical Education (AICTE).
It was an accepted fact that technical education comprising almost all the disciplines has to have a well- established linkage with the industry both in terms of its proper growth and job opportunities to the students, the report said.
"Over the years, although there has been tremendous expansion in the number of technical institutions, employability of students passing out of such technical institutions remains a matter of serious concern," it pointed out.
Tie-up with industry associations such as CII, FICCI, ASSOCHAM, NASSCOM and with entrepreneurship promoting agencies have failed to take off, the Committee, headed by senior Congress MP Janardan Dwivedi, said.
The report said that AICTE's admission that monitoring was required to ensure good response of all the existing schemes indicated the "dismal state of affairs in this most vital area".
"The need of the hour is to initiate a meaningful dialogue with the representatives of the industry so as to have the real understanding of their requirements and remove the existing bottlenecks," it said.
Not impressed by the AICTE's reported move to set up another committee for reviewing the Industry-Institute Partnership Schemes, the report said, "undoubtedly, the Council will have to play the role of coordinator and facilitator between the industry and institutions."
In view of the need to foster public/private partnership and harness private sector resources, AICTE should holistically examine its existing rules, regulations and procedures to further this objective, it said.
The Committee has also sought a report within three months from AICTE on the action taken by it in this regard.
Source: Agencies
Despite several initiatives taken for meaningful interaction between industry and academia for mutual benefits specific to technical education system, linkages between industry and technical institutions continue to remain weak, the Committee said.
The anticipated response from the industry is simply missing and the variety of initiatives has failed to evolve the desired level of participation of the industry, the Parliamentary Standing Committee on HRD said in its report on the functioning of All India Council of Technical Education (AICTE).
It was an accepted fact that technical education comprising almost all the disciplines has to have a well- established linkage with the industry both in terms of its proper growth and job opportunities to the students, the report said.
"Over the years, although there has been tremendous expansion in the number of technical institutions, employability of students passing out of such technical institutions remains a matter of serious concern," it pointed out.
Tie-up with industry associations such as CII, FICCI, ASSOCHAM, NASSCOM and with entrepreneurship promoting agencies have failed to take off, the Committee, headed by senior Congress MP Janardan Dwivedi, said.
The report said that AICTE's admission that monitoring was required to ensure good response of all the existing schemes indicated the "dismal state of affairs in this most vital area".
"The need of the hour is to initiate a meaningful dialogue with the representatives of the industry so as to have the real understanding of their requirements and remove the existing bottlenecks," it said.
Not impressed by the AICTE's reported move to set up another committee for reviewing the Industry-Institute Partnership Schemes, the report said, "undoubtedly, the Council will have to play the role of coordinator and facilitator between the industry and institutions."
In view of the need to foster public/private partnership and harness private sector resources, AICTE should holistically examine its existing rules, regulations and procedures to further this objective, it said.
The Committee has also sought a report within three months from AICTE on the action taken by it in this regard.
Source: Agencies
Geneva banks lost more than $4 billion to Madoff, says a report
Geneva-based banks and investment funds have lost more than 5 billion Swiss francs ($4.22 billion) in the alleged $50 billion fraud by former Nasdaq chairman Bernard Madoff, Swiss newspaper Le Temps reported on Saturday.
Union Bancaire Privee (UBP), a leading bank for investment in funds of hedge funds, has lost about 1 billion Swiss francs, said Le Temps, which spoke to various unnamed banking sources for its article.
A spokesman for UBP said the bank had no comment with regards to the article. UBP had 127 billion Swiss francs of assets under management at the end of June.
Geneva-based private bank Benedict Hentsch said on Friday its exposure to Madoff products was 56 million francs, or 5 percent of its asset under management.
The bank merged three months ago with alternative investment specialist Fairfield Greenwich Group, which has invested $7.5 billion or half of its assets in one of the funds set up by Madoff.
Le Temps quoted one of Benedict Hentsch's partners as saying he and another partner were rushing to New York to break the agreement with Fairfield.
The EIM Group, active in hedge funds, has said it is affected by $230 million or about 2 percent of its $11.5 billion assets under management, the paper reported. No one was available to answer phone calls at the bank and there was no reply to a request for comment via email.
Le Temps also said that Notz, Stucki & Cie, a group that offers portfolio management for wealthy individuals, has also been hit by the Madoff scandal. No one was available to answer phone calls at the bank and a phone message was not returned.
The vast majority of Geneva-based family offices have also been touched by the Madoff scandal, the newspaper said. Benbassat & Cie had invested 1.1 billion francs in the Madoff funds, Le Temps said. Telephone calls to the bank were not answered an email message was not returned.
Private bank Syz & Co told Le Temps that its 3A fund was not exposed to Madoff. But it did not give details about a possible direct exposure of its private banking clients, the paper said.
Bank Pictet & Cie said it had "never chosen any of the funds linked to Bernard Madoff in our hedge funds investment strategy."
Thierry Lombard, of private bank Lombard Odier Darier Hentsch, was quoted as saying: "the Madoff universe has never been on our list of in-house funds nor in any of the open architecture funds."
Private bank Mirabaud said: "We have an exposure of a few millions, not of tens of millions."
Source: Agencies
Union Bancaire Privee (UBP), a leading bank for investment in funds of hedge funds, has lost about 1 billion Swiss francs, said Le Temps, which spoke to various unnamed banking sources for its article.
A spokesman for UBP said the bank had no comment with regards to the article. UBP had 127 billion Swiss francs of assets under management at the end of June.
Geneva-based private bank Benedict Hentsch said on Friday its exposure to Madoff products was 56 million francs, or 5 percent of its asset under management.
The bank merged three months ago with alternative investment specialist Fairfield Greenwich Group, which has invested $7.5 billion or half of its assets in one of the funds set up by Madoff.
Le Temps quoted one of Benedict Hentsch's partners as saying he and another partner were rushing to New York to break the agreement with Fairfield.
The EIM Group, active in hedge funds, has said it is affected by $230 million or about 2 percent of its $11.5 billion assets under management, the paper reported. No one was available to answer phone calls at the bank and there was no reply to a request for comment via email.
Le Temps also said that Notz, Stucki & Cie, a group that offers portfolio management for wealthy individuals, has also been hit by the Madoff scandal. No one was available to answer phone calls at the bank and a phone message was not returned.
The vast majority of Geneva-based family offices have also been touched by the Madoff scandal, the newspaper said. Benbassat & Cie had invested 1.1 billion francs in the Madoff funds, Le Temps said. Telephone calls to the bank were not answered an email message was not returned.
Private bank Syz & Co told Le Temps that its 3A fund was not exposed to Madoff. But it did not give details about a possible direct exposure of its private banking clients, the paper said.
Bank Pictet & Cie said it had "never chosen any of the funds linked to Bernard Madoff in our hedge funds investment strategy."
Thierry Lombard, of private bank Lombard Odier Darier Hentsch, was quoted as saying: "the Madoff universe has never been on our list of in-house funds nor in any of the open architecture funds."
Private bank Mirabaud said: "We have an exposure of a few millions, not of tens of millions."
Source: Agencies
Is oil price heading towards $25-30 a barrel?
Global investment banks Merrill Lynch and Goldman Sachs, which had earlier this year forecast oil prices would surge to USD 200 per barrel level, now foresee it slipping to USD 25-30 level, while Indian analysts anticipate a strong resistance at 40 dollars.
After hitting a peak of over 147 dollars in July this year, crude oil prices have declined sharply and are currently trading near 45 dollars level.
Goldman Sachs' commodity research team in its latest research note has predicted that the oil price might slip to 30 dollars per barrel level in the next three months.
Meanwhile, the firm's energy equity research team, led by Arjun Murti, said in another report that it is cutting its forecast for 2009 to 45 dollars, from 80 dollars previously, due to global economic slowdown.
Murti, who is known as 'oil guru', had shot to fame for rightly predicting a spike in the price to USD 100 when it was trading at around USD 40 level. Later in May, Murti forecast a spike to 150-200 dollars level in the next 6-24 months.
In an interview with the stock market weekly Barron's in June, when oil price were hovering at about 135 dollars, Murti had said that oil prices might fall below 75 dollars, but after 20 years.
The latest report from Murti's team has, however, said that there was a possibility of prices falling below USD 40 level shortly.
Indian analysts, however, see a strong resistance to the oil prices slipping below USD 40 level and do not foresee any possibility of USD 25-30 level.
"Crude oil prices may not fall below 40 dollar a barrel. Rather it will consolidate at 40 dollar a barrel level," Kotak Commodoties Vice President Si Kannan said.
Source: Agencies
After hitting a peak of over 147 dollars in July this year, crude oil prices have declined sharply and are currently trading near 45 dollars level.
Goldman Sachs' commodity research team in its latest research note has predicted that the oil price might slip to 30 dollars per barrel level in the next three months.
Meanwhile, the firm's energy equity research team, led by Arjun Murti, said in another report that it is cutting its forecast for 2009 to 45 dollars, from 80 dollars previously, due to global economic slowdown.
Murti, who is known as 'oil guru', had shot to fame for rightly predicting a spike in the price to USD 100 when it was trading at around USD 40 level. Later in May, Murti forecast a spike to 150-200 dollars level in the next 6-24 months.
In an interview with the stock market weekly Barron's in June, when oil price were hovering at about 135 dollars, Murti had said that oil prices might fall below 75 dollars, but after 20 years.
The latest report from Murti's team has, however, said that there was a possibility of prices falling below USD 40 level shortly.
Indian analysts, however, see a strong resistance to the oil prices slipping below USD 40 level and do not foresee any possibility of USD 25-30 level.
"Crude oil prices may not fall below 40 dollar a barrel. Rather it will consolidate at 40 dollar a barrel level," Kotak Commodoties Vice President Si Kannan said.
Source: Agencies
What can you do with 3G services In India?
With 3G, the next-gen mobile service launched in Delhi, your handset becomes an all-purpose device. Here’s what all you can do and what it offers.
* Browse Internet and send, receive large emails including graphics. 3G also enables faster movie downloads.
* Make video calls and videoconference (possible on 3G to 3G calls).
* Get streaming TV on phone screen with pause, record features. MTNL’s IPTV network currently offers 4 channels, will expand to 10 channels in 10 days and 40 in 2-3 weeks.
* Remote access footage from CCTV (could also help police and in traffic management).
* Play interactive games on Net sites, access bank accounts and shop online.
* Get high-speed Web navigation, maps.
* 3G services give mobile users high-quality voice transmission and access to high-end data applications on their mobile phones.
2G vs 3G
3G represents the next step in the evolution of mobile telephony, offering markedly greater capacity and efficiency than the current 2G systems.
While 2G is focused on voice, 3G supports high-speed data of at least 144 kbps enabling broadband Internet access on the mobile, and "triple play" features like mobile TV and converged communication services.
Similarly, 3G will allow operators to enhance their capacities for voice traffic as well. Currently, key operators are facing severe 2G spectrum crunch in top 20-30 cities which is hampering their future growth. As the government has indicated that it has limited spectrum left for 2G services.
Also, while 3G is good for data services, it is also three times more efficient than current technologies in packing in subscribers.
Top speed
* 2G -- 10kb/sec
* 3G -- 2mb/sec
Time taken to download a 3-min MP3 song
* 2G -- 31 to 40 minutes
* 3G -- 11 secs to 1.5 min
How much will it cost?
MTNL will release tariff plan after a month. It’s only servicing corporate clients at the moment and will rely on their feedback before commercial launch.
Source: Times of India
* Browse Internet and send, receive large emails including graphics. 3G also enables faster movie downloads.
* Make video calls and videoconference (possible on 3G to 3G calls).
* Get streaming TV on phone screen with pause, record features. MTNL’s IPTV network currently offers 4 channels, will expand to 10 channels in 10 days and 40 in 2-3 weeks.
* Remote access footage from CCTV (could also help police and in traffic management).
* Play interactive games on Net sites, access bank accounts and shop online.
* Get high-speed Web navigation, maps.
* 3G services give mobile users high-quality voice transmission and access to high-end data applications on their mobile phones.
2G vs 3G
3G represents the next step in the evolution of mobile telephony, offering markedly greater capacity and efficiency than the current 2G systems.
While 2G is focused on voice, 3G supports high-speed data of at least 144 kbps enabling broadband Internet access on the mobile, and "triple play" features like mobile TV and converged communication services.
Similarly, 3G will allow operators to enhance their capacities for voice traffic as well. Currently, key operators are facing severe 2G spectrum crunch in top 20-30 cities which is hampering their future growth. As the government has indicated that it has limited spectrum left for 2G services.
Also, while 3G is good for data services, it is also three times more efficient than current technologies in packing in subscribers.
Top speed
* 2G -- 10kb/sec
* 3G -- 2mb/sec
Time taken to download a 3-min MP3 song
* 2G -- 31 to 40 minutes
* 3G -- 11 secs to 1.5 min
How much will it cost?
MTNL will release tariff plan after a month. It’s only servicing corporate clients at the moment and will rely on their feedback before commercial launch.
Source: Times of India
ISRO, Russian Space Agency join hands for Indian Man Mission
The Indian Space Research Organisation (ISRO) and the Russian Space Agency have joined hands to share critical equipments for the Indian Man Mission to the Moon.
India and Russia signed a Memorandum of Understanding (MoU) to promote joint activities in the field of human space flight programme during the visit of Russian President Dmitry Medvedev last week.
"Under the MoU, both countries will jointly build spacecraft for the Indian manned mission," said S Satish, spokesperson of ISRO.
As per the MoU, an Indian astronaut will embark on a mission to space in a Russian spacecraft within the next five years, ahead of ISRO's maiden human space flight scheduled for 2014 or 2015.
"We have well laid our plans and of course manned mission are in our plan and programme. May be manned mission for the government approval, comes immediately, around 2014 or 2015, will be the targeted launch date," added Satish.
Recently, ISRO achieved benchmark success when the Chandrayaan-1 (India's moon mission) was successfully launched on October 22, by PSLV-C11.
This success allowed India to join the elite lunar club which Russia, the USA, Japan, China and European Space Agency are already members.
India is also planning to launch the satellite 'Aditya' to study the sun by 2012 and it also hopes to send an astronaut into space by 2012.
Source; Agencies
India and Russia signed a Memorandum of Understanding (MoU) to promote joint activities in the field of human space flight programme during the visit of Russian President Dmitry Medvedev last week.
"Under the MoU, both countries will jointly build spacecraft for the Indian manned mission," said S Satish, spokesperson of ISRO.
As per the MoU, an Indian astronaut will embark on a mission to space in a Russian spacecraft within the next five years, ahead of ISRO's maiden human space flight scheduled for 2014 or 2015.
"We have well laid our plans and of course manned mission are in our plan and programme. May be manned mission for the government approval, comes immediately, around 2014 or 2015, will be the targeted launch date," added Satish.
Recently, ISRO achieved benchmark success when the Chandrayaan-1 (India's moon mission) was successfully launched on October 22, by PSLV-C11.
This success allowed India to join the elite lunar club which Russia, the USA, Japan, China and European Space Agency are already members.
India is also planning to launch the satellite 'Aditya' to study the sun by 2012 and it also hopes to send an astronaut into space by 2012.
Source; Agencies
Obama stimulus package could reach $1 trillion
President-elect Barack Obama's team is considering a plan to boost the recession-hit US economy that could be far larger than previous estimates and might reach $1 trillion over two years, the Wall Street Journal reported on Saturday.
Obama aides, who were considering a half-trillion dollar package two weeks ago, now consider $600 billion over two years "a very low-end estimate," the newspaper said, citing an unidentified person familiar with the matter.
The final size of the stimulus was expected to be significantly higher, possibly between $700 billion and $1 trillion over that period, it said, given the deteriorating state of the U.S. economy.
Officials with Obama's camp have declined to comment on media reports about the size of the boost his administration might seek to give the economy through increased public spending and tax cuts.
Obama is due to take office on January 20.
Battered stock market investors around the world have taken heart from previous indications of how Obama's administration may seek to kickstart growth in the world's largest economy.
Obama has promised he will launch a massive public works program to help lift the U.S. economy out of recession.
The president-elect is likely to be briefed by his aides on the outline of the stimulus plan next week with a view to getting it passed by Congress by the time he is sworn in next month, the Journal said.
Economists have previously said they expect Obama to quickly sign a multi-year spending package that could be worth up to $750 billion, or almost 5 percent of U.S. gross domestic product.
The administration of President George W. Bush has been given authority by Congress to spend up to $700 billion in taxpayer money to rescue the nation's banking system.
The money was originally set aside to buy up toxic mortgage-backed securities but is now being used to recapitalize banks and induce them to lend more freely.
Source; Agencies
Obama aides, who were considering a half-trillion dollar package two weeks ago, now consider $600 billion over two years "a very low-end estimate," the newspaper said, citing an unidentified person familiar with the matter.
The final size of the stimulus was expected to be significantly higher, possibly between $700 billion and $1 trillion over that period, it said, given the deteriorating state of the U.S. economy.
Officials with Obama's camp have declined to comment on media reports about the size of the boost his administration might seek to give the economy through increased public spending and tax cuts.
Obama is due to take office on January 20.
Battered stock market investors around the world have taken heart from previous indications of how Obama's administration may seek to kickstart growth in the world's largest economy.
Obama has promised he will launch a massive public works program to help lift the U.S. economy out of recession.
The president-elect is likely to be briefed by his aides on the outline of the stimulus plan next week with a view to getting it passed by Congress by the time he is sworn in next month, the Journal said.
Economists have previously said they expect Obama to quickly sign a multi-year spending package that could be worth up to $750 billion, or almost 5 percent of U.S. gross domestic product.
The administration of President George W. Bush has been given authority by Congress to spend up to $700 billion in taxpayer money to rescue the nation's banking system.
The money was originally set aside to buy up toxic mortgage-backed securities but is now being used to recapitalize banks and induce them to lend more freely.
Source; Agencies
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