Congress has deftly avoided the real story of AIG’s collapse, which will make a few million in bonuses seem like peanuts.
Most legislators at a House Finance subcommittee hearing last week deftly avoided the real story of AIG’s collapse. Instead, they homed in on the public relations disaster of hundreds of top AIG officials and staff getting $165 million (later revealed as over $218 million) in bonuses.
The key issue ignored by the congressmen and women was the potential catastrophe represented by as much as $2.7 trillion in AIG derivative contracts and how AIG and the U.S. government are dealing with them. To put that number in context, we’ve so far provided the company only about $170 billion.
A central theme of Arthur Miller‘s plays is morality, often personal morality in difficult times. All My Sons, produced in 1947, excoriated a man who sold faulty aviation equipment to the military during the war. The Crucible, staged in 1953, was his Salem witch trials commentary on McCarthyism. And a decade later, Miller was back to the theme with Incident at Vichy, a 1964 chilling and depressing look into peoples‘ psyches and morality in the time of the Holocaust. In each succeeding play, the times got tougher, moral choices more difficult.
There’s a mysterious Bank Madoff, New York that U.S. authorities don’t appear to know about. International securities clearing houses move trillions of dollars a year for banks and brokerages and are a natural way for crooks to launder
and hide ill-gotten gains. So it would be natural for investigators to check the paper trails of Madoff accounts in CSDs (central securities depositories) around the world.
They already know about the one listed in the name of Bernard L. Madoff Investment Securities LLC New York, US broker/dealer.
But they don’t seem to know about Bank Madoff, New York. It appears on a list published by Clearstream, the international clearing and settlement house in Luxembourg. That bank has not been publicly mentioned by investigators.
The score carries this sprightly if not perfect production of the classic 1950 musical comedy about a Salvation Army missionary who reforms a couple of hard-boiled but appealing gamblers. The book by Jo Swerling & Abe Burrows was based on The Idyll of Miss Sarah Brown and Blood Pressure, two short stories by Damon Runyon, who gets stage credit via the opening scene of a writer typing Broadway Stories on an old Remington.
Sarah Brown, the engaging Kate Jennings Grant, is out to save some souls. Nathan Detroit (Oliver Platt) is committed to finding a place to run his floating crap game for the night. This is a show where a lot of joy washes over the audience in spite of the fact that the songs are over-miked and the talk scenes between the numbers don’t sparkle as much.
How food-service providers like Sodexo bilk millions from taxpayers and customers
In These Times, March 2009 –
The Investigative Fund at the Nation Institute provided generous support for this article.
At the end of the 2006 school year, children‘s nutrition advocate Dorothy Brayley had a disturbing conversation with a local dairy representative. He had come to her office to discuss participation in the summer trade show of food providers she runs as director of Kids First Rhode Island.
At the time, the state‘s schools were buying 100,000 containers of milk each week. The salesman for Garelick Farms, New England‘s largest dairy, told Brayley that Sodexo”a food and facility management corporation that managed most of the state‘s school lunch programs”was paying Garelick more than competitors in order to get a bigger rebate.
That‘s just a taste of the hundreds of millions of dollars of “rebates””or kickbacks from suppliers”that Sodexo, a $20 billion-a-year global leader in the food and facility management industry, has taken while operating cafeterias and other facilities for schools, hospitals, universities, government agencies, the military and private companies across the country, according to evidence provided by whistleblowers and internal company documents.
Lynn Nottage‘s tense, intense thriller about the horrors of rape in the Congo is guaranteed to leave a knot in your stomach. If you‘ve avoided reading the newspaper stories, you can catch up right here. The play aspires to be a modern version of Brecht‘s “Mother Courage.” “Plus ça change, plus c‘est la même chose.” The more things change, the more they stay the same.
Could there be love under so much mean-spiritedness and cruelty? Was there something about this corner of rural Ireland that left so many inhabitants so bereft of human kindness? In Martin McDonagh’s first rate dark comedy, The Cripple of Inishmaan, Aaron Monaghan gives a bravura performance as Cripple Billy, who desperately wants to be valued for himself and not by his infirmity.
But he must navigate the shoals of a town where most of those around him lack civility, much less compassion.
The mood is surreal in Richard Greenberg’s fast-paced, sharply acted, quirky drama of love twisted into domination. The setting is naturalistic enough – a wood dock back-dropped by cedars at a summer home across the lake from a Catskills hotel. But the witchy, controlling Eva Adler (a biting Mercedes Ruehl), who presides over the scene, could blot out the sun as she does the life of her daughter and her chances with young men who deign to wander over from the hotel. Ruehl as Mother Eva makes Mama Rose (Gypsy) look like a wimp.
The U.S. government might finally get a powerful tool against offshore tax evasion by mega-wealthy individuals and corporations. The worst most miscreants face now is negotiated pay-ups years after they are caught.
A bill introduced last week by Senators Patrick Leahy (D-Vermont) and Chuck Grassley (R-Iowa) would make tax evasion using international transfers a criminal money-laundering offense.
The law aims at cases in which money passes through tax havens. It targets not just the evaded taxes, but any money that is part of the scam.
At a time when New York State’s budget is reeling from Wall Street tax losses — Wall Street pays 20 to 30 percent of revenues — you’d think Governor David Paterson would want to recoup all the evaded taxes he could get. That doesn’t seem to be the case when it comes to corporations that launder their profits offshore.
Paterson refused to deal with the issue and instead answered a question I hadn‘t asked. I wonder why. Does that mean he won’t go after corporate tax evaders? Here is the exchange from the Council‘s transcript of David Patterson meeting.
President Barack Obama said he would crack down on firms that use offshore centres to evade taxes. He could begin with a New York subsidiary of one of the world’s largest private banks, which used a Cayman Islands company to shift its profits.
Why would a New York investment fund manager run operations through an office in the Caymans? This type of structure is for optimising taxes, explained Max Obrist, a Cayman Islands official of the global Julius Baer Group (Zurich).
He told IPS that generating the income where a company was actually based, you would pay much more taxes. Obrist was describing a company shifting claimed earnings to tax havens to evade home taxes. He allegedly helped Julius Baer Investment Management (JBIM) New York do just that.
A revival of this impressive dance-theater piece first presented in 1984, is a powerful, sensual, emotional evocation of man‘s trajectory from heaven to hell, from the innocence of joy to repression and brutality. The eleven dancers of the company are notably talented, able to bend their bodies to gracefully walk doubled over as animals or pre-humans in the scene of origins, to move and twist with grace, to fly upside-down on wires, to present faces as expressive as their bodies as they show the pinched and frightened visages of people under repression. It‘s a performance you will not forget.
As U.S. workers are fired by corporate executives who take multi-million-dollar bonuses, “Billy Elliot, The Musical” seems made to order for the current American stage. It is a call for solidarity against those in power. It‘s a very British class-conscious play, with workers raising their fists to a giant puppet of 1980‘s Prime Minister Margaret Thatcher. It also tells a universal truth that political struggles must also defend personal freedom.
Tom Stoppard‘s adaptation of Chekov‘s “The Cherry Orchard” is the perfect companion piece to his 2002 Russian trilogy, “The Coast of Utopia.” The trilogy told about the formation and early activities of the 19th- century Russian revolutionaries who fought the aristocratic class headed by the Czar. Chekov‘s 1904 play describes the frivolous, aristocratic leisure class which hasn‘t a clue that it is being swept away by embryonic capitalists, while downtrodden workers and peasants wait in the background, ready to join up with Stoppard‘s radicals.
This is yet another Forbidden Broadway production in which the numbers are sometimes better than the musicals they satirize. And they are always on target about the shows and the theatrical culture. The performers, Christina Bianco, Jared Bradshaw, Gina Kreiezmar and Michael West, start out by introducing themselves and declaring, “We‘ll do twelve steps the Fosse way!” Here are some of my nutty favorites. Alas, you can‘t really get a sense of it without the music. (Check out the show‘s website for some songs.)
Con men make good anti-heroes. At a time when the country is focused on a spectacular one that cheated people of billions, it’s instructive to take a look at the genre. Pal Joey, the Richard Rodgers-Lorenz Hart 1940 musical given a moody revival by director Joe Mantello at the Roundabout Theatre, is about a sleazy character on the make for money and success. Joey’s take was a lot smaller than Bernard Madoff’s, but the essential immorality of the character – and the con man’s ability to charm and persuade — is the same. The new book is by Richard Greenberg, based on the original by John O’Hara.
U.S. Senators at Timothy Geithner’s confirmation hearing for Treasury Secretary Wednesday may want to ask him about a failure to act that is costing the U.S. a lot more than the amount he evaded on taxes.
The Federal Reserve Bank of New York, which he has led since 2003, conducts the operations on Wall Street of the Federal Reserve in Washington, the country’s central bank.
The New York Fed under Geithner’s presidency has failed to stop massive naked short selling of U.S. Treasury bonds that threatens the stability of the market and sale of the bonds.
Ironically, the scam, enabled by a lack of regulation at the behest of Wall Street brokerage houses, makes it more expensive for the U.S. to bail out those same financial institutions.
Personal demons rooted in a childhood traumatized by religion and repressed sexuality move this powerful play by Peter Shaffer, first staged in 1973. It is vividly directed by Thea Sharrock who brings an emotional intensity to the mysterious tale.
A troubled 17-year-old youth, Alan Strang (Daniel Radcliffe) is brought by a judge (Kate Mulgew) to the office of an overworked psychiatrist in a provincial hospital in southern England. He has blinded a stable of six horses. Slowly, through importuning, bribes of small gifts and even hypnotism, the psychiatrist, Martin Dysart (Richard Griffiths) gets him to see through his nightmares and tell what brought him to commit this horror.
Gordon Brown and Barack Obama are both promising to crack down on the use of offshore tax havens. But putting those tough words into practice is another matter.
One of the world’s biggest private wealth management groups circulates funds via offices in the Cayman Islands, claiming they take major investment decisions ” when the main work is apparently carried out in London.
With offices in London and across the globe, Swiss-based Julius Baer banking group invests over $300 billion ( £208 billion) in assets on behalf of institutions and wealthy individuals. Profits in 2007 were more than $1.1 billion.
In London, one of its units was known as Julius Baer Investors or Julius Baer Investment Management (JBIM) until a management buyout in 2007. It was renamed Augustus Asset Managers, is based in Bevis Marks in the City, and is still 10% owned by Julius Baer.
From London, Augustus controls assets of $12 billion but claims its profits are generated elsewhere, offshore at a Cayman Islands Baer subsidiary called Baer Select Management.
Why? Simple, really. “If you would generate all the income in London, you would pay much more taxes,” acknowledged Max Obrist, a Cayman Islands executive of Julius Baer.
TV interview about the Allen Stanford case and the Sodexo kickbacks revealed by whistleblowers Jay and John Carciero on Conversations with Harold Channer, Oct 29, 2009, MNN – Channel 34, New York. You Tube. One hour. And more.
Arthur Miller’s play about corporate corruption never goes out of fashion. As a theater device, he focused on a small factory owned by one man, but you can take this as a representation of what went on and what goes on when anything goes in business. Profits trump morals. The victims are all of us, which is what the title means. Simon McBurney’s production is smooth and riveting, with a cast that acts with the fluidity of an ensemble.
The financial crisis has the U.S. swirling with charges about the immoral greed of some corporate executives who recklessly bet their companies’ futures to line their own pockets. The popular fix for this international calamity stops at the nation’s borders: decouple top-line salaries and bonuses from stock prices and institute more transparency and regulation.
However, last month, the Vatican, in a groundbreaking statement, linked the financial crisis to a much deeper problem largely ignored in discussions of the crisis here. It underlined the need to consider carefully the hidden but crucial role of the offshore financial system in light of the emergence of the global financial crisis.
The Vatican now gets it, but U.S. corporations don’t. The U.S.-based multinationals that signed on to yet another ethics pledge included General Electric, The Hartford, Pepsi, Wal-Mart, Accenture, Dell, and United Airlines. Their ethics, according to their pledge, does not include rejecting the use of the offshore system to evade regulation as well as taxes.
American International Group (AIG) operated a captive insurance scam that involved fraudulent use of offshore tax havens. Currently, the U.S. government has invested over $40 billion in AIG, with the U.S. getting nearly 80 percent of its stock.
This puts the U.S. in a unique position to investigate the internal operations of a giant corporation with a reputation for using the offshore system for tax evasion.
U.S. authorities could begin their investigations with a look into a very curious practice that was revealed 15 years ago in a case that was never exposed by the mainstream press and which insurance insiders say is endemic.
AIG would keep a portion of a client’s inflated insurance premium and send the rest to the client’s offshore reinsurance company. AIG would earn a higher commission. The client would write off the entire amount as a business expense and enjoy the extra cash offshore, tax free.
This story tells how notorious fraudster Victor Posner made an AIG deal to stash reinsurance profits in Bermuda.
