Creep of the week
A former Jefferies & Co. managing director convicted of fraud for lying to customers about the price of mortgage-backed securities sued the AllianceBernstein Holding LP (AB) executive who reported him.
Jesse C. Litvak sued Michael Canter, head of the securitized assets group at New York-based AllianceBernstein, in New York State Supreme Court in Manhattan yesterday, accusing him of using “wrongful, unfair or improper means” to interfere with his employment, directly resulting in his termination.
Litvak was accused of defrauding investors of $2 million by misrepresenting how much sellers were asking for the securities, or what customers would pay, and keeping the difference for Jefferies…
Canter testified for the prosecution during the case, saying the spreadsheet showed that Litvak had misled him about how much Jefferies had paid for bonds, including one instance when Canter agreed to raise a bid, yet the firm still paid the original price.
Litvak was found guilty in March of securities fraud and making false statements, as well as fraud connected to the Troubled Asset Relief Program. Along with his prison sentence, he was ordered to pay a $1.75 million fine.
Throw away the key!
This sleazy bastard and the lawyers representing him are perfect examples of how low legal processes have sunk in the United States. From kissing butt for every fundamentalist nutball who doesn’t want to pay taxes – to the open buying and selling of Congress and lesser members of the mutant species we have for elected officials – corruption is justified by every crook in the country.
They act as if the only birthright in the country that doesn’t need validation is that the powerful have every right to steal.
The judge should call him back for re-sentencing – and double the time, triple the fine!
A Noah’s Ark-themed amusement park may have sprung a financial leak after being denied millions of dollars in tax incentives.
The Ark Encounter, a Genesis-themed attraction with a 500-foot-long wooden replica of Noah’s Ark, was denied approximately $18 million in tax breaks from the state of Kentucky. Why? According to Think Progress, it may have something to do with refusing to comply with the state’s existing nondiscrimination policies…
This isn’t the first time that Ark Encounter and its parent company Answers in Genesis have been tied in with state taxes. When the park was announced almost four years ago, MSNBC reported that it would be eligible for $37 million in state tourism incentives, despite worries that taxpayers were funding a religious theme park.
Fast forward to early October, when the park’s president Mike Zovath let it slip that he only planned to hire creationists. Ark Encounter had received preliminary approval for $18 million in sales tax rebates over the next 10 years, but the Secretary of the Kentucky Tourism, Arts, and Heritage Cabinet had warned Zovath that companies which discriminate on religious bases cannot receive these incentives.
And it turns out that the Cabinet was true to its word. In a letter, Tourism Secretary Bob Stewart noted that “the use of state incentives in this way violates the separation of church and state provisions of the Constitution and is therefore impermissible…”
Is there a Christian nutball in the country who doesn’t also feel it’s their fundamental[ist] right to be given taxpayer dollar$ to fund their personal religious beliefs?
Gov. Andrew M. Cuomo’s administration has announced…that it would ban hydraulic fracturing in New York State because of concerns over health risks, ending years of uncertainty over the disputed method of natural gas extraction.
State officials concluded that fracking, as the method is known, could contaminate the air and water and pose inestimable dangers to public health.
That conclusion was delivered during a year-end cabinet meeting Mr. Cuomo convened in Albany. It came amid increased calls by environmentalists to ban fracking, which uses water and chemicals to release oil and natural gas trapped in deeply buried shale deposits…
Mr. Cuomo, a Democrat who has prided himself on taking swift and decisive action on other contentious issues like gun control, took the opposite approach on fracking. He repeatedly put off making a decision on how to proceed, most recently citing a continuing — and seemingly never-ending — study by state health officials.
On Wednesday, six weeks after Mr. Cuomo won re-election to a second term, the long-awaited health study finally materialized.
In a presentation at the cabinet meeting, the acting state health commissioner, Dr. Howard A. Zucker, said the examination had found “significant public health risks” associated with fracking.
Holding up scientific studies to animate his arguments, Dr. Zucker listed concerns about water contamination and air pollution, and said there was insufficient scientific evidence to affirm the long-term safety of fracking.
Dr. Zucker said his review boiled down to a simple question: Would he want to live in a community that allowed fracking?
He said the answer was no.
“We cannot afford to make a mistake,” he said. “The potential risks are too great. In fact, they are not even fully known.”
Good enough for me. I still have a few reservations about environmental reservations. Those mostly reflect the paucity of studies on fracking and health. Everything raised by Dr. Zucker can be raised about every form of drilling for fossil fuels. And I think if we’re to ban one technique – we may as well ban them all.
Incidentally, that wouldn’t upset me, either.
Thanks, Mike — GMTA
Sometimes the best measure of a movement’s momentum is the reaction of its critics. When, in early October, the Australian National University (ANU) announced that it would sell its shares in seven fossil-fuel and mining companies, it triggered a chorus of criticism from the country’s conservative politicians.
These nominal champions of the free market were quick to tell the university what it should do with its money. The Treasurer of Australia, Joe Hockey, disparaged the ANU’s decision as being “removed from reality.” Others chimed in, calling it “a disgrace,” “very strange,” and “narrow-minded and irresponsible.” Never mind that the sums involved were relatively small – making up less than 2% of the university’s estimated $1 billion portfolio.
As the drive to divest from fossil fuels picks up speed, such panicky responses are becoming increasingly common. The outrage of Australia’s conservatives reminds me of the reaction I received when I testified before the US Congress in 2013 that we should “keep our coal in the ground where it belongs.” David McKinley, a Republican congressman from West Virginia, in the heart of America’s coal country, replied that my words “sent a shiver up [his] spine,” then changed the subject to the crime rate in Seattle, where I was Mayor.
…The fossil-fuel industry clearly sees the divestment movement as the political threat that it is. When enough people say no to investing in fossil-fuel production, the next step has to be keeping coal, oil, and gas in the ground.
That is a necessary step if we are to head off the most dangerous consequences of climate change. To prevent world temperatures from rising above the 2º Celsius threshold that climate scientists believe represents a tipping point beyond which the worst effects could no longer be mitigated, we will need to leave approximately 80% of known fossil-fuel reserves untapped…
…reality implies another compelling case for divestment. To be sure, some will claim that the world will never change and that we will continue to depend on fossil fuels forever. But one has only to look to Seattle, where gay couples marry in City Hall and marijuana is sold in licensed retail outlets, to see the human capacity to reexamine deeply held assumptions. The prudent investor, and the wise business leader, will look where the economy is headed, not where it has been.
We need more courage like that shown by the ANU. Its leaders bucked the power of coal and oil interests, which wield enormous power in Australia. If they can do it to popular acclaim, others can, too.
The tomatoes, peppers and cucumbers arrive year-round by the ton, with peel-off stickers proclaiming “Product of Mexico.”
Farm exports to the U.S. from Mexico have tripled to $7.6 billion in the last decade, enriching agribusinesses, distributors and retailers.
American consumers get all the salsa, squash and melons they can eat at affordable prices. And top U.S. brands — Wal-Mart, Whole Foods, Subway and Safeway, among many others — profit from produce they have come to depend on.
These corporations say their Mexican suppliers have committed to decent treatment and living conditions for workers.
But a Los Angeles Times investigation found that for thousands of farm laborers south of the border, the export boom is a story of exploitation and extreme hardship.
Many farm laborers are essentially trapped for months at a time in rat-infested camps, often without beds and sometimes without functioning toilets or a reliable water supply.
Some camp bosses illegally withhold wages to prevent workers from leaving during peak harvest periods.
Laborers often go deep in debt paying inflated prices for necessities at company stores. Some are reduced to scavenging for food when their credit is cut off. It’s common for laborers to head home penniless at the end of a harvest.
Those who seek to escape their debts and miserable living conditions have to contend with guards, barbed-wire fences and sometimes threats of violence from camp supervisors.
Major U.S. companies have done little to enforce social responsibility guidelines that call for basic worker protections such as clean housing and fair pay practices.
The farm laborers are mostly indigenous people from Mexico’s poorest regions. Bused hundreds of miles to vast agricultural complexes, they work six days a week for the equivalent of $8 to $12 a day.
The squalid camps where they live, sometimes sleeping on scraps of cardboard on concrete floors, are operated by the same agribusinesses that employ advanced growing techniques and sanitary measures in their fields and greenhouses.
One of ~100,000 Mexican children under 14 who pick crops…He is 9 years old.
The comparison with Edward R Murrow’s “Harvest of Shame” about migrant labor on US farms in 1960 is appropriate. Some of the poor buggers in that documentary probably were the fathers and mothers, grandfathers and grandmothers of folks revealed in this series of articles.
This is the kind of long-form journalism still popular outside the United States. Sometimes, I feel our Establishment deliberately encourages Americans to develop the attention span of a cricket. It would be an injustice for me to use my usual editor’s X-Acto knife on the wealth of information inside these articles. Richard Marosi and Don Bartletti are to be congratulated much for their work undercover – and cold-call walk-ins. I hope the journalism craft recognizes their work appropriately.
Please, please, RTFA. There’s a link above to this the first in the series.
Here are the links to:
Part 2: A raid exposes brutal conditions at Bioparques, one of Mexico’s biggest tomato exporters, which was a Wal-Mart supplier. But the effort to hold the grower accountable is looking more like a tale of impunity.
Part 3: The company store is supposed to be a lifeline for migrant farm laborers. But inflated prices drive people deep into debt. Many go home penniless, obliged to work off their debts at the next harvest.
Part 4: About 100,000 children under 14 pick crops for pay at small- and mid-size farms across Mexico, where child labor is illegal. Some of the produce they harvest reaches American consumers, helping to power an export boom.
Kudos for finding us one of the best pieces of American journalism in quite a while
Opening the door for what could be a lucrative and controversial new industry on some Native American reservations, the Justice Department on Thursday will tell U.S. attorneys to not prevent tribes from growing or selling marijuana on the sovereign lands, even in states that ban the practice.
The new guidance, released in a memorandum, will be implemented on a case-by-case basis and tribes must still follow federal guidelines, said Timothy Purdon, the U.S. attorney for North Dakota and the chairman of the Attorney General’s Subcommittee on Native American Issues…
The policy comes on the heels of the 2013 Justice Department decision to stop most federal marijuana prosecutions in states that have legalized the possession or sale of pot. Colorado, Washington, Oregon, Alaska and the District of Columbia have all moved to legalize the drug, though the D.C. law may be scaled back by Congress.
Some tribes see marijuana sales as a potential source of revenue, similar to cigarette sales and casino gambling, which have brought a financial boon to reservations across the country. Others, including the Yakama Reservation in Washington state, remain strongly opposed to the sale or use of marijuana on their lands…
Even though Indian nations are recognized as sovereign, Anglo governments, white folks in general have such a long history of telling First Nation folks how to run their lives – there is no doubt that states still backwards enough to have restrictive laws on marijuana will try to continue that restriction on crops and sales on tribal lands.
From my perspective in a so-called tricultural state like New Mexico? Hey, it serves more good than selling fireworks. I have neighbors who make the short trek to the nearest Pueblo on the weekend to fill-up their pickup on cheaper gasoline. I imagine there will be folks doing the same in some states to stockup on weed.
Just watch out for The Man on the way home.
GE just announced the largest debt financing this year for a thermal power plant in the US. Located in Riverside County, California, the massive 800 MW Sentinel Facility will help facilitate the integration of renewable energy into the power grid. The plan is being funded by a union of mega companies including GE Energy Financial Services, Diamond Generating Corporation and Competitve Power Ventures, and when it is completed it will produce enough power for 239,000 homes.
The thermal plant is part of California’s program to derive 33% of its power from renewable energy by the year 2020. In addition to the CPV Sentinel Facility, Riverside will welcome the Blythe Solar Project, a 968 megawatt solar power plant, driving the state even further toward their goal.
Aside from generating power, the $2 billion project will also give way to 300 construction jobs and 400 employment jobs — expected to inject $55 million into the local economy. Sales tax alone from the project will bring $30 million, and property taxes will provide the county with an additional $6.4 million.
And it ain’t going to buy coal from the Four Corners and PNM.
Oh yeah – that’s more post-construction direct permanent jobs than the whole Keystone XL pipeline.
Amazon’s Giant Mystery Box Is Back
Nerds went into a tizzy earlier this year when a giant Amazon box was spotted on the back of a flatbed truck. Turned out the box held a Nissan car that was being delivered as part of an advertising deal the car maker did with Amazon.
Guess what? The big box is back. This morning, a Re/code editor spotted the box shown in the photo above on the back of a truck in the SoMa neighborhood of San Francisco. On first look, it didn’t appear big enough to fit a car. I contacted Amazon to get some more information.
An Amazon rep said it is not part of an advertising campaign like last time, but it is part of a “new program” that the company will unveil next week. Fifteen of these boxes are scattered around the U.S., he said.
“We’re excited to be making 15 special deliveries next week as part of the holiday season,” the spokesperson said in an email. “Stay tuned.”
Geeks especially enjoy whimsy in place of advertising dollar$ spent on traditional agitprop.
This can’t be about their new diapers – they debuted yesterday. The same day this article was posted over at Re/Code. So, I’ll be one of the geeks patrolling the Web and watching for news about the Big Box.
I have a thing about Amazon boxes, anyway. I haven’t succeeded, yet – haven’t gotten past the mystery of customer service representatives whose English is a second language. But, since I’m prepaying for a truly cheapo cremation when I shuffle off this mortal coil – I want the absolute minimum which includes my body traveling into the fires of redemption in a cardboard box instead of something really expensive – I’m trying to get a properly sized Amazon Prime box. Appropriately labeled as such.
As a geek who’s been online since 1983 and a devotee of online commerce, I think it would be the best way for me to prep for redistribution of my elemental molecules.
Canada’s green energy sector has grown so quickly and has become such an important part of the economy that it now employs more people than the oil sands.
About $25-billion has been invested in Canada’s clean-energy sector in the past five years, and employment is up 37 per cent, according to a new report from climate think tank Clean Energy Canada to be released Tuesday. That means the 23,700 people who work in green energy organizations outnumber the 22,340 whose work relates to the oil sands, the report says.
“Clean energy has moved from being a small niche or boutique industry to really big business in Canada,” said Merran Smith, director of Clean Energy Canada. The investment it has gleaned since 2009 is roughly the same as has been pumped into agriculture, fishing and forestry combined, she said. The industry will continue to show huge growth potential, beyond most other business sectors, she added.
While investment has boomed, the energy-generating capacity of wind, solar, run-of-river hydro and biomass plants has expanded by 93 per cent since 2009, the report says…
Not a priority, however, for the Conservatives running the Federal government. Big Oil still rules.
Not only does the oil industry still get more substantial subsidies, she said, it also eats up a good deal of the country’s diplomatic relations efforts – through the lobbying for the Keystone XL pipeline, for example…
As for the provinces, Alberta and Saskatchewan in particular should follow Ontario, Quebec and British Columbia in getting into the renewable-energy game, Ms. Smith said. Still, the necessity for this shift is beginning to gain some traction, she said, noting that Alberta Finance Minister Robin Campbell said last week that the province has to “get off the oil train…”
The Clean Energy Canada report notes that much of the investment for Canada’s clean-tech expansion currently comes outside the country. Of the five largest investors since 2009, just one, Manulife Financial Corp., is Canadian. Two Japanese companies are in that top-five list, along with two German banking groups.
“The fact that foreign investors are coming to Canada to invest in our clean energy, tells us that we have a fantastic resource,” Ms. Smith said. “We need Bay Street to wake up and recognize this is where the puck is going.”
Gotta love Canadian sports metaphors. In a nation where hockey rules, the puck stops here is a legit phrase.
Germany’s biggest utility firm, E.ON, has announced plans to split in two and spin off most of its power generation, energy trading and upstream businesses, responding to a crisis that has crippled the European energy sector.
E.ON said it wanted to focus on its renewable activities, regulated distribution networks and tailor-made energy efficiency services, citing “dramatically altered global energy markets, technical innovation, and more diverse customer expectations”…
Germany’s power sector has been in turmoil, hit by a prolonged period of weak demand, low wholesale prices and a surge in renewable energy sources which continue to replace gas-fired and coal-fired power plants…
The split will not be accompanied by job cuts, E.ON said, adding that about 40,000 employees would remain with the parent group, while the remaining 20,000 would join the new company…
By choosing to spin off power generation, E.ON rids itself of a sector that has been hard hit by Germany’s decision to boost renewables at the expense of gas, coal and nuclear power plants.
Anyone think that creeps like the Koch Brothers, stick-in-the-mud power utilities like our own New Mexico turd, PNM – would ever demonstrate the smarts, environmental understanding of an advanced firm like E.ON?
I applaud their decision and truly hope this will serve as guidance for those few of our own electric utilities capable of progressive change.