February 2015 archive

The 94 year old company known to all as RadioShack, where many found the cables to hook up their Nintendo to the TV, has filed for bankruptcy. In his farewell to the company, HBO’s “This Week Tonight” host John Oliver wondered what RadioShack would say to its customers, so John and his crew created a farewell massage for them. The segment may not be safe for viewing in the work place or around young children due to strong language.

I have a couple articles for your perusal this morning.

First, an interesting take on the reasons behind what Saudi Arabia is currently doing regarding their oil:

Saudi Arabia Sees End Of Oil Age On The Horizon

In 2000, Sheikh Ahmed Zaki Yamani, former oil minister of Saudi Arabia, gave an interview in which he said:

“Thirty years from now there will be a huge amount of oil – and no buyers. Oil will be left in the ground. The Stone Age came to an end, not because we had a lack of stones, and the oil age will come to an end not because we have a lack of oil.”

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This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

February 10 is the 41st day of the year in the Gregorian calendar. There are 324 days remaining until the end of the year (325 in leap years).

On this day in 1937, Roberta Flack is born in Black Mountain, North Carolina, and was raised in Arlington, Virginia.

During her early teens, Flack so excelled at classical piano that Howard University awarded her a full music scholarship. She entered Howard University at the age of 15, making her one of the youngest students ever to enroll there. She eventually changed her major from piano to voice, and became an assistant conductor of the university choir. Her direction of a production of Aida received a standing ovation from the Howard University faculty. Flack is a member of Delta Sigma Theta sorority and was made an honorary member of Tau Beta Sigma by the Eta Delta Chapter at Howard University for her outstanding work in promoting music education.

Flack became the first African-American student teacher at an all-Caucasian school near Chevy Chase, Maryland. She graduated from Howard University at 19 and began graduate studies in music, but the sudden death of her father forced her to take a job teaching music and English for $2800 a year in Farmville, North Carolina.

Flack then taught school for some years in Washington, DC at Browne Junior High and Rabaut Junior High. She also taught private piano lessons out of her home on Euclid St. NW. During this period, her music career began to take shape on evenings and weekends in Washington, D.C. area night spots. At the Tivoli Club, she accompanied opera singers at the piano. During intermissions, she would sing blues, folk, and pop standards in a back room, accompanying herself on the piano. Later, she performed several nights a week at the 1520 Club, again providing her own piano accompaniment. Around this time, her voice teacher, Frederick “Wilkie” Wilkerson, told her that he saw a brighter future for her in pop music than in the classics. She modified her repertoire accordingly and her reputation spread. Subsequently, a Capitol Hill night club called Mr. Henry’s built a performance area especially for her.

When Flack did a benefit concert for the Inner City Ghetto Children’s Library Fund, Les McCann happened to be in the audience. He later said on the liner notes of what would be her first album “First Take” noted below, “Her voice touched, tapped, trapped, and kicked every emotion I’ve ever known. I laughed, cried, and screamed for more…she alone had the voice.” Very quickly, he arranged an audition for her with Atlantic Records, during which she played 42 songs in 3 hours for producer Joel Dorn. In November 1968, she recorded 39 song demos in less than 10 hours. Three months later, Atlantic reportedly recorded Roberta’s debut album, First Take, in a mere 10 hours. Flack later spoke of those studio sessions as a “very naive and beautiful approach…I was comfortable with the music because I had worked on all these songs for all the years I had worked at Mr. Henry’s.”

Flack’s version of “Will You Still Love Me Tomorrow” hit number seventy-six on the Billboard Hot 100 in 1972.

Flack’s Atlantic recordings did not sell particularly well, until Clint Eastwood chose a song from First Take, “The First Time Ever I Saw Your Face”, for the sound track of his directorial debut Play Misty for Me; it became the biggest hit of the year for 1972 – spending six consecutive weeks at #1 and earning Flack a million-selling gold disc. The First Take album also went to #1 and eventually sold 1.9 million copies in the United States. Eastwood, who paid $2,000 for the use of the song in the film, has remained an admirer and friend of Flack’s ever since. It was awarded the Grammy Award for Record Of The Year in 1973. In 1983, she recorded the end music to the Dirty Harry film Sudden Impact at Eastwood’s request.

Flack soon began recording regularly with Donny Hathaway, scoring hits such as the Grammy-winning “Where Is the Love” (1972) and later “The Closer I Get to You” (1978) – both million-selling gold singles. On her own, Flack scored her second #1 hit, “Killing Me Softly with His Song” written for Lori Lieberman in 1973. It was awarded both Record Of The Year and Best Pop Vocal Performance, Female at the 1974 Grammy Awards. Its parent album was Flack’s biggest-selling disc, eventually earning Double Platinum certification.

In 1999, a star with Flack’s name was placed on Hollywood’s Walk of Fame. That same year, she gave a concert tour in South Africa, to which the final performance was attended by President Nelson Mandela.

In 2010, she appeared on the 52nd Annual Grammy Awards, singing a duet of “Where Is The Love” with Maxwell.

Flack is also a spokesperson for the American Society for the Prevention of Cruelty to Animals; her appearance in commercials for the ASPCA featured The First Time Ever I Saw Your Face.

Cross posted from The Stars Hollow Gazette

It seems that since 2010, the US Department of Justice has known that one of the largest banks in Europe has been sheltering money for dictators and arms dealers, among others:

Banking Giant HSBC Sheltered Murky Cash Linked to Dictators and Arms Dealers

By Gerard Ryle, Will Fitzgibbon, Mar Cabra, Rigoberto Carvajal, Marina Walker Guevara, Martha M. Hamilton and Tom Stites, February 8, 2015, The International Consortium of Investigative Jouranlists

Team of journalists from 45 countries unearths secret bank accounts maintained for criminals, traffickers, tax dodgers, politicians and celebrities

Secret documents reveal that global banking giant HSBC profited from doing business with arms dealers who channeled mortar bombs to child soldiers in Africa, bag men for Third World dictators, traffickers in blood diamonds and other international outlaws.

The leaked files, based on the inner workings of HSBC’s Swiss private banking arm, relate to accounts holding more than $100 billion. They provide a rare glimpse inside the super-secret Swiss banking system – one the public has never seen before. [..]

These disclosures shine a light on the intersection of international crime and legitimate business, and they dramatically expand what’s known about potentially illegal or unethical behavior in recent years at HSBC, one of the world’s largest banks.

The leaked account records show some clients making trips to Geneva to withdraw large wads of cash, sometimes in used notes. The files also document huge sums of money controlled by dealers in diamonds who are known to have operated in war zones and sold gemstones to finance insurgencies that caused untold deaths.

These are some of the key findings the journalists found:

 

HSBC Private Bank (Suisse) continued to offer services to clients who had been unfavorably named by the United Nations, in court documents and in the media as connected to arms trafficking, blood diamonds and bribery.

   HSBC served those close to discredited regimes such as that of former Egyptian president Hosni Mubarak, former Tunisian president Ben Ali and current Syrian ruler Bashar al-Assad.

   Clients who held HSBC bank accounts in Switzerland include former and current politicians from Britain, Russia, Ukraine, Georgia, Kenya, Romania, India, Liechtenstein, Mexico, Lebanon, Tunisia, the Democratic Republic of the Congo, Zimbabwe, Rwanda, Paraguay, Djibouti, Senegal, Philippines and Algeria.

   The bank repeatedly reassured clients that it would not disclose details of accounts to national authorities, even if evidence suggested that the accounts were undeclared to tax authorities in the client’s home country. Bank employees also discussed with clients a range of measures that would ultimately allow clients to avoid paying taxes in their home countries. This included holding accounts in the name of offshore companies to avoid the European Savings Directive, a 2005 Europe-wide rule aimed at tackling tax evasion through the exchange of bank information.

If this seems all too familiar, that’s because it is. HSBC was fined $1.6 billion in June of 2013 after it reached an agreement with the US Department of Justice which resolved charges it enabled Latin American drug cartels to launder billions of dollars

HSBC was accused of failing to monitor more than $670 billion in wire transfers and more than $9.4 billion in purchases of U.S. currency from HSBC Mexico, allowing for money laundering, prosecutors said. The bank also violated U.S. economic sanctions against Iran, Libya, Sudan, Burma and Cuba, according to a criminal information filed in the case. [..]

Under a deferred prosecution agreement, the U.S. allows a target to avoid charges by meeting certain conditions — including the payment of fines or penalties — and by committing to specific reforms.

US government faces pressure after biggest leak in banking history

So just what was the Department of Justice and the IRS doing with this information about the bank and its clients? Apparently not much.

Confronted by the Guardian’s evidence, HSBC admitted wrongdoing by its Geneva-based subsidiary. “We acknowledge and are accountable for past compliance and control failures,” the bank said in a statement. The Swiss arm, the statement said, had not been fully integrated into HSBC after its purchase in 1999, allowing “significantly lower” standards of compliance and due diligence to persist. [..]

The 2012 settlement was overseen by Loretta Lynch, who was then US Attorney for the Eastern District of New York. Lynch is currently Barack Obama’s current nominee for attorney general.

At the time, the HSBC settlement was heavily criticised by both Republicans and Democrats for allowing the bank to escape criminal indictments and keep the charter which enables it to operate in the US. Lynch and other senior DoJ officials defended the deal, pointing out it committed HSBC to a five-year plan to stamp out money laundering and other illicit practices, an ongoing process that is being overseen by an independent, court-appointed monitor. [..]

The DoJ was under pressure to go beyond financial penalties – to bring criminal charges against HSBC or its bankers – in July 2012, after the Senate’s permanent subcommittee on investigations published its crushing 330-page report documenting how the bank’s lax anti-money laundering controls had been exploited by drug traffickers. [..]

The settlement proved controversial because it stopped short of criminally indicting the bank or its executives; lawmakers from both parties complained it revealed some Wall Street institutions were considered “too big to jail”. [..]

HSBC is now just over two years into its reform plan, and has been deemed to be complying with the terms of the settlement. However the court-appointed monitor, Michael Cherkasky, who oversees a team of banking investigators who review HSBC’s changes, has expressed some concern over the pace of reform. Cherkasky’s most recent assessment of HSBC’s ongoing efforts to clean up its act has once again concluded it could do better, according a recent report in the Wall Street Journal which cited people familiar with its findings.

CBS’s “60 Minutes” aired The Swiss Leaks a report by Bill Whitaker that examined “HSBC’s business dealings with a collection of international outlaws.”

The sickening part of this is the US Justice Department was well aware of this when they settled the HSBC’s drug laundering case in 2013. Also. HSBC is one of the institutions that is refusing to handle the money of legitimate marijuana businesses.

Nice going, Eric.

I have 3 things for your perusal this morning.

First, on the big oil worker strike going on right now:

First Nationwide Oil Worker Strike In Decades Grows Even Bigger

In January there were at least four major mishaps at a U.S. pipelines that resulted in costly explosions or spills. In 2013, Texas led the country in oil and gas sector fatalities with 106. Overall, oil and gas workers are six times more likely to die on the job than average Americans. With the recent growth of the industry due to the proliferation of new drilling techniques such as fracking, safety measures can suffer. In North Dakota, which has been at the forefront of the oil boom, the fatality rate for industry workers was three times the national average in 2013.

On Friday, the local Toledo union posted on its Facebook page that the “strike is NOT about money, this is about addressing safety issues that have been ignored for way too long … 138 workers were killed on the job while extracting, producing, or supporting oil and gas in 2012 … the number was more than double that of 2009.”

Jump!

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

February 9 is the 40th day of the year in the Gregorian calendar. There are 325 days remaining until the end of the year (326 in leap years).

On this day in 1950, Joseph Raymond McCarthy, a relatively obscure Republican senator from Wisconsin, accuses State Department of being infiltrated by communists. McCarthy announces during a speech in Wheeling, West Virginia, that he has in his hand a list of 205 communists who have infiltrated the U.S. State Department. The unsubstantiated declaration, which was little more than a publicity stunt, suddenly thrust Senator McCarthy into the national spotlight.

Asked to reveal the names on the list, the reckless and opportunistic senator named officials he determined guilty by association, such as Owen Lattimore, an expert on Chinese culture and affairs who had advised the State Department. McCarthy described Lattimore as the “top Russian spy” in America.

These and other equally shocking accusations prompted the Senate to form a special committee, headed by Senator Millard Tydings of Maryland, to investigate the matter. The committee found little to substantiate McCarthy’s charges, but McCarthy nevertheless touched a nerve in the American public, and during the next two years he made increasingly sensational charges, even attacking President Harry S. Truman’s respected former secretary of state, George C. Marshall.

Wheeling speech

McCarthy experienced a meteoric rise in national profile on February 9, 1950, when he gave a Lincoln Day speech to the Republican Women’s Club of Wheeling, West Virginia. His words in the speech are a matter of some debate, as no audio recording was saved. However, it is generally agreed that he produced a piece of paper that he claimed contained a list of known Communists working for the State Department. McCarthy is usually quoted to have said: “The State Department is infested with communists. I have here in my hand a list of 205-a list of names that were made known to the Secretary of State as being members of the Communist Party and who nevertheless are still working and shaping policy in the State Department.”

There is some dispute about whether or not McCarthy actually gave the number of people on the list as being “205” or “57”. In a later telegram to President Truman, and when entering the speech into the Congressional Record, he used the number 57. The origin of the number 205 can be traced: In later debates on the Senate floor, McCarthy referred to a 1946 letter that then-Secretary of State James Byrnes sent to Congressman Adolph J. Sabath. In that letter, Byrnes said State Department security investigations had resulted in “recommendation against permanent employment” for 284 persons, and that 79 of these had been removed from their jobs; this left 205 still on the State Department’s payroll. In fact, by the time of McCarthy’s speech only about 65 of the employees mentioned in the Byrnes letter were still with the State Department, and all of these had undergone further security checks.

At the time of McCarthy’s speech, communism was a growing concern in the United States. This concern was exacerbated by the actions of the Soviet Union in Eastern Europe, the fall of China to the communists, the Soviets’ development of the atomic bomb the year before, and by the contemporary controversy surrounding Alger Hiss and the confession of Soviet spy Klaus Fuchs. With this background and due to the sensational nature of McCarthy’s charge against the State Department, the Wheeling speech soon attracted a flood of press interest in McCarthy.