September 28, 2011 nº 1,095 - Vol. 9


"A man who has to be convinced to act before he acts is not a man of action. You must act as you breathe."

George Clemenceau

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Read Migalhas LatinoAmérica in Spanish every Tuesday and Thursday. Visit the website at www.migalhas.com/latinoamerica

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L'Shana Tova 5772
Rosh Hashana begins tonight at sundown.
Migalhas International wishes a Happy New Year to its Jewish readers.

  • Top News

Greece bailout money decision looms

Concern that a potential default in Greece could damage Europe's core countries and plunge the global economy into recession. Greek bonds have tumbled and credit insurance has soared, putting the chance of default at more than 90%. European Commission, ECB - European Central Bank and IMF - International Monetary Fund officials are expected in Athens later to review Greece's progress in cutting its debt levels. They hold the key to releasing further bailout money the country badly needs.The review comes amid reports of a split among eurozone members about further support for Greece. European leaders have supposedly grasped the urgency of the debt crisis, but there are plenty of devilish details to sort out in any rescue plan. A number of the bloc's 17 members want private investors to take a bigger hit in the proposed restructuring of Greece's debts. Eurozone members are in the process of ratifying proposals put forward in July, one of which would see private lenders writing off about 20% of their loans to Greece. The proposals also included expanding the powers of the eurozone bailout fund. Germany will vote on the plan on Thursday.

Thinking about sovereign bankruptcy

The notion that Greece, and maybe some other sovereign debtors, may need to impose haircuts on their creditors will inevitably bring to the surface the old debate about whether some sort of bankruptcy mechanism for nations. The casual reader will be surprised to learn there is no such mechanism, given the media's penchant for referring to a looming Greek "bankruptcy," or even the need for Greece to "declare" bankruptcy. (It's worth noting that bankruptcy does not mean insolvency, at least in modern usage. Indeed, outside of the United States, bankruptcy usually refers only to personal bankruptcy.) The idea of a bankruptcy process for sovereign entities does need to be asked if worrying about a bankruptcy process is not simply a waste of time. Much of what can be achieved through a bankruptcy process can also be achieved in the sovereign context by a bailout that comes with conditions attached. And much of the rest – like the “automatic stay” – is simply irrelevant, because of the distinct nature of sovereign entities. And while the European Union might like the idea of tying itself to the mast, and thus pre-announcing a policy for a future debt crisis, in the sovereign context each case is new. That is, the rule the sovereign announced last time for this kind of situation can always be changed if the sovereign thinks it’s the right thing to do this time around.

Papandreou wins vote on property tax

Greek PM George Papandreou won parliamentary backing for a property tax to meet deficit-reduction targets required to avoid default. Greeks face economic collapse if they don't plug a budget gap that is exceeding the target set in a bailout, putting an 8bn-euro ($11bn) aid payment due next month at risk. The property levy, to be collected via electricity bills, will provide an annual yield of 1.1% of GDP. It will generate as much as 1.8bn euros. Implementation of the measures is the biggest challenge for the government as the trade unions and parts of the civil service will mount significant resistance, raising the risk of inertia and inaction.

Obama administration clears path for Supreme Court to rule on health care mandate

The Obama administration on Monday declined to seek en banc review by the full US Court of Appeals for the Eleventh Circuit of its August decision striking down the individual mandate provision of the health care reform law, clearing the path for an appeal to the US Supreme Court. The decision could mean that the Supreme Court will hear the case during its 2011 term and that a ruling could come as early as June. The court is expected to agree to hear the case because there is a circuit split on the issue. The US Court of Appeals for the Sixth Circuit upheld the law in June, and that ruling was appealed to the Supreme Court by the TMLC - Thomas More Law Center. Jurist Guest Columnist Steven Schwinn of the John Marshall Law School in Chicago recently argued that the Eleventh Circuit ignored the text, history and jurisprudence of the Constitution in its recent health care ruling, which will likely not be adopted by the Supreme Court given recent rulings on congressional Commerce Clause authority.

Rating agencies win dismissal of Ohio AG lawsuit

The three major credit-rating agencies won the dismissal of a lawsuit alleging that five Ohio pension funds lost more than $457m on risky mortgage debt by relying on flawed ratings that made the debt appear safe. Monday's decision by U.S. District Judge James Graham in Columbus, Ohio, is a victory for Standard & Poor's, Moody's Investors Service and Fitch Ratings. It follows other court rulings in recent years that have shielded the agencies from liability for their ratings, which they have argued are constitutionally protected opinions.

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  • Crumbs

1 - Brazil, Japan win International Emmys for news - click here.

2 - Brazil: Police accused in a killing - click here.

3 - Amanda Knox mocked as a diabolical, she-devil by lawyer for accused barman - click here.

4 - Catalonia says adios to bullfighting - click here.

5 - Michael Jackson's doctor Conrad Murray on trial - click here.

6 - Dominique Strauss-Kahn claims immunity in US civil case - click here.

7 - Saudi Arabia: a trial for woman who drove - click here.

8 - How state lawmakers pump up pensions in ways you can't - click here.

9 - Protectionism in Brazil : A self-made siege - click here.

10 - Accounting change cuts Groupon's revenue - click here.

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  • Historia Verdadera

Negocios

El grupo constructor español ACS -ligado a Florentino Pérez- acordó la venta de las autopistas urbanas concesionadas que posee en Santiago, Chile, Vespucio Norte y Túnel San Cristóbal, al fondo canadiense Brookfield, en una operación que involucró unos 216 mlls. de euro. Así lo informó el consejero-secretario general de ACS, José Luis del Valle, a la Comisión Nacional del Mercado de Valores en España.

Créditos

HSBC acordó vender a Banco Itaú su banca premium de personas. Esta división de negocios fue lanzada del banco de capitales ingleses fue lanzada en Chile el año pasado y contempla más de US$ 20 mlls. en créditos. La operación aún espera por la aprobación de la Superintendencia de Bancos e Instituciones Financieras. (Presione aquí)

Arbitrajes

El gobierno de Venezuela dijo el martes que no aceptará el "castigo" de las cortes internacionales y pagará un precio justo por los millonarios arbitrajes que enfrenta tras la nacionalización de una veintena de proyectos petroleros. Además de cuatro multimillonarios proyectos de crudo extrapesado en la rica Faja del Orinoco entre el 2006 y el 2007 que están en arbitrajes. (Presione aquí)

  • Brief News

Age-old legal principle declines

For centuries, a bedrock principle of criminal law has held that people must know they are doing something wrong before they can be found guilty. The concept is known as mens rea, Latin for a "guilty mind." This legal protection is now being eroded as the U.S. federal criminal code dramatically swells. In recent decades, Congress has repeatedly crafted laws that weaken or disregard the notion of criminal intent. Today not only are there thousands more criminal laws than before, but it is easier to fall afoul of them. As a result, what once might have been considered simply a mistake is now sometimes punishable by jail time.

India considers opening its doors to U.K. and U.S. law firms

For law firms with global ambitions, India has long held promise as a potentially growing and lucrative market for legal services. Many firms have developed robust India practices, representing Western companies doing business in the country or Indian companies in their business dealings abroad. But one sizable roadblock stands in the way of U.S. and U.K. firms: Indian law restricts foreign firms from opening offices in the country. Indian attorneys have even sued U.S. and U.K. firms in the past, contending that the firms have violated Indian trade regulations by practicing law in India. There are signs, however, that India is considering opening its doors at least partially to foreign firms.

Mubarak trial put on hold amid claims of judicial bias

The trial of former Egyptian president Hosni Mubarak was suspended Monday until next month amid bias claims. Lawyers for the families of the anti-Mubarak protesters who were killed argued to the Cairo Appeals Court that Judge Ahmed Refaat was overseeing the case in an arbitrary manner. Refaat suspended the trial until October 30, but if a new judge is put on the trial, it would start over. Mubarak is on trial for murder, attempted killing of protesters and other charges related to general abuse of power stemming from his response to pro-democracy demonstrations in Egypt earlier this year. Mubarak's sons, Gamal and Alaa, are also on trial for corruption charges.

The hard economics of High Holy Days

As synagogues head into High Holy Days, they're finding that the economy is fundamentally affecting their finances. Some rabbis are giving away tickets for people who can't afford them, and others face deeper financial problems not seen since the Depression.

Tablets: ultimate buying machines

Retailers have found an interesting characteristic of consumers who browse their websites using tablets: They're much more likely to pull the trigger on purchases than other online shoppers.

US trade body to probe HTC's Apple complaint

A US trade watchdog will investigate a claim by Taiwanese phone firm HTC that its rival Apple has infringed its patents. HTC filed the complaint with the USITC - US International Trade Commission in August. It is one of three that HTC has filed against Apple. Apple has also accused HTC of copying its technology, and other global companies are also involved in what is being called a global patent war. Korea's Samsung is currently fighting Apple in a number of European courts, as well as Australia.

Deloitte Touche sued for $7.6bn in mortgage fraud case

Giant accounting and consulting firm Deloitte Touche Tohmatsu has been accused of failing to detect fraud during audits of a mortgage firm which failed during the US housing crash. A trust overseeing now-defunct TBW - Taylor, Bean & Whitaker, and one of the company's subsidiaries, have filed complaints in a Florida court. They are claiming a combined $7.6bn in losses.

Buffett's Berkshire Hathaway to launch share buyback

Berkshire Hathaway, the firm owned by Warren Buffett, has said it is to launch its first share buyback program. The company said it may purchase shares in the open market or through privately negotiated transactions. Berkshire said it would pay a maximum of a 10% premium on the current book value of the shares. The move comes after repeated complaints from investors that the company's stock was undervalued.

For Bank of America, a $50bn claim of havoc looms

A lawsuit by Bank of America shareholders is proceeding that claims the bank and its executives failed to disclose a $15.3bn loss at Merrill Lynch before its acquisition.

Law firm firing was 'vindictive,' says ex-associate

A New York law firm was "extraordinarily vindictive" for cutting loose a first-year associate who sent an email boasting of his "superior legal mind," according to a brief the former associate filed in his $77m lawsuit against the firm, Kasowitz Benson Torres & Friedman. The description "fits perfectly the conduct of the firm" toward "an enthusiastic and bright-eyed first year perhaps overly excited to get started in the practice of the law," wrote Gregory Berry in a brief filed in state Supreme Court in Manhattan opposing the firm's motion to dismiss his suit.

Regulators delay position limits, again

The Commodity Futures Trading Commission again delayed completing its rules to rein in speculative trading through position limits.

Europe readies plan for tax on financial transactions

The European measure will probably include taxes on the purchase of stocks and bonds; derivatives are likely to be taxed at a lower rate.

Female driver sentenced to lashing

Clearly, the Saudi Arabian ban on women drivers is still very much in force. Less than 48 hours after Saudi King Abdullah announced that women would be able to vote in local elections, a court in Jeddah sentenced a woman to 10 lashes for allegedly defying the Kingdom's ban on female drivers. "Belatedly allowing women to vote in council elections is all well and good, but if they are still going to face being flogged for trying to exercise their right to freedom of movement then the King's much-trumpeted 'reforms' actually amount to very little," Amnesty International said.

Census: 131,729 gay couples report they're married

The US Census Bureau released an estimate of the number of same-sex married couples living in the United States: More than 130,000 same-sex households recorded themselves as married. Another 500,000 same-sex households identified themselves as unmarried. Some of those 131,000 might not be legally married, however. About 70% of them might be legally married, but some of them are in civil unions and domestic partnerships, and some of them just view their relationship as spouses even though they are not legally married. The new same-sex data also come as battlegrounds lie ahead over gay rights.

Federal court hears challenge to drug screening welfare recipients

A judge for the US District Court for the Middle District of Florida on Monday began reviewing the lawsuit challenging a Florida state law requiring drug testing before welfare applicants can receive benefits. Judge Mary Scriven heard arguments Monday on both the constitutionality of the drug testing law and whether plaintiff, Luis Lebron, could represent a class. The judge granted the Florida Department of Children and Families a two-week extension to challenge a motion on whether Lebron's lawsuit can represent all Florida welfare applicants. The lawsuit was filed earlier this month on behalf of a class led by Lebron, a 35-year-old Orlando resident, Navy veteran and full time University of Central Florida student who applied for temporary cash assistance to help support his four-year-old son. The American Civil Liberties Union of Florida (ACLUFL) filed the federal class action lawsuit seeking to enjoin implementation of the drug testing law.

UAE wants to take Iran to Court

The United Arab Emirates wants to fight Iran in court over a trio of disputed Persian Gulf islands, but getting Iran into court has been difficult. The conflict is over three small islets at the entrance to the Gulf in the Strait of Hormuz: Abu Musa and the Greater and Lesser Tunbs islands. When UAE Foreign Minister Sheikh Abdullah Bin Zayed Al Nahyan addressed the United Nations General Assembly this week, he called on Iran to defend the "illegitimate occupation of these islands" in the International Court of Justice, or to agree to direct bilateral negotiations.

Reform of kidnap law could hit warring parents

The UK Law Commission, the Government's law reform adviser, has suggested removing a requirement that force or fraud must be used for an abduction to be kidnap. It would mean a warring parent who fails to return a child in a domestic dispute could face the prospect of being charged with kidnap, which carries a maximum life sentence. In contrast, child abduction carries a maximum term of seven years.

Serbia passes restitution law for WWII properties

Serbia's lawmakers on Monday approved a law on the return of property confiscated by the communist authorities after World War II, which is key for its efforts to eventually join the European Union.

Blagojevich sentencing delayed indefinitely

A judge in the US District Court for the Northern District of Illinois on Monday indefinitely delayed the sentencing of former Illinois governor Rod Blagojevich. Blagojevich was scheduled to be sentenced on October 6 after he was convicted in June on multiple counts of corruption. US District Court Judge James Zagel gave no reason for the delay, but the date of sentencing was set to coincide with the start of the trial of Springfield power broker William Cellini. The Cellini case is the last major trial stemming from investigations into the former governor's administration.

  • Daily Press Review

Philippines tackles typhoon devastation
Al Jazeera, Doha, Qatar

Egypt's 1st post-Mubarak election to begin Nov. 28
Asharq Al-Awsat, Pan-Arab daily, London, England

Yemen defence minister escapes assassination bid
Egyptian Gazette, English-language, Cairo, Egypt

Iran denies U.S. hikers' claims of brutality in prison
Haaretz, Liberal daily, Tel Aviv, Israel

Islamists call in chips as new Libya emerges
JPost, Conservative, Jerusalem, Israel

Greek bailout cash decision looms
BBC News, Centrist newscaster, London, England

Typhoon affects tens of thousands in Philippines
CNN International, London, England

US hijack fugitive held in Portugal
Daily Express, Conservative tabloid, London, England

'Screen men at 50 for bowel cancer' and save thousands of lives
Daily Mail, Conservative daily, London, England

Anne Robinson, 67, trends it like Victoria Beckham despite age gap
Daily Mail, Conservative daily, London, England

Back in the Day: jazz mourns Miles Davis
EuroNews, International news, Ecully Cedex, France

FRANCE24 EXCLUSIVE: Defecting Yemeni troops switch uniforms and sides
France 24, Issy-les-Moulineaux, France

Five soldiers wounded in roadside bomb attack in SE Turkey
Hurriyet Daily News, (Liberal, English-language), Istanbul, Turkey

Seven killed in Delhi following building collapse
Independent The, London, England

Travelers to receive duty-free items boost
Moscow News The, Independent, Moscow, Russia

George Clooney's political thriller The Ides of March premieres in US
Telegraph The, Celebrity news, London, England

Kittiratt: Policies will boost economy
Bangkok Post, Independent, Bangkok, Thailand

US Senate readies to push yuan bill
China Post, English-language daily, Taipei, Taiwan

'The Crucible' Brings Demons of Child Molestation Case Back to Life
Chosun Ilbo, Conservative daily, Seoul, South Korea

US invites India to work with it in more regions of world
Hindustan Times, New Delhi, India

Building collapse in Delhi: Boy rescued, 7 killed
India Times, Conservative daily, New Delhi, India

Aussie pronatal policy is not a model for Japan
Japan Times, Independent centrist, Tokyo, Japan

PM defends Afghan deployment
New Zealand Herald, Conservative daily, Auckland, New Zealand

Apple to introduce new iPhone on Oct. 4
People's Daily Online, English-language, Beijing, China

US city collects more than $5k in fines from sagging pants ban
Straits Times, Pro-government, Singapore

The panda factory
Sydney Morning Herald, Centrist daily, Sydney, Australia

iPhone vocre translation app helps travelers speak in tongues
Taiwan News, English-language daily, Taipei, Taiwan

China Vice-Premier Li: Global risks rising
The Economic Times, Business, Mumbai, India

Harper says world economic outlook 'not so positive'
Canadian Broadcasting Centre, Toronto, Ontario

CSIS questioned Canadian in Libya, rights group says
Globe and Mail The, Centrist daily, Toronto, Canada

FTSE Rockets On Hopes of New Eurozone Rescue Plan.
International Business Times, Business news organization, New York, U.S

200 Million Depend on Melting Glaciers for Water
IPS Latin America, International cooperative of journalists, Rome, Italy

Stocks gains on Europe, Accenture rises late
Reuters, Business News, New York, U.S

China authorities under fire after Shanghai subway
Reuters, World News, New York, U.S

Ontario leaders' debate turns nasty midway
Toronto Star, Toronto, Ontario

Ivory Coast truth body to begin
BBC News, Centrist newscaster, London, England

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