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Friday, April 21, 2017

Taxpayers get all money back after Lloyds bank bailout in financial crisis

The Treasury has recovered all of the money it ploughed into Lloyds Banking Group when it rescued the lender during the financial crisis, it has been announced.

Philip Hammond said the Government had now received £20.4bn since it began selling its stake back into the private sector in 2013, having held as much as 43%.

Taxpayers now own less than 2% of the group, which includes Lloyds Bank as well as Halifax Bank of Scotland, and the Government hopes to complete the disposal of this in coming months.

Its success in recouping the investment comes in stark contrast to the fate of the beleaguered Royal Bank of Scotland which remains 72% state-owned and, the Chancellor indicated recently, could now be sold off at a loss to the taxpayer.

The Treasury spent £20.3bn bailing out Lloyds and it has now recovered just over that amount by gradually selling off the holding as well as through dividends.

Mr Hammond said: "Recovering all of the money taxpayers injected into Lloyds marks a significant milestone in our plan to build an economy that works for everyone.

"While it was right to step in with support during the financial crisis, the Government should not be in the business of owning banks in the long term.

"The right place for them is in the private sector and I'm pleased to be able to say we are approaching the point at which we will sell our final shares in Lloyds Bank."

Lloyds chief executive Antonio Horta-Osorio said: "It is a moment of huge pride for all of us at Lloyds.

"Colleagues have worked incredibly hard over the last six years to play their part in this journey."

Laith Khalaf, senior analyst at stockbrokers Hargreaves Lansdown, said: "For the Treasury, the elephant in the room is of course RBS, which required twice as much financial support from the taxpayer as Lloyds.

"The RBS share price needs to double from its current level before the taxpayer breaks even on the bailout, and that isn't happening anytime soon."

Borussia Dortmund team bus attack suspect 'had financial motive'

Police have arrested a man on suspicion of carrying out the bomb attack on the Borussia Dortmund team bus - and believe his motive may have been financial.

Rather than any link to Islamist terrorism, they say the suspect, identified only as Sergej W, had speculated on Dortmund's share value falling after the bombing.

Spain international Marc Bartra and a police officer were injured in last Tuesday's triple blasts as the players and coaching staff left a hotel ahead of a Champions League match in Germany.

Prosecutors say the suspect, who was held on Friday, bought a large number of so-called "put" options which would have entitled him to sell 15,000 shares at a pre-determined price - resulting in a substantial profit if their value fell.

"A significant share price drop could have been expected if a player had been seriously injured or even killed as a result of the attack," they said.

The 28-year-old, who has dual German and Russian citizenship, faces charges of attempted murder, causing an explosion and inflicting serious bodily harm.

Three identical letters were found at the scene, linking the attack to German involvement in the fight against Islamic State in Syria. But there were doubts over their authenticity.

A fourth letter posted online also claiming responsibility, which could have come from anti-fascists, was discounted by police too.

The explosives used in the 11 April attack contained metal pins - one of which buried itself into a headrest on the coach - and had a range of 100m.

Police believe the explosives which shattered the windows of the team bus may have been hidden in a hedge near the car park of the L'Arrivee Hotel and Spa on the outskirts of Dortmund.

The blasts happened about six miles from the Westfalenstadion, where the team had been due to face French side Monaco in a quarter-final first-leg tie.

The match was postponed for 24 hours and travelling fans were offered a place to stay for the night by Borussia Dortmund supporters on social media.

Rodrigo Duterte: The World's 100 most Influential People

"Hitler massacred 3 million Jews. Now there are 3 million drug addicts. I'd be happy to slaughter them," Rodrigo Duterte, the Philippines' President, has said. His approach is as ill considered as his grasp of history (more than half of Hitler's 11 million victims were Jewish). 

"Since Duterte's inauguration last year, some 7,000 people have been killed. His ironfisted strategy alarms governments, human-rights organizations and faith-based groups while winning high approval ratings at home.

When I was President of Colombia, I was also seduced into taking a tough stance on drugs. But after spending billions, I discovered that the war was unwinnable and the human costs were devastating. The cure was infinitely worse than the disease.

There are solutions that work. Duterte could start by treating drugs as a health, human rights and development issue. He could prosecute the most violent criminals and provide treatment for users rather than condemn them to prison, or worse. There will always be drugs in the Philippines, whether the President likes it or not. The tragedy is that many more people are likely going to die as he learns this lesson.

Gaviria was President of Colombia from 1990 to 1994

Paris attack could influence undecided voters in presidential election

Even before French President Francois Hollande said he was convinced the Paris attack was "terrorist related" it had impacted on the effort to find his replacement.

Several candidates announced they were ending their campaigns early as a mark of respect, with the centre right's Francois Fillon calling on others to do the same.

But Mr Fillon, who has taken a hard-line stance on security will be keenly aware the events of Thursday night could play to his advantage.

:: Terror probe as officer shot dead in Paris attack

National safety and the threat from Islamic extremism have been potent issues during the presidential contest and voters may look again to the candidate they think is most likely to protect them.

That Islamic State claimed it was behind the attack will likely feed into the narrative of the far right's Marine Le Pen who has promised to strengthen France's borders and crack down on illegal immigration.

French people still haunted by a series of terrorist atrocities carried out by attackers with foreign links or allegiance to IS terrorism.

:: Large number of undecided voters could swing election

Just days ago police in Marseille found guns and bomb-making equipment after arresting two men suspected of planning an "imminent and violent attack" ahead of the first round of the presidential election.

The men were said to be French nationals who had been radicalised and were believed to have links to IS.

Such developments will likely loom large in the minds of the one third of French voters who still haven't decided who to vote for come Sunday.

Those candidates who do appear on Friday - the last day campaigning is allowed - will not be able to avoid the issues of security and terrorism.

They will have to strike a balance in terms of responding but not being seen to exploit terrible events for their political advantage.

Russia's Supreme Court bans Jehovah's Witnesses

Russia's Supreme Court announced Thursday that it has banned the Jehovah's Witnesses from operating in the country, ordering the religious group to close 395 of its local chapters.

The announcement came after the court accepted a request from the justice ministry that the religious organization be considered an extremist group.

The court also ordered the seizure of the group’s property.

Justice Ministry attorney Svetlana Borisova was quoted by the Interfax news agency in court Thursday as saying that the Jehovah's Witnesses "pose a threat to the rights of the citizens, public order and public security."

The Jehovah's Witnesses claim more than 170,000 adherents in Russia. The group has come under increasing pressure over the past year, including a ban on distributing literature deemed to violate Russia's anti-extremism laws. The religious group, which preaches door-to-door, rejects military service and blood transfusions.

Russian prosecutors have long cast the group as an organization that destroys families and spreads hatred, which it denies, according to Reuters.

The group said it would appeal the decision and if it is upheld, the case would be shifted to the European Court of Human Rights, the TASS news agency reported.

“We are greatly disappointed by this development and deeply concerned about how this will affect our religious activity,” Yaroslav Sivulskiy, a spokesman for Jehovah’s Witnesses in Russia, said in a statement. “We will appeal this decision, and we hope that our legal rights and protections as a peaceful religious group will be fully restored as soon as possible.”

Once the Supreme Court ruling is appealed, it will only go into effect when the appellate court announces its decision.

MS-13 gang: The story behind one of the world's most brutal street gangs

A string of brutal murders in the US has thrown a national spotlight on MS-13, a street gang that was born in LA but has roots in El Salvador.

The latest was a mass murder on Monday on Long Island, where the bodies of four males, including three teenagers, were found mangled in the woods, according to police.

President Trump tweeted to call the gang "bad". Attorney General Jeff Sessions vowed to "devastate" it. Both blamed Obama-era immigration policy for its rise.

But what is MS-13 and is Obama really to blame?
A reputation for extreme violence

The gang began in the barrios of Los Angeles in LA during the 1980s, formed by immigrants who had fled El Salvador's long and brutal civil war. Other members came from Honduras, Guatemala and Mexico.

The MS stands for Mara Salvatrucha, said to be a combination of Mara, meaning gang, Salva, for Salvador, and trucha, which translates roughly into street smarts. The 13 represents the position of M in the alphabet.

MS-13 established a reputation for extreme violence and for killing with machetes. It took root in neighbourhoods dominated by Mexican gangs, and later expanded to other parts of the country.

According to the FBI, the gang has spread to 46 states.

In 2012, the US Treasury designated the gang a "transnational criminal organisation". It was the first street gang to receive the dubious honour, placing it alongside much larger international cartels like the Mexican Zetas, Japanese Yakuza and Italian Camorra.
Brutal initiations

MS-13 has been accused of recruiting poor and at-risk teenagers. Joining is said to require being "jumped in" - subjected to a vicious 13-second beating - and "getting wet" - carrying out a crime, often a murder, for the gang.

Leaving is potentially even more dangerous. Large chest tattoos brand members for life, and some factions are said to murder members who attempt to leave.

A 2008 FBI threat assessment put the size of MS-13 between 6,000 and 10,000 members in the US, making it one of the largest criminal enterprises in the country.

It is now larger outside the country, according to the agency. An anti-gang crackdown in the late 1990s saw hundreds of early members shipped back to Central American countries, where they established offshoots. Estimates put the number of members in Central American countries at at least 60,000.

The gang's annual revenue is about $31.2m (£23.4m) according to information from a large-scale Salvadorean police operation obtained by the El Faro newspaper - mainly from from drugs and extortion.
'Kill, rape, control'

Recent high-profile cases linked to the gang include the murder of two female high-school students who were attacked with a machete and baseball bat as they walked through their neighbourhood in New York last month - a revenge attack over a minor dispute, according to police.

Four alleged MS-13 members were charged with that crime. Another two alleged members were charged at the same time with the murder of a fellow gang member said to have violated gang protocol.

The same month, two alleged members of the gang in Houston, Texas were charged with kidnapping three teenage girls, holding them hostage and raping them before shooting one dead on the side of the road.

Miguel Alvarez-Flores, 22, and Diego Hernandez-Rivera, 18, laughed and waved at the cameras during their court appearance.

MS-13's motto is "kill, rape, control", according to one FBI gang specialistwho investigated the group.
Blaming Obama

Mr Trump and Mr Sessions have pointed the finger at former President Barack Obama over the spread of MS-13, alleging that his open-door immigration policies fuelled its growth.

But the gang formed and flourished in the US long before Mr Obama came to power. MS-13 was identified as a significant threat in the 1990s, and a special FBI taskforce was convened against the gang in 1994.

"The big surge was during Bush-Cheney when the drivers of illegal migration in Central America grew, when various crackdowns on crime filled prisons to bursting point, and when funding for rehabilitation programs declined," Fulton T Armstrong, a research fellow at the Center for Latin American and Latino Studies at American University, told fact-checking website Politifact
"I have seen no evidence that the Obama administration can be blamed in any way for the existence or activities of the gang in the US," said Ioan Grillo, author of a book on US gang crime.

The Obama administration also prioritised the deportation of gang criminals, including MS-13 members, in an aggressive deportation program.

Politifact rated Mr Trump's claim as false.

No election for Farage: Is he too big for UKIP?

Four years ago, when UKIP failed to win the Eastleigh by-election by just 1,771 votes, I suggested to Nigel Farage that he had “bottled it” by not standing.

With Diane James as its candidate, UKIP came a close second behind the Liberal Democrats and pushed David Cameron's Conservatives into third place.

"I have been accused of many, many sins and most of them are true," he replied with typical Farage bluster. "But I could never be accused of bottling anything in my life."

And he claimed, rather unconvincingly: "I wouldn't have done any better than Diane did." I didn't believe it then and I still think he could have won had he stood in Eastleigh in 2013.

Now, after announcing that he won't be a candidate in the 8 June General Election, he is claiming he could have won Clacton, now that former UKIP MP Douglas Carswell is not standing either.

"It would be a very easy win and for me, a personal vindication to get into the House of Commons after all these years of standing in elections," he wrote in The Daily Telegraph.

Claiming he would have more influence over Brexit as an MEP, he wrote: "If I compare the platform I have in Strasbourg to being a backbench MP, there is frankly no comparison.

"The Brexit negotiations will take place in Brussels and the European Parliament will not only have a large impact on them, but ultimately will have the right of veto any deal at the end of the two-year process.

"I believe I can use my profile in European politics to put real pressure on MEPs to vote for a sensible deal with the UK."

Many people will be sceptical about his latest claims, too. First the claim that he would have won Clacton easily and second that he will have more influence as an MEP.

Mr Farage has spent 18 years rubbishing the European Parliament in which he sits, and - as he says - spending 23 years trying to get elected to the House of Commons.

He has tried - and failed - to get elected at Westminster seven times, beginning with the previous Eastleigh by-election in 1994 and then in Salisbury in the 1997 general election, Bexhill and Battle in 2001 and South Thanet in 2005.

He stood in the Bromley and Chislehurst by-election in 2006, took on Commons Speaker John Bercow in Buckingham in 2010 and then fought a high-profile and controversial battle against the Conservatives in South Thanet once again in 2015.

Yet he has been a member of the European Parliament he so despises - or did until now, it appears - since 1999, representing South East England and being re-elected three times, in 2004, 2009 and 2014.

So why has he ruled out standing to become an MP for an eighth time. Has he bottled it again? Is he "frit", to use Margaret Thatcher's famous old Lincolnshire word?

He had two options: Clacton, as he has acknowledged, or Thanet South again, the seat in his native Kent which he lost to a former UKIP leader-turned-Tory right-winger, Craig Mackinlay, by 2,812 votes.

That contest - along with those in several other key marginals - is now mired in a Conservative Party election expenses scandal, with the Crown Prosecution Service threatening possible charges next month during the election campaign.

So why has he appeared to bottle it again? Chances are he weighed up his prospects, looked at the opinion polls - which show UKIP down to 7% - and concluded that he could end up losing yet again.

Then there's the bigger picture. UKIP has always been accused of being a one-man band and since he stepped down as leader the party has appeared to be in a perpetual leadership crisis.

With his friendship with Donald Trump, a new career as a "shock jock" radio presenter and the chance to earn thousands on the after-dinner speaking circuit, he is now a full-blown international celebrity and bigger than his party.

Besides his nightly LBC show, he is a regular contributor to Fox News in the US and he is in demand for speaking engagements in the States as well as the UK. And, to be fair, he's a brilliantly witty after-dinner speaker.

UKIP, meanwhile is fielding far fewer candidates in the local elections on May 4 than four years ago and is predicted to suffer 80 to 90 losses, more than half of the seats it won in the same elections in 2013.

Does all this mean UKIP is dead. Not necessarily. But UKIP's fortunes are certainly on the way down as the Tories claim to be the Brexit party.

Nigel Farage's career, however, is on the way up. He's got bottle, certainly, just not for the House of Commons any more.