Manhattan’s district attorney believed to have questions about Goldman Sachs’s behaviour before and during financial crisis Manhattan’s top law enforcer is believed to have issued subpoenas to Goldman Sachs as he investigates the firm’s activity during the credit crisis. Manhattan district attorney Cyrus Vance Jr is pursuing claims made by an official senate investigation into Wall Street’s role in the housing market collapse. The report, published in April, singled out Goldman Sachs for particular criticism, accusing the bank of misleading buyers of mortgage-linked investments. The bank encouraged buyers to invest in mortgage-related securities even as it was betting heavily against the mortgage market, according to the report. Senator Carl Levin, a persistent critic of the bank, accused Goldman executives, including chief executive Lloyd Blankfein, of giving “misleading and inaccurate” evidence to the committee. Goldman said its executives’ testimony was “truthful and accurate”. The report was referred to the US department of justice and the financial watchdog the securities and exchange commission, which are also investigating. Vance, the son of president Jimmy Carter’s secretary of state, was appointed Manhattan’s district attorney in 2009. Earlier this year he said that his office had active investigations into Wall Street “across the board” and called for the his powers to be expanded in order to tackle large-scale white-collar crime. The Manhattan DA’s office has tackled many high-profile white-collar cases, from BCCI to Tyco. A subpoena is only a request for information and does not mean the company is a target of a criminal investigation. Goldman Sachs Banking Financial crisis Regulators Dominic Rushe guardian.co.uk
Continue reading …Mitt Romney makes his official bid for the 2012 Republican presidential nomination at Bittersweet Farm, New Hampshire 11.35am ET: In case you think Bittersweet Farm is a strange place to announce his bid for the nomination, the farm has a long tradition of hosting Republican events thanks to its owners, who are also Romney supporters. Seacoast Online reports more background: Bittersweet Farm has been the site of many Republican rallies and events over the years. The Scammans have hosted former President George W. Bush, former New Hampshire Governor John H Sununu and his son, former US Senator John E Sununu. The aide said Romney appreciates the farm’s “rich political history” as well as the traditions of the New Hampshire primary and the state’s role in picking a presidential nominee. The formal announcement will come during a noon cookout featuring hamburgers, hot dogs and chili made using the recipe of Romney’s wife, Ann. All proceeds from the sale of food will go toward the American Legion Post 35′s global war on terror memorial fund. And anyway, Michele Bachmann is going to make her announcement in the Iowa town of her birth: Waterloo. Talk about optics – although of course the British have good memories of Waterloo. 11.30am ET: The big question of course is: can Mitt Romney win the Republican nomination? And the answer isn’t clear. Although polls regularly show Romney as the leading candidate among Republicans, polls taken this far out from the start of the primary season – which doesn’t start until February 2012 with the Iowa caucuses – are worse than useless. Polls taken at this point in 2007 confidently predicted that Hillary Clinton would be battling Rudy Guiliani for the presidency in 2008. And in 2003 the polls unanimously decalred that Howard Dean would be the Democratic nominee. On Intrade, the financial-style predictions market , Romney is also the clear front-runner with a 29% rating – well ahead of his major rivals Tim Pawlenty (19%) and Jon Huntsman (16%). But below the top three sits Sarah Palin on a mere 6.5% – but the uncertainty over Palin’s plans is keeping that number low. Should Palin announce it would surely shoot up. Preamble: Can you feel the Romentum? After months of gearing up, today Mitt Romney officially throws his hat into the ring for the 2012 Republican presidential nomination, with an announcement at 12 noon (5pm BST) in the crucial first primary state of New Hampshire. We’ll be following the announcement here live – but there’s no doubt that Romney is intending to run, as he has made clear by his actions ever since the 2008 election. Romney’s announcement remarks will take place at Bittersweet Farm in Stratham , about an hours drive outside of Manchester, New Hampshire. Will it be a bittersweet moment for Romney and his supporters? If you want to watch the event live on your computer, Romney’s campaign website will be offering a video stream from 12 noon ET. Mitt Romney US elections 2012 Republicans New Hampshire US politics United States Richard Adams guardian.co.uk
Continue reading …VS Naipaul has claimed that ‘I read a piece of writing and within a paragraph or two I know whether it is by a woman or not.’ Find out if you do, too, with this test
Continue reading …OCR said students will not be unfairly disadvantaged by mistake, amid fears it could affect their chances of getting into university One of England’s biggest exam boards has been forced to apologise after pupils were set an impossible question in an AS-level maths paper. OCR promised to take the error into account when marking the exam, amid students’ concerns that the mistake could affect their university places. The question, which was worth eight marks and 11% of the paper, was impossible to solve due to a miscalculation of an equation. Students were presented with a diagram showing a network of tracks in a forest. The distances between points on the network were also set out. Students were then asked to find the shortest route to walk along every track, starting and ending at the same point. The given length was supposed to be equal to an equation set out in the paper. But OCR admitted that it failed to calculate the length properly – meaning the shortest route failed to match the mathematical equation. A total of 6,790 sixth-formers sat the paper on Thursday 26 May. Since then, many have been posting messages on social networking sites calling for a resit, and expressing fears that the mix-up may harm their university chances. One student wrote on thestudentroom.co.uk : “Can we not all or the majority of us write to OCR and demand a resit?” Another said: “I agree, there is no fair way to mark it and loads of us need certain grades for uni.” Grades from AS-levels are used by students when applying for university places. One poster suggested that students could attempt to bring legal action if they missed their grade, and therefore university places as a result of the error. “On a teaching website, a head of maths has proposed that a no win, no fee solicitor could bring a class action to represent anyone who fails to make their university offers because of this and ends up paying £9,000 per annum university fees instead of £3,000 per annum,” wrote the poster. In a statement, an OCR spokesman said the exam board “very much regretted” the mistake. “We would like to assure teachers, parents and students that we have several measures in place to ensure that candidates are not unfairly disadvantaged as a result of this unfortunate error. “Because we have been alerted to this so early, we are able to take this error into account when marking the paper. “We will also take it into account when setting the grade boundaries. We have sent a letter to all schools and colleges explaining in more detail what we shall do. “We do apologise again that this has happened. To help us understand how this occurred and to minimise the chance of such an error happening again, we will be undertaking a thorough review of our quality assurance procedures.” AS-levels Students Higher education Mathematics Schools guardian.co.uk
Continue reading …California police believe they’ve found another case of a family wiped out in a murder-suicide—the second such tragedy in 5 days. The discovery of a man’s body beneath a highway overpass near San Diego led investigators to the man’s home, where the corpses of his lover and her two…
Continue reading …Unions say Birmingham council has begun exporting IT posts and warns of thousands of job loses if other town halls follow suit Union leaders have attacked a Tory-led council over its involvement in the “export” of up to 100 jobs to India, amid warnings that the move could be “the tip of the iceberg” that could see thousands of taxpayer-funded jobs go overseas. Unite claimed Birmingham city council, a Conservative-Liberal Democrat run authority led by the Conservative Mike Whitby, is the first town hall in the country involved in plans to move jobs to India for work paid for by taxpayers. A redundancy notice for 70 IT posts has already been served. Officials said they feared more council jobs in Birmingham and other local authorities could also go abroad as private companies delivering public services prepare to go to “any length” to cut costs for profit. Another union cited jobs being “shipped out” as it launched a strike ballot of nearly 10,000 members at Birmingham city council over job cuts, workers’ pay and conditions. The union is balloting against plans known as the Birmingham contract, which it claims breaks away from nationally agreed terms and conditions, abolishes payments for weekend and out of hours working and weakens workers’ rights in grievances and disciplinaries. It said the ‘contract’ will have a disproportionate impact on low paid women workers. Unison said that, to add “insult to injury”, staff who face redundancy at the arms-length IT company are being told they must train up their replacements in India before they go. But the council said the new staff contracts were designed to make the authority “fit for the challenges facing the public sector” and contribute to the budgetary savings it has to make. Alan Rudge, the cabinet member for equalities and human resources, said: “There is a clear need to bring our organisation into line with other leading employers, and the new Birmingham contract will make the council more resilient to future pressures through the reduction in costs and the introduction of broad job groups.” Service Birmingham, a joint venture between the outsourcing firm Capita and the council, confirmed it has already transferred 17 “back office” IT support roles to India and has issued formal notice of redundancy plans for local workers ahead of the transfer of a further 38 roles in the summer. A further 45 jobs will be transferred to India later in the year if the first two phases of transfer go well, according to a spokesman. In a statement, Service Birmingham said: “It is important to emphasise this is a very small element of the work we do for the council, and we remain absolutely committed to our Birmingham workforce.” The Unite national officer, Peter Allenson, said: “It beggars belief that council workers will be forced to train workers from overseas to do their jobs so Capita and Birmingham council can lift and shift them abroad. “Unite is demanding that Birmingham city council halts its plans. We fear this could be just the tip of the iceberg and other councils could follow suit. Thousands of public sector jobs could go. Once these jobs go, they will not come back.” He added: “The blame lies firmly with private companies prepared to go to any length to cut costs for profit and this Tory-led council which is encouraging them to get away with it.” A council spokesman insisted the transfer of jobs to India “is a story about Service Birmingham” and referred all comments to its spokesman. The council has a one-third stake in the venture. Capita, through the Service Birmingham company, has the contract for the council’s IT and call centre services until 2021. It is also working on the authority’s business transformation programme, which has been running since 2005 and aims to save the council £1bn in costs by 2016. Despite the planned redundancies, Service Birmingham said it was committed to increasing local workforce numbers. “Offshore staff will only ever represent a fraction of Service Birmingham’s 1,100 workforce,” the statement said. “In addition, we will honour our jobs promise to employ an additional 520 people in the Birmingham area by 1 April 2011, 720 by 1 April 2013 and 800 by the end of 2016.” The council plans to cut £300m from the city budget by 2015 as well as shed 7,116 jobs, which Unison says represents 37% of the council workforce. The union claims that, once part-time jobs are factored in, the total job losses increase to 10,000, which will have a “devastating impact on council services”. Mark New, a regional organiser for the union, said: “Members are upset and angry and Unison is asking them to take a stand against these savage cuts. To add insult to injury, the council plans to outsource more jobs to India. “The massive job cuts, the pay freeze and privatisation, will leave the council struggling to provide decent services to people in Birmingham. “Birmingham council is cutting back too hard and too fast. The cuts will devastate whole communities and the local economy, as well as the lives of council workers and their families.” Local government Public sector cuts Public services policy Public finance Conservatives Liberal Democrats Hélène Mulholland guardian.co.uk
Continue reading …Drought fears in parts of UK as warm weather expected to continue into early summer, threatening diminished harvests Parts of the UK have enjoyed one of the warmest and driest springs for more than 100 years, according to the Met Office. But while the south and east of Britain experienced balmy temperatures, places further north and east remained wet. For the weekend, forecasters predicted sunshine and temperatures in the mid-20s celsius. Across the whole of England and Wales, it was the second driest spring since 1910 and the driest spring since 1990. Central England experienced an average temperature of 10.3C (50.5F), the highest since monthly records began in 1659. The temperature for the whole of Britain was 9.2C (48.6F), the highest since 1910, the Met Office said. The previous top figure was in 2007 when the average was 9.05C (48.3F). Overall, England and Wales had only 45% of the long-term average rainfall for March, April and May. But East Anglia had only 21% of the long-term average rainfall – giving the area its driest spring for 101 years. This comes on top of the warmest, driest March and April recorded in England and Wales in more than 50 years. Britain’s exceptionally dry and hot spring is set to continue well into June, providing little relief for farmers especially in southern England and East Anglia. Provisional rainfall figures from the Environment Agency for May suggest that while the north and the Midlands have had much-needed showers, East Anglia has only had 20% of average rainfall and central, south-east and south-west England between 41% and 55% of average. “River flows remain low, except in north England and north Wales. River flows in south-west England, the Midlands, south-east Wales, parts of East Anglia and Kent are particularly low”, said the agency in a statement. “Throughout most of June, rainfall amounts look likely to continue to be below average across the UK, especially in the south, where they will probably stay well below average”, said the Met Office. In May, the public sector research body, the Centre for Hydrology and Ecology , reported soils were some of the driest seen in England and Wales for at least 50 years. “The exceptional aridity of the early spring, following a relatively dry 2010, has resulted in agricultural and hydrological drought conditions affecting large parts of southern Britain,” it said in a statement. Farmers in East Anglia are expecting harvests to be 25% down on normal yields, but the dry, warm weather has benefited many fruit growers who have been able to harvest early. The British strawberry season started nearly two weeks earlier than usual. The early start to the season is also set to benefit British wine growers . Allison Cobb, a forecaster with MeteoGroup, the weather division of the Press Association, said: “It is going to be very pleasant across the UK over the next few days with lots of sunshine and temperatures in the mid-20s celsius which is warmer than average for the time of year. “On Saturday it starts to turn a bit cooler and cloudier in northern parts with some drizzle as a cold front swings southwards across the UK. “Southern areas will still be quite nice and dry and sunny with temperatures in the mid to low 20s celsius, although northern parts will see temperatures drop down to the teens.” Sunday is expected to be cooler in the south with temperatures dropping to the upper teens Celsius, and drizzle expected in Scotland and Ireland. Weather Met Office Drought Farming John Vidal guardian.co.uk
Continue reading …An Oakland man has been reunited with his stolen laptop thanks to an app which took pictures of the slack-jawed suspected thief and captured his email address. Joshua Kaufman started a blog— This Guy Has My MacBook —after police told him that they couldn’t follow up the case because of…
Continue reading …Prime minister secures more time in office to focus on the post-tsunami recovery operation in north-east Japan The Japanese prime minister, Naoto Kan, has comfortably survived a no-confidence motion after offering to resign as soon as plans for Japan’s recovery from the tsunami and nuclear crisis are in place. MPs in the 480-seat lower house of Japan’s parliament voted down the motion on Thursday afternoon by 293 votes to 152. By offering to quit, possibly in the autumn, Kan has bought himself a few more months in office. The move will enable him to oversee the operation to stabilise the nuclear plant – which is expected to take several months – and to secure emergency funding for the reconstruction of the country’s battered north-east coast. The fate of Thursday’s motion, submitted by the main opposition Liberal Democratic party (LDP) and other opposition parties, was sealed after Kan’s main rival in his own Democratic party of Japan (DPJ), Ichiro Ozawa, indicated he would abstain along with 50 of his supporters, having earlier threatened to side with the opposition. Although he survived the motion, Kan faces a difficult few months, during which he is expected to struggle to reach deals on emergency budgets in a deeply divided parliament, and to introduce a controversial tax rise. The no-confidence motion has exposed divisions inside his own party, with DPJ executives vowing to take action against rebel MPs who voted with the opposition. Kan, who has been in office for almost a year, managed to pre-empt his opponents earlier in the day when he pledged to resign once his disaster mission was complete, and suggested it was time the political elite made way for a new generation. “I would like the younger generation to take over various responsibilities once I have finished fulfilling certain roles as a I work on handling the disaster,” he told DPJ MPs. “The nuclear crisis is ongoing, and I will make my utmost efforts to end the crisis and move forward with post-quake reconstruction work.” His offer to resign convinced his predecessor, Yukio Hatoyama, who also leads a large DPJ faction, to withdraw his support for the no-confidence motion. Kyodo News reported that Ozawa, a longtime Kan nemesis and notorious power broker, would abstain. At one stage it had looked possible that opposition parties would come tantalisingly close to securing the votes of the 80 or so governing party MPs they needed to force Kan to resign or call a general election. Kan, Japan’s fifth prime minister since 2006, remained vague about when he would step down. Shizuka Kamei, the leader of a minor partner, said he should resign as soon as the nuclear crisis has been resolved. Kan’s success in buying time to oversee the start of Japan’s reconstruction, which could cost up to £113bn, has all but ruined the prospects for a grand coalition comprising the DPJ and the LDP, whose leader, Sadakazu Tanigaki, was behind the no-confidence motion. “Among possible scenarios the best one would be Kan voluntarily resigning and the DPJ forming a coalition with the LDP to stabilise politics,” said Yasuo Yamamoto, senior economist at the Mizuho research institute in Tokyo. “Unstable politics would weigh on stock prices and delay reconstruction after the disaster. “From both Japanese and foreign investors’ point of view, now is not the time for political turmoil. Japan has various issues it needs to address swiftly – not only reconstruction but also tax and social security reform, TPP [a transpacific free trade agreement] and energy policy, which requires political initiative.” The return to business as usual in Nagatacho, Tokyo’s political nerve centre, has been met with anger and disbelief in the country’s north-east, where about 100,000 people are still living in evacuation shelters and construction of temporary housing is behind schedule. The damage to the region’s administrative infrastructure would have made it all but impossible for some communities to take part in a general election had the no-confidence motion succeeded. “We are in a situation of having to delay the prefectural assembly election because elections cannot be held in our prefecture right now,” Miyagi prefecture’s governor, Yoshihiro Murai, told reporters. “It will be difficult to hold a lower house election, especially in the municipalities along the coast.” An 82-year-old resident of Kamaishi who was living in a local school told the Asahi Shimbun: “Once things become more settled in the region struck by the disaster, they can go ahead and dissolve the lower house as many times as they like. If they dissolve it now, I will abstain from voting.” A day of political turmoil in Japan coincided with a visit by the British business secretary, Vince Cable, who offered British help with the operation to remove waste from the nuclear plant and to decommission its reactors once they have achieved “cold shutdown”. “We can help with strategic planning, technical help with various aspects of decommissioning and waste disposal – we have a lot of experience in that field – and independent verification, if that’s what the Japanese need,” Cable said. “But the most important contribution we’re making on the nuclear issue at the moment is being scientifically rational. This whole issue is in danger of getting out of control. “The fact that [UK chief nuclear adviser] John Beddington has been here and looked at this scientifically has an impact on UK public opinion. It’s about perception.” The Fukushima nuclear accident prompted Japan to abandon plans to build new reactors and Germany to announce it would close all of its atomic plants by 2022. But Cable said British energy policy, which envisions a key role for nuclear, remained unchanged. “There were periodic outbursts in the newspapers at the time [of the accident] and you’ve seen what’s happened in Germany with a sudden switch of policy. We’re not changing our policy. “There’s a continuing emphasis on safety – that’s got to be scientifically based – and we don’t believe in subsidisation of the industry. But we’ve got no fundamental, theological objections. “In the UK we’ve committed ourselves to these very ambitious low-carbon budgets, and it’s explicit that nuclear power has a significant role to play, provided safety issues are properly addressed and the government isn’t called upon to offer subsidies.” Cable, who is the first cabinet minister to visit Tokyo since the 11 March disaster, pledged British support for Japan as it attempts to put its economy back on track. “One of the main reasons I’m here is to show solidarity with the Japanese,” he said. “Britain has given a lot of practical help with humanitarian assistance and our companies have pitched in in various ways. “But one of the most useful ways we can help is to show that Japan is safe and that there is no reason why business people shouldn’t come here. “The message is that Japan is a country we want to do business with. Come here and get on with it.” Japan disaster Japan Natural disasters and extreme weather Nuclear power Energy Justin McCurry guardian.co.uk
Continue reading …Homeless charity Crisis says young disabled people who can no longer afford flats could end up being forced to live on the streets Controversial government changes to housing benefit could see 11,000 young disabled people forced out of their flats, putting them at risk of homelessness, according to campaigners. The homeless charity Crisis says the government’s own figures (pdf) show that almost one in five of the 62,500 people in England, Scotland and Wales affected by the proposed extension of the Shared Accommodation Rate (SAR) have a disability. From 1 January 2012, single people aged 25-34 will only be able to claim housing benefit based on the cost of a room in a shared house rather than a modest one-bed flat, bringing them into line with existing rates for people under 25. The average loss will be £41 a week. This will force many disabled people into housing that is inappropriate for their condition, said Crisis. Although 4,000 of the most vulnerable disabled claimants will be exempt because they need help through the day or night, most ill and disabled people will be forced to move into cheaper accommodation, often outside the area where they live. In a survey of housing professionals published by Crisis last month, 87% said they already had problems finding appropriate properties for people on SAR and 72% believed there was not enough shared accommodation in their area. Leslie Morphy, chief executive of Crisis, said: “This disturbing cut will force people suffering serious physical disabilities or mental illness to share with strangers, even if it damages their health. “Government claims that discretionary funding will be able to support those who need it just don’t add up. “We are deeply concerned that some of the disabled people affected by this will end up homeless, and in the worst cases rough-sleeping.” James, 31, from Coventry, who is on incapacity benefit, faces a cut of £43 a week in his benefit, which will force him to leave the small one-bedroom flat he has lived in since 2008. He has Asperger’s syndrome, a form of autism; a hereditary condition that results in severe mobility problems; and has suffered from ulcerative colitis, a form of inflammatory bowel disease. He says his Asperger’s makes it hard for him to live with strangers, and he fears that the stress of moving from his home will trigger health problems. He says there are no affordable one-bedroom flats where he lives. “I think it’s going to be horrific. I just won’t have the money to stay where I am. It will basically be ‘look for the least terrible option’.” James says he is frustrated by being unable to work. He says he has applied for jobs without success. “One of the things I’m most frustrated by is people saying I’m workshy. This is not a ‘lifestyle choice’. I’m not living in luxury at the taxpayer’s expense, I’m living in penury at the taxpayer’s expense, and I hate it, I hate living on handouts.” According to an equality impact assessment carried out by the Department for Work and Pensions, the average loss per week is £41, rising to £45 a week in the south east and £87 a week in London. The highest losses will be incurred by young people renting in Camden (a loss of £116 a week), Brent (£111), Islington (£109), Tower Hamlets (£109) and Westminster (£108). The Department for Work and Pensions said the measure, which it hopes will save £200m a year, was to ensure greater fairness so that people on housing benefit face similar “affordability choices” to those not on benefits. Disability Housing benefit Communities Housing Patrick Butler guardian.co.uk
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