Fed approves Chinese Bank CCB to open in US

WASHINGTON (AFP) �� The US Federal Reserve said Monday it had authorized China Construction Bank, a leading Chinese state bank, to operate in the United States.

The proposed New York City branch of CCB "would engage in wholesale deposit-taking, lending, trade finance, and other banking services," the Fed said in a statement.

The US central bank recalled that China Construction Bank Corporation (CCB) is 57.0 percent owned by the Chinese state, 19.7 percent by US banking group Bank of America and 5.7 percent by Temasek Holdings, a sovereign wealth fund owned by the government of Singapore. The remainder of the capital is publicly traded.

CCB is the second-largest bank in China, with total assets of approximately 1.1 trillion dollars, it noted.

The Fed said it had determined that CCB had adequate anti-money laundering safeguards and had committed to respect US laws on money laundering.

CCB's own funds exceed the minimum set by the 1998 Basel Capital Accord and "is considered equivalent to capital that would be required of a US banking organization," the US central bank said.

CCB would be the fourth mainland Chinese bank -- excluding banks in Hong Kong -- to open operations in the US, after the Agricultural Bank of China, the Bank of China and the Bank of Communications.

The Industrial and Commercial Bank of China (ICBC), China's top bank, also has asked the Fed for authorization to open a branch in New York.

http://news.yahoo.com/s/afp/20081208/pl_afp/uschinabankregulatebankingcompanyccb

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Mr. Bush, in a televised speech before the opening of the markets, said that under other circumstances he would have let the companies fail, as punishment for their own bad business decisions. But given the economic downturn, he said the government had no choice but to step in.

�These are not ordinary circumstances, in the midst of a financial crisis and a recession allowing the US auto industry to collapse is not a responsible action,� Mr. Bush said.

...purchasing these American icons. More selling out of America, right under our noses.

Chinese carmakers SAIC and Dongfeng have plans to acquire GM and Chrysler, China's 21st Century Business Herald reports today. [A National Enquirer the paper is not. It is one of China's leading business newspapers, with a daily readership over three million.] The paper cites a senior official of China's Ministry of Industry and Information Technology�� the state regulator of China's auto industry�� who dropped the hint that "the auto manufacturing giants in China, such as Shanghai Automotive Industry Corporation (SAIC) and Dongfeng Motor Corporation, have the capability and intention to buy some assets of the two crisis-plagued American automakers." These hints are very often followed with quick action in the Middle Kingdom. The hints were dropped just a few days after the same Chinese government gave its auto makers the go-ahead to invest abroad. And why would they do that?

A take-over of a large overseas auto maker would fit perfectly into China's plans. As reported before, China has realized that its export chances are slim without unfettered access to foreign technology. The brand cachet of Chinese cars abroad is, shall we say, challenged. The Chinese could easily export Made-in-China VWs, Toyotas, Buicks. If their joint venture partner would let them. The solution: Buy the joint venture partner. Especially, when he's in deep trouble.

At current market valuations (GM is worth less than Mattel) the Chinese government can afford to buy GM with petty cash. Even a hundred billion $ would barely dent China's more than $2t in currency reserves. For nobody in the world would buying GM and (while they are at it) Chrysler make more sense than for the Chinese. Overlap? What overlap? They would gain instant access to the world's markets with accepted brands, and proven technology.

21st Century Business Herald, obviously with input from higher-up, writes that Chinese industry must change and upgrade. China wants their factories to change from low-value-added manufacturing to technically innovative and financially-sound high-value-add industries. Says the paper: "It would be much easier now for strong Chinese automakers to go global by acquiring some assets of their U.S. counterparts in times of crisis."

Deloitte & Touche sees a trend: "Chinese automakers can start with buying out the OEM projects and Chinese ventures of some global carmakers such as GM and Chrysler."

The Chinese appear to have bigger plans than an accounting firm can imagine. 21st Century Business Herald acts and writes as if its already a done deal, and the beginning of more to come. "In the coming two years China is likely to see a few of its large Chinese automakers and other manufacturing enterprises set a precedent for achieving globalization by acquiring global companies, just like SAIC or Dongfeng's possible acquisition of troubled GM or Chrysler."

Just in case you missed it, the Shanghai Automotive Industry Corporation (SAIC) is China's largest auto manufacturer. In 1984, the company entered a joint venture with Volkswagen. A decade later, SAIC entered a joint venture with General Motors. In 2007, SAIC bought the Nanjing Automobile Corporation, which had acquired British MG Rover in 2005.

Dongfeng Motor Corporation is a public company, although 70 percent of their shares are reported to be in government hands. They also are one of China's Big Three. The company has numerous joint venture partners, such as Nissan, Peugeot-Citroen, Honda, and Kia. Dongfeng (which means "East Wind") was founded at the behest of Mao Zedong himself in 1968.

They don't want to buy any more of our debt, as our $ is almost worthless. They've been buying up homes in southern CA big-time. They already know that this most liberal "plan" will make the US self-destruct.

Those who voted for this man and refused to listen to many of us who said h'ed do this, don't cry to me. This is merely the beginning.

1. China's outrageous increase in human rights violations. (Hillary forgot about this also, though.) Umm, I thought this was supposed to be the liberals' big beef with China.

4. China's recent military moves, including confrontation with US warships in international waters or massive buildup of forces across from Taiwan, increases in military spending, etc.

No, no. None of that! Just "Let's get together for a kumbaya party, Comrade. I'm having a new Party Worker's suit made out of taxpayer skin that'll knock your eye out!"

America Hires Chinese Firm To Inspect Cargo For Nuclear Material

BY TED BRIDIS - Associated Press
March 23, 2006
URL: http://www.nysun.com/article/29714

WASHINGTON (AP) - In the aftermath of the Dubai ports dispute, the Bush administration is hiring a Hong Kong conglomerate to help detect nuclear materials inside cargo passing through the Bahamas to the United States and elsewhere.

The administration acknowledges the no-bid contract with Hutchison Whampoa Ltd. represents the first time a foreign company will be involved in running a sophisticated U.S. radiation detector at an overseas port without American customs agents present.

Freeport in the Bahamas is 65 miles from the U.S. coast, where cargo would be likely to be inspected again. The contract is currently being finalized.

The administration is negotiating a second no-bid contract for a Philippine company to install radiation detectors in its home country, according to documents obtained by The Associated Press. At dozens of other overseas ports, foreign governments are primarily responsible for scanning cargo.

While President Bush recently reassured Congress that foreigners would not manage security at U.S. ports, the Hutchison deal in the Bahamas illustrates how the administration is relying on foreign companies at overseas ports to safeguard cargo headed to the United States.

Hutchison Whampoa is the world's largest ports operator and among the industry's most-respected companies. It was an early adopter of U.S. anti-terror measures. But its billionaire chairman, Li Ka-Shing, also has substantial business ties to China's government that have raised U.S. concerns over the years.

Li Ka-Shing is pretty close to a lot of senior leaders of the Chinese government and the Chinese Communist Party, said Larry M. Wortzel, head of a U.S. government commission that studies China security and economic issues. But Wortzel said Hutchison operates independently from Beijing, and he described Li as a very legitimate international businessman.

One can conceive legitimate security concerns and would hope either the Homeland Security Department or the intelligence services of the United States work very hard to satisfy those concerns, Wortzel said.

Three years ago, the Bush administration effectively blocked a Hutchison subsidiary from buying part of a bankrupt U.S. telecommunications company, Global Crossing Ltd., on national security grounds.

And a U.S. military intelligence report, once marked secret, cited Hutchison in 1999 as a potential risk for smuggling arms and other prohibited materials into the United States from the Bahamas.

Hutchison's port operations in the Bahamas and Panama could provide a conduit for illegal shipments of technology or prohibited items from the West to the PRC (People's Republic of China), or facilitate the movement of arms and other prohibited items into the Americas, the now-declassified assessment said.

The CIA currently has no security concerns about Hutchison's port operations, and the administration believes the pending deal with the foreign company would be safe, officials said.

Supervised by Bahamian customs officials, Hutchison employees will drive the towering, truck-like radiation scanner that moves slowly over large cargo containers and scans them for radiation that might be emitted by plutonium or a radiological weapon.

Any positive reading would set off alarms monitored simultaneously by Bahamian customs inspectors at Freeport and by U.S. Customs and Border Protection officials working at an anti-terrorism center 800 miles away in northern Virginia. Any alarm would prompt a closer inspection of the cargo, and there are multiple layers of security to prevent tampering, officials said.

The equipment operates itself, said Bryan Wilkes, a spokesman for the U.S. National Nuclear Security Administration, the agency negotiating the contract. It's not going to be someone standing at the controls pressing buttons and flipping switches.

A lawmaker who helped lead the opposition to the Dubai ports deal isn't so confident. Neither are some security experts. They question whether the U.S. should pay a foreign company with ties to China to keep radioactive material out of the United States.

Giving a no-bid contract to a foreign company to carry out the most sensitive security screening for radioactive materials at ports abroad raises many questions, said Sen. Charles Schumer, D-N.Y.

A low-paid employee with access to the screening equipment could frustrate international security by studying how the equipment works and which materials set off its alarms, warned a retired U.S. Customs investigator who specialized in smuggling cases.

Money buys a lot of things, Robert Sheridan said. The fact that foreign workers would have access to how the United States screens various containers for nuclear material and how this technology scrutinizes the containers _ all those things allow someone with a nefarious intention to thwart the screening.

Other experts discounted concerns. They cited Hutchison's reputation as a leading ports company and said the United States inevitably must rely for some security on large commercial operators in the global maritime industry.

We must not allow an unwarranted fear of foreign ownership or involvement in offshore operations to impair our ability to protect against nuclear weapons being smuggled into this country, said Sen. Norm Coleman, R-Minn., a member of the Senate Committee on Homeland Security and Governmental Affairs. We must work with these foreign companies.

A former Coast Guard commander, Stephen Flynn, said foreign companies sometimes prove more trustworthy _ and susceptible to U.S. influence _ than governments.

It's a very fragile system, Flynn said. Foreign companies recognize the U.S. has the capacity and willingness to exercise a kill switch if something goes wrong.

A spokesman for Hutchison's ports subsidiary, Anthony Tam, said the company is a strong supporter in port security initiatives.

In the case of the Bahamas, our local personnel are working alongside with U.S. customs officials to identify and inspect U.S.-bound containers that could be carrying radioactive materials, Tam said.

However, there are no U.S. customs agents checking any cargo containers at the Hutchison port in Freeport. Under the contract, no U.S. officials would be stationed permanently in the Bahamas with the radiation scanner.

The administration is finalizing the contract amid a national debate over maritime security sparked by the furor over now-abandoned plans by Dubai-owned DP World to take over significant operations at major U.S. ports.

Hutchison operates the sprawling Freeport Container Port on Grand Bahama Island. Its subsidiary, Hutchison Port Holdings, has operations in more than 20 countries but none in the United States.

Contract documents, obtained by The Associated Press, indicate Hutchison will be paid roughly $6 million. The contract is for one year with options for three years.

The Energy Department's National Nuclear Security Administration is negotiating the Bahamas contract under a $121 million security program it calls the second line of defense. Wilkes, the NNSA spokesman, said the Bahamian government dictated that the U.S. give the contract to Hutchison.

It's their country, their port. The driver of the mobile carrier is the contractor selected by their government. We had no say or no choice, he said. We are fortunate to have allies who are signing these agreements with us.

Some security experts said that is a weak explanation in the Bahamas, with its close reliance on the United States. The administration could insist that the Bahamas permit U.S. Customs agents to operate at the port, said Albert Santoli, an expert on national security issues in Asia and the Pacific.

Why would they not accept that? said Santoli, a former national security aide to Rep. Dana Rohrabacher, R-Calif. There is an interest in the Bahamas and every other country in the region to make sure the U.S. stays safe and strong. That's how this should be negotiated.

Flynn, the former Coast Guard commander, agreed the Bahamas would readily accept such a proposal but said the U.S. is short of trained customs agents to send overseas.

Contract documents obtained by the AP show at least one other foreign company is involved in the U.S. radiation-detection program.

A separate, no-bid $4 million contract the Bush administration is negotiating would pay a Manila-based company, International Container Terminal Services Inc., to install radiation detectors at the Philippines' largest port.

The U.S. says the Manila company is not being paid to operate the radiation monitors once they are installed. But two International Container executives and a senior official at the government's Philippine Nuclear Research Institute said the company will run the detectors on behalf of the institute and the country's customs bureau. U.S. officials said they will investigate further how the Filipinos plan to use the equipment.

I don't want a check either but wouldn't be nice if they would give us the money instead of coming up with all these carppy bogged down packages?

What would you do if they would give us $30K or more? That would probably cost less than what they are proposing and you know darn well, that money would go into the economy faster than their plan.

Former Chairman of the Federal Reserve Alan Greenspan has come out in favor of nationalizing some banks. (Photo: Reuters Pictures)

The US government may have to nationalise some banks on a temporary basis to fix the financial system and restore the flow of credit, Alan Greenspan, the former Federal Reserve chairman, has told the Financial Times.

In an interview, Mr Greenspan, who for decades was regarded as the high priest of laisser-faire capitalism, said nationalisation could be the least bad option left for policymakers.

"It may be necessary to temporarily nationalise some banks in order to facilitate a swift and orderly restructuring," he said. "I understand that once in a hundred years this is what you do."

Mr Greenspan's comments capped a frenetic day in which policymakers across the political spectrum appeared to be moving towards accepting some form of bank nationalisation.

"We should be focusing on what works," Lindsey Graham, a Republican senator from South Carolina, told the FT. "We cannot keep pouring good money after bad." He added, "If nationalisation is what works, then we should do it."

Speaking to the FT ahead of a speech to the Economic Club of New York on Tuesday, Mr Greenspan said that "in some cases, the least bad solution is for the government to take temporary control" of troubled banks either through the Federal Deposit Insurance Corporation or some other mechanism.

The former Fed chairman said temporary government ownership would "allow the government to transfer toxic assets to a bad bank without the problem of how to price them."

But he cautioned that holders of senior debt - bonds that would be paid off before other claims - might have to be protected even in the event of nationalisation.

"You would have to be very careful about imposing any loss on senior creditors of any bank taken under government control because it could impact the senior debt of all other banks," he said. "This is a credit crisis and it is essential to preserve an anchor for the financing of the system. That anchor is the senior debt."

Mr Greenspan's comments came as President Barack Obama signed into law the $787bn fiscal stimulus in Denver, Colorado. Mr Obama will announce on Wednesday a $50bn programme for home foreclosure relief in Phoenix, Arizona. Meanwhile, the White House was working last night on the latest phase of the bailout for two of the big three US carmakers.

In his speech after signing the stimulus, which he called the "most sweeping recovery package in our history", Mr Obama set out a vertiginous timetable of federal decisions in the coming weeks that included fixing the US banking system, submission next week of the 2009 budget and a bipartisan White House meeting to address longer-term fiscal discipline.

"We need to end a culture where we ignore problems until they become full-blown crises," said Mr Obama. "Today does not mark the end of our economic troubles� but it does mark the beginning of the end."

PROVIDENCE, R.I. -- Walter Soehnge is a retired Texas schoolteacher who traveled north with his wife, Deana, saw summer change to fall in Rhode Island and decided this was a place to stay for a while.

So the Soehnges live in Scituate now and Walter sometimes has breakfast at the Gentleman Farmer in Scituate Village, where he has passed the test and become a regular despite an accent that is definitely not local.

And it was there, at his usual table last week, that he told me that he was madder than a panther with kerosene on his tail.

He says things like that. Texas does leave its mark on a man.

What got him so upset might seem trivial to some people who have learned to accept small infringements on their freedom as just part of the way things are in this age of terror-fed paranoia. It's that everything changed after 9/11 thing.

But not Walter.

We're a product of the '60s, he said. We believe government should be way away from us in that regard.

He was referring to the recent decision by him and his wife to be responsible, to do the kind of thing that just about anyone would say makes good, solid financial sense.

They paid down some debt. The balance on their JCPenney Platinum MasterCard had gotten to an unhealthy level. So they sent in a large payment, a check for $6,522.

And an alarm went off. A red flag went up. The Soehnges' behavior was found questionable.

And all they did was pay down their debt. They didn't call a suspected terrorist on their cell phone. They didn't try to sneak a machine gun through customs.

They just paid a hefty chunk of their credit card balance. And they learned how frighteningly wide the net of suspicion has been cast.

After sending in the check, they checked online to see if their account had been duly credited. They learned that the check had arrived, but the amount available for credit on their account hadn't changed.

So Deana Soehnge called the credit-card company. Then Walter called.

When you mess with my money, I want to know why, he said.

They both learned the same astounding piece of information about the little things that can set the threat sensors to beeping and blinking.

They were told, as they moved up the managerial ladder at the call center, that the amount they had sent in was much larger than their normal monthly payment. And if the increase hits a certain percentage higher than that normal payment, Homeland Security has to be notified. And the money doesn't move until the threat alert is lifted.

Walter called television stations, the American Civil Liberties Union and me. And he went on the Internet to see what he could learn. He learned about changes in something called the Bank Privacy Act.

The more I'm on, the scarier it gets, he said. It's scary how easily someone in Homeland Security can get permission to spy.

Eventually, his and his wife's money was freed up. The Soehnges were apparently found not to be promoting global terrorism under the guise of paying a credit-card bill. They never did learn how a large credit card payment can pose a security threat.

But the experience has been a reminder that a small piece of privacy has been surrendered. Walter Soehnge, who says he holds solid, middle-of-the-road American beliefs, worries about rights being lost.

If it can happen to me, it can happen to others, he said.

(Bob Kerr is a columnist for The Providence Journal. E-mail bkerr@projo.com.)

(Distributed by Scripps Howard News Service, www.shns.com.)

This again from the McClatchy news group, which is not conservative by any means:

The other night, the Rev. James Dobson's ministry asked all believers to pray for a storm on Thursday night so that the Obama acceptance speech outdoors in Denver would have to be cancelled.

I see that You have answered Rev. Dobson's prayers -- except the storm You have sent to earth is not over Denver, but on its way to New Orleans! In fact, You have scheduled it to hit Louisiana at exactly the moment that George W. Bush is to deliver his speech at the Republican National Convention.

Now, heavenly Father, we all know You have a great sense of humor and impeccable timing. To send a hurricane on the third anniversary of the Katrina disaster AND right at the beginning of the Republican Convention was, at first blush, a stroke of divine irony. I don't blame You, I know You're angry that the Republicans tried to blame YOU for Katrina by calling it an "Act of God" -- when the truth was that the hurricane itself caused few casualties in New Orleans. Over a thousand people died because of the mistakes and neglect caused by humans, not You.

Some of us tried to help after Katrina hit, while Bush ate cake with McCain and twiddled his thumbs. I closed my office in New York and sent my entire staff down to New Orleans to help. I asked people on my website to contribute to the relief effort I organized -- and I ended up sending over two million dollars in donations, food, water, and supplies (collected from thousands of fans) to New Orleans while Bush's FEMA ice trucks were still driving around Maine three weeks later.

But this past Thursday night, the Washington Post reported that the Republicans had begun making plans to possibly postpone the convention. The AP had reported that there were no shelters set up in New Orleans for this storm, and that the levee repairs have not been adequate. In other words, as the great Ronald Reagan would say, "There you go again!"

So the last thing John McCain and the Republicans needed was to have a split-screen on TVs across America: one side with Bush and McCain partying in St. Paul, and on the other side of the screen, live footage of their Republican administration screwing up once again while New Orleans drowns.

So, yes, You have scared the Jesus, Mary and Joseph out of them, and more than a few million of your followers tip their hats to You.

But now it appears that You haven't been having just a little fun with Bush & Co. It appears that Hurricane Gustav is truly heading to New Orleans and the Gulf coast. We hear You, O Lord, loud and clear, just as we did when Rev. Falwell said You made 9/11 happen because of all those gays and abortions. We beseech You, O Merciful One, not to punish us again as Pat Robertson said You did by giving us Katrina because of America's "wholesale slaughter of unborn children." His sentiments were echoed by other Republicans in 2005.

So this is my plea to you: Don't do this to Louisiana again. The Republicans got your message. They are scrambling and doing the best they can to get planes, trains and buses to New Orleans so that everyone can get out. They haven't sent the entire Louisiana National Guard to Iraq this time -- they are already patrolling the city streets. And, in a nod to I don't know what, Bush's head of FEMA has named a man to help manage the federal government's response. His name is W. Michael Moore. I kid you not, heavenly Father. They have sent a man with both my name AND W's to help save the Gulf Coast.

So please God, let the storm die out at sea. It's done enough damage already. If you do this one favor for me, I promise not to invoke your name again. I'll leave that to the followers of Rev. Dobson and to those gathering this week in St. Paul.