In Post Subprime Circus, Hedge Funds Paulson & Carlyle Gun for Fannie, Raj Date Cashes In, Mel Watt as a Chip

By Matthew Russell Lee

Following the Money, June 7 -- Even as the predatory lending meltdown continues to reverberate, from HSBC's scam foreclosures to Wells Fargo's discriminatory follow-through on the buildings that it's seized, from Wall Street to Washington the games continue.

  Hedge funds that profited on the way down from the collapses, for example Paulson & Company, the Carlyle Group's Claren Road Asset Management and Perry Capital, are now buying up the preferred shares of Fannie Mae with a eye to taking it private.

  They are buying in the markets, with little disclosure or oversight, and lobbying in DC. Also in the mix is James Millstein, "fixer" of AIG, now ready to cash in through, what else, Milstein & Company.

  On the other side, Fannie Mae has become a grab-bag, with fees imposed on mortgages for entirely unrelated government goals. Who wouldn't want such a pinata?

  Meanwhile a former Deutsche Banker who went to the Consumer Financial Protection Bureau, Raj Date, has now left to start his own firm to make money off the crisis. Fenway Summer, he spins it. He's said to advise McKinsey & Company too. The fox, it turns out, was watching the hen house.

 Inner City Press previously dueled with Carlyle's spin-machine on Jay Powell's nomination to the Federal Reserve Board, here.

A nomination floated that please Obama's base, Mel Watt for FHFA, turns out to be trading chip, and Watt to be more pro industry even that the man in place. He represents Bank of America's district, the same Bank of America targeted for Wells-like disparities. The White House has been pitching: Mel because of who he is could do things that others could. Viewed through this PRISM, can you hear me now?

And so: what's been learned? Very little. As the song goes, it's all about the money. Watch this site.

On Libya, UK Concerned By Isolation Law, Zeidan's Link With Sarkozy, Qatar Sovereign Wealth Fund?

By Matthew Russell Lee

UNITED NATIONS, March 14 -- After the UN Security Council relaxed its arms embargo on Libya, even as the spread of weapons from Libya continues to reverberate from Mali to Syria, UK Permanent Representative Mark Lyall Grant came out to take questions.

  Inner City Press asked Lyall Grant what it has already posed, without yet response, to his new “#DigitalDiplomacy"(and as noted by another from way down in Chile, West Ham) twitter account: what the UK's position on the draft Isolation Law.” From the UK Mission's transcript:

Inner City Press: What does the UK think of the proposed Political Isolation Law in Libya and there’s been attacks on the media for reporting on it. Do you think it’s a good idea going forward to bar anyone that had a position in the Gaddafi government from future government service?

Mark Lyall Grant: Obviously that is an issue that we’re watching very closely. It is for the National General Congress to decide what legislation they adopt for the future political dispensation in Libya, but from our point of view, it is very important that this should be an inclusive process, and yes there should be accountability for past crimes, particularly those committed under the Gaddafi regime. But at the same time it is very important that all groups are included in the political dispensation of Libya, so it is fair to say that we do have some concerns about the Isolation Law, in as much of the text that we have seen of it.

Alright, then. Also at the Security Council on Thursday was Libyan Prime Minister Ali Zeidan. On Tuesday he was in DC for a private lunch “co-hosted by the Business Council for International Understanding.” The invitation said he “is credited as having played a key role in persuading French President Nicolas Sarkozy to support the anti-Gaddafi forces.”

Now Sarkozy is said to be offered a $500 million hedge fund to run, by Qatar's Sovereign Wealth Fund. One wag asks: is Sarko bullish on jihad? Watch this site.

As IMF Spins on Greece & Hedge Funds, No Answers on Ukraine, Sri Lanka

By Matthew Russell Lee

UNITED NATIONS, January 13 -- The International Monetary Fund under Christine Lagarde has become even less transparent, answering fewer and fewer press questions.

During the IMF briefing on January 12, the first one in four weeks, Inner City Press submitted four questions, including this: "On Greece, please describe the IMF's engagement with hedge funds asking them to accept a hair cut: are hedge funds reacting differently than banks and what is the IMF doing?"

IMF spokesman Gerry Rice did not posed the hedge fund or the other questions. After the briefing, another IMF spokeswoman wrote to Inner City Press: "We will get back to you on your questions bilaterally Matthew. Gerry had already responded on Greece."

But Gerry Rice had not responded, on Greece, about "private sector" hedge funds. On the afternoon of January 13, the IMF put this out:

"In response to press queries on the talks between Greece and its creditors on private sector involvement (PSI), we are issuing the following line. This is attributable to an IMF spokeswoman:

'We look forward to the resumption of talks between Greece and its creditors. It is important that this lead to a PSI agreement that, together with the efforts of the official sector, ensures debt sustainability.'"

While bland, at least it's a response. Here are the other three questions Inner City Press submitted during the January 12 briefing, which more than 24 hours later have not been answered "bilaterally" or at all:

On Ukraine, what if the relation between that country's negotiations with Russia on gas prices and the IMF resuming talks, after Ukraine passed the bankruptcy legislation it said the IMF wanted? What else would the IMF like to see?

On Sri Lanka, what is the IMF's response to Central Bank Governor Ajit Nivad Cabraal statement on January 3 that Sri Lanka will seek a fresh “follow up or surveillance program” with the IMF as the $2.6 billion loan obtained in 2009 is reportedly due to expire early this year? What is the IMF's thinking on Sri Lanka's failure to fully meet the budget deficit targets and its refusal to devalue the rupee?

On Malawi, please describe the state of the IMF's relations with Malawi, and reviving a program with Malawi, in light of recent statements by President Bingu wa Mutharika against the IMF? (he said on national radio that "Malawian government officials should stop protecting the IMF at the cost of their own citizens.. 'protect the IMF but protect the people' and that of any officials who [a]re unwilling to do so had to resign from their public posts, 'I will be glad to receive your resignation'"?)

During the IMF's briefing in mid December, Inner City Press has submitted another question about Malawi, which also went ignored. The IMF and Africa, under Christine Lagarde? We'll see. Watch this site.

On Food Speculation, UN's Expert Says Nothing's Being Done, S. Korean Land Grabs from Madagascar to Sudan, Brazil on Ethanol

By Matthew Russell Lee
www.innercitypress.com/unhr1food102109.html

UNITED NATIONS, October 21 -- After many speeches at the UN about the need to crack down on financial speculation in food, nothing has been done, the UN's expert on the right to food told Inner City Press on Wednesday.

Olivier de Schutter, a Belgian law professor just back from a visit to Brazil about, among other things, the loss of land for food to ethanol, replied that "nothing is moving at the inter-governmental level." This despite a statement by the G-20 in April favoring the regulation of hedge funds which present systemic risk. The argument is that commodities index funds which speculate in food present systemic risk to net food importing countries. But nothing has been done.

De Schutter spoke about the monopolization of the seed industry, and made a slew of recommendations for governments. The three top monopolizers -- Monsanto, Dupont and the Swiss-based Syngenta -- are all members of the UN Global Compact, and claim to comply with human rights. De Schutter pointed out the antitrust law is directed as national and not global or subnational markets. It is all very heady but one wonders what effect it has.

Brazil might be one of de Schutter's claims to impact. He spoke glowingly of President Lula, saying that Brazil has said that only 19% of land can be used for sugar cane for ethanol, and has committed to monitor labor rights. But what about, for example, Indonesia and Malaysia?

After De Schutter's briefing, Inner City Press asked his staffer for an update on the proposed land grab in Madagascar by South Korea based Daewoo, which was reputed after the coup in that country. De Schutter had been scheduled to visit, but it was put off by the coup. The same thing happened in Honduras. So perhaps De Schutter does have an effect after all, mused one wag.

Footnote: immediately after De Schutter's briefing, the UN's Haile Menkerios was scheduled to speak to the Press about Madagascar. While the UN usually compartmentalizes its work such that a rapporteur looks at land grabs, while the Secretariat remains on "political affairs" narrowly defined, this land grab played a role in the change of government. Now it's said the South Korean deal is being pursued from India, while South Korea appears to have moved on to 690,000 hectares in Sudan. Watch this site.

And see, www.innercitypress.com/unhr1food102109.html