Friday, December 4, 2015

For UN's Delayed Yemen Talks, ICP Obtains Envoy's Proposed Ground Rules, Here


By Matthew Russell Lee, Exclusive
UNITED NATIONS, December 3 -- The UN Secretariat's bungling of Yemen mediation has become ever more clear, according to multiple sources and documents exclusively seen by Inner City Press, see below. 
Now Inner City Press has obtained UN envoy Ismail Ould Cheikh Ahmed's documents for the delayed talks in Switzerland, and exclusively puts them online here.
 Ismael Ould Cheikh Ahmed is proposing to invite 12 people on each side (the Houthis and GPC are to form a joint delegation). There will be no press access, other than photographs with the Special Envoy at the start. Delegates shall not use social media. Only the Special Adviser can speak publicly, and he is supposed to be seen has neutral. There are “Ground Rules,” also put online by Inner City Press here. We'll have more on this.

Back on November 10, while Secretary General Ban Ki-moon was on the next to last day of his trip to Saudi Arabia to discussed among other things Yemen, Inner City Press asked Ban's spokesman Stephane Dujarric to confirm that envoy Ismail Ould Cheikh Ahmed is not even IN Saudi Arabia with Ban.
 Dujarric confirmed that he is not there, but would not confirm that he is in his native Mauritania, to which Inner City Press is informed he flew on the UN's dime, for a vacation, signed off on by the top of the Department of Political Affairs.
Inner City Press has reported from sources dates on which the UN's envoy went to Dubai, purpose UNknown. Given his follow UN enovy Bernardino Leon's deal with the UAE, this must now be explained and acted on by the UN.
Inner City Press previously reported on and published the Houthis' letterdenouncing UN envoy Ould Cheikh Ahmed as little more than a Saudi tool. Now it's gotten worse: even Kenny Gluck who works for the envoy and went to Muscat trying to meet the Houthis was unable. He waited then returned to Riyadh. 
    The envoy, meanwhile, is said by those who know him to not only be “laughably” cheap -- putting in for reimbursement for an eight dollar taxi ride from the UN to a Mission on 67th Street, for example -- but also still involved in the same business for which Inner City Press previously dubbed him “the Fisherman” or the “Fishy Envoy.”  
  He has traveled on the UN's funds to Dubai, claiming he would meet the Houthis there. Not only will the Houthis not meet with him -- even if they would, they would not be found in Dubai, given that the UAE is part of the coalition. In any event, Abu Dhabi is the capital, not Dubai. There is something... fishy.
  Now we can report what UN sources say are dates of Ismail Ould Cheikh Ahmed's travel to Dubai: May 11; June 3 and June 5; August 1 and August 4; September 12-15; October 9-11; October 26; November 4; and prospectively November 10 and November 12.  
 What are Ismail Ould Cheikh Ahmed's trips to Dubai for? Given the UAE's offer to UN Envoy Bernarndino Leon, while he was UN Envoy to Libya, this question must be answered.
  So on November 4, Inner City Press asked UN Spokesman Dujarric,video heretranscript here:
Inner City Press: I wanted to ask you something on Yemen.  It seems like… I'd heard this, that, that the Houthis won't meet with Ismail Ould Cheikh Ahmed anymore.  They've written a letter to him.  They've published in their own newspaper something saying that he's Saudi aligned.  This Kenny Gluck, who I guess works with this office, left without a meeting in Muscat.  Can you say when was the last time that Ould Cheikh Ahmed spoke with the Houthis?

Spokesman:  No.  I think the discussions, as the Special Envoy said, are ongoing to try to get the parties back on track.  I think in a period before these talks, there will be lots of back-and-forth about who is willing to speak to whom and who is not willing to speak to whom.  There's a lot of, I think,  gelling of the situation.  Obviously, the discussions are ongoing, and we're not going to do a play-by-play of the results of these discussions until we are ready to announce something firmer.

Inner City Press:  I'd also heard that he's traveled a number of times on UN dime to Dubai, stating that he's meeting the Houthis there.  And since there are no Houthis there, I guess because… is that something that you could check?  What's his travel…?

Spokesman:  I don't know there are no Houthis there.

Inner City Press:  Well, UAE [United Arab Emirates] is part of the policy… is part of the coalition…

Spokesman:  The Special Envoy is doing the travelling that he needs to do, and I have no reason to question it. 
  The Saudis, asserting control, have told Ould Cheikh Ahmed to try to cut Oman out, sources tell Inner City Press, hence the idea the talks will be in Geneva. But what talks, if the Houthis won't talk to Ould Cheikh Ahmed or his Kenny Gluck.
  Some in UN headquarters, looking past this failed envoy, are floating names for a replacement, including none other than Kevin Rudd, looking for a long-shot project to raise his profile. We'll have more on this.
  On October 26 Inner City Press reported that its sources exclusively told it of a new low, that the UN brought into Sana'a what the Houthis call two members of US intelligence, with the cover identification that they work for the company running the former hotel now occupied by the UN. But, the sources say, security in Sana'a recognized the two and they are now detained. 
  On October 30, Inner City Press asked UN Spokesman Stephane Dujarric about it, video heretranscript here and below. Dujarric acknowledged he knew about two "contractors."
 On November 2, amid wire reports derivative and worse, Inner City Press followed up, video here, UN transcript here:
Inner City Press: I understand you're making this distinction that the people flown, you know, worked for a contractor that maintains the building.  Obviously, you're… I mean, the allegation by those detaining them is they were previously with US intelligence.  So, I'm wondering, is it… given that the building used to be occupied by the US Embassy, what is the company?  What is the name of the company that maintains the building?

Spokesman:  It's called DTF… no.  You know what?  I don't have the name of the… I don't have the name of the company.

Inner City Press:  Seems like you probably… can you…?

Spokesman:  No, I don't know about it.

Inner City Press:  You're flying them.

Spokesman:  I'm not flying them.  I'll see what I can do.

Inner City Press:  I read somewhere that… that the UN is trying to get… seeking the release through the DSG [Deputy Secretary-General].  Is that the case?

Spokesman:  You know, the… whichever channels we use are UN channels.  I'm not going to go into any of the details.

Inner City Press:  Right, but there have been… okay.  Here's a more sort of generic one on this day of protection of journalists.  There was this Manama conference in… to which the envoy apparently attended, because he did some speaking there.  And it turns out that the acting Foreign Minister of Yemen, Mr. Yassin, had two, “respected Yemeni analysts” asked to leave, calling them Houthis, which they, in fact, aren't.  It seems, to many people who follow Yemen, this is kind of an embarrassment that people were ejected from a conference, and it showed a lack… and I wanted to know, did the envoy… maybe he didn't say anything that I'm aware of.  But, can you check with the envoy whether he had any view of whether it is positive for the process to have people ejected from this conference?

Spokesman:  "I don't have any facts about this conference.  If I have facts, I will share them with you."
 Meanwhile on November 2 the US Statement Department was referring questions to this UNresponsive UN: "We’re aware of those reports. Due to privacy considerations, I’m not going to comment on them...  I would direct your questions to the UN."
  After Inner City Press' October 26 report and October 30 noon briefing questions, on October 31 Reuters "reported" a piece citing an unnamed UN spokesperson about two "contractors," with no mention of the Houthis claim they work with US intelligence, which by now had also been reported, along with Inner City Press' October 30 Q&A with Dujarric, by Al-Akhbar.
  But it's worse. Reuters initially (mis) reported that "'Two contractors have been detained and the Deputy Secretary-General (Jan Eliasson) is looking into it,' a U.N. spokesman said without elaborating or confirming if the two were American citizens."
  Then a day after that, Reuters blamed the UN for its correction to "'Two contractors have been detained and DSS (Department of Safety and Security) is looking into it,' said a U.N. spokesman."
  It would seem the UN spokesman, left unnamed by Reuters, said "DSS" and Reuters mis-heard it as "DSG," didn't note it would be strange for the UN's second highest official to be on two contractors when lower official Herve Ladsous is the one who made a call for 13 contractors in South Sudan.
 But Reuters, including the Thomson Reuters Foundation Trust.org,running its correction, says "UN corrects source of information in second paragraph." So the UN made the mistake?
 This is the same Reuters which on Friday regurgitated a UN report which Inner City Press had reported and asked the UN about fully two weeks earlier, same Reuters which refused to make public its policies, and tries to censor its anti Press complaints to the UN, here. We'll have more on this. 
  On Yemen, from the October 30 UN transcript:
Inner City Press: maybe you can confirm or deny that two individuals flew in to Sana’a on a UN plane have been detained by the Houthis who accuse them of being US intelligence individuals.  What was the protocol for getting on a UN plane to Sana’a?  Does the UN have a position of not flying in intelligent members of a UN member state?

Spokesman:  I'm aware of two people who I believe are UN contractors and their situation.  I don't have an update on it.  The protocol for flying on UN planes and on UN humanitarian flights is pretty clear.  I can give you the details.  We do not, we do not knowingly fly in or out combatants.

Inner City Press:  I just wondered, could you maybe say what kind of contractors they are?  I heard and reported they were making a building that the UN works in.  Is that true?

Spokesman:  That's my understanding. 

 We'll have more on this.
  Meanwhile the Houthis are denouncing UN envoy Ismail Ould Cheikh Ahmad and his (mis) representation to the Security Council regarding what they agreed to. This has happened before and the goal seems to be delay to allow for more air strikes. There's work of mercenaries, in essence, including from Colombia in Aden, joining the troops from ICC-indicted Sudan.
 A new level of dysfunction was hit with the deployment in Aden of hundreds of troops from Sudan, putting ICC-indicted Omar al-Bashir on the same side as the US and UK. (Inner City Press is exclusively informed that "UN" envoy Ismail Ould Cheikh Ahmed is working on a similar Saudi deal with his native Mauritania, see below.)
Now Inner City Press is reliably and exclusively informed of a letter, drafted by Saudi Arabia and conveyed to UN Secretary General Ban Ki-moon by envoy Ismail Ould Cheikh Ahmed, which has Ban thanking Hadi and stating that the Houthis have agreed without reservation to implementing UN Security Council Resolution 2216.  They have not - this is just another misleading move by the envoy, not a third strike but a fourth.
  But more fundamentally, why would Ban Ki-moon even consider signing a letter that was drafted by Saudi Arabia? Ban's Deputy Secretary General Jan Eliasson, arguably undermining the envoy, recently traveled to Saudi Arabia and then Iran.
  Inner City Press is reliably and exclusively informed that the Saudis snubbed Eliasson, denying several of his meeting requests and finally providing him only with the Foreign Minister, just before he left. In Iran, complaints against envoy Ismail Ould Cheikh Ahmed were lodged, that he does not have the trust of the Houthis. What kind of envoy is this? What kind of UN?
  After the UN Security Council's praise of talks ostensibly committed to UN envoy Ismail Ould Cheikh Ahmed was not updated after Hadi canceled participation in the talks, then the Saudi led coalition bombed Oman's Ambassador's house in Sana'a.
  The Saudi Mission to the UN, doling out information selectively as always, tweeted a photo of a meeting between its Ambassador and the deputy ambassadors of Security Council members the UK and US, of the EU - and UN humanitarian deputy Kyung-hwa Kang. What did Kyung-hwa Kang, if not the Ambassadors, say about the airstrikes?
  The UN's envoy Ismail Ould Cheikh Ahmed, after complaining about his leaked email showing his marginalization from Yemen talks, that Hadi had committed to come to talks. The Security Council praised him in a Press statement.
  Then Hadi canceled. It is similar to the UN's ceasefire-that-wasn't, and the failed "talks" in Geneva in which the UN never gave the Houthis passes to get into the UN building, after allowing them to be delayed along the way so that Ban never met them (while meeting with an individual on the US Al Qaeda sanctions list.)
  In many contexts it's "three strikes and you're out," in this case faux ceasefire and two talks that never happened. But the Security Council has not updated its Press Statement of praise; some members apparently simply work around the UN envoy. We'll have more on this.
  On September 5 as airstrikes on Sana'a picked up force, there was no comment from the UN or its envoy Ismail Ould Cheihk Ahmed. Nor on September 6. On September 7, the UN finally spoke -- not about the airstrikes but about a leak.
  On September 8, Inner City Press asked UN Spokesman Stephane Dujrarric if he was denying the veracity of the UN email Inner City Press published, below. Dujarric did not deny it. Video here. Inner City Press on September 9 asked Dujarric's deputy, below, on September 9 about Ismail Ould Cheikh Ahmed.
  Inner City Press exclusively reported the following: on August 27-28 in Muscat, the US and UK, the EU Ambassador to the UN and Saudi intelligence, met with the Houthis -- without the UN and its envoy present, or even sources say aware of the meeting. These sources say that the UN's Ismail Ould Cheikh Ahmed was on vacation in his native Mauritania, and was entirely out of the loop. 
  On September 10, Inner City Press asked UK Ambassador Matthew Rycroft if the UK had met with the Houthis and GPC in Muscat, without the UN Envoy present. Video here. 
  Meanwhile Ismail Ould Cheikh Ahmed says the same parties will now meet with him. Replay?

  On September 9, Inner City Press asked UN Deputy Spokesperson Farhan Haq, video heretranscript here
  The September 10 briefing by this envoy to the UNSC was requested by the UK - which, it seems, met with the Houthis without Ismail Ould Cheikh Ahmed.
  Sources also note to Inner City Press that the Saudi have "dissed" Ismail Ould Cheikh Ahmed, relegating him only to meeting with Saudi intelligence, not diplomats as was previously the case with the UN. This too is embarrassing to the UN. 


Perhaps the discomfort is with the reference to the US National Security Council's "Eric Polovski" (that is, Eric Pelofsky) being "on board." Another source exclusively told Inner City Press that in the Security Council's last meeting on Yemen, those raising the mounting humanitarian toll were Venezuela, Chile and New Zealand. Consider again this, to USg Jeff Feltman:
"Dear Jeff,
Before traveling to Jeddah I held two days of meetings with Ansar Allah and GPC in Muscat in which I tried to convince them to improve upon the 10 points which they had submitted to me earlier. This was necessary to respond to concerns in Riyadh that the commitments to the implementation of 2216 were still inadequate and failed to include recognition of the legitimacy of the government.
AA/GPC agreed to a new wording on UNSC resolution 2216 that states unequivocally that they are committed to the full implementation of 2216, (see document attached) with the exception of article which infringe on Yemeni sovereignty and those related to sanctions.
In addition, the new text includes acceptance of the return of the current government for a period of sixty days during which a new government of national unity shall be formed. They also accepted to remove references to counter-terrorism and the Saudi border to which the GoY had objected, as well as the mandatory support by the international community for reconstruction that was in the earlier version. The latter was particularly opposed by KSA and GCC who did not want it to be interpreted as a form of mandatory compensation. Both Ansar Allah and GPC seemed positive and showed considerable flexibility.
My meetings followed two days of meetings between the Ansar Allah and KSA intelligence officers which were also attended by the US, UK and Oman. The discussions focused on possible confidence building measures such as a pullback from border areas in exchanges for a cessation of airstrikes and agreements in which they would cease operations within Saudi Arabia. This was the first time that Ansar Allah have been open to discuss limited and geographically specific agreement. Although they repeated that the return of President Hadi would be unacceptable, they expressed their openness to the return of the government for a limited time. The US Ambassador, Matt Tueller has been keeping me regularly informed of these discussions, which has been most helpful. The confidence building paper proposed by the Houthis to KSA is attached for reference.
Although US officials were disappointed that Saudis had sent relatively junior representatives, they still felt the meetings were positive, largely friendly and a good way for KSA to sound out Ansar Allah’s intentions. Ansar Allah and KSA agreed that there should be further meetings with hopefully more senior representation although no dates were agreed. The meetings unfortunately shed very little new light on KSA’s strategy in the conflict or their willingness to support a negotiated settlement in the near future.
The meetings in Muscat were of course heavily influenced by the military developments in Yemen. The coalition has not been able to make rapid progress since their successes in Aden, Abyan and Shabwa in August. Taiz remains contested and there are reports that Ansar Allah has regained some territory which had been lost in the past week. The coalition’s difficulties moving northward suggest that an assault on Sanaa would likely be difficult and time-consuming than they had previously expected.
The instability and violence which have plagued Aden following its capture is likely also a source of concern. The mostly pro-independence Hiraak fighters are unwilling to cooperate fully with the GoY in attempts to expand northward. This leaves the coalition dependent on ground troops from Islah, Salafi and AQAP related groups, which UAE is reluctant to support.
Conclusion:
I believe, following my discussions in Muscat, that we now have a strong opportunity to obtain a peace deal, and avoid a violent confrontation in Sanaa, for the following three main reasons:
i) The revised paper (attached) is much stronger and contains serious concessions by the H/GPC. It will be difficult, at this stage, to push them towards further concessions.
ii) The recent slower advance of the GoY affiliated forces around Taez and Maarib could also offer another opportunity.
iii) The on-going insecurity and lawlessness in Aden, and the increased visibility of AQAP in Aden region in the aftermath of the liberation of the city by the GoY and Coalition forces, has started to raise serious concerns for UAE, and in some KSA circles.
In light of the above, I have reached the conclusion that we should now move towards a new round of direct talks, two and half months after our first round in Geneva. My recent shuttling has now reached a point whereby it is becoming somewhat transactional with the Special Envoy obtaining a paper from one side and seeking comments/acceptance by the other side. I do not think we can sustain this and I recommend we move to a more strategic phase. I recommend holding this next round of talks in Oman Sultanate as a first choice, which seems to be acceptable to the Omanis and all parties, especially KSA. My second proposed option would be Kuwait, however the Houthis are still hesitant about this potential venue. Ideally, we should aim at holding this meeting before Eid.
My discussions in Jeddah and Riyadh will be explicitly in favour of moving to peace talks phase as opposed to continuing this shuttling around papers/proposals. I have first indications that Abu Ali and Matt Tueller are supportive of this new approach. In this regard, it was important to time my visit to Jeddah before the meeting between King Salman and President Obama tomorrow. Eric Polovski – White House NSC – who was just recently in Muscat is also fully on board on this.
I am conscious that the implementation of this new proposal depends very much on the GoY's openness and the KSA genuine support (and not only on what I am hearing from Abu Ali). But this proposal is also the only way to keep the UN's efforts at the center of the mediation process and to avoid a fatigue among our various stakeholders, especially the H/GPC. This is why I once again need the support of the SG and the P5.
Best regards. Ismail
Muscat Principles for a Solution to the Political Crisis in Yemen
Commitment by all parties to implement relevant UNSC resolutions including resolution 2216, according to an implementation mechanism to be agreed upon, and without infringing on national sovereignty, and with reservations regarding the sanctions against Yemeni citizens.
A permanent and comprehensive cease-fire by all parties with the withdrawal of all armed groups and militias from the cities, according to an agreed mechanism to avoid any security and administrative vacuum along with lifting of the land, sea and air blockade.
Agreement on neutral monitoring instrument in order to verify implementation of the mechanisms mentioned above that will be agreed upon, under the auspices of the United Nations.
To respect international humanitarian law, including the elements relating to the protection of civilians and the release of prisoners and detainees from all parties, including those mentioned in UNSC resolution, and to facilitate humanitarian relief and allow the entry of commercial goods, food, medical supplies, oil derivatives and other essential good without restriction.
Kaled Bahah’s government, formed by consensus, returns and performs its tasks as a caretaker government for a period not extending 60 days, during which a government of national unity is formed, in a way that does not violate the constitution.
To resume and accelerate United Nations-brokered negotiations, according to the UNSC resolution.
All parties are obliged to hand over heavy weapons to the State in accordance with the outcomes of the Comprehensive National Dialogue."
Note: the "Eric Polovski" in the above would seem to be Eric Pelofsky. Just saying.
  On August 7 Inner City Press was informed that as Houthis and Saleh's GPC headed to Oman for consultations on August 8 and 9, the UN's replacement envoy Ismail Ould Cheikh Ahmed was not even initially invited. He had to beg to get included, which after sweating has been allowed, in the run-up to his briefing on August 12 to the Security Council.
 On August 12, Inner City Press asked Yemen Permanent Representative, outside the Council meeting, questions ranging from the destruction of schools and health care facilities in Sa'ada by Saudi airstrikes to when, according to him, the Houthis might be "driven" out of Sa'ana. Video here. He said in a few weeks - and added that the Oman talks were "not UN."
 So how then might the parties negotiate? UN spokesman Stephane Dujarric said Ismail Ould Cheikh Ahmed was headed back to Riyadh. That seems to be his base, where he works from - and for? Watch this site.

  Oman has received murky thanks for France for facilitating the release of a hostage, who was working for the Social Development Fund there. Did Oman pay for France? Or will others be released, as France brought about in Mali?
  On July 28, Inner City Press asked Saudi Arabia's Permanent Representative about Mokha or Mocha; he replied that previous allegations about Saudi airstrikes on Old City Sana'a and on a palace in Aden once used by Queen Elizabeth had been proven untrue. We'll have more on this.
  Inner City Press asked Yemen's representative about the talks in Cairo involving the United Arab Emirates, allies of former president Saleh and, it's said, the US and UK. He replied that the Yemeni government - in exile - deals through formal channels, the GCC or UN.
  He might have been asked, which foreign minister is he reporting to: the one named by Hadi, or the one - his predecesor - named by Bahah? We'll have more on this as well. 
   After publishing its multi-sourced story, Inner City Press on July 22 asked the UN's Associate Spokesperson about new APC and weapons in Aden, and if Ismail Ould Cheikh Ahmed is on vacation. Video here. She replied that she would check - but did not revert with any response either way.
  So on July 23, amid reports that without Cheikh Ahmed or any UN presence talks were occurring about Yemen in Cairo, Inner City Pressasked, here.
  Inner City Press asked the UN where Cheikh Ahmed is. UN Deputy Spokesperson Farhan Haq told Inner City Press that he has been "planning his travels," soon to Riyadh. Yeah, Inner City Press was told by another less constrained but at least as knowledgeable source: planning his future travels while already on vacation. Another source compared it to then UN envoy to Pakistan Jean-Maurice Ripert going on vacation amid national disasters in Pakisan and then losing his post. 
   The buzz in Sana'a, where Hadi has named a governor in exile described as an Islamist, is that Cheikh Ahmed may well have known of the plans to bring in APC and weapons to those fighting the Houthis in Aden, and so "misleadingly" urged a pause. Another compared this to the UN luring out surrendering rebel leaders in Sri Lanka - to their deaths.
  And so from Aden, photographs of brand new light brown vehicles, American-made, brought in. Will they end up in the hands of Al Qaeda?
On July 20, Inner City Press asked UN deputy spokesperson Farhan Haq.
  Back on July 9, UN Secretary General Ban Ki-moon proudly announced a humanitarian pause to start on July 10 at midnight.
  When the supposed pause failed, Inner City Press was told on July 14, it took Ban Ki-moon more than two days to speak with Saudi Arabia, through its foreign and defense ministers. Ban, it was said, was "in the air."
 On July 14, Inner City Press asked Ban's spokesman Stephane Dujarric.here
  The day before on July 13 at the UN noon briefing Inner City Press asked Ban's spokesman  Dujarric why the UN had made another "call" for a pause sound like a commitment to a pause, at least by the Saudi led coalition. Video here.
  Dujarric answered that envoy Ismail Ould Cheikh Ahmed had told the Suadis of his desire for a pause. But that's not what the UN said on July 9.

   Ban was in Addis Ababa for the Financing for Development conference; here are his UN's "messaging" points in the run-up to that conference (and here an Inner City Press story about it; we'll have more). But isn't the UN responsible to say something after a humanitarian pause it announced doesn't happen, and people are killed? 
  It quickly became clear that some of key parties had not been spoken with or agreed; the pause's midnight beginning came and passed amid airstrikes.
  Inner City Press is informed by sources that Ban Ki-moon was urged to not make the dubious pause announcement, including from within the UN's own Department of Political Affairs -- but Ban announced it anyway.
  At best, it was rolling the dice. At worse, on the very day that UN is rightly criticizing itself for making false promises of protection in Srebrenica 20 years ago, in this case Yemenis were told there would be a pause, and some perhaps relied on it, to their detriment. And still the UN had said nothing.
  After the July 9 announcement, Inner City Press asked Ban's spokesman if the Saudis had been spoken with. The answer was, Hadi told the Saudis his position. But did Hadi ever agree to the pause, or just to the conditions set forth in his letter to UN? What of Hadi's responsibilities to the Yemeni people?
Now Saudi Al Arabiya has said Saudi Arabia never received any communication from Hadi to stop airstrikes, here. Someone is lying.
  Where is the UN's replacement envoy Ismail Ould Cheikh Ahmed? Headed to Ethiopia, Ban's spokesman said, to meet with Ban on the sidelines of the Financing for Development conference there. Does IOCA harbor ambitions for another UN system post, or back in his own country? What sort of a track record is this? Watch this site.
 At the July 10 UN noon briefing in New York, Inner City Press asked Ban Ki-moon's spokesman Stephane Dujarric if the UN had spoken with those in Yemen opposing the Houthis but not supporting or in contact with Hadi. Video here. From Dujarric's answer, it seems no such contact has been made.
  So, Inner City Press asked, if such a group fires on the Houthis and they fire back, is the pause over, has it been violated? We'll see what happens.

Back on July 9, Inner City Press asked UN Spokesman Stephane Dujarric, transcript here:
Inner City Press: can you, one, characterize not the communications with Mr. Hadi, but with Saudi Arabia that's running the coalition, the Saudi-led coalition.  And does this mean the Secretary-General's understanding is no airstrikes during this time period, and no further advances or use of heavy weapons by the Houthis?  Does the pause mean no firing? What does it mean to each of those two sides?

Spokesman Dujarric:  What it means is that, if you read the statement, the President… Secretary-General notes that the President, President Hadi, has communicated his acceptance of the pause to the coalition to ensure their support.  A humanitarian pause means no fighting.  It means no bombing.  It means no shooting.  It means no fighting.  It means exactly that:  a humanitarian pause in the fighting that we've seen, to enable our humanitarian colleagues to get the aid to where it's needed, to preposition, and stockpile, and to reach the millions that need it.

Inner City Press:  Right.  But just for example, policing, who's doing policing in these various cities?  Things happen.

Spokesman Dujarric:  Obviously I think… [cross talk] In any area in the country, there is a… there is de facto control and, obviously, there is a need to ensure safety and security.  What we're talking about is a humanitarian pause in the fighting that we've been witnessing for weeks on end now.

Inner City Press:  So just one last thing on this.  So the commitment on airstrikes is through President Hadi to the UN?

Spokesman:  You know, the… [cross talk] Obviously, President Hadi is a critical interlocutor with the coalition.  And as I've said, we've taken note of the fact that he's conveyed to the coalition his acceptance.  We expect everyone involved in this conflict to honor this humanitarian pause.
 On July 7 the UN's Office of the High Commissioner for Human Rights upped its estimate of civilians killed since March 27 to 1,528, adding that one million people have been displaced since the beginning of this round of the conflict. To the Saudi airstrike on UNDP in Khormaksar, Aden, OHCHR added that "IOM’s Migrant Response Centre in Basateen, also in Aden, was struck by a mortar and an airstrike damaged IOM’s office in Harad."
   IOM, as Inner City Press reported, had earlier paused its evacuation by air of those seeking to flee Yemen due to some party, which it left unnamed, demanding information about those fleeing BEFORE the flights could leave. Inner City Press has asked others in the UN about this and has been told IOM should have done the screening after the people were able to flee. IOM refused a direct question about caused it to violate this best practice, then stopped sending the Press any information.
   There are countries, normally vocal about civilian deaths, which are selling military equipment to Saudi Arabia and its Gulf allies. Ban Ki-moon, now in Oslo, is relying entirely on Saudi-selected replacement envoy Ismael Ould Cheikh Ahmed, who was unable to even get the parties in the same room in Geneva, much less reach an agreement. There remain, for now, OHCHR's body counts.
  On June 24, Inner City Press asked the UN's replacement envoy Ismail Ould Cheikh Ahmed about the request by the Houthis and others to meet not with him but with Secretary General Ban Ki-moon, who did not meet with them in Geneva. Transcribed here
  On June 25 Inner City Press asked Ban's deputy spokesperson Farhan Haq to confirm receipt of the letter and if Ban will meet them. Haq said Cheikh Ahmed is the envoy, and Ban's headed to San Francisco. The UN Security Council issued a Press Statement, here.
 Also on June 25, Inner City Press asked new UN aid chief Stephen O'Brien three questions about Yemen: cholera, the destruction of ambulances in Sa'ada and about international staff. Video here.
  O'Brien replied that cholera is a risk; he had no information on WHO it was that destroyed the ambulances in Sa'ada (we can guess.) On international staff, which the UN evacuated earlier, he spoke of a rise from 17 to 70, with the goal of getting to 200. He would not say if they are anywhere in the country outside of Sana'a, citing security. But at least he spoke - the Free UN Coalition for Access thanked him.

Here's from the June 24 stakeout, as fast transcribed by Inner City Press:
Inner City Press: On the parties in Sanaa requesting to meet the Secretary General – what’s your response?
Cheikh Ahmed: "This question was raised during our discussion with the Houthis, the GPC and their allies. The Secretary General had delayed twice his travel in order to be there for the parties. We have sent twice a plane from Sanaa which the delegation from Sana'a could not take..  Therefore the Secretary General had a major engagement, which was the election of the new president of the General Assembly which takes place only once a year , and he had to attend it. But the Secretary General will continue being engaged on this."
  The ceremonial elevation of the President of the GA who will take over in September was not an election at all - no vote was taken.
 Before the meeting, UK Ambassador Matthew Rycroft stopped and told the press of the danger of famine in the country, and of his hope for a Yemen Press Statement from the UNSC, in which the UK is the "penholder" on Yemen.  Periscope video here, replay including on desktop for 24 hours.
 Inner City Press was digging into the letter from political parties IN Yemen, asking for a meeting with Ban Ki-moon, NOT with replacement envoy Cheikh Ahmed. These parties, including but not limited to the Houthis, were delayed in getting to Geneva so that they could not meet with Ban (who while there DID meet with a US-listed Al Qaeda terrorist).
  While some are sure to argue that Ban now meeting with the parties would undercut Cheikh Ahmed, others point out the the underlying resolution speaks of the Secretary General's Good Offices INCLUDING his Envoy. The envoy is not the only game in town - nor, given his lack of disclosure, raised by Inner City Press, should he be. We'll have more on this.

Thursday, December 3, 2015

North Korea UNSC Meeting Requested on Rights, US Says Will Work Quickly, Ban Ki-moon Visit to DPRK Less Likely?



By Matthew Russell Lee

UNITED NATIONS, December 3 -- For the past month there have been rumors, stoked in some cases by the UN, that Secretary General Ban Ki-moon may visit North Korea.

 To some it seemed strange, right after the UN's Third Committee enacted a resolution about human rights in North Korea. What that country might gain from a high level UN visit might be clear -- showing that the resolution didn't mean much -- and some surmise that the Korean Peninsula is increasingly Ban's focus. But what would be in it, from a Ban-to-DPRK visit, for the resolution's proponents?

  On December 3 the Spokesperson for the U.S. Mission to the UN Hagar Chemali issued a statement that “last year in December the UN Security Council convened for the first time in history to discuss the human rights in the Democratic People's Republic of Korea (DPRK). Today, Chile, France, Jordan, Lithuania, Malaysia, New Zealand, Spain, the United Kingdom, and the United States have requested another meeting of the Security Council to examine conditions in DPRK and their effects on international peace and security. As President of the Security Council for the month of December, the United States will now work quickly to schedule this meeting. We will provide additional details as soon as we have them.”

  In the US Mission statement, Ambassador Samantha Power said: “A year ago, the Security Council met for the first time on the widespread and systematic human rights violations being committed by the North Korean government. Having placed the issue on the Security Council’s agenda last year, we believe it is critical for the Council to continue to shine a light on the abuses in North Korea and speak regularly about the DPRK’s human rights situation – and what we can do to change it – for as long as the crimes committed there persist.”

   For now we can say, this would seem to make a Ban Ki-moon visit to DPRK (even) less likely, at last in December. And in January, when Uruguay is set to be UN Security Council president? Watch this site.

Back on November 17 when Ri Hung Sik, Ambassador at-large of the Democratic People's Republic of Korean, held a press conference at the North Korean mission, he said that he had heard nothing, nothing at all, about UN Secretary General Ban Ki-moon visiting North Korea, which Yonhap ascribed to a senior UN source.

Even when asked a leading question about a hypothetical Ban trip, Ri Hung Sik said Ban's UN would have to improve its relations with DPRK. Inner City Press is putting the audio online here, and embedded below.

 Inner City Press ran back to the UN and asked Ban's spokesman Stephane Dujarric, transcript here:

Inner City Press: here was just a press conference at the Democratic People's Republic of Korea (DPRK) mission, and there their minister, Ri Hung Sik, asked about the Secretary-General's possible reported trip, said he's heard nothing about it at all and that there are many rumours on the internet.  He also said that this South Korean national security law that makes it illegal for South Korean citizens to speak positively of the DPRK… that's how he described it… should be looked at by the UN.  So I wanted to know, what is the Secretary-General's view of that law?  And if that's an accurate description, is he bound by it?

Spokesman:  I'm not aware of the law.  As far as Ban Ki-moon, he is the Secretary-General of the United Nations and is doing his duty as such.

   But why did Team Ban play it so coy on Yonhap's report? Now late on November 17, the UN has issued this more specific denial:

"In response to questions asked about a report from Xinhua and the Korean Central News Agency stating that the Secretary-General would be travelling to the Democratic People’s Republic of Korea next week, the Spokesman had the following to say: The Secretary-General will not be travelling to the DPRK next week. He will be in New York most of the week and then travel to Malta for the Commonwealth Summit. From there, he will go to directly to Paris to attend CoP21. The Secretary-General has repeatedly said that he is willing to play any constructive role, including traveling to the DPRK, in an effort to work for peace, stability and dialogue on the Korean Peninsula."

  Before Inner City Press left the DPRK mission on November 17, it asked Ri Hung Sik for his view of UN Special Rapporteur Marzuki Darusman and when or if UN High Commissioner for Human Rights Prince Zeid will visit North Korea.

  Of Darusman, Ri Hung Sik said he met him only once, and that it seems Darusman does not speak his own words, or think his own thoughts. Of Zeid, he said the discussion is of technical cooperation, but no date was given. Video here.

   During the press conference, there was no question, as at a prior DPRK press conference, about Donald Trump...

Ban Ki-moon Reads Answer to Voice of America, Not a Word on Africa, Eyes on the (Nobel) Prize



By Matthew Russell Lee

UNITED NATIONS, December 3 -- When UN Secretary General Ban Ki-moon held a rare question and answer stakeout on Thursday, his spokesman Stephane Dujarric in picking the questions awarded the first one to Voice of America.

 To the softball question, Ban Ki-moon answered by reading from notes. Inner City Press Periscope video here.

  It seemed to many that the question had been given in advance. In fact, VOA and its US government parent, the Broadcasting Board of Governors, have previously communicated with Dujarric as revealed by an Inner City Press appeal under the Freedom of Information Act, here. This is how today's UN operates.

  But the theater continued, with questions from the French government's France 24 and finally CBS, also on climate change. Sources close to Ban Ki-moon tell Inner City Press, with some disgust, that the focus is on trying to get a Nobel Prize, either from COP21 or, as a long-shot fall-back, North Korea.

  And so on Africa, which is two-thirds of the UN Security Council's agenda and 2/3 of the UN's work, there was nothing. Inner City Press several times said, loudly, “Question on Burundi?” Then, “Why did you propose only a support team for Burundi, given the deaths and history there?” So much for Rights Up Front.

  Ban coyly said, to the (planted?) Voice of America question, that the next Syria talks might be in New York on December 18. He is rushing to Paris -- eyes on the Prize -- then back to an event at which his UN Censorship Alliance or UN Corruption Association, UNCA, is selling seats next to him for $6,000.

 This after a still unresolved scandal of former President of the General Assembly John Ashe selling access and documents from Ban's Secretariat. This too is today's UN - and the Free UN Coalition for Access is challenging it.

  Ban's three (with CBS, four) question stakeout was called “in lieu of” a UN noon briefing. But the Press' questioning will continue. Watch this site.

Federal Reserve Asks BNC Bancorp for Community Reinvestment Act Info that Fair Finance Watch Requested, Withheld Like Goldman Sachs?


By Matthew R. Lee
NEW YORK, December 3 -- The lack of seriousness in US bank regulation expends from the relatively smaller of mid-sized to the largest banks, with Goldman Sachs the most recent example. 
  A mid-sized bank Inner City Press / Fair Finance Watch is scrutinizing, based on its records, is BNC Bancorp, currently seeking to acquire Southcoast Financial in South Carolina and, prospectively, High Point Bank & Trust.
  There's a problem with this acquisitiveness: BNC is subject to to Compliance Order with the FDIC, which is rare, based on its fair lending record. Fair Finance Watch has raised to the Federal Reserve: 
In the Charleston MSA in 2014 for conventional home purchase loans, BNC made 173 such loans to whites and only SIX to African Americans, and none to Latinos. For refinance loans, it made 68 loans to whites and only ONE to an African American, while denying the applications of African Americans 3.94 times more frequently than those of whites.
  Southcoast in the Charleston MSA in 2014 for conventional home purchase loans made 136 such loans to whites and NONE to African Americans. For refinance loans, Southcase made 35 loans to whites and only TWO to African Americans. To combine these two banks would make them worse.
  In the Greenville MSA in 2013 for home purchase loans, BNC made 117 such loans to whites and only SIX to African Americans, and only seven to Latinos.  For refinance loans, it made 31 loans to whites and only one to an African Americans and none to Latinos.
  BNC admits, as it must, that it is below-market in lending to African Americans, but paradoxically tries to use that the fact that it is subject to a compliance order as its defense to the Fed. 
 To Fair Finance Watch, too. FFW asked to see, in writing, what are BNC's CRA plans going forward. BNC replied that it is "unable to share this with you. It is an internal document that is only shared with our Board of Directors and the FDIC (under the Order)."  FFW has requested a copy of the High Point application.
  Now the Federal Reserve has asked BNC for, among other things, for information about its Community Reinvestment Act compliance, and consumer compliance more generally. Inner City Press is putting the Fed's December 2 Additional Information letter online, here.

  BNC is supposed to send a copy of its response, with this information it already declined to provide, to ICP / FFW. But will it try to withhold it? That seems to be the trend at and encouraged by the Federal Reserve.
Goldman Sachs is trying to speed through Federal Reserve approval to buy $16 billion in insured deposits from GE Capital, and the Fed, documents  released to Inner City Press under the Freedom of Information Act (FOIA) show, is inappropriately bent on helping, including by closing its comment period. 
 Now on December 2, Goldman Sachs has sent Inner City Press a heavily redacted copy of its submission to the Federal Reserve. Inner City Press has put it online, here,and immediately submitted this under FOIA:
"This is a FOIA request for the entirety of the December 2 submission in connection with the 'Application by Goldman Sachs Bank USA for the Acquisition by Purchase and Assumption of Certain Deposit Liabilities and Certain Very Limited Non-Financial Assets of GE Capital Bank,' of which a heavily redacted copy was sent to Inner City Press, as a timely commented, by Goldman Sachs' outside counsel past 10 pm on December 2. On the cover letter, referring to a “Confidential Application,” much is redacted; four exhibits are withheld in full. Given this, ICP contests and is hereby request all of this information.  On Response 1, after the words “Strategic Plan,” there are heavy redactions. Later, Goldman Sachs tries to withhold even what is seeks to acquire. Exhibits A, B, C and D are withheld in full. ICP is requesting all of them."
  Inner City Press / Fair Finance Watch also immediately commented on this to the Federal Reserve.
 On November 19, Goldman Sachs submitted a purported reply to the Federal Reserve, stating among other things that "Certain Comment Letters express concern with the contact between GS Bank and Board staff prior to GS Bank submitting the Application. GS Bank respectfully submits that the contact was both appropriate and ordinary in the context of the Board’s own guidance on pre-filing communications.11 Additionally, the allegations of contact are not germane to the scope of the statutory factors set forth for Board consideration under the Bank Merger Act."
  The 2012 Fed letter Goldman Sachs cites was meant to benefit smaller banks - and did not envision Additional Information letters before the public was even notified of the proposal. The misuse of small bank "regulatory relief" by the likes of Goldman Sachs casts new light of legislative riders being considered for the US spending bill due December 11.
 Going forward, KeyCorp is trying to buy First Niagara, and NY Community Bank wants to buy Astoria; there will be opposition
  As to Goldman Sachs, Inner City Press / Fair Finance Watch filed a supplement comment on October 30 including Goldman's new and troubling settlement with the NYS Department of Financial Services regarding a former Federal Reserve employee impermissibly using Fed information for them. Public hearings and an extension of the comment period are needed.
 As detailed below, the Federal Reserve's General Counsel Scott Alvarez solicitiously agreed to weekend phone calls with Goldman's outside council Rodgin "Rodge" Cohen at Sullivan & Cromwell, and the Fed submitted its "Additional Information" request to Goldman in July, a full month before any application was submitted or the deal publicly announced.
  Thus there was no way for the public to be involved in the Fed's review, which is required by the Bank Merger Act (and the Administrative Procedures Act). The Fed began trying to essentially pre-approve some applications with a 2012 letter to banks, here - but it said no major issues could be addressed this way, and the interchanged would be subject to FOIA.
  In this case, though, where Inner City Press submitted its FOIA request as soon as it became aware of Goldman's GE proposal and application, none of the information would have been available until after the comment period was set to close on September. It has been extended to October 30, due to requests from ICP and other NCRC members, but the Fed is still withholding portions of its communication with Goldman in the face of the FOIA Appeal Inner City Press immediately filed. (ICP has also submitted a timely additional comment on these issues.)
  Inner City Press has previously litigated FOIA requests with the Fed and won, at least in part, for example in obtaining subprime lending information the Fed wanted to withhold, here.  But this should not be necessary in order for the public to have this basic information, during the comment period. Will members of Congress and other chime in? Watch this site.
  This process began by overbroad withholding of basic parts of Goldman's application, click here to view, whichGoldman in an October 14 submission to the Fed, here, says has been cured (it has not been).
  Now the Federal Reserve has belatedly responded to Inner City Press / Fair Finance Watch's September 2 FOIA request, with some of its internal documents, many heavily redacted. FOIA letter hereFOIA documents released to ICP here, and embedded below.
 While Inner City Press is appealing, even as released the documents show that Goldman Sachs through its law firm Sullivan & Cromwell reached out to Fed General Counsel Scott Alvarez in May 2015 about the transaction, and was largely able to vet it with the Fed's staff by July, even receiving an "additional information" request before any application was filed.
  Since the public cannot comment or ask questions before a transaction is announced, this "pre-review" by the Fed in essence cuts public review and transparency out of the process. The Fed's rules against ex-parte communications can't be triggered before there is an application. But should Fed review be held, and apparently completed, before there is any public notice?
  The documents Inner City Press has obtained under FOIA show that on May 14 and May 18, Goldman Sachs and its outside counsel Rodgin "Rodge" Cohen of Sullivan & Cromwell told the Fed and its General Counsel Scott Alvarez of their plans for GE Capital Bank.
 On May 28, the Fed met with Goldman which presented a "deck" of information about "Project Apple," much of it still redacted as provided to Inner City Press (which is appealing under FOIA).
  As precedents, Goldman Sachs cited Capital One - ING and RBC - City National (see below). 
 This was followed by a May 29, 2015 letter from "Rodge" to the Fed's Scott Alvarez, asking for confidential treatment of everything including the letter, and including from any Governmental inquiry. (Page 28 of FOIA response to ICP.) A similar letter was submitted by Cohen on June 16, attaching a letter the Fed has redacted in full from Goldman Sachs' Esta E. Stecher.
  Scott Alvarez took the conversation onto the telephone, not subject to FOIA, on June 16. His accompanying e-mails, as redacted, only say "Thanks! Scott."
 On June 26, the Fed' Alison Thro wrote that "Rodgin Cohen was in today briefly to discuss, among other things, GS’s plans to acquire the deposits of GE’s ILC. He asked what the next steps might be." What were those "other things"?
 On July 13, the Fed sent Cohen a "request for additional information concerning the proposal by GS Bank to purchase certain assets and assume the deposit liabilities of GE Capital Bank."
  A request for additional information is usually what the Fed sends a bank or bank holding company after it has submitted an application; a commenter would get a copy. Here, the Fed was pre-reviewing Goldman Sachs' proposal, entirely outside of any public scrutiny. (The later public questions are as if by rote: the fix was already in.)
  On Friday, July 17 the Fed's Thomas Baxter wrote to Scott Alvarez that the transaction would be public announced the next Monday -- AFTER the Fed's "additional information request" -- based on a long voicemail from Harvey Schwartz of Goldman Sachs. (Page 59 of FOIA response to ICP). Alvarez was on the phone with "Esta of GA and Rodge Cohen."
  Alvarez said he was willing to talk with Goldman Sachs on Sunday, July 19. Cohen had written to Alvarez:
"In view of the various communications on Friday and the intended announcement of the deposit assumption transaction on Monday, GS believes that it must decide over this weekend whether it can proceed as scheduled and, as a matter of fairness and transparency, what it can tell GE. As we have discussed, this transaction appears to be a centerpiece of the GE restructuring. We would therefore most appreciate the opportunity to have a conference call as soon as possible over the weekend to obtain as much clarity as possible as to timing and other relevant matters.
We apologize for intruding into your weekend and thank you your consideration of this request." (Page 65 of FOIA response.)
   The reference to "fairness and transparency" was apparently without irony. But Goldman stood the Fed up. 
  But this announcement was postponed. Alvarez wrote on July 20 that "Rodge just sent a note that GS wants to postpone signing the deal with GE and the announcement for 2 to 3 weeks." More review continued, outside of public scrutiny. Alvarez made himself available on Sunday, July 26. But to no avail. 
 The deal was publicly announced on August 13 and Goldman Sachs on August 18 submitted the apparently pre-approved application. Inner City Press / Fair Finance Watch submitted a comment and FOIA request (delayed until now); the end of the FOIA response has a redacted reaction to the "public comment." Now others have commented and a campaign has begun. But has the Fed already made up its mind?

 On October 20, the Federal Reserve asked Goldman Sachs five questions, but not on the predatory lending issues raised:
"October 20, 2015  This letter relates to the proposal by Goldman Sachs Bank USA (“GS Bank”), New York, New York, to assume certain deposits and acquire certain assets of GE Capital Bank (“GE Bank”), Holladay, Utah, pursuant to section 18(c) of the Federal Deposit Insurance Act. Based on staff’s review of the current record, the following additional information is requested. Please provide responses to all of the following questions, including those in the confidential annex. Please provide relevant supporting documentation as appropriate. Further information may be required as staff continues its review of the proposal. 
1. Explain how the proposed acquisition of GE Bank’s retail deposit platform is consistent with GS Bank’s 2015-2016 Strategic Plan (“Strategic Plan”) and specifically which parts of the Strategic Plan the proposed acquisition would facilitate. Also, explain the aforementioned in the context to GS Bank’s ongoing business plans. Provide a copy of the Strategic Plan. 
2. Discuss how GS Bank’s level and composition of assets and funding would change over the next three years. Provide a table that depicts the asset and funding types and respective amounts for years ending in 2016, 2017, and 2018. In addition, provide annual balance sheet and income statement projections for 2016, 2017, and 2018. 
3. Discuss how GS Bank’s customer base would change over the next three years. 
4. Provide a description of the general backgrounds, and roles and responsibilities of the GE Bank employees to be hired by GS Bank. 
5. Indicate the approximate number of retail accounts to be acquired from GE Bank and a general description of the types of accounts. Provide an estimated number of retail accounts that GS Bank expects to have by year-end 2016, 2017, and 2018."
  Inner City Press still had its pending Freedom of Information Act request; Fair Finance Watch and others, including NCRC, asked the Fed to extend its comment period, which has now been done, until October 30, with the Fed's FOIA response to Inner City Press due on October 16. But as of October 17, no response from the Fed, despite this letter:
"Re:       Freedom of Information Act Request No. F-2015-0336

Dear Mr. Lee,

On September 2, 2015, the Board of Governors (“Board”) received your electronic message dated September 2, pursuant to the Freedom of Information Act (“FOIA”), 5 U.S.C. § 552, for the entirely of the “Application by Goldman Sachs Bank USA for the Acquisition by Purchase and Assumption of Certain Deposit Liabilities and Certain Very Limited Non-Financial Assets of GE Capital Bank,” and for all records reflecting FRS communications with Goldman Sachs for the past twelve (12) months. On September 3 and September 9, the Board provided you with the public portions of the application.

Pursuant to section (a)(6)(B)(i) of the FOIA, we are extending the period for our response until October 16, 2015, in order to consult with two or more components of the Board having a substantial interest in the determination of the request.

If a determination can be made before October 16, 2015, we will respond to you promptly.  It is our policy to process FOIA requests as quickly as possible while ensuring that we disclose the requested information to the fullest extent of the law.

Very truly yours,

/signed/

Jeanne M. McLaughlin
Manager, Freedom of Information Office"
 But even by October 16, no response from the Fed. Only this from Goldman Sachs, only snail-mailed by its counsel:

 On October 13 Inner City Press published the Federal Reserve's communications with the CIT Group's outside counsel, which shows how the release of public documents is allowed by the Fed to be delayed. CIT made disingenuous requests for confidential treatment of information that could not be withheld, without any repercussion. They were rewarded with FOIA appeal denials by Fed Governor Jay Powell; now Goldman is trying to withhold information that should be public. Will there be any repercussion or accountability? Watch this site.

 After requests from Fair Finance Watch, NCRC and other NCRC members, the Federal Reserve belatedly responded:
 Comments regarding this application must be received..  on or before October 30, 2015."
  Just last week, the Fed told Inner City Press a comment it submitted on Goldman Sachs, with new Home Mortgage Disclosure Act data, was "untimely" --

"Dear Mr. Matthew Lee, Executive Director Inner City Press/Fair Finance Watch

We acknowledge receipt on September 22, 2015 of your email dated September 22, 2015  ("Comment Letter"), commenting on the application filed by Goldman Sachs Bank USA... The public comment period for this application ended on September 19, 2015. Since your Comment Letter was received after the end of the public comment period, it will not be made a part of the record of this application unless the Board in its sole discretion determines to consider your late comments. However, you previously submitted timely comments that have been made part of the application record that the Board will consider."
 Now it must be. Inner City Press made a similar request to the New York State Department of Financial Services and on September 25, some information was released -- not enough -- and the NYS comment period was extended for 30 days. 
 NYSDFS Senior Attorney George Bogdan wrote:
"Dear Mr. Matthew Lee: Your FOIL request has been granted in part. My response letter and 2 Goldman Sachs documents are attached to this e mail. Also note that the comment period for the Goldman Sachs application has been extended by 30 days. An official notice for the extension will be posted online in the DFS Weekly Bulletin for the week ending September 25, 2015."
  While Inner City Press prepares a FOIL appeal, why hasn't the Federal Reserve even ruled on its FOIA request, and extended the comment period like its state counterpart? We'll have more on this.
  On September 22, 2015, the Federal Reserve belatedly released the 2014 Home Mortgage Disclosure Act data. A quick review of the lending of Goldman Sachs Bank USA in the New York City Metropolitan Statistical Area shows the Goldman Sachs focus which should require publish hearings in this case. 
  Fair Finance Watch, hours after the data was released, has commented to the Federal Reserve at the highest level that "in the New York City MSA in 2014, for conventional home purchase loans (Table 4-2), Goldman Sachs Bank USA made 45 such loans to whites, only two to African Americans and only one to a Latino. For refinance loans (Table 4-3), Goldman Sachs Bank USA made 16 loans to whites and NONE to African American or Latinos. This is inconsistent with the demographics of the New York City MSA and with other lenders' records; it further militate for the timely requested public hearings."
  Goldman Sachs has purported to respond to the comments of Inner City Press / Fair Finance Watch by releasing a small amount of the withheld information, and arguing that what the wider Goldman Sachs does cannot or will no be considered by the Federal Reserve on this Bank Merger Act application by Goldman Sachs Bank. We've put Goldman Sachs' response online, here. It says:
“FFW states that the audio released by examiner Ms. Carmen Segara requires an extension of the comment period and a public hearing... GS Bank believes the issue is outside the scope of the statutory factors for Board consideration under the Bank Merger Act... Goldman Sachs Bank USA ('GS Bank') hereby submits its response to the three comment letters, submitted on September 2, September 3 and September 9, 2015 (the 'Comment Letters'), by the Inner City Press's Fair Finance Watch ('FFW')....
"FFW makes accusations of 'predatory practices' in the 'mortgage field' and 'municipal finance,' and states that there are a number of compliance settlements that must be reviewed in connection with the Application. FFW references several articles related to lawsuits, settlements and other events, all but one of which involve Goldman Sachs but not GS Bank. GS Bank respectfully submits that such comments are not substantiated by specific arguments or facts. GS Bank notes that none of the articles relate to GS Bank itself, and believes these issues are outside the scope of the statutory factors for Board consideration under the Bank Merger Act.”
  Goldman Sachs is arguing that the acts of a parent company cannot be considered when its bank applies to buy ($16 billion) in insured deposits, an absurd argument. FFW has submitted another comment to the Fed, including that 
"ICP has received by mail from Goldman Sachs' counsel a purported response which claims that issues ranging from conflict of interest and under-regulation by the FRB (evidenced for example by the audio leaked by whistleblower Carmen Segarra) is not cognizable under the Bank Merger Act - an absurd argument. The FRB would be the decision maker, therefore such issues must be addressed.

 "Goldman Sachs cavalierly states that since it withdrew some of its indefensible requests for confidential treatment of its application, that issues is resolved. It is not - too much is still being withheld. Significantly, Goldman Sachs has offered no explanation of the specious requests for confidential treatment it made, denying commenters access to information during the comment period. As others now argue, the comment period would be extended and hearing held."
  Inner City Press will be covering this wider National (Community Reinvestment Coalition) protest, in which it joins; it has also submitted more comments to the New York State regulator, in a proceeding currently slated to come to a head on September 28, the first day of the UN General Assembly debate.

 As Inner City Press exposed last month, Royal Bank of Canada jumped the gun and began doing business with City National Bank without any Federal Reserve approval (see Los Angeles Times, here.)
 Now, even as New York regulators says their comment period on Goldman Sachs' GE Capital proposal extends at least through September 28, Goldman has published fine print notices in the New York Post and a newspaper in Utah saying the Federal Reserve will stop listening on September 19.
  Really? After the Fed made Goldman Sachs a bank holding company with no public comment period at all, so Goldman could get a bail-out? After the Fed's coziness with Goldman Sachs was again demonstrated, by the audio taped by then-Fed examiner Carmen Segarra?
  Inner City Press immediately submitted a Freedom of Information Act request for all of Goldman Sachs' GE Capital application and related records. The Federal Reserve has provided a heavily redacted copy, on which Inner City Press / Fair Finance Watch has commented to the FRB in Washington:
"Among many other things, Goldman Sachs believes it can withhold the volume of deposits it seeks to acquire from GE Capital Bank, WHAT is seeks to acquire (and what not to acquire) from GE Capital Bank, its number of employees in Utah, the contact people on its application, the number of non profit organizations it tells the FRB it serves on the board of -- presumptively public -- and even the NAMES of the exhibits it seeks to withhold entirely. This is abusive and unprecedented and the FRB must, in response, have the comment period begin again. Otherwise, applicants only benefit by making absurd and abusive requests for confidential treatment. There is much more to be said, including at the public hearings ICP is requesting, but it is imperative that the Board act on this as quickly as possible."
  
  When Goldman Sachs became a bank holding company literally overnight in 2008, Inner City Press / Fair Finance Watch and others including NCRC asked the Fed how this was done with no public comment period at all

  The answer, it seems, is to be found in the audio leaked by Carmen Segarra of the Federal Reserve, showing further Fed favors for Goldman Sachs.
 With this history, and Goldman's history in predatory lending with Litton Servicing and as an underwriter, see Occupy Wall Street video here, and UN / migration connection here, it seems clear that the Fed must hold public hearings on Goldman Sachs' GE Capital application, when it is filed. 
  But with the Federal Reserve, you can never be too sure, or too careful.
  When Community Bank System of upstate New York filed with the Fed nine answers to questions asked after Inner City Press' challenge, it tried to withhold fully eight of the nine responses. More here.
  Inner City Press immediately filed a Freedom of Information Act request for the whole submission - and even the Federal Reserve saw through Community Bank System's absurdly -- and tellingly -- overbroad withholding, releasing all but one part of one of the eight withheld responses. But since then, all the Fed has done is seek a mere antitrust control commitment.
  Here's is the Federal Reserve's letter to Inner City Press granting most of its FOIA request:


We'll have more on this.
Background: The largest bank merger recently proposed, that of Royal Bank of Canada and affluent-focused Los Angeles-based City National Bank, has since April been the subject of a Community Reinvestment Act challenge by Fair Finance Watch.
  The LA Times has reported on the "letter from the Fed [which] asks the banks to respond to questions raised in written comments by [FFW]. Spokesmen for the banks declined to comment.... Fair Finance Watch, a New York advocacy group for minorities, questioned a deal between the banks in a June 11 comment letter to the Fed."
  Inner City Press first put that Fed letter online, here; then Canada's National / Financial Post reported without credit it had "obtained" it. 
  By contrast, in the pending proposal of Community Bank System - Oneida, the Syracuse Post-Standard disclosedthat "Inner City Press forwarded the letter to news outlets. Some of the Fed's questions focus on whether Community could improperly control matters at Oneida in advance of the acquisition. Community is working on Fed's questions, said Hal Wentworth, Community's senior vice president for retail banking."
  One common theme is that non-control (and therefore antitrust) laws are being violated. One difference is that Community Bank System does comment to the media -- if only to blame the messenger -- while larger RBC and CNB do not. Arrogance?
 On Community Bank System's blaming the messenger, FFW has commented to the Fed that it will "will comment again when Community Bank System I has provided a copy of its response to the FRS' questions of July 13. Beyond the CRA and impermissible “control” questions raised therein, we wish at this time to raise the issues that, in a public response to ICP's comments, Community Bank System's SVP for retail banking said the following, in a prepared statement no less:
'In a statement today, Hal Wentworth, Community's senior vice president for retail banking, said that Inner City Press is not a local group and pointed out that letter was the only one filed on the Oneida deal. "This activist does not do business with either Oneida or Community Bank."'
If it would be inappropriate for Community Bank System to comment on or disclose information about its customers, in this context the same applies to the above-quoted, which, separately, is reminiscent of human rights abusing countries emphasizing where the rights groups who study and report on them are based."

   Now Community Bank System is trying to withhold eight of its nine responses; Inner City Press is challenging this under the Freedom of Information Act, comparing Community Bank System's outrageous withholding at the Fed with other banks, and with Community Bank System's to the OCC, more here.

IMF Answers Inner City Press on Burundi, Program Off Track, & Zambia, No Request, Like Sri Lanka



By Matthew Russell Lee

UNITED NATIONS, December 3 -- When the International Monetary Fund held is biweekly briefing on December 3, Inner City Press submitted a number of questions, leading with Burundi and how much the IMF projects the economy will contract, given the crisis triggered by Pierre Nkurunziza's third term.

   IMF spokesperson Gerry Rice read out Inner City Press's Burundi question (and its question on Zambia, below), then said the following as to Burundi, audio here:

“In terms of the outlook in Burundi, it's effected by the decline in economic activity there and the . withdrawal of donor support. Confidence in the economy has been weakened by the political climate and adverse security developments. The growth rate in Burundi, which we had initially projected 5% in 2015, is now estimated at minus 4.1% in real terms.... In the current environment, completion of the 7th and the 8th review under our program there is not possible and as such, Burundi's program with the IMF, which is an ECF arrangement, is now off track.”

  Inner City Press had also asked, on Zambia, it is reported that the IMF “proposed a $1 billion facility which the president had turned down. A sticking point for the president was the insistence by the IMF that government commit to drastic reductions in expenditure, particularly on road construction.” What is the IMF's response?

   Rice said that no program has been “formally” requested, but that the Zambian authorities committed to “internal consultations.” Inner City Press had asked about Sri Lanka, and the same “no formal request yet” answer was given.Audio here.
 Inner City Press also asked about Malawi and, lastly, Ghana; more on this to follow.

On October 29, Inner City Press asked IMF spokesperson Rice “in Jamaica, the National Democratic Movement has blamed the IMF for the country's 'health-care system becoming a national disgrace.' What is the IMF's response?”

  Rice during the IMF's embargoed briefing read out this question, audio here, and said he does not agree, that Jamaica's 2015-16 budget includes an increase for the Ministry of Health. Audio of full answer here.

  The IMF left unanswered, for now, Inner City Press' question about Antigua and Barbuda, below; there will be more about Dominica.

 The IMF, it seems, should be more responsive: the Gleaner for example opines that “in 2014, Jamaica paid $138 million more to the IMF than it received from it. We are constantly being told Jamaica passed the IMF test. Look at the punitive primary surplus imposed on Jamaica. At 7.5%, it is way above what is being asked of any other country in the IMF program. It is 4% for Cyprus, 3% for Ireland, 3% for Greece, 3% for Portugal and a puny 1% for Ukraine. One has to wonder why Jamaica is being treated this way.”

  Here are two other questions Inner City Press submitted on October 29, still without answer:

On Antigua & Barbuda, in light of recent comments by IMF Mission Chief Arnold McIntyre, what is the IMF's view of and comment on the information in the US FBI's charge sheet and indictment of Antigua's former ambassador (and former UN PGA) John Ashe, particularly with regard to corruption in the country?

In light of the UN Special Rapporteur's report on human rights (non) compliance by the World Bank, presented this week at the UN, please summarize how the IMF considers the human rights impacts on its decisions.

  We'll have more on this.

  Back on July 8 when the International Monetary Fund released reviews and papers about the United States, complete with support of the Dodd Frank Act and mentions of anti money laundering protection Inner City Press asked about the proposal to raise the definition of Systemically Important Financial Institution from $50 billion up to $500 billion and if tight AML strictures are to blame for cutting off remittances to Somalia.

  Aditya Narain, IMF mission chief for the Financial Sector Assessment Program and deputy director, Monetary and Capital Markets department, told Inner City Press that the IMF believes such definition should give predictability, but should be based on risk and not necessarily only asset size.

  Narain told Inner City Press, "On the first one, our general belief is that supervisory approaches should be risk based, and therefore the materiality and proportionality of institutions should be taken into account for to develop supervisory frameworks. At the same time, we also recognize that it’s important to have some clear rules, regarding a unit, in this case size of institutions, because not only does it set a baseline of expectations, but it also provides a useful framework for people to anchor their expectations on. So that’s why, in a sense we would agree that it’s important to make these approaches risk based and therefore not dependent on size alone. I should add also, that our only political ideology is financial stability, for the purpose of this exercise.

  But will this be used FOR the Senator Richard Shelby draft bill?

  On remittances, Aditya Narain said it is an important question but one that the IMF is dealing with in other venues; it apparently wasn't raised to the US during this process. Why not?

 Narain told Inner City Press, "On the regulatory question, this is an issue which is being discussed in several forums where the IMF has been participating, and this is an issue not just for the US, although it has been most discussed in the context of the US, but the effects of the AML on remittances and the result, the stringent adherence to standards has led to a concern more globally that might be affecting the flow of remittances to those jurisdictions... where such remittances and the channels through which they flow are more important. We have not discussed this... there is work ongoing in the Fund, including in collaboration with other institutions like the World Bank... and we expect to be able to have more information on this in a few months time."

   In the embargoed media conference call, two questions in a row went to the Financial Times, which opined that the IMF report takes the side of the Democratic Party. The IMF disagreed. The IMF said, in writing, “As the epicenter of the global financial crisis that began in 2008, the United States passed a major law in 2010, the Dodd-Frank Act, to reform its financial system. Officials need to complete the rulemaking under the law, while parts of reform agenda face legislative proposals to water them down.”

   Central Banking asked two questions and Reuters one, on federal insurance regulation.  Watch this site.