Deutsche Bank in NY court fight with Algosaibi unit
Wed Jul 29, 2009 1:16pm EDT 
* Algosaibi-controlled unit sued by Deutsche Bank
* Dispute over $74.2 million in forex swap
By Grant McCool
http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSN2927405920090729
SNIP
NEW YORK, July 29 (Reuters) – Lawyers for Deutsche Bank (DBKGn.DE) and a subsidiary of Saudi Arabia’s Algosaibi Group are arguing over whether the bank’s claim for $74.2 million in a foreign exchange swap deal belongs in a New York court, according to court papers.

The civil case against The International Banking Corp (TIBC) was adjourned on Monday until Sept. 8 after TIBC lawyers asked New York State Supreme Court Justice Bernard Fried to “dismiss the action for lack of personal jurisdiction.”

A few days after having murdered Mr Hazem Khalid Al-Braikan, CEO financier of Kuwait’s Al-Raya Investment Co (1),
the US of A Securities and Exchange Commission continues to deny the laws of logic.

The SEC accuses Mr Khaled Mohammed Sharif Al Sayed Al Hashemi, a UAE national, of insider trading. (2)

Logic is the science and art of correct thinking.

It is true that access to information may not be as efficient as desired.

The question which arises is whether it is logically possible to deter insider trading significantly.

Moreover, insider trading harms nobody.

The SEC is only envious of Mr Al Hashemi for having made US$458,760 (Dh1.6 million) in illegal profits. (2, again)

Hence, in the Al-Braikan case, the SEC is not happy with having killed Mr Al-Braikan who also did not (who neither did?) harm any soul and the SEC will continue to per-secute his estate. (3)

The SEC which did nothing in the Madoff case,
where many people where harmed,
is now angry at the US of A department of justice in the Stanford probe. (4)

Repeal the SEC now!

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Al-Braikan – no black humour please
Posted by Ivo Cerckel on July 27th, 2009
http://bphouse.com/honest_money/2009/07/27/al-braikan-no-black-humour/

(2)
SEC accuses UAE citizen of insider dealing
By James Drummond in Abu Dhabi
Published: July 28 2009 09:33 | Last updated: July 28 2009 09:33
http://www.ft.com/cms/s/9786f106-7b4d-11de-9772-00144feabdc0,s01=1.html
SNIP
The US Securities and Exchange Commission has named a citizen of the United Arab Emirates in connection with alleged insider dealing, the second such charge of a Gulf national in the past week.
The SEC complaint, filed in Manhattan on Monday, accuses Khaled Mohammed Sharif Al Sayed Al Hashemi of Abu Dhabi of buying 120,000 shares in Nova Chemicals, a petrochemical producer, in February in the run-up to a takeover. Nova was eventually acquired by International Petroleum Investment Company, an Abu Dhabi state investment vehicle, for $2.3bn on 6 July. UNSNIP

(3)
Textron, Harman Case May Not End With Suspect’s Death (Update1)
By David Scheer, Zainab Fattah and Maher Chmaytelli
http://www.bloomberg.com/apps/news?pid=20601103&sid=aJwVmkT9c1pk
SNIP
July 27 (Bloomberg) — The death of Hazem al-Braikan may not halt a U.S. regulatory probe of profits he and Middle Eastern firms allegedly reaped on bogus takeover bids.

(4)
DoJ accused of delaying Stanford probe
By Stacy-Marie Ishmael and Brooke Masters in New York
Published: July 28 2009 20:46 | Last updated: July 29 2009 00:40
http://www.ft.com/cms/s/0/0452a618-7bad-11de-9772-00144feabdc0.html
SNIP
The US Department of Justice delayed a Securities and Exchange Commission investigation into the affairs of alleged fraudster Sir Allen Stanford by at least five months, a report by the inspector-general of the SEC has found.

The Financial Times seems not to be deleting me.

KBC – not hollowing out, just quietly self-immolating
Posted by Gwen Robinson on Jul 27 10:27.
http://ftalphaville.ft.com/blog/2009/07/27/63826/kbc-not-hollowing-out-just-quietly-self-immolating/
SNIP
For now, anyway, the last word should go to Karl Lannoo, who heads the think tank Center for European Policy Studies in Brussels and told the NYT that the KBC saga “has the feel of a Magritte painting“. “This is Belgium’s third-largest bank,” he said of KBC, “and it has had three successive rounds of aid, and they still can’t target the problem.” UNSNIP

Comments

SNIP

1.    Ivo Cerckel Jul 28 14:01

Banksters have no principles. This is called fractional-reserve banking.
http://bphouse.com/honest_money/worthless-digital-liquidity-and-fractional-reserve-banking-are-fraudulent-%e2%80%93-let-the-system-collapse-now/

Banksters accept state aid.

State aid comes from taxation and the difference between tax and theft is that the thief does not come back periodically nor does the thief pretend to be stealing in the public interest.

As a thalidomide monster, I refuse state aid.
http://www.vrijspreker.nl/wp/2009/04/is-het-moreel-aanvaardbaar-om-belastingsgeld-te-aanvaarden/

Why do I have to die as a refugee (from … Belgium) in (cheap) South-East Asia and can banksters not be bankrupted?

Perhaps, both are related?

I know, thalidomide was created by the Nazis, said The Sunday Times, last February.
http://www.timesonline.co.uk/tol/life_and_style/health/article5683577.ece

Who invented irredeemable, at least unbacked, paper money and fractional reserve banking?

By the way, if banksters can commit the crime of fractional-reserve banking and create money out of thin air like the central banksters, how can they ever get into problems?

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

Charts & Numbers has some interesting comments on the death of Mr Hazem Khalid Al-Braikan, CEO financier of Kuwait’s Al-Raya Investment Co
http://chartsandnumbers.com/2009/07/26/indepth-albraikan-and-the-sec/

peteyb says:
July 26, 2009 at 17:44
its an unfortunate incident for sure but lets wait until all the facts are out, i suggest.

Enquiring minds says:
July 26, 2009 at 20:19
What kind of a country releases a murder assessment before a full investigation? On what basis? What proof and who investigated this?
Who says its suicide and on what basis?

As I said, interesting comments!

The more an I reading about this,
and giving some reports of my reading under the post (1)
which I posted before the death
in order to, as peteyb says, ascertain the facts,
the more I get convinced that Al-Braikan did do no harm to any body and was thus prosecuted for a victimless crime.

This happens barely a fortnight after the SEC’s top inspector, Lori Richards, was forced to leave the agency after a year in which her office and the enforcement division was accused of failing to spot Mr Bernard Madoff’s US dollar 65 billion fraud. (2)

And if you didn’t know, Madoff made many victims.

The SEC now also made a victim.

As Enquiring minds says:
Who says its suicide and on what basis?

Here’s one of the latest reports of my reading:

Al-Braikan did no harm to any body.
The SEC is not happy with only having killed him.

The SEC may still sue Al-Braikan’s estate, said Jacob Frenkel, a former SEC lawyer now with Shulman, Rogers, Gandal, Pordy & Ecker PA in Maryland.
“It’s not the same as a criminal matter, where the death of the individual means the government folds its case entirely,” he said. “Because it’s a civil suit, the SEC can still continue its efforts to pursue collecting the alleged ill- gotten gains.”, says Bloomberg  (3)

TO REPEAT
Al-Braikan is the victim of having been suspected by the SEC of having committed a victimless crime.

The SEC did not say that Al-Braikan was making money at the expense of somebody else.

No, the SEC’s only complaint that he made money.

This is envy. (4)

The SEC only wanted “dis-gorge-ment” of ill-gotten gains, says AFP. (5)

“Gorge” in French (6) means “throat”. “Keel” in Dutch, a Germanic language like English, also means “throat”..

I will refrain from black humour.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Al-Braikan versus Madoff
Posted by Ivo Cerckel on July 26th, 2009
http://bphouse.com/honest_money/2009/07/26/al-braikan-versus-madoff/
[if the link does not work, try to copy it and to paste it in your browser.]

(2)
SEC top examiner Richards to leave agency
Reuters – Thursday, July 9
http://asia.news.yahoo.com/rtrs/20090709/tbs-business-us-sec-richards-7318940.html
SNIP
WASHINGTON – The U.S. Securities and Exchange Commission’s top inspector, Lori Richards, is leaving the agency after a year in which her office and the enforcement division was accused of failing to spot Bernard Madoff’s $65 billion fraud.

(3)
Al-Braikan Dies in Likely Suicide, Official Says (Update3)
By Zainab Fattah and Maher Chmaytelli
July 26 (Bloomberg)
http://www.bloomberg.com/apps/news?pid=20601087&sid=a4.R9HiI25kc

(4)
AYN RAND LEXICON
verbo “Envy/Hatred of the Good for Being the Good”
http://aynrandlexicon.com/lexicon/envy-hatred_of_the_good_for_being_the_good.html
SNIP
Envy is regarded by most people as a petty, superficial emotion and, therefore, it serves as a semihuman cover for so inhuman an emotion that those who feel it seldom dare admit it even to themselves . . . . That emotion is: hatred of the good for being the good.
This hatred is not resentment against some prescribed view of the good with which one does not agree . . . . Hatred of the good for being the good means hatred of that which one regards as good by one’s own (conscious or subconscious) judgment. It means hatred of a person for possessing a value or virtue one regards as desirable. UNSNIP

(5)
Kuwait broker facing US lawsuit found dead
KUWAIT CITY, Jul 26, 2009 (AFP)
http://www.zawya.com/Story.cfm/sidANA20090726T120725ZPUZ39/Kuwait%20Broker%20Facing%20US%20Lawsuit%20Found%20Dead
and
http://www.google.com/hostednews/afp/article/ALeqM5i1FVzPD2lMlfcpaq6tOxh01TZf0A
SNIP
The SEC said it was seeking “a permanent injunction, disgorgement of ill-gotten gains with prejudgment interest, and financial penalties.”

(6)
The etymological origin of  “dis-gorge-ment” is also French
(and thus, in second degree, Latin -
the Latin prefix “dis-” meaning ”apart, separately” or “differently”)
of course.

The US of A Securities and Exchange Commission (SEC) alleges to be entitled to sue Mr Hazem Khalid Al-Braikan, CEO financier of Kuwait’s Al-Raya Investment Co, and three related entities for making bogus bids to manipulate the stock prices of Harman International Industries Inc and Textron Inc.

The SEC says that Al-Braikan profited from amassing large positions in securities, thereby making millions of US of A dollars in trading profits following the dissemination of false news about the two corporations. (1)

At whose expense did Al-Braikan violate SEC rules?

Who lost money?

This happens barely a fortnight after the SEC’s top inspector, Lori Richards, was forced to leave the agency after a year in which her office and the enforcement division was accused of failing to spot Mr Bernard Madoff’s US dollar 65 billion fraud. (2) 

For your information: In the Madoff case, there were victims.

Al-Braikan is suspected of having committed a victimless crime.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
SEC Charges Foreign Trader and Entities in Scheme Occurring Earlier This Week
Agency Obtains Court Order Freezing Several Million Dollars in Trading Accounts
FOR IMMEDIATE RELEASE
2009-169
http://www.sec.gov/news/press/2009/2009-169.htm
SNIP
Washington, D.C., July 23, 2009 — The Securities and Exchange Commission today charged a trader located in Kuwait and three related foreign entities for engaging in an illicit scheme through which they reaped millions of dollars in profits when trading around hoax offers to acquire U.S. companies. The SEC has obtained an emergency court order to freeze more than $5 million in trading profits located in various U.S. accounts in their names.
The SEC filed its charges and obtained the asset freeze within days of the latest hoax offer. The SEC alleges that Hazem Khalid Al-Braikan and the related entities traded around false news of a purported tender offer by a Middle East investment group to acquire Harman International Industries. A phony announcement publicizing the hoax offer was faxed to media outlets on Sunday, July 19, and subsequently reported on the Internet. Harman’s share price climbed more than 40 percent in pre-market trading on Monday, July 20.
+
Additional Materials
Litigation Release No. 21152
SNIP
“This case exemplifies the SEC’s swift and surgical investigative skills and our determination to follow the trail wherever it leads,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. UNSNIP

(2)
SEC top examiner Richards to leave agency
Reuters – Thursday, July 9
http://asia.news.yahoo.com/rtrs/20090709/tbs-business-us-sec-richards-7318940.html
SNIP
WASHINGTON – The U.S. Securities and Exchange Commission’s top inspector, Lori Richards, is leaving the agency after a year in which her office and the enforcement division was accused of failing to spot Bernard Madoff’s $65 billion fraud.

Update 1 links news dissemination with minimum contacts

The US of A Securities and Exchange Commission (SEC) on Thursday charged a Kuwait-based trader and three related foreign firms with making millions of dollars in trading profits following the dissemination of false news about two U.S. companies. (1)

Are we all SEC bureaucrats now? What’s the problem with making millions of dollars in trading profits? Is the SEC jealous?

Do we have to accept exceptions to the freedom of speech?

Is there a conflict between the right to speak freely and other rights held in vastly higher esteem? (2)

Saudi Saad Group conglomerate can be taken to court in the US of A. (3)

Americans, however, can only be taken to court in another US of A state if they “could reasonably expect to be haled into court” in that state, that is, if they have minimum contacts with that other state. (4)

For Saad Group to be taken to a US of A court by the Saudi Algosaibi conglomerate, no contacts are necessary

But since there is no freedom of speech, the US of A Leviathan can do what it pleases and nobody can complain.

By the way, what contacts do that Kuwait-based trader and those three related foreign firms, which are per-secuted by the SEC, have with the US of A?

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
U.S. charges Kuwait trader in false news case
Jul 24, 2009 at 08:44
By Sarah N. Lynch
http://business.maktoob.com/20090000008489/U_S_charges_Kuwait_trader_in_false_news_case/Article.htm?utm_campaign=Day-Newsletter&utm_medium=Main-News4&utm_source=Day-Newsletter&utm_content=

(2)
Walter Block, “Defending the Undefendable”, New York, Fleet Press Corporation, 1976. pp. 80-83

(3)
Saudis rocked by $10 bln lawsuit against tycoon
By Paul Handley (AFP) – 6 days ago
http://www.google.com/hostednews/afp/article/ALeqM5hXqyEB2MbAzzE39ydqhxv8Ur461Q

(4)
From Wikipedia, the free encyclopedia
Minimum contacts is a term used in the United States law of civil procedure to determine when it is appropriate for a court in one state to assert personal jurisdiction over a defendant from another state. The United States Supreme Court has decided a number of cases that have established and refined the principle that it is unfair for a court to assert jurisdiction over a party unless that party’s contacts with the state in which that court sits are such that the party “could reasonably expect to be haled[1] into court” in that state. This jurisdiction must “not offend traditional notions of fair play and substantial justice.” International Shoe Co. v. Washington, 326 U.S. 310 (1945).
http://en.wikipedia.org/wiki/Minimum_contacts

Before the Bank of China can provide honest mortgages in the UK, the Bank of England should provide honest money

From The Times July 25, 2009
Bank of China starts to offer mortgages in the UK
Catherine Boyle http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6727253.ece

1 Comment 
ya ji wrote:
one small step for BOC, one big step towards responsible spending of british
July 25, 2009 1:49 AM BST

Ivo asks:
Will the Bank of China also re-set the examples of only lending funds which have been deposited and of matching maturities?
Will it match 1-year loans to 1-year deposits, and so on? 
Will it arrange its loans and investments to allow for the promises it has made to its depositors?
If so, then ya ji is correct.

The next step should then be taken by the Bank of England.

And this step,
which should in fact be taken by the Bank of England before the Bank of China takes the step of matching maturities,
is to make sterling redeemable into or to have sterling at least backed by real assets such as … gold.

Before the Bank of China can provide honest mortgages in the UK, the Bank of England should provide honest money.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

Banks used to have the right to issue receipts for the gold they held in reserve in warehouse.
This right was taken away from them by the institution of central banks. (1)

Gold sales are therefore down by 30% in the Kingdom of Saudi Arabia. (2)

And the Saudi banks have to raise the provisions
(reserves?
no, they cannot issue receipts for the gold they hold in reserve)
for bad for loan losses. (3) (4)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

NOTES

(1)
Roland Leuschel and Claus Vogt, “Das Greenspan Dossier, Wie die US-Notenbank das Weltwährungssystem gefährdet. Oder: Inflation um jeden Preis”, www.finanzbuchverlag.de, 2006, 3rd ed., p. 299

(2)
Saudi gold sales down 30%
Saudi Arabia: 2 hours, 48 minutes ago
http://www.ameinfo.com/204636.html

(3)
Saudi banks raise loan loss provisions
Saudi Arabia: 4 hours, 27 minutes ago
http://www.ameinfo.com/204612.html

(4)
Kingdom’s banks increase provisions for loan losses
Souhail Karam | Reuters
Thursday 23 July 2009 (30 Rajab 1430)
http://www.arabnews.com/?page=6§ion=0&article=124811&d=23&m=7&y=2009
If the link does not work, try
http://www.arabianbusiness.com/562730-saudi-banks-up-q2-loan-loss-provisions
SNIP
RIYADH: Two large Saudi banks sharply increased second-quarter provisions for loan losses compared to a year ago, official data showed on Wednesday, amid concerns over the solvency of some debt-laden private Saudi firms.

Update 1 links “genus” (1) to intrinsic value

If money does not have intrinsic value, the buyer is devouring the seller’s wealth when he gives something of no value in exchange for the seller’s wealth.

This means that the seller should beware and make sure he receives something of value for the good or service he gives to the buyer.  (2)

Roman law said that “res perit domino” (the thing is lost to owner) but that “genera non pereunt”  (generic goods cannot be lost).

If money is not a generic thing, then it can be lost and the issue of reserve currency can arise.

If money were again a generic thing with intrinsic value, it could not be lost and the issue of reserve currency would never arise.

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

(1)
“Genus” (sort),  genitive “generis”,  is the Latin noun from which the adjective ”generic”  is derived

http://www.archives.nd.edu/cgi-bin/lookup.pl?stem=genus&ending=
genus (1) -eris , n. [birth, descent, origin; race, stock, family, house]; hence [offspring, descendants; sex]; in gen., [class, kind, variety, sort]; in logic, [genus]; of action, etc., [fashion, manner, way].

(2)
“Caveat venditor”  (let the seller beware) is a counter to “caveat emptor”, (let the buyer beware) and suggests that sellers too can be deceived in a market transaction says Wikipedia, verbo  “Caveat emptor”
http://en.wikipedia.org/wiki/Caveat_emptor
where it also says that:
Generally “caveat emptor” is the property law doctrine that controls the sale of real property after the date of closing.

As the article does not mention the jurisdiction, I suppose it’s  the Kingdom of Saudi Arabia. (1)

Why does Algosaibi’s bank not sue Algosaibi in the land of the dollar regime?

No, only Algosaibi (and Bahrain’s ABC) is (are) allowed to sue Saad Group in the said land of the free (so-called land, forcing dollar pegs). (2)

Ivo Cerckel
honestmoney@maktoob.com
http://twitter.com/ivocerckel/

(1)
Mashreq confirms it is suing Algosaibi
Dubai: 1 hour and 31 minutes ago http://www.tradearabia.com/news/newsdetails.asp?Sn=BANK&artid=164715
SNIPS
Dubai-based Mashreq bank confirmed on Tuesday it is suing Ahmad Hamad Algosaibi & Bros (AHAB), one of two Saudi conglomerates involved in a large financial dispute, over alleged irregularities.
+
The Algosaibi lawsuit said Mashreq sued it for $150 million that it does not owe.

(2)
lawsuit vs Saad Group in London demanding dollars
Posted by Ivo Cerckel on July 20th, 2009
http://bphouse.com/honest_money/2009/07/20/lawsuit-vs-saad-group-in-london-demanding-dollars/
[If the link does not work try to copy it and to paste it in your browser]