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| root cause is in the exposure/risk on balance sheet, so don't shoot the messenger!Mark to market accounting was responsible for nearly killing off the huge US insurer AIG, according to its former chief executive Martin Sullivan. Testifying to a committee of Congress on the financial crisis Sullivan quoted market disruption and ‘multiple action by multiple parties’ ,according to the Financial Times. But, he insisted the most telling factor was the accounting rule which said meant ‘trillions’ in assets could suddenly see ‘unrealised’ losses running into tens of billions. However, the FT reports that former SEC chief accountant Lynn Turner said blaming the accounting was like blaming a thermometer for a fever. The FT quotes Mr Turner saying: ‘I don’t think the company was ever honest with the investors about the potential magnitude of these things, and that is what is grossly missing here.’ On Monday it was revealed that PricewaterhouseCoopers would pay $97.5 in damages to shareholders of AIG. The firm had been named in a law suit by three state pension funds. | | |
| All orang asli in Perak to get land titlesBy Clara Chooi, The Star IPOH: All 10,000 orang asli (aborigine) families in Perak will soon receive titles to their own individual plots of land. Senior state executive council member Datuk Ngeh Koo Ham said a two-level committee had been formed to handle the matter and expedite the distribution of the titles for a total of 32,537ha (80,400 acres) of land. “We want to get this done as soon as possible. It is pointless just sitting around discussing things,” he said during a meeting held to form the committee at the State Secetariat here on Tuesday. The first level of the committee comprises state government representatives, including government department officials, while the second level comprises orang asli organisations and non-governmental organisations, which will discuss the matter with the indigenous families. “Once the committee brings this information down to the orang asli and explain to them what we plan to do, we hope to start giving out the titles as soon as possible,” he said. Ngeh said the state government planned to give each family a 3.3ha piece of land, of which 0.1ha would go for the construction their homes, 0.8ha for a fruit orchard and 2.4ha for the plantation of commercial crops. “We are doing this to empower the orang asli and help them change their social economic status. “By giving them land, they can increase their productivity and income levels and at the same time, we can alleviate the number of hardcore poor in Perak,” he said. Ngeh added that the orang asli only owned 0.03% of land titles in the country. “We hope that this will be a turning point for the people. “We know we may hit snags along the way but we ... need to take the first step,” he said. Ngeh added that despite their small population, the indigenous community actually contributed to half the number of hardcore poor in Perak. “But now, if they persevere and work hard on their lands, they can earn at least between RM2,000 and RM3,000 monthly,” he said. | | |
| Letter from Mr. Shariibuu, the late Altantunya's father. Altantuya Shariibuu’s dad, Stev, has emailed SLoone his statement (through his lawyer in Mongolia) regarding RPK’s trial and detention under the ISA. The image below is his own handwriting. The translation copy I receive in his mail says: I understand, Mr. Raja Petra has good personal character and has a good reputation and runs humanitarian activity. I understand that the below issues were directly connected with murder case of my daughter: - Who did arrange visa issue for my daughter while she visited in French? - Who was attending in the trip to French and what did they do? If it could make clear those issues, they would understand every thing. Why is there so much force and influence in the case? Because there was a serious issue. Thus they destroyed my daughter. Unfortunately, they pressed down Mr.Raja Petra’s statement. I think this issue needs to get attention from international human right organizations. He (RPK) shouldn’t be a victim of politic for justice. It would be justice if they release Mr.Raja Petra. As we are, all Mongolian worry for him and his justice, we lack of information on truth and situation. Signed: Mongolian citizen:Shaariibuu Setev 06.Oct.2008 (Thank you to SLoone for the translation) 
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| not sure who wrote this, but this is an alternative view of current events (read with caution)Watch Khairy, the plot and the
Wayang Kulit
Part 1
Pak Lah is smart and very sly. He is not going to give up the PM
to Najib while under pressure. It is a known fact he does not like Najib
and only tolerates him . He chose Najib as a DPM because he has dirt on Najib.
Do not spend to much time reading into PaK Lah but watch Khairy's
wheeling and dealing with Anwar. Khairy is throwing the support behind Anwar
and to stay relevant. He will not show his hand but have his people
support Anwar. In the mean time as soon as Umno is out of power he will
consolidate his power in UMNO by instigating a witch hunt. Najib and the
others who plotted against Pak Lah will be surrendered to Anwar with evidence
to proscute them in court. These senior UMNO plotters when convicted and
will be bar from political office. He will rebuild UMNO and will have
UMNO allied with PR has a stragetic partner. MCA/MIC/Gerakan and other BN
parties will be left high and dry if by this time they have not gone over to
PR. Khairy knows once he has made UMNO strong and he can bid for power in
PR as a stragetic partner. This is the only way for Khairy to survive.
Do not write off Khairy. Read the Anwar's PR staements that the BN
MPs do not necessary need to cross over to support the PR government.
This way Khairy keeps UMNO intact and mold into a progressive party in
the mold of PKR. UMNO will remain a Bumiputra party but the UMNO constitution
will be change to bar racial politics and statements by UMNO members. In
2 or 3 years Khairy will made a bid for PM with the blessing of PR. He
will prove that UMNO without the racist will be a assest to PR and the people.
Pak Lah in next fews days is going to get the King to call Anwar to show prove
that he has the backing of the majority of the MPs. What Pak Lah is
saying in the media is a wayang kulit to keep his enemies in UMNO off balance.
This is the only way to say his legacy and history will judge him as a
man who place the country before himself.
Part 2
The story or you can call the script continues as I left it with the
parting words "More to Come"
As the days get neared to the suppose target day, the haze suddenly stars to clear
as the plot / script becomes clearer.
Anwar Ibrahim as say very famously "why wouldn't Abdullah Badawi want to
meet me, He is my friend". This statement is to assure Abdullah Badawi
that he, Anwar has not ditched the plan agreed by both of them.
Abdullah Badawi when he says something but means the opposite. He says no
Emergency session of Parliament is planed but what he is try to say is that
there will be a emergency session of Parliament in the next few days. Abdullah
knows that for UMNO to survive, it has to be reformed, getting rid of the self
serving UMNO warlords and be in the opposition and reflect on it self.
When UMNO is in the opposition, it will be easy to rid the party of the
Warlords. Simple reason is to hand them over to the PR government with
evidence for prosecution.
Khairy is the Middle and point man between Anwar and Abdullah. Remember
when he returned Anwar's passport personally to Anwar on his release from
prison. Khairy knows if he wants to succeed, he must get rid of the obstacles
in UMNO. Down the line after 2 to 3 years UMNO in the opposition, UMNO
been reformed will be invited by PR to be a partner. Anwar will be PM for
another 9 years and when he reaches 70, Khairy will be the PM by virtue of the
largest party in PR. These 9 years Khairy will work to polish his image
and the public will be grateful that he was instrumental in placing Anwar in
power and getting rid of racial politics. He will prove to be an even
better PM that Anwar.
Najib , ooh Poor Najib. He has already got a smell on the plot (But too
late) and had to call of his visit to the Middle East.
Najib knows that Anwar with Abdullah's backing have sent the letter to
the King to seek an audience with the King. Najib is trying to foil the
plan. Once Anwar has the audience, Abdullah will have Parliament in
session. Najib is no longer the Defense Minister (Abdullah's master
stoke) and can not call on the Armed Forces to effect a coup d-eta. Najib
is working hard now to marshal the BN MPs and trying to prevent the defections.
All is lost now for Najib. It is too late for him as he has already been
checkmate by Khairy. Najib must be wondering about his fate either in
exile, prison or in the hangman's noose.
Syed Hamid has played the dumb Interior minister to the hilt and deserves an
Oscar. He has as per plan made UMNO and the government unpopular with the
tactic approval of Abdullah / Khairy. When the BN government falls, no
pity will be felt for UMNO. Khairy knows he needs to get rid of the 40 to
60 years old warlord if he wants to be PM in 9 years time.
Mahathir, poor Mahathir, he was sucked into the plan unknowingly by Abdullah
and Khairy. He made the Government very unpopular when he criticized the
Government. Including washing the dirty laundry in the public. He is a
has been and would not be of any use now to anybody. He is an old man
past his glory days.
Muyuddin is just a stooge of Najib to force Abdullah out as a PM. This is
only role and he has no more value except spending time in Prison.
For the other warlords I will come back to them in regards to their fate in my
follow up which will be soon and also the role of the bloggers in the rise of
Anwar and the defeat on Najib.
Part 3
DECIDING AND TURNING FACTOR AND REVERASAL OF NAJIB'S POLITICAL
FORTUNES.
I am sorry I have to skip the write up on the fate of the UMNO (Busy) Warlords
and the Bloggers factor in the rise of Anwar and the downfall of Najib.
The intense infighting in UMNO for the Premiership is one of the most telling
factors as of why Taib Mahmud Chief Minister has swung his support behind
Anwar. You have may or may have not notice that Taib Mahmud is been
silent. He is very much pissed off at the attitude of UMNO warlords. He state
and Sabah (UMNO) hold the balance of power. He
has not been consulted as who will succeed Abdullah. As a senior BN
leader and the second biggest party fraction in BN, he is not getting the due
respect from UMNO. Taib have already sounded Anwar that he will have the
support of PBB MPs and some of the otherSarawak BN MPs. It is too late
for Najib now to reconcile Taib to his side. Remember it is also
important to keep you friends and partners informed on important decisions.
Taib knows that his days are getting fewer and fewer as he will not live
long enough. His family influence is Sarawak may die with him and PBB and
its allies will be wiped of in the next Sarawak
state elections. His son's and relatives political fortunes and their riches
and wealth must be safe guarded. Hence the alliances with Anwar will safe
guard his legacy and empire in Sarawak.
Majority of MCA MPs are in a dilemma and state of shock. They have been
told point blank by Anwar that he does not need their MPs to have a majority in
parliament. Anwar has offered them a place in PR, provide DAP approves it
and no special favors. MCA as a party will not be accepted in PR because
DAP is already championing the Chinese rights. A few MPs will join DAP and PKR
as not to miss out on their political careers.
MIC is a no no and have not been offered a place in PR nor their MPs. MIC will
die a natural death and no CPR can help them to live.
Gerakan is already a has been party and the party will die and natural death
once the MPs join PKR
UMNO is in a very serious coma state. It will remain so until the end of the
year and will come out of coma once Khairy is the leader.
Najib is having his people camping day and night out at the istana and having
the King followed. Can not do much as Syed Hamid has told the police to stand
down and make sure the security of the King.
The King has already informed the fellow brother Sultans of Anwar's letter. The
is going to be an emergency meeting tonight or tomorrow of the sultans and
Agung. This could be a Video conference meeting or a formal meeting to
discuss Anwar's letter. Abdullah will attend the meeting to lend his
support to Anwar's letter.
Abdullah is a good and sincere man and tried to make the country better. The
UMNO warlords did not let him. His legacy for Malaysiawas to be reforms
of the police, judiciary, economy, Education, racial and religious rights of
all races and religions.
Anwar is not on a standby mode and within an earshot once the King summons him.
He is very heavily protected as talk in the streets is that his life is
in danger. Knowing Anwar he will laugh out this threat.
More and more MPs are getting into the Anwar band wagon. They all know it
is credible that he has the numbers.
Tonight is going to be a long night and tomorrow is going to be even longer.
Khairy is busy as a beaver and fine tuning the necessary details and
arrangements to have a smooth change over from Abdullah to Anwar as a PM.
The police and immigration has been given a list of people who are bared from
leaving the country and Bank Negara has a list to inform the banks to freeze
the accounts of the names mentioned.
WOOOW ! ITS GOING TO BE A BIG PARTY AND HIP HIP HOORAY TO
CHAOS FOR NEXT 2 WEEKS AND THEN TO NORMALCY. | | |
| PwC chief urges accountants to help prevent future financial crisesPwC's Powell says accountants have to be part of the solution to the credit crunch Written by Damian Wild Accountancy Age, 01 Oct 2008 Precisely how we do this I honestly don’t know – but if we are to learn from recent events we need to find an answer. Ian Powell PricewaterhouseCoopers New PricewaterhouseCoopers UK chairman Ian Powell has used his first major speech to urge accountants to contribute to fixing the work financial system by creating an early warning system for future crises. Speaking at the firm’s building public trust awards in London on Monday night, Powell said dealing with systemic risk in unregulated entities had to be a priority for regulators. ‘The real challenge is to improve our regulations and not just add more,’ he said. ‘Regulatory change is an opportunity to simplify, stream line and look at the real costs and benefits.’ Powell urged further change. ‘We need a better mechanism to flag problems, to highlight the symptoms,’ he said. ‘I want the leading accounting firms to be willing to join the top table, with business leaders, with regulators, central bankers, credit rating agencies and others to identify ways of creating an early warning system. Precisely how we do this I honestly don’t know – but if we are to learn from recent events we need to find an answer.’ Anglo American plc and Amlin plc won the overall categories for the FTSE 100 and FTSE 250 respectively, while a new award for sustainability reporting went to Marks and Spencer Group plc. The people reporting award was won by Vodafone, reporting of executive remuneration by Aviva and tax reporting by Kazakhmys. The Highways Agency took the public sector award.
Counter effort begins to halt mark to market suspension planThink tank makes plea for rejection of plans to suspend mark to market as part of rescue package for US economy Written by Gavin Hinks Accountancy Age, 01 Oct 2008 investor confidence would be undermined by efforts designed to mask the actual value of financial assets at a given point in time Centre for Audit Quality US think tank the Centre for Audit Quality has urged Congress to abandon efforts to suspend mark to market accounting as the proposal continues to play a central role in rescue plans for the economy in Washington. The Hank Paulson plan reiterates powers of the US financial watchdog to suspend mark to market while an alternative rescue package from a Republican minority group calls directly for suspension. A CAQ letter addressed to members of Congress says: ‘The principles of mark to market accounting are rooted in the fundamental virtue of transparency and are central to informed market decisions and efficient allocation of capital. ‘In our view, investor confidence would be undermined by efforts designed to mask the actual value of financial assets at a given point in time.’ CAQ insists that mark to market did not cause the crisis but contributed to knowledge about its severity. Yesterday, shadow Tory chancellor George Osborne called for the suspension of mark to market for three months making him the latest politician to believe an accounting standard is a contributing factor to the financial crisis. Mark to market has, however, received much support from regulators around the world. The politicisation of the requirement has gathered pace as business leaders in ailing institutions have intensified their calls for a change to the rule. Currently both the US standard setter FASB, and its internantional counterpart, the IASB, have projects underway reviewing fair value, though both have stood by the valuation method emphatically so far. However, expert observers believe the issue lays in disclosure and consolidation of the balance sheet rather than valuation under fair value.
Tories call for UK fair value suspension Conservatives jump on fair value bandwagon after US congress leads the way earlier this week Written by David Jetuah Accountancy Age, 30 Sep 2008 The Conservative Party has echoed US moves to scrap mark-to-market accounting in a shock move this afternoon. Fair value accounting would be dropped for three months under the radical plans. David Cameron's party said that it would push the government to suspend the 'mark-to-market pricing within banks that causes a vicious cycle of write-downs and falls in asset values.' Under the propsals, banks should price their assets at the value they expect to get out of them over the long term, which would help abate the downward spiral. 'In normal times [mark to market] is sensible as it forces banks to value their assets against an objective price. But when the market is clearly not functioning properly, it can create a vicious circle as falls in valuations trigger falls in valuations of other assets too. Asset prices can fail to reflect the long-term reality.' The value banks attribute to their own assets would also have to be audited, the Conservative added. 'Banks must continue to reflect the value of their assets. Suspending marking to market will help us get through the crisis.' | | |
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