The Labor of LIBOR; Coal Company Not Energized by Obama’s New EPA Policies; Disgraced Bitcoin-er Busted

Don’t bank on it…

Image courtesy of iosphere/FreeDigitalPhotos.net

Image courtesy of iosphere/FreeDigitalPhotos.net

From the most hallowed banking institutions of UBS and Citigroup, disgraced banker Thomas Hayes will now make his way to the halls of a correctional institution, all thanks to his role in the LIBOR scandal. On trial in the UK, Hayes pleaded not guilty, although jurors felt otherwise and now gets to spend the next fourteen years in prison contemplating his misdeeds. The U.S. already charged Hayes back in 2012 for his misdeeds at UBS and the Royal Bank of Scotland and a number of banks already had to cough up $9 billion in penalties over their involvement in rigging the benchmarks. Hayes was found guilty on all 8 counts of conspiracy to defraud. And it’s not everyday a trader gets convicted for rigging rates on the London Interbank Offered Rates. In fact, Hayes has the dubious distinction of becoming the first person to be convicted in the scandal, which makes sense, since he was apparently the ringleader for more than a dozen other brokers and traders who participated in messing with global rates for mortgages, loans and credit cards just so that they could profit. Those misdeeds affected some $350 trillion in global financial markets. Including ours. Talk about rude.

So un-coal…

Image courtesy of dan/FreeDigitalPhotos.net

Image courtesy of dan/FreeDigitalPhotos.net

Battered and broken is just one way to describe the coal industry as President Obama just announced the latest EPA policies which are supposedly going to reduce greenhouse gas emissions 30% by 2030. And of course that is splendid news. Just not for Alpha Natural Resources who made its own announcement today: bankruptcy. The natural gas boom combined with the new EPA rules have dealt quite the blow to the second biggest coal producer. While the company has over $10 billion in assets with around 8,000 employees, it also needs to ditch some $3.3 billion in debt. The once powerful coal supplier had to close more than 80 mines since 2011 as the shale boom began to take effect. And who can blame shale? After all, it is a cheaper, less polluting energy source.

Bit-fraud…

Image courtesy of Victor Habbick/FreeDigitalPhotos.net

Image courtesy of Victor Habbick/FreeDigitalPhotos.net

Mark Karpeles, the disgraced head of collapsed Tokyo bitcoin exchange, Mt. Gox, has, un-shockingly, been arrested in Japan on suspicion of (gasp) fraud. Who would have thought. Apparently, Karpeles falsified documents and manipulated the computer system over thirty times in an effort to fatten up his bank account by about a million bucks. If the 30 year old Karpeles is found guilty, he might just become pen pals (no pen-pun intended) with Thomas Hayes, except the French-born Karpeles would be idling his incarcerated says in Japan. If you recall, 850,000 bit coins – equal to about $480 million at the time –  went missing under Karpeles’ watch. But wouldn’t ya know it, 200,000 bit coins were subsequently recovered by Karpeles, who must have remembered where he had apparently misplaced them. As for the remaining missing cyber-currency, well, Karpeles conveniently blames the theft on a “bug” from a cyber-attack. You don’t say…

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Microsoft Cuts Even More Jobs; Greece Banking on Another Bailout; Barclays Boots its Chie

NO-kia…

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

Image courtesy of Stuart Miles/FreeDigitalPhotos.net

It’s not exactly a good day at Microsoft today  (or Greece, for that matter but we’ll get to that a bit later). The tech firm just announced that 7,800 more layoffs are coming down the pike, on top of the 18,000 layoffs the company announced last year. It seems the Windows maker just isn’t at the forefront of the latest tech era and its hitting the company in its portfolio. Microsoft had already sold off its online advertising business to AOL but a lot of their latest ills are courtesy of its $7.2 billion acquisition of Nokia. As luck would have it, that not-so-little purchase to make headway into the smartphone market wasn’t all that smart. Microsoft now has plans to write down $7.6 billion on the Nokia unit. The company just couldn’t seem to make strides against the reigning competition from Apple’s iPhone and Google’s Android. Microsoft’s smartphone market share was just an abysmal 3% – a major letdown from a company who had so often dominated tech realms.

Here we go again…

Image courtesy of africa/FreeDigitalPhotos.net

Image courtesy of africa/FreeDigitalPhotos.net

Well, Greece finally whipped out its big grand plan which definitely loses points for lack of originality. Like a teenager who doesn’t seem to want to learn from his or her mistakes, the cash-strapped, debt-infused country has asked for yet another bailout. This time around, Greece asked for a three year bailout from the annoyed eurozone’s rescue funds. However, Greece is promising to implement pension and tax reforms. To be fair, no real details were actually given. Hmmm. Greek officials said they would map out a “comprehensive and specific reform agenda” by tomorrow. We’ll see about that. Now all those eurozone finance ministers have to decide if they’re going to give in to Greece. And while Greece’s Prime Minister, Alexis Tsipras, wants to reach a deal with creditors that needs to be fair on both sides, he also warned that his peeps need to be on board. Otherwise, no dice. What Tsipras and the fine people of Greece don’t dig are austerity measures. Any whiff of austerity and chances are no deal will be reached and more fiscal chaos will ensue. U.S. Treasury Secretary Jacob Lew finally commented on the situation stressing that Europe ought to help Greece restructure its debt. Which would be super-great because maybe then stocks all over the world will finally cooperate and go up instead of taking bad financial cues from Greece.

The skills to pay the bills…

Image courtesy of biosphere/FreeDigitalPhotos.net

Image courtesy of biosphere/FreeDigitalPhotos.net

Major drama coming out of Barclays today, where Chief Executive Antony Watkins received an unwelcome surprise – he got the boot. Fired. Shown the door. In a statement, Barclays, which has seen its share of scandal in the last few years, said “a new set of skills” was needed for the individual who will take the reins at the company. Ouch. Apparently, officials at the bank thought Watkins wasn’t doing enough to dig Barclays out of its scandal-laden pit. Board chairman, John McFarlane, will serve as interim chief until a more permanent replacement can be found –  one who presumably possesses that much desired skill-set. Barclays, Britain’s biggest bank, is currently staring down the wrong end of fines and investigations over its role and manipulation of London Interbank Offered Rate (LIBOR) as well as its other un-flattering role in foreign exchange rate manipulation. Nice, huh?