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Side Deals
A rather bizarre bit of information came to my attention today regarding
an old story. Source? Wikileaks, (as usual). Go back in time two years
and recall the blowup between the United States and Switzerland. The
issue? Banking secrecy.
The US DOJ sued UBS for the American account holders. This created a
conflict with Swiss Banking secrecy laws. UBS was caught in the middle.
The settlement was a government to government face to face conflict.
UBS’s stock took it on the chin as a result.
Keep in mind that this was taking place while the global markets and
economies were in a tailspin. Guy’s like Bernanke/Paulson later said
things like, “I wasn’t sure we would make it”. The DOJ was
hammering not only a major global bank, they were adding to the
instability in a critical European financial center.
If you read my blogs you will see that I am no defender of banking
secrecy. I’ve taken a ton of flack for that. That said, the timing of
this could not have been worse. While all stops were being pulled to put
a plug in the economic dike, here was this separate story that was
creating another crack. I asked myself a number of times during this
drama, “Why now?”I wrote about a critical meeting on March 8, 2009. I voiced my concerns:
If this does take place this week it confirms that DOJ is moving ahead without consideration to the fact that the global financial system is currently very vulnerable.
The following comes today from NZZ, a leading Swiss newspaper. They, in turn, rely on information from a Norwegian publication Aftenposten.
When the final deal between USA/UBS/CH was cut in 09 there were two side deals that the US required:
(I) Two prisoners held in Guantanamo were transferred to Switzerland.
(II) A company registered to do business in Switzerland called Colenco was forced to suspend operations. What was Colenco doing? Recycling uranium for Iran. (a contract to do it in Iran, not Switzerland.).
Leuthard (former Economics Minister) stressed that these two activities are linked to the conclusion of a political settlement on the case of the Swiss bank UBS.
I’m all for standing up to the “Bad boys”. But in this case the war on
terror got mixed up with a much different matter. At a very inconvenient
time.
Just a question. Do all big international deals that we read about (today with China for example) have side deals that we don’t know about?
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Also, it makes no sense that the USG would frustrate a business plan of a paramount banking house.
Though, my opinion is that a nuclear Iran actually contributes, rather than detracts from geo-political stability. ..until !! Still, Israel and the US are hardly poster-boys for securing a climate of security and order. First thing Brmmer did when he got off the plane was to declare all Iraqi law null and void...ande never put anything in it's place... home away from home, eh.
US corporations are moving abroad, the Federal govt. cannot hold the States together. What you see in Iraq is going to happen in the US. The Banks are already doing it. The situation is painful - when you think how much we have lost over the years. When the next financial crisis hits - in weeks - europe will initiate a new Marshall-plan, it's the cover they're looking for. At that point, you really want to be monitoring large European industrial concerns. ..I mean, maybe..
Bruce, thanks for continuing to cover Swiss finance. I am one of the ones who has given you much flack for your lack of appreciation of the importance of the rights to financial privacy and private property.
When this entire affair was peaking, there was a long debate in Switzerland about whether any change to the 1930's laws concerning banking secrecy would have to be put to the people for a referendum. It would have been voted down and would have delayed the release of the 4500 names until after the IRS/DOJ ultimatum. To the majority of the press and the pundits it was clear that a referendum was required, and I was shocked when the Bundesrat announced that they had the power and that they would simly give up those 4500 names. It was clearly a sign that the Swiss government was going to start behaving like the US and EU governments: ignore the law and do what they pleased. At "least" in the case of Switzerland, the Bundesrat was doing this due to foreign extortion while the US and the EU pull this stuff simply because they can.
You are correct, it is fascinating that the Obama administration was so obsessed that they would add further risk to a rapidly crumbling financial system. And the reason was because of the typical Obama obsession with "optics". Just like with the Clinton administration, the Obama administration is constantly spinning and obsessing over "optics". This is what rulers do when their power is based on lies. These guys were willing to put the democracy of a foreign state at risk as well, just for some stupid "optics" like the Uigurs. They have also done it with Honduras, Columbia and many other countries. The Obama administration is reckless, arrogant, and very dangerous.
Colenco actually belongs to a Swedish company and the affair would have solved itself, the Swiss government was simply waiting for evidence. The real issue was the politics of Guantanamo.
Bruce - great post!
It's pretty clear that there was a side deal with the Swiss. Remember all the TARP borrowing UBS did. Also, the Fed lent them money and lent the SNB money too during the crisis.
The US collected an IOU, that's all.
or is the Walmart in Bejing going to sell rice with 20% less of everything?
Did Hu Jintao show Obama the Queen of Diamonds?
Excerpt from: “A Dirty List” June 4 2008
“Colenco Power Corporation
Colenco Power Corporation is a Swiss company that is involved with the Yeywa dam project in Burma which has been associated with numerous human rights abuses. Dam projects in Burma have been associated with forced relocations, extrajudicial killings, forced labour, death by labour and torture.
The Chief Executive
Colenco Power Engineering Ltd.
Hydropower Plants
Department Täfernstrasse
26 CH-5405
Baden
Switzerland
Tel: +41 56 483 1717
Fax: +41 56 483 1799 "
Source:
http://cruciality.wordpress.com/2008/06/04/a-dirty-list-2/
--
WIKILEAKS DOCs
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S E C R E T BERN 000273
DEPT FOR ISN/RA (J.ALLEN-CLOSE), NEA/IR, EUR/PRA, AND EUR/AGS (Y.SAINT-ANDRE), NSC FOR JEFF HOVENIER, DEPT OF JUSTICE BRUCE SWARTZ
E.O. 12958: DECL: 06/30/2019 TAGS: IR, MNUC, PARM, PHUM, PREL, PTER, KWAC, ECON, ETRD, EINV, SZ SUBJECT: SWITZERLAND SHUTTING DOWN COLENCOS BUSINESS WITH IRAN
REF: 08 BERN 464
Classified By: CDA L.Carter for reasons 1.4(b) and (d)
1. (S) Summary: Swiss Minister for Economics and Trade Doris Leuthard called CDA in to advise that the Swiss Federal Councilors had decided in a special session to shut down Swedish firm Colencos commercial activities in Iran. The Minister also reaffirmed the commitment of the Swiss government to accept several detainees from Guantanamo Bay for resettlement in Switzerland. Minister Leuthard made it clear that these two activities were linked to the achievement of a political settlement in the case of Swiss banking giant, UBS. The US court is scheduled to hear arguments in the civil case on July 13 and it is clear that the GOS hopes a settlement can be reached before the hearing date. End Summary.
2. (S) Minister Leuthard began the meeting by describing todays special session of the Federal Council which was focused on what steps the Swiss government could take to advance a political solution of the UBS case. The Council considered action on the Colenco case, long advocated by the USG and a major topic during the February meeting between Secretary Clinton and Foreign Minister Calmy Rey, was one proactive measure the Swiss government could take in this direction. Since action in this case falls under the purview of Minister Leuthard, she was tasked to take immediate action to shut down Colencos operations and to notify the USG. The additional information that the USG experts provided to the GOS on June 25th was pivotal in providing the Swiss with adequate actionable intelligence to make a legal finding that Colenco is violating the sanctions on Iran. Leuthard confirmed that the information we provided tracked with the findings of the Swiss intelligence services. The Swiss now consider that Colenco is not fulfilling their requirements under the dual use provisions of Swiss law. Leuthard also advised that they have notified the Swedish government of their intent to go forward with official action against Colenco.
3. (S) Colenco was not able to adequately defend their activities in Iran by a deadline set by the Swiss government. Leuthard stated that Colenco will be formally told to cease their activities in Iran on July 2. She further opined that should the government or other conditions relating to proliferation change for the better in Iran, Colenco may be able to resume their activities in the future. She emphasized that this shut-down was a "suspension". She promised to provide us with a written copy of the Colenco decision.
4. (S) Leuthard then turned the topic of discussion to Swiss willingness to accept several detainees from Guatanamo for resettlement and encouraged us to provide as much data as possible quickly so that the Swiss could move forward. CDA advised that more bio and medical data had been received today and was being delivered via a separate channel.
5. (S) At this point, Leuthard emphasized that these two actions were "elements showing that Switzerland is committed to resolving all issues between our countries." To bring home the point, she reiterated that this resolve extended especially to finding a political solution to the UBS case.
CARTER
Just a question. Do all big international deals that we read about (today with China for example) have side deals that we don’t know about?
Yeah, I'm guessing the Obama/Wu Panda deal has some other strings attached. That's a lot of hoop-lah to go through for just Zoo business.
I still think the Swiss go back to their full-on, secret banking ways in the near future. I'm sympathetic to a lot of BK's arguments against banking secrecy (as I remember them anyway) and God knows we could use less of it in the USA but at some level it's like being for or against revolution...it depends on what you're revolting against.
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I'm just gob smacked, they will stoop to any level to create a massive war with the Iranians.
A war that will do irreparable damage to energy flow to the West, and to China, and to Japan, and create the deepest depression ever … and global FAMINE ... and oh, yeah … WWIII, as we fight to get what energy there is available.
These mongrels are beyond the pale.
Make no mistake, this is a war they want, specifically to take you and me down, our countries, not merely Iran. Iran is almost irrelevant, and not the actual target.
Oh this is just classic!
Pardon my pointing this out but Colenco is a ROTHSCHILD owned company.
Ask yourself; Why is a Rothschild company wanting to assist Iranians, knowingly, to process their uranium, in Iran?
They wouldn't want to create a pretext for war perhaps?
You can't make this shit up!
It's so blatant and oh so utterly evil in its murderous design and intent.
I Googled
and didn't get a single hit.
Looks as if you did make this shit up.
Try Googling:
"Colenco World Bank"
and
"Colenco Rothschild"
And that second one, are you going to tell me didn't check that combination?
Yeah, sure you didn't.
And when you did, you got a page of hits right away, right?
The World Bank is funded by the Rothschilds and its ugly brother the BIS is owned by the Rothschilds.
The World Bank routinely awards Colenco World Bank projects, and Colenco projects are routinely funded by Rothschild financing, as are their numerous consortium suppliers.
It is a Rothschilds operated company, are you blind?
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EDIT#1: I junked you for not doing any homework and for not being honest.
EDIT#2: I looked through your comment history, and sure enough, it was clear you're tribal aligned.
http://www.zerohedge.com/article/slovakia-hates-being-greek-tragedy#comment-883097
Just wish I could junk you again for deception.
I googled "Colenco Rothschild" and there were several hits in german of which I checked 3 out and none of them were of any substance.
Could you please provide some evidence that is "glaubwurdig"?
Sweden’s AF Group acquires Swiss Colenco
AF Group, a Sweden-based consultant in industrial processes, infrastructure, and information technology, has acquired Swiss energy consulting company Colenco AG, which has a major portfolio in hydropower.
AF Group said it paid about 300 million kronor (US$43.5 million) for 100 percent of the shares of Colenco, plus additional payments to a maximum of 100 million kronor (US$14.5 million) to be made based on profits over the next three years.
AF said Colenco brings into the deal about 80 million kronor (US$11.6 million) in cash and cash equivalents and premises valued at 100 million kronor (US$14.5 million). AF said, based on an additional purchase price of about 50 million kronor (US$7.2 million), intangible assets are estimated to total 190 million kronor (US$27.5 million), of which 180 million kronor (US$26 million) is classified as good will.
The Swedish group said it plans to consolidate Colenco into AF’s Process Division beginning in the third quarter of 2007.
Junk this, Nazi filth.
A great comeback and detailed explanation for your deception and dishonesty and your attempt to pretend or insinuate I was wrong, when I'm actually right. This is about a Rothschild operation, processing uranium in Iran, and not wanting to stop.
The Nazis are a long defunct political party from Germany.
You are living very much in the past if you imagine the Nazi party is still around today.
What I am is someone who is anti-Zionist, simply because of an overwhelming abundance of physical and confirmed written evidence that Zionists are undeniably rabid-racists that incessantly go out of their way to ferment war for profit, and advantage that kills millions of unsuspecting people.
And they routinely create financial havoc to collapse and take over whole countries, to enslave their people with debt and steal their possessions, and destroy their futures for a mere Zionist power gain.
Pathetic! .. really ... just pathetic.
So I am very proud to be against that and anyone who dares to admit being one of those vile excuses for a civilized human being.
Cheers :-)
Great post, Bruce. Thank you.
...if you can ever find out.
Good luck.
And yes, it is only the side deals that really matter.
Most public news is PR propaganda. Pay attention to what they aren't saying but rather what they are doing if you can ever find out.
Exacty. Does anyone other than me wonder why in the midst of a financial crisis in early October 2009 the US through NASA chose to bomb the moon looking for ice? Seriously How stupid is that?
Coincidently, there is an earthquake in Chile 2/10, the weather starts to change the very next summer. Drought in Russia, a massive fish kill Jul/Aug 10 in Bolivia, way bigger than some of the recent reports we have seen. Then more wierd weather in Argentina. I guess we were too busy dealing with the oil spill to get that news out.
Later the UN comes out with their position on the alteration of weather.
If it was just to check for ice then why did NASA block out all the images of the bomb landing/impact so noone could see what they were doing. I tried to get a look. I even got on NASA sites thinking maybe I could see it there. It was always blacked out just before the point of impact. Why?
Anyhow my point is we may never know what the US & TPTB are really doing up there. So I guess its up to our wildest imagination since the PR story is total BS.
Pretty horrifying that the Swiss turned over people to a known US torture centre, as was already well-documented at the time. This is horrifying regardless of what those people did or didn't do.
One of the main things needed in this world is some standing on principle by countries, especially as regards issues like torture ... and in general with the fact that the US is a corrupt bully.
Safe havens are needed, especially from the criminal, torturing, murdering American government and its corrupt extortionist bribery-laden sh*thole of a court system.
It was always the merit of the Swiss that they had some of that image, of having some courage and principle, but they have tarnished their integrity and sold it out in recent years, from a series of incidents including this, the Roman Polanski case, and others.
The Swiss will regret their sell-out, even in financial terms, in the long run. The sell-outs will cost them big. People are already not holding assets there because of the bad feeling.
No Swiss bank should ever have had an office on US soil in the first place.
The Swiss marshalled their "citizen's army" once. After spending WW2 profiting from WW2, they mobilized to keep out refugees.
Other Europeans have silly jokes about each other, but nobody likes the Swiss.
"A known US torture centre"? Really?
Prove it.
We don't torture.
True.
Also, our central bank does not print money.
Bennie and Krugman would tell you that the Bureau of Engraving and Printing does the printing.
best. domain. name. ever.
http://www.moneyfactory.gov/
I thought our Fed was the one doing the torturing!
It seems UBS will live to rue the day they stepped foot in the USA. Nothing but a pounding ever since they got off the boat. It does not help that they are a complete joke of an investment bank either. Travesty.