Thursday, June 14, 2007

A number of reports confirm that Michael Moore’s forthcoming documentary has been leaked onto Peer-to-peer networks. This is the second pre-release leak in a month of a film from Lionsgate Studios.

The movie, SiCKO contrasts the U.S. healthcare system with that of several other countries and includes a trip to Cuba for which Moore is being investigated. The investigation by the Office of Foreign Assets Control within the United States Department of the Treasury is looking into whether Moore has violated United States embargo against Cuba, which has been in effect since 1962 and codified in 1992.

Moore has, according to agency reports, stored a copy of the original film in Canada as a result of the Federal investigation by the Treasury department. His concern is that an attempt may be made to confiscate the section of the film shot in Cuba.

According to Associated Press, David Boies, attorney for Michael Moore, believes the targeting of Moore for his unauthorised trip to Cuba may be the result of the criticism of the current administration in such films as Fahrenheit 9/11.

Tuesday Moore was seen at two pre-release screenings of the movie in Sacramento, California. His audiences were a group of politicians and a number of nurses, each attending their own screening.

The movie opens with a cold statistic that approximately 45 million Americans are without healthcare insurance. It continues by giving examples of people with healthcare insurance who have been denied all or part of their treatment for technical reasons. As well as getting thousands of responses from people who had problems with their insurance he received information from people working inside Health maintenance organizations and ex-employees who claim the system is set up to provide the minimum care and the maximum profit to the company.

The segment of the film that triggered the Federal investigation is his trip to Cuba with a number of people who relate their experiences with healthcare. Among these are several volunteer workers who worked at ground zero following the September 11 attacks on the World Trade Center. These people claim to have been refused aid from the fund set up for 9/11 workers and were thus unable to afford their required treatment. After an attempt to obtain treatment at Guantanamo Bay detention facility – which Moore described as the only place on U.S. soil where there is “socialised medicine” – they seek out a hospital in Havana. All are checked and treated free of charge. One woman discovers that an inhaler for her respiratory problems costs approximately five cents in Cuba compared to 120 dollars in the U.S.

Health insurance companies, speaking through their trade group America’s Health Insurance Plans (AHIP), are critical of the film, which calls for healthcare similar to that of Canada, France, or the UK. “We need a uniquely American solution in which the public and private sectors work together to make sure that everyone has high-quality, affordable healthcare,” said Karen Ignagni, president of AHIP, on Wednesday.

The film is scheduled for wide release in the U.S. and Canada on June 29, 2007.

Friday, December 12, 2008

Top broker and Wall Street adviser Bernard L. Madoff, aged 70, was arrested and charged by the FBI on Thursday with a single count of securities fraud, also known as stock fraud and investment fraud. He allegedly told senior employees of his firm on Wednesday that his $50 billion business “is all just one big lie” and that it was “basically, a giant Ponzi scheme (since at least 2005).” Mr. Madoff faces up to 20 years imprisonment and a fine of up to $5 million. FBI agent Theodore Cacioppi said Mr. Madoff’s investment advisory business had “deceived investors by operating a securities business in which he traded and lost investor money, and then paid certain investors purported returns on investment with the principal received from other, different investors, which resulted in investors’ losses of approximately $50 billion dollars.”

The former chairman of the Nasdaq Stock Market is also the founder and primary owner of Bernard L. Madoff Investment Securities LLC, the closely-held market-making firm he launched in 1960. The firm is one of the top market maker firms on Wall Street. He founded his family firm with an initial investment of $5,000, after attending Hofstra University Law School. He saved the money earned from a job lifeguarding at Rockaway Beach in Queens and a part time job installing underground sprinkler systems.

A force in Wall Street trading for nearly 50 years, he has been active in the National Association of Securities Dealers (NASD), a self-regulatory organization for the U.S. securities industry. His firm was one of the five most active firms in the development of the NASDAQ, having been known for “paying for order flow,” in other word paying a broker to execute a customer’s order through Madoff. He argued that the payment to the broker did not alter the price that the customer received. He ran the investment advisory as a secretive business, however.

Dan Horwitz, counsel of Mr. Madoff, in an interview, said that “he is a longstanding leader in the financial-services industry with an unblemished record; he is a person of integrity; he intends to fight to get through this unfortunate event.” Mr. Madoff was released on his own recognizance on the same day of his arrest, after his 2 sons turned him in, and posting $10 million bail secured by his Manhattan apartment. Without entering any plea, the Court set the preliminary hearing for January 12.

Madoff’s hedge fund scheme may rank among the biggest fraud in history. When former energy trading giant Enron filed for bankruptcy in 2001, one of the largest at the time, it had $63.4 billion in assets. The scheme would dwarf past Ponzis, and it would further be nearly five times the telecommunication company WorldCom fraud and bankruptcy proceedings in 2002.

The Securities and Exchange Commission filed a separate civil suit on Thursday against Bernard L. Madoff Investment Securities and its eponymous founder Mr. Madoff. It was docketed as “U.S. v. Madoff,” 08-MAG-02735, by the U.S. District Court for the Southern District of New York (Manhattan). SEC, New York associate director of enforcement, Andrew M. Calamari, asked the judge to issue seizure orders on the firm and its assets, and appoint a receiver. The SEC pleads, among others, that “it was an ongoing $50 billion swindle; our complaint alleges a stunning fraud that appears to be of epic proportions.” It further accused the defendant of “paying returns to certain investors out of the principal received from other, different investors” for years. Madoff’s hedge fund business had previously claimed to have served between 11 and 25 clients and had $17.1 billion in assets under management. But virtually all of the assets were missing.

United States District Court for the Southern District of New York Louis L. Stanton on Thursday appointed Lee Richards, a Manhattan lawyer, as the firm’s receiver. A hearing is set for Friday, for a ruling on the SEC’s petition to grant plenary powers to the receiver over the entire firm, and an absolute asset sequestration.

Doug Kass, president of hedge fund Seabreeze Partners Management said that “this is a major blow to confidence that is already shattered — anyone on the fence will probably try to take their money out.”

Friday, April 9, 2010

British Airways (BA) and the Spanish airline Iberia have signed a merger deal, which will create one of the largest air carrier groups in the world.

The two announced the merger yesterday, and said that the deal, which has been expected for a long time, is to be implemented by the end of 2010. The move will make a group with a market value of US$8 billion. The deal has been negotiated since July 2008.

Under the plan, both companies keep their own brands and operations, but will be owned by International Airlines Group, a new holding company. It will be listed in London, but taxed in Spain.

The airlines believe the merger will save $530 million annually. In February, BA reported a loss of $102.4 million for the final three quarters of 2009, whilst Iberia posted an operating loss of $629 million.

Meanwhile, investors in BA will receive an IAG share for every BA share they own, and stockholders in Iberia 1.0205 shares for each share in the Spanish airline; thus, BA shareholders will take 55% of IAG.

“The merged company will provide customers with a larger combined network,” commented BA chief executive Willie Walsh. “It will also have greater potential for further growth by optimising the dual hubs of London and Madrid and providing continued investment in new products and services.”

Meanwhile, Iberia chief executive Antonio Vázquez remarked: “This is an important step in creating one of the world’s leading global airlines that will be better equipped to compete with other major airlines and participate in future industry consolidation.”

Independent aviation specialist James Halstead said he believed the merger was necessary for BA to remain competitive amongst other European air carriers. “BA’s unique position at Heathrow could help it survive for a short while, but in the long run it needs more than just Heathrow. The main point of the Iberia deal is to be able to cut costs and put the combined company in the position that Air France-KLM and Lufthansa are already in,” he said, quoted by The Independent.