FROM: U.S. EXPORT IMPORT BANK
Export-Import Bank Chairman Fred P. Hochberg’s Statement on the Bipartisan Trade Priorities and Accountability Act of 2015
Washington, D.C. – Export-Import Bank Chairman and President Fred P. Hochberg issued the following statement today in reaction to the introduction of the Bipartisan Trade Priorities and Accountability Act of 2015:
“Trade promotion legislation is a critical bipartisan tool that will lead to expanded opportunity for U.S. exporters and the millions of American workers whose jobs depend on trade. As Ex-Im Bank pursues its mission of empowering U.S. businesses to take on stiff foreign competition and bring more good-paying jobs to our shores—and as more and more American small businesses join the ranks of direct exporters—TPA will ensure that the U.S. continues to have a strong voice in writing the rules of the road where global trade is concerned. With critical trade agreements such as the Trans-Pacific Partnership on the horizon, TPA will be essential to ensuring that the U.S. continues to compete on a level playing field, and that American workers will be able to seize the opportunities made possible by trade for generations to come.”
ABOUT EX-IM BANK:
Ex-Im Bank is an independent federal agency that supports and maintains U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. The Bank provides a variety of financing mechanisms, including working capital guarantees and export credit insurance, to promote the sale of U.S. goods and services abroad. Ninety percent of its transactions directly serve American small businesses.
In fiscal year 2014, Ex-Im Bank approved $20.5 billion in total authorizations. These authorizations supported an estimated $27.5 billion in U.S. export sales, as well as approximately 164,000 American jobs in communities across the country.
Thursday, April 16, 2015
SECRETARY KERRY'S STATEMENT REGARDING TRADE PROMOTION AUTHORITY LEGISLATION
FROM: U.S. STATE DEPARTMENT
Bipartisan Congressional Trade Priorities and Accountability Act of 2015
Press Statement
John Kerry
Secretary of State
Washington, DC
April 16, 2015
Our nation’s prosperity and security are linked to the entire world. The introduction of the Trade Promotion Authority legislation today in Congress marks an important step in promoting both of those vital interests at the same time we create jobs at home and markets abroad.
I applaud Chairman Orrin Hatch, Ranking Member Ron Wyden, and Chairman Paul Ryan for providing a framework that would allow the United States and its global partners to complete two of the most significant trade agreements in the history of our country, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP) that together will encompass nearly two-thirds of the global economy.
When I was in the Senate, I consistently supported free trade agreements because I know that investment, innovation, and trade are not just the drivers of a strong economy, they are engines of a strong society. And today, as Secretary of State, I am even more convinced that these agreements enhance our American leadership in an interconnected world.
TPP and T-TIP are critical to American economic security, supporting higher paying jobs here at home while leveling the playing field for U.S. businesses abroad. TPP and T-TIP are vital to our national interests by cementing our ties to strategically vital regions and raising standards that are essential to American ideals and ingenuity, including strong environmental protections, high labor standards, a free and open internet, protection of intellectual property rights, and transparency. These agreements will also support U.S. leadership in establishing rules for the global system consistent with America’s longstanding commitment to democracy, freedom, open markets, and the rule of law.
I also welcome the introduction of legislation renewing the African Growth and Opportunity Act and the Generalized System of Preferences, which have been powerful drivers of global development and pillars of our economic and trade engagement with the developing world.
The United States must remain a leader in global trade, and not run the risk of being left on the sidelines while others set the course. I urge Congress to pass TPA without delay.
Bipartisan Congressional Trade Priorities and Accountability Act of 2015
Press Statement
John Kerry
Secretary of State
Washington, DC
April 16, 2015
Our nation’s prosperity and security are linked to the entire world. The introduction of the Trade Promotion Authority legislation today in Congress marks an important step in promoting both of those vital interests at the same time we create jobs at home and markets abroad.
I applaud Chairman Orrin Hatch, Ranking Member Ron Wyden, and Chairman Paul Ryan for providing a framework that would allow the United States and its global partners to complete two of the most significant trade agreements in the history of our country, the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (T-TIP) that together will encompass nearly two-thirds of the global economy.
When I was in the Senate, I consistently supported free trade agreements because I know that investment, innovation, and trade are not just the drivers of a strong economy, they are engines of a strong society. And today, as Secretary of State, I am even more convinced that these agreements enhance our American leadership in an interconnected world.
TPP and T-TIP are critical to American economic security, supporting higher paying jobs here at home while leveling the playing field for U.S. businesses abroad. TPP and T-TIP are vital to our national interests by cementing our ties to strategically vital regions and raising standards that are essential to American ideals and ingenuity, including strong environmental protections, high labor standards, a free and open internet, protection of intellectual property rights, and transparency. These agreements will also support U.S. leadership in establishing rules for the global system consistent with America’s longstanding commitment to democracy, freedom, open markets, and the rule of law.
I also welcome the introduction of legislation renewing the African Growth and Opportunity Act and the Generalized System of Preferences, which have been powerful drivers of global development and pillars of our economic and trade engagement with the developing world.
The United States must remain a leader in global trade, and not run the risk of being left on the sidelines while others set the course. I urge Congress to pass TPA without delay.
PRESIDENT OBAMA'S STATEMENT ON HOLOCAUST REMEMBRANCE DAY
FROM: THE WHITE HOUSE PRESIDENT
April 16, 2015
Statement by the President on Holocaust Remembrance Day
Today, with heavy hearts, we remember the six million Jews and the millions of other victims of Nazi brutality who were murdered during the Holocaust.
Yom HaShoah is a day to reaffirm our responsibilities to ourselves and future generations. It is incumbent upon us to make real those timeless words, “Never forget. Never again.” Yet, even as we recognize that mankind is capable of unspeakable acts of evil, we also draw strength from the survivors, the liberators, and the righteous among nations who represented humanity at its best.
With their example to guide us, together we must firmly and forcefully condemn the anti-Semitism that is still far too common today. Together we must stand against bigotry and hatred in all their forms. And together, we can leave our children a world that is more just, more free, and more secure for all humankind.
SEC FILES FILES CHARGES IN FLORIDA-BASED MICROCAP STOCK SCHEME
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 23242 / April 16, 2015
Securities and Exchange Commission v. eCareer Holdings, Inc., eCareer, Inc., Joseph J. Azzata, Dean A. Esposito, Joseph DeVito, and Frederick J. Birks, et al., Civil Action No. 9:15-CV-80446-JIC-COHN (S.D. Fla.)
SEC Halts Microcap Scheme in South Florida
The Securities and Exchange Commission announced that on April 7, 2015, it filed fraud charges and sought an asset freeze against the operators of a South Florida-based microcap scheme, including three boiler room brokers caught trying to conceal from investors that they have been barred from the industry. That same day, the Honorable James I. Cohn, United States District Judge for the Southern District of Florida, entered, among other things, a temporary restraining order, and a freeze of the defendants' and relief defendants' assets.
The SEC alleges that investors were defrauded in cold calls placed to investors through a boiler room spearheaded by Dean A. Esposito of Boca Raton, Fla., Joseph DeVito of Brooklyn, N.Y., and Frederick Birks of Orlando, Fla. These brokers and their sales agents were hired by Joseph J. Azzata of Boca Raton, Fla., CEO of eCareer Holdings, Inc., to sell unregistered stock shares in the company. Investors were told their money would be used as working capital to develop eCareer's online job staffing business, however about 30 percent of investor proceeds has been diverted to pay exorbitant fees to the brokers and sales agents. These payments were mischaracterized in eCareer's corporate filings as dispensed to third parties for consulting and advisory services rather than to the sales agents. Company filings and offering materials also misrepresented that eCareer shares would be sold only to accredited investors when in reality stock has been pitched and sold to people not necessarily meeting that definition, including some non-accredited investors aged 85 to 98 years old.
According to the SEC's complaint unsealed on April 9, 2015, Esposito, DeVito, and Birks were subjects of a prior SEC enforcement action that resulted in them being barred from acting as a broker or dealer or participating in any offering of a penny stock. Therefore, they were prohibited from earning transaction-based compensation from the sale of eCareer's stock. In an attempt to circumvent these prohibitions and disguise the true nature of their compensation, Esposito, DeVito, and Birks and their companies entered into agreements typically signed by Azzata that miscategorized their compensation as advisory fees and finder's fees.
The SEC alleges that eCareer, Azzata, Esposito, DeVito, and Birks fraudulently raised more than $11 million in funds from more than 400 investors since August 2010. In addition to approximately $3.5 million paid out of investor funds in the form of undisclosed exorbitant fees, Azzata diverted $650,000 to pay expenses related to his motorsports hobby as well as other family expenditures such as private school tuition for his children and shopping bills for his wife. Corporate filings by eCareer falsely claimed that private offering funds were used for working capital purposes and concealed Azzata's misappropriation of investor proceeds.
The SEC's complaint charges eCareer, Azzata, Esposito, DeVito and Birks with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 as well as Section 10(b) of the Securities Exchange Act of 1934 along with Rule 10b-5. The SEC's complaint also charges eCareer Holdings, Inc. for its violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13, and the complaint charges Azzata for aiding and abetting and control person liability for eCareer's violations among other violations. The SEC seeks disgorgement of ill-gotten gains, prejudgment interest, and financial penalties among other relief for investors. The court has granted the SEC's request for a temporary restraining order and temporary asset freeze, and temporarily barred Azzata from serving as an officer or director of eCareer Holdings and voting the company's shares.
The SEC also suspended trading in shares of eCareer Holdings due to questions that have arisen about the accuracy and adequacy of publicly disseminated information in its filings. More information about the trading suspension process is available in an SEC investor bulletin on the topic.
The SEC's investigation, which is continuing, is being conducted by Linda S. Schmidt and Fernando Torres in the Miami Regional Office. The case is being supervised by Jason R. Berkowitz, and the SEC's litigation is being led by Christopher E. Martin. The SEC appreciates the assistance of Florida's Office of Financial Regulation.
Litigation Release No. 23242 / April 16, 2015
Securities and Exchange Commission v. eCareer Holdings, Inc., eCareer, Inc., Joseph J. Azzata, Dean A. Esposito, Joseph DeVito, and Frederick J. Birks, et al., Civil Action No. 9:15-CV-80446-JIC-COHN (S.D. Fla.)
SEC Halts Microcap Scheme in South Florida
The Securities and Exchange Commission announced that on April 7, 2015, it filed fraud charges and sought an asset freeze against the operators of a South Florida-based microcap scheme, including three boiler room brokers caught trying to conceal from investors that they have been barred from the industry. That same day, the Honorable James I. Cohn, United States District Judge for the Southern District of Florida, entered, among other things, a temporary restraining order, and a freeze of the defendants' and relief defendants' assets.
The SEC alleges that investors were defrauded in cold calls placed to investors through a boiler room spearheaded by Dean A. Esposito of Boca Raton, Fla., Joseph DeVito of Brooklyn, N.Y., and Frederick Birks of Orlando, Fla. These brokers and their sales agents were hired by Joseph J. Azzata of Boca Raton, Fla., CEO of eCareer Holdings, Inc., to sell unregistered stock shares in the company. Investors were told their money would be used as working capital to develop eCareer's online job staffing business, however about 30 percent of investor proceeds has been diverted to pay exorbitant fees to the brokers and sales agents. These payments were mischaracterized in eCareer's corporate filings as dispensed to third parties for consulting and advisory services rather than to the sales agents. Company filings and offering materials also misrepresented that eCareer shares would be sold only to accredited investors when in reality stock has been pitched and sold to people not necessarily meeting that definition, including some non-accredited investors aged 85 to 98 years old.
According to the SEC's complaint unsealed on April 9, 2015, Esposito, DeVito, and Birks were subjects of a prior SEC enforcement action that resulted in them being barred from acting as a broker or dealer or participating in any offering of a penny stock. Therefore, they were prohibited from earning transaction-based compensation from the sale of eCareer's stock. In an attempt to circumvent these prohibitions and disguise the true nature of their compensation, Esposito, DeVito, and Birks and their companies entered into agreements typically signed by Azzata that miscategorized their compensation as advisory fees and finder's fees.
The SEC alleges that eCareer, Azzata, Esposito, DeVito, and Birks fraudulently raised more than $11 million in funds from more than 400 investors since August 2010. In addition to approximately $3.5 million paid out of investor funds in the form of undisclosed exorbitant fees, Azzata diverted $650,000 to pay expenses related to his motorsports hobby as well as other family expenditures such as private school tuition for his children and shopping bills for his wife. Corporate filings by eCareer falsely claimed that private offering funds were used for working capital purposes and concealed Azzata's misappropriation of investor proceeds.
The SEC's complaint charges eCareer, Azzata, Esposito, DeVito and Birks with violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 as well as Section 10(b) of the Securities Exchange Act of 1934 along with Rule 10b-5. The SEC's complaint also charges eCareer Holdings, Inc. for its violations of Section 13(a) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13, and the complaint charges Azzata for aiding and abetting and control person liability for eCareer's violations among other violations. The SEC seeks disgorgement of ill-gotten gains, prejudgment interest, and financial penalties among other relief for investors. The court has granted the SEC's request for a temporary restraining order and temporary asset freeze, and temporarily barred Azzata from serving as an officer or director of eCareer Holdings and voting the company's shares.
The SEC also suspended trading in shares of eCareer Holdings due to questions that have arisen about the accuracy and adequacy of publicly disseminated information in its filings. More information about the trading suspension process is available in an SEC investor bulletin on the topic.
The SEC's investigation, which is continuing, is being conducted by Linda S. Schmidt and Fernando Torres in the Miami Regional Office. The case is being supervised by Jason R. Berkowitz, and the SEC's litigation is being led by Christopher E. Martin. The SEC appreciates the assistance of Florida's Office of Financial Regulation.
DEFENSE SECRETARY CARTER MEETS WITH IRAQI DEFENSE MINISTER TO REAFFIRM COMMITMENT
Right: Defense Secretary Ash Carter, center left, hosts an honor cordon to welcome Iraqi Defense Minister Khalid al-Obeidi, center right, to the Pentagon, April 14, 2015. DoD photo by Army Sgt. 1st Class Clydell Kinchen.
Carter, Iraqi Defense Minister Reaffirm Commitment
DoD News, Defense Media Activity
WASHINGTON, April 15, 2015 – Bilateral cooperation and progress in countering the Islamic State of Iraq and the Levant terrorists highlighted a meeting at the Pentagon yesterday between Defense Secretary Ash Carter and Iraqi Defense Minister Khalid al-Obeidi.
In a statement summarizing the meeting, Pentagon officials said the two leaders reaffirmed their commitment to degrading and ultimately defeating ISIL, focusing on the next steps in the effort.
Carter also congratulated Obeidi on Iraq's successful retaking of Tikrit and reiterated the Defense Department's strong support for Iraqi-led counter-ISIL efforts, officials said. The secretary also emphasized the importance of inclusive governance and respect for local populations in Tikrit and all areas liberated from ISIL control, they added.
Equipping Efforts, Support for Forces
The two defense leaders also coordinated views on current U.S. equipping efforts, the statement said, and discussed how the United States can best support the Iraqi security forces, Kurdish peshmerga and Sunni tribal fighters.
“Both leaders expressed hopes that this productive meeting would lay the foundation for further cooperation between the armed services of the U.S. and Iraq,” the statement said.
PRESIDENT OBAMA'S REMARKS ON EBOLA BEFORE MEETING WITH WEST AFRICAN LEADERS
FROM: THE WHITE HOUSE
April 15, 2015
Remarks by the President Before Meeting with West African Leaders on Ebola
CABINET ROOM
10:45 A.M. EDT
THE PRESIDENT: Well, I want to welcome Presidents Sirleaf, Koroma and Condé. The United States has a long partnership with Liberia and Sierra Leone and Guinea -- partnerships that prove to be critical in the fight against Ebola. We’re here to assess progress today and to look ahead.
We begin by noting the incredible losses that took place in all three countries. More than 10,000 people have died from Ebola -- men, women and children. On behalf of the American people, we want to express our deepest condolences to the families and recognize how challenging this has been for all the countries involved.
Under extraordinary circumstances, the people of these three countries have shown great courage and resolve, treating and taking care of each other, especially children and orphans. The United States has been proud to lead an international effort to work with these three countries in a global response.
Last week, there were fewer than 40 new cases, so we’ve seen major progress. In Liberia right now, there are zero cases. In Sierra Leone and Guinea combined, there were fewer than 40 new cases last week and that’s around the lowest number in a year. Now we’re focused on a shared goal, and that is getting to zero. We can’t be complacent. This virus is unpredictable.
We have to be vigilant, and the international community has to remain fully engaged in a partnership with these three countries until there are no cases of Ebola in these countries. Health systems also have to be rebuilt to meet daily needs -- vaccines for measles, delivering babies safely, treating HIV/AIDS and malaria. And with our Global Health Security Agenda, we intend to do more to prevent future epidemics.
So the Ebola epidemic has been also an economic crisis. That’s part of the reason why these three presidents are here. They’re going to be meeting with a number of the multilateral institutions -- the IMF and World Bank here in Washington. There’s the challenge of restoring markets and agricultural growth, promoting investment and development. So I’m going to be looking forward to hearing from them on how the United States can stand shoulder to shoulder with them to work hard to take this crisis and turn it into an opportunity to rebuild even stronger than before: To strengthen administrative systems, public health systems, to continue the work that they’ve done in rooting out corruption, reinforcing democratic institutions -- all of which will be the foundation stones for long-term progress and prosperity.
So Madam President, Mr. Presidents, we are very grateful for the hard work that you’ve done. We’re proud to partner with you and we intend to see this through until the job is done.
Thank you, everybody.
END
April 15, 2015
Remarks by the President Before Meeting with West African Leaders on Ebola
CABINET ROOM
10:45 A.M. EDT
THE PRESIDENT: Well, I want to welcome Presidents Sirleaf, Koroma and Condé. The United States has a long partnership with Liberia and Sierra Leone and Guinea -- partnerships that prove to be critical in the fight against Ebola. We’re here to assess progress today and to look ahead.
We begin by noting the incredible losses that took place in all three countries. More than 10,000 people have died from Ebola -- men, women and children. On behalf of the American people, we want to express our deepest condolences to the families and recognize how challenging this has been for all the countries involved.
Under extraordinary circumstances, the people of these three countries have shown great courage and resolve, treating and taking care of each other, especially children and orphans. The United States has been proud to lead an international effort to work with these three countries in a global response.
Last week, there were fewer than 40 new cases, so we’ve seen major progress. In Liberia right now, there are zero cases. In Sierra Leone and Guinea combined, there were fewer than 40 new cases last week and that’s around the lowest number in a year. Now we’re focused on a shared goal, and that is getting to zero. We can’t be complacent. This virus is unpredictable.
We have to be vigilant, and the international community has to remain fully engaged in a partnership with these three countries until there are no cases of Ebola in these countries. Health systems also have to be rebuilt to meet daily needs -- vaccines for measles, delivering babies safely, treating HIV/AIDS and malaria. And with our Global Health Security Agenda, we intend to do more to prevent future epidemics.
So the Ebola epidemic has been also an economic crisis. That’s part of the reason why these three presidents are here. They’re going to be meeting with a number of the multilateral institutions -- the IMF and World Bank here in Washington. There’s the challenge of restoring markets and agricultural growth, promoting investment and development. So I’m going to be looking forward to hearing from them on how the United States can stand shoulder to shoulder with them to work hard to take this crisis and turn it into an opportunity to rebuild even stronger than before: To strengthen administrative systems, public health systems, to continue the work that they’ve done in rooting out corruption, reinforcing democratic institutions -- all of which will be the foundation stones for long-term progress and prosperity.
So Madam President, Mr. Presidents, we are very grateful for the hard work that you’ve done. We’re proud to partner with you and we intend to see this through until the job is done.
Thank you, everybody.
END
PRESIDENT'S STATEMENT ON FIX TO MEDICARE PHYSICIAN PAYMENT SYSTEM
FROM: THE WHITE HOUSE
April 14, 2015
Statement by the President on the Passage of a Permanent Fix to the Medicare Physician Payment System
I applaud the Members of Congress from both parties who came together to pass the Medicare Access and CHIP Reauthorization Act.
Nearly every year for the past 13 years, physicians have faced the possibility of an arbitrary cut in their payments from Medicare unless Congress passed a so-called “doc fix.” In my budget, I called for putting a permanent end to this annual manufactured crisis to ensure that doctors will not face a sudden drop in their pay. This bill is consistent with that proposal – it’s a milestone for physicians, and for the seniors and people with disabilities who rely on Medicare for their health care needs.
This bill also strengthens our country’s health care system for the long term. It more directly rewards providers for better-quality care. It creates incentives to encourage physicians to participate in new, innovative payment models that could further reduce the growth in Medicare spending while preserving access to care. And it extends the Children’s Health Insurance Program, which has provided coverage to millions of American children.
This bipartisan bill will protect health coverage for millions of Americans, and I will be proud to sign it into law. I hope Congress builds on this good work by finding more ways to make sure every American has access to the quality, affordable health care they deserve.
April 14, 2015
Statement by the President on the Passage of a Permanent Fix to the Medicare Physician Payment System
I applaud the Members of Congress from both parties who came together to pass the Medicare Access and CHIP Reauthorization Act.
Nearly every year for the past 13 years, physicians have faced the possibility of an arbitrary cut in their payments from Medicare unless Congress passed a so-called “doc fix.” In my budget, I called for putting a permanent end to this annual manufactured crisis to ensure that doctors will not face a sudden drop in their pay. This bill is consistent with that proposal – it’s a milestone for physicians, and for the seniors and people with disabilities who rely on Medicare for their health care needs.
This bill also strengthens our country’s health care system for the long term. It more directly rewards providers for better-quality care. It creates incentives to encourage physicians to participate in new, innovative payment models that could further reduce the growth in Medicare spending while preserving access to care. And it extends the Children’s Health Insurance Program, which has provided coverage to millions of American children.
This bipartisan bill will protect health coverage for millions of Americans, and I will be proud to sign it into law. I hope Congress builds on this good work by finding more ways to make sure every American has access to the quality, affordable health care they deserve.
WHITE HOUSE FACT SHEET: U.S.-IRAQ COOPERATION
FROM: THE WHITE HOUSE
FACT SHEET: U.S.-Iraq Cooperation
The strategic partnership between the United States and the Republic of Iraq spans a wide-range of sectors, consistent with the U.S.-Iraq Strategic Framework Agreement. Below is a selection of key areas of cooperation that demonstrates the expansiveness of this important bilateral relationship.
Defense and Security: The United States and Iraq are committed to promoting stability in Iraq and the region through an enduring partnership that supports our goal to degrade and ultimately destroy ISIL, enhances Iraqi defense capabilities, re-establishes the security of Iraq’s borders, modernizes its forces, and supports Iraq’s contributions to regional security.
The United States and Iraq have made progress in the fight to degrade and ultimately destroy ISIL. In the past eight months, more than 1,900 U.S. and coalition airstrikes have blunted ISIL’s momentum in Iraq and degraded its military capability. As a result of this coordinated effort ISIL has lost control of approximately 25 to 30 percent of the populated areas it had seized in Iraq. Iraqi forces have retaken critical areas of the country, including the Mosul Dam, Sinjar Mountain, Diyala, Tikrit, and areas near Kirkuk. In both Iraq and Syria, over 3,200 U.S. and coalition strikes have damaged or destroyed over 5,780 ISIL targets including 75 tanks and 285 Humvees in ISIL control, 1,166 ISIL fighting positions, and 151 oil infrastructure-related targets that ISIL operated.
Teams of U.S. and coalition personnel are supporting efforts to advise and assist Iraqi Security Forces (ISF), including Peshmerga forces, in planning military operations, intelligence sharing, integrating air support and land operations, managing logistics, command and control of forces, and communications. These teams are also assisting the Iraqi government as they train and equip Sunni tribal fighters as recruits into the Popular Mobilization Forces in Anbar and Ninewa provinces.
Since the fall of 2014, the United States has delivered essential equipment to Iraq as a critical component of the coalition fight against ISIL, including: over 100 million rounds of ammunition, 62,000 small arms systems, 1,700 Hellfire missiles, and six M1A1 tanks. In addition, the U.S. provided to the Government of Iraq 250 Mine-Resistant Ambush Protected (MRAP) vehicles in December 2014 and January 2015, 25 of which were subsequently provided to Kurdish forces in Erbil. The Peshmerga received 1,000 Anti-Tank Missiles that were delivered through the Government of Iraq. As of this week, an additional 50 MRAPs with mine rollers will be on their way to Iraq. In addition to ammunition and vehicles, the United States has also delivered over 12,000 rifles, body armor, helmets, and first aid kits – the equivalent of roughly 5-6 brigades’ worth of individual soldier weapons and equipment. The United States continues to work with the Government of Iraq to deliver their F-16 fighter aircraft to Iraq, and there are currently 30 Iraqi Air Force pilots in the training pipeline.
Deliveries and donations from coalition countries have also been critical to the equipping effort. The coalition has conducted over 70 flights carrying over 5 million pounds of materiel donated by 17 countries, to support the Government of Iraq’s fight against ISIL.
The $1.6-billion Iraq Train and Equip Fund (ITEF) has enabled the United States to provide training and equipment to the ISF, including Peshmerga troops and tribal volunteers, with strong support from coalition partners. Four Building Partner Capacity sites have been established, in Al Asad, Besmayah, Taji, and Erbil - and almost 6,500 ISF, including Peshmerga, have already completed instruction, with more than 4,900 currently in training. Additional equipment funded by ITEF has also begun to arrive in Iraq including individual soldier gear and weapons. Armored vehicles, communications systems, and other equipment and munitions to support roughly 20,000 Iraqi fighters will follow shortly.
Foreign Military Financing (FMF)—grants for the acquisition of U.S. defense equipment, services, and training—will continue to support the long-term development of ISF capabilities. Since 2013, $771 million in FMF and more than $2.5 million in International Military Education and Training has gone towards the development of Iraq’s military. FMF has supported ISF logistics capacity building, professionalization and training, platform-specific sustainment, border security, and equipment to support Iraqi counter terrorism forces.
Political, Diplomatic, and Humanitarian Assistance: The United States supports Iraq’s efforts to develop an inclusive government that promotes security, prosperity and human rights for all Iraqis, and to enhance ties with its regional neighbors.
The United States is providing an additional $205 million in humanitarian assistance to assist millions of Iraqi civilians – both refugees in the region and internally displaced persons within the country – who have been affected by ISIL attacks and previous instability, providing them with food, shelter, water, medical services, cash assistance, and other essential goods and services. It will help displaced persons and refugees obtain legal documentation, strengthen child protection, and improve management at IDP camps. With this new funding, the United States has provided more than $407 million in humanitarian assistance to the Iraqi people since the start of fiscal year 2014.
The United States is working closely with Iraq and coalition members to help Iraq develop a plan to stabilize areas liberated from ISIL-control and to identify resources to support Iraqi stabilization efforts and facilitate their delivery. In March, a team of stabilization experts from the United States joined experts from the coalition and the United Nations in a conference with the Government of Iraq to assess the government’s readiness to address the immediate needs of liberated areas.
Strengthening Iraq’s federal system is a key plank of Prime Minister Abadi’s national program, and is a key pillar of the Government of Iraq’s strategy to improve governance and stabilize the country. The U.S. Agency for International Development's (USAID's) Service Delivery Project (Taqadum) supports the Government of Iraq's efforts to decentralize responsibilities for service delivery from three central ministries, which serves as a model from which other national ministries can emulate. We are also committed to supporting inclusive governance in Iraq and promoting reconciliation. The State Department is targeting over $17 million in fiscal year 2014 funding for programs which include activities to address human rights and rule of law as well as atrocities prevention and accountability issues – key areas for building reconciliation and contributing to the stabilization of Iraq.
Energy: The United States and Iraq are committed to the secure, efficient, resilient, and transparent development of Iraq’s electricity, oil, and gas sectors in an effort to build a strong economy that is capable of meeting the needs of the Iraqi people and bringing greater stability to world markets.
The United States and the Government of Iraq, acting pursuant to a 2013 Memorandum of Understanding, have developed a Joint Action Plan to address energy cooperation and the protection of critical infrastructure. In April 2015, the United States and Iraq completed the first phase of the Work Plan for Critical Energy Infrastructure Protection, which prioritizes strategic projects for U.S. and Iraqi collaboration in securing Iraq’s energy infrastructure.
The Department of Commerce’s Commercial Law Development Program brought together U.S. and international experts to share their natural gas contracting expertise with contract specialists in Iraq’s Ministry of Oil and Ministry of Electricity in March 2014.
Trade & Finance: The United States and Iraq support the development of a prosperous and diversified Iraqi economy that is integrated into the global economic system and also efforts to partner on programs to develop Iraq’s economy, expand bilateral trade, enhance macroeconomic and fiscal stability, and protect Iraqi financial institutions from exploitation by ISIL.
During the inaugural Trade and Investment Framework Agreement meeting in March 2014, Iraq and the United States addressed trade issues that would improve the U.S. – Iraq bilateral trade and investment relationship. Iraq committed to improving its business climate, and the United States– through a series of ongoing capacity building and training engagements across Iraq’s relevant Ministries – remains committed to support these efforts.
U.S. companies remain actively engaged in Iraq. U.S. goods exports to Iraq increased by approximately 4.2 percent and U.S. imports from Iraq rose 3 percent from 2013 to 2014. Several U.S. franchises established or expanded branches in Iraq. The cities of Houston and Basrah have strengthened their bilateral trade as well as their educational and cultural exchanges through the existing Basrah – Houston City Partnership.
In July 2014 the Central Bank of Iraq issued directives to Iraqi financial institutions within ISIL-held territory to cease financial activity. The Department of the Treasury continues to engage with the Central Bank of Iraq to ensure these directives are implemented and restrict ISIL’s access to the Iraqi and international financial systems.
In response to a request from the Iraqi Ministry of Finance, the United States is planning to provide targeted technical expertise on public financial management issues pending Congressional approval of funding. The program will help the Government of Iraq mitigate the fiscal impacts arising from ISIL’s attacks and a precipitous drop in oil prices.
The United States and Iraq are eager to spur private sector development in Iraq. USAID's Administrative Reform project (Tarabot) works with Iraqi ministries to streamline regulations and improve procurement processes in order to better manage resources and create business opportunities.
Education and Culture: The United States and Iraq strongly support a strengthened Iraqi higher education system, the preservation and promotion of Iraq’s rich cultural heritage, and expansion of educational, cultural, and professional exchanges between our nations.
During the 2013-2014 academic year, nearly 1,500 Iraqi students attended U.S. universities, an increase of 33 percent over the previous year. The United States continues to work with the Iraqi government to expand its networks of partner institutions and increase its engagement with U.S. universities.
Each year approximately 500 Iraqis participate in U.S. government academic, cultural, and professional exchange programs.
From 2010-2014, the Iraq University Linkage Program linked seven U.S. universities with seven Iraqi universities to develop curricula, train faculty, improve English language training capacity, and create career centers to facilitate job placement.
The United States returned to the Government of Iraq numerous items of cultural heritage that had been removed unlawfully from Iraq and seized by Department of Homeland Security agents, including the sculptured head in the style of the Assyrian King Sargon II. U.S. funding in support of the Iraqi Institute for the Conservation of Antiquities and Heritage (IICAH) has provided technical expertise in a variety of preservation areas to Iraqi antiquities specialists from throughout the country.
The United States supported major renovations to the galleries, storerooms, laboratories, and climate control systems of the Iraq Museum in Baghdad, which has just reopened to the Iraqi public. Through the Ambassador’s Fund for Cultural Preservation, the State Department has invested nearly $3 million since 2010 in emergency stabilization and conservation of the Ishtar gate and other major structures and artifacts in Babylon.
FACT SHEET: U.S.-Iraq Cooperation
The strategic partnership between the United States and the Republic of Iraq spans a wide-range of sectors, consistent with the U.S.-Iraq Strategic Framework Agreement. Below is a selection of key areas of cooperation that demonstrates the expansiveness of this important bilateral relationship.
Defense and Security: The United States and Iraq are committed to promoting stability in Iraq and the region through an enduring partnership that supports our goal to degrade and ultimately destroy ISIL, enhances Iraqi defense capabilities, re-establishes the security of Iraq’s borders, modernizes its forces, and supports Iraq’s contributions to regional security.
The United States and Iraq have made progress in the fight to degrade and ultimately destroy ISIL. In the past eight months, more than 1,900 U.S. and coalition airstrikes have blunted ISIL’s momentum in Iraq and degraded its military capability. As a result of this coordinated effort ISIL has lost control of approximately 25 to 30 percent of the populated areas it had seized in Iraq. Iraqi forces have retaken critical areas of the country, including the Mosul Dam, Sinjar Mountain, Diyala, Tikrit, and areas near Kirkuk. In both Iraq and Syria, over 3,200 U.S. and coalition strikes have damaged or destroyed over 5,780 ISIL targets including 75 tanks and 285 Humvees in ISIL control, 1,166 ISIL fighting positions, and 151 oil infrastructure-related targets that ISIL operated.
Teams of U.S. and coalition personnel are supporting efforts to advise and assist Iraqi Security Forces (ISF), including Peshmerga forces, in planning military operations, intelligence sharing, integrating air support and land operations, managing logistics, command and control of forces, and communications. These teams are also assisting the Iraqi government as they train and equip Sunni tribal fighters as recruits into the Popular Mobilization Forces in Anbar and Ninewa provinces.
Since the fall of 2014, the United States has delivered essential equipment to Iraq as a critical component of the coalition fight against ISIL, including: over 100 million rounds of ammunition, 62,000 small arms systems, 1,700 Hellfire missiles, and six M1A1 tanks. In addition, the U.S. provided to the Government of Iraq 250 Mine-Resistant Ambush Protected (MRAP) vehicles in December 2014 and January 2015, 25 of which were subsequently provided to Kurdish forces in Erbil. The Peshmerga received 1,000 Anti-Tank Missiles that were delivered through the Government of Iraq. As of this week, an additional 50 MRAPs with mine rollers will be on their way to Iraq. In addition to ammunition and vehicles, the United States has also delivered over 12,000 rifles, body armor, helmets, and first aid kits – the equivalent of roughly 5-6 brigades’ worth of individual soldier weapons and equipment. The United States continues to work with the Government of Iraq to deliver their F-16 fighter aircraft to Iraq, and there are currently 30 Iraqi Air Force pilots in the training pipeline.
Deliveries and donations from coalition countries have also been critical to the equipping effort. The coalition has conducted over 70 flights carrying over 5 million pounds of materiel donated by 17 countries, to support the Government of Iraq’s fight against ISIL.
The $1.6-billion Iraq Train and Equip Fund (ITEF) has enabled the United States to provide training and equipment to the ISF, including Peshmerga troops and tribal volunteers, with strong support from coalition partners. Four Building Partner Capacity sites have been established, in Al Asad, Besmayah, Taji, and Erbil - and almost 6,500 ISF, including Peshmerga, have already completed instruction, with more than 4,900 currently in training. Additional equipment funded by ITEF has also begun to arrive in Iraq including individual soldier gear and weapons. Armored vehicles, communications systems, and other equipment and munitions to support roughly 20,000 Iraqi fighters will follow shortly.
Foreign Military Financing (FMF)—grants for the acquisition of U.S. defense equipment, services, and training—will continue to support the long-term development of ISF capabilities. Since 2013, $771 million in FMF and more than $2.5 million in International Military Education and Training has gone towards the development of Iraq’s military. FMF has supported ISF logistics capacity building, professionalization and training, platform-specific sustainment, border security, and equipment to support Iraqi counter terrorism forces.
Political, Diplomatic, and Humanitarian Assistance: The United States supports Iraq’s efforts to develop an inclusive government that promotes security, prosperity and human rights for all Iraqis, and to enhance ties with its regional neighbors.
The United States is providing an additional $205 million in humanitarian assistance to assist millions of Iraqi civilians – both refugees in the region and internally displaced persons within the country – who have been affected by ISIL attacks and previous instability, providing them with food, shelter, water, medical services, cash assistance, and other essential goods and services. It will help displaced persons and refugees obtain legal documentation, strengthen child protection, and improve management at IDP camps. With this new funding, the United States has provided more than $407 million in humanitarian assistance to the Iraqi people since the start of fiscal year 2014.
The United States is working closely with Iraq and coalition members to help Iraq develop a plan to stabilize areas liberated from ISIL-control and to identify resources to support Iraqi stabilization efforts and facilitate their delivery. In March, a team of stabilization experts from the United States joined experts from the coalition and the United Nations in a conference with the Government of Iraq to assess the government’s readiness to address the immediate needs of liberated areas.
Strengthening Iraq’s federal system is a key plank of Prime Minister Abadi’s national program, and is a key pillar of the Government of Iraq’s strategy to improve governance and stabilize the country. The U.S. Agency for International Development's (USAID's) Service Delivery Project (Taqadum) supports the Government of Iraq's efforts to decentralize responsibilities for service delivery from three central ministries, which serves as a model from which other national ministries can emulate. We are also committed to supporting inclusive governance in Iraq and promoting reconciliation. The State Department is targeting over $17 million in fiscal year 2014 funding for programs which include activities to address human rights and rule of law as well as atrocities prevention and accountability issues – key areas for building reconciliation and contributing to the stabilization of Iraq.
Energy: The United States and Iraq are committed to the secure, efficient, resilient, and transparent development of Iraq’s electricity, oil, and gas sectors in an effort to build a strong economy that is capable of meeting the needs of the Iraqi people and bringing greater stability to world markets.
The United States and the Government of Iraq, acting pursuant to a 2013 Memorandum of Understanding, have developed a Joint Action Plan to address energy cooperation and the protection of critical infrastructure. In April 2015, the United States and Iraq completed the first phase of the Work Plan for Critical Energy Infrastructure Protection, which prioritizes strategic projects for U.S. and Iraqi collaboration in securing Iraq’s energy infrastructure.
The Department of Commerce’s Commercial Law Development Program brought together U.S. and international experts to share their natural gas contracting expertise with contract specialists in Iraq’s Ministry of Oil and Ministry of Electricity in March 2014.
Trade & Finance: The United States and Iraq support the development of a prosperous and diversified Iraqi economy that is integrated into the global economic system and also efforts to partner on programs to develop Iraq’s economy, expand bilateral trade, enhance macroeconomic and fiscal stability, and protect Iraqi financial institutions from exploitation by ISIL.
During the inaugural Trade and Investment Framework Agreement meeting in March 2014, Iraq and the United States addressed trade issues that would improve the U.S. – Iraq bilateral trade and investment relationship. Iraq committed to improving its business climate, and the United States– through a series of ongoing capacity building and training engagements across Iraq’s relevant Ministries – remains committed to support these efforts.
U.S. companies remain actively engaged in Iraq. U.S. goods exports to Iraq increased by approximately 4.2 percent and U.S. imports from Iraq rose 3 percent from 2013 to 2014. Several U.S. franchises established or expanded branches in Iraq. The cities of Houston and Basrah have strengthened their bilateral trade as well as their educational and cultural exchanges through the existing Basrah – Houston City Partnership.
In July 2014 the Central Bank of Iraq issued directives to Iraqi financial institutions within ISIL-held territory to cease financial activity. The Department of the Treasury continues to engage with the Central Bank of Iraq to ensure these directives are implemented and restrict ISIL’s access to the Iraqi and international financial systems.
In response to a request from the Iraqi Ministry of Finance, the United States is planning to provide targeted technical expertise on public financial management issues pending Congressional approval of funding. The program will help the Government of Iraq mitigate the fiscal impacts arising from ISIL’s attacks and a precipitous drop in oil prices.
The United States and Iraq are eager to spur private sector development in Iraq. USAID's Administrative Reform project (Tarabot) works with Iraqi ministries to streamline regulations and improve procurement processes in order to better manage resources and create business opportunities.
Education and Culture: The United States and Iraq strongly support a strengthened Iraqi higher education system, the preservation and promotion of Iraq’s rich cultural heritage, and expansion of educational, cultural, and professional exchanges between our nations.
During the 2013-2014 academic year, nearly 1,500 Iraqi students attended U.S. universities, an increase of 33 percent over the previous year. The United States continues to work with the Iraqi government to expand its networks of partner institutions and increase its engagement with U.S. universities.
Each year approximately 500 Iraqis participate in U.S. government academic, cultural, and professional exchange programs.
From 2010-2014, the Iraq University Linkage Program linked seven U.S. universities with seven Iraqi universities to develop curricula, train faculty, improve English language training capacity, and create career centers to facilitate job placement.
The United States returned to the Government of Iraq numerous items of cultural heritage that had been removed unlawfully from Iraq and seized by Department of Homeland Security agents, including the sculptured head in the style of the Assyrian King Sargon II. U.S. funding in support of the Iraqi Institute for the Conservation of Antiquities and Heritage (IICAH) has provided technical expertise in a variety of preservation areas to Iraqi antiquities specialists from throughout the country.
The United States supported major renovations to the galleries, storerooms, laboratories, and climate control systems of the Iraq Museum in Baghdad, which has just reopened to the Iraqi public. Through the Ambassador’s Fund for Cultural Preservation, the State Department has invested nearly $3 million since 2010 in emergency stabilization and conservation of the Ishtar gate and other major structures and artifacts in Babylon.
INVESTOR ADVOCATE RICK FLEMING ON SMART REGULATION
FROM: U.S. SECURITIES AND EXCHANGE COMMISSION
The Importance of Smart Regulation
Rick A. Fleming, Investor Advocate
U.S. Securities and Exchange Commission[1]
NASAA Public Policy Conference
Mayflower Renaissance Hotel
Keynote Luncheon
Washington, D.C.
April 14, 2015
Thank you, [Bill Beatty], for the nice introduction, and for the opportunity to come back and visit many old friends.
Thanks, also, to all of you who participated in the 19(d) meetings this morning.[2] This is an important opportunity for state and federal collaboration, and I would remind my new friends at the SEC that Section 19(d) of the Securities Act provides for much more than a once-a-year gathering. It envisions an atmosphere in which the states are considered partners in certain types of rulemakings, not mere commenters.[3]
Today, I want to talk about the business of regulating, and why it is so important that you do your jobs well. Of course, the views I express are my own and do not necessarily reflect those of the Commission, the Commissioners, or my colleagues on the Commission staff.
As you know, many people start with an assumption that all regulation is bad for business. Some lobbyists and politicians in D.C. certainly believe this, and while they may pay lip service to investor protection, the result of their consistent policy positions would leave investors naked and hungry. I am also aware that, sadly, some of your bosses back home harbor a fundamental belief that your work is an impediment to economic growth.
Unfortunately, we sometimes contribute to this misconception. Over the course of my career, I have often given speeches in which I have portrayed securities regulation as a balancing act between capital formation and investor protection, and I’ve illustrated the point by showing a picture of a scale with capital formation on one side and investor protection on the other. But, I’ve come to believe in a better illustration—one in which investor protection is portrayed as the foundation upon which capital formation is built. In reality, regulation allows capital formation to flourish by giving investors the confidence they need to invest.
The key is that regulation must be smart. Dumb regulation manifests itself in a variety of ways: it puts pointless burdens on business, fails to reflect changing technology, is overly protective of turf, or, even worse, leaves investors as sheep to be sheared. Smart regulation, in contrast, provides a sufficient level of protection to bolster confidence without needlessly burdening the regulated entities.
As you can attest, state regulators are often characterized as bastions of dumb regulation. Unfortunately, you don’t have to look hard to find examples of practices that feed the reputation. However, in large part, states are the places where smart regulation can flourish. You are closer to Mom and Pop investors, closer to small businesses, and in tune with the needs of both. New ideas can be tested and, when necessary, can more easily be discarded.
Often, smart regulation requires coordination between states and a willingness to give up some of your own preferences in order to foster consistent rules from state to state. Toward that end, I applaud your adoption of the coordinated review program for offerings conducted under the new Regulation A.[4] This program is forward-thinking and a potential game-changer in state regulation.
However, smart regulation doesn’t always look the same in every state. For example, while I was General Counsel for the Office of the Kansas Securities Commissioner, I wrote a rule called the Invest Kansas Exemption.[5] It was the first of what could be characterized as an intrastate crowdfunding exemption. It was designed to allow small-dollar offerings to an entire community of interest, without a prohibition on general solicitation. I was comfortable adopting the exemption in a rural state, where the investors and promoters likely know each other, but I would have recommended more conditions on the exemption in a more urban state where the investors and promoters would likely be strangers.
The theme of this conference is “Progress Through Innovation,” and I think state and provincial regulators have an important role to play in promoting economic progress. By innovating in the ways you regulate, whether through multijurisdictional coordination or unique intrastate exemptions, you can spur innovation and entrepreneurship in your states and provinces. And you also provide a layer of protection that investors need, which gives them the confidence to invest in the offerings you oversee.
Because your role is so important, the states need to stay in the game and retain relevancy. Investors are counting on you. And, if they stop to think about it, small businesses are counting on you, too.
Now, let’s take a moment to consider the importance of smart regulation within a much broader context. Let’s look at the really big picture. Here in the U.S., we are motivated by an idea called the “American Dream.” This is a fundamental belief that a person, through hard work, can improve their socio-economic status. NASAA members and their constituents from Canada and Mexico also dream of economic upward mobility, though they no doubt call it something different.
Any parent with grown children has probably preached several times—over groans of protest and eye-rolling—how those children can achieve economic success. It starts with a good education, where we obtain not only knowledge, but we learn to play well with others, get things done on time, and develop other marketable skills. The next step is getting a job, working hard, doing the types of things no one else wants to do, and hopefully catching a break or two along our career path. Then, once the income starts coming in, we must learn to live within our means and become savers. Finally, if we want to put those savings to work for us, we become investors and begin to accumulate wealth.
Imagine, if you will, what happens if everyone in America, or everyone in Canada, or everyone in Mexico, begins to follow those steps. Imagine the powerful economic engine that is created when everyone in a society is striving to work hard, save money, and invest for the future.
But, consider with me what happens when something goes awry. Suppose a person has done all the right things. She has worked hard in school and received a good education, then worked hard in a job and managed to work her way up, overcoming the various obstacles that life threw her way. She gave up a lot of instant gratification in order to save for the future, and she built up a nice nest egg for retirement. Then, on the eve of that retirement, somebody comes along and steals the nest egg from her, or engages in unethical practices that cause her to suffer significant losses.
This is why we have securities laws. J.N. Dolley, the author of the first blue sky law, was a banker who had seen customers withdraw money from banks to chase higher yields by investing in copper mines, Central American plantations, irrigation projects, or other wildcat stocks. Dolley believed that “at least ninety-five percent of all the money put in those stocks was irretrievably lost,” so he proposed a set of statutes to require governmental review of securities offerings.[6]
We still need those laws today. Those in this room, more than most others, are familiar with the devastation brought about by securities fraud. How many in this room have seen retirees go back to work after being fleeced? How many have seen marriages end? How many have seen victims turn to suicide? Don’t ever forget how important your jobs are.
Now, in case you aren’t depressed enough, let’s look at this from a collective viewpoint. If all Americans are getting a good education, working hard, saving money, and investing, we have a powerful economic engine, but what happens if something occurs that makes us lose hope in the American Dream — for example, the stock market crash of 1929?
This is why the federal government began to regulate the sale of securities. After the stock market crashed, a Congressional investigation revealed widespread manipulation of the markets and rampant insider trading.[7] As a result of the crash, people began to hoard their money and the economic engine lost steam in a rather dramatic fashion. Thus, when President Franklin D. Roosevelt recommended the passage of what became known as the Securities Act of 1933, he expressed his desire to “give impetus to honest dealing in securities and thereby bring back public confidence.”[8] The point of the ’33 Act, then, was not to punish businesses for getting us into the Great Depression, but rather to get us out of the Depression by restoring investor confidence. This new regulatory structure gave us a foundation upon which capital formation could occur.
Fast forward to the 21st Century and the financial crisis of 2008. As a result of the crisis, median household net worth fell almost 39 percent.[9] At least three significant factors contributed to the loss of net worth. Home values fell almost 29 percent from their peak in April 2006 to the end of the recession in June 2009, wiping out about $9 trillion in home equity.[10] Stock values plunged, too. The S&P 500 lost 55 percent of its value between its high in October 2007 and its trough in March 2009.[11] Finally, unemployment peaked at about 10 percent in October 2009 and stayed above 8 percent for 3 years.[12]
Although the economy has improved significantly in recent years, these hits to ordinary Americans continue to have a significant impact on our faith in the American Dream. According to a New York Times poll last December, less than two-thirds of Americans (64 percent) now believe they could be born poor, work hard, and get rich in America.[13] This percentage has declined steadily since 2011, which was after the worst of the crisis, when 81 percent still believed it.[14] That’s a 17 percent decline in just a few years.
In addition, almost half of Americans now expect future generations to be worse off. Another one-fourth think future generations will wind up being “about the same,” which means that only about one-fourth of Americans expect future generations to have better lives.[15] And, according to a November NBC/Wall Street Journal poll, 56 percent of Americans think the country’s economic and political systems are stacked against people like them.[16]
This loss of hopefulness, I believe, presents one of the greatest challenges of our time. And I don’t come here today to suggest that it’s up to you to solve all of our problems. Just as you were not in a position to create this mess, you aren’t realistically in a position to solve everything.
But, don’t minimize the importance of the things you can do. Through smart and innovative regulation, you can spur economic development on a level playing field. And your visibility as local cops on the beat will be a reassuring presence to those who have become cynical of the system.
I hope I’ve set the table for the rest of your conference by highlighting for you the importance of the topics you will be discussing. In many ways, you are guardians of hopes and dreams of the people in your state. For their sake, I encourage you to maintain your vigilance, maintain your zeal, and keep up the fight.
Thank you.
[1] The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. The views expressed herein are those of the author and do not necessarily reflect the views of the Commission or of the author’s colleagues on the Commission staff.
[2] Section 19(d) of the Securities Act of 1933, 15 U.S.C. § 77s(d), requires the Commission to conduct an annual conference and other meetings as may be necessary with any association of state-level securities regulators, self-regulatory organizations, agencies, and private organizations involved in capital formation, in order to achieve maximum effectiveness and uniformity in federal and state regulatory standards with minimum interference with the business of capital formation.
[3] “The purpose of [subsection 19(d)] is to engender cooperation between the Commission, any such association of State securities officials, and other duly constituted securities associations in the following areas: (A) the sharing of information regarding the registration or exemption of securities issues applied for in the various States; (B) the development and maintenance of uniform securities forms and procedures; and (C) the development of a uniform exemption from registration for small issuers which can be agreed upon among several States or between the States and the Federal Government.” Securities Act Section 19(d)(2), 15 U.S.C. § 77s(d).
[4] NASAA Coordinated Review Program for Regulation A Offerings, available at http://www.nasaa.org/industry-resources/corporation-finance/coordinated-review/regulation-a-offerings/.
[5] Kan. Admin. Reg. 81-5-21, as modified by Special Order dated June 21, 2013.
[6] Will Payne, How Kansas Drove Out a Set of Thieves, SATURDAY EVENING POST, Dec. 2, 1911.
[7] Larry Bumgardner, A Brief History of the 1930s Securities Laws in the United States—And the Potential Lessons for Today, The Journal of Global Business Management, available at http://www.jgbm.org/page/5%20Larry%20Bumgardner.pdf.
[8] Message from the President—Regulation of Security Issues, Presented to Senate Mar. 28, 1933, 77 Cong.Rec. 937 (1933).
[9] U.S. Government Accountability Office, Financial Regulatory Reform: Financial Crisis Losses and Potential Impacts of the Dodd-Frank Act (Jan. 2013) (hereinafter GAO Report), at 20 (citing Federal Reserve Survey of Consumer Finances).
[10] Id. at 20-21.
[11] Steve Santiago, Should Investors Over Age 50 Own Stocks?, BANKRATE, available at http://www.bankrate.com/finance/financial-literacy/do-stocks-make-sense-for-the-50-plus-crowd-1.aspx
[12] GAO Report, at 17.
[13] Andrew Ross Sorkin and Megan Thee-Brenan, Many Feel the American Dream Is Out of Reach, Poll Shows, N.Y. Times, Dec. 10, 2014, available at http://dealbook.nytimes.com/2014/12/10/many-feel-the-american-dream-is-out-of-reach-poll-shows/?_r=0
[14] Id.
[15] Chris Cillizza, Work Hard, Get Rich? Maybe Not Anymore, THE WASHINGTON POST, Dec. 11, 2014.
[16] Americans of All Stripes Agree: The System Is Stacked Against Them, WALL STREET JOURNAL, Nov. 20, 2014.
The Importance of Smart Regulation
Rick A. Fleming, Investor Advocate
U.S. Securities and Exchange Commission[1]
NASAA Public Policy Conference
Mayflower Renaissance Hotel
Keynote Luncheon
Washington, D.C.
April 14, 2015
Thank you, [Bill Beatty], for the nice introduction, and for the opportunity to come back and visit many old friends.
Thanks, also, to all of you who participated in the 19(d) meetings this morning.[2] This is an important opportunity for state and federal collaboration, and I would remind my new friends at the SEC that Section 19(d) of the Securities Act provides for much more than a once-a-year gathering. It envisions an atmosphere in which the states are considered partners in certain types of rulemakings, not mere commenters.[3]
Today, I want to talk about the business of regulating, and why it is so important that you do your jobs well. Of course, the views I express are my own and do not necessarily reflect those of the Commission, the Commissioners, or my colleagues on the Commission staff.
As you know, many people start with an assumption that all regulation is bad for business. Some lobbyists and politicians in D.C. certainly believe this, and while they may pay lip service to investor protection, the result of their consistent policy positions would leave investors naked and hungry. I am also aware that, sadly, some of your bosses back home harbor a fundamental belief that your work is an impediment to economic growth.
Unfortunately, we sometimes contribute to this misconception. Over the course of my career, I have often given speeches in which I have portrayed securities regulation as a balancing act between capital formation and investor protection, and I’ve illustrated the point by showing a picture of a scale with capital formation on one side and investor protection on the other. But, I’ve come to believe in a better illustration—one in which investor protection is portrayed as the foundation upon which capital formation is built. In reality, regulation allows capital formation to flourish by giving investors the confidence they need to invest.
The key is that regulation must be smart. Dumb regulation manifests itself in a variety of ways: it puts pointless burdens on business, fails to reflect changing technology, is overly protective of turf, or, even worse, leaves investors as sheep to be sheared. Smart regulation, in contrast, provides a sufficient level of protection to bolster confidence without needlessly burdening the regulated entities.
As you can attest, state regulators are often characterized as bastions of dumb regulation. Unfortunately, you don’t have to look hard to find examples of practices that feed the reputation. However, in large part, states are the places where smart regulation can flourish. You are closer to Mom and Pop investors, closer to small businesses, and in tune with the needs of both. New ideas can be tested and, when necessary, can more easily be discarded.
Often, smart regulation requires coordination between states and a willingness to give up some of your own preferences in order to foster consistent rules from state to state. Toward that end, I applaud your adoption of the coordinated review program for offerings conducted under the new Regulation A.[4] This program is forward-thinking and a potential game-changer in state regulation.
However, smart regulation doesn’t always look the same in every state. For example, while I was General Counsel for the Office of the Kansas Securities Commissioner, I wrote a rule called the Invest Kansas Exemption.[5] It was the first of what could be characterized as an intrastate crowdfunding exemption. It was designed to allow small-dollar offerings to an entire community of interest, without a prohibition on general solicitation. I was comfortable adopting the exemption in a rural state, where the investors and promoters likely know each other, but I would have recommended more conditions on the exemption in a more urban state where the investors and promoters would likely be strangers.
The theme of this conference is “Progress Through Innovation,” and I think state and provincial regulators have an important role to play in promoting economic progress. By innovating in the ways you regulate, whether through multijurisdictional coordination or unique intrastate exemptions, you can spur innovation and entrepreneurship in your states and provinces. And you also provide a layer of protection that investors need, which gives them the confidence to invest in the offerings you oversee.
Because your role is so important, the states need to stay in the game and retain relevancy. Investors are counting on you. And, if they stop to think about it, small businesses are counting on you, too.
Now, let’s take a moment to consider the importance of smart regulation within a much broader context. Let’s look at the really big picture. Here in the U.S., we are motivated by an idea called the “American Dream.” This is a fundamental belief that a person, through hard work, can improve their socio-economic status. NASAA members and their constituents from Canada and Mexico also dream of economic upward mobility, though they no doubt call it something different.
Any parent with grown children has probably preached several times—over groans of protest and eye-rolling—how those children can achieve economic success. It starts with a good education, where we obtain not only knowledge, but we learn to play well with others, get things done on time, and develop other marketable skills. The next step is getting a job, working hard, doing the types of things no one else wants to do, and hopefully catching a break or two along our career path. Then, once the income starts coming in, we must learn to live within our means and become savers. Finally, if we want to put those savings to work for us, we become investors and begin to accumulate wealth.
Imagine, if you will, what happens if everyone in America, or everyone in Canada, or everyone in Mexico, begins to follow those steps. Imagine the powerful economic engine that is created when everyone in a society is striving to work hard, save money, and invest for the future.
But, consider with me what happens when something goes awry. Suppose a person has done all the right things. She has worked hard in school and received a good education, then worked hard in a job and managed to work her way up, overcoming the various obstacles that life threw her way. She gave up a lot of instant gratification in order to save for the future, and she built up a nice nest egg for retirement. Then, on the eve of that retirement, somebody comes along and steals the nest egg from her, or engages in unethical practices that cause her to suffer significant losses.
This is why we have securities laws. J.N. Dolley, the author of the first blue sky law, was a banker who had seen customers withdraw money from banks to chase higher yields by investing in copper mines, Central American plantations, irrigation projects, or other wildcat stocks. Dolley believed that “at least ninety-five percent of all the money put in those stocks was irretrievably lost,” so he proposed a set of statutes to require governmental review of securities offerings.[6]
We still need those laws today. Those in this room, more than most others, are familiar with the devastation brought about by securities fraud. How many in this room have seen retirees go back to work after being fleeced? How many have seen marriages end? How many have seen victims turn to suicide? Don’t ever forget how important your jobs are.
Now, in case you aren’t depressed enough, let’s look at this from a collective viewpoint. If all Americans are getting a good education, working hard, saving money, and investing, we have a powerful economic engine, but what happens if something occurs that makes us lose hope in the American Dream — for example, the stock market crash of 1929?
This is why the federal government began to regulate the sale of securities. After the stock market crashed, a Congressional investigation revealed widespread manipulation of the markets and rampant insider trading.[7] As a result of the crash, people began to hoard their money and the economic engine lost steam in a rather dramatic fashion. Thus, when President Franklin D. Roosevelt recommended the passage of what became known as the Securities Act of 1933, he expressed his desire to “give impetus to honest dealing in securities and thereby bring back public confidence.”[8] The point of the ’33 Act, then, was not to punish businesses for getting us into the Great Depression, but rather to get us out of the Depression by restoring investor confidence. This new regulatory structure gave us a foundation upon which capital formation could occur.
Fast forward to the 21st Century and the financial crisis of 2008. As a result of the crisis, median household net worth fell almost 39 percent.[9] At least three significant factors contributed to the loss of net worth. Home values fell almost 29 percent from their peak in April 2006 to the end of the recession in June 2009, wiping out about $9 trillion in home equity.[10] Stock values plunged, too. The S&P 500 lost 55 percent of its value between its high in October 2007 and its trough in March 2009.[11] Finally, unemployment peaked at about 10 percent in October 2009 and stayed above 8 percent for 3 years.[12]
Although the economy has improved significantly in recent years, these hits to ordinary Americans continue to have a significant impact on our faith in the American Dream. According to a New York Times poll last December, less than two-thirds of Americans (64 percent) now believe they could be born poor, work hard, and get rich in America.[13] This percentage has declined steadily since 2011, which was after the worst of the crisis, when 81 percent still believed it.[14] That’s a 17 percent decline in just a few years.
In addition, almost half of Americans now expect future generations to be worse off. Another one-fourth think future generations will wind up being “about the same,” which means that only about one-fourth of Americans expect future generations to have better lives.[15] And, according to a November NBC/Wall Street Journal poll, 56 percent of Americans think the country’s economic and political systems are stacked against people like them.[16]
This loss of hopefulness, I believe, presents one of the greatest challenges of our time. And I don’t come here today to suggest that it’s up to you to solve all of our problems. Just as you were not in a position to create this mess, you aren’t realistically in a position to solve everything.
But, don’t minimize the importance of the things you can do. Through smart and innovative regulation, you can spur economic development on a level playing field. And your visibility as local cops on the beat will be a reassuring presence to those who have become cynical of the system.
I hope I’ve set the table for the rest of your conference by highlighting for you the importance of the topics you will be discussing. In many ways, you are guardians of hopes and dreams of the people in your state. For their sake, I encourage you to maintain your vigilance, maintain your zeal, and keep up the fight.
Thank you.
[1] The Securities and Exchange Commission, as a matter of policy, disclaims responsibility for any private publication or statement by any of its employees. The views expressed herein are those of the author and do not necessarily reflect the views of the Commission or of the author’s colleagues on the Commission staff.
[2] Section 19(d) of the Securities Act of 1933, 15 U.S.C. § 77s(d), requires the Commission to conduct an annual conference and other meetings as may be necessary with any association of state-level securities regulators, self-regulatory organizations, agencies, and private organizations involved in capital formation, in order to achieve maximum effectiveness and uniformity in federal and state regulatory standards with minimum interference with the business of capital formation.
[3] “The purpose of [subsection 19(d)] is to engender cooperation between the Commission, any such association of State securities officials, and other duly constituted securities associations in the following areas: (A) the sharing of information regarding the registration or exemption of securities issues applied for in the various States; (B) the development and maintenance of uniform securities forms and procedures; and (C) the development of a uniform exemption from registration for small issuers which can be agreed upon among several States or between the States and the Federal Government.” Securities Act Section 19(d)(2), 15 U.S.C. § 77s(d).
[4] NASAA Coordinated Review Program for Regulation A Offerings, available at http://www.nasaa.org/industry-resources/corporation-finance/coordinated-review/regulation-a-offerings/.
[5] Kan. Admin. Reg. 81-5-21, as modified by Special Order dated June 21, 2013.
[6] Will Payne, How Kansas Drove Out a Set of Thieves, SATURDAY EVENING POST, Dec. 2, 1911.
[7] Larry Bumgardner, A Brief History of the 1930s Securities Laws in the United States—And the Potential Lessons for Today, The Journal of Global Business Management, available at http://www.jgbm.org/page/5%20Larry%20Bumgardner.pdf.
[8] Message from the President—Regulation of Security Issues, Presented to Senate Mar. 28, 1933, 77 Cong.Rec. 937 (1933).
[9] U.S. Government Accountability Office, Financial Regulatory Reform: Financial Crisis Losses and Potential Impacts of the Dodd-Frank Act (Jan. 2013) (hereinafter GAO Report), at 20 (citing Federal Reserve Survey of Consumer Finances).
[10] Id. at 20-21.
[11] Steve Santiago, Should Investors Over Age 50 Own Stocks?, BANKRATE, available at http://www.bankrate.com/finance/financial-literacy/do-stocks-make-sense-for-the-50-plus-crowd-1.aspx
[12] GAO Report, at 17.
[13] Andrew Ross Sorkin and Megan Thee-Brenan, Many Feel the American Dream Is Out of Reach, Poll Shows, N.Y. Times, Dec. 10, 2014, available at http://dealbook.nytimes.com/2014/12/10/many-feel-the-american-dream-is-out-of-reach-poll-shows/?_r=0
[14] Id.
[15] Chris Cillizza, Work Hard, Get Rich? Maybe Not Anymore, THE WASHINGTON POST, Dec. 11, 2014.
[16] Americans of All Stripes Agree: The System Is Stacked Against Them, WALL STREET JOURNAL, Nov. 20, 2014.
Wednesday, April 15, 2015
READOUT: VP BIDEN'S CALL WITH NIGERIAN PRESIDENT ELECT BUHARI
FROM: THE WHITE HOUSE
April 15, 2015
Readout of the Vice President’s Call with Nigerian President-Elect Buhari
Vice President Biden spoke with Nigerian President-elect Muhammadu Buhari to congratulate him on his victory in the recent Nigerian elections and affirm that the United States stands ready to expand collaboration with Nigeria on issues of common concern, including economic and security matters. The Vice President commended President-elect Buhari for his leadership in helping to ensure the elections were conducted peacefully and urged him to continue to foster a smooth, inclusive, and peaceful transition with President Jonathan. The Vice President expressed the United States’ support for Nigeria’s efforts to counter Boko Haram, recover hostages held by the group, and protect civilian populations. The Vice President also expressed the willingness of the United States to partner more closely with Nigeria to strengthen its economy.
April 15, 2015
Readout of the Vice President’s Call with Nigerian President-Elect Buhari
Vice President Biden spoke with Nigerian President-elect Muhammadu Buhari to congratulate him on his victory in the recent Nigerian elections and affirm that the United States stands ready to expand collaboration with Nigeria on issues of common concern, including economic and security matters. The Vice President commended President-elect Buhari for his leadership in helping to ensure the elections were conducted peacefully and urged him to continue to foster a smooth, inclusive, and peaceful transition with President Jonathan. The Vice President expressed the United States’ support for Nigeria’s efforts to counter Boko Haram, recover hostages held by the group, and protect civilian populations. The Vice President also expressed the willingness of the United States to partner more closely with Nigeria to strengthen its economy.
AG HOLDER'S STATEMENT ON 75TH ANNIVERSARY OF NAACP LEGAL DEFENSE FUND
FROM: U.S. JUSTICE DEPARTMENT
Tuesday, April 14, 2015
Attorney General Holder Statement on the 75th Anniversary of the NAACP Legal Defense Fund
Attorney General Eric Holder released the following statement on the 75th anniversary of the NAACP Legal Defense Fund:
“On behalf of the United States Department of Justice, I congratulate the NAACP Legal Defense and Educational Fund on 75 years of passionate legal advocacy and extensive educational outreach in its tireless pursuit of equality and justice throughout the nation. Since 1940, the NAACP LDF has stood at the forefront of America’s struggle to ensure that equality under the law is protected by the law. From the historic victory in Brown v. Board of Education, achieved under the leadership of legendary founder Thurgood Marshall, to the wide-ranging efforts of the visionaries who continue to build on Brown’s promise today, the NAACP LDF has made once-unimaginable progress in expanding democracy, drawing attention to persistent disparities, and securing the more just society that all Americans deserve. As this vital organization celebrates 75 years of civil rights achievements, I look forward to all that it will accomplish in the days and years to come.”
Tuesday, April 14, 2015
Attorney General Holder Statement on the 75th Anniversary of the NAACP Legal Defense Fund
Attorney General Eric Holder released the following statement on the 75th anniversary of the NAACP Legal Defense Fund:
“On behalf of the United States Department of Justice, I congratulate the NAACP Legal Defense and Educational Fund on 75 years of passionate legal advocacy and extensive educational outreach in its tireless pursuit of equality and justice throughout the nation. Since 1940, the NAACP LDF has stood at the forefront of America’s struggle to ensure that equality under the law is protected by the law. From the historic victory in Brown v. Board of Education, achieved under the leadership of legendary founder Thurgood Marshall, to the wide-ranging efforts of the visionaries who continue to build on Brown’s promise today, the NAACP LDF has made once-unimaginable progress in expanding democracy, drawing attention to persistent disparities, and securing the more just society that all Americans deserve. As this vital organization celebrates 75 years of civil rights achievements, I look forward to all that it will accomplish in the days and years to come.”
U.S. DOD REPORTS ON AIRSTRIKES AGAINST ISIL IN SYRIA, IRAQ
FROM: U.S. DEFENSE DEPARTMENT
Coalition Continues Airstrikes Against ISIL in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, April 15, 2015 – U.S. and coalition military forces have continued to attack Islamic State of Iraq and the Levant terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.
Officials reported details of the latest strikes, which took place between 8 a.m. yesterday and 8 a.m. today, local time, noting that assessments of results are based on initial reports.
Airstrikes in Syria
Attack and fighter aircraft conducted six airstrikes in Syria:
-- Near Hasakah, two airstrikes struck two ISIL tactical units and destroyed six ISIL fighting positions, an ISIL vehicle bomb, an ISIL tunnel and an ISIL bunker.
-- Near Kobani, four airstrikes struck two ISIL tactical units and destroyed six ISIL fighting positions.
Airstrikes in Iraq
Fighter, attack and remotely piloted aircraft conducted 17 airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Beiji, nine airstrikes struck two large and six smaller tactical units and destroyed two ISIL fighting positions and an ISIL heavy machine gun.
-- Near Fallujah, two airstrikes struck two ISIL tactical units and destroyed an ISIL bunker.
-- Near Mosul, an airstrike struck an ISIL staging area.
-- Near Ramadi, three airstrikes struck two ISIL tactical units and destroyed an ISIL armored personnel carrier.
-- Near Sinjar, an airstrike struck an ISIL tactical unit and destroyed an ISIL building, an ISIL mortar system and an ISIL fighting position.
-- Near Tal Afar, an airstrike struck an ISIL tactical unit and destroyed an ISIL heavy machine gun and an ISIL fighting position.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations, officials said.
Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, Jordan, the Netherlands and the United Kingdom. Coalition nations conducting airstrikes in Syria include the United States, Bahrain, Canada, Jordan, Saudi Arabia and the United Arab Emirates.
Coalition Continues Airstrikes Against ISIL in Syria, Iraq
From a Combined Joint Task Force Operation Inherent Resolve News Release
SOUTHWEST ASIA, April 15, 2015 – U.S. and coalition military forces have continued to attack Islamic State of Iraq and the Levant terrorists in Syria and Iraq, Combined Joint Task Force Operation Inherent Resolve officials reported today.
Officials reported details of the latest strikes, which took place between 8 a.m. yesterday and 8 a.m. today, local time, noting that assessments of results are based on initial reports.
Airstrikes in Syria
Attack and fighter aircraft conducted six airstrikes in Syria:
-- Near Hasakah, two airstrikes struck two ISIL tactical units and destroyed six ISIL fighting positions, an ISIL vehicle bomb, an ISIL tunnel and an ISIL bunker.
-- Near Kobani, four airstrikes struck two ISIL tactical units and destroyed six ISIL fighting positions.
Airstrikes in Iraq
Fighter, attack and remotely piloted aircraft conducted 17 airstrikes in Iraq, approved by the Iraqi Ministry of Defense:
-- Near Beiji, nine airstrikes struck two large and six smaller tactical units and destroyed two ISIL fighting positions and an ISIL heavy machine gun.
-- Near Fallujah, two airstrikes struck two ISIL tactical units and destroyed an ISIL bunker.
-- Near Mosul, an airstrike struck an ISIL staging area.
-- Near Ramadi, three airstrikes struck two ISIL tactical units and destroyed an ISIL armored personnel carrier.
-- Near Sinjar, an airstrike struck an ISIL tactical unit and destroyed an ISIL building, an ISIL mortar system and an ISIL fighting position.
-- Near Tal Afar, an airstrike struck an ISIL tactical unit and destroyed an ISIL heavy machine gun and an ISIL fighting position.
Part of Operation Inherent Resolve
The strikes were conducted as part of Operation Inherent Resolve, the operation to eliminate the ISIL terrorist group and the threat they pose to Iraq, Syria, the region, and the wider international community. The destruction of ISIL targets in Syria and Iraq further limits the terrorist group's ability to project terror and conduct operations, officials said.
Coalition nations conducting airstrikes in Iraq include the United States, Australia, Belgium, Canada, Denmark, France, Jordan, the Netherlands and the United Kingdom. Coalition nations conducting airstrikes in Syria include the United States, Bahrain, Canada, Jordan, Saudi Arabia and the United Arab Emirates.
SECRETARY KERRY'S REMARKS WITH GERMAN FOREIGN MINISTER FRANK-WALTER STEINMETER
FROM: U.S. STATE DEPARTMENT
Remarks With German Foreign Minister Frank-Walter Steinmeier
Remarks
John Kerry
Secretary of State
Lubeck, Germany
April 15, 2015
FOREIGN MINISTER STEINMEIER: A very special welcome to our friend, John Kerry, who came a long way after his hearings in the Congress yesterday evening. It’s sunny weather in Lubeck, but that shouldn’t irritate us because the weather in international politics is quite stormy. The conflict in the eastern Ukraine is only two hours away from here, and we are discussing the situation in Ukraine, the Ukrainian conflict later on. And we are starting today with the stand on our negotiations with Iran. We have to discuss the situation in the Middle East with ISIS, about Iraq and Syria, and new reporting nearly every day about the changing situation in Yemen. We are quite satisfied that the United Nations Security Council yesterday decided about the resolution against arms delivery to the Houthis in Yemen. This is a little bit progress, but we are far away from a situation in which we are able to calm the situation to de-escalate or to find a political solution. We will discuss about the consequences of climate change for foreign policy and the stability of states and international relations, and we will discuss about maritime security here in a city in which we have a great tradition in which the Hanseatic League was founded and in which there is a (inaudible) experience on a regular base international order, and how to deal with situation in which this order is broken by somebody.
So I think it’s a splendid environment for our discussions today. And again, not only a good morning, but welcome here in Lubeck.
Some words?
SECRETARY KERRY: Well, we’re – first of all, let me say what a tremendous pleasure it is to be here in this world heritage city of Lubeck, which, as Frank Steinmeier just said, was the heart of the Hanseatic League and an important precursor to the rule of law. And we’re very, very privileged to be here with the G7, which has a critical voice right now on the major challenges that we face – ISIS, Yemen, the Middle East, Syria, Ukraine, Libya. The voices of every single country here are critical to the resolution of each of these conflicts. And I’m particularly grateful – and I think the other ministers join me in saying a profound thank you to Germany – for Germany’s great leadership. And Germany, together with France, have been absolutely critical to working through the challenge of Ukraine. We look to their leadership, and they’ve provided it.
So we have a lot to talk about today. And of course, looming large is the challenge of finishing the negotiation with Iran over the course of the next two and a half months. Yesterday, there was a compromise reached in Washington regarding congressional input. We are confident about our ability for the President to negotiate an agreement, and to do so with the ability to make the world safer. And again, every partner here has been absolutely critical to our ability to be able to get where we are today. So I’m grateful to be here to be part of this discussion for the period of time I can be, and I’m really grateful to each and every colleague here for the incredible partnership that is represented by the G7 at this point in time. And it’s wonderful particularly to be here in this historic city. Thank you.
Remarks With German Foreign Minister Frank-Walter Steinmeier
Remarks
John Kerry
Secretary of State
Lubeck, Germany
April 15, 2015
FOREIGN MINISTER STEINMEIER: A very special welcome to our friend, John Kerry, who came a long way after his hearings in the Congress yesterday evening. It’s sunny weather in Lubeck, but that shouldn’t irritate us because the weather in international politics is quite stormy. The conflict in the eastern Ukraine is only two hours away from here, and we are discussing the situation in Ukraine, the Ukrainian conflict later on. And we are starting today with the stand on our negotiations with Iran. We have to discuss the situation in the Middle East with ISIS, about Iraq and Syria, and new reporting nearly every day about the changing situation in Yemen. We are quite satisfied that the United Nations Security Council yesterday decided about the resolution against arms delivery to the Houthis in Yemen. This is a little bit progress, but we are far away from a situation in which we are able to calm the situation to de-escalate or to find a political solution. We will discuss about the consequences of climate change for foreign policy and the stability of states and international relations, and we will discuss about maritime security here in a city in which we have a great tradition in which the Hanseatic League was founded and in which there is a (inaudible) experience on a regular base international order, and how to deal with situation in which this order is broken by somebody.
So I think it’s a splendid environment for our discussions today. And again, not only a good morning, but welcome here in Lubeck.
Some words?
SECRETARY KERRY: Well, we’re – first of all, let me say what a tremendous pleasure it is to be here in this world heritage city of Lubeck, which, as Frank Steinmeier just said, was the heart of the Hanseatic League and an important precursor to the rule of law. And we’re very, very privileged to be here with the G7, which has a critical voice right now on the major challenges that we face – ISIS, Yemen, the Middle East, Syria, Ukraine, Libya. The voices of every single country here are critical to the resolution of each of these conflicts. And I’m particularly grateful – and I think the other ministers join me in saying a profound thank you to Germany – for Germany’s great leadership. And Germany, together with France, have been absolutely critical to working through the challenge of Ukraine. We look to their leadership, and they’ve provided it.
So we have a lot to talk about today. And of course, looming large is the challenge of finishing the negotiation with Iran over the course of the next two and a half months. Yesterday, there was a compromise reached in Washington regarding congressional input. We are confident about our ability for the President to negotiate an agreement, and to do so with the ability to make the world safer. And again, every partner here has been absolutely critical to our ability to be able to get where we are today. So I’m grateful to be here to be part of this discussion for the period of time I can be, and I’m really grateful to each and every colleague here for the incredible partnership that is represented by the G7 at this point in time. And it’s wonderful particularly to be here in this historic city. Thank you.
NORTH DAKOTA ARMY NATIONAL GUARD BATTLES WILDFIRES
FROM: U.S. DEFENSE DEPARTMENT
North Dakota Army Guard helicopters battling wildfires
By North Dakota National Guard | April 14, 2015
BISMARCK, N.D. — The North Dakota Army National Guard launched two UH-60 Black Hawk helicopters Monday to help first responders battle a wildfire south of Bismarck, near the residential area of Briardale.
Gov. Jack Dalrymple extended an executive order which authorized the adjutant general, Maj. Gen. David A. Sprynczynatyk, to activate North Dakota National Guard resources in support of local and tribal governments fighting wildfires.
The first Black Hawk launched at 3:57 p.m. CDT from the Guard’s Army Aviation Support Facility south of the Bismarck airport. The second helicopter took off at 5 p.m.
The Black Hawks are assigned to the Bismarck-based Company C, 2nd Battalion, 285th Aviation Regiment and will use 600-gallon water buckets to help control the wildfire.
The helicopters will scoop water out of the Missouri River and will assist as fuel and flying conditions allow or until the mission is complete, according to a National Guard news release.
North Dakota Army Guard helicopters battling wildfires
By North Dakota National Guard | April 14, 2015
BISMARCK, N.D. — The North Dakota Army National Guard launched two UH-60 Black Hawk helicopters Monday to help first responders battle a wildfire south of Bismarck, near the residential area of Briardale.
Gov. Jack Dalrymple extended an executive order which authorized the adjutant general, Maj. Gen. David A. Sprynczynatyk, to activate North Dakota National Guard resources in support of local and tribal governments fighting wildfires.
The first Black Hawk launched at 3:57 p.m. CDT from the Guard’s Army Aviation Support Facility south of the Bismarck airport. The second helicopter took off at 5 p.m.
The Black Hawks are assigned to the Bismarck-based Company C, 2nd Battalion, 285th Aviation Regiment and will use 600-gallon water buckets to help control the wildfire.
The helicopters will scoop water out of the Missouri River and will assist as fuel and flying conditions allow or until the mission is complete, according to a National Guard news release.
ISIL LOOSES TERRITORY
Right: The Islamic State of Iraq and the Levant’s reduced operating areas in Iraq and Syria as of April 2015. DoD photo.
ISIL Loses Control of Once-dominated Iraq Territory
By Terri Moon Cronk
DoD News, Defense Media Activity
WASHINGTON, April 13, 2015 – Some 25 percent to 30 percent of Iraqi territory has been taken back from Islamic State of Iraq and the Levant terrorist group control by coalition forces, Army Col. Steve Warren told reporters today.
Warren, a Pentagon spokesman, showed reporters a color-coded map of key populated sites in northern and central Iraq where ISIL was once the dominant force before Combined Joint Task Force Operation Inherent Resolve pushed the terrorists back.
Overall, he said, the map shows how “the combination of coalition air power and Iraqi ground forces are having an effect on the enemy’s ability to hold territory and to have freedom of maneuver,” he said.
“This equates to approximately 5,000 square miles to 6,000 square miles [of Iraq territory] since the peak of [ISIL] territorial influence in Iraq in August 2014,” Warren noted. “ISIL has lost large areas where it was once dominant.”
Essentially, he added, the ISIL front line has been pushed either west or south, depending on location, he said, in integral areas such as Erbil, Babil, Baghdad and the Kirkuk governances.
Coalition Maintains Pressure on ISIL
“Among other strategic infrastructure and sizeable towns where ISIL has lost territory are Mosul Dam, Zummar and the vicinity of Sinjar Mountain,” Warren said.
The corridor north of Tikrit has been “substantially retaken by friendly forces,” Warren said. With offensive pressure on ISIL, he said he expects Tikrit also will be cleared from ISIL “relatively soon.”
Beiji and a nearby oil refinery is still contested, and will continue to be the focus of airstrikes, he said.
While it is too early to say the tide of the battle is turning in Iraq, Iraqi security forces, along with coalition air power, “have unquestionably inflicted some damage on ISIL and have pushed ISIL back in a somewhat meaningful way,” Warren said.
FTC CHARGES DEBT BROKERS WITH EXPOSING CONSUMERS' INFORMATION ONLINE
FROM: U.S. FEDERAL TRADE COMMISSION
Debt Brokers Settle FTC Charges They Exposed Consumers’ Information Online
Defendants Posted Bank Account Numbers and Other Sensitive Information of 55,000 Consumers
Two debt brokers have agreed to settle Federal Trade Commission charges that they exposed highly sensitive information about tens of thousands of consumers while trying to sell portfolios of consumer debt on a public website. The agreements with the FTC require the defendants to abide by strict new requirements to protect consumers’ sensitive information.
In separate cases filed last year against Cornerstone and Company, LLC and its owner, Brandon Lambert, and Bayview Solutions, LLC and its owner, Aron Tomko, the FTC alleged the debt brokers posted unencrypted documents online containing consumers’ names, addresses, credit card numbers, bank account numbers, and amounts the consumers allegedly owed. The sensitive data was posted on a website geared for debt buyers, sellers, and other members of the debt collection industry, but accessible to anyone with an internet connection.
The FTC’s complaints alleged that by disclosing consumers’ information online, the defendants exposed those consumers to risks ranging from identity theft to “phantom debt” collection. Phantom debt collection involves predatory debt collectors who try to extract payments from consumers without the authority to collect the debts.
In response to the FTC’s lawsuits, a federal court ordered the website hosting the sensitive information to take it down immediately. It also ordered the defendants to notify the affected consumers that their information had been exposed and of steps they could take to protect themselves.
Under the settlements, the defendants must establish and maintain security programs that will protect consumers’ sensitive personal information. In addition, the companies must have their security programs evaluated both initially and every two years by a certified third party.
The Commission votes approving the proposed stipulated final orders were 5-0. The orders are subject to court approval. The FTC filed the proposed stipulated final orders in the U.S. District Court for the District of Columbia.
Buying or selling debts? Check out the FTC’s seven tips for keeping data secure.
NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.
Debt Brokers Settle FTC Charges They Exposed Consumers’ Information Online
Defendants Posted Bank Account Numbers and Other Sensitive Information of 55,000 Consumers
Two debt brokers have agreed to settle Federal Trade Commission charges that they exposed highly sensitive information about tens of thousands of consumers while trying to sell portfolios of consumer debt on a public website. The agreements with the FTC require the defendants to abide by strict new requirements to protect consumers’ sensitive information.
In separate cases filed last year against Cornerstone and Company, LLC and its owner, Brandon Lambert, and Bayview Solutions, LLC and its owner, Aron Tomko, the FTC alleged the debt brokers posted unencrypted documents online containing consumers’ names, addresses, credit card numbers, bank account numbers, and amounts the consumers allegedly owed. The sensitive data was posted on a website geared for debt buyers, sellers, and other members of the debt collection industry, but accessible to anyone with an internet connection.
The FTC’s complaints alleged that by disclosing consumers’ information online, the defendants exposed those consumers to risks ranging from identity theft to “phantom debt” collection. Phantom debt collection involves predatory debt collectors who try to extract payments from consumers without the authority to collect the debts.
In response to the FTC’s lawsuits, a federal court ordered the website hosting the sensitive information to take it down immediately. It also ordered the defendants to notify the affected consumers that their information had been exposed and of steps they could take to protect themselves.
Under the settlements, the defendants must establish and maintain security programs that will protect consumers’ sensitive personal information. In addition, the companies must have their security programs evaluated both initially and every two years by a certified third party.
The Commission votes approving the proposed stipulated final orders were 5-0. The orders are subject to court approval. The FTC filed the proposed stipulated final orders in the U.S. District Court for the District of Columbia.
Buying or selling debts? Check out the FTC’s seven tips for keeping data secure.
NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.
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