FROM: NASA
NASA Announces Advanced Composite Research Partnership
NASA has selected six companies from five U.S. states to participate in a government-and-industry partnership to advance composite materials research and certification.
The companies are:
• Bell Helicopter Textron Inc. of Fort Worth, Texas
• GE Aviation of Cincinnati
• Lockheed Martin Aeronautics Company of Palmdale, Calif.
• Northrop Grumman Aerospace Systems of Redondo Beach, Calif.
• Boeing Research & Technology of St. Louis
• United Technologies Corporation and subsidiary Pratt & Whitney of Hartford, Conn.
They were selected from 20 proposals submitted by teams from industry and academia in response to a call from the Advanced Composites Project, which is part of NASA's Aeronautics Research Mission Directorate's Integrated Systems Research Program. The project sought proposals to reduce the time for development, verification and regulatory acceptance of new composite materials and structures.
A panel of experts from NASA, the Federal Aviation Administration and the U.S. Air Force Research Laboratory reviewed the submissions and assessed them according to specific criteria. The six firms were chosen for their technical expertise, willingness and ability to share in costs, certification experience with government agencies, focused technology areas and partnership histories.
The first task for the partners is to develop articles of collaboration and establish how the alliance will work and how companies may be added in the future.
Saturday, September 28, 2013
Friday, September 27, 2013
SECRETARY OF STATE KERRY'S REMARKS AT FRIENDS OF SYRIAN PEOPLE MINISTERIAL
FROM: U.S. STATE DEPARTMENT
Remarks at the Friends of the Syrian People Ministerial
Remarks
John Kerry
Secretary of State
New York City
September 26, 2013
SECRETARY KERRY: (In progress) We’re deeply grateful, all of us, for your having played a critical role – the critical role in inviting us here, in bringing us here. And I’m very pleased that President Jarba of the Syrian Opposition Council is here with us in New York. I think it’s very fitting that President Jarba was raised in Al-Hasakah, because that’s a part of Syria where Arabs, Kurds, the Syrians, and Armenians learned from one another for centuries. That foundation for pluralism and partnership has tragically been torn apart by the conflict that is now ravaging the country, a conflict which even as we have moved to try to separate the chemical weapons, must imperatively demand all of our attention.
We have, all of us, come to know too well an Assad who kills indiscriminately, who bombs women and children, Scud missiles on hospitals, artillery destroying students in a university. Millions of people displaced, millions of people refugeed, huge tensions on the surrounding countries, all of it for Assad to stay in power – a man who has lost any legitimacy to govern.
President Jarba understands that Syria can have a different future. And he understands that Syria can be a nation defined not by this kind of chaos and personal ambition and recklessness, but defined by its rich history of diversity – not by the forces that are content to destroy them. And through our close partnership with the Syrian Opposition Coalition, the legitimate representative, we believe, of the Syrian people, we can lay the foundation for a peaceful Syria where all Syrians have a say and a shape in a shared future.
The Syrian Opposition Coalition’s recent endorsement of Geneva 2 is a critical part of that effort, and I want to commend them for their support. I think almost everybody here has decided there is no military victory. Syria will implode long before any side could claim a military victory. And the fact is there is a process already in place, called Geneva 1, which our friends the Russians have signed on to, which calls for a transition government with quite detailed procedures about how you would have a constitutional process and election, and how Syrians would be able then to choose for the future of Syria. This is a transitional government that must be chosen by mutual consent. And there isn’t anybody in the world who believes that Assad would ever get the consent to be part of such a government.
So we need to move rapidly to put this process in place – a process which already calls for credible elections through that Geneva communique. So we intend to push very hard. We will have a meeting with Lakhdar Brahimi this Friday. I hope we will get this Geneva conference moving. Not that we have an illusion that it may resolve itself in days or even weeks, or perhaps months, but that process must begin so that the world knows we’re paying attention to the crisis of Syria, that it’s unacceptable that it continue in its current status, and that there is a road forward providing that Assad and the people who support him are willing to embrace what the international community has already adopted.
As we invest in the political track, the United States of America will remain steadfast in our efforts to have an impact on the balance on the ground. And we will continue to support the opposition, hopefully thereby moving us closer to a negotiated settlement.
We’ve seen what we’re up against, and we understand the urgency of our working together. There is no way to turn our backs on the nature of the attack that took place on August 21st, an attack that took so many lives in the dead of night because Assad was prepared to use a weapon that has been outlawed and not used in time of war since 1925. That death toll is added to the death toll of already 100,000, and unless all of us make clear our determination to assist the Syrian Opposition Coalition and to help move towards Geneva, that death toll will be added to, with grim figures that could even reach to 200,000, before the international community has applied the lessons that we’ve learned.
After Rwanda, we said never again. After World War II, we said never again. I think the words “never again” need to have meaning. So as we go forward, I’m glad to say to you that this afternoon, Foreign Minister Lavrov and I reached an agreement, which we need to run by our colleagues, with respect to the potential of a resolution. And our hope is that the Security Council will pass a resolution that will make binding and enforceable the removal of the chemical weapons.
But none of us can approach this with an understanding or a belief that just removing the chemical weapons absolves us of our responsibility to deal with the humanitarian crisis, and frankly, a crisis of multilateralism, a crisis of international institutions. We must help bring about a negotiated solution.
We believe we have a strong partner in President Jarba as we pursue these efforts, and it’s our great hope that the pluralism and the partnership that once defined his homeland, the secularity that defines his homeland, will define Syria for all of its citizens in the years to come. And we will do everything in our power to help provide that foundation.
Thank you, Mr. Foreign Minister.
Remarks at the Friends of the Syrian People Ministerial
Remarks
John Kerry
Secretary of State
New York City
September 26, 2013
SECRETARY KERRY: (In progress) We’re deeply grateful, all of us, for your having played a critical role – the critical role in inviting us here, in bringing us here. And I’m very pleased that President Jarba of the Syrian Opposition Council is here with us in New York. I think it’s very fitting that President Jarba was raised in Al-Hasakah, because that’s a part of Syria where Arabs, Kurds, the Syrians, and Armenians learned from one another for centuries. That foundation for pluralism and partnership has tragically been torn apart by the conflict that is now ravaging the country, a conflict which even as we have moved to try to separate the chemical weapons, must imperatively demand all of our attention.
We have, all of us, come to know too well an Assad who kills indiscriminately, who bombs women and children, Scud missiles on hospitals, artillery destroying students in a university. Millions of people displaced, millions of people refugeed, huge tensions on the surrounding countries, all of it for Assad to stay in power – a man who has lost any legitimacy to govern.
President Jarba understands that Syria can have a different future. And he understands that Syria can be a nation defined not by this kind of chaos and personal ambition and recklessness, but defined by its rich history of diversity – not by the forces that are content to destroy them. And through our close partnership with the Syrian Opposition Coalition, the legitimate representative, we believe, of the Syrian people, we can lay the foundation for a peaceful Syria where all Syrians have a say and a shape in a shared future.
The Syrian Opposition Coalition’s recent endorsement of Geneva 2 is a critical part of that effort, and I want to commend them for their support. I think almost everybody here has decided there is no military victory. Syria will implode long before any side could claim a military victory. And the fact is there is a process already in place, called Geneva 1, which our friends the Russians have signed on to, which calls for a transition government with quite detailed procedures about how you would have a constitutional process and election, and how Syrians would be able then to choose for the future of Syria. This is a transitional government that must be chosen by mutual consent. And there isn’t anybody in the world who believes that Assad would ever get the consent to be part of such a government.
So we need to move rapidly to put this process in place – a process which already calls for credible elections through that Geneva communique. So we intend to push very hard. We will have a meeting with Lakhdar Brahimi this Friday. I hope we will get this Geneva conference moving. Not that we have an illusion that it may resolve itself in days or even weeks, or perhaps months, but that process must begin so that the world knows we’re paying attention to the crisis of Syria, that it’s unacceptable that it continue in its current status, and that there is a road forward providing that Assad and the people who support him are willing to embrace what the international community has already adopted.
As we invest in the political track, the United States of America will remain steadfast in our efforts to have an impact on the balance on the ground. And we will continue to support the opposition, hopefully thereby moving us closer to a negotiated settlement.
We’ve seen what we’re up against, and we understand the urgency of our working together. There is no way to turn our backs on the nature of the attack that took place on August 21st, an attack that took so many lives in the dead of night because Assad was prepared to use a weapon that has been outlawed and not used in time of war since 1925. That death toll is added to the death toll of already 100,000, and unless all of us make clear our determination to assist the Syrian Opposition Coalition and to help move towards Geneva, that death toll will be added to, with grim figures that could even reach to 200,000, before the international community has applied the lessons that we’ve learned.
After Rwanda, we said never again. After World War II, we said never again. I think the words “never again” need to have meaning. So as we go forward, I’m glad to say to you that this afternoon, Foreign Minister Lavrov and I reached an agreement, which we need to run by our colleagues, with respect to the potential of a resolution. And our hope is that the Security Council will pass a resolution that will make binding and enforceable the removal of the chemical weapons.
But none of us can approach this with an understanding or a belief that just removing the chemical weapons absolves us of our responsibility to deal with the humanitarian crisis, and frankly, a crisis of multilateralism, a crisis of international institutions. We must help bring about a negotiated solution.
We believe we have a strong partner in President Jarba as we pursue these efforts, and it’s our great hope that the pluralism and the partnership that once defined his homeland, the secularity that defines his homeland, will define Syria for all of its citizens in the years to come. And we will do everything in our power to help provide that foundation.
Thank you, Mr. Foreign Minister.
EPA EVALUATES SAFER, ALTERNATIVE FLAME RETARDANT CHEMICALS
FROM: ENVIRONMENTAL PROTECTION AGENCY
September 24, 2013
EPA Evaluates Flame Retardants Including a Safer Substitute for HBCD
WASHINGTON — As part of its ongoing efforts to promote the design and use of safer chemicals, today, the U.S. Environmental Protection Agency (EPA) has released a draft report on alternatives to a flame retardant chemical, hexabromocyclododecane (HBCD), which has persistent, bioaccumulative and toxic characteristics. The findings in the report can help manufacturers identify safer alternatives to the use of HBCD in polystyrene building insulation.
“While EPA continues to support much needed reform of the Toxics Substances Control Act (TSCA), EPA is taking steps now to address the public’s concern with certain flame retardant chemicals, including making information available to companies to help them make decisions on safer chemicals,” said Jim Jones, EPA's assistant administrator for the Office of Chemical Safety and Pollution Prevention. “The conclusions in this report are enabling companies who choose to move away from HBCD to do so with confidence that the potential for unintended consequences is minimized.”
The Design for the Environment (DfE) Alternatives Assessment draft report, developed with stakeholder and public participation, describes the uses of HBCD with an overview of life cycle and exposure information. The report identifies two viable chemical alternatives for use in polystyrene building insulation, in addition to a list of substances that are not currently expected to be viable. One of the alternatives, a butadiene styrene brominated copolymer, is anticipated to be safer than HBCD and is currently in commercial production in the U.S. Alternative materials are also identified in the report.
In March 2013, as part of a broader effort to address flame retardant chemicals, EPA identified 20 flame retardants for risk assessment under the TSCA work plan. This includes developing full risk assessments on four of these chemicals, including HBCD. EPA will use the information from these full assessments to better understand chemicals with similar structures and characteristics. If EPA identifies potential risks, the agency will evaluate and pursue appropriate risk reduction actions. EPA will begin development of these risk assessments later this year and anticipates making the draft risk assessments available for public comment and peer review in 2014.
To further assist companies in selecting safer chemicals, EPA recently launched ChemView, a web-based tool designed to provide the public and decision-makers with a single access point to a wide array of chemical data, like the results of the HBCD alternatives assessment, that can help companies make decisions on developing and using safer chemicals in the products they manufacture.
September 24, 2013
EPA Evaluates Flame Retardants Including a Safer Substitute for HBCD
WASHINGTON — As part of its ongoing efforts to promote the design and use of safer chemicals, today, the U.S. Environmental Protection Agency (EPA) has released a draft report on alternatives to a flame retardant chemical, hexabromocyclododecane (HBCD), which has persistent, bioaccumulative and toxic characteristics. The findings in the report can help manufacturers identify safer alternatives to the use of HBCD in polystyrene building insulation.
“While EPA continues to support much needed reform of the Toxics Substances Control Act (TSCA), EPA is taking steps now to address the public’s concern with certain flame retardant chemicals, including making information available to companies to help them make decisions on safer chemicals,” said Jim Jones, EPA's assistant administrator for the Office of Chemical Safety and Pollution Prevention. “The conclusions in this report are enabling companies who choose to move away from HBCD to do so with confidence that the potential for unintended consequences is minimized.”
The Design for the Environment (DfE) Alternatives Assessment draft report, developed with stakeholder and public participation, describes the uses of HBCD with an overview of life cycle and exposure information. The report identifies two viable chemical alternatives for use in polystyrene building insulation, in addition to a list of substances that are not currently expected to be viable. One of the alternatives, a butadiene styrene brominated copolymer, is anticipated to be safer than HBCD and is currently in commercial production in the U.S. Alternative materials are also identified in the report.
In March 2013, as part of a broader effort to address flame retardant chemicals, EPA identified 20 flame retardants for risk assessment under the TSCA work plan. This includes developing full risk assessments on four of these chemicals, including HBCD. EPA will use the information from these full assessments to better understand chemicals with similar structures and characteristics. If EPA identifies potential risks, the agency will evaluate and pursue appropriate risk reduction actions. EPA will begin development of these risk assessments later this year and anticipates making the draft risk assessments available for public comment and peer review in 2014.
To further assist companies in selecting safer chemicals, EPA recently launched ChemView, a web-based tool designed to provide the public and decision-makers with a single access point to a wide array of chemical data, like the results of the HBCD alternatives assessment, that can help companies make decisions on developing and using safer chemicals in the products they manufacture.
UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEK ENDING SEPTEMBER 21, 2013
FROM: U.S. DEPARTMENT OF LABOR
SEASONALLY ADJUSTED DATA
In the week ending September 21, the advance figure for seasonally adjusted initial claims was 305,000, a decrease of 5,000 from the previous week's revised figure of 310,000. The 4-week moving average was 308,000, a decrease of 7,000 from the previous week's revised average of 315,000.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending September 14, an increase of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending September 14 was 2,823,000, an increase of 35,000 from the preceding week's revised level of 2,788,000. The 4-week moving average was 2,842,500, a decrease of 42,750 from the preceding week's revised average of 2,885,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 253,668 in the week ending September 21, a decrease of 19,250 from the previous week. There were 303,685 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 1.9 percent during the week ending September 14, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,464,570, a decrease of 41,762 from the preceding week's revised level of 2,506,332. A year earlier, the rate was 2.2 percent and the volume was 2,841,521.
The total number of people claiming benefits in all programs for the week ending September 7 was 3,921,399, an increase of 22,769 from the previous week. There were 5,173,998 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending September 7.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,133 in the week ending September 14, an increase of 206 from the prior week. There were 2,155 initial claims filed by newly discharged veterans, an increase of 82 from the preceding week.
There were 19,020 former Federal civilian employees claiming UI benefits for the week ending September 7, an increase of 369 from the previous week. Newly discharged veterans claiming benefits totaled 31,341, an increase of 45 from the prior week.
States reported 1,348,526 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending September 7, an increase of 32,563 from the prior week. There were 2,160,448 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending September 14 were in Puerto Rico (4.2), New Jersey (3.4), Alaska (3.3), Virgin Islands (3.1), Connecticut (2.9), New Mexico (2.9), Pennsylvania (2.8), Nevada (2.6), New York (2.6), and Illinois (2.5).
The largest increases in initial claims for the week ending September 14 were in California (+22,611), Florida (+3,946), Georgia (+2,690), Nevada (+2,504), and New York (+1,871), while the largest decreases were in Oklahoma (-439), Tennessee (-404), Kansas (-351), Massachusetts (-304), and Idaho (-294).
SEASONALLY ADJUSTED DATA
In the week ending September 21, the advance figure for seasonally adjusted initial claims was 305,000, a decrease of 5,000 from the previous week's revised figure of 310,000. The 4-week moving average was 308,000, a decrease of 7,000 from the previous week's revised average of 315,000.
The advance seasonally adjusted insured unemployment rate was 2.2 percent for the week ending September 14, an increase of 0.1 percentage point from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending September 14 was 2,823,000, an increase of 35,000 from the preceding week's revised level of 2,788,000. The 4-week moving average was 2,842,500, a decrease of 42,750 from the preceding week's revised average of 2,885,250.
UNADJUSTED DATA
The advance number of actual initial claims under state programs, unadjusted, totaled 253,668 in the week ending September 21, a decrease of 19,250 from the previous week. There were 303,685 initial claims in the comparable week in 2012.
The advance unadjusted insured unemployment rate was 1.9 percent during the week ending September 14, unchanged from the prior week's unrevised rate. The advance unadjusted number for persons claiming UI benefits in state programs totaled 2,464,570, a decrease of 41,762 from the preceding week's revised level of 2,506,332. A year earlier, the rate was 2.2 percent and the volume was 2,841,521.
The total number of people claiming benefits in all programs for the week ending September 7 was 3,921,399, an increase of 22,769 from the previous week. There were 5,173,998 persons claiming benefits in all programs in the comparable week in 2012.
No state was triggered "on" the Extended Benefits program during the week ending September 7.
Initial claims for UI benefits filed by former Federal civilian employees totaled 1,133 in the week ending September 14, an increase of 206 from the prior week. There were 2,155 initial claims filed by newly discharged veterans, an increase of 82 from the preceding week.
There were 19,020 former Federal civilian employees claiming UI benefits for the week ending September 7, an increase of 369 from the previous week. Newly discharged veterans claiming benefits totaled 31,341, an increase of 45 from the prior week.
States reported 1,348,526 persons claiming Emergency Unemployment Compensation (EUC) benefits for the week ending September 7, an increase of 32,563 from the prior week. There were 2,160,448 persons claiming EUC in the comparable week in 2012. EUC weekly claims include first, second, third, and fourth tier activity.
The highest insured unemployment rates in the week ending September 14 were in Puerto Rico (4.2), New Jersey (3.4), Alaska (3.3), Virgin Islands (3.1), Connecticut (2.9), New Mexico (2.9), Pennsylvania (2.8), Nevada (2.6), New York (2.6), and Illinois (2.5).
The largest increases in initial claims for the week ending September 14 were in California (+22,611), Florida (+3,946), Georgia (+2,690), Nevada (+2,504), and New York (+1,871), while the largest decreases were in Oklahoma (-439), Tennessee (-404), Kansas (-351), Massachusetts (-304), and Idaho (-294).
ICAP BROKERS FACE FELONY CHARGES FOR ALLEGED LONG-RUNNING MANIPULATION OF LIBOR INTEREST RATES
FROM: U.S. JUSTICE DEPARTMENT
WASHINGTON — Two former derivatives brokers and a former cash broker employed by London-based brokerage firm ICAP were charged as part of the ongoing criminal investigation into the manipulation of the London Interbank Offered Rate (LIBOR), the Justice Department announced today.
Darrell Read, who resides in New Zealand, and Daniel Wilkinson and Colin Goodman, both of England, were charged with conspiracy to commit wire fraud and two counts of wire fraud in a criminal complaint unsealed in Manhattan federal court earlier today. They each face a maximum penalty of 30 years in prison for each count upon conviction.
“By allegedly participating in a scheme to manipulate benchmark interest rates for financial gain, these defendants undermined the integrity of the global markets,” said Attorney General Eric Holder. “They were supposed to be honest brokers, but instead, they put their own financial interests ahead of that larger responsibility. And as a result, transactions and financial products around the world were compromised, because they were tied to a rate that was distorted due to the brokers’ dishonesty. These charges underscore the Justice Department’s determination to hold accountable all those whose conduct threatens the integrity of our financial markets.”
“These three men are accused of repeatedly and deliberately spreading false information to banks and investors around the world in order to fraudulently move the market and help their client fleece his counterparties,” said Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division. “Our criminal investigation of the manipulation of LIBOR by some of the largest banks in the world has led us from New York to London, to Tokyo, and other financial hubs around the globe. These important charges are just the latest law-enforcement action in the Criminal Division and Antitrust Division’s global LIBOR investigation, and reflect the Department’s continued dedication to detecting, and prosecuting, financial fraudsters who affect U.S. markets, whether they work at a bank, or a brokerage, and whether they carry out their fraud from a desk in the United States, or abroad.”
“The complaint unsealed today charges Colin Goodman, Daniel Wilkinson and Darrell Read for conspiring to manipulate benchmark interest rates that determined the profitability of their client’s trades,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “In exchange for bigger bonus checks, the three defendants undermined financial markets around the world by compromising the integrity of globally used interest rate benchmarks. The Department continues to demonstrate its commitment to protecting the interest of American citizens in free and fair financial markets.”
“Corporate and securities fraud involving the manipulation of these rates causes a worldwide impact on trading positions and erodes the integrity of the market and confidence in Wall Street,” said Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office. “Unraveling such complex financial schemes is difficult and time consuming. Today’s charges are the result of the hard work of the FBI special agents and forensic accountants who dedicated significant time and resources to investigating this case.”
According to the criminal complaint, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London. At the time relevant to the criminal complaint, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the contributor panel) selected by the BBA.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were estimated at approximately $450 trillion.
According to allegations in the criminal complaint filed in this case, between July 2006 and September 2010, Wilkinson was a desk director employed in the London office of ICAP, where he supervised a group of derivatives brokers – including Read – specializing in Yen-based financial products. Generally, the desk’s clients were derivatives traders at large financial institutions, and the transactions brokered by Wilkinson, Read and others on the desk essentially consisted of bets between traders on the direction in which Yen LIBOR would move. Between July 2006 and September 2009, the desk’s largest client was a senior trader at UBS (UBS Trader) in Tokyo, to whom Read spoke almost daily. Because of the large size of the client’s trading positions, even slight moves of a fraction of a percent in Yen LIBOR could generate large profits. For example, UBS Trader once told Read that a 0.01 percent – or one basis point – movement in the final Yen LIBOR fixing on a specific date could result in $3 million profit for his trading positions. A significant part of both Read’s and Wilkinson’s compensation was tied to the brokerage fees generated by UBS Trader and paid to ICAP.
Goodman was a cash broker at ICAP’s London office during the relevant time period. In addition to brokering cash transactions, Goodman distributed a daily email to individuals outside of ICAP, including derivatives traders at several large banks as well as those responsible for providing the BBA with LIBOR submissions at certain banks. Goodman’s email contained what was termed his “SUGGESTED LIBORS,” purported predictions of where Yen LIBOR ultimately would fix each day across eight specified borrowing periods. Read and Wilkinson, along with Goodman himself, often referred to Goodman as “lord libor.”
The complaint alleges that Read, Wilkinson and Goodman, together with UBS Trader, executed a sustained and systematic scheme to move Yen LIBOR in a direction favorable to UBS Trader’s trading positions.
According to the criminal complaint, the primary strategy employed by Read, Wilkinson and Goodman to execute the scheme was to use Goodman’s “SUGGESTED LIBORS” email to disseminate misinformation to Yen LIBOR panel banks in hopes that the banks would rely on the misinformation when making their own respective Yen LIBOR submissions to the BBA for inclusion in the published fix. Rather than providing good faith predictions as to where Yen LIBOR would fix, Goodman instead often used his daily email to set forth predictions which benefitted UBS Trader’s trading positions.
Beginning in or about June 2007, Goodman was paid a bonus through the desk Wilkinson supervised, allegedly intended, at least in part, to reward Goodman for his role in their effort to influence and manipulate the published Yen LIBOR fix.
As a second strategy, Read and Wilkinson allegedly further agreed to contact interest rate derivatives traders and submitters employed at Yen LIBOR panel banks in an effort to cause them to make false and misleading submissions to the BBA at UBS Trader’s behest.
As alleged in the charging document, Read, Wilkinson, Goodman, UBS Trader, and other co-conspirators often executed their scheme through electronic chats and email exchanges. For example, on June 28, 2007, in an email message, Read told Wilkinson: “DAN THIS IS GETTING SERIOUS [UBS TRADER] IS NOT HAPPY WITH THE WAY THINGS ARE PROGRESSING . . . CAN YOU PLEASE GET HOLD OF COLIN AND GET HIM TO SEND OUT 6 MOS LIBOR AT 0.865 AND TO GET HIS BANKS SETTING IT HIGH. THIS IS VERY IMPORTANT BECAUSE [UBS TRADER] IS QUESTIONING MY (AND OUR) WORTH.”
The complaint alleges that the defendants were aware of the effects that Goodman’s false and fraudulent “SUGGESTED LIBORS” had on submissions by Yen LIBOR panel banks. For example, on Nov. 20, 2008, Read asked UBS Trader, “you have a really big fix tonight I believe? if Colin sends out 6m at a more realistic level than 1.10 [%] i reckon [the two panel banks] will parrot him, it might mean 6m coming down a bit.” On the following day, Nov. 21, 2008, Goodman moved his suggestion for 6-month Yen LIBOR down by nine basis points. The two other banks mirrored Goodman’s suggestion, moving their 6-month Yen LIBOR submissions down by nine basis points.
According to allegations in the complaint, Read counseled UBS Trader how to most effectively manipulate Yen LIBOR. For example, UBS Trader told Read in a July 22, 2009, electronic chat that “11th aug is the big date...i still have lots of 6m fixings till the 10th.” Read responded to UBS Trader, “if you drop [UBS’s] 6m dramatically on the 11th mate, it will look v fishy... . I’d be v careful how you play it, there might be cause for a drop as you cross into a new month but a couple of weeks in might get people questioning you.” UBS Trader replied, “don’t worry will stagger the drops...ie 5bp then 5bp,” and Read told UBS Trader, “ok mate, don’t want you getting into [expletive].” UBS Trader again assured Read that UBS and two additional panel banks would stagger their drops in coordination, and Read concluded, “great the plan is hatched and sounds sensible.”
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts of the FBI’s Washington Field Office. The prosecution is being handled by Deputy Chief William Stellmach and Trial Attorney Sandra L. Moser of the Criminal Division’s Fraud Section and Trial Attorneys Eric Schleef and Kristina Srica of the Antitrust Division. Trial Attorneys Alexander Berlin and Thomas B.W. Hall, Law Clerk Andrew Tyler, and Paralegal Specialist Kevin Sitarski of the Criminal Division’s Fraud Section, along with Assistant Chief Elizabeth Prewitt and Trial Attorney Richard Powers of the Antitrust Division, and former Trial Attorney Luke Marsh have also provided valuable assistance. The Criminal Division’s Office of International Affairs has provided assistance in this matter as well.
The broader investigation relating to LIBOR and other benchmark rates has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the Department and, along with the U.K. Financial Conduct Authority, has played a major role in the investigation. The Securities and Exchange Commission has also provided valuable assistance for which the Department is grateful. The Department also expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation, and the Department is grateful for their cooperation and assistance as well.
Finally, the Department acknowledges ICAP’s continuing cooperation in the Department’s ongoing investigation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
WASHINGTON — Two former derivatives brokers and a former cash broker employed by London-based brokerage firm ICAP were charged as part of the ongoing criminal investigation into the manipulation of the London Interbank Offered Rate (LIBOR), the Justice Department announced today.
Darrell Read, who resides in New Zealand, and Daniel Wilkinson and Colin Goodman, both of England, were charged with conspiracy to commit wire fraud and two counts of wire fraud in a criminal complaint unsealed in Manhattan federal court earlier today. They each face a maximum penalty of 30 years in prison for each count upon conviction.
“By allegedly participating in a scheme to manipulate benchmark interest rates for financial gain, these defendants undermined the integrity of the global markets,” said Attorney General Eric Holder. “They were supposed to be honest brokers, but instead, they put their own financial interests ahead of that larger responsibility. And as a result, transactions and financial products around the world were compromised, because they were tied to a rate that was distorted due to the brokers’ dishonesty. These charges underscore the Justice Department’s determination to hold accountable all those whose conduct threatens the integrity of our financial markets.”
“These three men are accused of repeatedly and deliberately spreading false information to banks and investors around the world in order to fraudulently move the market and help their client fleece his counterparties,” said Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division. “Our criminal investigation of the manipulation of LIBOR by some of the largest banks in the world has led us from New York to London, to Tokyo, and other financial hubs around the globe. These important charges are just the latest law-enforcement action in the Criminal Division and Antitrust Division’s global LIBOR investigation, and reflect the Department’s continued dedication to detecting, and prosecuting, financial fraudsters who affect U.S. markets, whether they work at a bank, or a brokerage, and whether they carry out their fraud from a desk in the United States, or abroad.”
“The complaint unsealed today charges Colin Goodman, Daniel Wilkinson and Darrell Read for conspiring to manipulate benchmark interest rates that determined the profitability of their client’s trades,” said Scott D. Hammond, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “In exchange for bigger bonus checks, the three defendants undermined financial markets around the world by compromising the integrity of globally used interest rate benchmarks. The Department continues to demonstrate its commitment to protecting the interest of American citizens in free and fair financial markets.”
“Corporate and securities fraud involving the manipulation of these rates causes a worldwide impact on trading positions and erodes the integrity of the market and confidence in Wall Street,” said Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office. “Unraveling such complex financial schemes is difficult and time consuming. Today’s charges are the result of the hard work of the FBI special agents and forensic accountants who dedicated significant time and resources to investigating this case.”
According to the criminal complaint, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR is published by the British Bankers’ Association (BBA), a trade association based in London. At the time relevant to the criminal complaint, LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for a given currency at a specific maturity is the result of a calculation based upon submissions from a panel of banks for that currency (the contributor panel) selected by the BBA.
LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were estimated at approximately $450 trillion.
According to allegations in the criminal complaint filed in this case, between July 2006 and September 2010, Wilkinson was a desk director employed in the London office of ICAP, where he supervised a group of derivatives brokers – including Read – specializing in Yen-based financial products. Generally, the desk’s clients were derivatives traders at large financial institutions, and the transactions brokered by Wilkinson, Read and others on the desk essentially consisted of bets between traders on the direction in which Yen LIBOR would move. Between July 2006 and September 2009, the desk’s largest client was a senior trader at UBS (UBS Trader) in Tokyo, to whom Read spoke almost daily. Because of the large size of the client’s trading positions, even slight moves of a fraction of a percent in Yen LIBOR could generate large profits. For example, UBS Trader once told Read that a 0.01 percent – or one basis point – movement in the final Yen LIBOR fixing on a specific date could result in $3 million profit for his trading positions. A significant part of both Read’s and Wilkinson’s compensation was tied to the brokerage fees generated by UBS Trader and paid to ICAP.
Goodman was a cash broker at ICAP’s London office during the relevant time period. In addition to brokering cash transactions, Goodman distributed a daily email to individuals outside of ICAP, including derivatives traders at several large banks as well as those responsible for providing the BBA with LIBOR submissions at certain banks. Goodman’s email contained what was termed his “SUGGESTED LIBORS,” purported predictions of where Yen LIBOR ultimately would fix each day across eight specified borrowing periods. Read and Wilkinson, along with Goodman himself, often referred to Goodman as “lord libor.”
The complaint alleges that Read, Wilkinson and Goodman, together with UBS Trader, executed a sustained and systematic scheme to move Yen LIBOR in a direction favorable to UBS Trader’s trading positions.
According to the criminal complaint, the primary strategy employed by Read, Wilkinson and Goodman to execute the scheme was to use Goodman’s “SUGGESTED LIBORS” email to disseminate misinformation to Yen LIBOR panel banks in hopes that the banks would rely on the misinformation when making their own respective Yen LIBOR submissions to the BBA for inclusion in the published fix. Rather than providing good faith predictions as to where Yen LIBOR would fix, Goodman instead often used his daily email to set forth predictions which benefitted UBS Trader’s trading positions.
Beginning in or about June 2007, Goodman was paid a bonus through the desk Wilkinson supervised, allegedly intended, at least in part, to reward Goodman for his role in their effort to influence and manipulate the published Yen LIBOR fix.
As a second strategy, Read and Wilkinson allegedly further agreed to contact interest rate derivatives traders and submitters employed at Yen LIBOR panel banks in an effort to cause them to make false and misleading submissions to the BBA at UBS Trader’s behest.
As alleged in the charging document, Read, Wilkinson, Goodman, UBS Trader, and other co-conspirators often executed their scheme through electronic chats and email exchanges. For example, on June 28, 2007, in an email message, Read told Wilkinson: “DAN THIS IS GETTING SERIOUS [UBS TRADER] IS NOT HAPPY WITH THE WAY THINGS ARE PROGRESSING . . . CAN YOU PLEASE GET HOLD OF COLIN AND GET HIM TO SEND OUT 6 MOS LIBOR AT 0.865 AND TO GET HIS BANKS SETTING IT HIGH. THIS IS VERY IMPORTANT BECAUSE [UBS TRADER] IS QUESTIONING MY (AND OUR) WORTH.”
The complaint alleges that the defendants were aware of the effects that Goodman’s false and fraudulent “SUGGESTED LIBORS” had on submissions by Yen LIBOR panel banks. For example, on Nov. 20, 2008, Read asked UBS Trader, “you have a really big fix tonight I believe? if Colin sends out 6m at a more realistic level than 1.10 [%] i reckon [the two panel banks] will parrot him, it might mean 6m coming down a bit.” On the following day, Nov. 21, 2008, Goodman moved his suggestion for 6-month Yen LIBOR down by nine basis points. The two other banks mirrored Goodman’s suggestion, moving their 6-month Yen LIBOR submissions down by nine basis points.
According to allegations in the complaint, Read counseled UBS Trader how to most effectively manipulate Yen LIBOR. For example, UBS Trader told Read in a July 22, 2009, electronic chat that “11th aug is the big date...i still have lots of 6m fixings till the 10th.” Read responded to UBS Trader, “if you drop [UBS’s] 6m dramatically on the 11th mate, it will look v fishy... . I’d be v careful how you play it, there might be cause for a drop as you cross into a new month but a couple of weeks in might get people questioning you.” UBS Trader replied, “don’t worry will stagger the drops...ie 5bp then 5bp,” and Read told UBS Trader, “ok mate, don’t want you getting into [expletive].” UBS Trader again assured Read that UBS and two additional panel banks would stagger their drops in coordination, and Read concluded, “great the plan is hatched and sounds sensible.”
A criminal complaint is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted.
The investigation is being conducted by special agents, forensic accountants, and intelligence analysts of the FBI’s Washington Field Office. The prosecution is being handled by Deputy Chief William Stellmach and Trial Attorney Sandra L. Moser of the Criminal Division’s Fraud Section and Trial Attorneys Eric Schleef and Kristina Srica of the Antitrust Division. Trial Attorneys Alexander Berlin and Thomas B.W. Hall, Law Clerk Andrew Tyler, and Paralegal Specialist Kevin Sitarski of the Criminal Division’s Fraud Section, along with Assistant Chief Elizabeth Prewitt and Trial Attorney Richard Powers of the Antitrust Division, and former Trial Attorney Luke Marsh have also provided valuable assistance. The Criminal Division’s Office of International Affairs has provided assistance in this matter as well.
The broader investigation relating to LIBOR and other benchmark rates has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad. The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the Department and, along with the U.K. Financial Conduct Authority, has played a major role in the investigation. The Securities and Exchange Commission has also provided valuable assistance for which the Department is grateful. The Department also expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation, and the Department is grateful for their cooperation and assistance as well.
Finally, the Department acknowledges ICAP’s continuing cooperation in the Department’s ongoing investigation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.
HHS ON DIABETES RESEARCH
FROM: U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Fruits of the diabetes research
From the U.S. Department of Health and Human Services, I’m Ira Dreyfuss with HHS HealthBeat.
Like sweets? Fruits are sweet, and a study indicates these sweets can lower the risk of diabetes. At the Harvard School of Public Health, researcher Qi Sun saw signs of this in data from 1984 to 2008 on more than 187,000 people.
He compared people who ate at least two servings a week of certain whole fruits – particularly blueberries, grapes and apples – with people who ate less than one serving a month. The fruit eaters had a 23 percent lower risk of diabetes.
So Sun says:
“We recommend people to increase consumption of whole fruits intake to facilitate prevention of type 2 diabetes.”
The study in the journal BMJ was supported by the National Institutes of Health.
Learn more at healthfinder.gov.
HHS HealthBeat is a production of the U.S. Department of Health and Human Services. I’m Ira Dreyfuss.
Fruits of the diabetes research
From the U.S. Department of Health and Human Services, I’m Ira Dreyfuss with HHS HealthBeat.
Like sweets? Fruits are sweet, and a study indicates these sweets can lower the risk of diabetes. At the Harvard School of Public Health, researcher Qi Sun saw signs of this in data from 1984 to 2008 on more than 187,000 people.
He compared people who ate at least two servings a week of certain whole fruits – particularly blueberries, grapes and apples – with people who ate less than one serving a month. The fruit eaters had a 23 percent lower risk of diabetes.
So Sun says:
“We recommend people to increase consumption of whole fruits intake to facilitate prevention of type 2 diabetes.”
The study in the journal BMJ was supported by the National Institutes of Health.
Learn more at healthfinder.gov.
HHS HealthBeat is a production of the U.S. Department of Health and Human Services. I’m Ira Dreyfuss.
SECRETARY OF DEFENSE HAGEL MEETS WITH GULF LEADERS IN NEW YORK
FROM: U.S. DEFENSE DEPARTMENT
Hagel Meets with Lebanese President, Gulf Leaders in New York
American Forces Press Service
WASHINGTON, Sept. 26, 2013 - Defense Secretary Chuck Hagel met in New York today with Lebanese President Michel Sleiman on the sidelines of the U.N. General Assembly and took part in a meeting of the U.S.-Gulf Cooperation Council Strategic Cooperation Forum, Pentagon Spokesman George Little said.
In a statement issued after the meeting, Little said Hagel joined Secretary of State John F. Kerry in meeting with the foreign ministers of the six-member GCC for the third iteration of the SCF, a consultative body formed in 2012 to enhance multilateral cooperation between the United States and the GCC on a range of common issues.
During the SCF, Little said "Secretary Hagel reiterated the United States' commitment to the region and underscored how collaborative approaches toward regional defense made the Middle East more secure and stable, a shared interest of the United States and the GCC."
Hagel, he said, detailed recent progress on several areas of defense cooperation, including the success of the May 2013 International Mine Countermeasures Exercise and multinational engagement on ballistic missile defense at the Gulf Combined Air Operations Center, while urging further collaboration in these defense initiatives. The SCF concluded with Secretary Kerry moderating a discussion on regional issues, including Syria, Iran, and Yemen, Little added.
Hagel also met with Lebanese President Sleiman "to affirm the strength of the U.S.-Lebanon partnership and our shared view of the importance of the Lebanese Armed Forces as Lebanon's sole legitimate defense force to Lebanon's stability and unity," Little said.
Hagel Meets with Lebanese President, Gulf Leaders in New York
American Forces Press Service
WASHINGTON, Sept. 26, 2013 - Defense Secretary Chuck Hagel met in New York today with Lebanese President Michel Sleiman on the sidelines of the U.N. General Assembly and took part in a meeting of the U.S.-Gulf Cooperation Council Strategic Cooperation Forum, Pentagon Spokesman George Little said.
In a statement issued after the meeting, Little said Hagel joined Secretary of State John F. Kerry in meeting with the foreign ministers of the six-member GCC for the third iteration of the SCF, a consultative body formed in 2012 to enhance multilateral cooperation between the United States and the GCC on a range of common issues.
During the SCF, Little said "Secretary Hagel reiterated the United States' commitment to the region and underscored how collaborative approaches toward regional defense made the Middle East more secure and stable, a shared interest of the United States and the GCC."
Hagel, he said, detailed recent progress on several areas of defense cooperation, including the success of the May 2013 International Mine Countermeasures Exercise and multinational engagement on ballistic missile defense at the Gulf Combined Air Operations Center, while urging further collaboration in these defense initiatives. The SCF concluded with Secretary Kerry moderating a discussion on regional issues, including Syria, Iran, and Yemen, Little added.
Hagel also met with Lebanese President Sleiman "to affirm the strength of the U.S.-Lebanon partnership and our shared view of the importance of the Lebanese Armed Forces as Lebanon's sole legitimate defense force to Lebanon's stability and unity," Little said.
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