Ian Narev, the CEO of the Commonwealth Bank of Australia, this morning “unreservedly” apologised to clients who lost money in a scandal involving the bank’s financial planning services arm.
Last week, a Senate enquiry found financial advisers from the Commonwealth Bank had made high-risk investments of clients’ money without the clients’ permission, resulting in hundreds of millions of dollars lost. The Senate enquiry called for a Royal Commission into the bank, and the Australian Securities and Investments Commission (ASIC).
Mr Narev stated the bank’s performance in providing financial advice was “unacceptable”, and the bank was launching a scheme to compensate clients who lost money due to the planners’ actions.
In a statement Mr Narev said, “Poor advice provided by some of our advisers between 2003 and 2012 caused financial loss and distress and I am truly sorry for that. […] There have been changes in management, structure and culture. We have also invested in new systems, implemented new processes, enhanced adviser supervision and improved training.”
An investigation by Fairfax Media instigated the Senate inquiry into the Commonwealth Bank’s financial planning division and ASIC.
Whistleblower Jeff Morris, who reported the misconduct of the bank to ASIC six years ago, said in an article for The Sydney Morning Herald that neither the bank nor ASIC should be in control of the compensation program.
United States President Barack Obama gave his official farewell address on Tuesday night from McCormick Place in Chicago, reflecting on personal and national accomplishments. This is expected to be his last major speech before officially handing the reins to president-elect Donald Trump on January 20.
President Barack Obama in 2010.Image: John Kees.
“Its why GIs gave their lives at Omaha Beach and Iwo Jima; Iraq and Afghanistan – and why men and women from Selma to Stonewall were prepared to give theirs as well.”
Obama’s speech was wide-ranging. He thanked his family and the nation, spoke of the need for unity, noted the country’s accomplishments and need for improvement in areas like education and civil rights, and spoke about the need for pride in U.S. accomplishments, citing milestones of U.S. history and of his presidency specifically. “It’s why GIs gave their lives at Omaha Beach and Iwo Jima; Iraq and Afghanistan – and why men and women from Selma to Stonewall were prepared to give theirs as well.”
The president also addressed his country’s troubled history with race and racism, an issue many black citizens feel he has avoided. Despite this, Chauncy Devega of Salon described the president as “a role model of calm, cool reflective black masculinity: a man utterly at home in his own skin.” Obama described the concept of a post-racial U.S. “unrealistic” and particularly cited the need for reform in education and the criminal justice system and greater acceptance of scientific evidence, particularly evidence supporting action to counteract climate change.
However, publications including The Washington Post and Salon have given particular focus to another aspect of the president’s address: the country’s increasing political tensions and controversies involving access to news and information, both accurate and inaccurate. “We become so secure and our bubbles,” said Obama, “that we start accepting only information, whether it’s true or not, that fits our opinions instead of basing our opinions on the evidence that is out there,” calling this trend “a third threat to our democracy.”
The Washington Post characterized Obama’s comment, “If every economic issue is framed as a struggle between a hard-working white middle class and an undeserving minority, then workers of all shades will be left fighting for scraps while the wealthy withdraw further into their private enclaves,” as a “not-so-subtle jab” at the campaign tactics of President-elect Donald Trump. The Telegraph describes Obama’s warnings about the need to protect democracy as “a thinly veiled slight to the divisive rhetoric of Donald Trump’s election campaign, which included attacks on Muslims, the disabled, women and immigrants.” The president went on to call on the public to “reject the first dawning of every attempt to alienate any portion of our country from the rest or to enfeeble the sacred ties that make us one America. We weaken those ties when we allow our political dialogue to become so corrosive […] We weaken those ties when we define some of us as more American than others when we write off the whole system as inevitably corrupt and when we sit back and blame the leaders we elect without examining our own role in electing them. It falls to each of us to be those anxious, jealous guardians of our democracy.”
Despite this, when the mention of Donald Trump brought boos from the crowd, Obama reiterated the importance of the long history of peaceful transfers of power from one president to the next: “No no no no no. […] I committed to President-elect Trump that my administration would ensure the smoothest possible transition, just as President Bush did for me.” However, this was not unaccompanied by a call to action. Near the end of the speech, he insisted citizens dissatisfied with elected officials should “lace up your shoes, grab a clipboard, get some signatures and run for office yourself.”
Overall, the departing president’s speech focused on accomplishment, echoing the “Yes we can” slogan from his 2008 campaign: “If I have told you eight years ago, that America would reverse a great recession, reboot our auto industry, and unleash the longest stretch of job creation in our history. If I had told you, that we would open up a new chapter with the Cuban people, shut down Iran’s nuclear weapons program without firing a shot, take out the mastermind of 9/11[…] If I had told you that we would win a marriage equality and secure the right to health insurance for another twenty million of our fellow citizens. If I had told you all that, you might have said our sights were set a little too high. But that’s what we did.”
But when the crowd began shouting “Four more years! Four more years!” Obama, with a small laugh, answered, “I can’t do that.”
This morning, United States-based toy retail giant Toys “R” Us filed for liquidation with United States bankruptcy court. The company had about 735 stores in the country which may be closed as a result of the liquidation.
The motion came after the US holidays, after which the company said its revenue fell short of expectations. Toys “R” Us was seeking cooperation with its Canadian business to leave 200 stores open, the court papers said. The company said it would be unable to realize an earlier goal to leave as many as 400 stores open.
The papers filed in the court indicated that the United States holiday sales produced revenue US$250 million short of the expectations. In the report to the court, Toys “R” Us blamed in part its weakened e-commerce business. It wrote, “The stark reality is that the debtors are projected to run out of cash in the U.S. in May 2018.”
Toys “R” Us chief executive officer Dave Brandon said, “This is a profoundly sad day for us as well as the millions of kids and families who we have served for the past 70 years.”
Toys “R” Us said it was preparing to sell its businesses in Asia and Central Europe, including Germany, Austria, and Switzerland.
In September 2017, Toys “R” Us filed for bankruptcy in the US and Canada, and a judge allowed a US$2 billion loan.
Kohlberg Kravis Roberts, Bain Capital Partners, and Vornado Realty Trust purchased Toys “R” Us for US$6.6 billion in 2005. According to CNBC, the company had US$4.9 billion in debt at that time, which made it difficult for the company to adapt to the changing market.
Christopher Hitchens called him a “Bin Ladenist” and Cathy Young editorialized in The Boston Globe that he “blames the victims of terrorism” when he puts out a novel like Snowball’s Chance, a biting send-up of George Orwell‘s Animal Farm which he was inspired to write after the terrorist attacks on September 11. “The clear references to 9/11 in the apocalyptic ending can only bring Orwell’s name into disrepute in the U.S.,” wrote William Hamilton, the British literary executor of the Orwell estate. That process had already begun: it was revealed Orwell gave the British Foreign Office a list of people he suspected of being “crypto-Communists and fellow travelers,” labeling some of them as Jews and homosexuals. “I really wanted to explode that book,” Reed told The New York Times. “I wanted to completely undermine it.”
Is this man who wants to blow up the classic literary canon taught to children in schools a menace, or a messiah? David Shankbone went to interview him for Wikinews and found that, as often is the case, the answer lies somewhere in the middle.
Reed is electrified by the changes that surround him that channel through a lens of inspiration wrought by his children. “The kids have made me a better writer,” Reed said. In his new untitled work, which he calls a “new play by William Shakespeare,” he takes lines from The Bard‘s classics to form an original tragedy. He began it in 2003, but only with the birth of his children could he finish it. “I didn’t understand the characters who had children. I didn’t really understand them. And once I had had kids, I could approach them differently.”
Taking the old to make it new is a theme in his work and in his world view. Reed foresees new narrative forms being born, Biblical epics that will be played out across print and electronic mediums. He is pulled forward by revolutions of the past, a search for a spiritual sensibility, and a desire to locate himself in the process.
Below is David Shankbone’s conversation with novelist John Reed.
Contents
1 On the alternative media and independent publishing
2 On Christopher Hitchens, Orwell and 9/11 as inspiration
Fifteen people, twelve of whom were directly involved in the execution of the bombings are in custody, eleven of them are Pakistani citizens.
The conspiracy to carry out the attacks, which killed 190 people, was hatched in the vicinity of Mumbai, by militants who were trained in Bahwalpur, Pakistan. The Pakistani bombers entered India in batches, some through the porous Indo-Nepal border, others via Bangladesh and some through Gujarat. They then reached Mumbai around May 25, and were sheltered in Malad and Bandra by Faizal Sheikh. Kamaluddin Ansari and Ehtasham Siddiqui, (General Secretary of SIMI, Maharashtra) were also involved in the conspiracy.
The RDX explosive used in the blasts was brought from Pakistan by a man called Ehsanullah, while the ammonium nitrate was procured locally. The explosives were assembled in Chembur by Mumbai resident Mohammad Ali, between 8 and 10 July. On the day of the attacks, the bombs (each containing 2 – 2.5 kg of RDX and 3.5 – 4 kg of ammonium nitrate) were concealed in eight pressure cookers and transported to the railway stations in taxis.
From there two member teams of bombers placed the explosives on the trains and detonated them using quartz timers. One of the militants, Saleem, a native of Lahore, could not (as was the plan) get off the train before the explosives went off, as a result of which he perished in the blast between Khar and Bandra. Of the seven Indian suspects, four (Faizal Sheikh, Kamaluddin Ansari, Ehtashan Siddiqui and Naved) have been apprehended, while a search is on for the other three.
Mr. Roy described the bombings as a “professional, precise and well-planned”. The first clue his department got was a phone call made from Navi Mumbai to a place on the Indo-Nepal border. Based on this information Kamaluddin Ansari was arrested in from Madhubani, Bihar. Narco-analysis of the other suspects revealed that they were trained in Pakistan and also helped tie up other loose ends in the case. Faizal Sheikh also revealed that he had received Rs. 60,00,000 from Pakistan in the last few years. Police also recovered 26,000 Riyals, given to him by Rizwan Devra, an ISI operative living in Dubai, from Faizal’s house.
Pakistan’s Minister of State for Information, Tariq Azim, denied the role of the ISI in the bombings, saying that his country “rejected” the accusation, and that India should provide Pakistan with “any information if they have it”. “Such allegations only give benefit to the real culprits, who escape arrest,” he said.
Fireboats tackling the fire on Deepwater Horizon last year. The explosion on the rig killed eleven people and began the largest oil spill in the history of the petroleum industry. Image: United States Coast Guard.
An investigation by the United States Coast Guard has concluded the largest oil spill in the history of the petroleum industry was partly the result of a “poor safety culture” aboard the Deepwater Horizon oil rig. The April 2010 explosion aboard the rig, which is located in the Gulf of Mexico, triggered a disaster that led to widespread environmental damage.
The report squarely blames Transocean, which managed the Deepwater Horizon, for being largely responsible for the explosion that claimed eleven lives. The rig had “serious safety management system failures and a poor safety culture,” the report says. Transocean fiercely rejected allegations that crews aboard the rig were badly trained and equipment was poorly maintained.
Deepwater Horizon and its owner, Transocean, had serious safety management system failures and a poor safety culture.
A slapdash safety environment on Deepwater Horizon would mean equipment was not mended or replaced if it meant losing valuable hours of drilling, the Coast Guard found. Electrical equipment believed to have caused a spark that ignited flammable gas was described as being in “bad condition” and “seriously corroded.” The report found that other deficiencies—improperly assembled gas detectors and emergency equipment; audible alarms switched off because of nuisance false warnings; complacency with fire drills; and poor preparation for dealing with a well blowout—all contributed to the disaster.
Transocean attacked the report’s conclusions and suggested the Coast Guard may have played a role in the disaster. A spokesperson for the company said Deepwater Horizon had been inspected by Coast Guard officials only months before the explosion, officials who said it complied with safety standards. “We strongly disagree with—and documentary evidence in the Coast Guard’s possession refutes—key findings in this report,” the company said.
This week, Deepwater Horizon owner BP launched legal action against Transocean. It also filed a lawsuit against Halliburton, the company that cemented the well, and Cameron, which manufactured the rig’s failed blowout preventer. BP is reportedly seeking to claim US$40 billion in damages, and alleges it has taken a massive financial hit and loss of reputation. In a statement, BP said it filed the lawsuits “to ensure that all parties … are appropriately held accountable for their roles in contributing to the Deepwater Horizon accident”.
A robotic submarine working on the blowout preventer of Deepwater Horizon while oil was leaking from the well. BP is suing Cameron, who manufactured the blowout preventer. Image: United States Coast Guard.
In the lawsuit against Transocean, BP claims the company missed signs that a disaster was imminent and that it “materially breached its contractual duties in its actions and inactions leading to the loss of well control, the explosion and the loss of life and injuries onboard the Deepwater Horizon, as well as the resulting oil spill.” Halliburton, BP alleges, was riddled with “improper conduct, errors and omissions, including fraud and concealment” which led to the disaster, and continues to refuse to cooperate with investigators.
Transocean dismissed the lawsuit as “desperate” and “unconscionable,” and announced a countersuit against BP, which it claims was responsible for the disaster “through a series of cost-saving decisions that increased risk, in some cases severely.” Halliburton and Cameron, which is also countersuing, announced they would defend themselves against BP’s allegations.
U.S. President Barack Obama marked the anniversary of the explosion by conceding that although “progress” has been made to ensure the safety of deep water drilling rigs, “the job isn’t done.” Obama’s comments came less than a week after leading experts raised serious questions over the security of deep water drilling as the U.S. government approves more exploration without improving safety measures.
Barack Obama marked the anniversary by conceding that although “progress” has been made to ensure the safety of deep water drilling rigs, “the job isn’t done.” Image: Obama-Biden transition project.
Charles Perrow, a professor at Yale University, said the oil industry “is ill prepared at the least” to deal with another oil spill, despite repeated assurances from the industry and the government, which insists lessons have been learned from the Deepwater Horizon disaster. “I have seen no evidence that they have marshaled containment efforts that are sufficient to deal with another major spill,” he said. “Even if everybody tries very hard, there is going to be an accident caused by cost-cutting and pressure on workers. These are moneymaking machines and they make money by pushing things to the limit.”
However, politicians have insisted they are doing all they can to help clean the coast of oil. “Cleanup efforts in some places are still ongoing, and the full scale of the damage done to our state has yet to be calculated, but the good news is that most all of our fishing waters are back open again,” said Louisiana Governor Bobby Jindal at a press conference. “All of us here today want the entire nation to get the message that Louisiana is making another historic comeback.”
I don’t see any hope at all. We thought we’d see hope after a year, but there’s nothing.
Gulf Coast residents, activists and relatives of the crewmen who were killed in the explosion paused this week for the anniversary of the oil spill’s beginning. A helicopter took the victims’ families from New Orleans to over the site where the rig stood, where it circled. “It was just a little emotional, seeing where they were,” said one victim’s mother. Remembrance services and candlelight vigils were held in the Gulf Coast region, which continues to suffer from the fallout of the catastrophe. The families have expressed anger at BP, who they say is being unfair and slow in paying out compensation from a $20 billion fund.
The area is still heavily affected by the disaster and reconstruction of the seafood industry that once thrived is slow. While tourists are beginning to return to the region, many are angry at BP and the Obama administration over how they handled the disaster. All the fishing waters in the area have now opened again, but people who live in the area remain dissatisfied. “I don’t see any daylight at the end of this tunnel,” one fisherwoman said. “I don’t see any hope at all. We thought we’d see hope after a year, but there’s nothing.”
A suicide bomber attacked an American base in the Khowst region on the Pakistani border of Afghanistan, leaving seven American CIA officers dead and six injured. No American or NATO military personnel were killed or injured in the attack on Forward Operating Base Chapman.
It appears that the suicide bomber, reportedly wearing an Afghan National Army uniform, blew himself up in either the gym or the dining facility of Base Chapman.
In a statement on the Voice of Jihad web page, the Taliban claimed responsiblity for the attack, alleging 20 “CIA employees” were killed in the incident.
The Chapman Base is a converted military base which is now being used for civilian reconstruction operations, although military personnel are still located on the base. Camp Salerno, the main base in the Khowst province, has been the target of many attacks in recent weeks.
Recent attacks have been focused on foreign civilians, such as an incident in October in which 7 foreign and 3 Afghan civilians were killed in an attack at a UN guest house. The CIA has not lost this many operatives in nearly 25 years and the last time CIA agents were killed was in 2003.
Former Salt Lake City mayor and human rights activist Rocky Anderson took some time to discuss his 2012 U.S. presidential campaign and the newly-created Justice Party with Wikinews reporter William S. Saturn.
Anderson served as mayor of Salt Lake City for eight years (2000–2008) as a member of the Democratic Party. During his tenure, he enacted proposals to reduce the city’s carbon emissions, reformed its criminal justice system, and positioned it as a leading sanctuary for refugees. After leaving office, Anderson grew critical of the Democratic Party’s failure to push for impeachment against President George W. Bush, and for not reversing policies on torture, taxes, and defense spending. He left the party earlier this year and announced that he would form a Third party.
Anderson officially established the Justice Party last week during a press conference in Washington D.C.. He proclaimed “We the people are powerful enough to end the perverse government-to-the-highest-bidder system sustained by the two dominant parties…We are here today for the sake of justice — social justice, environmental justice and economic justice.” The party promotes campaign finance reform and is attempting to appeal to the Occupy Wall Street movement. It is currently working on ballot access efforts, and will hold a Founding Convention in February 2012 in Salt Lake City.
Among other issues, Anderson discussed climate change, health care, education, and civil liberties. He detailed his successes as mayor of Salt Lake City, stressed the importance of executive experience, and expressed his views on President Barack Obama and some of the Republican Party presidential candidates. He spoke in depth about former Massachusetts governor Mitt Romney, with whom he worked during the 2002 Winter Olympics, and fellow Utahan, former governor and U.S. ambassador to China Jon Huntsman, Jr..
Hundreds of thousands of air travelers had their travel plans disrupted in Europe by volcanic ash from the Eyjafjallajökull eruption.
Tens of thousands of air travelers were stranded when all flights into and out of the United Kingdom were grounded, as it became one of the first nations to be affected. The grounding was even more extensive than that following the September 11 attacks of 2001 when only trans-Atlantic flights were canceled.
Eurocontrol released a statement saying “…most air traffic in the United Kingdom, Ireland, Denmark, Norway and Sweden is suspended.”
The grounding is because the volcanic ash drawn into the jet stream is of a particle size which allows it to remain aloft in the atmosphere. Ingestion of this foreign matter, because of its distribution, would lead to flame outs in all aircraft engines. The composition of the ash also means that it would first melt into glass if it were to enter the engine of an aircraft before solidifying again as it cooled. This could lead to damage to the compressors and fan blades, which would make it impossible to restart the engines, even if the aircraft were to exit the cloud.
The current contingency is informed by the experience of British Airways Flight 9, which on June 24, 1982 suffered just such complete engine flame outs when it flew through the plume of Mount Galunggung in Indonesia. In that case, the flight crew after many efforts was able to restart the engines, though one failed shortly after, and the aircraft landed without casualties.
The UK National Air Traffic Services (NATS) has stated that “restrictions will remain in place in UK controlled airspace until 1300 (UK time) tomorrow, Friday 16 April, at the earliest,” and that “We will review further Met Office information and at 0230 (UK time) tomorrow we will advise the arrangements that will be in place through to 1800 (UK time) tomorrow.” The NATS statement concluded “…the situation cannot be said to be improving”.
In addition to Northern Europe, the ash is drifting south; Berlin and Hamburg airports in Germany are closed, and airports in the Netherlands, Belgium and Northern France are described as now being closed or closing. Some flights from Spain and Portugal, together with upwards of 4,000 flights across Northern Europe, have been affected, and the knock-on effect of aircraft and crews out of position could disrupt air travel worldwide for up to 72 hours.