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Monday, March 10, 2008

According to a report by The New York Times (The Times), New York Governor Eliot Spitzer informed his senior administration officials on Monday that he was being investigated for using a “high-class” prostitution ring. The Times report cites anonymous officials who work for Spitzer. A law enforcement official who spoke to Associated Press on condition of anonymity stated that a federal wiretap related to a recent investigation revealed that Spitzer paid for prostitutes from an online service under investigation.

ABC News reported that, according to federal officials, the federal investigation into the prostitution ring was initially motivated by money transfers which led agents to believe Governor Spitzer was hiding bribes. Sources familiar with the case spoke to The Washington Post and CNN, and said that Spitzer is identified as “Client 9” in court documents and on a federal wiretap.

In a brief press conference held Monday afternoon, Spitzer apologized to his family and to the public, but did not directly admit or deny involvement in the prostitution ring. “I apologize first and most importantly to my family. I apologize to the public, to whom I promised better. I must now dedicate some time to rededicate my trust to my family,” he said, adding that he “acted in a way that violates his obligation to his family.”

Spitzer did not answer questions from reporters, indicating he would have more to say “in short order.” He did not admit or deny any allegations.

The Times’ report alleges that Gov. Spitzer was a client of the Emperors Club VIP, a high-priced international prostitution ring. Last week, federal investigators arrested four people involved with the operation in and around New York. The investigation utilized undercover work and wiretap recordings at various club locations, including New York and Washington, with the latter allegedly containing Spitzer’s voice.

Reports indicate the governor learned on Friday, March 7, of federal investigators’ discovery of his alleged involvement in the prostitution ring. He informed his top aides on Sunday night before meeting with the rest of his staff Monday, according to The Times. Sources for the Fox News Channel and WCBS-TV in New York report Spitzer could resign and be indicted, in which case the Lieutenant Governor of New York, David Paterson, would become governor.

James Tedisco, the New York State Assembly Republican Minority Leader, says Spitzer should resign and state Republican leadership will initiate impeachment proceedings if the governor fails to step down. “Today’s news that Eliot Spitzer was likely involved with a prostitution ring and his refusal to deny it leads to one inescapable conclusion: he has disgraced his office and the entire state of New York. He should resign his office immediately,” stated Tedisco.

Thursday, May 13, 2010

Wikinews reporter Iain Macdonald has performed an interview with Dr Isabella Margara, a London-based member of the Communist Party of Greece (KKE). In the interview Margara sets out the communist response to current events in Greece as well as discussing the viability of a communist economy for the nation. She also hit back at Petros Tzomakas, a member of another Greek far-left party which criticised KKE in a previous interview.

The interview comes amid tensions in cash-strapped Greece, where the government is introducing controversial austerity measures to try to ease the nation’s debt-problem. An international rescue package has been prepared by European Union member states and the International Monetary Fund – should Greece require a bailout; protests have been held against government attempts to manage the economic situation.

Wednesday, September 17, 2008

The Federal Reserve took over American International Group (AIG) on Tuesday in an US$85 billion loan, in exchange for a 79.9% stake in the company.

A press release issued Tuesday stated that “the Board determined that, in current circumstances, a disorderly failure of AIG could add to already significant levels of financial market fragility and lead to substantially higher borrowing costs, reduced household wealth, and materially weaker economic performance.”

The deal allows AIG to draw up to US$85 billion in loans over the next 24 months to shore up the orderly sale of various divisions of the company without further interruption to the economy. In exchange, the Federal Reserve will have a 79.9% equity stake, primarily in the form of equity participation notes. The loan carries an interest rate of LIBOR plus 850 points. Should AIG fail, the loan is covered completely by company assets. Should AIG recover however, taxpayers could potentially recover large profits.

This news comes on the heels of the Federal Reserve refusing to bail out Lehman Brothers, forcing the company to file for bankruptcy on Monday after Bank of America(BoA) and Barclays PLC pulled out of negotiations over the weekend. The fact that AIG has thousands of divisions engaged in business across the globe sets them apart from the recent problems with other banks. AIG was built up over the last several years via the buyouts and mergers of many companies around the world, offering AIG’s stockholders a diverse base of income which allowed it to steadily increase profits.

It is this interconnectedness that had the Federal Reserve worried. Should AIG collapse, it could set off a global chain reaction in multiple markets. In an interview with the New York Times, former Treasury official Roger Altman said, “It’s the interconnectedness and the fear of the unknown. The prospect of the world’s largest insurer failing, together with the interconnectedness and the uncertainty about the collateral damage — that’s why it’s scaring people so much.”

While AIG, like many other banks, found itself embroiled in the middle of the sub-mortgage lending crisis, AIG has also been struggling to deal with controversies in other complex financial instruments such as credit default swaps. These markets have been exploding for several years, but due to lack of regulation by the government, recent reversals have seen AIG’s stock value tumble by over 90 percent in the last year.