JP Morgan Settles Bear Stearns Claims for $4.5 Billion

by Michael Yoakum
Impunity Watch Reporter, North America

NEW YORK CITY, New York – US investment bank JP Morgan agreed Friday to pay a $4.5 billion settlement for investors lost money as a result of mortgage-related securities during the recent financial crisis. This multibillion dollar settlement, which is separate from the $13 billion prospective settlement with the Department of Justice, would cover 330 residential mortgage backed securities.

JP Morgan, one of the biggest investment banks in the world, is alleged to have knowingly sold shaky mortgage-backed securities which contributed to the financial crisis. (Photo courtesy of BBC News)

This payout will settle claims on mortgage-backed securities issued between 2005 and 2008 by Bear Stearns, an investment bank and brokerage agency that JP Morgan acquired during the financial crisis.  This settlement would not similar claims made on trusts administered by Washington Mutual, another investment bank acquired by JP Morgan during the financial crisis.

Like many Wall Street firms, JP Morgan bundled home loans into marketable securities which they offered as investments to be traded much like stocks.  However, when millions of homeowners defaulted on their mortgage, the value of these securities drastically decreased in value.  The owners of these securities saw the value of their investments drop to nearly nothing.

In October, JP Morgan paid a settlement for similar practices by mortgage brokers Fannie Mae and Freddie Mac totaling $5.1 billion.  All tolled, JP Morgan is expected to owe nearly $20 billion in settling the array of suits brought against the trusts it acquired in the financial crisis.

Officials at JP Morgan released a statement indicating their eagerness to settle these claims.  “This settlement is another important step in JPMorgan’s efforts to resolve legacy related [Residential Mortgage Backed Securities] matters,” the statement said in part.

Analysts suggest that JP Morgan is desperate to return to the good graces of Washington, which has taken measured steps to probe business practices of this financial giant.  Federal investigations into JP Morgan’s tactics in collecting credit card debts and alleged manipulation of a key interest rate benchmark are just some of those measured steps.

For more information, please see:

BBC News – JP Morgan agrees $4.5bn mortgage settlement – 15 November 2013

The New York Times Dealbook – For JPMorgan, $4.5 Billion to Settle Mortgage Claims – 15 November 2013

USA Today – JPMorgan reaches tentative $4.5B settlement – 15 November 2013

The Washington Post – JPMorgan to pay $4.5 billion to settle investor claims over mortgage securities – 15 November 2013

The Wall Street Journal – J.P. Morgan Reaches $4.5 Billion Settlement With Investors – 15 November 2013

UN Says Syrian Asylum-Seekers Need More Acceptance in Europe

By Ben Kopp
Impunity Watch Reporter, Europe

BRUSSELS, European Union – The United Nations called for European countries to cease refusal of entry to asylum-seekers.

Of the few Syrians who enter Bulgaria, most are located in crowded camps and other facilities. (Photo courtesy of AFP)

Since March 2011, nearly 2.2 million people have fled Syria.

On 3 November 2013, Bulgarian skinheads warned the government in Sofia to clear the streets of “illegal immigrants”, or they would do it themselves. The next day, two Bulgarian men stabbed and killed a Syrian boy near a school where 8000 refugees are housed.

On 15 November 2013, the United Nations (UN) refugee agency expressed concern that European Union (EU) countries have allegedly denied or forcibly returned Syrian and other asylum-seekers.

In Bulgaria and Greece, reports indicate that authorities have deployed to the border regions hundreds of police, who turned away migrants attempting to enter the countries. While Bulgaria allowed approximately 85 people per day into the country during the summer, that number is now 10-15 per day.

The UNHCR asked Greek authorities to investigate the fates of 150 Syrian refugees, following a 12 November 2013 incident in which Evros villagers reported that the refugees were detained and transported by police to an unknown location.

“Introducing barriers, like fences or other deterrents, might lead people to undertake more dangerous crossings and further place refugees at the mercy of smugglers,” said the spokesperson for the Office of the UN High Commissioner for Refugees (UNHCR), Adrian Edwards.

“UNHCR is calling for a global moratorium on any return of Syrians to neighbouring countries. This would represent a concrete gesture of solidarity with these countries that currently host over 2.2 million Syrian refugees.”

Edwards called for genuine burden-sharing outside existing EU mechanisms, stating that returning Syrian refugees only increases the challenges faced by countries who accept them, and that EU countries with external borders should not be the only countries accepting refugees in the EU.

UNHCR commended some EU countries that did not to return all asylum-seekers to their first point of entry in the EU. To encourage solidarity with EU border countries, UNHCR appealed to others to follow suit.

“Two weeks ago the EU allocated €85m for Syrian refugees bringing the total humanitarian support so far to €400m,” said EU Ambassador-designate to Israel Lars Faaborg. “About half of this sum will be spent inside Syria to help civil society groups provide basic services while the other half will be used to help Jordan cope with the 500,000 Syrian refugees on its territory.”

Faaborg recently visited the Ziv Medical Centre in Israel, where he witnessed “the wonderful treatment the hospital is providing injured Syrians.”

“The commitment to the welfare of other human beings, regardless of the fact that they belong to an enemy nation, should be a source of pride to all Israelis,” Faaborg said.

That commitment should also be a source of pride for all people of all countries worldwide, and the first step is accepting those who seek asylum.

For further information, please see:

TIME – Syrian Refugees Find Discomfort and Unrest in Bulgaria – November 16, 2013

AFP – UN Warns over Refugees Turned Away in Greece, Bulgaria – November 15, 2013

European Jewish Press – EU Ambassador Lauds Israel for the Medical Treatment of Wounded Syrians – November 15, 2013

UN News Centre – UN Concerned That European Union Countries May Be Denying Entry to Syrians, Other Asylum-Seekers – November 15, 2013

Rival Libya Militias Clash Near Tripoli

By: Danielle L. Gwozdz
Impunity Watch News Reporter, Africa

TRIPOLI, Libya – Renewed fighting between rival militias have erupted on the outskirts of the Libya capital of Tripoli. So far about 43 people have died because of these clashes.

Many died and hundreds were wounded due to fighting (photo courtesy of Reuters)

On Friday more than 450 were injured due to clashes. The militias, however, have continued fighting. Government repeats calls of restraint.

Libya’s Prime Minister Ali Zeidan has appealed for calm as government forces struggle to control militias, Islamist militants, and other former fighters who refuse to surrender their arms after helping to oust Muammar Gaddafi.

The Foreign Ministry spokesperson has stressed the need for strengthening national unity and solidarity, as well as disarming the armed and irresponsible groups there.

Friday’s clashes occurred after protesters marched on the headquarters of the Misrata militia to demand it leave Tripoli, and were fired upon.

Zeidan urged that “No forces from outside Tripoli should attempt to enter the city because the situation is very tense and could escalate further.”

“The coming hours and days will be decisive for the history of Libya and the success of the revolution.”

Late on Saturday, local authorities in Tripoli announced a “three-day general strike in all public and private sectors starting Sunday” in response to the violence.

Misrata militiamen remained in a base near Tripoli airport on Saturday in a standoff with government forces and local pro government offices. But fighters often battle for control of local areas and remain loyal to their own commanders.

A militia group calling itself the Shield of Libya said on Saturday it had secured Ghargour and that the Misrata fighters had withdrawn.

There have been increasing demands from civilians that the militias – which emerged during the 2011 revolution – disband or join the army, in line with an end-of-the-year deadline set by the interim government in Tripoli.

Some militiamen have been given salaries and taken into the government security forces but many still remain loyal.

For further information, please visit:

BBC News – Rival Libya militias in fresh clashes near Tripoli – 16 November 2013
Kenya National Broadcaster – Fresh militia clashes erupt in Libya – 17 November 2013
The Telegraph – Death toll rises as fighting continues in Tripoli – 17 November 2013
The Independent – Fresh gun battles erupt in Tripoli as rival Libyan militias clash – 17 November 2013
IRNA – Iran: Strengthening national unity, disarming armed groups needed in Libya – 17 November 2013

 

Missing Pussy Riot Member Found in Western Siberian Hospital

In 2012, Pussy Riot staged an anti-Putin protest imploring Virgin Mary to “throw Putin out”, as they sang in Moscow’s Christ the Savior Cathedral. Following charges of hooliganism motivated by religious hatred, three band members were sentenced to two years in jail. Western governments and activists objected, saying the sentences were disproportionate.

In October 2013, Russian courts released Yekaterina Samutsevich on appeal.

Convicted Pussy Riot band member Nadezhda Tolokonnikova staged a hunger strike when her own appeal failed. Tolokonnikova alleged that Mordovia prison staff forced inmates to work long hours, and denied her drinking water. She demanded a transfer, if not release.

About 26 days ago, Tolokonnikova went missing following a stay in the medical unit of the Mordovia penal colony. On 14 November 2013, her husband, Pyotr Verzilov announced that he finally spoke with her. The next day, Verzilov had a video conversation with his wife. Verzilov learned that Tolokonnikova arrived at a prison hospital in Krasnoyarsk, of western Siberia, where she is undergoing several tests. He hopes to visit her next week in Krasnoyarsk.

While Tolokonnikova’s hospital is known as the “Tuberculosis Hospital No 1”, Verzilov emphasized that she does not have tuberculosis.

“She feels more or less well, she told me yesterday on the phone,” Verzilov said. “It was the first phone call allowed in 26 days, ending this lengthy, almost month-long isolation that started in Mordovia and then continued throughout her lengthy transit, which spanned 4,000 kilometers across the whole of Russia.”

Verzilov added, “She thinks the conditions of this hospital are fairly good. She is surprised by how different it is here compared to Mordovia and other prison facilities she has encountered since her stay in the Moscow detention center. She is in a good mood now.”

While she was treated relatively well, prison authorities kept her in isolation during the trip between penal colonies.

Russian authorities corroborated that “convict Tolokonnikova has arrived to the institution of the Russian prison service in the Krasnoyarsk region.” However, her exact location was given to her lawyer with instructions not to tell anyone else. Russian law required authorities to inform Tolokonnikova’s family about the transfer within 10 days of her arrival at the new facility.

Aleksandr Nazarov, an official of the state agency supervising penitentiaries, stated that Tolokonnikova could potentially stay in the hospital until her sentence is served.

On this path, it seems that Russia is making good efforts to treat prisoner complaints with respect.

For further information, please see:

CNN International – ‘Missing’ Pussy Riot Inmate Tolokonnikova in Siberian Prison – November 15, 2013

RadioFreeEurope/RadioLiberty – Husband of Jailed Pussy Rioter Hopes to See Her Next Week – November 15, 2013

Telegraph – Pussy Riot’s Nadezhda Tolokonnikova ‘May Serve Rest of Jail Term in Hospital’ – November 15, 2013

BBC News – Jailed Pussy Riot Singer ‘Found in Hospital’ – November 14, 2013

Impunity Watch – Report Says Russian Pussy Riot Prisoner Transferred to New Penal Colony – November 4, 2013

 

Historic meeting in Cairo between Egyptian and Russian officials signals a warming of relations between the two states.

By Kathryn Maureen Ryan Impunity Watch Reporter, Middle East CAIRO, Egypt – Egypt’s top military general hailed a visit by Russian officials as the beginning of a new era of defence co-operation between the Egyptian State and the Russian Federation. Russia’s defence and foreign ministers met with Egypt officials in Cairo this week in a trip that has been called historic, though the delegation left Egypt yesterday without announcing a deal for any new defence deals between the Egypt and Russia.

Historic meetings between Egyptian and Russian officials in Cairo marked the first time a Russian Foreign Minister has visited the country since 1971. (Photo Courtesy of The Washington Post)

The historic meeting came just weeks after the Obama administration announced that the United States would cut military aid to Egypt in response to growing concerns about the actions taken the military government against supporters of ousted President Morsi. While the United States did not cut all of the annual aid to Egypt, the cuts represented a significant shift in relations with Egypt’s interim government, the United States cut aid not connected with the promotion of democratization or counterterrorism efforts carried out by the Egyptian military. The meetings may have been meant as a sign to the United States. Yasser El-Shimy an Egypt analyst with the International Crisis Group said  the meetings were “meant to send a message to say Egypt has options, and that if the United States wishes to maintain its strategic alliance with Egypt, it will have to drop the conditions it attaches to the military aid.” The United States has said it will consider renewing feign aid if the Egyptian states shows signs of progress towards democratization. However, Egypt’s warming relations with Russia may be a sign that the United States has lost some of the coercive power its funding of the Egyptian military once held. As the United States cut funding to Egypt the Egyptian state showed that it is willing to look elsewhere to fill the vacuum left by aid cuts. Egypt has downplayed suggestions that the meetings with Russian officials signify a further cooling of relations between Egypt and the United States.  “We are not replacing one party with another,” said Badr Abdel­atty, an Egyptian Foreign Ministry spokesman. “We want to strengthen the independence of our foreign policy. We want to diversify. And Russia is a very important global power.” While support for the United States by the public, which perceived the United States as supporters of a military dictatorship though its support of former President Hosni Mubarak, and the military, which now sees the United States as an unreliable ally, has fallen in Egypt Russia and Vladimir Putin have become increasingly popular. The state-run Al-Ahram newspaper has published posters on Thursday reading “Thanks, Putin.” These developments came as the Egyptian military government continues to crack down on Islamist supporters across the country. Earlier this week an Egyptian court sentenced twelve protesters who demonstrated in support of ousted President Mohamed Morsi to 17 years in prison for taking part in a violent student-led protest. For more information please see: Al Jazeera – Egypt Hails Renewed Military Ties with Russia – 14 November 2013 The Washington Post – Egypt Hosts Top Russian Officials, A Sign it is Turning Further Away from Alliance With U.S. – 14 November 2013 Al Jazeera – Egypt Warms to Russia as US Ties Cool – 15 November 2013 Al Jazeera – Pro-Morsi Protesters Sentenced to 17 Years – 13 November 2013