Rudolf Elmer, former Swiss banker is found guilty

Rudolf Elmer the former Swiss banker who gave Wikileaks details of rich tax evaders has been found guilty of breaching Switzerland's strict bank secrecy laws.

A judge in Zurich did so even though the leaked documents referred to accounts in the Cayman Islands.

Judge Sebastian Aeppli fined Rudolf Elmer, 55, more than 6,000 Swiss francs ($6,250; £4,000). However he rejected prosecution demands to give Elmer an eight-month prison sentence.

Elmer also said that he had handed confidential Julius Baer banking files to tax authorities, and later the Wikileaks website run by Julian Assange, because he had wanted to expose tax evasion by businessmen and politicians.

Mr Assange has said that he will publish that information within weeks, once it has been checked.

Speaking minutes before he returned to court to hear the verdict, Elmer told reporters: "I made big mistakes, I admit that... I wouldn't say it was revenge [against Baer], but I defended myself. That's human nature."

Elmer was subsequently arrested after a court verdict in a separate case. Chief prosecutor Peter Pellegrini said: ‘He is in police detention and will be questioned today.’


Mr Pellegrini confirmed the new investigation centres on Mr Elmer’s visit to London on Monday.

Former Julius Baer executive hands over offshore bank details to WikiLeaks

A former executive at Swiss bank Julius Baer has handed over the offshore account details of around 2,000 corporations and high net worth people - including politicians - to WikiLeaks.

Rudolf Elmer presented CDs containing the information, which he claims reveals potential tax evasion, to WikiLeaks at the Frontline Club in London, two days before he goes on trial in Switzerland.

The former Julius Baer COO in the Cayman Islands earlier told the “Observer” newspaper that he is handing over the data on multinationals, hedge funds, artists and around 40 politicians, which comes from three financial institutions, "in order to educate society".

WikiLeaks founder Julian Assange, currently on bail, was at the press conference to receive the data, which he said would be vetted before publication and that some of it may also be handed over the Serious Fraud Office.

Assange also says that in 2008 Julius Baer went to court in the US in a failed bid to have WikiLeaks.org shut down over previous revelations.

Elmer left Julius Baer in 2004 and has since become a self-styled whistleblower seeking to expose the use of offshore accounts for tax evasion, describing himself on his Website, swisswhistleblower.com, as an activist, reformer and banker.

Later this week the ex-banker faces trial in Switzerland over allegations that he breached bank secrecy and threatened Julius Baer officials.

You can watch the full press conference below.

New York Fed ends AIG assistance after full repayment

The Federal Reserve Bank of New York has announced the termination of its assistance to American International Group (AIG) and the full repayment of its loans to AIG as a result of the closing of the recapitalization that was announced on September 30, 2010. AIG no longer has any outstanding obligations to the New York Fed.

In September 2008, the Board of Governors of the Federal Reserve System authorized the New York Fed to provide AIG with an emergency loan of up to $85 billion to prevent its disorderly collapse, which could have had catastrophic consequences to the U.S. economy during the most damaging financial crisis in 70 years. The assistance provided by the Federal Reserve was restructured over time, and was supplemented in November 2008 and April 2009 by additional financial assistance from the Treasury Department under the Troubled Asset Relief Program.

As part of the November 2008 restructuring of the government’s assistance to AIG, two special purpose vehicles, Maiden Lane II LLC and Maiden Lane III LLC, were created with loans from the New York Fed to purchase various mortgage-related securities in order to address AIG’s capital and liquidity strains. The loans extended by the New York Fed to the Maiden Lane II and III facilities remain outstanding and are being repaid from the assets in those facilities. The fair values of the portfolios well exceed the balances of those loans.

This closing represents a substantial step toward achieving the Federal Reserve’s dual goals of stabilizing AIG and ensuring its repayment of government assistance. It reflects the significant progress AIG has made in reducing the scope, risk and complexity of its operations and stabilizing its operating results. The accelerated repayment of the New York Fed frees up collateral that will enable the company to access private debt markets, an essential step toward facilitating the US Department of the Treasury’s future sale of the common stock it owns.

"This concludes an important effort by the Federal Reserve to stabilize the financial system in order to protect the U.S. economy" said William C. Dudley, president of the New York Fed.

With the closing of the recapitalization, the New York Fed’s revolving credit facility has been fully repaid, including interest and fees, and its commitment to lend any further funds has been terminated ahead of the credit facility’s scheduled expiration in September 2013.

In addition, the New York Fed has been paid in full for its preferred interests in the AIA and ALICO special purpose vehicles. A portion of those interests has been redeemed with proceeds from AIG’s sale of ALICO to MetLife, Inc. The remaining interests have been purchased by AIG through a draw on the Treasury Department’s Series F preferred stock commitment and transferred to the Treasury Department.

The closing of AIG’s recapitalization also marks the termination of the AIG Credit Facility Trust, which was established to hold an approximately 79 percent controlling equity interest in AIG for the sole benefit of the US Treasury, the general fund of the U.S. government. The Trust’s equity interest in AIG is being exchanged for common stock of AIG and transferred to the Treasury.

“We are grateful to Jill M. Considine, Chester B. Feldberg, Peter A. Langerman and Douglas L. Foshee for their invaluable contributions and commitment to the execution of their responsibilities as Trustees,” Mr. Dudley added.

Barclays Mobile Banking Service Scoops Top Award

Barclays has trumped its rivals to scoop a much-coveted 2010 Financial Innovation Award for its mobile banking and text banking services.

The Barclays.mobi application, which allows customers to access their account on a smart phone, picked up the top award for 'transforming performance or customer service through technology – mobile and internet' at a ceremony in Covent Garden, London last month.

Judges of the awards said they were looking for an initiative that creates value, enhances customer service and improves business through technology.

Barclays.mobi was recognised as a leader in its field because, unlike other mobile banking applications, the service can be used on all smart phone platforms, such as iPhone, Blackberry, Android and Windows.

Dr Tony Gandy, one of the judges, said: 'In a hotly-contested category, Barclays mobile banking stood out as a modern application for a modern smart phone market.'

Phil Sowter, Head of Mobile, said: 'Barclays.mobi is unique in the UK financial services market place today.'

He added: 'Barclays.mobi is a new and important part of UK Retail Banking's multi-channel mix, extending choice and improving financial control for our customers.'

The Barclays mobile banking service was launched in May 2009 and receives around half a million visitors from mobile devices each month.

Customers can log in to their account to check balances, make transfers or payments and find the nearest ATM or branch whilst on the go. In addition, the innovative text banking service means customers can choose to receive text alerts that notify them of weekly balances, when a large debit/credit has been made and when they are approaching their account limit.

Barclays customers can register for both mobile banking and text banking by visiting http://www.barclays.co.uk/ .

Barclays also picked up a 2010 Financial Innovation Award for 'Improving the Customer Experience' through its Customer Discussion Document (CDD), which is a tool that allows customers to evaluate their finances.

http://www.prweb.com/releases/2011/01/prweb4971884.htm

Safaricom cuts Kenyan SMS rates

Kenya’s integrated communications firm, Safaricom has significantly reduced its SMS rates across all local networks. Readers will recall that Safaricom pioneered commercial mobile money transfer globally through its award winning M-PESA operation.

Under the new tariff subscribers save up to 71 per cent when sending text messages.

Announcing the new tariffs, Safaricom CEO Bob Collymore said the reduced SMS rates are a permanent tariff proposition applicable to ALL PrePay and PostPay subscribers.

“We are lowering the cost of sending text messages to any local network by giving our entire subscriber base an SMS rate of Kshs 1/- for Safaricom to Safaricom and Kshs 2/- for SMS’s from Safaricom to other local networks,” said Mr Collymore.

With the new SMS rates, Safaricom subscribers will make savings of up to 71 per cent, when sending Safaricom to Safaricom SMS’s, and savings of up to 60 per cent when sending SMS’s to other local networks.

Growing from its cradle in mobile voice services, Safaricom has evolved into a total telecoms company. The firm, which has a subscriber base of over 17 million, offers all telecoms services under one roof: mobile and fixed voice and data services on a variety of platforms: Kenya’s widest and only 3G network; a growing fibre optic cable footprint and its most expansive WIMAX presence.

Former analyst fined £50,000 for disclosing misleading information

The Financial Services Authority (FSA) has fined Christopher Gower £50,000 for making misleading and inaccurate disclosures to the market about Enterprise Inns plc (ETI) to clients via Bloomberg instant messenger, substantially impacting ETI share price.

Gower, a former senior research analyst employed by MF Global Securities Limited and MF Global UK Limited, attended a meeting with the Chief Executive Officer of Punch Taverns plc on 7 May 2008. In the course of the meeting they discussed an application made by Enterprise Inns plc to Her Majesty’s Revenue and Customs (HMRC) for approval to convert to a Real Estate Investment Trust (REIT). This discussion concerned solely information which was in the public domain.

Following the meeting, Gower sent a Bloomberg instant message to 14 clients of MF Global, a Bloomberg reporter and MF Global equity salesmen in the following terms:

“*** HOT OFF PRESS*** Just had meeting with CEO of PUNCH TAVERNS. They have heard from HM Revenue & Customs that it is highly likely Enterprise Inns has been granted REIT status and ETI are due to announce this on 13th May at interims. Expect ETI to bounce (was up 10% on previous HMRC news) BUT then fall back as mkt realises it will take time to implement.... MORE on my meeting to follow.... Chris”

This instant message did not accurately reflect the conversation Gower had had. It gave the impression of containing inside information although, in fact, Gower had no such information. The message was misleading and inaccurate. It was rapidly circulated widely in the market and contributed to a substantial increase in the volume of ETI shares traded.

Gower gave no apparent consideration to the consequences to the market of his message. His conduct was careless and fell below proper standards of conduct in the circumstances.

Margaret Cole, the FSA’s managing director of enforcement and financial crime, said:

“There is no excuse for a senior retail analyst to be so careless with messages that could have such an impact on the market. Gower's dissemination of inaccurate information contributed to a large increase in the volume of shares traded and a disorderly market in ETI shares.

“Maintaining market confidence is one of our key objectives and we hope that the fine imposed in this case will act as a reminder to approved persons of their obligations to ensure markets are not provided with careless misinformation.”
The FSA accepts that Gower did not intend to give the impression that this was inside information but concludes that Gower failed to observe proper standards of market conduct in this matter and has imposed a fine of £50,000.

Investment banker, his wife and family friend plead guilty to insider dealing

Christian Littlewood, a senior investment banker and former Financial Services Authority (FSA) Approved Person, his wife Angie Littlewood (also known as Siew Yoon Lew and Angie Lew) and a family friend Helmy Omar Sa’aid have pleaded guilty to 8 counts of insider dealing contrary to section 52 of the Criminal Justice Act 1993. They are alleged to have made approximately £590,000 profit from the trades.

The offences relate to trading in a number of different London Stock Exchange and AIM listed shares between 2000 and 2008 and were only brought to an end when the City of London Police working with FSA staff arrested the Littlewoods in March 2009.

The third defendant Helmy Omar Sa'aid was returned to the UK in March 2010 following the execution of a European Arrest Warrant in Mayotte, one of the Comoros Islands.

The case was bought by the FSA and heard at Southwark Crown Court. It is the sixth successful prosecution for insider dealing bought by the FSA and is part of its ongoing drive to tackle market abuse and promote efficient, orderly and fair markets.

Margaret Cole, managing director of enforcement and financial crime, said:

“It seems that the penny is beginning to drop. These guilty pleas show that our strategy of a tough approach to insider dealing - and, in particular, demonstrating that we are prepared to fight difficult criminal prosecutions to trial - is paying off. Dedicated hard work, bold and innovative use of the tools at our disposal and close seamless co-operation between our markets, enforcement and intelligence functions underpin our successful track record in this complex area.”

The full sentencing and confiscation hearing will take place in the week commencing 31 January.