Tag Archives: Bank of Tokyo-Mitsubishi UFJ

Iran Designs Alternative System For SWIFT: CBI

Press TV | May 26 2012

Head of the Central Bank of Iran (CBI) Mahmoud Bahmani

Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani says the country has designed and implemented a new system for conducting international transactions.

Bahmani said on Saturday the new system, which has already been activated, would replace Worldwide Interbank Financial Telecommunication (SWIFT)

On March 15, SWIFT CEO Lazaro Campos said in a statement that the society has decided to discontinue offering services to Iranian banks which are subject to financial sanctions imposed by the European Union.

On January 23, the EU foreign ministers approved new sanctions on Iran’s financial and oil sectors, which prevent member countries from importing Iranian crude or dealing with its central bank.

Experts believe that SWIFT’s new action is meant to fully enforce EU sanctions, as global financial transactions are impossible without using SWIFT.

Bahmani rejected reports about a Japanese bank freezing transactions with Iranian banks.

On May 17, the Reuters reported that Bank of Tokyo-Mitsubishi UFJ has frozen USD 2.6 billion of assets of Iranian banks under an order by the New York District Court earlier this month.

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It’s Lonely (And Failure Ridden) Without the Goldman Net

By Andrew Ross Sorkin | The NY Times
November 1 2011

He was from Goldman Sachs.

That is the refrain you hear over and over again when MF Global insiders try to explain why they went along with Jon Corzine’s risky trades — the same ones that caused a crisis of confidence at the firm and, ultimately, its bankruptcy on Monday.

Mr. Corzine was at Goldman Sachs for nearly 25 years, rising to become its senior partner before being ousted in a boardroom coup in 1999. He was considered a bright, aggressive trader who had a history of making big bets that paid off. When he joined MF Global last year — after a decade in politics as a Democratic senator and governor of New Jersey — he talked openly about his ambition to create a mini-Goldman.

Being a former Goldmanite has long been considered the ultimate calling card.

But, in some cases, it has proved to be a liability: A series of blunders by former senior Goldman executives raises questions about whether Goldman’s secret sauce can actually be exported. Think John Thain. Or Robert Rubin. Or J. Chris Flowers.

“Those people walked around with halos around them. Myths have been created on Wall Street. Nowhere is the myth bigger than at Goldman,” William Cohan, the author of “Money and Power, How Goldman Sachs Came to Rule the World,” a 658-page volume that explored the firm’s history and culture, said in an interview.

But Mr. Cohan, pausing briefly, added that whatever myths might exist around Goldman, “Everybody puts their pants on the same way, one foot at a time.”

It is a lesson that some of Goldman’s smartest alumni have learned the hard way, none more so than Mr. Corzine.

His outsize bets at MF Global on European sovereign debt — many of which he made personally — proved the firm’s undoing because of the large amount of leverage that he used to magnify his bets. As of the firm’s filing at the end of June, it had $44.4 billion worth of liabilities; yet it only had $1.4 billion of equity. That kind of leverage was enough to scare credit ratings agencies into downgrading the firm last week, which led counterparties to stop trading with it.

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