TOKYO MASTER BANNER

MINISTRY OF TOKYO
US-ANGLO CAPITALISMEU-NATO IMPERIALISM
Illegitimate Transfer of Inalienable European Rights via Convention(s) & Supranational Bodies
Establishment of Sovereignty-Usurping Supranational Body Dictatorships
Enduring Program of DEMOGRAPHICS WAR on Europeans
Enduring Program of PSYCHOLOGICAL WAR on Europeans
Enduring Program of European Displacement, Dismemberment, Dispossession, & Dissolution
No wars or conditions abroad (& no domestic or global economic pretexts) justify government policy facilitating the invasion of ancestral European homelands, the rape of European women, the destruction of European societies, & the genocide of Europeans.
U.S. RULING OLIGARCHY WAGES HYBRID WAR TO SALVAGE HEGEMONY
[LINK | Article]

*U.S. OLIGARCHY WAGES HYBRID WAR* | U.S. Empire's Casino Unsustainable | Destabilised U.S. Monetary & Financial System | U.S. Defaults Twice A Year | Causes for Global Financial Crisis of 2008 Remain | Financial Pyramids Composed of Derivatives & National Debt Are Growing | *U.S. OLIGARCHY WAGES HYBRID WAR* | U.S. Empire's Casino Unsustainable | Destabilised U.S. Monetary & Financial System | U.S. Defaults Twice A Year | Causes for Global Financial Crisis of 2008 Remain | Financial Pyramids Composed of Derivatives & National Debt Are Growing | *U.S. OLIGARCHY WAGES HYBRID WAR*

Who's preaching world democracy, democracy, democracy? —Who wants to make free people free?
[info from Craig Murray video appearance, follows]  US-Anglo Alliance DELIBERATELY STOKING ANTI-RUSSIAN FEELING & RAMPING UP TENSION BETWEEN EASTERN EUROPE & RUSSIA.  British military/government feeding media PROPAGANDA.  Media choosing to PUBLISH government PROPAGANDA.  US naval aggression against Russia:  Baltic Sea — US naval aggression against China:  South China Sea.  Continued NATO pressure on Russia:  US missile systems moving into Eastern Europe.     [info from John Pilger interview follows]  War Hawk:  Hillary Clinton — embodiment of seamless aggressive American imperialist post-WWII system.  USA in frenzy of preparation for a conflict.  Greatest US-led build-up of forces since WWII gathered in Eastern Europe and in Baltic states.  US expansion & military preparation HAS NOT BEEN REPORTED IN THE WEST.  Since US paid for & controlled US coup, UKRAINE has become an American preserve and CIA Theme Park, on Russia's borderland, through which Germans invaded in the 1940s, costing 27 million Russian lives.  Imagine equivalent occurring on US borders in Canada or Mexico.  US military preparations against RUSSIA and against CHINA have NOT been reported by MEDIA.  US has sent guided missile ships to diputed zone in South China Sea.  DANGER OF US PRE-EMPTIVE NUCLEAR STRIKES.  China is on HIGH NUCLEAR ALERT.  US spy plane intercepted by Chinese fighter jets.  Public is primed to accept so-called 'aggressive' moves by China, when these are in fact defensive moves:  US 400 major bases encircling China; Okinawa has 32 American military installations; Japan has 130 American military bases in all.  WARNING PENTAGON MILITARY THINKING DOMINATES WASHINGTON. ⟴  
Showing posts with label Elliott Management Corp. Show all posts
Showing posts with label Elliott Management Corp. Show all posts

August 07, 2014

US AUTO INDUSTRY BAIL-OUT - INVERSIONS - HEDGE FUND WINS





SPECIAL REPORT
Obama aides let Delphi avoid taxes with 'inversion' tactic now assailed



Zachary R. Mider
Bloomberg
August 6, 2014 - 12:34 am ET

WASHINGTON -- President Barack Obama says U.S. corporations that adopt foreign addresses to avoid taxes are unpatriotic. His own administration helped one $20 billion American company do just that.

As part of the bailout of the auto industry in 2009, Obama's Treasury Department authorized spending $1.7 billion of government funds to get a bankrupt Michigan parts-maker back on its feet -- as a British company.

While executives continue to run Delphi Automotive from a Detroit suburb, the paper headquarters in England potentially reduces the company's U.S. tax bill by as much as $110 million a year.

The Obama administration's role in aiding Delphi's escape from the U.S. tax system may complicate the president's new campaign against corporate expatriation.
...
Thanks to gaps in a Congressional ban on contracts with inverted companies, his administration continues to award more than $1 billion annually in government business to more than a dozen corporate expats.

IRS case

The Obama administration is now trying to rescind the tax benefits of the Delphi deal that it helped broker.

In June, the Internal Revenue Service told Delphi that the 2009 address change should be disregarded for tax purposes, and that Delphi must pay taxes as a U.S. company.

Delphi says in a securities filing that it will "vigorously contest" the IRS's demand.

"The recent rise in inversion transactions has the IRS and Treasury and the president understandably rattled, so they're now trying to play catch up," said Julie Roin, a tax professor at University of Chicago Law School. "They were worried about other things in 2009."

U.S. companies have been inverting for decades. The pace of departures began to quicken about two years ago, as a series of drugmakers sought to become Irish. The issue caught the attention of lawmakers and the Obama administration this year.

...
Rescue loans

Facing the worst car market in decades, GM and Chrysler were themselves running out of cash. Some officials said they feared an economic catastrophe if the automakers were forced to liquidate and put hundreds of thousands out of work.

In December 2008, the outgoing Bush administration approved $17.4 billion in rescue loans for GM and Chrysler. In February, Obama assembled a task force led by Steven Rattner, a Wall Street financier, to oversee the bailout.

The Treasury task force had broad authority at the automakers, because the terms of the government loans propping them up gave it veto power over major decisions. One of the team's first jobs was to fix Delphi.

GM still depended on its former subsidiary for crucial parts like steering assemblies. A liquidation of the supplier could end up shutting down many of GM's assembly lines, too. But the team members didn't want GM to dump money into Delphi indefinitely.
...

Tax-friendly Luxembourg

He doesn't mention one detail of the transaction that was disclosed three weeks after the Platinum agreement in a public court filing: Platinum was considering registering the new Delphi in tax-friendly Luxembourg rather than in the U.S.

The following month, Platinum took steps to carry out the plan, dispatching lawyers to register two Luxembourg entities. Both bore the name Platinum used for its Delphi project: Parnassus, the mountain in Greece where, according to legend, the oracle of Delphi issued her prophecies.

Meanwhile, GM made its own trip through bankruptcy court to shed its debts. On July 10, 2009, it emerged under the formal control of the Treasury Department, which had swapped some of its debt for stock and now held 61 percent of the shares. [So is this like a govt takeover?]
...

Platinum out

The deal with Platinum soon ran into trouble. Creditors including Elliott Management, the hedge fund run by New York billionaire Paul E. Singer, said Platinum was buying the company too cheap. [Singer's the Argentina vulture hedge fund guy.]

So Elliott and another hedge fund, Greenwich, Connecticut-based Silver Point Capital LP, put in their own bid for the company, offering to swap their debt for new shares. On July 26, 2009, they agreed with GM to cut Platinum out of the deal.

In some ways, the Elliott deal was similar to the one Rattner's task force approved the previous month.

GM would provide crucial financing for the new company -- a $1.7 billion direct investment in its equity, making it a shareholder alongside the hedge funds. GM would also buy the steering business and other assets for about $1.1 billion.

All this spending would depend on the Treasury Department's approval. After it emerged from bankruptcy, GM ended up with $16 billion of Treasury Department funds in a special escrow account that could be tapped only with the government's blessing.

Another detail remained the same as well: GM and the hedge funds agreed to register the new Delphi in Luxembourg or another, mutually agreeable foreign country.

...

Lower corporate taxes

Along with Ireland and the Netherlands, the United Kingdom is becoming increasingly popular with companies seeking to flee the U.S. system. In addition to Pfizer, AbbVie Inc., an Illinois drugmaker with a market value of about $85 billion, announced plans last month to become a U.K. taxpayer.

The United Kingdom not only has a lower corporate tax rate -- 21 percent -- than the United States, but it taxes companies only on their domestic earnings.

U.S. companies must pay taxes on the profits of their foreign operations -- a major hindrance for Delphi, whose factories are spread around the world.

Judge Robert Drain, who approved the sale in bankruptcy court, declined to comment. Spokesmen at Elliott and Silver Point also declined to comment, and Mark Barnhill, a partner at Platinum, didn't respond to requests for comment.

...

Hedge funds win

The Delphi takeover proved to be a huge win for the hedge funds, and for Treasury-controlled GM.

Stripped of its debts and its U.S. tax domicile, the company surged in value. GM sold its stake back to Delphi in 2011, recognizing a $1.6 billion after-tax gain. Elliott did even better, according to the New York Post. Singer's fund turned a $300 million investment into $1.3 billion by the time Delphi sold shares to the public that year, the Post reported at the time.  [OMG!!]

After Delphi got its New York Stock Exchange listing in 2011, its stock continued to advance. With a market capitalization of about $20 billion, it's now among the biggest and most profitable U.S. corporate expatriates.

Going public required Delphi to switch from partnership to corporate form. Becoming a U.K. corporation, though, would have required an accounting change that could have threatened its eligibility for inclusion in the Standard and Poor's 500 Index of the largest U.S. companies.

Instead, Delphi incorporated in the tiny English Channel island of Jersey, a self-governing Crown dependency that didn't require the accounting change.

...



Hedge funds always win!

Go to places to dodge tax:
  • Luxemburg
  • Ireland
  • Netherlands
  • UK (21% corporate tax + no tax on foreign earnings)
  • Jersey Island
The above is only extracts from the article in Autonews.  Go to link for the whole story.

August 02, 2014

ARGENTINA - $1 BILLION DEFAULT INSURANCE TRIGGERED ON BONDS

Argentina Default Triggers $1 Billion of Swaps After ISDA Ruling
By Abigail Moses Aug 2, 2014 2:04 AM ET
Argentina’s failure to pay interest on its bonds is a credit event that will trigger settlement of $1 billion of default insurance, according to the International Swaps and Derivatives Association.

ISDA’s determinations committee made the ruling in response to a question posed by Swiss bank UBS AG after the government missed a July 30 payment deadline on $539 million of interest. Argentina is the first nation to trigger default swaps since Greece restructured its debt in 2012.

The ruling was seen by traders as complicated because Argentina made the required payment to the trustee for the bond, Bank of New York Mellon Corp. The bank said yesterday that a U.S. judge’s ruling bars it from passing the money to bondholders without a resolution of the nation’s dispute with hedge funds led by Elliott Management Corp., which sued the nation for $1.5 billion.

From the perspective of Argentina, you could argue they provided the payments and the transfer mechanism doesn’t work,” said Jochen Felsenheimer, the Munich-based founder of XAIA Investment GmbH, which manages 2.8 billion euros ($3.76 billion) in credit funds. “From the investor standpoint, you can argue they didn’t get the coupon.”

...

Binding Decisions

ISDA’s determinations committee was formed in 2009 and makes binding decisions for the market on whether contracts can be triggered. The 15-member group includes representatives from Bank of America Corp., Elliott Management, Morgan Stanley and JPMorgan Chase and Co.

There were 2,652 contracts covering $1 billion of Argentina bonds as of July 25, according to the Depository Trust and Clearing Corp. That compares with about $3 billion for Greek bonds when they were triggered in 2012 and $20 billion on Italy’s as of last week.

... EXTRACT ONLY ... FULL @...

http://www.bloomberg.com/news/2014-08-01/argentina-default-triggers-1-billion-of-swaps-after-isda-ruling.htmll


Argentina made the payment.

Bank of New York Mellon Corp didn't make the transfer.

Judge's ruling bars the bank.

Perhaps the State should pay the insurance then, because the matter isn't resolved.
One would think there would be avenues of appeal?

ISDA (International Swaps and Derivatives Association) make binding decisions ...but is ISDA impartial?  Is it supposed to be?

Check out the $20 billion bonds associated with Italy!!  That looks an interesting story.