I.N.N. World Report

Madoff Chasers Dug for Years, to No Avail 
 
***Bernard L. Madoff Investment Securities LLC was examined at least eight times in 16 years by the Securities and Exchange Commission and other regulators with  no  results.SEC officials followed up on emails from a New York hedge fund that described Bernard Madoff's business practices as "highly unusual." The Financial Industry Regulatory Authority, the industry-run watchdog for brokerage firms, reported in 2007 that parts of the firm appeared to have no customers. Madoff was interviewed at least twice by the SEC. But regulators never came close to uncovering the alleged $50 billion Ponzi scheme that investigators now believe began in the 1970s. A Congressional hearing began  this  week to probe why the alleged fraud went undetected.  With Congress likely to take a hard look at how to structure oversight of financial markets, the SEC is struggling to maintain its clout.The failure to stop  Madoff also is an embarrassment for Mary Schapiro, the Finra chief who has been nominated by  Barack Obama as the next SEC chairman. Finra was involved in several investigations of  Madoff's firm and an examination in 2007 indicated that parts of the firm had no customers. Harry Markopolos, an executive then working at a rival company, met with  the SEC in 2001 to lay out his concerns that Madoff's firm was " the world's largest Ponzi scheme." . The same month, Barron's, a Dow Jones & Co. publication, and hedge-fund trade publication MarHedge suggested Mr. Madoff was front running for favored clients.

***In Feb. 2008, a military judge convicted Sgt. Evan Vela, a 24-year-old U.S. Army sniper, “and sentenced him to 10 years in prison for killing an Iraqi civilian who wandered into the hiding place where six soldiers were sleeping.” Vela, who was sentenced to a dishonorable discharge, was found guilty of planting an AK-47 on the dead Iraqi man’s body and of lying to military investigators about the shooting. According to a letter sent by the White House to Vela’s family,  Bush is now “strongly considering” a request to pardon Vela. Vela's father says he has received a letter from the White House confirming that his request that his son be pardoned by President Bush is being “seriously considered. ”Curtis Carnahan says he received the letter last week. Sen. Mike Crapo  and Rep. Mike Simpson  have written letters to Bush on behalf of Vela, urging that the president grant him clemency. Crapo and Simpson argued that Vela “was simply following the orders of his superiors.”

Johnston resigned his position after allegations that Sarah Palin helped him skirt the rules.

***The Anchorage Daily News reports that Levi Johnston, boyfriend of Gov. Sarah Palin’s daughter Bristol, has quit his oil field job over questions about his eligibility to work in an electrical apprenticeship program.  Dan Fagan – an Anchorage radio talk show host – questioned how Johnston was eligible to take part in the apprenticeship program without a high school diploma. Fagan wrote: The governor, in trying to dispel rumors the father of her grandchild is a high school dropout, released astatement saying,  “Levi is continuing his online high school work in addition to working as an electrical apprentice on the North Slope.” Federal regulations require all members of apprentice programs, union or otherwise, to first obtain a high school diploma, something the governor’s soon-to-be son-in- law does not have. Some apprentice programs even require the completion of high school level algebra or the post-secondary equivalent. This appears  to be  another case of the governor believing the rules don’t apply to her or her family. Johnston resigned his apprenticeship position on Monday in an effort to “calm the waters” .  More than 100 of Palin's appointments to state posts — nearly 1 in 4 — "went to campaign contributors or their relatives, sometimes without apparent regard to qualifications." The New York Times headlined, "Once Elected, Palin Hired Friends and Lashed Foes"

Over 500 Killed in Gaza Warn Posted January 4, 20
10  days after the Israeli attack on Gaza began,  520 Gazans have  been  reported killed and thousands wounded. On  Saturda, an Israeli tank attacked a house full of Palestinian children, killing one and injuring 11 others, at least 31 additional civilians were also killed. Tens of thousands of civilians have been displaced from their homes, and food is in increasingly short supply.   One third of the population is without water, and three quarters without electricity. An Israeli soldier was killed  today, the first since Israel launched its ground operation, 31 Israel Defense Forces soldiers have been wounded. Israel is believed to be using controversial white phosphorus shells to screen its assault. The  weapon used by British and US forces in Iraq, can cause horrific burns but is not illegal if used as a smokescreeni. Haaretz news  service  also reported  the use of cluster bombs

Israel Stocks Rise With Global Equities as Investors Ignore War 05 Jan 2009 Investors in Israeli stocks are disregarding a war less than 37 miles away from  Tel Aviv, helping the TA-25 index rebound from its worst year since 1983... The  index has climbed 7.4 percent since Dec. 27 when Israel started its campaign against Hamas in the Gaza Strip.

 World unites in protests  04 Jan 2009 Tens of thousands took to the streets across the world this  weekend to protest against Israel's bombing of Gaza. More than 5,000 demonstrators marched on Trafalgar Square in London. Hundreds threw shoes at Downing Street, inspired by the Iraqi journalist who showed the  Muslim sign of disrespect to George Bush last month.  Mass demonstrations took place in other major western capitals and across the Muslim nations of the Middle East.  

Europe angered by Bush's defence of Israel 05 Jan 200 European leaders are increasing their calls for a ceasefire, between Israel and Gaza. European Union delegation is on its way to the region.  In the United States, the Bush administration is backing Israel's actions and continues to blame Hamas for the violence.

US Installed Iraqi Ex-Prime Minister Says Bush "Utter Failure"
 Khalid al-Ansary, Reuters: "Former US-installed Iraqi Prime Minister Iyad Allawi has denounced the policies of President George W. Bush as an 'utter failure' that gave rise to the sectarian venom that ravaged his country. In an interview published on Saturday in the pan-Arab newspaper Asharq al-Awsat, Allawi found fault with American management of Iraq since the US-led invasion in 2003 as well as the government of present Prime Minister Nuri al-Maliki."

In National News:

Madoff's assets to be kept secret
The US Securities and Exchange Commission, which sued Bernard Madoff last month for allegedly directing a $US50 billion fraud, is to withhold public access to a list of his assets.  rofessor John Coffee, of Columbia Law School said  "There is the danger that foreign regulators and foreign creditors may seek to seize that money if the names and sources are made public."  Madoff was charged last month by federal prosecutors with directing an alleged Ponzi scheme through his New York investment firm.

Richardson to withdraw bid for Obama cabinet Published: Sunday January 4, 2009   NewMexico Gov. Bill Richardson, tapped in December by President-elect Barack Obama to serve as secretary of Commerce, withdrew his bid because of an federal investigation into his political activities.  Richardson, who will remain governor , is facing a federal grand jury investigation into whether he exchanged government contracts for contributions to three Richardson political committees

Embattled Illinois Governor Rod Blagojevich to replace  Barack Obama in the US Senate   Democratic leaders plan to grant few if any privileges next week to Roland Burris, the man picked by embattled Illinois Governor Rod Blagojevich to replace President-elect Barack Obama in the US Senate. Senate officials said that a Democrat will object to Burris being duly sworn with the rest of his class, and propose that his credentials be reviewed by the Rules Committee