Government moves to seize banks in Lithuania and Latvia have affected Latvia's borrowing plans and raised questions about the stability of the Baltic banking sector

Government moves to seize banks in Lithuania and Latvia have affected Latvia's borrowing plans and raised questions about the stability of the Baltic banking sector, but officials and analysts said that if the action is handled adroitly, the damage should be limited to the institutions directly involved.

The Lithuanian government last week took over that country's fifth-largest bank, Bankas Snoras, while neighboring Latvia followed by suspending the operations of Latvijas Krajbanka, a unit of the Lithuanian bank.

The Lithuanian authorities said the seizure of Bankas Snoras was due to it having assets that were smaller than its liabilitie

The shortfall of commodity customer funds at MF Global Holdings Ltd (MFGLQ.PK) may be around $1.2 billion

The shortfall of commodity customer funds at MF Global Holdings Ltd (MFGLQ.PK) may be around $1.2 billion, about double initial estimates from regulators, the trustee liquidating the company said on Monday.

The news was a blow to customers still hoping to get more of their cash out of frozen broker accounts and raised new questions about why the authorities managed to locate only about 60 percent of the segregated customer funds three weeks after the parent firm's October 31 bankruptcy.

"I'm flabbergasted," said Tom Ward, a retired Chicago Board of Trade member whose two sons cleared their futures trades through MF Global and have been blocked from accessing their money. "The bottom line is, there's going to be a haircut involved. It's devastating, what this has done to the industry."

Monday's announcement was trustee James Giddens' first public statement on the size of the shortfall, which regulators initially said was about $600 million.

Regulators are investigating what happened to the money and whether MF Global may have improperly mixed customer money with its own -- a major violation of industry rules. No charges have been filed.

Hours after the statement, the bankrupt MF Global parent filed court papers along with JPMorgan Chase & Co (JPM.N), one of its key lenders, seeking the rare appointment of a separate trustee to take over the company's assets in bankruptcy.

Such appointments are reserved for cases in which a company's executives are accused of wrongdoing or when it may otherwise be in the estate's best interest. JPMorgan, which pledged $8 million of its collateral to keep MF Global afloat during bankruptcy, agreed to increase that pledge to $26 million if a trustee were appointed, according to the filing.

The request is on the agenda for a hearing tomorrow afternoon in U.S. Bankruptcy Court in Manhattan.

An MFGlobal spokeswomen declined to comment on the case.

QUESTIONS RAISED

In Monday's statement, Giddens said he currently controls about $1.6 billion of the brokerage's funds that he can use to pay back customers. His plans to pay back 60 percent of customer funds by early December would nearly exhaust that amount.

The sharply higher estimate of the shortfall raises questions about the investigation, said Tim Butler, an attorney for a group of customers demanding a fuller payback.

"What did the CFTC know three weeks ago and what do they know now?" Butler said. "If the amount has changed that much over three weeks, where did the money go? What were (regulators) looking at before?"

Leaders on Capitol Hill have entered the fray with calls for hearings and accountability.

Sen. Chuck Grassley, R-Iowa, said the CFTC should "do everything possible" to get more information to customers on the status of their funds. The call comes as angry farmers and ranchers across the country begin to reconsider a livelihood in the market and how they hedge future crops and livestocks.

"Unlike the big banks, the average farmer who lost money in this fiasco can't afford to hire an attorney and attend proceedings in a Manhattan courtroom," Grassley said in a statement.

MF Global was run by former Goldman Sachs & Co Inc (GS.N) chief and New Jersey governor Jon Corzine before its bankruptcy. The Chapter 11 filing came after the New York-based company revealed it made a $6.3 billion bet on European sovereign debt. Corzine resigned on November 4.

On Sunday, Reuters reported that, based on initial reports of what was supposed to be segregated for customers, the trustee appeared to be keeping about $3 billion on hand to cover the shortfall.

Customers had been clamoring for more specifics, saying that was too large of a cushion -- a notion Giddens rejected.

"Restoring 60 percent of what is in segregated customer accounts ... would require approximately $1.3 to $1.6 billion to implement," or nearly all the money at the trustee's disposal, he said.

Giddens previously transferred more than $2 billion to other brokers, giving most customers access to a portion of their funds.

Sen. Pat Roberts, R-Kan., said legislators should call on Corzine to testify about his former company's actions. Roberts said in a statement on Monday that the Senate Committee on Agriculture, Nutrition and Forestry should hold a special hearing on the matter.

If the trustee does exhaust the funds he now controls, his focus would shift to going after monies that may belong to the brokerage, but may be tied up in foreign depositories, or may be part of the shortfall, Giddens spokesman Kent Jarrell said.

"We can't distribute money we don't have, but we do have legal means for going after other assets," Jarrell said.

INVESTIGATION CONTINUES

The Commodity Futures Trading Commission and other regulators are investigating MF Global.

CFTC Commissioner Jill Sommers refused to speculate on how the $1.2 billion figure might compare with earlier estimates.

"From the very beginning we have tried as much as possible to never use a figure, out of fear that it's not right," said Sommers, who has been leading the agency's investigation into MF Global after Chairman Gary Gensler recused himself from the probe because of his ties to Corzine.

"Until the final reconciliation (of accounts) is done, you don't know what the shortfall is."

CME Group Inc (CME.O), operator of the clearinghouse for most of MF Global's customers, declined to comment.

Commodity customers say they have more questions than answers about MF Global's collapse and the safety of their money.

Sean McGillivray, vice president of Great Pacific Wealth Management, still has about $5 million tied up in MF Global for his customers. He was aware of the latest estimates of the shortfall, but wants exact figures.

"It would be in the best interest of all clients, brokers and anyone else caught in this mess to know just how much has been transferred ... and how much is supposed to be there," he said. "You could do this with an abacus and it would take less (time)."

A spokesman for the Commodity Customer Coalition in Chicago, which represents more than 7,000 former MF Global customers, said it was unclear how much of the trustee's estimate related to possible co-mingling of customer money.

Some of the missing money could be tied up overseas, said spokesman John L. Roe.

"We're hopeful given what was accounted for initially that more of the money will be found and that the trustee will work with us on an expedited claims process for customers," he said.

INVESTORS REACT

In a sign that even distressed investors are losing faith in a decent return, MF Global's bonds fell to an all-time low below 30 cents on the dollar, according to Tradeweb, down more than 5 cents on the day. The $325 million in 6.25 percent notes were issued at par in August.

Some investors have targeted other financial institutions. Two pension funds have sued seven banks, including Bank of America Corp (BAC.N), JPMorgan and Goldman Sachs, over prospectuses that allegedly concealed the problems that led to MF's collapse.

The trustee's case is In re MF Global Inc, U.S. Bankruptcy Court, Southern District of New York, No. 11-2790.

The MF Global bankruptcy is In Re MF Global Holdings Ltd, in the same court, No. 11-15059.

Police were in dark over foreign axe killer living in UK

 

COPS did not know an East European axe murderer was living in the UK until he caused a killer car crash, a court heard yesterday. Intars Pless, 34, hacked through a friend's throat in his native Latvia, then moved to Britain after he got out of jail. But Lincoln Crown Court heard police can only check a foreign national's record if they break the law here. So Pless's horrific crime came to light only after he drove into moped rider Valentina Planciunene, 37, while over twice the limit. Stuart Lody, prosecuting, told the court: "On the night of Valentine's Day he decided it would be a perfectly good idea to drink a very large quantity of whisky. Surprised "He and a friend spent a considerable period of time drinking whisky and driving around. "During the driving he was possibly drinking whisky as well. An empty whisky bottle was found in the boot of the car. "At the time of the collision he was heavily under the influence of alcohol. His ability to drive would have been severely impaired." Pless was convicted of causing death by dangerous driving after the jury heard he left her dead in the road in Wyberton Fen, Lincs. He was told he faces a long jail term. The judge also called for his deportation.

UK economy forecast: Eurozone crisis dampens Bank’s growth estimate

 

THE Bank of England warned today that the eurozone debt crisis is the “single biggest risk” to the UK recovery as it forecast a dramatically increased threat of a double-dip recession next year. Its quarterly inflation report revealed a greater chance of the economy contracting in the first three quarters of 2012, compared with its August forecasts, as eurozone and banking concerns and squeezed household budgets continue to weigh on growth. The Bank slashed its central - or most likely - growth estimate to no more than 1 per cent in both 2011 and 2012 from previous forecasts of around 1.5 per cent and 2.2 per cent respectively. The worsened prospects for the UK economy mean inflation is likely to fall far quicker than previously estimated, hitting the Government’s 2 per cent target in the second half of next year before falling to as low as around 1.3 per cent in 2013. Bank governor Sir Mervyn King warned the “journey to a more balanced world economy will be long and arduous”. He said UK economic activity will be broadly flat until the middle of next year and added that the country faces a “difficult economic environment”. Today’s report backs the City’s view that the Bank will keep interest rates on hold for the foreseeable future and add another £75 billion to its quantitative easing programme by February. Vicky Redwood, chief UK economist at Capital Economics, said: “Even the Bank’s downgraded growth forecasts still look optimistic to us - we expect zero growth next year.”

Man arrested over alleged police payments named as Sun journalist

 

A Sun journalist has been arrested as part of Scotland Yard's investigation into alleged payments to police officers by newspapers. The reporter is believed to be Jamie Pyatt, district editor of the paper. The arrested journalist was taken to a South West London police station at 10.30am on Friday. Pyatt, 48, has been working at the Sun since 1987. He is the sixth person arrested by detectives working in Operation Elveden, which was set up in July following allegations that police officers had received up to £130,000 over several years from the News of the World for information, including contact details of the royal family. News International refused to comment on the arrest and saying it had "a very clear duty of care to employees and would not be making any comment on individuals". Scotland Yard also refused to confirm the identity of the person it arrested, but said in a statement earlier that it had arrested a 48-year-old man in connection with Operation Elveden. Its statement said: "He was arrested outside London on suspicion of corruption allegations in contravention of section 1 of the Prevention of Corruption Act 1906, and is being brought to a south-west London police station." Operation Elveden is one of three Met investigations relating to alleged illegal activities by newspapers. The others are Operation Weeting and Operation Tuleta, set up to examine phone hacking and computer hacking, respectively. On Thursday, Scotland Yard confirmed to the Guardian that the number of people whose phones may have been hacked had reached 5,800 – 2,000 more than previously stated. So far 16 people have been arrested and bailed on allegations of phone hacking.

Italy government hangs by thread as coalition crumbles

 

Italian Prime Minister Silvio Berlusconi's fate hung by a thread Friday and desertions from his crumbling centre-right coalition may have already robbed him of the parliamentary numbers he needs to survive. Berlusconi, caught in the crossfire from European powers and a party revolt at home, agreed at a G20 summit in France to IMF monitoring of economic reforms which he has long promised but failed to implement. But this may soon be irrelevant for the Italian leader, who will return to Rome later Friday to face what looks increasingly like a deadly rebellion by his own supporters. With financial markets in turmoil over the situation in Greece and Italy viewed as the next domino to fall in the euro zone crisis, calls are mounting for a new government to carry through reforms convincing enough to regain international confidence. Berlusconi has consistently rejected calls to resign and says the only alternative to him is an early election next spring, rather than the technocrat or national unity government urged by many politicians and commentators. Yields on 10-year Italian bonds reached 6.36 percent by early afternoon, creeping closer to 7 percent, a level which could trigger a so-called "buyers' strike" where investors take fright and refuse to buy the paper. Two deputies from Berlusconi's PDL party this week defected to the centrist UDC, taking his support in the 630-seat lower house of parliament to 314 compared with the 316 he needed to win a confidence vote last month. But at least seven other former loyalists have called for a new government and could vote against the 75-year-old media magnate. "The (ruling) majority seems to be dissolving like a snowman in spring," said respected commentator Stefano Folli in the financial daily Il Sole 24 Ore. Other commentators spoke of an "inexorable" revolt against Berlusconi. Even Defence Ministry undersecretary Guido Crosetto, a Berlusconi loyalist, said on television: "I don't know how many days or weeks the government has left. Certainly a majority relying on a few votes cannot continue for long." PATRONAGE Berlusconi, one of Italy's richest men, still has significant powers of patronage and he and his closest aides are expected to spend the weekend trying to win back support for a parliamentary showdown Tuesday. Some rebels have already threatened to vote against Berlusconi in the vote to sign off on the 2010 budget. Berlusconi faced concerted calls to resign when he lost a previous vote on this routine measure, which was almost unprecedented. Although it is not a confidence motion, he would come under huge pressure if he suffered a second defeat. "Unpopular prescriptions are necessary and this challenge cannot be faced with a 51 percent government," said UDC leader Pier Ferdinando Casini, in a reference to Berlusconi's weakness and a widespread feeling that the reforms can only be passed with a broad consensus. The premier has promised European leaders that he will call a formal confidence motion within 15 days to pass amendments to a budget bill incorporating new measures to stimulate growth and cut Italy's huge debt. That will be in the Senate where he has a more solid majority but it could still bring him down. Berlusconi, beset by a string of sex scandals and court cases, has consistently resisted pressure from groups ranging from a powerful business lobby to the Catholic Church to stand down.

Chris and Mary Gorman were arrested by police in Orlando, Florida, after a member of staff at the city's Roxy venue found two men and a woman in the men's toilets.

Accused ... Mary Gorman.

A multimillionaire British couple have vowed to fight charges against them after they were arrested in a US nightclub following an alleged sex act.

Entrepreneurs Chris and Mary Gorman were arrested by police in Orlando, Florida, after a member of staff at the city's Roxy venue found two men and a woman in the men's toilets.

The couple, who live in Renfrewshire and are thought to be worth more than £40 million ($62 million), do not face indecency charges.

TV celebrity Peter Andre visited the new Aventura Amazonia

 

TV celebrity Peter Andre visited the new Aventura Amazonia adventure park in Marbella with his children.

 

The visit was part of a recording for ITV2’s ‘My Life’.

 

Hugh Grant is the delighted father of a baby girl. He and the mother had a fleeting affair and while this was not planned, Hugh could not be happier or more supportive

British actor Hugh Grant has become a father for the first time at the age of 51. Photograph: Leon Neal/AFP

Film star turned anti-hacking activist Hugh Grant has become a parent for the first time at the age of 51.

The actor – best known for roles in Four Weddings and a Funeral and Bridget Jones's Diary – became father to a baby girl earlier this month.

The identity of the mother has not been revealed but a spokeswoman for the actor said they were on good terms.

She added: "I can confirm that Hugh Grant is the delighted father of a baby girl. He and the mother had a fleeting affair and while this was not planned, Hugh could not be happier or more supportive. He and the mother have discussed everything and are on very friendly terms."

Grant has had several high-profile previous relationships, including with Elizabeth Hurley and socialite Jemima Khan, from whom he split in 2007.

The actor has kept a low profile on the big screen in recent years. His last role was alongside Sarah Jessica Parker in 2009's Did You Hear About the Morgans? and his next project is to voice the role of a captain in animated film The Pirates!, due for release in spring.

Grant, who suspected that his own phone had been hacked, recently emerged as the unofficial spokesman for victims of phone hacking at the News of the World after railing against politicians for failing to curb the power of Rupert Murdoch. He wrote a New Statesman article after secretly recording a conversation with a former News of the World reporter, Paul McMullan, in which he alleged that ex-editor Rebekah Brooks knew about hacking at the paper.

Taking a shot … Roger Moore, shown here in 1984 Bond film A View to a Kill, was less than impressed by Quantum of Solace

. Photograph: Allstar/Cinetext Collection

Former James Bond actor Sir Roger Moore has described the franchise's most recent outing, Quantum of Solace, as "a long, disjointed commercial".

 

The 84-year-old actor, who played 007 for 12 years between 1973 and 1985, was speaking to a reporter from Cambridge University's Varsity newspaper when he criticised the film, which was released in 2008 and starred Daniel Craig. Moore, who praised Craig's interpretation of Ian Fleming's secret agent despite disliking the film, also passed comment on another Bond - his own predecessor, Sean Connery. "Sean is a good actor," said Moore. "It's a pity I can't understand what he's saying."

 

Moore, known for his wry sense of humour, rounded off the interview by revealing that his favourite contemporary actor is Johnny Depp. "I wish he would change his name to something I can remember," he quipped.

 

The actor also identified his favourite Bond girl – his wife, Danish-Swedish multi-millionaire Kristina Tholstrup. He was visiting the university to give a speech at the student union, where he introduced himself as "Moore, Roger Moore".

 

Meanwhile, Daniel Craig will return as 007 in a new James Bond film, rumoured to be titled Skyfall, which will arrive in cinemas next year. Javier Bardem, Ralph Fiennes and Naomie Harris have all been linked with the film, which will be helmed by American Beauty director Sam Mendes. Official confirmation of the film's details will be announced at a press conference in London tomorrow