Showing posts with label Sparks. Show all posts
Showing posts with label Sparks. Show all posts

Monday, March 24, 2014

Iran’s fake US ship for movie set sparks media hype

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Iran’s fake US ship for movie set sparks media hype

Iran’s fake US ship for movie set sparks media hype

At Alternate Viewpoint, the privacy of our visitors is of extreme importance to us (See this article to learn more about Privacy Policies.). This privacy policy document outlines the types of personal information is received and collected by Alternate Viewpoint and how it is used.


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Alternate Viewpoint does use cookies to store information about visitors preferences, record user-specific information on which pages the user access or visit, customize Web page content based on visitors browser type or other information that the visitor sends via their browser.


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  • Google, as a third party vendor, uses cookies to serve ads on Alternate Viewpoint.

  • Google"s use of the DART cookie enables it to serve ads to users based on their visit to Alternate Viewpoint and other sites on the Internet.

  • Users may opt out of the use of the DART cookie by visiting the Google ad and content network privacy policy at the following URL - http://www.google.com/privacy_ads.html.

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Alternate Viewpoint has no access to or control over these cookies that are used by third-party advertisers.


You should consult the respective privacy policies of these third-party ad servers for more detailed information on their practices as well as for instructions about how to opt-out of certain practices. Alternate Viewpoint"s privacy policy does not apply to, and we cannot control the activities of, such other advertisers or web sites.


If you wish to disable cookies, you may do so through your individual browser options. More detailed information about cookie management with specific web browsers can be found at the browser"s respective websites.



Iran’s fake US ship for movie set sparks media hype

Monday, January 27, 2014

Internet censorship bill sparks violent clashes in Istanbul


Anti-government protesters and police clashed in Istanbul on Saturday during demonstrations against the government’s new internet policy.


Protesters converged on Taksim Square, chanting “Government resign” and “All united against fascism”, with some reportedly launching fireworks and stones at police. In response, Turkish riot police deployed water canon, tear gas and plastic bullets to disperse protesters. Clashes broke up soon afterwards.


The internet bill would allow officials to keep records of web users’ activities and block keywords seen as ‘problematic’. Despite growing concerns about censorship, the bill was approved by a parliamentary committee on Thursday




Wake Up From Your Slumber – The Truth Will Set You Free



Internet censorship bill sparks violent clashes in Istanbul

Monday, November 25, 2013

Person ‘with a gun’ on Yale University campus sparks ‘shelter in place’ alert

Person ‘with a gun’ on Yale University campus sparks ‘shelter in place’ alert
http://thedailynewsreport.com/wp-content/uploads/2013/11/dd756__p-89EKCgBk8MZdE.gif


posted on Nov, 25 2013 @ 10:53 AM


reply to post by MessOnTheFED!

Prediction: “gun” will turn out to be either “English muffin”, or absolutely nothing at all, because the “person” never existed to begin with.


Just a feeling.


edit on 11/25/2013 by CaticusMaximus because: (no reason given)





AboveTopSecret.com New Topics In Breaking Alternative News




Read more about Person ‘with a gun’ on Yale University campus sparks ‘shelter in place’ alert and other interesting subjects concerning Top Stories at TheDailyNewsReport.com

Sunday, September 22, 2013

Miss America Winner Sparks Racist Tweets


“On Sunday evening, 24-year-old Nina Davuluri was crowned Miss America, making her the first Indian American to hold the title. Moments later, the racists ru…
Video Rating: 4 / 5



Miss America Winner Sparks Racist Tweets

Friday, September 13, 2013

Death of Bahrain activist sparks violent protest (VIDEO)



Published time: September 13, 2013 13:36


At least 12 protesters have been arrested in the north of Bahrain after a mass funeral of an opposition activist turned into a violent rally.


Protesters threw stones and street debris at riot police in the north of Bahrain, following a mass funeral of a 22-year-old activist in the village of al-Daih on Thursday, according to RT’s video agency, Ruptly.  


Demonstrators, who blocked roads with burning tires and cement blocks, were confronted by Special Security Forces officers, who arrived on tanks and riot jeeps and fired tear gas at the rally participants. 


Mohammed Abduljalil Yousif, an opposition activist, died on Wednesday and was immediately pronounced a ‘martyr’ by his fellow protesters, who believe he was run over by a police car. 


An alternative theory concerning the young activist’s death has been put forward by unnamed sources, cited by Gulf Daily News. They say Mohammed Abduljalil was killed by a tree, which he and his friends were trying to cut down in order to block a road as part of their protest activity. 


His friends panicked when one of the trees fell on him and he was lying in a pool of blood,” the daily is citing the source. “They didn’t call police, but took him to IHB [the International Hospital of Bahrain] where he was pronounced dead.


It’s not the first time protesters are claiming their fellow activist was run over by a police car. One of the most recent cases was in November 2012, when demonstrators accused police of killing a 16-year-old boy. The incident caused rioting as well.


Situation in Bahrain has been volatile with regular rallies staged by the opposition ever since the country’s ‘Arab Spring’ uprising was suppressed two-and-a-half years ago. The Shiite-led revolt back then was crushed by security forces protesting the Sunni al-Khalifa dynasty. 


Human Rights Watch says more than 80 people have died in uprisings since they began in February 2011. 


One of the most vocal critics of the government, activist Nabeel Rajab, has been serving a three-year term in jail since August 2012.


Reports of human rights violations in Bahrain have become a loaded issue for Washington, as the kingdom is home to the US Navy’s Fifth Fleet.


A series of massive and violent rallies took place in April, while the country was hosting the Formula One race and protesters were trying to draw the attention of the international community to the lack of democratic freedoms in Bahrain.


Bahrain’s parliament responded with new tough laws passed in July. The legislation bans protests in the capital and gives authorities the right to strip citizenship from those convicted of violence.


The UN has repeatedly called on Bahrain for it to permit entry of the United Nation’s envoy to the kingdom to investigate allegations of human rights abuse. Bahrain has refused to comply.




RT – News



Death of Bahrain activist sparks violent protest (VIDEO)

Sunday, September 1, 2013

Syria decision sparks confusion

Congress is shown. | AP Photo

It is still unclear when an authorization vote might occur. | AP Photo





President Barack Obama’s announcement Saturday to seek congressional authorization on military action in Syria quickly won praise from Capitol Hill, where frustration had mounted over potential unilateral use of force in response to the escalating crisis.


Still, it is unclear when that authorization vote would occur. Senate leaders are considering coming back to Washington early, according to senior aides. Meanwhile, House Republican leadership said in a joint statement that they expect its chamber to consider an authorization measure the week of Sept. 9, a timeline that would give Obama time to “make his case to Congress and the American people.”







“Under the Constitution, the responsibility to declare war lies with Congress,” said Speaker John Boehner, House Majority Leader Eric Cantor, House Majority Whip Kevin McCarthy, and House Republican Conference Chairwoman Cathy McMorris Rodgers. “We are glad the president is seeking authorization for any military action in Syria in response to serious, substantive questions being raised.”


(See POLITICO’s full Syria coverage)


But Senate leaders have made no decision yet, according to aides. The second-ranking Senate Republican, John Cornyn of Texas, has called for senators to return early to Washington to vote on an authorization measure. One top Senate aide said the White House will send the authorization proposal to Congress later Saturday.


An even bigger question: whether any authorization measure would pass Congress. A senior House Democratic aide said “it’s not clear at all” whether the White House would be able to to win authorization of use of force in Syria. But because lawmakers are scattered away from Washington during the annual summer recess, it’s difficult to do a whip count.


And given the sensitivity of the issue, is highly unlikely Boehner’s leadership team will weigh in and pressure people to vote a certain way — meaning the White House will have to whip the vote themselves.


Obama said in his Rose Garden statement that his decision to seek congressional approval had backing from the top four congressional leaders.


“The president’s role as commander-in-chief is always strengthened when he enjoys the expressed support of the Congress,” Senate Minority Leader Mitch McConnell (R-Ky.) said in a statement.


Sen. Bob Corker (R-Tenn.), the ranking Republican on the Senate Foreign Relations Committee, also said he was “very pleased” with Obama’s decision to seek Congress’s approval.


”At this point in our country’s history, this is absolutely the right decision, and I look forward to seeing what the Administration brings forward and to a vigorous debate on this important authorization,” Corker said. “Further, now that the president has decided to use force and seek authorization, it is imperative that he immediately begins using every ounce of his energy to make his case to the American people.


And Sen. Tim Kaine (D-Va.) said he “strongly supported” the president’s decision.


“The opportunity to fully debate this difficult situation will help educate the American public about the important issues at stake and ultimately provide a political consensus that our servicemembers must be able to rely on,” he said in a statement.


New York Rep. Eliot Engel, the top Democrat on the House Foreign Affairs Committee, urged Boehner to call the House back into session “immediately.”


“The president has laid out a strong and convincing case to the American people for action in Syria,” Engel said. “However, I understand his desire to seek explicit authorization to do so from Congress.


Others criticized Obama’s move. New York Rep. Peter King, the hawkish Republican who formerly chaired the House Homeland Security Committee, said in a statement that Obama was “abdicating his responsibility as commander-in-chief and undermining the authority of future presidents.”


“The President does not need Congress to authorize a strike on Syria,” King said. “If Assad’s use of chemical weapons against civilians deserves a military response, and I believe it does, and if the President is seeking congressional approval, then he should call Congress back into a special session at the earliest date. The President doesn’t need 535 Members of Congress to enforce his own red line.”




POLITICO – Congress



Syria decision sparks confusion

Friday, August 2, 2013

Taiwan nuclear vote sparks brawl





Punches and water were thrown, and the doors to the chamber were tied shut



A fight has broken out in Taiwan’s parliament ahead of a vote on a referendum on a nuclear plant.


Several Taiwanese lawmakers exchanged punches and threw cups and bottles of water at each other on Friday.


The parliament is set to vote on whether to hold a referendum on completing construction of the plant, which is located close to Taipei.


Nuclear power is controversial in Taiwan, where safety fears remain in the wake of Japan’s Fukushima disaster.


The nuclear plant, also known as Nuke 4, would be the island’s fourth. It has been in construction for more than 10 years, and is near completion.


However, Taiwan’s opposition Democratic Progressive Party is against the plant, citing safety fears.


More than 200,000 people took part in anti-nuclear protests in March.


The government says the $ 9bn (£6bn) facility is needed to prevent a power shortage.


Taiwan frequently experiences earthquakes. A 6.1 magnitude earthquake struck central Taiwan in March, injuring at least 20 people.


In March 2011, an earthquake and tsunami damaged Japan’s Fukushima Daiichi nuclear plant, triggering a meltdown.


Experts say years of work lie ahead before the problems at the plant can be fully contained.


Taiwan’s parliament has experienced brawls in the past. In June, lawmakers clashed over capital gains tax.




BBC News – Asia



Taiwan nuclear vote sparks brawl

Friday, July 12, 2013

Spread of DNA databases sparks ethical concerns



LONDON (AP) — You can ditch your computer and leave your cellphone at home, but you can’t escape your DNA.


It belongs uniquely to you — and, increasingly, to the authorities.


Countries around the world are collecting genetic material from millions of citizens in the name of fighting crime and terrorism — and, according to critics, heading into uncharted ethical terrain.


Leaders include the United States — where the Supreme Court recently backed the collection of DNA swabs from suspects on arrest — and Britain, where police held samples of almost 7 million people, more than 10 percent of the population, until a court-ordered about-face saw the incineration of a chunk of the database.


The expanding trove of DNA in official hands has alarmed privacy campaigners, and some scientists. Recent leaks about U.S. surveillance programs by former NSA systems analyst Edward Snowden have made people realize their online information and electronic communications may not be as secure as they thought. Could the same be true of the information we hold within our genes? DNA samples that can help solve robberies and murders could also, in theory, be used to track down our relatives, scan us for susceptibility to disease, or monitor our movements.


Earlier this year Yaniv Erlich, who runs a lab at MIT’s Whitehead Institute for Biomedical Research, published a paper in the journal Science describing how he was able to identify individuals, and their families, from anonymous DNA data in a research project. All it took was a computer algorithm, a genetic genealogy website and searches of publicly available Internet records.


“It was a very weird feeling — a ‘wow’ feeling,” Erlich told The Associated Press. “I had to take a walk outside just to think about this process.”


Erlich says DNA databases have enormous positive power, both for fighting crime and in scientific research. But, he said, “our work shows there are privacy limitations.”


Ethical qualms have done little to stop the growth of genetic databases around the world.


The international police agency Interpol listed 54 nations with national police DNA databases in 2009, including Australia, Canada, France, Germany and China. Brazil and India have since announced plans to join the club, and the United Arab Emirates intends to build the world’s first database of an entire national population.


The biggest database is in the United States — the FBI’s Combined DNA Index System, or CODIS, which holds information on more than 11 million people suspected of or convicted of crimes.


It is set to grow following a May Supreme Court ruling that upheld the right of police forces to take DNA swabs without a warrant from people who are arrested, not just those who are convicted. (Policies on DNA collection vary by state; more than half of the states and the federal government currently take DNA swabs after arrests.)


The court’s justices were divided about implications for individuals’ rights. Justice Anthony Kennedy, for the five-judge majority, called the taking of DNA a legitimate and reasonable police booking procedure akin to fingerprinting.


But dissenting Justice Antonin Scalia argued that it marked a major change in police powers. “Because of today’s decision, your DNA can be taken and entered into a national database if you are ever arrested, rightly or wrongly, and for whatever reason,” he said.


A similar note of caution has been struck by Alec Jeffreys, the British geneticist whose 1984 discovery of DNA fingerprinting revolutionized criminal investigations. He has warned that “mission creep” could see authorities use DNA to accumulate information on people’s racial origins, medical history and psychological profile.


Erlich agreed that scenario was possible, if not likely.


“If it’s not regulated and the police can do whatever they want … they can use your DNA to infer things about your health, your ancestry, whether your kids are your kids,” he said.


Police forces have already tracked down criminals through the DNA of their innocent relatives, a practice that is both a goldmine for investigators and, according to skeptics, an ethical minefield. Charles Tumosa, a clinical assistant professor in forensic studies at the University of Baltimore who is wary of the potential for genetic surveillance, says relatives of suspects could be identified through DNA and leaned on for information about their family members.


And yet familial DNA searches have helped solve terrible crimes. In Britain, a sex attacker known as the “shoe rapist” was caught after 20 years through DNA from his sister, who was in the database due to a drunken-driving arrest. In Kansas in 2005, police identified Dennis Rader as a serial killer known as “BTK” through his daughter’s DNA obtained, without her knowledge, from a pap smear in her medical records.


“There’s got to be a debate,” said Tumosa. “Nobody has talked this out.


“At what point do you say, enough is enough? Do we want to have a society where 5 percent of the crime is unsolved, or do we want to have a society where 100 percent of the crime is solved” but privacy is compromised. “What’s the trade-off?”


Both supporters and critics of DNA databases point to Britain, where until recently, police could take the DNA of anyone 10 or older arrested for even the most minor offense — and keep it forever, even if the suspect was later acquitted or released without charge.


Police say the database has helped solve thousands of crimes, including murders and rapes. On the other side of the coin are hundreds of thousands of innocent people, including children, who feel shamed and tainted by inclusion on a database of criminal suspects — a status some legal experts say undermines the presumption of innocence.


“A lot of British people were very shocked to find themselves or their children ending up on the database for minor alleged offenses such as throwing a snowball at a car,” said Helen Wallace, director of the privacy group GeneWatch, which campaigns for restrictions on collection of DNA and other personal information.


After a long legal battle — waged in part by a youth who was arrested at 11 on suspicion of attempted robbery and had his DNA retained despite being acquitted — the European Court of Human Rights ruled in 2008 that Britain’s “blanket and indiscriminate” storage of DNA violated the right to a private life.


The U.K. was forced to trim its huge database. Under a law passed last year known as the Protection of Freedoms Act, the government is destroying the DNA profiles — strings of numbers derived from DNA samples that are used to identify individuals — of a million people who were arrested for minor offenses but not convicted. People acquitted of serious crimes have their DNA profiles kept for up to five years.


Britain also has incinerated more than 6 million physical DNA samples — mostly swabs of saliva — taken from suspects. Samples, which could previously be kept indefinitely, must now be destroyed after six months.


Destroying the samples is seen as key to limiting DNA databases to crime-fighting rather than snooping, because it means stored DNA cannot be used to trace relatives or susceptibility to disease.


The U.K. government says the curbs have restored a sense of proportion to Britain’s database, but some aspects of the country’s genetic monitoring remain murky.


The U.K. DNA ethics watchdog has expressed concerns about a secret counterterrorism database, which, according to the Metropolitan Police Authority, contains “DNA obtained through searches, crime scenes and arrests in relation to counterterrorism” — including samples from people stopped and questioned at ports and borders, even if they are not arrested.


The Home Office, which oversees police and the DNA database, said there was a “robust regulatory framework” for the counterterrorism database. But it would not disclose how large it is, who has access to it or whether the information is shared with other countries.


Some authorities on DNA say fears of genetic intrusion are misplaced.


Chris Asplen, a former assistant U.S. attorney who now heads the Global Alliance for Rapid DNA Testing, argues that DNA is not dramatically different from other information the authorities already hold about millions of people, such as fingerprints, social security numbers or automobile registrations.


But he does see avenues for abuse.


“There is an argument to be made that because that biological sample exists, the government could go back and do other things with it that are not authorized by the law,” he said. “It’s a constant tension between government and people, particularly when technology is applied.”


___


Jill Lawless can be reached at http://Twitter.com/JillLawless


Associated Press




Top Headlines



Spread of DNA databases sparks ethical concerns

Spread of DNA databases sparks ethical concerns



LONDON (AP) — You can ditch your computer and leave your cellphone at home, but you can’t escape your DNA.


It belongs uniquely to you — and, increasingly, to the authorities.


Countries around the world are collecting genetic material from millions of citizens in the name of fighting crime and terrorism — and, according to critics, heading into uncharted ethical terrain.


Leaders include the United States — where the Supreme Court recently backed the collection of DNA swabs from suspects on arrest — and Britain, where police held samples of almost 7 million people, more than 10 percent of the population, until a court-ordered about-face saw the incineration of a chunk of the database.


The expanding trove of DNA in official hands has alarmed privacy campaigners, and some scientists. Recent leaks about U.S. surveillance programs by former NSA systems analyst Edward Snowden have made people realize their online information and electronic communications may not be as secure as they thought. Could the same be true of the information we hold within our genes? DNA samples that can help solve robberies and murders could also, in theory, be used to track down our relatives, scan us for susceptibility to disease, or monitor our movements.


Earlier this year Yaniv Erlich, who runs a lab at MIT’s Whitehead Institute for Biomedical Research, published a paper in the journal Science describing how he was able to identify individuals, and their families, from anonymous DNA data in a research project. All it took was a computer algorithm, a genetic genealogy website and searches of publicly available Internet records.


“It was a very weird feeling — a ‘wow’ feeling,” Erlich told The Associated Press. “I had to take a walk outside just to think about this process.”


Erlich says DNA databases have enormous positive power, both for fighting crime and in scientific research. But, he said, “our work shows there are privacy limitations.”


Ethical qualms have done little to stop the growth of genetic databases around the world.


The international police agency Interpol listed 54 nations with national police DNA databases in 2009, including Australia, Canada, France, Germany and China. Brazil and India have since announced plans to join the club, and the United Arab Emirates intends to build the world’s first database of an entire national population.


The biggest database is in the United States — the FBI’s Combined DNA Index System, or CODIS, which holds information on more than 11 million people suspected of or convicted of crimes.


It is set to grow following a May Supreme Court ruling that upheld the right of police forces to take DNA swabs without a warrant from people who are arrested, not just those who are convicted. (Policies on DNA collection vary by state; more than half of the states and the federal government currently take DNA swabs after arrests.)


The court’s justices were divided about implications for individuals’ rights. Justice Anthony Kennedy, for the five-judge majority, called the taking of DNA a legitimate and reasonable police booking procedure akin to fingerprinting.


But dissenting Justice Antonin Scalia argued that it marked a major change in police powers. “Because of today’s decision, your DNA can be taken and entered into a national database if you are ever arrested, rightly or wrongly, and for whatever reason,” he said.


A similar note of caution has been struck by Alec Jeffreys, the British geneticist whose 1984 discovery of DNA fingerprinting revolutionized criminal investigations. He has warned that “mission creep” could see authorities use DNA to accumulate information on people’s racial origins, medical history and psychological profile.


Erlich agreed that scenario was possible, if not likely.


“If it’s not regulated and the police can do whatever they want … they can use your DNA to infer things about your health, your ancestry, whether your kids are your kids,” he said.


Police forces have already tracked down criminals through the DNA of their innocent relatives, a practice that is both a goldmine for investigators and, according to skeptics, an ethical minefield. Charles Tumosa, a clinical assistant professor in forensic studies at the University of Baltimore who is wary of the potential for genetic surveillance, says relatives of suspects could be identified through DNA and leaned on for information about their family members.


And yet familial DNA searches have helped solve terrible crimes. In Britain, a sex attacker known as the “shoe rapist” was caught after 20 years through DNA from his sister, who was in the database due to a drunken-driving arrest. In Kansas in 2005, police identified Dennis Rader as a serial killer known as “BTK” through his daughter’s DNA obtained, without her knowledge, from a pap smear in her medical records.


“There’s got to be a debate,” said Tumosa. “Nobody has talked this out.


“At what point do you say, enough is enough? Do we want to have a society where 5 percent of the crime is unsolved, or do we want to have a society where 100 percent of the crime is solved” but privacy is compromised. “What’s the trade-off?”


Both supporters and critics of DNA databases point to Britain, where until recently, police could take the DNA of anyone 10 or older arrested for even the most minor offense — and keep it forever, even if the suspect was later acquitted or released without charge.


Police say the database has helped solve thousands of crimes, including murders and rapes. On the other side of the coin are hundreds of thousands of innocent people, including children, who feel shamed and tainted by inclusion on a database of criminal suspects — a status some legal experts say undermines the presumption of innocence.


“A lot of British people were very shocked to find themselves or their children ending up on the database for minor alleged offenses such as throwing a snowball at a car,” said Helen Wallace, director of the privacy group GeneWatch, which campaigns for restrictions on collection of DNA and other personal information.


After a long legal battle — waged in part by a youth who was arrested at 11 on suspicion of attempted robbery and had his DNA retained despite being acquitted — the European Court of Human Rights ruled in 2008 that Britain’s “blanket and indiscriminate” storage of DNA violated the right to a private life.


The U.K. was forced to trim its huge database. Under a law passed last year known as the Protection of Freedoms Act, the government is destroying the DNA profiles — strings of numbers derived from DNA samples that are used to identify individuals — of a million people who were arrested for minor offenses but not convicted. People acquitted of serious crimes have their DNA profiles kept for up to five years.


Britain also has incinerated more than 6 million physical DNA samples — mostly swabs of saliva — taken from suspects. Samples, which could previously be kept indefinitely, must now be destroyed after six months.


Destroying the samples is seen as key to limiting DNA databases to crime-fighting rather than snooping, because it means stored DNA cannot be used to trace relatives or susceptibility to disease.


The U.K. government says the curbs have restored a sense of proportion to Britain’s database, but some aspects of the country’s genetic monitoring remain murky.


The U.K. DNA ethics watchdog has expressed concerns about a secret counterterrorism database, which, according to the Metropolitan Police Authority, contains “DNA obtained through searches, crime scenes and arrests in relation to counterterrorism” — including samples from people stopped and questioned at ports and borders, even if they are not arrested.


The Home Office, which oversees police and the DNA database, said there was a “robust regulatory framework” for the counterterrorism database. But it would not disclose how large it is, who has access to it or whether the information is shared with other countries.


Some authorities on DNA say fears of genetic intrusion are misplaced.


Chris Asplen, a former assistant U.S. attorney who now heads the Global Alliance for Rapid DNA Testing, argues that DNA is not dramatically different from other information the authorities already hold about millions of people, such as fingerprints, social security numbers or automobile registrations.


But he does see avenues for abuse.


“There is an argument to be made that because that biological sample exists, the government could go back and do other things with it that are not authorized by the law,” he said. “It’s a constant tension between government and people, particularly when technology is applied.”


___


Jill Lawless can be reached at http://Twitter.com/JillLawless


Associated Press




Top Headlines



Spread of DNA databases sparks ethical concerns

Monday, June 10, 2013

Fear of Missing Out Sparks Covenant Light Lending; "Return of the Silly Season"

With the Fed forcing interest rates low, commercial and industrial lending has picked up. That may sound like a good thing, but is it?


I suggest it’s not. Competition is such that “covenant light” lending has returned in full force. “Cov-lite is financial jargon for loan agreements which do not contain the usual protective covenants for the benefit of the lending party.


Flood of Cheap Money Sparks Covenant Light Lending


Please consider Covenant-light lending making its presence felt again

Competition is feral at the institutional end of the banking industry, where quantitative easing is creating a flood of cheap money, and in the big banks a recent development has everyone talking: covenant-light lending appears to be making a comeback.

Covenant-light loans were a phenomenon of the boom that ushered in the global financial crisis. Bankers who say covenant-light lending is on the rise again say loans that are being proposed now are not as radical as the ones created ahead of the crisis, but say they are watching closely.


Covenants are designed to protect lenders from corporate implosions. They impose financial limits on the borrower, maximum gearing levels, for example, and if they are breached, the lenders can take steps to protect their position.


Bankers say now that US banks and investment banks are leading the revival of covenant-light lending. They are surprised it has returned so quickly, but acknowledge that quantitative easing has created enormous pressure.


Their best guess is that covenant-light lending is back to where it was around the middle of 2006, before the final, frenetic stage of the boom. It is lighter-covenant rather than covenant-free lending, and it is only being offered to top-rated corporations where survival and debt servicing capacity is not in question.


The local bankers wonder, nevertheless, whether the return of covenant-light lending is a sign of QE seeding another unsustainable debt boom, but they still need to work out how to respond: if the trend continues and they don’t join it, their share of the institutional lending market will fall.


J.C. Penney Loan Arranged by Goldman Sachs Is Covenant-Light


On April 29, Bloomberg reported J.C. Penney Loan Arranged by Goldman Sachs to Be Covenant-Light

J.C. Penney Co. (JCP), the retailer that’s working to rebound from its worst sales year, will offer fewer safeguards to lenders on its $ 1.75 billion financing.

The five-year covenant-light deal, which is being arranged by Goldman Sachs Group Inc., won’t include financial maintenance requirements that typically prevent borrowers from loading up on debt, according to a regulatory filing today.


Surge in Commercial lending Raises Bubble Worries


Yahoo! Finance reports Surge in commercial lending raises bubble worries.

There was a time when robust growth in U.S. commercial loans was seen as a good sign for the economy, but this year a double-digit surge is being seen as a red flag.

U.S. banks reported $ 1.53 trillion in commercial and industrial loans in the first quarter, a 12 percent year-over-year gain.


Bankers and analysts say this big gain in C&I lending looks more like an early asset bubble than an economic breakout. The banks reported double-digit gains in 2011 and 2012, too.


Mid-size companies and publicly traded corporations are not using the loans to grease the skids of the economy for expansion. Instead, they’re mostly getting cheaper credit lines or refinancing the replacement of obsolete factory equipment by dictating easy terms to banks clamoring for their business.


“With so much liquidity, banks feel a lot of pressure to make loans,” said Mariner Kemper, chairman of UMB Financial Corp, a Kansas City, Missouri-based bank with $ 3.2 billion in outstanding C&I loans.


“There’s deterioration in covenant terms and pricing and that’s potentially the kind of behavior that drives a crisis.”


Douglas Bryant, a senior lender for Wells Fargo in New England, calls the C&I lending shift the “return of the silly season.”


“Any well-known company with a credit need is called on by a half a dozen or so banks,” Bryant said. “These companies are offering very aggressive term sheets on price and loan covenants.”


Bryant said banks today are lucky to get one or two strong covenants on a loan. Covenants allow banks to restructure loans if a company fails to meet projections on leverage, cash flow and debt service, for example. But with more leeway on those financial metrics, a company can get deeper into trouble before it breaks a covenant, exposing banks to greater losses.


“A company can deteriorate a significant amount before you get back to the table to restructure the loan,” Bryant said. “We used to get as many as five strong covenants.”


Return of the Silly Season


The Fed wants corporations to hire workers and expand their businesses. Instead, the Fed has ushered in “silly season” lending competition that is good for corporate profits, but bad for banks should some of these companies get into trouble.


And with a slowing global economy it’s a sure thing that yet another credit bubble is brewing.


Fear of Missing Out


Banks fear “If the trend continues and they don’t join it, their share of the institutional lending market will fall“.


This sounds similar to a statement by former Citigroup CEO Chuck Prince: “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing“.


Prince made that statement on July 10, 2007. Recall that on November 2, 2007 the Music Stopped for Chuck Prince and he did a two-step out the door.


It’s hard to say when the music stops this time, but it will, with similar results.


Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com


Mish’s Global Economic Trend Analysis



Fear of Missing Out Sparks Covenant Light Lending; "Return of the Silly Season"

Fear of Missing Out Sparks Covenant Light Lending; "Return of the Silly Season"

With the Fed forcing interest rates low, commercial and industrial lending has picked up. That may sound like a good thing, but is it?


I suggest it’s not. Competition is such that “covenant light” lending has returned in full force. “Cov-lite is financial jargon for loan agreements which do not contain the usual protective covenants for the benefit of the lending party.


Flood of Cheap Money Sparks Covenant Light Lending


Please consider Covenant-light lending making its presence felt again

Competition is feral at the institutional end of the banking industry, where quantitative easing is creating a flood of cheap money, and in the big banks a recent development has everyone talking: covenant-light lending appears to be making a comeback.

Covenant-light loans were a phenomenon of the boom that ushered in the global financial crisis. Bankers who say covenant-light lending is on the rise again say loans that are being proposed now are not as radical as the ones created ahead of the crisis, but say they are watching closely.


Covenants are designed to protect lenders from corporate implosions. They impose financial limits on the borrower, maximum gearing levels, for example, and if they are breached, the lenders can take steps to protect their position.


Bankers say now that US banks and investment banks are leading the revival of covenant-light lending. They are surprised it has returned so quickly, but acknowledge that quantitative easing has created enormous pressure.


Their best guess is that covenant-light lending is back to where it was around the middle of 2006, before the final, frenetic stage of the boom. It is lighter-covenant rather than covenant-free lending, and it is only being offered to top-rated corporations where survival and debt servicing capacity is not in question.


The local bankers wonder, nevertheless, whether the return of covenant-light lending is a sign of QE seeding another unsustainable debt boom, but they still need to work out how to respond: if the trend continues and they don’t join it, their share of the institutional lending market will fall.


J.C. Penney Loan Arranged by Goldman Sachs Is Covenant-Light


On April 29, Bloomberg reported J.C. Penney Loan Arranged by Goldman Sachs to Be Covenant-Light

J.C. Penney Co. (JCP), the retailer that’s working to rebound from its worst sales year, will offer fewer safeguards to lenders on its $ 1.75 billion financing.

The five-year covenant-light deal, which is being arranged by Goldman Sachs Group Inc., won’t include financial maintenance requirements that typically prevent borrowers from loading up on debt, according to a regulatory filing today.


Surge in Commercial lending Raises Bubble Worries


Yahoo! Finance reports Surge in commercial lending raises bubble worries.

There was a time when robust growth in U.S. commercial loans was seen as a good sign for the economy, but this year a double-digit surge is being seen as a red flag.

U.S. banks reported $ 1.53 trillion in commercial and industrial loans in the first quarter, a 12 percent year-over-year gain.


Bankers and analysts say this big gain in C&I lending looks more like an early asset bubble than an economic breakout. The banks reported double-digit gains in 2011 and 2012, too.


Mid-size companies and publicly traded corporations are not using the loans to grease the skids of the economy for expansion. Instead, they’re mostly getting cheaper credit lines or refinancing the replacement of obsolete factory equipment by dictating easy terms to banks clamoring for their business.


“With so much liquidity, banks feel a lot of pressure to make loans,” said Mariner Kemper, chairman of UMB Financial Corp, a Kansas City, Missouri-based bank with $ 3.2 billion in outstanding C&I loans.


“There’s deterioration in covenant terms and pricing and that’s potentially the kind of behavior that drives a crisis.”


Douglas Bryant, a senior lender for Wells Fargo in New England, calls the C&I lending shift the “return of the silly season.”


“Any well-known company with a credit need is called on by a half a dozen or so banks,” Bryant said. “These companies are offering very aggressive term sheets on price and loan covenants.”


Bryant said banks today are lucky to get one or two strong covenants on a loan. Covenants allow banks to restructure loans if a company fails to meet projections on leverage, cash flow and debt service, for example. But with more leeway on those financial metrics, a company can get deeper into trouble before it breaks a covenant, exposing banks to greater losses.


“A company can deteriorate a significant amount before you get back to the table to restructure the loan,” Bryant said. “We used to get as many as five strong covenants.”


Return of the Silly Season


The Fed wants corporations to hire workers and expand their businesses. Instead, the Fed has ushered in “silly season” lending competition that is good for corporate profits, but bad for banks should some of these companies get into trouble.


And with a slowing global economy it’s a sure thing that yet another credit bubble is brewing.


Fear of Missing Out


Banks fear “If the trend continues and they don’t join it, their share of the institutional lending market will fall“.


This sounds similar to a statement by former Citigroup CEO Chuck Prince: “When the music stops, in terms of liquidity, things will be complicated. But as long as the music is playing, you’ve got to get up and dance. We’re still dancing“.


Prince made that statement on July 10, 2007. Recall that on November 2, 2007 the Music Stopped for Chuck Prince and he did a two-step out the door.


It’s hard to say when the music stops this time, but it will, with similar results.


Mike “Mish” Shedlock
http://globaleconomicanalysis.blogspot.com


Mish’s Global Economic Trend Analysis



Fear of Missing Out Sparks Covenant Light Lending; "Return of the Silly Season"