Foreign banks brace for India regulatory shake-up that will force them to set up separately capitalised local subsidiaries

Last updated: August 12, 2013 5:48 pm

Foreign banks brace for India regulatory shake-up

By James Crabtree in Mumbai

Standard CharteredCitigroup and HSBC – the three largest foreign banks operating in India – are bracing themselves for a regulatory shake-up in the country that will, in effect, force them to set up separately capitalised local subsidiaries. The Reserve Bank of India’s new policy on overseas banks is “imminent”, and will potentially be unveiled as soon as this week, according to people familiar with the situation. Foreign banks control about 5 per cent of the assets in India’s banking sector, but face numerous regulatory restrictions, including strict limits on the number of branches they are permitted to open. Read more of this post

Made outside India: As growth slows and reforms falter, economic activity is shifting out of India

Made outside India: As growth slows and reforms falter, economic activity is shifting out of India

Aug 10th 2013 | COLOMBO, DUBAI AND MUMBAI |From the print edition

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INDIA’S diaspora of 25m people is something to behold. In colonial times Indian labourers and traders spread across the world, from Fiji to the Caribbean. A second wave of Indians left between the 1970s and mid-1990s, when the economy was in a semi-socialist rut. Migrant workers rushed to the Persian Gulf and South-East Asia, then booming. Educated folk and entrepreneurs fled to the rich world. Plenty struck gold, including engineers in Silicon Valley and Lakshmi Mittal, boss of ArcelorMittal, a giant steel firm. Often they now have little to do with India beyond sending cash to relatives and groaning as the once-vaunted economic miracle fades. Read more of this post

When ETFs are mousetraps

Aug. 12, 2013, 7:39 a.m. EDT

When ETFs are mousetraps

Commentary: How to avoid falling for the bait

By Chuck Jaffe, MarketWatch

In some respects, mutual fund companies are in the mousetrap business.

The question for investors is whether they are the rodent, getting snapped up by the contraptions that financial inventors are creating. That dichotomy was on full display Thursday when Charles Schwab (NYSE:SCHW)  Investment Management put out the cheese for its latest investment products, six new Schwab Fundamental Index ETFs that begin trading next week. There is no denying that the new products are cool and appealing, with the potential to prove themselves as “better.” It makes perfect sense that financial planners and money managers—Schwab officials said they had gotten a lot of requests from advisers for these new products—would be interested; it isn’t so clear, however, that the average fund/ETF investor should give a mouse’s whisker over the new products. Read more of this post

China’s longevity town overrun by the sick and rich

China’s longevity town overrun by the sick and rich

Staff Reporter

2013-08-13

Tens of thousands of patients, a quarter alone coming from Yangtze River Delta and especially the city of Shanghai, have flooded the “town of longevity” in Guangxi to seek a cure for their ailments. The secret of Bama, ranking fifth on a list of the world’s cities with the longest-living residents, is said to be in its clean spring water and fresh air high in negative oxygen ions, the Shanghai-based Jiefang Daily reports. Read more of this post

Connecticut Man Is The Warren Buffett Of Bass Fish. Myerson reached the pinnacle by methodically studying his prey and developing devices to lure the fish to him and, perhaps, change how people fish. “That’s what all these great catches are attributed to, knowledge of the fish. You gotta think like them.”

Connecticut Man Is The Warren Buffett Of Bass

JOHN CHRISTOFFERSENASSOCIATED PRESS AUG. 12, 2013, 12:24 PM 3,045 4

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NORTH BRANFORD, Conn. (AP) — When Greg Myerson heads out in his boat, some fishermen will follow him. The famous want to fish with him. He’s the Warren Buffett of the fishing world, giving seminars in which he’ll tell some but not all his secrets. The Connecticut man has achieved a rare feat: He consistently catches striped bass 50 pounds and much larger. Myerson set the world record two years ago by catching a striped bass that weighed 81.8 pounds off the Connecticut coast. Last year he set the striped bass length record of about 44 inches. Just last month he caught a 73-pound bass. “I’m just going to go ahead and say it: Greg Myerson is the greatest living striper fisherman,” declared Rick Bach in an account last month in The Fish Report. Chris Megan, owner of On the Water magazine, said he doesn’t know anyone who’s caught so many large striped bass.

Myerson reached the pinnacle by methodically studying his prey and developing devices to lure the fish to him and, perhaps, change how people fish. “I’ve gotten it down to a science,” Myerson said. “That’s what all these great catches are attributed to, knowledge of the fish. You gotta think like them.” Read more of this post

New Rules Expected for Annual Audit Reports requiring auditors to tell investors more about what they find in companies’ books

Updated August 12, 2013, 9:03 p.m. ET

New Rules Expected for Annual Audit Reports

MICHAEL RAPOPORT

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The annual audit report is about to get an extreme makeover. After seven decades in which the auditor’s letter hasn’t changed much, U.S. regulators on Tuesday are expected to propose major new rules requiring auditors to tell investors more about what they find in companies’ books. The Public Company Accounting Oversight Board, the government’s audit-industry regulator, is pushing the accounting industry to disclose more about its views on a company, which some say will make the document attached to each public company’s annual report more useful, albeit a little longer. While the PCAOB hasn’t said specifically what it will propose, having auditors provide their opinions on broader matters appears likely to be the crux of it. Regulators and industry critics say investors need more information from auditors about matters such as whether a company’s accounting is aggressive, and what auditors think are the most important features of a company’s finances. Many investors rely on the audit report to help assure them a company’s numbers are accurate. But some critics have become concerned that the letters’ boilerplate, pass-fail format doesn’t tell investors much about what is actually happening at a company or where problems may lie. “It’s been 70 years since there has been a fundamental change to the information the public receives about the audit,” PCAOB Chairman James Doty said. A revamped audit report will be “a significant step” in the effort to “provide more useful reporting to the public,” he said. Read more of this post

China Metal Recycling chairman Jacky Chun Chi-wai was held by police yesterday for alleged false accounting; China’s “Lady Buffett” Liu Yang and Norway’s central bank are all shareholders of China Metal Recycling

Metal firm chief held on fraud rap
Grace Cao
Tuesday, August 13, 2013

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China Metal Recycling (0773) chairman Jacky Chun Chi-wai was held by police yesterday for alleged false accounting, sources said. Police said that a 47-year-old man surnamed Chun was arrested yesterday afternoon for false accounting and had been detained for further inquiries. Sources confirmed that the person cited was Jacky Chun. Chun is the the fourth senior executive of China Metal Recycling to be taken in by police. Chun’s wife Lai Wun-yin and Leung Chong-shun, both non-executive directors, plus chief financial officer and company secretary Kenneth Greg Lam Po-kei were arrested earlier by the Commercial Crime Bureau. Last July 29, the Securities and Futures Commission moved to liquidate the firm for overstating its financial position . China Metal Recycling has sued Chun, his wife and 10 metal recycling firms for fraudulent breach of trust and causing the firm huge losses. The firm is also seeking payment of debts, losses and damages or other relief relating to false or misleading information on the firm’s financial position, the deployment of a scheme with the intention to deceive, dividends paid out on inflated profits, and purported sales and payments for fictitious transactions. It was reported that the firm took out a huge loan and land, along with warehouse receipts, were used as fake collateral. The Guangzhou-based firm’s shares have been suspended since January 28 after US shortseller Glaucus Research made allegations against it. Atlantis Investment Management chairwoman Liu Yang, Norway’s central bank and state-owned enterprise China Energy Conservation and Environmental Protection Group are all shareholders of China Metal Recycling. Read more of this post

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