| Financial services watchdogs take flak from MPs
Members of Parliaments Finance Committee say industry regulators are failing to do their duty after hearing from the Ombudsman for Financial Services Providers Charles Pillai about the massive fraud perpetuated by the directors of the Leaderguard group of companies.
A report in Business Report says Leaderguard Securities went into liquidation after losing more than R300m of investors money in fraudulent foreign currency transactions. According to Pillai, three directors of the company pleaded guilty to fraud charges in Mauritius and each paid a fine of 400 000 Mauritian rupees (R91 000). No action has been taken against them in SA. They are all still walking around, having a wonderful life. It looks like crime pays in SA, Eugene Oakes, an internal advisor with the ombudsmans office, told MPs.
China To Form Company to Invest Foreign Currency Reserves
China's government will create an investment firm to start investing its over one trillion dollars worth of foreign currency reserves, most of them U.S. treasury securities and other U.S. dollar denominated papers.Currently the Chinese government is making about 3% on its holdings of foreign reserves, but may be able to get almost 20% by higher risk investing in companies, gold, real estate, energy and banks. This move could raise U.S. interest rates, and it is unknown how much foreign securities they actually hold or how much they might invest. .
Dollar Drops This Week as US Applies New Tariffs to China
March 31 (Bloomberg) -- The dollar dropped against the euro and the yen this week after the U.S. added tariffs on imports from China, fueling concern the levies will reduce trade flow with the world's biggest holder of foreign reserves. The U.S. currency also fell against the yen on speculation mounting tension in the Mideast will lead investors to reduce holdings in riskier assets financed by loans in Japan. The tariff and Mideast concern yesterday offset U.S. reports showing signs of a stronger economy and accelerating inflation. ``The whiff of protectionism killed off the bullish sentiment on the dollar,'' said Shaun Osborne, chief currency strategist in Toronto at TD Securities Inc. The dollar fell to $1.3356 per euro, down 0.55 percent from March 23.
India Forex Reserves $199.179B; Up $1.433B In Wk To March 30
MUMBAI (Dow Jones)--India's foreign exchange reserves rose $1.433 billion in the week ended March 30, central bank data showed Friday. The Reserve Bank of India's weekly statistical supplement showed reserves rose due to a $1.532 billion increase in the bank's foreign currency assets, but gold reserves fell $99 million during the week. Reserves have risen $47.557 billion during the past 12 months and, at $199.179 billion, now well exceed the country's gross external debt, which totaled $142.7 billion at the end of December 2006. The government is now considering using part of the foreign exchange reserves to fund long-term infrastructure projects. India will need investment of $320 billion during the next five years to improve the quality of the country's infrastructure to match global standards, according to government estimates.
Citigroup, HSBC, other foreign banks mark entry into Chinese market
Four global banks, including Citigroup Inc. and HSBC Holdings Plc., kicked off domestically incorporated Chinese units on Monday, becoming the first foreign banks able to tap China's $2 trillion in personal savings
ELAINE KURTENBACH
SHANGHAI, China - The Associated Press
Citigroup, HSBC and other foreign banks marked their local incorporation in China on Monday, a rite of passage after years of biding their time on the sidelines of one of the world's fastest growing financial markets. Citigroup Inc. and Britain's HSBC Holdings PLC were among four foreign banks approved to incorporate local subsidiaries, a step toward entering the local retail banking market. Until recently, most banks could handle only limited local currency business and international banking.
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