Saturday, August 04, 2012

US and CHINA BAD NEWS CROPPING....


Drought may cost billions in U.S. food exports

 @CNNMoney August 2, 2012: 11:48 AM ET
NEW YORK (CNNMoney) -- The drought baking Midwest corn and soybean crops will likely cost the U.S. food export industry billions in lost revenue.
But unlike droughts in previous years, it should not cause a major disruption in worldwide food supplies.
Crops from other nations can mostly cover the loss, although some people who have recently grown accustomed to eating more meat, especially in developing nations, may have to cut back on it.
The United States accounts for over half the global export market for corn and nearly half of the soybean market. Some corn ends up in products like cereal and soda, but the biggest chunk is used as feedstock for pork, chicken and beef.
All told, U.S. agricultural products account for roughly 10% of the country's $1.5 trillion export market, according to the Census Bureau.
Exports of corn, soybean and meat products -- the items most at risk from the drought -- totaled $53 billion in 2011.
The drought this year "will definitely hurt the quantity of exports," said David Hightower, president of the agricultural futures newsletter The Hightower Report.

COLOURS OF - FACEBOOK- A FACT TO DIGEST!!!!


Dalton Caldwell told Facebook he's not interested in being 'acqui-hired' -- a process the company uses to buy startups for their staff and kill off their products.
NEW YORK (CNNMoney) -- Editor's note: An earlier version of this story only featured the opinions of Dalton Caldwell. This story has resonated with many in the tech community, but only including Caldwell's commentary does not meet our editorial standards. We've refocused our reporting on the stir that Caldwell's blog post has caused in Silicon Valley and have included the fact that Facebook declines comment.

'Dear Mark Zuckerberg' letter stirs up tech world

 @CNNMoneyTech August 2, 2012: 5:50 PM ET(Dalton Caldwell told Facebook he's not interested in being 'acqui-hired' -- a process the company uses to buy startups for their staff and kill off their products).
A developer who says Facebook tried to buy his startup kicked off a Silicon Valley firestorm this week with a blog post describing the coercive tactics he says Facebook used to pressure a would-be rival.
"Dear Mark Zuckerberg," began the letter App.net founder Dalton Caldwell posted late Wednesday in his blog. "On June 13, 2012, at 4:30 p.m., I attended a meeting at Facebook HQ in Menlo Park, California."
Caldwell went into that meeting expecting to demo a new app he was building on Facebook's platform, which encourages outside developers to tap into Facebook's infrastructure. That's not how things went down, he says.
"The meeting took an odd turn when the individuals in the room explained that the product I was building was competitive with your recently-announced Facebook App Center product," Caldwell wrote in his blog. "Your executives explained to me that they would hate to have to compete with the 'interesting product' I had built, and that since I am a 'nice guy with a good reputation' that they wanted to acquire my company to help build App Center."
Facebook (FB) has a tradition of buying promising startups for their staff -- then killing off the actual products. Its recent portfolio of "acqui-hires," as the practice is called, includes check-in service Gowalla, publishing company Push Pop Press, mobile bookmarking service Spool and mobile app maker Acrylic Software.
Caldwell's complaint is that he thinks Facebook is using its power to push startups into selling with an implicit threat: Sell to us or we'll crush you.
"The execs in the room made clear that the success of my product would be an impediment to your ad revenue financial goals, and thus even offering me the chance to be acquired was a noble and kind move on their part," he wrote in his blog.
Contacted by CNNMoney for a response, Facebook declined to comment on Caldwell's allegations.
Caldwell is a serial entrepreneur who knows something about having your startup acquired and killed off. His first venture, social music sharing service imeem, was acquired by MySpace in late 2009. MySpace shut the service down almost immediately after.
Caldwell's blog post -- part open letter, part manifesto -- quickly went viral in the tech community, sparking dozens of news stories and long discussion threads on sites like Hacker News.
Vic Gundotra, Google's senior vice president of engineering, posted a link to it on his Google+ profile page and offered his own response. He wrote that Caldwell's letter spotlighted some of the reasons Google (GOOGFortune 500) hasn't opened its own social platform yet to outside developers.
"I'm not interested in screwing over developers," Gundotra wrote.
One Silicon Valley power player even got caught in the middle. A spokesperson for venture capitalist Marc Andreessen, whose company is an investor in both Facebook and Caldwell's Mixed Media Labs (the firm behind App.net), confirmed that he is resigning his board seat on Caldwell's company to avoid a conflict of interest.
The spokesperson added that Andreessen is keeping his spot on Facebook's board. But another executive at his venture firm, Scott Weiss, will take over his board seat at Caldwell's company..
Caldwell says he knew he'd be kicking the hornet's nest by publicly going after Facebook, but says he has no regrets.
"I picked this battle very carefully," he wrote on TwitterTo top of page
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Facebook has no friends: Stock slides below $20

August 2, 2012: 2:52 PM ET
Facebook is not very popular among investors these days. Shares of the social media giant hit a new low of just $19.82 Thursday, nearly 50% below their initial offering price.
The stock has been under pressure since last week, when Facebook (FB) reported its firstearnings as a public company, and failed to relieve investor worries about slowing sales growth and its plan for mobile advertising.
As Facebook's stock continues to bleed, institutional investors are beginning to unload their stakes. Fidelity Investments, which owns both public and private shares of Facebook, sold more than 1.9 million public shares in June across 21 different mutual funds, according to Morningstar data.
Of those 21 funds, 16 dumped more than 25% of their Facebook stakes, including the Fidelity Puritan fund (FPURX), which still owns 1.9 million shares. The Fidelity Disciplined Equity fund (FDEQX) sold almost 50% of its Facebook stock.
Of course, more than a dozen Fidelity funds also added shares of Facebook in June -- about 2.2 million shares combined -- including the Fidelity Contradfund (FCNTX), which boosted its stake by 264,000 shares, or almost 2%.
While Fidelity declined to comment on Facebook specifically, the firm's spokesman Stephen Austin said "portfolio managers make investment decisions every day for what they believe is in the best long-term interests of their funds' shareholders."
Meanwhile, a number of JPMorgan (JPM) mutual funds and a handful of funds managed by Turner Investment Partners sold significant parts of their stake in Facebook in June, according to Morningstar.
Facebook's stint as a public company has been rocky since day one, when a trading glitch at the Nasdaq (NDAQ) turned its public debut into a public fiasco.
Even prior to that botched first impression, investors and analysts alike have been questioning how the company will bring in more revenue from its 955 million users, particularly through its mobile platform which is becoming increasingly popular but lacks a strong advertising strategy.

CELEBRATIONS NOT YET!!!

FE Editorial : The spillover

THE FINANCIAL EXPRESS

Posted: Saturday, Aug 04, 2012 at 2155 hrs IST: Never mind the US jobs data looking better than expected, or Spanish bond yields falling 18 bps to 6.98%, the global crisis is getting worse. US GDP numbers are lower for two quarters running and Spanish 10-year yields were 7.75% last week. The saving grace for India, however, has been the impact hasn’t been as bad as was feared. In the past, the IMF estimated the financial sector impact, especially in times of crisis, is several times the real sector impact—a 1% fall in US GDP, for instance, would lower India’s GDP by 0.05% through normal trade and finance channels for India, but this could rise to 0.8% because of the dramatically increased financial sector impact today. The consequence of the euro crisis, similarly, is best seen in terms of the possible deleveraging of European banks. From $159.1 bn in June 2011, direct claims of European bank on India fell to $146.1 bn in December 2011 as banks started liquidating Indian assets, but these claims then rose to $150.6 in March 2012—while the exposure on non-UK and non-Swiss banks in Europe fell from $ 61.4 bn in June 2011 to $54.3 bn in March 2012, this was more than made up by a rise in Swiss and UK bank exposure.
The problem, however, the just-released IMF 2012 Spillover Report forecasts, is the Euro Area could well see a 5 percentage point fall in GDP over the next two years if Europe’s politicians don’t act in time—contrast this with the IMF’s baseline WEO forecasting, just two weeks ago, that Europe would bounce back from a 0.3% contraction in 2012 to a 0.7% growth in 2013. And in the US, after the Article IV consultations a few weeks ago, the IMF said not tackling the fiscal cliff could take 2013 growth to even a possible 1%. Indeed, given that over 40% of US growth since Q1 2009 has come from exports, this puts another barrier to a faster US recovery, regardless of whether there is a QE3 or not. Also, the larger danger is that the US may have shifted down to a natural rate of growth that’s 0.25-0.5% below what it was in the pre-crisis period—that has large consequences for the future of global growth especially since China is also slowing at the same time.
In this context, the IMF’s Spillover Report asks if the Euro shock has played itself out. Partly yes, but mostly no, is the answer. And the reason why the full impact hasn’t been felt, it argues, is the feeling that Europe’s political bosses will still save the day. If that doesn’t happen, IMF says, and the deleveraging increases, European banks are likely to start selling assets held outside of Europe as well—right now, most of the deleveraging is taking place inside Europe. That India should be in the middle of a fight between the government and the central bank on cutting interest rates when the world’s future is looking so bleak is quite unfortunate.

GOOD NEWS SPREADS ....STEEP RISE IN STOCKS!!!



European Stocks Advance For Ninth Week On U.S. Economy

By Adria Cimino - Aug 4, 2012 4:30 AM GMT+0530

European stocks rose for a ninth week as U.S. economic data surpassed estimates, outweighing comments by the Federal Reserve and the European Central Bank that disappointed investors looking for more definitive steps to support growth.
Bankia SA (BKIA) posted the biggest gain in the Stoxx Europe 600 (SXXP) Index. Vestas (VWS)Wind Systems A/S rallied 11 percent after saying it has renegotiated its credit lines. Air France-KLM (AF) Group, Europe’s biggest airline, jumped 11 percent after reporting a narrower second-quarter loss.
The Stoxx 600 rallied 2.2 percent to 265.58 this week, its longest stretch of gains since January 2006. The benchmark gauge has climbed 13 percent over the nine-week period as policy makers eased repayment terms for Spanish banks and optimism grew that central banks will announce stimulus measures.http://www.bloomberg.com/news/2012-08-03/european-stocks-gain-for-ninth-week-on-u-s-jobs-draghi.html

Jobs Gains Topping Forecasts Ease U.S. Slowdown Concerns


The payrolls increase of 163,000 followed a revised 64,000 gain in June, Labor Department figures showed today inWashington. The median estimate of 89 economists surveyed by Bloomberg called for a gain of 100,000. The jobless rate, based on a separate survey of households, climbed to a five-month high of 8.3 percent.
Stocks rallied, sending the Standard & Poor’s 500 Index to the highest level since May, as the jobs data countered recent reports showing a contraction in manufacturing and slower consumer demand. Faster job growth is needed to push down an unemployment rate that has been stuck above 8 percent since February 2009, one reason why the Federal Reserve this week said it is prepared to take new steps if needed to boost the economy.http://www.bloomberg.com/news/2012-08-03/u-s-july-payrolls-rise-more-than-forecast-unemployment-8-3-.html

World’s Richest Gain $19 Billion As Stocks Surge On Jobs


The day’s biggest gainer was Spanish retail tycoon Amancio Ortega, who added $2.8 billion to his fortune as shares of Inditex SA (ITX), the world’s largest clothing retailer, jumped 5.4 percent. The 76-year-old, Europe’s richest man, is worth $45.1 billion, according to the Bloomberg Billionaires Index.
“Investor sentiment has turned a little bit more positive,” said Kristen Scarpa, a New York-based investment strategist at Barclays Wealth Management, in a telephone interview yesterday. “Job growth is the key to igniting additional consumption, which will drive the U.S economy forward.”
Global stocks slumped earlier in the week after European Central Bank President Mario Draghifailed to articulate the details of a bond-buying plan to ease the euro area crisis. The Federal Reserve Bank’s pledge to provide additional support for the economy further disappointed investors who were anticipating a more definitive sign of additional monetary easing.http://www.blogger.com/blogger.g?blogID=3740406258246223636#editor/target=post;postID=761605679672940307

Thursday, August 02, 2012

PRICE MANIPULATION- CIRCULAR TRADING- HAPPENS....


REITERATE AGAIN, MANY A TIMES MENTIONED, MANIPULATION BY FRAUDULENT OPERATORS FOR MONEY MAKING IN THE STOCK MARKET IS A WAY OF LIFE .... THEY ESCAPE UNSCATHED........BUT MARKET SURVIVES BECAUSE OF IT'S SIZE.....

Sebi slaps Rs 4L fine on 2 brokerages

AGENCIES


Posted: Thursday, Aug 02, 2012 at 1329 hrs IST
Mumbai: Market watchdog Sebi has imposed penalties of Rs 2 lakh each on two brokerage firms for circular trading between them in shares of Videocon Industries Ltd way back in 2004.
The two entities, Mansukh Securities & Finance Ltd (MSFL) and Intec Shares and Stock Brokers Ltd (ISSL) have been found to have violated norms related to synchronised or circular trading, while dealing in shares of Videocon Industries on behalf of their clients.
Circular trading refers to a fraudulent practice where the seller and buyer may have an understanding between them on trading of specific shares.
In separate orders, issued on July 30, Sebi said the penalties of Rs 2 lakh each is commensurate with violations committed by MSFL and ISSL and would also deter prospective violators in the future.
The orders have been passed after Sebi's investigation into trading in Videocon shares in 2004 from January 14 to February 26. During this period, the scrip plunged by over 20 per cent to Rs 28.90 from Rs 36.15 per piece.
As per the Sebi probe, MSFL and ISSL accounted for 71.68 per cent of the gross traded shares of Videocon Industries during that period.
The market regulator said there were 28 trades, over a period of nine days, wherein there was very close matching of order time, price, quantity and "hence these trades prima facie were structured/ synchronised trades".
Further, it was found that in all these structured trades, MSFL and ISSL were their brokers on the seller or buyer sides.
Sebi noted that execution of such trades amounts to fraudulent and unfair trade practice.
These trades created false and misleading appearance of trading in the scrip of Videocon Industries. They were not intended to effect transfer of beneficial ownership but were intended to operate only as a device to cause fluctuations in the price and create artificial volume, it added.
Sebi also pointed out that the scrip of Videocon Industries was illiquid at that time and there was not much trading volume except on days when the two brokers executed their trades.

Wednesday, August 01, 2012

OnMobile Arvind - Story -Irregularities


On November 23, 2010, Arvind Rao, the 53-year-old co-founder and CEO of OnMobile, bought approximately 6 lakh shares of his company from the open market, representing a little over 1 percent of the company’s total shares. Rao already owned over 10 percent of the company’s shares.

At Rs 277 a share, he had to pony up nearly Rs 16.5 crore to acquire them.
He still did it because he felt OnMobile, his baby, was severely undervalued. Since its blockbuster IPO in early 2008, OnMobile shares had climbed to over Rs 700 before falling.

Rao felt it was just an aberration—the market hadn’t realised the value of his baby. The world was at the cusp of the mobile revolution; billions of people around the world had yet to experience phone services beyond voice; and OnMobile was just getting started on its international journey.
Incubated within Infosys in 2000, OnMobile had arguably the best pedigree in the Indian business world. In the parochial world of Indian mobile telephony, its customer list covered almost every operator, attesting to the value of its services. With over 100 million subscribers for its services, including for the once wildly popular ringback tune, it had grown rapidly from just over Rs 2 crore in income in 2002 to over Rs 500 crore by 2010. At 20-plus percent, its profit margins were a source of envy and puzzlement to many, given the razor thin margins prevalent in the mobile value-added services (VAS) industry. Under Rao, OnMobile had gone international, generating nearly a third of its revenue from over 50 other countries.
So he went ahead and borrowed money to buy the shares, thinking nothing of the interest it entailed or the fact that he’d need to put up nearly half his existing shareholding as collateral.

That would turn out to be the worst decision he ever made.
OnMobile’s shares continued to fall from those levels, while Rao’s interest payments ballooned.
Consumed by the downward spiral of his baby and his worsening personal debt situation, his characteristic energy and enthusiasm waned, visible to most of his senior colleagues.
In an attempt to provide a floor to OnMobile’s share price, Rao managed to push through a controversial share buyback plan totalling Rs 25 crore last year, despite serious reservations from other board members.
Motivated by OnMobile’s growth all these years, he had never paid much attention to his salary, most of which went towards the monthly rental on his sea-facing apartment in Mumbai and his BMW 7-Series, both paid directly by the company.
He requested the board for a significant salary increase, arguing (rightly) that his Rs 1 crore salary was substantially below what the market would pay the CEO of a Rs 600-plus crore international company. But they would have none of it.

After that, he requested a personal loan, which too they denied.
Finally, left with no option—at least the way he saw it—Rao took the ‘shortcut’. Just that once.
THE DOMINOES
In November 2011 OnMobile’s finance department received a set of bills from a vendor they hadn’t dealt with before. The bills amounted to nearly Rs 12 crore—a large enough sum to set alarm bells ringing. They had been forwarded directly by Arvind Rao.

Rajesh Moorti, the CFO who had joined the company in 2006 and played a critical role in its successful 2008 IPO, had resigned a few weeks earlier. The company’s board hadn’t made any serious efforts to ascertain why.
Now finance departments are adept at spotting irregularities, so the bills duly got flagged.
According to sources who were directly privy to what followed but chose to remain anonymous due to the nature of the incidents, the matter escalated to the attention of Mouli Raman, the CTO and co-founder.
On December 8, Rao was inexplicably divested of his role as chairman of the board. He continued to remain CEO and MD even as HH Haight, the 78-year-old head of Argo Global Capital, a venture capital fund that was OnMobile’s largest shareholder, became the new chairman.

The bills would remain stuck for another two weeks till Moorti left; they then got cleared.
But the dominoes had already started falling.
Two long-time independent board members—Sridhar Iyengar and JR Varma—resigned on January 24 and 25, respectively, a few days short of a scheduled board meeting on January 28. Iyengar, a former CEO of audit firm KPMG India, headed the compensation committee while Varma, a highly regarded professor of finance at IIM Ahmedabad and a former full-time member of SEBI, headed the audit committee.

No reasons were given for their sudden and near-synchronised resignations.

Read more: http://forbesindia.com/article/boardroom/why-arvind-rao-and-onmobile-went-down-a-dark-road/33420/1#ixzz22ImjZNJH

SUBROTO BAGCHI



WEB EXCLUSIVE/MAGAZINE EXTRA | Jul 30, 2012 | 2161 views                    What Overachievers Can Do to Save Themselves by Subroto Bagchi            What can save over achievers from self-destruction?
1. Pace yourself: For a great professional, it is a marathon. Your work will spread over at least 40 years. Don’t burn at both ends of the candle. Be authentic; know that life has a larger purpose to achieve through you.  Life wants to make an impact using your abilities. Therefore, don’t be under any pressure to prove your one-upmanship to someone. Your talents are not meant to be gunpowder in the barrel of your ego.


2. I always think of myself as a municipal water pipe. My job is to deliver the water, not quench my own thirst. My position and my authority are not meant for my gratification. Yes, they feel good. But I must know that they are not for personal consumption.


3. I must own failures but deflect the success. This is the best way to create greater success. When I own failure, I learn valuable lessons; this process pre-supposes reflective space and that slows me down deep within; it is a very important part of regeneration. When I deflect success I no longer carry its burden. Success is heavy, we have just two shoulders.
4. I must not trivialise my screw ups. I should relive them in my mind and seek forgiveness. Great people say sorry.


5. Every overachiever very well knows the difference between the right and the convenient. In 98 percent of cases, a CEO does not need a lawyer to tell him what the right thing to do is. Yet, sometimes, even the best among us fall prey to temptation: A fling, a bribe, waving a due diligence, a seemingly harmless favour from a supplier…anything that would later tell us all that it was a matter of common sense. Let us begin by admitting that we are all human. So, it is all right to be tempted but not all right to fall to the subsequent indiscretion. The trick is to pick up the phone when temptation begins and speak to someone with no vested interest in the matter and ideally someone with a higher reputation capital than you. Ask for advice. When you do, make sure you give all the facts, not the biases. Ask for the advice before the act.
6. When people who have loved you a lot for a long time bring forth a cautionary note, beg you not to do something you are about to, please pay attention to it. It is life showing you the yellow card through an Angel who you have always trusted. Pause. 


7. What is common between politician ND Tiwari, self-styled God-man Nityananda, Strauss-Kahn, Bill Clinton and Tiger Woods? High testosterone. This is a very common phenomenon among alpha-males and history is replete with examples of countless powerful people fall because of it, starting with the demon Mahishasura who, even the Gods feared! Sexual proclivity beyond the ordinary can be a disorder that can be treated with medicine and counselling. 


8. Overachievers have the power to convince people like no one else can. But note the first three alphabets in the word ‘convince’. Beware, you can con others and often simply con yourself. Once you do, no one can argue with you; you have the gift of the gab. You think brilliantly, but know that you may often come to a conclusion first, and then retrofit the justification. Then you psych yourself. Reasoning does not work anymore. The argument and your chosen path of action look perfect in every which way. Then you just step into obscurity. 


9. A lot of overachievers get carried away with public awards and recognitions. Trophy hunting overshadows real work. Beware, much of the award business in the world is shallow, many are a business unto themselves, and some are a downright racket. Do the work; the recognition will follow. The greatest recognition in life is unlikely to be an award; it may be a grandchild in your arms or a butterfly in spring that you can notice in the winter of your life! 


10. My dad always told me one thing: You are known by the company you keep. If you hang out with the wrong guys—seemingly harmless—and just for a few times for fun, it wouldn’t quite work. The wrong guy will return. 


11. Do not live on your professional fame alone. Keep a backup. One day you will need it. This is particularly important for people who are to hang their boots in the next five, six, ten years. 


12. Do leave with grace. Do not cling on to your name, fame, role, and office, whatever. Leave gently, leave a little before you are asked to go. If things get difficult, go with grace. Do not immolate yourself in the town-square and ask people to come to watch. It makes for news only for that day.

13. Respect the system. Either you are an overachiever because the system has brought you here or the system presented itself as the matching colliding force for you to battle. Either way, have respect for it. 


14. Last but not the least, pray. It keeps you subordinate to a larger power and that helps in a crisis. If you believe in God, use the toll-free number; know that it gets disconnected if not used periodically. 


Read more: http://forbesindia.com/article/maga-zine-extra/what-overachievers-can-do-to-save-themselves/33428/1#ixzz22GIXyBDK

Subroto Bagchi--SUSTAINED ACHIEVER!!!


Tue, Jul 31, 2012 at 11:59

Why overachivers go down the path of self-destruction

Life does not place hurdles in the way of an overachiever. Instead, life uses distractions. Subroto Bagchi/ Forbes India


Life does not place hurdles in the way of an overachiever. Instead, life uses distractions

For many years now, I have been studying overachievers in the professional world; these are people who have high IQ, eminent qualifications, experience, the power of an early start and quite often, very supportive families. You think they are God's chosen ones and there is no stopping how far they may go. Then one morning you wake up to find the angel fall. Actually, it is not a fall, it is invariably a crash; only splinters remain where once stood a David by Michelangelo. How does that happen? Who kills the angel?  I have come to believe that in most such cases, there is no external enemy. Only ordinary people need an external enemy. The overachiever is his best friend and his worst enemy. This probably is life’s way to ensure that we do not become immortal. Its secrets are probably stored in the DNA as much as it is a function of how the neo-cortex responds to the environment.  

Sometimes I imagine the image of the double-helix structure of the DNA; it depicts who we are and has a microcode flowing from time immemorial to make me who I am; a microcode not of the Karma, but the decisional rules we may exercise or fail to exercise when temptation strikes. The double helix structure suggests boundless possibilities as one of the two sides of the ladder - self-destruction is the other side. For the overachiever, it is difficult to balance the two and only the self-aware among them are able to balance between them. The self-aware know that at any point in time, they are a few steps, sometimes a few minutes away from a fall. Destruction of great capability does not take a lifetime or for that matter, hours. More often than not, it is just a moment of indiscretion. 

Seven minutes of pleasure brought Bill Clinton, the most powerful man in the world at the time, to rank ordinariness. That angel fell like porcelain on marble. What happened to Strauss-Kahn? Wasn't he the man who was expected to bring Europe back from the brink of disaster? Theirs are not instances of sexual proclivity. Under the surface, it is the double helix saying, 'come die'.  

It is very interesting that life does not place hurdles in the way of an overachiever. Hurdles are actually life’s gym equipment meant to improve the muscle tone and help one deal with more. Instead of hurdles, life uses distractions. There are mythical evidences galore that tell us how the Gods try the final distraction of womanhood, the origin of all power, to destabilise and destroy the one who is climbing to the peak. But they use other distractions as well. Satyam did not need competition to hurt the company, its founder hurt Satyam. His one moment of distraction - the first fudged financial statement - opened window upon window of progressive death until one day, the porcelain doll crashed into a thousand splintered pieces. The same thing happened with SKS and now OnMobile. 

The overachiever doesn't exactly die after each such incident, not at least in a physical sense. What dies is the reputation capital. Then they, and sympathetic onlookers, explain away by saying, the overachiever was drawn into indiscretion. That there was an external reason that caused the behaviour. It is just a convenient deflection. One of the earliest examples of such deflection is in the story of the sage, Valmiki. He was a bandit who slaughtered passers-by and ran away with their belongings. His justification for the brutality: He had to provide for his family. This continued until his wife rejected that intellectual construct. She told him that he and he alone had chosen his path and was responsible for the consequences. 

Unlike Valmiki, today's high achievers, businessmen to bureaucrats, sports persons to politicians, deflect. There is none to tell them that they are deflecting. They say they are doing it all for the sake of others, because of external reasons. When you are doping to win a medal for the country, when you are accepting cash for the party and not yourself or when you fudge accounts to protect the so-called interests of the shareholder, you are just kidding yourself. You are doing it for yourself. You are failing in the face of temptation. You are just an accidental success that life now must kill. 

You have overstayed your welcome. 

That brings us to a fundamental question. Why can't these people, gifted in every other way, get it? Why do they lose common sense? Why don't they follow the simple precepts we were all taught as children? That we should not tell a lie, we should not take what does not belong to us, that hard work must give us the fruits of labour? That we should be nice and polite to others and most importantly, look before you leap.

I always think that there is no greater set of governance rules than the Ten Commandments. For each indiscretion of a Martha Stewart or our homemade Telecom Raja, there is a matching, simple commandment that would have helped them reach the Hall of Fame. Instead, they all go over the precipice. The fall is invariably a one-way drop. 

Overachievers are very vulnerable people at one level. They can suffer from sensory failure when they can least afford it. From the CEO to the doorman, we are all factory fitted with the same five sensory organs. How we deploy them and when we suspend them, is a matter of personal choice and that in turn, is influenced by the degree of an individual’s self-awareness. That is how the seemingly invincible individual one day fails to hear, fails to see what is evident to you and I. If you do risky lending, you may not get your money back. If you pick up a one-night stand, a page 3 columnist may see you. If you accept a bribe once, the bribe giver may invite himself to your home, he may touch your wife in front of you and call her his sister. Inability to see all this coming is sensory failure.

Sometimes it is not a one-man disaster. An overachiever in the company of another has often suffered from false harmony; has failed to ask critical questions and suspended the responsibility of dissent. This has perpetuated in history from the Bay of Pigs to Satyam where highly accomplished individuals dug a collective grave. 

So, what can we all do to save ourselves from the danger that is lurking within us? How can we circumnavigate a temptation? Life asks for mastery over the self, it does not want to dole that capability to everyone. That mastery is granted in small and slow measures to those who practice humility. Humility reduces the noises in the head and silences us. In that silence we listen better, we are able to see, hear, taste, smell and touch what can be potentially toxic. Life invariably shows us a yellow card; thinking that it is green is optional.  

Overachievers that run the course are conscious to disassociate themselves from their personal success. They tell you that they were lucky to be in the right place at the right time. Ask any great maestro and she would deflect her success to her Guru's teaching and his infinite patience. As much in the corporate world as outside, sustained overachievers take their success as a responsibility; as a burden, not an entitlement. Therein lies the capacity to keep the feet firm on the ground even as the eyes are set on the peak. 

JAPAN NTT- MOBILE PAYMENT_ATMS.....

Japans NTT in talks for stake in Prizm Payments
Reghu Balakrishnan / Mumbai Aug 01, 2012, 00:22 IST
Japanese corporate giant NTT Group is in discussion with payment service provider Prizm Payments Services Pvt Ltd to acquire a substantial stake in the Chennai-based company.
Prizm is a leader in third party automated teller machine (ATM) maintenance services. The percentage of stake Prizm is diluting is not known yet. However, if a controlling stake transaction happens, it would be in a range of Rs 800-1,000 crore, said people close to the development.
NTT Group is likely to acquire the stake through its Indian arm of NTT Communication. US banking giant JPMorgan has the mandate to find a strategic partner for the Sequoia Capital India-backed Prizm. According to earlier reports, Tata Communications Ltd was also in negotiation with Prizm to acquire a stake in the firm. Apart from telecommunication companies, a few private equity firms also have shown interest.
The funds to be raised from the stake sale will be invested for setting up more ATMs, as the demand from public sector banks is on high. The company is in the process of setting up 50,000 ATMs for public sector banks.
Prizm, formed in 2008, has deployed 10,000 ATMs and 25,000 POS devices (A point-of-sale device is used for processing credit /debit card transactions) under its management. Venture capital firm Sequoia Capital had invested about $15 million (about Rs 83 crore today) in Prizm in two rounds in 2008 and 2011.
Mails sent to Loney Antony, managing director (MD), Prizm Payments and S Wada, MD, NTT Communications India, did not elicit any response till the time of this story going to press.
As the mode of cash transactions has seen a shift towards mobiles, telecommunication companies have identified the space as an attractive destination. Recently, Prizm had entered into an arrangement with Mswipe Technologies P Ltd for providing services to Mswipe’s mobile POS terminals.
Leading Indian banks are also on their way of shifting transactions to mobile technologies. This month, Axis Bank Ltd, India’s third largest private lender, joined hands with Prizm and Mswipe to roll out Swipeon, a mobile phone-based card acceptance service. The service will convert mobile phones into a card acceptance device by attaching the Mswipe card reader to the phone.
However, experts believe margins in this business are meager compared to the large investment size. “As per the changed guidelines, banks are unable to generate substantial revenue through ATM transactions and the same will affect the facility provider, too,” said a partner with an advisory firm, requesting anonymity.
Banking transactions through mobile phones have trebled to Rs 286 crore during May, compared to the corresponding month last year, on account of a higher number of users with hand-held devices, according to the Reserve Bank of India.

Tuesday, July 31, 2012

EVERY WHERE INSIDER TRADING!!!!!!!!!

I USED TO MENTION MOST OF THE TIMES "MARKETS ARE FOR RIGGERS AND MANIPULATORS. VERY FEW FAILS TO DUE CAUTIOUSLY CAUGHT BY THE LAW. THE REST ENJOY THE BOOTY.......BE CAUTIOUS ABOUT THE WILD GYRATIONS IN PRICES...


How Wall Street Lawyer Turned Insider Trader Eluded FBIBy David Voreacos - Jul 31, 2012 3:30 PM GMT+0530  

Every dawn in the early spring of 2011, Matthew Kluger peered out his window, wondering when federal agents would knock at his door. Kluger, a mergers-and- acquisitions lawyer, says he worried that authorities were closing in on him as the source of illegal tips in a three-maninsider-trading ring that had eluded detection for 17 years. The knock came on April 6. U.S. agents handcuffed Kluger, hustled him into a Dodge Intrepid, drove to the Federal Bureau of Investigation office in Manassas, Virginia, and laid out the case against him. The evidence included tape recordings of Kluger telling the man he tipped to get rid of a cellular phone that could lead back to him -- and to do it carefully because the authorities had dogs that can sniff out mobiles.

Monday, July 30, 2012

HSBC - FAILURES


HSBC Apologizes For Compliance Failures      By Howard Mustoe and Gavin Finch - Jul 30, 2012 10:07 PM GMT+0530

HSBC Holdings Plc (HSBA), the British bank accused of helping drug lords in Mexico launder money, apologized to investors for compliance failings and set aside $2 billion more to cover the costs of fines and redress.

The lender made a $1.3 billion provision in the first half to compensate British clients wrongly sold payment-protection insurance and derivatives, London-based HSBC said in a statement today as it posted an 8.3 percent drop in net income. It also made a $700 million provision for U.S. fines after a Senate committee found the bank gave terrorists, drug cartels and criminals access to the U.S. financial system. That sum may increase, Chief Executive Officer Stuart Gulliver said.

“Regulatory and compliance events in the first six months of the year overshadowed financial performance,” ChairmanDouglas Flint said in a statement today. “HSBC has made mistakes in the past, and for them I am very sorry.”http://www.bloomberg.com/news/2012-07-30/hsbc-profit-beats-estimates-on-income-from-asset-sales.html