The IMF still has to finalise contribution terms. Brazil is demanding a bigger share of the IMF vote in return for a bi-lateral loan, while China has been lobbying for the fund to soften its rhetoric on China’s exchange rate policy.China is also not expected to quantify its support for the IMF until after a new leader is named. Others have taken a more hardline position. The US and Canada have refused to make any contribution at all on the grounds that Europe should be doing more itself and that the $1 trillion firewall euro members agreed in March is not enough. Jim Flaherty, the Canadian finance minister, said the only circumstances under which Canada might step up were “where other countries outside the eurozone require assistance”. The IMF said in its communiqué that it had “firm commitments to increase resources by over $430bn” and the “global economy is recovering gradually [but] high risks remain and more needs to be done”....Britain pledged an extra £10bn ($15bn) to the International Monetary Fund but Treasury officials stressed the contribution is contingent on the US ratifying an agreement struck two years ago in Seoul. The US, though, is not expected to sign it off until after November’s presidential election at the earliest.According to IMF officials, a number of other countries have attached similar conditions to their contributions, potentially limiting the new bail-out fund’s firepower. Although the weekend’s agreement to double the IMF’s war chest to around $800bn has been widely welcomed, the small print could partially undermine rescue efforts and confidence in the deal.
Access Investments-Building Awareness - European Union-ROMANIA
Sunday, April 22, 2012
The IMF still has to finalise contribution terms. Brazil is demanding a bigger share of the IMF vote in return for a bi-lateral loan, while China has been lobbying for the fund to soften its rhetoric on China’s exchange rate policy.China is also not expected to quantify its support for the IMF until after a new leader is named. Others have taken a more hardline position. The US and Canada have refused to make any contribution at all on the grounds that Europe should be doing more itself and that the $1 trillion firewall euro members agreed in March is not enough. Jim Flaherty, the Canadian finance minister, said the only circumstances under which Canada might step up were “where other countries outside the eurozone require assistance”. The IMF said in its communiqué that it had “firm commitments to increase resources by over $430bn” and the “global economy is recovering gradually [but] high risks remain and more needs to be done”....Britain pledged an extra £10bn ($15bn) to the International Monetary Fund but Treasury officials stressed the contribution is contingent on the US ratifying an agreement struck two years ago in Seoul. The US, though, is not expected to sign it off until after November’s presidential election at the earliest.According to IMF officials, a number of other countries have attached similar conditions to their contributions, potentially limiting the new bail-out fund’s firepower. Although the weekend’s agreement to double the IMF’s war chest to around $800bn has been widely welcomed, the small print could partially undermine rescue efforts and confidence in the deal.
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How much would it cost to buy a slice of a private equity firm that's boasted a roll call of advisers including former US president George Bush Sr, former British prime minister Sir John Major, and two-time prime minister of Thailand, Thaksin Shinawatra?
The answer, in the case of Carlyle Group, seems to be about $7bn (£4.3bn) – for which you can buy into a firm routinely described as well connected, but which also seems to be drawn to controversy, having once attracted investment from the Bin Laden family, which led to a starring role in Michael Moore's Fahrenheit 9/11.
Still, after 25 years making a fortune from the defence industry, and latterly broadening its investment portfolios to participate in the buyouts of several big US businesses, including the car rental group Hertz and Dunkin' Donuts, Carlyle is about to float 10% of its shares on Wall Street. The move is startling, not least because it provides a public showcase for the billion-dollar fortunes amassed by the firm's three founders – David Rubenstein, William Conway and Daniel D'Aniello – who will collectively own more than half of the listed company.
None of the founders (who named their firm after the luxurious New York hotel) or Carlyle's 95 partners will be selling shares in the offer, which will raise about $700m to be put to work in the firm's funds and also to pay down some debt. But, in an industry where timing is key, the float seems to have arrived at a tricky juncture for new public companies, following rival Oaktree Capital's float earlier this month, when it slashed the size of its offering and sold out at the bottom end of its range.
Still, getting other investors to cough up is exactly what Carlyle does best. Unusually for private equity firms, it is known more for its money-raising abilities than its investment decisions. The big names at rivals, such as KKR's Henry Kravis and Blackstone's Steve Schwarzman, made their reputations as investors. By contrast, Rubenstein, widely credited as the driving force behind Carlyle's growth, is known essentially for serving as a full-time fundraiser. Investment decisions are Conway's domain.
But Carlyle is also known for attracting controversy. The Bin Laden connection – via part of the family that publicly condemned the terrorist attacks linked to Osama – was quickly severed after the attacks on the twin towers, but Carlyle still manages to unearth other landmines, and the listing documents detail a string of major lawsuits.
Politician Michael Huffington and ex husband of blogger Arianais suing the firm over claims he was misled about risks on a $20m investment that went bust. Carlyle says it is "vigorously contesting all claims asserted by the plaintiff".
Meanwhile, the firm is still to shake off the damage to its reputation suffered by the use of "placement agents" who received fees in return for helping to secure cash for the firm's funds. In 2009 Carlyle agreed to pay $20m to New York state after Hank Morris, a political adviser, directed chunks of the state's multibillion-dollar pension fund to private equity firms, including Carlyle, that used him or his associates as paid intermediaries.
The Morris episode did not prove to be isolated. Carlyle's listing documents show that later in 2009 a case was filed in New Mexico, which alleges that "investment decisions by New Mexico public investment funds were improperly influenced by campaign contributions and payments to politically connected placement agents". Carlyle admits it is unable to anticipate "what impact the litigation may have on the company and its interest holders".
Election countdown
The first round of the French election will be held this Sunday. The top two candidates of the first round will advance to the second to be held Sunday, May 6.
The last polls were released Thursday and Socialist candidate François Hollande is the wide favorite, with Sarkozy coming in second and far-right Marine Le Pen coming in third. Far-left Jean-Luc Mélenchon, the surprise hit candidate of the elections, is hot on her heels and may well depass her in the final count.
There is still a bit of uncertainty surrounding François Bayrou, the centrist candidate. He could take votes from either of the frontrunner candidates. Alternatively, his supporters could also decide on election day to join the ranks of either Hollande or Sarkozy.
A big debate has been buzzing in France and abroad with election results. French law states that election results cannot be released before 8 p.m., on a penalty of a fine of €75,000.
But only a few polls stay open until eight. Most close at six, meaning that election results will be available much earlier. In the age of social media, this law will be hard to enforce. Numerous bloggers as well as the foreign press say they will reveal results ahead of time. French newspaper Libération has threated to release results at 6:30 pm on Sunday.
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