Thursday, October 5, 2006

The Independent Monitoring Commission has reported that the Provisional Irish Republican Army has undergone major changes within their military structure and shows that the IRA Army Council wants to put its military campaign behind it. The Commission consists of John Alderdice, a former Alliance Party leader; Joe Brosnan, former Secretary General of the Department of Justice, Republic of Ireland; John Grieve, former Deputy Assistant Commissioner of the Metropolitan Police and former head of the Metropolitan Police Anti-Terror Branch; and Dick Kerr, former Deputy Director of Central Intelligence Agency.

The report states the IRA no longer has the capacity to mount a military campaign anymore or return to one. The units that have been shut down were responsible for weapons-making, arms smuggling and training. The IRA decommissioned their arms last year.

The report also mentions that the IRA has also put its criminality beyond use and is “clamping down” on criminals within the organization, said Lord Alderdice, as he presented the report. He also added, “That doesn’t mean that criminal activity by all members has stopped but the leadership has made public statements and internal directions, investigated incidents of breach of the policy, even expelled some members and has emphasised the importance of ensuring that business affairs are conducted in a legitimate way.”

Finally, the report added that there is not enough evidence or intelligence to identify who killed Denis Donaldson, a British spy who infiltrated the IRA and Sinn Fein, before revealing his status as a spy.

However, the report added that splinter groups like the Real IRA (RIRA) and Continuity IRA (CIRA) are still threats and are still continuing their activity. The Real IRA was the group behind the deadly 1998 Omagh bombing. The Irish National Liberation Army (INLA) “was not capable of undertaking a sustained campaign [against the British State], nor does it aspire to” according to the report.

It is also noted the creation of two new organizations, Oglaigh na hEireann (Irish Gaelic for “Volunteers of Ireland” and is used by the Irish Defence Forces and the various IRAs.) and the Republican Defence Army. However, the groups are small dissident factions according to the report.

The report also added that the two loyalist paramilitaries, the Ulster Defence Association (UDA) and the Ulster Volunteer Force (UVF) are also beginning to move from violence but at slower pace and not at a grassroots level like the IRA. Another loyalist paramilitary, the Loyalist Volunteer Force

The report was received warmly by Irish Toaiseach Bertie Ahern and British Prime Minister Tony Blair. Ahern, said “These positive and clear-cut findings are of the utmost importance and significance. It is time to make decisions and for Northern Ireland to look to the future.”

“The IRA has done what we asked it to do, and while issues like policing remain to be solved, the door is now open to a final settlement, which is why the talks next week in Scotland are going to be so important.” said Tony Blair in a live statement.

In a surprising reaction, the notoriously hardline leader of the Democratic Unionist Party, Ian Paisley, also welcomed the report. He believes that his party’s pressure is working and if Sinn Fein signs up to policing there could be a deal. Paisley said, “If the police question is settled absolutely on a democratic basis and principle we would have come a long way along the road.”

Sinn Fein leader Gerry Adams said “The DUP don’t have anything other than very limited options. They will or will not participate in power-sharing arrangements. If they don’t participate they are condemning people here, but particularly their own constituents, to second class public services, run by second class fly-in, fly-out British ministers. All the DUP can do is to delay, is to attempt to slow down, but they can’t stop the process of changing.”

Saturday, September 17, 2005

The Spanish word “tortuga” means “turtle.” But in the wake of the New Orleans disaster, the USS Tortuga is helping other animals.

For nearly two weeks now, sailors from Tortuga’s repair division have devoted much of their time during this disaster relief operation to ensure the health and comfort of displaced pets.

September 4th, just after the ship moored to a pier at Naval Support Activity (NSA) New Orleans, HT1(SW) Mark Hanley and DC1(SW) Antony Graves gathered materials from the repair shop on board to construct a kennel along the levee. The facility they made soon became a popular shelter for the homeless animals of the storm.

Tortuga’s search and rescue team brought aboard more than 170 displaced citizens during this past week, providing them with food, water, medical aid and a place to sleep.

Tortuga’s makeshift kennel, named ‘Camp Milo & Otis,’ has housed as many as 90 dogs, eight cats, one rabbit, one guinea pig, a pair of parakeets and a flightless pigeon during the past week of operation.

Currently, there are 14 dogs that remain in Tortuga’s care, as many of the other pets have been taken to animal shelters in the area for extra medical attention, or been claimed by their owners upon arrival to Tortuga. The pets that Tortuga has registered have all been in the hands of professional veterinarians assigned to provide expert medical attention to the members of Camp Milo & Otis.

Dr. Kelly Crowdis and Dr. Latina Gambles, both from Tuskegee University and Christian Veterinary Missions, have treated many of the pets for infection, dehydration, malnourishment and broken bones at the Camp during the past week.

“The animals were bathed and assessed before physical interaction with the sailors,” said Dr. Crowdis. “They’ve been given immunizations, antibiotics and medications based on their medical needs.”

Dr. Crowdis added, “What these sailors have done on their own has been such a heart-warming thing. As an animal lover, it is so comforting to know that everyone cares about the animals in addition to the human lives rescued from the storm. I’m very pleased with these guys for taking the initiative to construct this kennel.”

Graves, Hanley and other members of their division have consistently bathed, fed, walked and given special attention to every dog, every day.

“We play with them,” said Hanley. “We take them out of their kennels to give them attention every day. And we’ll continue to do that for as long as our ship’s mission keeps us here.”

September 11th, the Agricultural Center at Louisiana State University donated supplies to “Camp Milo & Otis” in support of Tortuga’s efforts to help the animal victims.

”We got medical supplies, bowls, food, cages, leashes, collars, toys, cat litter and cleaning supplies from these people yesterday,” said Graves. “It’s nice to know that so many people out there have heard about what our ship is doing, and responded by donating so much to support us the best they can.”

A photo gallery of unclaimed pets is on the USS Tortuga’s web site.

As part of disaster plans, the Department of Homeland Security has also deployed Veterinary Medical Assistance Teams to provide medical care to pets and livestock, as well as provide any needed veterinary medical care for search and rescue dogs.

There are over 3,850 animals being sheltered around the state. If someone is looking for a pet they should contact their nearest Humane Society or go online to http://www.petfinder.org// . More information is also available at http://www.vetmed.lsu.edu//.

[edit]

Friday, April 3, 2009

The G20 Summit held in London, England concluded Thursday with an injection into the economy of US$5 trillion by the end of 2010.

Global trade would be supported by $250 billion (169.5 billion pounds). “We are going to act decisively to kickstart international trade. We will ensure availability of at least $250 billion over the next two years,” said Gordon Brown Prime Minister of the United Kingdom.

The International Monetary Fund IMF will have access to $750bn in resources of which $250bn will support special drawing rights.

Developing countries received $100bn which will be dispensed via Multilateral development banks. Towards this end, the IMF will sell off gold reserves.

China will support the IMF fund by $40bn, the European Union by $100bn, and Japan by $100bn.

There will be increased regulation on banking and credit ratings agencies. There was a commitment to clamp down on hedge funds, tax havens and toxic assets. To restore consumer confidence in the financial sector, a new Financial Stability Board will be initiated internationally. There would be new policies implemented to control pay and bonuses paid to the heads of banks and corporations.

The G20 leaders were adverse to protectionism and rallied to support international trade and investment.

The Leaders’ statement said, “We reaffirm the commitment made in Washington: to refrain from raising new barriers to investment or to trade in goods and services, imposing new export restrictions, or implementing World Trade Organization (WTO) inconsistent measures to stimulate exports.”

Eoin O’Malley, senior adviser on international trade at BusinessEurope, said “The measure also needs to be part of wider package to avoid protectionism and conclude the Doha round which will stimulate trade growth. The key point now is to move forward with Doha. The key now is implementation. G20 governments must act quickly to provide this finance to companies that need it urgently.”

Wednesday, December 16, 2009

A report published last week in the Toronto Star by Professor Michael Geist of Canada’s University of Ottawa claims a copyright case under the Class Proceedings Act of 1992 may see the country’s largest players in the music industry facing upwards of C$6 billion in penalties.

The case is being led by the family and estate of the late jazz musician Chet Baker; moving to take legal action against four major labels in the country, and their parent companies. The dispute centres around unpaid royalties and licensing fees for use of Baker’s music, and hundreds of thousands of other works. The suit was initially filed in August last year, but amended and reissued on October 6, two months later. At that point both the Canadian Musical Reproduction Rights Agency (CMRRA) and Society for Reproduction Rights of Authors (SODRAC) were also named defendants.

January this year SODRAC and CMRRA switch sides, joining Baker et al. as plaintiffs against Sony BMG Music, EMI Music Canada, Universal Music Canada and Warner Music Canada. David A. Basskin, President and CEO of CMRRA, with a professional law background, stated in a sworn affidavit that his organisation made numerous attempts over the last 20 years to reduce what is known as the “pending list”, a list of works not correctly licensed for reproduction; a list of copyright infringements in the eyes of the Baker legal team.

The theoretical principle of the list is to allow timely commercial release while rights and apportionment of monies due are resolved. Basskin complains that it is “economically infeasible to implement the systems that would be needed to resolve the issues internally”. And, “[…] for their part, the record labels have generally been unwilling to take the steps that, in the view of CMRRA, would help to resolve the problem.”

The Baker action demands that the four named major labels pay for and submit to an independent audit of their books, “including the contents of the ‘Pending Lists'”. Seeking an assessment of gains made by the record companies in “failure or refusal to compensate the class members for their musical works”, additional demands are for either damages and profits per the law applicable in a class action, or statutory damages per the Copyright Act for copyright infringement.

This forms the basis for Professor Geist’s six billion dollar calculation along with Basskin’s sworn testimony that the pending lists cover over 300,000 items; with each item counted as an infringement, the minimum statutory damages per case are CA$500, the maximum $20,000.

Basskin’s affidavit on behalf of CMRRA goes into detail on the history leading up to the current situation and class action lawsuit; a previous compulsory license scheme, with poor recordkeeping requirements, and which, had a decline in real terms to one of the lowest fees in the world, was eventually abolished and the mechanical license system introduced. The CMRRA went on to become a significant representative of music publishers and copyright holders, and the pending list an instrument to deal with situations where mechanical rights were as-yet not completely negotiated. Basskin’s affidavit claiming the list grew and circumstances worsened as time progressed.

The Mechanical Licensing Agreement (MLA) between the “majors'” industry body, an attached exhibit to the affidavit, is set to expire December 31, 2012; this is between CMRRA and the Canadian Recording Industry Association (CRIA). With the original MLA expiring at end September 1990, CMRRA negotiated more detailed terms and a “code of conduct”. Subsequent agreements were drawn up in 1998, 2004, 2006, and 2008.

Basskin asserts that the named record company defendants are the “major” labels in Canada and states they “are also responsible for creating, maintaining and administering the so-called “Pending Lists” that are the subject of the current litigation”; that, specific to publishing, divisions of the four represent the “‘major’ music publishers active in Canada”. Yet the number of music publishers they represent has decreased over time due to consolidation and defection from the CRIA.

Geist summarizes the record company strategy as “exploit now, pay later if at all”. This despite the CMRRA and SODRAC being required to give lists of all collections they represented to record labels, and for record labels to supply copies of material being released to permit assessment of content that either group may represent interested parties for. Where actual Mechanical License Agreements are in place, Basskin implies their terms are particularly broad and preclude any party exercising their legal right to decline to license.

Specific to the current Mechanical Licensing Agreement (MLA) between the CMRRA and the CRIA; a “label is required to provide an updated cumulative Pending List to CMRRA with each quarterly payment of royalties under the MLA.” The CMRRA is required to review the list and collect where appropriate royalties and interest due. Basskin describes his first encounter with pending lists, having never heard of them before 1989, thus:

Alain Lauzon, General Manager of Canada’s Society for Reproduction Rights of Authors, Composers and Publishers (SODRAC) submitted his followup affidavit January 28, 2009 to be attached to the case and identify the society as a plaintiff. As such, he up-front states “I have knowledge of the matters set out herein.” Lauzon, a qualified Chartered Accountant with an IT specialisation, joined SODRAC in 2002 with “over 20 years of business experience.” He is responsible for “negotiation and administration of industry-wide agreements for the licensing of music reproduction and distribution”; licensing of radio and online music services use is within his remit.

Lauzon makes it clear that Baker’s estate, other rightsholders enjoined to the case, SODRAC, and CMRRA, have reached an agreed settlement; they wish to move forward with a class proceeding against the four main members of the CRIA. He requests that the court recognise this in relation to the initially accepted case from August 2008.

The preamble of the affidavit continues to express strong agreement with that of David Basskin from CMRRA. Lauzon concurs regarding growing use of “pending lists” and that “[…] record labels have generally been unwilling to take the steps that would help to resolve the Pending List problem.”

With his background as an authority, Lauzon states with confidence that SODRAC represents “approximately 10 to 15% of all musical works that are reproduced on sound recordings sold in Canada.” For Quebec the figure is more than 50%.

Lauzon agrees that the four named record company defendants are the “major” labels in Canada, and that smaller independent labels will usually work with them or an independent distribution company; and Basskin’s statement that “[t]he responsibility to obtain mechanical licenses for recordings manufactured and/or released in Canada falls with the Canadian labels by law, by industry custom, and by contractual agreement.”

Wikinews attempted to contact people at the four named defendant CRIA-member record labels. The recipient of an email that Wikinews sent to Warner Brothers Canada forwarded our initial correspondence to Hogarth PR; the other three majors failed to respond in a timely fashion. Don Hogarth responded to Wikinewsie Brian McNeil, and, without addressing any of the submitted questions, recommended a blog entry by Barry Sookman as, what he claimed is, a more accurate representation of the facts of the case.

Sookman is a lobbyist at the Canadian Parliament who works in the employ of the the Canadian Recording Industry Association (CRIA). Hogarth gave no indication or disclosure of this; his direction to the blog is to a posting with numerous factual inaccuracies, misdirecting statements, or possibly even lies; if not lies, Sookman is undoubtedly not careful or “very qualified” in the way he speaks on the issue.

Sookman’s blog post opens with a blast at Professor Geist: “his attacks use exaggeration, misleading information and half truths to achieve his obvious ends”. Sookman attempts to dismiss any newsworthiness in Geist’s article;

As the extracted [see right] stamp, date, and signature, shows, the court accepted amendments to the case and its submission, as Professor Geist asserts, on October 6. The previously mentioned submissions by the heads of CMRRA and SODRAC were indeed actions within the past year; that of SODRAC’s Alain Louzon being January 28 this year.

Sookman continues his attack on Professor Geist, omitting that the reverse appears the case; analysis of his blog’s sitemap reveals he wrote a 44-page attack on Professor Geist in February 2008, accusing him of manipulating the media and using influence on Facebook to oppose copyright reform favourable to the CRIA. In the more current post he states:

This characterisation of the pending list only matches court records in that it “has been around for decades”. CMRRA’s Basskin, a lawyer and industry insider, goes into great detail on the major labels resisting twenty years of collective societies fighting, and failing, to negotiate a situation where the labels take adequate measures to mechanically license works and pay due fees, royalties, and accrued interest.

What Sookman clearly overlooks is that, without factoring in any interest amounts, the dollar value of the pending list is increasing, as shown with the following two tables for mid-2008.

As is clear, there is an increase of C$1,101,987.83 in a three-month period. Should this rate of increase in the value of the pending list continue and Sony’s unvalued pending list be factored in, the CRIA’s four major labels will have an outstanding debt of at least C$73 million by end-2012 when the association’s Mechanical Licensing Agreement runs out.

Sunday, February 22, 2009

According to ornithologists, a rare Philippines buttonquail feared to have gone extinct was recently documented alive by a cameraman inadvertently filming a local market, right before it was sold and headed for the cooking pot. Scientists had suspected the species—listed as “data deficient” on the 2008 International Union for Conservation of Nature’s Red List Category—was extinct.

Last month, native bird trappers snared and successfully caught the Luzon Buttonquail (Turnix worcesteri or Worcester’s buttonquail) in Dalton Pass, a cold and wind-swept bird passageway in the Caraballo Mountains, in Nueva Vizcaya, located between Cordillera Central and Sierra Madre mountain ranges, in Northern Luzon.

The rare species, previously known to birders only through drawings based on dead museum specimens collected several decades ago, was identified in a documentary filmed in the Philippines called Bye-Bye Birdie.

British birder and WBCP member Desmond Allen was watching a January 26 DVD-video of a documentary, Bye-Bye Birdie, when he recognized the bird in a still image of the credits that lasted less than a second. Allen created a screenshot, which was photographed by their birder-companion, Arnel Telesforo, also a WBCP member,in Nueva Vizcaya’s poultry market, before it was cooked and eaten.

i-Witness: The GMA Documentaries, a Philippine documentary news and public affairs television show aired by GMA Network, had incorporated Telesforo’s photographs and video footage of the live bird in the documentary, that was created by the TV crew led by Mr Howie Severino. The Philippine Network had not realized what they filmed until Allen had informed the crew of interesting discovery.

Mr Severino and the crew were at that time, in Dalton Pass to film “akik”, the traditional practice of trapping wild birds with nets by first attracting them with bright lights on moonless nights. “I’m shocked. I don’t know of any other photos of this. No bird watchers have ever given convincing reports that they have seen it at all… This is an exciting discovery,” said Allen.

The Luzon Buttonquail was only known through an illustration in the authoritative book by Robert S. Kennedy, et al, A Guide to the Birds of the Philippines. This birders “bible” includes a drawing based on the skins of dead specimens collected a century ago, whereas the otherwise comprehensive image bank of the Oriental Bird Club does not contain a single image of the Worcester’s Buttonquail.

“With the photograph and the promise of more sightings in the wild, we can see the living bill, the eye color, the feathers, rather than just the mushed-up museum skin,” exclaimed Allen, who has been birdwatching for fifty years, fifteen in the Philippines, and has an extensive collection of bird calls on his ipod. He has also spotted the Oriental (or Manchurian) Bush Warbler, another rare bird which he has not seen in the Philippines.

“We are ecstatic that this rarely seen species was photographed by accident. It may be the only photo of this poorly known bird. But I also feel sad that the locals do not value the biodiversity around them and that this bird was sold for only P10 and headed for the cooking pot,” Wild Bird Club of the Philippines (WBCP) president Mike Lu said. “Much more has to be done in creating conservation awareness and local consciousness about our unique threatened bird fauna. This should be an easy task for the local governments assisted by the DENR. What if this was the last of its species?” Lu added.

“This is a very important finding. Once you don’t see a bird species in a generation, you start to wonder if it’s extinct, and for this bird species we simply do not know its status at all,” said Arne Jensen, a Danish ornithologist and biodiversity expert, and WBCP Records Committee head.

According to the WBCP, the Worcester’s buttonquail was first described based on specimens bought in Quinta Market in Quiapo, Manila in 1902, and was named after Dean Conant Worcester.

Since then just a few single specimens have been photographed and filmed from Nueva Vizcaya and Benguet, and lately, in 2007, from Mountain Province by the Field Museum of Natural History in Chicago, Illinois.

Dean Conant Worcester, D.Sc., F.R.G.S. was an American zoologist, public official, and authority on the Philippines, born at Thetford, Vermont, and educated at the University of Michigan (A.B., 1889).

From 1899 to 1901 he was a member of the United States Philippine Commission; thenceforth until 1913 he served as secretary of the interior for the Philippine Insular Government. In 1910, he founded the Philippine General Hospital, which has become the hospital for the poor and the sick.

In October, 2004, at the request of Mr Moises Butic, Lamut CENR Officer, Mr Jon Hornbuckle, of Grove Road, Sheffield, has conducted a short investigation into bird-trapping in Ifugao, Mountain Province, Banaue Mount Polis, Sagada and Dalton Pass, in Nueva Vizcaya.

“Prices ranged from 100 pesos for a Fruit-Dove to 300 pesos for a Metallic Pigeon. Other species that are caught from time to time include Flame-breasted Fruit-Dove and Luzon Bleeding-heart; on one occasion, around 50 of the latter were trapped! All other trapped birds are eaten,” said Hornbuckle. “The main trapping season is November to February. Birds are caught at the lights using butterfly-catching type nets. Quails and Buttonquails were more often shot in the fields at this time, rather than caught, and occasionally included the rare Luzon (Worcester’s) Buttonquail, which is only known from dead specimens, and is a threatened bird species reported from Dalton Pass,” he added.

In August, 1929, Richard C. McGregor and Leon L. Gardner of the Cooper Ornithological Society compiled a book entitled Philippine Bird Traps. The authors described the Luzon Buttonquail as “very rare,” having only encountered it twice, once in August and once in September.

“They are caught with a scoop net from the back of a carabao. Filipino hunters snared them, baiting with branches of artificial red peppers made of sealing wax,” wrote McGregor and Leon L. Gardner. “The various ingenious and effectual devices used by Filipinos for bird-trapping include [the] ‘Teepee Trap’ which consists of a conical tepee, woven of split bamboo and rattan about 3 feet high and 3 feet across at the base, with a fairly narrow entrance. ‘Spring Snares’ were also used, where a slip noose fastened to a strongly bent bamboo or other elastic branch, which is released by a trigger, which is usually the perch of the trap,” their book explained.

A passage from the bird-trap book, which explains why Filipinos had eaten these endangered bird species, goes as follows:

A global review of threatened species by the International Union for Conservation of Nature (IUCN) indicates drastic decline of animal and plant life. This includes a quarter of all mammals, one out of eight birds, one out of three amphibians and 70 percent of plants.

The report, Red List of Threatened Species, is published by IUCN every year. Additionally, a global assessment of the health of the world’s species is released once in four years. The data is compiled by 1,700 experts from 130 countries. The key findings of the report were announced at the World Conservation Congress held in Barcelona, Spain.

The survey includes 44,838 species of wild fauna and flora, out of which 16,928 species are threatened with extinction. Among the threatened, 3,246 are tagged critically endangered, the highest category of threat. Another 4,770 species are endangered and 8,912 vulnerable to extinction.

Environmental scientists say they have concrete evidence that the planet is undergoing the “largest mass extinction in 65 million years”. Leading environmental scientist Professor Norman Myers says the Earth is experiencing its “Sixth Extinction.”

Scientists forecast that up to five million species will be lost this century. “We are well into the opening phase of a mass extinction of species. There are about 10 million species on earth. If we carry on as we are, we could lose half of all those 10 million species,” Myers said.

Scientists are warning that by the end of this century, the planet could lose up to half its species, and that these extinctions will alter not only biological diversity but also the evolutionary processes itself. They state that human activities have brought our planet to the point of biotic crisis.

In 1993, Harvard biologist E.O. Wilson estimated that the planet is losing 30,000 species per year – around three species per hour. Some biologists have begun to feel that the biodiversity crisis dubbed the “Sixth Extinction” is even more severe, and more imminent, than Wilson had expected.

The Luzon Buttonquail (Turnix worcesteri) is a species of bird in the Turnicidae family. It is endemic to the island of Luzon in the Philippines, where it is known from just six localities thereof. Its natural habitat is subtropical or tropical high-altitude grassland, in the highlands of the Cordillera Central, although records are from 150-1,250 m, and the possibility that it frequents forested (non-grassland) habitats cannot be discounted.

The buttonquails or hemipodes are a small family of birds which resemble, but are unrelated to, the true quails. They inhabit warm grasslands in Asia, Africa, and Australia. They are assumed to be intra-island migrants, and breed somewhere in northern Luzon in April-June and that at least some birds disperse southwards in the period July-March.

These Turnicidae are small, drab, running birds, which avoid flying. The female is the more brightly coloured of the sexes, and initiates courtship. Unusually, the buttonquails are polyandrous, with the females circulating among several males and expelling rival females from her territory. Both sexes cooperate in building a nest in the earth, but only the male incubates the eggs and tends the young.

Called “Pugo” (quail) by natives, these birds inhabit rice paddies and scrub lands near farm areas because of the abundance of seeds and insects that they feed on regularly. These birds are characterized by their black heads with white spots, a brown or fawn colored body and yellow legs on males and the females are brown with white and black spots.

These birds are very secretive, choosing to make small path ways through the rice fields, which unfortunately leads to their deaths as well, they are hunted by children and young men by means of setting spring traps along their usual path ways.

Buttonquails are a notoriously cryptic and unobtrusive family of birds, and the species could conceivably occur in reasonable numbers somewhere. They are included in the 2008 IUCN Red List Category (as evaluated by BirdLife International IUCN Red List of Threatened Species). They are also considered as Vulnerable species by IUCN and BirdLife International, since these species is judged to have a ten percent chance of going extinct in the next one hundred years.

Saturday, April 17, 2010

US bank Goldman Sachs has been accused of fraud by the American regulator Securities and Exchange Commission (SEC).

According to the SEC, Goldman Sachs failed to inform investors of a conflict of interest in the banks’ marketing of sub-prime mortgage investments, which were being sold at a time of uncertainty in the US housing market. The SEC says that a Goldman subsidiary, Paulson & Co, had been involved in the selection of securities included in the mortgage investments. It had not been disclosed to investors that Paulson had bet that the value of the investments would fall, benefiting Paulson but not those who bought the investments.

The securities, which were combined into a package called Abacus that was sold to investors, lost over $1 billion during the collapse of the US housing industry. According to the SEC, Goldman, Paulson, and the creator of Abacus, a vice-president of Goldman Sachs named Fabrice Tourre, all knew that the housing market was going to collapse, but continued to sell Abacus despite the risks.

Tourre had been in command of selecting the investments within Abacus, and then was the person responsible for selling it to investors. He had told those who invested in Abacus that its components had been selected by an independent party, ACA Management.

In all, 99% of the investments within Abacus were downgraded, and investors lost upwards of a billion US dollars.

The SEC alleged that “Goldman Sachs arranged a transaction at Paulson’s request in which Paulson heavily influenced the selection of the portfolio to suit its economic interests.” In a short response from Goldman, the bank said that “The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.”