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The steps taken at a meeting of Europe's leaders in March 2011. The European Financial Stability Facility will be allowed to disburse its entire 440 billion euros if needed, and it will be allowed to buy bonds in government auctions but not on the secondary market. Interest rates were reduced on loans to Greece and repayment terms were extended. But this fund can only buy bonds of countries receiving bailout money, which means Portugal will not see a decline in its interest rates for benchmark government bonds. Interest rates on Portuguese 10 year bonds remained high at 7.4%. Greek bonds saw a lowering of interest rates, but Ireland saw no change. What is needed now is a plan that will bring interest rates down for these countries, say analysts. And they say the plan agreed on by EU leaders fall short. If interest rates do not go down for these countries the debt keeps piling up, especially when austerity measures lower the economic growth rates of Greece and Portugal. Both Greece and Portugal do not have a competitive export industry, which places the burden entirely on austerity measures and revenue raising steps. The perverse scenario analysts fear is that debt continues to grow because of high interest rates at low or declining growth rates. While some relief was offered to Greece the situation is still precarious, and analysts estimate Greece's debt increasing to 160% of GDP from 127 % of GDP by 2013....

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Making the shift to smaller cars and putting its money where its mouth is meant converting Ford from a large vehicle company to a company that makes a lot of smaller cars, and this meant Ford would have to convert to smaller cars a lot of its truck and SUV plants and close some of the other plants. Alan Mulally is doing just that as he moves to give Ford a completely new direction What is not surprising but is still more than a bit disconcerting is the skepticism he is meeting from executives inside the company that Ford can only make money building larger vehicles even in the face of a market that is moving in the opposite direction. So again and again Alan is having to ask the question "what does a sustainable Ford Motor look like?" Shows that the American car companies are not only caught with the wrong bag of product mix but are in some kind of culture shock as the ground below them is changing. Alan also is focused on a global market almost as though he realizes that from now on there is only a global market to deal with not the sort of American market that existed in the past, so he reminds other Ford executives that the global market share of larger vehicles is only 15%, and as if to sound incredulous asks them and you want us to continue to invest limited resources in that market?...

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This New Yorker has resilence in his roots in the Scottish Hebrides islands. No wonder he was able to take up the challenge of a US unable to extricate itself from  wars in the Middle East (Reagan, Bushes, Obama), and unfair trade with China, and an onslaught of unfavorable media attention. His name is DJT. According to the BBC in this story on Donald Trump's mother Mary Ann Mcleod, she was a regular churchgoer, well respected in the community, who visited her homeland in Scottish isle of Lewis, British Hebrides, frequently. Mary Ann McLeod is the youngest of 10 children of a Scottish family in the town of Tong in the Hebridean isle of Lewis in the North Sea, northwest of the Scotland mainland. Her father ran the local post office. The family was  relatively poor coming from Scottish people cleared of Highlanders during the Clearances and with fishing disasters in the family. Two hundred servicemen returning from the first world war to Tong lost their lives in a shipping disaster and the economy of the island was in poor shape. With no opportunities or future many immigrated to Canada. Mary Ann's sister Catherine immigrated to Canada and on a visit to Tong she took Mary back with her to New York in 1930. Mary worked as a nanny for a wealthy family in New York before meeting a socialite of German immigrants Fred Trump. Mary returned to Scotland in 1934 and by then she found a new life with Fred Trump whom she married. The couple lived in a wealthy area of Queens and Fred Trump ran a real estate business he had inherited with his mother. Donald Trump still has three cousins in Tong in the British Hebrides Scottish isles. His older sister Maryanne Trump Barry regularly visited Tong. Donald Trump visited Tong in 2008. Of this family a local who knows the cousins and the family John MacIver, a local councillor and friend of the cousins told BBC in 2017- "They are very nice, gentle people and I'm sure they don't want all the publicity that's around. I quite understand that they don't want to talk about it."   ...

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With Whitacre in charge at GM there is a change of style and substance that just flows from who the man is. He is a no-nonsense guy, who once told a colleague from his days at Southwestern Bell, that God gave us two eyes and one mouth for the right reason so we should use it in that proportion. He is quite matter of fact about approaching the probems at GM right from the beginning. From those early meetings at the Westin airport hotel in Detroit, where he would tell GM executives and Henderson that if things did not happen the way they should and quickly he would find the right people. After there was a lot of soul searching about Henderson's decision to sell Opel- and three directors with private equity background decided it was bad for GM, that GM needed Opel for its compact and midsize car engineering and sales volume- Henderson was replaced as CEO. The decision was reversed. Within 3 months of Henderson's departure four other executives were let go, 20 more were reassigned and seven outsiders were brought in to fill top jobs. Lutz was marginalized. Reuss in his forties was placed in charge of N. America. The metrics were simplified from Wagoner's days to six: market share, revenue, operating profit, cash flow, quality, and customer satisfaction. His approach to get managers who make decisions fast and correct mistakes speedily. Vice chairman and CFO, Christopher Liddell, is from Microsoft and joined in January. Liddell points out that 12 of the 13 person GM executive committee are either new to the auto industry or outsiders. And the seniormost Whitacre and Liddell, are new to the auto industry and outsiders, so Whitacre can point out that GM has run the business in a more complicated way than it needs to be. The big changes are cultural. And making these changes for a company the size of GM and with the trauma that happened at GM with the speedy decline, required someone with the experience Whitacre gained in tackling the problems he faced at Southwesten Bell and the new AT&T, with its changing culture. The tough down-to-earth nature of the guy, with no affectations or layers to his personality whatsoever, proved an asset at the new AT&T and now at GM. Other decisions he has made at GM, are some strategic ones like bringing down incentives to sell cars, the latest being letting market share drop in March in the face of Toyota's heavy use of incentives to recover from the recall crisis, but sticking to reducing the incentive dollars by $1200 to $3500 per car. This made it possible to achieve sales goals. And some tactical but of great significance, from a common sense approach to GM advertising with his remark "I'm sick of Howie Long." Pitchman Long was a football player, and what Whitacre insisted on was showing off GM's best models and features to blow the competition, like the "May the Best Car Win," campaign. That many of GM's ads didn't focus on the cars and didn't make any sense, like little Cadillacs flying out of a birdhouse, makes this truly incredible to an outsider. Other things Whitacre brings are a change in his expectations, and his overall demeanor. This impatience may be a good thing for GM especially with the capital investment in new models, plant investment and better decisionmaking, and commonsense approach, to back it up. In the car industry it can't hurt for the top guy to look at the car clay models and ask why they can't be brought to market in 12 months. It gets people thinking differently. Asking a Cadillac dealer he knows in San Antonio why they should'nt be selling twice as many Cadillacs if the marketing was better. It helps when the top guy can visit a plant and have "diagonal slice meetigs" with plant staff, workers and UAW people, to talk about things in sweat shirt and jeans with no airs about yourself whatsoever, and to follow this up with a repeat meeting some months later and announce a $136 million investment, as he did with the Fairfax plant in Kansas....

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Concerns that the austerity cuts announced by Spanish prime minister Zapatero may not address the deeper causes of the financial crisis in Europe- taking on too much debt, government spending and the imbalances in the global economy. And the concern on the other side that even these small cuts and eventual larger cuts can squeeze domestic demand in countries with severe recession, weaken the tax base, test social cohesion, and dampen the prospects for recovery. Zapatero announced a 5% pay cut for public sector employees this year and a freeze for next year, cancelling index-linked pension increases, and cancelling a baby bonus tax break of 2500 euros, cutting back regional spending budgets, and postponement of infrastructure projects, all adding up to $15 billion in savings. This is intended to reduce the budget deficit to 6% of GDP from 11.2% in 2009. With Spain's unemployment at 20%, and the construction sector stalled, pain will be felt. Spain's large informal economy tied to tourism helps in this situation. Trade union Comisiones Obreras gave a muted response about a general strike saying that "it is the last thing this country needs at a time like this," after meetings with Zapatero. ...

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The step by step process Mr. Obama used to arrive at his decision to send 30,000 troops to Afghanistan. The use of charts showing the buildup at one of the last meetings, and how President Obama expressed frustration at the length of time the troops would be there, and then says "I want this curve pushed to the left," pointing to the bell curve showing buildup and withdrawal after some years. This says Baker may be the pivotal moment for the expansion of the war. What he meant was something like a fast buildup and rapid draw down. He asks Petraeus how fast the Iraq buildup for the surge took place, and Petraeus says 6 months. The option being discussed was Option 2A carefully prepared to get a30,000 troop addition approved by Defense Secretary Gates and presented to Mr Obama on November 11, 2009. What Obama said at that point was according to NYT reporter Baker's sources is - "What I'm looking for is a surge, this has to be a surge." Gates was the seasoned person in saying the right things at just the right time and not sooner in these negotiations. The process had seen alot of back and forth swings, leaks including the McChrystal report leak and the Ambassador Eikenberry report leak, and the President preferring to keep his thoughts to himself and using University of Chicago law school style analytical thinking to wade through the swamp of issues in this place called Afghanistan. With that Gates shows how that curve can be moved up and gets the President to allow for conditions at the time to be the factor for withdrawal conditions. In effect the President's analytical thinking an approaches good for a law class in the University of Chicago and potentially very unlikely to allow for agrasp of the muddied details and complexities of social, political and historical type in Afghanistan, were being applied to a crucial mind decision that would have a mind boggling impact. Had Gates served the country well? Had Mr Obama served the country well with these analytics, when a more intuitive decision based on understanding of all the conditions on the ground by talking to different people who had first hand experience in Afghnistan and Pakistan- see the links here to first hand reports- would have accomodated the peculiarities of the Afghan situation better than some charts and numbers? Speaker Pelosi and Congressman Obey had indicated lack of support among Democrats. The Budget Office had provided a cost estimate of 1 trillion dollars for 10 years. None of this appeared to matter in the final decision. NATO would supply the additional troops to get the number closer to 40,000. Gates had been the most seasoned player through years of negotiating with Congress, and he helped formulate Option 2A for 30,000. The President makes one final Professorial comment at the final meeting on November 29, 2009, after announcing his decision to support Option 2A, -"but if you don't agree with me say so now" and repeats saying "tell me now." Gates signals to Vice President Biden who inquires whether this is a Presidential order that it is one. Mullen and Petraeus say "fully support." America had by using charts numbers and law school analytical processes turned the complexities of Afghnistan into something else, but these analytics had still to be played out in the vast mountainous spaces of Afghanistan and in the homes and workplaces of America in 2010 and beyond. It is hard not to sense that something serious was lost that day. ...

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The need for private investment to fund infrastructure growth in India.

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Taxpayers not the banks are Secretary Paulson's clients and he needs to remind himself of that says the NYT editorial page. It wants to see the government bring in new more competent management and not use the management that got us into this mess in the first pace especially where that management has demonstrated poor judgement and made errors that caused the bank to be in trouble. And it does not want to see the government a passive investor. It want the government to have a sy in mergers an acquisitions. Its not saying tha the government should take on the job of running the banks but protecting its investment means Treasury has to be involved in critical decisions that affect its investment and in the way the business is run and what risks are taken. Also Treasury is asked to watch for and take steps against conflicts of interest. Many of the same banks that are selling their assets to Treasury will also be asked to help Treasury to run the troubled asset program. Treasury to take care that these banks do not end up writing the rules on one side for Treasury and selling Treasury the assets by being on the other side because it won't be good for taxpayers. See Guillermo Ortiz's advice to Fed chairman Bernanke at the recent G20 meetings which says says be sure to take ownership stakes, as there was serious, lasting and damaging political fallout in Mexico during the 1994-95 peso crisis, from conflicts of interest and the failure to take ownership stakes and dividends on preferred shares. ...

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Lally Weymouth of the Washington Post interviews Israeli defense minister Ehud Barak on June 20, 2012. On the negotiations of the P5+1 countries with Iran in Baghdad, Istanbul and Moscow, Barak says the Iranians are simply buying time, hoping that by being a little forthcoming they can delay giving up nuclear weapons programs capabilities and see if the situation changes with a new President in office in the U.S.. The Iranians are trying to reach a "zone of immunity," the way Pakistan and N. Korea did, and it will take a resolute determination on the part of the U.S. the Europeans, the Russians and the Chinese to prevent a nuclear Iran and nuclear proliferation. By the third meeting in Moscow it should be clear whether the Iranians are willing to give up capabilities that lead to nuclear weapons. Ayatollah Khamanei is the person in charge in Iran, but decisions are made collectively with the moderate Ayatollahs still ayatollahs, says Barak. The addition of the Khadima party to the coalition government of prime minister Netanyahu increases Israel's desire for dialogue and seeking progress on a peace with the Palestinian Authority- if not a peace arrangement then even unilateral steps towards peace by both sides. The way forward in Syria is for the U.S. to talk with the Russians about a new government. The important thing is for the removal of the Assad family, the entire Syrian state does not need to be dismantled as happened with the Baath party in Iraq. Israel continues to build a fence in the Sinai facing Egypt, as it fears infiltration during the period of civil strife in Egypt. Israel views Egypt from the standpoint of any future Egyptian government honoring its treaty committments with Israel, otherwise says Barak it is upto Egypt to decide its future government....

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Among the reasons given for Roche's bid are the need to bring the creative energies of Genentech inside Roche's own pharmaceutical division. This at a time when pharmaceutical companies are having a difficult time coming up with new drugs, without as Bill Burns the head of Roche pharmaceutical put it, a "Chinese wall" between Genentech scientists and Roche scientists. Other reasons are the opportunity for the Basel based company to capture all the profits from Genentech and achieve cost savings of $850 million annually by combining the 2 companies' clinical research teams and sales, manufacturing and administrative departments in the USA. Another reason is that the agreement with Genentech for Roche to market its drugs outside the USA expires in 2015. With Genentech's share price at a low Roche's bid at a 9% premium also appears as an attempt to get the remaining 44% of the company that Roche does not own for a low bid. It risks however the 18 year relationship betweeen Roche and Genentech, in which Genentech operated within its own scientific culture in the San Francisco area, almost like a separate company. Roche CEO Schwan, still wants to keep some of this arrangement and have Genentech drug researchers operate as a separate group, but its not clear how the cost savings and the interaction with Roche scientists would occur under the new arrangement. Genentech was founded in 1976 after a meeting between venture capitalist Robert Swan and bichemist Herbert Boyer at a bar near the University of California, San Francisco campus. It has come up with a number of successful cancer drugs such as Avastin, Herceptin, and Tarceva, and total sales are $11.7 billion, a significant part of Roche's overall sales....

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Sandhya Sharma of The Economic Times puts a spotlight on the dominant role of China in global shipping by 2005. In 1980 China had a tiny role in global shipping, with bicycles a dominant form of transportation in Beijing. By 2019 this role had expanded to dominant position in all the largest modern technology container ports with global shipping volume having more than doubled since 2005. Much of this was done by working with major providers of container port technology such as Maersk of Denmark and other European shipping companies, with imported technology playing a critical part. India is starting from basics in its effort to develop its shipping in the Indian Ocean region with its large coastline facing the Suez Canal and the eastern coastline facing Malaysia, Indonesia and Australia. This was evident during the recent "Atman Nirbhar" global shipping meeting in Vizag- the Maritime India Summit 2021. The goal is to make the next decade one of rapid development of the maritime sector to secure India's position in global shipping particularly in the Indian Ocean region. Collaboration with major European technology providers will play a key role in developing container ports to the levels required for India's future role in global shipping. Sharma discusses the visit of premier Boris Johnson in April 2021 to India to forge strong trade ties.  The Indian prime minister held virtual meetings with premiers of Sweden and the Netherlands, two major maritime nations in Northern Europe for stronger trade and technology ties. These ties are part of the broader effort by the US, UK, and European Union countries to forge strong trade and technology ties with India now that it is clear to them that new supply chain will be needed over the next decade as China disengages from that level of its trade ties with Europe, US and India. New global supply chain means new global shipping container ports and global shipping links of India, Vietnam, Malaysia, Indonesia, with the US and Europe. Looking at what happened between sometime in 1995 and 2005, and in 2005 to 2009 when the global financial crisis hit, when China went from a miniscule level of world trade to predominance. And the years of the Obama administration 2008-2016 when this simply continued without any understanding of its implications for both sides, to levels of China's predominance in world shipping that can only be considered as unbelievable. Growing at over 12% through continued use of  imported technology from Europe and the US. Looking back at what happened one sees that this made China over dependent, its economy too intertwined with Europe and the US. This also made the US and Europe over dependent on China in its supply chain. It took the pandemic and the one term Trump administration, the crisis in Hong Kong, the situation in Ladakh and India's norther border, the South China seas and Vietnam,  for both sides to realize this was not in the interest of any of the countries involved.   ...

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Pope Francis and Cardinal Parolin have an intimate knowledge of the situation in Latin America and Cuba. This made it possible for the Vatican to host the meeting of the U.S. and Cuban sides in October, to set the stage for the restoration of diplomatic relations in Dec. 2014.

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One of the opportunities of this pandemic is that it offers a chance to think anew and act anew. Where in Lincoln's words "the dogmas of the past are inadequate for the stormy present, as our case is new we must think anew and act anew." Here Vladimir Putin offers his assessment of how the pandemic calls for a fresh approach to reviving De Gaulle and other postwar European leaders vision of Europe that spanned the entire continent culturally including Russia. He accepts mistakes have been made by all sides and the title of the article by Putin is "Be Open, Despite the Past." The Russian Embassy in Germany contacted De Zeit for publication of an article by Putin, and it can be seen as part of the Russian response to president Biden's effort to build a new cooperative relationship with Russia that is in the best interests of the US, Russia, Germany, the European Union and also of India which has a cooperative relationship with Russia. There is the danger that it could be seen as reported in The Times of London and comments posted seeing it against distrust built around Ukraine and Eastern Europe. The 670 Comments in Germany on De Zeit site on the article reflect a more German perspective of being a close neighbor that suffered so much from the war that left millions dead on both sides. One German commenter says his father and grandfather were forcibly recruited to fight in France and Russia and suffered much in wartime. The occasion is the 80th anniversary of the German invasion of Russia in World War II. Some of what Putin has to say- "We hoped that the end of the Cold War would mean victory for all of Europe. It would not be long before Charles De Gaulle's vision of a unified continent would become a reality, more culturally and civilizationally from Lisbon to Vladivostock." Russia has changed, Russians see themselves as European, as part of the larger European Union, culturally and civilizationally. This is not the old Russia of the Cold War or of the Soviet period. "NATO itself a relic of the Cold War, created out of a confrontation from that time." Not objecting to NATO but to the expansion of NATO to Russia's borders. But saying this has not got us anywhere where our heart not our brain says we ought to go. Lets try again to draw different conclusions from what we have seen. Its important to think anew because "we are all confronted with the common challenges of the pandemic and its extremely serious social and economic consequences." "The entire prosperity and security of our common continent are only possible through the combined efforts of all our countries, including Russia because Russia is one of the largest European states. Wed feel our inseparable cultural and economic ties to Europe." "We simply cannot afford to carry around the burden of previous misunderstandings, hurts, conflicts and mistakes. A burden that prevents us from solving current problems. We are convinced that we all have to admit and correct these mistakes. Our common and undisputed goal is to ensure the security of the continent without dividing lines. And to create a unified space for equal cooperation and collective development in the interests of the prosperity of Europe and of the whole world." President Biden was right to think anew and act anew in Geneva, and to "disenthrall ourselves" from old ways of thinking, and for rising to the occasion. Jill Biden said of president Biden's preparation for the meeting in Geneva- "Hell, he was overprepared," and it showed Biden's genuine feeling and effort that he owed it "in the interests of Europe and the world."       ...

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Walt Mossberg, who writes the Wall Street Journal's consumer technology review section, watched Steve Jobs up-close over the years since 1997. They met one-on-one for product introductions, long discussions about the industry, and recently after Jobs illness, at his home in Palo Alto. Mossberg describes a long walk to a nearby park after Jobs had undergone a liver transplant. It provided an insight into the man Steve Jobs was. Persistent- he called Mossberg for 4-5 straight weekends during the dark days of 1997-1998 to convey his vision of Apple products or discuss aspects of reviews. Patience and optimism about the future- Jobs always maintained a positive tone and a vision of what could be in the digital revolution, and Apple's role in it in these discussions. There is the opening of the first retail store in the Washington D.C. area, and Jobs patiently handles Mossberg's incredulity about Apple and its inexperience with retail stores. And Jobs saying that he had taken a serious interest in the details- down to the translucency of the glass. There is the meeting with Bill Gates at the fifth All Things Digital Conference, when both made their appearance together for the first time and Jobs hands a cold bottle of water to Gates. By this time Jobs had already come to the conclusion- as he once said after accepting a $150 millon investment from Gates in 1997-1998- that it was no longer true that Microsoft had to lose for Apple to succeed....

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The Indian economy is expected to grow by 8.5% this year compared to 6.5% in 2009. But a major problem looms in the high inflation facing India. The poor monsoon in 2009 led to higher prices for foodgrains, lentils, and sugar. And the government's cut in the fuel subsidies will lead to more efficient use of energy, but will lead to one additional percentage point in wholesale price inflation according to the Reserve Bank of India, India's central bank. The whoesale price index in India went up by 10.5% in June from the prior year, and this after a 10.1% increase in May. Bloomberg's tracking of consumer prices in the Asia-Pacific region shows India at the top of 17 countries in inflation, and consumer prices paid by industrial and farm workers in India are shown to be increasing at 14% annually. The government is coming under criticism for not releasing more grains from its stocks to soften the impact of last year's monsoon. The Manmohan Singh government finds inflation at above 10% unacceptable and is looking for further action from the central bank. Reserve Bank of India governor Subbarao has raised rates 3 times since March 2010 to 5.5%, and a further increase is expected at its next meeting on July 27. A better harvest in September, from a better monsoon season, could help lower food prices. If this does not happen, more tightening by the central bank could hurt economic growth, putting the government in a quandary....

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Questions raised by Nicholas Kristof of the NYT on Russian hacking during the 2016 U.S. presidential election. Kristof says the implausible or far fetched idea of foreign interference in U.S. elections is not as implausible as it may appear.

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Spain's new monarch, Felipe, brings a background of being carefully trained for the new position say most people in Spain from experts to taxi drivers, and brings educational training to understand the complex economic and constitutional issues facing modern Spain. He studied law at the Autonomous University of Madrid, and did his graduate education at Georgetown University in international relations. One columnist and constitutional scholar, Carreras Serra, says the prince has helped bring focus in meetings with government officials, and can skillfully conduct discussions on difficult topics of economics or constitutional law. His abilities are sorely needed as Spain navigates through a period of economic hardship with high unemployment, especially among the young. Relating to young people will be key test for Felipe and the monarchy. He starts off with considerable goodwill as 61% of Spaniards polled have a favorable opinion of him. Two leftist parties in Spain which view the monarchy as unnecessary for Spain won 18% of the vote in European parliamentary elections in May 2014, with the two main parties of post war Spain, the Partido Popular and the Socialist party, polling below 50% (a similiar situation in UK and France), provided a signal for Juan Carlos's abdication at 76. Spain's modernization was made possible by putting behind divisions from the traumatic twentieth century conflicts, and continued economic progress will require the same degree of skill and renewed committment from all parts of the political spectrum in Spain. Because of liberal tendencies existing in a conservative culture and history, Spain's best years and progress depend on keeping the social and political fabric together without divisions, and the monarchy earning and reearning its trust -side by side with the main political parties and young people seeking a better future- to keep it this way through coming generations....

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China's new prime minister Li Keqiang makes his first foreign trip with a trade delegation for talks with Indian representatives and business leaders, showing the importance he places on India. India offers China's companies access to large opportunties in infrastructure development, and China can benefit from India in the area of information technology and pharmaceuticals. Trade is envisioned as expanding from $70 billion in 2012 to $100 billion by 2015, and expanding rapidly as the two economies grow. Economic contacts also would provide an anchor for future relations as China faces difficulties in its relations with Japan, and S. E. Asian countries, and a U.S. wary of China's capabilities. This was pointed out in the joint statement. Li Keqiang also emphasized this in an editorial page article in India's daily newspaper, the Hindu, saying India and China have "to work hand in hand," to promote Asia as "an anchor for world peace." A peaceful India-China trade and economic relationship opens the way for investment and participation in development by China alongside Japan, Germany, France, UK and the U.S. in India, as the next major source for global economic growth. This also serves to defuse Asian tensions as both economies grow, and increased contacts between cities in India and China with the twining of cities program launched in the meetings. India can use China's capabilities in infrastructure development, the two countries share the need for information sharing on lowcost solutions in healthcare, in managing urbanization, and solutions for clean water in rural areas, and use of IT solutions in development, where much remains to be accomplished through cooperation. Some of these themes are the focus of Li Keqiang in his efforts for urbanization in China. ...

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Treasury Secretary Paulson in Calcutta and Mumbai. Holds important meetings and dialogue with Chief Minister of West Bengal Bhattacharya, Chidambaram Finance Minister, reserve bank Governor Reddy, various officials on turning Mumbai into a important investment hub, and with the US-India CEO forum on infrastructure.

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Britain's banks still owe the government 100 billion pounds ($158 billion) from the bailouts that followed the 2008 financial crisis. The incentivizing of risk by pay structures and bonuses was seen as a big part of the problem. LIBOR manipulation abuses by banks are still on regulators minds. The Financial Conduct Authority and the Bank of England's Prudential Regulation Authority, have set new rules to correct the problem. Earlier EU rules limited bonuses to 100% of salary. The new FCA rules require a 3 year period for traders and risk managers have to wait 5 years for performance awards in full. Top executives have a ten year wait to be certain claw back provisions do not go into effect. Andrey Bailey at the PRA says the rule is designed so "that people in positions of responsibility are rewarded for behaviour which fosters a culture of effective risk management and thus promotes the safety and soundness of individual institutions. "

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German chancellor Angela Merkel arrived for a meeting of eurozone leaders in Brussels on October 23, 2011. She said: "I believe that now we have reached a more realistic view of the situation in Greece and that we will provide the necessary means to be able to protect the euro." Germany has insisted that bondholders take writeoffs of between 50-60% of Greek debt so that Greece would have sustainable debt. A review of Greece's debt by the European Commission in coordination with the ECB and the IMF shows that Greece's debt situation is totally unsustainable and will require a bondholder writeoff of around 60%. according to that report a 60% writeoff for bondholders would be required to bring Greece's debt below 110 percent of GDP by 2020. This has supported the German "realistic" view and Jean-Claude Juncker of Luxembourg, who heads the euro group of finance ministers stated that "we agreed yesterday (Friday, Oct. 21) that we have to have a significant increase in the banks' contribution." France also backed away from the plan it was supporting for the European Financial Stability Facility (the fund established to lend to troubled countries) to borrow from the European Central Bank, something Germany opposes. French finance minister Francois Baroin, said the issue was "not a definitive point of discussion for us,... what matters is what works." The Dutch support the Germans on these issues and Dutch finance minister, Jan Kees de Jager, said the use of the European central bank was "no longer an option." Options being considered are for the European Financial Stability Facility to offer insurance against a portion of losses on Italian and Spanish bonds....

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EU leaders meeting in Brussels agreed on Dec. 12 for a single banking supervisor for large banks in the eurozone. The European Central Bank will act as the supervisor with powers to force banks to raise capital buffers and close banks it considers unsafe. The Federal Reserve, U.S.'s central bank, has similiar powers in the U.S. Germany's finance minister Schauble says the national parliaments would be able to ratify the new supervisor by Feb. 2013, and the new supervisor should be in place by March 2013. Differences between Germany and France on which banks should come under the supervision of the ECB were resolved by giving the ECB resposibility for banks that have over 30 billion euros in assets, are over 20% of a country's GDP, or operate in at least two countries. At least 3 banks in each country in the eurozone would come under ECB supervision. The remaining smaller banks would remain under national supervision as Germany had insisted earlier. The focus now is on coming up with a common resolution authority for winding down failing banks, a function performed by the FDIC in the U.S. These are two of the three major parts of the new European financial architecture to support the euro currency. The third is deposit insurance, which is provided by the FDIC in the U.S. system. It is a major step forward and clears the way for direct recapitalization of banks in Spain and Ireland, two countries affected by having to take on responsibility for failing banks. By breaking the link between sovereign debt and failing banks the new agreements makes it possible for these countries to return to economic growth....