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The trial of 12 Catalan leaders for a botched secession attempt begins in Spain's Supreme Court. It is being broadcast live on Spanish television. 

The minority government of prime minister Pedro Sanchez could be toppled on Feb. 13, 2019 as parliament votes on the national budget. Sanchez needs the votes of Catalan legislators in Congress to pass the budget vote. Failure to win support could lead to a fall of this minority government and fresh elections, continuing the political uncertainty in Spain.

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Important questions about lawsuits against drug manufacturers that are facing Justices of the Supreme Court. Justice Breyer put up a question that the 12 people on a jury see only the peple the drug has hurt no the people who depend on it and who it has helped. Is the FDA as agency better able to determine or should the lawsuits be allowed?

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In private conversations, Paul Volcker has advised administration officials, that in implementing the Volcker Rule, regulators should follow the practice in money laundering laws. There the government bans a certain behaviour, and then the burden is on the banks to screen for red flags and to ensure compliance. His advice is to ban banks from trading with their own funds if they benefit from any kind of government guarantee. Banks would be required to police their own actions, and the Fed examiners ensuring they are in compliance. The recently passed regulatory reform bill left a lot to the regulators, who have to fill in the blanks. Volcker's concern is that narrow rules would invite gamesmanship from the banks to evade the intent of the law. At one Congressional hearing Volcker suggested a Potter Stewart type of approach- Stewart as Supreme Court Justice said about pornography: "I know it when I see it." For Volcker bankers know what proprietary trading is and is not, and he does not want to let bankers tell anybody anything different. Thw new Financial oversight Stability Council is charged with the task of coming up with a course of action by January 2011, and then writing the rules by October 2011. The fear among a group of 18 senators is that bankers will weaken the Volcker rule protections. A letter pointing this out was sent by the group to the Oversight Council last week....

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Matt Bai's interview with Mario Cuomo, former governor of New York. The conversation covers different topics: Mario Cuomo's speeches, the affinity and the dissonance with his son Andrew Cuomo's idea of liberalism and his own, about the kind of triangulation practiced by Clinton and Obama, and his sense of being a liberal in the old fashioned way. The talk goes to a speech Mario made about helping the poor without crushing the middle class and the sense today that the task ahead is about helping the middle class without crushing the poor. Mario mentions a conversation with Bill Clinton about an offer to join the Supreme Court. Mario said he told Clinton he would not be able to debate and talk freely about his views if he accepted that position. Considering Mario Cuomo's speeches this is sincere. He is torn between the struggles experienced by his father and others of the most ordinary working men and women of the period between the wars, the idea that there had to be a better way, and the difficulties of making that better way work in the real world in the postwar period. There is a sense that one has been forgotten or is now out of place- the dissonance with the times- when a serious contribution was made at one time and place that will always be there. One generation taking over from the last, adapting in its own way, the values timeless....

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New Jersey's Supreme Court rules that the facts vary in each case so there is no justification for class action suits. It takes away one more hurdle from Merck as it tries to come back from the Vioxx crisis which lead to 27,000 law suits being filed against it. Over 1 billion in legal fees already incurred by Merck and its has reserves for $800 million more.

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The Hindu editorial on Nicola Sturgeon's resignation says she had taken controversial positions on using the next UK elections as a referendum for independence when the UK's Supreme Court ruled Westminster's agreement was needed for any referendum. The transgender issue comes at a time when the UK is suffering from a severe cost of living crisis, with the UK government of the Conservatives not doing as much as Germany and other EU countries to help people with the cost of living. Clearly Ms. Sturgeon failed to focus on the important issues for Scotland and the UK.

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India's Supreme Court ruling on the Delhi Government vs the Union of India case says that the power lies with the elected representatives not the Lieutenant Governor in India's democracy. For Delhi it is the elected government in which authority is vested. At the same time the ruling says these powers are not "absolute." The case arises from the conflict between the AAP Party and chief minister Kejriwal in Delhi with the central government appointed Lieutenant Governor.

Mr. Kejriwal conducted a protest at the LG Governor's offices because of this conflict.

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The Indian government pushes back implementation of General Anti-Avoidance Tax Rules to April 1, 2013. India's budget deficit was 5.9% of GDP in the year ended March 31, 2012, and is increasing. The current account deficit - difference between exports and imports of goods and services- is about 4% of GDP, and is also increasing.

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Alexandra Stevenson provides this exceptional account summarizing the reasoning in the minds of Argentine negotiators and holdout bondholders over a debt dispute remaining from the 2001 Argentine debt crisis and default. Over a decade later the repercussions of Argentina's 2001 debt crisis and default are still taking new twists ant turns. Holdout bondholders won in U.S. courts and Judge Griesa ordered Argentina to make full payment demanded by holdout bondholders. Argentina responded by depositing $539 million in Bank of New York Mellon as instalment payment to exchange bondholders. Judge Griesa responded by ruling that if Bank of New York Mellon made the payment it would be in contempt of court. Griesa also called for court mediated negotiations between Argentina and the holdout bondholders to come up with an agreement. Argentina and hedge fund holdouts negotiated in July 2014 but talks faltered. Legal experts say that if Argentina makes an agreement with holdout bondholders led by NML Capital which is asking for $1.5 billion, the risk is that the exchange bondholders could also ask for better terms. After the 2001 crisis following which Argentina defaulted on its debt, agreements were reached for bondholders to be paid about 25 cents on the dollar. Not all bondholders agreed, the bondholders who agreed are called the exhange bondholders, and the ones holding out holdout bondholders. From the Argentine government's point of view the risk of reaching agreement with the holdouts suing Argentina is that the other holdout bondholders not represented in the lawsuit could also ask for the same terms, and Argentina would have to pay all the holdouts costing it $15 billion. Risks if Argentina allows it to go into default are that exchange bondholders would come together to pressure the Argentine government to make a full payment of their discounted bonds quickly. This would cost Argentina payment of as much as $28.7 billion, according to JPMorgan estimates, under the right to "accelerate" payment if Argentina is considered as having missed a July 30, 2014 payment deadline. Legal experts say Argentina has to weigh this risk, which may or may not occur depending on the exchange bondholders taking such action, against the risk of having to pay out $15 billion to all the holdouts. Paying all holdouts would be politically very unpopular in Argentina, posing political risks for the socialist Peronist Kirchner government, already facing difficulties with the trade unions and the stronger opposition from centrist parties in Buenos Aires province. Default would affect Argentine access to capital markets, which is already highly restricted. Yet because Argentina has made the payment to Bank of New York Mellon, blocked by Judge Griesa, the nature of this default would be different. A worse case scenario for Argentina's Kirchner government is reopening negotiations with exchange bondholders for higher payment on debt than the 25 cents on the dollar already agreed to. Argentina faces an acute cash shortage with international reserves of only about $29.5 billion in May 2014, and a slowing agricultural export dependent economy. This is why the prospect of a technical default is being treated with relative calm in Buenos Aires....

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The difficulties faced by U.S. presidents in their second term, making the second term look different from the first, with difficulty getting talented individuals to join and stumbles in policy or actions. The stumbles by Roosevelt in cutting spending at the wrong time, in trying to stack the Supreme Court with his choices as justices, the scandals of Watergate and the the Lewinsky affair for Nixon and Clinton, the accumulating financial bubble under George W. Bush and deregulation failures, and a similar lack of progress for other presidents. A particular problem in the U.S. is the election cycle that makes the incumbent president a lame duck by the beginning or middle of the third year as the country moves on. By the third year of Truman's second term the country had moved on and the fatigue effects were felt in the country. By the time he leaves a president is quickly forgotten- president Adams quietly left town as Jefferson took over with stark differences between the two; Truman quietly left for Independence, Missouri, as Eisenhower took office; Hoover left office to go into obscurity and a sense of failed policy as Roosevelt took over. Woodrow Wilson was very sick during the last years of his second term a fact not known to the rest of the country. In most situations the world and the country has moved on, the aura of an incoming president in his first term is gone. Most of the successor policies to shape the future, organization and creating a talented core of support are taking place during the second term and lame duck period of the existing president, with a new vision of the future being shaped and new realities anticipated....

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Einer Elhauge, professsor of law and founding director of the Petrie-Flom Center in Health Law Policy at Harvard University, says there are limits to Congressional powers under the Commerce clause such as enacting a law requiring Americans to eat broccoli. If the health care law required all Americans to subject themselves to health care this would be the case. But the law only requires all to buy insurance so that insurance can cover the costs of healthcare for all. He points to the "necessary and proper clause" as also authorizing the health care mandate. That clause gives Congress the power to pass laws that are "rationally related" to execution of constitutional powers, such as criminalizing the interference with mail, on the basis of the constitutional power to setup post offices. In this case the health care law mandate is related to the constitutional power to regulate premiums and prohibit rejecting the sick, says Elhauge.