Moody's downgrades 15 major banks: Citigroup, HSBC ...

Citigroup and HSBC were among the banks downgraded

The credit ratings agency Moody's has downgraded 15 banks and financial institutions.

UK banks downgraded include Royal Bank of Scotland, Barclays and HSBC.

In the US, Bank of America, Citigroup, Goldman Sachs and JP Morgan are among those marked down.

BBC business editor Robert Peston reported on Tuesday that the downgrades were coming and said that banks were concerned as it may make it harder for them to borrow money commercially.

"All of the banks affected by today's actions have significant exposure to the volatility and risk of outsized losses inherent to capital markets activities," Moody's global banking managing director Greg Bauer said in the agency's statement.

The other institutions that have been downgraded are Credit Suisse, UBS, BNP Paribas, Credit Agricole, Societe Generale, Deutsche Bank, Royal Bank of Canada and Morgan Stanley.

Moody's said it recognised, "the clear intent of governments around the world to reduce support for creditors", but added that they had not yet put the frameworks in place that would allow them to let banks fail.

Some of the banks were put on negative outlook, which is a warning that they could be downgraded again later, on the basis that governments may eventually manage to withdraw their support.

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The most interesting thing about the Moody's analysis is that it, in effect, creates three new categories of global banks, the banking equivalent of the Premier League, the Championship and League One”

Robert Peston Business editor

• Read more from Robert

In a statement, RBS responded to its downgrade saying: "The group disagrees with Moody's ratings change which the group feels is backward-looking and does not give adequate credit for the substantial improvements the group has made to its balance sheet, funding and risk profile."

The BBC's Scotland business editor Douglas Fraser tweeted: "Cost of RBS downgrade by Moody's: having to post an estimated extra £9bn in collateral for its debts."

Of the banks downgraded, four were cut by one notch on Moody's ranking scale, 10 by two notches and one, Credit Suisse, by three notches.

"The biggest surprise is the three-notch downgrade of Credit Suisse, which no one was looking for," said Mark Grant, managing director of Southwest Securities.

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A durian tree became a thorny issue in Singapore flat residents!

Root of a problem: A resident looking at the durian tree that has become a bone of contention among neighbours in Moulmein Road, Singapore.

SINGAPORE: A durian tree in Moulmein Road, Singapore, became a thorn in relations among residents of a HDB block of flats nearby when fights ensued over who could claim the fruits.

The Straits Times reported that the dispute began three years ago when a resident, known only as Chua, said he was just looking at the tree when another resident, R. Lim, shouted at him to stay away from “his tree”.

He claimed his father planted the tree 20 years ago.

Last week, resident Lily Wee called police after Lim, a businessman in his 50s, shouted expletives at her when she wanted to take a durian.

“There are three kinds of people in this world – the good, the bad and the ugly. He belongs to the last group,” said Wee, calling Lim a “durian bully”.

Residents would wait under the tree each fruiting season, sometimes for hours, to take the ripened fruits.

“We can always get fruit from Geylang, but we choose to wait here to kio liu lian,” said a resident known as Patrick, referring to a Hokkien phrase expressing the thrill of getting free durians.

About 100 durians could be harvested each year from the single tree, which first bore fruit seven years ago.

Frustrated over the fiasco, some residents had asked for the tree to be chopped down, but the Moulmein-Kallang municipal council had let the tree be.

It will, however, put up two notices stating that the neighbourhood trees belong to the Housing Board and are maintained by the town council.

Resident Peter Yang approved of not chopping the tree, and said neighbours had begun to bond as they queued and chatted while waiting for the fruits to fall.

“Despite a little bit of nonsense, you still get some good out of it,” he said.

- The Star/Asia News Network

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US apologizes for Chinese Exclusion Act

Rep. Judy Chu, D-California, sponsored a resolution that apologized for the passage of the Chinese Exclusion Act



 AFP © Enlarge photo

WASHINGTON (AFP) - The US House of Representatives unanimously passed a resolution Monday decrying a law -- more than a century old -- that prevented Chinese people from immigrating to the United States.

The resolution, approved by the Democratic-led Senate in October, voices 'regret' for the Chinese Exclusion Act of 1882, which banned Chinese workers from further immigration and barred existing residents from naturalization and voting.

The Act lasted for roughly six decades, and marked the first and only time the United States federal government explicitly rejected an immigrant group on the basis of their origin.

"Today (is) a rare moment in history for the Chinese American community," said Representative Judy Chu, the Democratic head of the US Congressional Asian Pacific American Caucus (CAPAC).

Chu proposed the legislation and reached an agreement with the rival Republican Party to bring the resolution to a vote today.

"Today, the House made history when both chambers of Congress officially and formally acknowledged the ugly and un-American nature of laws that targeted Chinese immigrants."



Census figures show that over 100,000 ethnic Chinese lived in the United States around the turn of the 19th century. Many were recruited from China "to work as cheap labor to do the most dangerous work laying the tracks" on the transcontinental railroad, said Congressman Mike Honda, immigration task force chair of the CAPAC.

Honda added that the early Chinese-American immigrants "strengthened our nation's infrastructure, only to be persecuted when their labor was seen as competition and the dirtiest work was done."

The US Congress only repealed the Exclusion Act after Japanese wartime propaganda cited the law to question China's alliance with the United States.

"To have moral authority around the world, we must speak out against prejudice at home," said House Democrat leader Nancy Pelosi, who represents San Francisco, a major center of the Chinese-American community since some of the earliest immigrants arrived in the 1800s.

"Though this legislation cannot erase the deeds of the past, it reiterates our commitment to equal rights for all Americans, regardless of race, now and in the future," Pelosi added.

When the bill voicing regret for the 1882 Act passed in the Senate, it was made clear that legislation would not open the way for compensation claims from Chinese-American families affected by the act.

Some 14.7 million people, 4.8 percent of the total US population, self-identified as Asian on the 2010 Census.

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