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Sunday, 23 June 2013

For the sake of money people will risk anything

Singapore's investigation into banks was triggered by the Libor-rigging scandal last year. 

HOT on the heels of the London interbank offered rate (Libor) rigging scandal comes the Singapore interbank offered rate (Sibor), the Singapore equivalent of the Libor rigging.

HSBC, Standard Chartered, JP Morgan Chase, Barclays and DBS are among 20 banks in which 133 traders tried to manipulate the Sibor, swap offered rates and currency benchmarks in the city-state, the Monetary Authority of Singapore (MAS) said in a statement recently.

For the sake of money, people will risk anything. In this case, Singapore is well known as a tough regulator, but they still dare to mess around with the Sibor. They are definitely asking for trouble.

According to South China Morning Post, MAS has censured banks for trying to rig benchmark interest rates and ordered them to set aside about S$12bil (RM30.13bil) at zero interest, pending measures to improve internal controls.

It is surprising that these traders have been caught with their pants down.

Regulators have cracked down on market players following the Libor rigging fiasco, which involved Barclays, UBS and the Royal Bank of Scotland paying fines of up to US$2.5bil (RM7.89bil).

This is why even when news emerged on punitive measures for the Libor rigging, very few people believed in its effectiveness.

MAS said it would make rigging key rates a criminal offence and bring supervision under its oversight.

To put this into process may take some time, while these market players exploit any loophole or weaknesses.

The fact that Asian banks are also involved in this Sibor rigging makes it even more unpalatable.

So far, Asian banks have remained strong amidst the financial crisis. Their reputation has remained largely untarnished, although most have been quite silent on their risk management.

Many of their Western counterparts have had to shed jobs massively and close down or downsize businesses, with some even having to accept taxpayers' money to survive.

At the same time, banks in the West became embroiled in the blame game, came under heavy fire from regulators and some even had to undergo a serious revamp of their business model.

Among the positive things happening among Asian banks is the recruitment of talent at a time of major job cuts in the Western banking sector.

But even that little positive aspect is going to be drowned by accusations of the Sibor rigging.

Manipulation of interest rates is a serious offence. Resulting from such collusion, some disruption may be seen in market movements, which may give rise to uncertainties.

Plain Speaking - By Yap Leng Kuen

Columnist Yap Leng Kuen reckons it is not always true that once bitten, twice shy.

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The Libor fuss!
HSBC Bank fined $1.92 billion for money laundering

The rotten heart of capitalism: interest rate-fixing 

Saturday, 22 June 2013

No privacy on the Net !

Revelations about PRISM, a US government program that harvests data on the Internet, has sparked concerns about privacy and civil rights violations. But has there ever been real privacy and security on the WWW?

 Demonstrators hold posters during a demonstration against the US Internet surveillance program of the NSA, PRISM, at Checkpoint Charlie in Berlin, Germany, ahead of US President Barack Obama’s visit to the German capital.

IMAGINE a time before email, when all your correspondence was sent through the post. How would you feel if you knew that somebody at the post office was recording the details of all the people you were corresponding with, “just in case” you did something wrong?

I think quite a few of you would be upset about it.

Similarly, some Americans are furious over revelations made about a system called PRISM. In the last few weeks, an allegation has been made that the US government is harvesting data on the Internet by copying what travels through some of its Internet Service Providers.

The US Director of National Intelligence has said that PRISM “is not an undisclosed collection or data mining program”, but its detractors are not convinced that this doesn’t mean no such program exists.

I think there are mainly two kinds of responses to this revelation: “Oh my God!” and “What took them so long?”.

The Internet has never really been secure. Because your data usually has to travel via systems owned by other people, you are at their mercy as to what they do with it. The indications are that this is already being done elsewhere.

Countries such as China, India, Russia, Sweden and the United Kingdom allegedly already run similar tracking projects on telecommunications and the Internet, mostly modelled on the US National Security Agency’s (unconfirmed) call monitoring programme. For discussion, I’ll limit myself for the moment to just emails – something that most people would recognise as being private and personal.

I find many people are surprised when I tell them that sending email over the Internet is a little bit like sending your message on a postcard. Just because you need a password to access it, doesn’t mean it’s secure during transmission.

The analogy would be that your mailbox is locked so only you can open it, but those carrying the postcard can read it before it reaches its final destination. Of course, there are ways to mitigate this. One has to be careful about what one put in emails in the first place. Don’t send anything that would be disastrous if it were forwarded to someone else without your permission.

You could also encrypt your email, so only the receiver with the correct password or key could read it, but this is difficult for most end users to do. (For those interested in encrypting emails, I would recommend looking at a product called PGP.)

The analogy holds up for other Internet traffic. It’s easy to monitor, given enough money and time. And as easy as it is for the Good Guys to try to monitor the Bad Guys, it’s just as easy for the Bad Guys to monitor us hapless members of the public.

But who do we mean by the Bad Guys? Specifically, should the government and law-enforcement agencies be categorised as ‘Bad Guys’ for purposes of privacy? Generally, the line oft quoted is “if you have nothing to hide, then you have nothing to worry about”.

Yet, I think we all accept that there should be a fundamental right to privacy, for everybody from anybody. An interesting corollary to being able to express your thoughts freely is that you should also be able to decide when and how you make them public.

The fault in relying on organisations that say “trust us” isn’t in the spirit of their objectives, but in how the humans in them are flawed in character and action.

An example quoted regularly at the moment is how the FBI collected information about Martin Luther King because they considered him the “most dangerous and effective Negro leader in the country”.

One way of defining the boundaries are by codifying them in laws. For example, the Malaysian Personal Data Protection Act prohibits companies from sharing personal data with third parties without the original owner’s consent.

However, this law explicitly does not apply to the federal and state governments of Malaysia. Another clause indicates that consent is not necessary if it is for the purpose of “administration of justice”, or for the “exercise of any functions conferred on any person by or under any law”.

In relation to the revelations of PRISM, several questions come to mind: Can Internet traffic (or a subset of it) be considered “personal data”? Is it possible for government agencies to collect and store such data without your consent?

And if so, what safeguards are there to ensure that this personal data is accurate, is used correctly and is relevant for storage in the first place?

This should be a sharp point of debate, not just in terms of which of our secrets the government can be privy to, but also of which of the government’s information should be readily accessible by us.

True, there is so much data out there that analysing it is not a trivial task. However, companies such as Google are doing exactly that kind of work on large volumes of unstructured data so that you can search for cute kittens. The technology is already on its way.

Perhaps I am being over-cautious, but it seems a bit fantastical that people can know your deepest and darkest secrets by just monitoring a sequence of 1’s and 0’s. But, to quote science fiction author Phillip K. Dick, “It’s strange how paranoia can link up with reality now and then”.

Contradictheory
By DZOF AZMI

> Logic is the antithesis of emotion but mathematician-turned-scriptwriter Dzof Azmi’s theory is that people need both to make sense of life’s vagaries and contradictions. Speak to him at star2@thestar.com.my.

Related post:

US Spy Snowden Says U.S. Hacking China Since 2009

Friday, 21 June 2013

Taikonauts teach from space

Historic lecture broadcast live to millions of students all over China.

Students gathered in a school in Beijing ask Chinese astronaut Wang Yaping questions as she delivers a lesson from the Tiangong-1 space station  



ABOUT 1,000 Form 4, 5 and 6 students from the Beijing No 2 Middle School were glued to the projection screen in their classrooms to watch the historic lecture broadcast live from space together with millions of pupils and students in China.

Many students from the school could not take their eyes off the 40-minute physics lesson in which three Chinese taikonauts on board the Tiangong-1 orbiter first showed how they meditated airborne and measured their weight using a special scale, designed based on the Newton’s second law of motion, in a gravity-free environment.

Wang Yaping, China’s second female taikonaut and the teacher in charge of the lecture, then demonstrated how a gyro in a high-speed rotation motion could actually maintain the position of its axis in space like that on Earth.

She pushed a static gyro in the air and then spanned another gyro. The static gyro rolled forward but the rotating gyro kept its axis intact.

She noted that the fixed axis concept of the high-speed rotating gyro has been widely used in the aerospace field, saying that a wide range of gyroscopes had been installed in the Tiangong-1 orbiter to measure its flight pattern accurately.

Fifth former Wu Tong said she was especially fascinated with the experiment conducted by Wang to examine the movement of a small ball tied with a string to a holder fixed on a metal plate.

“Previously, we have been taught on the theory and not the practical side of it. It is rather difficult to simulate a vacuum environment.

“In class, our teacher used to tell us that the ball would move in a circular motion (when one pushed it) and would not stop. Today, we finally saw it for ourselves,” she said.

To many students, another highlight of the lecture was the water ball experiment that explained how zero-gravity magnified the surface tension of water.

Wang made a water film on a metal ring by inserting the ring into a water bag. Then she added more water onto the ring to form a thicker water film and eventually a water ball.

The water ball miraculously did not break even when commander of the crew Nie Haisheng used an injection needle to extract the bubbles inside the water ball.

After that, Wang moved closer to the water ball and said: “Look at this water ball. Does it look like an inverted microscope? Through it, you can see my inverted image!” At this moment, the classrooms were filled with thunderous applause.

Wu described the experiment as “magical and ingenious”.

“The experiment was well designed. They also injected gas and coloured liquid into the water ball to show us the increasing surface tension of the water,” she said.

Another fifth former Gu Xu said: “We have just studied this topic on surface tension. It is quite amazing to see how the coloured liquid spread all over the water ball.”

Apart from a total of five experiments, the taikonauts also took questions from four students who were attending the lecture at the High School Affiliated to Renmin University in Beijing.

On the presence of space debris, Wang said they had not spotted any space debris since they entered the orbit but they do exist.

“The number is quite big but the possibility of the debris hitting the spacecraft is rather small. If they do collide with the spacecraft, the consequences could be disastrous.

“That’s why before embarking on our mission, we had conducted an analysis of space debris and taken preventive measures to protect the Tiangong-1 orbiter,” she said.

“Did you see any UFO?” asked a Standard Four pupil amid laughter from the rest of the students.

Wang said that through the spacecraft window they could see the beautiful colours of the Earth, the moon and stars, but no UFO.

Wu said the lecture was very meaningful for her to widen her knowledge of space science.

She said she was proud of the Chinese taikonauts for conducting the nation’s first lecture from space, after other such feats by space exploration powerhouses like the United States and Russia.

Gu said the gravity-free environment in space provided scientists with new ideas and it was important for China to take the lead in exploring space and acquiring its technology.

“The research and development in science has no limits. When we are in command of everything on the land and in the sky and sea, space will be our new frontier,” he said.

MADE IN CHINA BY CHOW HOW BAN

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