Professor: Breaking up big bank monopoly highlight of China’s financial reform

(People’s Daily Online) 20:31, March 22, 2014

Chinese Bank of China

Beijing, March 22 (People’s Daily Online) — To break up big bank monopoly will be the highlight of China’s financial reform in 2014, professor Li Daokui told People’s Daily Online in Beijing, March 22, 2014.

Li Daokui, a professor with School of Economics and Management of Tsinghua University, has attended the “China Development Forum 2014” at the Diaoyutai State Guesthouse in Beijing. Continue reading “Professor: Breaking up big bank monopoly highlight of China’s financial reform”

Bank of England mulls negative interest rates

Deputy Governor floats plan that could mean new charges for customers

Ben Chu

Tuesday, 26 February 2013

People across Britain could see their savings hit or face new charges on their current accounts after a senior official at the Bank of England proposed the “extraordinary” measure of imposing negative interest rates on banks.

Deputy Governor Paul Tucker said the idea of charging high street banks to store money centrally, rather than paying them interest, should be explored as a way of easing the flow of credit to the stagnant economy.

“I hope we will think about whether there are constraints to setting negative interest rates,” he told MPs on the Treasury Select Committee. Although such a move has been discussed by the Bank of England in the past, Mr Tucker’s comments are the strongest indication yet that it is under serious consideration.

It is hoped that the prospect of negative interest rates would encourage banks to lend more – but analysts warned that it would dent banks’ profitability and that the sector would probably respond by cutting interest rates on savings accounts, or even introducing current account charges.

“It’s very clear this would be expected to bring downward pressure on the rates savers can expect, pushing them down towards zero,” said Malcolm Barr of JP Morgan.

It is thought that the banks would seek to make a profit by lending the funds out to companies and households. The Swedish central bank imposed negative interest rates in 2009 with this goal in mind.

But any move that further eroded the returns of savers, even indirectly, would face a backlash. Savings rates paid by high street banks have fallen to record lows since the Bank slashed its main policy rate to 0.5 per cent in March 2009 to support the freefalling economy. The average rate on an easy access savings account today stands at around 2 per cent – less than the annual inflation rate of 2.7 per cent.

Savers have also complained of being squeezed indirectly by the Bank’s Funding for Lending Scheme, which has provided high street banks with new sources of cheap funding, removing the pressure on them to compete for deposits by offering attractive rates.

Another concern is that the Bank’s £375bn Quantitative Easing scheme has pushed down the value of annuities – although the Bank has pointed out that the money printing programme has also bolstered the value of pension pots by boosting share prices, leaving people, ultimately, no worse off.

Despite floating the idea of negative interest rates, Mr Tucker was careful to stress that no decision had been made. “It would be an extraordinary thing to do and it needs to be thought through carefully,” he said. Mr Tucker, who was an unsuccessful candidate to succeed Sir Mervyn King as the next Governor in July, added: “[It’s] not something anyone should clutch on to as the answer to the universe.”

Mr Tucker’s idea was described as a “panic measure” by Ros Altmann, an expert on pensions. “Interest rates are already negative for savers,” she said. “It’s hard to see why this would make a hoot of difference to lending when rates at 0.5 per cent haven’t.”

Andrew Sentence, a former member of the Monetary Policy Committee, said the Bank was still looking for monetary policy to deliver things that it was simply unable to achieve. “When you look at these options – just as we’re discovering with the Funding for Lending Scheme – you run into other problems, particularly for savers.”.

Samuel Tombs of Capital Economics said there were better ways for the Bank to boost lending, such as enhancing the generosity of the Funding for Lending Scheme.

However, not all financial analysts were dismissive of Mr Tucker’s idea. “Negative interest rates will increase the pressure to lend and the mortgage market would be a major beneficiary of any such action,” said Ray Boulger of independent mortgage advisers John Charcol.

Last year the International Monetary Policy Committee proposed the Bank should look at taking its main policy rate below 0.5 per cent in order to boost the economy. But monetary policymakers rejected this idea, arguing that it would damage the profitability of building societies.

Under the hood of recent DDoS Attack on U.S. Banks

Author : Wang Wei on 1/10/2013 02:48:00 AM
Incapsula security study reveals how a simple neglect in managing the administrative password of a small UK site was quickly exploited by Botnet shepherds operating obscurely out of Turkey to hurl large amounts of traffic at American banks.
Under the hood of recent DDoS Attack on U.S. Banks
If you’ve been following the news, you are probably aware of a wave of DDoS attacks that recently hit several major U.S. banks.  Izz ad-Din al-Qassam, a hacker group that claimed responsibility for these attacks, declared them to be a retaliation for an anti-Islam video that mocked the Prophet Muhammad and a part of the on-going “Operation Ababil.”
As the reports of the attack started to roll in, Incapsula security team was able to uncover one of the secret foot-soldiers behind the assault: a compromised general-interest UK-based website that was trying to hurl large chunks of junk traffic at three of the world’s largest financial institutions (PNC, HSBC and Fifth Third Bank).
pnc hsbc 53 bank ddos
At On the eve of the attack, this website suddenly became a focal point of a rapidly -increasing number of security events, caused by numerous requests with encoded PHP code payload. Incapsula was able to intercept these requests and traced them back to a backdoor shell that was used to hijack the site.
The backdoor was installed before the website on-boarded Incapsula, and yet the cause of security breach was clear. The administrative password was…you guessed it: admin / admin.
encoded bank ddos
After decoding the incoming PHP requests, the security team could clearly identify them as DDoS attack commands, originating from a Turkish web design company website which was used as a remote Botnet C&C. From the looks of it, the Turkish website was also compromised and used as an additional buffer between the real hacker and its U.S. based targets.
Further investigation showed that the UK website was a part of a Botnet for Hire which was working in “shifts” to produce HTTP and UDP flood attacks. As Incapsula team continued to block and monitor incoming DDoS commands, they saw that the list of targets went beyond American banks, also including e-commerce and commercial websites from several other countries.
Incapsula published the full description of the DDoS attack in the company blog, concluding it by saying that this was just another demonstration of how security on the Internet is always determined by the weakest link. Simple neglect in manage the administrative password of a small UK site, can very quickly be exploited by Botnet shepherds operating obscurely out of Turkey to hurl large amounts of traffic at American banks.
Incapsula Security Analyst, Ronen Atias said: “This is a good example of how we are all just a part of a shared ecosystem where website security should be a shared goal and a shared responsibility.

About Author:

chin has been a security consultant for the government, financial securities, banks. Working as Researcher with The Hacker News. He is also a renowned speaker on the subject of ‘Exploit Writing’. He   is Malware analyst, Freelancer Penetration Tester, Cloud Computing,   Mobile application & Software Developer.  He has worked professionally in research, and in the practical implementation of technique. Follow him @ Twitter | | Email

Millions affected after cyber attack on HSBC

HSBC’s websites across the world have been hit by one of the largest cyber attacks to strike a bank in an attack that left millions of customers without access to online services.


An unknown group launched a so-called “denial of service” attack on Britain’s largest bank on Thursday evening, crashing web-based services for about seven hours. Photo: ALAMY


Harry Wilson

By , Banking correspondent

9:54PM BST 19 Oct 2012

An unknown group launched a so-called “denial of service” attack on Britain’s largest bank on Thursday evening, crashing web-based services for about seven hours.

At its peak, HSBC was deluged with internet traffic 500 times its normal level, five times higher than the amount of traffic that hit the bank in a similar attack earlier this year.

A spokesman for the bank said full internet services were restored by 3am yesterday and claimed that no customer data had been compromised as a result of the attack.

“We are co-operating with the relevant authorities and will co-operate with other organisations that have been similarly affected by such criminal acts,” HSBC said. “We apologise for any inconvenience caused to our customers throughout the world.”

US financial group Capital 1 is also understood to have been hit by a similar denial of service attack at the same time as HSBC.

Several parties have claimed responsibility for the attacks, which have been linked to Islamic groups protesting against controversial film The Innocence of Muslims, which they want removed from the internet.

Businesses increasingly see cyber attacks as one of their biggest threats given the migration of consumers online.

The Government issued advice to British business leaders last month on how to protect themselves from such threats.

Deutsche Bank executive ‘bared his teeth, adopted a martial arts stance and snarled at officers in middle of traffic’ amid claims ‘he was high on bath salts’

  • Deutsche Bank  Managing Director of Media Brian Mulligan claims he was assaulted by two LAPD  officers who wanted to steal $5,000 cash from him
  • Officers reported  Mulligan appeared ‘under the influence’ and ‘out of it’
  • Mulligan suffered  several facial injuries from altercation and hospitalized
  • Executive,  53, suing LAPD for $50m in damages

By Beth Stebner

PUBLISHED:17:03 EST, 23  August 2012| UPDATED:20:30 EST, 23 August 2012


Altercation: Vice chairman of Deutsche Bank Brian Mulligan snarled at LAPD officers and struck martial arts poses while appearing 'out of it'Altercation: Vice chairman of Deutsche Bank Brian  Mulligan snarled at LAPD officers and struck martial arts poses while appearing  ‘out of it’

A Deutsche Bank director ran through traffic  and struck martial arts poses during a bizarre altercation with Los Angeles  police, authorities said.

Brian Mulligan, 53, appeared ‘out of  it’  after officers responded to 911 calls about a man trying to break into  people’s cars at a drive-thru in Highland Park.

Mulligan seemed to be ‘under the influence  based on his behavior’, Lieutenant Andrew Neiman told MailOnline.

CBS Los  Angeles,  citing a police seen exclusively by the  station, reported that officers were told by Mulligan he was high on marijuana and had ingested ‘White Lightning,’ another term for bath salts, and had not slept for four days.

The bank executive was spotted wandering in a  confused state by passers-by on May 15, 2011 at around 10.40pm.

Due to his erratic behavior, officers called  a senior officer to the scene, who carried out a drug evaluation.

There was no definitive evidence of a  controlled substance that the LAPD test for, according to the police spokesman.

Mulligan told officers he was ‘tired and  exhausted’ and asked to be escorted to his car so he could collect belongings to  go to the local Highland Park  Motel.

When they reached the vehicle, there was a  large amount of money in the car, causing officers to call for back-up as is  protocol. Mulligan was then left at the motel by officers without further  incident.

Later that night at around 1am, the same officers who dropped Mulligan off at the  motel responded to reports of a man trying to get into vehicles.


Scroll down  for video

Lawsuit: The bank magnate is suiting the LAPD for $50million after the altercation left him with nasal fractures and other injuriesLawsuit: The bank magnate is suiting the LAPD for  $50million after the altercation left him with nasal fractures and other  injuries

They saw Mulligan in the street, running into  oncoming traffic. Officers called him  back on to the sidewalk, but rather than  comply, Mulligan assumed a‘combative stance’, striking martial arts  poses.

At that point, officers were forced to subdue  Mulligan adding that a ‘use of force then occurred’ before he was arrested.

The businessman’s injuries required him to be  admitted to hospital for facial lacerations and as many as 15 nasal fractures.

Earlier this month Mulligan sued the LAPD for  $50million, saying that during the 2011 encounter he was battered by the  police.

According to the Wall  Street Journal,  the Deutsche Bank executive further  alleged that the LAPD officers in question were holding him hostage at the motel  where he was staying as a means to steal the $5,000 he had on his person at the  time.

He said, she said: Police officers said they found Mulligan walking near this Los Angeles-area Jack-in-the-BoxHe said, she said: Police officers said they found  Mulligan walking near this Los Angeles-area Jack-in-the-Box

Held hostage? Police say that he requested to be taken to the Highland Park Motel to rest, but his lawyer claims he was held hostage thereHeld hostage? Police say that he requested to be taken  to the Highland Park Motel to rest, but his lawyer claims he was held hostage  there

Neither Mulligan nor Deutsche Bank  immediately returned MailOnline’s requests for comment.

Mulligan’s lawyer Michael Flanagan told the  Journal that the officers stopped him  on a sidewalk in Los Angeles and  discovered $5,000 cash in his car.

At that point, Mr Flanagan said that his  client was driven to a hotel and told he would be killed if he attempted to  leave.

When, after a few hours, Mulligan did try to  leave, Mr Flanagan said that police found him and beat him  mercilessly.

According to TMZ,  Mulligan was booked for resisting arrest  as well as interfering with law enforcement.

The gossip website also reported that the  Deutsche exec suffered facial lacerations and as many as 15 nasal  fractures.

Lt Andrew Neiman said  the Force Investigation Division has  opened an inquiry into Mulligan’s arrest, adding that it will likely be a year  before it is completed.

According to the Wall Street Journal, the  magnate has been a financial backer in the entertainment industry, having worked  at Fox Television and Universal Pictures

Read more: