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To: RealMuLan who wrote (26340)	3/25/2005 6:58:11 PM
From: RealMuLan	Respond to of 116555

Russia says mafia threatens security of state 23 Mar 2005 13:01:44 GMT Source: Reuters By Oliver Bullough MOSCOW, March 23 (Reuters) - Russian mafia groups have infiltrated almost every branch of the economy and are now a major threat to state security, the interior minister said on Wednesday. More than 100 organised criminal groups had tentacles stretching across regional borders and often far beyond the borders of Russia itself, Rashid Nurgaliyev told parliament. "Organised crime is one of the main threats to the country's national security," he was quoted by Itar-Tass news agency as telling members of the Federation Council upper house. Russia's mafia groups sprang up with the 1991 collapse of the Soviet Union when they waged vicious wars over territory, killing rivals. They have since spread abroad, and are reputed to control crime in cities all over the world. Although gangland killings became less frequent by the late 1990s, an assassination attempt on electricity tycoon Anatoly Chubais last week was a reminder of the dangers faced by top businessmen in Russia. "We can say that criminal groups in one way or another have infiltrated most of the sectors upon which the economy depends," Nurgaliyev said, according to Russian news agencies. "Above all this is characteristic of the metals and forest sectors, natural resources production, the intellectual property sector and alcohol and tobacco production." President Vladimir Putin's government has long pledged to crack down on crime and corruption. But criminals have forged close links with state officials and critics say the government has failed to rein in an economy ruled by crime. Although tax reform has made business less likely to exist outside the law, bureaucracy and corrupt officials mean many enterprises operate at least partly illegally to avoid excessive payments to the state. Nurgaliyev said drug-trafficking and extremist groups had become so powerful the government should be allowed to confiscate their assets to act as a deterrent. "I can raise the example of the Petrov criminal group, from which was seized more than four tonnes of drugs worth more than $45 million," Nurgaliyev said on NTV television. "The financial assets of the group came to around $100 million, but the maximum fine that the court could impose was one million roubles -- which is only 0.03 percent of the assets of the group's members," he said. He said the police would have to fight harder to prevent criminals cementing their place in society. One such gang had already started financing films to present a positive image, he said. alertnet.org ======================= Things in China maybe bad, but still much better than in Russia<g>

To: RealMuLan who wrote (26340)	3/26/2005 9:58:52 AM
From: russwinter	Read Replies (3) \| Respond to of 116555

<So as the end of 2004, only 3.7% of its asset is bad debt> Is that from the China Orwellian Ministry of Propaganda? I will refer you to Roubini's comment. CCB (and the others) will need a heck of a lot more than $22 billion (or $45 billion), to restore solvency. I'll bet the majority of their loans are bust, and it will get even worse when the real estate Bubble unravels: Further, the banking and financial system is still in shambles and the latest China Construction Bank (CCB) scandal - with the head recently stepping down for alleged corruption - signals that the financial system has still very serious problems. And $45b of recap funds for the two big banks is very little compared to NPLs that are likely to be 70% of GDP for the overall financial system; and these NPL will grow as many loans will go bust once the investment boom goes bust. Indeed, the CCB scandal and other evidence of systematic corruption and malfeasance throughout the banking system shows how the banking system is still significantly rotten and fragile.