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Showing posts with label IMF. Show all posts
Showing posts with label IMF. Show all posts

Monday, July 25, 2011

Hotel maid in Strauss-Kahn case speaks out

In this undated photo provided by ABC News, Robin Roberts, right, talks to Nafissatou Diallo, the alleged victim in the Dominique Strauss-Kahn assault case. Diallo told the network she never wanted to be in the public eye but had no choice, amid questions about her credibility. Lawyers for Strauss-Kahn told ABC that the interview was "an unseemly circus" designed to inflame public opinion. (AP Photo/ABC News, Heidi Gutman)
The New York hotel maid who accused former IMF chief Dominique Strauss-Kahn of attempting to rape her said in an interview published on Newsweek's website on Sunday that he appeared as a "crazy man" and attacked her when she entered his room.

Nafissatou Diallo also gave the newsmagazine and ABC News permission to identify her by name.

The magazine interview marks the first time the 32-year-old Guinean immigrant to the United States has publicly spoken to the media since she shocked the world with allegations that Strauss-Kahn emerged naked from the bathroom of his luxury suite on May 14 and forced her to perform oral sex.

Until now, Reuters had kept to the practice in the United States of protecting the identity of alleged rape victims.

ABC News on Sunday also announced it would broadcast an interview with Diallo on Monday morning.

"I want justice. I want him to go to jail," she said in excerpts from the television interview released on Sunday.

"I want him to know that there is some places you cannot use your money, you cannot use your power when you do something like this," Diallo said.

One of Diallo's attorneys, Douglas Wigdor, told Reuters she has come forward to let the world know she is not a "shakedown artist or a prostitute."


"She's being attacked ... and she thought it was important to put a name and face to her account," Wigdor said.

She also plans to file a civil lawsuit soon, which means her name would become public, he added.

ABC reported Diallo also acknowledged "mistakes" but said that should not stop prosecutors from going forward.

"I never want to be in public but I have no choice," she told ABC News, adding "Now, I have to be in public. I have to, for myself. I have to tell the truth."

Diallo, who Newsweek said had agreed to be photographed for next week's edition, said she saw Strauss-Kahn appear naked in front of her when she opened the door to his suite. He was like "a crazy man to me," she said.

"You're beautiful," she reported Strauss-Kahn as saying, and said he attacked her despite her protestations.

DENIES ALL CHARGES

Strauss-Kahn, 62, has repeatedly denied all the charges against him. In a statement on Sunday, his lawyers called the interview a last-ditch effort by the maid and her lawyers to extract money from the former managing director of the International Monetary Fund.

She is "the first accuser in history to conduct a media campaign to persuade a prosecutor to pursue charges against a person from whom she wants money," lawyers Benjamin Brafman and William Taylor said.

"Her lawyers and public relations consultants have orchestrated an unprecedented number of media events and rallies to bring pressure on the prosecutors in this case after she had to admit her extraordinary efforts to mislead them."

Her credibility was thrown into question when Manhattan prosecutors revealed Diallo told authorities numerous lies, including fabricating a story about being gang-raped in Guinea in order to gain U.S. asylum. She also changed details of her story about what happened following the purported assault.

Wigdor said Diallo has worried that prosecutors would drop the charges. "That has been a concern, but we're all hopeful that the district attorney's going to do the right thing," he said.

A spokesman for Manhattan District Attorney Cyrus Vance had no comment on the interviews, saying: "We will not discuss the facts or evidence in what remains an ongoing investigation."

FLED AFTER RAPE

After arriving from Guinea in 2003, Diallo, who is illiterate, told Newsweek she spent years braiding hair before working at a bodega in New York City's Bronx borough. As a maid at the Sofitel hotel, she received $25 an hour plus tips.

Diallo said her husband in Guinea died of an illness but did not provide further details. Roughly two years after being raped by two soldiers in Conakry, the Guinean capital, she fled with her daughter, now 15, to the United States, where she said she has few close friends.

Following the alleged attack, Diallo spent weeks in protective custody, holed up in a hotel with her daughter.

"She's been in seclusion for over two months. She hasn't been able to take a walk in the park," her lawyer said.

French newspaper France Soir reported in a front page headline that David Koubbi, the lawyer for French writer Tristane Banon, who has accused Strauss-Kahn of a 2003 sexual assault, had met with Diallo. It added only that he "was impressed by her courage."

(Reporting by Basil Katz; Additional reporting by Noeleen Walder in New York and JoAnne Allen in Washington; Editing by Ellen Wulfhorst and Eric Walsh)

Monday, July 11, 2011

10 Advantages of Cash (Say No to ATM and Credit Cards)

The Treasury may be printing fewer dollars, but I'm going all cash.

The dollar bill needs you.

A growing number of merchants won't accept cash anymore. That includes a lot of airlines, which insist you pay by credit card if you want to buy a drink or a sandwich on board. And now comes news that the U.S. Treasury is printing fewer dollars, as we move towards an all-plastic economy.


Great news for the banks. Great news for the card companies. Great news for the marketing establishment, which can now pore through our transactions and our personal lives in greater and greater detail.

Me? Call me a contrarian, or just call me ornery, but I view this with gloom. This not a step forward. It's a step backwards. Personally, I've been moving the other way. I've cut down on my use of credit cards and debit cards. The latest news is the final push I needed to get them out of my life completely. I'm going all cash

Here are 10 reasons why:

1. I'll spend less. A variety of scientific studies, such as this one at the Massachusetts Institute of Technology, have found that people are simply willing to spend more when they use credit cards than they do when they use cash. It's common sense. No wonder our national obsession with shopping really took off when credit cards came on the scene. And I've found it personally. Last fall and winter, when I went for an extended period without carrying any plastic at all, my day-to-day spending rate absolutely collapsed.

2. The card bonuses aren't worth it. A lot of people use their credit cards for the frequent flyer miles or other bonuses. But many of these deals are getting less valuable. Airlines are cutting back on flyer programs. And how good were these programs anyway? Schwark Satyavolu, co-founder of BillShrink, says that if you are really smart, dedicated and targeted about getting and using your bonuses, you can sometimes get very good deals. But overall, he says, deals are getting less valuable, and are increasingly focused on cards with annual fees. Most of us are doing very well if we manage to get back 2% on our cards. Compared to the extra amount you spend, that's chicken feed.

3. Cash makes budgeting easy. Personal financial planners encourage clients to draw up budgets. It's great advice, in theory anyway. But I have a confession: I'm just not that organized. Nor, I suspect, are lots of people. But if I go to the bank once a week and draw out a certain amount of cash, it makes the budgeting automatic. Easy.

4. Less worry about identity theft. Do you worry about handing out your card or details every time you make a purchase? I do. The banks and online merchants work hard to maintain security, but the crooks are just as inventive. And there are plenty of them. People suffer identity theft all the time. Using cash cuts down on the risk.

5. Fewer impulse purchases. One way credit cards let us spend more is that they make it easier to buy things that we don't need, and may not even want, on the spur of the moment. And the stores are set up to encourage it they rely on sophisticated marketing science to manipulate you into reaching into your wallet. If you don't have the money on you, you can't splurge. If you really want the item in question, you can come back and buy it tomorrow. Chances are you won't.

6. I can still shop online. Just because I'm using cash doesn't bar me completely from getting online deals. Yes, I'll have to bend a principle, but I won't have to break it: I can buy a prepaid card in a store and charge it up with cash. Okay, so it's plastic, but I have to pay for it in advance, with cash, and it will have a limit. (On the same principle, I can also use a prepaid card as an emergency backup if I travel).

7. Say goodbye to debt. I pay my cards off in full every month, but a lot of people don't. They use their cards to borrow, and it's a financial disaster. We've seen what the overuse of debt has done to our economy. According to Bankrate.com, the average card charges you 14% interest. Many charge a lot more. And you're paying with after-tax dollars. As an illustration, you'd have to earn at least 16.5% on the stock market (before long-term capital gains tax of 15%) just to keep up. Good luck with that. Says New York University's Stern School of Business, since 1928, U.S. stocks have produced an average compound return of just 9.7%. And Bankrate calculates that someone who buys a $1,000 item on a credit card charging 14% interest, and merely pays 2% of the balance each month, will end up paying $1,750 for that item. It will take 110 months to pay off the bill.

8. Privacy. Credit cards are great for tracking people. They tell you exactly what you bought, where and when. (Throw in all the data tracked by your smartphone, your iPad and so on, and we're basically rats scurrying around in a Perspex cage while marketing strategists study our every move). I have to confess I hate it. And I love the privacy and anonymity of cash. Last week I meet my wife for lunch. But I stopped by my bank first to take out cash. It's none of American Express' business.

9. Cash rebuilds the link between what I earn and what I spend. I remember back when I got my first job: I started calculating how much everything I spent cost in terms of hours worked. That new CD cost two hours of my time, and so on. It was a good discipline. Credit cards weaken the link. It's no wonder that the rise in plastic has resulted in an explosion in the numbers living beyond their means. (Is it also a coincidence that the rise of the credit card has also coincided with the collapse in unions? Before VISA, if you wanted a fancier car or vacation next year, you needed a pay raise).

10. Cash helps people I want to help. The money goes to the merchant and his suppliers. When I go into my local credit union to cash a check, I'm keeping a couple of local tellers in work. Credit cards? I'm helping finance bank executives, marketing teams and call centers in India. I am sure they are all fine people, and I wish them well. But if I had to choose, and I do, I would rather help my local merchants and credit union staff.

Tuesday, May 17, 2011

Pressure rises against IMF chief held at NYC jail


Dominique Strauss-Kahn
AP – Dominique Strauss-Kahn, head of the International Monetary Fund, is arraigned Monday, May 16, 2011, at …


NEW YORK – Pressure built Tuesday for Dominique Strass-Kahn to consider resigning as chief of the International Monetary Fund after he was charged with trying to rape a maid at a New York hotel.

Strauss-Kahn spent the night at the infamous Rikers Island, a 400-acre penal complex in Manhattan, after being denied bail Monday. Prosecutors had warned the wealthy banker might flee to France and put himself beyond the reach of U.S. law like the filmmaker Roman Polanski.

Strauss-Kahn's weekend arrest rocked the financial world as the IMF grapples with the European debt crisis, and it upended French presidential politics. Strauss-Kahn, a member of France's Socialist party, was widely considered the strongest potential challenger next year to President Nicolas Sarkozy.

Austria's finance minister suggested Tuesday that Strauss-Kahn consider stepping down to avoid damaging the IMF, which provides emergency loans to countries in severe distress and tries to maintain global financial stability.

"Considering the situation, that bail was denied, he has to figure out for himself that he is hurting the institution," Maria Fekter said as she arrived at a meeting of European finance ministers in Brussels.

Elena Salgado, Fekter's Spanish counterpart, said Strauss-Kahn had to decide for himself whether he wanted to step down, considering the "extraordinarily serious" nature of the charges.

"If I had to show my solidarity and support for someone it would be toward the woman who has been assaulted, if that is really the case that she has been," she said.

In France, defenders of Strauss-Kahn, a former finance minister who had topped the polls as a possible candidate in presidential elections next year, said they suspected he was the victim of a smear campaign. Others expressed sympathy.

"I didn't like the pictures I've seen on television," Luxembourg Prime Minister Jean-Claude Juncker said Monday night, referring to footage that showed Strauss-Kahn in handcuffs being escorted by police outside a New York precinct house.

Showing a suspect in handcuffs is illegal in France since a 2000 law aimed at the preserving the presumption of innocence.

The 62-year-old Strauss-Kahn was arrested Saturday at Kennedy Airport after the allegations at the Sofitel hotel near Times Square.

Making his first court appearance Monday, a grim-looking Strauss-Kahn stood slumped before a judge in a dark raincoat and open-collared shirt. The silver-haired banker said nothing as a lawyer professed his innocence and strove in vain to get him released on bail.

"This battle has just begun," defense attorney Benjamin Brafman told scores of reporters outside the courthouse, adding that Strauss-Kahn might appeal the bail denial.

Because of his high profile, Strauss-Kahn will be held in protective custody on Rikers Island, away from most detainees, said city Correction Department spokesman Stephen Morello. Unlike most prisoners who share 50-bed barracks, he will have a single-bed cell and will eat all of his meals alone there. He'll have a prison guard escort when he is outside his cell.

Rikers is one of the nation's largest jail complexes, with a daily inmate population of about 14,000.

The complex's notable history includes accounts of run-ins between inmates and guards. In one such case last year, a guard was sentenced to six years in prison for ordering inmate beatings as part of a rogue disciplinary system. Prosecutors said he imposed order in a unit at the complex by having teenage inmates beat other teenagers who had stepped out of line. The union that represents jail guards said the prisoners fabricated the allegations.

Also last year, more than a dozen correction officers were injured while quelling fights between inmates awaiting pretrial hearings at a jail there. And in February, the city settled a wrongful death lawsuit brought by the family of an inmate who died after a scuffle with guards.

Strauss-Kahn was ordered jailed at least until a court proceeding Friday. He cannot claim diplomatic immunity because he was in New York on personal business and was paying his own way, the IMF said. He could seek that protection only if he were conducting official business, spokesman William Murray said. The agency's executive board met informally Monday for a report on the charges against Strauss-Kahn, the managing director at the international lending agency since 2007.

The French newspaper Le Monde, citing people close to Strauss-Kahn, said he had reserved the suite at the Sofitel hotel for one night for a quick trip to have lunch with his daughter, who is studying in New York.

Strauss-Kahn is accused of attacking a maid who had gone in to clean his penthouse suite Saturday afternoon at a luxury hotel near Times Square. He is charged with attempted rape, sex abuse, a criminal sex act, unlawful imprisonment and forcible touching. The most serious charge carries five to 25 years in prison.

The 32-year-old maid told authorities that she thought the suite was empty but that Strauss-Kahn emerged from the bathroom naked, chased her down a hallway, pulled her into a bedroom and dragged her into a bathroom, police said.

He grabbed her breasts, tried to pull down her pantyhose, grabbed at her crotch and forced her to perform oral sex on him during the encounter at about noon, according to a court complaint. She ultimately broke free, escaped the room and told hotel staffers what had happened, authorities said. She was treated at a hospital for minor injuries.

"The victim provided a very powerful and detailed account of the violent sexual assault," Assistant District Attorney John "Ardie" McConnell said. He added that forensic evidence may support her account. Strauss-Kahn voluntarily submitted to a forensic examination Sunday night.

Brafman said defense lawyers believe the forensic evidence "will not be consistent with a forcible encounter." Defense lawyers wouldn't elaborate, but Brafman said "there are significant issues that were already found" that make it "quite likely that he will be ultimately be exonerated."

Prosecutors asked the judge to hold Strauss-Kahn without bail, noting that he lives in France, is wealthy, has an international job and was arrested on a Paris-bound plane at Kennedy Airport. He had left the hotel before police arrived, leaving his cellphone behind, and appeared hurried on surveillance recordings, authorities said.

At one point, Strauss-Kahn called the hotel "in a panic" about the phone, a law enforcement official said Monday.

Hotel security officers hadn't found a phone. But they were instructed by NYPD investigators to set a trap by informing him they had it and asking where they could get it to him, said the official, who spoke on condition of anonymity because the investigation had not been completed.

Strauss-Kahn told them he was about to board a flight — unknowingly tipping off authorities to his whereabouts, the official said.

Prosecutors said they couldn't force Strauss-Kahn's return from France if he went there.

"He would be living openly and notoriously in France, just like Roman Polanski," said Chief Assistant District Attorney Daniel Alonso, referring to the film director long sought by California authorities for sentencing in a 1977 child sex case.

Defense lawyers suggested bail be set at $1 million and promised that the IMF managing director would remain in New York City. His lawyers said Strauss-Kahn wasn't trying to elude police Saturday: The IMF head rushed out of the hotel at about 12:30 p.m. to get to a lunch date with a family member, then caught a flight for which he had long had a ticket, they said.

Allegations of other, similar attacks by Strauss-Kahn began to emerge Monday. In France, a lawyer for a 31-year-old French novelist said she is likely to file a criminal complaint accusing him of sexually assaulting her nine years ago. A French lawmaker accused him of attacking other maids in previous stays at the same luxury hotel. And in New York, prosecutors said they are working to verify reports of at least one other case, which they suggested was overseas.

A French lawmaker from a rival political party also alleged, without offering evidence, that Strauss-Kahn had victimized several maids during past stays at the Sofitel near Times Square.

The hotel issued a statement calling conservative lawmaker Michel Debre's claims "baseless and defamatory." Sofitel management "has had no knowledge of any previous attempted aggressions," the hotel said, adding that it had set up a hotline for workers to report incidents more than a year ago.

McConnell, the assistant district attorney, said in court Monday that New York authorities are working to verify at least one other case of "conduct similar to the conduct alleged." When Criminal Court Judge Melissa C. Jackson asked whether the potential other incident occurred in the United States, McConnell said he "believed that was abroad."

Strauss-Kahn's lawyers said they had no immediate response to the allegations emerging from overseas.