Just a quick update on Libya. There have been reports from unnamed sources within Libya reported by Reuters and Al Jazeera that foreign mercenaries are being used to put down the protests. There have also been videos coming out of the country showing a heavy troop presence but I certainly can’t say if the troops are foreign or not.
What the reports of mercenaries does suggest however, is support for what I was writing in the previous post – within the country loyalties are not national nor to the government, not even within the army. If the army was loyal to Gaddafi and his government then there would be no need for mercenaries.
I have heard reports of troops from French speaking West Africa. Gabon would be one source. I would be surprised if French units where not already in the country. Other rumours are of East European mercenaries also. One rumour is that the units are there not only to patrol the streets but to secure the oil installation and if threatened with government defeat, to set them alight.
Even the rumour of such is going to help push oil prices up. Remember, high oil will not help any ideas our governments might have of growth as the solution to our debts.
On the financial side UniCredit, our old friend, is feeling very shaken by events. Part of UniCredit’s last efforts at raising capital investment was to sell a 5% chink of itself to Libya. The Libyan Central Bank owns 5% and the Libyan Investment Authority owns another 2.6%. On the news that Gaddafi might have left the country UniCredit’s shares plunged nearly 6%.
UniCredit already had bad debts rolling in from Eastern Europe via its Bank Austria subsidiary and was hugely exposed to US debt coming from its one third of a trillion dollar investment arm, Pioneer, in the US. And now its rescue plan of getting oil investment from the dictator everyone used to like to hug for the cameras, Colonel Gaddafi, seems to be failing too.
Italy is in increasing trouble. Berlusconi is facing trial, again, after having barely survived the last attempt to oust him and now Italy’s largest bank (one of Europe’s largest) is where it does not want to be, in the spot light.
Oil price, mercenaries and UniCredit all tied to events in Libya!
Just saw an interview with Frank Gardner, the BBCs security correspondent on the situation in Libya. He also mentioned the use of mercenaries from Africa and Eastern Europe. I imagine at this stage of the proceedings, their employers are ensuring they are being used for swift, personal gain as opposed to securing public safety.
Funny too how the Italian stock exchange was closed today due to a "technical glitch".
Interesting times.
If we could buy shares in 'Interesting"….
Hi Golem,
The marked increase in traffic onto my blog since yesterday seems to indicate that there are many financial firms and state bodies whose interest in UniCredit has increased dramatically.
I think this would be the right time to quote from The Integrity Charter, given to me when I joined UniCredit. The charter is signed by Alessandro Profumo, UniCredit's Group CEO at the time.
"The UniCredit Itegtrity Charter sets out the principles that should direct and guide us in our daily business.
It provides a framework to draw on at critical junctures in our work. It is intended as a reference point for the management of problematic situations and dilemmas – not always covered by laws, regulations and internal procedures – and permits the expression of our business personality by enhancing our professionalism while respecting the individual's freedom of action…
The Integrity Charter seeks to propose behaviours that help people govern their own conduct in those areas of our daily work where potential conflicts may arise between individual morality, business objectives and different cultures."
My own experience at UniCredit Ireland showed me on a personal level how UniCredit deals with any conflicts it may have as regard to law-abiding business conduct vs. business objectives.
I wonder how the clients and shareholders of UniCredit and its subsidiaries – Pioneer, HVB, and Bank Austria are feeling these days about contributing to the wealth of a sovereign that has been mercilessly killing its own citizens. Does this affect their "individual morality"? Or have they set that aside for the sake of "business objectives"?
WhistleblowerIRL
UniCredit Ireland's EX Risk-Manager
Does this affect their "individual morality"? Or have they set that aside for the sake of "business objectives"?
If ever there was a question that answered itself…
Italy seems to be having a lot of difficulty in condemning Gaddafi's murderous counterattacks. My Italian friend said that Berlusconi and Gaddafi were as close as culo e comiche (bum and shirt). I guess they have a lot to lose. They are big in the oil business there. A great deal of this is on the coast of the Bay of Sirte around the old Second World War battlefield of Mersa al Brega. Sirte is the national oil company name.
A good run through of the very current situation is here
wirplit,
Great link thanks. Italy and libya are tied with oil and large construction large companies in both sectors as well as UniCredit all got pole axed yesterday when the Italian bourse did finally open after its 'technical' problem.
Craig Murray (Britain's former ambassador in Uzbekistan) is reporting that Berlusconi is "frantic lest Gadaffi falls and the channels are revealed by which Berlusconi gets a cut on the huge amounts of Libyan oil and gas lifted to Italy."
http://www.craigmurray.org.uk/archives/2011/02/berlusconis_cut.html#comments
What a lovely pair!