Financial regulations are a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the integrity of the financial system. This may be handled by either a government or non-government organization.

Roles and Goals of Regulation:

1. To enforce applicable laws
2. To prosecute cases of market misconduct, such as insider trading
3. To license providers of financial services
4. To protect clients, and investigate complaints
5. To maintain confidence in the financial system

Source: Wikipedia

Obama's Financial Regulatory Reform:
Obama has proposed a Financial Regulatory Reform which address five key objectives;

1. Promote robust supervision and regulation of financial firms.
   
   
   • Financial institutions which are critical in keeping the market stable should be subject to strong supervision and regulations.
   • New powers are given to the Federal Reserve to supervise all the firms that could pose a threat to financial stability, including those which are not banks.
   • To improve inter-agency cooperation and to identify financial risks, a new council will be formed, called Financial Services Oversight Council.
2. Establish comprehensive supervision of financial markets.


• Additional power to Federal Reserve to oversee payment, clearance and settlement systems of financial systems
• Comprehensive regulation of all over-the-counter derivatives by the Federal Reserve (A type of financial derivative that has its transaction directly negotiated between two parties rather than through an exchange. Some financial derivatives, such as a swap, a forward rate agreement or an exotic option, are usually done over the counter.)
• New requirements for market transparencies, stronger regulation of credit rating agencies.
  
3. Protect consumers and investors from financial abuse.


• A Consumer Financial Protection Agency will be established to protect consumers across the financial sector from unfair, deceptive and abusive practices.
• Improving the standards of the providers of consumer financial products and services, whether they are a part of a bank or otherwise.
  
4. Provide the government with the tools it needs to manage financial crises.


• Issues of non-bank financial institutions, whose failure could have serious impacts on the market, to be resolved by an overseeing authority (Federal Reserve)
• Revisions to the Federal Reserve's emergency lending authority to improve accountability.
  
5. Raise international regulatory standards and improve international cooperation.


• International reforms to strengthen the capital framework; improving oversight of global financial markets; coordinating supervision of internationally active firms; and enhancing crisis management tools.
  

Kuwait, large, empty patches and plots of desert land around homes, bridges, buildings - many in central Kuwait and inside neighborhoods - why can't they beautify or 'green' the areas: palm trees, grass, parks - anything?

Kuwait should plant millions of palm trees like the UAE at least - if any city needs additional oxygen it's hot, dusty Kuwait.

I am sure they can arrange a grossly overinflated tender for that...

Between August 1990 and 1991 Kuwait was invaded by Iraq and eventually liberated by the United States primarily (alongside a handful of Allied forces).

We where all glued to the television sets watching CNN which had back-to-back, 24 hour coverage of Iraq and Kuwait. The Invasion was played out in real time in every little detail. We would see a scud being launched from Southern Iraq, only to be notified that it was heading towards Dammam. Fifteen minutes later the local civil authorities would turn on the sirens signaling a Scud attack. CNN was intense, detailed, live and captivating.

All other news on CNN was neglected. Ads where put on hold. Kuwait was important. Iraq had to be stopped. The oil had to flow.

Nineteen years later, the possible seeds of a new Iranian revolution are beginning to bloom. This will have a global effect based on the outcome. It will affect the freedom of people, it will affect the price and supply of oil. It will change the whole political map of the Middle East.

Turning the channel to CNN to see what is the latest on this important event, what do I see - what are the latest news? The Jonas Brothers will apear on Larry King? The Lakers? Coby did something? Okay, what is on the ticker tape at the bottom of the screen? Nothing, no mention of Iran, just sports results. Iran ceased to exist.

Where can someone concerned about Iran and interested in what is happening there go to? Twitter. Yes, Twitter. The place where angst driven teens tell you what they are eating, celebrities write through their PR agents about their next events and many others. Twitter has become the new real time news channel for Iran. You can follow the latest events by searching here. Videos are posted, pictures taken, posted as soon as they are taken.

Here is an interesting analysis of the recent Iran developments from 'Stratfor':

'Western Misconceptions Meet Iranian Reality'
By George Friedman
'Stratfor'

In 1979, when we were still young and starry-eyed, a revolution took place in Iran. When I asked experts what would happen, they divided into two camps.

The first group of Iran experts argued that the Shah of Iran would certainly survive, that the unrest was simply a cyclical event readily manageable by his security, and that the Iranian people were united behind the Iranian monarch's modernization program. These experts developed this view by talking to the same Iranian officials and businessmen they had been talking to for years -- Iranians who had grown wealthy and powerful under the shah and who spoke English, since Iran experts frequently didn't speak Farsi all that well.

The second group of Iran experts regarded the shah as a repressive brute, and saw the revolution as aimed at liberalizing the country. Their sources were the professionals and academics who supported the uprising -- Iranians who knew what former Supreme Leader Ayatollah Ruholla Khomeini believed, but didn't think he had much popular support. They thought the revolution would result in an increase in human rights and liberty. The experts in this group spoke even less Farsi than the those in the first group.

Misreading Sentiment in Iran

Limited to information on Iran from English-speaking opponents of the regime, both groups of Iran experts got a very misleading vision of where the revolution was heading -- because the Iranian revolution was not brought about by the people who spoke English. It was made by merchants in city bazaars, by rural peasants, by the clergy -- people Americans didn't speak to because they couldn't. This demographic was unsure of the virtues of modernization and not at all clear on the virtues of liberalism. From the time they were born, its members knew the virtue of Islam, and that the Iranian state must be an Islamic state.

Americans and Europeans have been misreading Iran for 30 years. Even after the shah fell, the myth has survived that a mass movement of people exists demanding liberalization -- a movement that if encouraged by the West eventually would form a majority and rule the country. We call this outlook "iPod liberalism," the idea that anyone who listens to rock 'n' roll on an iPod, writes blogs and knows what it means to Twitter must be an enthusiastic supporter of Western liberalism. Even more significantly, this outlook fails to recognize that iPod owners represent a small minority in Iran -- a country that is poor, pious and content on the whole with the revolution forged 30 years ago.

There are undoubtedly people who want to liberalize the Iranian regime. They are to be found among the professional classes in Tehran, as well as among students. Many speak English, making them accessible to the touring journalists, diplomats and intelligence people who pass through. They are the ones who can speak to Westerners, and they are the ones willing to speak to Westerners. And these people give Westerners a wildly distorted view of Iran. They can create the impression that a fantastic liberalization is at hand -- but not when you realize that iPod-owning Anglophones are not exactly the majority in Iran.

Last Friday, Iranian President Mahmoud Ahmadinejad was re-elected with about two-thirds of the vote. Supporters of his opponent, both inside and outside Iran, were stunned. A poll revealed that former Iranian Prime Minister Mir Hossein Mousavi was beating Ahmadinejad. It is, of course, interesting to meditate on how you could conduct a poll in a country where phones are not universal, and making a call once you have found a phone can be a trial. A poll therefore would probably reach people who had phones and lived in Tehran and other urban areas. Among those, Mousavi probably did win. But outside Tehran, and beyond persons easy to poll, the numbers turned out quite different.

]]> http://www.hilaliya.com/2009/06/western-misconceptions-meet-ir.html http://www.hilaliya.com/2009/06/western-misconceptions-meet-ir.html Don Veto iran revolution elections george friedman stratfor twitter Tue, 16 Jun 2009 15:30:00 +0300

A Mosque In Downtown Kuwait

As radical as it may sound, the above title is absolutely true of all Democracies!

It is by no means contradictory to Islamic Sharia, far from it - It actually protects Islam and Sharia and all religions from misuse and misinterpretation, if only the opponents read wisely.

With all the factions coming up in Kuwaiti Politics these days - with each considering the other blasphemous - the political waters become murky to the electorate with regards to the choices they make.

If one considers that voting for HADAS or the Salafists, for example, would initiate the reshaping of the government into an Islamic one, the same would be true for the Shiite groups, the Liberals, the Tribalists, and so on.

To counter this fear - while providing equality to the entire population - the Kuwaiti Government needs to be reshaped Kuwait into a Secular State. Within this state, Religion is protected, in all its various forms and definitions, while the Rule of Law keeps it in check, so that no one religion or belief can demolish or defame the other. At the same time, the Government held accountable by each religious group so that no particular favoritism is given to any one group with regards to rights and obligations to the State and its Head.

This, in essence, is the very definition of a true Democracy. Anything else is a workaround. By that I mean, a twisting of the facts in order to address the development of a particular agenda that may or may not be productive to the society at large.

An 'Islamic Democracy' means the implementation of Sharia Law onto everyone, referenced by the power monger's own interpretation of this Law, be it Wahaabist, Taliban, Hadas or Hezbolla.

A 'Tribalist Democracy' means the 'Bani-Somethings' exert their will and influence onto all those that are not of their tribe.

A 'Liberal Democracy 'means the right to throw wild Animal House style parties at college (to some, at least!) without concern for the more moderate of our society, and so on...

But the biggest threat of all, the one we are surely to face if these latest elections results don't provide the needed results, is an Authoritarian Government, where the individual's rights and obligations are subject to the whims of the 'Ruling Elite', unabated, unobstructed and unchallenged.

Here is where the line was drawn back in 1961/62, when Kuwaiti society decided to implement a constitution that would protect them and their generations from this type of rule. Here we are, 47 years later, deciding on what type of government to represent the people.

In my blog, I posted many entries about how to select and decide upon the right candidate for the job, and I'm reinforcing this point again here: By choosing wisely, all these political groups and their agenda's will be limited it, but if they come into power, they will modify the government's 'modus operandi' so that it becomes more 'user friendly' to their agenda, therefore, we the people will be at their ideological mercy.

In short, Kuwait should be a Secular State in order for all ideologies be absorbed and protected for their individual followers. Everyone has a right to think and say what he or she likes, as long as these actions to not infringe upon the rights and freedoms of others. Everyone should also have a right to be protected from corruption, as long as this protection is not extorted into a new form of corruption.

The new marriage law providing for pre-marriage checkup will be in force on Sunday, August 2, 2009, Assistant Undersecretary of Kuwaiti Ministry of Health for Medical Services, Dr. Yousuf Al-Nesf announced Wednesday.

Why?

"The aim of the legislation is to ensure a healthy and happy family and eradicate the hereditary and communicable diseases in Kuwait", said Dr. Yousef Al-Nesf during the announcement.

Meanwhile, Abdullah Al-Hamoud, supervisor of family affairs at the Justice Ministry, said if the results of the lab tests proved that the would-be marriage is unsafe due to the illness of one or both of the partners, the marriage contract would be cancelled.

"A marriage officer is authorized to solemnize a marriage only after receiving a certificate that verifies that the couple conducted a checkup and were physically fit," Al-Hamoud reminded.

The survival of the fittest or is it catalyzing the process of being the fittest ?

Do we need to accelerate the nature's process by adopting such rules?

Are we morally justified ?

"A government which robs Peter to pay Paul can always depend on the support of Paul".

- George Bernard Shaw

We all understand that money can be a powerful motivation.

Most of us don't realize it, until we starting making some money by ourselves at regular intervals of time.

Students can be enterprising, independent and smart.
The question is how ?

They can do a lot of multi-tasking with their studies, researching into unknown territories, coordinating events, excelling at extra-curricular activities and so on.

Well that gets one, some good experience, dedication, time management skills, and people management.

However, students may be "Independent" financially.
Not because they are deprived of finances, but because it helps them understand the principles of generating money by their ideas.

How to convert an idea into a money making machine... ?

The product/service which probably may qualify to be a successful startup has certain characteristics such as:

1. It caters to a specific need of a larger community or immediate smaller group
2. It is easily accessible by different means (consider online access and never forget the traditional way)
3. The demand for it is perpetual (lasting an indefinitely long time). It need not have to be in super high demand. It needs to be asked daily. E.g. Bread.
4. It does not require a lot of investment at the beginning
5. Can be coupled with other existing products/services (especially useful while starting, e.g. you can bundle your product or service with some other product/service. e.g. Think DELL and Microsoft)
6. It can be started in a garage or in the basement. (no huge real estate requirements)
7. Can be started with a single individual or two. Two is preferred.
8. It can be described easily to an average individual
9. Takes less time to monitor by the business owner (Spending an hour or two at the beginning should be suffice. Remember your primary objective is still to succeed at studies)
10. Should be able to diversify
11. Being aware of financial lessons which are not taught in classrooms, but gained by experience is a HUGE advantage when one graduates.

The idea here is not to make ONLY money, however in a long run, be able to learn how to shape an economy.

Once one masters certain principles of making money, money just keeps flowing.
Keep the input and output flow of money at almost the same rate.

Keep the money always flowing, never keep it static.
Otherwise one runs a big risk of not making more or even losing it.

So we dialed the call center number of a major bank in Kuwait, and the customer service agent informed us that my card is blocked since I delayed the payment. I authorized the payment after 15th, (which happens to be the due date), and the transaction shows up on my Internet Card statement; I have sufficient credit to make a purchase.

The agent calmly responded that I needed to visit my branch to unblock my card.

I simply asked him, "Isn't it not logical to a banking system, to just unblock a card when the transaction is done, qualifying it to be valid again for use?"

The agent cordially repeats again, "Please visit your branch Sir"?

I made a quick visit to my branch (Yes, you have to visit THE branch where you opened your account! Sadly my office is in The City and my branch quite far away).

After explaining the issue to the Customer Care Representative at the branch, she replies, "we have to send an email to the head quarters to get your card unblocked and it may take 24 - 48 hours for that."

Now, this is a minor instance where the banking software itself can check to ascertain whether the card is blocked - when a valid transaction is done, and unblock it if the transaction succeeds. This only shows how inconvenient the customer experience can become due to a minor issue of information technology. At the very least, the major banks in Kuwait need to review their IT and software benchmarks based on surveys and general feedback by customers. The idea here is that a very minor feature, when under-estimated, can cause a much inconvenience to a large customer base, not just the incident mentioned above, but other issues related to banking transactions, that ultimately taint customer service satisfaction.

A few days ago I attended a conference in Dubai.

I attempted to check in at the 'Kuwait Airways' desk at Dubai Airport, amidst a frenzied crowd, and was told there was 'an eight hour delay from the 'Kuwait Airways' side'

The crowd around me, consisting of families and businessmen were cursing the state ("What is wrong with our country?" and "Why are they refusing to develop it - where is our money going?"). There was anger in the crowd, pure venom. They didn't care if Emirati citizens or foreigners were listening - they have had it with Kuwait's lack of services and mean, tight-fisted ways and they were verbally generous.

We scurried, managing to transfer our tickets to Emirates Airlines - departing at the original KA time - at the brand new, gleaming, high-tech Terminal Three (there was a work-in-progress metro rail outside that looked like something out of 'Epcot').

The trip was smooth. Even in Economy passengers were treated with the utmost respect and service was excellent (if it were Economy in 'Kuwait Airways' the personnel would have treated us all like garbage, especially the Asians).

A perfect landing by the Emirates pilot was briefly interrupted by a screeching brake.

"We are sorry ladies and gentleman, there was a driver who managed to speed across our tarmac during our arrival," said the pilot. Passengers burst out laughing, "Yes, we definitely are in Kuwait now!" they hollered.

We exited our planes and were met with crowds of laborers and tourists, cigarette smoke, filthy ambience, dim lighting and the obligatory pink airport signs - yes we had arrived at Kuwait Airport, a far cry from whence we came. But hey, its home isn't it. We were relieved and content.

Two days later, the electricity goes off in my neighborhood, for three hours. The Ministry of Electricity's line was constantly busy. I went to check the local transformer/electrical building and found expatriate Ministry of Electricity technicians waiting, unable to do anything ("Please call the Ministry," they implored me, "we are waiting for the hajji Kuwaiti engineer."). They wanted my help in contacting their ministry - think about that for a minute.

This morning I open a newspaper and see quotes by Ministry of Electricity Under-Secretaries admitting there will be more power cuts this summer. Bloggers and columnists have been writing about this crisis for over five years - why didn't the government do anything about it? Oh wait, they spent half a billion on decrepit generators that didn't do the job - genius.

Let me say one thing to the movers and shakers (and I know for a fact you, your kids and your relatives follow this and other blogs): enough is enough, get your heads out of your posteriors, forget your egotistical, tired summits and conferences, and get working for the state, for this country. It is time you provided basic services to people without humiliating them - there is a resentment and anger towards government and officials in this country that you are not aware of.

We are a rich country. Use our resources wisely and work for us - that is what you are there for: public service.

Patience is not indefinite. And God won't forgive those who don't take care of their flock.

Minutes ago 'Al Arabiya' news channel announced the return of Sheikh Nasser Mohamed Al-Sabah as Prime Minister.

We have yet to see any reactions from the MPs or the Kuwaiti public. I hope that Sheikh Nasser gets the chance to head a strong and positive cabinet.

May God bless Kuwait, its Emir and the Kuwaiti People

People often ask me what kind of demographic this blog caters to (since it's a Kuwaiti English language blog). As you can see from the above mid-month chart, the blog is truly global, with a large chunk of readership just from the United States alone.

We've done our bit.

Now the Government needs to step up to the plate.

L-Right (Aseel Al-Awadi, Rola Dashti, Salwa Al-Jassar and Masouma Mubarak) L-Three: Stephanie McGehee/Reuters; right, Yasser Al-Zayyat/AFP-Getty Images

Our faith in the system and people of Kuwait was reaffirmed today.

Following years of uncertainty and gridlock, the people of Kuwait have voted for change. I am certainly in high spirits, and relieved. We were hoping one or two women would make it in, we got four!

Some newcomer independents also won and 'Hadas' took a big hit in the 3rd District (my district). The 'fatwas' and mudslinging by xenophobic elements towards women and progressive candidates backfired, reenergizing and intensifying support for them.

Voting took a maximum of ten minutes, including a detour by a Candidate (who gave the obligatory two minute campaign speech) on my way to voting.

It seemed very quiet this year, with reports of low voter turnouts from all the districts.

Let us hope the third time is the charm.

Here are a couple of previous stories: last year's 'Election Day' (2008) post 'Casting The Ballot In Kuwait' and the prior post 'It's Over, I Voted' (2006).