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News Briefs

Brazil’s banks merge to compete internationally

Brazil’s second and third largest banks, Itau and Unibanco, on November 3 announced their plans to merge. The merger will give the new bank, Itau Unibanco Holding, “the necessary flexibility to increase Brazil’s presence in the international arena,” according to a joint press release by Itau and Unibanco. Unibanco’s chief executive Pedro Moreira Salles will become Board Chair and Itau’s Roberto Egydio Setubal will be the chief executive of the new bank. The merged bank will have combined assets of 575.1 billion reais or US$ 265 billion. Services include credit card and insurance. The consolidation announcement has resulted in an increase in both of the bank’s shares, after sharp drops in their values.

Colombian Colonels Sacked for Alleged Murders of Civilians

Three colonels were among the 27 Colombian military personnel fired October 29 under suspicion of murdering civilians. The murder victims were impoverished young men from Bogotá. Seeking the high body counts that would gain them promotions, the military staff lured youths from poor areas with promises of employment. The military falsely represented these murdered civilians as casualties in the government’s war on guerilla groups. The bodies of 11 young men from Bogotá were found hundreds of miles north in the militarized province of Norte de Santander. The killing of civilians by state forces to inflate casualty statistics is not an isolated occurrence. The ongoing investigation into hundreds of similar crimes will have serious implications for the army and the government of President Alvaro Uribe. Since American aid money is used to support the military’s battle against insurgent groups, the US government will also face scrutiny for supporting a military guilty of human rights violations. The Colombian government is trying to reduce the incentive for such murders by making the capture rather than killing of guerilla soldiers the pathway to advancement. However, the change in policy comes too late to bridge the breach of trust existing between the military and the civilian population it is meant to protect.

Mexican Congress Approves Foreign investment in PEMEX

Mexico’s nationalized energy industry has responded to decreasing national production and international economic downturn by relaxing regulations in hopes of attracting international prospectors and investors. Left-wing politicians prevented the complete privatization of Petroleos Mexicanos (PEMEX). With a 10 per cent decrease in oil production this year, the majority of Mexico’s legislators were in favour of attempts to revive their flagging oil industry. The new terms attempt to attract international firms capable of exploring for oil. While the technological investment of foreign firms is required by Mexico, this investment may not be forthcoming unless companies are guaranteed to profit from any reserves discovered in Mexican territory. While rising oil prices have compensated somewhat for the drop in production, the health of Mexico’s export sector depends on finding new sources of oil.

Renewed Diplomatic Exchange Between the EU and Cuba

The signing of a declaration between the European Union (EU) and Cuba marks the end of five years of sanctions. The agreement indicates the EU’s willingness to engage in political dialogue with the communist country. The EU has also vowed millions of Euros in relief aid. This money will be vital in Cuba’s recovery from Hurricanes Ike and Gustave, which caused billions in damage when they hit the island in September. The EU mounted sanctions against Cuba in 2003 in response to the mass imprisonment of dissidents. However, the replacement of Fidel Castro by his brother Raul in 2006 encouraged the restoration of ties. This decision puts the EU at odds with the United States, who maintain an economic embargo against communist Cuba. However, the official agreement between the EU and Cuba was followed by a UN vote in favour of lifting the American embargo on Cuba. The US was not among the 185 of the 192 members of the UN’s General Assembly voting against the embargo. While the decision to end the embargo is ultimately up to the US, the combination of international pressure and new American leadership following the November elections could lead to a reconsideration of 46 years of embargo.

Printed from:	November 2008, Volume 7, Issue 8 ISSN 1703-7964
News Briefs Brazil’s banks merge to compete internationally Brazil’s second and third largest banks, Itau and Unibanco, on November 3 announced their plans to merge. The merger will give the new bank, Itau Unibanco Holding, “the necessary flexibility to increase Brazil’s presence in the international arena,” according to a joint press release by Itau and Unibanco. Unibanco’s chief executive Pedro Moreira Salles will become Board Chair and Itau’s Roberto Egydio Setubal will be the chief executive of the new bank. The merged bank will have combined assets of 575.1 billion reais or US$ 265 billion. Services include credit card and insurance. The consolidation announcement has resulted in an increase in both of the bank’s shares, after sharp drops in their values. Colombian Colonels Sacked for Alleged Murders of Civilians Three colonels were among the 27 Colombian military personnel fired October 29 under suspicion of murdering civilians. The murder victims were impoverished young men from Bogotá. Seeking the high body counts that would gain them promotions, the military staff lured youths from poor areas with promises of employment. The military falsely represented these murdered civilians as casualties in the government’s war on guerilla groups. The bodies of 11 young men from Bogotá were found hundreds of miles north in the militarized province of Norte de Santander. The killing of civilians by state forces to inflate casualty statistics is not an isolated occurrence. The ongoing investigation into hundreds of similar crimes will have serious implications for the army and the government of President Alvaro Uribe. Since American aid money is used to support the military’s battle against insurgent groups, the US government will also face scrutiny for supporting a military guilty of human rights violations. The Colombian government is trying to reduce the incentive for such murders by making the capture rather than killing of guerilla soldiers the pathway to advancement. However, the change in policy comes too late to bridge the breach of trust existing between the military and the civilian population it is meant to protect. Mexican Congress Approves Foreign investment in PEMEX Mexico’s nationalized energy industry has responded to decreasing national production and international economic downturn by relaxing regulations in hopes of attracting international prospectors and investors. Left-wing politicians prevented the complete privatization of Petroleos Mexicanos (PEMEX). With a 10 per cent decrease in oil production this year, the majority of Mexico’s legislators were in favour of attempts to revive their flagging oil industry. The new terms attempt to attract international firms capable of exploring for oil. While the technological investment of foreign firms is required by Mexico, this investment may not be forthcoming unless companies are guaranteed to profit from any reserves discovered in Mexican territory. While rising oil prices have compensated somewhat for the drop in production, the health of Mexico’s export sector depends on finding new sources of oil. Renewed Diplomatic Exchange Between the EU and Cuba The signing of a declaration between the European Union (EU) and Cuba marks the end of five years of sanctions. The agreement indicates the EU’s willingness to engage in political dialogue with the communist country. The EU has also vowed millions of Euros in relief aid. This money will be vital in Cuba’s recovery from Hurricanes Ike and Gustave, which caused billions in damage when they hit the island in September. The EU mounted sanctions against Cuba in 2003 in response to the mass imprisonment of dissidents. However, the replacement of Fidel Castro by his brother Raul in 2006 encouraged the restoration of ties. This decision puts the EU at odds with the United States, who maintain an economic embargo against communist Cuba. However, the official agreement between the EU and Cuba was followed by a UN vote in favour of lifting the American embargo on Cuba. The US was not among the 185 of the 192 members of the UN’s General Assembly voting against the embargo. While the decision to end the embargo is ultimately up to the US, the combination of international pressure and new American leadership following the November elections could lead to a reconsideration of 46 years of embargo.
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