Archive for the ‘Ecuador’ Category

The upcoming World Cup Carnival of Latin America and the Caribbean

Monday, June 9th, 2014

LatinAmerThe spotlight’s on Brazil this week, as the World Cup inaugural game is scheduled for Thursday, June 12 in Sao Paolo. Let’s hope the games don’t turn into a disaster.

ARGENTINA
Study: Poverty Tops 30% in Suburbs of Buenos Aires

In Argentina, Wine, Art and Altitude

BAHAMAS
BAHAMAS HIRES LAW FIRM FOR ‘SURVEILLANCE AND PRIVACY MATTERS’ AFTER NSA REVELATIONS

BOLIVIA
Chic Stops in the Suburbs of La Paz, Bolivia

BRAZIL
São Paulo unions threaten general strike for World Cup amid subway protests
Days of subway strikes raise fears of transport chaos during tournament in Brazil; union leaders say other sectors could join industrial action

Brazil finds bumpy path on way to becoming world oil power

CHILE
More Than 8,000 Affected in Chile by Storm

COLOMBIA
Colombia’s Peace Talks Backfire on Santos
FARC bombings of pipelines and electricity towers increase while negotiations drag on.

The Economist endorses Santos: Colombia’s presidential election
A vote for peace
To stop the killing, Colombians should re-elect Juan Manuel Santos
, while Colombia Politics points out that We’re voting for a president not for peace. Meanwhile, pressure from candidate Zuluaga is already achieving a cease-fire from the FARC.

Colombia to set up truth commissionIvan Marquez, Farc commander, Havana, 27 May 14
Colombia’s government and Farc rebels agree to set up a truth commission to investigate thousands of deaths in five decades of conflict.

CUBA
Gag-inducing Travel Tips from Sarah Hall

Where Are the “Self-Employed” and “Reform” Defenders?

DOMINICAN REPUBLIC
Dominican Republic delivers on immigration promise

ECUADOR
In the cradle of Ecuadorean soccer, the beach is the fiercest field
Esmeraldas, Ecuador, is home to only 3 percent of the national population but it makes up almost half of the country’s World Cup team. Is the beach the secret?

GUATEMALA
Guatemala ex-police chief jailed for life by Swiss court

HAITI
Haiti police fire tear gas at anti-government protest

HONDURAS
More effects of America’s weak foreign policy: U.S. Crew Is Arrested on Honduras River Job
A salvage company has a contract to dredge the Patuca River and raise valuable mahogany and cedar logs, but weapons on the company ship mean time in jail.

Honduran Police Arrest 11 Undocumented Cubans

IMMIGRATION
REPORT: Illegals Bring Contagious Diseases Across Border – Obama Spreads Them Around Country

JAMAICA
Gun-toting gays drive fear in citizens of garrison communities

MEXICO
In Tampico, Mexico, where the drug war rages, ‘the walls have ears’

LA Times Columnist Is Happy US Marine Is in Mexican Prison

Mexico defends decision to prosecute US marine

Pope Francis accepts invitation to visit Mexico

PANAMA
Panama’s Canal Divides A Country Into Haves And Have-Nots

PERU
Peru’s Mining Communities Left In The Dust With Broken Promises Of Schools, Jobs

PUERTO RICO
You heard about it from Fausta’s blog, but now BLUE MODEL GOES BELLY-UP
Media Catches Up on Puerto Ric
o

Work Stoppages at Public Firms in Puerto Rico Against Cuts

URUGUAY
Puff-piece on Mujica at al-Jazeera:
Uruguay’s Mujica: New global role model?
Uruguay’s ‘humble’ president defies imperial and corporate hegemony with a series of unorthodox policies.

Mujica certainly knows how to make a fashion statement:

VENEZUELA
21st Century Socialism:
Poverty Shoots Up in Venezuela; as I mentioned last week, in the last year of Hugo Chavez’s life, extreme poverty increased by a whopping 38% over the prior year.

THE FRACAS IN CARACAS
Venezuela Runs out of Drinking Water

The week’s posts and podcast:
Argentina: Secretary of national thought

#DDay70 Interpretive dance?

Ecuador: Something’s rotten in the gold swap

Venezuela-Cuba Facilitate Infiltration of Iranian Agents

Venezuela: Leopoldo Lopez to remain jailed while on trial UPDATED

En español: El Rey Juan Carlos en la Unidad de Quemados

Carlos Eire’s Capt. Louis Renault moment

Democrat Chavista for Congress!

Ecuador: Selling gold

At Da Tech Guy Blog:
Immigration’s lost children

Brazil: World Cup disaster ahead

Podcast:
Venezuela, Brazil, Mexico & US-Latin America stories of the week


Ecuador: Something’s rotten in the gold swap

Friday, June 6th, 2014

Following up on the Ecuadorian gold story, it turns out it’s not quite a sale, it’s a swap:

On Tuesday, Ecuador announced that it had swapped 1,165 bars of gold with Goldman. The gold is worth nearly $600 million, based on current prices. Goldman GS 1.76% , in return, is giving the Ecuadorians “instruments of high security and liquidity,” which is likely cash or something close to it.

And Ecuador gets to keep its gold. As part of the deal, three years from now, the two will reverse the swap. Ecuador gets its gold back. And Goldman gets the going price for 1,165 yellow bars in 2017.

Stephen Gandel looks at the deal

. . . there are a few ways Ecuador could end up making $20 million on the deal. Ecuador could be betting that the price of gold will fall 20% over the next three years. Another way would be for Ecuador to take the cash it gets from the swap and invest it elsewhere in something that will make 20% over the next three years, not an easy task given that the average bond is yielding just 1.8%.

Or Ecuador could have done another swap, this time with the dollars it received from Goldman for Ecuadorian bonds. It would, of course, have to pay Goldman another fee for that. But that swap would pay the spread between U.S. three-year interest rates at about 0.85%, and Ecuadorian interest rates, which are around 7% or 8%, or a little over 20% during the three years.

So, then, why isn’t everyone doing Ecuadorian swaps? I mean, it’s guaranteed money. For one, the fee that Goldman or anyone else charges to do these deals must be pretty high. Also, if Ecuador defaults, you lose all your money, and you still have to repay the swap.

And Ecuador has recently defaulted, sort of. Five years ago, Ecuador tricked its lenders into thinking it was going to default on its debt. It told banks and investors that it didn’t think it would be able to repay about $3 billion in bonds. Those bonds, as you would expect, plunged in value to about $0.30 for every dollar Ecuador had borrowed.

Once the bonds plunged in value, Ecuador started buying them, eventually snapping up 90% of the much cheaper bonds. The move wiped out the debt and saved the country nearly $2 billion, which was also how much the banks and investors lost on those bonds.

Two words of advice: STAY AWAY.

Ecuador: Selling gold

Tuesday, June 3rd, 2014

Having defaulted “by choice” in the past, Correa continues to pave the way for issuing debt in the future:
Ecuador Sends Gold Bricks to Goldman Sachs in Liquidity Hunt

Ecuador agreed to transfer more than half its gold reserves to Goldman Sachs Group Inc. for three years to give the government easier access to cash.

Money quote (emphasis added):

The deal comes as the South American country’s government, which defaulted on about $3.2 billion of bonds five years ago, seeks to cover a budget deficit forecast by the Finance Ministry to swell to a record $4.94 billion this year. President Rafael Correa said in April he also planned to sell about $700 million of foreign debt this year in the country’s first international bond sale since the 2008 and 2009 default.

Correa must be counting on enough suckers being born every minute.

Sing it!

The free market Carnival of Latin America and the Caribbean

Monday, June 2nd, 2014

LatinAmerLatin Free Markets Rule as Pacific Ocean Nations Beat Atlantic

ARGENTINA
Argentina Leaves Singer for Last in Preparing Bond Market Return

After a 20-hour meeting with officials from the Paris-based group of creditor nations, which kept President Cristina Fernandez de Kirchner awake until 2 a.m., Argentina said yesterday that it agreed to pay $9.7 billion over five years to settle claims stretching back to the government’s record $95 billion default in 2001. South America’s second-biggest economy hasn’t issued bonds in international markets since it stopped payments.

Solving the remaining dispute with holdout creditors including billionaire Paul Singer’s Elliott Management Corp. is becoming more urgent with foreign-exchange reserves stuck near an eight-year low. Argentina needs the money to fund investment, defend its currency and make payments on restructured bonds, while any proceeds from a U.S. bond sale could be seized by creditors backed by court orders saying they’re owed billions.

BRAZIL
Video (starts right away): Staying safe at the World Cup in Brazil
Health and safety fears are growing as foreign fans prepare to travel to Brazil with worries of crime, disease, policing and fake medicines

Brazil’s World Cup Is An Expensive, Exploitative Nightmare
Brazilians angry at their government and FIFA could turn this giant soccer tournament into a tipping point. Are these corrupt, elitist spectacles worth it?

Nao Vai Ter Copa has become a national rallying cry. There Will Be No World Cup.

CHILE
Will Chile’s politicians ruin the Latin tiger?
The free-market revolution in Chile is remarkable. If you look at the Economic Freedom of the World rankings, Chile was in last place in 1970. Now it’s around 10th. It would be tragic if Leftists ruined it

COLOMBIA
García Márquez’s Blind Spot

CUBA
Two Generations Lost to Communism

The Castros in Their Labyrinth

ECUADOR
No Messiah Please, We’re Ecuadorian

Beware of pickpockets: Tory MP is robbed on first day of mountaineering jaunt to Ecuador – after ignoring Foreign Office advice

MEXICO
Marine jailed in Mexico recounts harrowing attempt to escape from prison

Oil-Tinged Graft Scandal Roils Mexico
Ex-chief of oil-services firm with close ties to the PAN political party is arrested and charged with allegedly defrauding a Citigroup unit

PANAMA
Commercial shipping lanes changed in Panama to save humpback whales

PARAGUAY
World’s Happiest Country? Would You Believe Paraguay?

PERU
Spanish company to upgrade Peru refinery in $3.5 bn deal

PUERTO RICO
In Puerto Rico, Cocaine Gains Access to U.S

VENEZUELA
Tick-tock, on Relojes del Chavismo

The week’s posts and podcast:
Ecuador’s looking for a few good extras

Colombia: Zuluaga change of heart?

Mexico: PRD lobbying Washington

Venezuela: US to sanction chavistas

Cuba: Why is the US Chamber of Commerce chief visiting?

Brazil: World Cup blues UPDATED

En español: Terapia intensiva #209

Venezuela: 9.8% in extreme poverty

Venezuela: Wives of jailed mayors win

At Da Tech Guy Blog:
Venezuela: Bi-partisan US Congress approves sanctions bill

Colombia: What the FARC really want

Podcast:
Elections in Colombia PLUS other US-Latin America stories of the week

Ecuador’s looking for a few good extras

Saturday, May 31st, 2014

Faux Activism: Recruiting Anti-Chevron Protesters for $85 a Head (emphasis added)

 Several dozen demonstrators gathered outside the Permian Basin Petroleum Museum in Midland to condemn Chevron, which held its annual meeting on Wednesday at the historic site in the west Texas oil patch. Humberto Piaguaje, one of the indigenous Ecuadorian leaders involved in a massive lawsuit against the oil company, helped lead the sign-waving, slogan-chanting cohort. To fill out the ranks of the demonstration, a Los Angeles-based production company offered local residents $85 apiece to serve as what the firm described in a recruiting e-mail as “extras/background people.”

Julieta Gilbert, executive producer of DFLA Films, said in the e-mail that the company “need to get a group of people to help us document this event. … We will pay each one of them $85. They will be there for a couple of hours (8am to 12 pm). We need ethically [sic] diverse people.”

Heck, at those rates, I know several “ethically diverse” bloggers that may be willing to help out.

The Memorial Day Carnival of Latin America and the Caribbean

Monday, May 26th, 2014

LatinAmerWith deep gratitude to all who have served our beautiful country in the armed forces, this week’s Carnival.

ARGENTINA
Spanish oil company Repsol ends operations in Argentina
Spanish oil company Repsol has ended its operations in Argentina, two years after the government seized its assets.

Last month the Argentine congress gave final approval to pay $5bn (£3bn) in compensation for Repsol’s stake in Argentine oil firm YPF.

The Spanish company has now announced that it has sold the last batch of bonds it received to cover its losses.

Argentina’s Jewish community talks fondly of friend Francis in the Vatican
Rabbi Abraham Skorka only one of large number of Argentinian Jews with whom pope has developed strong, personal ties

A Desperate Mother’s Search Leads to a Fight Against Sex Trafficking
Desperate for answers about her daughter’s disappearance in 2002, Susana Trimarco started the Fundación María de los Ángeles, an organization that rescues and rehabilitates sex slaves in Argentina.

BAHAMAS
Ah, Bahamas: Sun, Sand and the NSA Recording Your Cell Phone Calls

BOLIVIA
Bolivia Hires Spain’s Isotron to Build Solar Power Plant

BRAZIL
Brazil Deploys Vast World Cup Security Plan
Brazil is spending $855 million on security and safety during the 2014 FIFA Soccer World Cup, which the country will host from June 12 to July 13, the government said on Friday.

Freak hail storm strikes World Cup 2014 host city Sao Paulo
A hail storm covers streets in ice in the Brazilian city of Sao Paulo which will host the opening match of the football World Cup in less than a month

CHILE
Revolutionary ‘tears-up’ £300m student debt to protest fees
A Chilean artist has destroyed £300m of student debt ‘IOUs’ to protest tuition charges

COLOMBIA
Colombia’s President Santos to face Zuluaga in run-off vote
Official results from Colombia’s presidential election say the incumbent President Juan Manuel Santos will face his main rival, Oscar Zuluaga, in a run-off next month.

Oscar Iván Zuluaga, a conservative candidate closely allied with former President Álvaro Uribe, won the most votes in the first round of Sunday’s presidential election.

CUBA
Yoani Sanchez’s Independent Online Publication Unblocked in Cuba

From Inside Cuba’s Burning Fire

Miami, Safe Haven for Cuban Torturers? Federal Case of Ethiopian Abuser Reminder, You Cannot Hide from US Justice

Andres Oppenheimer: In Cuba, technology may beat censorship

A Cagy KGB Rabbi

ECUADOR
Ecuador to Begin Oil Drilling in Amazonia

Presidente for life: Ecuador’s Correa Seeks to Allow Indefinite Re-Election of All Officials
Ecuador’s President Asks for Constitutional Amendment

EL SALVADOR
6 Gunned Down on Bus in El Salvador

GUATEMALA
U.S. Sentences Guatemala Ex-President to 5 Years for Money Laundering

HONDURAS
In Violent Honduras, Soccer Is Offering Young Children An Escape From Gangs, Drugs

JAMAICA
Lobbyists call for Jamaica to decriminalize pot

MEXICO
Marine hero stuck in Mexican prison on gun charges

Mexican Zapatista head Marcos steps down
The leader of the Zapatista rebels in southern Mexico, Subcomandante Marcos, announces he is leaving the 20-year-old guerrilla group.

Mexican federal forces rescue 68 CentAm migrants being held captive

How Mexico’s New President Is Turning His Country Into a Servile US Client
Enrique Peña Nieto is using violence and repression to dismantle his country’s progressive legacy.
So, is servility why Mexico’s holding Andrew Tahmooressi?

PERU
U.S. Opens Talks with Peru on Waiving Visas

Attorney: Joran van der Sloot to marry in Peruvian prison, become father

PUERTO RICO
Borinqueneers to get Congressional Gold Medal

URUGUAY
Marijuana to Be Sold for Less Than $1 a Gram in Uruguay
Authorities said the price was deliberately set below what marijuana sells for illegally, and the quality control of the drug available at pharmacies would be “very high”

VENEZUELA
CNN team denied right to cover Venezuela local elections

Surprise! Latrine America backs Maduro in Venenozuela

Mythbusting the reduction of poverty

Unfortunately, A Bleak Future For Venezuelans.

Crackdown presents challenge to Citizens Energy, Joe Kennedy II

The week’s posts and podcast:
Puerto Rico: rising volume of drugs coming from Venezuela

Colombia: Who will be the next president?

En español: Unidad de quemados

Mexico: Kevin’s selfie

Bob Menendez on the Venezuelan nightmare

LatAm in top-10 happiest

UN: Cuba to chair World Health Assembly

Venezuela: Chavistas rolling in dough

At Da Tech Guy Blog:
Cuba and moral blindness

Podcast:
US-Latin America stories of the week


The abridged Carnival of Latin America and the Caribbean

Monday, May 19th, 2014

LatinAmerSince last week I was attending my son’s college graduation, this week’s Carnival is brief.

Congratulations to my son in his wonderful achievement.

ARGENTINA
Court In Argentina Strikes Down `Truth Commission` With Iran
A federal appeals court in Argentina declared unconstitutional a controversial agreement between the South American country and Iran to investigate the 1994 bombing of a Jewish community center.

Argentina’s Vice President May Have to Testify
An Argentine federal appeals court decision on Friday opened the door for Vice President Amado Boudou to be called to testify as a suspect in a criminal investigation.

La herencia kirchnerista
La sociedad enfrenta divisiones inducidas desde el poder político, y la unión nacional se ha vuelto a convertir en una asignatura constitucional pendiente

BRAZIL
Police clash with protesters near São Paulo airport
Tear gas and rubber bullets fired amid demonstrations less than a month before Brazilian city hosts World Cup opener

COLOMBIA
Inside Medellin: How Pablo Escobar’s hometown hopes to become South America’s ‘Silicon Valley’
Medellin was once the world’s most murderous city, famed for cocaine cartels and death squads. But now, writes Harriet Alexander, it is putting its business acumen to good use, and reinventing itself as a thriving tech hub

Colombia rebels and government reach agreement on drugs
FARC will divorce itself from the drug trade.
Color me skeptical.

Alvaro Uribe president again in a month. What happens then?

CUBA
Remarks by Cuban author and democracy leader, Orlando Luis Pardo Lazo, at Johns Hopkins University’s School of Advanced International Studies (SAIS) in Washington, D.C.

ECUADOR
Galapagos emergency over stranded cargo ship
Ecuador has declared an emergency in the Galapagos Islands, saying that a cargo ship which ran aground last week still poses a threat to the archipelago’s fragile ecosystem.

HONDURAS
SLAUGHTER OF HONDURAN CHILDREN LIKELY LINKED TO TEXAS ILLEGAL IMMIGRATION INFLUX

MEXICO
Mexico ‘Los Rojos crime cartel boss’, Leonor Nava Romero, arrested
Mexican authorities say they have jailed the head of a major criminal gang in the southern state of Guerrero.

PUERTO RICO
The Fight To Save Puerto Rico’s ‘Alcatraz Of The Caribbean’, the Oso Blanco,

Oso Blanco is on the National Register of Historic Places and was named after the cement brand used to build it. Among its claims to fame: a 1974 exhibition fight featuring boxing legend Muhammad Ali, who sparred with an inmate while Puerto Rican actress and singer Iris Chacón served as referee.

PERU
Peruvian Regional President Suspected in Murder of a Rival
Court Issues Arrest Warrants for Cesar Alvarez and Others in Connection With Killing of Activist in March

VENEZUELA
Taps: Last of Protesters Keep Vigil in Venezuela
A small group of protesters in the city San Cristóbal, the town where the recent nationwide demonstrations began, try to keep up the pressure after the government largely succeeded in cowing the opposition.

I am afraid there is no peaceful outcome for Venezuela anymore

In the land of silicone socialism

The week’s posts:
Argentina: Joseph Stiglitz’s conflict of interest

Argentina: World’s largest dinosaur found

Saturday night kizomba: Isabelle and Félicien

Brazil: 1 stadium, 3 x the cost

En español: La historia de Argenzuela

At Da Tech Guy Blog:
Venezuela: Crackdown time


The Chevron settlement Carnival of Latin America and the Caribbean

Monday, May 12th, 2014

LatinAmerLast week Chevron received from Patton Boggs, the former #1 lobbying law firm in the country, an apology, a $15million payment, and most remarkably,

Perhaps more unusual is the law firm’s agreement to deliver partners James Tyrrell and Eric Westenberger to Gibson Dunn’s New York offices for depositions overseen by a court-appointed special master. The firm has also agreed to turn over documents, provided its former clients don’t prevail on challenges under the attorney-client privilege.

This apology is phenomenally interesting.

ARGENTINA
Litigious investors ask US Supreme Court to deny Argentina a ‘do-over’ on $1.4B debt ruling

BOLIVIA
Bolivian mayor caught on video groping journalist, and he was persistent, too,

BRAZIL
Is Brazil Losing Global Momentum?

1,500 Attack Brazilian Construction Giant’s HQ

Brazil’s frantic eleventh hour World Cup preparations

CHILE
Chile president to visit Obama on June 30

Bachelet won but Chile police clash with activists as thousands protest for free education

COLOMBIA
Colombia: Hacker Tried to Sabotage Peace Talks

CUBA
Cuba: The Splendid Little War – A Boardgaming Way Review

AIG Fined for Cuba Sanctions Violations

DOMINICAN REPUBLIC
Haiti, Dominican Republic Postpone Meeting

ECUADOR
In Self-Promotion Abroad, Ecuador’s Correa Omits His Repression of Critics at Home

GUATEMALA
A Coffee Crop Withers
Fungus Cripples Coffee Production Across Central America

MEXICO
Mexico to Try Former State Governor for Embezzlement

NICARAGUA
BORDER DISPUTE
Costa Rica’s foreign minister accuses Russia of helping militarize Nicaragua

Russia “announced the desire to have bases in Cuba, Venezuela and Nicaragua, with the euphemistic name of ‘bases for refueling and resupplying’ for its ships. But we know it’s not just about that,” Castillo said.

PANAMA
Panama’s Construction Union Ends Strike

PERU
A 5,000 feet free fall: Peru air force officer survives fall after parachute malfunction

PUERTO RICO
Puerto Rico Unveils Economic Recovery Plan Details

URUGUAY
Monsanto plans to patent genetically modified marijuana in Uruguay

VENEZUELA

 

Policeman killed in Venezuela after security forces break up protester camp
Violent clashes between police and protesters after troops arrest 243 students in pre-dawn raids on tented camps in Caracas leaves one officer dead

Venezuelans Ask What Now After Protest Camp Raids

Machurucuto, 1967 – Venezuela’s Bay of Pigs: Fidel Castro’s first ploy to lay his hand on Venezuela’s oil riches

Can the United States Play a Role in Venezuela?

Is Venezuela seeking the status of pariah state?

BREAKING NEWS: Ros-Lehtinen Venezuela sanctions bill passes House Foreign Affairs Committee, clears first hurdle to holding Maduro accountable

Capital flight in Venezuela could well exceed $405.8 billion

One for the “no sh*t, Sherlock” file: The ‘Dialogue’ in Venezuela Is a Fraud
More than 500 citizens have been arrested since negotiations began.

The week’s posts and podcast:
Panama: And now, price controls

The Boring Veins of Latin America

En español: Terapia Intensiva 206

Chile: Down with entrepreneurs

Ecuador: Patton Boggs to pay Chevron $15 million

Colombia: Another campaign aide quits

Venezuela: Armed civilians fight protesters

Colombia: Santos campaign chief resigns

At Da Tech Guy Blog:
What the #hashtag?

Milton Friedman and the Sahara, Caracas and water

Podcast:
US-Latin America stories of the week


Ecuador: Patton Boggs to pay Chevron $15 million

Wednesday, May 7th, 2014

HUGE:
Following Chevron’s win in the fraud case committed against them, Chevron and Patton Boggs settle their epic legal battle over jungle oil pits in Ecuador

Chevron and Patton Boggs have settled disputes linked to long-running litigation over toxic drilling waste pits in Ecuador, with Patton Boggs agreeing to pay Chevron $15 million, issue a statement of regret, and withdraw from the Ecuador case. Chevron agreed to release all claims against Patton Boggs and its partners.

The settlement is a stunning and highly unusual setback for any law firm, let alone the nation’s leading lobbying firm, long a bedrock of the Washington establishment. While the payment will cover only a tiny portion of the money Chevron has spent on the legal battle, the settlement overall tarnishes the reputation of Patton Boggs.

I know of no other instance where a top lobbying law firm has settled publicly in such terms, particularly when

Now, as part of the settlement with Chevron, Patton Boggs has agreed to assign its 5 percent interest in any money the plaintiffs might obtain. It also agreed to assist Chevron with discovery against the Ecuadorian plaintiffs and their New York-based lawyer Steven Donziger, who has been doggedly fighting Chevron for more than two decades and who Chevron has argued was part of a racketeering scheme to obtain a fraudulent judgment.

Daniel Fisher at Forbes puts it best: Patton Boggs Pays Chevron $15 Million To Rid Itself Of Donziger

The settlement, down to the humiliating, pre-negotiated press release, resembles deals Chevron has negotiated with London-based Burford Capital and other parties that assisted New York attorney Steven Donziger in his attempt to make the oil company pay for widespread pollution left over from a Texaco drilling program in Ecuador in the 1970s and 1980s.

Law firms are rarely found liable for tactics they use to zealously represent their clients, and multimillion-dollar settlements are even rarer. Perhaps more unusual is the law firm’s agreement to deliver partners James Tyrrell and Eric Westenberger to Gibson Dunn’s New York offices for depositions overseen by a court-appointed special master. The firm has also agreed to turn over documents, provided its former clients don’t prevail on challenges under the attorney-client privilege.

Maybe, just maybe this will give pause to anyone considering to engage in fraudulent legalfare against U.S. corporations.

Related:
Why Patton Boggs Has Come to Regret Picking a Fight With Chevron

A federal judge in New York has dismissed a suit Patton Boggs filed against Chevron (CVX), which accused the oil giant of bad faith in response to the law firm’s attempt to enforce a multibillion-dollar pollution judgment in Ecuador. While the fizzling of the Patton Boggs case by itself might not seem significant, the dismissal leaves behind Chevron’s counter claims against the law firm, in which the oil company accuses the Washington partnership of participating in a massive fraud and coverup related to that same Ecuadorian judgment.

I’lll be in Silvio Canto’s podcast tonight at 8PM Eastern to talk about this and other Latin American news.

UPDATE:
Paul M. Barrett writing for Business Week:

In nearly three decades of writing about the law business, I can’t think of a comparable retreat.

Linked to by Doug Ross. Thank you!

Linked to by Instapundit. Thank you, Ed Discoll!

Linked to by Bad Blue. Thank you!

Linked to by American Thinker. Thank you!

Le-gal In-sur-rec-tion‘s post of the day. Thank you! Understatement of the year: “Chevron must have really good lawyers.”


The cinco de mayo Carnival of Latin America and the Caribbean

Monday, May 5th, 2014

Today is May 5th, in Spanish cinco de mayo, and whether you celebrate or not, ignore the insecure who don’t want you to avail yourself of business opportunities.

juan_soloStay thirsty, my friends.

(Juan Solo via Doug Mataconis‘s FaceBook feed)

ARGENTINA
ARGENTINA Y LA NARCO-CORRUPCION

Slums in Buenos Aires
The unplugged
Efforts to integrate shantytowns are hampered by a lack of trust and money

BRAZIL
Welfare and tax boost for Brazil poor
Brazil’s President Dilma Rousseff announces an increase in social security payments and tax cuts ahead of her re-election campaign in October.

Poll Shows Brazil President Could Face Runoff
The latest poll of Brazilian voters is showing for the first time that President Dilma Rousseff may face a runoff in October’s presidential election
due to a lackluster economy.

Inflation is running around 6%, while economic growth isn’t expected to surpass 2% this year.

CHILE
Chile’s electoral system
Ending the permanent draw

COLOMBIA
A Dutch Guerillera: The Foreign Face of FARC’s Civil War
Tanja Nijmeijer of Holland spent more than 10 years fighting with the rebel group FARC in the jungles of Colombia. More recently, she has been part of the guerillas’ peace negotiating team in Cuba. What drives her?

A Building Boom in Bogotá
With a growing economy, a declining crime rate and an influx of developers, Colombia’s capital is seeing a rise in luxury housing; Richard Meier’s vision in glass and steel

Rescuers search for Colombia miners
Rescuers are using large mechanical diggers to try to reach people trapped underground after an illegal gold mine collapsed in Colombia.

CUBA
Pastor/ex-political prisoner Omar Gude and wife testify on lack of religious liberty in Cuba

Castro’s Russian Power Play Over the European Union

Castronoid lobby launches propaganda campaign on Twitter, on the Web, and in Washington D.C

ECUADOR
Ecuadorian president demands that indigenous group give up defamers
Rafael Correa accuses Kichwa leaders of acting above the law in holding three opposition activists convicted of defaming him

EL SALVADOR
El Salvador: Ex-President Faces Charges
Former President Francisco Flores will face embezzlement and other corruption charges related to what prosecutors said Wednesday was the misappropriation of at least $5.3 million in loans from Taiwan during his tenure, from 1999 to 2004.

GUATEMALA
Attorney General in Guatemala Excluded From Re-election Bid
Claudia Paz y Paz, who has taken on a former dictator and top drug traffickers, was left off of a shortlist of candidates to be considered for re-election.

HONDURAS
Honduras Detains 9 Undocumented Cuban Migrants en Route to U.S.

Honduras children ‘killed by gangs’
Authorities in Honduras are investigating the deaths of at least seven children who may have been murdered after refusing to join criminal gangs.

JAMAICA
Jamaica scraps bank withdrawal tax, but Paco Santos may have had a business opportunity:

MEXICO
MEXICO CONSIDERS INCREASE IN MARRIAGE AGE TO 18

Mexico seizes ship carrying 68,000 tonnes of illegal iron
Mexican authorities say they have seized a ship belonging to a drugs cartel which was carrying 68,000 tonnes of illegal iron ore.

NICARAGUA
Costa Rica warns Russia is arming Nicaragua

Last month, Nicaraguan President Daniel Ortega said his country was “committed to further strengthening and modernising the army” with the help of any country willing to provide aid.

He did not give details of an agreement between Nicaragua and Russia.

But Russia’s ambassador in Managua had confirmed in March that Moscow is interested in building a military resupply base in Nicaragua.

Russian defense chief Sergei Shoigu has said that Russia is weighing increasing its military presence in countries including Nicaragua, Cuba and Venezuela – particularly bases to refuel Russian warplanes far from home.

PANAMA
Juan Carlos Varela Declared Victor in Panamanian Presidential Vote
Current Vice President Has 39% of the Vote With 60% of Votes Counted
, with 76% turnout:

Panama’s economy has grown by an average of more than 8% in recent years and is expected to expand by 7% this year, by far the best performance in the Americas. Since 2002, poverty has been slashed from more than 40% to a quarter of the population.

“One good thing is that that there are no big ideological differences,” Nicolás Ardito-Barletta, a former World Bank economist who served less than a year as president in the mid-1980s, said before the vote. “Nobody’s going to kill the goose.”

In Panama Vote, a Noncandidate Matters
Presidential elections in Panama on Sunday feature a crowded field of seven candidates, but are widely seen here as a referendum on one man who won’t appear on the ballot: conservative President Ricardo Martinelli.

PERU
Visit Choquequirao, Peru
Explore Peru’s famous Incan ruins in the lesser-known but still breathtaking city of Choquequirao

PUERTO RICO
Puerto Rico leads world in Walgreens, Walmart stores per sq. mile

Drug Trade Takes a Toll on Puerto Rico, Police Chief Says

URUGUAY
Uruguay unveils legal marijuana plan
Uruguay’s authorities reveal how marijuana will be produced and sold legally in the country at less than $1 a gramme.

VENEZUELA
Venezuelan government arrests 58 foreigners ‘for inciting protests’
Interior Minister denounces alleged plot to promote unrest and overthrow Venezuela’s government as it is revealed dozens of foreign nationals are among the detained

Venezuelan Jewish Leader Says Anti-Semitism Has ‘Exploded’ in Recent Years in Latin America

Tales Of Bolivarian Inefficiency III: Chávez’ Frozen Cuban Dream

Chávez initially promised that Coppelia ice cream would be made with Venezuelan products and supplies. Milk products from Lacteos Los Andes (now practically bankrupt), sugar from CVA Azucar (now shut down, see first post) and orange, guava, mango, peach and coconut.

Well, 18 months later and now Chávez is dead, Coppelia produces ice cream, mostly creamy flavors, in irregular and limited fashion. Raw materials and supplies are all imported. Forget about all those fruit flavors, but its manager says raw materials come from Lacteos Los Andes, which is practically shut down. [See also Chavez’s Farming Utopia Withers as Pet Projects Abandoned]

The Money-Losing Machine in Caracas
Forget Chávez and his Bolivarian Revolution — it’s oil that wrecked the Venezuelan state.

Which brings us, finally, to the million-dollar question: In post-Chávez Venezuela, who has the political capital to institute the deep and painful reforms the country requires to break out of this wicked cycle? If Chávez himself — who was the closest to God you can get in Venezuelan politics — didn’t dare to touch the gasoline subsidy or move against the Armed Forces’ involvement in organized crime, who would dare? In the answer to that question, more than in the epic battles painted by the likes of María Corina Machado, lies the key to Venezuela’s long term future.

May 1 follies

Cedice: Fighting Socialism In Venezuela: The Work Of A Heroic Think Tank

The official corruption
The General Comptroller’s Office just published its latest report, and between lines, front firms which got away with dollars came to the spotlight again. The following list presents the irregularities admitted by the Venezuelan Government

The week’s posts and podcast:
Nestor fever #PoneleNestorATodo: Tympanoctomys Kirchnerorum UPDATED

Chile: Bienvenido, Putin

Mexico: Impunity for attacks on the press

@MarkSteynOnLine on the Benghazi lies

Highjacker returns from Cuba, objects to terms of conviction

Venezuela: Leopoldo Lopez’s jail birthday

6 good writers from Latin America + 1

Iran in Latin America: Must-read report

Argentina: Trade surplus plummets

At Da Tech Guy Blog:
‘Dude, this was like two years ago’, and don’t miss the chart.

Brazil: Welcome to Usama’s!

Podcast:
“Foreign investment reforms” in Cuba PLUS US-Latin America this week