tv BBC World News America PBS July 3, 2012 5:30pm-6:00pm EDT
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solutions for small businesses and major corporations. what can we do for you? >> and now, "bbc world news america." >> this is "bbc world news america." are there any forces left at barclays? a scandal brings a string of resignations of one of the top british banks. in the end, america says sari and after seven difficult months, pakistan finally reopens supply routes into afghanistan. locking in a top bid for a painting by john constable, proving that the art world is moving.
>> welcome to our viewers on pbs in america and around the globe. last month, bob diamond told people that he had enough of bankers been blamed for the crash. now he is being forced to resign in the wake of a scandal. tomorrow he will have to go back before parliament to explain what happened at his bank and perhaps apologize one more time. >> 16 years at barclays, bob diamond has quit in a move that stunned the city of london, leaving a power vacuum at the top of one of the major british banks. and gone after intense pressure after his role in the scandal,
which has tainted the banking world. the chairman the said he would go will now stay on until a new chief executive is appointed. he said the senior people were not responsible for any wrongdoing. >> it was limited to a small handful of people. i was appalled by what happened. it is, in terms, symptomatic, and absolutely not. >> he said no decision was as hard as the one he made to stand down as chief executive with an external pressure damaging the band -- brand. he added that he was deeply disappointed and that perceptions about barclays could not be further from the truth. it comes one day after the government announcement of a parliamentary inquiry into banking standards. >> bob diamond has made the pop -- the right decision for
barclays and the country. we need the bank's focus on the economy, not the scandals of the past. >> yesterday he seemed ready to tough it out. why leave now? one reason could be over there. the bank of england. the message went to the barclays board that they would not be unhappy if he did resign. >> board turner said that the bank had been told that there were major challenges convincing people that change was happening and it was up to them as to whether the existing leadership could deliver. in a surprise move, they released notes of a phone call between bob diamond and a senior policy maker. some believe that there was encouragement from government and bank of england officials for them to understate borrowing costs. the bank denies that they were aware of any attempts to delay
interest rates. in a note about the phone conversation sent to colleagues, the boss said that mr. tucker stated the levels of calls he had received were senior and that it was not that it needed to be the case that they appeared that high. there was one more than one resignation today. the chief operating officer also quit as there was a call for a wider investigation of the industry. >> his stepping down was necessary and right, but it was about much more than one individual. this is why we need a full, judge-led independent inquiry. >> this is the latest twist in this long-running political row. some believe that it will be difficult to attract anchors. >> they are a fine bank, but given what has been going on in the running of banks, people
will find there's a lot to do. >> bob diamond was one of the highest profile business leaders in the uk. his payoff could run into tens of millions. his departure could be a game changer. >> for more on this banking scandal, i am joined by the assistant managing editor of the wall street journal. this is more than just a scandal about the bank, it is about the culture of the banking industry. certainly that is how this is perceived? >> that is probably right. you could go way beyond the british public. this will shake -- shake confidence a new. even their trading loss has done that. the public is wondering where
are the regulations that are supposed to guide us here? the bankers are saying -- this will make it more difficult for us to do our job. making it hard to function as banks with economies growing. >> he said they are done apologizing, but that this is the kind of scandal the leaves the public wanting more regulation to stop this from happening again. >> the wall street journal just had a conference of cfo's around the world with unprecedented levels of cash in their companies. they have of for a few years. why is that? you hear from them and we cannot be sure that there's going to be another banking crisis or
financial crisis and we will be able to go to our banks for funding in the future. we are putting this cash on hand just in case. this latest scandal is not going to dull the concern in any way. >> talking about the financial crash, which this seems to be wrapped up in, they are downgrading the american growth prospects and numbers will be watched carefully in the white house for more signs that the recovery is fragile. >> that is right. it was noted that this was in part because of what is going on in europe. problems there are spilling out into the global economy. they also said something else, which was that the u.s. has its own fiscal problems and unless it does something about them in a measured way and does not go off of this fiscal clef, that is that when the debt ceiling was raised congress demanded
certain tax increases and spending cuts, if that happens the imf says that that will be too sharp of a hit to the economy. >> you mean they want sensible behavior from american politicians? thank you, john. >> can you believe that? [laughter] >> they you very much. >> pleasure. >> today the obama administration announced that pakistan is reopening its vital supply line into pakistan, the decision comes after pakistani troops were killed in a nato airstrike, prompting the closure and opening a major rift with the united states. then they formally apologized for the strike and the pakistani is reversed course. >> park and i go, this has been the picture since last november, convoys bound for afghanistan at
a standstill. vitally needed supplies going nowhere. now the traffic starts moving again thanks to one long awaited word from washington -- sorry. the u.s. apologize for the killing of 24 pakistani troops in air strikes near the afghan border. hillary clinton called the pakistani foreign minister to say sorry for the losses suffered by the pakistani military. now, washington says that it is time to move on. >> we are back on track in terms of being able to support the mission. we have had the opportunity to get on to other aspects of our shared interests, wherever they are. >> pakistan has made concessions
of its own, launching a huge increase in transit speeds. 5000 u.s. dollars per container. washington called the price gouging and refused to pay. islamabad will be compensated in other ways. >> the way that they are conducting themselves, they have presented as enemies rather than allies. this is a broad agenda in which pakistan has decided to reopen supply lines. it is a different situation. >> for nato, reopening the routes is crucial. not just for the supplies coming into afghanistan, but getting the troops and equipment out by 2014. pakistan provided the cheapest and shortest exit route.
>> the government can look forward to the release of 1 billion different military aides. as soon as they are on the move, the taliban says they will start targeting drivers once again. bbc news, is, bad and -- .slamabad >> the former pakistani high commissioner to the united more like sulking lovers the
nation's states. kingdom is with us. thank you for coming in. if all it took was an apology, why has this taken so many months to resolve? >> a great question. sometimes i think that nations who are close to each other are this should have been done months earlier. it has come late, but we need to gradually them actually going ahead and making this apology. remember, the context is the presidential election here. for president obama to make an apology when he said he would not make. >> how damaging has this been to the united states, having transport routes shot to them? >> in the meantime, it focuses on the public opinion in pakistan. it has become very abrasive in terms of anti-americanism. they have reached the state between the countries where these things are being delayed, tit-for-tat that goes on when countries expressed displeasure. these are strong, healthy relationships that have to be built up. this is just the very important first step. >> what happened to this relationship? it seems that in the course of the past year, this got worse. something has gone wrong in that both sides say they need this in
the relationship. >> exactly. that is why you needed this big, a symbolic thing. this is important enough to start building on. they are withdrawing troops in afghanistan's future. >> are you optimistic that they can build a functioning relationship? >> it will be tough, because public opinion here and in the united states has become so hostile to each other that a lot of work will have to be done. but at least the bubble has been pricked and that is important. >> thank you very much for coming. more than 30 people have been killed and dozens injured in a series of bomb attacks in iraq. a series of people died when car bombs targeted pilgrims. another blast with three people
dying in two explosions. the french police have searched the home and offices of the former president after claims of a legal campaign financing. navigation's included -- allegations included in discounting from canada and the family. today the president said that he wished his forces had not shot down the turkish jet last month and he vowed that he would not allow tensions with his neighbors to lead to war. inside of syria there is evidence of more violence. human-rights watch has discovered evidence of torture after speaking to over 200 detainees. the syrian government has not responded to the allegation. >> in damascus, security forces demonstrate their power. the man on the right is led out
by the throat. the man standing by the wall is punched. the new human rights watch reports out line what may happen to these people if they are taken away. the report does not cover opposition crimes. they are teachers from northern syria. they are taking refuge in southern turkey. last year the security forces detained them. and he was beaten so badly he offered to pay guards to kill him and end his pain. >> so that we could not expect -- could not escape, they cut our eyes. they kicked us in the head. they did us to make us say that [unintelligible] is god. i refused and the soldier broke my nose. >> first the soldier came into the room.
if you deny the accusations, you admit what they have done. deny it again and again, it gets worse. they threaten you with electric shock, threaten your children. >> activists showed these pictures, where they are attacking demonstrators in damascus. they have accused syria of carrying out a state policy of torture. >> it always came from the heads of the security forces. they were in direct contact with the entourage. >> human rights watch once those responsible to be tried at the international human -- international criminal court. it can be blocked by their ally, russia. for now, international justice stops at this border. syria is just meters away.
the family is taking refuge at on the turkish side and they do not dare to go back home. the reports of torture have helped. >> james reynolds, reporting on allegations of abuse coming out of syria. still to come on tonight programs, benedictine monks in louisiana have banded in the middle of a fight. why have they become the most unlikely about was? nigeria is synonymous with oil. not only is it africa's largest crude oil producer, they are also one of the biggest importers. the government said that they spend close to $6.8 billion on the substance annually. >> for decades, these kinds of scenes at petrol stations have not been unusual. it is a heavy reliance on
transport and cooking. they still struggle to provide fuel for their citizens. the government has announced a deal for petroleum from the u.s. to build six refineries here. in 2010 nigeria consumed 280,000 barrels per day, far below what the country's refineries produced because of poor maintenance, theft, and fire. as a result, they imported 85% of their needs. it increased by $180,000 per barrel, hopefully reducing how much they had for domestic use. fuel is a sensitive topic here. january, angry protests after the government tried to remove fuel subsidies. they were set up to look into the meat -- murky dealings of
the fuel sector. last week president good luck jonathan sat several executives after a probe revealed billions of dollars that have been lost. you expect the news of the refinery deal to be widely welcomed, but the announcement is one thing and act will result in another. for the average nigerian, the wait for change continues. >> from beer to jam, they have long improved engines of industry, but now the benedictine monks in louisiana have been landed in a legal battle. these have always been billed for personal use. five years ago they decided to make a business out of it.
now the fight is making its way to the court. the bbc has more on this most unusual rao. >> it feels like an escape from everything. this is the story of government, red tape, and a very unlikely battle. it is time for vespas at the benedictine monk chapel, contemplating their very unusual run-in with the law. >> we sold our first casket and then received a cease and desist -- cease and desist letter, saying we were in violation of a state law. >> here is the scene of the crime, a simple workshop where they produce elegant caskets. nothing fancy. these days you can buy coffins online, but these monks say they
are answering a call it -- a calling. >> they have very many in their own coffins. after hurricane katrina blew away their factory trees, they needed to find other ways to pay the bills. they had the skills and there was no problem with the market. >> there are 30,000 deaths per year in louisiana. >> for those who control the business in louisiana, they do not care for the competition and feel that state law, which says only licensed funeral directors and sell them, the losses on their side. >> lawyers say that this shields grieving people from the trauma associated with buying coffins to do not fit in the area that has unique spaces, ensuring that customers dealing with a
licensed professional is a legitimate government interest. so far the monks are winning. but the abbott says that it is not about quality control or difficulty of making coffins that fit. >> i think that the law is economic protectionism. we feel that we have a right to be able to sell caskets, the same right as everyone else. >> the bread is given away, not sold. no threat of lawsuits here. it is all about fulfilling the instruction of st. benedict, to be a true monk, one must work with one's hands. >> we have always kept their tradition, doing physical work. >> the battle is not over. the free marketeers here think they are on solid ground.
they think that if god wants them to do this, surely the law will follow. >> paul adams, reporting on the curious story. there is no end to the coverage of the world's financial crisis lightly, but this next story goes against the trend in grand fashion. tonight this painting fetched $35 million at auction. it is the last of six in a celebrated series of large-scale works. at the auction, we resent this report. >> up for sale tonight, a very rare opportunity to buy one of the great landscapes. it is expected to go for millions. >> 20 million pounds. next, selling it, fair warning,
20 million pounds. sold. >> the lot was the show and desperate billing, which goes to prove that if there was any doubt, it makes money for old masters. >> one of the greatest, it is marvelous to have it here. this is only the second time it has since sold in its lifetime. >> it was painted in 1824 as part of a series of six large landscapes. the expressive style and choice of subject was radical for the time, as was the use of bold colors. these innovations led to the beginning of the story of modern art. with tonight's sale, it will be a new entry in the highest price chart paid for auction in modern banking. sir peter stayed at no. 1, just
under 50 million pounds. turlock road is at no. 2. number three is this painting by a venetian french painter, sharing with gimcrack, offering to buy a premium over 22 million pounds. >> it is a funny market at the moment, because the top end seems to be making a lot of records, but below that level the market is a bit more patchy and people are quite discerning. >> the identity of the new owner is not yet known, but some think that at over 22 million pounds, it is unlikely to be a british museum. >> well, when you put it against those other paintings, it must be a bargain, right? that is if you have some spare cash on you. you can get updates on the
website, bbc.com. from all of us here at "world news america," thank you for watching. see you tomorrow. >> makes sense of international atws bbc.com at -- news th /news. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu, newman's own foundation, and union bank. >> at union bank, we work hard to understand the industry you