Tag Archives: Resignation

Texas utility regulator ousted after comments to investors disclosed

By Kanishka Singh and Gary McWilliams

(Reuters) – The third and last remaining commissioner of the Texas utilities regulator resigned under pressure on Tuesday after the release of comments to investors vowing to protect utility profits and dismissing financial hits from a cold snap on municipal power companies.

The resignation came soon after the disclosure of inflammatory comments by the Public Utility Commission Chair Arthur D’Andrea in a March 9 call with Bank of America utilities’ analysts. The call took place two days before he was to consider rescinding billions of dollars in payment to utilities.

His stance against repricing helped sink a proposal this week to cut $4.1 billion from charges in the final hours of a deadly February blackout. The regulator and state grid operator raised power prices to about 400 times the normal rate over five days. But they left the pricing in place for 32 hours after the emergency passed, spurring state officials to call for a partial repricing.

On the March 9 call, D’Andrea told investors and analysts he had “tipped the scale as hard as I could” to prevent repricing and would keep “the weight of the commission” against it, according to a recording of the call published Tuesday by Texas Monthly magazine on its website.

DISMISSES HIT TO CITY-RUN POWER

Municipal power companies that could benefit from repricing proposals would get through the financial hit, he advised the investors. Several have had their credit ratings downgraded, raising future borrowing costs.

Referring to San Antonio’s city-run CPS Energy that has contested $200 million in power charges, D’Andrea dismissed the impact in remarks to Bank of America analysts: “They’ve got a lot of money. They’re fine.”

High costs from the storm have led four Texas power companies to seek protection from creditors in bankruptcy court. Electricity firms have failed to pay $3 billion in storm-related charges, amounts that eventually would be passed to all Texas utilities and their customers.

“Tonight, I asked for and accepted the resignation of PUC Commissioner Arthur D’Andrea,” Texas Governor Greg Abbott said in a statement released late Tuesday. He plans to name a replacement in the coming days.

PUC spokesman Andrew Barlow did not immediately reply to a request for comment.

JOB PROTECTION

In his call with Bank of America, D’Andrea also claimed he had job protection after two of the three PUC commissioners resigned. Lawmakers could “secure promises from me” that they could not get if there were other commissioners, he said.

“I expect it to be this way for a while, at least a year, with just me,” he said of the commission’s makeup.

Earlier in March, Shelly Botkin resigned from her post at the PUC, a week after former Chairman DeAnn Walker resigned.

The Bank of America recording threw new light on the commission’s much-criticized handling of a deadly February blackout that killed more than 56 people in the state and could saddle power companies with bills for decades.

The state’s independent market monitor testified power grid operator ERCOT, which is overseen by the PUC, made a $16 billion pricing error by keeping prices high for 32 hours after widespread outages ended Feb. 17.

Electricity retailer Brilliant Energy LLC on Tuesday became the fourth company to file for bankruptcy protection since the storm. Its bankruptcy court filing came a day after Griddy Energy filed for Chapter 11 bankruptcy with $29 million in charges for power.

(Reporting by Gary McWilliams in Houston, Kanishka Singh and Derek Francis in Bengaluru; editing by Richard Pullin and Marguerita Choy)

Texas grid operator defends storm performance as sixth director resigns

By Gary McWilliams

(Reuters) – Officials of Texas’ grid operator on Wednesday defended their handling of the state’s massive power outage, saying managers prevented a catastrophe while acknowledging the personal suffering during the extreme cold.

Directors of grid operator Electric Reliability Council of Texas (ERCOT) held their first meeting since winter storms that brought subfreezing temperatures for days, cutting power to up to 4.3 million people and causing millions of dollars of damages.

Six ERCOT directors have resigned and a board nominee declined a seat amid sharp criticism of their performance.

Sally Talberg, chairman of the board and one of the six to submit a resignation, said ERCOT “worked tirelessly” to keep the grid from collapse. She led Chief Executive Bill Magness through a sometimes hour-by-hour review of the loss of power available to the grid and communications with consumers and officials.

Texas has no mandatory weatherization standards for the power plants that supply the grid, Magness said, pointing to a likely direction for lawmakers as they begin hearings on the weather disaster on Thursday.

About 48% of the power generation available in the state was forced offline at the peak of the outages due to cold weather, lack of fuel or mechanical failures, Magness said. ERCOT had ample reserves available through Sunday, when generators began to drop off the grid.

Utilities cut power to homes and businesses to prevent serious damage to generators and transmission lines, he said. Plans to rotate outages among consumers could not happen because of the sizeable loss of generation, he said.

Randal Miller, who represented independent retail power providers, resigned late Tuesday, leaving the board with seven vacancies. Tanberg, ERCOT’s vice chairman and three other directors, all of whom live outside of Texas, also submitted resignations. Directors have been widely criticized for their handling of the outage and for not living in the state.

Texas Governor Greg Abbott earlier called for resignations. The state’s investigation will “uncover the full picture of what went wrong” and ensure it is not repeated, he said in a statement on Tuesday.

(Reporting by Gary McWilliams; Editing by Chizu Nomiyama, Steve Orlofsky and Jonathan Oatis)

CalPERS investment chief steps down at $400 billion pension fund

By Alexandra Alper and Aishwarya Nair

(Reuters) – The investment chief of CalPERS, Yu Ben Meng, has resigned effective immediately, the largest public U.S. pension fund said on Wednesday, amid pressure from the Trump administration to curb investments in China.

Dan Bienvenue, deputy chief investment officer at the California Public Employees’ Retirement System (CalPERS), will become interim chief investment officer, the $400 billion fund said in a statement, adding it will begin an immediate search for a permanent successor.

A U.S. citizen born in China, Meng has twice worked for CalPERS, the first time starting in 2008 and the second time beginning in January 2019 when he became CIO, according to the CalPERS website.

In between the CalPERS stints, Meng worked for three years as deputy CIO with China’s State Administration of Foreign Exchange (SAFE), which oversees China’s U.S. Treasury security holdings.

Meng cited the need to focus on health and family in the statement, released late on Wednesday. But the resignation comes amid growing pressure on U.S. funds to divest from Chinese companies.

Last month, White House Officials pressed the U.S. Railroad Retirement Board, the federally administered retirement plan for railroad workers, to avoid investments in Chinese companies, which may be hit with sanctions.

And the White House successfully lobbied an independent board charged with overseeing billions in federal retirement dollars with suspending plans to allow a fund to track an index that invests in Chinese companies.

CalPERS has not escaped scrutiny. Earlier this year, Secretary of State Mike Pompeo accused the fund of investing in firms that supply the Chinese military, putting American lives at risk. U.S. national security adviser Robert O’Brien also said U.S. President Donald Trump’s administration was “looking at” CalPERS’ investments in Chinese military companies.

U.S. Representative Jim Banks, a Republican, on Thursday welcomed Meng’s resignation.

“Taxpayers shouldn’t be forced to fund our adversary’s military,” he said in a statement. “With Yu Ben Meng’s departure, CalPERS now has the opportunity to correct its course and divest from companies within China’s military-industrial complex.”

In February, Banks took aim at Meng himself, calling for an investigation into the executive over his “cozy” relationship with Beijing and assailing the fund’s investments in Chinese companies in a letter earlier this year.

CalPERS did not immediately comment on Banks’ remarks on Thursday, but at the time of his February letter, CEO Marcie Frost defended Meng in a statement.

“This is a reprehensible attack on a U.S. citizen. We fully stand behind our Chief Investment Officer who came to CalPERS with a stellar international reputation,” she said.

The fund manages pension and health benefits for more than 1.6 million California public employees, retirees and their families.

(Reporting by Aishwarya Nair in Bengaluru and Alexandra Alper in Washington; Editing by Bernard Orr and Matthew Lewis)

Russian government resigns after Putin sets out constitutional shake-up

By Andrew Osborn and Vladimir Soldatkin

MOSCOW (Reuters) – Russia’s government unexpectedly resigned on Wednesday after President Vladimir Putin proposed sweeping constitutional changes that could allow him to extend his rule.

Prime Minister Dmitry Medvedev said he was stepping down to give Putin room to carry out the changes, which, if implemented, would shift power to parliament and the prime minister – and might thus allow Putin, 67, to rule on in another capacity after his current term ends in 2024.

Medvedev, a long-time Putin ally and former president, announced his resignation on state TV sitting next to Putin, who thanked him for his work.

Putin said Medvedev would take on a new job as deputy head of Russia’s Security Council, which Putin chairs.

Attention now turns to who becomes the next prime minister. The array of possible candidates includes Moscow Mayor Sergei Sobyanin, who is credited with breathing new life into the capital.

Wednesday’s changes will be seen by many as the start of Putin’s preparations for his own political future when he leaves the presidency in 2024.

Whoever he picks as prime minister will inevitably be viewed as a possible presidential successor – echoing the way that Putin stepped down from the presidency in 2008 to become prime minister under Medvedev, who then stepped aside four years later to allow Putin to resume the presidency.

In power in one of the two roles since 1999, Putin is due to step down in 2024, when his fourth presidential term ends.

He has not yet said what he plans to do when his term expires but, under the current constitution, which sets a maximum of two successive terms, Putin is barred from immediately running again.

‘SERIOUS CHANGES’

Putin told Russia’s political elite in his annual state-of-the-nation speech that he favored changing the constitution to hand the State Duma, the lower house of parliament, the power to choose the prime minister and other key positions.

“These are very serious changes to the political system,” Putin said.

“It would increase the role and significance of the country’s parliament … of parliamentary parties, and the independence and responsibility of the prime minister.”

Critics have long accused him of plotting to stay on in some capacity to wield power over the world’s largest nation after he steps down. He remains popular with many Russians who see him as a welcome source of stability even as others complain that he has been in power for too long.

Medvedev’s resignation took Russian markets taken by surprise. The rouble and stocks suffered sharp losses before rebounding to make gains amid the uncertainty.

“In a nutshell, we take this announcement as an attempt by Putin to shake up Russia’s polity and refocus the administration on implementing the president’s well-telegraphed but slowly progressing public spending program,” Citi said in a note.

The rouble dropped to 61.81 to the dollar after the news reports about the government but soon regained ground and firmed to 61.41 , up 0.1% on the day by 1452 GMT.

Against the euro, the rouble briefly dropped to 68.86  but soon pared losses to trade at 68.49.

The dollar-denominated RTS share index <.IRTS> fell 1% on the day minutes after the resignation reports, but rebounded to stand 0.4% higher.

The rouble-based MOEX Russian share index  was also up 0.4%.

(Reporting by Maria Kiselyova, Tom Balmforth, Vladimir Soldatkin, Maria Tsvetkova and Andrey Kuzmin; editing by Mike Collett-White and Kevin Liffey)

U.S. bishop accused of sex abuse cover-up steps down

VATICAN CITY (Reuters) – A New York state bishop who had been at the center of a sex abuse crisis stepped down on Wednesday after learning the conclusions of a Vatican investigation, becoming the latest high-ranking prelate toppled by the decades-old scandal.

Pope Francis accepted the resignation of Bishop Richard Malone of Buffalo, New York, and named Albany Bishop Edward Scharfenberger, to administer the Buffalo diocese until a new bishop can be appointed.

Malone, 73, who has been under pressure to resign for years, stepped down two years before bishops’ normal retirement date.

A long line of priests and bishops have been toppled by the Roman Catholic Church’s abuse crisis, which exploded onto the international stage in 2002 when the Boston Globe newspaper revealed priests had sexually abused children for decades and church leaders had covered it up.

Patterns of widespread abuse of children have since been reported across the United States and Europe, in Chile and Australia, undercutting the 1.2 billion-member Church’s moral authority and taking a toll on its membership and coffers.

Malone, who met with the pope last month, has been accused of covering up or mishandling the abuse of dozens of minors by priests in his diocese in western New York.

Last year, a whistleblower in his office released documents to WKBW, a New York news channel, indicating that Malone withheld scores of priests’ names from a list his office published of clergy accused of sexual abuse.

He has denied the accusations.

His diocese is facing more than 200 child sex abuse lawsuits, according to the New York Times. A new state law this year temporarily waived statutes of limitations for people who were victims of sexual abuse as children, allowing hundreds of people to sue over decades-old crimes.

Malone acknowledged “tremendous turmoil” in his diocese in a statement on Wednesday.

He said he had made mistakes in not addressing what he described as personnel issues more swiftly. He said the conclusions of the Vatican investigation, which have not been published, were a factor in his decision but that he was resigning “freely and voluntarily.”

In September, a poll by the local newspaper, The Buffalo News, showed that about 85% of Roman Catholics or lapsed Roman Catholics in the area said he should resign.

Scharfenberger said he supported Malone’s resignation.

“I think he made a prudent decision to withdraw as he did at the time that he did,” he said in a news conference.

(Reporting By Philip Pullella; Additional reporting by Jonathan Allen in New York; Editing by Scott Malone)

Bolivia seeks new leader as fallen Morales reaches Mexico

Bolivia seeks new leader as fallen Morales reaches Mexico
By Monica Machicao and Stefanie Eschenbacher

LA PAZ/MEXICO CITY (Reuters) – Bolivia’s former leader Evo Morales landed in Mexico on Tuesday pledging to stay in politics as security forces back home quelled unrest over the long-serving leftist’s resignation and opponents sought an interim replacement to fill a power vacuum.

Thanking Mexico’s government for “saving his life,” Morales arrived to take up asylum in the country and repeated his accusation that his rivals had ousted him in a coup after violence broke out following a disputed election last month.

“As long as I am alive, we will remain in politics,” Morales told reporters in brief comments after disembarking the plane to be met by Mexican Foreign Minister Marcelo Ebrard.

Dressed in a short-sleeved blue shirt, Morales defended his time in government and said that if he were guilty any crime, it was to be indigenous and “anti-imperalist.”

Morales was then whisked away in a military helicopter, television footage showed. Mexican officials have not said where he will stay, citing security concerns.

Morales arrived in a Mexican Air Force plane from the central Bolivian town of Chimore, a stronghold of Morales supporters where the country’s first indigenous president retreated as his 14-year rule imploded.

The departure of Morales, the last of a wave of leftists who dominated Latin American politics at the start of the century, came after the Organization of American States declared on Sunday that there were serious irregularities during the Oct. 20 vote, prompting ruling party allies to quit and the army to urge him to step down.

Opposition lawmakers wanted to formally accept Morales’ resignation and start planning for a temporary leader ahead of a new vote. But their plans looked at risk as Morales’ Movement for Socialism (MAS) said it would boycott the meeting.

Residents of the highland capital La Paz, rocked by protests and looting since last month’s election, said they hoped politicians would succeed in finally restoring order.

“Democracy has been at risk and hopefully it will be resolved today,” said resident Isabel Nadia.

Morales’ flight out was far from simple.

Takeoff was delayed, with supporters surrounding the airport, then the plane was denied permission to fuel in Peru, Ebrard said. So it stopped instead in Paraguay before arriving in Mexico City just after 11 a.m. local time (1700 GMT).

“His life and integrity are safe,” Ebrard said, tweeting a photo of Morales alone in the jet with a downcast expression, displaying Mexico’s red, white and green flag across his lap.

In a region divided along ideological lines over Morales’ fall, Mexico’s leftist government has supported his accusations of a coup.

In La Paz, roadblocks were in place after soldiers and police patrolled into the night to stop fighting between rival political groups and looting that erupted after Morales’ resignation.

The charismatic 60-year-old former coca leaf farmer was beloved by the poor when he won power in 2006.

But he alienated some by insisting on seeking a fourth term, in defiance of term limits and a 2016 referendum in which Bolivians voted against him being allowed to do that.

(For graphic on timeline, see https://graphics.reuters.com/BOLIVIA-ELECTION/0100B30L25D/bolivia.jpg)

(Reporting by Monica Machicao, Daniel Ramos and Gram Slattery in La Paz, Daniela Desantis in Asuncion, Daina Beth Solomon, Julia Love and Diego Ore in Mexico City, Matt Spetalnick in Washington, Mitra Taj in Lima; Writing by Adam Jourdan; Editing by Andrew Cawthorne and Daniel Wallis)

‘Everything is a mess’: Morales exit rocks Bolivia, splits region

‘Everything is a mess’: Morales exit rocks Bolivia, splits region
By Daniel Ramos and Gram Slattery

LA PAZ (Reuters) – Looting, fighting and roadblocks convulsed Bolivia on Monday after President Evo Morales’ resignation ended his 14-year rule and created a power vacuum following weeks of violent protests.

The departure of Bolivia’s first indigenous president, who was the last survivor of a wave of leftist leaders in Latin America from two decades ago, came on Sunday when the military abandoned him amid unrest over his disputed Oct. 20 re-election.

The Organization of American States (OAS), which had denounced “manipulations” of that vote, exhorted Bolivian lawmakers to meet urgently to resolve the crisis.

With Morales’ deputy and many allies in government and parliament gone with him, opposition politician and Senate second vice-president Jeanine Añez flew into the capital saying she was willing to take temporary control until a new vote.

“I am afraid of what will happen, everything is a mess in the city. There are fights between neighbours,” said Patricia Paredes, a 25-year-old secretary in La Paz.

Overnight, gangs roamed the highland capital and other cities, businesses were attacked, rival political supporters clashed and properties were set on fire.

Schools and shops were largely closed, while public transport halted and roads were blocked.

Morales, 60, flew out of La Paz and was believed to still be in Bolivia – but his exact whereabouts were unclear.

He said he stepped down to ease the violence, but repeated on Monday accusations he was the victim of a conspiracy by political enemies including election rival Carlos Mesa and protest leader Luis Fernando Camacho.

“The world and our Bolivian patriots repudiate the coup,” he tweeted. “They moved me to tears. They never abandoned me. I will never abandon them.”

DIVIDED LATIN AMERICA

Argentine President-elect Alberto Fernandez echoed Morales’ denunciations of a coup, as did Mexico which has offered him asylum. “It’s a coup because the army requested the resignation of the president, and that violates the constitutional order of that country,” Mexican Foreign Minister Marcelo Ebrard said.

In a redrawing of Latin America’s political landscape, the left has regained power in both Mexico and Argentina, though powerhouse Brazil still retains a right-wing government.

“A great day,” Brazilian President Jair Bolsonaro tweeted, in apparent reference to events in Bolivia.

In Venezuela, opponents of Morales ally Nicolas Maduro also hailed the fall of the Bolivian leader whom they call a “dictator”, saying they hoped Maduro would be next.

Further afield, the United States urged civilian leaders to keep control. Russia backed Morales, accusing the opposition of violence and quashing dialogue.

Amid the chaos, prominent Bolivian opposition figure and academic Waldo Albarracin tweeted that his house had been set on fire by Morales supporters.

Another widely-shared video appeared to show people inside Morales’ own property with graffiti daubed on the walls.

“People are trying to cause chaos,” fretted Edgar Torrez, a 40-year-old business administrator in La Paz, saying politicians and criminals were all taking advantage of the situation.

TEMPORARY LEADER

Under Bolivian law, the head of the Senate would normally take over provisionally. However, Senate President Adriana Salvatierra also stepped down on Sunday.

Legislators were expected to meet on Monday to agree on an interim commission or legislator who would take temporary control, according to a constitutional lawyer.

“If I have the support of those who carried out this movement for freedom and democracy, I will take on the challenge, only to do what’s necessary to call transparent elections,” said senator Añez, who is constitutionally next in line to assume the presidency.

Añez flew into El Alto airport near La Paz on Monday, where another senator Arturo Murillo told reporters she was taken by an Air Force helicopter to a military academy, from where she was expected to travel to Congress.

“The military were waiting on the tarmac and they said it was safer to take them by helicopter,” he said. “I want to trust the military. I have my faith in the police.”

At a press conference, Mesa asked the police and mobilized civilian groups to guarantee the arrival of legislators across the political spectrum to the central Plaza Murillo to formalize Morales’ resignation and push forward new elections.

“Upon them (the lawmakers) rests the democracy and stability of the country,” he said.

Bolivia under Morales had one of the region’s strongest economic growth rates and its poverty rate was cut in half, but his determination to cling to power and seek a fourth term alienated many allies, even among indigenous communities.

(Reporting by Daniel Ramos, Gram Slattery, Monica Machicao in La Paz, Matt Spetalnick in Washington, Dave Graham and Miguel Gutierrez in Mexico City, Tom Balmforth in Moscow; Writing by Hugh Bronstein and Adam Jourdan; Editing by Kevin Liffey and Andrew Cawthorne)

Prime Minister Hariri resigns as Lebanon crisis turns violent

Prime Minister Hariri resigns as Lebanon crisis turns violent
BEIRUT (Reuters) – Saad al-Hariri resigned as Lebanon’s prime minister on Tuesday, declaring he had hit a “dead end” in trying to resolve a crisis unleashed by huge protests against the ruling elite and plunging the country deeper into turmoil.

The move by the leading Sunni politician points to rising political tensions that may complicate the formation of a new government able to tackle Lebanon’s worst economic crisis since its 1975-90 civil war.

The resignation of Hariri, who has been traditionally backed by the West and Sunni Gulf Arab allies, raises the stakes and pushes Lebanon into an unpredictable cycle. Lebanon could end up further under the sway of the Iranian-backed Hezbollah, making it even harder to attract badly-needed foreign investment.

It also defies Hezbollah, which had wanted him to stay on. Hariri is seen as the focal point for Western and Gulf Arab aid to Lebanon, which is in dire need of financial support promised by these allies.

Hariri addressed the nation after a mob loyal to the Shi’ite Muslim Hezbollah and Amal movements attacked and destroyed a protest camp set up by anti-government demonstrators in Beirut.

It was the most serious strife on the streets of Beirut since 2008, when Hezbollah fighters seized control of the capital in a brief eruption of armed conflict with Lebanese adversaries loyal to Hariri and his allies.

Lebanon has been paralyzed by the unprecedented wave of protests against the rampant corruption of the political class.

“For 13 days the Lebanese people have waited for a decision for a political solution that stops the deterioration (of the economy). And I have tried, during this period, to find a way out, through which to listen to the voice of the people,” Hariri said.

“It is time for us to have a big shock to face the crisis,” he said. “To all partners in political life, our responsibility today is how we protect Lebanon and revive its economy.”

President Michel Aoun, a political ally of Hezbollah, could now either accept Hariri’s resignation and begin consultations toward forming a new government, or ask him to rethink.

It took nine months to form the Hariri coalition cabinet that took office in January.

Some demonstrators vowed to stay in the street.

Protester Tarek Hijazi said the resignation was “a first step in building a patriotic democratic country, on the road to achieving the demands of the Oct. 17 uprising”.

The turmoil has worsened Lebanon’s acute economic crisis, with financial strains leading to a scarcity of hard currency and a weakening of the pegged Lebanese pound. Lebanese government bonds tumbled on the turmoil.

TENTS ON FIRE

On the streets of Beirut, black-clad men wielding sticks and pipes attacked the protest camp that has been the focal point of countrywide rallies against the elite.

Sayyed Hassan Nasrallah, head of the heavily armed, Iran-backed Hezbollah, said last week that roads closed by protesters should be reopened and suggested the demonstrators were financed by its foreign enemies and implementing their agenda.

Smoke rose as some of the protester tents were set ablaze by Hezbollah and Amal supporters, who earlier fanned out in the downtown area of the capital shouting “Shia, Shia” in reference to themselves and cursing anti-government demonstrators.

“With our blood and lives we offer ourselves as a sacrifice for you Nabih!” they chanted in reference to Parliament Speaker Nabih Berri, head of the Amal Movement. “We heed your call, we heed your call, Nasrallah!” they chanted.

Security forces did not initially intervene to stop the assault, in which protesters were hit with sticks and were seen appealing for help as they ran, witnesses said. Tear gas was eventually fired to disperse the crowds.

Hariri did not refer to the violence in his address but urged all Lebanese to “protect civil peace and prevent economic deterioration, before anything else”.

France, which has supported Hariri, called on all Lebanese to help guarantee national unity.

LEBANESE POUND UNDER PRESSURE

Lebanon’s allies last year pledged $11 billion in financing to help it revive its economy, conditional on reforms that Hariri’s coalition government has largely failed to implement.

But there has been no sign of a rush to help.

A senior U.S. State Department official said last week this was not a situation where the Lebanese government should necessarily get a bailout, saying they should reform first.

Banks were closed for a 10th day along with schools and businesses.

Hariri last week sought to defuse popular discontent through a batch of reform measures agreed with other groups in his coalition government, including Hezbollah, to – among other things – tackle corruption and long-delayed economic reforms.

But with no immediate steps toward enacting these steps, they did not placate the demonstrators.

Central bank governor Riad Salameh called on Monday for a solution to the crisis in just days to restore confidence and avoid a future economic meltdown.

A black market for U.S. dollars has emerged in the last month or so. Three foreign currency dealers said a dollar cost 1,800 pounds on Tuesday, weakening from levels of 1,700 and 1,740 cited on Monday.

The official pegged rate is 1,507.5 pounds to the dollar.

“Even if the protesters leave the streets the real problem facing them is what they are going to do with the devaluation of the pound,” said Toufic Gaspard, an economist who has worked as an adviser to the IMF and to the Lebanese finance minister.

“A very large majority of the Lebanese income is in the Lebanese pound, their savings are in the Lebanese pound and their pension is in Lebanese, and it is certain it has already started to devalue,” he said.

(Reporting by Eric Knecht, Laila Bassam, Ellen Francis, Tom Perry, Lisa Barrington, Samia Nakhoul and Reuters TV; Writing by Tom Perry; Editing by Mark Heinrich)

Iran says U.S. should avoid ‘warmongers’ after Bolton departure

Iranian President Hassan Rouhani speaks during the cabinet meeting in Tehran, Iran, September 11, 2019. Official President website/Handout via REUTERS

By Parisa Hafezi

DUBAI (Reuters) – Iran said on Wednesday Washington should distance itself from “warmongers” after the resignation of hawkish White House National Security Adviser John Bolton, and Tehran stood by its demand that sanctions be lifted before any talks.

The departure of Bolton removes one of the strongest advocates of a hard line towards Iran from President Donald Trump’s White House and raises the prospect of steps to open up negotiations after more than a year of escalating tension.

“America should understand that … it should distance itself from warmongers,” Iran’s semi-official Tasnim news agency quoted President Hassan Rouhani as saying on Wednesday, without mentioning Bolton.

“Iran’s policy of resistance will not change as long as our enemy (the United States) continues to put pressure on Iran,” said Rouhani, a pragmatist who won two landslide elections in Iran on promises to open it up to the world.

Last year, the United States pulled out of an international accord between Iran and world powers under which Tehran accepted curbs on its nuclear program in return for access to world trade.

Washington says the agreement reached by Trump’s predecessor Barack Obama was too weak because many of its terms expire in a decade and it does not cover non-nuclear issues such as Iran’s missile program and regional behavior.

The White House has followed what the administration calls a policy of “maximum pressure”, including sanctions aimed at halting all Iranian oil exports, saying its ultimate aim is to push Tehran to the table for talks on a new, tougher deal.

Immediately after Bolton’s departure, U.S. Secretary of State Mike Pompeo said on Tuesday that Trump could meet with Rouhani at an upcoming U.N, meeting with “no preconditions”.

“SIGH OF RELIEF”

Iran has rejected talks unless sanctions are lifted first. It said on Wednesday that Bolton’s exit had not changed that position.

“The departure of … Bolton from President Donald Trump’s administration will not push Iran to reconsider talking with the U.S.,” Iran’s U.N. envoy, Majid Takhteravanchi, was quoted as saying by state news agency IRNA.

Foreign Minister Mohammed Javad Zarif slammed the United States for ordering new sanctions on Iran despite Bolton’s departure.

“As the world … was breathing a sigh of relief over the ouster of #B_Team’s henchman in the White House, (Washington) declared further escalation of #EconomicTerrorism (sanctions) against Iran,” Zarif tweeted. “Thirst for war —maximum pressure— should go with the warmonger-in-chief (Bolton).”

Zarif has often said that a so-called “B-team” including Bolton could goad Trump into conflict with Tehran.

The United States on Tuesday announced sanctions on a “wide range of terrorists and their supporters”, including Iran’s Revolutionary Guards.

Iran says it hopes to save the deal but cannot do so indefinitely if it gets none of its economic benefits. It has responded to U.S. sanctions with steps to reduce its compliance with the accord and has said it could eventually leave it unless other parties shield its economy from penalties.

“Iran’s commitments to the nuclear deal are proportional to other parties and we will take further steps if necessary,” Rouhani said.

Iran started using advanced centrifuges last week to ramp up output of enriched uranium and reduced its commitments to the nuclear deal, but said it was giving European countries another two months to come up with a plan to protect its economy.

France has proposed giving Iran a multi-billion dollar credit line which would shield it from some impact of U.S. sanctions, although any such deal would require the Trump administration’s tacit approval.

(This story was refiled to correct spelling of ‘weak’ in paragraph 6)

(Additional Reporting by Tuqa Khalid; Writing by Parisa Hafezi; Editing by Peter Graff/William Maclean)

Puerto Rico governor weighs future after protests -spokesman

A woman shouts during ongoing protests calling for the resignation of Governor Ricardo Rossello in San Juan, Puerto Rico July 23, 2019. REUTERS/Marco Bello

By Nick Brown

SAN JUAN (Reuters) – Puerto Rico Governor Ricardo Rossello was weighing his political future on Wednesday after almost two weeks of protests demanding his resignation over the publication of offensive chat messages and a corruption scandal, his spokesman said.

Rossello, a first-term governor in his first elected office, has resisted calls to step down over a scandal local media have dubbed “Rickyleaks.” Media, including El Nuevo Dacuta newspaper, cited unnamed sources as saying his resignation was imminent.

“He stated yesterday he is in a process of reflection, and listening to the people,” the governor’s spokesman Anthony Maceira said in a text message to Reuters. “Whichever decision he makes will, as always, be communicated officially.”

Protesters had cheered the reports of a possible resignation late on Tuesday but warned that Rossello’s departure would not end the demonstrations that were now entering their 12th day.

The island of 3.2 million people has been rocked by multiple crises in recent years, including a bankruptcy filing and a devastating hurricane in 2017 that killed about 3,000 people.

If Rossello steps down, his replacement as the U.S. territory’s leader would likely be Justice Secretary Wanda Vazquez, whom many protesters reject because of her ties to the 40-year-old governor.

A string of Rossello’s closest aides have stepped down as prosecutors investigated the scandal. The governor’s chief of staff Ricardo Llerandi resigned on Tuesday, citing concerns for the safety of his family.

The scandal erupted at about the same time as federal investigators charged two former high-ranking Puerto Rico government officials with conspiracy.

The protests in the capital San Juan were spurred by the publication on July 13 of chat messages on the messaging app Telegram, in which Rossello and aides used profane language to describe female politicians and gay Puerto Rican celebrities, including Ricky Martin.

FINANCES UNCERTAIN

The uncertainty over Rossello’s future has also complicated Puerto Rico’s bankruptcy process. The U.S. territory filed in 2017 to attempt to restructure about $120 billion of debt and pension obligations.

An attorney for the federally-created oversight board currently responsible for Puerto Rico’s finances told a court hearing on Wednesday that “current events” had played a role in delaying the filing of a plan to restructure the bulk of the territory’s debt.

The attorney, Martin Bienenstock, said at the hearing in San Juan that the board was also seeking more data and creditor support and expected to file the plan in the next few weeks.

The “Rickyleaks” scandal also has led to the resignation of the head of Puerto Rico’s fiscal agency, Christian Sobrino. His interim replacement, Jose Santiago Ramos, has also said he plans to step down next month, citing the current political environment.

Puerto Rican officials on Tuesday executed search warrants for the mobile phones of Rossello’s and 11 top officials involved in the leaked message group chats.

Only Llerandi has so far said publicly he has handed in his phone.

Rossello has apologized several times for the chats and asked Puerto Ricans to give him another chance. He also has vowed not to seek re-election in 2020.

“The people are talking and I have to listen,” Rossello said in a statement on Tuesday.

But the island’s leading newspaper, as well as prominent U.S. Democratic officials and Republican President Donald Trump, have called on him to step down.

U.S. Representative Ra&uacute;l Grijalva, the chairman of the House of Representatives Natural Resources Committee, which plays a role in overseeing U.S. territories including Puerto Rico, said a Rossello resignation would be a step forward for the island.

“The people of Puerto Rico have shown the world what can happen when a united public demands justice and accountability with a clear voice,” Grijalva said in a statement. “Now they must choose what comes next, and Congress must listen.”

(Reporting by Nick Brown; additional reporting by Marco Bello and Luis Valentin Ortiz in San Juan, Karen Pierog in Chicago and Rich McKay in Atlanta; writing by Scott Malone; Editing by Bernadette Baum and Paul Simao)