Infozone Breaking World News

The Federal Bureau of Investigation (FBI) has begun examining the possibility of fraud by the major US financial companies caught up in the financial crisis. The investigation focuses on mortgage companies Freddie Mac and Fannie Mae, bankrupt US bank Lehman Brothers and the largest US insurance company AIG.

The investigation will centre on whether company officials knowingly misled would be investors about the financial stability of their companies, and the way in which loans were given to customers with low or unpredictable incomes.

Whilst mortgage lenders Freddie Mac and Fannie Mae and the stricken insurance company AIG all received bailout plans from the US government, Lehman Brothers failed to get backing and filed for bankruptcy earlier this month.

The FBI has stated that over 20 more financial companies were already under investigation.

After nearly a year since Google announced that it planned to bring us the Android OS for mobile phones, it was ceremoniously unveiled with the help of T-Mobile yesterday. The device, called the T-Mobile G1, which is made by the manufacturer HTC will be the first device to run the Android operating system.

For those of you that don’t know, Android is Google’s brand new operating system for mobile phones, and is open source meaning that third party developers can make applications for the platform. For the development of the Android OS, Google set up the Open Handset Alliance, which is a partnership of over 30 companies, who work on making phone software easier to use.

The G1 device features a 3.2 inch display that is touch sensitive, Wi-Fi and 3G connectivity and a QWERTY keyboard, as well as a host of other features including a 3 megapixel camera and microSD card slot.

The first T-Mobile G1 devices will ship in the US on the 22nd of October, with the UK release in November and the rest of Europe in the New Year.

The Royal Mint has released figures that state that one in every fifty £1 coins is a fake. The report also says that the number of counterfeit coins in circulation could be as high as £30 million; that’s double what it was just 5 years ago.

It is believed that the fake pound coins are being manufactured by criminal gangs who use specialist machinery, and although counterfeit coins are easy to spot, the sheer number in circulation causes problems for traders that deal in cash for the majority of their transactions.

The Royal Mint conducted its test earlier this year and determines that roughly 2% of pound coins are fakes; this has doubled since a similar test was conducted in 2003, in which only 1% was estimated to be counterfeit.

The Royal Mint also reiterated that it was a criminal offence to manufacture or use counterfeit coins, adding that if anyone thought they had such a coin, not to spend it.

Today the US government announced an 85 billion dollar rescue plan for the stricken AIG Company. AIG is America’s largest insurance company and has been struggling since the US housing market crash.

The Federal Reserve’s bailout plan comes after the US investment bank Lehman Brothers filed for bankruptcy, causing the stock markets to plummet. The rescue plan will loan AIG $85bn in return for an 80 percent stake in the company.

Analysts are hoping that this latest move by the Federal Reserve to bailout AIG will help to stabilise the financial markets, which have been plummeting after the recent news of Lehman Brothers bankruptcy and the government takeover of Freddie Mac and Fannie Mae.

The credit crisis claimed another victim today as one of the largest US banks, Lehman Brothers announced that it was filing for bankruptcy. The US bank will file for Chapter 11 bankruptcy protection, this will allow the bank to reorganise and make plans for paying creditors off over a period of time.

Lehman Brothers are the latest US bank to feel the effects of the US mortgage crisis, whilst another US bank, Merrill Lynch also affected by the crisis managed to strike a takeover deal with the Bank of America.

Barclays Bank and the Bank of America were in talks with the stricken Lehman Brothers company, but as talks failed over the weekend both banks pulled out of a rescue plan; leaving Lehman Brothers to file for bankruptcy protection.

The XL Leisure Group today issued the news that it was going into administration leaving thousands of holiday makers stranded. The news came as a shock to the 1700 strong staff, which are now facing unemployment.

The Civil Aviation Authority has stated that it will be stepping in to help those holiday makers who are stranded aboard, and will be bringing in alternative aircraft to transport holiday makers home. The CAA went on to say that anyone who hasn’t yet taken their flights, should check their insurance documents and with their banks about a refund.

The XL Leisure Group are the latest in a long line of airlines that have struggled with financial difficulties, with the price of fuel sky rocketing and the economic downturn. XL also owns several travel agencies including Kosmar Holidays and Travel City Direct; all the companies are now in administration.

The Large Hadron Collider facility (LHC) sprang into life today, as scientists turned it on for the first time. Scientists are hoping that the huge underground structure, which fires beams of protons around the 27 kilometre donut shaped tunnel at the speed of light, will give a better understanding of the moments after the Big Bang.

The £5bn facility which is situated on the Swiss-French border has had a troublesome birth, being hugely over budget and two years behind schedule.

Scientists turned the system on this morning around 08:30BST and have been testing firing one beam around the tunnel. Over the coming days and weeks the scientists plan to fire multiple beams of protons in opposite directions; colliding them together at the speed of light.

It is hoped that the Large Hadron Collider will answer some fundamental questions about the universe and its beginnings.

Apple, the manufacturer of the highly fashionable iPod range is thought to be announcing new products to its range today. Just what will be unveiled is still a mystery with Apple staying tight-lipped about the announcement.

Steve Jobs, Apple’s CEO and joint founder is expected to announce the new iPod models later today (Tuesday) amidst feverish speculation surrounding the new generation of iPod’s. Rumours circulating around the web include, a new version of the iPod Nano with more memory, and that both the Nano and iPod Touch will see price cuts.

Another possibility is that Apple will be showcasing its new iTunes player, iTunes 8 that will allow users to download High-Definition TV programs and transfer them to their iPod. The announcement is predicted in the next couple of hours.

Vice-Presidential Candidate Sarah Palin has not only been making waves in the political scene, she has also been starting a fashion craze in the US. Opticians in America have seen a huge increase in demand for the same glasses worn by the self confessed “Hockey Mum” and many have sold out over the past week.

The glasses in question are by designer Kasuo Kawasaki and are from his 704 collection. The glasses retail for $375 (around £210) and opticians all over the states are trying to stock the style. Sarah Palin bought hers from an optician in Alaska; they have been inundated with email requests for the aptly named ‘Sarah Palin glasses’.

A supermarket worker discovered the dangerous banana spider hiding in a box of bananas, as she unpacked the box at a Co-op store in Chatham, Kent. The shop supervisor was alerted and the store was shut to the public and the RSPCA called out.

The staff at the store were urged to keep the spider contained in the box and not to approach the insect until the RSPCA officer had arrived. An RSPCA officer promptly came and caught the aggressive spider in a separate container. The banana spider was then taken away to be put down.