Never mind that many newspapers may be upset about how their content is treated on Google (NSDQ: GOOG) News. Now Google is lobbying publishers to put their video content on YouTube. In a post on the Google News blog, YouTube News Manager Olivia Ma invites any news outlet that already has its site indexed by Google News to sign up as a “news partner.” Publishers will have their videos featured on YouTube’s news channel (See screenshot above)—as well as on Google News. Ma pitches it, in part, as a way for publishers to expose their content to a wider audience—and also make money, since publishers can participate in an advertising revenue-share program.
That contrasts with Google News, where publishers do not get a cut of any of the revenue from the ads that are placed around their headlines. Still, it’s unlikely that many publishers will want to abandon other video platforms, like Brightcove, which also allow them to sell their own ads against their video content—and to link up with several ad networks.
Google had already begun to slowly integrate YouTube news videos with Google News last month, when it added videos for the first time to Google News, and the new push should further that. For Google, it’s also a free way to add more professional content to YouTube, and thus attract more premium advertisers. The company has already taken other steps in that direction, adding, for instance, new “shows” and “subscription” tabs on its home page as part of a recent redesign.
Updated: Somewhat related, YouTube has also launched a new “Reporters’ Center”, a bunch of videos from professional journalists “teaching” and giving tips and ethics training to citizen journalists on how to report the news, using video tools. Some videos: Katie Couric on how to conduct a good interview, and Bob Woodward on how to do investigative journalism. General users can also upload their own tips as well. A useful resource, for sure.
from the washington post
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Monday, June 29, 2009
Comcast and wireless Internet service
PHILADELPHIA (AP) — Comcast Corp. will become the first major cable TV operator to roll out wireless broadband outside of Wi-Fi hotspots as it launches the service in Portland, Ore., on Tuesday, with at least three other cities to follow this year.
Comcast will offer speeds of up to 4 Megabits per second, faster than any other comparable, non-Wi-Fi service currently being marketed. The service is for use with laptops, but not other mobile devices.
Comcast's wireless broadband, which lets users surf the Web on the go with their computers, pits it squarely against the mobile data offerings of phone companies.
But the cable operator is coming out first with the market's fastest wireless broadband, using WiMax technology. Phone companies have lined up behind a competing technology called LTE, with Verizon Communications Inc. planning to deploy it next year.
Comcast, which is the nation's largest cable operator, plans to offer the wireless service in Philadelphia, Atlanta, Chicago and other cities later this year.
The service will be carried over the 4G network of Clearwire Corp. where it's offered. Clearwire, a joint venture involving Comcast, other cable operators and technology companies, is currently in Portland and Atlanta, with plans to deploy in Las Vegas, Chicago, Charlotte, N.C., Dallas-Fort Worth, Texas, Honolulu, Philadelphia and Seattle this year.
Elsewhere, the service will use Sprint Nextel Corp.'s 3G network.
Consumers can sign up with either a plan that lets them surf wirelessly within a city using Clearwire's network, or nationally switching between 4G and Sprint's 3G network.
Comcast, along with Intel Corp., Time Warner Cable Inc., Google Inc. and Bright House Networks, have hitched their wireless Internet aspirations on WiMax. Together, they invested $3.2 billion in Clearwire last year for a one-fourth stake. Sprint owns a 51 percent stake.
Comcast High-Speed 2go Metro service over Clearwire's network is on promotion for $49.95 a month for a year, including Comcast's wired Internet home service and a Wi-Fi router. The regular price is $72.95 a month. The national version, using Sprint, costs $20 a month more.
Shares of Comcast were up 14 cents, or 1 percent, to close Monday at $14.36.
by the associated press
Comcast will offer speeds of up to 4 Megabits per second, faster than any other comparable, non-Wi-Fi service currently being marketed. The service is for use with laptops, but not other mobile devices.
Comcast's wireless broadband, which lets users surf the Web on the go with their computers, pits it squarely against the mobile data offerings of phone companies.
But the cable operator is coming out first with the market's fastest wireless broadband, using WiMax technology. Phone companies have lined up behind a competing technology called LTE, with Verizon Communications Inc. planning to deploy it next year.
Comcast, which is the nation's largest cable operator, plans to offer the wireless service in Philadelphia, Atlanta, Chicago and other cities later this year.
The service will be carried over the 4G network of Clearwire Corp. where it's offered. Clearwire, a joint venture involving Comcast, other cable operators and technology companies, is currently in Portland and Atlanta, with plans to deploy in Las Vegas, Chicago, Charlotte, N.C., Dallas-Fort Worth, Texas, Honolulu, Philadelphia and Seattle this year.
Elsewhere, the service will use Sprint Nextel Corp.'s 3G network.
Consumers can sign up with either a plan that lets them surf wirelessly within a city using Clearwire's network, or nationally switching between 4G and Sprint's 3G network.
Comcast, along with Intel Corp., Time Warner Cable Inc., Google Inc. and Bright House Networks, have hitched their wireless Internet aspirations on WiMax. Together, they invested $3.2 billion in Clearwire last year for a one-fourth stake. Sprint owns a 51 percent stake.
Comcast High-Speed 2go Metro service over Clearwire's network is on promotion for $49.95 a month for a year, including Comcast's wired Internet home service and a Wi-Fi router. The regular price is $72.95 a month. The national version, using Sprint, costs $20 a month more.
Shares of Comcast were up 14 cents, or 1 percent, to close Monday at $14.36.
by the associated press
China filter software
BEIJING (Reuters) - China's latest Internet controls have been assailed by rights advocates and Washington, and yet the real challenge to its "Green Dam" plan may be the nation's own computer market, an anarchic digital bazaar.
Starting from Wednesday, the government has ordered that personal computers sold in China must leave manufacturers with Green Dam filter software intended to block obscene images and, critics say, deter political dissent.
Such schemes sound easy enough for a one-party state, and this is just the latest Communist Party initiative to control the Internet, which has about 300 million users in China, according to the China Internet Network Information Center.
But a walk through Zhongguancun district in northwest Beijing, hub of the nation's digital market, and the hurdles to such controls seem as numerous as the shops and hawkers selling computers, software and pornography.
For all the domestic and international uproar about Green Dam, many retailers here who will be selling computers packaged with it were either oblivious or dismissive.
"What's Green Dam?," said Wu Baobao, a woman in her 20s who was selling Dell laptops in the raucous Hailong electronics mall.
"When you buy a computer after July 1 it will come with the software," she added after asking a colleague in a neighbouring stall. "But don't worry ... we can take it out easily."
Multi-nationals have for years fretted about the inability of the Chinese government to stamp out pirate software sold for a fraction of the cost of legitimate copies.
Now that unruly market may also frustrate censors and ensure Green Dam ends up more often junked or ignored than used.
"The Green Dam plan is a serious violation of market rules. Governments shouldn't impose a particular brand of software," said Mao Shoulong, professor of public policy at Renmin University, just down the road from Zhongguancun.
"But in practice the impact will be limited," said Mao. "It's optional software, and you can't easily control such a fragmented retail sector. Big companies will follow orders, but who can just order around thousands of small ones?"
Zhongguancun in Beijing's university district promotes itself as China's "Silicon Valley." Microsoft, Google and plenty of other digital giants have research labs or big offices there.
But the digital retail sector that has sprung up since the 1980s resembles more of a vast, multi-storey bazaar, with big-name retailers jammed up against stalls and furtive hawkers.
Until the financial crisis hit, business was booming. In 2008, Zhongguancun recorded 60 billion yuan ($8.8 billion) in sales of digital products. That was 4.5 percent more than in 2007, ending a long run of double-digit growth, according to the Zhongguancun Electronic Trade Chamber of Commerce.
The district has 3,147 registered electronics retailers who last year sold 2.4 million personal computers, the Chamber told Reuters. But there may be even more uncounted stalls.
The district has attempted to clean up, and pirate software is not as openly sold as a few years ago. But it is certainly still there, as is the pornography Beijing wants to block.
On street curbs, dozens of people, mostly ragged women clutching babies or small children, approach passersby urgently whispering that they can sell pornographic DVD discs. The babies are meant to deter police from carrying out body searches.
A brisk walk with one of the women through a warren of dirt-floor alleys and run-down brick huts soon brings the prospective customer to stashes of luridly titled videos.
Yang Fuying, a gangly salesman in the Beijing Silicon Valley Computer City, said business was too tough to spare much thought about the government's Green Dam plans.
"Mid-year is always a low season, and the financial crisis has made things worse," said Yang. "We'll have to tell customers about the software, but I don't think it will have much impact. You can either tear it out or dump the disc. So what?"
from the washington post
Starting from Wednesday, the government has ordered that personal computers sold in China must leave manufacturers with Green Dam filter software intended to block obscene images and, critics say, deter political dissent.
Such schemes sound easy enough for a one-party state, and this is just the latest Communist Party initiative to control the Internet, which has about 300 million users in China, according to the China Internet Network Information Center.
But a walk through Zhongguancun district in northwest Beijing, hub of the nation's digital market, and the hurdles to such controls seem as numerous as the shops and hawkers selling computers, software and pornography.
For all the domestic and international uproar about Green Dam, many retailers here who will be selling computers packaged with it were either oblivious or dismissive.
"What's Green Dam?," said Wu Baobao, a woman in her 20s who was selling Dell laptops in the raucous Hailong electronics mall.
"When you buy a computer after July 1 it will come with the software," she added after asking a colleague in a neighbouring stall. "But don't worry ... we can take it out easily."
Multi-nationals have for years fretted about the inability of the Chinese government to stamp out pirate software sold for a fraction of the cost of legitimate copies.
Now that unruly market may also frustrate censors and ensure Green Dam ends up more often junked or ignored than used.
"The Green Dam plan is a serious violation of market rules. Governments shouldn't impose a particular brand of software," said Mao Shoulong, professor of public policy at Renmin University, just down the road from Zhongguancun.
"But in practice the impact will be limited," said Mao. "It's optional software, and you can't easily control such a fragmented retail sector. Big companies will follow orders, but who can just order around thousands of small ones?"
Zhongguancun in Beijing's university district promotes itself as China's "Silicon Valley." Microsoft, Google and plenty of other digital giants have research labs or big offices there.
But the digital retail sector that has sprung up since the 1980s resembles more of a vast, multi-storey bazaar, with big-name retailers jammed up against stalls and furtive hawkers.
Until the financial crisis hit, business was booming. In 2008, Zhongguancun recorded 60 billion yuan ($8.8 billion) in sales of digital products. That was 4.5 percent more than in 2007, ending a long run of double-digit growth, according to the Zhongguancun Electronic Trade Chamber of Commerce.
The district has 3,147 registered electronics retailers who last year sold 2.4 million personal computers, the Chamber told Reuters. But there may be even more uncounted stalls.
The district has attempted to clean up, and pirate software is not as openly sold as a few years ago. But it is certainly still there, as is the pornography Beijing wants to block.
On street curbs, dozens of people, mostly ragged women clutching babies or small children, approach passersby urgently whispering that they can sell pornographic DVD discs. The babies are meant to deter police from carrying out body searches.
A brisk walk with one of the women through a warren of dirt-floor alleys and run-down brick huts soon brings the prospective customer to stashes of luridly titled videos.
Yang Fuying, a gangly salesman in the Beijing Silicon Valley Computer City, said business was too tough to spare much thought about the government's Green Dam plans.
"Mid-year is always a low season, and the financial crisis has made things worse," said Yang. "We'll have to tell customers about the software, but I don't think it will have much impact. You can either tear it out or dump the disc. So what?"
from the washington post
Charging standard for Phones ?
BRUSSELS (AP) — No more asking around the office for the right sort of charger. At least that's what European Union and cell phone makers are hoping.
The world's leading mobile phone makers announced Monday that they will ensure that their data-enabled phones and chargers will all work together, as of next year.
EU Industry Commissioner Guenter Verheugen said a standardized charger will cut costs for manufacturers and reduce the number of chargers thrown away when consumers buy new phones.
Though the agreement applies to the EU, it's likely that the standardization will apply to phones and chargers sold outside the member countries.
Nokia Corp., Samsung Electronics Co., LG Electronics Inc., Sony Ericsson, Apple Inc., Motorola Inc., Research in Motion Ltd. and NEC Corp. committed to developing a standard for phone charging based on the Micro-USB interface. Together, they account for more than 80 percent of the world market for cell phones.
Several of those companies already make phones that charge through Micro-USB ports, but they don't guarantee that they will work with chargers made by other companies.
"What we are doing here is we are agreeing that any external power supply will be able to charge other manufacturers' phones," said Tony Graziano, technical director for DigitalEurope, which represents digital technology associations and companies that do business in Europe.
This doesn't mean that all new data-enabled phones will come with Micro-USB ports. Graziano said manufacturers can satisfy the terms of the agreement by producing an adapter. Apple, for instance, has consistently used a proprietary connector for its iPhone and could produce an adapter that plugs into the phone to accept a Micro-USB charger.
Bridget Cosgrove, director general of DigitalEurope, said the group is "optimistic" other countries and regions across the world will adopt the same universal charger soon.
Consumer rights groups called for more ambitious plans.
"You could have extended this to different small appliances, such as MP3 players, small digital cameras and PDAs," said Gabriele Fleischer from the Consumers' Council in Berlin.
Texas Instruments Inc. and Qualcomm Inc., two U.S. companies that make components for cell phones, also signed the agreement.
by the associated press
The world's leading mobile phone makers announced Monday that they will ensure that their data-enabled phones and chargers will all work together, as of next year.
EU Industry Commissioner Guenter Verheugen said a standardized charger will cut costs for manufacturers and reduce the number of chargers thrown away when consumers buy new phones.
Though the agreement applies to the EU, it's likely that the standardization will apply to phones and chargers sold outside the member countries.
Nokia Corp., Samsung Electronics Co., LG Electronics Inc., Sony Ericsson, Apple Inc., Motorola Inc., Research in Motion Ltd. and NEC Corp. committed to developing a standard for phone charging based on the Micro-USB interface. Together, they account for more than 80 percent of the world market for cell phones.
Several of those companies already make phones that charge through Micro-USB ports, but they don't guarantee that they will work with chargers made by other companies.
"What we are doing here is we are agreeing that any external power supply will be able to charge other manufacturers' phones," said Tony Graziano, technical director for DigitalEurope, which represents digital technology associations and companies that do business in Europe.
This doesn't mean that all new data-enabled phones will come with Micro-USB ports. Graziano said manufacturers can satisfy the terms of the agreement by producing an adapter. Apple, for instance, has consistently used a proprietary connector for its iPhone and could produce an adapter that plugs into the phone to accept a Micro-USB charger.
Bridget Cosgrove, director general of DigitalEurope, said the group is "optimistic" other countries and regions across the world will adopt the same universal charger soon.
Consumer rights groups called for more ambitious plans.
"You could have extended this to different small appliances, such as MP3 players, small digital cameras and PDAs," said Gabriele Fleischer from the Consumers' Council in Berlin.
Texas Instruments Inc. and Qualcomm Inc., two U.S. companies that make components for cell phones, also signed the agreement.
by the associated press
Car sales are up for June
DEARBORN, Mich. (AP) — Citing better-than-expected sales and traffic at dealerships, Ford Motor Co. said Monday it plans to increase third-quarter production by 25,000 units — marking the automaker's second production hike in recent weeks.
Ford spokesman Mark Truby said that will bring total quarterly production to 485,000 units, a year-over-year increase of 16 percent or 67,000 units. Last month the company said it would raise third-quarter production by 42,000 units.
The boost affects all models of Ford, Lincoln, Mercury vehicles, with more emphasis being placed on Mustangs, pickup trucks and the Ford Focus compact car, Truby said.
"We had pretty well lowered production in recent quarters to meet demand," Truby said. "Now as we're seeing market share increases and showroom activity, we're ramping up production to meet that demand."
The increase comes as Ford's top sales analyst, George Pipas, said the company's June sales were "good" compared with the overall industry. The Dearborn, Mich.-based automaker could see a year-over-year decline of 10 to 20 percent, which could be the lowest among all major automakers, he said.
"This will be our lowest decline of this year," Pipas added.
Automakers, which are due to report June U.S. sales on Wednesday, have seen sales fall 37 percent over the first five months of the year. Pipas said U.S. auto sales may have halted their month-to-month declines in June and could be down less than 30 percent for the first time since September of last year.
As bad as it sounds, a decline of less than 30 percent could be a welcome relief, as automakers and suppliers have trimmed production and other costs to adjust to lower consumer sales.
"The important takeaway is that we're not going backward, we're not slipping back," said Pipas during a sales preview talk with reporters. "It suggests the worst is behind us, not just the economy, but we may have seen the low point for the year."
Pipas said individual regions of the country are showing sales improvements compared with June 2008, another sign that the auto market has bottomed out and is recovering. While sales in the Great Lakes states are improving, they're still slow in California and Florida, two areas hit hard by the decline in the housing market, Pipas said.
Pipas joined other industry analysts in predicting that June sales could surpass a 10 million seasonally-adjusted annual selling rate for the first time this year.
Last week J.D. Power and Associates predicted that automakers would sell 914,400 vehicles in June, 26 percent less than in June of last year and 1 percent lower than the 924,064 sold in May.
Pipas said May typically is a stronger sales month than June, but he was unsure if this June would surpass May figures.
He said federal "cash for clunkers" legislation recently signed into law could boost sales later in the year, and noted that consumer confidence is improving, suggesting that the worst is over with the economy and auto sales.
Shares for Ford rose 3 percent, or 17 cents, to close Monday at $5.78.
by the associated press
Ford spokesman Mark Truby said that will bring total quarterly production to 485,000 units, a year-over-year increase of 16 percent or 67,000 units. Last month the company said it would raise third-quarter production by 42,000 units.
The boost affects all models of Ford, Lincoln, Mercury vehicles, with more emphasis being placed on Mustangs, pickup trucks and the Ford Focus compact car, Truby said.
"We had pretty well lowered production in recent quarters to meet demand," Truby said. "Now as we're seeing market share increases and showroom activity, we're ramping up production to meet that demand."
The increase comes as Ford's top sales analyst, George Pipas, said the company's June sales were "good" compared with the overall industry. The Dearborn, Mich.-based automaker could see a year-over-year decline of 10 to 20 percent, which could be the lowest among all major automakers, he said.
"This will be our lowest decline of this year," Pipas added.
Automakers, which are due to report June U.S. sales on Wednesday, have seen sales fall 37 percent over the first five months of the year. Pipas said U.S. auto sales may have halted their month-to-month declines in June and could be down less than 30 percent for the first time since September of last year.
As bad as it sounds, a decline of less than 30 percent could be a welcome relief, as automakers and suppliers have trimmed production and other costs to adjust to lower consumer sales.
"The important takeaway is that we're not going backward, we're not slipping back," said Pipas during a sales preview talk with reporters. "It suggests the worst is behind us, not just the economy, but we may have seen the low point for the year."
Pipas said individual regions of the country are showing sales improvements compared with June 2008, another sign that the auto market has bottomed out and is recovering. While sales in the Great Lakes states are improving, they're still slow in California and Florida, two areas hit hard by the decline in the housing market, Pipas said.
Pipas joined other industry analysts in predicting that June sales could surpass a 10 million seasonally-adjusted annual selling rate for the first time this year.
Last week J.D. Power and Associates predicted that automakers would sell 914,400 vehicles in June, 26 percent less than in June of last year and 1 percent lower than the 924,064 sold in May.
Pipas said May typically is a stronger sales month than June, but he was unsure if this June would surpass May figures.
He said federal "cash for clunkers" legislation recently signed into law could boost sales later in the year, and noted that consumer confidence is improving, suggesting that the worst is over with the economy and auto sales.
Shares for Ford rose 3 percent, or 17 cents, to close Monday at $5.78.
by the associated press
Laws to national banks
WASHINGTON (AP) — The Supreme Court on Monday ruled that states can apply some of their own laws to big national banks operating within their borders, a decision proponents called a huge win for consumers and for states seeking more power to regulate financial activities.
The high court ruled that a state attorney general cannot on his own issue a subpoena against a bank that has branches in that state and others. However, the court also said that national banks are subject to some state laws under the National Banking Act, and an attorney general can go to court to enforce those laws.
"What this decision today says is that states have the ability to enforce their own laws (against national banks) as long as they follow state due process procedures, which generally mean issuance of a subpoena which can be challenged in court," said lawyer John Cooney, a former assistant solicitor general and deputy general counsel at the Office of Management and Budget.
Officials say the 5-4 decision opens the door for states to do their own investigations of national banks, as long as they can convince a judge that investigations are needed.
New York Attorney General Andrew Cuomo called the decision "a huge win for consumers across the nation."
"I am pleased that the court has turned back efforts by the nation's largest banks to prevent the efforts of New York and other states to protect consumers from predatory financial practices," Cuomo said. "With this decision, the court has recognized that fair lending and consumer protection — the cornerstones of a sound economy — require the cooperative efforts of both the states and the federal government."
The state of New York had asked the Supreme Court to overturn a federal appeals court decision that blocks states from investigating the lending practices of national banks with branches within its borders. It was supported by the other 49 states.
Eliot Spitzer, then New York's attorney general, wanted to investigate whether minorities were being charged higher interest rates on home mortgage loans, a practice that is prohibited under various state and federal laws. But federal judges said Spitzer could not enforce state fair-lending laws against national banks or their operating subsidiaries by issuing subpoenas and bringing enforcement actions against them.
"Here, the threatened action was not the bringing of a civil suit, or the obtaining of a judicial search warrant based on probable cause, but rather the attorney general's issuance of subpoena on his own authority," said Justice Antonin Scalia, who wrote the opinion for the court. "That is not the exercise of the power of law enforcement 'vested in the courts of justice,'" which the National Banking Act allows.
The Clearing House Association, which represents the banks, said the attorney general was interfering with the federal government's supervisory powers.
The 2nd U.S. Circuit Court of Appeals in New York City had ruled that the responsibility for such investigations rests with the Office of the Comptroller of the Currency, a part of the Treasury Department, and other federal agencies.
Comptroller of the Currency John C. Dugan said he was disappointed by the court's ruling.
"I want to stress that the OCC is absolutely committed to strong oversight and enforcement of the fair lending laws, and that the OCC and the states share a common goal of ensuring fair access to financial services and fair treatment of consumers and businesses by all financial firms," Dugan said. "We look forward to working with the states to ensure that these important objectives are met."
Chief Justice John Roberts and Justices Clarence Thomas, Samuel Alito and Anthony Kennedy dissented in part, saying they would have ruled with the New York-based appeals court.
"Without a uniform regulation and enforcement of the laws that apply to national banks, which often includes state law, those institutions will face a patchwork of duplicative and conflicting federal and state regulation and enforcement actions," said Edward L. Yingling, president and chief executive officer of the American Bankers Association. "This will make it difficult to serve consumers in today's hi-tech, mobile society where people and bank services move constantly across state lines."
The case is Cuomo v. The Clearing House Association, 08-453.
by the associated press
The high court ruled that a state attorney general cannot on his own issue a subpoena against a bank that has branches in that state and others. However, the court also said that national banks are subject to some state laws under the National Banking Act, and an attorney general can go to court to enforce those laws.
"What this decision today says is that states have the ability to enforce their own laws (against national banks) as long as they follow state due process procedures, which generally mean issuance of a subpoena which can be challenged in court," said lawyer John Cooney, a former assistant solicitor general and deputy general counsel at the Office of Management and Budget.
Officials say the 5-4 decision opens the door for states to do their own investigations of national banks, as long as they can convince a judge that investigations are needed.
New York Attorney General Andrew Cuomo called the decision "a huge win for consumers across the nation."
"I am pleased that the court has turned back efforts by the nation's largest banks to prevent the efforts of New York and other states to protect consumers from predatory financial practices," Cuomo said. "With this decision, the court has recognized that fair lending and consumer protection — the cornerstones of a sound economy — require the cooperative efforts of both the states and the federal government."
The state of New York had asked the Supreme Court to overturn a federal appeals court decision that blocks states from investigating the lending practices of national banks with branches within its borders. It was supported by the other 49 states.
Eliot Spitzer, then New York's attorney general, wanted to investigate whether minorities were being charged higher interest rates on home mortgage loans, a practice that is prohibited under various state and federal laws. But federal judges said Spitzer could not enforce state fair-lending laws against national banks or their operating subsidiaries by issuing subpoenas and bringing enforcement actions against them.
"Here, the threatened action was not the bringing of a civil suit, or the obtaining of a judicial search warrant based on probable cause, but rather the attorney general's issuance of subpoena on his own authority," said Justice Antonin Scalia, who wrote the opinion for the court. "That is not the exercise of the power of law enforcement 'vested in the courts of justice,'" which the National Banking Act allows.
The Clearing House Association, which represents the banks, said the attorney general was interfering with the federal government's supervisory powers.
The 2nd U.S. Circuit Court of Appeals in New York City had ruled that the responsibility for such investigations rests with the Office of the Comptroller of the Currency, a part of the Treasury Department, and other federal agencies.
Comptroller of the Currency John C. Dugan said he was disappointed by the court's ruling.
"I want to stress that the OCC is absolutely committed to strong oversight and enforcement of the fair lending laws, and that the OCC and the states share a common goal of ensuring fair access to financial services and fair treatment of consumers and businesses by all financial firms," Dugan said. "We look forward to working with the states to ensure that these important objectives are met."
Chief Justice John Roberts and Justices Clarence Thomas, Samuel Alito and Anthony Kennedy dissented in part, saying they would have ruled with the New York-based appeals court.
"Without a uniform regulation and enforcement of the laws that apply to national banks, which often includes state law, those institutions will face a patchwork of duplicative and conflicting federal and state regulation and enforcement actions," said Edward L. Yingling, president and chief executive officer of the American Bankers Association. "This will make it difficult to serve consumers in today's hi-tech, mobile society where people and bank services move constantly across state lines."
The case is Cuomo v. The Clearing House Association, 08-453.
by the associated press
Judge should decide Tuesday on Stanford's bond
HOUSTON (AP) — A federal judge says he will decide by Tuesday afternoon on whether to revoke a bond for Texas financier R. Allen Stanford that would let him be free while he awaits trial on charges he swindled investors out of $7 billion.
U.S. District Judge David Hittner heard more than four hours of arguments Monday in which prosecutors asked him to revoke an order granting Stanford a $500,000 bond. They argued his international ties make him a serious flight risk.
But Dick DeGuerin, Stanford's attorney, says his client, who is broke because all his assets have been seized, has a very strong incentive to stay: to clear his name and restore his finances.
by the associated press
U.S. District Judge David Hittner heard more than four hours of arguments Monday in which prosecutors asked him to revoke an order granting Stanford a $500,000 bond. They argued his international ties make him a serious flight risk.
But Dick DeGuerin, Stanford's attorney, says his client, who is broke because all his assets have been seized, has a very strong incentive to stay: to clear his name and restore his finances.
by the associated press
Paulson to testify July 16
WASHINGTON (AP) — Former Treasury Secretary Henry Paulson will testify next month before a House committee that's investigating whether he and other government officials pressured Bank of America Corp. to acquire Merrill Lynch in a deal that cost taxpayers $20 billion.
The House Oversight and Government Reform Committee has scheduled the hearing for July 16, and a spokeswoman for Paulson on Monday confirmed he will attend.
The government is exploring allegations that Paulson and Federal Reserve Chairman Ben Bernanke threatened to oust Bank of America's CEO Kenneth Lewis and the bank's board members if they abandoned the takeover after discovering losses at Merrill.
The panel also is investigating whether Bernanke and Paulson urged Bank of America to keep quiet about Merrill's losses.
Bernanke, who testified before the panel last week, denied the accusations. Paulson also has denied them.
Lewis has testified that Paulson and federal regulators made clear that if Charlotte, N.C.-based Bank of America reneged on its promise to buy Merrill, he and the bank's board members would be fired.
Bank of America agreed in September to acquire Merrill Lynch. Regulators in January provided Bank of America, which already had received $25 billion from the government's bailout program, an extra $20 billion to help it cope with rising losses related to the acquisition.
by the associated press
The House Oversight and Government Reform Committee has scheduled the hearing for July 16, and a spokeswoman for Paulson on Monday confirmed he will attend.
The government is exploring allegations that Paulson and Federal Reserve Chairman Ben Bernanke threatened to oust Bank of America's CEO Kenneth Lewis and the bank's board members if they abandoned the takeover after discovering losses at Merrill.
The panel also is investigating whether Bernanke and Paulson urged Bank of America to keep quiet about Merrill's losses.
Bernanke, who testified before the panel last week, denied the accusations. Paulson also has denied them.
Lewis has testified that Paulson and federal regulators made clear that if Charlotte, N.C.-based Bank of America reneged on its promise to buy Merrill, he and the bank's board members would be fired.
Bank of America agreed in September to acquire Merrill Lynch. Regulators in January provided Bank of America, which already had received $25 billion from the government's bailout program, an extra $20 billion to help it cope with rising losses related to the acquisition.
by the associated press
GM and Chrysler's bankruptcy
A summary of developments in the Chapter 11 bankruptcy cases of General Motors Corp. and Chrysler LLC:
GENERAL MOTORS — DAY 29
WHERE DOES IT STAND?: Monday marked Detroit-based GM's 29th day under court protection.
GM said Monday it's ending its joint venture with Toyota Motor Corp. at a Fremont, Calif., manufacturing plant as it continues to shrink its operations under bankruptcy protection.
GM said it was unable to reach an agreement with Toyota about a new product plan at the facility. The plant, called New United Motor Manufacturing Inc., or Nummi, currently produces the Pontiac Vibe for GM and the Corolla and Tacoma for Toyota.
GM announced it was phasing out the Pontiac brand earlier this year. The facility will cease production of GM vehicles in August, the company said.
Late last week, the automaker said in court filings that it has agreed to take on responsibility for future product liability claims.
In a concession to consumer groups and state officials who had threatened to block the sale because of product liability concerns, the new company will now assume responsibility for future claims involving vehicles made by the old company.
Consumers with pending cases against the automaker or who haven't filed suit yet in connection with a past incident, will still need to seek damages from the old company where there will likely be nothing left to pay their claims.
WHAT'S NEXT?: A hearing on GM's plan to sell its assets to a new government-controlled company and emerge from Chapter 11 is scheduled for Tuesday. GM CEO Fritz Henderson is expected to testify.
CHRYSLER
WHERE DOES IT STAND?: Auburn Hills, Mich.-based Chrysler Group LLC emerged from Chapter 11 earlier this month after a new company was created by the sale of most of the automaker's assets to a group led by Italy's Fiat Group SpA.
WHAT'S NEXT?: Chrysler assets not sold to Fiat, including eight plants, remain under Chapter 11 protection. Hearings to decide what to do with these so-called bad assets and to settle claims by the company's creditors will continue. The next hearing is scheduled for Tuesday.
by the associated press
GENERAL MOTORS — DAY 29
WHERE DOES IT STAND?: Monday marked Detroit-based GM's 29th day under court protection.
GM said Monday it's ending its joint venture with Toyota Motor Corp. at a Fremont, Calif., manufacturing plant as it continues to shrink its operations under bankruptcy protection.
GM said it was unable to reach an agreement with Toyota about a new product plan at the facility. The plant, called New United Motor Manufacturing Inc., or Nummi, currently produces the Pontiac Vibe for GM and the Corolla and Tacoma for Toyota.
GM announced it was phasing out the Pontiac brand earlier this year. The facility will cease production of GM vehicles in August, the company said.
Late last week, the automaker said in court filings that it has agreed to take on responsibility for future product liability claims.
In a concession to consumer groups and state officials who had threatened to block the sale because of product liability concerns, the new company will now assume responsibility for future claims involving vehicles made by the old company.
Consumers with pending cases against the automaker or who haven't filed suit yet in connection with a past incident, will still need to seek damages from the old company where there will likely be nothing left to pay their claims.
WHAT'S NEXT?: A hearing on GM's plan to sell its assets to a new government-controlled company and emerge from Chapter 11 is scheduled for Tuesday. GM CEO Fritz Henderson is expected to testify.
CHRYSLER
WHERE DOES IT STAND?: Auburn Hills, Mich.-based Chrysler Group LLC emerged from Chapter 11 earlier this month after a new company was created by the sale of most of the automaker's assets to a group led by Italy's Fiat Group SpA.
WHAT'S NEXT?: Chrysler assets not sold to Fiat, including eight plants, remain under Chapter 11 protection. Hearings to decide what to do with these so-called bad assets and to settle claims by the company's creditors will continue. The next hearing is scheduled for Tuesday.
by the associated press
J&J unit gets $1.67 billion
A unit of drugmaker Johnson & Johnson says a federal jury has returned a $1.67 billion verdict against Abbott Laboratories in a patent infringement suit over the companies' rheumatoid arthritis drugs.
Abbott's best-selling drug, Humira, competes with the drug Remicade, made by Centocor, a unit of New Brunswick, N.J.-based J&J. Centocor and New York University had filed a patent infringement suit against Abbott Park, Ill.-based Abbott in April 2007 in the Eastern District of Texas.
Abbott spokesman Scott Stoffel says the company is "disappointed in this verdict," and confident it will "prevail on appeal."
Humira has been key to Abbott's success story in recent years, racking up approvals for half a dozen uses, including psoriasis and Crohn's disease. Abbott booked $4.5 billion in Humira sales in 2008.
by the associated press
Abbott's best-selling drug, Humira, competes with the drug Remicade, made by Centocor, a unit of New Brunswick, N.J.-based J&J. Centocor and New York University had filed a patent infringement suit against Abbott Park, Ill.-based Abbott in April 2007 in the Eastern District of Texas.
Abbott spokesman Scott Stoffel says the company is "disappointed in this verdict," and confident it will "prevail on appeal."
Humira has been key to Abbott's success story in recent years, racking up approvals for half a dozen uses, including psoriasis and Crohn's disease. Abbott booked $4.5 billion in Humira sales in 2008.
by the associated press
Rebels of nigerian drive up Oil
A small group of insurgents in Nigeria's oil-rich Niger Delta helped drive up oil prices around the world yesterday by announcing a strike against one of Royal Dutch Shell's two main export terminals in the West African nation.
Spurning a Nigerian government offer of amnesty, members of the Movement for the Emancipation of the Niger Delta (MEND) have continued a series of attacks on oil installations. The group and its allies have now shut down a total of about 900,000 barrels a day, according to Argus Global Markets, an industry newsletter. In an e-mail yesterday, the insurgents claimed to have set fire to Shell's Forcados terminal with a "massive explosion" and to have sunk a Nigerian military patrol boat with more than 20 soldiers on board.
News of the attack helped prop up oil prices, which rose $2.33 a barrel, or 3.4 percent, to $71.49 a barrel on the New York Mercantile Exchange yesterday.
Prices rose despite a new International Energy Agency forecast warning of sluggish increases in world crude oil supplies over the next few years, but adding that demand would be even more sluggish. The group said that supplies through 2014 would rise 1.5 million barrels a day less than previously expected, but that oil consumption would be 3 million barrels a day less than the IEA had previously forecast.
"Whether we end up facing a supply crunch again by mid-decade, or with a more comfortable buffer of supply flexibility, depends largely on the pace of economic recovery and government action on efficiency", said Nobuo Tanaka, IEA executive director.
For now, however, oil supplies are plentiful, many analysts noted. World inventories are high and demand for petroleum products is weak because of the global economic slowdown. As a result of falling oil consumption and new capacity added in Saudi Arabia and Angola, there is about 6 million barrels a day of spare oil production capacity worldwide.
But the Nigerian attacks have eaten up a little bit of that cushion and have damaged the interests of several international oil companies, including Royal Dutch Shell, Chevron and the Italian oil giant ENI.
Shell, which operates and owns 55 percent of a joint venture in the marshy Niger Delta region, has suffered a series of attacks that cut output from its Forcados terminal to 25,000 barrels a day from nearly 200,000 barrels a day earlier this year and more than 400,000 barrels a day before attacks in February 2006, according to Argus Global Markets.
The attacks have also cut into the Nigerian government's oil revenues. "With Nigeria's ever increasing budget deficits, the country cannot tolerate this decline in crude production for much longer," Sebastian Spio-Garbrah, an analyst with the Eurasia Group, said in a report on the region.
Nigerian President Umaru Yar'Adua recently offered to grant amnesty to insurgents who turned in weapons and renounced "militancy." The offer is open for 60 days.
In an e-mail response to questions yesterday, a MEND spokesman who uses the name Jomo Gbomo said: "We do not need amnesty. What we need is justice." He said that at least one leader of a loosely affiliated group had accepted. He called the person "a political thug."
In an earlier note, he had said that the Nigerian government was offering large sums of money to entice groups into accepting the amnesty offer. "Only those who are willing to sell their birthright for a bowl of porridge will accept while the rest of us will continue the struggle until justice is achieved," he wrote.
Spio-Garbrah said the amnesty would likely fail because the Nigerian government "has a historical credibility problem in the Delta." The oil-rich region has long complained that the federal government does not share enough proceeds from oil.
Shell spokespeople in the United States could not be reached for comment, but Bloomberg News quoted a Nigerian-based Shell spokesman as confirming the attacks.
from the washington post
Spurning a Nigerian government offer of amnesty, members of the Movement for the Emancipation of the Niger Delta (MEND) have continued a series of attacks on oil installations. The group and its allies have now shut down a total of about 900,000 barrels a day, according to Argus Global Markets, an industry newsletter. In an e-mail yesterday, the insurgents claimed to have set fire to Shell's Forcados terminal with a "massive explosion" and to have sunk a Nigerian military patrol boat with more than 20 soldiers on board.
News of the attack helped prop up oil prices, which rose $2.33 a barrel, or 3.4 percent, to $71.49 a barrel on the New York Mercantile Exchange yesterday.
Prices rose despite a new International Energy Agency forecast warning of sluggish increases in world crude oil supplies over the next few years, but adding that demand would be even more sluggish. The group said that supplies through 2014 would rise 1.5 million barrels a day less than previously expected, but that oil consumption would be 3 million barrels a day less than the IEA had previously forecast.
"Whether we end up facing a supply crunch again by mid-decade, or with a more comfortable buffer of supply flexibility, depends largely on the pace of economic recovery and government action on efficiency", said Nobuo Tanaka, IEA executive director.
For now, however, oil supplies are plentiful, many analysts noted. World inventories are high and demand for petroleum products is weak because of the global economic slowdown. As a result of falling oil consumption and new capacity added in Saudi Arabia and Angola, there is about 6 million barrels a day of spare oil production capacity worldwide.
But the Nigerian attacks have eaten up a little bit of that cushion and have damaged the interests of several international oil companies, including Royal Dutch Shell, Chevron and the Italian oil giant ENI.
Shell, which operates and owns 55 percent of a joint venture in the marshy Niger Delta region, has suffered a series of attacks that cut output from its Forcados terminal to 25,000 barrels a day from nearly 200,000 barrels a day earlier this year and more than 400,000 barrels a day before attacks in February 2006, according to Argus Global Markets.
The attacks have also cut into the Nigerian government's oil revenues. "With Nigeria's ever increasing budget deficits, the country cannot tolerate this decline in crude production for much longer," Sebastian Spio-Garbrah, an analyst with the Eurasia Group, said in a report on the region.
Nigerian President Umaru Yar'Adua recently offered to grant amnesty to insurgents who turned in weapons and renounced "militancy." The offer is open for 60 days.
In an e-mail response to questions yesterday, a MEND spokesman who uses the name Jomo Gbomo said: "We do not need amnesty. What we need is justice." He said that at least one leader of a loosely affiliated group had accepted. He called the person "a political thug."
In an earlier note, he had said that the Nigerian government was offering large sums of money to entice groups into accepting the amnesty offer. "Only those who are willing to sell their birthright for a bowl of porridge will accept while the rest of us will continue the struggle until justice is achieved," he wrote.
Spio-Garbrah said the amnesty would likely fail because the Nigerian government "has a historical credibility problem in the Delta." The oil-rich region has long complained that the federal government does not share enough proceeds from oil.
Shell spokespeople in the United States could not be reached for comment, but Bloomberg News quoted a Nigerian-based Shell spokesman as confirming the attacks.
from the washington post
Summer sales
NEW YORK — As consumers get ready to celebrate July Fourth, many merchants already have dismissed summer as a washout.
Macy’s flagship store has racks of summer tops, swimwear and dresses marked down as much as 50 percent, while luxury retailer Bergdorf Goodman is slashing prices on designer goods by as much as 70 percent. Meanwhile, piles of clothing, as well as barbecue grills, tents and gardening tools, are bypassing stores and heading straight to liquidators as merchants try to conserve their cash.
Such deep discounting so early in the season is great news for bargain hunters, but it’s a worrisome sign that shows a further weakening in retail sales since the end of May.
Consumers’ confidence in the economy, which had surged in April and May, is projected to be unchanged for June when The Conference Board releases figures today. And major retailers will release June sales results next week.
While unusually rainy weather across a broad swath of the country has dampened business, some analysts wonder whether shoppers are waking up to the harsh reality that the economy won’t be getting better soon — even as consumer spending makes up 70 percent of economic activity. That doesn’t bode well for merchants, who need to get rid of summer inventory quickly to make room for fall goods.
Consumers’ confidence has been rebounding since February, fueled in part by the stock market rise.
by the associated press
Macy’s flagship store has racks of summer tops, swimwear and dresses marked down as much as 50 percent, while luxury retailer Bergdorf Goodman is slashing prices on designer goods by as much as 70 percent. Meanwhile, piles of clothing, as well as barbecue grills, tents and gardening tools, are bypassing stores and heading straight to liquidators as merchants try to conserve their cash.
Such deep discounting so early in the season is great news for bargain hunters, but it’s a worrisome sign that shows a further weakening in retail sales since the end of May.
Consumers’ confidence in the economy, which had surged in April and May, is projected to be unchanged for June when The Conference Board releases figures today. And major retailers will release June sales results next week.
While unusually rainy weather across a broad swath of the country has dampened business, some analysts wonder whether shoppers are waking up to the harsh reality that the economy won’t be getting better soon — even as consumer spending makes up 70 percent of economic activity. That doesn’t bode well for merchants, who need to get rid of summer inventory quickly to make room for fall goods.
Consumers’ confidence has been rebounding since February, fueled in part by the stock market rise.
by the associated press
Ruth Madoff speaks about Bernie Madoff
NEW YORK — Ruth Madoff — memorably christened "The Loneliest Woman in New York” in a recent New York Times headline — finally spoke out after her notorious husband got a 150-year sentence that probably makes certain she’ll never see him again outside of prison.
"I am breaking my silence now, because my reluctance to speak has been interpreted as indifference or lack of sympathy for the victims of my husband Bernie’s crime, which is exactly the opposite of the truth,” Madoff said in a statement issued through her lawyer.
Ruth Madoff, 68, hasn’t been charged with a crime. But a judge’s order has stripped her of $80 million in assets including a penthouse apartment where she still lives. That’s left her with $2.5 million that couldn’t be linked to the fraud.
Ruth Madoff, though not at the courthouse, later expressed her feelings.
"I am embarrassed and ashamed,” she said. "Like everyone else, I feel betrayed and confused. The man who committed this horrible fraud is not the man whom I have known for all these years.”
by the associated press
"I am breaking my silence now, because my reluctance to speak has been interpreted as indifference or lack of sympathy for the victims of my husband Bernie’s crime, which is exactly the opposite of the truth,” Madoff said in a statement issued through her lawyer.
Ruth Madoff, 68, hasn’t been charged with a crime. But a judge’s order has stripped her of $80 million in assets including a penthouse apartment where she still lives. That’s left her with $2.5 million that couldn’t be linked to the fraud.
Ruth Madoff, though not at the courthouse, later expressed her feelings.
"I am embarrassed and ashamed,” she said. "Like everyone else, I feel betrayed and confused. The man who committed this horrible fraud is not the man whom I have known for all these years.”
by the associated press
Sentence of 150 years for Bernard Madoff
NEW YORK — Two weeks after Norma Hill and her husband invested their life savings with Bernard Madoff, she came to the then-trusted money manager with news her spouse suddenly died.
Madoff "put his arm around my shoulder and assured me my money was safe and I should not worry,” she wrote.
In the end, the widow lost everything.
U.S. District Judge Denny Chin cited Hill’s letter as one of the most stirring examples of an "extraordinarily evil” fraud, one worthy of a staggering sentence for Madoff: 150 years behind bars.
The sentence went far beyond the 12 years suggested by Madoff’s lawyers and virtually guaranteed that, at age 71, the financier-turned-felon would die while imprisoned. Chin said the term was meant to symbolically fit the crime — a multibillion-dollar fraud that’s been called the largest in history.
"Here, the message must be sent that Mr. Madoff’s crimes were extraordinarily evil and that this kind of irresponsible manipulation of the system is not merely a bloodless financial crime that takes place just on paper, but it is instead … one that takes a staggering human toll,” Chin said.
The sentence capped a 90-minute hearing in an ornate courtroom in Manhattan that turned into a tense showdown between a group of angry, tearful victims and Madoff, who sat silently at a defense table before apologizing with a mechanical calm.
"I will turn and face you,” he said. "I’m sorry. I know that doesn’t help you.”
Location is unknown
It was unclear where Madoff, who was returned to a downtown jail, will end up spending time. Chin said he would recommend a facility in the Northeast, but explained that it was up to federal prison officials determine an exact location and level of security.
The sentencing concluded a stunning fall from grace for Madoff. Clients of the former Nasdaq chairman — from Florida retirees to celebrities such as Steven Spielberg, actor Kevin Bacon and Hall of Fame pitcher Sandy Koufax — for decades flocked to him seeking investment returns that defied market fluctuations.
But late last year, Madoff made a dramatic confession: Authorities say he pulled his sons aside and told them of a massive Ponzi scheme.
Madoff pleaded guilty in March to securities fraud and other charges, saying he was "deeply sorry and ashamed.” He insisted that he acted alone, describing a separate wholesale stock-trading firm run by his sons and brother as honest and legitimate.
Aside from an accountant accused of cooking Madoff’s books, no one else has been criminally charged. But the family and the brokerage firms who recruited investors have come under scrutiny.
by the associated press
Madoff "put his arm around my shoulder and assured me my money was safe and I should not worry,” she wrote.
In the end, the widow lost everything.
U.S. District Judge Denny Chin cited Hill’s letter as one of the most stirring examples of an "extraordinarily evil” fraud, one worthy of a staggering sentence for Madoff: 150 years behind bars.
The sentence went far beyond the 12 years suggested by Madoff’s lawyers and virtually guaranteed that, at age 71, the financier-turned-felon would die while imprisoned. Chin said the term was meant to symbolically fit the crime — a multibillion-dollar fraud that’s been called the largest in history.
"Here, the message must be sent that Mr. Madoff’s crimes were extraordinarily evil and that this kind of irresponsible manipulation of the system is not merely a bloodless financial crime that takes place just on paper, but it is instead … one that takes a staggering human toll,” Chin said.
The sentence capped a 90-minute hearing in an ornate courtroom in Manhattan that turned into a tense showdown between a group of angry, tearful victims and Madoff, who sat silently at a defense table before apologizing with a mechanical calm.
"I will turn and face you,” he said. "I’m sorry. I know that doesn’t help you.”
Location is unknown
It was unclear where Madoff, who was returned to a downtown jail, will end up spending time. Chin said he would recommend a facility in the Northeast, but explained that it was up to federal prison officials determine an exact location and level of security.
The sentencing concluded a stunning fall from grace for Madoff. Clients of the former Nasdaq chairman — from Florida retirees to celebrities such as Steven Spielberg, actor Kevin Bacon and Hall of Fame pitcher Sandy Koufax — for decades flocked to him seeking investment returns that defied market fluctuations.
But late last year, Madoff made a dramatic confession: Authorities say he pulled his sons aside and told them of a massive Ponzi scheme.
Madoff pleaded guilty in March to securities fraud and other charges, saying he was "deeply sorry and ashamed.” He insisted that he acted alone, describing a separate wholesale stock-trading firm run by his sons and brother as honest and legitimate.
Aside from an accountant accused of cooking Madoff’s books, no one else has been criminally charged. But the family and the brokerage firms who recruited investors have come under scrutiny.
by the associated press
CEO Steve Jobs is back on the JOB
SEATTLE — Apple Inc. co-founder and CEO Steve Jobs is back at his office a few days a week after taking a 5,-month medical leave and getting a new liver.
Jobs, 54, will work from home on days he doesn’t work from Apple’s Cupertino, Calif., headquarters, company spokesman Steve Dowling said Monday.
Dowling did not say exactly when Jobs returned to the office.
The state of Jobs’ health and the timing of his return have been watched closely by investors and the media, because few CEOs are considered as instrumental to their companies’ success as Jobs has been to Apple.
He is seen as the visionary behind Apple’s popular iPod music players and the iPhone, which left far more experienced mobile phone makers scrambling to catch up.
The Apple chief was diagnosed with a rare form of pancreatic cancer called an islet cell neuroendocrine tumor. He had surgery in 2004 and announced then that he was cured.
Health questions
Last year, Jobs’ dramatic weight loss prompted new questions about his health, which Apple only intensified by saying in December that the CEO would not deliver the opening keynote at the Macworld conference.
In early January, Jobs said in a statement that he was suffering from an easily treated hormone imbalance, but he reversed course less than two weeks later, saying his medical condition was more complex than he thought.
He announced he would take a leave of absence until the end of June.
Methodist University Hospital Transplant Institute in Memphis, Tenn., said last week that Jobs had received a liver transplant.
Medical experts who were not involved in Jobs’ treatment have told The Associated Press that cancer cells not removed in the original surgery could have spread to Jobs’ liver.
The hospital would not say when the transplant took place, but in a statement said Jobs was recovering well and his prognosis is good.
A top producer
Since Jobs returned to Apple in 1997 after a 12-month hiatus, the company has expanded from a niche computer maker to become the top producer of portable media players and an increasingly important player in the cell phone business.
Job’s insistence on elegant design, and his ability to persuade consumers to spend more for it, has also given Apple’s Mac computers a boost.
But under the direction of Apple’s chief operating officer, Tim Cook, the company had continued to release well-received products during Jobs’ leave, including updated laptops with lower entry-level prices, updated Mac software and a faster iPhone with many longed-for features.
Apple sold more than a million of the new iPhone 3GS during its first three days on the market.
Stock issues
News and rumors about Jobs’ health have sent Apple stock soaring and sinking, but the company has largely kept investors in the dark about the details of the CEO’s condition and care.
Federal rules around what information Apple must disclose to shareholders aren’t specific on the matter of executive health unless the information would affect a reasonable investor’s decision to buy or sell a stock.
by the associated press
Jobs, 54, will work from home on days he doesn’t work from Apple’s Cupertino, Calif., headquarters, company spokesman Steve Dowling said Monday.
Dowling did not say exactly when Jobs returned to the office.
The state of Jobs’ health and the timing of his return have been watched closely by investors and the media, because few CEOs are considered as instrumental to their companies’ success as Jobs has been to Apple.
He is seen as the visionary behind Apple’s popular iPod music players and the iPhone, which left far more experienced mobile phone makers scrambling to catch up.
The Apple chief was diagnosed with a rare form of pancreatic cancer called an islet cell neuroendocrine tumor. He had surgery in 2004 and announced then that he was cured.
Health questions
Last year, Jobs’ dramatic weight loss prompted new questions about his health, which Apple only intensified by saying in December that the CEO would not deliver the opening keynote at the Macworld conference.
In early January, Jobs said in a statement that he was suffering from an easily treated hormone imbalance, but he reversed course less than two weeks later, saying his medical condition was more complex than he thought.
He announced he would take a leave of absence until the end of June.
Methodist University Hospital Transplant Institute in Memphis, Tenn., said last week that Jobs had received a liver transplant.
Medical experts who were not involved in Jobs’ treatment have told The Associated Press that cancer cells not removed in the original surgery could have spread to Jobs’ liver.
The hospital would not say when the transplant took place, but in a statement said Jobs was recovering well and his prognosis is good.
A top producer
Since Jobs returned to Apple in 1997 after a 12-month hiatus, the company has expanded from a niche computer maker to become the top producer of portable media players and an increasingly important player in the cell phone business.
Job’s insistence on elegant design, and his ability to persuade consumers to spend more for it, has also given Apple’s Mac computers a boost.
But under the direction of Apple’s chief operating officer, Tim Cook, the company had continued to release well-received products during Jobs’ leave, including updated laptops with lower entry-level prices, updated Mac software and a faster iPhone with many longed-for features.
Apple sold more than a million of the new iPhone 3GS during its first three days on the market.
Stock issues
News and rumors about Jobs’ health have sent Apple stock soaring and sinking, but the company has largely kept investors in the dark about the details of the CEO’s condition and care.
Federal rules around what information Apple must disclose to shareholders aren’t specific on the matter of executive health unless the information would affect a reasonable investor’s decision to buy or sell a stock.
by the associated press
Sunday, June 28, 2009
Ulysses solar probe to go dark
WASHINGTON (AP) — NASA and the European Space Agency are about to pull the plug on a robotic solar probe that just wouldn't quit. The Ulysses probe was launched from the space shuttle Discovery in 1990. It was supposed to last five years. But it's now nearing 19 years, 5.8 billion miles and still going.
Sixteen months ago, the two space agencies announced that Ulysses was freezing up and about to die in a matter of weeks. Somehow it kept operating, sending important science information about an extraordinarily quiet year for the sunspots and solar wind.
That will end on Tuesday when the space agencies turn off Ulysses' transmitter. Officials say issues with power, location and antennas make it no longer useful.
by the associated press
Sixteen months ago, the two space agencies announced that Ulysses was freezing up and about to die in a matter of weeks. Somehow it kept operating, sending important science information about an extraordinarily quiet year for the sunspots and solar wind.
That will end on Tuesday when the space agencies turn off Ulysses' transmitter. Officials say issues with power, location and antennas make it no longer useful.
by the associated press
Sony's Comeback
Sony (NYSE: SNE) may be developing a new phone that would better compete with the iPhone and be offered as an alternative to the PlayStation Portable. The device would likely go beyond the “Aino,” which Sony Ericsson (NSDQ: ERIC) unveiled last month, and allows users to tap into their PlayStation 3 while on the go.
Japan’s Nikkei business daily reported this weekend that Sony plans to set up a project team as early as next week that would develop a new product that combines the PSP and Sony Ericsson’s mobile phones, Reuters reports. The device was being referred to as “a cellphone-game gear hybrid.”
For years, there’s been some questions as to whether the phone manufacturer, which is a joint venture between Sony and Ericsson, would have access to the Playstation brand. The Aino last month provided the first evidence that Sony Ericsson phones could at least use the brand and tap into some of the gaming console’s features. How far the two will go together to create a gaming-focused device remains to be seen, but to be sure the two companies are likely considering everything in the hopes of finding a product that will boost the handset-maker’s marketshare.
from the washington post
Japan’s Nikkei business daily reported this weekend that Sony plans to set up a project team as early as next week that would develop a new product that combines the PSP and Sony Ericsson’s mobile phones, Reuters reports. The device was being referred to as “a cellphone-game gear hybrid.”
For years, there’s been some questions as to whether the phone manufacturer, which is a joint venture between Sony and Ericsson, would have access to the Playstation brand. The Aino last month provided the first evidence that Sony Ericsson phones could at least use the brand and tap into some of the gaming console’s features. How far the two will go together to create a gaming-focused device remains to be seen, but to be sure the two companies are likely considering everything in the hopes of finding a product that will boost the handset-maker’s marketshare.
from the washington post
NASA. launches weather satellite
Fla., June 28 (UPI) -- NASA says a satellite it launched in Florida this weekend will bolster weather-forecasting capabilities and monitor changes in the environment.
The Geostationary Operational Environmental Satellite, known as GOES-O, lifted off Saturday without a hitch from Cape Canaveral aboard a Delta IV rocket and will be placed in its final orbit July 7.
The space agency said in a written statement that all systems were functioning properly.
GOES-O is the second in the GOES-N series of environmental weather satellites. Its designation will change to GOES 14 once it is operational.
CBS News said the satellite's advanced imaging will help weather forecasters track small-scale weather phenomenon, including storms capable of producing tornadoes.
"The increased resolution and accuracy that these these satellites will present will help us pinpoint what's happening, and if we know what's happening, we can do a better job of making short-term and long-term forecasts of where it's going to be," said Joe Schaefer, director of the U.S. Storm Prediction Center in Norman, Okla.
from upi.com
The Geostationary Operational Environmental Satellite, known as GOES-O, lifted off Saturday without a hitch from Cape Canaveral aboard a Delta IV rocket and will be placed in its final orbit July 7.
The space agency said in a written statement that all systems were functioning properly.
GOES-O is the second in the GOES-N series of environmental weather satellites. Its designation will change to GOES 14 once it is operational.
CBS News said the satellite's advanced imaging will help weather forecasters track small-scale weather phenomenon, including storms capable of producing tornadoes.
"The increased resolution and accuracy that these these satellites will present will help us pinpoint what's happening, and if we know what's happening, we can do a better job of making short-term and long-term forecasts of where it's going to be," said Joe Schaefer, director of the U.S. Storm Prediction Center in Norman, Okla.
from upi.com
Venus and Mars
As the nation celebrates another birthday, see the spangled Venus and a dim Mars in July before dawn's early light.
Mars, our neighboring red planet, rises about 3 a.m. in the northeastern sky, followed shortly by a brilliant Venus. Both can be seen high in the east before sunrise in the constellation Taurus, but the differences are striking. Venus, at a negative fourth magnitude, is very bright; Mars is much less so at first magnitude and is even harder to see in light-polluted urban areas. By the end of July, Venus is seen lower in the eastern heavens.
Late night with Jupiter: The largest planet in the solar system rises in the east-southeast about 11 p.m. After midnight you should see it snuggled between the constellations Aquarius and Capricornus. It's a negative second magnitude, very bright and easily seen from the city. By 4 a.m., Jupiter is high in the southwest.
Still loitering in the constellation Leo, see ringed Saturn high in the western sky after sundown. The planet remains visible at first magnitude. By month's end, the planet will be noticeably lower in the west after dusk.
Although it won't be visible in the United States, a total solar eclipse will occur over Asia and the Pacific Ocean -- for 6 minutes and 39 seconds -- on July 22. Eclipse expert Fred Espenak, of the NASA/Goddard Space Flight Center, offers details at http://eclipse.gsfc.nasa.gov/eclipse.html.
It's been 40 years since the lunar module Eagle landed on the moon with less than a half-minute of fuel remaining. After landing, Apollo 11 astronaut Neil Armstrong took his small step for man and giant leap for mankind July 20, 1969. A number of events noted below celebrate the anniversary.
Down-to-Earth Events
-- July 5 -- Astronomer Matthew Burger discusses "Europa: Ice, Oceans and Life?" at the open house at the University of Maryland Observatory, College Park. View the night sky afterward, weather permitting. 9 p.m. 301-405-6555; http://www.astro.umd.edu/openhouse.
-- July 11 and July 25 -- Planets and Messier objects and constellations, oh my! The Astronomical Society of Greenbelt hosts a star party at the observatory at Northway Fields Park in Greenbelt. 9 p.m. http://www.greenbeltastro.org.
-- July 16 -- Family Day -- "Countdown to the Moon!" -- at the National Air and Space Museum, the Mall. Find out about lunar missions past and future. Meet moon researchers and see 3-D, high-definition images of the moon's surface. 10 a.m. - 3 p.m. http://www.nasm.si.edu/.
July 16 -- "Alan Bean: Painting Apollo, First Artist on Another World" opens, featuring the artistic works of Apollo 12 astronaut Bean, in the Flight in the Arts Gallery (211), National Air and Space Museum, the Mall. He will sign copies of his book, "Painting Apollo," from 11 a.m. to 2 p.m. http://www.nasm.si.edu/.
-- July 19 -- Meet Apollo 11 astronauts Buzz Aldrin and Michael Collins and Apollo 12 astronaut Bean as each signs his book at the Space Race Gallery (114), National Air and Space Museum, the Mall. Aldrin's book is "Magnificent Desolation: The Long Journey Home from the Moon"; Collins's, "Carrying the Fire: An Astronaut's Journeys"; and Bean's, "Painting Apollo." 11 a.m. -- 2 p.m., http://www.nasm.si.edu/ .
-- July 19 -- No tickets remain for this year's John H. Glenn Lecture, "40th Anniversary of Apollo 11," but the event can be seen on NASA-TV, http://www.nasa.gov/multimedia/nasatv/index.html. The Apollo 11 crew, former Johnson Space Center director Chris Kraft and former astronaut Glenn will discuss the historic mission at the National Air and Space Museum's Lockheed Martin IMAX Theater, 8 p.m. http://www.nasm.si.edu.
-- July 20 -- "The Apollo Legacy: The Moon and Beyond." Journalist Nick Clooney moderates a discussion with astronauts Aldrin, Bean, Apollo 16's Charlie Duke, space shuttle astronaut John Grunsfeld, and Laurie Leshin, deputy director of the Goddard Space Flight Center. 2 p.m. at the Newseum, 555 Pennsylvania Ave. NW. The event can be seen on NASA-TV, http://www.nasa.gov/multimedia/nasatv/index.html.
-- July 20 -- Sean O'Neill answers the question, "If We Can't See Black Holes, How Do We Know That They Exist?" at an open house of the University of Maryland Observatory, College Park. Weather permitting, enjoy the heavens through a telescope afterward. 9 p.m. 301-405-6555; http://www.astro.umd.edu/openhouse.
-- July 25 -- Behold the bountiful heaven in a dark, summer night sky. Astronomer Sean O'Brien of the National Air and Space Museum provides a cosmic tour at Sky Meadows State Park near Paris, Va. Parking: $4. Arrive before dark. 8:30-11 p.m. 540-592-3556; http://www.nasm.si.edu/events/skywatching.
-- July 25 -- Heavenly visions: "Exploring the Sky" at Rock Creek Park, presented by the National Park Service and the National Capital Astronomers. Meet near the Nature Center in the field south of Military and Glover roads NW. 9-11 p.m. 202-895-6070.
-- July 26 -- Step up to the stars as the Astronomical Society of Greenbelt presents "sidewalk astronomy." The public can view the night sky through member telescopes at the Roosevelt Center in Greenbelt, near Crescent Road and Centerway. 7 p.m. http://www.greenbeltastro.org.
from the washington post
Mars, our neighboring red planet, rises about 3 a.m. in the northeastern sky, followed shortly by a brilliant Venus. Both can be seen high in the east before sunrise in the constellation Taurus, but the differences are striking. Venus, at a negative fourth magnitude, is very bright; Mars is much less so at first magnitude and is even harder to see in light-polluted urban areas. By the end of July, Venus is seen lower in the eastern heavens.
Late night with Jupiter: The largest planet in the solar system rises in the east-southeast about 11 p.m. After midnight you should see it snuggled between the constellations Aquarius and Capricornus. It's a negative second magnitude, very bright and easily seen from the city. By 4 a.m., Jupiter is high in the southwest.
Still loitering in the constellation Leo, see ringed Saturn high in the western sky after sundown. The planet remains visible at first magnitude. By month's end, the planet will be noticeably lower in the west after dusk.
Although it won't be visible in the United States, a total solar eclipse will occur over Asia and the Pacific Ocean -- for 6 minutes and 39 seconds -- on July 22. Eclipse expert Fred Espenak, of the NASA/Goddard Space Flight Center, offers details at http://eclipse.gsfc.nasa.gov/eclipse.html.
It's been 40 years since the lunar module Eagle landed on the moon with less than a half-minute of fuel remaining. After landing, Apollo 11 astronaut Neil Armstrong took his small step for man and giant leap for mankind July 20, 1969. A number of events noted below celebrate the anniversary.
Down-to-Earth Events
-- July 5 -- Astronomer Matthew Burger discusses "Europa: Ice, Oceans and Life?" at the open house at the University of Maryland Observatory, College Park. View the night sky afterward, weather permitting. 9 p.m. 301-405-6555; http://www.astro.umd.edu/openhouse.
-- July 11 and July 25 -- Planets and Messier objects and constellations, oh my! The Astronomical Society of Greenbelt hosts a star party at the observatory at Northway Fields Park in Greenbelt. 9 p.m. http://www.greenbeltastro.org.
-- July 16 -- Family Day -- "Countdown to the Moon!" -- at the National Air and Space Museum, the Mall. Find out about lunar missions past and future. Meet moon researchers and see 3-D, high-definition images of the moon's surface. 10 a.m. - 3 p.m. http://www.nasm.si.edu/.
July 16 -- "Alan Bean: Painting Apollo, First Artist on Another World" opens, featuring the artistic works of Apollo 12 astronaut Bean, in the Flight in the Arts Gallery (211), National Air and Space Museum, the Mall. He will sign copies of his book, "Painting Apollo," from 11 a.m. to 2 p.m. http://www.nasm.si.edu/.
-- July 19 -- Meet Apollo 11 astronauts Buzz Aldrin and Michael Collins and Apollo 12 astronaut Bean as each signs his book at the Space Race Gallery (114), National Air and Space Museum, the Mall. Aldrin's book is "Magnificent Desolation: The Long Journey Home from the Moon"; Collins's, "Carrying the Fire: An Astronaut's Journeys"; and Bean's, "Painting Apollo." 11 a.m. -- 2 p.m., http://www.nasm.si.edu/ .
-- July 19 -- No tickets remain for this year's John H. Glenn Lecture, "40th Anniversary of Apollo 11," but the event can be seen on NASA-TV, http://www.nasa.gov/multimedia/nasatv/index.html. The Apollo 11 crew, former Johnson Space Center director Chris Kraft and former astronaut Glenn will discuss the historic mission at the National Air and Space Museum's Lockheed Martin IMAX Theater, 8 p.m. http://www.nasm.si.edu.
-- July 20 -- "The Apollo Legacy: The Moon and Beyond." Journalist Nick Clooney moderates a discussion with astronauts Aldrin, Bean, Apollo 16's Charlie Duke, space shuttle astronaut John Grunsfeld, and Laurie Leshin, deputy director of the Goddard Space Flight Center. 2 p.m. at the Newseum, 555 Pennsylvania Ave. NW. The event can be seen on NASA-TV, http://www.nasa.gov/multimedia/nasatv/index.html.
-- July 20 -- Sean O'Neill answers the question, "If We Can't See Black Holes, How Do We Know That They Exist?" at an open house of the University of Maryland Observatory, College Park. Weather permitting, enjoy the heavens through a telescope afterward. 9 p.m. 301-405-6555; http://www.astro.umd.edu/openhouse.
-- July 25 -- Behold the bountiful heaven in a dark, summer night sky. Astronomer Sean O'Brien of the National Air and Space Museum provides a cosmic tour at Sky Meadows State Park near Paris, Va. Parking: $4. Arrive before dark. 8:30-11 p.m. 540-592-3556; http://www.nasm.si.edu/events/skywatching.
-- July 25 -- Heavenly visions: "Exploring the Sky" at Rock Creek Park, presented by the National Park Service and the National Capital Astronomers. Meet near the Nature Center in the field south of Military and Glover roads NW. 9-11 p.m. 202-895-6070.
-- July 26 -- Step up to the stars as the Astronomical Society of Greenbelt presents "sidewalk astronomy." The public can view the night sky through member telescopes at the Roosevelt Center in Greenbelt, near Crescent Road and Centerway. 7 p.m. http://www.greenbeltastro.org.
from the washington post
Greener cars
Newer is not necessarily greener, and fuel economy is not the last word on emissions ["Cash for Clunkers," editorial, June 23]. Roughly 10 percent of a car's lifetime emissions is produced in manufacturing; an additional 5 percent comes from recycling the vehicle at the end. Often, junking an old car for a new one is less environmentally sound than driving a lower- mileage vehicle a few years longer.
The driver of a decade-old midsize sedan who scraps it two years earlier than planned will not so much as break even environmentally unless the car is driven more than 20,000 miles per year. Even then, buying a used vehicle is often the more prudent choice, financially and environmentally.
"Cash for Clunkers" will not guide people toward more fuel-efficient vehicles; even many sport-utility vehicles qualify. It simply puts more people in new cars.
Bad for the environment, bad for the budget, but good for the auto industry. Washington's stake in Detroit does appear to make a difference.
from the washington post
The driver of a decade-old midsize sedan who scraps it two years earlier than planned will not so much as break even environmentally unless the car is driven more than 20,000 miles per year. Even then, buying a used vehicle is often the more prudent choice, financially and environmentally.
"Cash for Clunkers" will not guide people toward more fuel-efficient vehicles; even many sport-utility vehicles qualify. It simply puts more people in new cars.
Bad for the environment, bad for the budget, but good for the auto industry. Washington's stake in Detroit does appear to make a difference.
from the washington post
GM to Allow few Product Liability Claims
General Motors will assume responsibility for product liability claims filed after the carmaker emerges from bankruptcy protection, a concession that removes a potential obstacle to the Obama administration's plan for the company's quick restructuring.
Under the deal reached by the administration, GM and state attorneys general, the automaker will accept claims arising from defective-vehicle accidents that occur after it emerges from Chapter 11 proceedings. Consumers could file the claims even if their vehicles were made by the "old" GM. However, those with past claims would have to pursue the GM left behind in bankruptcy with nothing but unwanted assets, debts and other liabilities. That means these consumers are likely to recover little, if anything.
Under GM's original restructuring plan, the automaker was to have sold its valuable assets to a new GM "free and clear" of liens, including existing and future liability claims on cars the old GM produced. Consumer watchdogs and many state attorneys general, including Maryland's, have objected, saying such a sale would deprive individuals of "key legal rights."
The modification, outlined in court papers filed by GM late Friday, is a partial victory for the consumer groups and attorneys general, who took their case to Congress and pressured the Obama administration to make the automaker accept all product liability claims. GM acquiesced only on future claims; case law on that issue is unsettled and could have held up the quick bankruptcy proceedings sought by the Obama administration. The federal government, which has committed more than $50 billion to the restructuring, is to take a 61 percent stake in the new GM.
A hearing on the sale is scheduled for tomorrow.
In a court filing, GM noted that it was making the amendment "to alleviate certain concerns that have been raised on behalf of consumers" even though it was not legally obligated to do so.
Consumer groups welcomed the amendment but said the automaker, along with Chrysler, should do more. After bankruptcy proceedings similar to those being pursued by GM, Chrysler's assets were sold to a new entity led by Italian automaker Fiat, free of existing and future product liability claims.
On Friday Rep. André Carson (D-Ind.) introduced legislation that would require automakers to purchase liability insurance if they are owned by the federal government or have federal loans. This insurance must protect against past and future claims, even after a bankruptcy filing.
"Congress still needs to step in and do something for Chrysler victims," said Joanne Doroshow, executive director of the Center for Justice and Democracy. "That bankruptcy is over. The only way for victims to get help is if there's a law that establishes it."
from the washington post
Under the deal reached by the administration, GM and state attorneys general, the automaker will accept claims arising from defective-vehicle accidents that occur after it emerges from Chapter 11 proceedings. Consumers could file the claims even if their vehicles were made by the "old" GM. However, those with past claims would have to pursue the GM left behind in bankruptcy with nothing but unwanted assets, debts and other liabilities. That means these consumers are likely to recover little, if anything.
Under GM's original restructuring plan, the automaker was to have sold its valuable assets to a new GM "free and clear" of liens, including existing and future liability claims on cars the old GM produced. Consumer watchdogs and many state attorneys general, including Maryland's, have objected, saying such a sale would deprive individuals of "key legal rights."
The modification, outlined in court papers filed by GM late Friday, is a partial victory for the consumer groups and attorneys general, who took their case to Congress and pressured the Obama administration to make the automaker accept all product liability claims. GM acquiesced only on future claims; case law on that issue is unsettled and could have held up the quick bankruptcy proceedings sought by the Obama administration. The federal government, which has committed more than $50 billion to the restructuring, is to take a 61 percent stake in the new GM.
A hearing on the sale is scheduled for tomorrow.
In a court filing, GM noted that it was making the amendment "to alleviate certain concerns that have been raised on behalf of consumers" even though it was not legally obligated to do so.
Consumer groups welcomed the amendment but said the automaker, along with Chrysler, should do more. After bankruptcy proceedings similar to those being pursued by GM, Chrysler's assets were sold to a new entity led by Italian automaker Fiat, free of existing and future product liability claims.
On Friday Rep. André Carson (D-Ind.) introduced legislation that would require automakers to purchase liability insurance if they are owned by the federal government or have federal loans. This insurance must protect against past and future claims, even after a bankruptcy filing.
"Congress still needs to step in and do something for Chrysler victims," said Joanne Doroshow, executive director of the Center for Justice and Democracy. "That bankruptcy is over. The only way for victims to get help is if there's a law that establishes it."
from the washington post
Saturday, June 27, 2009
Yahoo CEO promises shareholders , things will get better
SANTA CLARA, Calif. (AP) — Yahoo CEO Carol Bartz assured shareholders that the slumping Internet company will "get our mojo back" as she tries to end a three-year slump that confounded her two predecessors.
Bartz made the pledge Thursday during her first shareholder meeting since Yahoo hired her six months ago.
In the mostly amiable one-hour meeting in Santa Clara, Bartz also told shareholders she won't talk publicly about Yahoo's on-again, off-again talks with Microsoft unless the two rivals make a deal.
Yahoo Inc. rejected a $47.5 billion takeover bid from Microsoft Corp. last year, infuriating many of its shareholders. Microsoft has since explored buying Yahoo's search engine, but Bartz has downplayed that possibility.
by the associated press
Bartz made the pledge Thursday during her first shareholder meeting since Yahoo hired her six months ago.
In the mostly amiable one-hour meeting in Santa Clara, Bartz also told shareholders she won't talk publicly about Yahoo's on-again, off-again talks with Microsoft unless the two rivals make a deal.
Yahoo Inc. rejected a $47.5 billion takeover bid from Microsoft Corp. last year, infuriating many of its shareholders. Microsoft has since explored buying Yahoo's search engine, but Bartz has downplayed that possibility.
by the associated press
Court order set to strip Madoff of $171 billion
NEW YORK (AP) — Bernard Madoff would be stripped of all his possessions under a $171 billion forfeiture order handed down only days before prosecutors seek to put the disgraced financier away in prison for the rest of his life.
U.S. District Judge Denny Chin entered the preliminary order Friday, ruling that Madoff must give up his interests in all property, including real estate, investments, cars and boats.
The forfeiture represents the total amount that could be connected to Madoff's fraud, not the amount stolen or lost, and the order made clear that nothing prevents other departments or entities from seeking to recover additional funds.
A call to Madoff's lawyer, Ira Sorkin, after hours Friday was not immediately returned. In a court filing in March, Sorkin said the government's forfeiture demand of $177 billion was "grossly overstated — and misleading — even for a case of this magnitude."
The 71-year-old Madoff pleaded guilty in March to charges that his exclusive investment advisory business was actually a massive Ponzi scheme. Federal prosecutors say Madoff orchestrated perhaps the largest financial swindle in history.
Acting U.S. Attorney Lev Dassin, who released a copy of the order Friday night, plans to seek a 150-year prison term at Madoff's sentencing Monday. Sorkin has argued in court papers for a 12-year term.
According to Friday's order, the government also settled claims against Madoff's wife. Under the arrangement, the government obtained Ruth Madoff's interest in all property, including more than $80 million-worth that she had claimed was hers, prosecutors said. The order left her $2.5 million in assets.
The agreements strip the Madoffs of all their interest in properties belonging to them, including homes in Manhattan, Montauk, N.Y., and Palm Beach, Fla., worth a total of nearly $22 million. The Madoff's must also forfeit all insured or salable personal property contained in the homes.
Other seized assets include accounts at Cohmad Securities Corp., valued at almost $50 million, and at Wachovia Bank, valued at just over $13 million, and tens of millions of dollars in loans extended by Madoff to family, employees and friends.
The judge's order also authorized the U.S. Marshals Service to sell the Manhattan co-op, properties in Montauk and Palm Beach and certain cars and boats.
At the time of Madoff's arrest, fictitious account statements showed thousands of clients had $65 billion. But investigators say he never traded securities, and instead used money from new investors to pay returns to existing clients.
Prosecutors said the total losses, which span decades, haven't been calculated. But 1,341 accounts opened since December 1995 alone suffered losses of $13.2 billion, they said.
"The sheer scale of the fraud calls for severe punishment," the prosecutors wrote in response to the defense motion seeking lighter punishment.
Prosecutors said federal sentencing guidelines allow for the 150-year term, and any lesser sentence should still be long enough to send a forceful message and "assure that Madoff will remain in prison for life."
The government's papers quoted from letters to Chin written by victims of the scheme who are suffering severe hardships. Madoff "ruined lives," one letter said. "He deserves no mercy."
But Sorkin argued in filings that his client deserved credit for his voluntary surrender, full acceptance of responsibility and meaningful cooperation efforts.
"We seek neither mercy nor sympathy," Sorkin wrote.
He urged the judge to "set aside the emotion and hysteria attendant to this case" as he determines the sentence.
by the associated press
U.S. District Judge Denny Chin entered the preliminary order Friday, ruling that Madoff must give up his interests in all property, including real estate, investments, cars and boats.
The forfeiture represents the total amount that could be connected to Madoff's fraud, not the amount stolen or lost, and the order made clear that nothing prevents other departments or entities from seeking to recover additional funds.
A call to Madoff's lawyer, Ira Sorkin, after hours Friday was not immediately returned. In a court filing in March, Sorkin said the government's forfeiture demand of $177 billion was "grossly overstated — and misleading — even for a case of this magnitude."
The 71-year-old Madoff pleaded guilty in March to charges that his exclusive investment advisory business was actually a massive Ponzi scheme. Federal prosecutors say Madoff orchestrated perhaps the largest financial swindle in history.
Acting U.S. Attorney Lev Dassin, who released a copy of the order Friday night, plans to seek a 150-year prison term at Madoff's sentencing Monday. Sorkin has argued in court papers for a 12-year term.
According to Friday's order, the government also settled claims against Madoff's wife. Under the arrangement, the government obtained Ruth Madoff's interest in all property, including more than $80 million-worth that she had claimed was hers, prosecutors said. The order left her $2.5 million in assets.
The agreements strip the Madoffs of all their interest in properties belonging to them, including homes in Manhattan, Montauk, N.Y., and Palm Beach, Fla., worth a total of nearly $22 million. The Madoff's must also forfeit all insured or salable personal property contained in the homes.
Other seized assets include accounts at Cohmad Securities Corp., valued at almost $50 million, and at Wachovia Bank, valued at just over $13 million, and tens of millions of dollars in loans extended by Madoff to family, employees and friends.
The judge's order also authorized the U.S. Marshals Service to sell the Manhattan co-op, properties in Montauk and Palm Beach and certain cars and boats.
At the time of Madoff's arrest, fictitious account statements showed thousands of clients had $65 billion. But investigators say he never traded securities, and instead used money from new investors to pay returns to existing clients.
Prosecutors said the total losses, which span decades, haven't been calculated. But 1,341 accounts opened since December 1995 alone suffered losses of $13.2 billion, they said.
"The sheer scale of the fraud calls for severe punishment," the prosecutors wrote in response to the defense motion seeking lighter punishment.
Prosecutors said federal sentencing guidelines allow for the 150-year term, and any lesser sentence should still be long enough to send a forceful message and "assure that Madoff will remain in prison for life."
The government's papers quoted from letters to Chin written by victims of the scheme who are suffering severe hardships. Madoff "ruined lives," one letter said. "He deserves no mercy."
But Sorkin argued in filings that his client deserved credit for his voluntary surrender, full acceptance of responsibility and meaningful cooperation efforts.
"We seek neither mercy nor sympathy," Sorkin wrote.
He urged the judge to "set aside the emotion and hysteria attendant to this case" as he determines the sentence.
by the associated press
Michael Jackson, remains a moneymaking machine
LOS ANGELES — Michael Jackson spent the last years of his life buried in debt. But the King of Pop’s death is likely to yield a financial bonanza more lucrative than any comeback tour ever could, as fans snap up his music and memorabilia and perhaps one day get the chance to tour his Neverland home.
"Quite frankly, he may be worth more dead than alive,” said Jerry Reisman, general counsel for the Hit Factory, a recording studio where Jackson produced his best-selling album "Thriller.”
Jackson’s death at age 50 leaves a multitude of questions about a financial empire that included his own music, as well a 50 percent stake in a library that held the rights to songs by the Beatles. But Jackson reportedly had $400 million in debts, and it isn’t known how his estate will be divided and who the beneficiaries will be.
This much is clear: Jackson’s heirs, music labels and opportunists will probably be mining his legacy for decades to come.
In that way, his death may parallel that of the music industry’s original King — Elvis Presley, who died in 1977 at age 42.
Like Jackson, Presley hadn’t had a hit album in years. At the end of his life, he was mostly relying on royalties from his past hits and doing shows in Las Vegas. But in death he became a moneymaking phenomenon.
Presley’s estate was valued at just $4.9 million at the time of his death. In 2005, a company run by media entrepreneur Robert F.X. Sillerman paid $100 million for 85 percent of the estate and a 90-year lease on his Memphis mansion, Graceland.
By some estimates, Jackson’s estate could be worth more than $1 billion. Besides the master recordings of his own music, Jackson owned half of Sony/ATV Music Publishing, a jewel estimated to be worth $2 billion by itself. The 750,000-song catalog includes music by the Beatles, Bob Dylan, Neil Diamond, Lady Gaga and the Jonas Brothers.
Debts come first
Creditors will get first crack at the estate.
"I think the first question is, `Is there anything left after you pay off the debts?’” said Robert Rasmussen, the dean of law at the University of Southern California.
Jackson might have shielded some of his estate from creditors and ensured that his children were taken care of by placing a life insurance policy and other assets in an irrevocable trust, said Steve Hartnett, associate director of education for the American Academy of Estate Planning Attorneys.
The pop star left behind three children: Michael Joseph Jackson Jr., known as Prince Michael, 12; Paris Michael Katherine Jackson, 11; and Prince Michael II, 7. The elder children were born to ex-wife Deborah Rowe, while the youngest is his biological son, born to a surrogate mother.
Other potential beneficiaries include Jackson’s parents, his five brothers, three sisters and a long list of nieces and nephews. His children’s nanny was believed to be close to Jackson.
The contents of Jackson’s will have not been released. Typically, a will becomes public within about 30 days of a person’s death.
by the associated press
"Quite frankly, he may be worth more dead than alive,” said Jerry Reisman, general counsel for the Hit Factory, a recording studio where Jackson produced his best-selling album "Thriller.”
Jackson’s death at age 50 leaves a multitude of questions about a financial empire that included his own music, as well a 50 percent stake in a library that held the rights to songs by the Beatles. But Jackson reportedly had $400 million in debts, and it isn’t known how his estate will be divided and who the beneficiaries will be.
This much is clear: Jackson’s heirs, music labels and opportunists will probably be mining his legacy for decades to come.
In that way, his death may parallel that of the music industry’s original King — Elvis Presley, who died in 1977 at age 42.
Like Jackson, Presley hadn’t had a hit album in years. At the end of his life, he was mostly relying on royalties from his past hits and doing shows in Las Vegas. But in death he became a moneymaking phenomenon.
Presley’s estate was valued at just $4.9 million at the time of his death. In 2005, a company run by media entrepreneur Robert F.X. Sillerman paid $100 million for 85 percent of the estate and a 90-year lease on his Memphis mansion, Graceland.
By some estimates, Jackson’s estate could be worth more than $1 billion. Besides the master recordings of his own music, Jackson owned half of Sony/ATV Music Publishing, a jewel estimated to be worth $2 billion by itself. The 750,000-song catalog includes music by the Beatles, Bob Dylan, Neil Diamond, Lady Gaga and the Jonas Brothers.
Debts come first
Creditors will get first crack at the estate.
"I think the first question is, `Is there anything left after you pay off the debts?’” said Robert Rasmussen, the dean of law at the University of Southern California.
Jackson might have shielded some of his estate from creditors and ensured that his children were taken care of by placing a life insurance policy and other assets in an irrevocable trust, said Steve Hartnett, associate director of education for the American Academy of Estate Planning Attorneys.
The pop star left behind three children: Michael Joseph Jackson Jr., known as Prince Michael, 12; Paris Michael Katherine Jackson, 11; and Prince Michael II, 7. The elder children were born to ex-wife Deborah Rowe, while the youngest is his biological son, born to a surrogate mother.
Other potential beneficiaries include Jackson’s parents, his five brothers, three sisters and a long list of nieces and nephews. His children’s nanny was believed to be close to Jackson.
The contents of Jackson’s will have not been released. Typically, a will becomes public within about 30 days of a person’s death.
by the associated press
Big oil takes new role
HOUSTON — International oil companies poised for a return to Iraq find themselves in an unfamiliar spot, preparing to assist rather than lord over drilling operations and taking risks that at first glance don’t appear worth the effort.
The bigger risk, however, might be failing to seize whatever opportunity presents itself in a country with the world’s third-largest oil reserves.
Iraq desperately needs oil revenue for reconstruction, and it wants to double its daily crude output within the next four to five years.
On Monday, the country’s Oil Ministry is set to auction off service contracts that in total may pay up to $16 billion over 20 years to the dozens of oil companies that have qualified to bid.
How will it work?
When international oil companies agree to work in a country, they’re typically awarded a portion of the oil that’s pulled from the ground. That’s how they produce profits and increase reserves, a vital asset. They don’t normally work for fees alone.
But in Iraq, the goal will be to get their foot in the door and eventually use their vast sums of capital and know-how to wrangle a greater stake in the developments — namely, a share of the production.
"Right now, they’ll take whatever is available,” said Fadel Gheit, an energy analyst at Oppenheimer & Co. "But this is not their business. Their business is to be in charge. They’re not spectators. They’re players.”
With an estimated 115 billion barrels of proven reserves — behind only Saudi Arabia and Iran — Iraq could provide a rare opportunity for international producers that are finding it harder and more expensive to gain access to new oil.
"The bigger picture is this could lead to other things,” said Brian Youngberg, an analyst at Edward Jones. "I’d think that’s what their plans are: to get more of a piece of the action down the road.”
The technical-service contracts that are likely to be sought by Exxon, Royal Dutch Shell PLC, Chevron Corp. and 30 other oil companies hardly seem worth the risk, at least for the largest producers.
There’s still no law governing oil revenue in Iraq. There’s also a serious rift between the semiautonomous Kurdish region, which has two of the six oil fields that are up for bid, and the central government in Baghdad.
Each has accused the other of setting up illegal contracts with overseas oil companies.
by the associated press
The bigger risk, however, might be failing to seize whatever opportunity presents itself in a country with the world’s third-largest oil reserves.
Iraq desperately needs oil revenue for reconstruction, and it wants to double its daily crude output within the next four to five years.
On Monday, the country’s Oil Ministry is set to auction off service contracts that in total may pay up to $16 billion over 20 years to the dozens of oil companies that have qualified to bid.
How will it work?
When international oil companies agree to work in a country, they’re typically awarded a portion of the oil that’s pulled from the ground. That’s how they produce profits and increase reserves, a vital asset. They don’t normally work for fees alone.
But in Iraq, the goal will be to get their foot in the door and eventually use their vast sums of capital and know-how to wrangle a greater stake in the developments — namely, a share of the production.
"Right now, they’ll take whatever is available,” said Fadel Gheit, an energy analyst at Oppenheimer & Co. "But this is not their business. Their business is to be in charge. They’re not spectators. They’re players.”
With an estimated 115 billion barrels of proven reserves — behind only Saudi Arabia and Iran — Iraq could provide a rare opportunity for international producers that are finding it harder and more expensive to gain access to new oil.
"The bigger picture is this could lead to other things,” said Brian Youngberg, an analyst at Edward Jones. "I’d think that’s what their plans are: to get more of a piece of the action down the road.”
The technical-service contracts that are likely to be sought by Exxon, Royal Dutch Shell PLC, Chevron Corp. and 30 other oil companies hardly seem worth the risk, at least for the largest producers.
There’s still no law governing oil revenue in Iraq. There’s also a serious rift between the semiautonomous Kurdish region, which has two of the six oil fields that are up for bid, and the central government in Baghdad.
Each has accused the other of setting up illegal contracts with overseas oil companies.
by the associated press
Friday, June 26, 2009
Obama says , Washington can’t miss opportunity
WASHINGTON — President Barack Obama pushed urgently Thursday for passage of legislation to confront global warming, billing it as a job-creating machine rather than the costly "job killer” Republicans denounced.
Obama said Washington must not miss the opportunity to work on cleaning the air, creating new "green” energy jobs and moving the nation away from its reliance on fossil fuels such as oil, coal and natural gas.
The bipartisan Congressional Budget Office said while households on average would spend $770 more a year on energy in 2020, their annual net cost is likely to be $175 because of energy efficiency or money flowing back in form of direct relief or indirect allowances to businesses and local governments. It said poor households would save $40 a year.
A separate analysis by the Environmental Protection Agency said consumer utility bills would be 7 percent lower by 2020 because less energy will be used as a result of efficiency and other provisions in the bill. It estimated the bill’s impact on household energy costs at between $80 and $111 a year.
Under the bill, at least 85 percent of the allowances would be given away, especially to energy intensive sectors of the economy.
by the associated press
Obama said Washington must not miss the opportunity to work on cleaning the air, creating new "green” energy jobs and moving the nation away from its reliance on fossil fuels such as oil, coal and natural gas.
The bipartisan Congressional Budget Office said while households on average would spend $770 more a year on energy in 2020, their annual net cost is likely to be $175 because of energy efficiency or money flowing back in form of direct relief or indirect allowances to businesses and local governments. It said poor households would save $40 a year.
A separate analysis by the Environmental Protection Agency said consumer utility bills would be 7 percent lower by 2020 because less energy will be used as a result of efficiency and other provisions in the bill. It estimated the bill’s impact on household energy costs at between $80 and $111 a year.
Under the bill, at least 85 percent of the allowances would be given away, especially to energy intensive sectors of the economy.
by the associated press
China likely to deny buyer’s bid to acquire Hummer
BEIJING — China’s planning agency is likely to reject a Chinese company’s bid to acquire General Motors Corp.’s Hummer unit on the grounds that its hulking SUVs conflict with Beijing’s energy-saving goals, state radio reported.
The National Development and Reform Commission also is likely to say the Chinese buyer, a maker of construction machinery, lacks the expertise to run Hummer, China National Radio said late Thursday. It cited no source for the information.
Foreign acquisitions in China require regulatory approval. The government has said environmental criteria have risen in importance in vetting potential industrial projects.
Sichuan Tengzhong Heavy Industrial Machinery Corp., a private company, emerged as the surprise prospective buyer of Hummer this month after GM sought court protection from its creditors. Both companies refused to say how much the Chinese company offered.
Hummer is one of the best-known brands that a Chinese company has tried to buy.
by the associated press
The National Development and Reform Commission also is likely to say the Chinese buyer, a maker of construction machinery, lacks the expertise to run Hummer, China National Radio said late Thursday. It cited no source for the information.
Foreign acquisitions in China require regulatory approval. The government has said environmental criteria have risen in importance in vetting potential industrial projects.
Sichuan Tengzhong Heavy Industrial Machinery Corp., a private company, emerged as the surprise prospective buyer of Hummer this month after GM sought court protection from its creditors. Both companies refused to say how much the Chinese company offered.
Hummer is one of the best-known brands that a Chinese company has tried to buy.
by the associated press
New York budget-price flights
DALLAS — LaGuardia Airport is the smallest of the three major airports in the New York area, with just two main runways. Planes often sit in long lines on the tarmac, waiting their turn to take off.
So why would Southwest Airlines, a carrier that boasts about its on-time prowess, want to go there? In many ways, it’s because it has to.
Southwest prospered by offering low fares to leisure travelers whose only other affordable option was a car trip. It flew primarily to America’s secondary airports where costs are low and productivity is high because incoming planes can land, drop off passengers, take on the next group and get back in the air quickly.
On Sunday, Southwest starts service at LaGuardia, one of the nation’s most congested airports. This should bring cheaper ticket prices to New York area vacationers flying to Chicago, Baltimore and beyond. But the move is also part of a risky transition that Southwest knows it has to make to win the loyalty of business travelers who increasingly will dictate its future prospects for success.
Southwest outlived early rivals by sticking to a core philosophy: Give people low fares and great service.
The Dallas-based carrier still sees itself as an underdog today, even as it serves 65 cities and carries more than 100 million U.S. passengers per year, more than any other airline.
There still are no first-class cabins and no assigned seats on Southwest, giving it the air of a carrier for penny-pinching vacationers.
"We’re very dependent on business travelers, so we’re not a leisure airline like some of our smaller competitors are,” CEO Gary C. Kelly countered in an interview. He said company surveys show that in normal times at least 40 percent of his customers are traveling on business.
Changing the model
Airlines covet business travelers because they make repeat trips and often pay higher fares for booking at the last minute.
Southwest needs that revenue now. The Dallas-based airline has been profitable for 36 straight years but has been in the red since last fall. Traffic is down and costs are rising.
While it’s cutting flights across its system, Southwest also is entering New York and three other big cities, including Boston’s Logan Airport.
Robert Crandall, who competed against Southwest when he ran American Airlines in the 1980s and ’90s, said Southwest has stuck to a well-defined business model of low fares and low costs at secondary airports.
"Going into LaGuardia is a change to that model,” Crandall said, "but they’ve decided they don’t have any choice — they need the (passenger) volume to grow.”
by the associated press
So why would Southwest Airlines, a carrier that boasts about its on-time prowess, want to go there? In many ways, it’s because it has to.
Southwest prospered by offering low fares to leisure travelers whose only other affordable option was a car trip. It flew primarily to America’s secondary airports where costs are low and productivity is high because incoming planes can land, drop off passengers, take on the next group and get back in the air quickly.
On Sunday, Southwest starts service at LaGuardia, one of the nation’s most congested airports. This should bring cheaper ticket prices to New York area vacationers flying to Chicago, Baltimore and beyond. But the move is also part of a risky transition that Southwest knows it has to make to win the loyalty of business travelers who increasingly will dictate its future prospects for success.
Southwest outlived early rivals by sticking to a core philosophy: Give people low fares and great service.
The Dallas-based carrier still sees itself as an underdog today, even as it serves 65 cities and carries more than 100 million U.S. passengers per year, more than any other airline.
There still are no first-class cabins and no assigned seats on Southwest, giving it the air of a carrier for penny-pinching vacationers.
"We’re very dependent on business travelers, so we’re not a leisure airline like some of our smaller competitors are,” CEO Gary C. Kelly countered in an interview. He said company surveys show that in normal times at least 40 percent of his customers are traveling on business.
Changing the model
Airlines covet business travelers because they make repeat trips and often pay higher fares for booking at the last minute.
Southwest needs that revenue now. The Dallas-based airline has been profitable for 36 straight years but has been in the red since last fall. Traffic is down and costs are rising.
While it’s cutting flights across its system, Southwest also is entering New York and three other big cities, including Boston’s Logan Airport.
Robert Crandall, who competed against Southwest when he ran American Airlines in the 1980s and ’90s, said Southwest has stuck to a well-defined business model of low fares and low costs at secondary airports.
"Going into LaGuardia is a change to that model,” Crandall said, "but they’ve decided they don’t have any choice — they need the (passenger) volume to grow.”
by the associated press
The value of the dollar
NEW YORK — Oil prices jumped above $70 a barrel Thursday after the government said that the economy may be faring better than previously thought.
Benchmark crude for August delivery added $1.56 to settle at $70.23 a barrel on the New York Mercantile Exchange. In London, Brent prices increased $1.45 to settle at $69.78 a barrel on the ICE Futures exchange.
The value of the dollar again is playing a strong role in the price of crude.
Crude prices have fallen off after peaking above $73 a barrel earlier this month as the dollar strengthened.
Most experts agree prices on Nymex, and at the local gas station, hit levels that weren’t supported by meager demand for energy.
They blame investment money that has flowed into the market, using oil as a hedge against inflation.
Retail gasoline prices fell for the first time in nearly two months Monday, and have fallen every day since. The national average lost another 0.9 cents to $2.667 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.
A gallon of gas is 24.2 cents more expensive last month, but it’s still cheaper than last year when prices topped $4 a gallon.
Stores of natural gas, a key energy source for power plants, also continued to build as manufacturers slowed production and major employers trimmed operations.
The government reported Thursday that natural gas supplies rose again last week, though less than analysts expected.
In other Nymex trading, gasoline for July delivery rose 5.58 cents to settle at $1.8983 a gallon and heating oil gained 3.82 cents to settle at $1.7763 a gallon. Natural gas for July delivery advanced 8.3 cents to settle at $3.844 per 1,000 cubic feet.
by the associated press
Benchmark crude for August delivery added $1.56 to settle at $70.23 a barrel on the New York Mercantile Exchange. In London, Brent prices increased $1.45 to settle at $69.78 a barrel on the ICE Futures exchange.
The value of the dollar again is playing a strong role in the price of crude.
Crude prices have fallen off after peaking above $73 a barrel earlier this month as the dollar strengthened.
Most experts agree prices on Nymex, and at the local gas station, hit levels that weren’t supported by meager demand for energy.
They blame investment money that has flowed into the market, using oil as a hedge against inflation.
Retail gasoline prices fell for the first time in nearly two months Monday, and have fallen every day since. The national average lost another 0.9 cents to $2.667 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.
A gallon of gas is 24.2 cents more expensive last month, but it’s still cheaper than last year when prices topped $4 a gallon.
Stores of natural gas, a key energy source for power plants, also continued to build as manufacturers slowed production and major employers trimmed operations.
The government reported Thursday that natural gas supplies rose again last week, though less than analysts expected.
In other Nymex trading, gasoline for July delivery rose 5.58 cents to settle at $1.8983 a gallon and heating oil gained 3.82 cents to settle at $1.7763 a gallon. Natural gas for July delivery advanced 8.3 cents to settle at $3.844 per 1,000 cubic feet.
by the associated press
Pressuring bank buyout
WASHINGTON — Federal Reserve Chairman Ben Bernanke told Congress Thursday he didn’t pressure Bank of America into acquiring Merrill Lynch in a deal that ultimately cost taxpayers $20 billion.
Bernanke told a House committee investigating the matter that he did not threaten action against Bank of America’s CEO Kenneth Lewis or the bank’s board members if they decided to abandon the takeover.
"I did not tell Bank of America’s management that the Federal Reserve would take action against the board or management” if they decided to invoke a clause in the acquisition contract in an attempt to stop the deal, Bernanke told the House Oversight and Government Reform Committee. "Moreover, I did not instruct anyone to indicate to Bank of America that the Federal Reserve would take any particular action under those circumstances.”
Earlier this month, Lewis testified that his job was threatened after he expressed second thoughts about the deal. Lewis said then-Treasury Secretary Henry Paulson and federal regulators made clear that if Charlotte, N.C.-based Bank of America Corp. reneged on its promise, that he and the bank’s board members would be ousted.
Bernanke said no member of the Fed ever urged Bank of America to keep quiet about Merrill Lynch’s financial problems. Not divulging that information would have violated Lewis’ fiduciary duty to shareholders.
"Neither I nor any member of the Federal Reserve ever directed, instructed or advised Bank of America to withhold from public disclosure any information relating to Merrill Lynch, including its losses, compensation packages or bonuses or any other related matter,” the Fed chief said.
It marked Bernanke’s first public comments since the House committee launched an investigation earlier this year into whether he or other government officials bullied Bank of America to combine the two financial powers after Lewis found out about Merrill’s financial woes.
The committee’s ranking member Darrell Issa, R-Calif., accused the Fed of having "deliberately kept other regulators in the dark regarding the negotiations with Bank of America. The Federal Reserve’s cover-up of important information and willingness to exclude key regulatory partners” such as the Securities and Exchange Commission and the Office of the Comptroller of the Currency "raises troubling questions,” he said.
Rep. Jason Chaffetz, R-Utah, said of Bernanke’s denial that he threatened Lewis’ job: "With all due respect, I’m just not buying that.”
by the associated press
Bernanke told a House committee investigating the matter that he did not threaten action against Bank of America’s CEO Kenneth Lewis or the bank’s board members if they decided to abandon the takeover.
"I did not tell Bank of America’s management that the Federal Reserve would take action against the board or management” if they decided to invoke a clause in the acquisition contract in an attempt to stop the deal, Bernanke told the House Oversight and Government Reform Committee. "Moreover, I did not instruct anyone to indicate to Bank of America that the Federal Reserve would take any particular action under those circumstances.”
Earlier this month, Lewis testified that his job was threatened after he expressed second thoughts about the deal. Lewis said then-Treasury Secretary Henry Paulson and federal regulators made clear that if Charlotte, N.C.-based Bank of America Corp. reneged on its promise, that he and the bank’s board members would be ousted.
Bernanke said no member of the Fed ever urged Bank of America to keep quiet about Merrill Lynch’s financial problems. Not divulging that information would have violated Lewis’ fiduciary duty to shareholders.
"Neither I nor any member of the Federal Reserve ever directed, instructed or advised Bank of America to withhold from public disclosure any information relating to Merrill Lynch, including its losses, compensation packages or bonuses or any other related matter,” the Fed chief said.
It marked Bernanke’s first public comments since the House committee launched an investigation earlier this year into whether he or other government officials bullied Bank of America to combine the two financial powers after Lewis found out about Merrill’s financial woes.
The committee’s ranking member Darrell Issa, R-Calif., accused the Fed of having "deliberately kept other regulators in the dark regarding the negotiations with Bank of America. The Federal Reserve’s cover-up of important information and willingness to exclude key regulatory partners” such as the Securities and Exchange Commission and the Office of the Comptroller of the Currency "raises troubling questions,” he said.
Rep. Jason Chaffetz, R-Utah, said of Bernanke’s denial that he threatened Lewis’ job: "With all due respect, I’m just not buying that.”
by the associated press
Texas billionaire R. Allen Stanford pleaded not guilty
HOUSTON — Texas billionaire R. Allen Stanford pleaded not guilty Thursday to charges he swindled investors out of $7 billion as part of a massive investment scam.
Stanford entered his plea during his arraignment in federal court. The financier was indicted on charges that his international banking empire was really just a Ponzi scheme.
Laura Pendergest-Holt, Gilberto Lopez and Mark Kuhrt, three executives with the now defunct Houston-based Stanford Financial Group who were indicted along with their former boss, also entered not guilty pleas.
At a bond hearing shortly after the executives’ arraignment, prosecutors argued Stanford should be held without bond as he awaits trial on fraud charges because he might have access to billions of dollars in secret funds.
Prosecutor Paul Pelletier said investigators found a secret Swiss account Stanford controlled that was drained of more than $100 million in December 2008.
Jeffrey Ferguson, a forensic examiner hired to review the records of Stanford Financial Group and its affiliated bank on the Caribbean island of Antigua, testified nearly $1.2 billion of the $7 billion Stanford and his co-defendants are accused of bilking from investors can’t be accounted for.
In court documents filed Thursday, prosecutors also said Stanford faces a potential life sentence, has access to a private jet and has an international network of wealthy acquaintances who would help him, including one who recently agreed to give him $36,000 to pay his lease on a Houston apartment for a year.
Dick DeGuerin, Stanford’s attorney, argued in court documents that Stanford is not a flight risk and highlighted his charity efforts, including his work with a foundation for single mothers in Antigua as examples of his strong character.
by the associated press
Stanford entered his plea during his arraignment in federal court. The financier was indicted on charges that his international banking empire was really just a Ponzi scheme.
Laura Pendergest-Holt, Gilberto Lopez and Mark Kuhrt, three executives with the now defunct Houston-based Stanford Financial Group who were indicted along with their former boss, also entered not guilty pleas.
At a bond hearing shortly after the executives’ arraignment, prosecutors argued Stanford should be held without bond as he awaits trial on fraud charges because he might have access to billions of dollars in secret funds.
Prosecutor Paul Pelletier said investigators found a secret Swiss account Stanford controlled that was drained of more than $100 million in December 2008.
Jeffrey Ferguson, a forensic examiner hired to review the records of Stanford Financial Group and its affiliated bank on the Caribbean island of Antigua, testified nearly $1.2 billion of the $7 billion Stanford and his co-defendants are accused of bilking from investors can’t be accounted for.
In court documents filed Thursday, prosecutors also said Stanford faces a potential life sentence, has access to a private jet and has an international network of wealthy acquaintances who would help him, including one who recently agreed to give him $36,000 to pay his lease on a Houston apartment for a year.
Dick DeGuerin, Stanford’s attorney, argued in court documents that Stanford is not a flight risk and highlighted his charity efforts, including his work with a foundation for single mothers in Antigua as examples of his strong character.
by the associated press
Big oil prepares comeback in Iraq
BAGHDAD — More than three decades after they were booted from the country by Saddam Hussein, international oil companies are poised for a return to Iraq, where next week they will bid for a slice of the country’s vast crude reserves.
Iraq needs the expertise of internationals that can develop its dilapidated oil and gas industry. The country lacks the oil revenues needed for reconstruction after a U.S.-led war.
Yet a constitutional fight pitting Oil Minister Hussain al-Shahristani against the parliament and the semiautonomous Kurdish government threatens to undercut the bidding process.
Discord over the two days of bidding scheduled to begin Monday lies in a struggle between Iraq’s various religious and ethnic factions over control of one of the world’s largest proved reserves of oil — an estimated 115 billion barrels. And the debate in Baghdad is tinged with a troubled past that includes some of same international companies now back at the table.
Exxon Mobil, Royal Dutch Shell, Repsol, the China National Petroleum & Chemical Corp. and Russia’s Lukoil and other approved companies, have been asked to put up a total of $2.6 billion for what the ministry calls "soft loans.”
In return, they will have the right to develop Iraq’s main oil fields, which could net the companies a total of $16 billion. The companies also must shoulder the costs of creating a national oil and gas joint-venture.
In return, Iraq has offered limited access, through the service contracts, to its oil fields that hold 43 billion barrels of reserves. But the contracts provide little in the way of security, physically or contractually, to big oil companies.
by the associated press
Iraq needs the expertise of internationals that can develop its dilapidated oil and gas industry. The country lacks the oil revenues needed for reconstruction after a U.S.-led war.
Yet a constitutional fight pitting Oil Minister Hussain al-Shahristani against the parliament and the semiautonomous Kurdish government threatens to undercut the bidding process.
Discord over the two days of bidding scheduled to begin Monday lies in a struggle between Iraq’s various religious and ethnic factions over control of one of the world’s largest proved reserves of oil — an estimated 115 billion barrels. And the debate in Baghdad is tinged with a troubled past that includes some of same international companies now back at the table.
Exxon Mobil, Royal Dutch Shell, Repsol, the China National Petroleum & Chemical Corp. and Russia’s Lukoil and other approved companies, have been asked to put up a total of $2.6 billion for what the ministry calls "soft loans.”
In return, they will have the right to develop Iraq’s main oil fields, which could net the companies a total of $16 billion. The companies also must shoulder the costs of creating a national oil and gas joint-venture.
In return, Iraq has offered limited access, through the service contracts, to its oil fields that hold 43 billion barrels of reserves. But the contracts provide little in the way of security, physically or contractually, to big oil companies.
by the associated press
Economy sees progress
WASHINGTON — Despite persistent layoffs, the economy seems to be faring better than it was at the start of the year.
The Labor Department said Thursday that new jobless claims jumped unexpectedly last week. And the number of people continuing to receive unemployment aid rose more than expected.
The figures indicate that jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.
A revised reading on gross domestic product said the economy posted a 5.5 percent annualized decline from January through March. That was slightly better than the 5.7 percent estimate made a month ago. Economists generally think the economy is shrinking at a slower pace — about 2 percent — in the current quarter.
The main forces behind the small upgrade in the first quarter: Businesses didn’t cut stockpiles of goods as much, and imports dropped more than previously estimated.
Initial claims for jobless benefits rose last week by 15,000 to a seasonally adjusted 627,000. Economists had expected a drop to 600,000.
Most economists still expect initial unemployment insurance claims to decline slowly in coming months as the recession bottoms out.
by the associated press
The Labor Department said Thursday that new jobless claims jumped unexpectedly last week. And the number of people continuing to receive unemployment aid rose more than expected.
The figures indicate that jobs remain scarce even as the economy shows some signs of recovering from the longest recession since World War II.
A revised reading on gross domestic product said the economy posted a 5.5 percent annualized decline from January through March. That was slightly better than the 5.7 percent estimate made a month ago. Economists generally think the economy is shrinking at a slower pace — about 2 percent — in the current quarter.
The main forces behind the small upgrade in the first quarter: Businesses didn’t cut stockpiles of goods as much, and imports dropped more than previously estimated.
Initial claims for jobless benefits rose last week by 15,000 to a seasonally adjusted 627,000. Economists had expected a drop to 600,000.
Most economists still expect initial unemployment insurance claims to decline slowly in coming months as the recession bottoms out.
by the associated press
Sunday, June 21, 2009
New Mexico spaceport launch
UPHAM, N.M. (AP) — A multimillion-dollar spaceport is moving toward construction in the New Mexico desert, a big step for commercial space development and tourists who will suit up for $200,000 suborbital flights.
Gov. Bill Richardson and other dignitaries staged a ceremonial groundbreaking Friday at the remote site of Spaceport America in Sierra County.
"Today will be a signal that America needs to regain its leadership in space, both in national space and commercial space," said Gov. Bill Richardson. "Today is historic because New Mexico leads the nation in commercial space."
From a 10,000-foot runway, spacecraft will take flight attached to an airplane, then break free and rocket 62 miles into space before returning to the New Mexico site. Flights will last about two hours and include five minutes of weightlessness.
George Nield, a Federal Aviation Administration official who oversees commercial space transportation, said seven spaceport licenses have been issued in the U.S.
California has two licenses while New Mexico, Florida, Virginia, Alaska and Oklahoma each have one.
Richardson said the New Mexico site — about 45 miles north of Las Cruces — is ahead, largely because of a partnership with Virgin Galactic, a British company that plans to take the tourists into space.
Virgin Galactic officials said Friday that 300 customers have made down payments to get launched into space. The company aims to begin taking tourists into space by December 2010.
New Mexico is making a $200 million investment in the project. Virgin Galactic, owned by British billionaire Sir Richard Branson, is investing $250 million and will be the spaceport's anchor tenant.
Lina Borozdina-Birch, who attended Friday's ceremony, is a 40-year-old chemist from San Diego and among the first to sign up for a flight.
"I'm so excited. Until this point in my life, it's been like a science fiction novel," she said of the prospect of going to space.
Her dream began as she was growing up in the Soviet Union at the time when the country was locked in a space race with the United States. Borozdina-Birch said she mortgaged her home to afford the $200,000 ticket.
The spaceport will operate like an airport where aerospace companies can lease building and hangar space, said Virgin Galactic president Will Whitehorn.
The company's system also will accommodate satellite launches, he said, and scientists can take off from the site to follow experiments they launch into space.
During the ceremony, about a dozen people dressed as Spanish conquistadors walked across the open plain, where construction of the runway is scheduled to begin next month.
They carried Spanish colonial flags, spears and muskets, evoking images of colonists who came through the area on the Camino Real in the 17th century.
One of the actors presented Richardson with a scroll, symbolizing the connection between the explorers of the past and those of the future.
The ceremony also featured the liftoff of model rockets by students attending a space camp.
The runway is slated for completion next summer. The terminal and hangar should be ready for tenants in December 2010.
by the associated press
Gov. Bill Richardson and other dignitaries staged a ceremonial groundbreaking Friday at the remote site of Spaceport America in Sierra County.
"Today will be a signal that America needs to regain its leadership in space, both in national space and commercial space," said Gov. Bill Richardson. "Today is historic because New Mexico leads the nation in commercial space."
From a 10,000-foot runway, spacecraft will take flight attached to an airplane, then break free and rocket 62 miles into space before returning to the New Mexico site. Flights will last about two hours and include five minutes of weightlessness.
George Nield, a Federal Aviation Administration official who oversees commercial space transportation, said seven spaceport licenses have been issued in the U.S.
California has two licenses while New Mexico, Florida, Virginia, Alaska and Oklahoma each have one.
Richardson said the New Mexico site — about 45 miles north of Las Cruces — is ahead, largely because of a partnership with Virgin Galactic, a British company that plans to take the tourists into space.
Virgin Galactic officials said Friday that 300 customers have made down payments to get launched into space. The company aims to begin taking tourists into space by December 2010.
New Mexico is making a $200 million investment in the project. Virgin Galactic, owned by British billionaire Sir Richard Branson, is investing $250 million and will be the spaceport's anchor tenant.
Lina Borozdina-Birch, who attended Friday's ceremony, is a 40-year-old chemist from San Diego and among the first to sign up for a flight.
"I'm so excited. Until this point in my life, it's been like a science fiction novel," she said of the prospect of going to space.
Her dream began as she was growing up in the Soviet Union at the time when the country was locked in a space race with the United States. Borozdina-Birch said she mortgaged her home to afford the $200,000 ticket.
The spaceport will operate like an airport where aerospace companies can lease building and hangar space, said Virgin Galactic president Will Whitehorn.
The company's system also will accommodate satellite launches, he said, and scientists can take off from the site to follow experiments they launch into space.
During the ceremony, about a dozen people dressed as Spanish conquistadors walked across the open plain, where construction of the runway is scheduled to begin next month.
They carried Spanish colonial flags, spears and muskets, evoking images of colonists who came through the area on the Camino Real in the 17th century.
One of the actors presented Richardson with a scroll, symbolizing the connection between the explorers of the past and those of the future.
The ceremony also featured the liftoff of model rockets by students attending a space camp.
The runway is slated for completion next summer. The terminal and hangar should be ready for tenants in December 2010.
by the associated press
FCC exclusive cell phone deals
NEW YORK (AP) — Regulators will investigate whether exclusive cell phone deals, such as the one that locks the iPhone to AT&T, are good for consumers.
The acting chairman of the Federal Communications Commission, Michael Copps, has instructed the commission's staff to review exclusivity arrangements.
"In the fast-changing wireless handset market ... we must ensure that consumers are able to reap the benefits that a robust and innovative competitive marketplace can bestow," Copps said Thursday at an industry conference in Washington.
Carriers generally negotiate exclusive deals that last six months to a year, after which other carriers can also sell the phone model to their customers. By launching with only one carrier, the manufacturer gets a higher price or extra promotional spending on the phone.
Apple Inc.'s iPhone is a much-noted exception. Dallas-based AT&T Inc. has been the sole U.S. carrier since Cupertino, Calif.-based Apple launched the first model two years ago, frustrating consumers who want to use it on another carrier.
Handset exclusivity was one of the subjects of a Senate Committee on Commerce, Science and Transportation hearing this week.
Barbara Esbin, senior fellow at the Progress & Freedom Foundation, a think tank that generally opposes government intervention, told the committee that exclusive arrangements help manufacturers bring new devices to market quickly and gives the carriers incentives to promote and subsidize them.
Competing U.S. carriers have found touch-screen phones from other manufacturers to compete with the iPhone, but none has come close to equaling that phone's cachet. The third model, the 3G S, went on sale Friday.
Verizon Wireless offered a few months ago to shorten its exclusive periods for new cell phones from LG and Samsung to six months, from as long as a year, to give small rural carriers a better chance to sell up-to-date phones.
The rural carriers rejected the offer as insufficient.
by the associated press
The acting chairman of the Federal Communications Commission, Michael Copps, has instructed the commission's staff to review exclusivity arrangements.
"In the fast-changing wireless handset market ... we must ensure that consumers are able to reap the benefits that a robust and innovative competitive marketplace can bestow," Copps said Thursday at an industry conference in Washington.
Carriers generally negotiate exclusive deals that last six months to a year, after which other carriers can also sell the phone model to their customers. By launching with only one carrier, the manufacturer gets a higher price or extra promotional spending on the phone.
Apple Inc.'s iPhone is a much-noted exception. Dallas-based AT&T Inc. has been the sole U.S. carrier since Cupertino, Calif.-based Apple launched the first model two years ago, frustrating consumers who want to use it on another carrier.
Handset exclusivity was one of the subjects of a Senate Committee on Commerce, Science and Transportation hearing this week.
Barbara Esbin, senior fellow at the Progress & Freedom Foundation, a think tank that generally opposes government intervention, told the committee that exclusive arrangements help manufacturers bring new devices to market quickly and gives the carriers incentives to promote and subsidize them.
Competing U.S. carriers have found touch-screen phones from other manufacturers to compete with the iPhone, but none has come close to equaling that phone's cachet. The third model, the 3G S, went on sale Friday.
Verizon Wireless offered a few months ago to shorten its exclusive periods for new cell phones from LG and Samsung to six months, from as long as a year, to give small rural carriers a better chance to sell up-to-date phones.
The rural carriers rejected the offer as insufficient.
by the associated press
New iPhone goes on sale
NEW YORK (AP) — The new iPhone went on sale Friday morning, greeted by much smaller lines and less hoopla than previous models.
A few hundred people were in line just before the 7 a.m. opening of Apple Inc.'s flagship store on Manhattan's Fifth Avenue, a fraction of the people who lined up around the block for last year's launch.
That launch turned into a debacle as Apple's servers failed to cope with the load of new customers trying to activate their phones. People who already had iPhones were trying to install a software update on the same day, adding to the pressure.
This year, Apple and AT&T Inc., the phone's U.S. carrier, defused the drama by taking pre-orders for the new phone online. That means fewer prospective buyers had a reason to stand in line, in theory speeding up the activation process.
Apple also released its software update for previous customers two days early. There were only scattered reports of problems with that upgrade.
While activation seems to have proceeded more smoothly this year, posts on blogs, Twitter and Apple's own support forums indicated it may take as long as two days for some iPhones to be operational.
The devices must be plugged into a computer and activated before users can call, send text messages or surf the Web using their cellular data plan. Apple and AT&T servers are both involved in the activation process.
Some people reported receiving a message warning activation will take up to 48 hours due to high volume.
Apple spokesman Steve Dowling declined to provide details on the situation. AT&T spokesman Mark Siegel declined to comment.
The new model is called the 3G S. AT&T said it had taken pre-orders for "hundreds of thousands" of the phones. Apple sold one million units of the older model, the 3G, in the first three days last year.
For new customers signing a two-year contract with AT&T, the 3G S costs $199 or $299 depending on the memory capacity. Compared to the 3G, it has a faster processor and an upgraded camera.
Owners of the previous model, the iPhone 3G, will have to pay more than that. Most of them are not eligible for the new-customer pricing because AT&T subsidizes the cost of the phone and requires customers to "pay off" the subsidy through their monthly service fees before it will subsidize a new phone.
In line at the Fifth Avenue store, Brandon Dennie, 27, was not put off by the prospect of having to pay the unsubsidized price of $599 for the new phone. He's had a 3G for only six months, so he didn't qualify for the lowest price.
He's creating his own subsidy by selling his old phone for $200 to a colleague, and he has an Apple gift card.
"I want the video option and the speed," Dennie said.
In its two-year life, the iPhone range has revolutionized phone design and given AT&T a leg up on its rivals in recruiting customers willing to pay high monthly fees.
Competitors have started to catch up to some of the iPhone's signature features, like a user interface that's designed from the ground up to be navigated with finger touches. In particular, Palm Inc.'s Pre, which came out two weeks ago, has generated a lot of buzz and favorable reviews.
But the iPhone is still the king of smart phones. Pacific Crest analyst James Faucette estimated that exclusive carrier Sprint Nextel Corp. sold 90,000 to 100,000 Pres in the first week of sale, far lower than expected sales of the 3G S.
To grab even more market share, Apple is now selling the older 3G for a lower price: $99 with a two-year contract.
At an AT&T store in the New York borough of Queens, there were three people in line at 5:45 a.m. Sarah Gates and Ed Phyfe, the couple who were first in line, didn't know about the pre-order option until it was too late, and wanted to be sure to get phones from the small stock set aside for walk-ins.
"We got Sprint smart phones since just before the first iPhone came out, and we immediately regretted it," said Gates, 33. She has nothing against Sprint Nextel Corp., but the Motorola Q phones were awful, she said.
"I feel kind of bad to leave Sprint ... but I don't like any of the phones they have half as much the iPhone," she said.
Apart from the U.S., the phone went on sale Friday in Canada, France, Germany, Italy, Spain, Switzerland and the U.K. Other countries will get it throughout the summer.
by the associated press
A few hundred people were in line just before the 7 a.m. opening of Apple Inc.'s flagship store on Manhattan's Fifth Avenue, a fraction of the people who lined up around the block for last year's launch.
That launch turned into a debacle as Apple's servers failed to cope with the load of new customers trying to activate their phones. People who already had iPhones were trying to install a software update on the same day, adding to the pressure.
This year, Apple and AT&T Inc., the phone's U.S. carrier, defused the drama by taking pre-orders for the new phone online. That means fewer prospective buyers had a reason to stand in line, in theory speeding up the activation process.
Apple also released its software update for previous customers two days early. There were only scattered reports of problems with that upgrade.
While activation seems to have proceeded more smoothly this year, posts on blogs, Twitter and Apple's own support forums indicated it may take as long as two days for some iPhones to be operational.
The devices must be plugged into a computer and activated before users can call, send text messages or surf the Web using their cellular data plan. Apple and AT&T servers are both involved in the activation process.
Some people reported receiving a message warning activation will take up to 48 hours due to high volume.
Apple spokesman Steve Dowling declined to provide details on the situation. AT&T spokesman Mark Siegel declined to comment.
The new model is called the 3G S. AT&T said it had taken pre-orders for "hundreds of thousands" of the phones. Apple sold one million units of the older model, the 3G, in the first three days last year.
For new customers signing a two-year contract with AT&T, the 3G S costs $199 or $299 depending on the memory capacity. Compared to the 3G, it has a faster processor and an upgraded camera.
Owners of the previous model, the iPhone 3G, will have to pay more than that. Most of them are not eligible for the new-customer pricing because AT&T subsidizes the cost of the phone and requires customers to "pay off" the subsidy through their monthly service fees before it will subsidize a new phone.
In line at the Fifth Avenue store, Brandon Dennie, 27, was not put off by the prospect of having to pay the unsubsidized price of $599 for the new phone. He's had a 3G for only six months, so he didn't qualify for the lowest price.
He's creating his own subsidy by selling his old phone for $200 to a colleague, and he has an Apple gift card.
"I want the video option and the speed," Dennie said.
In its two-year life, the iPhone range has revolutionized phone design and given AT&T a leg up on its rivals in recruiting customers willing to pay high monthly fees.
Competitors have started to catch up to some of the iPhone's signature features, like a user interface that's designed from the ground up to be navigated with finger touches. In particular, Palm Inc.'s Pre, which came out two weeks ago, has generated a lot of buzz and favorable reviews.
But the iPhone is still the king of smart phones. Pacific Crest analyst James Faucette estimated that exclusive carrier Sprint Nextel Corp. sold 90,000 to 100,000 Pres in the first week of sale, far lower than expected sales of the 3G S.
To grab even more market share, Apple is now selling the older 3G for a lower price: $99 with a two-year contract.
At an AT&T store in the New York borough of Queens, there were three people in line at 5:45 a.m. Sarah Gates and Ed Phyfe, the couple who were first in line, didn't know about the pre-order option until it was too late, and wanted to be sure to get phones from the small stock set aside for walk-ins.
"We got Sprint smart phones since just before the first iPhone came out, and we immediately regretted it," said Gates, 33. She has nothing against Sprint Nextel Corp., but the Motorola Q phones were awful, she said.
"I feel kind of bad to leave Sprint ... but I don't like any of the phones they have half as much the iPhone," she said.
Apart from the U.S., the phone went on sale Friday in Canada, France, Germany, Italy, Spain, Switzerland and the U.K. Other countries will get it throughout the summer.
by the associated press
Yahoo $34M for layoffs
SUNNYVALE, Calif. (AP) — Yahoo Inc. says laying off nearly 700 workers will cost between $30 million and $34 million in severance pay and other related expenses.
The layoffs, which affect about 5 percent of Yahoo's workers worldwide, were announced in April.
They were the first significant cuts since new CEO, Carol Bartz, joined Yahoo in January, but mark the Sunnyvale-based company's third round of reductions in the past 16 months.
Yahoo says it will also gain between $7 million and $8 million related to forfeited stock and options. In all, the company says it expects to write down $22 million to $27 million in the current second quarter.
Yahoo disclosed the charges in a Securities and Exchange Commission filing Friday.
by the associated press
The layoffs, which affect about 5 percent of Yahoo's workers worldwide, were announced in April.
They were the first significant cuts since new CEO, Carol Bartz, joined Yahoo in January, but mark the Sunnyvale-based company's third round of reductions in the past 16 months.
Yahoo says it will also gain between $7 million and $8 million related to forfeited stock and options. In all, the company says it expects to write down $22 million to $27 million in the current second quarter.
Yahoo disclosed the charges in a Securities and Exchange Commission filing Friday.
by the associated press
GM asset sale
NEW YORK (AP) — A group of General Motors Corp. bondholders and some of the automaker's labor unions filed objections Friday to GM's plan to sell its assets to a new company that can emerge from bankruptcy protection.
Their opposition, along with additional objections filed by consumer groups, a handful of states and cities, and individual retirees, shareholders and bondholders, threatens to put the brakes on what has so far been a speedy trip through the Chapter 11 process.
The Unofficial Committee of Family & Dissident GM Bondholders claim they are being treated unfairly compared with the automaker's other stakeholders and deserve more than the 10 percent stake in the new company that they would receive if the sale goes through.
In its motion, the bondholders group accused GM and the U.S. government of unjustly speeding the case through the bankruptcy process at the expense of the bondholders and dividing the new company's assets "among a few select favored classes."
"GM's bondholders appear to be the most disfavored and discriminated class in the scheme," the group wrote, pointing to the larger 17.5 percent stake the United Auto Workers union is slated to get under the sale.
The group claims to represent about 1,500 bondholders with holdings worth more than $400 million. It's also asking the court to grant it permission to form a formal committee that would be able to negotiate with GM separately from larger bank and investment firm bondholders. A hearing on that request is scheduled for Tuesday.
GM spokeswoman Renee Rashid-Merem declined to comment on the group's objection, saying that the company doesn't discuss specific claims or possible outcomes that will be determined by the bankruptcy court.
As part of GM's restructuring plan, the automaker wants to sell the bulk of its assets to a new company in which the U.S. government will take a 60 percent ownership stake. The Canadian government would get 12.5 percent of the new GM, with the UAW taking a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.
The support of bondholders is seen as a key step toward moving the bankruptcy process along quickly and allowing GM to meet its goal of emerging from court oversight in 60 to 90 days.
The day before GM's June 1 bankruptcy protection filing, a group of ad hoc institutional bondholders said that 54 percent of the automaker's bondholders had agreed to exchange their shares of automaker's $27 billion in unsecured bonds for the 10 percent stake and warrants to purchase a greater stake in the new company later.
Chrysler LLC also tried to hammer out a deal in the days leading to its April 30 Chapter 11 filing, but it faced heavy resistance from debtholders representing a fraction of its $6.9 billion in secured debt.
That group objected to Chrysler's plan to sell the bulk of its assets to Italy's Fiat Group SpA, and took the case all the way to the U.S. Supreme Court before the sale ultimately went through. Attorneys for consumer groups and people with product liability lawsuits against Chrysler also appealed the sale to the high court.
Several of the same consumer groups are also objecting to the GM sale, because like in the case of Chrysler, the new company would not be responsible for product liability claims related to vehicles produced and sold by the old company.
Consumers would be left to file claims against the assets remaining after the sale, and it is unlikely that there will be anything left to pay those claims.
Meanwhile, the IUE-CWA, United Steelworkers and International Union of Operating Engineers claimed Friday that the GM sale will ultimately take away the health care benefits of their 50,000 retirees.
Before it filed for bankruptcy protection, GM reached a deal to give the UAW a stake in the new company to help fund retiree heath care benefits, but no such agreement has been reached with the other unions.
"If GM succeeds in leaving behind these union-represented retirees and dependents, they will be left with only an unsecured claim against old GM for more than $3 billion in retiree health care and hundreds of millions more for retirement life insurance," the unions said in their objection.
Rashid-Merem said discussions related to the non-UAW health care benefits are ongoing, and the company hopes to reach final decisions about their future soon.
A hearing on the sale of GM's assets to the new government-led entity is scheduled for June 30. The deadline to file objections with the court was 5 p.m. Friday.
by the associated press
Their opposition, along with additional objections filed by consumer groups, a handful of states and cities, and individual retirees, shareholders and bondholders, threatens to put the brakes on what has so far been a speedy trip through the Chapter 11 process.
The Unofficial Committee of Family & Dissident GM Bondholders claim they are being treated unfairly compared with the automaker's other stakeholders and deserve more than the 10 percent stake in the new company that they would receive if the sale goes through.
In its motion, the bondholders group accused GM and the U.S. government of unjustly speeding the case through the bankruptcy process at the expense of the bondholders and dividing the new company's assets "among a few select favored classes."
"GM's bondholders appear to be the most disfavored and discriminated class in the scheme," the group wrote, pointing to the larger 17.5 percent stake the United Auto Workers union is slated to get under the sale.
The group claims to represent about 1,500 bondholders with holdings worth more than $400 million. It's also asking the court to grant it permission to form a formal committee that would be able to negotiate with GM separately from larger bank and investment firm bondholders. A hearing on that request is scheduled for Tuesday.
GM spokeswoman Renee Rashid-Merem declined to comment on the group's objection, saying that the company doesn't discuss specific claims or possible outcomes that will be determined by the bankruptcy court.
As part of GM's restructuring plan, the automaker wants to sell the bulk of its assets to a new company in which the U.S. government will take a 60 percent ownership stake. The Canadian government would get 12.5 percent of the new GM, with the UAW taking a 17.5 percent share and unsecured bondholders receiving 10 percent. Existing GM shareholders are expected to be wiped out.
The support of bondholders is seen as a key step toward moving the bankruptcy process along quickly and allowing GM to meet its goal of emerging from court oversight in 60 to 90 days.
The day before GM's June 1 bankruptcy protection filing, a group of ad hoc institutional bondholders said that 54 percent of the automaker's bondholders had agreed to exchange their shares of automaker's $27 billion in unsecured bonds for the 10 percent stake and warrants to purchase a greater stake in the new company later.
Chrysler LLC also tried to hammer out a deal in the days leading to its April 30 Chapter 11 filing, but it faced heavy resistance from debtholders representing a fraction of its $6.9 billion in secured debt.
That group objected to Chrysler's plan to sell the bulk of its assets to Italy's Fiat Group SpA, and took the case all the way to the U.S. Supreme Court before the sale ultimately went through. Attorneys for consumer groups and people with product liability lawsuits against Chrysler also appealed the sale to the high court.
Several of the same consumer groups are also objecting to the GM sale, because like in the case of Chrysler, the new company would not be responsible for product liability claims related to vehicles produced and sold by the old company.
Consumers would be left to file claims against the assets remaining after the sale, and it is unlikely that there will be anything left to pay those claims.
Meanwhile, the IUE-CWA, United Steelworkers and International Union of Operating Engineers claimed Friday that the GM sale will ultimately take away the health care benefits of their 50,000 retirees.
Before it filed for bankruptcy protection, GM reached a deal to give the UAW a stake in the new company to help fund retiree heath care benefits, but no such agreement has been reached with the other unions.
"If GM succeeds in leaving behind these union-represented retirees and dependents, they will be left with only an unsecured claim against old GM for more than $3 billion in retiree health care and hundreds of millions more for retirement life insurance," the unions said in their objection.
Rashid-Merem said discussions related to the non-UAW health care benefits are ongoing, and the company hopes to reach final decisions about their future soon.
A hearing on the sale of GM's assets to the new government-led entity is scheduled for June 30. The deadline to file objections with the court was 5 p.m. Friday.
by the associated press
Yue Yuen Industrial 1H Net Profit
HONG KONG (Dow Jones)--Yue Yuen Industrial (Holdings) Ltd. (0551.HK), the world's largest athletic footwear maker by output, said Sunday its first-half net profit rose 4.0% from a year earlier on increased sales despite a difficult business environment.
The company said its net profit for the six months ended March 31 rose to US$217.7 million from US$209.3 million a year earlier.
Yue Yuen, a unit of Taiwan's Pou Chen Corp. (9904.TW), said revenue for the period rose 9.7% to US$2.55 billion from US$2.32 billion.
The company proposed a first-half dividend of HK$0.34, unchanged from a year earlier.
Yue Yuen, which makes shoes for brands such as Nike Inc. and Adidas-Salomon AG, produced 129.9 million pairs of shoes in its first half, up 1.6% from a year earlier.
The shoe maker said revenue in the April-May period dropped 1.6% from a year earlier, but it expects footwear sales to stabilize on the performance of its brand-name customers, and sales for its retail operations in China to be steady on healthy consumer spending in the country.
from the wall street journal
The company said its net profit for the six months ended March 31 rose to US$217.7 million from US$209.3 million a year earlier.
Yue Yuen, a unit of Taiwan's Pou Chen Corp. (9904.TW), said revenue for the period rose 9.7% to US$2.55 billion from US$2.32 billion.
The company proposed a first-half dividend of HK$0.34, unchanged from a year earlier.
Yue Yuen, which makes shoes for brands such as Nike Inc. and Adidas-Salomon AG, produced 129.9 million pairs of shoes in its first half, up 1.6% from a year earlier.
The shoe maker said revenue in the April-May period dropped 1.6% from a year earlier, but it expects footwear sales to stabilize on the performance of its brand-name customers, and sales for its retail operations in China to be steady on healthy consumer spending in the country.
from the wall street journal
Balancing Act
The Federal Reserve's policymaking committee meets tomorrow and Wednesday and will grapple with a somewhat different situation than it faced at its last meeting, at the end of April. Since then, the financial system has continued to repair itself, and the economy, while very weak, continues to show signs of bottoming out later this year.
What has changed most since then is a steep rise in long-term interest rates, which is pushing up long-term borrowing rates, especially for mortgages. That could stand in the way of a nascent stabilization in the housing market.
It also creates a conundrum for Fed Chairman Ben S. Bernanke and his colleagues. They still view the economy to be in perilous shape and are inclined to do whatever they can to support it. That would suggest that they should expand their purchases of Treasury bonds and mortgage-backed securities to try to push long-term rates back down.
But not so fast. For one thing, Fed leaders view much of the rise in rates as reflecting the return of financial conditions to a more normal place. So that's a healthy thing -- and if the rise really does choke off growth excessively, rates will come back down in a self-regulating fashion.
More worrisome, part of the rise in rates may be caused by fears that the Fed will allow inflation to get out of control down the road and that it will print money to finance government deficits. To the degree that those fears are out there, expansion of the Fed programs could be counterproductive, sending rates up rather than down.
So, in the view of most Fed watchers, we're unlikely to see any major new action to bolster the economy out of the Fed's meeting, results of which will be released Wednesday.
Meanwhile, some major data are coming out this week -- figures for May durable-goods orders on Wednesday, May personal income and consumption on Friday, and the final revision of first-quarter gross domestic product data on Thursday.
from the washington post
What has changed most since then is a steep rise in long-term interest rates, which is pushing up long-term borrowing rates, especially for mortgages. That could stand in the way of a nascent stabilization in the housing market.
It also creates a conundrum for Fed Chairman Ben S. Bernanke and his colleagues. They still view the economy to be in perilous shape and are inclined to do whatever they can to support it. That would suggest that they should expand their purchases of Treasury bonds and mortgage-backed securities to try to push long-term rates back down.
But not so fast. For one thing, Fed leaders view much of the rise in rates as reflecting the return of financial conditions to a more normal place. So that's a healthy thing -- and if the rise really does choke off growth excessively, rates will come back down in a self-regulating fashion.
More worrisome, part of the rise in rates may be caused by fears that the Fed will allow inflation to get out of control down the road and that it will print money to finance government deficits. To the degree that those fears are out there, expansion of the Fed programs could be counterproductive, sending rates up rather than down.
So, in the view of most Fed watchers, we're unlikely to see any major new action to bolster the economy out of the Fed's meeting, results of which will be released Wednesday.
Meanwhile, some major data are coming out this week -- figures for May durable-goods orders on Wednesday, May personal income and consumption on Friday, and the final revision of first-quarter gross domestic product data on Thursday.
from the washington post
Xstrata Merger with Anglo American
Xstrata, an exporter of coal used by power plants, on Sunday proposed a merger with Anglo American to gain access to iron ore mines and control of the world’s biggest platinum producer.
“A merger of these two world-class companies with complementary assets is highly compelling” and would provide “enhanced scale and financial flexibility to fund future growth,” Xstrata said in a statement.
The combination with Anglo would allow Xstrata to save money by joining operations. Xstrata, based in Switzerland, has been on an acquisition spree in which the company has spent more than $28 billion in the last six years on nickel, copper, coal and platinum assets. A combination would create a company with a market value of about £41 billion ($68 billion).
Talks are “at a very preliminary stage, and there is no certainty that any transaction will be forthcoming,” Anglo American, which is based in London, said in a statement on Sunday. It did not disclose terms of a possible deal.
Glencore International, a raw materials supplier that holds a 35 percent stake in Xstrata, supports a deal, The Sunday Telegraph reported.
Anglo American rose 2.7 percent, to 1,623 pence in London on Friday, valuing the company at £21.4 billion. The stock has gained 5 percent this year. Xstrata climbed 4.1 percent, to 681 pence, valuing the company at £20 billion. The shares have jumped 88 percent this year, giving it a market value of £20 billion.
Analysts at Citigroup said in a June 18 report that an Xstrata and Anglo American combination “makes strategic sense and could create synergies of up to $750 million per annum.” A merged company “would be a global leader in base metals, platinum, ferrochrome and coal,” they wrote.
Xstrata said in its statement that a “combination would create a premier portfolio of operations diversified across multiple commodities and geographies.”
The deal would also “significantly increase shareholder returns,” it said.
Goldman Sachs and UBS are advising Anglo American, while Deutsche Bank and JPMorgan Cazenove are advising Xstrata.
from the new york times
“A merger of these two world-class companies with complementary assets is highly compelling” and would provide “enhanced scale and financial flexibility to fund future growth,” Xstrata said in a statement.
The combination with Anglo would allow Xstrata to save money by joining operations. Xstrata, based in Switzerland, has been on an acquisition spree in which the company has spent more than $28 billion in the last six years on nickel, copper, coal and platinum assets. A combination would create a company with a market value of about £41 billion ($68 billion).
Talks are “at a very preliminary stage, and there is no certainty that any transaction will be forthcoming,” Anglo American, which is based in London, said in a statement on Sunday. It did not disclose terms of a possible deal.
Glencore International, a raw materials supplier that holds a 35 percent stake in Xstrata, supports a deal, The Sunday Telegraph reported.
Anglo American rose 2.7 percent, to 1,623 pence in London on Friday, valuing the company at £21.4 billion. The stock has gained 5 percent this year. Xstrata climbed 4.1 percent, to 681 pence, valuing the company at £20 billion. The shares have jumped 88 percent this year, giving it a market value of £20 billion.
Analysts at Citigroup said in a June 18 report that an Xstrata and Anglo American combination “makes strategic sense and could create synergies of up to $750 million per annum.” A merged company “would be a global leader in base metals, platinum, ferrochrome and coal,” they wrote.
Xstrata said in its statement that a “combination would create a premier portfolio of operations diversified across multiple commodities and geographies.”
The deal would also “significantly increase shareholder returns,” it said.
Goldman Sachs and UBS are advising Anglo American, while Deutsche Bank and JPMorgan Cazenove are advising Xstrata.
from the new york times
Friday, June 19, 2009
Shoppers find bargains in style
NEW YORK — With luxury retailers in a major slump, this is a great time to find deals on luxury handbags, apparel and accessories. Here are five ways to capitalize on the luxury sector’s woes.
• ONLINE SAMPLE SALES. Sample sales in out-of-the-way locations have been fixtures in New York and other cities where designers are based for years. Now, as unsold luxury goods pile up, they’ve gone online. At Gilt.com, Gilt Groupe Inc. gives members access to designer clothing at discounts up to 70 percent. RueLaLa.com offers bargains on items ranging from Gucci to Waterford. Shopittome.com searches Web sites of high-end stores such as Nordstrom and Saks Fifth Avenue for its subscribers and e-mails them when products, brands and sizes they specify are on sale.
• OUTLET STORES. Luxury brands’ factory and outlet stores are going back to their roots and selling unsold higher-end inventory in addition to cheaper merchandise made specifically for outlets. This lets luxury makers like Coach Inc. avoid lowering prices at retail locations quite as far as they might.
• DEPARTMENT STORE DEALS. Among the worst-performing retailers during the recession have been luxury department stores, while 70 percent off sales may be a thing of the past, there are still deals to be found, particularly on clearance. David Wolfe, creative director at The Doneger Group Inc., which advises stores on apparel buying, says finding deals on luxury items at department stores depends on comparison shopping and seeking quality — not just discounts.
"The trick to that is buy things that are classically designed, not the hot item of the season,” he said. "If something is so identifiable, even though you may get it at bargain price, you will be sorry in six months that you own it.”
• HOLD OFF. Wolfe also says patience may pay off this year in lower prices for high-end luxury apparel and accessories. "There are reports that some designers are lowering their prices 20 to 30 percent this season,” he said, which will show up in stores in a few months.
• SHOP CONSIGNMENT STORES. The stigma is definitely off used clothing and items that have been previously owned but never worn. As consumers rethink purchases and look for cash in their closets, there has been an influx of goods at consignment stores, where luxury goods sell for a fraction of their retail price. Some consigned goods are available online, too, at sites such as constylement.com, but the competition is tough.
"Now it’s not just respectable, it’s almost like a sport,” Wolfe said.
by the associated press
• ONLINE SAMPLE SALES. Sample sales in out-of-the-way locations have been fixtures in New York and other cities where designers are based for years. Now, as unsold luxury goods pile up, they’ve gone online. At Gilt.com, Gilt Groupe Inc. gives members access to designer clothing at discounts up to 70 percent. RueLaLa.com offers bargains on items ranging from Gucci to Waterford. Shopittome.com searches Web sites of high-end stores such as Nordstrom and Saks Fifth Avenue for its subscribers and e-mails them when products, brands and sizes they specify are on sale.
• OUTLET STORES. Luxury brands’ factory and outlet stores are going back to their roots and selling unsold higher-end inventory in addition to cheaper merchandise made specifically for outlets. This lets luxury makers like Coach Inc. avoid lowering prices at retail locations quite as far as they might.
• DEPARTMENT STORE DEALS. Among the worst-performing retailers during the recession have been luxury department stores, while 70 percent off sales may be a thing of the past, there are still deals to be found, particularly on clearance. David Wolfe, creative director at The Doneger Group Inc., which advises stores on apparel buying, says finding deals on luxury items at department stores depends on comparison shopping and seeking quality — not just discounts.
"The trick to that is buy things that are classically designed, not the hot item of the season,” he said. "If something is so identifiable, even though you may get it at bargain price, you will be sorry in six months that you own it.”
• HOLD OFF. Wolfe also says patience may pay off this year in lower prices for high-end luxury apparel and accessories. "There are reports that some designers are lowering their prices 20 to 30 percent this season,” he said, which will show up in stores in a few months.
• SHOP CONSIGNMENT STORES. The stigma is definitely off used clothing and items that have been previously owned but never worn. As consumers rethink purchases and look for cash in their closets, there has been an influx of goods at consignment stores, where luxury goods sell for a fraction of their retail price. Some consigned goods are available online, too, at sites such as constylement.com, but the competition is tough.
"Now it’s not just respectable, it’s almost like a sport,” Wolfe said.
by the associated press
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