MOSCOW — For two days, President Barack Obama pressed the reset button with Russia.
The results: He got the expected agreement on deep cuts in nuclear arsenals, but he is leaving Moscow with few assurances of Kremlin help in solving other issues key to his foreign policy agenda.
He also is leaving behind a spark he hopes will blaze to life and thaw U.S. relations with a former superpower with a chip on its shoulder. But his two days of summitry produced no breakthroughs.
Throughout the meetings and speeches, Obama stayed on message: The United States and Russia have too many overlapping interests to move through the coming decades at odds. The time for confrontational Cold War thinking is well-past. America wants Russia to be "strong, peaceful and prosperous.”
Issues left on table
On several issues key to Obama foreign policy, the Russians were unbending, at least for now.
While they agreed to join the U.S. in reassessing the threat from Iran’s nuclear ambitions, there was no hoped-for Kremlin offer of direct intervention with Tehran.
On the flash point issue of Georgia, where the Russian army crushed the tiny country’s military a year ago, the Kremlin rejected U.S. complaints about Russian insistence that breakaway Abkhazia and South Ossetia remain free of Georgian control.
Nor did there appear to have been progress in the dispute over arms control.
The two sides did agree to far greater cooperation on Afghanistan, where Obama is bolstering U.S. troop strength in the fight against militants.
Negotiators also prepared a series of side agreements and established a commission nominally headed by Obama and Russian President Dmitry Medvedev. It is designed to quicken the pace of U.S.-Russian engagement on issues important to both countries.
by the associated press
AdBrite
AdBrite
Wednesday, July 8, 2009
Energy futures could face limits
WASHINGTON — Federal regulators will examine whether the government should impose limits on the number of futures contracts in oil and other energy commodities held by speculative traders, the head of the Commodity Futures Trading Commission said Tuesday.
The agency will hold a public hearing later this month to gather views from consumers, businesses and market participants on the idea of new limits for energy futures contracts, CFTC Chairman Gary Gensler said in a statement. It will be the first in a series of hearings in July and August on various topics to determine how the commodities agency "should use all of its existing authorities to accomplish its mission,” he said.
The move comes against a backdrop of concern in Congress and complaints by traders over speculation in the oil futures market.
By law, the CFTC sets limits on the amount of futures contracts in agricultural products such as wheat, corn and soybeans that can be held by each market participant to protect the market against manipulation. But for energy commodities — crude oil, heating oil, natural gas, gasoline and other energy products — it is the futures exchanges themselves that set the position limits.
"This different regulatory approach to position limits for agriculture and other physically delivered commodities deserves thoughtful review,” Gensler said.
"It is incumbent upon the CFTC to ensure a fair and transparent price discovery process for all commodities.”
by the associated press
The agency will hold a public hearing later this month to gather views from consumers, businesses and market participants on the idea of new limits for energy futures contracts, CFTC Chairman Gary Gensler said in a statement. It will be the first in a series of hearings in July and August on various topics to determine how the commodities agency "should use all of its existing authorities to accomplish its mission,” he said.
The move comes against a backdrop of concern in Congress and complaints by traders over speculation in the oil futures market.
By law, the CFTC sets limits on the amount of futures contracts in agricultural products such as wheat, corn and soybeans that can be held by each market participant to protect the market against manipulation. But for energy commodities — crude oil, heating oil, natural gas, gasoline and other energy products — it is the futures exchanges themselves that set the position limits.
"This different regulatory approach to position limits for agriculture and other physically delivered commodities deserves thoughtful review,” Gensler said.
"It is incumbent upon the CFTC to ensure a fair and transparent price discovery process for all commodities.”
by the associated press
IRS temporarily stops some fines
WASHINGTON — The IRS has temporarily stopped collecting penalties from some small businesses that have been hit with big fines for not disclosing the use of questionable tax shelters.
The fines, which can reach $300,000 a year, were an unintended consequence of a 2004 law aimed at big corporations that use the shelters to avoid taxes. Lawmakers asked the Internal Revenue Service last month to suspend collections while they work to change the law.
The IRS agreed to suspend collections through September on cases in which businesses gained less than $200,000 a year from the tax shelters, IRS Commissioner Doug Shulman said in a letter to lawmakers released Tuesday.
Shulman said the penalties, in some cases, "are way out of line with penalties for other similar cases of noncompliance.”
"Many of the transactions now under examination involve tax benefits that are minor when compared to the statutory penalty amounts,” Shulman said in the letter.
What the law does
The existing law imposes reporting requirements on businesses and individuals who use tax shelters that the IRS has identified as abusive. The goal is to red flag these "listed transactions” so IRS agents can more closely examine them.
The penalties for failing to disclose the transactions on tax forms are $100,000 a year for individuals and $200,000 a year for businesses. Taxpayers who use the tax shelters for both individual and business purposes face penalties of $300,000 a year.
The penalties cannot be appealed, National Taxpayer Advocate Nina Olson said in her 2008 annual report. Olson, an independent watchdog within the IRS, cited a case in which a small business owner saved $45,000 over three years from a tax shelter and was fined $900,000 by the IRS.
Lawmakers from both parties said they will work to change the law to make the penalties more in line with the offenses.
by the associated press
The fines, which can reach $300,000 a year, were an unintended consequence of a 2004 law aimed at big corporations that use the shelters to avoid taxes. Lawmakers asked the Internal Revenue Service last month to suspend collections while they work to change the law.
The IRS agreed to suspend collections through September on cases in which businesses gained less than $200,000 a year from the tax shelters, IRS Commissioner Doug Shulman said in a letter to lawmakers released Tuesday.
Shulman said the penalties, in some cases, "are way out of line with penalties for other similar cases of noncompliance.”
"Many of the transactions now under examination involve tax benefits that are minor when compared to the statutory penalty amounts,” Shulman said in the letter.
What the law does
The existing law imposes reporting requirements on businesses and individuals who use tax shelters that the IRS has identified as abusive. The goal is to red flag these "listed transactions” so IRS agents can more closely examine them.
The penalties for failing to disclose the transactions on tax forms are $100,000 a year for individuals and $200,000 a year for businesses. Taxpayers who use the tax shelters for both individual and business purposes face penalties of $300,000 a year.
The penalties cannot be appealed, National Taxpayer Advocate Nina Olson said in her 2008 annual report. Olson, an independent watchdog within the IRS, cited a case in which a small business owner saved $45,000 over three years from a tax shelter and was fined $900,000 by the IRS.
Lawmakers from both parties said they will work to change the law to make the penalties more in line with the offenses.
by the associated press
Do-it-yourself repairs
NEW YORK — Car owners looking to trim expenses are sidestepping the mechanic and plunging into their own repairs. Or trying to, anyway. Their efforts can backfire, costing more in the end and creating do-it-yourself horror stories.
Mechanics say they’ve seen it all in recent months, including incorrectly applied brake pads and antifreeze poured into engines.
"A lot of people, they’re in dire straits,” said Pam Oakes, owner of Pam’s Motor City Automotive in Fort Myers, Fla. "They try to do this stuff at home in their driveway.”
The results can be frustrating, and sometimes outright dangerous.
When the taillight of Laura Musall’s five-year-old Nissan Altima burned out, she hoped to avoid the repair shop by letting her husband replace it at home. It seemed simple enough: Buy a bulb, pop off the cover and make the switch.
But her husband struggled to remove the plastic casing, and when he used a screwdriver to pry it off, it shattered. What came next was even worse. Her Nissan dealer wanted $250 to order a new one.
Musall, a real estate agent from Fishers, Ind., figured "10 bucks, we’d be done.” "But apparently,” she said, "it’s not a do-it-yourself thing if you don’t know what you’re doing.”
While well-intentioned, many people forget that today’s cars are vastly more complicated than models made just years ago. Most are so computer-controlled that owners can’t spot problems without access to specific tools and data programs, said Dave Striegel, owner of Elizabeth AutoCare in Elizabeth, Pa.
"They’re not able to do nearly the work that they used to do — it’s even going beyond the heads of a lot of technicians who aren’t keeping up-to-date,” Striegel said.
Remaining undeterred
Even so, some car owners remain undeterred. On Yahoo, queries for the terms "car repairs” and "salvage auto parts” are up 77 percent and 99 percent respectively in just the past month, according to the site’s data.
Other car repair search terms remain at three-year highs, reflecting "a renewal of the good old American independent spirit,” said Vera Chan, a senior editor for the site.
The urge to cut out the middleman extends to even the wealthy, said Stephen Viscusi, a New York-based author and career consultant. "We feel the need to be frugal and save money,” he said.
But that doesn’t mean repairs come easily. Viscusi tried to change the oil on his Mercedes-Benz sedan — and wound up with it all over his face, a situation he likened to an episode of "I Love Lucy.” He also struck out replacing spark plugs on his BMW.
Auto shops say there’s an easy way to save money: Just be upfront about the repairs you’ve tried at home.
Most do-it-yourselfers, perhaps out of sheer embarrassment, play coy when mechanics start asking questions about what went wrong with the car, said Paul Lambdin, owner of Cary Car Care in Cary, N.C.
To piece together what went wrong, mechanics typically have to start asking questions, and lots of them, said Oakes, of the Fort Myers repair shop.
"You play quiz master with them. … you play the 20 question game and then it comes out,” she said.
by the associated press
Mechanics say they’ve seen it all in recent months, including incorrectly applied brake pads and antifreeze poured into engines.
"A lot of people, they’re in dire straits,” said Pam Oakes, owner of Pam’s Motor City Automotive in Fort Myers, Fla. "They try to do this stuff at home in their driveway.”
The results can be frustrating, and sometimes outright dangerous.
When the taillight of Laura Musall’s five-year-old Nissan Altima burned out, she hoped to avoid the repair shop by letting her husband replace it at home. It seemed simple enough: Buy a bulb, pop off the cover and make the switch.
But her husband struggled to remove the plastic casing, and when he used a screwdriver to pry it off, it shattered. What came next was even worse. Her Nissan dealer wanted $250 to order a new one.
Musall, a real estate agent from Fishers, Ind., figured "10 bucks, we’d be done.” "But apparently,” she said, "it’s not a do-it-yourself thing if you don’t know what you’re doing.”
While well-intentioned, many people forget that today’s cars are vastly more complicated than models made just years ago. Most are so computer-controlled that owners can’t spot problems without access to specific tools and data programs, said Dave Striegel, owner of Elizabeth AutoCare in Elizabeth, Pa.
"They’re not able to do nearly the work that they used to do — it’s even going beyond the heads of a lot of technicians who aren’t keeping up-to-date,” Striegel said.
Remaining undeterred
Even so, some car owners remain undeterred. On Yahoo, queries for the terms "car repairs” and "salvage auto parts” are up 77 percent and 99 percent respectively in just the past month, according to the site’s data.
Other car repair search terms remain at three-year highs, reflecting "a renewal of the good old American independent spirit,” said Vera Chan, a senior editor for the site.
The urge to cut out the middleman extends to even the wealthy, said Stephen Viscusi, a New York-based author and career consultant. "We feel the need to be frugal and save money,” he said.
But that doesn’t mean repairs come easily. Viscusi tried to change the oil on his Mercedes-Benz sedan — and wound up with it all over his face, a situation he likened to an episode of "I Love Lucy.” He also struck out replacing spark plugs on his BMW.
Auto shops say there’s an easy way to save money: Just be upfront about the repairs you’ve tried at home.
Most do-it-yourselfers, perhaps out of sheer embarrassment, play coy when mechanics start asking questions about what went wrong with the car, said Paul Lambdin, owner of Cary Car Care in Cary, N.C.
To piece together what went wrong, mechanics typically have to start asking questions, and lots of them, said Oakes, of the Fort Myers repair shop.
"You play quiz master with them. … you play the 20 question game and then it comes out,” she said.
by the associated press
Pickens alternative energy plan , is put on the side
NEW YORK — The past year has been tough on T. Boone Pickens and his $60 million mission to wean America off of foreign oil.
Over the past 12 months, Pickens pressed the public to rethink its use of energy. His "Pickens Plan” called for a number of changes such as investing in wind and solar energy, rebuilding the country’s electrical grid and replacing gasoline with natural gas in cars and trucks.
Pickens says he was influential in starting a national dialog on energy and helped draft legislation that would give tax incentives for natural gas-burning vehicles.
But after spending millions on television commercials and a public relations tour that took him to 74 cities and 22 town halls, his plan has run into some sizeable hurdles, most notably a crash in energy prices.
As prices plunged, the Texas billionaire’s hedge funds lost billions of dollars. Pickens also scrapped plans for the world’s biggest wind farm, and California voters rejected a natural gas initiative he backed.
"I do wonder how long that I can continue at the pace,” Pickens, 81, said Tuesday in an interview with Associated Press reporters and editors. "I know my time is limited. I’m in a hurry. I want to get this done.”
Billionaire cites progress
During the past year, Congress has approved incentive programs that will funnel billions of dollars to solar, wind and other renewable energy programs. The House of Representatives passed an energy bill that would create a cap-and-trade system for carbon dioxide emissions.
"I think we should be given credit for some part of that,” he said.
When Pickens announced his plan last year at this time, oil cost more than $130 a barrel and gasoline went for more than $4 per gallon. Crude has since fallen as low as $32.70 and now trades at $62.34.
Gasoline costs about $2.61 at the peak of the driving season.
While slumping energy prices have been a silver lining during the recession, there are some fears that the urgency to build solar, and for Pickens, wind power, is now diminished. For example, the natural gas that power companies use now costs less than half of what it did last year, making it harder for wind to compete.
The Texas oil man made a big splash last year by leasing about 200,000 acres in West Texas for a massive 1,000 megawatt wind farm. But he said Tuesday that the plan has fallen apart because of technical problems concerning transmission.
"We’re not going to be able to do them (in Texas), at this point,” he said.
Pickens said he already has 687 wind turbines on order from General Electric, and he’ll probably spread them among other projects.
The Pickens Plan also calls for building fleets of cars and trucks to burn natural gas.
But so far efforts have failed to create incentives for natural gas vehicles.
Last year, Pickens’ Clean Energy Fuels Corp. pumped $19 million into a California bond initiative that would have handed rebates to people who bought natural gas and other alternative-fuel vehicles. But critics said the measure would have steered taxpayer dollars to Pickens, who is the majority shareholder of a company that supplies natural gas for transportation, and voters rejected it.
He’s now pushing for a similar measure in Congress.
Today, Pickens will release an ad promoting natural gas as an alternative fuel for cars and trucks. He said he also will be in Washington standing next to Sens. Robert Menendez, and Harry Reid when a natural gas bill is announced.
He’s embarking on another tour across the country to remind the public that even though oil prices are lower than last year, the world still faces an energy crisis.
by the associated press
Over the past 12 months, Pickens pressed the public to rethink its use of energy. His "Pickens Plan” called for a number of changes such as investing in wind and solar energy, rebuilding the country’s electrical grid and replacing gasoline with natural gas in cars and trucks.
Pickens says he was influential in starting a national dialog on energy and helped draft legislation that would give tax incentives for natural gas-burning vehicles.
But after spending millions on television commercials and a public relations tour that took him to 74 cities and 22 town halls, his plan has run into some sizeable hurdles, most notably a crash in energy prices.
As prices plunged, the Texas billionaire’s hedge funds lost billions of dollars. Pickens also scrapped plans for the world’s biggest wind farm, and California voters rejected a natural gas initiative he backed.
"I do wonder how long that I can continue at the pace,” Pickens, 81, said Tuesday in an interview with Associated Press reporters and editors. "I know my time is limited. I’m in a hurry. I want to get this done.”
Billionaire cites progress
During the past year, Congress has approved incentive programs that will funnel billions of dollars to solar, wind and other renewable energy programs. The House of Representatives passed an energy bill that would create a cap-and-trade system for carbon dioxide emissions.
"I think we should be given credit for some part of that,” he said.
When Pickens announced his plan last year at this time, oil cost more than $130 a barrel and gasoline went for more than $4 per gallon. Crude has since fallen as low as $32.70 and now trades at $62.34.
Gasoline costs about $2.61 at the peak of the driving season.
While slumping energy prices have been a silver lining during the recession, there are some fears that the urgency to build solar, and for Pickens, wind power, is now diminished. For example, the natural gas that power companies use now costs less than half of what it did last year, making it harder for wind to compete.
The Texas oil man made a big splash last year by leasing about 200,000 acres in West Texas for a massive 1,000 megawatt wind farm. But he said Tuesday that the plan has fallen apart because of technical problems concerning transmission.
"We’re not going to be able to do them (in Texas), at this point,” he said.
Pickens said he already has 687 wind turbines on order from General Electric, and he’ll probably spread them among other projects.
The Pickens Plan also calls for building fleets of cars and trucks to burn natural gas.
But so far efforts have failed to create incentives for natural gas vehicles.
Last year, Pickens’ Clean Energy Fuels Corp. pumped $19 million into a California bond initiative that would have handed rebates to people who bought natural gas and other alternative-fuel vehicles. But critics said the measure would have steered taxpayer dollars to Pickens, who is the majority shareholder of a company that supplies natural gas for transportation, and voters rejected it.
He’s now pushing for a similar measure in Congress.
Today, Pickens will release an ad promoting natural gas as an alternative fuel for cars and trucks. He said he also will be in Washington standing next to Sens. Robert Menendez, and Harry Reid when a natural gas bill is announced.
He’s embarking on another tour across the country to remind the public that even though oil prices are lower than last year, the world still faces an energy crisis.
by the associated press
Thursday, July 2, 2009
Harve Presnell dies of cancer at 75
NEW YORK — Harve Presnell, whose booming baritone graced such Broadway musicals as "The Unsinkable Molly Brown” and "Annie,” has died at age 75.
Although he was best known for his roles in musical theater, Presnell also is remembered as William H. Macy’s father-in-law in the Coen brothers’ 1996 film "Fargo.”
by the associated press
Although he was best known for his roles in musical theater, Presnell also is remembered as William H. Macy’s father-in-law in the Coen brothers’ 1996 film "Fargo.”
by the associated press
President Obama , urges movement on health care reform
WASHINGTON — With lawmakers on Capitol Hill struggling to reconcile clashing views on overhauling the nation’s health care system, President Obama made a new appeal to the public not to let Congress put off action on his top legislative priority.
"In order to make it happen, I’m going to need ordinary Americans to stand up and say, now’s the time,” Obama said Wednesday at a town hall-style forum at Northern Virginia Community College in the Washington suburb of Annandale, Va. "If Congress thinks that the American people don’t want to see change, frankly the lobbyists and the special interests will end up winning the day.” The president said lawmakers are often tempted to drop politically sensitive issues.
"For those who say, ‘Well, you know what, this is something that is very complicated, so we shouldn’t rush into it,’ that’s what happens in Congress all the time,” Obama said. "They have hearings, they write white papers, and then suddenly the lobbyists and the special interests start going at it. And next thing you know, another 10 years has gone by, and we still haven’t done anything.” Wednesday’s forum was the third in three weeks devoted to health care.
Debate over health care legislation is expected to move to center stage next week when lawmakers return to Washington from their July 4 recess.
But leading Republicans, including Senate Minority Leader Mitch McConnell, R-Ky., have begun to call for slower action. "We could target the things that are askew in the system and fix them without this kind of massive overhaul,” he recently said on Fox News Sunday.
Obama has said he hopes to sign a health care bill in the fall. Wednesday, he implored his audience not to let that timeline slip.
by the associated press
"In order to make it happen, I’m going to need ordinary Americans to stand up and say, now’s the time,” Obama said Wednesday at a town hall-style forum at Northern Virginia Community College in the Washington suburb of Annandale, Va. "If Congress thinks that the American people don’t want to see change, frankly the lobbyists and the special interests will end up winning the day.” The president said lawmakers are often tempted to drop politically sensitive issues.
"For those who say, ‘Well, you know what, this is something that is very complicated, so we shouldn’t rush into it,’ that’s what happens in Congress all the time,” Obama said. "They have hearings, they write white papers, and then suddenly the lobbyists and the special interests start going at it. And next thing you know, another 10 years has gone by, and we still haven’t done anything.” Wednesday’s forum was the third in three weeks devoted to health care.
Debate over health care legislation is expected to move to center stage next week when lawmakers return to Washington from their July 4 recess.
But leading Republicans, including Senate Minority Leader Mitch McConnell, R-Ky., have begun to call for slower action. "We could target the things that are askew in the system and fix them without this kind of massive overhaul,” he recently said on Fox News Sunday.
Obama has said he hopes to sign a health care bill in the fall. Wednesday, he implored his audience not to let that timeline slip.
by the associated press
Python blamed for killing Florida girl’s
OXFORD, Fla. — A 12-foot pet Burmese python escaped a terrarium and strangled a 2-year-old girl in her bedroom Wednesday at a central Florida home, authorities said.
Shaunnia Hare was already dead when paramedics arrived about 10 a.m., Lt. Bobby Caruthers of the Sumter County Sheriff’s Office said.
Charles Jason Darnell, the snake’s owner and boyfriend of Shaunnia’s mother, discovered the snake missing and went to the girl’s room, where he found it on the girl and bite marks on her head, Caruthers said. Darnell, 32, stabbed the snake until he could pry the child away.
"The baby’s dead!” a sobbing caller from the house screamed to a 911 dispatcher in a recording. "Our stupid snake got out in the middle of the night and strangled the baby.”
Authorities did not identify the caller and removed the person’s name from the recording.
Authorities removed the snake from the home Wednesday afternoon. Once outside, the snake was placed in a bag then inside a dog crate. The snake was still alive.
Darnell did not have a permit for the snake, which would be a second-degree misdemeanor, said Joy Hill, a spokeswoman with the Florida Fish and Wildlife Conservation Commission. He has not been charged, but Caruthers said investigators were looking into whether there was child neglect.
Hill said the snake will be placed with someone who has a permit, pending an investigation.
Shaunnia Hare was already dead when paramedics arrived about 10 a.m., Lt. Bobby Caruthers of the Sumter County Sheriff’s Office said.
Charles Jason Darnell, the snake’s owner and boyfriend of Shaunnia’s mother, discovered the snake missing and went to the girl’s room, where he found it on the girl and bite marks on her head, Caruthers said. Darnell, 32, stabbed the snake until he could pry the child away.
"The baby’s dead!” a sobbing caller from the house screamed to a 911 dispatcher in a recording. "Our stupid snake got out in the middle of the night and strangled the baby.”
Authorities did not identify the caller and removed the person’s name from the recording.
Authorities removed the snake from the home Wednesday afternoon. Once outside, the snake was placed in a bag then inside a dog crate. The snake was still alive.
Darnell did not have a permit for the snake, which would be a second-degree misdemeanor, said Joy Hill, a spokeswoman with the Florida Fish and Wildlife Conservation Commission. He has not been charged, but Caruthers said investigators were looking into whether there was child neglect.
Hill said the snake will be placed with someone who has a permit, pending an investigation.
by the associated press
Michael Jackson stored ‘Endless’ supply of music in his vaults
NEW YORK — Michael Jackson had a mountain of unreleased recordings in the vault when he died — music that is almost certain to be packaged and repackaged for his fans in the years to come.
The material includes unused tracks from studio sessions of some of Jackson’s best albums, as well as more recently recorded songs made with Senegalese R&B singer and producer Akon and Black Eyed Peas frontman will.i.am.
"There are dozens and dozens of songs that did not end up on his albums,” said Tommy Mottola, who from 1998 to 2003 was chairman and CEO of Sony Music, which owns the distribution rights to Jackson’s music. "People will be hearing a lot of that unreleased material for the first time ever. There’s just some genius and brilliance in there.”
The releases, Mottola said, "could go on for years and years — even more than Elvis.”
Since Jackson’s death Thursday, there has been an enormous, almost unprecedented demand for the King of Pop’s music. Nielsen SoundScan said Wednesday that three of his records — "Number Ones,” "Essential Michael Jackson” and "Thriller — were the best-selling albums of the week, and 2.3 million tracks of his have been downloaded in the U.S. alone.
No plans yet
When a music star of Jackson’s stature dies, labels typically comb through their archives to pull out anything they can release.
New compilations of recordings by performers such as Elvis, Tupac and Jeff Buckley still are released nearly every year.
Mottola, who has described himself as the "shepherd and gatekeeper” of Jackson’s catalog and is familiar with it better than anyone, said that for every album Jackson made — including classics like 1979’s "Off the Wall” and 1982’s "Thriller” — he recorded several tracks that didn’t make it onto the records.
(Mottola had only laudatory things to say about Jackson, who criticized Mottola in 2002 as a racist. Among those who defended Mottola at the time was the Rev. Al Sharpton.)
The details of who owns Jackson’s unreleased music and concert footage are not entirely clear. Sony Music declined to comment. A person involved with the label who requested anonymity said no new projects or compilations are being planned yet.
by the associated press
The material includes unused tracks from studio sessions of some of Jackson’s best albums, as well as more recently recorded songs made with Senegalese R&B singer and producer Akon and Black Eyed Peas frontman will.i.am.
"There are dozens and dozens of songs that did not end up on his albums,” said Tommy Mottola, who from 1998 to 2003 was chairman and CEO of Sony Music, which owns the distribution rights to Jackson’s music. "People will be hearing a lot of that unreleased material for the first time ever. There’s just some genius and brilliance in there.”
The releases, Mottola said, "could go on for years and years — even more than Elvis.”
Since Jackson’s death Thursday, there has been an enormous, almost unprecedented demand for the King of Pop’s music. Nielsen SoundScan said Wednesday that three of his records — "Number Ones,” "Essential Michael Jackson” and "Thriller — were the best-selling albums of the week, and 2.3 million tracks of his have been downloaded in the U.S. alone.
No plans yet
When a music star of Jackson’s stature dies, labels typically comb through their archives to pull out anything they can release.
New compilations of recordings by performers such as Elvis, Tupac and Jeff Buckley still are released nearly every year.
Mottola, who has described himself as the "shepherd and gatekeeper” of Jackson’s catalog and is familiar with it better than anyone, said that for every album Jackson made — including classics like 1979’s "Off the Wall” and 1982’s "Thriller” — he recorded several tracks that didn’t make it onto the records.
(Mottola had only laudatory things to say about Jackson, who criticized Mottola in 2002 as a racist. Among those who defended Mottola at the time was the Rev. Al Sharpton.)
The details of who owns Jackson’s unreleased music and concert footage are not entirely clear. Sony Music declined to comment. A person involved with the label who requested anonymity said no new projects or compilations are being planned yet.
by the associated press
Immigration and Customs Enforcement Agency to audit 652 businesses in illegal immigrant crackdown
WASHINGTON — The Obama administration launched investigations of hundreds of businesses around the country Wednesday as part of its strategy to focus immigration enforcement on the employers who hire illegal workers.
Immigration and Customs Enforcement has begun notifying businesses of plans to audit their I-9 forms — employment eligibility documents — the agency told members of Congress Wednesday.
Immigration officers served "Notices of Inspection” to 652 businesses, the Homeland Security Department said. By comparison, 503 such notices were issued to businesses last year. Businesses were chosen for inspections based on leads and other investigative work, Immigration and Customs Enforcement said.
Employers are required to keep the I-9 forms and must check the authenticity of documents provided by the employee. The Homeland Security Department said it would not release the names or locations of the businesses that are being audited because of the ongoing investigations.
"ICE is committed to establishing a meaningful I-9 inspection program to promote compliance with the law,” John Morton, Immigration and Customs Enforcement director, said in a statement.
President Barack Obama has said his administration’s strategy for stemming illegal immigration would focus on employers who hire illegal workers.
The Bush administration was criticized for deploying armed agents to raid businesses and arrest workers suspected to be working illegally.
Homeland Security Secretary Janet Napolitano has said investigations will focus on businesses that knowingly hire immigrants who cannot legally work in the U.S.
by the associated press
Immigration and Customs Enforcement has begun notifying businesses of plans to audit their I-9 forms — employment eligibility documents — the agency told members of Congress Wednesday.
Immigration officers served "Notices of Inspection” to 652 businesses, the Homeland Security Department said. By comparison, 503 such notices were issued to businesses last year. Businesses were chosen for inspections based on leads and other investigative work, Immigration and Customs Enforcement said.
Employers are required to keep the I-9 forms and must check the authenticity of documents provided by the employee. The Homeland Security Department said it would not release the names or locations of the businesses that are being audited because of the ongoing investigations.
"ICE is committed to establishing a meaningful I-9 inspection program to promote compliance with the law,” John Morton, Immigration and Customs Enforcement director, said in a statement.
President Barack Obama has said his administration’s strategy for stemming illegal immigration would focus on employers who hire illegal workers.
The Bush administration was criticized for deploying armed agents to raid businesses and arrest workers suspected to be working illegally.
Homeland Security Secretary Janet Napolitano has said investigations will focus on businesses that knowingly hire immigrants who cannot legally work in the U.S.
by the associated press
Congress gives GM a deadline to sell assets or lose federal funds
NEW YORK — A senior member of President Barack Obama’s auto task force testified Wednesday that the U.S. government will not continue to fund General Motors Corp.’s operations if the automaker doesn’t get approval to sell its assets to a new company within the next 10 days.
"We have no intention to further fund this company if the sale order is not entered by July 10,” Harry Wilson, one of the Treasury Department officials overseeing GM’s restructuring, said while being cross-examined by an attorney for a group of GM bondholders who are opposed to the sale.
The No. 1 U.S. automaker’s government-backed plan for a quick exit from Chapter 11 hinges on the sale plan, which would allow it to leave behind many of the costs and liabilities that have made the company unprofitable.
The Detroit-based automaker, whose June 1 filing for bankruptcy protection was the fourth-largest in U.S. history, is hoping to avoid a lengthy court battle over the sale. Last month, objections from bondholders and other groups dragged out rival Chrysler LLC’s hearing on its sale for three days. This is day three of the GM hearing.
U.S. Judge Robert Gerber urged the parties involved to try and reach resolutions on as many issues as possible in order to avoid lengthy arguments, but he conceded that the process would likely carry over to today.
by the associated press
"We have no intention to further fund this company if the sale order is not entered by July 10,” Harry Wilson, one of the Treasury Department officials overseeing GM’s restructuring, said while being cross-examined by an attorney for a group of GM bondholders who are opposed to the sale.
The No. 1 U.S. automaker’s government-backed plan for a quick exit from Chapter 11 hinges on the sale plan, which would allow it to leave behind many of the costs and liabilities that have made the company unprofitable.
The Detroit-based automaker, whose June 1 filing for bankruptcy protection was the fourth-largest in U.S. history, is hoping to avoid a lengthy court battle over the sale. Last month, objections from bondholders and other groups dragged out rival Chrysler LLC’s hearing on its sale for three days. This is day three of the GM hearing.
U.S. Judge Robert Gerber urged the parties involved to try and reach resolutions on as many issues as possible in order to avoid lengthy arguments, but he conceded that the process would likely carry over to today.
by the associated press
Better Auto Sales
DETROIT — After a yearlong free fall in the American car market, the decline of sales slowed in June, offering hope to automakers that the bottom has been reached and more shoppers may slowly start returning to showrooms soon.
Still, sales were down 7.1 percent from May, which generally is a stronger sales month.
Overall, automakers sold 859,847 vehicles in June, a 28 percent drop from the same month last year, according to Autodata Corp.
Sales declines slowed for four of the six major carmakers, with Ford Motor Co. reporting the smallest drop of 10.7 percent. For many months, Ford and other companies have been reporting year-over-year declines of 40 percent or more.
Even Chrysler, which emerged from bankruptcy protection early in June, saw its decline shrink.
Analysts say that’s among the signs that the auto industry’s slump that began with $4 per gallon gasoline last summer could be leveling off.
"It is unlikely things will get any worse,” said Jesse Toprak, executive director of industry analysis for Edmunds.com.
The slowly improving economy and government incentives of up to $4,500 to trade in inefficient clunkers for new vehicles could lead to modest improvements in the second half of the year, he said.
In anticipation of heightened traffic at dealers and higher sales later this year, Ford has increased its production order by 25,000 vehicles for the third quarter.
"We’re making steady progress,” Jim Farley, Ford’s vice president of marketing, said in a statement. "We remain grounded, however, given challenging industry and economic conditions.”
And while Chrysler’s sales results were dismal — only 68,297 cars and trucks, many sold because of incentives of more than $4,800 per car.
"At a time when they are emerging from bankruptcy and trying to reinvent themselves, it is not a huge surprise,” Toprak said.
Affordability and rising fuel prices — from $2.28 per gallon in May to $2.64 in June — boosted sales of sales of compact cars, some hybrids and larger crossover vehicles.
Sales of fuel-efficient hybrid vehicles that run on gasoline and electricity were mixed.
Analysts had speculated that June sales, when adjusted for seasonal variances and multiplied to calculate an annual selling rate, would exceed 10 million for the first time this year.
But sales once again fell just shy of that mark at 9.7 million for June. That’s a huge reduction from more than 16 million as recently as 2007.
by the associated press
Still, sales were down 7.1 percent from May, which generally is a stronger sales month.
Overall, automakers sold 859,847 vehicles in June, a 28 percent drop from the same month last year, according to Autodata Corp.
Sales declines slowed for four of the six major carmakers, with Ford Motor Co. reporting the smallest drop of 10.7 percent. For many months, Ford and other companies have been reporting year-over-year declines of 40 percent or more.
Even Chrysler, which emerged from bankruptcy protection early in June, saw its decline shrink.
Analysts say that’s among the signs that the auto industry’s slump that began with $4 per gallon gasoline last summer could be leveling off.
"It is unlikely things will get any worse,” said Jesse Toprak, executive director of industry analysis for Edmunds.com.
The slowly improving economy and government incentives of up to $4,500 to trade in inefficient clunkers for new vehicles could lead to modest improvements in the second half of the year, he said.
In anticipation of heightened traffic at dealers and higher sales later this year, Ford has increased its production order by 25,000 vehicles for the third quarter.
"We’re making steady progress,” Jim Farley, Ford’s vice president of marketing, said in a statement. "We remain grounded, however, given challenging industry and economic conditions.”
And while Chrysler’s sales results were dismal — only 68,297 cars and trucks, many sold because of incentives of more than $4,800 per car.
"At a time when they are emerging from bankruptcy and trying to reinvent themselves, it is not a huge surprise,” Toprak said.
Affordability and rising fuel prices — from $2.28 per gallon in May to $2.64 in June — boosted sales of sales of compact cars, some hybrids and larger crossover vehicles.
Sales of fuel-efficient hybrid vehicles that run on gasoline and electricity were mixed.
Analysts had speculated that June sales, when adjusted for seasonal variances and multiplied to calculate an annual selling rate, would exceed 10 million for the first time this year.
But sales once again fell just shy of that mark at 9.7 million for June. That’s a huge reduction from more than 16 million as recently as 2007.
by the associated press
McDonald's has the Beef
McDonald’s Corp. will sell a new line of bigger burgers made from Angus beef and priced at about $4 each to bring in customers looking for a beefy alternative to pricier burgers at sit-down restaurants.
The burgers will be sold in all U.S. locations for the next few months. The fast-food chain declined to specify whether the burgers will become a part of the company’s core menu.
from the wire
The burgers will be sold in all U.S. locations for the next few months. The fast-food chain declined to specify whether the burgers will become a part of the company’s core menu.
from the wire
Wal-Mart still Top Retailer
Walmart Inc. kept its crown as retail king, ranking No. 1 in U.S. sales for 2008, according to the National Retail Federation’s STORES magazine, but Oklahoma stores also made the list.
Walmart, the world’s largest retailer, posted revenue exceeding $405 billion in 2008, attributed in part to a successful re-launch of its Great Value line and attracting new customers because of the economic environment.
STORES magazine ranked the top 100 retailers by annual revenues reported in Securities and Exchange Commission filings, public statements by the companies and estimates based on Planet Retail research.
Two Oklahoma retailers also made the cut. Oklahoma City-based Love’s Travel Stops & Country Stores came in 31st place with just under $12.5 million in annual revenue, an increase of 8.6 percent. Tulsa’s QuickTrip claimed the 45th spot on the list, with about $8.64 million in revenue in 2008.
from the wire
Walmart, the world’s largest retailer, posted revenue exceeding $405 billion in 2008, attributed in part to a successful re-launch of its Great Value line and attracting new customers because of the economic environment.
STORES magazine ranked the top 100 retailers by annual revenues reported in Securities and Exchange Commission filings, public statements by the companies and estimates based on Planet Retail research.
Two Oklahoma retailers also made the cut. Oklahoma City-based Love’s Travel Stops & Country Stores came in 31st place with just under $12.5 million in annual revenue, an increase of 8.6 percent. Tulsa’s QuickTrip claimed the 45th spot on the list, with about $8.64 million in revenue in 2008.
from the wire
Wednesday, July 1, 2009
Gene variants connected to higher schizophrenia risk
WASHINGTON (AP) — A handful of typos in a mysterious region of the human genetic code are connected to a slightly higher risk of schizophrenia, new studies show.
In a first-of-its-kind look at the genetic elements of schizophrenia, a massive international effort focused on seven spots of genetic variation. Dozens of scientists then published three papers from the effort on Thursday in the journal Nature. Those genetic blips account for at most one-third of genetically caused schizophrenia.
Based on studies of identical twins, scientists figure that about half of schizophrenia is inherited with the rest having other causes.
What the studies show more than anything is that schizophrenia doesn't have a single genetic cause. It is more like a massive jigsaw puzzle and researchers just found a few end pieces, said Dr. Thomas Insel, director of the National Institute of Mental Health, which financed much of the work.
Researchers looked at the genomes of more than 50,000 people, some with schizophrenia and some without. Schizophrenia, first described 100 years ago as a split between thought and perception, includes thinking disorders, hallucinations, psychosis and odd behaviors, Insel said.
The findings have little practical immediate benefit, but "give us a little bit of insight into the biology of the disease," said one of the lead authors, Dr. Kari Stefansson, chief executive officer of deCODE Genetics in Iceland.
The risk increases found in the papers are small — a jump of between 15 and 25 percent above the normal 1 in 100 risk of developing schizophrenia. And all but one of the genetic variations are common to most of the population, so they can't be used much as a screening tool either.
What's intriguing is where five of those seven genetic variations lie.
Five are on "the short arm" of a single chromosome connected with all sorts of diseases, including ones relating to immune illnesses, such as Type 1 diabetes, said Insel, who was not part of the study teams. He calls that area "the Bermuda Triangle of the human genome."
Past studies have found an association between schizophrenia and babies born in winter and spring, hypothesizing that an immune system reaction to viral infection during pregnancy may be a factor. The location of five variants in that immune disorder-correlated region, is "provocative," said another study lead author Dr. Pablo Gejman, director of the Center for Psychiatric Genetics at NorthShore University Health Systems in Evanston, Ill.
Stefansson cautioned about seeing too much of a connection with immune disorders: "It's guilt by association; it's not really a link."
by the associated press
In a first-of-its-kind look at the genetic elements of schizophrenia, a massive international effort focused on seven spots of genetic variation. Dozens of scientists then published three papers from the effort on Thursday in the journal Nature. Those genetic blips account for at most one-third of genetically caused schizophrenia.
Based on studies of identical twins, scientists figure that about half of schizophrenia is inherited with the rest having other causes.
What the studies show more than anything is that schizophrenia doesn't have a single genetic cause. It is more like a massive jigsaw puzzle and researchers just found a few end pieces, said Dr. Thomas Insel, director of the National Institute of Mental Health, which financed much of the work.
Researchers looked at the genomes of more than 50,000 people, some with schizophrenia and some without. Schizophrenia, first described 100 years ago as a split between thought and perception, includes thinking disorders, hallucinations, psychosis and odd behaviors, Insel said.
The findings have little practical immediate benefit, but "give us a little bit of insight into the biology of the disease," said one of the lead authors, Dr. Kari Stefansson, chief executive officer of deCODE Genetics in Iceland.
The risk increases found in the papers are small — a jump of between 15 and 25 percent above the normal 1 in 100 risk of developing schizophrenia. And all but one of the genetic variations are common to most of the population, so they can't be used much as a screening tool either.
What's intriguing is where five of those seven genetic variations lie.
Five are on "the short arm" of a single chromosome connected with all sorts of diseases, including ones relating to immune illnesses, such as Type 1 diabetes, said Insel, who was not part of the study teams. He calls that area "the Bermuda Triangle of the human genome."
Past studies have found an association between schizophrenia and babies born in winter and spring, hypothesizing that an immune system reaction to viral infection during pregnancy may be a factor. The location of five variants in that immune disorder-correlated region, is "provocative," said another study lead author Dr. Pablo Gejman, director of the Center for Psychiatric Genetics at NorthShore University Health Systems in Evanston, Ill.
Stefansson cautioned about seeing too much of a connection with immune disorders: "It's guilt by association; it's not really a link."
by the associated press
US cell phone service launched
The world's largest commercial satellite was launched into space Wednesday, with a mission to provide phone service to cellular "dead zones" in North America.
The satellite, owned by TerreStar Corp. of Reston, Va., blasted off from Kourou in the South American territory of French Guiana shortly before 2 p.m. Eastern time, carried through pink clouds.
Half an hour later, French satellite launcher Arianespace announced that the TerreStar-1 had separated successfully from the rocket, on its way to an orbit 22,000 miles above the Earth.
There, the satellite is designed to unfurl an umbrella-like antenna of gold mesh 60 feet across, so it can pick up and relay signals from phones that are not much larger than regular cell phones.
TerreStar has shown prototypes of the phones, which are similar to BlackBerrys, and like them, would have access to data and e-mail. The phones aren't on sale yet.
TerreStar plans to have the system running before the end of the year.
To connect to the satellite, the handsets will need a clear view of the southern sky, just like a satellite dish. When that's not available, the sets will be able to connect to regular ground-based cellular networks. TerreStar has a roaming agreement with AT&T Inc.
The TerreStar-1 satellite, built by Loral Space & Communications Ltd., was originally scheduled to launch in 2007, but was delayed several times because of manufacturing problems.
The satellite is due be followed by two similar, even larger ones from a competitor, SkyTerra Communications Inc., next year.
TerreStar and SkyTerra are hoping to avoid the fate that met two pioneers in satellite telephony. Iridium and Globalstar filed for bankruptcy at the beginning of the decade, wiping out billions in investor capital after launching extensive satellite systems.
They are still in operation, providing last-resort communications for the military, forest wardens and others who can afford to buy dedicated, bulky satellite handsets for $1,000 and up.
TerreStar shares rose 17 cents, or 11 percent, to $1.70 on Wednesday, though the increase occurred before the launch of the satellite.
by the associated press
The satellite, owned by TerreStar Corp. of Reston, Va., blasted off from Kourou in the South American territory of French Guiana shortly before 2 p.m. Eastern time, carried through pink clouds.
Half an hour later, French satellite launcher Arianespace announced that the TerreStar-1 had separated successfully from the rocket, on its way to an orbit 22,000 miles above the Earth.
There, the satellite is designed to unfurl an umbrella-like antenna of gold mesh 60 feet across, so it can pick up and relay signals from phones that are not much larger than regular cell phones.
TerreStar has shown prototypes of the phones, which are similar to BlackBerrys, and like them, would have access to data and e-mail. The phones aren't on sale yet.
TerreStar plans to have the system running before the end of the year.
To connect to the satellite, the handsets will need a clear view of the southern sky, just like a satellite dish. When that's not available, the sets will be able to connect to regular ground-based cellular networks. TerreStar has a roaming agreement with AT&T Inc.
The TerreStar-1 satellite, built by Loral Space & Communications Ltd., was originally scheduled to launch in 2007, but was delayed several times because of manufacturing problems.
The satellite is due be followed by two similar, even larger ones from a competitor, SkyTerra Communications Inc., next year.
TerreStar and SkyTerra are hoping to avoid the fate that met two pioneers in satellite telephony. Iridium and Globalstar filed for bankruptcy at the beginning of the decade, wiping out billions in investor capital after launching extensive satellite systems.
They are still in operation, providing last-resort communications for the military, forest wardens and others who can afford to buy dedicated, bulky satellite handsets for $1,000 and up.
TerreStar shares rose 17 cents, or 11 percent, to $1.70 on Wednesday, though the increase occurred before the launch of the satellite.
by the associated press
Facebook plans to make easier privacy settings
NEW YORK (AP) — Facebook is overhauling its privacy controls over the next several weeks in an attempt to simplify its users' ability to control who sees the information they share on the site.
Privacy has been a central, often thorny issue for Facebook because so many people use it to share personal information with their friends and family and beyond. But as the 5-year-old social networking service has expanded its user base and added features, its privacy controls have grown increasingly complicated.
The Palo Alto, Calif.-based company said Wednesday that the new settings will give people greater control over what photos, updates and personal details they share with their friends, family and strangers on Facebook and, eventually, the wider Internet.
To make the settings easier, Facebook is consolidating its existing six privacy pages and more than 30 settings onto a single privacy page. It will also standardize the options for each setting so the choices are always the same, something that hasn't always been the case.
That means that for various pieces of content, users will be able to click on a lock icon to choose whether to show it to everyone, only their friends, friends of friends, members of professional or school networks or people on a customized list.
Previously, users had to navigate page after page to exclude, if they want, bosses or co-workers from seeing their photo albums, status updates or shared links. And because the privacy settings were dispersed on different pages, even after making a profile visible to friends only, the photos on that profile could remain public.
Facebook's chief privacy officer, Chris Kelly, said in a conference call with reporters that the changes don't have anything to do with advertising or the information Facebook is going to make available to advertisers.
Rather, he said, the site wants people "to be able to share information with as many or as few people as they choose."
One of Facebook's most notable privacy mishaps was a tracking tool called "Beacon," which in late 2007 caught users off-guard by broadcasting information about their activities at other Web sites, including their purchase of holiday gifts for those who could see the information. The company ultimately allowed users to turn Beacon off.
Other changes, too, have often met with user uproar. Earlier this year Facebook let its users vote on the site's guiding principles after tens of thousands joined online protests over who controls the information they share on the site.
To prevent another backlash, Facebook will gradually roll out the latest changes. Facebook will start by testing them out on small groups of users and tweak the final version of the controls based on feedback. Facebook said it would take more than three weeks to reach every user.
"They are learning how to listen carefully to their users," said Jules Polonetsky, co-chairman and director of the Washington-based Future of Privacy Forum and former chief privacy officer at AOL. He added that Facebook has learned from the past that suddenly making big changes, whatever they are, has not been the most effective approach.
The privacy changes come as Facebook tries to become a broadly used destination, competing not just with other social networks like Twitter and MySpace but also more established hubs like Google and Yahoo.
To do this, Facebook needs its 200 million-plus users to share content and interact with more people than their close friends and families.
"To be lots of things to lots of different kinds of people," Polonetsky said, Facebook needs to give its users, who come from different cultures, age groups and career levels, more control over what they share on the site.
The site will soon let users assign different privacy settings to each piece of information they make available, including photos, contact information and work info, as well as status updates, links and photos.
In another big change, the site is also getting rid of its regional networks. Facebook said those separate zones have led to too much confusion over which information can be widely seen or kept relatively private.
In the past, someone who joined a New York network, for example, could inadvertently make personal information available to everyone else in that network, including complete strangers.
by the associated press
Privacy has been a central, often thorny issue for Facebook because so many people use it to share personal information with their friends and family and beyond. But as the 5-year-old social networking service has expanded its user base and added features, its privacy controls have grown increasingly complicated.
The Palo Alto, Calif.-based company said Wednesday that the new settings will give people greater control over what photos, updates and personal details they share with their friends, family and strangers on Facebook and, eventually, the wider Internet.
To make the settings easier, Facebook is consolidating its existing six privacy pages and more than 30 settings onto a single privacy page. It will also standardize the options for each setting so the choices are always the same, something that hasn't always been the case.
That means that for various pieces of content, users will be able to click on a lock icon to choose whether to show it to everyone, only their friends, friends of friends, members of professional or school networks or people on a customized list.
Previously, users had to navigate page after page to exclude, if they want, bosses or co-workers from seeing their photo albums, status updates or shared links. And because the privacy settings were dispersed on different pages, even after making a profile visible to friends only, the photos on that profile could remain public.
Facebook's chief privacy officer, Chris Kelly, said in a conference call with reporters that the changes don't have anything to do with advertising or the information Facebook is going to make available to advertisers.
Rather, he said, the site wants people "to be able to share information with as many or as few people as they choose."
One of Facebook's most notable privacy mishaps was a tracking tool called "Beacon," which in late 2007 caught users off-guard by broadcasting information about their activities at other Web sites, including their purchase of holiday gifts for those who could see the information. The company ultimately allowed users to turn Beacon off.
Other changes, too, have often met with user uproar. Earlier this year Facebook let its users vote on the site's guiding principles after tens of thousands joined online protests over who controls the information they share on the site.
To prevent another backlash, Facebook will gradually roll out the latest changes. Facebook will start by testing them out on small groups of users and tweak the final version of the controls based on feedback. Facebook said it would take more than three weeks to reach every user.
"They are learning how to listen carefully to their users," said Jules Polonetsky, co-chairman and director of the Washington-based Future of Privacy Forum and former chief privacy officer at AOL. He added that Facebook has learned from the past that suddenly making big changes, whatever they are, has not been the most effective approach.
The privacy changes come as Facebook tries to become a broadly used destination, competing not just with other social networks like Twitter and MySpace but also more established hubs like Google and Yahoo.
To do this, Facebook needs its 200 million-plus users to share content and interact with more people than their close friends and families.
"To be lots of things to lots of different kinds of people," Polonetsky said, Facebook needs to give its users, who come from different cultures, age groups and career levels, more control over what they share on the site.
The site will soon let users assign different privacy settings to each piece of information they make available, including photos, contact information and work info, as well as status updates, links and photos.
In another big change, the site is also getting rid of its regional networks. Facebook said those separate zones have led to too much confusion over which information can be widely seen or kept relatively private.
In the past, someone who joined a New York network, for example, could inadvertently make personal information available to everyone else in that network, including complete strangers.
by the associated press
Crabtree & Evelyn files for Chapter 11 protection
NEW YORK (AP) — Soap and lotion seller Crabtree & Evelyn Ltd. says it filed for Chapter 11 protection on Wednesday, a victim of the recession and management missteps.
The pressure of repaying debt forced the company to file for bankruptcy, Acting President Stephen Bestwick said in a court filing. He said management changes had resulted in several shifts in strategy, hurting its wholesale business.
The company plans to use the court's protection to renegotiate leases with reluctant landlords in its effort to restructure and emerge from bankruptcy. The filing does not include operations outside the U.S.
The Woodstock, Conn.-based company reported in a court filing that it owed $46.2 million in debt and had $31.7 million in assets as of March 31. The privately held company runs 126 retail stores that sell bathroom products and gift basket items at Copley Place in Boston, Watertower Place in Chicago, The Mall at Short Hills in New Jersey, Embarcadero Center in San Francisco and Century City Mall in Los Angeles, among others.
It also sells Vera Bradley bags and wallets as well as LaSource, India Hicks Island Living and Naturals products.
The company first sold products under the Crabtree & Evelyn name in 1972 and its first retail store was opened in 1977. The store's name is derived from a short form of Crabapple Tree and the last name of John Evelyn, a Brit who wrote about conservation.
Parent company Crabtree & Evelyn Holdings Ltd. is a London-based holding company, which is in turn owned by investment holding company CE Holdings in the British Virgin Islands. CE Holdings is owned by KLKOI, another investment vehicle based in the Virgin Islands. KLKOI operates rubber plantations and manufactures oleochemicals, which are chemicals derived from oils and fats.
Other major retailers that have filed for bankruptcy during the current downturn include Steve & Barry's, Eddie Bauer, Filene's Basement, Linens 'N Things, Mervyn's and Circuit City Stores Inc.
Bestwick said he hoped the reorganization would help Crabtree & Evelyn continue its "tradition of English-style elegance."
It filed its case in the Southern District of New York.
by the associated press
The pressure of repaying debt forced the company to file for bankruptcy, Acting President Stephen Bestwick said in a court filing. He said management changes had resulted in several shifts in strategy, hurting its wholesale business.
The company plans to use the court's protection to renegotiate leases with reluctant landlords in its effort to restructure and emerge from bankruptcy. The filing does not include operations outside the U.S.
The Woodstock, Conn.-based company reported in a court filing that it owed $46.2 million in debt and had $31.7 million in assets as of March 31. The privately held company runs 126 retail stores that sell bathroom products and gift basket items at Copley Place in Boston, Watertower Place in Chicago, The Mall at Short Hills in New Jersey, Embarcadero Center in San Francisco and Century City Mall in Los Angeles, among others.
It also sells Vera Bradley bags and wallets as well as LaSource, India Hicks Island Living and Naturals products.
The company first sold products under the Crabtree & Evelyn name in 1972 and its first retail store was opened in 1977. The store's name is derived from a short form of Crabapple Tree and the last name of John Evelyn, a Brit who wrote about conservation.
Parent company Crabtree & Evelyn Holdings Ltd. is a London-based holding company, which is in turn owned by investment holding company CE Holdings in the British Virgin Islands. CE Holdings is owned by KLKOI, another investment vehicle based in the Virgin Islands. KLKOI operates rubber plantations and manufactures oleochemicals, which are chemicals derived from oils and fats.
Other major retailers that have filed for bankruptcy during the current downturn include Steve & Barry's, Eddie Bauer, Filene's Basement, Linens 'N Things, Mervyn's and Circuit City Stores Inc.
Bestwick said he hoped the reorganization would help Crabtree & Evelyn continue its "tradition of English-style elegance."
It filed its case in the Southern District of New York.
by the associated press
SEC approves ruling on pay disclosure for TARP firms
WASHINGTON (AP) — The Securities and Exchange Commission on Wednesday unanimously approved rules requiring greater transparency for executive compensation at bailed-out firms and all public companies.
In an open meeting, the panel voted 5-0 for a rule requiring firms that received government bailouts to let shareholders vote on executive pay. The SEC also voted to make all public companies give shareholders more information about pay policies, risk management and corporate governance.
Congress mandated the rule for participants in the Troubled Asset Relief Program, the $700 billion financial bailout. Known as "say-on-pay," it gives shareholders the opportunity to vote on companies' compensation practices, although the votes can be nonbinding.
The new rules must go through a two-month public comment period before they can be enacted.
The broader rule includes a range of requirements: Companies would have to describe how compensation policies relate to risk; explain the qualifications of directors, executives and nominees; and state whether compensation consultants might have conflicts of interest.
The aim is to create "better, more timely disclosure, not simply additional disclosure," SEC Chairman Mary Schapiro said at the meeting.
Responding to commissioners' concerns that proxy statements already are too long and complex for most shareholders to understand, SEC staff members said the benefit of greater transparency outweighs the problem of slightly longer filings.
The commission last approved an overhaul of executive compensation disclosure rules in 2006. That move required companies to disclose their executives' pay and perks in greater detail and required noting the date of stock option grants. At the time, corporate America was gripped by a scandal over the backdating of option awards.
Those rules took effect in late 2006 and forced much greater disclosure starting with companies' annual statements for that year.
The proposal approved Wednesday likewise addresses concerns related to current concerns in the securities markets. The financial crisis has highlighted the danger of compensation practices that reward excessive risk.
Investors also are clamoring for more transparency from boards of directors, and about risk management practices. Both would be required under the new rule.
In a separate vote, the SEC accepted a proposed New York Stock Exchange rule to prevent brokers from voting shares on behalf of their clients, since brokers do not have a direct financial interest in the companies.
Some commissioners expressed concerns about the unintended effects of the rule. They suggested that it could disenfranchise investors who are accustomed to letting brokers represent their interests.
The proposal eventually gained approval from the SEC, which must clear all stock exchange rule changes.
by the associated press
In an open meeting, the panel voted 5-0 for a rule requiring firms that received government bailouts to let shareholders vote on executive pay. The SEC also voted to make all public companies give shareholders more information about pay policies, risk management and corporate governance.
Congress mandated the rule for participants in the Troubled Asset Relief Program, the $700 billion financial bailout. Known as "say-on-pay," it gives shareholders the opportunity to vote on companies' compensation practices, although the votes can be nonbinding.
The new rules must go through a two-month public comment period before they can be enacted.
The broader rule includes a range of requirements: Companies would have to describe how compensation policies relate to risk; explain the qualifications of directors, executives and nominees; and state whether compensation consultants might have conflicts of interest.
The aim is to create "better, more timely disclosure, not simply additional disclosure," SEC Chairman Mary Schapiro said at the meeting.
Responding to commissioners' concerns that proxy statements already are too long and complex for most shareholders to understand, SEC staff members said the benefit of greater transparency outweighs the problem of slightly longer filings.
The commission last approved an overhaul of executive compensation disclosure rules in 2006. That move required companies to disclose their executives' pay and perks in greater detail and required noting the date of stock option grants. At the time, corporate America was gripped by a scandal over the backdating of option awards.
Those rules took effect in late 2006 and forced much greater disclosure starting with companies' annual statements for that year.
The proposal approved Wednesday likewise addresses concerns related to current concerns in the securities markets. The financial crisis has highlighted the danger of compensation practices that reward excessive risk.
Investors also are clamoring for more transparency from boards of directors, and about risk management practices. Both would be required under the new rule.
In a separate vote, the SEC accepted a proposed New York Stock Exchange rule to prevent brokers from voting shares on behalf of their clients, since brokers do not have a direct financial interest in the companies.
Some commissioners expressed concerns about the unintended effects of the rule. They suggested that it could disenfranchise investors who are accustomed to letting brokers represent their interests.
The proposal eventually gained approval from the SEC, which must clear all stock exchange rule changes.
by the associated press
Oil prices decline
NEW YORK (AP) — Oil prices fell Wednesday despite another decline in crude supply, with lingering doubts about whether people and businesses will be using more energy anytime soon.
Crude supplies have fallen in seven out of the past eight weeks, according to a government report Wednesday.
Benchmark crude for August delivery fell 58 cents to settle at $69.31 a barrel on the New York Mercantile Exchange with one trading day left in a holiday-shortened week. In London, Brent prices lost 51 cents to settle at $68.79 a barrel on the ICE Futures exchange.
All major fuel futures fell on Nymex Wednesday, and gasoline led the way. Average retail gasoline prices have now fallen for 10 straight days.
The Energy Department's Energy Information Administration said in its weekly report that the massive surplus of oil in the United States continued to shrink last week. Crude supplies fell more than some expected, losing 3.7 million barrels for the week ended June 26.
Falling supplies are part of the reason energy prices have been rising for months, but that doesn't necessarily mean energy consumption is rebounding strongly.
Some of the biggest users of energy, heavy industry and manufacturing, have cut thousands of jobs. Many of the people who have lost jobs are no longer commuting because the can't find work, meaning they aren't using as much gas.
Crude levels are falling, but not necessarily because more is being used. Imports are falling. Crude imports over the last four weeks are down nearly 800,000 barrels per day.
Oil exporting countries slashed production after the global economic downturn sent crude prices plunging from near $150 per barrel last summer to just above $30 per barrel by December.
While prices have been surging for two months, a lot of that has been driven by money from Wall Street that is using crude only to hedge against inflation.
"There are some people, like me, who think 'So, what if there's less oil? There's still plenty out there," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
Retail gasoline prices have slipped from their peak of $2.693 a gallon on Father's Day. Pump prices lost another 0.3 cents overnight to a new national average of $2.63 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.
A gallon of regular gas is 11.8 cents more expensive than last month, but last year on this day, gasoline went for $4.09 per gallon on average.
In other Nymex trading, gasoline futures fell 4.3 cents to settle at $1.859 a gallon and heating oil for August delivery fell 2.2 to settle at $1.7657 a gallon. Natural gas for August delivery lost 4 cents to settle at $3.795 per 1,000 cubic feet.
by the associated press
Crude supplies have fallen in seven out of the past eight weeks, according to a government report Wednesday.
Benchmark crude for August delivery fell 58 cents to settle at $69.31 a barrel on the New York Mercantile Exchange with one trading day left in a holiday-shortened week. In London, Brent prices lost 51 cents to settle at $68.79 a barrel on the ICE Futures exchange.
All major fuel futures fell on Nymex Wednesday, and gasoline led the way. Average retail gasoline prices have now fallen for 10 straight days.
The Energy Department's Energy Information Administration said in its weekly report that the massive surplus of oil in the United States continued to shrink last week. Crude supplies fell more than some expected, losing 3.7 million barrels for the week ended June 26.
Falling supplies are part of the reason energy prices have been rising for months, but that doesn't necessarily mean energy consumption is rebounding strongly.
Some of the biggest users of energy, heavy industry and manufacturing, have cut thousands of jobs. Many of the people who have lost jobs are no longer commuting because the can't find work, meaning they aren't using as much gas.
Crude levels are falling, but not necessarily because more is being used. Imports are falling. Crude imports over the last four weeks are down nearly 800,000 barrels per day.
Oil exporting countries slashed production after the global economic downturn sent crude prices plunging from near $150 per barrel last summer to just above $30 per barrel by December.
While prices have been surging for two months, a lot of that has been driven by money from Wall Street that is using crude only to hedge against inflation.
"There are some people, like me, who think 'So, what if there's less oil? There's still plenty out there," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service.
Retail gasoline prices have slipped from their peak of $2.693 a gallon on Father's Day. Pump prices lost another 0.3 cents overnight to a new national average of $2.63 a gallon, according to auto club AAA, Wright Express and Oil Price Information Service.
A gallon of regular gas is 11.8 cents more expensive than last month, but last year on this day, gasoline went for $4.09 per gallon on average.
In other Nymex trading, gasoline futures fell 4.3 cents to settle at $1.859 a gallon and heating oil for August delivery fell 2.2 to settle at $1.7657 a gallon. Natural gas for August delivery lost 4 cents to settle at $3.795 per 1,000 cubic feet.
by the associated press
Lear prepping for bankruptcy
NEW YORK (AP) — Automotive parts supplier Lear Corp. said Wednesday it is preparing to file for Chapter 11 bankruptcy protection and has lined up financing to fund its operations while under court protection.
Lear, which makes automotive seating systems and electronics, said it is still negotiating with lenders and bondholders for additional support for its restructuring plan. In the meantime, the company said it has a commitment for $500 million in loans to finance its bankruptcy from a group of lenders led by J.P. Morgan and Citigroup.
Lear spokesman Mel Stephens declined to say how many of its lenders are board with the Chapter 11 plan, how much more support it is seeking or when or where the Southfield, Mich.-based company plans to file for court protection.
"We intend to complete the restructuring as quickly as possible and emerge as an even stronger and more competitive partner to our customers," Lear CEO Bob Rossiter said in a statement.
Lear said it expects to default on a $38 million interest payment that would service its 8.5 percent senior notes due 2013 and its 8.75 percent senior notes due 2016. A 30-day grace period on the payment expires on Thursday, the company said.
Lear said its operations outside the United States would be unaffected by a bankruptcy protection filing.
A filing for Lear would make it the first major automotive parts maker to seek court protection since Visteon Corp., the former parts arm of Ford Motor Co., filed for Chapter 11 in May. Parts suppliers have been battered by the economic downturn as consumers continue to shun new car purchases and automakers slash production.
Lear in particular is heavily dependent on the slumping North American and European auto markets, with 36 percent of its sales coming from North America and 49 percent coming from Europe.
Lear, which posted $13.6 billion in sales for 2008, is a key supplier for both General Motors Corp. and Ford Motor Co. The pair represent the company's two largest customers and account for a combined 40 percent of its sales.
Lear is also one of Ford's key component and service suppliers, part of Ford's Aligned Business Framework, which increases the automaker's collaboration with the companies.
Auto sales in June continued to remain troubled though the downturn that has plagued the industry for at least a year showed signs of easing, according to monthly sales reports from carmakers Wednesday. Industrywide sales fell 28 percent in June, according to Autodata Corp. Volumes are down 35 percent the first half of the year.
Shares of Lear fell 17 cents, or 35 percent, to 31 cents in after-hours trading, following a loss of 2 cents, or 4 percent, at its close Wednesday of 48 cents.
by the associated press
Lear, which makes automotive seating systems and electronics, said it is still negotiating with lenders and bondholders for additional support for its restructuring plan. In the meantime, the company said it has a commitment for $500 million in loans to finance its bankruptcy from a group of lenders led by J.P. Morgan and Citigroup.
Lear spokesman Mel Stephens declined to say how many of its lenders are board with the Chapter 11 plan, how much more support it is seeking or when or where the Southfield, Mich.-based company plans to file for court protection.
"We intend to complete the restructuring as quickly as possible and emerge as an even stronger and more competitive partner to our customers," Lear CEO Bob Rossiter said in a statement.
Lear said it expects to default on a $38 million interest payment that would service its 8.5 percent senior notes due 2013 and its 8.75 percent senior notes due 2016. A 30-day grace period on the payment expires on Thursday, the company said.
Lear said its operations outside the United States would be unaffected by a bankruptcy protection filing.
A filing for Lear would make it the first major automotive parts maker to seek court protection since Visteon Corp., the former parts arm of Ford Motor Co., filed for Chapter 11 in May. Parts suppliers have been battered by the economic downturn as consumers continue to shun new car purchases and automakers slash production.
Lear in particular is heavily dependent on the slumping North American and European auto markets, with 36 percent of its sales coming from North America and 49 percent coming from Europe.
Lear, which posted $13.6 billion in sales for 2008, is a key supplier for both General Motors Corp. and Ford Motor Co. The pair represent the company's two largest customers and account for a combined 40 percent of its sales.
Lear is also one of Ford's key component and service suppliers, part of Ford's Aligned Business Framework, which increases the automaker's collaboration with the companies.
Auto sales in June continued to remain troubled though the downturn that has plagued the industry for at least a year showed signs of easing, according to monthly sales reports from carmakers Wednesday. Industrywide sales fell 28 percent in June, according to Autodata Corp. Volumes are down 35 percent the first half of the year.
Shares of Lear fell 17 cents, or 35 percent, to 31 cents in after-hours trading, following a loss of 2 cents, or 4 percent, at its close Wednesday of 48 cents.
by the associated press
GM’s top executive, ‘new’ company bankcrucy
NEW YORK — General Motors’ Chief Executive was grilled by a string of lawyers Tuesday about his company’s bid to sell its "good” parts into a new company and emerge from bankruptcy protection.
GM, whose June 1 filing for bankruptcy protection was the fourth-largest in U.S. history, is hoping to avoid a lengthy sale hearing that could postpone its emergence from Chapter 11. Last month, objections from a group of bondholders and others dragged out rival Chrysler LLC’s sale hearing for three days.
At a packed Manhattan courthouse Tuesday, Fritz Henderson was questioned for around five hours by attorneys for the various parties challenging the sale, including bondholders, consumer groups and unions.
Despite U.S. Judge Robert Gerber’s urging the attorneys to keep their arguments concise and to avoid redundancies, the hearing dragged on as a parade of lawyers made their way up to the podium.
"I think people have forgot why we’re here and what we have to accomplish,” Gerber said sharply. "I’m not going to deny anybody due process, but I expect the questioning to be more focused.”
Henderson wasn’t fazed by his lengthy stay on the stand, answering questions quickly and directly for the most part.
When asked about the current condition of GM, Henderson testified that June sales were "slightly better than expected” excluding fleet sales.
Fate of claims
Consumer groups and several individuals with product-related liability claims are objecting to the sale because people with pending product-related liability claims against GM will be forced to seek compensation from "Old GM,” the collection of mostly unprofitable assets leftover from the sale where there likely will be nothing left to pay their claims.
Early on in the hearing, Mark Salzberg, an attorney for a group of bondholders, questioned why GM would opt for a sale plan instead of a restructuring plan, charging that the automaker took that route to make it harder for its creditors to negotiate.
But Harvey Miller, an attorney from GM, questioned the validity of the bondholder group’s challenge, noting that it only has three members, one of which bought his bonds for 2 cents on the dollar, while the other two spent no more than 20 cents on the dollar for theirs.
Besides the bondholders, a trio of labor unions are trying to block the sale. Unlike the UAW, which brokered a deal for a stake in the company, those unions say they won’t have anything to pay for retiree health care.
Henderson said retiree benefits for the three unions cost GM about $26 million a month.
by the associated press
GM, whose June 1 filing for bankruptcy protection was the fourth-largest in U.S. history, is hoping to avoid a lengthy sale hearing that could postpone its emergence from Chapter 11. Last month, objections from a group of bondholders and others dragged out rival Chrysler LLC’s sale hearing for three days.
At a packed Manhattan courthouse Tuesday, Fritz Henderson was questioned for around five hours by attorneys for the various parties challenging the sale, including bondholders, consumer groups and unions.
Despite U.S. Judge Robert Gerber’s urging the attorneys to keep their arguments concise and to avoid redundancies, the hearing dragged on as a parade of lawyers made their way up to the podium.
"I think people have forgot why we’re here and what we have to accomplish,” Gerber said sharply. "I’m not going to deny anybody due process, but I expect the questioning to be more focused.”
Henderson wasn’t fazed by his lengthy stay on the stand, answering questions quickly and directly for the most part.
When asked about the current condition of GM, Henderson testified that June sales were "slightly better than expected” excluding fleet sales.
Fate of claims
Consumer groups and several individuals with product-related liability claims are objecting to the sale because people with pending product-related liability claims against GM will be forced to seek compensation from "Old GM,” the collection of mostly unprofitable assets leftover from the sale where there likely will be nothing left to pay their claims.
Early on in the hearing, Mark Salzberg, an attorney for a group of bondholders, questioned why GM would opt for a sale plan instead of a restructuring plan, charging that the automaker took that route to make it harder for its creditors to negotiate.
But Harvey Miller, an attorney from GM, questioned the validity of the bondholder group’s challenge, noting that it only has three members, one of which bought his bonds for 2 cents on the dollar, while the other two spent no more than 20 cents on the dollar for theirs.
Besides the bondholders, a trio of labor unions are trying to block the sale. Unlike the UAW, which brokered a deal for a stake in the company, those unions say they won’t have anything to pay for retiree health care.
Henderson said retiree benefits for the three unions cost GM about $26 million a month.
by the associated press
Walmart agrees Obama’s health insurance proposals
WASHINGTON — Walmart is the latest traditionally Republican-leaning businesses to embrace key portions of President Barack Obama’s bid to overhaul health care. It’s a trend that could complicate opponents’ efforts to build a united front when Congress ramps up its work on the issue.
Walmart, the nation’s largest private employer, Tuesday endorsed the idea of requiring large companies to offer health insurance to their workers. The proposal is central to Obama’s hopes of covering the nation’s nearly 50 million uninsured and is disliked by some business groups.
Walmart was joined by a major labor union that sometimes has criticized the company’s relatively stingy employee benefits.
Change of position
The big retailer is not the only one-time opponent of health care revisions to embrace at least some aspects of Obama’s proposals. The major group representing pharmaceutical makers recently said it would reduce senior citizens’ costs for prescription drugs by $80 billion over 10 years. And major groups representing doctors, hospitals and other providers have pledged to reduce health care costs by large amounts.
Nearly all these groups opposed efforts to overhaul the nation’s health care system during the Clinton administration in 1993-94. But with better prospects for a health care bill this time, many businesses and industries want to be part of the plan.
by the associated press
Walmart, the nation’s largest private employer, Tuesday endorsed the idea of requiring large companies to offer health insurance to their workers. The proposal is central to Obama’s hopes of covering the nation’s nearly 50 million uninsured and is disliked by some business groups.
Walmart was joined by a major labor union that sometimes has criticized the company’s relatively stingy employee benefits.
Change of position
The big retailer is not the only one-time opponent of health care revisions to embrace at least some aspects of Obama’s proposals. The major group representing pharmaceutical makers recently said it would reduce senior citizens’ costs for prescription drugs by $80 billion over 10 years. And major groups representing doctors, hospitals and other providers have pledged to reduce health care costs by large amounts.
Nearly all these groups opposed efforts to overhaul the nation’s health care system during the Clinton administration in 1993-94. But with better prospects for a health care bill this time, many businesses and industries want to be part of the plan.
by the associated press
Consumer agency might police American's credit
WASHINGTON — President Barack Obama asked Congress on Tuesday to create an agency to police the fine print on consumer products, such as credit cards and mortgages, and determine what fees, penalties and interest rates are fair.
The Consumer Financial Protection Agency would be in charge of regulating those products in the same way other government agencies regulate the safety of drugs, food and toys.
Obama said Americans are demanding it.
"Those ridiculous contracts with pages of fine print that no one can figure out — those things will be a thing of the past,” the president said in a statement accompanying the 152-page draft bill. "And enforcement will be the rule, not the exception.”
The CFPA is part of Obama’s broader plan to increase oversight of the financial industry and eliminate regulatory gaps believed to have contributed to the economic crisis.
The agency would be dedicated to protecting consumers when buying mortgages, using credit cards and taking out high-rate "payday loans.” It also would monitor terms set on savings, checking and debit card accounts, including overdraft charges.
Warning labels?
Under the plan, lenders would be required to be up front about their products and compare them to less risky, "plain vanilla” options. The agency potentially could require a kind of warning label on such financial products as mortgages with payments that balloon in size.
The agency’s reach would not extend to investment products such as mutual funds and other services already regulated by the federal government. Instead, it would focus on regulating a market that so far mostly has escaped it. Predatory lending is blamed for contributing to the housing crisis that roiled Wall Street and resulted in a $700 billion taxpayer bailout for banks.
Limiting options?
Republicans say setting strict rules on the consumer market will limit options and potentially increase the cost of financial products as banks try to make up for lost revenue.
"The proposed CFPA appears to be premised on the idea that Washington is better at making financial decisions for all Americans than leaving that choice up to individual Americans,” said Rep. Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee.
Elizabeth Warren, a Harvard University professor who long has advocated creation of a consumer-protection agency, said she envisions a system that would allow products to remain available as long as lenders are up front and concise about their terms.
"Most of the bad products were marketed by trickery,” she said.
Likewise, Treasury Department officials said legislation explicitly requires the CFPA to consider the burden any new rule would place on a financial institution and whether it would restrict consumer access to credit.
by the associated press
The Consumer Financial Protection Agency would be in charge of regulating those products in the same way other government agencies regulate the safety of drugs, food and toys.
Obama said Americans are demanding it.
"Those ridiculous contracts with pages of fine print that no one can figure out — those things will be a thing of the past,” the president said in a statement accompanying the 152-page draft bill. "And enforcement will be the rule, not the exception.”
The CFPA is part of Obama’s broader plan to increase oversight of the financial industry and eliminate regulatory gaps believed to have contributed to the economic crisis.
The agency would be dedicated to protecting consumers when buying mortgages, using credit cards and taking out high-rate "payday loans.” It also would monitor terms set on savings, checking and debit card accounts, including overdraft charges.
Warning labels?
Under the plan, lenders would be required to be up front about their products and compare them to less risky, "plain vanilla” options. The agency potentially could require a kind of warning label on such financial products as mortgages with payments that balloon in size.
The agency’s reach would not extend to investment products such as mutual funds and other services already regulated by the federal government. Instead, it would focus on regulating a market that so far mostly has escaped it. Predatory lending is blamed for contributing to the housing crisis that roiled Wall Street and resulted in a $700 billion taxpayer bailout for banks.
Limiting options?
Republicans say setting strict rules on the consumer market will limit options and potentially increase the cost of financial products as banks try to make up for lost revenue.
"The proposed CFPA appears to be premised on the idea that Washington is better at making financial decisions for all Americans than leaving that choice up to individual Americans,” said Rep. Spencer Bachus of Alabama, the top Republican on the House Financial Services Committee.
Elizabeth Warren, a Harvard University professor who long has advocated creation of a consumer-protection agency, said she envisions a system that would allow products to remain available as long as lenders are up front and concise about their terms.
"Most of the bad products were marketed by trickery,” she said.
Likewise, Treasury Department officials said legislation explicitly requires the CFPA to consider the burden any new rule would place on a financial institution and whether it would restrict consumer access to credit.
by the associated press
Subscribe to:
Posts (Atom)