Working Title – more insanity from the real world of doing it the same way because everyone thinks it will work that way whether it does or not – US economic crisis

Wagoner never saw the ax coming in Washington
Mon Mar 30, 2009 8:24pm EDT

By John Crawley

WASHINGTON (Reuters) – Rick Wagoner, late of General Motors, never saw the ax coming.

When he arrived at the Treasury Department for a meeting last Friday with Obama administration’s autos task force, he was a 32-year GM veteran and a chief executive carrying the weight of the company’s wrenching restructuring on his 6-foot-4 frame. Pressure for him to quit last fall when he first approached Washington for a bailout had faded.

But Wagoner’s plan for a GM turnaround and a $16 billion bailout was rejected in the meeting and the company where he spent his entire professional life fell off his shoulders.

[ . . . ]

“We are left to look back and say that Wagoner’s appointment as both chairman and CEO in 2003 was little more than an act to ensure the dynasty of GM boardroom arrogance and failure continued,” said Howard Wheeldon, senior strategist at brokerage BGC Partners.

Obama last week cited years of corporate mismanagement as a factor for the U.S. auto industry’s decline. Wagoner presided over GM’s rapid deterioration in the past five years.

Wagoner has become the most-recognizable casualty of a once vaunted industry brought to its knees by a confluence of disastrous circumstances that coincided with the later years of his tenure. Some of the wreckage was out of Detroit’s control, but some of it — as President Barack Obama has said — was self inflicted.

“Yes, we were surprised,” Fritz Henderson, Wagoner’s former top deputy and now his replacement, said of the task force rejection of the company’s plan that he helped construct.

Wheeldon said Wagoner’s departure had been all but inevitable since the automaker sought government funds. At the time of the company’s $13.4 billion bailout last fall, Sen Christopher Dodd, chairman of a committee overseeing corporate rescue funds, had publicly called for Wagoner to step down.

(Reporting by John Crawley; Editing Bernard Orr)

http://www.reuters.com/article/topNews/idUSTRE52U03I20090331?sp=true

***

My note – what is it about the environments where these executives live and work that make it impossible to understand reality? How can they be so completely out of touch as to be surprised that their plans were off, and unable to understand that their actions and decisions have driven these companies into the ground?

The same is true with the bankers and financial industries, Wall Street firms and other large corporate structures. Its as if there is something about the way in which their “world” operates that prevents them from bringing the critical elements of reality to bear on their decisions even when their choices mean the difference between survival of the firm or its destruction.

How is that possible? If that were fixed – that one thing could go a long way to helping correct the damage that has been done over years of mismanaging these companies and their assets.

- cricketdiane, 03-30-09

***

Mr. Mario Draghi, Chairman
Financial Stability Forum
Bank for International Settlements
Centralbahnplatz 2
CH-4002 Basel
Switzerland
Dear Mr. Draghi:
I am pleased to send you the report of the Senior Supervisors Group, Leading-Practice Disclosures for Selected Exposures. This report responds to the Financial Stability Forum’s request that the Senior Supervisors Group undertake a review of disclosure practices regarding exposures to certain instruments that the marketplace now considers to be high-risk or to involve more risk than previously thought, including collateralized debt obligations, residential mortgage-backed securities, commercial mortgage-backed securities, other special purpose entities, and leveraged finance. Notwithstanding our focus on these particular exposures, we expect specific areas of interest to evolve with market developments.
The report highlights examples of leading-practice disclosures taken from a
nonscientific sample of documents posted to the public websites of twenty large, internationally oriented financial firms as of March 7, 2008. As such, the report does not address enhanced disclosures that the firms may have made through other means or after the review date. We also recognize that because firms have adopted different business strategies, not all of the examples will be relevant to every firm. Nonetheless, we expect that financial firms will find this review useful in assessing and enhancing their own disclosures.
Sincerely,
William L. Rutledge
Chairman

SENIOR SUPERVISORS GROUP

FRANCE
Banking Commission
GERMANY
Federal Financial
Supervisory Authority
SWITZERLAND
Federal Banking Commission
UNITED KINGDOM
Financial Services Authority
UNITED STATES
Board of Governors of the
Federal Reserve System
Federal Reserve Bank
of New York
Office of the Comptroller
of the Currency
Securities and Exchange
Commission

SENIOR SUPERVISORS GROUP
Transmittal letter

http://www.newyorkfed.org/newsevents/news/banking/2008/SSG_Leading_Practice_Disclosures.pdf

***

**

INTRODUCTION


The recent market turmoil has heightened the desirability for
financial firms to publicly disclose their exposures to certain
instruments that the marketplace now considers to be highrisk
or to involve more risk than previously thought, including
collateralized debt obligations (CDOs), residential mortgagebacked
securities (RMBS), commercial mortgage-backed
securities (CMBS), other special purpose entities (SPEs), and
leveraged finance.1 In response, many financial firms have
recently enhanced their disclosures of these exposures.2
In this context, this paper highlights some leading3
disclosure practices among twenty large, internationally
oriented financial firms – fifteen banks and five securities
firms – whose disclosure data we recently surveyed.4 Also
discussed briefly are the disclosure requirements for SPEs
imposed by accounting standards.
The results of the survey indicate that disclosure practices
can be enhanced without necessarily amending existing
disclosure requirements, as disclosure requirements allow firms
considerable discretion in how they convey information.
Moreover, we viewed disclosure broadly to include not only
information presented in public securities filings but also
information contained in earnings press releases and
accompanying presentation slides posted on the firms’ public
websites. Indeed, some of the leading disclosure practices
referenced in this paper were contained in advance or
supplementary material, which provides market participants
with more timely information on exposures of current
concern.

SUMMARY OF LEADING-PRACTICE
DISCLOSURES

The leading practices discussed here were observed in our
survey of the latest disclosures of twenty financial firms. Each
disclosure is presently made by at least one firm, although few
firms come close to making all of the disclosures. As such, the
disclosures represent leading practices across a variety of risks
and exposures, and some disclosures may not be relevant for
firms that do not have significant exposure to the activity.
Appendix B provides a general sense of the frequency of such
disclosures in our sample.
The disclosures are presented in the box on page 2 and are
described more fully in this section. In addition, for each
category of exposure, many of the surveyed firms provide the
following details:
• total exposure, including on- and off-balance-sheet
analysis, as well as funded and committed lines, if
applicable,


• exposure before and after hedging, and
• exposure before and after write-downs.

**

1 Effective public disclosures are central to market discipline. See, for example, Basel Committee on Banking Supervision, Enhancing Bank Transparency (September 1998), and Group of Thirty, Enhancing Public Confidence in Financial Reporting (2003).


2 In December 2007, the U.S. Securities and Exchange Commission sought to promote more effective disclosure of some of the exposures behind the recent market turmoil through a letter to selected financial firms asking them to consider disclosing a list of items associated with off-balance-sheet entities.
3 We use the term “leading” to mean most informative, with regard to both
quantity and quality of information (for example, the data should be
particularly useful to market participants in assessing the risks and returns
associated with investments in or exposures to the firm). See the papers by the Basel Committee and the Group of Thirty, cited in footnote 1, for discussions of the characteristics of effective disclosures.
4 See Appendix A for a list of the twenty firms. Data reviewed include annual
reports, quarterly reports, press releases, and slides that were publicly available
as of March 7, 2008.

http://www.newyorkfed.org/newsevents/news/banking/2008/SSG_Leading_Practice_Disclosures.pdf

***

Former AIG exec draws scrutiny

Published: March 30, 2009 at 8:12 PM

WASHINGTON, March 30 (UPI) — U.S. investigators are looking into possible criminal fraud by a former American International Group Inc. (NYSE:AFF) executive, ABC News reported Monday.

Federal prosecutors and FBI agents are investigating Joseph Cassano, 54, who ran AIG’s Financial Products Division, the U.S. network reported. The department lost hundreds of billions of dollars and Rep. Jackie Speier, D-Calif., told ABC Cassano “almost single-handedly is responsible for bringing AIG down and by reference the economy of this country.”

ABC said its own investigation determined Cassano set up dozens of companies — some off-shore — to keep transactions off AIG books and hidden from U.S. and British regulators.

Cassano was paid more than $300 million to run the AIG Financial Products Division, through which AIG insured junk quality loans valued at more than $1 trillion, ABC said. He was fired in 2008 after the losses were reported, but he continued to draw $1 million a month until Congress took up a bailout of AIG, using $180 billion in public funds.

[Etc.]

http://www.upi.com/Business_News/2009/03/30/Former_AIG_exec_draws_scrutiny/UPI-16961238458364/

***

****

U.S. pension agency lost big in market

Published: March 30, 2009 at 7:40 PM

WASHINGTON, March 30 (UPI) — The U.S. agency that insures pensions for 44 million Americans says it lost billions on investments made as the market headed down in 2008.

The Boston Globe reported Monday that the Pension Benefit Guaranty Corp. switched much of its $64 billion insurance fund into speculative investments, including real estate, private equity funds and stocks in emerging foreign markets.

The PBGC would not describe the extent to which its new investment strategy has been implemented or how the fund has performed since the financial downturn, the newspaper said.

However, the agency said its fund was down 6.5 percent — and stock-related investments were down 23 percent — as of Sept. 30, 2008, the end of its fiscal year. The Globe noted much of the current stock market decline has occurred since that date and the new investment strategy was scheduled to begin after Sept. 30.

[Etc.]

Charles E.F. Millard, who ran the agency under the administration of former President George W. Bush, told the Globe the new investment strategy “is not riskier than the old one.”

http://www.upi.com/Business_News/2009/03/30/US_pension_agency_lost_big_in_market/UPI-76351238456438/

***

Buffett’s favorite banker to leave Goldman Sachs
Mon Mar 30, 2009 5:47pm EDT

Trott’s departure comes as a parade of bankers leave big Wall Street firms to join boutique firms or companies that are not subject to compensation limits set by the U.S. government. Big banks have also shed thousands of jobs in the past year as the prolonged credit crisis puts the brakes on deal activity.

Goldman in particular has seen several senior bankers decamp, including media banker Joseph Ravitch, who earlier this month announced plans to leave. Energy banker William Wicker last month said he would jump to Morgan Stanley.

Also in February, Suzanne Donohoe, who ran Goldman’s asset management international unit, left to join Kohlberg Kravis Roberts & Co.

(Editing by Maureen Bavdek)

http://www.reuters.com/article/ousiv/idUSTRE52T6AM20090330

***

Sara Lee may divest household business
Mon Mar 30, 2009 6:15pm EDT

By Brad Dorfman

CHICAGO (Reuters) – Sara Lee (SLE.N) is considering the sale of its international household and personal care business after receiving some expressions of interest from potential suitors.

The business, which includes a mix of brands like Sanex body wash and Ambi Pur air fresheners, has about $2.3 billion in annual sales, or about 17 percent of the company’s total.

[ . . ]

Analysts have said the company could have to break up the business to sell it because it has such a wide range of products, which also include Kiwi shoe polish and Vapona insecticides.

Analysts have mentioned a host of possible buyers, including Reckitt Benckiser (RB.L) and Unilever (ULVR.L) (UNc.AS) in Europe, as well as Colgate-Palmolive Co (CL.N), S.C. Johnson & Son Inc and Procter & Gamble Co (PG.N) in the United States. All have declined or not been available for comment.

[ Etc. ]

http://www.reuters.com/article/innovationNews/idUSTRE52T3LK20090330

***

NEW YORK, March 28 (UPI) — The California public pension Calpers is demanding that the hedge funds in which it invests give it better terms, such as lower prices, a memo indicates.

The move by the giant pension fund, which has $5.9 billion in hedge fund investments, shows how financial backers of the formerly high-flying investment vehicles are unhappy because they have failed to live up to their promises of making handsome returns in good times or bad, The Wall Street Journal reported Saturday.

Calpers’ demands, contained in a March 11 memo obtained by the newspaper, were sent to the 26 hedge funds and nine funds of hedge funds. Some of the hedge funds on the list include Tremblant Capital, Atticus Capital and Och-Ziff Capital Management, the Journal said.

http://www.upi.com/Business_News/2009/03/28/Calpers_seeks_hedge_fund_concessions/UPI-14811238266679/

***

DETROIT, March 1 (UPI) — A drastic decline in General Motors Corp. (NYSE:GM)’s U.S. pension funds during a year-long period was due, in part, to questionable spending practices, experts say.

Pension Research Council Executive Director Olivia Mitchell said spending on employee buyout programs and benefit increases dropped the company’s pension funds from $20 billion in late 2007 to a $12.4 billion deficit a year later, the Detroit Free Press reported Sunday.

http://www.upi.com/Business_News/2009/03/01/GM_pension_spending_under_scrutiny/UPI-77701235938098/

***

Taking another art moment in the midst of the financial world meltdown – US and Global Economic Crisis – 2009

CricketDiane Art computer art - A Perfect World - 03-30-09

CricketDiane Art computer art - A Perfect World - 03-30-09

US economic crisis could have been prevented but choices were made contrary to good sense – it isn’t a lack of solutions – it is a lack of willingness to offend campaign supporters and big business friends

Enhancing Market and Institutional Resilience

On 10 October 2008, the Financial Stability Forum (FSF) presented to the G7 Finance Ministers and central bank Governors a follow-up report to its April Report on Enhancing Market and Institutional Resilience. The follow-up report reviews the implementation of the recommendations set forth by the April report in five areas:

  • Strengthened prudential oversight of capital, liquidity and risk management
  • Enhancing transparency and valuation
  • Changes in the role and uses of credit ratings
  • Strengthening the authorities’ responsiveness to risks
  • Robust arrangements for dealing with stress in the financial system

An exceptional amount of work is underway by national authorities and international bodies in each of these areas. The FSF will continue to facilitate coordination of these initiatives and oversee their timely implementation, thus preserving the advantages of integrated global financial markets and a level playing field across countries.

The follow-up report is available here.

The FSF Report on Enhancing Market and Institutional Resilience in April 2008 is available here.

**

12 Mar Press Release: The Financial Stability Forum meets in London.

**

***
Oct 2007

Progress in Implementing the Recommendations of the FSF Update Report on Highly Leveraged Institutions

http://www.fsforum.org/list/fsf_publications/tid_75/index.htm

***

My note – obviously not. If the guidelines had been instituted, we wouldn’t be having these economic downshifts. Some things just aren’t politics.

***

Ongoing and Recent Work Relevant to Sound Financial Systems

15 September 2008

A series of status reports, collated by the FSF Secretariat, on recent and ongoing work relevant to strengthening financial systems by various international financial institutions, groupings and committees. This document is published twice yearly in March/April and September/October. The document is accompanied by a cover note which highlights and summarises those initiatives started during the previous six months, out of the initiatives in the document.

The document also includes an overview table of major ongoing international regulatory initiatives, including information on their schedules for public consultation and target dates for finalisation. This overview table is intended to provide a snapshot of key regulatory initiatives in the implementation, public consultation and development phases, along with an indication of their timing where applicable. It is intended to assist national authorities, firms and other stakeholders in keeping abreast of and better preparing for major regulatory initiatives as they are taken forward. Initiatives are included in this table, drawing on the advice of the principal international institutions, groupings and committees. The table captures only summary information on major initiatives, and is concerned largely with the timing of implementation.

http://www.fsforum.org/publications/on_0809.htm

[Main list of these documents:]

http://www.fsforum.org/list/fsf_publications/tid_68/index.htm

***

Links to FSF members and other institutions

Australia
Reserve Bank of Australia
www.rba.gov.au
Australian Securities and Investments Commission
www.asic.gov.au
Australian Prudential Regulation Authority
www.apra.gov.au
The Treasury
www.treasury.gov.au
Canada
Bank of Canada
www.bank-banque-canada.ca
Canada Deposit Insurance Corporation
www.cdic.ca
Ontario Securities Commission
www.osc.gov.on.ca
Office of the Superintendent of Financial Institutions
www.osfi-bsif.gc.ca
Department of Finance
www.fin.gc.ca
France
Banque de France
www.banque-france.fr
Autorité des Marchés Financiers
www.amf-france.org
Ministère de l’Economie
www.minefi.gouv.fr
Germany
Deutsche Bundesbank
www.bundesbank.de
Bundesanstalt für Finanzdienstleistungsaufsicht
www.bafin.de
Bundesministerium der Finanzen
www.bundesfinanzministerium.de
Hong Kong SAR
Hong Kong Monetary Authority
www.hkma.gov.hk
Office of the Commissioner of Insurance
www.info.gov.hk/oci
Securities & Futures Commission
www.hksfc.org.hk
The Treasury
www.info.gov.hk/tsy
Italy
Banca d’Italia
www.bancaditalia.it
Istituto per la Vigilanze sulle Assicurazioni Private e di Interesse Collettivo (ISVAP)
www.isvap.it
Commissione Nazionale per le Società e la Borsa
www.consob.it
Ministero dell’Economia e delle Finanze
www.tesoro.it
Japan
Bank of Japan
www.boj.or.jp
Financial Services Agency
www.fsa.go.jp
Ministry of Finance
www.mof.go.jp
The Netherlands
De Nederlandsche Bank
www.dnb.nl
Autoriteit Financiële Markten
www.afm.nl
Ministerie van Financiën
www.minfin.nl
Singapore
Monetary Authority of Singapore
www.mas.gov.sg
Ministry of Finance
www.mof.gov.sg
Switzerland
Swiss National Bank
www.snb.ch
United Kingdom
Bank of England
www.bankofengland.co.uk
Financial Services Authority
www.fsa.gov.uk
HM Treasury
www.hm-treasury.gov.uk
United States of America
Federal Deposit Insurance Corporation (FDIC)
www.fdic.gov
Office of the Comptroller of the Currency (OCC)
www.occ.treas.gov
Board of Governors of the Federal Reserve System
www.federalreserve.gov
Federal Reserve Bank of New York
www.newyorkfed.org/
U.S. Commodity Futures Trading Commission
www.cftc.gov
National Association of Insurance Commissioners (NAIC)
www.naic.org
U.S. Securities & Exchange Commission (SEC)
www.sec.gov
U.S. Department of Treasury
www.treasury.gov
International Organisations
Bank for International Settlements (BIS)
www.bis.org
European Central Bank (ECB)
www.ecb.int
International Monetary Fund (IMF)
www.imf.org
Organisation for Economic Coordination and Development (OECD)
www.oecd.org
The World Bank
www.worldbank.org
International standard-setting bodies and other groupings
Basel Committee on Banking Supervision (BCBS)
www.bis.org/bcbs/index.htm
Committee on the Global Financial System (CGFS)
www.bis.org/cgfs/index.htm
Committee on Payment and Settlement Systems (CPSS)
www.bis.org./cpss/index.htm
International Association of Insurance Supervisors (IAIS)
www.iaisweb.org
International Accounting Standards Board (IASB)
www.iasb.org
International Organization of Securities Commissions (IOSCO)
www.iosco.org
International Association of Deposit Insurers
www.iadi.org

http://www.fsforum.org/links/index.htm

***

Having an art moment in the midst of national and international crisis – my art thing of the day

CricketDiane Art - Zippity 3 - 03-30-09

CricketDiane Art - Zippity 3 - 03-30-09

When the farmers plant fewer crops to boost prices – huge problems will occur beyond what we have now – and some other uglier and uglier stuff happening today -

***

The key US crop is corn and traders forecast a drop in planting to 82-84m acres, down from last year’s 86m and 2007’s peak of 90.5m.

Farmers to cut US planting

By Javier Blas in London

Published: March 29 2009 20:04 | Last updated: March 30 2009 00:13

US farmers are set to sow fewer acres this spring with crops such as corn and wheat, breaking a string of four years of increases in a move likely to support agricultural commodities prices through the economic crisis.

The US Department of Agriculture will reveal its first acreage estimate on Tuesday in its Prospective Plantings report. Because the country exports half the world’s corn, a third of world soyabeans, and a fifth of the world’s wheat, changes in acreage and hence in output have a huge impact in global food prices.

[Etc.]

Ranchers are also expected to cut sharply their production of meat and poultry this season, the first simultaneous drop in animal protein output since 1973.

Corn prices have fallen to $3.90 a bushel, lower than last Junes’s record high of $7.65, because of lower demand. But prices remain above their 10-year average of $2.75 and the prospect of lower supplies is keeping forward prices for the next crop season at a premium above current spot levels.

[ . . . ]

Cotton planting is likely to hit its lowest level in 26 years as US farmers move away from the fibre amid low returns.

http://www.ft.com/cms/s/0/46f4a9da-1c8a-11de-977c-00144feabdc0.html

***

My note – this could be a disaster.

***

Blackstone Rejects SEC Request for Fund Data as Fortress Agrees

By Miles Weiss

March 30 (Bloomberg) — Blackstone Group LP, the world’s largest private-equity firm, rebuffed a request from securities regulators to publicly disclose the performance of its buyout and hedge funds while Fortress Investment Group LLC agreed.

The U.S. Securities and Exchange Commission asked both New York-based companies to include fund returns in their financial reports, according to letters the agency released earlier this month. Fortress did so in its annual report. Blackstone told the SEC it wouldn’t.

Buyout firms and hedge-fund managers are accustomed to operating in private, and the decisions by both companies to sell shares to the public in 2007 sparked debate over how much information they would divulge.

Returns are an important indicator of a firm’s ability to attract new cash from clients and increase revenue, said Conrad Weymann, managing partner at Mallory Capital Group LLC, a Darien, Connecticut-based investment bank.

The SEC asked Blackstone and Fortress last year to publish “performance information” in future filings. The SEC requested details including the name of each fund, the date it was formed, assets under management and net return for each period presented in the filing.

Daniel Bass, Fortress’s chief financial officer, responded in a Jan. 26 letter to the SEC that the company would “augment our disclosure” by providing a performance table for “all significant funds” in its annual report.

The chart in the company’s annual report, issued March 16, included returns on 25 private-equity funds and seven hedge funds with combined assets of about $29 billion at Dec. 31.

Blackstone’s March 2 annual report disclosed that the fair value of its private-equity funds had a net depreciation of 32 percent last year, compared with net appreciation of 16 percent in 2007.

Blackstone had about $91 billion in fee-earning assets under management at Dec. 31, including $25.5 billion in private- equity funds and $22.9 billion in real-estate funds. The remaining $42.6 billion was in hedge funds and funds that invest in hedge funds.

Blackstone Chief Financial Officer Laurence Tosi told the SEC in a Dec. 5 letter that disclosure of detailed performance data wasn’t required under applicable regulations and wasn’t a meaningful measurement of operating results.

“The individual rates of return have no direct impact on our financials and therefore we question the relevance to our investors,” Tosi said in the letter.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aNp8YOTj3PVk&refer=home

***

My note – so, therefore if a company doesn’t want to answer the SEC’s request for data – it just doesn’t have to? No wonder the SEC has let all this shit go on – even they don’t get answers when they demand them. Is that what is meant by “bull market” – it stands in its own crap, talks bull and does whatever it wants?

***

JPMorgan fell 3 percent to $26.57 in Germany, while Bank of America Corp. slumped 11 percent to $6.55. JPMorgan had a “tougher” month in March and Bank of America’s trading book “was not as good” as in the first two months of the year, chief executive officers Jamie Dimon and Kenneth Lewis told CNBC last week.

Citigroup dropped 8 percent to $2.41 in Germany, while Deutsche Bank fell 7.1 percent to 30.61 euros. Geithner said yesterday on the ABC News program “This Week” that some banks are going to need “large amounts of assistance”

A gauge of European banks in the Stoxx 600 retreated 5.3 percent. Spain mounted its first major bank rescue in 16 years as the state took over Caja Castilla-La Mancha after efforts to choreograph its purchase by a rival lender failed.

Switzerland’s biggest bank slipped 7 percent to 10.57 Swiss francs.

Barclays Plc dropped 8.4 percent to 159.2 pence, trimming last week’s 66 percent surge.

Societe Generale SA downgraded Barclays to “sell” from “hold,” saying the bank still needs 15 billion pounds ($21 billion) to 20 billion pounds of tangible common equity to adequately address “its excess leverage.”

GM dropped 20 percent to $2.90 in Germany.

A gauge of European automakers fell 6.2 percent for the biggest slump among 19 industry groups in the Stoxx 600. Daimler slid 7.3 percent to 19.31 euros.

PSA Peugeot Citroen lost 4.6 percent to 14.65 euros.

[Excerpted from:]

Stocks Drop, Treasuries Gain as U.S. Warns on Banks, Carmakers

By Sarah Jones

March 30 (Bloomberg) — Stocks slumped, while Treasuries and the dollar gained, as the Obama administration warned that some banks will need more government aid and bankruptcy may be the best option for General Motors Corp. and Chrysler LLC.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
Last Updated: March 30, 2009 04:45 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=ab.UG95l9nxQ&refer=home

***

TUESDAY, March 31

WASHINGTON – Senate Banking Committee meets to consider
credit card reform legislation introduced by Chairman
Christopher Dodd.

THURSDAY, April 2

LONDON – Leaders from established and emerging economies
meet under pressure to restore confidence and plot a pathway to
recovery out of economic crisis.

[Excerpted from:]

SNAPSHOT – Financial Crisis – 0755 GMT
Mon Mar 30, 2009 3:58am EDT
(Compiled by World Desk, Asia, +65 6870 3815)

http://www.reuters.com/article/wtUSInvestingNews/idINSNAPSHOT20090330

***

(Reuters) – American International Group (AIG.N) has cut or delayed payments to some of its real-estate ventures, potentially leaving the developers and their bankers in the lurch, the Wall Street Journal reported.

The paper, citing people familiar with the matter, said the insurer had halted payments to Alabama shopping-center developer Alex Baker, putting some 15 banks at risk of exposure to soured loans.

Affiliates of another developer, Mitchell L Morgan Management Inc, sued AIG in February for missed and delayed payments.

AIG Global Real Estate, an arm of the insurance company, has interests totaling more than $23 billion across 53 million square feet of real estate, the Journal said.

[Excerpted From:]

AIG delays funds to some real-estate ventures: report
Mon Mar 30, 2009 4:00am EDT

(Reporting by Vikram Subhedar in Bangalore; editing by John Stonestreet)

http://www.reuters.com/article/ousiv/idUSTRE52T1GE20090330

***

Regulators see new role for Fannie, Freddie: report
Mon Mar 30, 2009 3:56am EDT

(Reuters) – The regulator of U.S. government-controlled Fannie Mae and Freddie Mac is looking at ways the two firms might help finance small mortgage banks hobbled by a dearth of credit, the Wall Street Journal reported.

The WSJ, quoting a Federal Housing Finance Agency (FHFA) spokeswoman, said the regulator is exploring options through which the two mortgage finance companies might help revive the market for warehouse loans – a key source of funds to mortgage banks.

[Etc.]

http://www.reuters.com/article/newsOne/idUSTRE52T0XP20090330

***

My note – If there were a chart of how many places from our government that are making moneys, loans, grants, no-bid purchases of toxic assets and other purchases to aid banks, I think it would look like a bullet riddled body or a sieve punched full of holes to make them bigger than they were originally. Is there any agency, program or “regulator” that isn’t giving away money to banks and Wall Street firms?

***

MIAMI, March 29 (UPI) — Health insurance company guidelines urge brokers to reject applicants with a wide range of pre-existing conditions, The Miami Herald reported Sunday.

The guidelines are confidential, but the newspaper said it was able to find several posted on the Internet, and they reveal that insurers advise rejecting applicants with diabetes, hepatitis C, multiple sclerosis, schizophrenia, quadriplegia, Parkinson’s disease and AIDS/HIV, among many other conditions.

They also recommended automatic rejection of applicants with gallstones, rheumatoid arthritis, alcohol-related problems, chronic bronchitis, severe migraines, those with a cardiac pacemaker installed within the last two years and people who take a wide range of prescription drugs.

Insurers whose guidelines were found on the Web included Vista, Wellpoint, Assurant Health and Blue Cross Blue Shield of Nebraska, the newspaper reported.

http://www.upi.com/Science_News/2009/03/29/Health_insurers_urge_rejection_for_many/UPI-38251238356523/

***

My note – Since they are basically not going to cover anybody that needs anything involving medical attention, what is the point of paying them for medical insurance? Is it just a new tax for being alive or should they have to actually cover medical needs?

***

http://www.reuters.com/article/GCA-autos/idUKTRE52T0AI20090330?virtualBrandChannel=10112&sp=true

TIMELINE – Major events in Rick Wagoner’s tenure as GM CEO
Mon Mar 30, 2009 2:39am EDT

(Reuters) – General Motors Chief Executive Rick Wagoner resigned under pressure from President Barack Obama’s administration on Sunday as the U.S. government prepared to announce a second bailout for the company and its smaller rival Chrysler LLC.

Wagoner took over as GM’s CEO in 2000, overseeing a 95 percent decline in market value for the nation’s largest automaker. GM has lost about $82 billion (57.8 billion pounds) since 2005 when its problems began to mount in the U.S. market.

My note – This is a really great concise timeline about the General Motors on-going death by a thousand cuts.

***

http://www.reuters.com/article/GCA-autos/idUKTRE52T0R920090330?virtualBrandChannel=10112&sp=true

FACTBOX: Key details from U.S. autos task force findings
Mon Mar 30, 2009 2:22am EDT

DETROIT (Reuters) – The U.S. task force overseeing the restructuring of the auto industry on Monday said the plans submitted by General Motors Corp and Chrysler failed to show how they could be viable.

GM will receive 60 days of additional working capital to resolve the situation and Chrysler, about 80 percent controlled by private equity firm Cerberus Capital Management, will have 30 days to complete an alliance with Fiat SpA.

The task force said an expedited bankruptcy process to help GM and Chrysler eliminate unsustainable debt loads may be the best path if out-of-court restructurings with creditors cannot be negotiated.

Key findings by the autos task force follow:

GENERAL MOTORS

The conclusion: GM’s plan would not provide viability over the long term even if the economy improved.

CHRYSLER

The conclusion: Chrysler cannot be viable over the long term as a stand-alone company and its plan contained a number of “unrealistic or overly optimistic” assumptions.

[Etc.]

***

http://www.bloomberg.com/apps/news?pid=20601087&sid=a5y6VOD80YP0&refer=home

Futures on the Dow Jones Euro Stoxx 50 Index, a benchmark for the euro region, slipped 2.3 percent to 1,993 at 7:17 a.m. in London. The U.K.’s FTSE 100 Index may drop 55, according to IG Markets, a betting firm. Futures on the Standard & Poor’s 500 Index dropped 2.2 percent.

“There may be a lack of confidence starting to creep in,” said Geoff Wilkinson, head of research at Mint Equities Ltd. in London. “Any bad news from the banks is going to be bad news for the indexes.”

The U.S. government’s comments on banks, GM and Chrysler helped push the yield on the 10-year Treasury note down five basis points to 2.71 percent, according to BGCantor Market Data, while the yen and the dollar climbed against the euro.

***

Brazil builds walls around Rio de Janeiro slums
Sat Mar 28, 2009 12:03pm EDT

RIO DE JANEIRO, March 28 (Reuters) – The government of Rio de Janeiro is building concrete walls to prevent sprawling slums from spreading farther into the picturesque hills of this world-famous tourist destination, an official said on Saturday.

Construction has begun in two favelas, or shantytowns, in the southern districts of Rio de Janeiro, a government spokeswoman told Reuters.

By year-end the Rio de Janeiro state government wants to build almost 7 miles (11 km) of walls to contain 19 communities. It will spend 40 million reais ($17.6 million) and have to relocate 550 houses, Lazzoli said.

Thousands of favelas sprung up throughout Rio de Janeiro and other major cities in recent decades, as millions of impoverished immigrants came from the countryside in search of jobs.

On Saturday the front page of the leading daily O Globo featured a picture of a gray wall beside a forest in Morro Dona Marta. Construction workers in blue overalls were seen with shovels and push carts. Middle-class apartment buildings are seen in the background.

Violence between gangs and with police periodically erupts beyond the favelas, forcing stores and roads in entire neighborhoods to shut down. Occasionally juvenile gangs ransack tourists on the beach in posh districts such as Ipanema or Leblon.

(Reporting by Raymond Colitt; Editing by Bill Trott)

http://www.reuters.com/article/newsOne/idUSN28291897

***

Spanish Court Weighs Inquiry on Torture for 6 Bush-Era Officials

By MARLISE SIMONS
Published: March 28, 2009

LONDON — A Spanish court has taken the first steps toward opening a criminal investigation into allegations that six former high-level Bush administration officials violated international law by providing the legal framework to justify the torture of prisoners at Guantánamo Bay, Cuba, an official close to the case said.

The case, against former Attorney General Alberto R. Gonzales and others, was sent to the prosecutor’s office for review by Baltasar Garzón, the crusading investigative judge who ordered the arrest of the former Chilean dictator Augusto Pinochet. The official said that it was “highly probable” that the case would go forward and that it could lead to arrest warrants.

The complaint under review also names John C. Yoo, the former Justice Department lawyer who wrote secret legal opinions saying the president had the authority to circumvent the Geneva Conventions, and Douglas J. Feith, the former under secretary of defense for policy.

Spain can claim jurisdiction in the case because five citizens or residents of Spain who were prisoners at Guantánamo Bay have said they were tortured there. The five had been indicted in Spain, but their cases were dismissed after the Spanish Supreme Court ruled that evidence obtained under torture was not admissible.

The 98-page complaint, a copy of which was obtained by The New York Times, is based on the Geneva Conventions and the 1984 Convention Against Torture, which is binding on 145 countries, including Spain and the United States. Countries that are party to the torture convention have the authority to investigate torture cases, especially when a citizen has been abused.

The complaint was prepared by Spanish lawyers, with help from experts in the United States and Europe, and filed by a Spanish human rights group, the Association for the Dignity of Prisoners.

The National Court in Madrid, which specializes in international crimes, assigned the case to Judge Garzón. His acceptance of the case and referral of it to the prosecutor made it likely that a criminal investigation would follow, the official said.

Even so, arrest warrants, if they are issued, would still be months away.

Gonzalo Boye, the Madrid lawyer who filed the complaint, said that the six Americans cited had had well-documented roles in approving illegal interrogation techniques, redefining torture and abandoning the definition set by the 1984 Torture Convention.

Secret memorandums by Mr. Yoo and other top administration lawyers helped clear the way for aggressive policies like waterboarding and other harsh interrogation techniques, which the C.I.A. director, the attorney general and other American officials have said amount to torture.

The other Americans named in the complaint were William J. Haynes II, former general counsel for the Department of Defense; Jay S. Bybee, Mr. Yoo’s former boss at the Justice Department’s Office of Legal Counsel; and David S. Addington, who was the chief of staff and legal adviser to Vice President Dick Cheney.

But Mr. Boye said that lawyers should be held accountable for the effects of their work. Noting that the association he represents includes many lawyers, he said: “This is a case from lawyers against lawyers. Our profession does not allow us to misuse our legal knowledge to create a pseudo-legal frame to justify, stimulate and cover up torture.”

[ . . . ]

This year for the first time, the United States used a law that allows it to prosecute torture in other countries. On Jan. 10, a federal court in Miami sentenced Chuckie Taylor, the son of the former Liberian president, to 97 years in a federal prison for torture, even though the crimes were committed in Liberia.

Last October, when the Miami court handed down the conviction, Attorney General Michael B. Mukasey applauded the ruling and said: “This is the first case in the United States to charge an individual with criminal torture. I hope this case will serve as a model to future prosecutions of this type.”

[ . . . ]

http://www.nytimes.com/2009/03/29/world/europe/29spain.html?em

***

Star Lobbyist Closes Up Shop as Criminal Inquiry Heats Up

By DAVID D. KIRKPATRICK and CHARLIE SAVAGE
Published: March 29, 2009

WASHINGTON — For most of the last three decades, the lobbyist Paul Magliocchetti might have been mistaken for an owner of the Alpine, a wood-paneled Italian restaurant across the Potomac River from Washington where he routinely presided over boisterous tables of lawmakers and their staff members.

That impresario act — pulling bottles from the private wine locker labeled “Mags” to entertain lawmakers at the clubby Capital Grille steakhouse, sending gift baskets or wine to lawmakers and their aides, or leasing each of his lobbyists a Lexus — helped Mr. Magliocchetti, a protégé of the powerful Representative John P. Murtha, build his lobbying firm into one of the 10 biggest in Washington.

Now, however, Mr. Magliocchetti’s generosity is coming to an abrupt halt: his firm, the PMA Group, is closing its doors next week, after reports that federal prosecutors had recently raided his office and his home.

And many on Capitol Hill, recalling the scandal that mushroomed around the lobbyist Jack Abramoff, are wondering who else will be ensnared in the investigation as prosecutors pore over the financial records and computer files of one of K Street’s most influential lobbyists, known both for the billions of dollars in earmarks he obtained for his clients and for his open hand toward those he sought to influence.

Former PMA staff members familiar with the inquiry say prosecutors’ initial questions have focused on the possibility that Mr. Magliocchetti used straw campaign contributors — a Florida sommelier and a golf club executive, for example, appear to have given large sums in coordination with PMA — as a front to funnel illegal donations to friendly lawmakers, a felony that could carry a minimum sentence of five years.

More alarming to lawmakers and aides, however, is that prosecutors may turn their attention to the dinners at the Alpine and Capital Grille or other gifts they might have accepted from Mr. Magliocchetti — potential violations of longstanding Congressional ethics rules that could lead to more serious bribery charges if linked to official acts.

But three former PMA lobbyists said it was only two years ago, more than a decade after the House passed ethics rules restricting lawmakers and staff members, that Mr. Magliocchetti brought in the outside lawyers to train his staff in compliance; Congress had just imposed new criminal penalties on lobbyists who furnish unethical gifts or meals to public officials.

The ethics code bars lawmakers or staff members from accepting free meals or gifts worth more than $50 or a total of more than $100 over the course of a year.

And several former PMA lobbyists and former Congressional staff members, speaking anonymously for fear of retaliation from lawmakers close to Mr. Magliocchetti, said that for decades he sought loopholes to shower food, drink and gifts on the members and staff members of the House defense appropriations subcommittee.

[ . . . ]

Mr. Magliocchetti helped pioneer the lucrative specialty of helping contractors lobby for military earmarks, the several billion dollars in pet spending items that members of the panel insert in annual spending bills, often with little oversight.

Mr. Magliocchetti came to know Mr. Murtha more than 20 years ago, working as a Navy budget analyst for the subcommittee during the Reagan boom in military budgets.

And when the aide left to start his lobbying firm in 1989, he helped Mr. Murtha recruit major military contractors to attend a new annual trade fair in Johnstown that became the cornerstone of the lawmaker’s effort to steer business to the area.

Mr. Magliocchetti set up shop at the busy intersection between political fund-raising and taxpayer spending, directing tens of millions of dollars in contributions to lawmakers while steering hundreds of millions of dollars in earmarked contracts back to his clients.

Since 1998, for example, employees of the firm and its clients have contributed more than $40 million to lawmakers, including more than $7.8 million to members on the House defense spending panel and $2.4 million to Mr. Murtha, its chairman. The same lawmakers, meanwhile, have helped finance hundreds of pet projects sought by PMA clients, including earmarks for more than $300 million in the military spending bill passed last year alone. And PMA, still owned by Mr. Magliocchetti until its collapse, grew into a K Street powerhouse with more than $15 million a year in lobbying fees.

[And more . . .]

http://www.nytimes.com/2009/03/30/us/politics/30pma.html?hp

***

My note – it just gets uglier and uglier.

***

***
Paul Magliocchetti

Paul Magliocchetti lives and/or works in
Arlington, VA
Paul Magliocchetti personal relations:
Rebecca DeRosa – spouse
Jennifer Magliocchetti – father
Mark Magliocchetti – father
Other current Paul Magliocchetti relationships:
PMA Group – principal
Paul Magliocchetti past relationships:
Nancy Magliocchetti – spouse
John P. Murtha – aide
Paul Magliocchetti connections, once removed:
Paul Magliocchetti is connected to …

http://www.muckety.com/Paul-Magliocchetti/31419.muckety

***
PMA Group
People related to PMA Group:
Paul Magliocchetti – principal
Other current PMA Group relationships:
180S LLC – lobby firm
21st Century Systems Inc. – lobby firm
AAI Corporation – lobby firm
Abt Associates, Inc. – lobby firm
Adaptive Methods – lobby firm
Advanced Acoustic Concepts – lobby firm
Advanced Concepts & Technologies International LLC – lobby firm
Aeroflex Wichita – lobby firm
Aerovironment, Inc. – lobby firm
Air Cruisers – lobby firm
Alphamicron – lobby firm
Altobridge Corp. – lobby firm
Ampex Data Systems – lobby firm
Applied Global Technologies – lobby firm
Apptis, Inc. – lobby firm
Ardiem Medical – lobby firm
Argon ST, Inc. – lobby firm
Badenoch LLC – lobby firm
Barat Education Foundation – lobby firm
BearingPoint Inc. – lobby firm
Boeing Company – lobby firm
CACI International Inc. – lobby firm
Calspan-University of Buffalo Research Center – lobby firm
Chang Industry, Inc. – lobby firm
Chemimage Corporation – lobby firm
Chemring Group, Inc. – lobby firm
Coda Octopus Group, Inc. – lobby firm
Comtech Systems – lobby firm
Concurrent Technologies Corp. – lobby firm
Conemaugh Health Systems – lobby firm
Connecticut Center for Advanced Technology – lobby firm
Consulting Network Inc. – lobby firm
Coronado (CA) – lobby firm
Cryptek Secure Communications – lobby firm
Crystal Is, Inc. – lobby firm
Dayton Development Coalition – lobby firm
Dominican University – lobby firm
Douglas Education Center – lobby firm
DRS Technologies, Inc. – lobby firm
Dynamics Research Corp. – lobby firm
EDO Corporation – lobby firm
EFJ, Inc. – lobby firm
Emcore Corp. – lobby firm
EMSolutions, Inc. – lobby firm
Engineered Arresting Systems Corp. – lobby firm
EVAS Worldwide – lobby firm
Fibergate – lobby firm
Fidelity Technologies Corp. – lobby firm
First-Light USA, LLC – lobby firm
General Atomics – lobby firm
General Aviation Manufacturers Association – lobby firm
General Dynamics Corporation – lobby firm
Gentex – lobby firm
Goodrich Corporation – lobby firm
H Squared Inc. – lobby firm
Health Net Federal Services – lobby firm
Healthwise – lobby firm
ICX Technologies – lobby firm
IHS Inc. – lobby firm
Imaging Systems Technology – lobby firm
Impact Instrumentation, Inc. – lobby firm
IMS Government Solutions – lobby firm
Information Technology & Applications Corporation – lobby firm
Innovative Concepts – lobby firm
Integrated Wave Technologies, Inc. – lobby firm
Intelligent Optical Systems, Inc. – lobby firm
Intevac – lobby firm
Isothermal Systems Research, Inc. – lobby firm
Johnstown Welding & Fabrication Industries – lobby firm
L-3 Communications Corp. – lobby firm
Lifecell Corp. – lobby firm
Lockheed Martin Corporation – lobby firm
Maine Marine Manufacturing – lobby firm
Malibu Research – lobby firm
Metamaterials, LLC – lobby firm
M.I.C. Industries, Inc. – lobby firm
Mobilvox – lobby firm
Mount Aloysius College – lobby firm
MTS Technologies, Inc. – lobby firm
National Center for Defense Robotics – lobby firm
National Center for Simulation – lobby firm
Netideas Inc. – lobby firm
Neuromonics, Inc. – lobby firm
New Jersey Center for Biomaterials – lobby firm
Noble Fiber Technologies – lobby firm
Northfield Laboratories – lobby firm
Nuvant Systems – lobby firm
Ocean Power Technologies, Inc. – lobby firm
Ocean Systems Engineering Corp. – lobby firm
Optimal Solutions & Technology – lobby firm
Otologics LLC – lobby firm
OtoMelara – lobby firm
Parametric Technology Corporation – lobby firm
Pioneer Aerospace Corp. – lobby firm
Planning Systems, Inc. – lobby firm
Pocal Industries – lobby firm
PPG Industries Inc. – lobby firm
Premier Micronutrient Corp. – lobby firm
ProLogic, Inc. – lobby firm
QTL Biosystems – lobby firm
Quallion – lobby firm
Radix Technologies – lobby firm
Raysat Antenna Systems, LLC – lobby firm
Research International – lobby firm
Reservoir Labs, Inc. – lobby firm
Romanyk Consulting – lobby firm
Samueli Institute – lobby firm
Sbarro Health Research Organization – lobby firm
Seton Hill University – lobby firm
Sierra Nevada Corp. – lobby firm
Silvaco International – lobby firm
Smiths Detection – lobby firm
Spatial Intergrated Systems, Inc. – lobby firm
Spyrus Inc. – lobby firm
Surmodics, Inc. – lobby firm
Techguard Security LLC – lobby firm
Technology Service Corporation – lobby firm
Tekontrol, Inc. – lobby firm
Teledyne Controls – lobby firm
Terranano, Inc. – lobby firm
Textron Inc. – lobby firm
Unisys Corporation – lobby firm
Washington Group International, Inc. – lobby firm
Washington & Jefferson College – lobby firm
Windber Medical Center – lobby firm
Xunlight Corporation – lobby firm
PMA Group past relationships:
Richard E. Efford – VP
Kaylene Green – vice chairman
John Lynch – associate

http://www.muckety.com/PMA-Group/5018770.muckety

***
John P. Murtha
John P. Murtha
John P. Murtha personal relations:
Joyce Bell – spouse
Robert Murtha – brother
Other current John P. Murtha relationships:
House Committee on Appropriations – member
Majority PAC – PAC
U.S. House of Representatives – member
John P. Murtha past relationships:
2008 Hillary Rodham Clinton presidential campaign – supporter
Financial markets bailout bill (House -9/29/08) – voted for
Financial markets bailout bill (House -10/3/08) – voted for
Paul Magliocchetti – aide
Congressional & campaign info:
John P. Murtha is a Democrat from PA
representing congressional district 12

Contact info and committee assignments
Campaign contributors (from the Center for Responsive Politics)
Power ranking (by Knowlegis)

http://www.muckety.com/John-P-Murtha/832.muckety

***
Robert Murtha
Nickname: Kit
Robert Murtha personal relations:
John P. Murtha – brother
Robert Murtha past relationships:
KSA Consulting – senior partner
Robert Murtha connections, once removed:
Robert Murtha is connected to …
Majority PAC >> through John P. Murtha >> Map it!
Joyce Bell >> through John P. Murtha >> Map it!
House Committee on Appropriations >> through John P. Murtha >> Map it!
Note: This may be a partial list. Click on the map above to explore more connections.

http://www.muckety.com/Robert-Murtha/20027.muckety

***
KSA Consulting
KSA Consulting current relationships:
Aepco – lobby firm
Airship Management Services, Inc. – lobby firm
Applied Ordnance Technology – lobby firm
Cal-Zark – lobby firm
Caracal – lobby firm
Chemimage Corporation – lobby firm
Coherent Systems – lobby firm
Gapvax – lobby firm
Gensym – lobby firm
IP Finance Holdings – lobby firm
KDH Technologies – lobby firm
Purevision – lobby firm
Rajant Corp. – lobby firm
Virtual Incubation – lobby firm
KSA Consulting past relationships:
Robert Murtha – senior partner

http://www.muckety.com/KSA-Consulting/5018764.muckety

***

My note – And, here’s the folks we have to find a way to bring into reality -

Financial markets bailout bill (House -10/3/08)

Financial markets bailout bill (House -10/3/08) past relationships:

***

Financial markets bailout bill (Senate-10/1/08)

Financial markets bailout bill (Senate-10/1/08) past relationships:

***

Bank of America May Increase Salaries for Investment Bankers

By Jacqueline Simmons and Josh Fineman

March 28 (Bloomberg) — Bank of America Corp. plans to increase some investment bankers’ salaries by as much as 70 percent following the takeover earlier this year of Merrill Lynch & Co., people familiar with the proposal said.

Bank of America, which has received $45 billion of taxpayers’ money, may raise the annual base pay for some managing directors to about $300,000 from $180,000, said the people, who declined to be identified because the final numbers are still under discussion. Salaries for less-senior directors would climb to about $250,000 from $150,000, and vice presidents would get $200,000, up from about $125,000, the people said.

Bonuses will become a “smaller” portion of total compensation, Moynihan wrote in the memo. The adjustments, which may be rolled out as soon as next month, are designed in part to align the salaries of employees at Charlotte, North Carolina- based Bank of America with workers at New York-based Merrill, one person familiar with the plans said. Salaries for traders and other employees outside the investment bank may also be adjusted, the person said.

Bonuses make up about two-thirds of a banker’s total compensation. Salaries have ranged from about $80,000 to $300,000, with bonuses often climbing into the millions of dollars, Johnson said. The five biggest Wall Street firms awarded their employees a record $39 billion of bonuses in 2007.

Financial firms worldwide have taken more than $1 trillion of writedowns and credit losses since the subprime mortgage market collapsed in 2007, triggering a global credit contraction. The U.S. government has pledged more than $11.6 trillion on behalf of American taxpayers over the period to prop up financial firms.

To contact the reporters on this story: Jacqueline Simmons in Paris at jackiem@bloomberg.net; Josh Fineman in New York at jfineman@bloomberg.net
Last Updated: March 28, 2009 00:00 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=aFralhXgxzDs&refer=home

***

Citigroup dropped 8 percent to $2.41 in Germany, while Deutsche Bank fell 7.1 percent to 30.61 euros.

Geithner said yesterday on the ABC News program “This Week” that some banks are going to need “large amounts of assistance”

The Treasury has about $135 billion left in a financial- stability fund, Geithner said, while declining to say whether he will need to request additional money.

JPMorgan, Bank of America

JPMorgan fell 3 percent to $26.57 in Germany, while Bank of America Corp. slumped 11 percent to $6.55.

JPMorgan had a “tougher” month in March and Bank of America’s trading book “was not as good” as in the first two months of the year, chief executive officers Jamie Dimon and Kenneth Lewis told CNBC last week.

To contact the reporter on this story: Sarah Jones in London at sjones35@bloomberg.net.
Last Updated: March 30, 2009 04:45 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=ab.UG95l9nxQ&refer=home

***
US backing for world currency stuns markets
US Treasury Secretary Tim Geithner shocked global markets by revealing that Washington is “quite open” to Chinese proposals for the gradual development of a global reserve currency run by the International Monetary Fund.

By Ambrose Evans-Pritchard
Last Updated: 8:14AM GMT 27 Mar 2009

The dollar plunged instantly against the euro, yen, and sterling as the comments flashed across trading screens. David Bloom, currency chief at HSBC, said the apparent policy shift amounts to an earthquake in geo-finance.

“The mere fact that the US Treasury Secretary is even entertaining thoughts that the dollar may cease being the anchor of the global monetary system has caused consternation,” he said.

Mr Geithner later qualified his remarks, insisting that the dollar would remain the “world’s dominant reserve currency … for a long period of time” but the seeds of doubt have been sown.

The markets appear baffled by the confused statements emanating from Washington. President Barack Obama told a new conference hours earlier that there was no threat to the reserve status of the dollar.

“I don’t believe that there is a need for a global currency. The reason the dollar is strong right now is because investors consider the United States the strongest economy in the world with the most stable political system in the world,” he said.

The Chinese proposal, outlined this week by central bank governor Zhou Xiaochuan, calls for a “super-sovereign reserve currency” under IMF management, turning the Fund into a sort of world central bank.

The idea is that the IMF should activate its dormant powers to issue Special Drawing Rights. These SDRs would expand their role over time, becoming a “widely-accepted means of payments”.

http://www.telegraph.co.uk/finance/economics/5050407/US-backing-for-world-currency-stuns-markets.html

***

http://www.spacetoday.org/China/ChinaMoonflight.html

***
Technology March 2, 2009, 9:44AM EST text size: TT
China’s Space Ambitions Advance with Moon Landing
China’s space probe has landed on the moon, the end of the first leg of a journey expected to lead to the launch of a rover vehicle by 2012
China’s Chang-e space probe made a planned crash landing onto the lunar surface yesterday.

The 16-month journey was the first leg of China’s moon mission, which is expected to lead to a soft landing and the launch of a rover vehicle by 2012, Xinhua news said. In 2017, China will launch a second rover, which will gather geological samples and take them back to Earth.

China has separately announced it will launch a space module next year, and carry out its first space docking in 2011, in preparation for its goal of building a space station.

The Tiangong-1 (“Heavenly Palace-1″) module has been designed to operate unattended for large periods of time, but will also be used to conduct zero gravity experiments.

In 2003, Chinese astronaut Yang Liwei became the first person to be launched into space by China’s space program.

China was the third nation, after the US and Russia, to launch an astronaut into space.

Copyright: © 2006 Questex Media Group, Inc. All right reserved.

http://www.businessweek.com/globalbiz/content/mar2009/gb2009032_481801.htm

***

New York’s lavish new stadiums spark outrage among baseball fans
Thousands are losing their jobs and new skyscrapers are scratching around for tenants, but judging only by its baseball, no-one would know that New York is gripped by recession.

By Tom Leonard in New York
Last Updated: 11:18PM BST 29 Mar 2009
The new £700 million Citi Field stadium, previously the Shea, is now saddled with the unfortunate nickname “Bailout Park”  Photo: GETTY

Two of the most expensive stadiums in American history will open this week, in a lavish £1.7 billion facelift for the Yankees and the Mets, New York’s two major league teams.

Planned in more affluent times, the replacement of the landmark Shea and old Yankee stadiums with buildings designed to pamper corporate customers has angered fans and non-fans alike.

[Etc.]

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5072222/New-Yorks-lavish-new-stadiums-spark-outrage-among-baseball-fans.html

The real uses of power that are occurring today from New York’s Freedom Tower’s name change to continuing increases in executive’s pay for failed financial institutions and a computer spynetwork stealing at will across the world

In a report to be issued this weekend, the researchers said that the system was being controlled from computers based almost exclusively in China, but that they could not say conclusively that the Chinese government was involved.

The researchers, who are based at the Munk Center for International Studies at the University of Toronto, had been asked by the office of the Dalai Lama, the exiled Tibetan leader whom China regularly denounces, to examine its computers for signs of malicious software, or malware.

Their sleuthing opened a window into a broader operation that, in less than two years, has infiltrated at least 1,295 computers in 103 countries, including many belonging to embassies, foreign ministries and other government offices, as well as the Dalai Lama’s Tibetan exile centers in India, Brussels, London and New York.

[ . . . ]

The malware is remarkable both for its sweep — in computer jargon, it has not been merely “phishing” for random consumers’ information, but “whaling” for particular important targets — and for its Big Brother-style capacities. It can, for example, turn on the camera and audio-recording functions of an infected computer, enabling monitors to see and hear what goes on in a room. The investigators say they do not know if this facet has been employed.

[ . . . ]

Although the Canadian researchers said that most of the computers behind the spying were in China, they cautioned against concluding that China’s government was involved. The spying could be a nonstate, for-profit operation, for example, or one run by private citizens in China known as “patriotic hackers.”

“We’re a bit more careful about it, knowing the nuance of what happens in the subterranean realms,” said Ronald J. Deibert, a member of the research group and an associate professor of political science at Munk. “This could well be the C.I.A. or the Russians. It’s a murky realm that we’re lifting the lid on.”

[ . . . ]

Early this month, Mr. Villeneuve noticed an odd string of 22 characters embedded in files created by the malicious software and searched for it with Google. It led him to a group of computers on Hainan Island, off China, and to a Web site that would prove to be critically important.

In a puzzling security lapse, the Web page that Mr. Villeneuve found was not protected by a password, while much of the rest of the system uses encryption.

Mr. Villeneuve and his colleagues figured out how the operation worked by commanding it to infect a system in their computer lab in Toronto. On March 12, the spies took their own bait. Mr. Villeneuve watched a brief series of commands flicker on his computer screen as someone — presumably in China — rummaged through the files. Finding nothing of interest, the intruder soon disappeared.

Through trial and error, the researchers learned to use the system’s Chinese-language “dashboard” — a control panel reachable with a standard Web browser — by which one could manipulate the more than 1,200 computers worldwide that had by then been infected.

[ . . . ]

The researchers said they avoided breaking any laws during three weeks of monitoring and extensively experimenting with the system’s unprotected software control panel. They provided, among other information, a log of compromised computers dating to May 22, 2007.

They found that three of the four control servers were in different provinces in China — Hainan, Guangdong and Sichuan — while the fourth was discovered to be at a Web-hosting company based in Southern California.

[ . . . ]

http://www.nytimes.com/2009/03/29/technology/29spy.html?_r=2&partner=rss&emc=rss

***

Goldman Sachs Funds Paid $49.6 Million to Top Executives in ‘08

By Christine Harper

March 28 (Bloomberg) — Goldman Sachs Group Inc.’s top 10 executives received $49.6 million from their investments in hedge funds and private equity funds during 2008, more than most of them earned in compensation after agreeing to forgo bonuses.

Chief Executive Officer Lloyd Blankfein’s $1.1 million in total compensation was dwarfed by the $11.3 million he received in profits and other income from his fund investments, the New York-based company’s proxy filing showed. Co-President Gary Cohn’s $3.7 million in pay contrasts with $7.4 million in fund income, the filing showed.

While the payouts pale in comparison with Blankfein’s record-setting $67.9 million bonus for 2007, they illustrate that top executives had other sources of income at the sixth- biggest U.S. bank by assets. Two of the executives, Co-President Jon Winkelried and Co-General Counsel Gregory Palm, sold fund stakes back to the firm to raise money in the last four months of the year rather than sell stock in a rocky market.

[ . . . ]

Winkelried, paid $67.5 million in salary and bonuses in 2007 and $53 million in 2006, is leaving the firm this month. Last year, Winkelried listed his Nantucket, Massachusetts, estate for sale at $55 million. He cut the price to $38.5 million, the Wall Street Journal reported on its Web site in February.

Palm, 60, received $9.1 million in restricted shares and options in 2007 and about $1.1 million in restricted stock and options in 2008. The company doesn’t disclose any information on cash bonuses he may have collected.

Palm also received $10.9 million in profit and other returns from Goldman Sachs’s funds in 2008, the filing showed. Winkelried received $3.6 million in such distributions.

The 10 executives whose fund income was disclosed in the filing were Blankfein, Cohn, Winkelried, Palm, Co-General Counsel Esta Stecher, Chief Financial Officer David Viniar, Vice Chairman Michael Evans, Vice Chairman Michael Sherwood, Vice Chairman John S. Weinberg, and Kevin Kennedy, who runs Goldman’s business in Latin America.

Of the 10, only Palm, Stecher, and Kennedy didn’t forgo their bonuses in 2008.

To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net.
Last Updated: March 28, 2009 00:00 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=ajrmM3vIahsg&refer=home

***

Bank of America May Increase Salaries for Investment Bankers

By Jacqueline Simmons and Josh Fineman

March 28 (Bloomberg) — Bank of America Corp. plans to increase some investment bankers’ salaries by as much as 70 percent following the takeover earlier this year of Merrill Lynch & Co., people familiar with the proposal said.

“The concepts we are considering would not increase total compensation,” Brian Moynihan, Bank of America’s president of investment banking and wealth management, wrote yesterday in a memo to employees obtained by Bloomberg News. “Rather, we believe it is responsible, and consistent with the emerging public consensus, that a greater percentage of overall compensation come from fixed base salary.”

Bank of America, which has received $45 billion of taxpayers’ money, may raise the annual base pay for some managing directors to about $300,000 from $180,000, said the people, who declined to be identified because the final numbers are still under discussion. Salaries for less-senior directors would climb to about $250,000 from $150,000, and vice presidents would get $200,000, up from about $125,000, the people said.

[ . . . ]

The worst financial crisis since the 1930s has spread across the economy, lifting the U.S. unemployment rate to 8.1 percent, the highest in more than 25 years, and causing the biggest quarterly economic contraction since 1982.

‘Public Perception’

“We’re in an economic downturn, the government is pouring billions into banks, and these guys are boosting their salaries,” said Jason Kennedy, chief executive officer of London-based recruitment firm Kennedy Associates. “There’s an issue of public perception.”

The U.S. is projecting that spending to stimulate the economy and rescue the financial system will lead to a $1.75 trillion budget deficit in the current fiscal year.

Bank of America, led by CEO Kenneth Lewis, has struggled to retain Merrill Lynch executives since it bought the investment bank in January. Merrill investment banking chief Greg Fleming and wealth management head Robert McCann have quit, and Andrea Orcel, Merrill’s top investment banker, has told people he’s considering leaving, according to two people with direct knowledge of his situation.

[ . . . ]

Bonuses make up about two-thirds of a banker’s total compensation. Salaries have ranged from about $80,000 to $300,000, with bonuses often climbing into the millions of dollars, Johnson said. The five biggest Wall Street firms awarded their employees a record $39 billion of bonuses in 2007.

Financial firms worldwide have taken more than $1 trillion of writedowns and credit losses since the subprime mortgage market collapsed in 2007, triggering a global credit contraction. The U.S. government has pledged more than $11.6 trillion on behalf of American taxpayers over the period to prop up financial firms.

To contact the reporters on this story: Jacqueline Simmons in Paris at jackiem@bloomberg.net; Josh Fineman in New York at jfineman@bloomberg.net

Last Updated: March 28, 2009 00:00 EDT

http://www.bloomberg.com/apps/news?pid=20601087&sid=aFralhXgxzDs&refer=home

***

updated 5:12 p.m. EDT, Fri March 27, 2009

Owners drop Freedom Tower name for new WTC skyscraper

* Story Highlights
* New skyscraper will be known as One World Trade Center
* Port Authority: “It is most practical to market the building” under address name
* The building was named the Freedom Tower in the first “ground zero” master plan.
* Agency says it has signed first commercial lease to Chinese company

From Chris Kokenes
CNN

NEW YORK (CNN) — The agency that owns the space where the World Trade Center towers stood is freeing itself of the term “freedom” to describe the signature skyscraper replacing the buildings destroyed on September 11, 2001.

The change from Freedom Tower was revealed Thursday at a news conference where the Port Authority of New York and New Jersey announced the signing of the first commercial lease in the building to a Chinese company. The building is expected to be completed in late 2013.

[ . . . ]

“The fact is, more than $3 billion of public money is invested in that building, and, as a public agency, we have the responsibility to make sure it is completed and that we utilize the best strategy to make certain it is fully occupied,” Sigmund added.

[ . . . ]

Representatives of the Port Authority of New York and New Jersey and Vantone Industrial Co. announced Thursday the signing of a lease that will create the China Center, a 190,810-square-foot business and cultural facility, to be on portions of the 64th floor and the entire 65th through 69th floors of One World Trade Center.

[ . . . ]

The lease is for 20 years and nine months, beginning when the building is completed, with rents starting at $80 per square foot and escalating afterward. The China Center also will have the right to lease up to two additional contiguous floors under the same terms, an option that expires at the end of 2009.

The Port Authority also has commitments for more than a million square feet of leased office space in One World Trade Center from the U.S. General Services Administration and the New York State Office of General Services. Leases for these two public agencies are being finalized. These commitments, coupled with the China Center lease, represent nearly 50 percent of the office space in the building.

The China Center at One World Trade Center is expected to represent the elite of China’s business and cultural communities and serve as a hub for Chinese firms developing United States operations, as well as for U.S. companies that wish to conduct business in China or expand operations.

One World Trade Center will include 2.6 million gross square feet of office space on 70 office floors, a public lobby with a 50-foot-high ceiling, an observation deck 1,265 feet above ground, a skyline restaurant, a wide array of shopping and parking.

The building itself will be 1,368 feet tall, and a spire at the top will bring the total height to 1,776 feet.

Beijing Vantone Industrial is one of the first private corporations established in China. Today, the company is one of China’s largest private real estate investment companies with 13 subsidiaries, including one publicly traded company, Beijing Vantone Real Estate Co.

http://www.cnn.com/2009/US/03/27/no.freedom.tower/index.html

***

New Boston Tea Party Actions should help people not further conservative Republican plays for power – They caused the problems that we now have to fix -

Since the Reagan years, taxes for the wealthy, for large businesses and corporations, and taxes against investments have been reduced every year. The society it has created has been built on lies and illusion as obvious now by the recent economic crisis across the world that was made by it. The look of prosperity and growth provided no foundation to be sustained or sustainable.

The only thing these tax cuts and big business favorable programs have insured is that we, as a nation have failed. This method of economic policy has robbed every pension fund, every company, every community and every future of every single American living today and forever after this. Throughout the years that it has been enacted, huge segments of the population have lived without opportunity, been run through justice systems, mental health systems and children’s social programs for no more than the profits sought by businesses, big pharmaceutical companies, local and state governments and county agencies hungry for money.

It has not improved the lives and options available for the majority of people living in America. The justice system has become the Injustice System at the hands of those who have been in power and operated as a profitable business of prisons, county jails, programs of incarceration, profiling, abuse, negation of the rights guaranteed by the Constitution and generally an imposition into the lives of many people little deserving of it. Except in the case of major capital crimes and white collar embezzlement, the operating policy has been “guilty until proven innocent” and even then, charges that were dismissed continue on the record as if found to be so.

Since the Reagan years, every wealthy individual and large corporation have benefitted from lower taxes while every other tax, fee, service fee, fine, sales tax, registration fee, license and new taxes were either imposed or raised to everyone else in America. While corporations became the primary rights holder to the exclusion of all else and their profits were protected from taxes, policy makers and economists that believed they would therefore, “act right, police themselves when necessary and uphold conscience in their actions” were so completely wrong as to be considered out of touch with reality based on what is obvious today.

While corporate executives, directors on corporate boards and others at the top of corporations, financial industry companies and even, our government were making salaries, bonuses and perks to rival the kings of England, employers and their political action committees were striving to take breaks, safe work environments, lunches, decent minimum wages and every last benefit away from employees across the country.

For all of this time, any agency that had been created to regulate any industry for the health and safety of the public was cut in funding and staff. Many regulations were taken out of the law or dismantled, funding was depleted such that investigators, staff and resources were inadequate to cover anything resembling their jobs, new regulations were stopped or stalled and all of those moneys were diverted elsewhere. As a result, deaths and harms to mankind have occurred which could have been prevented and the damages of those events remain to be borne by all of us.

As it turns out, having had this free reign, many businesses and individuals of means were given to speculation and gambling rather than operating as a conscientious participant in our society. Over these years, horrors of corporate greed and abuse have covered the gamut from harms done directly to people as a result of corporate actions to environmental destruction, mass food poisonings, faulty products that caused physical damages and deaths, to corporate fraud, accounting schemes, speculation using corporate assets and over-leveraging in order to steal profits and future earnings, among other things.

During these years, corporate rights have been escalated while individual rights have been decimated. Across the United States, many cities and counties are little more than a police state with huge populations of citizens incarcerated in jails and prisons for the pettiest of offenses which has actively destroyed their opportunities to prosper or to conduct their own lives. It is commonplace for abuses of authority, police brutality, wrongful deaths at the hands of local police and authorities to take place since the Republicans have had control.

Police, authorities and officials are rarely held accountable for these actions which have wronged our citizens. Eminent domain has been re-evaluated as a prime method for taking whatever a corporate entity, developer or political friends might want with absolutely no recourse and our courts refuse to hold anyone accountable in any of these matters excepting those who have been wronged which are commonly further victimized by our courts and justice system.

Our country has become a place where individuals must carry appropriate identification on them at all times which appropriately match all other information sources, can be and are harassed by police whether driving or walking especially in the afternoons, at night and on weekends even when doing nothing wrong, where it is common to be tazed, beaten or shot by police even while complying with their orders, and where commonplace activities are monitored by police, cameras and other surveillance methods even where crime is not prevalent.

Anyone with a difference of opinion, exhibiting any diversity of lifestyle from that prescribed by the conservatives who have been in power, or who have any disability, impoverishment, destitution, creativity, freedom of thought, inventiveness, or single-parent household have been subjected to the most obscene abuses by those in authority.

The official abuses in the community have included denial of rights, harassment, false imprisonment, chemical lobotomy by mental health “professionals,” denial of opportunities, inappropriately long imprisonment for petty offenses, and extraordinary destruction to any of these individuals’ ability to keep a place to live and conduct themselves independently in the community. And, all of it was done to make a profit for the state, the counties, the local governments and the businesses run by their friends.

While political party members insisted on policies that would divert efforts from the government for safety net social programs to the charitable and faith-based organizations, those organizations at the same time diverted their funds to further conservative and Republican party agendas which has left huge portions of the population homeless, hungry, living in poverty and without options.

Instead of a user friendly prosperous nation that lends a hand to get people on their feet and started toward goals for their own lives to prosper, it has been a nation of exclusion and exclusivity, hatred and intolerance, of the rich beating the poor into the ground in contempt and disgust and hatred for anyone that wasn’t one of their own kind. For the same reasons, the conservatives and Republican policy makers along with their wealthy business friends have thought nothing of stealing from the middle class and from the poor, needy and impoverished.

Social workers have been given the status of agents working for the government with the rights to demand entrance into anyone’s home for any reason at any time of the day or night. If denied entrance, they have the full power and access to the law enforcement systems to come into anyone’s home, take the person without reasonable cause or investigation or basis for action, take their children, lock every family member into whatever named institution they deem and without recourse or phone call for any victim of their actions.

Then, months later, with no opportunity to face accusers or to answer alleged reasons for it all, the state and county agencies have made money on every member of the family, including children. That is not dissimilar to the Gestapo. It is the same. And, every guarantee of the Constitution and the Bill of Rights are ignored and this has been the on-going operating principles and methods of our government for over twenty years, but actually started from the time of the Reagan years. When his administration of Republicans were in control of the state of California before his presidency, the same nightmares for the people of California occurred and the same staggering destruction to the economy, the same increase in extreme devastating poverty, the same increase of overwhelming homelessness and unemployment and the same massive increase of the prison system, mental health systems, and other institutions and their use as profit-making businesses. Now our entire nation is enduring the same results.

What surprises me most about all of this, is that today more and more people are being subjected to the same black hole that has been created by the Republicans and conservatives for everyone who is not them to endure and still they won’t admit they were wrong. Their “tax policies” for the rich and the corporations along with the reduced or non-existence regulations to police them have completely decimated our economy and still they won’t admit they were wrong or that what they’ve done has destroyed America as the world power it once was. They continue to instill in everything they say that the blame in all of this is on the American people, the poor, the middle class, the Democrats, the liberals, the independents, the employees, the unions, the single-parents, the disabled, those who have not been in power at all and those who could not stop them.

Those who have been in power have leveled the corporations they intended to favor precisely by that favoritism and the things it allowed to happen. Their policies have created an illusion of prosperity that had no foundation in reality which simply covered the theft and fraudulent acquisition of millions upon millions of dollars by their wealthy friends and conservative funding organizations to further their own political agendas.

Supply-side economics is a failure – it fails to “trickle down”, it fails to offer stable growth, it fails to bring prosperity to our nation and it has succeeded in bringing down our nation to the status of a third world economy hovering on the brink of hyper-inflation and social upheaval. So, what are the Republicans doing now? Trying to encourage that social upheaval hoping to take that boat back to power and insisting on the people of the United States covering their business losses and risky behaviors that over-leveraged, gambled and depleted corporate resources.

Capitalism works but supply-side economics and corporatism at the expense of the entire population does not. Leadership by a minority which doesn’t encompass even one third of the population and whose basis is aristocratic and elitist exclusion of the majority of those whose lives must be conducted under their rule is a recipe for anything but democracy, freedom and individual rights, property, prosperity, and opportunities.

And, that is exactly what we have – a nation written on the tenets of freedom, equality, democracy and capitalism whose leaders have failed for over thirty years to insure those tenets for anyone but themselves, their friends and the corporations in which they own stock and which fund their campaigns and agendas. Corporations are in existence to serve the people while making profits to further its survival, not the other way around as it has been made-over by the right-wing conservatives who have been running the Republican party during this time.

These same Republicans and conservatives that are still dominating certain positions of power were responsible for changing the tax cuts to the majority of Americans and American families to less than $8 per paycheck which won’t do much in the current economy. Then they turned around and mocked the Democrats and everyone else for it not being any more than that. It is absurd. They are also the ones responsible for undermining the national budget in order to win tax cuts that they insist will provide opportunities despite all evidence to the contrary indicated by the last thirty years of doing it that way.

They are the ones who threw hundreds of billions of our dollars into the hands of their friends at AIG, Citigroup, Goldman Sachs, JP Morgan Chase, Bank of America, Merrill Lynch, Countrywide, Barclays, UBS and Wall Street investment “banks.” They continue to insist on a credit based economy rather than a commerce, currency and productivity based economy. And, then demand that all of us spend and join them in denouncing tax cuts for the majority while demanding more tax cuts and incentives for the wealthy and the corporations.

The Republican Party was never intended to be like this and was not created nor sustained to apply policies to the detriment of our entire population while they prospered at everyone’s expense. It wasn’t made to force every member of our population to conform to their principles and beliefs while denying the freedoms of individual rights to opinion, speech, choice, ideology, religion, lifestyle and ideas for all the citizens of our nation. That isn’t based on Republican principles – it is something else abhorrent, absurdly greedy, aristocratic and power-mongering. It has crushed the citizens of our country under its feet to serve itself and to feed its insatiable greed, inflated egotists, and wanton avarice.

Conservatives are hosting “tea parties” around the country especially on tax day in order to incite social upheaval and further their agenda which is an abomination at this point. The only New Boston Tea Party that will serve the American people should be one hosting or attending to their needs, the restoration of our nation and its economy, a re-assertion of our individual rights and freedoms, encouraging to our population’s continued walk through very difficult times, and helpful to networking with one another for enhancing our opportunities to survive and to thrive.

- cricketdiane, 03-28-09, USA

***

* Ford Administration: During the Gerald Ford presidency, Deputy Assistant Dick Cheney suggested in a now infamous memo to Donald Rumsfeld that the White House use the United States Justice Department to conduct opposition research and retaliate against political opponents and critical journalists such as Seymour Hersh and the New York Times, arguing that the executive branch had the power to prosecute journalists as they saw fit, under the provisions of the Espionage Act of 1917.[32]

* Reagan Administration: In 1984, during the Ronald Reagan presidency, the Republican National Committee formed The Opposition Research Group, with its own budget of $1.1 million. These staff amassed information on eight Democratic presidential candidates based on data from voting records, Congressional Record speeches, media clippings and transcripts, campaign materials, all of which was stored on a computer for easy access. In this way Reagan was able to track inconsistencies and attack them. This original data base evolved into a network that linked information gleaned by Republicans in all 50 states, creating a master data base accessible to high-ranking Republican staff, even aboard Air Force One.[33]

* George W. Bush Administration: Two former opposition researchers for the RNC appointed to Justice Department posts, Timothy Griffin and Monica Goodling, were implicated in efforts to use data collected on Democratic-appointed federal attorneys as ground for dismissal. See Dismissal of U.S. attorneys controversy. See also Karl Rove. Also during this administration, CIFA (Counterintelligence Field Activity) , an intelligence gathering arm of the Pentagon was disbanded in 2008, after investigations into the bribery activities directed at Duke Cunningham revealed that the U.S. government kept a sizeable database of information about 126 domestic peace activist groups, including Quakers, about 1,500 suspicious incidents including peace demonstrations outside armed forces recruiter offices, even though the groups posed no specified threat to national security. The program was known as Talon. About two years elapsed between the program’s disbanding and the Post report. The Washington Post quoted an unnamed official as saying, On the surface, it looks like things in the database that were etermined not to be viable threats were never deleted but should have been, the official said. You can also make the argument that these things should never have been put in the database in the first place until they were confirmed as threats. [35]
Opposition Research and Mass media ethics

* In 1992, Floyd Brown headed up the Presidential Victory Committee, which backed the candidacy of George H. W. Bush. CBS Evening News reported that Floyd Brown was observed to be in the company of NBC news producer Ira Silverman as they stalked the family of Susan Coleman, a former law student of Bush’s opponent Bill Clinton. Coleman had committed suicide, and Brown was attempting to disseminate a rumor that she had had an affair with Clinton. Brown and associate David Bossie reportedly stalked the family of a suicide victim. In April 1992, 30 news organizations received an anonymous and untraceable letter by fax claiming Clinton had had an affair with a former law student who committed suicide 15 years ago. Floyd Brown attempted to link Clinton to the 1977 suicide of this, emotionally distraught young woman, seven-months pregnant, Susan Coleman.[42] The Bush-Quayle campaign eventually filed a complaint with the Federal Election Commission against Brown, seeking to distance itself from his tactics.[43][44] The group had filed its intent to air the ad with the Republican Party, and Bush’s campaign director James A. Baker III, who waited 25 days before responding to the letter, after the ad had been airing continuously. Brown has said of the incident, If they were really interested in stopping this, do you think they would have waited that long to send us a letter? [45] The practice of using tips from sources such as Brown was examined in 1994 by Howard Kurtz, media analyst for the Washington Post. Kurtz surveyed the major networks, Newsweek, Wall Street Journal, Los Angeles Times, and other influential media outlets, and found varying levels of use of Brown’s information on David Hale as a witness in the Whitewater controversy. At this time, Brown confirmed that he had been the source of four mainstream media stories that had received attention from the Columbia Journalism Review because they bore striking resemblance to the opposition research being disseminated by Citizens United.[46] In 2008, Floyd unveiled a new attack ad against Democratic presidential candidate Barack Obama, on the Fox News network, while also appearing as a real estate investor commenting on the mortgage fraud crisis.[47]

Opposition research and public opinion in the United States

The Atwater-Rove style drew sharp scrutiny and criticism, and opened a new venue for study of executive management style, as scholars sought to examine to what extent incumbent politicians who used black ops to gain power would also deploy the same staff and techniques to maintain power and control once they are elected. The public now weighs a candidate or organization’s viability by how they conduct their campaigns, and to many voters, a negative campaign means that if elected, that candidate will possibly transfer oppo research into retaliatory operations against dissenters.

http://en.wikipedia.org/wiki/Opposition_research

***

Associated Press
Charges dropped against CT priest who taped police
By DAVE COLLINS , 03.26.09, 04:27 PM EDT
pic

Connecticut prosecutors on Thursday dropped charges against a Roman Catholic priest who was arrested while videotaping East Haven police officers in an attempt to document alleged harassment of Hispanics.

Parishioners of the Rev. James Manship’s church also announced Thursday that they filed a complaint with the U.S. Justice Department’s Civil Rights Division seeking an investigation of East Haven police for alleged brutality and racial profiling of Hispanics.

Manship, pastor at St. Rose of Lima Church in New Haven, was charged Feb. 19 with disorderly conduct and interfering with police. He was videotaping two officers who were removing what they called illegal license plates from a wall of a food store owned by a Hispanic couple, who said the plates were for decoration.

http://www.forbes.com/feeds/ap/2009/03/26/ap6219381.html?loomia_ow=t0:s0:a41:g29:r8:c0.004736:b23407452&partner=loomia

***

Psychiatrist responds to charges
By Liz Kowalczyk
Globe Staff / December 6, 2008

Dr. Joseph Biederman, the Boston psychiatrist who is a focus of a congressional investigation, defended himself against conflict-of-interest charges in a letter to the Boston Globe this week.

Biederman, the country’s most prominent advocate of diagnosing bipolar disorder in young children and treating many of them with antipsychotic drugs, responded Thursday to a report in the Nov. 25 Globe.

The story described newly disclosed court documents that portray Biederman as courting drug company money by promising that his work at Massachusetts General Hospital would help promote the use of antipsychotic drugs for youngsters diagnosed with bipolar disorder.

In one internal 2002 e-mail that is part of the court documents, executives of Janssen Pharmaceuticals, the Johnson & Johnson subsidiary that markets the antipsychotic Risperdal, discuss Biederman’s repeated proposals for the company to help fund a center on pediatric bipolar disorder at Mass. General.

The rationale of this center is to generate and disseminate data supporting the use of risperidone in this patient population, it says.

http://www.boston.com/news/local/massachusetts/articles/2008/12/06/psychiatrist_responds_to_charges/

***

Florida Medicaid, Antipsychotics And Small Children

By Ed Silverman // December 17th, 2008 // 12:36 pm

At a time when growing use of atypical antipyschotics in children is under a microscope, Florida’s Medicaid program recently revised rules that makes it possible for doctors to write prescriptions for children of all ages – including those younger than six years old.

Most of these drugs can lead to weight gain and diabetes, and one prominent study found they were no more effective than older meds. Yet the drugs are increasingly prescribed for children, with Medicaid programs in several states reporting rising expenditures for antipsychotics, sometimes to treat ADD or ADHD, which are unapproved uses.

In general, the atypical antipsychotics – a newer class that includes AstraZeneca’s Seroquel; Bristol-Myers Squibb’s Abilify; Pfizer’s Geodon; Lilly’s Zyprexa and Johnson & Johnson’s Risperdal – were not approved by the FDA to treat small children, or those younger than 10 years old. Risperdal has been approved for children older than 5 years of age, but only for those with autistic disorder. To be eligible for Medicaid reimbursement, a drug has to be used for a medically accepted indication, which means the drug has to be approved for a specific use or supported by specific compendia (this link indicates the three compendia do not list any use of the atypicals in children younger than 5 years old).

In Florida, meanwhile, the number of children in the state Medicaid program prescribed the drugs nearly doubled between 2000 and 2006 (and the most common diagnosis was ADHD). Such trends recently prompted an FDA advisory panel to chastise the agency for not doing more to discourage such prescribing (back story) and a group of state Medicaid directors to evaluate the use of the drugs in children on state Medicaid rolls to ensure that they are being properly prescribed.

http://www.pharmalot.com/2008/12/florida-medicaid-antipsychotics-and-small-children/

***

Texas sues drug company to recover millions
The Associated Press
Posted: 12/17/2008 01:53:42 AM MST

AUSTIN—A drug company supplied phony advocacy groups, trumped-up scientific claims and used Texas mental health officials as pitchmen so a top-dollar schizophrenia drug would get on the state’s Medicaid list, a lawsuit filed by Texas officials alleges.

According to documents filed Friday in a district court in Travis County, the state wants to recover millions of dollars spent on the drug Risperdal through Medicaid. The lawsuit alleges New Jersey-based Janssen Pharmaceuticals, part of Johnson & Johnson, defrauded the state repeatedly over the past decade.

The lawsuit also alleges the improper influence-seeking and controversial medical protocols that determine which drugs are given to adults and children in state custody.

http://www.elpasotimes.com/ci_11251473

***

Alaska
State of Alaska v. Lilly
Civil action for the damages and penalties arising from the marketing and sale of the prescription drug Zyprexa Article Complaint Description of Claim
Settled, $15 Million, March 26, 2008

Arkansas
Arkansas is planning a lawsuit against Eli Lilly, Janssen Pharmaceutica and Astra Zeneca for “improper and unlawful marketing” of anti-psychotic drugs. The drugs in question are Zyprexa, Risperdal and Seroquel. The Medicaid program of Arkansas has spent $200 million on those drugs over the last eight years and, under Arkansas’ Medicaid fraud law, the state could collect three times that much. Article

Drug companies improperly marketed an anti-psychotic drug, Arkansas Attorney General Dustin McDaniel claimed Tuesday as he asked a state judge to force the firms to repay millions shelled out by the state’s Medicaid program for unnecessary prescriptions. McDaniel filed a lawsuit in Pulaski County Circuit Court against Janssen Pharmaceutica Inc., Janssen LP and Johnson & Johnson Inc. (JNJ). In the filing, McDaniel said the companies engaged in a direct, illegal, nationwide program of promotion of the use of Risperdal for non-medically necessary uses . Article Lawsuit

Arkansas Attorney General Dustin McDaniel filed suit Tuesday against drug manufacturer AstraZeneca claiming the company encouraged doctors to prescribe a dangerous drug to children and the elderly for uses beyond its federal approval, harming patients and costing the state millions of dollars. The suit filed in Pulaski County Circuit Court claims London-based AstraZeneca PLC and four of its related companies in the U.S. and abroad misled doctors and the public to increase sales of the antipsychotic drug Seroquel, even though the company knew people taking it were at risk of injury, disease and sickness. Article

California
Johnson & Johnson’s Janssen unit received a subpoena from the California attorney general’s office over sales and marketing of Risperdal. The subpoena asked for documents on sales and marketing and side effects of the drug, as well as on interactions with state officials in Medicaid. Article
In September 2006, Lilly received a subpoena from the California Attorney General’s office seeking production of documents related to their efforts to obtain and maintain Zyprexa’s status on California’s formulary, marketing and promotional practices with respect to Zyprexa, and remuneration of health care providers. SEC Filing

Connecticut
State of Connecticut v. Lilly
Connecticut is joining at least nine other states suing drug maker Eli Lilly and Co. over the antipsychotic drug Zyprexa. Attorney General Richard Blumenthal says Connecticut’s lawsuit seeks to recover more than $190 million that the state’s medical assistance program spent on Zyprexa over more than a decade. The lawsuit accuses Indianapolis-based Eli Lilly of running an illegal marketing campaign to promote Zyprexa for unapproved off-label uses, including treating children. Press Release Complaint

produced by NAMI National for legislators and paid for by Lilly – lays out a blueprint for nationwide NAMI lobbying of state governments to reduce or remove any limitations to payments for atypical antipsychotics, again down-playing the side effects of such drugs. Using money from Lilly and other pharmaceutical companies, NAMI – both the various state-level association and the national organization – has effectively lobbied state and federal governments to increase spending on atypical antipsychotic drugs and to reduce restrictions on access to those pharmaceuticals, thereby protecting pharmaceutical industry profits through the guise of independent, grassroots advocacy. For example, between 1998 and 2000, Lilly gave NAMI Washington State $91,000. During that time, NAMI Washington State, in an effort led by NAMI lobbyist Brad Boswell, lobbied the state legislature for $1 million specifically for atypical antipsychotic drugs. Brad Boswell was Lilly’s Washington state lobbyist just prior to his assignment with NAMI Washington State. NAMI also joined a suit initiated by the Pharmaceutical Research and Manufacturers of America (PhRMA) against the state of Michigan in order to increase physician access to higher cost pharmaceuticals – including atypical antipsychotics – under the state’s Medicaid program. Class Action Complaint

Sergeants Benevolent Association Health and Welfare Fund v. Eli Lilly
The U.S. Department of Health and Human Services Office of the Inspector General issued a report in 2002 warning that cozy financial relationships between non-profit advocacy groups and pharmaceutical companies – such as the one between NAMI and Lilly – which result in the generation of revenue for the pharmaceutical companies could be considered illegal under the federal anti-kickback statute. Complaint

http://www.psychsearch.net/lawsuits.html

***

In the last year, investigations by Iowa Sen. Chuck Grassley, the senior Republican on the Senate Finance Committee, have turned up breathtaking cases of corruption among doctors and pharmaceutical companies. Universities typically require doctors to disclose income from drug companies to insure that conflicts of interest don’t undermine medical research. However, there is no legal penalty for lying, and the system relies on doctors to act in good faith. As Sen. Grassley has discovered, asking doctors to act in good faith regarding pharmaceutical payments works about as well as trusting a kindergartner with a jar full of chocolate chip cookies. The doctors have been lying. A lot.

Consider Charles B. Nemeroff, the doctor who directed Emory University’s department of psychiatry. He was the lead researcher on a five-year, $4 million grant to study drugs made by GlaxoSmithKline. In 2004, Emory reviewed Nemeroff’s management of the study and asked him to affirm that he was adhering to university disclosure policies. Nemeroff assured Emory that he would limit his work for Glaxo while he was researching the company’s drugs. He later reported $9,999 of consulting income, or $1 beneath the disclosure threshold set by the National Institutes of Health.

How much was Nemeroff really making? By pressuring pharmaceutical companies to release payment records, Sen. Grassley discovered that Glaxo actually paid Nemeroff a stunning $171,031 in 2004. Over the course of several years, Nemeroff failed to disclose more than $500,000 in income from Glaxo alone. In December, Emory announced it was stripping Nemeroff of his chairmanship.

The most egregious example may be Joseph Biederman, professor of psychiatry at Harvard Medical School. Biederman was hugely successful in convincing psychiatrists that they were under-diagnosing bipolar disorder in children. Thanks in large part to his efforts, children as young as 2 years old have been diagnosed with bipolar disorder and treated with atypical antipsychotic drugs such as Risperdal. In exchange for his efforts, pharmaceutical companies paid Biederman $1.6 million in consulting and speaking fees, most of which he failed to disclose.

The pharmaceutical companies claim that the payments are legitimate compensation for “educational” speeches the doctors make, but it’s hard to see them as anything but bribes. Certainly, the doctors knew they had something to hide. At the same time that Biederman was collecting his payments, there was a 40-fold increase in the diagnosis of bipolar disorder in children, from 20,000 to 800,000 children. Nearly all of those children are treated with drugs, typically atypical antipsychotics. These drugs were developed to treat conditions such as schizophrenia, but there are only so many schizophrenics in the world. Risperdal alone had sales of $2.5 billion in 2007, and sales of all atypical antipsychotics are about $12 billion a year.

http://www.jacksonfreepress.com/index.php/site/comments/johnson_let_them_eat_pills_030409/

***

Congressional response
Main article: Congressional response to the NSA warrantless surveillance program

Three days after news broke about the warrantless wiretapping program, a bipartisan group of Senators–Democrats Dianne Feinstein of California, Carl Levin of Michigan, Ron Wyden of Oregon and Republicans Chuck Hagel of Nebraska and Olympia Snowe of Maine, sent a letter dated December 19, 2005 to Judiciary and Intelligence Committees chairmen and ranking members requesting the two committees to seek to answer the factual and legal questions about the program.

On January 25, 2006, in response to the administration’s asserted legal justification of the NSA program being based in part on the AUMF, Senators Leahy (D-VT) and Kennedy (D-MA) introduced Resolution 350 to the Judiciary Committee that purported to express a sense of the Senate that the AUMF does not authorize warrantless domestic surveillance of United States citizens . Resolution 350 has not been reported out of committee and has no effect.

In introducing their resolution to committee,[138] they quoted Justice O’Connor’s opinion that even war is not a blank check for the President when it comes to the rights of the Nation’s citizens.

Additionally, they asserted their opinion that the US DOJ legal justification for the NSA program was a manipulation of the law similar to other overreaching and twisted interpretations in recent times. Leahy and Kennedy also asserted that Attorney General Gonzales admitted at a press conference on December 19, 2005, that the Administration did not seek to amend FISA to authorize the NSA spying program because it was advised that it was not something we could likely get.

http://en.wikipedia.org/wiki/Pioneer_Groundbreaker

***

Room 641A is an alleged intercept facility operated by AT&T for the U.S. National Security Agency, beginning in 2003. Room 641A is located in the SBC Communications building at 611 Folsom Street, San Francisco, three floors of which were occupied by AT&T before SBC purchased AT&T. The room was referred to in internal AT&T documents as the SG3 [Study Group 3] Secure Room. It is fed by fiber optic lines from beam splitters installed in fiber optic trunks carrying Internet backbone traffic and, therefore, presumably has access to all Internet traffic that passes through the building.

The room measures about 24 by 48 feet (7.3 m H 15 m) and contains several racks of equipment, including a Narus STA 6400, a device designed to intercept and analyze Internet communications at very high speeds.[1]

The existence of the room was revealed by a former AT&T technician, Mark Klein, and is the subject of a 2006 class action lawsuit by the Electronic Frontier Foundation against AT&T.[2] Klein claims he was told that similar black rooms are operated at other facilities around the country.

Room 641A and the controversies surrounding it were subjects of an episode of Frontline , the current affairs documentary program on PBS. It was originally broadcast on May 15, 2007. It was also featured on PBS’s NOW on March 14, 2008.

http://en.wikipedia.org/wiki/Room_641A

***
In January 2001, Daniels accepted President George W. Bush’s invitation to serve as director of the Office of Management and Budget (OMB). He served as Director from January 2001 through June 2003. In this role he was also a member of the National Security Council and the Homeland Security Council.

During his time as the director of the OMB, President Bush admiringly called him the Blade, for his noted acumen at budget cutting.[8] Daniels instituted a first-of-its-kind accountability system for all governmental entities. Daniels came under fire for overseeing a $236 billion annual surplus turn into a $400 billion deficit during his 29-month tenure.

Daniels served as Lugar’s chief of staff during his first term from 1977 to 1982. When Lugar was elected chairman of the National Republican Senatorial Committee, Daniels was appointed its executive director. He served in that position in 1983 and 1984, playing a major role in the successful effort to keep the GOP in control of the U.S. Senate. Daniels was also manager of three successful Senate campaigns for Lugar. Daniels was part of the Reagan Administration when he became chief political advisor and liaison to President Ronald Reagan in August 1985.[3]

Private sector work

In 1987, Daniels returned to Indiana as chief executive of the Hudson Institute, restoring the organization back to financial health. He then left Hudson in 1990 for the pharmaceutical company Eli Lilly and Company. From 1993 until 1997, Daniels was President of North American operations, and promoted to Senior Vice President for Corporate Strategy and Policy at Eli Lilly in 1997 where he served until leaving the company in 2001.[6][3]

In January 2001, upon his appointment as Director of federal Office of Management and Budget (see below), Daniels resigned as a member of the board of Indianapolis Power & Light Co. and sold the $1.45 million he held in company stock, donating the proceeds to charity. Later, that year, Indianapolis Power & Light Co. was bought by Virginia-based AES Corp.[6] After the stocks dropped, the Indiana Securities Division investigated the sale and found no wrongdoing, but political opponents in his 2004 gubernatorial campaign charged that Daniels got rich while other employees suffered financial hardship. A state investigation also found no wrongdoing.

http://en.wikipedia.org/wiki/Mitch_Daniels

***

When AIG suffered rating downgrades, the resulting collateral calls on the credit default swaps proved ultimately to be much more than AIG could handle and became the main reason the company was bailed out – with government commitments that now exceed $150 billion.

The counterparties to the swaps were 25 financial institutions spread around the world. Many of them would have been vulnerable to a domino effect if they hadn’t received, first, the collateral AIG paid them and, later, billions of dollars from the U.S. government that made the counterparties whole.

In this whole disaster that began to play out last September, neither AIG nor the government has ever divulged the names of the counterparties – and that’s what infuriates Bunning and other senators.
Committee chairman Christopher Dodd, D-Conn., describes the counterparties as less than innocent victims who used AIG’s rating (then AAA) to take enormous, irresponsible risks. He complains, It is not clear who we are rescuing.

The Fed’s Kohn argued that he couldn’t give out the names because the counterparties had entered into contracts with AIG not expecting their identity ever to be disclosed. Naming them, he said, might deter them from doing business with AIG again.

A reliable source, however, has given FORTUNE a list of 15 counterparties, with no dollar figures attached. The list contained the names in the following order. FORTUNE sought comment from all of the financial institutions and none said their inclusion on the list was inaccurate.

Société Générale (France)

Goldman Sachs (GS, Fortune 500)

Merrill Lynch International

Deutsche Bank (Germany)

Calyon, Crédit Agricole (France)

UBS (Switzerland)

Barclays (England)

Coral Purchasing, DZ Bank (Germany)

Bank of Montreal (Canada)

Rabobank (the Netherlands)

Royal Bank of Scotland

Bank of America

Wachovia

HSBC (England)

Barclays Global Investors

What is the significance of the rank order of the list? Since it is not alphabetical, one possible interpretation is that the banks are listed in order of the amount of CDOs they insured with AIG.

Goldman Sachs’ No. 2 position fits several press reports that it was an important counterparty, perhaps having insured $20 billion of CDOs with AIG. Goldman has never confirmed that figure, but it has said that its net exposure to AIG – after collateral it received and hedging it did – was minimal.

If indeed France’s Société Générale ranks No. 1 by exposure, it’s a distinction the bank certainly didn’t need. Early last year, the company was staggered by the news that a rogue trader had lost $7.5 billion. Had a domino effect ensued from AIG’s collapse, Société Générale would have been in an especially vulnerable position.

The Fed’s Kohn admitted in the Senate hearings that paying off these counterparties in the course of the AIG rescue will reduce their incentive to be careful in the future, which helps explain why the names have become such sought-after information in the political debate over moral hazard.

But the transcript says not microcosm, but microchasm. And that’s what AIG has proved to be, a money pit of gaping proportions. To top of page
First Published: March 7, 2009: 1:18 PM ET

http://money.cnn.com/2009/03/07/news/companies/aig.fortune/index.htm?cnn=yes

***

Supply Side Economics At Its Best - A Complete Failure

Supply Side Economics At Its Best - A Complete Failure

***

Math whiz James Simons scores top spot on Alpha’s list
By Carol Eisenberg
March 26, 2009 at 10:06am

There’s a reason they’re called Masters of the Universe.

The 25 top hedge fund managers took home a sweet $11.6 billion last year, even in a time of tightening credit and falling stock prices which shuttered many less-nimble funds.

Of course, the price of admission to the club was sharply lower: To make the cut, a hedge fund hotshot needed to earn $75 million, down from the $360 million required for 2007’s top 25, according to Alpha Magazine’s annual rankings.

http://news.muckety.com/2009/03/26/math-whiz-james-simons-scores-top-spot-in-alphas-ranking/13691

***
Alpha Magazine List of Top Hedge Fund Managers 2008

John D. Arnold – Centaurus Energy – founder

William A. Dunn – Dunn Capital Management – founder

Michael Platt – Blue Crest Capital Management – co-founder and CEO

David Harding – Winton Capital Management – founder and managing director

John A. Paulson – Paulson & Co. – president

John Horseman – Horseman Capital Management – founder

David E. Shaw – D.E. Shaw & Co., LP – founder

Dennis Crema – Blue Gold Capital Management – founding partner and CEO

Paul Touradji – Touradji Capital Management – president and chief investment officer

Alan H. Howard – Brevan Howard Asset Management, LLP – co-founder and director

Kenneth G. Tropin – Graham Capital Management – founder and chairman

James H. Simons – Renaissance Technologies – founder

George Soros – Soros Fund Management – founder / previous managing director – Drukenmiller
Henry B. Laufer – Renaissance Technologies – vice president

Pierre Andurand – Blue Gold Capital Management – founding partner & chief investment officer

Raymond T. Dalio – Bridgewater Associates – president

Andrew Hoine – Paulson & Co. – SVP and research director

James S. Chanos – Kynikos Associates – founder // NY Historical Society – trustee

John R. Taylor Jr. – FX Concepts – chairman and CEO

Roy G. Neiderhoffer – R.G. Neiderhoffer Capital Management – founder and president

Christian Levett – Clive Capital, LLP – founder and CEO

Christian J. Baha – Superfund – founder and CEO

Christopher Rokos – Brevan Howard Asset Management, LLP – co-founder

Bruce Kovner – Caxton Associates, LLC – chairman

Stanley F. Drukenmiller – Duquesne Capital Management – chairman and CEO

http://news.muckety.com/2009/03/26/math-whiz-james-simons-scores-top-spot-in-alphas-ranking/13691

http://www.muckety.com/C28ED794B8F772F6AC7684B0B45DC65B.map

***

The Republican Party – wikipedia entry:

Today, the party supports a conservative and/or center-right platform, with further foundations in supply-side fiscal policies and social conservatism.

The Republican Party is currently the second largest party with 55 million registered voters as of 2004, encompassing roughly one-third of the electorate.[1] There have been nineteen Republican Presidents. Republicans currently fill a minority of seats in both the United States Senate and the House of Representatives, hold a minority of state governorships, and control a minority of state legislatures.

http://en.wikipedia.org/wiki/Republican_Party_(United_States)

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Three plead not guilty in SNF patient deaths

Published on Wednesday, February 25, 2009 7:50 AM PST
Cathy Perfect
Kern Valley Sun

Gwen Hughes, 55, Kern Valley Healthcare District’s former Director of Nursing, Debbi Gayle Hayes, 51, the facility’s former pharmacist, and Dr. Hoshang M. Pormir, 48, a staff physician at the KVHD, who was medical director of the Skilled Nursing Facility (SNF), entered pleas of not guilty at their felony arraignments in Superior Court in Bakersfield on Feb. 20.

Hughes and Hayes are charged with eight felony counts of causing harm or death to an elder or dependent adult (elder abuse) and two felony counts of assault with a deadly weapon through overmedication. Pormir faces eight felony charges of causing harm or death to an elder or dependent adult.
Former Director of Nursing Gwen D. Hughes, during her felony arraignment with her attorney, Bruce Blythe.

“These people maliciously violated the trust of their patients, by holding them down and forcibly administering psychotropic medications if they dared to question their care,” California State Attorney General Brown said. “This is appalling behavior, which amounts to assault with a deadly weapon.”

The three were arrested on Feb. 18. Hughes and Hayes were held on $450,000 bail. Pormir was held on $400,000 bail. At Friday’s arraignment, Hughes’ bail was substantially reduced to $25,000, while Hayes and Pormir were released on their own recognizance. Pormir was ordered to surrender his passport. All three defendents’ licenses have been suspended pending the outcome of their trials. If convicted, the three face up to 11 years in prison.
The Investigation

The situation came to the attention of authorities in January 2007, when an unnamed healthcare ombudsman filed a complaint after seeing SNF resident Louise Zimmerman held down and forcibly injected with drugs.

On April 1, 2008, Donny Fong, Special Agent for the State of California, Department of Justice, Office of the Attorney General’s Bureau of Medi-Cal Fraud and Elder Abuse, launched his investigation of claims that 23 residents were being given, in some cases against their will and without their consent, powerful psychotropic drugs such as Depakote, Zyprexa, Resperidol, and Seroquel, at the KVHD’s Skilled Nursing Facility in Lake Isabella. The complaint alleges Hughes, Hayes, and Pormir prescribed and authorized the administering of psychotropic medications to residents in order to chemically restrain them for “the convenience of the staff.”

The alleged druggings of SNF residents, many suffering from Alzheimer’s or dementia, occurred between August 2006 and January 2007.

The Accused

The 27-page complaint paints a depressing picture of a facility dominated by nursing director Hughes who is accused of drugging residents she deemed “troublesome.” Dr. Samuel Obair II, a pharmaceutical consultant who participated in the investigation, learned from nursing staff that troublesome behaviors included “glaring (at Hughes), responding to her in a disrespectful manner, or refusing to eat in the dining room.” According to the complaint, Obair was told by nursing staff that Hughes believed all residents should have been put on Depakote.

Obair stated that the situation at KVHD is the most severe he has witnessed in his entire professional career as a pharmacist. “It is beyond appalling to me and it is the first time that I have ever run into this severity where it affected so many individuals and was being done so blatantly. I have never gone into a facility and seen psychotropic medications and mood stabilizers such as Depakote, being used on so many patients, and so blatantly, without any regards of any type of legitimate type of diagnosis, without any type of documentation of behaviors. I have never seen anything like this, and I have been doing this for 10 years. I have never seen patients as ‘zonked’ and I have never seen those as affected by drugs as these people were.” He said the nurses were the only individuals who complained and witnessed first hand the residents’ conditions deteriorate while being put on these medications.

Based on his interviews with the nursing staff, Obair asserted that Hughes was able to force compliance by her staff through threats of taking away their nursing licenses and having them terminated if they did not follow her orders.

Holly Lightner, former Licensed Vocational Nurse at KVHD from 1999 through mid 2007, told investigators that Hughes ruled the nurses with an “iron fist” and created an extremely hostile work environment for the nurses.

Following Hughes’ dictates, Director of Pharmacy Hayes wrote prescriptions for psychotropic medications SNF residents. Asserting that Director of Nursing Hughes presented herself as “knowledgable and experienced in the most recent research on how to deal with ‘troublesome’ patients,” pharmacist Hayes complied with her orders to write prescriptions. Investigators noted, “This was done without a psychiatric or medical diagnosis performed by a psychiatrist or physician on the residents. KVHD did not employ a psychiatrist.” Many of the residents who were placed on psychotropic medications suffered weight loss, were lethargic, and dehydrated, according to the report.

Department of Public Health Facility Evaluator Nurse, Linda Goldsmith stated, “A physician or psychiatrist must make a medical/psychological diagnosis on a resident and obtain consent from the resident or his conservator prior to administering psychotropic medication to the resident.” Instead, Goldsmith reported, “Hayes wrote the orders for the psychotropic medications and the nurses administered the medication to the residents. The Medical Director Pormir would sign the orders at a later time. There were instances when Pormir did not sign the orders until three weeks after the medication was ordered.”

Obair stated that both Hayes and the KVHD were fined by the Board of Pharmacy, California Department of Consumer Affairs, for writing orders for medications without proper protocols in place. Hayes and KVHD were issued monetary citations.

he explained that there are much greater risks involved with giving psychotropic medications to geriatrics. All of the residents at KVHD who received these medications were geriatrics. Older patients are more prone to side effects than the general population and some psychotropics should not even be given due to the potential of these side effects. Obair said that geriatric patients who receive Depakote, Zyprexa, Resperidol, and Seroquel, can have negative side effects such as psychosis, tremors, constipation, and lethargy.

Obair said the KVHD residents who were put on these psychotropic medications absolutely suffered harm. Based on the review of the Nurse’s Notes and Communication Logs, some of the residents suffered weight loss, body tremors, slurred speech, sat in geri chairs all day with glazed eyes, and some may have become psychotic. Some suffered from these symptoms for close to a month.

Residents were often administered the powerful drugs without patient consent. At least two residents were forcibly injected; a third had psychotropic drugs sprinkled on her food.

Obair said that in his professional opinion, Pormir, Hughes and Hayes were all responsible for chemically restraining these residents.

Fong interviewed DPH Medical Consultant, Dr. Michael Bennett, a physician for 27 years and a participant in the DPH Survey of KVHD in April 2007. Bennett’s primary role in the survey was to interview Dr. Hoshang Pormir, Medical Director of both the Acute Care Hospital and the Skilled Nursing Facility (SNF) of KVHD. Pormir stated to Dr. Bennett that prior to April 2007 he had little involvement with the SNF, but had recently become more involved.
Based on his interview with Pormir, Bennett said he believed that Pormir, as the facility’s medical director, should have been more involved with medical care of the residents and should have been informed and aware of the medical care given throughout the facility. “It was obvious that Pormir was not aware of the care that was provided to the KVHD residents,” Bennett said. Pormir allegedly rubber-stamped Hughes’ orders for medication, failed to examine patients and was  either willfully or naively ignorant  of his proper role, according to the complaint.

Bennett noted that “Pormir was very remote from the patients and was not involved with the day to day care at KVHD. He was also not involved with his staff in how they were providing the medical care to the residents.”

Partial List of Alleged Victims

The attorney general’s investigation identified three residents believed to have died as a result of being drugged and neglected:

• Fannie May Brinkley died Dec. 23, 2006, after receiving Depakote, a drug to treat mood disorders. After not eating for six days, she was rushed to the emergency room, where she died.

• Eddie Dolenc was given unnecessary anti-psychotic medication that caused him to become extremely sedated, and unable to eat or drink. He died one month after being admitted to the facility, likely from dehydration or pneumonia.

• Joseph Shepter went to the emergency room on Jan. 14, 2007, for dehydration and died five hours later. He had been given three anti-psychotic drugs. He also had a foul-smelling bedsore on his right heel. Shepter was given Seroquel, Depakote, and Zyprexa. Shepter was severely dehydrated and lost 24 lbs. in one month.

Dr. Kathryn Locatell, a particpant in the investigation, stated in her report that it is her opinion that Shepter “was severely maltreated by facility staff and Dr. Pormir, and the poor care and treatment caused Shepter to develop an infected heel ulcer, lose almost 20 percent of his body weight in three months, become severely dehydrated, and spiral downhill with pneumonia and sepsis while no one noticed how sick he was until he was hours from death. Likely the addition of Seroquel, Depakote, and Zyprexa played a major role in this downhill course and in my opinion was totally unwarranted. This resident died because of over medication and nursing neglect.”

• Eddie Dolenc was given unnecessary psychotropic medication of Seroquel and Duragesic. Investigators strongly believe that these two medications made Dolenc extremely sedated, which caused him not being able to eat and drink, and that he likely died from some complication such as dehydration or pneumonia that was not noted by KVHD medical staff. Dolenc died at KVHD only one month after being admitted to the facility.

• Jack Wallace was given high doses of psychotropic medications of Seroquel, Depakote, and Ativan at KVHD per orders of pharmacist Hayes. These three medications in combination surely caused resident to have severe side effects that led to his severe dehydration and near comatose state on Oct. 3, 2006. Dr. Locatell believed that these medications at such high dosages were totally unwarranted. In Wallace’s care plan review note, Hughes wrote that Wallace was hallucinating.

• Alexander Zaiko was admitted to KVHD on Sept. 12, 2006 and was dead by Sept. 20, 2006. He died at KVHD of pneumonia and severe dehydration. One day after being admitted to KVHD, pharmacist Hayes increased Zaiko’s dosage of Zyprexa by 50 percent. Hayes then ordered Depakote for Zaiko for his dementia. On Sept. 15, 2006, a nurse charted Zaiko as having drunk only about 1 ounce of water and later that day he was moaning with pain, and did not respond verbally.

http://www.kvsun.com/articles/2009/02/25/news/doc49a5663ca94f8001116390.txt

***

***
Kim Manire wrote on Feb 26, 2009 6:28 AM:
There are cases all across the country that this is happeing in. I am in Texas, and the same thing happened to my father-in-law. He was taken over and locked up and medicated, all his assests were taken and used to pay the court appointed  guardians , and their attorneys, the doctors and the nursing homes. The was estates depleted and then the elderly is put on Medicaide, then within only a few weeks they die of dehydration or pneumonia.

Kim Manire wrote on Feb 26, 2009 6:06 AM:
This is what is happening all across the country:
1. Many of our elderly are taken over by courts,
2. Appointed a guardian,in most cases friends of the court,
3. The guardian then isolates the elderly person and then keeps them from family,
4. This upsets the elderly person, and they start voicing their wishes and wants,
5. So then the guardian, and doctors start medicating, the person is then easier to manage for the staff.

http://www.kvsun.com/articles/2009/02/25/news/doc49a5663ca94f8001116390.txt

***
March 1, 2009
Veterans’ families question cause of deaths
Post-traumatic stress syndrome treatment cited
By Julie Robinson
Staff writer

CHARLESTON, W.Va. — Stan and Shirley White’s son Andrew, a Marine reservist, died at home 2 1/2 years after he returned from Iraq. Janette Layne lost her husband, Eric, in similar circumstances after his return from Iraq.

More than a year later, they still don’t know if the medication their loved ones were taking for post-traumatic stress disorder contributed to their deaths.

Andrew White and Eric Layne were taking Seroquel, Klonopin and Paxil, along with prescription painkillers.

Three other West Virginia servicemen have died in their sleep while undergoing PTSD treatment after returning from Iraq.

Investigators from the U.S. Department of Veterans Affairs looked into the deaths. Stan White, who actively researches similar deaths and PTSD-related medications, contacted Sen. Jay Rockefeller, who requested the investigation.

The investigators interviewed the White and Layne families and visited Huntington Veterans Affairs, the Charleston Community Based Outpatient Clinic and the Cincinnati VA residential program, where Layne was treated. They reviewed autopsy and toxicology reports for both patients.

In August, they concluded that White and Layne received care that met  community standards  at the VA facilities, and that the men died from a combination of prescribed and non-prescribed medicines.

In the presence of PTSD, other mental health conditions, and uncertain use of medications by patients, we are unable to draw conclusions about the relationship between medication regimens and these deaths,  the investigators wrote.

That’s not good enough for some family members.

I don’t have a direct answer as to why he died,  Janette Layne said of her husband.  Nobody has told me what caused his death.

The medical examiner listed  overintoxication of medicines  as the official cause of death for both Layne and White. The amounts of prescribed medications in both men’s systems were within acceptable limits, said Janette Layne.

They also had taken some painkillers that hadn’t been prescribed for them, according to Stan White and Janette Layne.

Narcotic painkillers are a leading cause of accidental overdose, and those painkillers can be especially dangerous when used in combination with other drugs.

These drugs need to have a warning that you cannot mix them with painkillers,  Stan White said.  At no time, were we ever warned that Andrew should not mix them with painkillers.

Stan White and Dr. Fred Baughman, a California neurologist who questions the use of medications to treat mental disorders except in rare circumstances, plan to visit Washington this month, armed with the stories of nine servicemen whose deaths mirror Andrew White’s situation.

The soldiers are from West Virginia, Ohio, Pennsylvania and New York. Some of their families will go to Washington with White and Baughman and meet with their state representatives.

The prescriptions were given by doctors at VA facilities in Huntington, Charleston and a residential program in Cincinnati where Layne had just completed an eight-week in-patient treatment. White’s doctor instructed him to take as much Paxil and Seroquel as needed, Shirley White said.

They said he had lethal amounts in his system,  she said.  So, no, we don’t have answers.

A second look

Stan White hopes to convince policy-makers in Washington to take a second look at pharmaceuticals prescribed to PTSD sufferers.

How safe are the combinations? How carefully should they be dosed? Should people with PTSD, which sometimes includes forgetfulness and memory loss, be given prescriptions that require careful monitoring?

Despite last August’s report, the Whites are convinced there is a connection to their son’s death.

I think the goal of talking before Congress is that we don’t think the VA is approaching treatment in the right way,  Shirley White said.

Both White and Baughman urge increased counseling resources for returning veterans, including counselors available after work hours. Working veterans can’t repeatedly miss work for ongoing appointments.

I’m not a doctor. The medicine might be needed at first, but the soldiers need therapy and counseling,  Stan White said.  I really think that’s the key to this thing.

Page 2 of 2

Stan White and Baughman track soldiers and veterans who die in their sleep or slumped at work stations. They contact the families when they hear about such deaths to ask about psychiatric diagnoses and medications. Military casualty officers won’t release details.

They found three others from West Virginia. Jeremy Harper, 19, of Dunbar died Jan. 1, 2005, at Walter Reed Army Medical Center while being treated for PTSD. Nicholas Endicott of Logan County, who died at a military hospital in Bethesda, Md., also suffered from PTSD. Derek Johnson, 22, of Hurricane died last year while taking the three drugs.

Baughman notes Seroquel’s link to fatal heart arrhythmias and irregularities. He’s now researching the death of Chad Oligschlaeger, 21, a Texas Marine who died in May while taking six medications for PTSD, including Seroquel.

I’m telling you right now, these drugs are unfit for human consumption, across the board,  Baughman said.  Their side effects take two to three pages to list.

Faces behind the figures

When Eric Layne died Jan. 26, 2008, Janette Layne was pregnant and was caring for their 1-year-old son, Shamus. She and her husband served together in the National Guard in Iraq. His PTSD symptoms surfaced shortly after their homecoming.

We had no idea what post-traumatic stress disorder was. We thought it was something old Vietnam veterans on the side of the street had,  Janette Layne said.  We were working, we had jobs and were well-fed and clean. We couldn’t imagine that would ever be us.

As Eric Layne became increasingly depressed, angry and short-tempered, his wife encouraged him to seek treatment through the VA. He was reluctant, partially because he sensed an underlying message in the military to  just suck it up,  she said.

It’s ironic. Eric didn’t want to go and he didn’t want to take medicine,  she said.  They told him just to come and talk. He left with a prescription and the PTSD just got worse.

When Eric Layne lost his job in the fall of 2007, he entered an eight-week residential care program in Cincinnati where his medications were strictly monitored. He came home on the weekends, and his wife scarcely recognized the detached, exhausted man he had become.

The night he completed the program and came home for good, the Laynes agreed Eric would see a doctor about the side effects of the medicine.

He died that night.

I’ll never forget that day. I picked up Shamus from day care and a woman asked me if the baby was going to be a boy or girl. When I said she was a girl, the woman said, ‘All you need is a dog and you’ll have the perfect family,’  Janette Layne said.  That night Eric passed away.

http://wvgazette.com/News/200902280644

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Riveredge Hospital patient’s death went unreported to Illinois
Pregnant woman with schizophrenia was prescribed risky drug

By Christina Jewett and Sam Roe | Chicago Tribune
February 26, 2009

Tameka Williams, 27, lay on a gurney in the grips of schizophrenia, gently thumping her fist against her forehead as she waited to be admitted to Riveredge Hospital in Forest Park.

In little more than a week, Williams and her 8-week-old fetus would be dead. Riveredge Hospital did not report the Aug. 10, 2007, death to state regulators, noting that Williams died in an emergency room an hour after she collapsed at the psychiatric hospital.
But regulators say state law required Riveredge to report the death. The Illinois Department of Public Health only learned of Williams’ death a year later after an employee complained.

The state concedes that it erred when it issued no citation for the hospital’s silence.

Related links

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Despite probe, problems continue at psych facility
*
Illinois Department of Public Health report about Tameka Williams’ death
*
Riveredge case files: Unheeded allegations of harm
*
Riveredge Hospital: Previous coverage

Williams’ death raises questions not only about state oversight but also about care at the beleaguered hospital, which in three days gave Williams 10 doses of a drug that is so risky that the Food and Drug Administration has issued five warnings about its effects.

Just one day before regulators converged on the hospital to look into the employee complaint, the chief executive officer of the corporation that owns Riveredge told a group of investment analysts that the company is transparent with its overseers.

As a matter of fact at all [of our] facilities, we thoroughly report incidents to relevant agencies as soon as possible,  Joey Jacobs, CEO of Tennessee-based Psychiatric Solutions, said Aug. 4.

The hospital released a statement in response to questions about the death, noting that Riveredge and Loyola University Medical Center in Maywood, where Williams died,  did everything they could to save her.

Sadly,  the statement says,  her death was unavoidable.

Williams’ mother questioned that description of the death.

They weren’t even looking after her,  Carlina Williams said in her West Side apartment.  What can I do?

State public health investigators found lapses in Williams’ care, some involving an antipsychotic drug that has not been evaluated for pregnant patients.

While hospital records state that a physician described to her the benefits of clozapine, the antipsychotic drug she was given, Williams’ signature is not on a patient consent form.

The drug’s warning literature states that patients taking it are 27.5 times more likely than the rest of the population to die from a blood clot lodging in the heart.

Despite the risks, the Health Department report said staff did not document checks of Williams’ vital signs each day and her unborn child’s heartbeat each shift.

Just before 2 a.m. on the eighth day of Williams’ stay at the hospital, she called out to a staff member, a Cook County medical examiner’s report says.

Williams said she felt weak but needed to go to the bathroom, and the worker helped her sit up in bed, the report says. The staffer looked on, though, as Williams held on to a wall, grew visibly weak in the legs and fell to the floor, the report says.

Hospital regulators found that the hospital failed to ensure Williams’ safety in the moments before staffers called a  code blue.

Williams’ autopsy states that she died after a blood clot in her right leg broke loose and lodged in her heart.

Dr. Nancy Jones of the medical examiner’s office said Williams’ pregnancy and obesity were contributing factors in her death. Jones said the office typically checks for drugs that people tend to abuse. She said the examiner did not screen Williams’ blood to determine if clozapine was a factor in her death.

christina.jewett@propublica.org

sroe@tribune.com
http://www.chicagotribune.com/news/local/chi-riveredge_sidefeb26,0,7897926.story

***
PROFESSIONAL ISSUES
Treating the homeless can go beyond medical care

Ethics Forum. Posted March 2, 2009.

What duties does a doctor have to a homeless patient who repeatedly visits the ED?
Scenario: What duties does a doctor have to a homeless patient who repeatedly visits the ED?

George, 57 and homeless, walks into your emergency department for the second time this week. He reports that the  swelling  on his arm has not improved, despite a prescription for Bactrim from the same ED seven days earlier. He describes a new cough and sore throat and reports twinges of chest pain. He also says that he took the prescription for three days, but had to stop when his backpack and the medication were stolen. A recent inpatient cardiac workup was negative. The furuncle on his arm is drained and new oral antibiotics given; all other workup suggests absence of acute medical illness. The overnight low temperature will be 38 degrees. George complains that eight hours in the ED without getting a meal could be grounds for a lawsuit. As you bring him a seven-day course of antibiotics and discharge papers, he says,  I could be coming down with pneumonia,  and requests hospital admission. His exam and x-ray were negative. When you ask about the local shelter he states,  They don’t want me back there, and the place has no beds anyway.
ETHICS FORUM
Answers to questions on ethical issues in medical practice
SEE ARCHIVES

Reply:

An ED clinician may feel uneasy at the prospect of managing a patient who visits the emergency department frequently, complaining of serious symptoms (e.g., a possible heart attack) but who is homeless and may simply be seeking shelter. What ethical responsibilities are in question?

The situation is common. Emergency department clinicians are obliged to confront a remarkably depressing fact of American life, namely, the existence each night of approximately 700,000 Americans who have no place to sleep, whose indignities are legion, and whose needs may not fit the typical definition of medical care. Homeless persons are more likely than others to use ED services, in part due to lack of access to other regular sources of outpatient medical care or nonmedical subsistence needs.

Emergency homeless shelters are often better at meeting such needs than are EDs, though this is not always the case, and the patient’s protestation that the shelters are full is often true. A 2007 assessment in Los Angeles County found that there were 16 homeless persons for every emergency shelter bed.

–Stefan G. Kertesz, MD, staff physician, Birmingham VA Medical Center; assistant professor, University of Alabama at Birmingham School of Medicine

Ethics Forum discusses questions on the ethics of medical practice. Readers are encouraged to submit questions and comments to the Ethics Group, AMA, 515 N. State Street, Chicago, IL 60654; fax 312-464-4613. Opinions in Ethics Forum reflect the view of the author and do not constitute official policy of the AMA.

http://www.ama-assn.org/amednews/2009/03/02/prca0302.htm

***

Audit reflects tragedy of child welfare system
Tulsa World – ?9 hours ago?
One girl taken into DHS custody at the age of 3 was placed in 42 different locations before aging out of the system including psychiatric placements …

Staten Island baby starved to death unnoticed by ACS
New York Daily News – ?Feb 24, 2009?
Assistant District Attorney Karen Varriale told a judge that Matthew’s death wasn’t caused by an  intentional act,  but  the parents failed to feed the …
Feb 5, 2009 12:43 pm US/Eastern
Reforms At NY Hospital Where Woman Died On Floor
Shock Surveillance Video Shows 49-Year-Old Collapse And Lay On Ground for Over An Hour After Dying
NEW YORK (AP) –
Surveillance video footage from Kings County Hospital shows a woman dying on the floor of a psychiatric emergency room while security guards and staffers do nothing about it.

* Woman Neglected In Hospital Laid To Rest (7/7/2008)
* Hospital Video Shows Dying NYC Woman Neglected (7/1/2008)
* Woman’s Hospital Floor Death Blamed On Blood Clots (7/12/2008)
* NYC To Face $25 Million Lawsuit Over KCH Neglect (7/8/2008)

Reforms are being made at a New York City hospital where a woman died unnoticed on a waiting room floor in a scene recorded by security cameras.

The improvements were outlined Thursday by Health and Hospitals Corporation President Alan D. Aviles. He was marking the opening of a new psychiatric facility at Brooklyn’s Kings County Hospital Center.

Aviles says the reforms include staff increases and a new leadership team. A second phase will include patient mentors, and a consumer and family advisory group.

Esmin Green, 49, had been sitting in a waiting room at the city-owned Kings County Hospital Center for nearly 24 hours when she collapsed from her chair and slowly died on June 19, 2008.

She lay on the floor at the Brooklyn hospital for an hour before a nurse finally checked her pulse.

After an autopsy and weeks of tests, the medical examiner’s office concluded that Green was killed by pulmonary thromboemboli, blood clots that form in the legs and travel through the bloodstream to the lungs.

The medical examiner said the clots were due to  deep venous thrombosis of lower extremities due to physical inactivity,  complicating an underlying psychological illness: chronic paranoid schizophrenia.

Green died while awaiting care in the hospital’s psychiatric emergency room. EMS workers had brought her to the center on the morning of June 18. The hospital said she was suffering from agitation and psychosis and was involuntarily admitted after refusing medical review.

The emergency room is chronically overcrowded, and Green waited overnight for further care.

A recording of her death prompted national outrage when it became public.

After she collapsed, neither fellow patients nor the hospital’s staff moved to help her, even as she thrashed her legs on the floor and tried to get up.

Two security guards and a member of the hospital’s medical staff can be seen on the video, stopping to look at Green briefly before walking away.

She stopped moving about 30 minutes after falling and was dead when a nurse finally examined her another 30 minutes after that.

An attorney for Green’s family, Sanford Rubenstein, said the finding suggested that the hours she sat in the hospital factored in her death.

The length of time that she spent in the emergency room … very well may have contributed to her death,  he said.  Physical inactivity was obviously a significant contributing factor.

He said that had Green been carefully attended to when she arrived at the emergency room, doctors might have noticed swelling in her legs and taken action.

People known to be at risk from deep vein thrombosis are often given anticoagulation drugs or compression stockings, which can keep clots from forming, and advised not to sit for hours at a time.

The condition, however, is not always easy to detect. The National Heart Lung and Blood Institute said about half of the people with deep vein thrombosis have no symptoms at all.

Airlines often advise passengers on very long flights to stroll the aisle, periodically, to prevent blood clots.

The city Health and Hospitals Corp., which owns Kings County Hospital, had no immediate comment Friday.

HHC officials have previously expressed outrage at the way Green was treated. Six employees lost their jobs over the incident, even before it became public.

The agency also immediately reported the death to the state and voluntarily turned over the security records to lawyers already suing the city over alleged patient neglect at the hospital.

http://wcbstv.com/topstories/brooklyn.hospital.neglect.2.927798.html

***
Jul 8, 2008 7:31 pm US/Eastern
NYC To Face $25 Million Lawsuit Over KCH Neglect
Shock Surveillance Video Shows 49-Year-Old Collapse And Die After Being Left Unattended For Over An Hour
Reporting
John Slattery
NEW YORK (CBS) –

It was a shocking surveillance video shown around the world. A mother was left to die in a New York City hospital waiting room.

Now, as CBS 2 HD has learned her outraged family is taking action with a multi-million dollar lawsuit against the city.

On their way out of the city, back to their home in Jamaica, family members visited Kings County Hospital, where Esmin Green died. Earlier Tuesday, the woman’s daughter and the sister said they will sue the city for $25 million. Tecia Harrison was grief stricken.
The image of my mom fainting on the floor, and dying, ahh, ahh,  said Harrison, 31.

Her mother, 49-year-old Green, is seen in the shocking video falling out of a chair, onto the psychiatric waiting room floor, and left there for more than an hour.

We don’t treat animals like that,  sister Brenda James said.  We don’t treat animals like that.

On June 19, Green waited to be seen more than 24 hours, during which time security guards came in to look at her, not once, but twice, and did nothing. And then, it’s charged hospital records were altered to hide the facts.

The family says Green was killed twice, first by neglect.

Secondly, killed by people who tried to cover us what happened,  James said.

On Sunday, there was a funeral for Green, remembered in death, but ignored on the last day of her life. Family members who came up from Jamaica, who were asked if Green was neglected by the family, said they tried to stay in contact, even though Green did not have a phone of her own.

When we didn’t hear Sunday, Monday, Tuesday, we got worried, because we called her constantly,  Harrison said.

Not only is the hospital being sued, but so are a number of its employees, six of whom have already been fired.

The Health and Hospitals Corporation president, Alan Aviles, issued a statement Tuesday evening:

We failed Esmin Green and believe her family deserves fair and just compensation,  Aviles said.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

http://wcbstv.com/local/brooklyn.hospital.neglect.2.766372.html

***
Abuse Is Found at Psychiatric Unit Run by the City

By ANEMONA HARTOCOLLIS
Published: February 5, 2009

The federal government has documented a pattern of sexual and other violent assaults among patients at the psychiatric unit of a city-run Brooklyn hospital where a woman died in June on the floor of the emergency waiting room while staff members ignored her.
Video of Dying Mental Patient Being Ignored Spurs Changes at Brooklyn Hospital (July 2, 2008)
Times Topics: Kings County Hospital
Department of Justice Report on Kings County Hospital (pdf)

After a yearlong investigation, the Department of Justice portrayed the unit at Kings County Hospital Center as a nightmarish place where patients were not treated for suicidal behavior, were routinely subdued with physical restraints and drugs instead of receiving individualized psychiatric treatment, and were frequently abused by other patients.

The details are laid out in a 58-page report to Mayor Michael R. Bloomberg that was made public on Thursday.

The investigators found that the psychiatric service operated like a prison. The report said that instead of meaningful treatment and diagnosis, the patients received frequent visual checks by the staff, and that even when patients were supposedly under watch, violence and attempted suicides occurred.

Among the most serious incidents the report documented were an October brawl among six patients that left one needing surgery, and an autistic patient being forced to perform oral sex in November. The report also included allegations that a woman was raped and that a 14-year-old was forced to engage in oral sex by a 16-year-old.

All four incidents occurred after the highly publicized death of Esmin Green, a Jamaican immigrant with a history of depression, who collapsed on the floor of the emergency waiting room after waiting nearly 24 hours to be seen. A surveillance video showed Ms. Green, 49, lying on the floor for nearly an hour; during that time, a guard came in to check on her by wheeling his chair along, and another staff member prodded her with a foot.

“While perhaps unique in the extent of the harm that resulted, the tragic case of Ms. Green typifies the patterns of inadequate care and treatment,” reads the report, from Loretta King, an acting assistant attorney general, and Benton J. Campbell, the United States attorney in Brooklyn.

The report, a summary account of the federal investigation that resulted from a 2007 lawsuit by the New York Civil Liberties Union and others, found at least three cases, including Ms. Green’s, when employees falsified records to hide their neglect.

The report became public when Alan D. Aviles, president of the city’s Health and Hospitals Corporation, convened a news conference on Thursday to announce that “radical changes” had been made at Kings County, which treats many of the city’s most severely mentally ill. While questioning some details of the report, he admitted that the unit “too often failed” its patients.

At the hospital’s new $153 million building in central Brooklyn, he announced the replacement of its top two administrators and the addition of 200 medical personnel to its 600-member staff.

Mr. Aviles also outlined new protocols for screening emergency-room admissions, using nonuniformed security officers trained in crisis intervention rather than hospital police. Mr. Aviles noted that in Ms. Green’s case, two guards had looked in on her but decided that she was not their responsibility.

“They clearly felt disconnected from the treatment team,” Mr. Aviles said. “This says something very damning about the model.”

Mr. Aviles said the hospital had cut the average time in the emergency department to 8 hours from 27, and that the number of patients waiting seldom exceeded 25 now, compared with 50 or more on occasion.

“It would be disingenuous of me to suggest that we could prevent all such future incidents, but we can do better,” he said.

Stu Loeser, a City Hall spokesman, said that the mayor believed that the Justice Department report raised “serious issues” but that the changes Mr. Aviles announced “go a long way to addressing many of the conditions.”

The Justice Department’s report said conditions at the psychiatric unit were “highly dangerous and require immediate attention.” It added: “Substantial harm occurs regularly due to K.C.H.C.’s failure to properly assess, diagnose, supervise, monitor and treat its mental health patients.”

The report said that many patients were admitted with “catch-all” diagnoses and that the staff used “boilerplate forms and checklists” rather than writing “individualized narratives.”

The report said that patients were often left in restraints for the two-hour limit even though they had changed their behavior, suggesting that the confinement was punishment rather than therapy. And investigators found it was common to administer injections of more than one antipsychotic medication simultaneously, despite the risk of side effects and overdosing.

In one case, a patient’s treatment plan did not address his obesity, high blood pressure and diabetes, until he had a stroke, according to the report.
More Articles in New York Region » A version of this article appeared in print on February 6, 2009, on page A19 of the New York edition.

http://www.nytimes.com/2009/02/06/nyregion/06kings.html

***
Investigation After Woman’s Death Finds Pattern of Violence, Sexual Abuse at New York Hospital

Friday, February 06, 2009

NEW YORK —  Federal investigators have found conditions at a Brooklyn hospital where a woman died on a waiting room floor  disturbing,   highly dangerous  and requiring  immediate attention.

The yearlong investigation by the Department of Justice documented a pattern of  inadequate care,  violence and sexual abuse at Kings County Hospital Center in Brooklyn.

City Health and Hospitals Corporation President Alan D. Aviles says the unit  too often failed  its patients.

http://www.foxnews.com/story/0,2933,489011,00.html

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Autopsy: Bay City man froze inside his home

by Tom Gilchrist | The Bay City Times

Monday January 26, 2009, 8:28 AM

Ryan Hernden, 15, and his father, Jim Hernden, 41, stand in front of the yellow Bay City home where their neighbor, 93-year-old Marvin Schur, froze to death.

City manager says utility followed policy on limiting man’s electricity

A pathologist said a 93-year-old Bay City man froze to death inside his home – his body found days after city workers said they limited electricity flowing to the house.

Marvin E. Schur suffered “a slow, painful death” inside his home at 1600 S. Chilson St. on Bay City’s southwest side, said Dr. Kanu Virani, who performed an autopsy on the body.

UPDATE: Bay City raises electric rates as Marvin Schur’s death spurs anger

ALSO: Marvin Schur’s death was preventable, Lansing officials say

“Hypothermia shuts the whole system down, slowly,” Virani said. “It’s not easy to die from hypothermia without first realizing your fingers and toes feel like they’re burning.”

Funeral services for Schur, a retired pattern-maker who lived alone, are at 11 a.m. Wednesday at the Gephart Funeral Home, 201 W. Midland St. Schur’s wife, retired elementary-school teacher Marian I. (Meisel) Schur, died several years ago, and the couple had no children.

Virani, Oakland County’s deputy chief medical examiner, performs autopsies for Bay County and numerous other Michigan counties. Of about 15,000 autopsies Virani has conducted, he said Marvin Schur’s autopsy “is the first one I can remember doing on someone who froze to death indoors.”

Virani said the temperature inside Schur’s home was less than 32 degrees when neighbors George A. Pauwels Jr. and his wife, Shannon, found Schur’s body Jan. 17.

George Pauwels Jr. said Schur owed almost $1,100 in electricity bills to the city of Bay City, though Pauwels said he noticed money clipped to those bills on Schur’s kitchen table the day he found Schur’s body.

Bay City Manager Robert V. Belleman said a worker with Bay City Electric Light & Power placed a “limiter” device outside Schur’s home, between Schur’s electricity meter and electrical service, on Jan. 13.

The device restricts the amount of electricity reaching the home and if a homeowner tries to draw more electricity than the limiter allows, “it blows the limiter, just like blowing a fuse, and then you go outside and reset it,” Belleman said.

Belleman said he doesn’t know if a city worker made one-on-one contact with Schur to explain the limiter’s operation. Virani said he doesn’t know if Schur suffered from dementia, which could have interfered with his ability to know how to reset a limiter.

Pauwels said Schur couldn’t hear well, and said he believed Schur “had a little bit” of dementia.

Belleman said city workers keep the limiter on a residence for 10 days, at which point the city shuts off all electricity if the homeowner hasn’t paid his utility bill or arranged to do so.

Jim Hernden, 41, a neighbor of Marvin Schur, said Bay City Electric Light & Power workers should insist on meeting face to face with a homeowner, or a homeowner’s neighbors, before installing a limiter or shutting off power.

“We’re a small enough town where someone like Marvin should get a little bit extra care,” he said.

Bay City Police Department officers investigated Schur’s death, but declined comment, referring all questions to Belleman.

Pauwels said he blames the city for Marvin Schur’s death.

“His furnace was not running – the insides of his windows were full of ice the morning we found him,” Pauwels said. “This (limiter) is supposed to regulate the amount of electricity he was using, but still allow enough power to run the furnace.Obviously, it didn’t work.”

Belleman said city officials will review Electric Light & Power policies in the wake of Schur’s death. Belleman said he doesn’t believe the city did anything wrong.

http://www.mlive.com/news/bay-city/index.ssf/2009/01/autopsy_bay_city_man_froze_ins.html

**

WWII Veteran Freezes To Death In Own Home

Memorial Service Set For Wednesday

POSTED: 2:20 pm EST January 26, 2009
UPDATED: 11:17 am EST January 28, 2009

Officials in Mid-Michigan said the 93-year-old man who owed more than $1,000 in unpaid electric bills froze to death inside his home — where the municipal power company had restricted his use of electricity.Neighbors and friends of Schur want answers as to how this could happen.“Now that we do know it was hypothermia, there’s a whole bunch of feelings that I’ve got going through me,” said Jim Herndon, a neighbor of Schur’s. “There’s anger, for the city and the electrical company.”

http://www.wnem.com/news/18566890/detail.html#-

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Inventor of restraint chair comments on Iowa Ombudsman’s report
Emma Struve
02/24/2009

Our device, and devices like ours, have saved countless detainees and staff from injury and death,  stated Tom Hogan, former Crawford County Sheriff and inventor of the Emergency Restraint Chair now manufactured by his company E.R.C., Inc. based in Denison.

Hogan has been manufacturing restraint control devices for about 15 years and has always issued guidelines of when, how, and how long to use the product.

He was consulted about these recommendations by the State of Iowa Ombudsman’s Office during the office’s investigation into allegations of improper or abusive use of restraint devices in jails including those of Appanoose, Wapello, Jefferson, Polk and Woodbury Counties.

In addition to consulting manufacturers to establish intended use and guidelines for their products, the Ombudsman sought information from allied industries that use restraint devices such as nursing homes and mental health institutions to determine what policies, procedures, and training typically accompanied the use of such devices, as well as reviewed applicable federal and state laws for any infraction by the jails.

In a February 19 press release, Ombudsman William P. Angrick II said he  believes restraint devices can be a useful tool to safely control an inmate. Concerns arise when the devices are not used in accordance with manufacturer policies or for reasons other than those allowed by Iowa law.

The State employs an Ombudsman to investigate the administrative actions of local and state governments when complaints arise that these bodies acted in ways contrary to law or that were unfair or oppressive.

Following an investigation, the Ombudsman may release recommendation to the entities involved that include suggested changes although the office does not directly impact the rules or laws these agencies must follow.

RESTRAINTS . . . Page 2A

RESTRAINTS, from Page 1A

The investigation into county jails was initiated after five former jail inmates contacted the Ombudsman and reported being restrained for periods of time exceeding 12 hours, being threatened with physical harm while in restraints, being physically assaulted while restrained, and receiving inadequate medical or psychiatric care before, during, and after being restrained by devices that included chairs with arm, leg and upper body restraints and boards with up to ten point restraints that held the detainee in a prone position.

Restraint devices have been found to have adverse physical and mental health affects and in at least two notable cases, cited by the Ombudsman’s report, resulted in the death of the inmate and monetary judgments against the facility using the restraint device.

The death of inmate Michael Oliver Lewis in a Colorado county jail in 1998 resulted from a combination of heart disease, medication, and the use of a restraint board. He was restrained for three hours. The coroner could not determine which factor had a dominant role in causing Lewis’s death. Michael Valent died in a Utah state prison in 1997 from a pulmonary embolism after spending 16 hours in a restraint chair. Blood clots, caused by prolonged immobilization, traveled through his lungs.

Hogan commended the efforts of the Ombudsman and said,  We’re glad the state of Iowa is taking steps to standardize state guidelines.

Currently, Iowa law is vague about the specifics of restraint device use and provides the following instruction,  Restraint device(s) shall be used only when a prisoner is a threat to self or others or jeopardizes jail security.

Re-evaluation of existing law and policy will  make the industry better, safer,  Hogan continued.

Crawford County Sheriff’s Chief Deputy Mike Bremser recalled no problems stemming from the use of a restraint chair in the Crawford County Jail and reiterated Hogan’s assessment. He said,  It has stopped prisoners and officers from being injured…(the chair) does exactly what it is supposed to do.

While the Ombudsman’s investigation did not find that the jails in question violated existing law, the 182 page report offered specific suggestions to reduce liability including: enhanced screening at intake to alert jail staff of mental or physical ailments, using the least restrictive means of maintaining control of the prisoner (using a restraint chair or board as a last resort), alerting the jail’s medical staff when a prisoner was placed in restraints and providing continuing medical supervision, videotaping the prisoner while being restrained and maintaining a written record of the process, and conducting in-person evaluation of the prisoner’s disposition and physical status every 15 minutes during the restraint period.

These recommendations were adopted by Polk, Jefferson, and Wapello Counties but rejected by Woodbury and Appanoose Counties citing current compliance with Iowa law and budgetary constraints.

Bremser remarked about the Crawford County Jail:  We are compliant with the majority of recommendations in the (Ombudsman’s) report within our financial ability.

Specifically, Bremser continued, 15-minute checks are always conducted and the chair is never used as a form of punishment.

With any tool there is the potential for misuse, Bremser cautioned, and the restraint chair is used when people are combative, violent, and angry, behaviors sometimes induced by alcohol or drug use. However, he concluded,  We have policies and procedures in place to make sure the chair is being used appropriately.

http://www.dbrnews.com/site/news.cfm?newsid=20268467&BRD=2703&PAG=461&dept_id=555123&rfi=6

***

[My note -

This story is from Canada but across the US any search of Tazer and wrongful death/ police brutality yields hundreds of stories in every state and in nearly every case the same results as this - no accountability for the officials and law enforcement personnel that killed, maimed and wrongfully brutalized.]

Inquiry begins into Halifax Taser-related death
By Richard Foot, Canwest News ServiceFebruary 17, 2009

An inquiry begins Wednesday in Halifax into the death of a mentally ill man who died after he was hit with a Taser.
Photograph by: Gord Waldner, The StarPhoenix

HALIFAX — A public inquiry begins in Halifax on Wednesday into the death of a mentally ill man who died a day after he was hit with a Taser stun gun while in police custody.

Howard Hyde, 45, died in a jail cell in November 2007 — five weeks after the high-profile death of Polish immigrant Robert Dziekanski, who was Tasered by the RCMP at Vancouver International Airport.

Dziekanski’s death is the subject of an ongoing inquiry in B.C.

A Nova Scotia judge will now begin a similar investigation in Halifax, which both Hyde’s family and mental-health advocates are hoping will lead to new national standards for the treatment of psychiatric patients in the criminal justice system.

Hyde suffered from paranoid schizophrenia. He was arrested by Halifax Police on an assault charge after his girlfriend reported a domestic disturbance, and told police Hyde had not been taking his medication.

Hyde had been Tasered several years earlier, and reportedly had a deep fear of police. As he was being booked at the police station in 2007, he tried to flee. A violent struggle ensued, according to police, and Hyde was Tasered as officers brought him under control.

He was then taken to a hospital emergency department, and later locked up for the night in a corrections facility. The next day, during another struggle with authorities, he collapsed and died, about 30 hours after being shocked with the Taser.

He is the second Nova Scotian to die after being hit with a Taser in the past four years.

Nova Scotia’s medical examiner ruled Hyde’s death accidental — a result of  excited delirium  due to his mental illness — and not a result of the Taser strike.

But that hasn’t stopped family members or health-care advocates asking whether he received proper psychiatric care after his arrest.

In a letter to the Schizophrenia Society of Nova Scotia, Hyde’s girlfriend Karen Ellet says Hyde was not admitted to the East Coast Forensic Hospital — which treats mentally ill people involved in the justice system — based on an examination of him by a nurse, but not a doctor.

The nurse’s decision  has me boiling over,  says Ellet in her letter to the Society.  Since when does a nurse (make) such major decisions . . . It should have been a medical mental-health doctor.

Because of her very, very poor decision, Howard may have been alive today. He was treated as a prisoner, not as a mental-health patient.

Ellet’s letter was read to Canwest News Service by Stephen Ayer, executive director of the Schizophrenia Society, who agrees that Hyde should have been admitted to the mental-health hospital.

There’s a lot of questions we want to see addressed in this inquiry,  says Ayer,  and they’re all very relevant, not only to Mr. Hyde’s situation, but to people who live with mental disorders and who come into contact with the law and are restrained, or Tasered, or both.

There will be lessons out of this for the whole country, and for all police forces that deal with people who live with psychosis and become acutely agitated.
Halifax Police have said they did everything possible to restrain Hyde before using the Taser.

Provincial justice and health officials have declined to comment on the details of the case until the inquiry finishes its work.

RCMP Commissioner William Elliott announced last week that firing a Taser at an  acutely agitated  person does pose a risk of death, and said the force has changed its policy to only allow officers to use Tasers to protect themselves or the public.
© Copyright (c) Canwest News Service

http://www.canada.com/Health/story.html?id=1298715

***
‘Sanism’ leads to prejudice in relating to the mentally ill
Posted by the readers’ page February 26, 2009 5:00AM
Categories: Letters

By Lindsay J. Webb

I wanted to add to the well-researched and heartbreaking article Sunday,  Mentally ill bear brutal stigma.

One disorienting portion of the article noted that a mental health professional would employ punitive measures in a psychiatric facility. There is no reason a human being in a psychiatric hospital should not have a bed to sleep on.

http://blog.syracuse.com/opinion/2009/02/sanism_leads_to_prejudice_in_r.html

***

The only good thing that makes good sense in Washington, D.C. – The Cherry Blossom Festival – March 28 to April 11, 2009

Washington Monument framed by Cherry Blossoms - very beautiful - from Washington, D.C. Cherry Blossom Festival press photos

Washington Monument framed by Cherry Blossoms - very beautiful - from Washington, D.C. Cherry Blossom Festival press photos

****

http://nationalcherryblossomfestival.org/cms/index.php?id=390

Cherry Blossom Festival – March 28 – April 11, 2009 – Washington, D.C.

Peak Bloom Period

Peak Bloom Period prediction has been revised: April 1 – 4, 2009, with the entire blooming period predicted for March 28 – April 11. Click here for more information.

***

*****

Cherry Blossom Festival press photo - very pretty

Cherry Blossom Festival press photo - very pretty

***

Cherry Blossom View of the Jefferson Memorial

$75.00
Photograph taken 12:15 pm EST, April 01, 2006, Cherry Blossom View of the Jefferson Memorial.Cloudy and Windy. Second Stage of Flower Bloom with a magnificent view of the Jefferson Memorial.

More Cherry Blossom Photographs

Jefferson Memorial
Washington Monument

(from DC Giftshop)

http://www.dcgiftshop.com/items/Cherry_Blossom_View_of_the_Jefferson_Memorial.html***

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http://www.mccullagh.org/photo/1ds2-5/jefferson-memorial-cherry-blossoms

Jefferson Memorial Cherry Blossoms

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PRESS IMAGES
HOTELS
RESTAURANTS
THINGS TO DO
TOURS
GETTING AROUND
HISTORY
CHARITIES
NCBF BOARD OF DIRECTORS
GOODWILL AMBASSADORS
VOLUNTEERS
ART CONTEST

http://nationalcherryblossomfestival.org/cms/index.php?id=390

PRESS IMAGES

PRESS RELEASES
BACKGROUNDER
PRESS IMAGES

Media Contacts:

Diana Mayhew
Executive Director
Phone: (202) 661-7596
Fax: (202) 661-7599
Email: dmayhew@nationalcherryblossom.org
1250 H Street, NW Suite 850
Washington, DC 20005

http://nationalcherryblossomfestival.org/cms/index.php?id=425

***

The National Park Service and U.S. Secretary of the Interior Ken Salazar announce that they expect the cherry blossoms to reach their peak bloom around April 1. Approximately one million visitors are expected to attend this year’s National Cherry Blossom Festival.

Washington Post Staff Writer
Thursday, March 26, 2009; 3:30 PM

Despite the gloomy economic outlook, officials said this morning that the annual National Cherry Blossom Festival might not be badly affected by the recession.

This Story
View All Items in This Story

At the National Park Service’s festival preview news conference, the festival’s president, Diana Mayhew, said the economic situation might even be a boost to the 16-day event, which starts Saturday and runs through April 12.

“I think the economic situation is probably going to enhance the attendance,” she said. “Our Web site hits are up about 30 percent. . . . We’re almost sold out for the parade.” The bleacher seats for the April 4 parade are $17 apiece. There are between 8,500 and 9,000 such seats.

She said the festival also is still seeing strong interest from tour groups. “I don’t think anything keeps people away from the cherry blossoms, and the Cherry Blossom Festival,” she said. “It is such an uplifting event. It’s spring. People are looking for a reason to be outside.”

http://www.washingtonpost.com/wp-dyn/content/article/2009/03/26/AR2009032602177.html

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Interesting finds in the China news about the current economic crisis, some cool fashion week stuff, the announcement about our newly confirmed Commerce Secretary and the China Developoment Forum

Former Chinese-American governor confirmed as U.S. commerce secretary
www.chinaview.cn 2009-03-25 08:50:14 Print

WASHINGTON, March 24 (Xinhua) — Gary Locke, the first Chinese-American who ever led a U.S. state government, was confirmed by the Senate on Tuesday as commerce secretary.

Locke, 59, “will ensure American workers can prosper, our businesses can thrive and the economy can grow,” said Senate Committee Chairman Jay Rockefeller.

Gary Locke, the first Chinese-American who ever led a U.S. state government, was confirmed by the Senate as commerce secretary on March 24, 2009. (Xinhua/Zhang Yan)
Photo Gallery>>>
Senate Maria Cantwell also praised that Locke “will bring strong leadership to the Commerce Department and understands the challenges many Americans face as we work to stabilize our economy.”

Locke was elected to lead the Washington state in 1996 and re-elected in 2000. Prior to governorship, the Democrat served 5 terms in the House of Representatives and one term as executive of King County, Washington.

He was chairman of the House Appropriations Committee from 1989 to 1994.

Locke earned a bachelor’s degree in political science from Yale University, and a law degree from Boston University. Analysts said he is a Democrat who “is a comfortable ideological fit with the Obama administration.”

He comes squarely out of the free-trade mindset of the mainstream business community in the northwestern United States and has a good relationship with China.

Former Chinese-American governor nominated as U.S. commerce secretary

WASHINGTON, Feb. 25 (Xinhua) — Gary Locke, the first Chinese-American who ever led a U.S. state government, was nominated by U.S. President Barack Obama on Wednesday as his third choice for Secretary of Commerce.

Announcing the nomination in a live-broadcast event at the Eisenhower Executive Office Building near the White House, the president said that the 59-year-old Locke has lived the American Dream and “shares my commitment to do whatever it takes to keep it alive in our time.” Full story

Editor: Deng Shasha

http://news.xinhuanet.com/english/2009-03/25/content_11067891.htm

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China Int’l Fashion Week kicks off

www.chinaview.cn 2009-03-24 20:04:43

Models present fashions during the China International Fashion Week (2009/2010 autumn/winter series) opened in Beijing, capital of China, March 24, 2009. (Xinhua/Chen Jianli)
Photo Gallery>>>

China International Fashion Week (2009/2010 autumn/winter series) opened in Beijing, capital of China, March 24, 2009

China International Fashion Week (2009/2010 autumn/winter series) opened in Beijing, capital of China, March 24, 2009

China International Fashion Week (2009/2010 autumn/winter series) opened in Beijing, capital of China, March 24, 2009

China International Fashion Week (2009/2010 autumn/winter series) opened in Beijing, capital of China, March 24, 2009

http://news.xinhuanet.com/english/2009-03/24/content_11065822.htm

HRP-4C humanoid robot - Japan Fashion Week in Tokyo March 23, 2009

HRP-4C humanoid robot - Japan Fashion Week in Tokyo March 23, 2009

The HRP-4C humanoid robot bows on the runway at the Shinmai Creator’s Project fashion show during Japan Fashion Week in Tokyo March 23, 2009. (Xinhua/Reuters Photo)
Photo Gallery>>>

http://news.xinhuanet.com/english/2009-03/24/content_11065358.htm

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U.S. wrong to blame China for trade imbalance: Roach
www.chinaview.cn 2009-03-24 15:45:01

Special Report: China’s Development Forum 2009

by Lu Hui

BEIJING, March 24 (Xinhuanet) — “The United States is making a mistake in holding China accountable for its large trade imbalance,” said Stephen Roach, Chairman of Morgan Stanley (Asia), on the sideline of China Development Forum in Beijing.

“This is the fact that the U.S. economy is in very serious difficulties,” Roach told Xinhuanet Monday.

“The United States is making a mistake in holding China accountable for its large trade imbalance,” said Stephen Roach, Chairman of Morgan Stanley (Asia), on the sideline of China Development Forum in Beijing.(Xinhua Photo)
Photo Gallery>>>


“The United States is making a mistake in holding China accountable for the pressures that are very real that are increasing on American workers, this is not China’s fault,” Roach added.

When asked to comment on trade protectionism which is gaining ground amid the global financial crisis, he said, “We do have a large trade imbalance with China, but it’s because America doesn’t save, not because Chinese currency issues.”

“I have tried to say this for years to U.S. congress but they don’t understand that, if America saves more, we will reduce our current account and trade deficit with all nations, including China,” Roach added.

Earlier, Roach pointed out in a paper prepared for the forum that America’s excess consumption model is in serious trouble because the asset bubbles that have long supported it — property and credit — have both burst.

The paper added this is a U.S. problem and one that must be addressed at home with a new and disciplined approach to monetary policy, tough regulatory oversight, and more responsible behavior on the part of consumers and businesses, alike.

A bubble-dependent economy that lived beyond its means for a dozen years must now accept the reality of having to live within its means — and not holding others accountable for this painful yet necessary adjustment. The blame game is completely counter-productive in a world in crisis and recession.

On March 13, Chinese Premier Wen Jiabao said at a press conference upon the conclusion of the annual session of China’s top legislature that no country in the world has the right to put pressure on the devaluation or appreciation of the Chinese currency.

“The exchange rate of China’s currency, the yuan, should be decided by the country itself,” Wen said.

The premier reiterated the country’s target is to keep the exchange rate of the yuan “basically stable” at a reasonable and balanced level.

The U.S. has long held that China is “purposely keeping” its currency devalued against the dollar to help exports, which “injure the interests of U.S. enterprises.”

According to China customs statistics, Sino-U.S. trade hit 333.74 billion U.S. dollar mark last year, up 10.5 percent year on year.

China’s trade surplus with the U.S. increased 4.6 percent in 2008 from a year earlier to 170.85 billion U.S. dollars. The growth, however, was 8.6 percentage points lower than 2007.

In July 2005, China abandoned a decade-old peg to the U.S. dollar and allowed its currency to appreciate by 2.1 percent. Since then, the yuan has strengthened further, mostly slowly, and risen more than 20 percent against the dollar.

Sponsored by the Development Research Center under the State Council, or China’s cabinet, the China Development Forum was founded in 2000. It aims to support and promote policy consultation and academic research in China.

Officials, entrepreneurs, scholars and leaders from other nations, international and non-governmental organizations attended this year’s forum themed China’s Development and Reform in the Global Financial Turmoil.

Editor: Lu Hui

http://news.xinhuanet.com/english/2009-03/24/content_11069065.htm

[And from a link on the above page - a button at the bottom of the page - ]

http://news.xinhuanet.com/english/2009-03/18/content_11029251.htm

Chinese VP Li Keqiang delivers speach at the summit

Chinese Commerce Minister Chen Deming speaks at the forum

Du Pont Corporation chief  interviewed

HSBC Chairman addresses opening ceremony

Fan Gang delivers speech at the opening session

Nobel Prize winner Joseph Stiglitz addresses the summit

Cohen Group President addresses the summit

Participants address China Development Forum 2009

WB chief on economy ahead of G20 summit

Chinese officials brief on boosting domestic demand

World Economic Forum ends in Davos

Theme of Boao Forum for Asia 2009 announced

China Development Forum 2009, March 21 - 23, Beijing

China Development Forum 2009, March 21 - 23, Beijing

http://news.xinhuanet.com/english/2009-03/21/content_11047505_2.htm

Chinese and foreign experts attend the opening session of the academic summit of China Development and Reform in the Global Economic Crisis of China Development Forum 2009 in Beijing, capital of China, Mar. 21, 2009. Over fifty leaders of multinational corporations, senior officials of international organizations and well-known scholars are invited to attend the 3-day forum this year which focus on the topic of China’s development and reform in the global financial crisis. (Xinhua/Gao Xueyu)
Photo Gallery>>>

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My note – it looks like this is where everybody has been this week.

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MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES
(in billions of dollars)
HOLDINGS 1/ AT END OF PERIOD

Jan 09 Dec 08 Nov 08

Grand Total                                3072.2    3076.9    3036.6

China, Mainland                        739.6   727.4   713.2
Japan                                             634.8   626.0   625.2
Oil Exporters 3/                        186.3   186.2   187.2
Carib Bnkng Ctrs 4/                  176.6   197.5   205.0
Brazil                                              133.5   127.0   136.1
United Kingdom 2/                  124.2   130.9   132.4
Russia                                            119.6   116.4   108.0

http://www.ustreas.gov/tic/mfh.txt

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Top seven debt holders by country of US Treasuries / Debt -

(see chart at above link)

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According to some conservatives, Republicans and Fox commentators, the economic crisis isn’t real – well, these sure are some interesting numbers from the “not real” world where everyone else is living -

Source Data for Leverage Ratios from Wikipedia entry

Source Data for Leverage Ratios from Wikipedia entry

http://en.wikipedia.org/wiki/File:Source_Data_-_Leverage_Ratios.png

http://en.wikipedia.org/wiki/File:Leverage_Ratios.png

from – wikipedia entry -

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

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Foreclosure trends 2007 - 2008

Foreclosure trends 2007 - 2008

http://en.wikipedia.org/wiki/File:Foreclosure_Trend_-_2007.png

found here -

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

*and other great information including -

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http://en.wikipedia.org/wiki/File:Foreclosure_Trend_-_2007.png

Chart of foreclosure numbers from 2007 – 2008

In its “Declaration of the Summit on Financial Markets and the World Economy,” dated 15 November 2008, leaders of the Group of 20 cited the following causes:

During a period of strong global growth, growing capital flows, and prolonged stability earlier this decade, market participants sought higher yields without an adequate appreciation of the risks and failed to exercise proper due diligence. At the same time, weak underwriting standards, unsound risk management practices, increasingly complex and opaque financial products, and consequent excessive leverage combined to create vulnerabilities in the system. Policy-makers, regulators and supervisors, in some advanced countries, did not adequately appreciate and address the risks building up in financial markets, keep pace with financial innovation, or take into account the systemic ramifications of domestic regulatory actions.[35]

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis

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***

http://www.weforum.org/pdf/scenarios/TheFutureoftheGlobalFinancialSystem.pdf

The crisis is rooted in global imbalances, including long
regimes of low interest rates, rapidly rising asset prices,
massive leverage and trade and savings imbalances.
The World Economic Forum’s Global Risk Report pointed
to associated risks of these phenomena in early 2007
and 2008.
The crisis has revealed severe limitations in the current
regime of global coordination and regulation and
a multitude of failures in risk management. Such failures are
not limited to financial institutions, but affect governments,
central banks, rating agencies, corporations, households
and the media. Given the global nature of the financial
and economic turmoil, new approaches and solutions
from both governments and the private sector are
required to restore confidence to markets and ensure
an effective long-term response.

To stimulate the dialogue between governments and
the private sector regarding the future of the global financial
system, the World Economic Forum launched the New
Financial Architecture project in January 2008, with
the mission of addressing the following central question:
How might the governance and structure
of the global financial system evolve over both
the near-term and long-term?


This report draws upon many of the World Economic
Forum’s expert communities in offering a set of answers
to this central question.


We trust this publication will challenge your thinking
and offer new perspectives on how the global financial
system may be significantly altered over the course
of the coming years. Above all, we hope the insights
it provokes may contribute towards ensuring that together
we will find ways to promote long-term financial stability
and revive global economic growth.
Professor Klaus
Professor Klaus Schwab
Founder and Executive Chairman
World Economic Forum

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Throughout this process, intellectual stewardship and
guidance was provided by an actively involved Steering
Committee co-chaired by John Thain, President of Global
Banking, Securities and Wealth Management, Bank of
America Merrill Lynch, and David Rubenstein, Co-Founder
and Managing Director, The Carlyle Group.

The report is the culmination of a partnership with Oliver
Wyman and twelve months of work interacting with senior
industry practitioners, leading international scholars,
regulators, policy-makers and other distinguished experts
and stakeholders. In addition, Clifford Chance provided
guidance regarding the future of financial regulation. To
date, the project team has had the privilege of interviewing,
surveying, debating and facilitating meetings with over
250 of the leading thinkers in global finance. Eight major
workshops were convened for the project in Geneva, Kuala
Lumpur, London, New York, Sharm El Sheikh and Tianjin.

In phase two of this project, the World Economic Forum
will work with key stakeholders to delve deeper into the
implications of this analysis, with the goal of exploring
collaborative strategies and areas of systemic
improvement. This will involve an examination of the
potential future sources of systemic risk, as well as
opportunities to reposition the industry for sustainable,
long-term growth in ways that maximize the stability and
prosperity of both the financial and real economies.

Max von Bismarck
Director and Head of Investors Industries
World Economic Forum
Bernd Jan Sikken
Associate Director and Head of Emerging Markets Finance
World Economic Forum

http://www.weforum.org/pdf/scenarios/TheFutureoftheGlobalFinancialSystem.pdf

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Steering Committee members
Paul Achleitner, Germany
Member of the Board of Management
Allianz SE

Sameer Al Ansari, UAE
Chief Executive Officer
Dubai International Capital LLC

Bader M. Al Sa’ad, Kuwait
Managing Director
Kuwait Investment Authority
Sir Howard Davies, United Kingdom
Director
London School of Economics
and Political Science

Robert E. Diamond Jr, United Kingdom
President
Barclays PLC

Volkert Doeksen, Netherlands
Chief Executive Officer and
Managing Partner
AlpInvest Partners

Tolga Egemen, Turkey
Executive Vice President
Financial Institutions and Corporate Banking
Garanti Bank

Jacob A. Frenkel, USA
Vice Chairman
American International Group Inc

Johannes Huth, United Kingdom
Managing Director
KKR & Co Ltd

From the World Economic Forum:
Max von Bismarck, USA
Director and
Head of Investors Industries
World Economic Forum USA

Kevin Steinberg, USA
Chief Operating Officer
World Economic Forum USA

Chanda Kochhar, India
Joint Managing Director
ICICI Bank Limited

Scott McDonald, United Kingdom
Managing Partner
Oliver Wyman

Daniel Och, USA
Founder and Chief Executive Officer
Och-Ziff Capital Management Group LLC

David M. Rubenstein, USA (Co-Chair)
Co-Founder and Managing Director
The Carlyle Group

Heizo Takenaka, Japan
Director, Global Security Research Institute
Keio University

Tony Tan Keng-Yam, Singapore
Deputy Chairman and Executive Director
Government of Singapore Investment Corporation GIC

John A. Thain, USA (Co-Chair)
President of Global Banking,
Securities and Wealth Management
Bank of America Merrill Lynch

Ruben K. Vardanian, Russia
Chairman of the Board and Chief Executive Officer
Troika Dialog Group

Bernd Jan Sikken, Switzerland
Associate Director and
Head of Emerging Markets Finance
World Economic Forum

http://www.weforum.org/pdf/scenarios/TheFutureoftheGlobalFinancialSystem.pdf

***
My note -

Earlier tonight on one of the FoxNews / FoxBusiness shows, I heard the accusation once more that the economic crisis is not real but rather a thrust by socialists and others to make it appear that there is a problem when there really isn’t. And, on the previous night there was Mr. Cavuto telling us how the rich could and likely would become vindictive since they are being railed against by the “populists” – the masses. I also heard tonight as someone on the Hannity show mocked the Chinese and others (they named countries, all of which are loaning us money), around the world versing us on capitalism and prudence and some sort of obscene slur in the same neighborhood.

There have been a few times like this when it seemed that the “news” isn’t the news at all but rather a platform for manipulating and trading the truth around until it no longer communicates the facts with any accuracy whatsoever. But, the worst of all is that it incites the “us and them” mentality that they claim to find undesirable. Their views of our economy are that we don’t really have a problem, things aren’t all that bad.

Well, if they are not all that bad, then why does it cost ten dollars to buy a gallon of milk, a box of cereal and a cheap package of hot dogs on sale? Why are there millions of people that have lost their homes, businesses, jobs and virtually everything that they owned trying to pay their bills across a broad spectrum of the population in the United States? Do they really believe that these events are just a matter of opinion while our homeless shelters fill with people, tent cities are housing people who’ve lost their homes across our nation, food banks are overwhelmed, tens of millions of people are unemployed, underemployed, laid off, bankrupt and totally insolvent?

How cruel is that, to pretend that none of it is really true while those who are experiencing it can attest to its validity and how foolish is that pretense, when every last number, tally and monetary indicator is showing what has happened in the absolute tense? Maybe with enough money, a delusion isn’t considered a problem but when that delusional twisted version of reality is used for news shows that are being broadcast nationally and internationally?

It is my opinion that the chart at the top of this post which indicates the amount of leverage and comparisons of available assets to that leverage – is only the tip of a really, really, really big, ugly iceberg and that is what has caused the decimation of our economy, the global economies and our future.

- cricketdiane, 03-25-09