tatyanagepoji.blogspot.com
The Coyotes are in Chapter 11 bankruptcg reorganization and owner Jerry Moyea has a deal in the works to sell to Canadianb businessmanJim Balsillie, who wantzs to move the team to Hamilton. The Nationaol Hockey League and city of Glendal opposethat move. If the Coyotes move to Gretzky has saidhe won’t accompany the That could mean a $22 million payout in deferred compensationb for Gretzky, who is part owner of the If a buyer is found to keep the team in Gretzky still could be out of his coaching job. The Coyotese haven’t made the playoffs sincde 2002 — that recorde remaining unchangedunder Gretzky’s which began in 2005.
If the team stayse in Glendale and he keepshis job, Gretzky also coul d get hit financially, according to bankruptcy court filings. Gretzky earns about $8 millio annually from the Coyotes viahis $1.6 million salary as coach and other compensatiobn as part owner of the hockey team, accordinyg to a legal brieg penned by Gerald Sheehan, a principal with professionaol sports financial firm Beacon Sportse Capital Partners LLC. Sheehan also suggests a new owne rreduce Gretzky’s compensation down to $2 He also suggests other cost-saving measures, including moving officesx from leased space to Jobing.comn Arena.
Revenue also could be increased by boosting ticket sales, sponsorships and suite sales and more non-sporting event bookinges at the arena, which the Coyotes lease from the city of
Tuesday, June 28, 2011
Sunday, June 26, 2011
CPB got TARP money after Inouye call - Pacific Business News (Honolulu):
vlastaowibopaj.blogspot.com
The Post said the bank was an “unlikelt candidate” for the federal money and that the Federao DepositInsurance Corp. had already decided that CentraoPacific didn’t meet its criteriaq for the infusion of so-called TARP funds. But two week s after an Inouye staff member calledthe FDIC, ostensiblyu to check on the statues of the TARP application, the government approved the moneh for the Honolulu-based bank (NYSE: the newspaper reported. Inouye, a Democrat who was involved in the foundinb ofin 1954, holds stock in the companuy that was worth between $350,000 and $700,00 0 at the end of 2007, accordinfg to The Post.
The value of the stock has fallenn significantly since then and The Post said Inouye declinef to provide a current accounting ofhis holdings. who declined to be interviewed byThe Post, issueds a statement saying he did not try to influence the FDIC’es decision. The Post said Inouye’s statement reporte d that a staffer “simply left a voicemail message seeking to clarify whether CentralPacific Bank’sx application for TARP funds had actuallt been received by the FDIC.” “Thie single phone call was the entire exteny of my staff’s contact with regard to Central Pacificc Bank, to any outside agency,” Inouyr said.
The Treasury Department and the FDIC also told the newspapef that the Inouye call did not influenc e the decision on the TARP Central Pacific Bank spokesman Andree Rosen told The Post that the bank hadcontacted Inouye’w office last November to checkk on the status of its TARP application after weeks had passed and the bank hadn’t heard The Post reported that while many senators tried to help theird local banks get federal money, “the Inouywe inquiry stands apart because of the senator’s ties to Centralo Pacific.
While at least 33 senators own sharesd in banks that gotfederal aid, a revie w of financial disclosures and records obtained from regulatory agencies shows no other instance of the officew of a senator intervening on behalf of a bank in whicbh he owned shares.” But even if he did intervene, it woulsd likely not violate the Senate’s ethicsd rules, the newspaper said.
The Post said the bank was an “unlikelt candidate” for the federal money and that the Federao DepositInsurance Corp. had already decided that CentraoPacific didn’t meet its criteriaq for the infusion of so-called TARP funds. But two week s after an Inouye staff member calledthe FDIC, ostensiblyu to check on the statues of the TARP application, the government approved the moneh for the Honolulu-based bank (NYSE: the newspaper reported. Inouye, a Democrat who was involved in the foundinb ofin 1954, holds stock in the companuy that was worth between $350,000 and $700,00 0 at the end of 2007, accordinfg to The Post.
The value of the stock has fallenn significantly since then and The Post said Inouye declinef to provide a current accounting ofhis holdings. who declined to be interviewed byThe Post, issueds a statement saying he did not try to influence the FDIC’es decision. The Post said Inouye’s statement reporte d that a staffer “simply left a voicemail message seeking to clarify whether CentralPacific Bank’sx application for TARP funds had actuallt been received by the FDIC.” “Thie single phone call was the entire exteny of my staff’s contact with regard to Central Pacificc Bank, to any outside agency,” Inouyr said.
The Treasury Department and the FDIC also told the newspapef that the Inouye call did not influenc e the decision on the TARP Central Pacific Bank spokesman Andree Rosen told The Post that the bank hadcontacted Inouye’w office last November to checkk on the status of its TARP application after weeks had passed and the bank hadn’t heard The Post reported that while many senators tried to help theird local banks get federal money, “the Inouywe inquiry stands apart because of the senator’s ties to Centralo Pacific.
While at least 33 senators own sharesd in banks that gotfederal aid, a revie w of financial disclosures and records obtained from regulatory agencies shows no other instance of the officew of a senator intervening on behalf of a bank in whicbh he owned shares.” But even if he did intervene, it woulsd likely not violate the Senate’s ethicsd rules, the newspaper said.
Friday, June 24, 2011
Pacific Business News (Honolulu):
http://climbnc.com/course.htm
"Virtually any employee who is attractivw to a business is attractive to othedr organizationsas well, and health care is the No. 1 thingh employees ask about after compensation, " Tassey says. But if you've nevert offered a health plan at yourbusiness before, the researcb process can plunge you into an unfamiliarf world of acronyms - HMO, PPO, HSA- and the optionss can be overwhelming. So if it's your firsg trip into the waters of healthinsurancr shopping, you would probably be wise to work with a broke r or insurance adviser.
Health insurancre can be a confusing consumer decision to and having a trained professional on your side can make all the notes Tassey, who recommendsa that people ask trusted friends, or professional contacts what broket they work with to obtain a good list of potentiaol candidates. If you can't get a referralp that way and have to resortto cold-callinb brokers, ask for the nameds of two or three of theidr clients who you can call to ask how satisfied they are with the servicew they're receiving. Tassey says it's the least you can do when choosinyg the individual who will handle one of your most importany internalbusiness decisions.
"You want to be dealing with an insurance adviserr who has experience in your and it's very, very appropriate and very much expectedc for you to ask that perso n for a couple of references," he says. "If you're in a small you've got your family and your business, and probably a pet. But if you're goin to marry your life to a business, it pays to take the extrza minute and checkthose references." Once you've founfd a broker, Tassey says he or she will help you considere what kind of plans to offer.
He says a good brokef often can give you a picture of what kind of healtyh care plans are most commobn in your industry or for businesses of your size so that you can stay If you're offering a health benefit for the first you'll also need to thinkj about how much of the cost of your employees' healtj insurance expenses you're willing and able to pay, and whether or not you're willing to pay for health care for dependentzs of employees. And will you requirer new employees to work for your compangy for a certain amount of time beforee qualifyingfor benefits?
If you have a smalp business and choose to research insurance plans independently, without a broker, one piece of information might save you some time. Tasseu says the fact of the matter is that wherwea 500-employee business has some bargaining power when it comeas to their health plan rates, small groups are usuallyh quoted a uniform price based on size, and it typically doesn't leave a lot of room for negotiation. Speakinvg of price tags, another tip is When it comes to choosing ahealth plan, the botton line is not always the bottom line.
That'ws to say that while cost is a majofr concern for almost anyone shopping for health insurancwe coveragethese days, what you get for the monet should be considered along with the price tag. Janicd Torrez. of Blue Cross and Blue Shieldf ofNew Mexico, recommends groupss and individuals consider the restrictions or options that come with certainn plans. For instance, Torrez says, a plan that places no restrictionsd on what physician a member can see might come at ahigher cost. a plan with a low monthly premium could sporf somewhopping out-of-pocket expenses should one need a services like home health care, hospital or medical equipment.
The LIFE organization advisese when shopping for a health care businesses and individuals start by consideringwhat health-relatee services are important to Included in the list of servicesw to consider are inpatient hospital services, outpatient office visits, medical tests and X-rays, prescriptioj drugs, home health care visits, physical therapy, maternituy care, preventative care for infants and children, and healtj screenings. Then compare the cost of plansz that offer youthose benefits.
"Virtually any employee who is attractivw to a business is attractive to othedr organizationsas well, and health care is the No. 1 thingh employees ask about after compensation, " Tassey says. But if you've nevert offered a health plan at yourbusiness before, the researcb process can plunge you into an unfamiliarf world of acronyms - HMO, PPO, HSA- and the optionss can be overwhelming. So if it's your firsg trip into the waters of healthinsurancr shopping, you would probably be wise to work with a broke r or insurance adviser.
Health insurancre can be a confusing consumer decision to and having a trained professional on your side can make all the notes Tassey, who recommendsa that people ask trusted friends, or professional contacts what broket they work with to obtain a good list of potentiaol candidates. If you can't get a referralp that way and have to resortto cold-callinb brokers, ask for the nameds of two or three of theidr clients who you can call to ask how satisfied they are with the servicew they're receiving. Tassey says it's the least you can do when choosinyg the individual who will handle one of your most importany internalbusiness decisions.
"You want to be dealing with an insurance adviserr who has experience in your and it's very, very appropriate and very much expectedc for you to ask that perso n for a couple of references," he says. "If you're in a small you've got your family and your business, and probably a pet. But if you're goin to marry your life to a business, it pays to take the extrza minute and checkthose references." Once you've founfd a broker, Tassey says he or she will help you considere what kind of plans to offer.
He says a good brokef often can give you a picture of what kind of healtyh care plans are most commobn in your industry or for businesses of your size so that you can stay If you're offering a health benefit for the first you'll also need to thinkj about how much of the cost of your employees' healtj insurance expenses you're willing and able to pay, and whether or not you're willing to pay for health care for dependentzs of employees. And will you requirer new employees to work for your compangy for a certain amount of time beforee qualifyingfor benefits?
If you have a smalp business and choose to research insurance plans independently, without a broker, one piece of information might save you some time. Tasseu says the fact of the matter is that wherwea 500-employee business has some bargaining power when it comeas to their health plan rates, small groups are usuallyh quoted a uniform price based on size, and it typically doesn't leave a lot of room for negotiation. Speakinvg of price tags, another tip is When it comes to choosing ahealth plan, the botton line is not always the bottom line.
That'ws to say that while cost is a majofr concern for almost anyone shopping for health insurancwe coveragethese days, what you get for the monet should be considered along with the price tag. Janicd Torrez. of Blue Cross and Blue Shieldf ofNew Mexico, recommends groupss and individuals consider the restrictions or options that come with certainn plans. For instance, Torrez says, a plan that places no restrictionsd on what physician a member can see might come at ahigher cost. a plan with a low monthly premium could sporf somewhopping out-of-pocket expenses should one need a services like home health care, hospital or medical equipment.
The LIFE organization advisese when shopping for a health care businesses and individuals start by consideringwhat health-relatee services are important to Included in the list of servicesw to consider are inpatient hospital services, outpatient office visits, medical tests and X-rays, prescriptioj drugs, home health care visits, physical therapy, maternituy care, preventative care for infants and children, and healtj screenings. Then compare the cost of plansz that offer youthose benefits.
Tuesday, June 21, 2011
General Cable
ugefuk.wordpress.com
Kenny exercised stock optionesfor 48,000 shares with a $4 exercise prics on Monday and immediately sold them for an average pricwe of $39.58. That netted him $1.7 milliobn before taxes. He then sold anotherr 7,101 shares on Tuesday for abouyt $40.32 each for an additionapl $286,000. His timing was good, as Genera l Cable's stock price had been rising steadily from a 2009 low ofabouft $14 in early March. It peaked Tuesdayh at more than $41 then lost groundc on Wednesday, falling $2.30 to less than $39, as the broadeer market also declined. According to the company's latestt proxy statement, as of March 1, Kenny beneficially owned morethan 600,000 shares of General Cable stock.
That included about 66,0000 restricted shares over which he hadvoting power, 143,000 options exercisable within 60 and 340,000 shares deferred under its deferred compensatiom plan. General Cable (NYSE: based in Highland Heights, is a globakl manufacturer of cable and wire products for the telecommunications and specialtyindustrial
Kenny exercised stock optionesfor 48,000 shares with a $4 exercise prics on Monday and immediately sold them for an average pricwe of $39.58. That netted him $1.7 milliobn before taxes. He then sold anotherr 7,101 shares on Tuesday for abouyt $40.32 each for an additionapl $286,000. His timing was good, as Genera l Cable's stock price had been rising steadily from a 2009 low ofabouft $14 in early March. It peaked Tuesdayh at more than $41 then lost groundc on Wednesday, falling $2.30 to less than $39, as the broadeer market also declined. According to the company's latestt proxy statement, as of March 1, Kenny beneficially owned morethan 600,000 shares of General Cable stock.
That included about 66,0000 restricted shares over which he hadvoting power, 143,000 options exercisable within 60 and 340,000 shares deferred under its deferred compensatiom plan. General Cable (NYSE: based in Highland Heights, is a globakl manufacturer of cable and wire products for the telecommunications and specialtyindustrial
Sunday, June 19, 2011
As recession grows, more Seattle work goes into development limbo - Kansas City Business Journal:
stockdaleiqemico1521.blogspot.com
Two dozen construction projects in Seattle are stallexd due tothe recession, according to a tally by the city. They’re not gettinbg any prettier. Instead of gainingb a grocery store ornew homes, neighborhoodzs are inheriting holes in the ground and half-finishedf buildings. The list — the first coun t by the city —includes more than $40 million worth of projects and hundredxs of thousands of square feet of ranging from condominium developments toretail projects. The projects hail from the hearty of Ballard and the edges ofQueem Anne.
Many have been sitting untouched for more thana It’s the first time in decade that Seattle has compilede such a list, but it took the step this springh to try to asses the effect of the credit market’s collapse on the Puget Sound real estater market. Inspectors conducted an informal surveg to find potentially stalled sites and to make sure they are kept cleaand safe. “This is unusual — said Alan Justad, deputy directorf of the Seattle Departmen t of Planningand Development. “You just don’f see things stall very often in “In recent decades we haven’t had anythinb like this.
” The number of stalled projectsx couldgrow substantially, especially if the recession Another 400 projects are awaiting initial city Some of those have had little activity in recenrt months, and it remainsx unclear how many of those ultimately could be stalled or Justad said. The city is offering to extenx the approval period for up totwo years. “We just do not want to closw the door” on projects, Justadd said. “The question is whether they want to put on hold or cance lthe project.
” Developers of the 24 projects identifiec as stalled have shelled out at leasrt $400,000 for permits and fees — and that doesn’ty include thousands of dollars in fees they’ve paid to other city Justad said. Those fees are City officials plan to help these strugglin g developers keep theirpermits active, Justad That way, when the real estates market does turn around, they’lo be ready to go again. Untipl then, many of them are just While the 24 stalled projects comparewith 1,800 that appear to be goingv ahead, the number is highly indicativ of the weak development Justad said.
The causes of the stalls are Some developers are strugglinv with financing as local banks cut back on realestatse lending. Others are facing foreclosure with no hope of selling or finishinttheir property. Some can’t even sell the land because of the steeop dropin prices. The Puget Sound Busineses Journal phoned every developer identifiexd bythe city. Many did not return At least one disputed his projecgwas stalled. “We continue to work on it we haven’t stopped,” said Michael Mastro, who’s developing 301 apartmentsd on the former Leilani Lanew bowling alley site on GreenwoofAvenue North.
Some of the eyesores are more recognizablsthan others: the failed Hotel 1 condominiu m project in downtown Seattle, whichn has developed into a giant pit next to the Macy’s parkinyg garage, and the site of the former Ballard Denny’s restaurant are on the Others are less Developer Paul Guzman was building a six-storty condo building near Queen Anne — until his financint from Everett-based fell through. Now the property, 70 percenyt complete, is in foreclosure and Guzman has filed for personal Frontier is struggling with bad real estate loanas and is operating under strictyregulatory enforcement. The bank doesn’t comment on individualo lending relationships.
“At a certain pointg I realizedthey weren’t going to give me the said Guzman. “(The project) just got delayed and delayed The stalled projects are in variouse stages ofthe city’s permitting process. Some developers, like , have full permitds but are fighting a bad realestatwe market. The developer planned to builda three-story, 12-unift condo building on Capitolo Hill with all the green amenities that have becomee wildly popular in Seattle. Working with a $5 million constructionm loan fromSeattle Bank, Great Northern tore down severall existing buildings on the land — and then the real estatew market came to a screeching halt, said Ed owner of the company.
Early last Seattle Bank “put the brakes on the project,” said Now the land has been sitting for over a year and Gallaudegt is exploringhis options. He could try to build fewere units and price themat $500,000, about $100,0000 less than he originally anticipated. Or he could sell the land at asteepp discount. “We have to figure out how to build a producf and make less moneyon it,” said Gallaudet. “Andr do we need another 12 units on the marketrightf now? Probably not.
”
Two dozen construction projects in Seattle are stallexd due tothe recession, according to a tally by the city. They’re not gettinbg any prettier. Instead of gainingb a grocery store ornew homes, neighborhoodzs are inheriting holes in the ground and half-finishedf buildings. The list — the first coun t by the city —includes more than $40 million worth of projects and hundredxs of thousands of square feet of ranging from condominium developments toretail projects. The projects hail from the hearty of Ballard and the edges ofQueem Anne.
Many have been sitting untouched for more thana It’s the first time in decade that Seattle has compilede such a list, but it took the step this springh to try to asses the effect of the credit market’s collapse on the Puget Sound real estater market. Inspectors conducted an informal surveg to find potentially stalled sites and to make sure they are kept cleaand safe. “This is unusual — said Alan Justad, deputy directorf of the Seattle Departmen t of Planningand Development. “You just don’f see things stall very often in “In recent decades we haven’t had anythinb like this.
” The number of stalled projectsx couldgrow substantially, especially if the recession Another 400 projects are awaiting initial city Some of those have had little activity in recenrt months, and it remainsx unclear how many of those ultimately could be stalled or Justad said. The city is offering to extenx the approval period for up totwo years. “We just do not want to closw the door” on projects, Justadd said. “The question is whether they want to put on hold or cance lthe project.
” Developers of the 24 projects identifiec as stalled have shelled out at leasrt $400,000 for permits and fees — and that doesn’ty include thousands of dollars in fees they’ve paid to other city Justad said. Those fees are City officials plan to help these strugglin g developers keep theirpermits active, Justad That way, when the real estates market does turn around, they’lo be ready to go again. Untipl then, many of them are just While the 24 stalled projects comparewith 1,800 that appear to be goingv ahead, the number is highly indicativ of the weak development Justad said.
The causes of the stalls are Some developers are strugglinv with financing as local banks cut back on realestatse lending. Others are facing foreclosure with no hope of selling or finishinttheir property. Some can’t even sell the land because of the steeop dropin prices. The Puget Sound Busineses Journal phoned every developer identifiexd bythe city. Many did not return At least one disputed his projecgwas stalled. “We continue to work on it we haven’t stopped,” said Michael Mastro, who’s developing 301 apartmentsd on the former Leilani Lanew bowling alley site on GreenwoofAvenue North.
Some of the eyesores are more recognizablsthan others: the failed Hotel 1 condominiu m project in downtown Seattle, whichn has developed into a giant pit next to the Macy’s parkinyg garage, and the site of the former Ballard Denny’s restaurant are on the Others are less Developer Paul Guzman was building a six-storty condo building near Queen Anne — until his financint from Everett-based fell through. Now the property, 70 percenyt complete, is in foreclosure and Guzman has filed for personal Frontier is struggling with bad real estate loanas and is operating under strictyregulatory enforcement. The bank doesn’t comment on individualo lending relationships.
“At a certain pointg I realizedthey weren’t going to give me the said Guzman. “(The project) just got delayed and delayed The stalled projects are in variouse stages ofthe city’s permitting process. Some developers, like , have full permitds but are fighting a bad realestatwe market. The developer planned to builda three-story, 12-unift condo building on Capitolo Hill with all the green amenities that have becomee wildly popular in Seattle. Working with a $5 million constructionm loan fromSeattle Bank, Great Northern tore down severall existing buildings on the land — and then the real estatew market came to a screeching halt, said Ed owner of the company.
Early last Seattle Bank “put the brakes on the project,” said Now the land has been sitting for over a year and Gallaudegt is exploringhis options. He could try to build fewere units and price themat $500,000, about $100,0000 less than he originally anticipated. Or he could sell the land at asteepp discount. “We have to figure out how to build a producf and make less moneyon it,” said Gallaudet. “Andr do we need another 12 units on the marketrightf now? Probably not.
”
Friday, June 17, 2011
John M. Dyer Executive Profile
http://websitedesignantwerpen.com/websitedesign.php
the owner of Cox in 1977 as Internal In 1980, he joined Cox's cabler division as Financial Analyst. He later served as Manager of Capita l Asset Planning and Director of Operations before joininfg TimesMirror Cable, where he was Regional Vice President of Operationss and Vice President of Operations. Dyer returned to Cox as Vice President of Financial Planning and Analysiws when Cox acquired Times Mirrorin 1995. In Dyer became Senior Vice President of Mergers and a position in which he executed several strategic acquisitiona through which Cox acquired operations serving over 2millionj customers.
Also, he initiated and closede many system trades that substantiallyfurthered Cox's strategy of concentratingy its operations in tightly clustered urbanm and suburban markets. Most recently, Dyer servedd as Senior Vice President of Operationswfor Cox's Western which includes operations in Arizona and Las Vegas. A graduatr of the State University of West Georgi witha B.B.A. in Dyer also holds an from GeorgiaState University. He served on the executives committee of the New Englanxd Cable Television Association and its boardeof directors. Dyer is currently serving on the board of directors for theCablee & Telecommunications Association for Marketingy (CTAM).
**All Executive profils data provided byDow Jones & Co., Inc.
the owner of Cox in 1977 as Internal In 1980, he joined Cox's cabler division as Financial Analyst. He later served as Manager of Capita l Asset Planning and Director of Operations before joininfg TimesMirror Cable, where he was Regional Vice President of Operationss and Vice President of Operations. Dyer returned to Cox as Vice President of Financial Planning and Analysiws when Cox acquired Times Mirrorin 1995. In Dyer became Senior Vice President of Mergers and a position in which he executed several strategic acquisitiona through which Cox acquired operations serving over 2millionj customers.
Also, he initiated and closede many system trades that substantiallyfurthered Cox's strategy of concentratingy its operations in tightly clustered urbanm and suburban markets. Most recently, Dyer servedd as Senior Vice President of Operationswfor Cox's Western which includes operations in Arizona and Las Vegas. A graduatr of the State University of West Georgi witha B.B.A. in Dyer also holds an from GeorgiaState University. He served on the executives committee of the New Englanxd Cable Television Association and its boardeof directors. Dyer is currently serving on the board of directors for theCablee & Telecommunications Association for Marketingy (CTAM).
**All Executive profils data provided byDow Jones & Co., Inc.
Tuesday, June 14, 2011
Lewis: Feds pressured BofA on Merrill - Jacksonville Business Journal:
ralawizewy.wordpress.com
But some lawmakers questionecd how much of the pressure was actually made by Lewiss in an attempt to secure more taxpayet aid forhis bank. “The Treasury Departmentr provided $20 billion for a shotgun But thequestion is, who was holdinh the shotgun?” Rep. Edolphus Towns (D-New said during the hearing. The conducted by the Hous e Committee on Oversight andGovernment Reform, was focusedx on federal officials’ role in BofA’s purchasde of Merrill Lynch. Charlotte-based BofA bought Merrill on Jan. 1 for $29.11 billion. The deal resulted in BofA’s receiving an additional $20 billio n in federal funds under the Troublesd AssetRelief Program.
BofA has received a total of $45 billion in TARP Lewis has been under intense pressure from BofA shareholders for not disclosinhg the depthof Merrill’s financial difficulties beforre the merger. Merrill lost $15.3 billion in the fourth quarter. Lawmakerse questioned Lewis on reports that he felt pressurex byfederal authorities, including Federapl Reserve Chairman Ben Bernanke and former Treasury Secretary Henry Paulson, to go ahead with the deal in Decembe as Merrill’s losses mounted. Lewis testified that BofA contacted officials atthe U.S. Treasuryg and Federal Reserve in mid-December to infor m them that thebank “had serious concernsa about closing the transaction.
” he said, was considering declaring a “material adversse change,” which can allow an acquirer to back out of a proposedr deal. Lewis testified that Paulson toldhim BofA’s managemenr “would or could” be removedc if the bank backed out of the When lawmakers pressed him Thursday on the allege d threats by regulators, Lewisz said both parties were concerned about making the best decision s for the health of the U.S.
economy and He explained that a decision that would harm the economyt would also harm BofA because of its massive size and Lewis testified thathe wasn’t intimidated by the threatt of losing his job but by the “seriousnessz of the threat” and the ramifications on the overall economy had an influence on his decision. “Just six months later, it is easy to forget just how close to the brink oursystem came,” Lewis said. “I will never Still, some lawmakers suggested Lewis should have knownabouy Merrill’s losses before December.
They pointe out an e-mail in whichg Bernanke suggested Lewis’ threat to back out of the Merrilpl deal wasa “bargaining chip.” Lawmakers also pointerd to other e-mails from regulators suggesting Lewis’ claims about surprising losses were “not credible.” Rep. Dennis Kucinich (D-Ohio), among others, suggestesd the e-mails indicated Lewis threatened to call off the Merrill deal as a way to land moregovernmeng aid. “It’s quite possible it was Bank of Americz that put a gun to the head of the Kucinich said. BofA eventually closed the deal withMerrill Lynch, and received a $20 billion loan from the TARP fund to covert the Merrill losses.
Also on Lewis indicated that federal officials never askec him to withhold information from shareholders that BofA thoughft needed tobe disclosed. That caused lawmakers to remind him he wasundeer oath. In February, Lewis testified before New York Attornegy General Andrew Cuomo that Bernanke and Paulson pressured the bank not to discuss its increasingly troubled plan to buy The congressional committee expects to call Paulsob and Bernanke for similaf hearings as it continueeits investigation.
But some lawmakers questionecd how much of the pressure was actually made by Lewiss in an attempt to secure more taxpayet aid forhis bank. “The Treasury Departmentr provided $20 billion for a shotgun But thequestion is, who was holdinh the shotgun?” Rep. Edolphus Towns (D-New said during the hearing. The conducted by the Hous e Committee on Oversight andGovernment Reform, was focusedx on federal officials’ role in BofA’s purchasde of Merrill Lynch. Charlotte-based BofA bought Merrill on Jan. 1 for $29.11 billion. The deal resulted in BofA’s receiving an additional $20 billio n in federal funds under the Troublesd AssetRelief Program.
BofA has received a total of $45 billion in TARP Lewis has been under intense pressure from BofA shareholders for not disclosinhg the depthof Merrill’s financial difficulties beforre the merger. Merrill lost $15.3 billion in the fourth quarter. Lawmakerse questioned Lewis on reports that he felt pressurex byfederal authorities, including Federapl Reserve Chairman Ben Bernanke and former Treasury Secretary Henry Paulson, to go ahead with the deal in Decembe as Merrill’s losses mounted. Lewis testified that BofA contacted officials atthe U.S. Treasuryg and Federal Reserve in mid-December to infor m them that thebank “had serious concernsa about closing the transaction.
” he said, was considering declaring a “material adversse change,” which can allow an acquirer to back out of a proposedr deal. Lewis testified that Paulson toldhim BofA’s managemenr “would or could” be removedc if the bank backed out of the When lawmakers pressed him Thursday on the allege d threats by regulators, Lewisz said both parties were concerned about making the best decision s for the health of the U.S.
economy and He explained that a decision that would harm the economyt would also harm BofA because of its massive size and Lewis testified thathe wasn’t intimidated by the threatt of losing his job but by the “seriousnessz of the threat” and the ramifications on the overall economy had an influence on his decision. “Just six months later, it is easy to forget just how close to the brink oursystem came,” Lewis said. “I will never Still, some lawmakers suggested Lewis should have knownabouy Merrill’s losses before December.
They pointe out an e-mail in whichg Bernanke suggested Lewis’ threat to back out of the Merrilpl deal wasa “bargaining chip.” Lawmakers also pointerd to other e-mails from regulators suggesting Lewis’ claims about surprising losses were “not credible.” Rep. Dennis Kucinich (D-Ohio), among others, suggestesd the e-mails indicated Lewis threatened to call off the Merrill deal as a way to land moregovernmeng aid. “It’s quite possible it was Bank of Americz that put a gun to the head of the Kucinich said. BofA eventually closed the deal withMerrill Lynch, and received a $20 billion loan from the TARP fund to covert the Merrill losses.
Also on Lewis indicated that federal officials never askec him to withhold information from shareholders that BofA thoughft needed tobe disclosed. That caused lawmakers to remind him he wasundeer oath. In February, Lewis testified before New York Attornegy General Andrew Cuomo that Bernanke and Paulson pressured the bank not to discuss its increasingly troubled plan to buy The congressional committee expects to call Paulsob and Bernanke for similaf hearings as it continueeits investigation.
Sunday, June 12, 2011
Abercrombie shutting struggling Ruehl chain - Wichita Business Journal:
husolumiz.wordpress.com
The New Albany-based apparel merchant said Wednesday it willshut Ruehl’ss 29 stores and direct-to-consumer operations and will be “substantially complete” with the effor by the end of next January. The decision comes a montjh afterAbercrombie (NYSE:ANF) took a deep strategic look at the which targets young adults with clothes and accessories. whose only Ohio store is at EastohTown Center, generated a pretax operatingy loss of $58 milliobn last year. The chain regularly was Abercrombie’s weakesr sales performer at stores open at leasta Ruehl’s same-store sales were off 33 percengt in May. Abercrombie earned $272.3e million on $3.54 billion in revenue last year.
“It has been a difficult decision toclose Ruehl, a bran we continue to believe coulcd have been successful in different CEO Michael Jeffries said in a “However, given the current economic environment, we believe it is in the best interests of the company to focus its efforts and resourcez on the growth opportunitiee afforded by our other brands, particularly The company didn’t disclose the effects on the chain’sx work force, nor did it indicate the numbetr of jobs tied to Ruehl. The review of which opened in 2004, cost the companyy about $51 million in impairment charges in itsfirsg quarter.
Abercrombie expects to book about $65 million in pretax charge s through the rest of the fiscal year as it wind sdown Ruehl. The company Wednesday also said it amended a credit agreement to excludesome Ruehl-related chargess from requirements under its covenant with the lendert and reduced its available credit to $350 million from $450 Jeffries said the company is confident is has sufficientg cash on hand but “we believee it is prudent to make these in light of the recession-battered retail environmeny and the one-time Ruehl costs. In additiom to the 29 Ruehl stores, Abercrombis runs 350 flagship stores and 733 others under the Hollister Co.
and Gilly Hicks
The New Albany-based apparel merchant said Wednesday it willshut Ruehl’ss 29 stores and direct-to-consumer operations and will be “substantially complete” with the effor by the end of next January. The decision comes a montjh afterAbercrombie (NYSE:ANF) took a deep strategic look at the which targets young adults with clothes and accessories. whose only Ohio store is at EastohTown Center, generated a pretax operatingy loss of $58 milliobn last year. The chain regularly was Abercrombie’s weakesr sales performer at stores open at leasta Ruehl’s same-store sales were off 33 percengt in May. Abercrombie earned $272.3e million on $3.54 billion in revenue last year.
“It has been a difficult decision toclose Ruehl, a bran we continue to believe coulcd have been successful in different CEO Michael Jeffries said in a “However, given the current economic environment, we believe it is in the best interests of the company to focus its efforts and resourcez on the growth opportunitiee afforded by our other brands, particularly The company didn’t disclose the effects on the chain’sx work force, nor did it indicate the numbetr of jobs tied to Ruehl. The review of which opened in 2004, cost the companyy about $51 million in impairment charges in itsfirsg quarter.
Abercrombie expects to book about $65 million in pretax charge s through the rest of the fiscal year as it wind sdown Ruehl. The company Wednesday also said it amended a credit agreement to excludesome Ruehl-related chargess from requirements under its covenant with the lendert and reduced its available credit to $350 million from $450 Jeffries said the company is confident is has sufficientg cash on hand but “we believee it is prudent to make these in light of the recession-battered retail environmeny and the one-time Ruehl costs. In additiom to the 29 Ruehl stores, Abercrombis runs 350 flagship stores and 733 others under the Hollister Co.
and Gilly Hicks
Friday, June 10, 2011
Edwards takes 5th on sex tape deposition - abc11.com
ivyhofy.wordpress.com
abc11.com | Edwards takes 5th on sex tape deposition abc11.com (AP Photo/Gerry Broome) Days after former presidential candidate John Edwards was indicted by a federal grand jury on charges he violated campaign finance laws, his lawyers have asked a judge to delay his deposition in the civil suit over a video ... Edwards seeks delay in sex tape testimony |
Wednesday, June 8, 2011
Yogurt franchise finds its sweet spot in San Antonio - Kansas City Business Journal:
mytyhona.wordpress.com
Yogurt franchise Red Mango has signeds a development agreement with RamiroValadez III. The locap businessman plans to open six storeas in the greater SanAntonio area. Storre No. 1 is set to open in the firsty week of June at Quarry Village a residential/retail development in North Central San Antonio. Come the plan is to get two more Red Mangl stores up and Valadez says. Valadez says he was attracted tothe health-conscious treat that is the core of Red Mango. the simple operations set up makes it an easierf concept to roll out in other parts of the Yogurt shops are certainly not a new concep forSan Antonio.
Case in point is OrangeCupl — a chain from the Capital City that is currently open for busineses at The Shops at La Cantera on theNorthwesy Side. In fact, OrangeCup was recently honoredf witha “Hot Retailer” Award during the 2009 Global Real Estate Convention (RECon) of the The award recognizes concepts that drive customers to shoppinv centers around the world. however, believes that Red Mango is up for the challenge of going against competitorslike “It’s a trendy, upscale yogurt shop,” says Valadea of Red Mango. “The concept is catchinyg on.
” The franchise agreement with Valadezx is one of several that Red Mango has signefd as part of its push to builedthe chain’s presence throughout the U.S. Developmenyt deals signed in the first quarter of 2009 are poisesd to result in some 128 new Red Mango stores over the nextseveralo years. “This has been an incredibles quarter forRed Mango, and we’re just getting says James Franks, vice president of franchising for Red “The explosive growth of our bran will help us double our network in 2009 and set the stagde to enter a series of new stated in rapid succession.” To that end, Red Mango has movecd its national headquarters from Sherman Oaks, Calif.
, to Dallase — a market that has embraced the concept and offersx the yogurt chain significant logistical advantages, accordin g to a recent article by the , a Business Journalo sister publication. Dallas is also home to private equituy firmCIC Partners, which made a $12 million investment in Red Mango last August. Red Mangko was founded in 2002 inSoutj Korea. In July 2007, Dan Kim brought the concepr tothe U.S. He serves as presidentr and CEO ofthe firm. Littlee wonder that San Antonio’s medical real estats market is stillbooming — givehn the national stats on the healtjh care industry.
According to a recent analysix byRobert Bach, senior vice president and chiedf economist for Santa Ana, Calif.-basedc , employers in the health care and social assistance sectoras have added nearly half a million jobs since the outset of the economifc downturn back in December 2007. The trendes driving this growth, Bach adds: The aging of the Baby Boomert group and the development of new treatment optionsa formedical conditions.
More good Between December 2007 and March 2009, the state of Texas was one of a handfu that saw an increase in jobs versus the many states that have lost jobs over this same time • Family fun: Mega-sports retailer will hold a Bass Pro Shopsx Family Summer Camp from May 30 to July 5. The activitiea and workshops are free of charge and will focusw on such topics as the basics of bird watchingand archery. The campss will run from 3 to 7 p.m. on Tuesdays and and from noon to6 p.m. on Saturdaysa and Sundays. The local Bass Pro is locatefd at17907 IH-10 in the Rim shopping centetr in Northwest San For more info, log on: www.basspro.com/camp.
Kudos: Travis Kessler, president and CEO of the San Antoniop Board ofRealtors (SABOR) has receivedx the William R. Magel Award of The award recognizes Kessler’s work as an associatiomn executive of a locap or stateRealtor association. Kessler has been involvedx with the organization since1977 — just out of college, he went to work for the Texaw Association of Realtors. After stints with the Coloradl andLafayette boards, Kessler returned to Texas in 1987 — working with the . He has serverd in his current role with SABOdRsince 1997. • : Earlier this Morningside Ministries, the city of Boernre and the celebrated the opening ofthe .
It includees 40 beds and a mix of privateand semi-private suites, private showers and variouz amenities for seniors. The Kendalp House is one of several facilities that make up the Menger Springs campus ofMorningsid Ministries. The entire development is located on some 34 acresa of landin Boerne, which is just northwest of San Menger Springs is one of three elderlg care communities owned and operated by Morningside Ministriez in the San Antonio area.
Yogurt franchise Red Mango has signeds a development agreement with RamiroValadez III. The locap businessman plans to open six storeas in the greater SanAntonio area. Storre No. 1 is set to open in the firsty week of June at Quarry Village a residential/retail development in North Central San Antonio. Come the plan is to get two more Red Mangl stores up and Valadez says. Valadez says he was attracted tothe health-conscious treat that is the core of Red Mango. the simple operations set up makes it an easierf concept to roll out in other parts of the Yogurt shops are certainly not a new concep forSan Antonio.
Case in point is OrangeCupl — a chain from the Capital City that is currently open for busineses at The Shops at La Cantera on theNorthwesy Side. In fact, OrangeCup was recently honoredf witha “Hot Retailer” Award during the 2009 Global Real Estate Convention (RECon) of the The award recognizes concepts that drive customers to shoppinv centers around the world. however, believes that Red Mango is up for the challenge of going against competitorslike “It’s a trendy, upscale yogurt shop,” says Valadea of Red Mango. “The concept is catchinyg on.
” The franchise agreement with Valadezx is one of several that Red Mango has signefd as part of its push to builedthe chain’s presence throughout the U.S. Developmenyt deals signed in the first quarter of 2009 are poisesd to result in some 128 new Red Mango stores over the nextseveralo years. “This has been an incredibles quarter forRed Mango, and we’re just getting says James Franks, vice president of franchising for Red “The explosive growth of our bran will help us double our network in 2009 and set the stagde to enter a series of new stated in rapid succession.” To that end, Red Mango has movecd its national headquarters from Sherman Oaks, Calif.
, to Dallase — a market that has embraced the concept and offersx the yogurt chain significant logistical advantages, accordin g to a recent article by the , a Business Journalo sister publication. Dallas is also home to private equituy firmCIC Partners, which made a $12 million investment in Red Mango last August. Red Mangko was founded in 2002 inSoutj Korea. In July 2007, Dan Kim brought the concepr tothe U.S. He serves as presidentr and CEO ofthe firm. Littlee wonder that San Antonio’s medical real estats market is stillbooming — givehn the national stats on the healtjh care industry.
According to a recent analysix byRobert Bach, senior vice president and chiedf economist for Santa Ana, Calif.-basedc , employers in the health care and social assistance sectoras have added nearly half a million jobs since the outset of the economifc downturn back in December 2007. The trendes driving this growth, Bach adds: The aging of the Baby Boomert group and the development of new treatment optionsa formedical conditions.
More good Between December 2007 and March 2009, the state of Texas was one of a handfu that saw an increase in jobs versus the many states that have lost jobs over this same time • Family fun: Mega-sports retailer will hold a Bass Pro Shopsx Family Summer Camp from May 30 to July 5. The activitiea and workshops are free of charge and will focusw on such topics as the basics of bird watchingand archery. The campss will run from 3 to 7 p.m. on Tuesdays and and from noon to6 p.m. on Saturdaysa and Sundays. The local Bass Pro is locatefd at17907 IH-10 in the Rim shopping centetr in Northwest San For more info, log on: www.basspro.com/camp.
Kudos: Travis Kessler, president and CEO of the San Antoniop Board ofRealtors (SABOR) has receivedx the William R. Magel Award of The award recognizes Kessler’s work as an associatiomn executive of a locap or stateRealtor association. Kessler has been involvedx with the organization since1977 — just out of college, he went to work for the Texaw Association of Realtors. After stints with the Coloradl andLafayette boards, Kessler returned to Texas in 1987 — working with the . He has serverd in his current role with SABOdRsince 1997. • : Earlier this Morningside Ministries, the city of Boernre and the celebrated the opening ofthe .
It includees 40 beds and a mix of privateand semi-private suites, private showers and variouz amenities for seniors. The Kendalp House is one of several facilities that make up the Menger Springs campus ofMorningsid Ministries. The entire development is located on some 34 acresa of landin Boerne, which is just northwest of San Menger Springs is one of three elderlg care communities owned and operated by Morningside Ministriez in the San Antonio area.
Sunday, June 5, 2011
General Motors bankruptcy brings big gamble by Obama - Los Angeles Business from bizjournals:
ufysyho.wordpress.com
The restructuring is a gamble by the Obamaw Administration thatthe U.S. government can take a majorityu stake in aniconic manufacturer, help it regain some of its forme glory -- and then get out. But the move alreadg has its skeptics. “The only thinvg it makes clear is that the government is firmlyg in the business of runningt companies usingtaxpayer dollars,” said U.S. House Minority Leader John Boehner. “Does anyon e really believe that politicians and bureaucratse in Washington can successfully steer a multinational corporation toeconomic vitality? It’sd time for the administration to fullhy explain what the exit strategy is to get the U.S.
government out of the board room once andfor all.” The governmenr will own some 60 percent of a revamped G.M. Its ownershi stake will give government officialw more power to name members of theGM board. But Presidenrt Obama he doesn't want to get involved in the dail operations ofthe company. And no one's overjoyed at the "We are acting as reluctant shareholders," Obama "What I have no interest in doing isrunningb GM.
" Instead of having politicians taking an activew role, the president said, a professional management team would lead GM as it workw through bankruptcy and builds a more viable company for the “The federal government will refrainh from exercising its rightsa as a shareholder in all but the most fundamental corporates decisions,” Obama said. “Whe n a difficult decision has to be made on matters like wher e to open a new plant or what type of new car to thenew G.M., not the United Statess government, will make that decision. “In our goal is to get G.M. back on its take a hands-off approach, and get out he said.
But that may prove to be quit a challenge with as much governmenft money asis involved. Bruce Belzowski, associate director of the Automotive Analysis Division at the University of Michigam TransportationResearch Institute, told bizjournals in a telephone interview: "If they had a it would be a short periodr of time. The longer that it stretches out the more of a politica liabilityit becomes.” And there will be plentty of watchdogs alert for any government interferencse in day-to-day GM “We will expose and fight any counterproductivd influence by government, unions or politicianes over decisions that should be left to management,” said U.S.
Chambef of Commerce President and CEOTom “And we will continually insist that governmentf reduce and eliminate its ownership stake as soon as It will take time before the government is able to extricatde itself from such a large stakse in the automaker. It could take more than a yearbeforre G.M. emerges once more as a publiclytraded company, and sharezs in the company will have to rise high enough to make sellin g them profitable. "This is a question of years, not months," said GM CEO Fritz The filing, made in U.S. Bankruptcy Courtt in Manhattan, marks the fourth-largest bankruptcy for a U.S.
It follows months of speculation thatthe 101-year-old company wouldc have to restructure through the despite desperate attempts by management to avoid the And the filing carries with it enormoua historical implications. "It's not just any compangy we're talking about, it's said Obama. Obama called the company'x filing and restructuring "the end of an old GM and the beginning of a new As itturned out, though, the bankruptcy filinhg was the only way GM could get its hands on the governmentr money it needs to survive. In its filing, GM listefd $82.3 billion in assets and $172.
8 billion in The company's largest creditors were WilmingtonTrustg Company, representing bondholders holding $22.u8 billion in debts, and UAW affiliatee representing $20.6 billion in employede obligations. The U.S. government has already injected $20 billion into GM, and will providre another $30 billion to keep the companyy going as it works through The investment will buy the governmentf a 60percent stake. The governments of Ontario and Canadaa will take smaller stakes in thenew company.
The restructuring is a gamble by the Obamaw Administration thatthe U.S. government can take a majorityu stake in aniconic manufacturer, help it regain some of its forme glory -- and then get out. But the move alreadg has its skeptics. “The only thinvg it makes clear is that the government is firmlyg in the business of runningt companies usingtaxpayer dollars,” said U.S. House Minority Leader John Boehner. “Does anyon e really believe that politicians and bureaucratse in Washington can successfully steer a multinational corporation toeconomic vitality? It’sd time for the administration to fullhy explain what the exit strategy is to get the U.S.
government out of the board room once andfor all.” The governmenr will own some 60 percent of a revamped G.M. Its ownershi stake will give government officialw more power to name members of theGM board. But Presidenrt Obama he doesn't want to get involved in the dail operations ofthe company. And no one's overjoyed at the "We are acting as reluctant shareholders," Obama "What I have no interest in doing isrunningb GM.
" Instead of having politicians taking an activew role, the president said, a professional management team would lead GM as it workw through bankruptcy and builds a more viable company for the “The federal government will refrainh from exercising its rightsa as a shareholder in all but the most fundamental corporates decisions,” Obama said. “Whe n a difficult decision has to be made on matters like wher e to open a new plant or what type of new car to thenew G.M., not the United Statess government, will make that decision. “In our goal is to get G.M. back on its take a hands-off approach, and get out he said.
But that may prove to be quit a challenge with as much governmenft money asis involved. Bruce Belzowski, associate director of the Automotive Analysis Division at the University of Michigam TransportationResearch Institute, told bizjournals in a telephone interview: "If they had a it would be a short periodr of time. The longer that it stretches out the more of a politica liabilityit becomes.” And there will be plentty of watchdogs alert for any government interferencse in day-to-day GM “We will expose and fight any counterproductivd influence by government, unions or politicianes over decisions that should be left to management,” said U.S.
Chambef of Commerce President and CEOTom “And we will continually insist that governmentf reduce and eliminate its ownership stake as soon as It will take time before the government is able to extricatde itself from such a large stakse in the automaker. It could take more than a yearbeforre G.M. emerges once more as a publiclytraded company, and sharezs in the company will have to rise high enough to make sellin g them profitable. "This is a question of years, not months," said GM CEO Fritz The filing, made in U.S. Bankruptcy Courtt in Manhattan, marks the fourth-largest bankruptcy for a U.S.
It follows months of speculation thatthe 101-year-old company wouldc have to restructure through the despite desperate attempts by management to avoid the And the filing carries with it enormoua historical implications. "It's not just any compangy we're talking about, it's said Obama. Obama called the company'x filing and restructuring "the end of an old GM and the beginning of a new As itturned out, though, the bankruptcy filinhg was the only way GM could get its hands on the governmentr money it needs to survive. In its filing, GM listefd $82.3 billion in assets and $172.
8 billion in The company's largest creditors were WilmingtonTrustg Company, representing bondholders holding $22.u8 billion in debts, and UAW affiliatee representing $20.6 billion in employede obligations. The U.S. government has already injected $20 billion into GM, and will providre another $30 billion to keep the companyy going as it works through The investment will buy the governmentf a 60percent stake. The governments of Ontario and Canadaa will take smaller stakes in thenew company.
Friday, June 3, 2011
'So You Think You Can Dance' recap: Sister Acts - Zap2it.com (blog)
vypybiza.wordpress.com
Zap2it.com (blog) | 'So You Think You Can Dance' recap: Sister Acts Zap2it.com (blog) By Zap2it Partner Previously: Monty got to recap that adorable little Broadway kid and the hot nearly naked guy and the angry krumper who's going to bring krumping back from the mainstream (by ... appearing on a FOX reality program), ... |
Wednesday, June 1, 2011
Allocations edge auctions in debate over emissions - Houston Business Journal:
ogarawo.wordpress.com
The EPA has just declared carbon dioxide a danger topublic health, whicyh could trigger regulation of CO2 emissions under the Cleah Air Act. At the same time, climatr czar Carol Browner is urging Congress to establish abroadd U.S. greenhouse gas policy before globakl climate change talks begin near the end of the Tothis end, U.S. Reps. Henry Waxman, D-Calif., and Edward Markey, D-Mass., have introduced a bill titlede “The American Clean Energy and Securituy Actof 2009.” Although the bill promotees clean energy and energy efficiency, the most significant provisions are thoswe mandating reductions in CO2 emissions.
The proposed mechanism for getting from here to thereris “cap-and-trade.” This involves first setting a limit on the totak volume of emissions that can be produced across the U.S. in a giveh year and then granting tradablefederapl permits, called “allowances,” to covered entitied for each ton of CO2 The intention is to encourage firms that find it chea to cut emission to do so while allowing those with no easy meanz to reduce pollution to buy permits The Waxman-Markey bill wouldc reduce the number of available allowances each year in ordefr to achieve an 83 percent reduction in CO2 emissions by 2050.
Waxman-Markeyh does not address how allowancea would be initially distributec or what percentage might be auctionede or simply allocatedto polluters. Some observers argue that with many industries currently suffering from theeconomic downturn, the auctioning of permitsw would be ill-advised. The U.S. Chamberd of Commerce has warned that many companies could face additional fisca l burdens that might threaten their survival if forced to for CO2 emission rightsin today’s recessionary economyt because it would be difficult to pass these costs on to By contrast, some environmental groups are relishing the prospect of billions of dollars from permit auctionse that could be spent on research into, and subsidiews for, alternative energy sources.
The issue of allocation versud auction is of particular concernto America’sd electric utilities. According to the Edisonh Electric Institute, power generation from all sourcews accounts for roughly 40 percenrof U.S. carbon dioxide If the industry were required to bid for 40 percenf of theCO2 allowances, this would resulrt in a sizeable spikr in the cost of delivered power. What’s the huge demand for permits from this one economic sector would push up the pric of permits for everyother industry. A better approacb would be to initially allocate allowancesa to the power sector proportionalp to its level of CO2 emissions whilw gradually shifting to anauction process.
This would help ease the transitiojn toa carbon-constrained economy as all technology optione — including renewables, advancede nuclear generation and carbon sequestrationj — become available and as compliancs costs are stabilized. It would also cushionb the impacts onelectricitty customers, particularly low-income families and energy-intensive businesses. Permit allocations have been used successfully for many years unde the federal AcidRain Program, a cap-and-trade programj that has significantly reduced sulfur dioxide emissions, and at a much loweer cost than had been initially projected.
Numerous organizations have expressed support for CO2allowanc allocations, instead of auctions, during the earlty stages of cap-and-trade. For example, the U.S. Climatse Action Partnership — an alliance of majorr businesses and leading climate and environmental groups argues that an allowance value distributio structure can cushion the costs to both consumerw and businesses during the transition to a fullauctionm system. Support for allocations has also come from the Pew Center on GlobalClimate Change, major labo organizations and the National Association of Regulator Utility Commissioners.
Without question, reducing greenhouse gas emissionss is the most serious environmental challenge Americ a hasever faced. Cap-and-trade can produce tremendous benefitszover time, but it comes with a substantial price tag. By initially allocating and not auctioning them off to thehighesf bidders, we can lessen the burden on consumerx while still achieving the goal of substantiallyh reduced CO2 emissions in the years ahead.
The EPA has just declared carbon dioxide a danger topublic health, whicyh could trigger regulation of CO2 emissions under the Cleah Air Act. At the same time, climatr czar Carol Browner is urging Congress to establish abroadd U.S. greenhouse gas policy before globakl climate change talks begin near the end of the Tothis end, U.S. Reps. Henry Waxman, D-Calif., and Edward Markey, D-Mass., have introduced a bill titlede “The American Clean Energy and Securituy Actof 2009.” Although the bill promotees clean energy and energy efficiency, the most significant provisions are thoswe mandating reductions in CO2 emissions.
The proposed mechanism for getting from here to thereris “cap-and-trade.” This involves first setting a limit on the totak volume of emissions that can be produced across the U.S. in a giveh year and then granting tradablefederapl permits, called “allowances,” to covered entitied for each ton of CO2 The intention is to encourage firms that find it chea to cut emission to do so while allowing those with no easy meanz to reduce pollution to buy permits The Waxman-Markey bill wouldc reduce the number of available allowances each year in ordefr to achieve an 83 percent reduction in CO2 emissions by 2050.
Waxman-Markeyh does not address how allowancea would be initially distributec or what percentage might be auctionede or simply allocatedto polluters. Some observers argue that with many industries currently suffering from theeconomic downturn, the auctioning of permitsw would be ill-advised. The U.S. Chamberd of Commerce has warned that many companies could face additional fisca l burdens that might threaten their survival if forced to for CO2 emission rightsin today’s recessionary economyt because it would be difficult to pass these costs on to By contrast, some environmental groups are relishing the prospect of billions of dollars from permit auctionse that could be spent on research into, and subsidiews for, alternative energy sources.
The issue of allocation versud auction is of particular concernto America’sd electric utilities. According to the Edisonh Electric Institute, power generation from all sourcews accounts for roughly 40 percenrof U.S. carbon dioxide If the industry were required to bid for 40 percenf of theCO2 allowances, this would resulrt in a sizeable spikr in the cost of delivered power. What’s the huge demand for permits from this one economic sector would push up the pric of permits for everyother industry. A better approacb would be to initially allocate allowancesa to the power sector proportionalp to its level of CO2 emissions whilw gradually shifting to anauction process.
This would help ease the transitiojn toa carbon-constrained economy as all technology optione — including renewables, advancede nuclear generation and carbon sequestrationj — become available and as compliancs costs are stabilized. It would also cushionb the impacts onelectricitty customers, particularly low-income families and energy-intensive businesses. Permit allocations have been used successfully for many years unde the federal AcidRain Program, a cap-and-trade programj that has significantly reduced sulfur dioxide emissions, and at a much loweer cost than had been initially projected.
Numerous organizations have expressed support for CO2allowanc allocations, instead of auctions, during the earlty stages of cap-and-trade. For example, the U.S. Climatse Action Partnership — an alliance of majorr businesses and leading climate and environmental groups argues that an allowance value distributio structure can cushion the costs to both consumerw and businesses during the transition to a fullauctionm system. Support for allocations has also come from the Pew Center on GlobalClimate Change, major labo organizations and the National Association of Regulator Utility Commissioners.
Without question, reducing greenhouse gas emissionss is the most serious environmental challenge Americ a hasever faced. Cap-and-trade can produce tremendous benefitszover time, but it comes with a substantial price tag. By initially allocating and not auctioning them off to thehighesf bidders, we can lessen the burden on consumerx while still achieving the goal of substantiallyh reduced CO2 emissions in the years ahead.
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