No Votes Disguise Yes Sympathies for Some in G.O.P.

WILLIAMSBURG, Va. — House Republicans have their Tea Party Caucus. They have their G.O.P. Doctors Caucus. And, joining the list of varied special interest caucuses, they recently picked up another influential but much more unofficial group — the Vote No/Hope Yes Caucus.

These are the small but significant number of Republican representatives who, on the recent legislation to head off the broad tax increases and spending cuts mandated by the so-called fiscal cliff, voted no while privately hoping — and at times even lobbying — in favor of the bill’s passage, given the potential harmful economic consequences otherwise.

Representative Tom Cole of Oklahoma, part of the Republican whip team responsible for marshaling support for legislation, said the current makeup of House Republicans could be divided roughly into a third who voted in favor of the bill because they wanted it to pass, a third who voted against the bill because they wanted it to fail, and a third who voted against the bill but had their fingers crossed that it would pass and avert a fiscal and political calamity.

One lawmaker, Mr. Cole said, told him that while he did not want to vote in favor of the bill, he also did not want to amend it and send it back to the Senate where it might die and leave House Republicans blamed for tax increases. “So I said, ‘What you’re really telling me is that you want it to pass, but you don’t want to vote for it,'” recalled Mr. Cole, who voted yes.

As House Republicans gather here in Williamsburg on Thursday for their annual retreat, the Vote No/Hope Yes Caucus is likely to come in for serious attention as party leaders and members of the rank and file try to map out an approach to coming confrontations with President Obama and Congressional Democrats that are certain to leave Republicans with uneasy choices.

The Vote No/Hope Yes group is perhaps the purest embodiment of the uneasy relationship between politics and pragmatism in the nation’s capital and a group whose very existence must be understood and dealt with as the Republican Party grapples with its future in the wake of the bruising 2012 elections.

Ron Bonjean, a Republican strategist and once the top spokesman for the former House speaker J. Dennis Hastert, a Republican, described the phenomenon thusly: “These are people who are political realists, they’re political pragmatists who want to see progress made in Washington, but are politically constrained from making compromises because they will be challenged in the primary.”

The New Year’s Day tax vote was a case study in gaming out a position on a difficult bill that many Republicans knew had to pass but was also one they preferred not to have their fingerprints on.

The Republican leadership itself seemed to reflect the ambivalence of their membership; Speaker John A. Boehner voted in favor of the legislation, while Representative Eric Cantor of Virginia, the majority leader, voted no. Even Representative Kevin McCarthy of California, the No. 3 Republican charged with securing votes for bills, voted against the deal. (Ultimately, 85 Republicans joined with 172 Democrats to pass it.)

“I think it’s important that leadership provide an example, so either you’re for it and you want your members to vote for it, and when you have confusion at the top, that leads to confusion in the rest of the ranks,” said John Feehery, a Republican lobbyist and also a former top spokesman for Mr. Hastert. “They have to be much more coordinated, and they have to do a much better job explaining to the rank and file what’s going on here.”

Explaining his own vote to his local newspaper at the time, Representative Paul D. Ryan of Wisconsin, the Budget Committee chairman and a former vice-presidential candidate, seemed to acknowledge that some members of his party were not voting for a bill that they privately wanted to to pass, saying, “If you think a bill should pass, you ought to vote for it.”

The phenomena occurred again this week as the vast majority of House Republicans, many citing spending concerns, abandoned a measure to provide relief for states hit by Hurricane Sandy, even though Republicans clearly wanted the measure to ultimately pass.

At the two-day retreat, aides said, Republican leaders are expected to emphasize that a united conference going forward will offer House Republicans the strongest negotiating stance on crucial coming issues like the debt ceiling limit and spending cuts. Conservative rank-and-file members, meanwhile, plan to express their frustration at feeling largely cut out of the deal-making process, and to request more chances to offer input.

“I think there will be a lot of looking back on the fiscal cliff vote,” Mr. Cole said. “I think there will be some discussion on the divided leadership, saying, ‘You guys need to sort this out, you need to be willing to make a decision and lead.'”

Still, he added: “I can make a pretty good case that our problem is less one of leadership than of followership. I’d be happy to just have some people who would follow decently.”

Part of the problem House Republicans are struggling with is philosophical: What does it mean to hold the majority in the House, but still be the minority in a town currently under Democratic control? What is ideal, what is achievable, and where does that fine line of compromise lie?

And what are the limits of their own conference?

“Look, the reality is we control one-half of one-third of the federal government in a Democratic-run town,” said Michael Steel, a spokesman for Mr. Boehner.

Of course, legislators reluctant to take potentially unpopular votes are nothing new. A classic example occurs with Congressional pay raises, where, said David Dreier, a newly retired California Republican, the adage is, “Vote no and take the dough.”

In late December, Republicans encountered a similar challenge when Mr. Boehner put forth his “Plan B,” an alternative measure to avert the tax increases and spending cuts that ultimately failed because of lack of support in his own party. Republican aides and representatives said that while the House Republicans privately had nearly 230 members in favor of the plan, they were not able to muster commitments for the actual 218 votes necessary for a majority.

On both Plan B and the fiscal legislation, Republicans said that many of the representatives ultimately recognized that the compromises were probably as good a deal as they could expect, and ones that were necessary to avoid a financial meltdown. Yet opposing the bills proved a politically safer and more ideologically pure move.

“Some members are worried about being primaried from the right, and some members don’t want to be hounded by their constituents,” Mr. Feehery said. “It’s always easier to vote no. No one will yell at you if you vote no. They’ll only yell at you in the grocery store if you vote yes.”

Read More..

Missouri Lawmaker Wants Violent Video Games Taxed

A rural Missouri lawmaker wants her state to tax certain video games to help curb gun violence. The Associated Press reports state Rep. Diane Franklin, R-Camdenton, believes a 1 percent sales tax on video games rated teen, mature and adults only would help finance mental health programs aimed at reducing gun violence such as the recent mass shooting at Sandy Hook Elementary School in Newtown, Conn.

What does the legislation propose?

House Bill 157 proposes to create “an excise tax based on the gross receipts or gross proceeds of each sale” of video games rated by the Entertainment Software Rating Board (ESRB). The tax also involves the “storage, use or other consumption” of violent video games in Missouri including “tangible personal property.” This means the tax could extend to memorabilia derived from the games such as toys, clothing and video game accessories.

How does the legislation hope to enhance public safety?

The law hopes to procure “new and additional funding for treatment of mental health conditions associated with exposure to violent video games… .” The revenue from the tax cannot be used to replace existing revenue already in place. Franklin deems the legislation “necessary for the immediate preservation of the public health, welfare, peace and safety.” Therefore, if the legislation passes it will go into effect immediately. There is no mention in the legislation as to how much revenue should be generated, nor does it say whether the sales tax is just on new merchandise as opposed to used games on the secondary market.

Have similar laws been considered before?

A similar proposal was struck down in mid-February in Oklahoma. Democrat William Fourkiller crafted legislation in 2012 that is very similar to Franklin’s idea in Missouri. A subcommittee struck down the bill by a 6-5 margin. Fourkiller, in defending the law , said it wasn’t a “magic bullet” but that Oklahoma had “to start somewhere” to curb childhood violence. Oklahoma also would have taxed ESRB teen, mature and adults only games at a rate of 1 percent.

Does the Missouri law have a chance to pass?

CNN notes a federal appeals court made a ruling in 2003 that video games are free speech protected by the First Amendment. Ironically, it was a federal case stemming from St. Louis County, Mo., that created the precedent for video games as free speech. Senior U.S. District Judge Stephen Limbaugh’s decision was reversed by an appellate panel. The ruling came shortly after the state of Washington banned the sale of certain video games to children under the age of 17. Gamasutra reveals New Mexico also tried, and failed, to pass a similar law in 2008.

What are Franklin’s credentials as they relate to the proposed bill?

Franklin was first elected in 2010 from Camdenton. She is a mother of two sons and served on Camdenton School Board from 1993 to 1999. She sits on the House Appropriations-Education committee. Franklin is a third-generation small business owner and comes from a farming family. Missouri Republicans currently have a veto-proof supermajority in the General Assembly. Camdenton is a small city of around 3,700 people near Lake of the Ozarks in central Missouri.

William Browning is a research librarian specializing in U.S. politics.

Gaming News Headlines – Yahoo! News

Title Post: Missouri Lawmaker Wants Violent Video Games Taxed
Url Post: http://www.news.fluser.com/missouri-lawmaker-wants-violent-video-games-taxed/
Link To Post : Missouri Lawmaker Wants Violent Video Games Taxed
Rating:
100%

based on 99998 ratings.
5 user reviews.
Author: Fluser SeoLink
Thanks for visiting the blog, If any criticism and suggestions please leave a comment

Read More..

Lance Armstrong left it 'all on table' with Oprah

All the speculation is about to end. In a matter of hours, viewers can judge for themselves whether Lance Armstrong told the truth this time.

Armstrong's confession to Oprah Winfrey about using performance-enhancing drugs to win the Tour de France a record seven times in a row will be televised at 9 p.m. Thursday, the first segment of a two-part special on the Oprah Winfrey Network. Since word of his confession during Monday's taping in Austin, Texas, was first reported by The Associated Press, there has been no shortage of opinions or advice on what Armstrong should say.

The International Olympic Committee didn't wait to listen.

The IOC on Wednesday stripped Armstrong of his 2000 bronze medal, sending him a letter asking him to return it, according to officials who spoke on condition of anonymity because the decision had not been announced.

For others who will tune in Thursday, it's not just what Armstrong said that matters. How he said it, whether angry, tearful or matter-of-fact, will be judged as well.

"I left it all on the table with her and when it airs the people can decide," Armstrong said of his interview in a text sent to the AP on Wednesday. He dismissed a story earlier in the day that described him as "not contrite" when he acknowledged doping while dominating the cycling world.

Livestrong, the cancer charity Armstrong founded in 1997 and was forced to walk away from last year, said in a statement it expected him to be "completely truthful and forthcoming." A day earlier, World Anti-Doping Agency director general David Howman said nothing short of a confession under oath — "not talking to a talk-show host" — could prompt a reconsideration of Armstrong's lifetime ban from sanctioned events. And Frankie Andreu, a former teammate that Armstrong turned on, said the disgraced cyclist had an obligation to tell all he knew and help clean up the sport.

"I have no idea what the future holds other than me holding my kids," Armstrong said in the text.

Armstrong has held conversations with officials from the U.S. Anti-Doping Agency, including a reportedly contentious face-to-face meeting with USADA chief executive Travis Tygart near the Denver airport. It was USADA's 1,000-page report last year, including testimony from nearly a dozen former teammates, that portrayed Armstrong as the leader of a sophisticated doping ring that propelled the U.S. Postal Service team to title after title at the Tour de France. In addition to the lifetime ban, Armstrong was stripped of all seven wins, lost nearly all of his endorsements and was forced to cut ties with Livestrong.

According to a person with knowledge of the situation, Armstrong has information that might lead to his ban being reduced to eight years. That would make him eligible to compete in elite triathlons, many of which are sanctioned under world anti-doping rules, in 2020, when Armstrong will be 49. He was a professional athlete in the three-discipline sport as a teenager, and returned to competition after retiring from cycling in 2011.

That person also said the bar for Armstrong's redemption is higher now than when the case was open, a time during which he refused to speak to investigators. The person spoke on condition of anonymity because he was discussing a confidential matter.

Armstrong, who always prized loyalty on his racing teams, now faces some very tough choices himself: whether to cooperate and name those who may have aided, abetted or helped cover up the long-time use of PEDs.

Armstrong left his hometown of Austin, where the interview was taped at a downtown hotel, and is in Hawaii. He is named as a defendant in at least two pending lawsuits, and possibly a third. The Justice Department faces a Thursday deadline on whether to join a whistle-blower lawsuit filed by former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping.

That suit alleges Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. Armstrong could be required to return substantial sponsorship fees and pay a hefty fine. The AP reported earlier that Justice Department officials were likely to join the lawsuit.

___

Jim Litke reported from Chicago, Jim Vertuno from Austin.

Read More..

The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

1. Their Social Security number.
2. The 12-digit federal benefit number found on their checks.
3. The amount of the most recent check.
4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.

---

Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

DealBook: JPMorgan’s Board Uses a Pay Cut as a Message

Shortly after the markets closed on Tuesday afternoon, an emissary from JPMorgan Chase’s board of directors walked two flights down to the 48th-floor corner office of the bank’s chief executive, Jamie Dimon, to deliver a stark message. The board had voted to slash Mr. Dimon’s annual compensation for 2012 by half.

At first blush, the move appeared to be a stinging rebuke of Mr. Dimon for his failures of leadership that contributed to the bank’s multibillion-dollar trading loss last year.

But the pay cut was actually a message from the board to regulators and worried investors that it was a strong watchdog over the nation’s largest bank, according to several people with knowledge of the matter.

After facing criticism for its lax oversight, the board wanted to assert its position as a check on top management, according to the people, who declined to be named because the discussions were not public.

Mr. Dimon, who was the highest paid chief executive at a large bank in 2011, was unfazed when he heard the news. On Wednesday, Mr. Dimon said the board “had a tough job” in assessing how to reduce his total compensation for the year. He called the trading episode an “embarrassing mistake” and said, “I respect their decision.”

The decision came after back-to-back board meetings earlier this week where the head of the board’s compensation committee, Lee R. Raymond, the former chief executive of Exxon Mobil who is known for his no-nonsense style, made a compelling pitch to his fellow directors. The group, Mr. Raymond argued, needed to take swift, decisive action.

While a few members were initially skittish about the depths of the proposed cuts, the board voted unanimously to reduce Mr. Dimon’s pay to $11.5 million from $23.1 million a year earlier, according to the people. The directors also voted to release the results of internal investigations into the trading losses, which largely fault other top executives for the problems.

The extent of the cut took some JPMorgan executives by surprise when news of the compensation was disclosed on Wednesday along with the bank’s earnings, which surged to an annual record of $21.3 billion.

“Mr. Dimon bears ultimate responsibility for the failures that led to losses,” the board said in a statement. It added that upon learning the extent of the losses, he “responded forcefully.”

Still, the trading losses, which have swelled to more than $6 billion, have cast a long shadow over the board and management of the bank. Many of JPMorgan’s hallmarks that Mr. Dimon has trumpeted, from its deft management of risk to a deep bench of executive talent, have been partially undercut by the trading fiasco and ensuing upheaval.

Despite the board’s move on pay, some federal regulators are skeptical that the directors have prowess to adequately police risk, according to several current and former regulators with knowledge of the matter. Mr. Dimon, 56, who successfully steered the bank through the turbulence of the 2008 financial crisis relatively unscathed, still maintains a tight grip on the bank.

Some federal regulators worry that the board, which largely exonerated themselves in their internal investigation of the losses, cannot sufficiently push back against the hard-charging Mr. Dimon. Others, the regulators said, are concerned that the directors lack the financial acumen to rein in risky activities.

At the time of the losses, the board’s risk committee had three members, a smaller group than many of its major Wall Street rivals. Also troubling, the regulators said, the three included executives with little banking experience: the president of the American Museum of Natural History, Ellen V. Futter, and David M. Cote, the chief executive of the manufacturer Honeywell. Since the losses were disclosed, Timothy P. Flynn, formerly the chairman of the auditing firm KPMG, joined the risk committee.

Joseph Evangelisti, a JPMorgan spokesman, said, “This is the same board that brought us through the worst financial crisis in our history with flying colors.”

Since revealing the trading losses in May from a soured bet on complex credit derivatives, Mr. Dimon has exerted his powerful influence over the shape and direction of the bank. He has reshuffled the upper echelons of its management, claiming the jobs of some of his most trusted lieutenants. Two notable casualties are Douglas L. Braunstein, who ceded his role as chief financial officer in November, and Barry L. Zubrow, a former chief risk officer, who resigned as head of regulatory affairs late last year. Mr. Braunstein is a vice chairman reporting to Mr. Dimon.

Adding to the turmoil at the top of the bank, Ina R. Drew resigned as head of the chief investment office shortly after the trading losses were announced. Her precipitous fall was followed this year by the departure of James E. Staley, once considered a potential heir to Mr. Dimon.

To replace them, Mr. Dimon has elevated a group of younger executives, most of whom are in their 40s. Some bank analysts and executives at JPMorgan worry that the group does not yet have the institutional knowledge or experience of their more seasoned predecessors, according to several people with knowledge of the matter.

At a conference in San Francisco earlier this month, Mr. Dimon called the current group of executives “the strongest leadership team we have ever had in place.” He mixed his praise, however, with a sharp criticism of others at the bank in the aftermath of the trading losses. “Instead of helping, they were running around with their head chopped off,” he said. Some “acted like children” and wondered “What does this mean for me personally? How’s my reputation?”

At the same time, Mr. Dimon has emerged relatively unscathed. While critical of Mr. Dimon, an internal report, led by Michael J. Cavanagh, a head of the corporate and investment bank, leveled its most scathing attacks on the executives who directly oversaw the London traders who made increasingly outsize wagers in the bank’s chief investment office. “Responsibility for the flaws that allowed the losses to occur lies primarily with C.I.O. management,” the report, which was released on Wednesday, said. Also ensnared are Mr. Zubrow and Mr. Braunstein.

The cuts target Mr. Dimon’s bonus compensation. While his salary remained the same from a year earlier at $1.5 million, his bonus was whittled down to $10 million, paid out in restricted stock.

Still, Mr. Dimon has accumulated much wealth in his years at the bank. He owns bank shares valued at $263 million.

Ben Protess contributed reporting.

A version of this article appeared in print on 01/17/2013, on page A1 of the NewYork edition with the headline: JPMorgan Uses Big Cut in Pay To Send Signal.

Read More..

DealBook: JPMorgan Cuts Dimon’s Pay, Even as Profit Surges

Even as profit surged, the board of JPMorgan Chase cut the pay package of its chief executive, Jamie Dimon, by 50 percent, in light of a multibillion-dollar trading loss last year.

By the overall numbers, it was a good year for JPMorgan. The bank reported a record profit of $5.7 billion for the fourth quarter, up 53 percent from the period a year earlier. Revenue was also strong, rising 10 percent, to $23.7 billion for the period.

“The firm’s results reflected strong underlying performance across virtually all our businesses for the fourth quarter and the full year, with strong lending and deposit growth,” Mr. Dimon said in statement.

But the year was clouded by a multibillion-dollar trading loss stemming from a bad bet on derivatives. JPMorgan continues to unwind the bungled trade, which had racked up $6.2 billion in losses through the third quarter of 2012. The bank said it “experienced a modest loss” in the last three months of the year.

In light of the trading losses, the bank’s board voted to reduce Mr. Dimon’s total compensation. That decision was driven by a desire to hold him accountable for some of the oversight failings that led to the troubled bet, according to several people close to the board.

The board cut Mr. Dimon’s total compensation for 2012 to $11.5 million from $23 million a year earlier. While his salary remained the same at $1.5 million, his bonus was reduced to $10 million, paid out in restricted stock.

On an earnings call on Wednesday, Mr. Dimon emphasized that this latest quarter largely signaled the end of the trading debacle. “We are getting near the end of it,” he said. Mr. Dimon acknowledged that the board “had a tough job” in assessing how to reduce his total compensation for the year. While “this was one huge mistake,” Mr. Dimon said, the board had to look at “the positives and the negatives.” He added that he “respects their decision.”

Although Mr. Dimon’s compensation fell sharply, he dodged much of the criticism for the trading losses in two reports released on Wednesday. One report details the result of a sweeping investigation into the trades led by Michael J. Cavanagh, formerly the bank’s chief financial officer, and the other outlines the board’s findings.

In the case of Mr. Dimon, the reports mainly took aim at his over-reliance on senior managers. “He could have better tested his reliance on what he was told,” the investigation found.

Instead, much of the blame centered on Ina R. Drew, who oversaw the chief investment unit where the trading took place. Ms. Drew resigned in May shortly after the losses were disclosed.

Under Ms. Drew’s leadership, there were failures “in three critical areas,” including the execution of a complex trading strategy and gaps in oversight of the large portfolio, according to the investigation. The report indicated that Ms. Drew failed “to appreciate the magnitude and significance of the changes” as the riskiness of the trades escalated.

Barry Zubrow, the bank’s former chief risk officer, was also singled out. Douglas Braunstein, who left his position as chief financial officer in November, was cited “for weaknesses in financial controls.” The investigation found that the organization should “have asked more questions or to have sought additional information about the evolution of the portfolio.”

Despite the overhang of the bad bet, JPMorgan produced record profit for the quarter, as economic and credit conditions improved. The bank reduced the money it set aside for potential losses, adding to overall profit. And the bank recorded gains in all its major divisions, showing strength in both consumer and corporate banking operations.

For the full year, JPMorgan reported earnings of $21.3 billion, compared with $19 billion in 2011. Revenue in 2012, at $97 billion, was essentially flat.

Despite the rocky market conditions and uncertainty related to the budget impasse, the corporate-focused businesses reported nice gains. Investment banking fees jumped 54 percent, to $1.7 billion, with improvements in debt and equity underwriting. Revenue in the commercial banking group hit $1.75 billion, after the 10th consecutive quarter of loan growth.

Income in JPMorgan’s asset management group rose 60 percent, to $483 million. JPMorgan has been ramping up the business, as riskier ventures get crimped by new regulation.

Like other big banks, JPMorgan’s earnings have been bolstered by a surge in mortgage lending, driven in part by a series of federal programs that have helped drive down interest rates. As homeowners seize on the low rates, JPMorgan is experiencing a flurry of refinancing applications. The bank is also making bigger gains when those loans are packaged and eventually sold to big investors.

Over all, the mortgage banking group posted profit of $418 million for the fourth quarter, compared with a loss of $269 million in the period a year earlier.

But those low interest rates also present a challenge for JPMorgan, which is dealing with glut of deposits. The bank reported average total deposits of $404 billion, up 10 percent from the fourth quarter of 2011.

As deposits pile up, the situation is weighing on profitability. The margin on deposits continued to shrink, dropping to 2.44 percent from 2.76 percent the period a year earlier.

The bank also continues to face a slew of legal problems.

In the last year, JPMorgan has worked to move beyond some of the issues stemming from the mortgage crisis. Along with competitors, JPMorgan reached deals with federal regulators over claims that its foreclosures practices might have led to wrongful eviction of homeowners. JPMorgan and other banks agreed this month to a $8.5 billion settlement with the Comptroller of the Currency and the Federal Reserve, which ends a costly and flawed review of loans in foreclosure ordered up by the regulators in 2011. The bank spent roughly $700 million this quarter on costs associated with the review.

Still, the bank is dealing with other cases that could prove costly. New York’s attorney general, Eric T. Schneiderman, filed a lawsuit against the bank related to Bear Stearns, the troubled unit that JPMorgan bought in the depths of the financial crisis. In the suit, filed in October, the attorney general claimed JPMorgan had defrauded investors who bought securities created from shoddy mortgages.

JPMorgan was also hit with two enforcement actions this week, the first formal sanctions from federal banking regulators over the bank’s multibillion-dollar trading loss. Regulators from the Federal Reserve and the Comptroller of the Currency identified flaws throughout the bank, citing failures in its ability to assess how big losses might swell as a result of the complex trades. In addition, regulators found that bank executives did not adequately inform board members about the potential losses.

Read More..

iPhone demand said to be ‘robust,’ recent cuts don’t reflect weak demand

Following recent reports from Nikkei and The Wall Street Journal that suggested Apple (AAPL) slashed iPhone 5 component orders in half due to weak demand,  the company’s stock fell significantly and opened below $ 500 for the first time in nearly a year. The reports have been called into question, however, with many believing they do not represent true consumer interest. Shaw Wu of Sterne Agee wrote in a note to investors on Tuesday, per Apple Insider, that his supply chain checks have indicated that demand for the iPhone 5 “remains robust.” The analyst believes the recent reports are a result of improved yield rates and possibly Apple’s recent supplier changes.

[More from BGR: PlayStation 4 and Xbox 720 could cost just $ 350, expected to launch this fall]

Despite the recent concerns, Wu expects Apple to post better-than-expected earnings for the December quarter led by sales of 47.5 million iPhones with a gross margin of 38.7%. Both estimates are above Wall Street’s expectations of between 46 to 47 million iPhones and a 38.3% gross margin.

[More from BGR: HTC One SV review]

Sterne Agee reiterated its Buy rating on shares of Apple with a price target of $ 840.

Wu’s expectations remain bullish compared to other Wall Street analysts. Stuart Jeffrey of Nomura is the most recent analyst to cut his outlook on Apple stock. Nomura reduced the company’s price target to $ 530 from $ 660 Tuesday morning, citing weak demand for the iPhone 5 and increased pressure on Apple’s margins.

This article was originally published on BGR.com

Wireless News Headlines – Yahoo! News

Read More..

Director defends 'Zero Dark Thirty' torture scenes

LOS ANGELES (AP) — Director Kathryn Bigelow defends torture scenes in her Oscar-nominated film "Zero Dark Thirty," saying torture was an undeniable part of the hunt for Osama bin Laden after the terrorist attacks on Sept. 11, 2001.

The film opens by declaring it's based on firsthand accounts of actual events.

But Sen. Dianne Feinstein, D-Calif., and other lawmakers criticized the film as misleading for suggesting torture led to the location of bin Laden. Lawmakers asked Sony Pictures to attach a disclaimer that the film is fictional.

"Experts disagree sharply on the facts and particulars of the intelligence hunt, and doubtlessly that debate will continue," Bigelow wrote in the Los Angeles Times on Wednesday.

The comments were Bigelow's most explicit reaction to the controversy so far.

"As for what I personally believe, which has been the subject of inquiries, accusations and speculation, I think Osama bin Laden was found due to ingenious detective work," she continued. "Torture was, however, as we all know, employed in the early years of the hunt. That doesn't mean it was the key to finding bin Laden. It means it is a part of the story we couldn't ignore."

"War, obviously, isn't pretty, and we were not interested in portraying this military action as free of moral consequences," she added.

Bigelow wrote that torture was part of the story and the backlash may be misdirected.

"I do wonder if some of the sentiments alternately expressed about the film might be more appropriately directed at those who instituted and ordered these U.S. policies, as opposed to a motion picture that brings the story to the screen," she wrote.

Last week, Sony Pictures co-chair Amy Pascal responded forcefully to a "Zero Dark Thirty" anti-Oscar campaign waged by Ed Asner and other Hollywood actors, saying "to punish an artist's right of expression is abhorrent."

Bigelow and "Zero Dark Thirty" screenwriter Mark Boal had said previously that they "depicted a variety of controversial practices and intelligence methods that were used in the name of finding bin Laden.

"The film shows that no single method was necessarily responsible for solving the manhunt, nor can any single scene taken in isolation fairly capture the totality of efforts the film dramatizes," they said.

Read More..

Well: Exercise Can Boost Flu Shot's Potency

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. And for maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people’s immune systems produce fewer antibodies to the influenza virus than others’ do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, elderly adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the biceps curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

Read More..

You're the Boss Blog: Ten Hard-Earned Lessons About Selling a Business

My last three posts have focused on Holly Hunter and her business sale that went bad. I want to thank Ms. Hunter for allowing her story to be told. Although she made some mistakes, she was willing to talk about them in the hope that others might learn from her experience.

But those mistakes are hardly unique to Ms. Hunter. In fact, many business owners have had similar experiences. The most important step owners can take when they think about selling their business is to make sure they understand the sales process. Once you start down the road, you’ll enter an alternate universe where the unexpected becomes the norm. Dealing with the unexpected is easier if you follow best practices.

If you decide the time is right to sell, here are 10 lessons that owners like Ms. Hunter have learned the hard way.

1. Hire an experienced team of advisers. You have spent years building your business, and you usually get only one shot at selling it. Having a team of advisers — an accountant, a business intermediary or broker, an attorney, a financial adviser and a business generalist — who have been down this road many times is crucial.

2. Use an intermediary to sell your business. Going through the sale of your business can be very difficult. You need an experienced intermediary or broker who will speak with the other party and represent you and only you in the sales process. Sellers who represent themselves almost always make mistakes that cost them time and money. This is not a time to cut corners in professional fees.

3. Make sure your advisers work only for you. As we saw with Ms. Hunter, her business broker was representing both sides of the deal. When this happens, the broker usually ends up working for no one — and problems occur.

4. Accept that the person who buys your business will change it. Most buyers have their own ideas about how things should be done. If your sale involves an earnout or seller financing, you want to make sure the seller’s actions won’t limit your ability to get paid any deferred money that is owed you.

5. Make sure you tie your most important employees to the business. Have them sign employee agreements that can be transferred to the new owner. The new owners may want you to stick around for a transition period, but they will want your main people to stay longer. Making sure they stay and don’t disrupt the company while it’s in transition is crucial to a successful sale.

6. Be sure your business continues to run well throughout the sales process — even when the sale becomes an all-consuming project. If sales fall through and the company falters while the owner is selling the company, it can hurt or even ruin a sale.

7. Be prepared for due diligence. It can feel like a colonoscopy and its real purpose may be to help buyers reduce the price they have to pay, but there is no getting around it. When businesses are getting ready to sell, I recommend  that they go through a mock due diligence process. This can help you figure out where your company’s weak points are and allow you to prepare responses for a potential buyer.

8. Get a personal financial plan done before trying to sell. One of the most common reasons seller’s remorse exists is that sellers often find out that they didn’t end up with enough money to reach their goals. A financial plan will help you determine how much money you need and set reasonable expectations.

9. Know what you will do with yourself after you sell the business. I’ve seen many sellers lose their way in life when they have no place to go. Before the sale, you were most likely spending between 40 and 60 hours a week at your business. You need to find a way to fill that time meaningfully.

10. Make sure you follow best practices even for the little things. Start, for example, by making all interested parties sign a non-disclosure agreement that has teeth. If possible, have an offering memorandum produced. Have a letter of intent in place with your buyer before you start to show sensitive corporate materials. Have a purchase and sales agreement that lays out the terms of the sale but also protects you after the sale from being sued by the buyer, the government or regulatory agencies.

Following the items above does not guarantee a happy outcome. But if you know what you’re getting into and have taken the time to follow best practices, you’ll be more likely to get the result you want. Remember, at the end of the day, it’s about using common sense. As we’ve seen over the last several weeks, it’s easy for common sense to go out the window in a business sale.

What have I missed in this list? What do you think are the most important things to check off as you sell a business?

Josh Patrick is a founder and principal at Stage 2 Planning Partners, where he works with private business owners on creating personal and business value.

Read More..