July 2010

Colleges NOT Worth Their Tuition (PHOTOS)

July 26, 2010

How much is your college education really worth? Are you taking advantage of what you paid (or are paying, or will pay) for? According to a return on investment report from salary data site PayScale , the sticker price of some American schools outweighs the benefits of its degree. Sure, some recent graduates leave college with a handle on Rousseau and microeconomics, but they aren’t necessarily making back what they spent on those four (five, or six) years. PayScale’s data reinforces that notion: Out of the 800-plus schools the site surveyed, some of the priciest institutions produce more graduates whose 30-year earnings hardly measure up to the price of four years of tuition. According to a report in BusinessWeek , schools that cost approximately $190,000 often have a 30-year net return on investment below $280,000. In the following slideshow, based on BusinessWeek’s list of the 20 institutions of higher education with the highest tuition and lowest ROI , are ten of the schools with the smallest payoffs. See BusinessWeek’s full list here — and check out PayScale’s complete ROI database .

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David Isenberg: You Have 20 Days to Get Out of Town

July 26, 2010

Last Friday the ever pertinacious Ms. Sparky scooped everyone by reporting that according to a recent memo from Col. Nolan of the U.S. Central Command Contracting Command to ALL CONTRACTORS IN IRAQ, ALL contractors in Iraq have 20 days to repatriate (send home) third country nationals whose countries prohibit travel to Iraq. This includes among others, the Philippines and Nepal. Ms. Sparky notes that this will affect virtually every service KBR provides the U.S. military in Iraq, from Filipinos working as craftspeople and laborers, in the Dining Facilities (DFAC’s), laundries, and driving trucks, and shuttle buses. There are both direct hire Filipinos as well as Filipinos who work for KBR subcontractors such as PPI and Serka who may have been smuggled in. This can not come as a surprise to either the U.S. government or its contractors. Companies like KBR, and all other contractors in Iraq had to know about the Iraq travel restrictions of the Filipinos. The Philippines banned its citizens from working in Iraq in July 2004 after insurgents abducted and threatened to behead Filipino truck driver Angelo dela Cruz. He was released after President Gloria Macapagal Arroyo agreed to withdraw the Philippines’ small military contingent in Iraq. This is not a trivial matter. Companies like Prime Projects International (PPI), a KBR subcontractor, must have more than 3000 Filipinos in the country. At minimum of $900 each for plane tickets the price tag for their departure will be huge. Private military contractors supporters often claim that despite the danger of working in war zones that Third Country Nationals (TCNs) are still better off than staying at home because, even if they make less money in Iraq than Western counterparts it is still more money than they would earn in their home country. But the other side of that is that TCNs are often treated like crap. In May 2005 some 300 Filipinos employed at a US military camp in Iraq went on strike to protest poor working conditions. The workers, under contract with PPI and KBR were based at Camp Cooke in the province of Taji. At least 500 workers from India, Sri Lanka and Nepal joined the strike led by the Filipino workers. According to the July 20 memo: In the past three weeks, eight third country nationals (TCN), several from countries whose current domestic laws prohibit their citizens from working in Iraq, were discovered to have been left behind by their previous employers at various contractor controlled camps (A.K.A. “mancamps”) throughout Iraq. This raises numerous concerns about whether contractors are complying with travel and work restrictions of certain TCN countries, Iraqi immigration requirements, and contract redeployment responsibilities to include their respective sub-contractors in the Iraq Joint Operating Area (IJOA). THIS LETTER SERVES NOTICE THAT ALL CONTRACTORS OPERATING IN IRAQ HAVE 20 DAYS FROM THE DATE OF THIS LETTER TO ENSURE THEIR EMPLOYEES COMPLY WITH U.S. AAND INTERNATIONAL LAW AND UNDERSTAND THEIR REDEPLOYMENT RESPONSIBILITIES UNDER THE TERMS OF THEIR CONTRACT.

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Video: Gallagher Discusses Outlook for Tax Cuts Set to Expire: Video

July 26, 2010

July 26 (Bloomberg) — Thomas Gallagher, head of policy research at International Strategy & Investment Group, discusses the prospects for U.S. tax cuts set to expire this year. Gallagher talks with Margaret Brennan on Bloomberg Television’s “InBusiness.” (This is an excerpt of the full interview. Source: Bloomberg)

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FCIC Threatens Goldman With Derivatives Audit

July 26, 2010

While Goldman Sachs (GS) has settled Securities and Exchange Commission civil fraud charges over its Abacus synthetic collateralized debt obligation transaction with a $550 million fine, its dispute with the Financial Crisis Inquiry Commission is ongoing. The FCIC now says it’s considering sending in outside accountants to audit Goldman’s systems for data on its derivatives business, the Financial Times reports.

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Video: June Sales of U.S. New Homes Climb More Than Forecast: Video

July 26, 2010

July 26 (Bloomberg) — Sales of U.S. new homes rose 24 percent in June, more than forecast, to an annual pace of 330,000 following an unprecedented collapse the prior month, figures from the Commerce Department showed today. Bloomberg’s Michael McKee reports. (Source: Bloomberg)

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Eve Tahmincioglu: Is the ADA DOA?

July 26, 2010

Today, the nation will celebrate the 20th anniversary of the signing of the Americans With Disabilities Act, but will you care? Most of us don’t, including many of those with disabilities. According to a survey by the Kessler Foundation and the National Organization on Disability : A majority (61%) of people with disabilities say that the ADA of 1990 has made no difference in their life, while just about one quarter (23%) report that the ADA has made their life better. Only 4% report that it has made their life worse and 7% have not heard of the ADA. Those are pretty sad numbers for a law that was supposed to level the field for disabled workers. Bias against disabled workers is still rampant, and the unemployment rate among the disabled is nearly 15 percent, and far more are so discouraged they don’t even look for work. While the Act was a great first step, enforcement of the law is the only way things will change, right? Here’s a video I did along with Diana Gialo on the ADA anniversary and thoughts from government and disabled advocates on what needs to be done. The top dog at the Equal Employment Opportunity Commission, the agency with the task of enforcing the ADA, said she is ready to roll her sleeves up and enforce the law: Change takes a long time. But things won’t change until employers are forced to accept people with disabilities who can do the job; or who need a little help to make the workplace work for them.

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MCM Solutions for Better Health Announces Organizational Change

July 26, 2010

CHICAGO, IL–(Marketwire – July 26, 2010) –  MCM , a national leader in providing population health management services, is pleased to announce organizational changes in the Sales/Marketing and Client Services Department. The changes reflect MCM’s goal of being the market leader in offering innovative and cost effective medical management solutions for health care payers.

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Video: Disney Said to Be in Talks to Buy Games Maker Playdom: Video

July 26, 2010

July 26 (Bloomberg) — Walt Disney Co. is in talks to buy Playdom Inc., maker of video games played on the Facebook social-networking website, according to a person with knowledge of the negotiations. Bloomberg’s Sheila Dharmarajan reports. (Source: Bloomberg)

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Video: Gammel Sees Dudley CEO Appointment as Move Forward by BP: Video

July 26, 2010

July 26 (Bloomberg) — Jason Gammel, an analyst at Macquarie Securities USA Inc., discusses the possibility BP Plc will name Robert Dudley to replace Tony Hayward as chief executive officer and the outlook for additional asset sales by the company. Dudley, the director of BP’s oil spill response unit, will soon be announced as the company’s first American chief and take the helm Oct. 1, a person with knowledge of the matter said. Gammel speaks with Carol Massar on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

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U.S. Cities Are Giving Away Land To Earn Money

July 26, 2010

BEATRICE, Neb. — Around the nation, cities and towns facing grim budget circumstances are grasping at unlikely — some would say desperate — means to bolster their shrunken tax bases. Like Beatrice, places like Dayton, Ohio, and Grafton, Ill., are giving away land for nominal fees or for nothing in the hope that it will boost the tax rolls and cut the lawn-mowing bills.

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F3 Technologies, Inc. Names Chief Operating Officer

July 26, 2010

ALPHARETTA, GA–(Marketwire – July 26, 2010) –  F3 Technologies, Inc. ( PINKSHEETS : FTCH ) has named Paul Campbell its chief operating officer, the company announced today.

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Video: McKelvey Says Housing Won’t Lead U.S. Economic Recovery: Video

July 26, 2010

July 26 (Bloomberg) — Edward McKelvey, senior U.S. economist at Goldman Sachs Group Inc., talks about the outlook for the U.S. housing market and economy. McKelvey speaks with Carol Massar on Bloomberg Television’s “In the Loop.” (Source: Bloomberg)

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Feinberg: BP Is STALLING Payments To Victims

July 26, 2010

British energy giant BP is holding up payments to economic victims of the Gulf of Mexico oil spill, Kenneth Feinberg, administrator of a $20 billion compensation fund, said Saturday.

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Video: Whalen Sees `No Credibility’ in European Bank Tests: Video

July 26, 2010

July 26 (Bloomberg) — Christopher Whalen, managing director of Institutional Risk Analytics, discusses the implications of the European Union bank stress tests and the outlook for consolidation in the EU financial industry. Whalen speaks with Deirdre Bolton on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Video: Gheit Says Appointing Dudley as BP CEO Would Make Sense: Video

July 26, 2010

July 26 (Bloomberg) — Fadel Gheit, managing director of oil and gas research at Oppenheimer & Co., talks about the possibility that Tony Hayward will be replaced by Robert Dudley as chief executive at BP Plc. Gheit, talking with Carol Massar on Bloomberg Television’s “In the Loop,” also comments on the potential costs the company faces from the oil spill in the Gulf of Mexico. (This is an excerpt of the full interview. (Source: Bloomberg)

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Video: Palma Discusses EU Bank Stress Tests, Risk Appetite: Video

July 26, 2010

July 26 (Bloomberg) — Jeffrey Palma, global equity strategist at UBS AG, discusses investors’ risk appetite and the potential implications of the European Union bank stress test results. Palma speaks with Carol Massar on Bloomberg Television’s “In the Loop.” (This is an excerpt of the full interview. Source: Bloomberg)

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Corporate Profits Are Up — But Mass Layoffs Have Helped

July 26, 2010

s companies this month report earnings for the second quarter, news of healthy profits has helped the stock market — the Standard & Poor’s 500-stock index is up 7 percent for July — but the source of those gains raises deep questions about the sustainability of the growth, as well as the fate of more than 14 million unemployed workers hoping to rejoin the work force as the economy recovers.

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Video: Barton Biggs Says He’s 75 Percent Net Long on Stocks: Video

July 26, 2010

July 26 (Bloomberg) — Barton Biggs, co-founder of Traxis Partners LP, discusses his investment strategy. Biggs talks with Tom Keene and Ken Prewitt on Bloomberg Radio’s “Bloomberg Surveillance.” (This report is an excerpt of the full interview. Source: Bloomberg)

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2011 Ford Explorer REVEALED: Can This New Model Save The SUV? (PHOTOS)

July 26, 2010

The 2011 Ford Explorer has just been revealed, and there are some big expectations — and big hype — driving the announcement. (SCROLL DOWN FOR PHOTOS) Mashable reports that Ford is relying on a large Facebook campaign to push the new model, which is expected to cost about $30,000 . The company hopes to convince buyers to pay more for less engine power , Bloomberg reports. USA Today calls it “an evolved SUV” and notes that Ford will heavily promote the new model’s improved fuel efficiency. Here’s more on Ford’s strategy from the AP: Ford begins a marketing campaign Monday for the 2011 Ford Explorer, which will be in dealerships this winter. It’s an important vehicle for the automaker. Ford says the Explorer is its best-known product after the Mustang. “Explorer is really still the backbone of the brand,” Ford’s marketing chief Jim Farley said recently at a gathering to introduce the Explorer to the media. The new Explorer has been completely redesigned. The most obvious difference: It’s built on a car platform, not a truck one, so it sits lower to the ground and has a smoother, more fuel-efficient ride. Ford is taking a risk with customers who expect a truck-like SUV. The new Explorer will have less towing capacity than the outgoing model – 5,000 pounds, versus 7,115 pounds – and it won’t offer a V-8 engine. “Ford’s challenge is to match the idea of the Explorer to this product,” said Aaron Bragman, an analyst with IHS Automotive. “It’s a good test for Ford to determine what an SUV is these days.” Trends in the market suggest most buyers aren’t looking for the power of traditional SUVs and would prefer a more fuel-efficient vehicle. Ford’s top U.S. sales analyst George Pipas said that a decade ago, 85 percent of all SUVs sold were truck-based; last year, just 23 percent were.

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David Isenberg: The GAO Transcripts, Part 21: We Do Not Work For the U.S. Military

July 26, 2010

This is the twenty first installment of the Government Accountability Office interview transcripts that were prepared pursuant to the July 2005 GAO report ” Rebuilding Iraq: Actions Needed To Improve Use of Private Security Providers .” This interview was done with representatives of a British PSC. It is clearly not Aegis Defence and the GAO only interviewed five other British PSC. The British PSC mentioned in Part 4 of these transcripts was most likely either Hart Group or Control Risks Group so my best guess is that this one is Global Risk Strategies; especially as the transcript mentions the firm had a contract with Task Force Olympia, which was held by GRS. But that is just a guess. To its credit the PSC tried to establish procures for working with the U.S. military. Unfortunately, they were not accepted. Also to its credit, the PSC is quite clear on the dividing line between it and regular military forces: None of ______________ contracts have a clause which requires them to comply with orders from MNFI commanders. ______________ would not allow employees to be under the command of the military. ______________ concern is that the military may ask them to take on a role that would be outside their normal business practices and might make their insurance invalid for example. This being said, the company will all ways try to comply with directions that help promote the safety of their clients and their personnel. Standard disclaimer: I have put in ( _____ ) to reflect those words of phrases which have been blacked out in the transcript. I have also put in the underlining as it appeared in the original transcript. As in the transcript, I have left out letters from various words, even when it seems obvious what the word is. Prepared by: Carole Coffey Index: C-BR65 Date Prepared: 5/19/05 DOC Number: 1325386 Reviewed by: Steve Sternlieb DOC Library: Goal 2 Job Code: 350544 Record of Interview Title Record of Interview with representatives of ______________ Purpose To obtain information on working as a PSC in Iraq Contact Method Face to Face Contact Place ____________________________ Contact Date April 12, 2005 Participants GAO Steve Sternlieb AD DCM 202 512-4534 Carole Coffey AIC DCM 202 512-5876 Comments/Remarks: Company Description and Security Overview 1. What contracts does ______________ have in Iraq? •______________the contract for __________________________________________ contract to provide __________________________________________ The contract was with the U.S. military Task Force Olyrnpia ______________ o longer has this contract. Also the company had a contract with the CPA to provide some security within the green zone and provided security to ______________ Currently the company has the ____________________________ ______________ as the contract to provide ____________________________ In addition, they have an on call service – people coming into Iraq can call and can be provided security on a short term basis. 2. What types of security (convoy, personal security, facilities) does ______________ provide for contractors and government agencies in Iraq? • The company provides all of the above services as well as security management and advice. In the way of facilities security, they provide security for housing areas as well as work sites. The also provide security for convoys as they make their way into Iraq or as the convoys move through Iraq. Chain of Command and Military Interaction 1. How does ______________ r its employees coordinate with the U.S. military? Has ______________ stablished any procedures for working with the military? Has the military established any procedures for working with PSCs that ______________ are of? Page 1 Record of Interview ______________ has established procedures to be used at military checkpoints and when encountering U.S. military convoys. A ______________ representative noted that the PSCs have tried to develop some common procedures for dealing with the military at checkpoints or when they meet convoys however the procedures have not been accepted by MNFI. So as a result each company has established their own procedures and practices. 2. Has ______________ or its employees ever requested military aid or backup? If so, please explain incident and its consequences. What was your opinion of the assistance provided to you by the military? ______________ has never a requested a QRF from the U.S. military but did request assistance from one of the coalition partners and the assistance was never received. ______________ ndicated that they frequently receive medical assistance from the U.S. military and it is always first rate. The medical assistance is rendered without regard for contract or nationality of the contractor. Have ______________ employees ever provided aid or backup to the military? If so, please explain. • No 4. Has ______________ noticed any differences in dealing/coordinating with the Marines or coalition military as opposed to the Army? • Each unit whether the are Marines or Army units have slight differences in procedures, although all of the procedures are basically the same. 5. Has ______________ suffered any friendly fire incidents with the military or other contractors? Please describe the circumstances around these incidents and any actions the company may have taken to prevent such incidents in the future. To whom are these incidents reported? If these incidents are reported in writing would you make them available to us? • ______________ has not been involved in any friendly fire incidents in Iraq. (Auditor’s note: ______________ does not consider the firing of warning shots by U.S. military as a friendly fire incident. Warning shots have been fired but ______________ has never had a vehicle damaged or a client or employee injured by U.S. troops so their do not consider that they have been involved in friendly fire. ______________________________________________________________________ 6. Have ______________employees discharged small arms or other weapons in performance of contract(s) in Iraq? If so, does ______________ produce a report of these incidents? If these incidents are reported in writing would you make them available to us? • According to ______________there was only one incident when their employees had to fire their weapons and that was in a1-Kut-As it was explained, the philosophy of ______________ is not to fight but to flee, to get their clients out of a dangerous situation as quickly as possible. There vehicles are designed to withstand gun fire and they can run on flat tires, so there is really very little need to exchange fire with the insurgents. 2 7. Has ______________ developed its own intelligence/information gathering capability? If yes, to what extent has this intelligence/information been shared with the military? Also, does the military provide intelligence and security information to ______________ • Information gathering is a core business for ______________ so they have developed a robust intelligence/information gathering capability which they share with the military and with other PSCs when appropriate. • Intelligence is provided by the ROC, and the representatives of ______________believe that the information provided the ROC has improved over the past few months. ______________ will use this information when they are planning movements around the country and when they are going into a new area. 8. Are there any interoperability issues between ______________ and the military? • Yes, because PSCs and the military can not communicate over radios. However, when wants to contract the military they call the ROC and the ROC contacts the appropriate military unit. They believe that this communications system works fairly well. Also, they have cell phones which may or may not work and satellite which can be used. If they have the necessary numbers etc they can call the military units directly. ______________in-country teams try to get to know the local commanders in areas they are working so that if they require assistance or support they can contact the appropriate people directly. The informal personal contacts and networks were particularly important before the ROC was stood up and provided a central point of contact for all PSCs. The PCO’s ROC, Movement Coordination, and Communication I. Who is responsible for scheduling convoy and personnel movements? Is there any coordination of movements or activities with the U.S. or coalition military? How does ______________ ensure coordination with the military? • No answer provided 2. What, if any, is ______________relationship with the Project and Contracting Office’s (PCO) Reconstruction Operation Center (ROC) and or Logistics Movement Coordination Center (LMCC)? What services offered by the PCO/ROC does ______________ use? What is the company’s opinion of the services provided by the PCO/ROC? 3. Does ______________ have access to other government run operations centers that provide different information than that provided by the ROC? What are the pros and cons of having more than. one operation center available to PSCs? • No answer provided 4. How does ______________ view the success of the PCO and the ROC? How could the PCO and ROC be improved? 3 ______________ believes the ROC has been a good addition and it provides a vital service when they need information for route planning etc, As was noted above, the ROC has improved communications between the military and the PSCs and routinely advises the ROC when it is moving about the country 5. Has ______________ utilized the Aegis/PCO website? If so, how helpful is the website? • No answer provided 6. Does ______________ keep a database of its personnel and their movements in Iraq? What type of information is included in the database? Has ______________shared this information with anyone at the embassy or the military? With the ROC? • No answer provided 7. Does ______________ write after-action or incident reports? What types of reports regarding security o you issue to your clients? To the PCO’s ROC? Are you required to provide after-action or incident reports to the military? • ______________ does detailed reports of all incidents including traffic addicents, office accidents, and incidents with insurgents, etc. Some reports such as those which document encounters with insurgents are provided to the ROCs. Interaction with other Private Security Companies 1. Does ______________ have interaction with other private security contractors? If so, please describe this interaction. • Yes there is some interaction with other PSCs. Forexample, (______________ will share security information with other PSCS if they involved in incidents or come under a new type of attack which might suggest that the insurgents have developed a new M0. 2. Is the Private Security Companies Association of Iraq (PSCAI) still intact and is your company actively involved in the group? • ______________ helps fund the PSCAI and onsiders a good forum to get competitors together to talk on an open basis. 3. Do you think that PSCAI has helped to convey contractor’s issues to the Iraqi government? • No answer provided Interaction with the Iraqi Government 4 1. Is ______________ registered with the Ministry of Interior and the Ministry of Trade in Iraq? What has your company’s experience been with the Iraqi Government? • ______________is registered with both the Ministry of Interior and the Ministry of Trade. It took about 9 months to complete the process. Employees 1. How many U.S. citizens work for ______________ in Iraq? If ______________ employs U.S. citizens in Iraq are any of them former U.S. military? If the company employs former U.S. military were these employees hired when they separated from military or did they work for other PSCs prior to joining ______________ • Currently there is 1 U.S. citizen working in Iraq for ______________ 2. What are the employment arrangements for individuals working in Iraq for ______________ Are they company employees or are they independent sub-contractors? • Most of ______________ employees in Iraq are independent subcontractors under short term contracts and are deemed to be self-employed. This makes terminating easier if they do not meet standards. ______________ ______________ ______________ ______________ depending on the contract and the nationality of the employees. Employees are only paid when they are in Iraq. Generally employees work 6 weeks in Iraq and then are out of Iraq for about 3 weeks ______________ does not have a problem with other firms poaching their employees because of the “duty of care” they provide. 3. Please provide us with the daily pay rates for employees working in Iraq. • See above 4. How does ______________vet its employees? • Western employees such as those from the UK, New Zealand, Australia and the US are vetted using all publicly available sources. In Iraq, Iraq employees are vetted by the private security companies that provide the personnel to ______________ The Iraq company claims to have a vetting process and ______________ trusts the companies to provide qualified people, however, it has taken over a year to develop this level of trust. Legal Issues Related to Working in Iraq 1. What is the legal status of ______________ mployees working in Iraq? Do you have any concerns regarding issues of immunity from Iraqi law? 5 • ______________ employees are still functioning under the immunity granted in the CPA’s orders and memos. ______________id not indicate that it had any concerns regarding immunity issues. 2. Are you aware of the Military Extraterritorial Jurisdiction Act (MEJA) and its possible ramifications for your employees (U.S. citizens and otherwise)? Did anyone provide you with information on MEJA? Do you have any concerns regarding MEJA or the application of other U.S. or international laws to your employees? Also, could you provide the following for your non-U.S. work force? 1. Number of non-U.S. citizens working for ______________ n Iraq • ______________ as between 450 and 500 persons working in Iraq and only 1 is a U.S. citizen. 2. Countries of origin of these employees • Not provided 3. Number of employees from each country • Not provided 3. Have any of your employees been accused of committing any crimes while in Iraq? If so, were the incidents investigated by either Iraqi or U.S. authorities? How did ______________ deal with the accusations? What, if any legal steps were taken relating to these accusations, and by whom? • No employees have been accused of any crimes 4. Are employees of ______________ subject to British criminal laws for acts committed in Iraq? British employees in Iraq are not subject to British law. There was some discussion in Parliament about passing a MEJA like statute but nothing has come of it. 5. Are you aware of any PSC employees in Iraq being accused or involved with criminal incidents in Iraq? If so, please describe. • No Concluding Questions 1. How would you describe the security situation in Iraq? How has the security situation changed in Iraq since began ______________working in Iraq? • In the last few months there has been a slight decline in incidents in some areas but several other areas are getting worse such as Mousel and Kir Kut. 2. What does ______________ see as issues involving private security contractor activities in Iraq? 3. In the con p view how could the PSC/military relationship in Iraq be improved? • Continue to improve communications between the military and the PSCs • Have PSCs provide input to the pre-deployment training ______________ believes that the U.S. military needs a better understanding of why PSCs are in Iraq and the types of services they are providing to both governmental and non-governmental entities. • State in writing what the military will and will not do for PSCs. Now it is up to each unit commander. Additional Questions 1. Did any of your contracts require your employees to comply with orders of MNFI relating to health, safety, force protection and non-interference in military operations? What is the impact of this clause in your opinion? For example, does this clause place your employees under the command and control of MNFI? To the best of your knowledge has this clause come into play in Iraq? None of ______________ contracts have a clause which requires them to comply with orders from MNFI commanders. ______________ would not allow employees to be under the command of the military. ______________ concern is that the military may ask them to take on a role that would be outside their normal business practices and might make their insurance invalid for example. This being said, the company will all ways try to comply with directions that help promote the safety of their clients and their personnel. (Auditor’s note: ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

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Video: Mark Dow Says EU on Right Path Following Stress Tests: Video

July 26, 2010

July 26 (Bloomberg) — Mark Dow, a portfolio manager at Pharo Management LLC, discusses the outlook for the European banking industry following the results of stress tests on 91 banks. Dow talks with Jon Erlichman on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Video: Kenney Says a BP Move to Dudley as CEO May Be Political: Video

July 26, 2010

July 26 (Bloomberg) — Jason Kenney, head of oil and gas research at ING Wholesale Banking in Edinburgh, talks about the possible replacement by BP Plc of Chief Executive Tony Hayward. Kenny speaks with Deirdre Bolton on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Bob Dudley BP’s New CEO? American Expected To Take Reigns

July 26, 2010

NEW ORLEANS — The man overseeing the much-maligned response by BP PLC to the Gulf oil spill crisis is the likely choice to replace gaffe-prone Tony Hayward to run the company and would become the first American to ever head the oil giant. A senior U.S. government official said Sunday that Hayward is on his way out but didn’t know who would be his successor. The official was briefed on the decision last week and spoke on condition of anonymity because an announcement had not been made. BP said Monday that “no final decision” had been made about management changes. The oil company said its board would meet Monday evening, a day before it announces earnings for the second quarter. Shares were up 2.2 percent at 407.6 pence ($6.31) in early trading in London. One of the most likely replacements would be Bob Dudley, BP’s managing director, who spent part of his boyhood in Mississippi and has been running the day-to-day oil response since June. He would be the first American to head BP PLC since it was founded as the Anglo-Persian Oil Co. in 1909, according to a spokesman. In television interviews Monday, Rep. Edward Markey, D-Mass., who heads the subcommittee on energy and environment, welcomed news that Hayward might be replaced. But he expressed caution about Dudley, noting it was Dudley who said earlier this month that the oil well could possibly be fixed by July 27. Work on relief wells expected to permanently kill the well is not yet complete. “I’m hopeful that Mr. Dudley will be more responsible, but a total change in the culture of this company is neccessary,” Markey told CBS’ “Early Show.” There also has been speculation that BP could tap Iain Conn, a Scot who runs BP’s refining and marketing arm and also serves on BP’s board of directors. BP’s board would have to approve a change in company leadership. To analysts and Gulf residents, it would be a welcome change for a company that has been criticized as being out of touch with the concerns of U.S. fishermen, tourists and residents affected by the catastrophe. “He’s a very good delegator,” Oppenheimer & Co. senior analyst Fadel Gheit said of the 54-year-old Dudley. It also helps that Dudley can identify with the people and the region. Dudley spent time growing up in Hattiesburg, Miss., an easy drive from the coast. He spent two decades climbing the ranks at Amoco Corp., which merged with BP, and lost out to Hayward on the CEO’s slot three years ago. Dudley is viewed as more of a diplomat than Hayward, who angered U.S. lawmakers with his refusal to answer many of their questions during testimony in Washington on the spill. That was after infuriating scores of frustrated Gulf residents by infamously declaring “I’d like my life back,” in May. In his first week running the spill response, Dudley shuttled between the Gulf and Washington, defended BP engineers after a setback, toured a center where oil-covered turtles are treated and enlisted the help of a politically connected relief expert. He also has held a nationally broadcast town-hall style meeting with Gulf residents and has been in daily contact with U.S. government officials. BP has not confirmed that Hayward is being replaced. Early Sunday, company spokesman Toby Odone seemed to downplay media speculation about the departure, saying he “remains BP’s chief executive, and he has the confidence of the board and senior management.” It’s been more than three months since an offshore drilling rig operated by BP exploded off Louisiana on April 20, killing 11 workers and setting off the spill. A temporary plug has stopped oil from gushing for more than a week now, but before that the busted well had spewed anywhere from 94 million to 184 million gallons into the Gulf. Since the explosion, Hayward has made several highly publicized gaffes. Among them: going to a yacht race while oil washed up on Gulf shores, and uttering the now-infamous: “I’d like my life back” line. Gheit, the analyst, said it was too bad Hayward’s career was derailed by the spill, but “unfortunately he became a sacrificial lamb in a politically charged world.” Dudley would be well-suited to take over, Gheit said, while noting that it is never an easy time to instill new leadership in a company. “I’m not sure if removing Tony Hayward is going to throw BP’s problems away,” Gheit said. New Orleans Mayor Mitch Landrieu said BP’s attitude about making things right is more important than who is running it. “BP, from I think everybody’s perspective, made a very bad mistake,” he said. “I think what the world expects from BP is an acknowledgment that something was done wrong. I think BP has a long way to go to gain the trust of the people.” The company has already spent roughly $4 billion on its response to the crisis. The final tally could be in the tens of billions of dollars. News that the CEO will depart came as no surprise to people living along the Gulf. Patrick Shay, 43, sat on a porch swing of his cottage in Grand Isle on Sunday, his front yard filled with small, white crosses, each bearing the name of sealife or ways of life the oil spill has killed. “He seems like a pretty self-absorbed person, so I’m not surprised to hear he would walk away in the middle of all this,” he said. “If anything it will help. They need to get him out of the way and get this cleaned up.” David Duet, 62, of LaRose, La., filled his ice chest at the grocery store in Grand Isle, where he brings his camper every weekend despite the oil. “I don’t think he’s directly responsible for the spill, but he still had to answer for it,” said Duet, who worked on oil rigs for more than 22 years. “I can understand the time it took to cap it. I know how hard things are out there.” Crews trying to plug the leaky well for good had to stop work late last week because of the threat from Tropical Storm Bonnie, but the effort was back on track as skies cleared Sunday. A drill rig was expected to reconnect to the relief tunnel that will be used to pump in mud and cement to seal the well, and drilling could resume in the next few days. Completion of the relief well that is the best chance to permanently stop the oil now looks possible by mid-August, but retired Coast Guard Adm. Thad Allen, the government’s point man for the spill, said he wouldn’t hesitate to order another evacuation based on forecasts similar to the ones for Bonnie. ___ Associated Press writers Tamara Lush, David Dishneau and Greg Bluestein in New Orleans, Mary Foster in Grand Isle, La., and Emily Fredrix in New York contributed to this report.

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Aruze Gaming America Announces Appointment of Bryan Coy as Chief Financial Officer

July 26, 2010

LAS VEGAS, NV–(Marketwire – July 26, 2010) –  Aruze Gaming America, a rising leader in global slot entertainment, announced today that it has appointed Bryan Coy as Chief Financial Officer for the Americas.

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Riverbed Appoints Carolyn Crandall as Vice President of Worldwide Marketing

July 26, 2010

Industry Veteran Brings Over 20 Years of Experience Leading Global Marketing Initiatives and Expanding Market Opportunities

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Video: Espirito’s Salgado Says Bank’s Capital Is `Quite Strong’

July 26, 2010

July 26 (Bloomberg) — Ricardo Salgado, chief executive officer at Banco Espirito Santo SA, talks about passing the European stress tests and first half earnings. He speaks with Andrea Catherwood on Bloomberg Television’s “The Pulse.”

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Video: Trustee May Sue Madoff Investors Who Made Money: Video

July 26, 2010

July 26 (Bloomberg) — Bloomberg’s Carol Massar reports on major newsmakers in today’s Movers & Shakers. (Source: Bloomberg)

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Video: ING’s Kenney Says New BP CEO to Be `Positive’ for Shares

July 26, 2010

July 26 (Bloomberg) — Jason Kenney, an analyst at ING Wholesale Banking in Edinburgh, talks about the possible replacement of Tony Hayward as BP Plc chief executive officer by Robert Dudley, the director of BP’s oil spill response unit. Kenney speaks from Edinburgh with Andrea Catherwood on Bloomberg Television’s “The Pulse.”

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Bernie Kossar Joins Augme Technologies’ Advisory Board

July 26, 2010

Seasoned Big Board Company Executive to Play Key Advisory Role

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Video: Youngson Surprised at Timing of Potential Hayward Ouster: Video

July 26, 2010

July 26 (Bloomberg) — Dougie Youngson, an analyst at Arbuthnot Securities Ltd., talks about the possibility that Tony Hayward will be replaced by Robert Dudley as chief executive at BP Plc. Youngson, speaking with Jon Erlichman on Bloomberg Television’s “InsideTrack,” also discusses BP’s operations in Libya and asset sales. (Source: Bloomberg)

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Video: Bloomberg’s Harper Discusses Goldman’s AIG Protection: Video

July 26, 2010

July 26 (Bloomberg) — Bloomberg’s Christine Harper discusses Goldman Sachs Group Inc. documents that show the bank depended on Citigroup Inc. and Lehman Brothers Holdings Inc. for protection against a failure of American International Group Inc. Harper talks with Jon Erlichman on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Video: E&Y’s Goodwin Sees `Slow, Patchy’ U.K. Economic Growth

July 26, 2010

July 26 (Bloomberg) — Andrew Goodwin, a senior economic advisor for the Ernst & Young LLP’s Item Club, talks about the outlook for the U.K. economy. Gross domestic product will rise 2.2 percent next year, compared with a prediction in April for 2.7 percent expansion, the research group, which uses the same forecasting model as the U.K. Treasury, said today. He speaks with Maryam Nemazee on Bloomberg Television’s “Countdown.”

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Video: Bloomberg’s Reed Discusses Outlook for BP’s Hayward: Video

July 26, 2010

July 26 (Bloomberg) — Bloomberg’s Stanley Reed discusses the outlook for the naming of a successor for embattled BP Plc Chief Executive Officer Tony Hayward. Reed talks with Deirdre Bolton on Bloomberg Television’s “InsideTrack.” (Source: Bloomberg)

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Sean Stanton Joins AirTight as Director of Business Development and Strategic Alliances

July 26, 2010

Stanton Brings Extensive Wireless Infrastructure and Security Experience

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Video: Goldman Sachs Relied on Citi, Lehman for AIG Protection: Video

July 26, 2010

July 26 (Bloomberg) — Goldman Sachs Group Inc. documents show that the company stood to receive $1.7 billion in payments from credit-default agreements with Citigroup Inc., Lehman Brothers Holdings Inc. and a number of other counterparties had American International Group Inc. defaulted. Bloomberg’s Deirdre Bolton reports. (Source: Bloomberg)

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Video: Perez Renovales Says Bankinter Capital Is Sufficient

July 26, 2010

July 26 (Bloomberg) — David Perez Renovales, head of finance and risk at Bankinter SA, talks about the bank’s performance in the European stress tests. He speaks with Andrea Catherwood on Bloomberg Television’s “The Pulse.”

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Onyx Pharmaceuticals Inks 126,493-SF Office Deal

July 26, 2010

Onyx Pharmaceuticals Inc., the cancer biopharmaceutical company, signed for 126,493 square feet at 249 E. Grand Ave. in South San Francisco, CA. The deal includes 68,738 square feet subleased from Exelixis and the entire first and second floor space leased…

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Video: EBF’s Ravoet Says Bank Stress Test Results `Comforting’

July 26, 2010

July 26 (Bloomberg) — Guido Ravoet, secretary general of the European Banking Federation, talks about the results of stress tests on 91 European banks. He speaks with Andrea Catherwood on Bloomberg Television’s “The Pulse.”

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Video: Ford Wants Buyers to Pay More for Smaller Explorer Engine

July 26, 2010

July 26 (Bloomberg) — Bloomberg’s Deirdre Bolton reports on the latest breaking news and top stories in today’s Business Briefs. (Source: Bloomberg)

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Tony Hayward Replacement? BP Says ‘No Final Decision’

July 26, 2010

LONDON (Associated Press) – BP PLC said Monday that “no final decision” has been made about management changes, which reportedly include the departure of Tony Hayward as chief executive in an effort to mend the company’s image after the Gulf of Mexico oil spill. The oil company said its board would meet Monday evening, a day before it announces earnings for the second quarter. “BP notes the press speculation over the weekend regarding potential changes to management and the charge for the costs of the Gulf of Mexico oil spill. BP confirms that no final decision has been made on these matters,” the company said in a statement to the London Stock Exchange. Shares were up 2.2 percent at 407.6 pence ($6.31) in early trading in London. British media reported over the weekend that Hayward was negotiating the terms of his departure ahead of its second quarter results announcement on Tuesday. A U.S. government official also said on condition of anonymity that Hayward is on his way out as CEO. However, the Financial Times reported Monday that he was likely to stay on for two more months while BP continues work on drilling relief wells, seen as the permanent solution to the leak. The BP board would have to approve a change in company leadership. Citing unidentified sources, the BBC and Britain’s Sunday Telegraph said detailed talks regarding Hayward’s future had taken place over the weekend. Hayward, 53, had become a lightning rod for outrage in the United States about the spill which started on April 20 with an explosion and fire on the Deepwater Horizon rig. Eleven workers died in the disaster. Hayward had assumed a high-profile role as the face of BP in responding to the spill. His comment that he was eager to resolve the incident “so that I can have my life back” antagonized his critics in the United States. Robert Dudley, currently heading the effort to clean up the Gulf Coast, figured prominently in speculation about Hayward’s likely successor. Dudley is currently BP’s managing director, and grew up partly in Hattiesburg, Mississippi. He spent 20 years at Amoco Corp., which merged with BP in 1998, and lost out to Hayward on the CEO’s slot three years ago. He took over from Hayward as the point man on the cleanup in June. Last week, BP said the cost of dealing with the spill had reached nearly $4 billion, but that it was too early to quantify the eventual total cost. Hayward joined BP in 1982 as a geologist, and currently makes 1.045 million pounds (US$1.6 million) a year as the company’s head, according to their annual report. In 2009, he received a performance bonus of more than 2 million pounds plus other remuneration, bringing his total pay package to over 4 million pounds. BP is the process of selling assets to raise $10 billion toward a $20 billion fund that will finance the clean-up of the mess in the Gulf. BP announced last week that it had sold properties in the United States, Canada and Egypt to Apache Corp. for $7 billion. Under pressure from President Barack Obama, BP has also announced that it will pay no more dividends to shareholders this year.

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Video: Nomura’s Quinn Says Spanish Bank Stress Tests `Rigorous’

July 26, 2010

July 26 (Bloomberg) — Daragh Quinn, an analyst at Nomura International Plc, talks about the Spanish stress tests and the outlook for the country’s banking system. He speaks in Madrid with Manus Cranny on Bloomberg Television’s “Countdown.”

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Red Stone Launches 250M Bond Fund

July 26, 2010

Real estate finance company Red Stone Partners has unveiled a 250 Million TaxExempt Bond Fund

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