beach

Huffington Post…

Note to management: If you’re selling children’s clothing by featuring kids running along the beach in your ads, not airbrushing out the naked guy in the background could cause some problems. At a minimum, some people are going to wonder how you missed the birthday suit — and doubt that you did. Earlier this week, La Redoute, a French clothing company, posted a picture on its website that featured a boy wearing its T-shirt running along the beach with three other children his age. Behind the kids, there was a man who, with the help of a zoom feature on the site, could clearly be seen in his birthday suit, according to the French news website 20 Minutes . Though the French have a reputation for relaxed attitudes toward nudity, Magali Gruet, the head of the Parisian news department of 20 Minutes, said many readers considered the ad offensive. “It is definitely an outrage, especially on a page with children,” Gruet told HuffPost Weird News. “It has shown up on Twitter, and then people shared it during lunch break.” La Redoute sought to nip any potential fallout by publishing an apology: “La Redoute apologizes for the photo published on its site and is taking steps to remove it. We have opted to delete all the posts including this picture. “We are aware that it may offend the sensibilities of surfers. We will strengthen the validation process of all brand communications so this can not happen again in the future.” Screen Shot From LaRedoute.fr Is that enough? Sally Julien , a Seattle-based PR professional who has represented many global brands, thinks so. “Professionally, I’d say that La Redoute has taken the best course of action in the situation,” she told HuffPost Weird News. “When they realized that some people were offended, La Redoute pulled the offending images quickly, stated its intentions for ensuring that this didn’t happen again, and apologized.” Julien said that “speed and transparency are always the top priorities when situations like this, er, arise. And they appear to have ticked those boxes in a genuine and authentic way.” Still, Julien admitted she was surprised at how the French were reacting to the whole scandale . “I thought only Americans could get so uptight at a bit of nudity,” she laughed. “Looks like we have exported that particular bit of prudishness abroad.” It’s not yet known whether the naked man’s appearance was a mistake made during the photo shoot or if the photo was doctored as a joke of some kind, according to MetroFrance.com . However, Sean Dougherty, a PR professional who has represented such global brands as Sun Microsystems, Moody’s Investors Service, Ernst & Young and Dewey Ballantine, suspects someone at La Redoute might have been ballsy enough to post the naked-guy photo intentionally. “The company either did it on purpose, &agrave la Benetton or Abercrombie & Fitch, to use controversy to call attention to its brand, or it’s historically sloppy in quality control,” Dougherty said. “Neither says anything good about the brand. My advice would be to move on and not speak about it. Attempts to give money to victims’ charities or otherwise show the work behind fixing the problem will make it look more like a stunt, regardless of the reality.” Meanwhile, the photo of the nude beach-goer — whose identity also remains unknown — seems to have become an Internet meme and has already inspired a Tumblr blog . Though the photo has outraged some citizens, Gruet suspects that it won’t have a lasting negative effect on La Redoute’s French customer base. “I think it’s momentary and people are laughing a lot about it,” she said. “The funny thing is their last ad campaign slogan was ‘everything is allowed.’”

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Naked Man In Children’s Clothing Ad Creates PR Pain

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From: http://donedeals-3.blogspot.com/

MIAMI, FL–Even though buyers acquired more developer units per month in the first 90 days of 2011 than a year earlier, the Downtown West Palm Beach market still has more than 700 new condos unsold from the South Florida real estate boom, according to a new report from CondoVultures.com. As of March 31, 2011, the unsold new condo inventory represents nearly 21 percent of the more than 3,400 units created in Downtown West Palm Beach since 2003, according to the report based on the Condo Vultures® Official Condo Buyers Guide To Downtown West Palm Beach And Palm Beach Island™.   In the first quarter of 2011, buyers acquired an average of 12 new condos per month at a blended price of $236 per square foot in Downtown West Palm Beach, according to an analysis of Palm Beach County records. This year’s new condo sales activity represents a nine percent increase in transactions from the first quarter of 2010 when an average of 11 units were acquired per month at a blended price of $232 per square foot. “At the current sales pace in this all-cash market, Downtown West Palm Beach has nearly five years of available inventory remaining,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. “The good news is, Downtown West Palm Beach has fewer unsold new condos than the markets of Greater Downtown Miami, South Beach, and Sunny Isles Beach in Miami-Dade County. “The bad news is, Downtown West Palm Beach’s total unsold inventory number does not include some 500 units that were previously acquired in distressed bulk deals by out-of-town investment groups that are now trying to resell the condos at a profit to individual purchasers.”   Peter Zalewski of Condo Vultures® can be reached at 800-750-0517 or by email at peter@condovultures.com .

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700 New Condos Still Unsold In Downtown West Palm Beach

GCube Insurance Services, Inc. Expands Biofuels Team

May 23, 2011

NEWPORT BEACH, CA–(Marketwire – May 23, 2011) – GCube is pleased to announce that Nick Coenen has joined the company, the leading provider of insurance services for the renewable energy sector around the globe.

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Nation Watches As LA Sues Deutsche Bank

May 22, 2011

LOS ANGELES — A dead dog lies among the knee-high weeds, a sign to Guillermo Elenes that the burned out, boarded up house is being used as a dump. Inside, soiled diapers, fast-food trash and the strewn beer and vodka bottles indicate squatters have been living there. The dumping ground-crash pad serves as a squalid symbol of how the foreclosure crisis is riddling communities with blight because no one wants to shoulder the responsibility of maintaining foreclosed homes. “There’s one on every block,” said Elenes, a community organizer with the Alliance of Californians for Community Empowerment in Watts, a low-income South Los Angeles neighborhood pockmarked with foreclosed homes. “All we want is for the banks to step up and be good citizens.” Communities across the nation have made little progress in getting banks to maintain foreclosed properties, and as the ongoing crisis matures and bank-owned homes fall into advanced stages of disrepair, cities and residents are getting desperate. In a keenly watched move this month, Los Angeles forged a new strategy – it sued one of the world’s major financial institutions, Deutsche Bank, to force it to take care of 166 properties, both vacant and renter-occupied, charging the blue-chip German giant has turned into the city’s largest slumlord. “The buck stops with the owner of record. We’re saying, `You are an owner like any other owner,’” said Julia Figueira-McDonough, deputy city attorney. Not according to Deutsche or other banks. They say they aren’t really the owners, despite the fact that their name appears on the property title. They also say they are not responsible for maintenance. Representatives of Deutsche, as well as U.S. Bank, BNY Mellon and HSBC – three other major lenders that Los Angeles is investigating with an eye to suing, all said that loan servicers are responsible for property upkeep, as well as tasks such as sending default notices, modifying loans, selling homes, and collecting rent and mortgage payments. “We’re there in name only,” said Teri Charest, spokeswoman for U.S. Bank. “We’re trustees. We have a very limited role.” The real owners, the banks say, are the holders of the mortgage-backed securities – financial instruments comprising a pool of mortgage loans that are held in a trust and sold. The banks maintain they are simply distributors of the proceeds from the securities – the payments of a homeowner’s loan principal and interest – to the investors. Although the bank contracts the loan servicer, the bank’s role does not include pressing servicers to properly maintain the trust’s assets on behalf of its beneficiaries, bank representatives said. U.S. Bank, however, has sent notices to loan servicers that they must maintain properties in accordance with applicable laws, a statement said. Loan servicers, however, usually have a contract loophole that allows them an easy out from the maintenance burden. Typically, they’re only required to spend money on upkeep if they believe the outlay is recoverable, according to Laurence Platt, a Washington D.C. lawyer who has represented banks in foreclosure-related litigation. “Who pays for a pig in a poke?” he said. “This is a collateral issue of the whole foreclosure crisis.” Calls to two of the country’s largest loan servicers – Ocwen Financial Services of West Palm Beach, Fla., and Statebridge Co. of Denver, Colo. – were not returned. Houston-based Litton Loan Servicing declined to answer questions from The Associated Press. Many servicers are also owned by Wall Streeters such as Wells Fargo. The issue of loan servicers is an attempt to dodge responsibility, Figueira-McDonough said, because the banks are the owners of record, plus have a fiduciary duty to their trust beneficiaries. Officials in Los Angeles and other cities say they’re infuriated with the back-and-forth finger-pointing while an epidemic of eyesores is devastating neighborhoods. “We’re left holding the bag. Someone has got to be held accountable,” said Robert Triozzi, law director for the city of Cleveland, which unsuccessfully sued Deutsche Bank over different foreclosure-related issues three years ago. “Not only have these institutions caused this mess, they have continued to perpetuate it.” Silvia Lobato of South Los Angeles just wants repairs to the one-bedroom apartment she’s been renting for the past 14 years – named as one of the neglected Deutsche Bank properties in the city’s lawsuit. The kitchen sink plumbing has a leak that has caused the unit to rot and breed worms. The bathroom ceiling is covered with mildew. A city inspector told her the gas connection to the water heater is dangerous. Mice scramble in the walls. Everything was fine until the owner lost the duplex two years ago, said Lobato, who lives in the apartment with her three kids and another mother and her three children. Since then, she’s been unable to get the landlord to make repairs. “I call and call. They say they don’t have the money. I pay $680 a month in rent,” she said. “I worry about the kids in these conditions.” Governments have tried various tactics. Los Angeles, like many cities, last year enacted an ordinance mandating that banks register defaulting properties and pay a $155 fee so the city can track the property and collect funds for expenses. But despite the penalty of $100,000 fines for non-registration, the ordinance hasn’t worked because it relies on banks to self-report the properties. “There’s been minimal compliance,” said Figueira-McDonough. Other cities, including Fort Lauderdale, Fla., have tried to crack down by declaring unkempt homes “public nuisances,” and charging owners, including banks, with the cost of boarding up windows and mowing lawns. In cases where no owner can be found or bills are unpaid, a lien is placed on the property. Residents, incensed about homes on their blocks turning into drug dens, gang hangouts and vermin nests, are galvanizing. Watts resident Lynn Mottley drives around her neighborhood looking for telltale signs of foreclosure, such as chain link fences with no trespassing signs, jotting down the addresses in a notebook she keeps in her car. Mottley, an activist with the Alliance of Californians for Community Empowerment and the Home Defenders League, reports the addresses to the city and to lahoodwinked.com, an activist website that encourages residents to list foreclosed properties so the city can pursue owners for upkeep. Her notebook keeps filling up. “Wow, there’s another one,” she said, driving by a ramshackle bungalow with broken windows and an overgrown, junk filled yard. “Who wants to live next to this? Something has to be done.”

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Jobs Increase In April, But The Employment Picture Isn’t All Bright

May 6, 2011

This story was reported and written in collaboration with our partners at Patch.com . If you’re among the millions of Americans who don’t have a job and want one, you may have drawn some encouragement from a government report that came out this morning. According to the numbers-crunchers at the Department of Labor’s Bureau of Labor Statistics, the US economy added 244,000 jobs last month, making it three straight months in which the national payroll has increased by a monthly average of more than 200,000 positions. If you took a closer look, though, you might not have felt quite so encouraged. Jobs in some of the key higher-wage industries -– the kind that an economy needs to go from recovering to recovered –- are still lagging behind low-wage work. Nearly a quarter of the new jobs were in the retail sector, where the average hourly rate as of last year was $9.03, only a dollar and change above the current minimum wage. A very small and thoroughly unscientific sampling of job-related stories in towns and neighborhoods around the country seemed to confirm that things on the job-creation front are pretty ambiguous — not quite as bleak as they’ve been at times in the recent past, and not quite as bright as the overall job-growth numbers might lead you to expect. In Patchogue, N.Y., Anthony Hubert, a manager of the Roast Coffee and Tea Trading Company, said that the café was looking to hire baristas and had been getting lots of applications. Good news, right? Sure, but it came with a caveat. “Usually applicants are overqualified,” he said. “We’re looking for someone who has experience in cafés, but need someone younger without a college degree.” The problem with college degrees, he said, is that people who have them tend to hang up their aprons when better-paying jobs come calling. Not that the no-grad guideline is written into the company rulebook. The café recently hired a graduate of St. John’s University, Nicole Westfall. She’s making nine dollars an hour, exactly three cents below the 2010 retail-sector average. “You send resumés all over,” she said, “but every employer wants experience that isn’t there.” On the opposite side of the country, in Rancho Santa Margarita, Calif., about 200 people filed into a McDonald’s recently for what the company billed as its “National Hiring Day.” Maybe an eighth of them would walk away with jobs; the restaurant said it was looking to hire 25 workers. Jairo Moran, a store manager, said he met a lot of applicants who’d been unemployed since the start of the recession. “At this point, they really had to find a job,” he said. One of the applicants was Ken Bishop, a 30-year-old resident of Long Beach who said he’d already filled out paperwork in four other restaurants by the time he got to the McDonald’s. He planned to apply to three more jobs by the end of the day. Since losing his job as a greeter at Verizon Wireless in early March, Bishop, had filled out 30 to 40 applications. It had been “tough,” he said, but he remained hopeful. Dressed in a suit and tie, he sounded a note of defiant optimism: “My long-term goal is to apply for a position, move up, go back to school and get into human resources. Anything you can use as a starting point to move from point A to B to C to D. Everyone has to start somewhere.” In Morristown, N.J., Melissa Rivardo, a 42-year-old resident, put an even more positive spin on a recent bout of unemployment. After losing a restaurant job in 2008 — a job she’d held for ten years — she looked for a new job in the restaurant industry, she said. But the few owners who were hiring then didn’t give her a chance — it was clear, she said, they wanted someone younger. So she enrolled in a course for massage therapy, her passion. It paid off. She ended up getting a waiter job after all and now works two jobs — massage therapy and waiting tables. When her old restaurant closed, she said, “I felt some anxiety but then I also felt a sense of freedom to pursue what I had been thinking about for a long time.” Sal Canzonieri, a 51-year-old resident of Whippany, N.J., told a similar stor y. In 2008 he lost his job as a technical writer to Alcatel-Lucent, a company that makes telecom equipment. He’d been working there for 25 years when the company outsourced operations to China. But if China took away his old job, it supplied him with a new one, too, in a way. With the threat of bankruptcy and foreclosure looming, Canzonieri thought about how much he’d enjoyed teaching Qigong and Kung Fu to coworkers as part of the company’s employee wellness program. He decided to open his own business; what did he have to lose? He now teaches the Chinese martial arts in ten locations. *** Check out these other bleak/bright job-related dispatches from the Patch network: In Alpharetta, Ga., investments in city infrastructure attract high-tech jobs. (Bright.) In Port Washington, N.Y., a ” war for talent .” (Bright.) In Red Bank, N.J., a job recruiter advises ” Fall in love with the word ‘no .’” (Bleak.) In Ridgefield, Conn., the Chamber of Commerce reports an increase in ” small opportunities .” (Partly sunny?)

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Credit Card Executives Optimistic In Face Of Looming Dodd-Frank Rules

May 2, 2011

MIAMI BEACH, Florida (Maria Aspan) For the first time in years, credit card executives are looking beyond the losses of the financial crisis — and they’re even losing less sleep over the prospect of tighter government oversight. Losses from credit defaults keep falling, an explosion in smartphone payment systems and other technology has raised the prospect of new long-term revenue growth, and executives now believe they can mitigate the effects of the latest regulatory overhaul of the U.S. card industry. “I am optimistic … Nothing has been done that can’t be rolled back quickly,” longtime credit card executive Stephen Eulie said in an interview last week. Eulie, who has worked at JPMorgan Chase & Co and Citigroup Inc, is now the head of First National Bank of Omaha’s card unit, which runs credit card programs for companies, including Chrysler Group LLC. He spoke to Reuters last week on the sidelines of an annual credit card industry conference hosted by the publisher, SourceMedia. As in recent years, much of the conference was dominated by discussion about new regulation — from the lingering effects of a sweeping credit card law passed in 2009, to the so-called Durbin amendment to last year’s Dodd-Frank financial reform law. That provision would slash processing fees merchants pay banks every time a customer uses a debit card to buy something. The fee cuts would cost U.S. banks an estimated $13 billion in annual revenues under rules the Federal Reserve proposed in December. U.S. banks are also struggling to grow other sources of revenue, as consumers resist adding to their credit card balances. Revolving consumer credit fell at an annual rate of 4.1 percent, to $794 billion, in February, according to Fed data. Now banks are increasingly looking to new technology, such as mobile phone and ecommerce payments, to grow businesses in developing countries where people do not regularly use credit and debit cards. Citigroup and American Express Co executives emphasized those opportunities at the conference, using their keynote speeches to discuss new types of payments technology instead of regulation. “We need to figure out ways in which we can grow our business in a way that aligns with what Durbin’s rules are,” former Citigroup credit cards chief Paul Galant, who now runs a new payments group for the bank, told Reuters in an interview. “The cards businesses are incredibly vibrant and power virtually all of us today. These businesses are not going to disappear because of a single law.” CLOUDS CLEARING The Fed was supposed to finalize its rules on debit fee limits a week before the conference, but said in March it needed more time to sort through an overwhelming number of comments on its proposals. The delay has given some bankers and credit card executives hope a broad industry campaign in Washington to repeal or delay the debit fee cuts will ultimately be successful. Opponents of the crackdown are pushing for a vote soon on a proposal from Senator Jon Tester that would delay the rule for two years. While “the odds are looking better for a DC fix, I don’t think it’s something that can be relied upon by the industry, because there are so many procedural hurdles” in Congress, Morgan Stanley analyst Adam Frisch said during a panel discussion at the conference. Key Republican lawmaker Representative Spencer Bachus urged hundreds of small U.S. banks on Monday to “slay the dragons” when they battle Congress over the debit fee crackdown. The debit card fee restrictions are only part of a slew of regulation affecting the payments industry since 2009. A sweeping credit card law passed that year restricted the fees and interest rate changes that lenders could levy on their customers. The Dodd-Frank law of last year also created a new consumer financial protection bureau that is expected to further scrutinize consumer lending practices. Yet the atmosphere — and attendance — at the annual conference was the sunniest in years. About 750 bank employees, consultants and vendors descended on the Fontainebleau resort in Miami Beach, sipping pineapple-flavored water and sharing post-panel cocktails on a patio overlooking the ocean. The crowd included employees of Bank of America Corp, JPMorgan Chase, Citigroup, American Express, MasterCard Inc and Visa Inc, as well as other large U.S. lenders and networks. It was the conference’s best attendance since 2008, when consumers started losing their jobs — and stopped paying credit card bills — in record numbers. As losses surged during the financial crisis, few lenders could afford either the expense or the reputation of sending employees to hobnob at a beach resort with the size and opulence of a French chateau. But last week those employees were eager to talk about new business — and to trade tips for recouping the revenue losses of whatever regulations are finalized. Banks, including JPMorgan Chase and Bank of America, have already started discontinuing perks on debit cards or added fees to checking account services that were once free. As one conference attendee said, the industry is no longer focusing just on how to stop regulations: “Now it’s, ‘How do we get around it?’” The shares of the top six credit card lenders were mixed on Monday, with American Express shares closing up about 1.2 percent and Citigroup closing down about 2.2 percent. (Reporting by Maria Aspan; editing by Andre Grenon) Copyright 2011 Thomson Reuters. Click for Restrictions .

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Dylan Ratigan: How Much Longer for the "Royals"?

April 28, 2011

It is the best of times, it is the worst of times. Tomorrow we will see a wedding between a Prince and a soon-to-be Princess. Polling in the US and UK shows that the public itself is largely apathetic, but we in the media can’t seem to get enough of the event. The wedding will cost over $100 million in security and ceremonial costs, and the British government is giving everyone the day off. Ordinary people will use this day ostensibly to celebrate the ceremonies of those born to privilege. But what they will probably do instead is ignore the wedding and spend time with their families. In America, we’re seeing our own version of this. According to the Business Roundtable, the confidence of American CEOs has never been higher . But 70% of the American public thinks that the country is on the wrong track. If you listen closely, you can hear a subtle creaking under the hood of the global economic system, like a car on the road that is slowly breaking down. Every day there’s a new funny noise, something that says it’s just not working right. The basic dynamic is inequality all over the world, in staggering proportions. But the interesting nugget is not the unfairness, but the increasing inability of elites to manage the increasing anger coming from the global losers. Last week, it was in China, a country with even worse inequality than our own. The largest container port in the world — Shanghai — saw a serious strike by Chinese truckers. The strike was muzzled by a combination of a media blackout, police power, and select concessions by the Chinese government to the strikers. So what does that have to do with us? Plenty. China makes what America consumes. Take, for instance, Walmart. Walmart is increasingly a Chinese company these days, orchestrating the shipping of goods made by incredibly poor Chinese workers to increasingly poor American consumers . Apple is another hybrid Chinese company, a middle-man. Steve Jobs makes billions running a design, retail, marketing, and R&D shop in the US known as Apple. His business partner Foxconn CEO Terry Guo makes his billions making iPads, iPods, and iPhones with 800,000 “iSlaves” in China. This is a system, and the strategy behind it is quite explicit. Economists have designed it, and they call it fighting inflation. Since wage gains contribute to inflation, stopping wage gains is the goal of the international trading regime. The natural end result is low wage workers in China selling to high debt consumers in America. You get an unstable system with a deeply immoral core, but hey, at least there’s no inflation. How do I know this is done on purpose? Well, the people in charge of the system say it when they think no one’s paying attention. I’m going to return to this Federal Open Market Committee transcript from 2005, which has received too little attention. Here’s Fed Dallas President Richard Fisher describing his conversations with area CEOs. Everyone I’ve talked to continues to try to figure out ways to exploit globalization. Each of them, from the IT [information technology] guys to the big box retailers to the specialty chemical firms to the service firms, wants to have offshore supply. One of the CEOs said, “We have a long way to go in exploiting China.” We’ve heard that forever. If you read the New York Times article two days ago about Shanghai’s new deep water port, you have to realize that those facilities are being built to ship goods out of China, not so much to ship goods into China… Now, this is good news on the disinflationary front. The bad news is stateside. We don’t have the capacity to absorb it. Long Beach and the Northwest harbors are constrained. Work rules, according to our interlocutors, are very slow to adjust. But there are ways to beat the bottlenecks… Wal- Mart just built a four million square foot warehouse in the Houston port, in order to shift part of the burden from Long Beach. But it is evident that the enemy is us as far as exploiting globalization, and I think that’s a long-term problem that we might want to take note of over time. Get that? Shanghai is increasingly an export-only port. Fisher’s statements were in 2005, when our country couldn’t accept enough goods because of bottlenecks at our ports. But beat the bottleneck we did, by widening the Panama Canal a few years later so China could ship to east coast ports as well. So now the American factory floor is being transferred to China at a faster and faster rate. Which brings me back to the strikes. American CEOs have exported not just our job base, but all the labor unrest that can come with it. China is running out of capacity to make our products, and commodity prices are going up for them as well. So inflation is hitting Chinese workers very hard right now — one of the causes of the trucker strike was a significant hike in fuel prices. The Chinese government quickly made concessions to the strikers, and is broadly attempting to deal with an incredible gap between the rich and the poor. But as Reuters noted , they aren’t doing this because of goodwill. Their worry is political: The Party leadership is especially jumpy about threats to its control following online calls for “Jasmine Revolution” protests inspired by anti-authoritarian uprisings across the Arab world, and has detained dozens of dissidents. Food price hikes sparked strikes in Egypt, which eventually turned into a political revolution. The Chinese government isn’t stupid, but it is trapped. Their strategy is to take American know-how by undercutting us on price, using protectionist measures that we stupidly allow. Our own corporate oligarchs are well-aware of this dynamic as well. They have been preparing for this moment for some time. Walmart (along with GE and even more surprisingly, Google) led the fight in April, 2007 to gut a new labor law proposed for Chinese workers on issues like collective bargaining, severance, etc. The American Chamber of Commerce in Shanghai is using aggressive tactics to ensure that Chinese wages would remain low. Perhaps there is something ironic about aggressive lobbying tactics by multinationals being used effectively in both communist and capitalist legislatures to suppress worker rights. Or perhaps not. But you cannot suppress reality forever, and the strikes in Shanghai show that top-heavy gains eventually have consequences, even for those who make the rules. It’s not always as dramatic as Mubarak’s fall, but then again, Mubarak’s fall wasn’t the point when those first Egyptians began striking in 2007. It was the rising prices. It’s a very good time to be rich. The global trading system is benefiting those who manage huge capital flows. But unstable systems have a way of collapsing. And you can hear the creaking, even above the media circus of the royal wedding. Catch more from Dylan at DylanRatigan.com .

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Insider Trading: ‘I Didn’t Think Anyone Would Notice’

April 16, 2011

LONG BEACH, N.Y.–Kenneth T. Robinson knew he should walk away. But in an interview with The Wall Street Journal, he says he just couldn’t stop trafficking in insider-trading tips.

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Insider Trading: ‘I Didn’t Think Anyone Would Notice’

April 16, 2011

LONG BEACH, N.Y.–Kenneth T. Robinson knew he should walk away. But in an interview with The Wall Street Journal, he says he just couldn’t stop trafficking in insider-trading tips.

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Brown & Brown, Inc. Names Nick Dereszynski as Regional Vice President

April 15, 2011

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – April 15, 2011) – The Board of Directors of Brown & Brown, Inc. ( NYSE : BRO ) today announced that Nick Dereszynski, CEBS, CIC, has been elected Regional Vice President of the Company. Mr. Dereszynski will relocate from Syracuse, New York, where he has served as Profit Center Leader for the past six years and has overseen certain other retail offices in the State of New York, to Seattle, Washington, where he will assume responsibility for the oversight of all Brown & Brown retail operations in the State of Washington. Mr. Dereszynski will report to J. Scott Penny, Regional President and Chief Acquisitions Officer.

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Robert Lenzner: What Made Bernie Madoff Run?

April 13, 2011

“What Makes Sammy Run” by Bud Schulberg, was the fictional story of Sammy Glick, an unscrupulous Hollywood hustler, that fascinated me as a young man. So, I was curious to see what today’s Sammy Glick, the Ponzi schemer Bernie Madoff, had revealed to the Financial Times in a brilliant pursuit of his character and the truth (unrealized) in the weekend FT . Must reading. Like Sammy Glick Madoff was an outsider, born in Queens, not Manhattan, educated at Hofstra, not Harvard, and bitter at being an outsider, desperately hungry to be a part of the financial establishment — or if not, feared by it. All his life Madoff reveals a sad desire to be a BIG man, to impress men wealthier than he, members of the wealthy class, residents of Palm Beach, the Hamptons, the south of France. Yet, under the surface of his carefully crafted image, it appears that Madoff was harboring an intense loathing of the financial establishment, that he had outwitted for so long. “I started with $500 in capital. I watched my father go bankrupt. I was very driven… I was always outside the club, the club being the New York Stock Exchange and white shoe firms,” Madoff told the FT . Madoff claims he was legitimate until the 23% crash of the stock market in 1987. He makes up a complicated yarn for the FT which just doesn’t pan out in reality. He claims he was “at the mercy” of his 4 major clients like Jeffry Picower, Norman Levy, Stanley Chais and Carl Shapiro, whom he appears in thrall to and beleaguered by the need to please them. Madoff tells the FT these 4 wealthy men “were complicit, all of them.” He appears to mean that they brought in new clients, whose money was then used to give these 4 what apparently were greater returns than anybody else. Whatever the truth, and it is hard to absorb or believe his tortured yarn, it is evident that he means to bring them down to his level, to “out” them as the ruthless rich who forced little Bernie into a life of crime. By comparison, Sammy Glick was on the surface as well as underneath a ruthless slime ball, who would go to any length to rise to the peak of Hollywood. The movie made from the novel was a nasty terrible portrait of the culture in Tinseltown — just as Madoff’s career is a testament to the gullibility of the investment class who believed Bernie was a sure-thing moneymaker. I doubt that Madoff operated legitimately up until the 1987 break. A Madoff client from a 7th Avenue garment family was receiving a return of 20% every year from 1980 until 1992, which does not seem possible. No stock records, only a year-end statement; she made 20% come hell or high water. Madoff was hungry to be seen by rich clients on both sides of the Atlantic as some sort of investment genius. “I did it for all of them — so many important people from France and elsewhere… I even impressed myself. They came up to my office to meet me. They really wanted to deal with me.” Bernie was “impressed” with himself — so pedigreed were the investors in awe of him. Yet, all the while he was a fake, stealing from Aunt Sadie to buy the unctuous appeals of feeder funds for the sure thing. Pretending all the while to be of service to his co-religionists. The small man from Queens, from Hofstra, whose father had gone bankrupt, was legendary. Wealthy people, even “senior partners at Goldman Sachs” begged to be included in this steady goldmine. Today, Madoff seems to have scorn for all these people including the regulators and his bank, JP Morgan Chase. “I know that billions of dollars going in and out of a bank account is something that should alert you to something. They got all the financial statements… I was using them as custodian and they never raised alarm bells.”

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Goodman Sells VA Beach Retail Center for $91.2M

April 5, 2011

The Goodman Co. sold the 409,747-square-foot Landstown Commons Shopping Center in Virginia Beach, VA, to Inland Diversified Real Estate Trust Inc. for $91.2 million, or nearly $223 per square foot. The deal is Inland’s 33rd acquisition and its first in the state. Inland raised $22.8 million through a public offering and secured a $68.4 million loan to fund the purchase. Goodman, a West Palm Beach, FL-based office and retail property developer…

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Judge Tosses Extortion Lawsuit Against Yelp

April 2, 2011

SAN FRANCISCO — A federal judge who dismissed a class-action lawsuit accusing consumer review website Yelp of extortion is giving plaintiffs a month to refile their complaint. Judge Marilyn Hall Patel ruled last week that the original suit failed to back up small business owners’ claims that Yelp was manipulating user reviews to force them to advertise on the site. Plaintiffs claimed that negative reviews reappeared after they refused to buy advertising. They alleged account executives with the San Francisco-based company said they could control which reviews appeared if businesses bought ads. Yelp denied the claims and said the business owners misunderstood how the site works. The company says the site automatically filters reviews that appear untrustworthy, such as those from competitors or the businesses themselves. “Plaintiffs do not appear to argue that Yelp ever explicitly threatened to harm their businesses, through manipulating user reviews, if they refused to purchase advertising,” Patel wrote in her order to dismiss. Instead, she writes that the plaintiffs alleged actions by Yelp that implied a threat. “These theories of extortion … are insufficient to survive a motion to dismiss,” she wrote. Plaintiffs have 30 days to refile. Messages left with the lead attorney for plaintiffs were not immediately returned. Several lawsuits that were brought together in the class action were filed early last year. They followed on the heels of a lengthy 2009 expose in the East Bay Express, a San Francisco Bay area alternative weekly, that detailed gripes of local business owners who said they had come under pressure from the site’s ad sales representatives. The first suit was filed by the owner of a Long Beach animal hospital who said he started getting calls from Yelp after users had left negative reviews. The owner said he was told that if he advertised Yelp would hide or lower negative reviews on his page and let him choose the order of the reviews. In response, Yelp CEO Jeremy Stoppelman wrote on the website’s blog that advertisers don’t receive preferential treatment. “The allegations are disappointing, not only because they are false, but because they ignore empirical evidence in favor of conspiracy theories,” he wrote. Since the first lawsuit was filed in February 2010, Yelp’s monthly traffic has nearly doubled from 28 million monthly visitors to 50 million, the company said in a statement responding to the suit’s dismissal.

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GE Fights To Keep Key Fighter Jet Contract

April 1, 2011

By Colin Clark Editor, AOLDefense WEST PALM BEACH, FLA: General Electric, desperate to keep the second Joint Strike Fighter engine program alive in the face of Defense Secretary Robert Gates’ stop-work order, cannot spend its own money on the engines without government permission. This may cripple the joint effort by GE and Rolls Royce to keep the F136 program going during the 90-day stop-work period that began March 24. The program had been spending about $1 million a day. Right after the Pentagon issued its stop-work order, GE pledged to spend its own money to keep the F136 engine program alive. GE spokesman Rick Kennedy confirmed that the company is in a very hard place. “We cannot work with the hardware. Fortunately, we were in between key engine test phases and weren’t planning to run engines until mid-April. There’s much design work to do driven by testing results. So that’s good. But the stop work limits our ability to have engines ready for the next testing phase,” he said in an email after I asked him about the restrictions on the company’s ability to do anything with the existing engines and the hardware associated with them. His final word was a master-stroke of understatement: “It’s a challenging period.” The head of defense acquisition, Ash Carter, said right after the order was issued that the order was not irreversible and stressed that the Pentagon knew Congress would make the final decisions on the program. But the stop work order was clearly an escalation of the battle over the program, which has received congressional funding for the last few years in the face of determined opposition from the White House and senior defense officials. “The stop work order will remain in place pending final resolution of the program’s future, for a period not to exceed 90 days, unless extended by agreement of the government and the contractor,” the March 24 statement from the Gates Pentagon said. That last subordinate clause– “unless extended by agreement of the government and the contractor” — may contain the key to what may be the final conflict in the second great engine war. Given that the statement also said the second engine program “is a waste of taxpayer money that can be used to fund higher Departmental priorities, and should be ended now,” there would not seem to be much wriggle room for GE. But the consensus of observers I’ve spoken with in the last two days is that the F136 engine program is not dead yet. It has powerful supporters in the House and Senate. They will do their utmost to slip funding into the next funding bill required to keep the government going. And there’s a decent chance they will insert legislative language requiring the government spend the money and let work continue on the F136. The Joint Program Office overseeing the JSF program has not responded to our request for comment. Launching in Spring 2011, AOL Defense will provide news, insight and tools about the defense sector. Follow Colin on Twitter at @colinclarkaol

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‘Oh, Dude, We’re F—–’: Insider Trading Trial Wiretaps Fascinate

March 28, 2011

NEW YORK — Jurors at a closely watched federal trial are learning that the high-stakes world of hedge funds sometimes sounded like this: “I need to get back to basics. I’m gonna become Mr. October.” “Yeah, I love that.” And: “Hey get me a job with one of your powerful friends, man. I’m tired of this company.” Also: “Oh dude, we’re f—–.” The recordings – some crude and silly, others complex and confusing, all allegedly illegal – are key evidence in the case against Raj Rajaratnam, the former hedge fund manager who before his arrest in 2009 made a fortune for himself and others with his mastery of the technology and other markets. Prosecutors say the calls, combined with the testimony of cooperators, pull back the curtain to reveal how Rajaratnam was cultivating friendships with cash, trading advice and family vacations while committing his crimes. The trial, which is entering its fourth week, has become a showcase for what prosecutors say is the stepped-up use of FBI wiretaps in white collar cases. Wall Street insiders “who are considering breaking the law will have to ask themselves one important question: Is law enforcement listening?” U.S. Attorney Preet Bharara warned when he announced the Rajaratnam case. The FBI was listening to Rajaratnam, founder of the Galleon Group, and a nefarious network of other fund managers and public company executives nonstop in 2008 before he was charged with earning more than $50 million illegally by trading on inside information – what prosecutors have billed as the largest hedge fund insider trading case ever. In his opening statement, defense attorney John Dowd insisted there was nothing incriminating about the calls, only “a lot of self-promotion and gibberish. … Just a lot of drama.” But the government says it was more than just trash talk. Prosecutors have twice played a tape of a July 29, 2008, telephone call in which Rajaratnam grills former Goldman Sachs board member Rajat Gupta about whether the board had discussed acquiring a commercial bank or an insurance company. “Have you heard anything along that line?” Rajaratnam asked Gupta. “Yeah,” Gupta responded, “This was a big discussion at the board meeting.” Prosecutors sought to maximize the impact of the Gupta tape last week by calling Goldman Sachs CEO Lloyd Blankfein to testify that the phone call violated the investment bank’s confidentiality policies. Gupta, who has not been charged, has denied any wrongdoing. The government also has played tapes of Rajaratnam it says proves he was trading secrets with fellow hedge fund manager Danielle Chiesi, who has pleaded guilty in the case. The two could be heard bantering like a loving couple, praising his prowess as “Mr. October,” calling him “baby” and signing off with an, “I love you.” One exchange mixes finance with flirtation. “I mean I think this stock could go up $10 you know? But we got to keep this radio silence,” Rajaratnam said. “Oh please. That is my pleasure,” Chiesi responded. “Not even to your little boyfriends, you know?” “No, believe me – I don’t have friends.” On another tape, Rajaratnam’s trader brother drops the F-bomb twice while prosecutors say he was fretting over a newspaper article he feared may have blown an inside transaction. “Can’t catch a break,” the brother says. The calls also reveal a cozy alliance between Rajaratnam and Rajiv Goel, a top Intel executive-turned-cooperator. Goel kicked off one conversation jokingly asking for Rajaratnam to get him a new job. In another, he said he was calling “just to say you’re a good man.” Rajaratnam later chuckled and responded, “You’re a good guy too. When I see you I’ll give you a kiss on the cheek.” During Goel’s testimony, he was pressed on cross-examination about whether he thought Rajaratnam was joking about kissing him. “I hope he was – otherwise I had him figured out all wrong,” he responded, drawing a rare moment of laughter in the courtroom. Both Goel and former financial consultant and admitted tipster Anil Kumar testified that they had vacationed with Rajaratnam. Kumar testified that Rajaratnam once paid him a secret $1 million bonus for a tip that earned $20 million in 2006. Kumar also described how Rajaratnam mixed business with pleasure: While the pair sat on deck chairs at the beach outside Rajaratnam’s Miami condo in 2009, he said, the hedge fund manager took a phone call on the beach with a tip that Cisco would be buying another company – information Kumar traded on using his laptop. Kumar testified that Rajaratnam then foreshadowed their arrests a week later by confiding that he had been told to be “really careful” because one of his former employees was wearing a wire. He advised Kumar to take precautions by using prepaid phones that would be hard for investigators to track. He said he was “really disappointed” when he learned of it. “I can’t believe he is doing that and betraying me,” Kumar quoted Rajaratnam as telling him.

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Republicans Appear Poised To Take On Entitlements

March 27, 2011

CORAL SPRINGS, Fla. — If there’s any place where tea partiers in Congress might hesitate to call for cuts in Social Security and Medicare to shrink the federal debt, Florida’s retirement havens should top the list. Even here, however, Republican lawmakers are racing toward a spending showdown with Democrats exhibiting little nervousness about deep cuts, including those that eventually would hit benefit programs long left alone by politicians. In fact, many GOP freshmen seem bolder than ever. It’s Democrats, especially in the Senate, who are trying to figure out how to handle the popular but costly retirement programs. Congress, meanwhile, is rapidly nearing critical decisions on the budget and the nation’s debt ceiling. In southeast Florida last week, first-term GOP Rep. Allen West, a tea party favorite, called for changes that some might consider radical: abolish the Internal Revenue Service and federal income tax; retain tax cuts for billionaires so they won’t shut down their charities; stop extending unemployment benefits that “reward bad behavior” by discouraging people from seeking new jobs. As for entitlements, West told a friendly town hall gathering in Coral Springs, if Social Security, Medicare and Medicaid “are left on autopilot, if we don’t institute some type of reform, they’ll subsume our entire GDP” by 2040 or 2050. GDP, or gross domestic product, measures the value of all goods and services produced in the United States. Social Security, the largest federal program, mainly benefits retirees. Medicare provides health coverage for older people. Medicaid helps those with low incomes. Combined, the three consume about 40 percent of the budget. Their costs are growing rapidly. Social Security and Medicare benefits now exceed the payroll taxes that fund them. West, who’s likely to draw serious Democratic opposition next year, showed scant interest in edging toward the center on anything. He didn’t take issue with the man who said congressional Democrats “have joined with the radical Islamists,” or with the woman who said President Barack Obama “certainly doesn’t support Israel.” In Greenville, S.C., a different Republican freshman with tea party ties, Rep. Trey Gowdy, also suggested during last week’s congressional break a paring back of social programs. According to a Greenville News account posted on his website, Gowdy “described a recent school classroom where most children indicated they think it’s the government’s job to provide health care, Social Security and education. ‘We’ve got to do something about the sense of entitlement,’ Gowdy said.” Gowdy’s office later said he thinks Social Security “is a key aspect of a broad effort to fundamentally reform our entitlement system, but any solution must honor our commitment to current retirees.” Indeed, West and many other Republicans say current and soon-to-be retirees should see no benefit cuts. Their calls for changing Medicare and Social Security often lack specifics, and it’s unclear whether the divided Congress will tackle the programs’ long-term problems or postpone action, as has happened many times before on Capitol Hill. West’s desire to slash spending seems to stop at his district’s doorstep. The Coral Springs audience cheered loudly when he said he helped secure a $21 million grant for a new runway at the nearby Fort Lauderdale airport. “Grant money is not pork,” West said. He issued a press release saying the runway project “will generate at least 11,000 jobs” by 2014 and cost $791 million. While West spoke in Coral Springs, several dozen Republicans had wine and hors d’oeuvres in Palm Beach as they awaited a speech by former New York City Mayor Rudy Giuliani. There was ample sympathy in the room for raising the eligibility age for Social Security benefits. Obama’s debt commission recommended gradually increasing the full retirement age, from 67 to 69, over the next 65 years. “No one is going to be hurt by it,” said Steve Stevens, 80, a retired real estate developer. If people, rich or poor, count on Social Security to fund their retirement, he said, “it’s very poor planning.” Obama’s debt commission has recommended gradually increasing the full retirement age, from 67 to 69, over the next 65 years. Cynthia Steele, 51, said anyone making more than $100,000 a year should not receive Social Security benefits, even if it affected her and her friends. In Washington, Democrats are conflicted. Thirty-two Senate Democrats joined 32 Republicans in urging Obama to negotiate a broad-based spending plan that includes changes to Social Security and Medicare. Senate Majority Leader Harry Reid, D-Nev., says he opposes cuts in Social Security benefits. The centrist Democratic group Third Way says the public is ready to embrace gradual changes to entitlement programs and that Republicans are winning the issue so far. “We don’t believe Republicans ‘going too far’ will be their Waterloo,” the group said in a memo. “The party seen as most serious on the issue will win the day.” If Republicans and Democrats cannot agree soon on spending plans for this year and next, the government could face its first partial shutdown since 1996. That prospect worries leaders of both parties, and they are watching to see if last week’s recess hardened of softened lawmakers’ positions. West suggested there is room for compromise, but not much. “I’m not for shutting down the government,” he told the Coral Springs crowd. But he said Obama must lead the budget negotiations, or else. If there is a shutdown, West said, “it’s going to be because the president is not engaged.”

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Boeing Builds Second OKC Avionics Facility

March 23, 2011

Construction has begun on a second facility for Boeing Co. in Oklahoma City. The new six-story, 320,000-square-foot building is needed to accommodate growth in the local Boeing work force due to plans to move Boeing operations to Oklahoma from Long Beach, CA. The building will be designed and built by the Gardner Tanenbaum Group, a commercial real estate company headquartered in Oklahoma City, and leased by Boeing. The building is expected to open…

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Bill Gates On States’ Accounting: ‘The Guys At Enron Never Would Have Done This’

March 3, 2011

LONG BEACH, Calif. — During a second appearance onstage at the annual TED conference , Bill Gates spoke out against worsening state budget deficits caused by accounting “tricks” he said would make Enron’s former executives blush. The Microsoft co-founder and philanthropist said state budgets have received a puzzling lack of scrutiny and have been “riddled with gimmicks” aimed at deferring or disguising the true costs of public employees’ health care and pension obligations, citing California’s ongoing budget crisis as an example of creative deficit spending and the subsequent cuts to education spending as an unacceptable cost. “[R]eally, when you get down to it, the guys at Enron never would have done this. This is so blatant, so extreme,” Gates said of state governments’ accounting practices generally. “Is anyone paying attention to some of the things these guys do? They borrow money — they’re not supposed to, but they figure out a way — they make you pay more in withholding to help their cashflow out, they sell off the assets, they defer the payments, they sell off the revenues from tobacco.” Gates argued that government accounting practices should be more like private accounting. “The amount of IQ and good numeric analysis both inside Google and Microsoft and outside … really is quite phenomenal. Everybody has an opinion. There’s great feedback and the numbers are used to make the decision,” he said. “If you go over to the education spending and health care spending … you don’t have that type of involvement on a number that’s more important in terms of equity and in terms of learning.” The former Microsoft chief executive, now the co-chair of the Bill & Melinda Gates Foundation, said youth and education programs stand to lose the most as a result of the gaping holes in state budgets. “It really is the young versus the old to some degree. If you don’t solve what you’re doing in health care, you’re going to be deinvesting in the young,” Gates said. “With the kind of cuts we’re talking about, it will be far, far harder to get these incentives for excellence or to move over to use technology in the new way.” Remedying state budget crises will take better accounting, better tools, and more respect for leaders who step up to address these problems, Gates argued. “We need to reward politicians,” he said. “Whenever they say there are these long-term problems, we can’t say, ‘Oh, you’re the messenger with bad news? We just shot you.’” The bottom line, according to Gates: “We need to care about state budgets because they are critical for our kids and our future.” Get the latest updates from TED here .

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Brown & Brown, Inc. Names Vaughn Stoll as Director of Acquisitions

March 1, 2011

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – March 1, 2011) – J. Scott Penny, Chief Acquisitions Officer and Regional President of Brown & Brown, Inc. ( NYSE : BRO ), is pleased to announce that, effective immediately, Vaughn Stoll, CPA, currently Regional Financial Officer for the Company, has been selected to serve as the Company’s Director of Acquisitions. In his new position, Mr. Stoll will be responsible for assisting the Company’s senior leadership and profit center leaders to identify and evaluate acquisition opportunities for the Company and its subsidiaries throughout the United States. 

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Brown & Brown, Inc. Wholesale Brokerage Division Names Liz White as President of Peachtree Special Risk Brokers, LLC

February 15, 2011

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – February 15, 2011) – Brown & Brown, Inc. ( NYSE : BRO ), together with its wholly-owned subsidiary, Peachtree Special Risk Brokers, LLC (collectively, the “Company”), today announced that Elizabeth (“Liz”) White, CPCU, ASLI has been named President of Peachtree Special Risk Brokers, LLC.

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Quepasa Appoints Lars Fuhrken-Batista to Board of Directors

February 10, 2011

WEST PALM BEACH, FL–(Marketwire – February 10, 2011) – Quepasa Corporation ( NYSE Amex : QPSA ), creator and operator of Quepasa.com , the popular online social network and gaming platform for the Latino community, has appointed Lars Fuhrken-Batista as a director of the company.

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Brown & Brown, Inc. Names Four Regional Vice Presidents

February 7, 2011

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – February 7, 2011) – The Board of Directors of Brown & Brown, Inc. ( NYSE : BRO ) today announced that Eric E. Anderson, Anthony M. (“Tony”) Grippa, Thomas Keith (“Tommy”) Huval, and Richard A. (“Rich”) Knudson, Jr. have been elected Regional Vice Presidents of the Company. All of these individuals have served as Profit Center Leaders, and all will assume responsibility for the oversight of additional operations in the Company’s Retail Division.

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Brown & Brown, Inc. Elects Charlie Lydecker as Regional President

January 6, 2011

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – January 6, 2011) – The Board of Directors of Brown & Brown, Inc. ( NYSE : BRO ) today announced that Charles H. (“Charlie”) Lydecker, CPCU, CIC, AIM, has been elected as Regional President responsible for a number of the Company’s retail operations in the state of Florida and for certain of its retail operations in Arizona, New Jersey, New York, Texas and Virginia.

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Brown & Brown, Inc. Promotes Linda Downs to Regional President

January 6, 2011

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – January 6, 2011) – The Board of Directors of Brown & Brown, Inc. ( NYSE : BRO ) today announced that Linda S. Downs, CPCU, AAI, currently serving as Senior Executive Vice President of the Company, has been elected a Regional President. This promotion reflects Ms. Downs’ assumption of responsibility for the oversight of additional retail operations of the Company in Michigan, New Jersey, New York and Ohio .  She will continue to be responsible for certain of the Company’s retail operations in Delaware, Georgia, Kentucky, Illinois, Minnesota, Pennsylvania, South Carolina and Wisconsin, and for Halcyon Underwriters, Inc., a wholesale brokerage division operation in Orlando, Florida. Ms. Downs will also continue to oversee certain corporate matters, including the Company’s Benefits Department and its Leadership Schools.

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Brown & Brown, Inc. Names Scott Penny as Chief Acquisitions Officer

January 6, 2011

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – January 6, 2011) – The Board of Directors of Brown & Brown, Inc. ( NYSE : BRO ) today announced that J. Scott Penny, CIC, Regional President, has been named to the position of Chief Acquisitions Officer. Mr. Penny, who has served as one of the Company’s Regional Presidents since July 2010 and previously served as a Regional Executive Vice President since 2002, will continue to be responsible for oversight of retail profit center operations of certain of the Company’s subsidiaries in Connecticut, Illinois, Indiana, Kentucky, Massachusetts, New Hampshire, New Jersey, Pennsylvania and Washington. Mr. Penny will also continue to oversee the operations of Axiom Re, Inc. in Florida and North Carolina, and will assume responsibility for the oversight of Florida Intracoastal Underwriters, LLC. 

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Chip Conley: 2011: The Year of Curiosity

December 20, 2010

‘Tis the time of the year to reflect and project. I’m going to take my cue from the most famous management theorist of all time, Peter Drucker , who lived to the ripe old age of 95. This leadership guru incorporated two practices into his professional and personal life that I’ve decided to adopt in the new year. First off, Drucker made it a practice of spending two weeks every year reviewing his work, a habit he picked up from his Editor-in-Chief when he was working for a newspaper in Europe. He would set aside this time to “review my work during the preceding year, beginning with the things I did well but could or should have done better, down to the things I did poorly and the things I should have done but did not do.” Simple idea, yet few of us practice this kind of self-reflection. I’m off to the beach for the next few days and, while I won’t spend two weeks on this, I will spend a few days doing an inventory of what I learned this year and how I can apply it in 2011. Peter Drucker’s other practice — to adopt a new subject, completely unrelated to his work life, to study and master over the course of three years — is an unadulterated form of curiosity. When I spent some time with Mihaly Csikszentmihalyi , the author of the landmark book Flow this summer, he told me that the most important trait for 21st Century innovation isn’t creativity, but instead it’s curiosity. Curiosity — that blessed alchemy of wonder and awe — is a quality that we all had as a child and yet, with time, most of us found ourselves on a narrower and narrower path. For more than 60 years, Peter Drucker studied one subject at a time from Japanese art to Civil War history with the intent of mastering the subject. Curiosity may have killed the cat, but it helped Mr. Drucker keep a facile mind and a youthful spirit into his mid-90′s. So, starting in 2011, I am going to take one subject per year and devour it — both mentally and experientially. This first year I’m going to tackle the sublime and geological magic of natural hot springs. Why and how were these created? Why do some smell so different than others? What are the health benefits or risks associated with using them? And what’s the history of public bathing? And, as I will do in the future with subjects like Renaissance art or hang gliding, I plan to explore these subjects by literally diving in. So, in 2011, I will visit a different natural hot spring every month of the year. Iceland and Japan, here I come!! Some of you may think this is silly. How can this be related to business leadership? One of the most sage pieces of advice I ever heard went something like this: “Great managers have great answers. Great leaders have great questions.” At the heart of great leadership is a curious mind, heart, and spirit. Today, business serendipity and profound innovation will come from seeing the metaphors and natural laws in one part of life and applying them elsewhere with a vision that less curious minds would never have imagined. See you in the spring.

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Equity One To Pay $72M for 3 Long Beach Retail Centers

December 15, 2010

Equity One Inc. (NYSE: EQY) agreed to purchase three retail complexes totaling 272,997 square feet in Long Beach, CA, from long-time owner Bixby Land Co. for $72 million, or approximately $264 per square foot. The shopping complexes are at the intersection…

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David Callahan: Why the Rich Cheat: A Primer on Upper Class Criminality

December 3, 2010

A persistent puzzle about financial crimes is that they often involve fabulously rich executives or traders who risk everything to do even better. The rest of us can only wonder: Just what, exactly, are these people thinking? That question came up often during the insider trading scandals of the 1980s, which brought down two insanely rich Wall Street superstars, Ivan Boesky and Michael Milken. It arose when billionaire Martha Stewart faced charges — and eventually served prison time — for acting on inside information to avoid losses of a few hundred thousand dollars. And the question is sure to be asked often in the months ahead as federal authorities round up more well-heeled suspects on insider trading charges. This latest government crackdown on insider trading has already ensnared a number of very wealthy individuals. Most notable among them is the billionaire Raj Rajaratnam and the top IBM executive Robert Moffat. Joseph Skowron, the hedge fund manager involved in the FrontPoint case — but not charged with any crime — lived in 10,000-square-foot mansion in Greenwich, Connecticut and, according to news reports, “amassed a collection of luxury cars that has included a blue Ferrari 458 and a black Porsche Cayenne.” And just the other day, authorities arrested wealthy San Francisco tax attorney Arnold McClellan , a partner at Deloitte Tax LLP, on charges of insider trading. His wife Annabel was also arrested. The McClellans lived the good life in San Francisco, with a 6,000-square-foot home in Pacific Heights. What’s up with these people, and so many others like them? Why would they risk so much when they already have everything? Well, as I argued in my book The Cheating Culture , a number of converging factors are usually at work when otherwise law-abiding people with lots of money turn into criminals. One is a persistent focus among those who are wealthy and competitive on their relative, rather than their absolute, well-being. A 6,000-square-foot house may sound pretty big to most of us, but it may not feel that way if those in your peer group own 10,000-square-foot homes and vacation places in Hawaii to boot. Likewise, a hedge fund guy who makes $10 million a year would seem to be doing amazingly well — except when he compares himself to the trader down the street in Greenwich who is making $100 million. Raj Rajaratnam was worth $1.5 billion in 2009 — big money, but not compared to George Soros who was worth $13 billion. As the economist Robert Frank points out in his book, Luxury Fever , the push to improve one’s relative position is actually quite rational and may be hardwired in us. If you’re the person with the smallest house in the neighborhood, even though you live in a big house, you may look less like you’re going places and get fewer opportunities thrown your way. If you’re the person wearing the $500 suit, you may lose out to the guy wearing the $1,000 suit, all other things being equal. Of course, various Wall Steeters have put the point about relative position in simpler terms over the decades: Money is how people keep score on Wall Street. If you want to be a winner, you need to make more than the next person — regardless of how much you make already. That imperative can lead people to do some pretty stupid, and illegal, things. Even small amounts of money, such as in Martha Stewart’s case, can seem significant because highly successful people often believe that they are winners because they fight relentlessly to score each and every point. Second, criminal behavior can be rooted in the ever rising bar of material expectations and the financial pressures that result. If you travel in circles where it is normal to have a spacious apartment on the Upper East Side and a place in the Hamptons, you’re facing a heavy lift to achieve and sustain that standard of living yourself. In this situation, it does make a difference whether you make $5 million a year or $15 million. Throw in a private jet and a place in Aspen as part of the norm, as well as philanthropic commitments, and you’re not going to be in the game without an income that is reliably in the mid-eight figures. It is easy for anyone to get financially over-extended, and this happens to the rich all the time. There is a long history of wealthy people who have crashed and burned in scandal because they turned to criminal actions to sustain an unaffordable lifestyle. For a particularly egregious case, recall the suicide a few years back of Jeffrey Silverman , the Upper East Side financier — with homes in Bridgehampton and Palm Beach — who stole from his own company to make ends meet. He killed himself as the net began to close. New York magazine called him “The Man Who Had Everything.” Unfortunately, he couldn’t afford everything. Finally, there is a more pedestrian reason why the rich cheat and break the law. Because they can — or think they can. When you’re part of a winning class which basically owns our political system, it can be easy to think that you’re above the rules. Or that you can avoid punishment when you break the rules by pushing the right buttons. Of course, this belief in impunity is largely correct. Most financial crimes do not result in punishment. The rich know the odds favor them when they cheat and the rewards can be vast. Until that calculus changes, big financial crimes will keep on coming.

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Forum for Corporate Directors Names Four New Members to Its Board of Directors

November 23, 2010

NEWPORT BEACH, CA–(Marketwire – November 22, 2010) – Forum for Corporate Directors (FCD) has recently named four new members to its board of directors including Christopher Cox, Steven Plochocki, Murray E. Rudin and Robert L. Tirva. These individuals join the other FCD board members who are directors and senior executive officers of Orange County companies as well as leaders from several major legal and accounting firms which support these companies and their boards.

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Nelson Davis: What Small Business Owners Really Want

November 20, 2010

We are in that hazy netherworld that seems to sneak up on us near the end of every year. We wonder where the time went, what the New Year will hold and how we can take our enterprise to what we euphemistically call the next level. This year there is an extra bit of haze in the picture because the mid-term elections have sent a lot of rookies to various legislatures and embracing small business may not be their #1 priority. This is a good time to share some thoughts on what the business sector and small business in particular really want and need. I think that the biggest thing small business owners want from all levels of government is simply respect. With over 60% of all jobs created in the country coming from the small business community, won’t politicians and others simply say “nice job” to the men and women who hustle and risk every day to build and grow various enterprises. It is my contention that small business gets only lip service in the corridors of congress because the heavy hitter lobbyists represent other interests. That respect has to begin at the local level. Last week I received a nice note from Bob Foster, the Mayor of Long Beach California regarding a pilot program they’ve been working on for greater small business development. He and his council want more city contracts to go to small and even very small businesses. He says this will help generate job growth and sales tax revenue, and ensure that their tax dollars are spent locally. Are your local politicians building real bridges to entrepreneurs? If so, please let me know about it and be sure to thank them for it. The next thing the owner of a growing business wants to have is a clear set of rules regarding taxes, and health care costs that will hold steady for at least a few years. The top layer of clouds blotting out the sun for business is that a massive expansion of government has created an equivalent amount of uncertainty for the private sector. Uncertainty means that money goes to the mattress and many expansive thoughts are put away for a while. Big business in America is sitting on about $1.8 trillion in cash, waiting for a sign that the federal government won’t do a snatch & grab on their resources. Carl Schramm, head of the Kauffman Foundation in Kansas City has a clear idea about how the country can build a path to greater economic growth. In a Forbes Magazine interview he said “The single most important contributor to a nation’s economic growth is the number of startups that grow to a billion dollars in revenue within twenty years.” He went on to say that in the U.S. we need to see 75 to 125 of those billion dollar babies every year to feed a post WWII rate of growth. The owners of growing businesses need care, feeding and specific education on how to get where they want to go. From our twenty years of producing television stories of small business owners for Making It! we’ve seen about five (out of 1000) rise to the billion bucks level. They were all headed by hungry and even driven people who probably consume big dreams for breakfast! One of the exciting aspects of this for me is that this superstar level of entrepreneur comes from all known ethnicities and genders! Most business owners simply want to make an independent living that can take care of their families and help the kids through college. Many don’t have the iron constitution, discipline and raw ambition that it takes to go from very small to large, but that isn’t what they want. I know that you can find your own comfort level of enterprise building and it may have three, six or nine zeroes after the first three digits. Business owners don’t want to feel that they are being treated as pawns in some sort of class warfare. President Obama and his administration have acquired a reputation as being anti-business. A lot of the energy of the Tea Party seems to have come from small business owners who feel that Washington simply doesn’t understand them or their place in reviving the American economy. Politicians sometimes inject haves versus have-nots notes that imply business owners have some sort of unfair advantage. Some Wall Street barons may indeed have that advantage, but Main Street America certainly does not. Notice that I didn’t put easier loans or money in general on the wish list. Money has never been cheaper and it seems that loans for going enterprises are available. I believe that what small business owners really want is very much what all humans crave. That would be understanding, appreciation, encouragement and respect. Those ingredients are the food of dreams and no country can be great without entrepreneurs who harbor big dreams.

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Brown & Brown, Inc. Names Paul J. Zimmerman to Acquisitions Team

November 19, 2010

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – November 19, 2010) – Thomas E. Riley, CPA, CPCU, CMA, CIC, Regional President and Chief Acquisitions Officer of Brown & Brown, Inc. ( NYSE : BRO ), today announced that Paul J. Zimmerman, CPCU, previously of Travelers Insurance Company, has been named Director of Acquisitions and will become part of the Company’s Acquisitions Team. Effective immediately, Mr. Zimmerman will be responsible for assisting with the identification of acquisition opportunities for the Company and its subsidiaries throughout the United States. 

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Bernie Madoff Auction Bidding Reaches Fever Pitch

November 14, 2010

NEW YORK — Anyone wanting to walk in the shoes of fallen financier Bernard Madoff was in luck Saturday: Thousands of belongings from his New York City penthouse, including his used shoes, went on the auction block. An anonymous bidder paid the highest price of the auction – $550,000 – for a 10.5-carat diamond engagement ring that belonged to Madoff’s wife, Ruth. The winning bid topped the $300,000 minimum pre-sale estimate. Ruth Madoff’s French diamond earrings fetched the next highest price. Valued at $100,000 to $137,500, they went for $135,000 to an undisclosed buyer. The man who became a symbol of greed and deceit on Wall Street also had a lavish collection of watches. One of his vintage steel Rolex “Moon Phase” watches sold for $67,500, topping a $60,000 minimum estimate. The sale started Saturday morning at the Sheraton New York Hotel & Towers, with an auctioneer from Texas-based Gaston & Sheehan rattling off lots at a tongue-twisting speed all day and into the evening. Buyers responded at fever pitch. They raised their hands to signal a bid – accompanied by bloodcurdling shouts from bid-spotters marking a winning price. Their swaggering style – as if herding bulls instead of selling Madoff’s artsy ones – seemed appropriate for an auction of the belongings of a Wall Street trader who cherished the winning bull in every form. He bought statues and paintings of them and even named his boats “Bull,” “Sitting Bull” and “Little Bull.” A leather bull foot stool – including a tail that had broken off – sold for $3,300, against a pre-sale estimate of $250 to $360. While many of the more than 400 lots included luxury items, the Madoffs’ penthouse did have touches of culture. A 1917 Steinway grand piano from their living room went for $42,000 – six times the minimum estimate of $7,000. The buyer was an 81-year-old Long Island real estate executive. “I’ve got loads of pianos, but this one has history – it’ll make an interesting conversation piece,” said John Rodger, an amateur pianist who will keep the Steinway in his home in East Islip. An oil painting by the late American artist Frederick Carl Frieseke sold for $47,500, against a pre-sale estimate of $20,000 to $45,000. The Manhattan sale is the last auction in New York of Madoff belongings. A third and final auction is to be held in Florida to sell off items from a Palm Beach home that went for more than $5.5 million last month. Madoff was arrested two years ago and quickly admitted his scheme. Investigators said he used billions of dollars in cash from new investors to pay old ones, cheating charities, celebrities and institutional investors. U.S. marshals seized everything in the Madoffs’ Manhattan apartment and Long Island beach house: worn socks, new monogrammed boxer shorts, Italian velveteen slippers bearing the initials “BLM” in gold embroidery. All of it was being sold – with morbid fascination for mundane articles from the couple’s daily life that also were on the block, from bed linens, clothing, cookware and luggage to intimate items like cuticle scissors and bottles of shampoo. Valued at $75 to $110, the lot with the slippers included Ruth Madoff’s monogrammed shirt. A young man paid $6,000 for all of it, saying he’ll never be able to wear the slippers because his shoe size is 13; Madoff wore a size 8. He declined to give his name. For $1,700, 11 pairs of boxers came with a pair of silk Armani pants and one of Prada pantyhose, along with dozens of pairs of used socks, in a lot estimated to be worth $960 to $1,370. Besides bulls and fine watches, Madoff loved shoes. He owned about 250 pairs, many never worn – made in Italy, France, Belgium and England. Ten pairs of Madoff’s used designer shoes sold for $900, against a minimum of $250. The disgraced 72-year-old trader is behind bars for life in a North Carolina prison, and his wife was ordered to leave their homes. Despite their vast wealth, the Madoffs didn’t seem to make much room for house guests. The auction included their early 19th-century bed with fabric hangings and “intense sun fading,” at a pre-auction estimate of $8,000 to $11,400. “Just $500?” the incredulous auctioneer, Bob Sheehan, said of the first bid, adding, “This was the only bed in the whole house, I’m not kidding! $500? My God, it’s not a pullout.” It sold for $2,250. Sheehan conducted the auction for the U.S. Marshals Service, which said it had grossed more than $2 million from the auction, far above the pre-sale goal of at least $1.2 million. Proceeds will go to more than 3,000 clients Madoff swindled in a multibillion-dollar Ponzi scheme. “All 489 lots of ill-gotten gains sold today and the proceeds will go towards something good for a change,” said Deputy U.S. Marshal Roland Ubaldo. Last year’s New York auction of Madoff’s property raised $1 million. The Manhattan penthouse went for $8 million, and his yacht and boats also were sold.

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Sara Eisenstat Joins GCube Insurance Services, Inc. as Vice President

November 9, 2010

NEWPORT BEACH, CA–(Marketwire – November 9, 2010) –  GCube Insurance Services, Inc., the leading global insurer of renewable energy technologies, announced today that Sara Eisenstat has joined the company as Vice President.

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Brown & Brown, Inc. Announces the Election of Timothy R.M. Main to Its Board of Directors

October 19, 2010

DAYTONA BEACH, FL and TAMPA, FL–(Marketwire – October 19, 2010) – Brown & Brown, Inc. ( NYSE : BRO ), today announced the election of Timothy R.M. Main, Managing Director of JP Morgan, a global investment bank, to Brown & Brown, Inc.’s Board of Directors.

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Raymond Chin Named CEO and Chairman of Sunrise Consulting Group

October 18, 2010

NEWPORT BEACH, CA–(Marketwire – October 18, 2010) –  Sunrise Consulting Group, Inc. ( PINKSHEETS : SNRS ) announced today that Raymond Chin has been named CEO and Chairman of the Board effective immediately. Mr. Chin replaces Alan Rothman, who has resigned from all positions with the company. Mr. Chin, a seasoned entrepreneur and executive, has worked with the Company since 2007, including a previous stint as CEO and Chairman, and brings to his new position both an intimate knowledge of Sunrise itself and a wide range of experience in international business and marketing. 

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BP Spil Compensation Fund Slowed By Inflated Claims, Fraud, Administrator Says

October 5, 2010

ORANGE BEACH, Ala. — In the rush to get compensation from BP after its massive oil spill, the $20 billion fund that the company created has been inundated with questionable documentation, inflated claims and in some cases, outright fraud — all slowing down the process for legitimate claims, the administrator of the program says. Claims have been bogged down by the sheer volume of requests for money — nearly 98,000 — as livelihoods have crumbled since the April 20 rig explosion that killed 11 workers and spewed more than 200 million gallons of oil. Confusion and frustration have become the only constants for desperate fishermen and business owners. Sales manager Jeff Silvers was shocked to learn that his building supplies shop just a half mile from the Alabama coast was not considered to be affected by the oil that sullied beaches and marshes, sent tourists packing and kept fishing boats idle at harbors. Swift Supply, he said, lost a huge chunk of revenue because customers canceled plans to build docks, do home improvements and complete construction on new houses with the uncertainty that followed the explosion and oil gusher. He applied for compensation from the Gulf Coast Claims Facility, which is doling out BP’s money to oil spill victims, but initially got nothing. “We were told we weren’t in the geographic area of the spill,” Silvers said. Just last week, however, he got a check for everything he asked for. It came as attorney Kenneth Feinberg, who is administering the fund, decided that proximity to affected areas will no longer play a role in compensation approval. It’s the latest in a string of changes to the shifting process that has dragged on for weeks, with promises of generosity and fairness, but delivery of little more than apologies to many. “I’m very happy, but there’s still a lot of businesses that haven’t been paid,” Silver said. Just as hope was fading that the troubled program could be fixed, Feinberg appears to be putting it into overdrive, re-evaluating previously denied claims and reaching out to some people who believe they were shortchanged. In just the last week, denied claims dropped from 528 to 116, as checks were cut and mailed to businesses that were initially told they would get no help. In an interview last week, Feinberg promised that kinks would be worked out and more generous payments would come. In addition to those still waiting for money, The Associated Press interviewed dozens of people who say they have received small fractions of the compensation they requested. Beach wedding planner Sheryl Lindsay said she filed a claim for about $240,000 for lost revenue from July through December because of cancellations. She got a check from the BP claims center for $7,700. Lindsay closed her coastal Alabama office and will soon file for bankruptcy. “We don’t have any business left,” Lindsay said. A final settlement will be offered to Gulf residents in the coming months which they can accept or deny and instead choose to sue BP, but Lindsay says she needs money now. She recently got word from the facility that her claim would be reviewed for possible additional payments. To date, the fund has paid out nearly $1 billion to about 50,000 claimants. However, claims officials would not provide AP with the total amount actually requested by those claimants. A Feinberg spokeswoman said the number is “irrelevant,” given the volume of claims filed with no proof of losses, inflated requests and fraudulent ones. Feinberg notes that complaints about small payouts have “not fallen on deaf ears,” but that the amount of money being sought has no correlation to the size of the check cut. “People can put down on a claims form all sorts of numbers,” he said. He referred to a fisherman’s claim for $10 million in lost revenues “on what was obviously a legitimate claim of a few thousand dollars.” “We have thousands of claims where there is no documentation, none,” Feinberg said. Of the nearly 98,000 claims filed as of Oct. 2, about 35,000 require additional documentation and remain on hold. Even the Justice Department weighed in, with a Sept. 17 letter to Feinberg expressing concern over the slow pace of payments. “The Deepwater Horizon Oil Spill has disrupted the lives of thousands upon thousands of individuals, often cutting off the income on which they depend,” the letter read. “Many of these individuals and businesses simply do not have the resources to get by while they await processing.” But even as some are getting a second look and possibly additional checks, others simply stew. Fishing guide Mike Garey got just $21,000 in response to his request for $70,000 in losses. “And we have no recourse whatsoever,” Garey said. He is also concerned about accepting any final settlement and giving up his right to sue BP. “The phones aren’t ringing. The e-mails aren’t coming in,” he said. “Where will we be in a year from now? Nobody knows the answer to that so how can we accept a final payment?” Feinberg, who previously oversaw claims for 9/11 victims, promises things will get better, but says the entire process will take time to get right. He said potentially fraudulent claims are holding up the process, and are under review before being forwarded to the Justice Department for criminal investigation. “We have scores of applications for financial aid that appear to be fraudulent,” Feinberg said. “Our resources are diverted, and we become skeptical and concerned. “At the beginning, it’s always rough,” he added. “Hopefully, by the end of this program, people will feel that the fund treated them fairly.” Feinberg declined to say how much he is being paid by BP, only that it is a flat fee “totally unrelated” to the size of the fund and amounts paid.

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Gulf Coast Tourism Hopes For Boost As Feds Allow Fishing Of Red Snapper, Normally Off Limits In Fall

September 22, 2010

ORANGE BEACH, Ala. — The Gulf Coast’s tourism industry is betting on red snapper to survive the winter. In an unusual move, the federal government is allowing fall fishing of the popular schooling snapper, a favorite for anglers who missed nearly an entire summer of saltwater fishing because of the BP oil spill. Enthusiasts typically flock to the Gulf to catch red snapper during the summer, and the fish is off limits later in the year. But the National Oceanic and Atmospheric Administration announced Tuesday it was allowing snapper fishing over eight three-day weekends beginning Oct. 1. In coastal areas hardest-hit by the oil, the special season is more about tourism dollars than seafood. Tackle shops, restaurants, hotels and stores that suffered steep declines in revenue because of the Gulf of Mexico gusher are hoping for a big boost headed into what is historically the slowest season of the year. “It’s not going to save the summer, but it’s certainly going to help put cash in the drawers and get people through the winter,” said Mike Foster, a spokesman for the Alabama Gulf Coast Convention and Visitors Bureau. Danny Pitalo’s small tackle shop in Biloxi, Miss., depends heavily on coastal visitors for business, and he said the fall snapper season could help keep him going. “It will be a big help for us,” said Pitalo, whose shop is still operating out of a trailer because of damage from Hurricane Katrina five years ago. “Our tackle business is gone, our tournaments are gone. The charter season is pretty much gone.” Red snapper seasons in the Gulf are based on weight quotas. This year’s limit was about 6.9 million pounds, with commercial boats allowed to catch 51 percent and recreational boats allowed to harvest the rest. The regular season opened June 1, and plenty of snapper were caught off the coasts of Florida and Texas before it ended in late July. But fishery experts estimate only one-third of the quota set aside for recreational anglers was harvested since so much of the Gulf was closed because of the oil spill. Peter Hood, a federal fishery biologist, said estimates show about two-thirds of the recreational limit is still waiting to be caught. That means an estimated 2.2 million pounds of red snapper are available this fall in areas with pent-up demand like Alabama, Mississippi and Louisiana. Repeated testing hasn’t shown any spill-related contamination in fish taken from areas that have been reopened for angling, Hood said, and experts don’t expect any problems with red snapper. Johnny Greene, a charter captain based at Orange Beach Marina on the Alabama coast, said some boat operators aren’t interested in the fall snapper season because they made so much money off a BP program that paid crews thousands of dollars each week to scout for oil in Gulf waters. “(And) some people are so far behind they say there’s nothing that can help them,” he said. “Personally, I think it’s a really good thing.” Tourist revenues were down as much as 50 percent on the Alabama coast because of the oil spill, and that contributed to a 10 percent decline in tourism statewide, said Lee Sentell, director of the Alabama Tourism Department. The state spent about $300,000 on promotions for the beach before Labor Day, and it has a TV commercial geared toward fishing that will likely air this fall in conjunction with the red snapper season, he said. Sen. Mary Landrieu, D-La., said the red snapper season was a commonsense step toward bringing business back to charter captains. Anglers are allowed to catch a maximum of two red snapper a day with a minimum length of 16 inches on Fridays, Saturday and Sundays until Nov. 22, when the season closes.

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Ellen Galinsky: We Need Play-cations, Not Just Vacations

September 6, 2010

It’s Labor Day Weekend–the last weekend of summer before we plunge into fall. Hurricane Earl swept up the East Coast, missing us, but bringing cold biting winds that, even amid the bright sunlight, seemed a signal that summer–vacation season–is ebbing and it is back to work we go. That is, if we ever left work. Work, as we all know, can be all-the-time, every-place. A special study on overwork by the Families and Work Institute (FWI) reveals that that one in three of all U.S. employees can be considered chronically overworked. I know the facts about vacations from the FWI’s nationally representative study, the 2008 National Study of the Changing Workforce, and they tell an interesting story. Fact 1: Not all us have access to a paid vacation: 79% of American employees receive paid vacation time from their employers. Fact 2: On average, we are entitled to a little more than two weeks off (16 paid days). Half of the U.S. workforce receives fewer than 15 days. Fact 3: Even when we are entitled to vacations, not everyone takes all of the days he or she has: 39% of us don’t use our full vacations. Americans use an average of 13.5 days of vacation per year. Fact 4: The longest amount of time we take off at one time averages nine days. One in four of us (24%) takes five days or fewer for his or her longest vacation, while 23% take more than 13 days. Fact 5: Taking a longer vacation (13 consecutive days or more, including weekends or holidays) bodes well for our health. Those employees who take longer vacations are less likely to have minor health problems on a regular basis, depression, sleep problems or to feel stressed. These are the facts, but they don’t tell us much about what happens during vacations. Many of us work while on vacations. It seemed almost standard practice this summer to receive a bounce-message to an email I had sent that read: “I am on vacation and don’t have access to email and voice mail,” only to receive a response from that person within a few hours. Still others of us take work on vacations or plan vacations that can be viewed as an extension of our work. So over this past weekend–a busman’s holiday for me for sure–I asked a number of people: “what makes a vacation renew and re-energize you?” Here are some of their responses: They take us away from our usual lives. I know from my research on children for my book, Mind in the Making, how energizing having new experiences can be for children and adults–they heighten our senses; they stimulate our curiosity; and they make us want to explore. Even when that new place is a familiar place, being away from our daily routines is refreshing. For one woman I spoke with, it was not having to cook, do the dishes, go to work, and go to the gym: “it was permission to have fun.” They give us time to think and see things in new ways. A man took a vacation that was a workshop related to his work, but found that he had the time to learn new things so it felt differently than a similar workshop might have felt during the year. We have freedom to go with the flow: A woman who planned her vacation carefully for her husband and children loved the opportunity to change plans at the last minute and to follow their interests. They are pressure-free or at least pressure-different. Obviously, vacations can have their own pressures–the kids who say “Are we there yet;” the plans to go camping or to the beach that are thwarted by a storm; the schedule of activities that can seem rigid; or the car that breaks down and has to be towed. I have had all of these experiences, but it is a different kind of pressure than the daily pressures we face. One man talked about working very hard on his vacation, but still he felt free of the expectations he usually puts on himself or that others put on him. When my children were little, they always called vacations, “play-cations.” As I was listening to the people talk about what makes vacations renew them, I flashed back to my children’s word. Yes, the best vacations are like the best play of children–they give us an opportunity to explore, to have fun, to learn, to go with the flow, and to be in moment. So we need play-cations, not just vacations! An addendum: As I was writing this, I got an email from a friend. She was in an airport en route home from her vacation, which she said was beautiful. Then she wrote, “I really dread re-entering my life.” Her challenge is the challenge of so many of us. We need to find ways of bringing play-cations back from our vacations and keeping them–to whatever extent we can–in our regular lives at work and at home.

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Gulf Oil Spill: New Guidelines Could Rule Out Many Oil Claims

August 21, 2010

MIAMI — A flower shop in Florida that saw a drop-off in weddings this summer is probably out of luck. So is a restaurant in Idaho that had to switch seafood suppliers. A hardware store on the Mississippi coast may be left out, too. The latest guidelines for BP’s $20 billion victims compensation fund say the nearer you are geographically to the oil spill and the more closely you depend on the Gulf of Mexico’s natural resources, the better chance you have of getting a share of the money. Also, a second set of rules expected this fall will require that businesses and individuals seeking compensation for long-term losses give up their right to sue BP and other spill-related companies – something that could save the oil giant billions. The new rules for the claims process were released Friday by Washington lawyer Kenneth Feinberg, who was picked by President Barack Obama to run the fund and previously oversaw claims for 9/11 victims. Beginning Monday, the claims will be handled by Feinberg rather than BP, which is still footing the entire $20 billion bill. Who gets paid and who doesn’t will depend largely on how much proof there is that losses were caused by the spill and not by something else, such as the recession. Feinberg’s guidelines say key factors include a claimant’s geographic proximity to the disaster and how much the business or property is linked to “injured natural resources.” Feinberg elaborated on his reasoning during town meetings this week in Louisiana. “How close are you to the beach? To the Gulf? BP got claims from restaurants in Idaho. Go figure,” he said. “How close are you? That’s a major factor. How dependent are you, as an individual or a business, on the resources of the Gulf?” That worries business owners like Susan Mitchell, who runs a flower shop about a mile from Pensacola Beach, Fla., where tarballs from the spill washed up. She said her business was down about $4,000 this year in July from the year before. “But it is hard to prove exactly why that is and everyone keeps telling us we have to prove that it was because of the oil,” she said. “We usually have beach weddings all summer. We deliver to hotels with people having birthday parties and celebrations on the beach.” Jeffrey Breit, a Virginia-based lawyer who represents more than 600 Gulf Coast fishermen, said the geographic limitations will certainly cut out many deserving claimants. “I think it’s unfair to draw arbitrary geographic lines when it is clear that many businesses rely on the natural resources of the Gulf for their livelihoods,” Breit said. The new rules govern emergency claims that can be made between Monday and Nov. 23 at Gulf Coast claims offices, by mail or through the Internet. Feinberg said his goal is to issue emergency checks within 24 hours for individuals and seven days for businesses. Many people have complained about the sluggish BP process. The attorneys general of Alabama and Florida sent Feinberg letters objecting to many of the new rules. Florida’s Bill McCollum said people will face a much heavier burden of proof trying to show the spill caused their losses. “The current process appears to be even less generous to Floridians than the BP process,” McCollum wrote. “Such an outcome is completely unacceptable.” Those seeking emergency payments will not have to give up their right to sue BP and other companies. But the rules for final, long-term settlements will include a waiver of that right. That drew protests Friday from a leading trial lawyers group, the American Association for Justice, which said the rule could force claimants to decide whether to accept a BP payment or go to court before the full extent of the damage is known. For example, attorneys said, there could be health effects that take years to develop, or environmental damage that might not surface for years. “BP is trying to cut off damages. They realize that small payments will be grabbed by some, and then in the future they will have no access to justice,” said Jere Beasley, a Montgomery, Ala., lawyer who is representing oil spill clients. “Which is sad, but true.” But many people might choose to file a claim because lawsuits can drag on for years and because attorneys often take one-third of any damages as their fee. Already more than 300 lawsuits have been filed against BP and other companies involved in the disaster, which began April 20 with an explosion aboard an offshore oil rig that killed 11 workers. At Diamondhead, Miss., along the Gulf Coast, Don Farrar, owner of Diamond Ace Hardware and Diamondhead Florist, said he has received two checks from BP for thousands of dollars but is worried what will happen when the claims process changes hands. He said the spill’s economic toll has reached far beyond fishermen and tourist businesses. “I have a hardware store and a florist. Even my florist is down,” he said. “When a fishermen is not making money, he’s not going to be buying a house, he’s not going to be painting his house, and he’s not going to be buying paint from me.” ____ Associated Press writers Melissa Nelson in Pensacola, Fla., Mary Foster and Kevin McGill in New Orleans, Holbrook Mohr in Jackson, Miss., and Jay Reeves in Birmingham, Ala., contributed to this story. ____ Online: Gulf Coast Claims Facility: (goes live Aug. 23) http://www.gulfcoastclaimsfacility.com

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Oil Spill Claims: New Guidelines Could Rule Out Many Gulf Victims

August 21, 2010

MIAMI (Associated Press) – A flower shop in Florida that saw a drop-off in weddings this summer is probably out of luck. So is a restaurant in Idaho that had to switch seafood suppliers. A hardware store on the Mississippi coast may be left out, too. The latest guidelines for BP’s $20 billion victims compensation fund say the nearer you are geographically to the oil spill and the more closely you depend on the Gulf of Mexico’s natural resources, the better chance you have of getting a share of the money. Also, a second set of rules expected this fall will require that businesses and individuals seeking compensation for long-term losses give up their right to sue BP and other spill-related companies — something that could save the oil giant billions. The new rules for the claims process were released Friday by Washington lawyer Kenneth Feinberg, who was picked by President Barack Obama to run the fund and previously oversaw claims for 9/11 victims. Beginning Monday, the claims will be handled by Feinberg rather than BP, which is still footing the entire $20 billion bill. Who gets paid and who doesn’t will depend largely on how much proof there is that losses were caused by the spill and not by something else, such as the recession. Feinberg’s guidelines say key factors include a claimant’s geographic proximity to the disaster and how much the business or property is linked to “injured natural resources.” Feinberg elaborated on his reasoning during town meetings this week in Louisiana. “How close are you to the beach? To the Gulf? BP got claims from restaurants in Idaho. Go figure,” he said. “How close are you? That’s a major factor. How dependent are you, as an individual or a business, on the resources of the Gulf?” That worries business owners like Susan Mitchell, who runs a flower shop about a mile from Pensacola Beach, Fla., where tarballs from the spill washed up. She said her business was down about $4,000 this year in July from the year before. “But it is hard to prove exactly why that is and everyone keeps telling us we have to prove that it was because of the oil,” she said. “We usually have beach weddings all summer. We deliver to hotels with people having birthday parties and celebrations on the beach.” Jeffrey Breit, a Virginia-based lawyer who represents more than 600 Gulf Coast fishermen, said the geographic limitations will certainly cut out many deserving claimants. “I think it’s unfair to draw arbitrary geographic lines when it is clear that many businesses rely on the natural resources of the Gulf for their livelihoods,” Breit said. The new rules govern emergency claims that can be made between Monday and Nov. 23 at Gulf Coast claims offices, by mail or through the Internet. Feinberg said his goal is to issue emergency checks within 24 hours for individuals and seven days for businesses. Many people have complained about the sluggish BP process. The attorneys general of Alabama and Florida sent Feinberg letters objecting to many of the new rules. Florida’s Bill McCollum said people will face a much heavier burden of proof trying to show the spill caused their losses. “The current process appears to be even less generous to Floridians than the BP process,” McCollum wrote. “Such an outcome is completely unacceptable.” Those seeking emergency payments will not have to give up their right to sue BP and other companies. But the rules for final, long-term settlements will include a waiver of that right. That drew protests Friday from a leading trial lawyers group, the American Association for Justice, which said the rule could force claimants to decide whether to accept a BP payment or go to court before the full extent of the damage is known. For example, attorneys said, there could be health effects that take years to develop, or environmental damage that might not surface for years. “BP is trying to cut off damages. They realize that small payments will be grabbed by some, and then in the future they will have no access to justice,” said Jere Beasley, a Montgomery, Ala., lawyer who is representing oil spill clients. “Which is sad, but true.” But many people might choose to file a claim because lawsuits can drag on for years and because attorneys often take one-third of any damages as their fee. Already more than 300 lawsuits have been filed against BP and other companies involved in the disaster, which began April 20 with an explosion aboard an offshore oil rig that killed 11 workers. At Diamondhead, Miss., along the Gulf Coast, Don Farrar, owner of Diamond Ace Hardware and Diamondhead Florist, said he has received two checks from BP for thousands of dollars but is worried what will happen when the claims process changes hands. He said the spill’s economic toll has reached far beyond fishermen and tourist businesses. “I have a hardware store and a florist. Even my florist is down,” he said. “When a fishermen is not making money, he’s not going to be buying a house, he’s not going to be painting his house, and he’s not going to be buying paint from me.”

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Danny Wong: Lessons Learned from Managing a Dozen Interns

August 20, 2010

It was easy to hire them. It was summer time, and there were plenty of kids looking for unpaid, part-time internships. They could work a few hours a day, a few times a week, and even get school credit. The rest of the time, they could hang out with friends, go to the beach, stay at home and relax, or get another job just for some spending money. During the summer of 2009, and into the fall, I saw at least two hundred resumes , and Blank Label ended up hiring upwards to a dozen interns to help us build our men’s dress shirt venture. It was a genius idea. We wouldn’t have to pay them (exploitative? yes, but we gave school credit), only manage them, and the theory was, they would work 10-12 hours a week, with 3-4 hours of management, so on the low end, they would be contributing to 6 extra hours of work, 9 extra hours on the high end, and we could scale this by hiring more interns to fulfill more tasks each week so we wouldn’t have to cough up equity or cash for more support. But the cruel reality was, 10-12 hours really meant 8-10. Also, my time managing them meant I wasn’t being productive, so if I managed them for 4 hours a week, on the low end, they would only have 4 hours of work to contribute, but those 4 hours are negligible because those are the 4 hours I lost on my end managing them, so the numbers clearly didn’t work out to our benefit. In most cases, more time and energy was spent managing the interns than we had output from them. We were young and foolish. We thought that this was the smarter thing to do. Our interns didn’t work out for several reasons: 1) They were unmotivated . Without equity or pay, they couldn’t really be sold on the business and they weren’t engaged enough to help us make big things happen. 2) They were selfish . Perhaps this is a strong word, but they just wanted to pick our brains about running a business and learn from us when all we wanted was for them to fulfill a role. 3) We were selfish . We didn’t really want to train them. Of course, we wanted a fair exchange and what we thought was fair was us providing resources and means to execute great ideas and big projects for a real-world business, without us having to micro-manage them, but they needed more guidance, more support, which we weren’t available to offer because we had a lot on our plates already. 4) They were busy . Part-time interns should have all the time in the world, right? Wrong. When they know they are only committed for a few hours each week, they tend to watch the clock and save work-related matters for when they are working. There was no extra time to manage big projects, no extra time to really learn a lot and be able to contribute a lot. They were preoccupied with their personal and social lives. In the fall, the interns were too busy with school and hanging out with friends to be bothered with more work from us. 5) They couldn’t execute . While they had great ideas which they generously shared, we brought on interns with the intention that they would be responsible for themselves, so when they had a great idea, we allocated the proper resources to them to make something happen, but they weren’t able to properly execute. The ability to execute is one of the most important skills in anyone you hire, especially in startups. Ideas mean nothing if you can’t execute them, so we ended up with this really nice list of ideas, which was just added to our even longer list of things-to-do. I’ve done internships before. I’ve known people who have done internships too. To be honest, I don’t know how most companies can justify hosting interns when hosting interns is taxing on the mental energy and the time of the intern managers. Paid internships are an anomaly to me because, from my experiences, interns cost companies a good amount of money and those companies rarely see a positive return. After managing about a dozen interns, we’ve realized that we were not too successful in recruiting great candidates for part-time roles. Instead, we have decided to really only recruit A+ players who can make a decent time commitment to our business, and would be paid salary, stock options or a combination of both. This way, we only get people who are invested in us, rather than us just being invested in them because we crossed our fingers hoping our interns would work out, when we really needed them and they didn’t quite need us. When it comes to hiring, it’s important for both parties to have vested interest in each other, because an imbalance of interest can put the relationship in an awkward position. While it was fun to manage a dozen interns and it was a great learning experience to do so, we won’t be hiring interns for a while, although we occasionally entertain the thought. Danny Wong is the co-founder of Blank Label, a co-creation startup specializing in dress shirts for men . Blank Label makes DIY dress shirts, slim fit dress shirts and fitted dress shirts .

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Fortune’s Stanley Bing: How Wall Street Is Screwing up the Recovery

August 19, 2010

I had to laugh the other day at the way the market is behaving, but it wasn’t a good laugh. It was one of those dark laughs, full of phlegm and bile, a laugh that dies in the back of your throat, turning before it fades away entirely into a short, sharp growl. One day up. Two days up. Then down, down 150 or 200 points. It’s like psychoanalysis. Two steps forward. One step back. Fear and greed. Greed and fear. All of it presided over by a gigantic Cloud of Unknowing, and in the center of that cloud the One Huge Question: Are we recovering? Or is we not? And whoa! Did you see those employment numbers? What a shock! Why are they still so BAD? Yes, all the Investor Relations people will tell you what the great geniuses on the Street are worried about right now. Jobs, baby. All these people out there are unemployed, see? And a huge chunk of the employed are actually underemployed. And even among the gainfully, profitably employed, the sense of danger, of peril, of massive insecurity, is palpable. You can palpate it. And when you do, it comes up all soft and rotten. So people are saving their money instead of spending it. Which means our little recovery can’t really get started, since consumer spending motors the entire economy as we know it. Is it any wonder Wall Street is worried? Why isn’t somebody doing something about all that unemployment? But wait a minute. Stop and listen. Right beneath all the paranoia, the worry, the pessimism about our economy, the shock and awe at what’s become of all those jobs!… these very same guys are exhorting Corporate America to cut more of them, to keep costs low, no, lower, don’t let them creep back! Do more with less! They love that whole doing more with less thing. Companies that continue to cut jobs are rewarded with higher stock prices. Companies that create jobs for people run into a wall of ravening analysts. The System has figured out, in the last several years, how to get 100 people to do the job of 250. Woe unto the outfit that forgets that lesson. What’s really amazing, stunning and grimly laughable, is that nobody on the Street seems to make the connection. They’re the ones maintaining our unemployment stats. And at the same time seem to be truly dismayed by them. Sometimes stupid is worse than evil. To get back, to get really back, we’re going to have to start giving people jobs. Those that do will be walking straight into a huge, malevolent headwind generated by the machine that drives their value. Eventually, you’ve got to hope that we’ll all remember how to do more with more. Until then, the first guys on the beach are likely to get slaughtered. And the recovery will remain an unconquered castle on a distant hill.

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Obama’s Beach Will Be Clean, But Oil Lies Beneath Sand Nearby

August 12, 2010

The Florida Panhandle beach where the Obamas are going to spend the weekend to boost tourism in the region is indeed pristine and oil-free. Panama City Beach, where the White House has announced the first family will be staying Saturday and Sunday, was spared the worst of the BP oil spill, sullied only by sporadic tar balls that were easily cleaned up. Starting just 80 miles to the west, from Pensacola Beach and on to Alabama, the beaches were hit a lot worse. And a University of South Florida scientist told HuffPost those beaches, thanks to a “superficial” cleanup job by BP, remain contaminated. In some cases, the beaches look clean at first glance – certainly as compared to when they were covered in brown oil – but they “weren’t cleaned up very well,” said Ping Wang, an associate professor of geology at USF whose research teams have been monitoring the shoreline. “There are small tar balls everywhere on the back beach, and there’s buried oil that wasn’t cleaned up,” Wang said. According to Wang’s report , at least as much oil as was cleaned up remains buried under the surface. “The buried oil contamination has been observed up to 6 inches thick extending over a wide zone of beach,” the report says. “Buried oil is much more difficult to clean because it is not directly visible and buried to various depths. In addition, buried oil will have a much longer lasting effect because it will not be weathered by the sunlight as easily as the surface oil.” Wang said the Obamas shouldn’t just stay where they’re based. “I think they should inspect a beach that’s contaminated more than Panama City Beach,” he said. “If they look carefully, if they dig a hole on the beach, they’ll find what’s left over from a superficial cleanup.” And that includes the kids. “If they dig a hole, they’ll find oil,” Wang said. “I’ll be happy to go help them.” “Every minute you see a BP advertisement saying they’re committed to cleaning up the coast. Well, that’s not cleanup,” Wang said. “They need to do a lot more.”

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Solar Energy Initiatives, Inc. Appoints Mr. Jack Zwick to Its Board of Directors

August 10, 2010

PONTE VEDRA BEACH, FL–(Marketwire – August 10, 2010) – Solar Energy Initiatives, Inc. ( OTCBB : SNRY ), with businesses in solar project development, distribution and workforce training, today announced the appointment of Mr. Jack Zwick, CPA to its Board of Directors. The appointment comes at a vital time for the company as it has recently completed a spinoff of its publically traded Solar Park Initiatives, and continues to execute on contracts from its rapidly expanding municipal pipeline.

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BP Not Denying, Just Not Paying Nearly 40,000 Oil Spill Claims

August 9, 2010

ORANGE BEACH, Ala. — Sheryl Lindsay’s wedding planner business is on the brink, crumbling with each cancellation over concerns about oil. Brides-to-be are walking away from plans for beachside vows, leaving Lindsay waiting to see whether she’ll be part of BP’s promise to make whole everyone who’s suffered from its spill. BP said Monday it had received 145,000 claims from residents and business owners like Lindsay citing lost income because of the massive spill in the Gulf of Mexico, and had paid out $324 million without denying a single claim. That sounds pretty good, until frustrated residents and officials point out that 39,000 claims are in limbo – some of them, including Lindsay’s, have been there for months. Some that have been paid are only partial payments, and many of those people are still fighting for more money. “Therein lies the problem,” Mississippi Attorney General Jim Hood said recently. “They don’t deny them. They just hold them open forever.” Hood speculated that BP PLC would rather wait for Kenneth Feinberg, the federally appointed administrator of the $20 billion compensation fund BP established at the behest of the White House, to take over the claims process this month. That way, if a claim is denied, “he’s the bad guy” instead of BP, Hood said. BP claims director Darryl Willis said the company isn’t deliberately delaying. Rather, 26,000 pending claims are still being evaluated and thousands of others need more documentation, the company said. “Our intent is to continue paying claims until this process is handed over to Ken Feinberg,” Willis said. “There’s no intent to slow this thing down.” However, BP does defer “questionable” claims to Feinberg, including “restaurants and tourist claims from areas that haven’t been impacted by an oiled beach,” company spokeswoman Pat Wright said. “We believe there are some tough decisions out there that need to be made on a variety of these claims because many of these are claims are not squarely within the guidelines of the Oil Pollution Act,” she added. The act was enacted in 1990 after the Exxon Valdez spill in Alaska. Under the law, BP is responsible for cleanup costs, but the act caps the company’s liability for other economic damage, such as lost wages, at $75 million. BP officials said early on that the company would not limit itself to that cap. But the company is using the guidelines for who should be compensated. Wright said BP decided to defer some claims because Feinberg “has said that he’s going to look at this, maybe, a bit differently than we are looking at it.” Feinberg, who oversaw payouts for victims of the Sept. 11 attacks, did not respond to e-mailed questions from The Associated Press. He has said that claims without a direct tie to the oiled water will have a harder time making it through the process. In Washington, the Justice Department and BP announced Monday that the company had deposited the initial $3 billion into the $20 billion fund. Louisianians have been hardest hit by the oil and have reaped the most through BP’s claims process, getting 34,000 checks totaling $139 million as of Monday, according to BP. Alabama was next with $75 million, Florida residents took in $61 million, Mississippians $26 million and Texans had received $9 million since the April 20 explosion of the Deepwater Horizon rig killed 11 and started a spill that lasted more than three months. BP said it has paid out $58 million in just the first eight days of August, in part by eliminating some paperwork requirements for business claims. “I’ll be the first to admit that this process has not been perfect,” Willis said. “We’re going to continue to look for ways to get this money out and do it more efficiently.” Who is eligible and how much compensation they deserve are open questions. Lindsay said she was pointedly told by a claims adjuster that she wouldn’t get money from BP to keep afloat the beach wedding business she owns with her sister, which she said was on pace to make $500,000 this year until the spill. “Last week we were told they were not paying wedding planners,” she said with a huff of frustration. “We’re having to close our offices. We’re not closing the business – yet – but we’ve just got to get out from under the rent. We can’t afford it anymore.” Orange Beach Weddings has had 30 cancellations, owes on loans to the bank and must refund deposits while hoping for new clients. “The phones just don’t ring anymore,” Lindsay said. A few days after being told her claim was denied by one BP claims adjuster, another said it was merely on hold. On Thursday, yet another adjuster, who identified himself as Buddy, said Lindsay’s claim was denied, that wedding planners were ineligible. “Nobody can make a decision,” Lindsay said. “We’re just stuck.” Wright said the adjusters in Lindsay’s case made a mistake, and that the 1,650 people on the claims team aren’t always on the same page. She said BP adjustors shouldn’t be denying any claims. “I’ll be working to address this with the adjusters to make sure they fully understand,” she said. Another lingering question is whether folks hurt by the federal moratorium on oil drilling will get help, specifically those who didn’t work directly on the 33 rigs that were shut down. BP gave $100 million to a charity to give grants to rig workers affected by the moratorium, but that money isn’t for businesses such as supply boats that support the rigs. Brett Broussard, who pilots offshore oil service boats, called it laughable for BP to say the company hasn’t denied claims. Broussard said BP told him he was ineligible because the moratorium put him out of work, not the oil spill. “They’re parsing words. I am not eligible because of the moratorium, but their spill caused the moratorium,” Broussard said. “I find it repulsive and repugnant.” Mitch Jurisich, a Plaquemines Parish, La., oyster farmer, compared the claims process to dealing with the Federal Emergency Management Agency after Hurricane Katrina in 2005 – “so similar it’s pitiful,” he said. “I’m still sitting here sending paperwork after paperwork trying to get my first paycheck,” Jurisich said of his spill claim. “I feel I’ve had to give more paperwork for this than I would have to give the IRS in an audit. I’m losing confidence on a daily basis.” ___ Mohr reported from Jackson, Miss. Associated Press writer Pete Yost in Washington contributed to this report.

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Gulf Oil Spill Leaves Local Businesses With A Lost Summer

August 4, 2010

ORANGE BEACH, Ala. — A stack of business cards for tourists sits on a countertop beside the cash register at Zeke’s Marina on the Alabama shore. Beside it sits another stack, advertising mental health counseling for locals. It’s been a depressing summer for business owners along the coasts of Alabama and the Florida Panhandle. Unlike Louisiana, which has fishing, and Mississippi, which has gambling, resort towns on this stretch of sugar-white sand rely largely on one industry: tourism. The oil well that blew on April 20 off Louisiana and sullied the season is now capped, at least temporarily, and has been pumped with drilling mud to stem the flow. But with just a few weeks left before school starts, and many tourists having already made other plans, business owners say the remaining time before Labor Day will largely do nothing to keep them afloat. Even now, with the beaches relatively clean and the water clear, business is a bust as many tourists stay away, having heard about soiled beaches or fearing the unknown. Oil or no oil, the summer is shot, and everyone from hotel managers to souvenir shop owners and restaurateurs is looking to BP PLC to help keep their doors opens, their employees paid and their livelihoods intact until next summer. At the Paradise Inn Motel on the main drag in Pensacola Beach, Fla., where a bright yellow sun on the sign advertises its bayside bar and grill, manager Dana Powell said the remaining few weeks of the peak season won’t even be a Band-Aid to the bottom line. The inn is usually booked full through the summer but is now down about 50 percent. Powell wondered whether she would even have a job this winter. “I don’t ask that question because I don’t want to know,” she said, shaking her head. “Anxiety, stress. People have been pretty miserable around here. It’s just been depressing.” About 25 miles east in Perdido Key, Fla., souvenir shop owner Wayne Cavalier is exhausted. He has given up on saving summer and now spends most of his days plowing through paperwork for his BP claims. “There’s just not enough business left to save us,” he said. “Without BP, we’re done.” Cavalier runs two souvenir shops along the coast road, selling beach towels, T-shirts, sandals, rafts, shells, jewelry and other fare typical of tourist traps. He speaks with grief in his voice, pausing occasionally to sigh. “I’m in jeopardy of closing both of them down, and just losing them,” he said. “All of this is coming down on me, man. We’re just trying to make a living.” Tony Kennon, mayor of Orange Beach, agreed that BP will have to come through on claims for many of his constituents to stay afloat. “Summer’s gone, and there was nowhere near enough cash generated for our businesses to make it through the off-season,” Kennon said. “We’re going to do the best we possibly can with the remaining weeks, but our businesses won’t survive without BP’s help.” The company has begun speeding up the claims process for business owners along the coast and has started easing documentation requirements, BP spokeswoman Pat Wright said Tuesday. Taxable lodging rentals for Orange Beach area and Gulf Shores, just down the road, declined 7.3 percent from the year before for May alone, according to the Alabama Gulf Coast Convention & Visitors Bureau. Numbers are not in yet for June and July, typically the busiest months and those that saw the most tourist cancellations this year. A recent report from the Natural Resources Defense Council found the oil had forced beaches along the Gulf Coast to issue nearly 10 times as many closing and advisory days as last year – more than 2,000, compared with 237 in 2009. The Fourth of July weekend fizzled, with many fireworks displays canceled, replaced instead by cleanup workers and heavy equipment removing oil-stained sand from the beaches. Tourist traffic picked up this past weekend in Gulf Shores, bringing a drive-in crowd that can make last-minute plans – but not the kind of weeklong visitors who make or break the summer. A few scattered tar balls stained the sand and a light sheen shimmered in the sun just offshore while families splashed in the surf, sunbathed and tried to make the best of one of the first nice – and clean – beach weekends there in weeks. “Growing up, we always came to Gulf Shores, and this is about as pretty the water has looked as I can remember,” said Michael Hitch, 34, a pastor from New Orleans who came over for the weekend with his wife and three children. “Well, at least today it is,” he added with a nervous chuckle. “We’ve been staying away for about 2 1/2 months now.” Even with weekend tourist traffic picking up, it’s nowhere near what it should be. Don Roberts just opened his beachside service business in Gulf Shores this year, hoping to make some cash renting chairs, floats and umbrellas. “The season’s over now, man,” Roberts said with a sigh, sweating in the early morning sun as he set out his wares. A few tourists trickled by, but an hour later, he had made no sales. “I just hope people start coming back if they haven’t already made other plans,” he said. “It’s going to be tough.” No matter that the beaches appear clean and the water clear now, perception – not oil – has become the region’s biggest hurdle. “Look at the beach; it’s as clean as it can be,” griped B.J. Johnson, owner of Funny Cars in Pensacola Beach, which rents out vehicles similar to golf carts that visitors can use to ferry themselves around town. “But where are the people?” He’s waiting on his BP claims check to help keep his doors open. “We’re 30 days away from Labor Day. You can’t make up an entire summer in 30 days,” Johnson said. “There’s just no way.”

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Fannie, Freddie, Big Banks Helping Lawyers Make Millions Pushing Families Out Of Their Homes

August 3, 2010

Late one night in February 2009, Ariane Ice sat poring over records on the website of Florida’s Palm Beach County. She’d been at it for weeks, forsaking sleep to sift through thousands of legal documents. She and her husband, Tom, an attorney, ran a boutique foreclosure defense firm called Ice Legal. (Slogan: “Your home is your castle. Defend it.”) Now they were up against one of Florida’s biggest foreclosure law firms: Founded by multimillionaire attorney David J. Stern, it controlled one-fifth of the state’s booming market in foreclosure-related services. Ice had a strong hunch that Stern’s operation was up to something, and that night she found her smoking gun.

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Riki Ott: Oilgate! BP and All the President’s Men (Except One) Seek to Contain Truth of Leak in the Gulf (PHOTOS)(VIDEO)

August 2, 2010

Barataria, LA. — Bonnie Schumaker slowed her souped-up Cessna 180 from 130 to 50 knots so I could hold open the window for documentary film producer Bo Bodart to shoot the grim scene below us. The oil-laced air rushed in and stung our throats and eyes. Bay Jimmy on the northeast side of Barataria Bay was full of oil. So was Bay Baptiste, Lake Grande Ecaille, and Billet Bay. Sitting next to me was Mike Roberts , a shrimper with Louisiana Bayoukeepers, who has grown up in this area. His voice crackled over the headset as I strained to hold the window. “I’ve fished in all these waters – everywhere you can see. It’s all oiled. This is the worst I’ve seen. This is a heart-break…” Bay Jimmy, northeast end of Barataria Bay. July 31, 2010. Bo Bodart. We followed thick streamers of black oil and ribbons of rainbow sheen from Bay Baptiste and Bay Jimmy south across Barataria Bay through Four Bayou Pass and into the Gulf of Mexico. The ocean’s smooth surface glinted like molten lead in the late afternoon sun. Oil. As far as we could see: Oil. This was July 31, Day 103 of BP’s disaster and more than two weeks after BP had sealed its broken wellhead that had hemorrhaged oil into the Gulf for nearly three months. BP’s latest pretend is that tropical storm Bonnie washed the oil away – or at least off the surface – so the company is busily laying off response crews and claiming damages were over-exaggerated. Since Day 1, BP has consistently downplayed the size of its gusher and the damage it was causing to wildlife and people. This is what happens when governments leave the spiller in charge of the spill or, in this case, the criminal in charge of the crime scene. Evidence disappears as the criminal seeks to minimize its liability for damages. What should be a war on the spill becomes a war against the truth, the environment, and the injured people. The official story emerging now from BP and most of the president’s men – and now being echoed by some national media – is: the oil is gone; the danger is past and was exaggerated; the dispersants were effective in keeping oil from reaching the shore; the oil that does reach shore is mostly weathered and not toxic; and federal officials have found no unsafe levels of oil in air or water samples and no evidence of illness due to oil or dispersant use. As my father used to say: Good story if true. The official story does not match the reality that I saw from the Cessna or have heard from people I have met during community visits since the well was temporarily sealed – and ever since I first arrived in early May. Public health is a huge concern – and with good reason. BP has created Frankenstein in its Gulf laboratory: an oil-dispersant chemical stew that so far has contaminated over 44,000 square miles of ocean and caused internal bleeding and hemorrhaging in workers and dolphins alike, according to Hugh Kaufman , a senior policy analyst at the EPA, who recently blew the whistle on the industry-government cover up. BP has sprayed dispersants steadily in the Gulf with Coast Guard approval from the beginning – under the sea, on the surface, offshore, near shore, in inland waters, at night, during the day – despite a public uproar to cease and desist. The dispersants used in BP’s draconian experiment contain solvents such as petroleum distillates and 2-butoxyethanol. Solvents dissolve oil, grease, and rubber. Spill responders have told me that the hard rubber impellors in their engines and the soft rubber bushings on their outboard motor pumps are falling apart and need frequent replacement. They say the plastic corks used to float the absorbent booms during skimming operations dissolve after a week of use. They say the hard epoxy resin on and below the waterline of their fiberglass boats is also dissolving and chipping away. Divers have told me that they have had to replace the soft rubber o-rings on their gear after dives in the Gulf and that the oil-chemical stew eats its way into even the Hazmat dive suits. Given this evidence, it should be no surprise that solvents are also notoriously toxic to people, something the medical community has long known. In Generations at Risk, medical doctor Ted Schettler and others warn that solvents can rapidly enter the human body: They evaporate in air and are easily inhaled, they penetrate skin easily, and they cross the placenta into fetuses. For example, 2-butoxyethanol is a human health hazard substance: It is a fetal toxin and it breaks down blood cells, causing blood and kidney disorders. I suspect that the oil-chemical stew is likely the culprit behind the strange rashes reported by people across the Gulf – rashes that break out into deep blisters on legs or repeated peeling on hands. Stories accompany the rashes, stories of handling dead sea turtles, wading or swimming in the Gulf, or washing clothes of spill responders. Medical doctors are diagnosing rashes as staph infections or scabies, but the rashes are not responding to medical treatment as they would if the causation was biological instead of chemical. Blisters and rashes experienced by fisher and Venice, Louisiana, Councilwoman Kindra Arneson are widespread across the Gulf. Rashes are not responding to treatment for staph or scabies. The cause may be chemical, not biological. 2010 Kindra Arneson. Cindy Feinberg and her family visited Ft. Walton, Florida, on vacation in mid June when the “ocean was full of tar” and crews were picking up tar balls on the beach. The day after swimming in the Gulf – people were told it was safe, her palms became fiery red and flaked and peeled repeatedly for several days. Other people have shown me similar rashes that have lingered for months. June 18, 2010. Cindy Feinberg. In Sound Truth and Corporate Myths, I wrote of similar rashes and peeling skin experienced by Exxon Valdez spill responders, especially ones who used dispersants and other chemical solvents. Yet in the Gulf, many doctors are turning a blind eye to chemical causes, because BP insists that solvents “disappear” after only a day or two. Retired toxicologist and forensic chemist John Laseter disagrees. Laseter’s long career includes evaluation of human health effects of some of the largest toxic chemical and petroleum releases into the environment in the United States and Europe. He also founded and ran Accu-Chem, a lab that analyzed blood work for criminal justice cases. Laseter told me that solvents “solubilize” or become soluble in oil and remain a threat for up to two months. He said the oil-solvent mixture sticks on biological tissue – gills of fish, the organic film coating sand grains and raindrops – and can wreak havoc. He told me that the dispersants are “almost certainly” making the oil penetrate more deeply into the skin and could very well be causing the rashes in the Gulf. Other toxicologists confirm that dispersants amount to a “delivery system” for oil: the combination is worse for human and sea life than the oil or dispersant alone. Yet all the president’s men – the Coast Guard, OSHA, NIOSH, FDA, and the EPA (except the EPA whistleblower noted above), in keeping with the cover up, cannot seem to find any unsafe levels of oil or solvents in the air or water. But other people are. For example, about a week after the oil started coming ashore in Alabama, the Mobile television station WKRG took samples of water and sand from Orange Beach, Gulf Shores, Katrina Key, and Dauphin Island. The test was nothing fancy. The on-air reporter simply dipped a jar into the ocean and another into some surf water filling a sand pit dug by a small child. In the samples, oil was not visible in the water or the sand, but the chemist who analyzed them reported astonishingly high levels of oil ranging from 16 to 221 parts per million (ppm). Except for the Dauphin Island sample — that one literally exploded in the lab before testing could be completed. The chemist thought maybe the exploding sample contained methane or 2-butoxyethanol. There is also evidence of dangerous levels of oil in the air. A preliminary study commissioned in mid-July by Guardians of the Gulf, a community-based nonprofit organization in Orange Beach, Alabama, found that nightly air inversions – common in the area during the summer and fall – were trapping pollutants near the ground. Total Volatile Organic Compounds (VOCs) – including the carcinogen benzene, and oil vapors – reached 85 to 108 ppm at 9:00 a.m. but rapidly dropped to zero (or nondetectable) within half an hour as the sun burned through the inversion layer. (For comparison, the federal standard for 15-minute exposure to benzene is 5 ppm.) The EPA did find unsafe levels of VOCs once in early May, but pulled much of its early data, as I reported earlier . Such high levels could explain the bout of respiratory problems, dizziness, nausea, sore throats, headaches, and ear bleeds that I have heard about from residents and health professionals from Houma, Louisiana, to Apalachicola, Florida. Even the oil industry knows that these chemicals are unsafe. As long ago as 1948, the American Petroleum Institute confirmed, “The only absolutely safe concentration for benzene is zero.” When we landed after our 2-hour flight, our pilot told us that she sometimes has to wipe an oily reddish film off the leading edges of her plane’s wings after flying over the Gulf. Hurricane Creekkeeper John Wathem documented similar oily films on planes he chartered for Gulf over-flights. Bonnie doesn’t wear gloves when she wipes her plane. She showed me her hands — red rash, blisters, and peeling palms. If peeling palms are an indication of the oil-solvent stew, the reddish film on Bonnie’s plane and others means that the stew is not only in the Gulf, it is in the rain clouds above the Gulf. And in the middle of hurricane season, this means the oil-solvent mix could rain down anywhere across the Gulf. Why all this pretend in the Gulf by BP and all the president’s men except the EPA whistleblower that oil and dispersants are not toxic? By comparison, last week in Calhoun County, Michigan, an Enbridge pipeline ruptured, spilling at least 19,500 barrels of oil. At least thirty families were temporarily relocated because of the stench and roads and beaches were closed. Health officials have warned people to stay away from the fumes and beaches, and to avoid swimming and fishing near oiled areas. “It’s a very toxic and dangerous environment,” Calhoun County health officer Jim Rutherford said. If spilled oil is “toxic and dangerous” in Michigan, it’s also toxic and dangerous in the Gulf. But in the Gulf, public officials have downplayed the health risk despite hard evidence of an epidemic of chemical illnesses related to, I believe, the oil-chemical stew. The fact that the official story in the Gulf does not match what people are experiencing is more alarming to me than the oil disaster. How can our president hold BP accountable if he accepts – or worse is complicit in – the crime? Correcting the false official story is the first step toward holding the criminal accountable to the law and lore of the land. If the government fails to hold the criminal accountable, as it did during the Exxon Valdez, then the people and environment will bear the costs of this avoidable tragedy. Riki Ott, marine toxicologist and author of Not One Drop: Betrayal and Courage in the Wake of the Exxon Valdez Oil Spil l (Chelsea Green, 2008), is working with Gulf residents and others to design and implement an independent air and water quality sampling program.

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John McLane Joins GCube Insurance Services as Senior Vice President

July 29, 2010

NEWPORT BEACH, CA–(Marketwire – July 29, 2010) –   GCube Insurance Services, Inc., the leading global insurer of renewable energy technologies, announced today that John McLane has joined the company as Senior Vice President.

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