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Bank Learns Not To Mess With Occupy Atlanta

by Jocelyn Richard on January 13, 2012

Huffington Post…

A 108-year-old church threatened with foreclosure got a last-minute reprieve thanks to the efforts of Occupy Atlanta, whose members staged a protest at the church and convinced the bank to delay foreclosure until another payment plan could be reached , CBS Atlanta reports. The church, Higher Ground Empowerment Center, has been struggling to retain members and raise funds for renovations after being significantly damaged by a tornado that ravaged downtown Atlanta in 2008. Church leaders took out a huge loan with BB&T in Atlanta to cover repairs, but keeping up with the payments became increasingly difficult as membership numbers continued to fall. They eventually decided to try refinancing the loan, but were disappointed to learn they would be evicted if they couldn’t raise enough money to avoid foreclosure. That’s when pastor Dexter Johnson called up Occupy Atlanta, asking for help in convincing the bank to reconsider its decision. Protestors staged an occupy-style protest on Wednesday, moving onto church property with signs and tents. Later that day, the bank decided to delay foreclosure hearings and work out a payment plan. Occupy Atlanta’s protest follows a recent wave of anti-foreclosure campaigns that use occupy movements to delay home foreclosures. Dec. 6 marked the official launch of Occupy Our Homes, an anti-foreclosure campaign activists say could become one of the most important efforts of the Occupy movement. “The defense of homes from foreclosure and forcible eviction could cement OWS’s relevance in a new post-encampment period,” Peter Rothberg wrote in The Nation . “Hopes are riding high that the day can galvanize a new frontier for the occupy movement: the liberation of vacant bank-owned homes for those in need.” Occupy Our Homes has caught on in cities around the country as protestors stage sit-ins at foreclosed properties. AOL Real Estate reported on Minneapolis man Bobby Hull , a Vietnam vet forced out of work by war injuries who faced foreclosure last year after falling behind on mortgage payments. Hull reached out to Occupy Minneapolis, and activists continue to protest the bank ahead of the scheduled February eviction. “It’s been a big relief,” Hull told AOL Real Estate regarding the help he’s received from Occupy activists. “I’m not trying to have false hope. But I’m hopeful.”

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Bank Learns Not To Mess With Occupy Atlanta

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Huffington Post…

OAKLAND, Calif. — Leaders across the country felt increasing pressure Friday to shut down Occupy encampments after two men died in shootings and another was found dead from a suspected combination of drugs and carbon monoxide poisoning caused by a propane heater inside a tent. Citing a strain on crime-fighting resources, police first pleaded with and then ordered Occupy Oakland protesters to leave their encampment at the City Hall plaza where a man was shot and killed late Thursday. The Oakland Police Officer’s Association, which represents rank-and-file police, issued an open letter saying the camp is pulling officers away from crime-plagued neighborhoods. “With last night’s homicide, in broad daylight, in the middle of rush hour, Frank Ogawa Plaza is no longer safe,” the letter said. “Please leave peacefully, with your heads held high, so we can get police officers back to work fighting crime in Oakland neighborhoods.” Late in the afternoon, police officers acting at the direction of Mayor Jean Quan distributed fliers to protesters warning that the camp violates the law and must be disbanded immediately. The notices warned campers they would face arrest if tents and other materials were not removed, although the warnings did not say by when. The city issued similar written warnings before officers raided the encampment before dawn on Oct. 25 with tear gas and bean bags projectiles before arresting 85 people. A day later, Quan allowed protesters to reclaim the disbanded site and the camp has grown substantially since then. City Council President Larry Reid said outside City Hall on Friday that the shooting was further proof the tents must come down. He was confronted by a protester who said he wouldn’t be in office much longer. “You didn’t elect me,” Reid snapped back. “You probably ain’t even registered to vote!” Reid said the encampment has been a major setback for the area while attracting sex offenders, mentally ill and homeless people, and anarchists. “This is no longer about Occupy Wall Street,” he said. “This is about occupying Oakland and extracting whatever you can get out of Oakland by holding our city hostage.” The Oakland shooting occurred the same day a 35-year-old military veteran apparently shot himself to death in a tent at a Burlington, Vt., Occupy encampment. On Friday, a man was found dead inside a tent at the Occupy Salt Lake City encampment, from what police said was a combination of drug use and carbon monoxide. A preliminary investigation into the Oakland shooting suggested it resulted from a fight between two groups of men at or near the encampment, police Chief Howard Jordan said. Investigators do not know if the men in the fight were associated with Occupy Oakland, he said. Protesters said there was no connection between the shooting and the camp. The coroner’s office said it was using fingerprints to identify the victim and that a positive identification was not likely to be released before Monday. Protesters have been girding for another police raid as several City Council members have said the Oakland camp must go. After police cleared the camp last month, Quan changed course and allowed protesters to return. The mayor’s reversal strained relationships with city police and other San Francisco Bay area law enforcement agencies. More than a dozen agencies joined Oakland police in the Oct. 25 raid on the camp under a mutual aid policy in which each agency covers its own costs. Alameda County Sheriff’s Department spokesman Sgt. J.D. Nelson said Friday that Oakland will have to pick up the entire tab if it asks for deputies to assist another raid. Mutual aid was designed for law enforcement agencies to assist each other in unplanned emergency situations, Nelson said. “When government officials allowed those campers to go back in, well now you know what you’re getting. It’s not an unplanned event,” he said. In Vermont, police said a preliminary investigation showed the veteran fatally shot himself in the head in a tent in City Hall Park. The name of the Chittenden County man was being withheld because not all of his family has been notified. The shooting raised questions about whether the protest would be allowed to continue, said Burlington police Deputy Chief Andi Higbee. “Our responsibility is to keep the public safe. When there is a discharge of a firearm in a public place like this it’s good cause to be concerned, greatly concerned,” Higbee said. The discovery of the man believed to be in his 40s at the Occupy Salt Lake City camp led police to order all protesters to leave the park where they have camped for weeks. The man has not been identified. Group organizers said many of the roughly 150 protesters plan to go to jail rather than abandon the encampment. “We don’t even know if this is a tragedy or just natural,” protest organizer Jesse Fruhwirth said. “They’re scapegoating Occupy.” Salt Lake City police Chief Chris Burbank said officers have made 91 arrests at the camp, roughly the same number seen in the area during all of the last year. Tensions were also high at the 300-tent encampment in Portland, Ore., which has become a hub for the city’s homeless people and addicts. Mayor Sam Adams ordered the camp shut down by midnight Saturday, saying the tipping point came this week with the arrest of a camper on suspicion of setting off a Molotov cocktail outside an office building, as well as two non-fatal drug overdoses at the camp. “I cannot wait for someone to die,” he said. “I cannot wait for someone to use the camp as camouflage to inflict bodily harm on others.” Many at the camp said they would resist any effort to remove them. “There will be a variety of tactics used,” said organizer Adriane DeJerk, 26. “No social movement has ever been successful while being completely peaceful.” Police said some elements inside the camp may be building shields and makeshift weapons, including nails hammered into wood, while trying to gather gas masks. “If there are anarchists, if there are weapons, if there is an intention to engage in violence and confrontation, that obviously raises our concerns,” Portland police Lt. Robert King said. ___ Associated Press writers Dave Gram in Burlington, Vt., Nigel Duara in Portland, Ore., Josh Loftin and Brian Skoloff in Salt Lake City and Sudhin Thanawala and Marcus Wohlsen in San Francisco contributed to this report.

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‘It’s No Longer Safe’: Oakland Police Beg Occupy Protesters To Leave

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Occupy Movement Accepts Modest Help From The Left

November 1, 2011

By DAVID B. CARUSO, The Associated Press NEW YORK (AP) — With its noisy drum circle, meandering parades of bandanna-clad youth and disdain for centralized leadership, the Occupy Wall Street encampment sometimes has the ragtag look of a group that is making things up as it goes along and discovering its own purpose along the way. (CLICK HERE OR SCROLL DOWN FOR LATEST UPDATES ) But from the start, the movement has also gotten support from a long list of experienced, well-funded organizations, unions and political committees – sometimes to the discomfort of more radical protesters who worry about their message being co-opted or watered down. After an initial hesitation to get involved, unions from Boston to Los Angeles have sent members to march in the demonstrations and donate air mattresses, food and other supplies. In Oakland, unions representing teachers and government workers are encouraging members to take a day off from work to march with protesters Wednesday. MoveOn.org, a group that has given millions to liberal Democrats, has promoted the demonstrations relentlessly on its Web site and in blast emails. To most of the youthful radicals at the movement’s heart, all this help is welcome, but with a caveat. “This is a movement of individuals, not managed political coalitions,” said Alexa O’Brien, one of the many early organizers who helped get the New York occupation started on Sept. 17. Unions can be great, and their support is “critical,” but they can be corrupt, too, she said. And the Democratic Party, she added, is part of the problem. “If you are going to ask corporations to get out of elections, you have to ask all special interests to get out of elections,” she said. “This movement is about building civic infrastructure for regular citizens.” Today, the group that has now occupied a city park for six weeks shows few signs that it is allowing outside organizations a substantial role in planning its marches, making decisions, or deciding what issues to embrace. But it has also turned to a network of left-leaning organizations for help, some of which have been around since before most of the protesters were born. The group of activists who began meeting to plan the demonstrations in mid-summer included several people who had been involved in an organization called US Uncut, which is affiliated with the Institute for Policy Studies, a Washington think tank that cut its teeth opposing the Vietnam War. When Occupy Wall Street needed an established nonprofit group to help handle incoming donations, which have now topped $500,000, they turned to the Alliance for Global Justice, an entity originally founded in 1979 to build support for the communist Sandinista government in Nicaragua. The National Lawyers Guild, whose members have been representing dissenters, peaceniks, and civil-rights activists since1937, has set up Occupy legal hotlines in 19 cities and been representing protesters arrested across the country. Even the unofficial newspaper of the New York encampment, The Occupy Wall Street Journal, didn’t simply spring organically from the protesters’ base in Zuccotti Park; it is a special edition of the Indypendent, an alternative newspaper that has been publishing for 11 years. All of this support by outside groups has become a rallying point by the movement’s critics, who have accused it being manipulated behind the scenes by government worker unions trying to keep taxes high, or by Democrats trying to use the “class warfare” card in upcoming elections, or by community organizing groups trying to drum up support for government entitlement programs. If that’s happening, there is scant evidence in Occupy Wall Street’s daily organizational meetings, where the demonstrators seem to focus a substantial amount of time and energy on the logistics of keeping the camp running and building an organization. Much of the assistance provided has been more inspirational than operational. Chuck Collins, a senior IPS scholar, said that while US Uncut activists provided a list of media contacts to the demonstrators, produced some graphics, and brought skills they had honed in past protests against “corporate tax dodgers,” the organizing effort was autonomous, with no initial support from organized labor, foundations or other “major institutional players.” IPS Director John Cavanagh said that while was aware that some of his younger colleagues were involved in planning the protest, they did so independently of the institute. The institute didn’t offer any financial assistance, “and I don’t know any other established progressive groups who did,” Cavanagh said. “I will admit honestly that I had doubts as to whether they would have any impact,” he said of his attitude toward the demonstration. Even the editors at Adbusters, the Canadian magazine that came up with the idea for the demonstration and registered the OccupyWallStreet.org website, appear to have had little influence over the movement’s direction. Its subsequent calls for the occupiers to rally behind a demand for a 1 percent global tax on financial transactions has yet to be embraced by the encampment, which has strongly resisted making any specific demands. But that hasn’t stopped groups like unions from jumping on the Occupy bandwagon, and maybe advancing their own agenda. “It’s something that has energized our membership,” said Michael Mulgrew, president of the United Federation of Teachers, which has turned part of its New York headquarters into storage space for the protesters. Strong union participation in an Oct. 5 march in Manhattan made it one of the largest for any “Occupy” event to date. Communication Workers of America political director Bob Master said that while many demonstrators have a political philosophy to the left of the typical trade unionist, “Most of the labor movement in New York recognizes that these young people have sparked a national discussion about issues that are central to our agenda.” Support has also come from groups known for raising large sums for Democratic political candidates – a development that has bothered some demonstrators. MoveOn angered some Occupy protesters with an Oct. 18 fundraising email that asked members to help it build on the momentum created by the protests by chipping in $5. MoveOn’s executive director, Justin Ruben, said the group wasn’t trying to mooch off of the movement. “We’ve been clear about what we’re fundraising for,” he said. “We’re not them. We’re not Occupy Wall Street. We’re very clear that we don’t speak for them. They seem like they are doing a great job getting their voice out. And we want to help.” Democracy for America spokeswoman Levana Layendecker said that while the PAC was prohibited by federal law from giving direct cash assistance to Occupy Wall Street, it was hoping to provide support in other ways, including donating cold-weather sleeping bags and medical supplies. Latest Updates On HuffPost’s Live Blog:

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WATCH: Obama Heckled By Shouting Man

September 27, 2011

(AP/The Huffington Post) LOS ANGELES — A heckler shouting about Jesus Christ interrupted President Barack Obama at a fundraiser before security dragged him out. It happened at the House of Blues in Los Angeles Monday night. The man positioned himself up in front of the stage and started shouting loudly right after Obama started talking. The heckler proclaimed that “Jesus Christ is God” and a Christian God. According to Real Clear Politics, the outburst was met with boos from the crowd at the event. Obama stopped talking. Then after a moment the crowd started chanting “Four more years! Four more years!” and drowned out the heckler. As he was taken out by security the man called out that Obama is an antichrist. Later, another, more-friendly heckler shouted out, “Don’t forget medical marijuana!” Obama responded: “Thank you for that.”

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Chris Christie Deals Heavy Blow To MTV’s ‘Jersey Shore’

September 26, 2011

Gov. Chris Christie (R-NJ) yanked $420,000 in tax credits away from the MTV reality-show “Jersey Shore” on Monday. “I have no interest in policing the content of such projects,” Christie wrote in a letter to the New Jersey Economic Development Authority informing them of his veto. “However, as chief executive I am duty-bound to ensure that taxpayers are not footing a $420,000 bill for a project which does nothing more than perpetuate misconceptions about the state and its citizens.” The tax credits came from a program aimed at encouraging more TV shows and movies to be filmed in the state as an economic development initiative. The show, which is the most widely watched program in MTV’s history, was originally approved for tax credits in 2009. Local officials in Seaside Heights said there had been a boost in economic activity , but Christie has been a vocal critic of the tax program as a whole and the show in particular, and said he was surprised when he first learned “Jersey Shore” was receiving so much in tax credits. He said he received calls from a national coalition of Italian-Americans to veto the tax credits. Christie’s decision received the support of state lawmakers on both sides of the aisle Monday. “I can’t believe we are paying for fake tanning for ‘Snooki’ and ‘The Situation’, and I am not even sure $420,000 covers that,” said State Rep. Declan O’Scanlon (R-Monmouth). State Sen. Joe Vitale (D-Middlesex) told the New Jersey Star-Ledger that “This is a show that uses bigoted remarks,” and said he was glad the governor exercised his veto power. Read Christie’s letter below: Governor Christie Vetoes EDA Minutes Earlier on HuffPost:

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Meet X.commerce, eBay’s Latest Creation

September 17, 2011

By Alistair Barr SAN FRANCISCO | Fri Sep 16, 2011 5:27pm EDT (Reuters) – Ebay Inc is building a new division to woo developers and attract more merchants as the company tries to emulate the success of Apple Inc’s iOS platform in the e-commerce world. Ebay’s main business is still its giant online marketplaces, which bring shoppers and sellers together. The company’s other big division is the payment business PayPal and it acquired GSI Commerce earlier this year to add a third division. But a fourth business has emerged in recent months called X.commerce. The website for the division, X.com, revives a name from the early days of PayPal, when it merged a competing online payments business called X.com started by Elon Musk. X.commerce is trying to persuade outside developers to create applications, or apps, for merchants looking to sell more online. The apps can be designed to work on eBay’s marketplaces. They may also include payment capabilities from PayPal and work with websites built on Magento, an open-source e-commerce company that eBay bought in June. The more useful apps that developers build through X.commerce, the more likely merchants are to use eBay’s marketplaces, PayPal’s payment technology or GSI’s e-commerce services. “The idea is to indirectly monetize eBay’s main assets PayPal, GSI and Marketplaces,” said Matthew Mengerink, the eBay veteran who runs the new division. “X.commerce is in a unique position. I don’t have to drive revenue, I have to drive traffic.” Ebay has about 725,000 developers registered with its various developer programs and there are roughly 4,600 Magento apps active on X.com, up from 3,800 at the start of the year, according to Mengerink. Omniture, a unit of Adobe Systems, Kenshoo, an online marketing software company, and Outright, which makes a financial-management product for small businesses, are among companies that have signed up to develop apps on X.com. “They’re pulling an Apple, calling on the collective power of the developer community,” said Bill Smead of Smead Capital Management, which counts eBay as one of its largest holdings. Apple iOS is the operating system for the iPhone and iPad. The company has a massive following of developers who churn out thousands of apps for those gadgets, making them much more useful for customers. Mengerink reckons X.commerce can be more attractive for developers than iOS because merchants are willing to spend more money on useful e-commerce apps. Mengerink said he will measure X.commerce’s success partly on how much money developers make selling apps. “Apple’s iOS isn’t profitable for most developers,” he said. “On Magento, for every $1 we make, the developer makes $15.” “If developers are making the money, you can’t shake the platform,” he added. “We believe we can create the largest ecosystem.” Smaller merchants will not have to hire lots of in-house developers if a wide variety of e-commerce apps are available to buy and plug into their online stores, Mengerink explained. The success of eBay’s new division will depend on how large and attractive the pool of end-users is to developers, according to Stephen O’Grady, principal analyst at Red Monk, a technology industry analyst group that focuses on developer communities. Other specialty online marketplaces have sprung up in recent years, such as Etsy, cutting into eBay’s dominant position, O’Grady noted. “But eBay is still a major center of gravity,” he said. “For developers that’s still attractive.” Another important ingredient for attracting third-party developers to a technology platform is ease of use. Dan Shahin, a former comic book store owner who has developed an online storefront management system, went with a Google Inc payment system a few years ago, rather than PayPal. That was because PayPal had several different application programing interfaces, or APIs. APIs are sets of rules and specifications that help different software programs communicate with each other. PayPal’s APIs were “scattered around,” making it more difficult for Shahin to develop payment features to include in his storefront management system, he said. Shahin told Mengerink about this and the eBay executive got to work fixing the problem. “Third-party developers had to register for each API,” Mengerink said. “The X.commerce goal is to have one place to register for developers and partners. There are security and other issues with this, so it takes a while.” X.commerce is promising a lot, but Shahin reckons eBay has the technological chops to pull it off. “If anybody can do it, they can,” Shahin told Reuters. “Matthew is not one of those suits. He’s the real deal.” (Reporting by Alistair Barr, editing by Matthew Lewis) Copyright 2011 Thomson Reuters. Click for Restrictions

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Starbucks CEO Cancels Megachurch Speech, Pastor Denies Anti-Gay Stance

August 12, 2011

NEW YORK — Starbucks CEO Howard Schultz cancelled an appearance at one of the most prominent megachurches in the country after an online petition condemned the congregation as anti-gay – a charge the church denies. Schultz had been scheduled to speak Friday at The Global Leadership Summit organized by the Willow Creek Association, based in South Barrington, Ill. The annual event draws tens of thousands of viewers via satellite. Past speakers have included former President Bill Clinton, GE’s Jack Welch and rock singer Bono. A Starbucks spokeswoman confirmed Schultz would not speak as scheduled, but she declined to say more. However, at the start of the event Thursday, the pastor of Willow Creek Community Church, Bill Hybels, said Schultz had cancelled suddenly after a petition was posted on the Internet a week ago that said his participation would be unacceptable. The petition at Change.org accused the megachurch of “anti-gay persecution” over Willow Creek’s past relationship with Exodus International, a Christian ministry that offers to help gays and lesbians change their sexual orientation. Willow Creek cut ties with Exodus in 2009, church spokeswoman Susan DeLay said. Hybels said that Willow Creek does expect its members to follow biblical ethics and reserve sex for marriage between a man and a woman, but welcomes worshippers of all backgrounds. “To suggest that we check sexual orientation or any other kind of issue at our doors is simply not true,” Hybels said. “Just ask the hundreds of people with same-sex attraction who attend our church every week.” Hybels asked members of the audience to write Schultz “with genuine Christian love” and say he’d be welcome at any future summit. “Buy a cup of coffee in the next couple of days and show some Christian goodwill,” Hybels said.

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Rep. Barbara Lee: Race Is Still a Factor in America

August 11, 2011

Recently the question has again surfaced: “Do we live in a post-racial America?” While I recognize and celebrate the many victories won by the civil rights movement and the progress our society has made in facing issues of ongoing racial inequality, highlighted by the historic election of President Barack Obama, our nation still must address the many structural inequalities that have left far too many communities of color behind. Simply put, race is a factor in the growing economic inequalities we have in this country, and we can no longer afford to sweep this issue under the rug. We all know people who are suffering because of the economic crisis — our family, our friends, our neighbors and even ourselves. But we cannot turn a blind eye to the fact that entire communities have been devastated; African Americans, Latinos, Asian and Pacific Americans and communities of color have all carried the biggest burden of the Great Recession. The latest unemployment statistics serve as evidence of this disproportionate impact, reporting an unemployment rate of 16.2 percent for African Americans and 11.6 percent for Hispanics. Just last month, the Pew Research Center reported that the wealth gap is at its highest level since the figure has been calculated and reported. The statistics speak for themselves: the median wealth of white households is 20 times that of black households and 18 times that of Latino households. But we did not start this decade this way. In fact, African Americans and Hispanics were just beginning to build a personal safety net, accumulate savings and invest in home ownership. Now we know that when our economy sank into recession, these communities fell faster and further than others. The collapse of the housing market was one of the driving forces behind the most recent devastating loss of household wealth in minority communities. Communities of color have been disproportionately reliant on their homes as their sole savings and investment vehicle. When they were targeted for subprime, predatory loans, what began as a quest to build wealth and secure their chance at the American Dream via home ownership turned into a nightmare and financial ruin for millions of Americans. The long history of discriminatory practices and policies in the real estate and financial services sectors has never really gone away but has just evolved with the times. Overtly discriminatory practices like redlining that kept minorities from buying homes in white neighborhoods or getting credit to start a business has evolved into mortgage lenders targeting minority neighborhoods with predatory, subprime loans with teaser rates and exploding interest payments. Many of our largest banks engaged in the especially egregious practice of “steering” minority borrowers into predatory, subprime, variable-rate loans with higher rates, when their white counterparts with the same financial qualifications received fixed-rate, prime loans. The pattern and practice of discrimination and abuse in mortgage lending is just one example of the ongoing problem of racial discrimination in America. The growth of rent-to-own stores, payday lenders and a host of other unfair and predatory businesses that prey on minority communities is just a slice of what continues to weigh down communities of color. Additionally, African-American males and Latinos continue to be overrepresented in the criminal justice system — more than 6.5 times and 2.6 times more likely to be incarcerated than their white counterparts, respectively. In the educational system, African Americans and Latinos are still more than twice as likely to drop out as white students. Lack of access to healthy food, good schools, transportation, clean air and water and adequate health care (and the list goes on) continue to plague minority communities disproportionately compared with their white counterparts. Reports like those by the Pew Research Center and improved data from the Census Bureau give us a clear view of these impacts. Nearly 45 million Americans and 1 in 5 children now live in poverty, which means that 3.7 million Americans fell into poverty in the aftermath of the financial crisis. While whites saw their poverty rates rise from 8.6 to 9.4 percent, the rate for African Americans and Latinos rose to 25.8 and 25.3 percent, respectively. Among Asian Americans, the data varies greatly, but among more recent immigrants like Cambodians and Hmong, poverty rates are as high as 16.8 percent and 29.9 percent, respectively, and nearly 22 percent of Southeast-Asian-American children are in poverty. Clearly, the recession has been nothing short of a depression for communities of color, and we can no longer pretend that the laws we pass will affect everyone equally — especially with a playing field that was already uneven to begin with. We must put targeted policies in place that will invest in African Americans, Latin Americans and communities of color — that is the only way that we will ever close this ever-widening gap. We must prove that our country is capable of providing opportunities for all, that we can create pathways out of poverty, that the American Dream does not need to be a nightmare, and that opportunity and prosperity are possible — for everyone. To do that, we must begin by investing in jobs and education and by targeting policies to address the tremendous disparities, economic and otherwise, that continue to plague our nation. Race has been, and continues to be, a factor, and it is time we admit that and begin to address it. If we are unable to do so, this tremendous gulf in wealth will only continue to widen, and entire communities will be left behind and excluded from any hope of the American Dream. I have always believed that discrimination and racism are un-American. If we aspire to make America the country we know it can be, we must ensure that the policies we enact uphold the principles we espouse. As the dedication of the Martin Luther King, Jr. National Memorial approaches, I am reminded of the words he said nearly 50 years ago: “Injustice anywhere is a threat to justice everywhere.” Today, we can rightly celebrate how far our country has progressed in the fight for justice and equality, but we must also accept Dr. King’s challenge and recognize that we still have a far way to go.

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Catholics Look Into Buying Crystal Cathedral

July 8, 2011

By Adelle M. Banks Religion News Service (RNS) The Crystal Cathedral, which has put its iconic campus up for sale to end a bankruptcy crisis, has an interested party that needs a large cathedral: the Roman Catholic Diocese of Orange, Calif. The diocese — the nation’s 11th largest — does not have its own cathedral but has studied the option to build one in nearby Santa Ana, Calif. While that study is ongoing, “it is prudent to evaluate the opportunity to engage in the pending auction of this property and to mitigate the chance that it cease to function as a place of worship, if acquired by others,” said Orange Bishop Tod Brown in a Wednesday (July 6) statement. Marc Winthrop, the lawyer representing the Crystal Cathedral in its bankruptcy case, told the Orange County Register that inquiries from various parties are coming in daily. “The diocese would obviously buy the property to use it for themselves, which will be a big impediment as far as the Crystal Cathedral is concerned,” he told the newspaper. Other prospective buyers — including a development company and nearby Chapman University — plan to offer the cathedral a leaseback program that would allow it to continue worship services in the renowned glass-walled edifice. In recent years, the church has been mired in family, leadership and financial problems. It owed $7.5 million to creditors when it filed for bankruptcy protection last October. On Monday, it announced that founder Robert H. Schuller had been removed from a voting position on its board.

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JPMorgan Close To Overtaking BofA As Biggest U.S. Bank

July 7, 2011

NEW YORK (David Henry) – JPMorgan Chase & Co is close to vaulting past Bank of America Corp to become the biggest bank in the United States, but it will likely get there in an odd way — by shrinking less than its rival. Both JPMorgan Chase and Bank of America are getting smaller as they shake off the excesses of the years leading up to the financial crisis. If JPMorgan becomes the biggest, chief executive Jamie Dimon could see the validation of his cautious management before and during the crisis. Bank of America’s drop to second would illustrate how former Chief Executive Ken Lewis saddled the bank with bad acquisitions that are hampering current CEO Brian Moynihan. But bigger might not be better. Being the largest does not necessarily translate to higher profitability, or a higher market value. Global banking regulators are imposing higher capital requirements on the largest banks and threatening even higher capital charges if they grow. “Big is more a burden than it is a bragging right,” said Gary Townsend, chief executive of asset manager Hill-Townsend Capital, a Chevy Chase, Maryland-based money manager that specializes in financial stocks and owns shares of both banks. That is a switch from the years when Bank of America was buying up banks to cater to the American appetite for more and more borrowing, said Ray Soifer, a long-time bank analyst and now industry consultant at Soifer Consultant in Green Valley, Arizona. “Bigger was better and banks were happy to be at the top,” said Soifer. JPMorgan has been gaining ground on Bank of America for three straight quarters. At the end of March, JPMorgan’s $2.20 trillion of assets were just 3.4 percent short of Bank of America’s $2.27 trillion. JPMorgan already is the most valuable bank in the stock market, with its equity worth nearly 50 percent more than Bank of America’s. Analysts differ as to how soon the switch could happen. Deutsche Bank’s Matt O’Connor sees JPMorgan becoming the largest by year end. FBR Capital Markets’ Paul Miller says it will be the next 12 to 18 months. But however long it takes, analysts agree neither bank is going to be stretching. “It is really going to be who shrinks the least,” said Gerard Cassidy, an analyst at RBC Capital Markets. Even if JPMorgan becomes the largest U.S. bank by assets, it would not be the biggest in the world. The bank is about $600 billion short of that title and there are six other banks between it and the biggest. That honor at last count went to BNP Paribas SA. (For a list of the biggest banks in the world, please double click: r.reuters.com/zyq52s ) JPMorgan spokesman Joseph Evangelisti declined to comment. COUNTRYWIDE A BIG MISTAKE The trend down in the U.S. might not follow a straight line. Banks sometimes temporarily pump up balance sheets to manage their interest rate risk, said Soifer. And there may be lending upturns along the way in borrowing by businesses, as just happened. Federal Reserve data show the combined assets of 25 large U.S. banks grew by one-half of one percent in the second quarter, largely because of more lending to companies. But in general, analysts said, banks are no more likely to grow now than their customers are to try to borrow their way to happiness on the strength of higher home prices. Bank of America and JPMorgan have particular reasons to shrink. To start, they have portfolios of bad assets acquired just before or during the financial crisis. JPMorgan Chase still has more than $80 billion of low-credit quality mortgage and credit card loans, largely acquired when it took over failed lender Washington Mutual in 2008. As of March 31, Bank of America had more than $100 billion of loans in runoff, mainly in a shrinking portfolio known as the legacy asset servicing division formed in January. Many of the assets are mortgages or home equity loans acquired from Countrywide Financial, which it bought in 2008. Both banks are likely to let those loans mature without making new ones to replace them, a process known as “running off” assets. The Countrywide acquisition was a particularly big mistake for Bank of America, FBR’s Miller said. The deal has already cost the bank more than $20 billion of its capital, he said. Some of that money is going out the door in the bank’s recent $8.5 billion settlement of warranty claims by more than 22 institutional investors over allegedly faulty mortgage-backed securities Countrywide sold. Bank of America is selling assets and even closing some bank branches as it tries to strengthen its balance sheet by getting smaller. The bank’s goal is “to balance the appropriate amount of assets and risk,” said Jerry Dubrowski, a Bank of America spokesman. “Having the largest amount of assets does not make you the best financial services provider and, right now, we’re focused on that.” (Additional reporting by Joe Rauch in Charlotte, North Carolina; Editing by Andre Grenon) Copyright 2011 Thomson Reuters. Click for Restrictions .

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What Would Jesus Spend His Money On?

May 25, 2011

By G. Jeffrey MacDonald Religion News Service BEVERLY, Mass. (RNS) No sooner had 29-year-old Graham Messier joined a small group at his church earlier this year than he found himself breaking an American taboo: talking about how much he earns, and where it all goes. Others in the group did likewise as they kicked off an eight-week program aimed at reconciling personal finances with Christian rhetoric about economic justice. It’s countercultural, they said, but it works. By the eighth meeting, Messier’s group had raised $1,800 for three non-profits simply by cutting back on gourmet coffees, dining out and other non-essentials. Talking about household budgets isn’t “the most comfortable thing in the world,” Messier said. “But talking as Christians about the reality of our money situations should be more of a focus than it is generally if we’re going to be real about loving, giving to the poor and taking care of our fellow man.” Since inception in 2006, the Lazarus at the Gate curriculum has guided some 400 people in more than 30 groups to give away a total of $200,000. Using the biblical story of poor Lazarus seeking help at a rich man’s gate, most participants learn that ordinary Americans rank among the world’s richest 5 percent — and that a few dollars go a lot farther in the developing world than they do at their local Starbucks. What began as a Boston-based pilot has grown into an open-source curriculum. The ecumenical Boston Faith and Justice Network (BFJN) shares Lazarus materials upon request with college student groups and churches in other regions and countries. The Boston group recently received funding from Episcopal City Mission and the Presbyterian Hunger Program to encourage the curriculum’s use in their respective denominations. For small groups in U.S. churches, intimate sharing is familiar terrain, but few go so far as to probe spending practices. This “special kind of discipleship” is rare, in part, because it entails true vulnerability and people often don’t want to “disclose family secrets,” according to Max Stackhouse, a retired Princeton Theological Seminary theologian and co-editor of the book, “On Moral Business.” Talking about spending habits “really does cut to the depth of who you are,” said Craig Gay, a Regent College sociologist and author of “Cash Values: Money and the Erosion of Meaning in Today’s Society.” “It really does lay you bare, and that’s threatening,” Gay said. “Most of us don’t want to be that transparent with each other, (but) being less private and more accountable in this area is probably a good idea.” Discomfort notwithstanding, Lazarus has proven a compelling challenge in various religious sectors, appealing to both evangelicals and mainline Protestants, according to Ryan Scott McDonnell, executive director of the Boston Faith and Justice Network. College students seem especially interested since Lazarus campus groups have attracted interest from non-Christians who sense a portion of their money could be used in better ways for greater impact. “People are looking for a framework for social justice or something, and they have a hunger for it in their heart, and they don’t know how to articulate it or interpret it,” said Mako Nagasawa, co-author of the Lazarus curriculum and an advisor to the Asian Christian Fellowship group at Boston College. “We want to say it comes from being made in the image of God and being redeemed by Jesus.” As a Lazarus group gets started, participants share household budgets with the assurance that others won’t judge them or break confidentiality. Subsequent meetings place those budgets in larger contexts. Participants explain how money was (or wasn’t) discussed at home during their childhoods. Together, they unpack biblical passages that address money and responsibilities. Presenters illustrate how poverty fuels social problems such as prostitution, human trafficking and environmental degradation. In practice, Lazarus groups function as a kind of hybrid between secular giving circles and evangelical accountability groups. When members of Messier’s group convened at Christ Church of Hamilton and Wenham (Mass.), participants would report (or confess) their spending and saving over the previous week. Even with group encouragement, efforts to cut back aren’t always successful. Two artists in the Christ Church group, Matt Allard and Liana Hill, found that visits from relatives and unpredictable cash flow prevented them from saving an extra $20 per week for charity. But they donated $140 anyway. “It’s increased my intentional behavior,” Hill said. Lifting the veil on finances involves risk, Gay noted, and requires vigilance to make sure no one suffers abuse. Yet when trust is warranted, he said, Lazarus groups might help people steer clear of secretive spending habits. Simplicity for the sake of generosity is one the Lazarus goals, but exceptions are allowed. After seven weeks of vegetarian fare at the church, the final celebration dinner at one couple’s home featured flank steak, wine and two desserts. As the final meeting wound down, the group’s 13 members voted to divide their $1,800 equally among three organizations whose work includes microfinance, sustainable agriculture and rescuing prostitutes in Manila. The group agreed to keep meeting monthly and making quarterly donations. And they gave thanks for an experience that’s helped them learn to live more gratefully from day to day. To accrue savings, “we split meals, we didn’t get alcohol, or we would share a drink,” said McDonnell, who was part of the Christ Church group. “And we enjoyed it so much more because we made an intentional decision to go out to eat,” added McDonnell’s wife, Caroline.

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Bernard Starr: Sub-Prime Mortgages and Harry the Snake

March 22, 2011

Sub-prime mortgages still plague the housing market. Real estate watch-dog Housing Wire , citing statistics compiled by Realty Trak , recently reported that “Lenders filed a record 3.8 million foreclosures in 2010, up 2% from 2009 and an increase of 23% from 2008.” But 2011, they said, “could be even worse.” As the government ponders penalties, the banks and lenders continue to seek a scapegoat. In a twist of logic comparable to the man who kills his parents and then pleads for mercy as an orphan, the big banks, whose greed and reckless lending brought us the crash of 2008-2009, are now attempting to wiggle out of responsibility by casting themselves as the victims, not the home buyers who were duped. On March 3, 2011 the New York Times reported that attorneys for the banks claim that helping homeowners facing default is “like taking money that should be paid to the Treasury and using it for an unappropriated social program.” And the Bank of America, the nation’s largest mortgage servicer, “is already readying what will be among the industry’s main arguments: that it is unfair to reward homeowners who are delinquent or underwater but cannot point to specific errors in their case” These statements echo the rant of financial commentator Rick Santelli who blamed the victims. Back in 2009 on CNBC ‘ he charged that bailing out sub-prime mortgage holders was “…promoting bad behavior.” He added, “reward those who can carry the water not those who drink the water.” Other critics of homebuyers have likened a bailout to raising taxes on the whole population to cover the losses of gamblers in Las Vegas. Shouldn’t home buyers have known, say the accusers, that they couldn’t afford a $400,000 home on a family income of $50,000 — $60,000? Some did know. A predatory bank tried to convince Alex and his wife that they could afford a $330,000 home on their graduate student stipends. They resisted and purchased a starter home for $120,000. But the vast majority of sub-prime buyers were persuaded to make purchases well beyond their means by unscrupulous lenders who would stop at nothing to close a deal. These buyers were putty in the hands of the “tin men” (and women). “Tin men” is a nickname, for fast-talking unethical salesmen known for their skill at selling ice cubes to Eskimos. At one time they confined their activities mostly to selling home items door to door or through seductive cold-call sales pitches, but now they can be found in many industries — including real estate sales and mortgage lending. The original tin men sold aluminum siding — thus the moniker — and they are brilliantly portrayed in the 1987 film Tin Men starring Danny DeVito and Richard Dreyfuss “Tin men,” as we shall soon see, played a major role in the sub-prime mortgage debacle. First, the back story. I initially met real-life tin men when I worked as an encyclopedia salesman during my college years. Tin men from different industries drifted in and out of the office where I worked. Their pitches and “cons” were hilarious. A number of the classic examples are in the film. Here’s a simple one that I love: A salesman is selling aluminum siding to a couple. He surreptitiously drops a ten dollar bill on the floor out of the couple’s sight. Then he says, “Excuse me a second,” reaches down to the floor, and comes up with the bill. “Oh, this must be yours,” he says to the couple, handing it to them. Since they know he could just as well have slipped it into his pocket, the salesman’s act of “honesty” inspires the customers’ confidence — a message of trust that gives a big boost to closing the deal The tin men loved to exchange stories of their stings. Like vaudevillians, they had names for their routines. In “Inside-Outside Man” a salesman shows up for an appointment; he could be selling siding, a raised dormer, or any home product. He arrives at the family’s house in a stretch limo. When the husband and wife open the door they look surprised to see the limo. The salesman explains: “The Vice President of the company is in town for a sales conference and wanted to sit in on my presentation. Would you mind?” Of course, they don’t mind at all; they’re flattered. The “Vice President” emerges from the limo. He is dressed to perfection and casts an imposing presence — a central casting senior executive. At one point in the “pitch” the salesman shows the family a much more expensive product than they had originally looked at, and says “This is very expensive and the other product is almost as good.” The “Vice President” jumps in and says: “Give it to them for the same price.” The salesman shoots back, “But we’ll lose money on the deal.” The Vice President responds, “That’s all right. ‘Faker’ Industries will pay for it as part of our promotion. Give it to them” The salesman looks stunned. Are you surprised that this quickly becomes a done deal? Frank, the manager of the encyclopedia office, told me the premier tin man story “My People.” Frank once worked for a carpet company that advertised “two rooms of carpeting for $79.” There was no such product. The “bait and switch men,” who got easy entry into homes with the advertised offer, were supposed to switch-sell to higher priced carpeting. But one time, the company got stuck with lots of the ad-priced orders. So they sent in the next tier of tin men — the “conversion salesmen” — to convert the $79 contracts to higher ones. The best conversion man in the business was known as “Harry the Snake.” He closed a more expensive contract every time. Frank couldn’t figure out how he did it. He asked the Snake if he could go out with him on one of his pitches. The Snake agreed. “Meet me on Church Avenue and Ocean Parkway tomorrow morning at 9 AM. Wear overalls and bring some tools and a tape measure. When we get into the home just start measuring the floors. Oh, and by the way, I’m Tony and you’re Vito.” (The family they were visiting was Italian. On other days they might be Morris and Abe or Juan and Jose.) Frank and the Snake had no trouble getting into the home in Bensonhurst Brooklyn the next morning. The lady of the house was thrilled that the carpet installers were actually there so soon after the incredible sale. Once inside, “Tony” and “Vito” started measuring. Then at one point “Tony” (Harry the Snake) headed for the door and said, “C’mon, Vito, let’s get outta here. I can’t do this to a nice Italian family.” The puzzled woman asked, “What’s the matter?” Tony answered, “When they sold you this carpeting, they showed you the junk; they didn’t show you the good stuff.” He then pulled out a swatch of carpeting from his pocket. “This is the junk they sold you.” He pulled on it and it disintegrated. Then he showed her a swatch of the “good stuff.” Again, no surprise that the higher priced deal was soon closed. Let’s fast forward to the sub-prime mortgage orgy. “Harry the Snake” must have felt that he died and woke up in tin man’s heaven. Now he’s a mortgage broker at a respected bank — one of the icons of corporate America. And he’s the inside man — suit, tie, and title: VP, Director of Finance. Let’s listen in as the Snake talks to Mr. and Mrs. Jones. The Joneses neighbors, the Smiths, whose income is the same as theirs, about $52,000 a year, just bought a house financed by Harry the Snake’s bank. They were surprised; The Joneses didn’t think their neighbors could afford a house, but there were the Smiths packing and getting ready to move. Can Mr. and Mrs. Jones afford to do the same thing? The Snake assures them they can. “Yes, indeed, you can afford to buy this $380, 000 house.” (The finance industry’s rule of thumb is that the price you can afford is about 2.5-3 times gross income). He tells them that home values will surely keep going up and that the word “down” will soon be gone from our vocabulary. And he assures them that his distinguished bank will put its money where its exuberance is and finance the deal. The Snake shows them that the figures work — with virtually no down payment and just interest only payments for the first three years: “And in three years when payments on the principle kick in and the adjustable rate mortgage (ARM) will be recalibrated to interest rates at that time [and as much as two percentage points higher for buyers like the Joneses with credit scores below 620], that won’t be a problem. The value of the house will rise so much, and probably your income as well, that you will be able to raise money from the increased equity to cover all the costs.” How could they resist this opportunity to latch on to the American dream, especially when it is backed by the full faith and credit of one of America’s great banks — and Harry the Snake? When you are tempted to point the “j’accuse” finger at “irresponsible” sub-prime homebuyers think about all the Joneses across America and how they were shamelessly victimized by the army of Harry the Snakes — and their banks and lenders who cheered them on. NOTE: This is a revision and update of a blog that I wrote in 2009 at UPI’s R&S section.

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Rakim Brooks: Obama and the King Who Knelt in the Snow

February 9, 2011

On Monday, President Obama spoke to the Chamber of Commerce, the leading business-interest lobby in the United States. The occasion marked the President’s newest attempt to rally business to solve America’s short and long-term economic problems. Unfortunately, it also served to remind the American people that corporate business, not the American people, control the country’s destiny. Mr. Obama’s presentation was civil, even buoyant, but that did nothing to hide the tension between him and the Chamber. Mr. Obama stood in front of men and women who had fought health care reform viciously, spent millions successfully advertising against Democratic incumbents in the 2010 elections, opposed the Employee Free Choice Act, and who now were refusing to spend billions of dollars being held in reserve. He was well aware that many in the room wanted, to quote Rush Limbaugh his Presidency to fail. Yet, rather than “take on the special interests” as he had promised to do so many times in his 2008 campaign and presidency, he played the political version of Mr. Rogers. “I’m here in the interest of being more neighborly,” Mr. Obama told the Chamber. “Maybe if we would have brought over a fruit cake when I first moved in, we would have gotten off on a better foot. But I’m going to make it up.” His speech underscored his enduring desire to work with US businesses to get America back on the right track: “If there is a reason you don’t believe that this is the time to get off the sidelines — to hire and invest — I want to know about it. I want to fix it.” The President stressed that private business would lead America out of the recession and back to global prominence. And in all of this the U.S. government and the Obama Administration would act as a sidekick. It was disturbing to watch Mr. Obama strain to buddy-up with his political enemies, not because it is likely to prove ineffective, but because it made the leader of the free world seem servile and insignificant. With each half-hearted punch line, Mr. Obama became more and more like the king who knelt in the snow. The scene was Europe at the turn of the first century. Pope Gregory VII had attempted to strip Emperor Henry IV of his sovereign right to appoint the clergymen that served the Holy Roman Empire. When the Emperor resisted and, in a show of ultimate defiance, challenged Gregory’s legitimacy as Holy Pontiff, the Pope excommunicated the Emperor, thus severing him from the Holy Church and all of Christendom. The events that followed were pure political spectacle. After a series of diplomatic scuffles, the Emperor chose to apologize to the Pope. And in the most dramatic display of servility, he marched to meet the Pope in Italy. But when he arrived, the Pope refused to grant him entry. The Emperor, determined to regain favor, then stood in the snow, barefoot, praying for forgiveness. For three days, the Emperor was given no quarter or sustenance. Still, he continued to pray without knowing whether his prayers would be heard; the Pope had previously declared the excommunication irrevocable. On the third day, Pope Gregory relented, and the Emperor was received back into the Christian family. But the point had been made. What came to be known as the Investiture Controversy demonstrated the Papacy’s power to kings throughout Europe and, for centuries, sovereign monarchs cowed before the Pope and the Church. I first heard this story in high school, and I’ve never forgotten it because my adolescent mind could not imagine any Head of State, even of the smallest nation, kneeling before a non-state authority. It just served to remind me how different things were now. No President would ever be caught in such a position, I thought. And then I read President Obama’s speech and could only wonder, “How long has the President been kneeling?” Mr. Obama’s remarks suggest that he might have been in this position for a very long time – we are just now beginning to take notice. But what’s worse is that Mr. Obama’s kneeling reveals that American democracy is imperiled. A democratic nation should be ruled by the many, not the few. Yet, the Chamber of Commerce is attempting to determine the economic, and thus political, fate of our nation. Like religious authorities of the first millennium, business has asserted its dominance over the affairs of sovereign men. What is to be done? The responses of both the political Right and Left have been unimpressive. The political right would have us believe that the President has been hostile to business. If he would only be friendlier to business interests and stop confusing them with unnecessary regulations, the economy would jump-start. But the truth is that President Obama has been more than neighborly, to the tune of $700 billion. He’s promised more in his State of the Union, saying the U.S. would focus on infrastructure and technology spending. All this and the Right still thinks that he’s hostile? They must be taking that fruitcake joke seriously! If the Right thinks Mr. Obama has been too hostile, the Left believes he’s been too friendly. They look at his Cabinet and Staff and hold their noses. His inner circle reeks of Wall Street types and centrists like Larry Summers, Timothy Geithner, and new White House Chief of Staff William Daley. Too much money and too little concern for the disadvantaged, critics shout. Cornel West has gone so far as to pose the most existential of questions to the President: “How deep is your love for poor and working people?” The problem with this question is that it could be turned right around and posed to the American Left. This is not to say that Mr. Obama has not clung to the center, but did he have a choice? After 2008, the legions of young, independent, and African American voters that helped Mr. Obama secure the presidency abandoned the Democrats in the midterm elections. When he needed them most, they didn’t turn up to the ballot box and, thus, we saw Democratic majorities shredded in both the House and the Senate. It’s no surprise then that the President compromised with Republicans on extending tax cuts for the rich. He didn’t have the legislative support to do otherwise. But he did secure unemployment benefits for over 14 million Americans who need them. Is that not love? And, if that’s not enough, let’s remember, if raising one child takes a village, it takes more than one man to raise a nation. In short, the Left would rather chastise President Obama than help him to his feet, while the Right would prefer to ask him to lie down flat on his belly and grovel (as though that would help). None of this serves the interests of the American people. What the Right and Left seem to be missing is that this isn’t about one man. The way the Chamber and corporate business interests approach the President speaks volumes about how they treat each of us. It is no wonder then that, as Mr. Obama is being cowed, millions of Americans are unemployed, millions more are underemployed, and states are either going into the red, forcing their citizens to do without vital services, or both. The Nation’s fate is tied to its President’s, and as long as he is kept kneeling, America will not move forward. Corporate business interests have had a strangle hold on Washington for many decades now. And the President’s kneeling reveals that there is no easy way to break this corporate death grip. One thing is clear, however: It is in our interest – Left, Right and, yes, Tea Party – to form a collective bulwark against the Chamber and its attempts to determine our political futures, to tell the Chamber that a free people will not bend before the will of business as man once bent before the will of God. Because, if we fail to stand together, we’ll all be left with cold (wet) feet.

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Nelson Davis: Martin Luther King Day Is for Work

January 20, 2011

I’m writing this on Martin Luther King Day which is a widely celebrated holiday but my office is open for business today. Like many national holidays, ML King Day is anticipated by many as a day to sleep in a bit, putter around the house, perhaps a parade or just hanging out. Obviously, I feel differently about it. To me, Dr. King and his legacy are about opportunity and dreams. My dream was to own a business. When I was about 12 years old, I met the then Reverend King when he came to speak at our church in Niagara Falls New York. He was then a preacher on tour to raise funds to help support the nascent Civil Rights movement. You see, I was born in Andalusia Alabama which is near Montgomery where the MLK era in the civil rights movement began. My Grandmother lived near the bus line where the famous 1955 boycott led by Reverend King began. Over the years, I’ve had the pleasure of meeting many of the players in that movement. They include Rosa Parks who’s refusal to move to the back of the bus sparked the bus boycott along with Coretta Scott King and other members of the King family. Since I launched my TV production business in 1988, I’ve celebrated the life of Dr. King by being open for business because I believe that he and his fellow activists put themselves in harm’s way so that I could lead a life rich in opportunities. They didn’t face police batons, dogs and fire hoses so that I could sleep in and go to the mall. My professional life has been enabled by dreams and if I had to choose one Dr. King speech to chisel in stone, it would be the “I have a dream” speech which he first delivered in 1963. Most of the people he stood before at our church that day in the late 1950s either worked for small businesses or owned them. America was hitting its peak as the world’s dominant industrial giant but small town residents and to some degree black communities knew a different world. It was much more about self reliance and businesses with less than 500 employees; in other words, small. I don’t remember specifically what he said that day but I was glad to be there. It took some convincing by a family member to get me to remain after the sermon to meet the travelling preacher. After all, for a twelve year old boy, getting to the playground for a baseball game had a lot of importance! We don’t always know when we are living historic moments. I’m confident that Reverend King had no idea that becoming the pastor at the Dexter Avenue Baptist church in Montgomery would change his life and the course of American history. As a result of his consciousness altering leadership, the halls of corporate America became a clearer pathway for aspiring blacks. Farming and other small businesses faded into the background as more employment opportunities became available. Many black owned businesses had been created simply because the owners operated in a segregated world. My sister was among the marchers at the Lincoln Memorial that day in 1963 when Martin Luther King uttered the words “I say to you today, my friends, that in spite of the difficulties and frustrations of the moment, I still have a dream. It is a dream deeply rooted in the American Dream.” Though he conveyed many messages during his tragically brief time at the visible edge of a true movement in America, the one that is permanently embedded with me is that we can all live our dreams. So many people are afraid to live their dreams, to walk into them boldly. How many of us look up to see that someone else is living the life that they want? No doubt Dr. King had to manage and reject his own fears and trepidations to do what he did. Just about every business owner can easily identify with that! So, each year when media throws a spotlight on the life and legacy of Martin Luther King around the national holiday, I celebrate self reliance, the dream of unity and the possibilities yet to be realized. A dear friend of mine, John Hope Bryant, founder of Operation Hope often speaks of the Civil Rights movement having morphed into what he calls the “Silver Rights Movement.” Business and commerce are at the center of that thinking. I’m privileged to have a business and since Martin Luther King’s shoulders are one of the many that I stand on, I’m open for business on his day. Check out http://www.makingittv.com for more blogs and resources!

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Bianca Jagger: Let’s Save the Real Avatar

August 10, 2010

The Survival of the Kondh Tribe is Hanging in the Balance For centuries, tribal and indigenous people have been victims of exploitation, first at the hands of colonial powers and now, at the hands of powerful businessmen representing mining, oil, gas and logging companies. Their policies are implemented “in the name of progress and development” and their mantra is “maximum production” and “minimum cost.” The struggle of indigenous and tribal people versus corporations and states, over land rich in natural resources, is a global issue. The Kondh tribe’s battle to save their livelihood against British based mining company, Vedanta Resources plc, illustrates the struggle for survival that indigenous and tribal people are facing throughout the world. On July 28, I attended Vedanta’s shareholders’ meeting in London. At this year’s AGM the company’s human rights and environmental record was brought under public scrutiny by British Member of Parliament, Martin Horwood, and NGOs including Amnesty International, ActionAid, the London Mining Network, Banktrack and Survival International. During the meeting I read an impassioned plea on behalf of the Niyamgiri community to the Vedanta board, and to shareholders. I also delivered an Amnesty International petition signed by 31, 428 people urging Vedanta to halt a planned mine and refinery expansion in Orissa, India until the Dongria Kondh are fully informed and consulted. Vedanta plans to mine for bauxite – the base raw material in the production of aluminium – in the Niyamgiri Mountain, which is considered sacred by the Dongria Kondh, an endangered tribal group recognised by the Indian government as “a people requiring particular protection.” The lush forests of Niyamgiri Mountain are a pristine ecosystem of great conservation significance. The Kondh have lived in Niyamgiri long before there was a country called India or a state called Orissa. They consider the mountain to be a living God and claim that their spiritual, cultural and economic wellbeing are embedded deep within it. The proposed mine will violate the community’s rights to water, food, and health; it will displace and endanger the survival of 15,000 Kondh. For the past two years, the Bianca Jagger Human Rights Foundation (BJHRF) has spearheaded a campaign in support of the Kondh, denouncing the activities of Vedanta. In April this year I travelled to Orissa representing the BJHRF with ActionAid to meet with the Kondh communities. At every stage of my trip, at every village I visited, the communities and their leaders were eager to tell me their tragic side of the story. (Read the full story about my trip to Orissa in the Huffington Post) The messages the Dongria Kondh villagers asked me to carry back could not have been clearer: “No amount of financial reward or relocation packages can compensate for the loss of our livelihood and our sacred land”. “Please tell Vedanta that the Kondh do not want the mine to be built.” At the AGM I asked Executive Chair of Vedanta, Anil Agarwal and the Vedanta board four questions on behalf of the Kondh: 1. The conveyer belt construction has resulted in two perennial streams that we used to cultivate vegetable, cereals, pulses round the year, drying up. Tell us what will happen to the rivers and streams when Niyamgiri is mined? 2. Why are people not being compensated for the land that Vedanta has acquired forcefully? (example: Jagannathpur, Tudra Majhi, Sambru Majhi and Mala Dei villages) 3. We are suffering from TB and skin diseases because of pollution caused by your refinery. Vedanta claims to provide health care that we have not seen. Where is the healthcare that you talk about and that our people now need so desperately? 4. For generations we depended on sustainable livelihoods drawn from Niyamgiri. You are trying to destroying that. Your income generating initiatives like strawberry cultivation, leaf plate stitching using machine and phenol product have failed. You have failed to keep your promise and provide job to local tribal youths. What development do you mean – Your Profit at Our Cost? Mr Agarwal, and Non-Executive Director, Naresh Chandra, failed to address the Kondh’s questions, and responded instead with a deceptive argument. Mr Agarwal declared, Vedanta is “more concerned than anyone” about the welfare of the Kondh. He argued that malnutrition rates have fallen, and poverty has decreased since Vedanta opened its aluminium refinery in Lanjigarh, in 2006, calling it Vedanta’s “biggest achievement.” In fact, the Lanjigarh refinery has brought nothing but poverty, disease and suffering to the Kondh. The refinery has created two red mud ponds the size of several football pitches near Rengopali into which bauxite ore is washed, along with chemicals, causing toxic fumes and polluted dust. As a result, diseases affecting peoples’ lungs and eyes have become widespread: 13 people have died from TB in the last two years and 200 to 250 cattle and goats have perished. Vedanta claims that they have adequately compensated the Kondh for all land acquired and that they cannot be held responsible for the displacement of the Kondh communities. Mr Chandra argued that people were being forced out of their villages due to poverty and unemployment before Vedanta began its operations. This is in stark contrast to the testimonies given to me by the Kondh. They told me that in 2003, Vedanta had forced the community of Kinari to vacate their village, coercing farmers into selling their land for far below its market value. The few people who had titles to their land or records given by the revenue department (TATA) were promised 100,000 rupees (US $2,000) per acre. Those without titles were promised a one off settlement of 50,000 rupees (US $1,000) to give all their rights away. Worse still, those willing to give up their homes were promised up to 1,000 rupees (US $ 21). In contravention of the 5th and 6th Schedules of the Constitution of India, hundreds of people have been displaced. The top of Niyamgiri mountain, where Vedanta proposes to mine bauxite to feed the refinery that is currently poisoning the communities around Bandhaguda and Rengopali, is the source of two rivers and thirty six springs. The streams that run through the hills are the only source of water for the Kondh. The Central Empowered Committee to the Supreme Court anticipates “adverse effects of mining will affect not only bio-diversity but availability of water for the local people.” The mine will also cause increased erosion and pollution of the water systems, resulting in deteriorated water quality. In an attempt to justify Vedanta’s policies, Mr Agarwal claimed “We are bringing development to the most backward part of India…Vedanta has a long standing commitment to sustainability… an integral part of managing our operation is a commitment to health, safety, the environment and our communities.” I cannot fathom how a company that refuses to acknowledge the harmful impacts of its activities on tribal people, communities and the environment, can have the audacity to claim a commitment to sustainable development. Vedanta continues to deny all allegations of human rights violations and environmental degradation. The day before the AGM, Mr Mehta, Vedanta’s Chief Executive, refuted all claims made by human rights groups, arguing in the Financial Times, “There is no shred of truth here.” At the AGM, Mr Chandra suggested that “NGO’s, human rights and environmental organisations have based their allegations against Vedanta on misguided reports.” I asked him how twelve independent investigations, including those conducted by the UK National Contact Point for the OECD Guidelines for Multinational Enterprises, the Wildlife Institute of India, the Central Empowerment Committee to the Supreme Court, the State Pollution Control Board of Orissa, the Norwegian Council of Ethics, the Public Interest Research Centre (PIRC), the Experts in Responsible Investment Solutions (EIRIS), India’s Ministry of Environment and Forests, the India Resource Centre, Social Watch, Mines and Communities and Amnesty International, could all have found Vedanta to be violating human rights and labour rights, causing environmental damage and contravening OECD guidelines. According to the Norwegian Council of Ethics report, the company has also been accused of “repeated breaches of national environmental legislation, illegal production expansions, irresponsible handling of hazardous waste, violations against tribal peoples, deplorable wages, and dangerous working conditions in the mines and factories.” My question, like so many others at the AGM, went unanswered. Vedanta’s public relations efforts are a relentless attempt to mislead the public, with endless promises of new jobs, new roads and new facilities for local people. A glaring example is the billboard I saw on arrival at Biju Patnaik Airport, Bhubaneswar, Orissa: “Mining happiness for the people of Orissa – Vedanta.” What cruel irony. It should read, “Undermining human rights for the people of Orissa.” According to the Times of India, India is the second largest growing economy, it is the second most populated country in the world. During the last decade, India’s GDP has remained at above six percent, however, during that period the country’s Human Development Index has not improved. If India is going to assume its status with the other BRIC countries as an economic power-house, its model of ‘development’ needs to be reassessed. Development must be sustainable; it must take into account the rights and needs of local communities, indigenous and tribal people, and should benefit all sectors of society, without endangering human life or the environment. The pertinent questions of development, displacement, and livelihood, have not been at the heart of the policies implemented by the Indian states The Kondh are just one of the many tribes that have fallen victim to the so-called ‘development’ promoted by multinational companies in India. As Arundhati Roy writes, “structural adjustment, privatization and huge infrastructural projects like dams, power plants and mines have resulted in the displacement of hundreds of thousands of people.” India has one of the largest populations of internally displaced people in the world, the majority of which are Adivasis. On World Indigenous People’s Day, August 9, Adivasis from eight states protested in Delhi against the hunger, displacement and violations of rights, which have left them marginalized and disempowered. It is up to shareholders, to hold companies to account. Some prominent members of the investment community have shown their condemnation of Vedanta’s human rights and environmental record by disinvesting. Dutch pension manager PGGM sold their £11m stake in the FTSE 100 company in July, stating that its “intensive effort” to urge the company to devote greater attention to human rights and the environment had failed to have the desired effect.” This follows pull-outs on ethical grounds earlier this year by the Joseph Rowntree Charitable Trust (£1.9 million) and the Church of England (£3.8 million). Edinburgh-based investment management company Martin Currie sold its £2.3million stake in Vedanta in 2008 on ethical grounds. In 2007 the Norway pension fund withdrew its investment of $15.6 mi based on the findings of its ethics committee, which stated: “Allegations levelled at Vedanta regarding environmental damage and complicity in human rights violations, including abuse and forced eviction of tribal people, are well founded.” At the AGM, a representative from the Railways Pension Fund, said, “Vedanta could make major improvements in terms of its investor briefing sessions.” Steve Waygood, representing blue-chip City investor, Aviva voiced concern regarding Vedanta’s lack of respect for OECD guidelines, stating, Vedanta has “not engaged in the process [beside] the most cursory reply.” The Vedanta board’s response was that they were not “answerable to the British government”. Aviva voted against three resolutions at Vedanta’s meeting, regarding the annual report and accounts, the remuneration report and the reappointment of the board member who chairs the health, safety and environment committee. In an interview with Amnesty International after the meeting, Mr Waygood called the AGM “a symptom of a much deeper problem, which is that for a number of years the company hasn’t engaged with stakeholders, including minority shareholders.” He said it was “unacceptable” for Vedanta to treat the OECD guidelines with the disdain they have demonstrated. I am surprised that share-tipsters continue to recommend the company as an investment. Regrettably, many shareholders, content to read about the share price, remain silent about Vedanta’s impact on local communities. I will continue to campaign in support of the Dongria Kondh until their voices are heard. I appeal to Vedanta shareholders to take into account the plight of the Dongria Kondh, and the human rights and environmental consequences of the proposed bauxite mine, and to reconsider their investments .I urge investors to follow the example of those who have divested from Vedanta, making this year a landmark year for justice, human rights and the environment. Please sign my letter to the Chief Minister of Orissa, Naveen Patnaik, urging him to refuse permission for the mine at Bianca Jagger Kondh Campaign on Facebook For more information you can read my other articles about the Kondh: Undermining human rights The Battle with Vedanta is not over yet The Battle for Niyamgiri

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Bianca Jagger: Let’s Save the Real Avatar

August 10, 2010

The Survival of the Kondh Tribe is Hanging in the Balance For centuries, tribal and indigenous people have been victims of exploitation, first at the hands of colonial powers and now, at the hands of powerful businessmen representing mining, oil, gas and logging companies. Their policies are implemented “in the name of progress and development” and their mantra is “maximum production” and “minimum cost.” The struggle of indigenous and tribal people versus corporations and states, over land rich in natural resources, is a global issue. The Kondh tribe’s battle to save their livelihood against British based mining company, Vedanta Resources plc, illustrates the struggle for survival that indigenous and tribal people are facing throughout the world. On July 28, I attended Vedanta’s shareholders’ meeting in London. At this year’s AGM the company’s human rights and environmental record was brought under public scrutiny by British Member of Parliament, Martin Horwood, and NGOs including Amnesty International, ActionAid, the London Mining Network, Banktrack and Survival International. During the meeting I read an impassioned plea on behalf of the Niyamgiri community to the Vedanta board, and to shareholders. I also delivered an Amnesty International petition signed by 31, 428 people urging Vedanta to halt a planned mine and refinery expansion in Orissa, India until the Dongria Kondh are fully informed and consulted. Vedanta plans to mine for bauxite – the base raw material in the production of aluminium – in the Niyamgiri Mountain, which is considered sacred by the Dongria Kondh, an endangered tribal group recognised by the Indian government as “a people requiring particular protection.” The lush forests of Niyamgiri Mountain are a pristine ecosystem of great conservation significance. The Kondh have lived in Niyamgiri long before there was a country called India or a state called Orissa. They consider the mountain to be a living God and claim that their spiritual, cultural and economic wellbeing are embedded deep within it. The proposed mine will violate the community’s rights to water, food, and health; it will displace and endanger the survival of 15,000 Kondh. For the past two years, the Bianca Jagger Human Rights Foundation (BJHRF) has spearheaded a campaign in support of the Kondh, denouncing the activities of Vedanta. In April this year I travelled to Orissa representing the BJHRF with ActionAid to meet with the Kondh communities. At every stage of my trip, at every village I visited, the communities and their leaders were eager to tell me their tragic side of the story. (Read the full story about my trip to Orissa in the Huffington Post) The messages the Dongria Kondh villagers asked me to carry back could not have been clearer: “No amount of financial reward or relocation packages can compensate for the loss of our livelihood and our sacred land”. “Please tell Vedanta that the Kondh do not want the mine to be built.” At the AGM I asked Executive Chair of Vedanta, Anil Agarwal and the Vedanta board four questions on behalf of the Kondh: 1. The conveyer belt construction has resulted in two perennial streams that we used to cultivate vegetable, cereals, pulses round the year, drying up. Tell us what will happen to the rivers and streams when Niyamgiri is mined? 2. Why are people not being compensated for the land that Vedanta has acquired forcefully? (example: Jagannathpur, Tudra Majhi, Sambru Majhi and Mala Dei villages) 3. We are suffering from TB and skin diseases because of pollution caused by your refinery. Vedanta claims to provide health care that we have not seen. Where is the healthcare that you talk about and that our people now need so desperately? 4. For generations we depended on sustainable livelihoods drawn from Niyamgiri. You are trying to destroying that. Your income generating initiatives like strawberry cultivation, leaf plate stitching using machine and phenol product have failed. You have failed to keep your promise and provide job to local tribal youths. What development do you mean – Your Profit at Our Cost? Mr Agarwal, and Non-Executive Director, Naresh Chandra, failed to address the Kondh’s questions, and responded instead with a deceptive argument. Mr Agarwal declared, Vedanta is “more concerned than anyone” about the welfare of the Kondh. He argued that malnutrition rates have fallen, and poverty has decreased since Vedanta opened its aluminium refinery in Lanjigarh, in 2006, calling it Vedanta’s “biggest achievement.” In fact, the Lanjigarh refinery has brought nothing but poverty, disease and suffering to the Kondh. The refinery has created two red mud ponds the size of several football pitches near Rengopali into which bauxite ore is washed, along with chemicals, causing toxic fumes and polluted dust. As a result, diseases affecting peoples’ lungs and eyes have become widespread: 13 people have died from TB in the last two years and 200 to 250 cattle and goats have perished. Vedanta claims that they have adequately compensated the Kondh for all land acquired and that they cannot be held responsible for the displacement of the Kondh communities. Mr Chandra argued that people were being forced out of their villages due to poverty and unemployment before Vedanta began its operations. This is in stark contrast to the testimonies given to me by the Kondh. They told me that in 2003, Vedanta had forced the community of Kinari to vacate their village, coercing farmers into selling their land for far below its market value. The few people who had titles to their land or records given by the revenue department (TATA) were promised 100,000 rupees (US $2,000) per acre. Those without titles were promised a one off settlement of 50,000 rupees (US $1,000) to give all their rights away. Worse still, those willing to give up their homes were promised up to 1,000 rupees (US $ 21). In contravention of the 5th and 6th Schedules of the Constitution of India, hundreds of people have been displaced. The top of Niyamgiri mountain, where Vedanta proposes to mine bauxite to feed the refinery that is currently poisoning the communities around Bandhaguda and Rengopali, is the source of two rivers and thirty six springs. The streams that run through the hills are the only source of water for the Kondh. The Central Empowered Committee to the Supreme Court anticipates “adverse effects of mining will affect not only bio-diversity but availability of water for the local people.” The mine will also cause increased erosion and pollution of the water systems, resulting in deteriorated water quality. In an attempt to justify Vedanta’s policies, Mr Agarwal claimed “We are bringing development to the most backward part of India…Vedanta has a long standing commitment to sustainability… an integral part of managing our operation is a commitment to health, safety, the environment and our communities.” I cannot fathom how a company that refuses to acknowledge the harmful impacts of its activities on tribal people, communities and the environment, can have the audacity to claim a commitment to sustainable development. Vedanta continues to deny all allegations of human rights violations and environmental degradation. The day before the AGM, Mr Mehta, Vedanta’s Chief Executive, refuted all claims made by human rights groups, arguing in the Financial Times, “There is no shred of truth here.” At the AGM, Mr Chandra suggested that “NGO’s, human rights and environmental organisations have based their allegations against Vedanta on misguided reports.” I asked him how twelve independent investigations, including those conducted by the UK National Contact Point for the OECD Guidelines for Multinational Enterprises, the Wildlife Institute of India, the Central Empowerment Committee to the Supreme Court, the State Pollution Control Board of Orissa, the Norwegian Council of Ethics, the Public Interest Research Centre (PIRC), the Experts in Responsible Investment Solutions (EIRIS), India’s Ministry of Environment and Forests, the India Resource Centre, Social Watch, Mines and Communities and Amnesty International, could all have found Vedanta to be violating human rights and labour rights, causing environmental damage and contravening OECD guidelines. According to the Norwegian Council of Ethics report, the company has also been accused of “repeated breaches of national environmental legislation, illegal production expansions, irresponsible handling of hazardous waste, violations against tribal peoples, deplorable wages, and dangerous working conditions in the mines and factories.” My question, like so many others at the AGM, went unanswered. Vedanta’s public relations efforts are a relentless attempt to mislead the public, with endless promises of new jobs, new roads and new facilities for local people. A glaring example is the billboard I saw on arrival at Biju Patnaik Airport, Bhubaneswar, Orissa: “Mining happiness for the people of Orissa – Vedanta.” What cruel irony. It should read, “Undermining human rights for the people of Orissa.” According to the Times of India, India is the second largest growing economy, it is the second most populated country in the world. During the last decade, India’s GDP has remained at above six percent, however, during that period the country’s Human Development Index has not improved. If India is going to assume its status with the other BRIC countries as an economic power-house, its model of ‘development’ needs to be reassessed. Development must be sustainable; it must take into account the rights and needs of local communities, indigenous and tribal people, and should benefit all sectors of society, without endangering human life or the environment. The pertinent questions of development, displacement, and livelihood, have not been at the heart of the policies implemented by the Indian states The Kondh are just one of the many tribes that have fallen victim to the so-called ‘development’ promoted by multinational companies in India. As Arundhati Roy writes, “structural adjustment, privatization and huge infrastructural projects like dams, power plants and mines have resulted in the displacement of hundreds of thousands of people.” India has one of the largest populations of internally displaced people in the world, the majority of which are Adivasis. On World Indigenous People’s Day, August 9, Adivasis from eight states protested in Delhi against the hunger, displacement and violations of rights, which have left them marginalized and disempowered. It is up to shareholders, to hold companies to account. Some prominent members of the investment community have shown their condemnation of Vedanta’s human rights and environmental record by disinvesting. Dutch pension manager PGGM sold their £11m stake in the FTSE 100 company in July, stating that its “intensive effort” to urge the company to devote greater attention to human rights and the environment had failed to have the desired effect.” This follows pull-outs on ethical grounds earlier this year by the Joseph Rowntree Charitable Trust (£1.9 million) and the Church of England (£3.8 million). Edinburgh-based investment management company Martin Currie sold its £2.3million stake in Vedanta in 2008 on ethical grounds. In 2007 the Norway pension fund withdrew its investment of $15.6 mi based on the findings of its ethics committee, which stated: “Allegations levelled at Vedanta regarding environmental damage and complicity in human rights violations, including abuse and forced eviction of tribal people, are well founded.” At the AGM, a representative from the Railways Pension Fund, said, “Vedanta could make major improvements in terms of its investor briefing sessions.” Steve Waygood, representing blue-chip City investor, Aviva voiced concern regarding Vedanta’s lack of respect for OECD guidelines, stating, Vedanta has “not engaged in the process [beside] the most cursory reply.” The Vedanta board’s response was that they were not “answerable to the British government”. Aviva voted against three resolutions at Vedanta’s meeting, regarding the annual report and accounts, the remuneration report and the reappointment of the board member who chairs the health, safety and environment committee. In an interview with Amnesty International after the meeting, Mr Waygood called the AGM “a symptom of a much deeper problem, which is that for a number of years the company hasn’t engaged with stakeholders, including minority shareholders.” He said it was “unacceptable” for Vedanta to treat the OECD guidelines with the disdain they have demonstrated. I am surprised that share-tipsters continue to recommend the company as an investment. Regrettably, many shareholders, content to read about the share price, remain silent about Vedanta’s impact on local communities. I will continue to campaign in support of the Dongria Kondh until their voices are heard. I appeal to Vedanta shareholders to take into account the plight of the Dongria Kondh, and the human rights and environmental consequences of the proposed bauxite mine, and to reconsider their investments .I urge investors to follow the example of those who have divested from Vedanta, making this year a landmark year for justice, human rights and the environment. Please sign my letter to the Chief Minister of Orissa, Naveen Patnaik, urging him to refuse permission for the mine at Bianca Jagger Kondh Campaign on Facebook For more information you can read my other articles about the Kondh: Undermining human rights The Battle with Vedanta is not over yet The Battle for Niyamgiri

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Raul Castro: Cuba Government Will Reduce Economic Role

August 1, 2010

HAVANA — Raul Castro said Sunday that his government will scale back controls on small businesses, lay off unnecessary workers and allow more self-employment – significant steps in a country where the state dominates nearly every facet of the economy. Cuba’s president, however, squashed notions of a sweeping overhaul to the country’s communist economic system in response to the financial crisis it faces. “With experience accumulated in more than 55 years of revolutionary struggle, it doesn’t seem like we’re doing too badly, nor that desperation or frustration have been our companions along the way,” the president said. Castro spoke before parliament, which opened its biannual session without Fidel Castro, who has made a slew of recent public appearances of late but missed another chance to share a major public stage with his younger brother. Instead, lawmakers got Raul, who said authorities will “update the Cuban economic model,” suggesting reforms could be on the horizon. Cuban officials plan to reduce state control of small businesses, authorize more Cubans to become self-employed and build a new tax structure that will compel state employees to contribute more. About 95 percent of all Cubans currently work for the government and Castro has suggested that as many as one in five state employees are redundant. He promised job cuts, calling for “the reduction of work forces that are considerably bloated in the state sector.” Castro said those left out of work would be retrained or reassigned so as not to stay unemployed, but also said warned that few sectors would be immune to job-cuts. While he offered no specifics, his comments on economic and employment reform could mean a lot in Cuba, where many had hoped the government of Raul Castro could embrace small economic openings after he took power from his brother, first temporarily, then permanently, in July 2006. The president’s announcements were similar to comments before the session began by Economy Minister Marino Murillo, who spoke to reporters about a pilot program that has turned some state barber shops over to their employees and let them set their own prices while paying rent. Murillo said such projects would be extended to other sectors of the economy, adding that “we are of the belief that the state has to step back on certain activities.” He also said that allowing outright private ownership was out of the question, however. “We can’t call them reforms. We are studying a modification of the Cuban economic model,” Murillo said. He added that officials will ensure that “the values of socialism come first, not the market.” “We will continue following centralized planning,” he said, “but we will loosen up on a group of things.” Cuba has pledged to release 52 political prisoners as part of a deal with the island’s Roman Catholic Church, and 20 have been freed so far – heading into exile in Spain with their relatives. But Castro said that despite the deal, “there will not be impunity for the enemies of the homeland.” Raul Castro made only limited references to Fidel, who also missed the recent celebration of Revolution Day. Raul attended that event but did not speak – the first time since 1959 a Castro did not deliver a speech on Cuba’s top official holiday. Fidel Castro remains a member of parliament, but his chair to the right of Raul was empty Sunday. He has not appeared publicly alongside his brother since undergoing emergency intestinal surgery and stepping down four years ago. On Friday, Fidel addressed a Communist youth meeting attended by former castaway Elian Gonzalez, who is now 16. The ex-president has also turned up everywhere from discussions with Cuba’s diplomatic corps to the dolphin show at Havana’s aquarium. On Sunday, he met with Chinese Foreign Minister Yang Jiechi instead of attending the session of parliament with his brother. Outside Cuba, debate has intensified over who is guiding major government policy following the sudden media blitz by Fidel – who had almost completely disappeared from public view until recently. Such questions are far less common on the island, but it is not clear whether Fidel and Raul are deliberately not appearing together in order to make a statement about who is in control. Raul, meanwhile, made a point of saying Sunday that his government is as unified as ever. He said it is not a false unanimity that excludes honest discrepancies, “but one that promotes discussion of different ideas, and always with the same goals of social justice and national sovereignty.”

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Raul Castro: Cuba Government Will Reduce Economic Role

August 1, 2010

HAVANA — Raul Castro said Sunday that his government will scale back controls on small businesses, lay off unnecessary workers and allow more self-employment – significant steps in a country where the state dominates nearly every facet of the economy. Cuba’s president, however, squashed notions of a sweeping overhaul to the country’s communist economic system in response to the financial crisis it faces. “With experience accumulated in more than 55 years of revolutionary struggle, it doesn’t seem like we’re doing too badly, nor that desperation or frustration have been our companions along the way,” the president said. Castro spoke before parliament, which opened its biannual session without Fidel Castro, who has made a slew of recent public appearances of late but missed another chance to share a major public stage with his younger brother. Instead, lawmakers got Raul, who said authorities will “update the Cuban economic model,” suggesting reforms could be on the horizon. Cuban officials plan to reduce state control of small businesses, authorize more Cubans to become self-employed and build a new tax structure that will compel state employees to contribute more. About 95 percent of all Cubans currently work for the government and Castro has suggested that as many as one in five state employees are redundant. He promised job cuts, calling for “the reduction of work forces that are considerably bloated in the state sector.” Castro said those left out of work would be retrained or reassigned so as not to stay unemployed, but also said warned that few sectors would be immune to job-cuts. While he offered no specifics, his comments on economic and employment reform could mean a lot in Cuba, where many had hoped the government of Raul Castro could embrace small economic openings after he took power from his brother, first temporarily, then permanently, in July 2006. The president’s announcements were similar to comments before the session began by Economy Minister Marino Murillo, who spoke to reporters about a pilot program that has turned some state barber shops over to their employees and let them set their own prices while paying rent. Murillo said such projects would be extended to other sectors of the economy, adding that “we are of the belief that the state has to step back on certain activities.” He also said that allowing outright private ownership was out of the question, however. “We can’t call them reforms. We are studying a modification of the Cuban economic model,” Murillo said. He added that officials will ensure that “the values of socialism come first, not the market.” “We will continue following centralized planning,” he said, “but we will loosen up on a group of things.” Cuba has pledged to release 52 political prisoners as part of a deal with the island’s Roman Catholic Church, and 20 have been freed so far – heading into exile in Spain with their relatives. But Castro said that despite the deal, “there will not be impunity for the enemies of the homeland.” Raul Castro made only limited references to Fidel, who also missed the recent celebration of Revolution Day. Raul attended that event but did not speak – the first time since 1959 a Castro did not deliver a speech on Cuba’s top official holiday. Fidel Castro remains a member of parliament, but his chair to the right of Raul was empty Sunday. He has not appeared publicly alongside his brother since undergoing emergency intestinal surgery and stepping down four years ago. On Friday, Fidel addressed a Communist youth meeting attended by former castaway Elian Gonzalez, who is now 16. The ex-president has also turned up everywhere from discussions with Cuba’s diplomatic corps to the dolphin show at Havana’s aquarium. On Sunday, he met with Chinese Foreign Minister Yang Jiechi instead of attending the session of parliament with his brother. Outside Cuba, debate has intensified over who is guiding major government policy following the sudden media blitz by Fidel – who had almost completely disappeared from public view until recently. Such questions are far less common on the island, but it is not clear whether Fidel and Raul are deliberately not appearing together in order to make a statement about who is in control. Raul, meanwhile, made a point of saying Sunday that his government is as unified as ever. He said it is not a false unanimity that excludes honest discrepancies, “but one that promotes discussion of different ideas, and always with the same goals of social justice and national sovereignty.”

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Robert L. Borosage: The Grip of the Old Economy

July 7, 2010

President Obama touted his National Export Initiative this week, boasting that in the first quarter of this year, exports were up 17% from a year ago. Increased exports abroad generate jobs at home. Given the failure of the Senate to pass badly needed jobs bills, the collapse of consumer confidence, plunging home sales, declining factory orders, continuing layoffs at the state and local level, and the weak June jobs numbers, a little good news comes as welcome relief. At a time when jobs are in short supply,” Obama said Wednesday , “building exports is an imperative.” And give the president some credit for beginning to focus government on the question of exports. But don’t break out the spirits. Exports are a delectable appetizer, but the full meal is less digestible. Imports count too. Buying stuff abroad that could be made here displaces jobs. What matters is the balance of trade, not simply the rise or fall of exports. With consumers tightening their belts, businesses sitting on over a trillion in retained profits, and government slated to cut back its spending, we would need record trade surpluses to generate jobs And there is the rub. Exports are up from early last year when the economy was still in freefall and, not surprisingly, so too are imports. The problem is that the latter are much greater than the former, and our trade deficits are on the way back up. As reported by the Bureau of Economic Analysis, the trade deficit in goods and services is up to $115.3 billion in the first three months of 2010, or back over one billion a day. The current account deficit — which adds in financial flows — is up to $109 billion. In the airless prose of the BEA , this represents the “third consecutive quarterly increase since the deficit of $84.4 billion in the second quarter of 2009, which was the smallest deficit since the third quarter of 1999.” We were running deficits of over two billion a day before the economy tanked. The Great Recession more than halved those deficits, but now they are steadily rising once more. The grip of the pre-recession economy is reasserting itself. Why is this important? Because, as President Obama correctly said in his economic Sermon on the Mount at Georgetown , we cannot “recover” to the old economy and should not want to. That economy was built on bubbles and debt, borrowing $2 billion a day from abroad, with American consumers taking on ever more debt while serving as the world’s consumer of last resort. We were shedding manufacturing jobs when the economy was growing. The global imbalances contributed directly to the economic collapse. Obama put the case most clearly earlier this year: We can’t go back to that kind of economy. That’s not where the jobs are. The jobs of the 21st century are in areas like clean energy and technology, advanced manufacturing, new infrastructure. That kind of economy requires us to consume less and produce more; to import less and export more. Instead of sending jobs overseas, we need to send more products overseas that are made by American workers and American business. And we need to train our workers for those jobs with new skills and a world-class education. The president has urged the US to act boldly to capture a leading role in the new green industrial revolution — centered on renewable energy — that surely will drive global markets of the next decades. He called for new investment in education and training, in 21st century infrastructure, in research and development. “The fight for American manufacturing,” he said,” is the fight for America’s future.” In addition to ending our addiction to oil, any effort to create more balanced trade requires challenging Chinese mercantilism, and getting surplus countries like Germany to rely less on export-led growth. One of the president’s first global victories was to get the G-20, including China, to agree that the imbalances in the global economy were a problem that had to be dealt with by both countries with large trade deficits like the US and countries with large surpluses like Germany and China. But addressing these imbalances requires wrenching changes — and little progress is in evidence. The Chinese have agreed formally to let their currency float, a bit, but US companies now complain that they are getting worse, not better treatment from the Chinese government. The Germans, reaping the benefits of a declining Euro, are ginning up exports, while instituting greater austerity at home. The imbalances are headed back up, limited only by the faltering revival of economic growth. The president now presents the bilateral trade accord with South Korea — negotiated during the Bush years — as illustrative of his agenda. The treaty is an archetype of the old order, an imbalanced “free trade” treaty advertised as creating jobs that will do little to affect the oligopolistic structure of Korean markets that systematically disadvantages US exports. The president would have been wise to start over, and use the Korean negotiations as a precursor for how to deal with China. Instead, the president’s endorsement, a dutiful recitation of free trade pieties, is a tribute to the free trade priesthood that has hounded him to return to the faith. Like Galileo prosecuted by the Church, he avows that the sun does revolve around the earth. We’ve witnessed over and over again the grip of the old economy — and the strength of entrenched interests in frustrating the change Obama called for. The “drill, baby, drill” crowd filibusters the energy and climate bill in the Senate. Financial reform will leave the big banks more concentrated than ever, with financial profits headed back over 30% of all corporate profits. Trade deficits are going back up. China, Germany, Spain and other nations with industrial policies are capturing the lead in the emerging green industries. Inequality in America is growing, even as the middle class is sinking. Some have given up in despair. Some on the left write Obama off as hapless or a stooge. Imploring the president to show passion has become a media fixation. If elections were held today, the party of obstruction brandishing the same ideas that led us into the Great Recession has an even chance of winning control of the House of Representatives. But it is still early. The fight has only been joined. The special interests and a mobilized right stand in the way. The question now is less what Obama will do than how citizens will respond.

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Dollar, Yen Rise as Tensions on Korean Peninsula Boost Demand for Safety

May 23, 2010

By Yoshiaki Nohara and Ron Harui May 24 (Bloomberg) — The dollar and yen rose against higher-yielding currencies as political tension on the Korean peninsula boosted demand for safer assets. The dollar advanced to an eight-month high against the won after South Korea said it will halt trade with its northern neighbor and seek United Nations Security Council action over the sinking of a warship in March. The euro ended three days of gains versus the dollar amid concern Greece’s fiscal crisis will spread to other nations and hamper the region’s economic growth. Yuan forwards gained on speculation Chinese officials will indicate their intention to allow the currency to strengthen during talks with U.S. counterparts in the coming two days. “Geopolitical risk on the Korean peninsula appears to be mounting,” said Takashi Kudo , general manager of market information in Tokyo at NTT SmartTrade Inc., a unit of Nippon Telegraph & Telephone Corp. “This will probably fuel risk aversion and buying of the yen and the dollar as ‘safe-haven’ currencies.” The dollar rose to $1.2501 per euro as of 12:09 p.m. in Tokyo from $1.2570 in New York on May 21. It strengthened 0.5 percent to 82.79 U.S. cents per Australian dollar and 0.7 percent to 67.40 cents per New Zealand dollar. The yen climbed to 112.69 per euro from 113.13 last week. It gained 0.4 percent to 74.63 versus Australia’s currency and 0.5 percent to 60.77 per New Zealand’s dollar. Japan’s currency was at 90.14 per U.S. dollar from 90.00. North, South Koreas North Korean shipping will be banned from the south’s waters, President Lee Myung Bak said in Seoul today. “If our territorial waters, airspace or territory are violated, we will immediately exercise our right of self- defense,” Lee said. North Korea last week threatened “all-out war” against any move to punish it, including any more UN sanctions. “Risk appetite is pretty weak,” said Gerrard Katz , head of foreign-exchange trading at Standard Chartered Plc in Hong Kong. The won fell 1.3 percent to 1,210.65 per dollar from 1,194.40 on May 20, after earlier reaching 1,220.75, the weakest since Sept. 15, according to Seoul Money Brokerage Services. South Korea’s markets were closed on May 21 for a public holiday. Europe’s common currency weakened versus 13 of its 16 major counterparts after the Bank of Spain said on May 22 it appointed a provisional administrator to run CajaSur, a savings bank crippled by property loan defaults. The lender, based in the city of Cordoba, Spain, and controlled by the Roman Catholic Church, will be controlled by the government’s bank restructuring fund, the regulator said in an e-mailed statement. ‘Revive Concerns’ “Weekend revelations that the Bank of Spain has acted to support a regional lender is likely to weigh on the euro,” Gareth Berry , a currency strategist at UBS AG in Singapore, wrote in a note to clients. “This will probably revive concerns about the broader stability of the euro-zone banking system.” European Union finance ministers last week pledged to stiffen sanctions imposed on high-deficit countries and ruled out setting up a mechanism to manage state defaults. The euro has lost 6.1 percent this year, based on Bloomberg Correlation-Weighted Indexes. The dollar has risen 9.2 percent, and the yen has advanced 13.1 percent. The fastest convergence in short-term interest rates in almost a year is making the euro a surprise addition to currencies used to finance investments in higher-yielding assets. “The hot guys are moving into using the euro as a funding currency,” said John Taylor , who helps oversee $7.5 billion as chairman of New York-based FX Concepts LLC, manager of the world’s largest foreign-exchange hedge fund. “It’s not quite as cheap as the yen but it’s a lot safer in a crisis, because the worse the world looks the worse the euro looks.” Borrowing in Euros Borrowing in euros to finance an investment in the Australian dollar, New Zealand dollar, Brazilian real and Norwegian krone returned 10 percent in the past 6 months, according to data compiled by Bloomberg. The same trade using the dollar instead of the 16-nation currency resulted in a 7.5 percent loss, and a 7.4 percent decline with the yen. Under the German-inspired Stability and Growth Pact, nations with deficits above 3 percent of gross domestic product face fines unless they get the budget back into compliance. No country has been fined during the euro’s 11-year lifespan. The Dollar Index rose for the first time in four days before U.S. reports that economists said will show the housing market is improving and consumers turned the most optimistic in 20 months. U.S. Recovery U.S. existing home sales rose to an annual rate of 5.65 million in April, from 5.35 million the previous month, according to a Bloomberg survey before the National Association of Realtors report today. The Conference Board’s confidence index climbed to 59 this month from 57.9 in April, according to another survey before tomorrow’s data. That would be the highest since September 2008. “The U.S. is experiencing a V-shaped recovery,” said Adam Carr , a senior economist at ICAP Australia Ltd. in Sydney. “Against this backdrop, the greenback is likely to be supported.” The Dollar Index , which tracks the greenback against the currencies of six major U.S. trading partners including the euro, yen and pound, gained 0.5 percent to 85.757. Twelve-month non-deliverable yuan forwards climbed 0.2 percent to 6.7290 per dollar in Hong Kong, reflecting bets the currency will strengthen 1.5 percent from the spot rate of 6.8275, according to data compiled by Bloomberg. Chinese President Hu Jintao reiterated a pledge to steadily work toward reform of the yuan at the opening of China-U.S. talks in Beijing today. U.S. Treasury Secretary Timothy F. Geithner said the U.S. and China have a shared goal of a more balanced world economy and stronger ties between the world’s largest and third-largest economies. To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net ; Ron Harui in Singapore at rharui@bloomberg.net .

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Spain’s Central Bank Takes Over CajaSur Amid Mounting Property-Loan Losses

May 22, 2010

By Charles Penty May 22 (Bloomberg) — The Bank of Spain removed the managers of CajaSur, a savings bank crippled by property loan defaults, and put the bank under a provisional administrator. The lender, based in the city of Cordoba, Spain, and controlled by the Roman Catholic Church, will be controlled by the government’s bank restructuring fund, the regulator said today in an e-mailed statement. Spain’s worst recession in 60 years has driven up defaults at the country’s banks, which have made loans worth 454 billion euros ($570 billion) to finance construction and activities related to real estate. Banks have until the end of June to seek aid from a government fund of up to 99 billion euros set up last year as the regulator seeks to hasten mergers between ailing lenders to ease over-capacity and help them recapitalize. “The Bank of Spain has shown it’s prepared to take action to resolve the situation at CajaSur and that’s positive,” Alberto Espelosin , who helps manage about $12 billion at Ibercaja Gestion in Zaragoza. The board of CajaSur, a savings bank with assets of about 19 billion euros and 486 branches that posted a 596 million-euro loss last year, last night rejected a plan to merge with Unicaja, a bigger lender based in Malaga, sparking the action by the regulator. CajaSur had been in talks since last July over a possible merger with Unicaja. ‘Special Situation’ The central bank’s decision to takeover CajaSur follows the seizure of Caja Castilla-La Mancha in March, 2009. CajaSur accounts for 0.6 percent of the assets of the Spanish banking industry, the Bank of Spain said. Depositors and creditors should “stay calm” as the bank will continue to function normally under the fund’s administration, the regulator said. CajaSur is a “special situation” resulting from the failure of the merger with Unicaja, the Spanish savings bank association said in a statement sent by e-mail. Bad loans as a proportion of total lending at Spain’s savings banks rose to 5.35 percent in March from 4.78 percent a year earlier, according to Bank of Spain data. To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

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Greek Workers Occupy Acropolis, Shut Hospitals as Budget Protests Escalate

May 4, 2010

By Maria Petrakis May 4 (Bloomberg) — Greek government workers shut down schools and hospitals and disrupted flights as demonstrators occupied the Acropolis in an escalation of protests against 30 billion euros ($40 billion) of additional wage cuts and tax increases unveiled this week. The ADEDY union federation, which represents more than 500,000 civil servants having their pensions and pay slashed under measures announced May 2 by Prime Minister George Papandreou , will hold a rally at midday joined by striking teachers. A general strike, the third this year, is planned for tomorrow, with private-sector workers due to participate. “Protests will increase,” said Spyros Papaspyros , the head of ADEDY. “Opting for the easy path of cutting wages and pensions can’t be accepted.” Papandreou has called on Greeks to endure more sacrifices in return for an unprecedented 110 billion-euro bailout from the European Union and the International Monetary Fund. The austerity measures, called “savage” by union groups, include a second set of wage cuts for public workers, a three-year freeze on pensions and a second increase this year in sales taxes and the price of fuel, alcohol and tobacco. Protesters from the Communist Party of Greece draped banners over the walls of the ancient Acropolis citadel in Athens today that said “Peoples of Europe Rise Up” in Greek and English, as tourists took photographs. Unemployed teachers yesterday disrupted the evening news show on state-run NET TV. ‘Terrorizing’ Tourists Government spokesman George Petalotis condemned the occupation of the Acropolis, saying on NET TV that such protests “aimed to destroy tourism to Greece by terrorizing foreign visitors.” “My trip is complete,” said Roger Smith from the U.S. as he took photos of the protests below the Acropolis. Smith, on his first visit to Greece with his wife, Diane, said rich Greeks, like rich Americans, needed to pay their taxes. Elected in October on pledges to raise wages for public workers and step up stimulus spending, Papandreou revised up the 2009 budget deficit to more than 12 percent of gross domestic product, four times the EU limit, and twice the previous government’s estimate. EU officials revised the deficit further on April 22, to 13.6 percent of GDP. Investor Concern The surge in the budget gap as the economy contracted fueled investor concern about Greece’s ability to finance the deficit and sent borrowing costs to the highest since before the start of the euro in 1999. Papandreou has pledged to cut the shortfall to within the EU limit of 3 percent in 2014. Fifty-one percent of Greeks say they won’t accept new austerity measures and would join protests against them, according to a poll of 1,000 people by ALCO for Proto Thema newspaper. That compared with 33 percent who would accept them. No margin of error was given for the poll, which was conducted from April 27 to April 29. Most Greeks feel anger and dismay rather than relief over Papandreou’s decision to request emergency loans, a separate survey showed. Just 14.8 percent of the 1,256 people polled by Kappa Research April 28-29 for To Vima newspaper felt relief or hope after the move, compared with 31 percent who answered “anger,” 30.6 percent “disappointment or fear” and 22.8 percent who said they felt “shame.” The margin of error for the poll was 2.6 percentage points. Aid Package Greeks were divided on whether Papandreou needed to ask for the aid package with just over 50 percent saying it was necessary and 41.9 percent saying it could have been avoided, according to the Kappa poll. With cuts in wages and increases in taxes, the Greek economy is forecast to shrink 4 percent this year and 2.6 percent in 2011. Unemployment has risen to 11.3 percent, a six- year high . Archbishop of Athens and All Greece, Hieronymos, the leader of the Greek Orthodox Church, said the Church, which represents most of the 11 million Greeks, would stand by the “battered Greek people” and urged “unity, strength and optimism,” according to the state-run Athens News Agency. Finance Minister George Papaconstantinou said the government plans to submit legislation on the latest budget cuts to parliament today. Papandreou has a 10-seat majority in parliament, enabling the government to push through the measures. Electricity Company Tomorrow’s general strike could disrupt public transport, air traffic, ferry sailings and other services as workers from shopkeepers to sportswriters walk off the job. Employees at Public Power Corp SA , the state-controlled electricity company, also will strike. An air-traffic controllers’ strike will mean all flights at the Athens International Airport, the country’s biggest, will be cancelled. Greek carriers Aegean Airlines SA, which cancelled 17 flights for today, and Olympic Airlines SA won’t operate any flights tomorrow. The government also promised changes to the pension system, such as raising the retirement age for women in the public sector, increasing the number of years worked before qualifying for a pension and overhauling labor rules to make firing workers easier and cheaper. Labor Minister Andreas Loverdos plans a press conference on the measures today. Some economists say the worst is yet to come. Paul Mylonas , chief economist at National Bank of Greece, anticipates social unrest “will be muted this year” and could grow as the austerity measures continue into the coming years. “The risk is more for ‘adjustment fatigue’ going down the road,” Mylonas said. “There’s a higher risk of social opposition for further reforms in 2011 and 2012 if light doesn’t begin to appear at the end of the tunnel.” To contact the reporter on this story: Maria Petrakis in Athens at mpetrakis@bloomberg.net

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Betty Dukes, Wal-Mart Greeter, Leads Class Action Suit

May 1, 2010

PITTSBURG, Calif. — As a “greeter,” the cheerful Betty Dukes is one of the first employees customers usually see as they walk through the front doors of the Wal-Mart store here. As the first “named plaintiff” in Dukes v. Wal-Mart, the ordained Baptist minister also is the face of the largest gender bias class action lawsuit in U.S. history – one that could cost the world’s largest private employer billions. Her dual roles have turned her into a civil rights crusader for the company’s many critics, who have dubbed the legal battle “Betty v. Goliath.” It is a far cry from where Dukes expected to be when she enthusiastically accepted an offer in 1994 to work the cash registers part-time for $5 an hour. She dreamed of turning around a hard life by advancing, through work and determination, into Wal-Mart corporate management. “I was focused on Wal-Mart’s aggressive customer service,” Dukes said in an interview during her lunch break, after first saying grace over a meal of fast-food hamburgers and chicken nuggets. “I wanted to advance. I wanted to make that money.” But by 1999, her plans were in tatters. Several years of little advancement and frustration with her role culminated with an ugly spat with managers that resulted in a humiliating demotion and a pay cut, she said. That also became the genesis of the federal class action lawsuit U.S. District Court Judge Martin Jenkins called “historic” while he was handling the case. On Monday, the 9th Circuit U.S. Court of Appeals upheld Jenkins’ decision allowing the case to go to trial as a class action on behalf of as many as 1 million former and current female Wal-Mart employees. Jenkins has since stepped down from the federal bench and the case will now be handled by U.S. District Court Judge Vaughn Walker, who is also deciding another high profile case, the legality of California’s voter-approved ban of same-sex marriages. Dukes’ lawsuit alleges Wal-Mart is violating the 1964 Civil Rights Act, which made it illegal for employers to discriminate on the basis of race, creed or gender. Dukes alleges that Wal-Mart systemically pays women less than their male counterparts and promotes men to higher positions at faster rates than women. The Bentonville, Ark. retailer denies the accusations and argues that if there are any instances of discrimination they are isolated, and not an overarching company policy. Wal-Mart says any such cases should be handled as individual lawsuits, not as a class action. The retailer has fiercely fought the lawsuit since it was first filed in federal court in San Francisco in 2001 and said it would appeal the most recent decision to the U.S. Supreme Court. The incident that sparked the epic legal battle began while Dukes served as a customer service manager. Dukes, 60, needed change to make a small purchase during her break. She asked a colleague to open a cash register with a one-cent transaction, which she claims was a common practice. Nevertheless, she was demoted for misconduct. She complained to a manager that the punishment was too severe and part of a long campaign of discrimination that began almost as soon as she started working for Wal-Mart in this blue-collar city of about 100,000, some 45 miles east of San Francisco. She believed the reprimand was partially motivated by race. She’s black and the managers were white. When those complaints were ignored, Dukes sought legal advice. She ended up being represented by Brad Seligman, an attorney had who launched The Impact Fund, a legal nonprofit, in 1992. Seligman said he asked Dukes to serve as lead plaintiff in what would become a vast class action because of her strong personality. “I’m somewhat in awe of her, particularly that she has managed to work at Wal-Mart for all these years,” Seligman said. “It is extraordinary difficult to find someone who wants to risk their jobs by filing a lawsuit against their employer.” Seligman and other attorneys told Dukes that she wasn’t alone, that many other women had similar complaints. They said they would like to use her and five other former and current Wal-Mart employees to file the class action lawsuit. “My jaw fell open,” Dukes said when told of the other complaining women. “I thought I was by myself.” That was nine years ago. And with Wal-Mart insisting the lawsuit is without merit and vowing to continue its fight, it appears the litigation has more years to go. Dukes is undeterred by that prospect and sanguine about the outcome. “It’s a very courageous thing for a person to do, to stick with it over such a long period of time,” said Marcia Greenberger, founder of the Washington D.C. advocacy group National Women’s Law Center. “The individuals who step forward pay a very big price to be willing to tell their stories and to hold their records up to public scrutiny.” The center has filed a “friend of the court” brief supporting the Dukes lawsuit, as have the NAACP and Mexican American Legal Defense & Educational Fund. The U.S. Equal Employment Opportunity Commission has also filed a brief supporting the lawsuit. The U.S. Chamber of Commerce and other organizations, fearful that a ruling in Dukes’ favor will expose other companies to costly lawsuits, have filed briefs urging dismissal of the complaint. Ms. Magazine named her one of its “Women of the Year” for 2004, the same year Liz Featherstone’s book “Selling Women Short: The Landmark Battle for Workers’ Rights at Wal-Mart” was published. Featherstone has compared Dukes to Rosa Parks, the civil rights crusader. “I am very grateful that I’m on this platform,” Dukes said. “In this life, you have to stand up or be trampled.” She leans heavily on her faith, believing she has God on her side and that she’s been called upon to fight for others. Through it all, Dukes has remained humble, saying she lives with her mother because she can’t afford a place of her own on her $15.23 an hour salary. “There are times that I can’t afford my lunch,” she said, wrapping her chicken nuggets in a napkin for later. “But I’m still blessed.” She’s guarded about her past life, vaguely saying she has faced “many tsunamis.” Dukes mother moved the family from their native Louisiana to California 50 years ago. Dukes was married briefly but is single today and childless. She preaches often at her church on Sunday and said that fellow employees often approach her for spiritual counseling. She slipped into preacher mode when asked about Betty versus Goliath characterization. “David had five stones but only need one,” she said, comparing the biblical victory to the single lawsuit that she hopes will be decided in favor of Wal-Mart’s women employees. Dukes said that there have been few problems with managers and co-workers since the lawsuit was filed in 2001. She said the work atmosphere gets a “little chilly” after courtroom victories are reported in the media. Seligman, her lawyer, said her involvement in the lawsuit may even have benefited her. “It seems like that at every pivotal moment in the litigation,” Seligman said, “Betty gets a raise.”

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Abuse Victim Lawsuit Treats Vatican As Business

April 23, 2010

MILWAUKEE — A lawsuit from the U.S. aims to place blame for priest sexual abuse at the highest levels of the Roman Catholic Church by claiming the Vatican controls leadership, fundraising and doctrine down to the lowest levels. The lawsuit filed Thursday in U.S. federal court claims top leaders at the Vatican knew about allegations of sexual abuse at St. John’s School for the Deaf outside Milwaukee and called off internal punishment of the accused priest, the Rev. Lawrence Murphy. The lawsuit was filed on behalf of an Illinois man by St. Paul, Minn.-based attorney Jeff Anderson, who also has a pending lawsuit against the Vatican in Oregon for a man who claims he was abused at his Catholic school in the 1960s. Among the pieces of evidence in the Wisconsin suit is a 1995 letter from one of Murphy’s alleged victims detailing the problems at St. John’s. It was addressed to the No. 2 person in the Vatican, Cardinal Angelo Sodano, who was then secretary of state. It was written a year before it was first believed the case was brought to the attention of the Vatican. The lawsuit intends to prove the Vatican is a global business empire, practicing in “commercial activity” in Wisconsin and across the U.S. and holding “unqualified power” over each diocese, parish and follower. The Vatican’s U.S.-based attorney, Jeffrey Lena, said in a statement Thursday that the lawsuit was a publicity stunt with no merit and it rehashes theories already rejected by U.S. courts. The Vatican previously has said that diocese officials and civil authorities knew about the allegations some 20 years before the Vatican was ever notified. Because of that, Lena said, it cannot be held liable for Murphy’s abuse. Some legal experts questioned the Wisconsin lawsuit’s prospects. Nicholas Cafardi, a canon lawyer and former dean at the Duquesne University School of Law, disputes the argument that the Roman Catholic Church is an international commercial business. “He’s alleging an employment relationship between individual priests and the Holy See,” Cafardi said. “I’m sorry, but diocesan priests in the United States are not employees of the Holy See. … If a court were to accept that, they would be creating a new Catholic Church, not the one that exists now.” Professor Joseph Dellapenna at the Villanova University School of Law doubts courts will treat the Wisconsin diocese as a wholly owned subsidiary of the Vatican. He noted a number of dioceses around the country have filed for bankruptcy because of abuse cases, and the courts have treated them as separate, independent entities. The biggest issue could be overcoming the Foreign Sovereign Immunities Act, which sets the rules for U.S. legal action against sovereign nations, including the Vatican. Dellapenna said the suit’s claims of misrepresentation and fraud are barred by the act. Another U.S. appeals court has ruled the act also bars its claims of emotional distress, he said, though Wisconsin’s 7th Circuit could decide differently. But Washington, D.C., attorney Jonathan Levy, a specialist in international law who has tried suing the Vatican Bank over Holocaust claims, said Anderson could succeed in taking advantage of exceptions to sovereign immunity. “I’d say he’s got some new and exciting theories in there why the Vatican should be held responsible for its bad acts,” Levy said. Anderson said the suit is unique because it’s seeking injunctive relief, not just money, by compelling the Vatican to open its files on abuse cases. “They have been hiding behind legal shields, and we have been successful so far in the courts in cracking those shields,” he said. “We intend to use this case and others like it to wedge open those cracks.” He said the plaintiff had pledged to donate any monetary award to a fund to be shared by Murphy’s victims. The lawsuit is the latest move in the case of Murphy, who died in 1998. He was accused of sexually abusing some 200 boys at the deaf school from 1950 to 1974. He was put on a leave of absence when the allegations were revealed in the early 1970s. The lawsuit claims Murphy was still allowed to serve in ministry and work with children in another Wisconsin diocese into the early 1990s. Murphy’s case drew renewed attention after the recent release of documents called into question the actions of a Vatican office led by then-Cardinal Joseph Ratzinger. Before the disclosure of the 1995 letter to Sodano, it was believed the Vatican first learned of allegations against Murphy in a July 1996 letter from Milwaukee Archbishop Rembert Weakland. That letter was sent to the Congregation of the Doctrine of the Faith, the powerful Vatican office Ratzinger led from 1981 to his election as pope in 2005. That office told the archbishop to move forward with a canonical trial against Murphy in March 1997. But then the office urged a different course after receiving a letter from Murphy. The Rev. Federico Lombardi, a Vatican spokesman, has said they suggested restricting Murphy from ministry rather than holding a full-blown canonical trial, citing Murphy’s age, failing health, and a lack of further allegations. The Wisconsin bishops ordered the proceedings halted, but in the end, Murphy died while still a defendant in a canonical trial, which could have led to Murphy being laicized, or stripped of the priesthood. Sodano has long been accused in news reports in U.S. Catholic publications and other outlets of stalling a Vatican probe of the Rev. Marcial Maciel, the discredited founder of the Legionaries of Christ. The order has admitted that the late Maciel fathered at least one child and molested young seminarians. Anderson provided a copy of a receipt showing the registered letter to Sodano had reached the Vatican. The man wrote Sodano again and got no response, according to Anderson. Lena said that at the time, it was a local matter regarding a local priest and the victim had already communicated with the local bishop. Under those circumstances, Lena said it is “entirely appropriate” under canon law for the local diocese – not the Holy See – to respond. ___ Associated Press Writers Steve Karnowski in Minneapolis, Patrick Condon in St. Paul, Minn., and Nicole Winfield in Vatican City contributed to this report. Eric Gorski reported from Denver.

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Rev. Billy Talen ARRESTED For Placing ‘Holy Hex’ On JPMorgan

April 5, 2010

A New York City preacher has been arrested for placing a ‘holy hex’ on JPMorgan Chase. Protesting what he calls JPMorgan’s financing for mountaintop removal in Appalachia, Rev. Billy Talen led his Church Of Life congregation in an Easter morning protest outside of a bank branch in New York City. Courthouse News has the details: “Rev. Billy led his Life After Shopping Gospel Choir to two East Village Chase branches, where the singers “deposited” mounds of “sacred dirt from Coal River Mountain, West Virginia” on the floors of ATM lobbies. At the branch on St. Marks Place and 2nd Avenue, the choir performed a “mystery channeling of money” as bank customers withdrew money, and the reverend/performance artist preached to a crowd through a white megaphone.” The bank’s financing of ” mountaintop removal ” — the controlled deforestation and detonation of upper parts of mountains to access coal deposits — has been widely critizied by environmental advocates. In the past two decades, JPMorgan has underwritten 20 huge bond deals to help support the practice, Mother Jones noted last month. On Rev. Talen’s website he lays out his case against the bank: We are joining thousands of activist citizens who have opposed the removal of peaks in Appalachia for “dirty coal” mining. In resisting Consumerism, there is always an earth-justice motive, right in front of us. We remember leading Iceland citizens into their own super malls to oppose the big dams and aluminum smelters; and we recall opposing the super ferry in Kauai; and also singing to tree-sitters up in the redwoods. Check out Courthouse News’s full piece here .

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Child Abuse by Irish Priests Makes Church Seek Aid From Angry Parishioners

March 25, 2010

By Colm Heatley and Louisa Fahy March 25 (Bloomberg) — It’s been almost three decades since Pat Jackman was sexually abused by his priest, a trusted family friend who ran a youth group. Now the leader of their church in southeast Ireland is asking parishioners to help meet the bill for compensation. “It was just the sheer arrogance of it,” said Jackman, 44, a sound producer and father of two who lives in the diocese of Ferns, whose bishop requested contributions from churchgoers in the area last month. “For the moral bastions of the community to be so insensitive was a disgrace.” Pope Benedict XVI said on March 20 that Roman Catholic church leaders in Ireland “betrayed the trust” of parishioners after a series of reports in the past five years detailed the scale of abuse and efforts to cover it up. Now, the focus is on who knew what when and how the church will pay for it. The child abuse will cost the Roman Catholic Church in Ireland and the state at least 1 billion euros ($1.34 billion), according to the Residential Institutions Redress Board , which was created by the Irish government in 2002 to make awards to people abused in schools and institutions. By the end of 2009, it had made 12,929 payouts averaging 63,210 euros, the board said on its Web site. “When I and other victims went to get compensation from the church, we did it because it was the only way of holding them to account,” said Colm O’Gorman , 43, a Ferns victim, activist and author of a 2009 book on clerical abuse . “We never thought they would start asking parishioners to pay their sex abuse bills for them. It’s an extra form of abuse.” ‘Ashamed’ The pope yesterday accepted the resignation of the Bishop of Cloyne, John Magee, who on March 9 offered to stand aside over his handling of child sex-abuse cases in the diocese, which is near Cork in the south of Ireland. Cardinal Sean Brady , Ireland’s most senior Catholic cleric, is “reflecting” on his future after he said he didn’t report the activities of a pedophile priest to police. The priest wasn’t charged with sex abuse until 1994. Brady said he was instructed by church leaders to interview two of the child victims under oath of secrecy in 1975 and report his findings to them. “I am ashamed that I have not always upheld the values that I profess and believe in,” Brady told a mass at Armagh Cathedral in Northern Ireland on March 17, St. Patrick’s Day. Boston Scandal The Irish turmoil isn’t the first for the Catholic Church and may not be the last. In Northern Ireland, Health Minister Michael McGimpsey said on March 19 that the administration in Belfast should consider an inquiry into church sex-abuse of children. The government has about a month to decide on a course of action. In the U.S., a scandal broke in 2002 after claims that Cardinal Bernard F. Law of Boston covered up complaints against priests accused of abuse. Law resigned in December that year, apologizing for his “shortcomings and mistakes.” More than 5,000 priests were accused of molesting 12,000 children from as far back as 1950, according to the U.S. Conference of Catholic Bishops. Last year, U.S. dioceses paid $104.4 million for settlements, therapy for victims, support for offenders and legal fees, the group said in a statement published on March 23. The Ferns Report , published in 2005, said church leaders had evidence of clerical sex abuse against children and didn’t do enough to prevent it. The total bill arising from the report for Ferns is so far about 10.5 million euros , according to Eugene Doyle, chairman of the Ferns diocese finance committee. ‘Fundraisers’ “Each diocese is responsible for paying its own bills,” Doyle said by telephone. Parishioners will have time to “reflect” on the request by the local bishop and should they decide to contribute, the money will be raised through “fundraisers,” said Doyle, a Wexford-based accountant. About 6 million euros of the bill has been in direct payments to victims, with the other 4.5 million euros from legal and administrative costs, Doyle said. About 5.5 million euros came from the so-called stewardship trust, a fund set up using one-time payouts from insurers, with other money coming from savings and the re-mortgaging of property, Doyle said. The request for donations has provoked some anger. “They have no conscience,” Denise O’Connor, a Wexford shopper in her 50s, said. “If they took some of the money from the vaults of the Vatican, it might ease some of the pain.” Vatican Response The Vatican, which relies on earnings from investments in stocks, bonds and real estate to top up donations from Catholics around the world, hasn’t said whether it will help the Irish church financially with the compensation. Irish Catholic orders are currently preparing lists of assets to hand over to the government to help meet the bills. The pope on March 20 issued an apology to Irish sex abuse victims, the first since the allegations surfaced in the early 1990s. Clergy in Ireland “must answer for it before Almighty God and before properly constituted tribunals,” he said. Jackman said he was a teenager when he was taken by the Ferns priest, Father Sean Fortune. The cleric, who was also named by O’Gorman as his abuser, killed himself in March 1999 after being the subject of criminal proceedings by the director of public prosecutions, according to the Web site of the Department of Health and Children in Dublin. Fortune had denied any wrongdoing, the Ferns Report said. It detailed how the church moved him from parish to parish, and said his appointment in Wexford in May 1982 was “extraordinarily ill-advised.” “At best” people in the diocese “feel frustration about the quality of communication,” said Jackman, who won compensation. “At worst, they feel abject anger.” To contact the reporters on this story: Colm Heatley in Belfast at cheatley@bloomberg.net Louisa Fahy at lnesbitt@bloomberg.net

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Fiat May Need to Convince on Chrysler Before Seeking Automotive Unit IPO

March 11, 2010

By Sara Gay Forden March 11 (Bloomberg) — Fiat SpA , the Italian carmaker that helped Chrysler Group LLC emerge from bankruptcy, may wait to turn around the U.S. business before deciding on a share sale or spinoff for its automotive division. The Italian company’s stock has risen 19 percent this month on speculation that Chief Executive Officer Sergio Marchionne may carve out Fiat’s biggest unit as a new company. Fiat executives have so far sent mixed signals about whether an initial public offering of the division will take place. A separation of the auto manufacturing operations, which generated 56 percent of Fiat’s revenue last year, would give Marchionne an entity to facilitate future alliances, and a share sale would generate cash for international expansion . The maker of Puntos and Ferraris must show progress at Chrysler, of which it owns 20 percent, before convincing investors to buy shares in the unit, said Royal Bank of Scotland analyst Jose Asumendi . “Fiat has too much on its hands right now to think about a possible spinoff,” said London-based Asumendi, who advises holding Fiat’s stock. “The priority is to resurrect Chrysler, make it profitable and repay its government loans.” Fiat Automobile, not including Fiat’s 20 percent stake in Chrysler, is worth about 5.9 billion euros ($8 billion), or 53 percent of Fiat’s market value , said Stephen Pope , chief global equity strategist at Cantor Fitzgerald in London. “Get the U.S. strategy right and in six years time, Fiat Auto could be worth 20 percent more.” Holding Pattern Fiat derives the remainder of its revenue from units including truckmaker Iveco SpA and CNH Global NV , an agricultural and construction machinery maker. Marchionne plans to detail on April 21 in Turin, Italy, how Chrysler, which he also runs, will improve Fiat’s profitability through shared sales efforts and technology. The CEO is trying to shore up both companies as government incentives to buy new cars end in Europe and Chrysler’s U.S. market share lags a 10.5 percent target for 2010. Chrysler is “in a year of hibernation” and talk of a separate Fiat Auto is “premature,” Kristina Church , an analyst at Barclays Capital, wrote in a March 8 note. Barclays upgraded Fiat to “equal weight” from “underweight” in part because the shares may benefit from the speculation. Fiat’s surge this month is more than triple that of the Bloomberg World Auto Manufacturers Index , which includes Fiat and has risen 5.4 percent. Ford Motor Co., the only major U.S. carmaker that didn’t take a government bailout, has jumped sevenfold in 12 months and is up 28 percent since the beginning of the year, compared with a 10 percent decline by Fiat. Partial Sale That recent share gain might persuade executives to press ahead with a share sale sooner rather than later, said Pierre Bergeron , a credit analyst at Societe Generale SA in Paris. The company’s perceived value is unlikely to rise soon because Fiat and Chrysler offer a weak product lineup in a challenging U.S. market, he said. A partial sale or spinoff this year, of a 30 percent stake, could give Fiat additional options for consolidating its debt, Bergeron said. Fiat could also sell more after that, he said. A spinoff “is not dead,” Marchionne told reporters March 3 in Geneva. A day earlier, Chairman Luca Cordero di Montezemolo told Bloomberg News that he didn’t foresee a share sale. ‘Conjecture’ Responding to a request from Italy’s stock market regulator, Fiat said March 6 that media reports about an IPO or spinoff are “conjecture” and that it isn’t planning any “extraordinary transactions.” A company spokesman declined to comment further yesterday. Marchionne said last year that the creation of a separate auto company may take several years. Fiat will be held back this year by declining car sales, pricing pressure and industry overcapacity, Barclays’s Church wrote. Fiat makes about 2 million cars annually, while Chrysler manufactured 1.3 million last year. That’s short of Marchionne’s contention that to survive as a global automaker , a company needs production of at least 5 million vehicles. Last year, the carve-out speculation centered on Fiat’s bid for General Motors Co.’s Opel because a purchase could have given Fiat the scale Marchionne says is necessary to survive. GM eventually decided to keep the European operations. Marchionne needs to show success with current strategic plans before he considers creating one automotive group, analysts at Goldman Sachs Group Inc. led by Stefan Burgstaller said March 8 as they added Fiat to a “conviction buy” list. Dodge Chargers, 300s Fiat acquired the 20 percent stake in Auburn Hills, Michigan-based Chrysler in June as part of a plan to help the U.S. carmaker emerge from bankruptcy. The Italian company can lift the holding to 35 percent in increments by meeting targets such as building an engine in the U.S., and can win control after government loans are repaid. Chrysler is refreshing most models, including the Jeep Grand Cherokee. New Chrysler 300s and Dodge Chargers will use the first platform developed jointly with Fiat, which plans to begin selling its 500 subcompact in the U.S. in early 2011. Marchionne has said Chrysler may have an IPO after 2010. Tesla Motors Inc., the Palo Alto, California-based producer of a $109,000 electric Roadster, filed in January for an initial public offering to raise as much as $100 million. Detroit-based GM, which emerged from bankruptcy July 10, could hold an IPO by late 2010, Chairman Ed Whitacre has said. Fiat may have earnings before interest, taxes, depreciation and amortization of 4.26 billion euros this year, a 14 percent increase from 2009, according to the average estimate of 26 analysts surveyed by Bloomberg. Chrysler had Ebitda of $200 million in 2009’s third quarter and posted a sales gain in February, its first in 26 months. Bondholders One hurdle to a separate Fiat Auto is how the carmaker will apportion its bonds, according to Alessandro Frigerio , a fund manager at RMJ Sgr, which oversees about 100 million euros and owns Fiat shares. Fiat’s bonds totaled 11.4 billion euros at the end of 2009, according to its annual report . “It’s a complicated transaction that has to satisfy both the bondholders and the shareholders,” Frigerio said. “The transaction is also very much tied to how things go at Chrysler, which is still in the preliminary stages of the restructuring.” To contact the reporter on this story: Sara Gay Forden in Milan at sforden@bloomberg.net

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Virgin Money May Name Former Lloyds CEO Pitman as Chairman Amid Expansion

January 27, 2010

By Andrew MacAskill Jan. 27 (Bloomberg) — Virgin Money Holdings U.K. Ltd., Richard Branson’s financial-services division, is in talks with former Lloyds TSB Chief Executive Officer Brian Pitman about taking the post of chairman, a person familiar with the matter said. Pitman, 78, who advised Branson on his bid for Northern Rock Plc , may be named to the post as early as this week, said the person, who declined to be identified because the talks are private. Pitman was credited by analysts with transforming Lloyds TSB into Britain’s most profitable lender before his departure in 2001. Virgin today completed its acquisition of Church House Trust Plc, which will give the firm a banking license. Branson , chairman of Virgin Group Ltd., is one of several people planning to create lenders in the U.K. after the credit crunch led to a series of bank rescues including Royal Bank of Scotland Group Plc , and the departure of some overseas-based lenders. Chancellor of the Exchequer Alistair Darling said he wanted “new people” in the industry. A spokesman for Virgin Money declined to comment. An answer machine message left at Pitman’s office was not immediately returned. The Financial Times reported the news of Pitman’s possible appointment earlier. Both Branson and Pitman have received knighthoods from Queen Elizabeth. Pitman is also a senior adviser to the Financial Services Authority and to Morgan Stanley International . For Related News and Information: More banking news: NI BNK More merger and acquisition news: NI MNA

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Haiti Prime Minister Says `Well Over’ 100,000 May Be Dead After Earthquake

January 13, 2010

By Bill Faries and William Varner Jan. 13 (Bloomberg) — Haitian Prime Minister Jean-Max Bellerive said “well over” 100,000 people may have died in yesterday’s earthquake, as the United Nations and relief groups rushed aid to the Western Hemisphere’s poorest country. Bellerive said he based his estimate on reports of the number of buildings that collapsed with people inside, adding the extent of casualties is largely guesswork at this point. About 70,000 people were killed in the hemisphere’s worst earthquake on record, which hit Peru in 1970, the U.S. Geological Survey said on its Web site. “I believe that we are well over 100,000. I hope that is not true because I hope people had the time to get out,” Bellerive said in a telephone interview with CNN. “We have so many people in the street and we don’t know exactly where they were living. But there are so many buildings, so many neighborhoods totally destroyed and in some neighborhoods we don’t even see people so I don’t know where those people are.” President Rene Preval told the Miami Herald that the country was “destroyed” by the temblor, which was centered 10 miles (16 kilometers) southwest of Port-au-Prince, a city of about 2 million, at 4:53 p.m. local time yesterday. The Associated Press said bodies are heaped along streets amid the rubble from thousands of collapsed structures. The corpses of small children were piled outside schools as flies began to gather, the AP said. UN Emergency Fund UN Secretary-General Ban Ki-Moon said he released $10 million from the world body’s emergency relief fund to speed aid to Haiti. He also asked the U.S. for heavy equipment and rescue teams. Promises of additional aid came from countries including the UK, Canada, Brazil, Germany and the Netherlands, which pledged 2 million euros ($2.9 million) in emergency aid. President Barack Obama ordered U.S. agencies to undertake a “swift, coordinated” effort to get aid to Haiti. Search-and- rescue teams, four U.S. Coast Guard cutters and an aircraft carrier are en route, while the administration works to account for U.S. government employees and citizens. Port-au-Prince is in “total chaos,” with clouds of dust from collapsed buildings covering the city, said Robyn Fieser , a spokeswoman with the Catholic Relief Services in Baltimore. The quake, with at least 13 aftershocks with a magnitude above 4.5, was the “most violent” in the Port-au-Prince area in more than a hundred years, according to the USGS. Rubble in Roads “Buildings have collapsed everywhere and there is rubble blocking the roads,” Sophie Perez, the director of the relief organization CARE, said in a statement. The UN said clean water is in short supply, that the National Palace was destroyed and that “hotels, hospitals, schools and the national penitentiary have all suffered extensive damage.” Economic damage may be in the hundreds of millions of dollars, according to estimates from Eqecat Inc., an Oakland, California-based company that builds financial risk models to help insurers prepare for catastrophes. Delta Air Lines Inc. and AMR Corp.’s American Airlines both suspended service indefinitely after the quake left the Port-au- Prince air-traffic control tower out of commission, company spokesmen said. JetBlue Airways Corp. said flights were operating as scheduled to the neighboring Dominican Republic. Dollar a Day Haiti’s population of 9.6 million has a per capita income of about $560, with 54 percent of Haitians living on less than $1 a day and 78 percent on less than $2 daily, according to the World Bank. The gross domestic product was $7 billion in 2008. The country is still recovering from four tropical storms or hurricanes that killed at least 800 people in 2008. “For a country and a people who are no strangers to hardship and suffering, this tragedy seems especially cruel and incomprehensible,” Obama said today. The apparel sector accounts for about two-thirds of Haiti’s exports and nearly one-tenth of the nation’s economy, according to data from the U.S. Central Intelligence Agency. Remittances are the primary source of foreign exchange, equaling nearly a quarter of gross domestic product and more than twice the earnings from exports such as coffee and mangoes, the CIA said. Eqecat estimated that as many as 2 million people may be affected by the earthquake and aftershocks, the company said in a note to clients last night. Archbishop Killed Pope Benedict XVI appealed to “everyone’s generosity” in a call for financial aid for Haiti today in Rome. The body of Archbishop Joseph Serge Miot, 63, was found in the ruins of his office in Port-au-Prince, said the Rev. Pierre Le Beller of the Saint Jacques Missionary Center in Landivisiau, France, according to the AP. Twenty-one members of a delegation of three Trenton, New Jersey, churches in Haiti for five days to set up a medical clinic are among those missing, said Skip Conover, a church volunteer from the Presbyterian Church of Lawrenceville. The group, which also included members of Shiloh Baptist Church in Trenton and Kingdom Church in Ewing, was scheduled to arrive in Port-au-Prince at 1 p.m., about three hours prior to the temblor, and depart for the mountain town of Thoman, he said. “We’ve heard absolutely nothing from them,” Conover said in a telephone interview from the church, about five miles north of the state capital of Trenton. “We don’t know what the situation is right now.” Aid Ready The heads of the World Bank and International Monetary Fund said they are prepared to assess damage and provide aid. World Bank offices in Port-au-Prince “were destroyed but most staff have been safely accounted for,” the bank’s president, Robert Zoellick , said in a statement. Citigroup Inc.’s three-story office building in the capital collapsed and the bank is trying to account for its 44 employees, said Liliana Mejia, a spokeswoman for the New York- based bank. Bank of Nova Scotia , Canada’s third-largest bank by assets, said all 80 of its employees in Haiti are safe and accounted for. The UN, which has a peacekeeping force of about 7,000 personnel and 2,000 police in Haiti, said its offices were damaged and that a “large amount of personnel” are unaccounted for. The UN force has been stationed there since June 2004, after President Bertrand Aristide left the country to go into exile. Brazilian Troops Brazil, which has 1,266 troops in Haiti to support UN peacekeeping, said 11 service members are dead and seven missing. Florida Governor Charlie Crist authorized the state’s emergency management office to provide food, water, tents, blankets, cots and other equipment from its stockpile of hurricane supplies. “We maintain a warehouse of supplies for disasters in Orlando that could be made available and we’re ready to roll if needed,” said spokesman Mike Stone. A school with children in its rooms collapsed in Port-au- Prince, according to the UN Children’s Fund, Unicef. The aid group Doctors Without Borders, or Medecins sans Frontieres, said in a statement that its 60-bed hospital in Port-au-Prince was seriously damaged. More than 100 workers from Unicef in Haiti are helping the injured and providing for children separated from their parents, said Caryl Stern , the president of the U.S. fund of Unicef in New York. “It’s a really densely populated area. It couldn’t be worse,” said Stern, who has been in contact with Unicef workers in Haiti. “It’s going to take a big world effort.” To contact the reporters on this story: Bill Faries in Buenos Aires at wfaries@bloombeg.net ; William Varner in New York at wvarner@bloomberg.net

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Branson’s Virgin Money Aims To Become Retail Bank

January 8, 2010

Virgin Money, part of Richard Branson’s Virgin empire, took big strides on Friday towards becoming a major retail bank able to compete within a sector rocked by the financial crisis. Virgin Money said it had agreed to buy regional private bank Church House Trust for 12.28 million pounds.

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Rick Warren’s Saddleback Church Asks For Urgent $900,000

December 31, 2009

LAKE FOREST, Calif. — Evangelical pastor Rick Warren appealed to parishioners at his Orange County megachurch Wednesday to help fill a $900,000 deficit by the first of the year. Warren made the appeal in a letter posted on the Saddleback Church Web site. It begins “Dear Saddleback Family, THIS IS AN URGENT LETTER.” “With 10 percent of our church family out of work due to the recession, our expenses in caring for our community in 2009 rose dramatically while our income stagnated,” the letter reads. Still, Warren said the church managed to stay within its budget, but “the bottom dropped out” when Christmas donations dropped. “On the last weekend of 2009, our total offerings were less than half of what we normally receive – leaving us $900,000 in the red for the year,” the letter reads. “It’s basically having to do more with less,” church spokesman A. Larry Ross said. “The seasonal Christmas offering was down significantly and, commensurately, the need for services the church is expected to provide is up,” Ross said. Warren’s appeal presents an opportunity for those who haven’t been hit by the recession to step up and help, Ross said. The letter details some of the church’s accomplishments in 2009 and where the donations would be used, including the church’s food pantry, homeless ministry, counseling and support groups. It then lists three ways parishioners can make their donations. Warren was named the top newsmaker of the year by the Religion Newswriters Association. He gained attention with his invocation at the inauguration of President Barack Obama and comments in the aftermath of California’s Proposition 8, which overturned gay marriage. Warren also gained attention for his work in Africa involving AIDS relief and other humanitarian activities. Warren is the author of numerous books, including the best-selling “The Purpose Driven Life.” He founded Saddleback Church in 1980 in Lake Forest, about 65 miles southeast of Los Angeles.

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World War Pope Sainthood Like Obama’s Nobel: Celestine Bohlen

December 28, 2009

Commentary by Celestine Bohlen Dec. 29 (Bloomberg) — It’s not at all clear that the world needs another Roman Catholic saint, let alone another canonized Catholic pope. By one count , there are already more than 10,000 saints and “beati” or blessed, accumulated since Roman times, with at least three saints already assigned for every day of the year. That’s just one good reason why Pope Benedict XVI’s decision to proceed toward the canonization of Pius XII , the church’s controversial World War II-era pope, was so surprising. Another two miracles to his name, and Pius will have cleared all the hurdles to sainthood, where he will be among the ranks of such beloved figures as Saint Francis of Assisi and Saint Joan of Arc. It’s hard to see the urgency or the necessity of an act that was sure to anger and upset large groups of people — most significantly, Jews who worry that Benedict has again delivered a setback to the difficult and delicate task of reconciling Catholicism and Judaism. There may be explanations for Pius XII’s studied silence about the Holocaust in the early 1940s: it is true that public criticism might have put more innocent people in danger, and it is also true that the Pope, like many Catholics, took risks to protect Jews. The question of Pius’ wartime record remains open, and will stay that way as long as the relevant archives are closed. Benedict himself had previously asked Vatican officials to hold off any decision on Pius until the opening of the 1939-1958 archives, now slated for 2014. This approach was endorsed by Jewish leaders, who are now left expressing puzzlement and dismay over Benedict’s decision to jump the gun and issue a decree proclaiming Pius’ “heroic virtues,” setting the stage first for beatification, and then canonization. Vatican Bureaucrat So what was the rush? The answer is politics — which does not make for an edifying religious spectacle. The common perception, disputed by the Vatican, is that by pairing Pius XII with John Paul II in the Dec. 20 decree, Benedict had hoped to satisfy both the conservative and the liberal wings of the Catholic Church. Let’s just leave aside the fact that there isn’t much of a public constituency clamoring for a Saint Pius XII (Pius IX is beatified and Pius I, V and X are already saints), as there is for a Saint John Paul II, a charismatic pope who played a key role in the collapse of Communism. At his funeral in 2005, crowds called for a quick beatification, with chants of “Beato subito.” In contrast, Pius XII — born Eugenio Pacelli, scion of Rome’s so-called black nobility, which has staffed the church’s upper ranks for centuries — was a lifelong Vatican bureaucrat- turned-diplomat, with a dour, ascetic manner. No Mother Theresa This isn’t Mother Teresa , the Albanian-born nun who spent her life caring for the poor of Calcutta and was beatified in 2002, or even Father Jerzy Popieluszko, the Polish priest who was beaten to death by the communist secret police in 1984 and who this month was put on the path to sainthood, together with Pius XII and John Paul II. Last week, the Vatican once again found itself trying to calm waters stirred by one of Benedict’s decisions. Last February, when the pope offered an olive branch to leading figures of a conservative schismatic movement who included a Holocaust-denying ex-bishop, the Vatican blamed “a management error.” This time, the Vatican press office issued a statement explaining that the pope’s decree on Pius’s “heroic virtues” wasn’t an assessment of “the historical impact of all his operative decisions,” but a confirmation that he had led a deeply Christian life. Surely, that was a requirement Pacelli met when he was chosen to be Pope in 1939. Modern Teachings Many experts think that Benedict is trying to reconcile the church with its own history, with teachings that prevailed before the Second Vatican Council, the historical gathering of church leaders convened by Pope John XXIII in the 1960s. That was when the Roman Catholic Church entered the modern age, adopting such principles as separation of church and state, freedom of religion, a more modern liturgy and a repudiation of anti-Semitism. “Benedict wants to emphasize the continuity of the church’s teachings, to make the point that the Second Vatican Council was not a break with the past,” said the Reverend Thomas Reese, a Jesuit scholar and senior fellow at the Woodstock Theological Center at Georgetown University. This isn’t a surprising line of thinking from a conservative pope who as a theologian, once kept watch over the church’s doctrine. But he didn’t need to add another pope to the roster of saints to make the point. Of the 265 popes in history, 76 are already saints: six are blessed. Perhaps now is the time to declare a halt to the practice, for liberals like John Paul II and John XXIII, as well as for conservatives like Pius XII. As Father Reese aptly noted, popes cannot be examples for ordinary Christians: Popes can only be examples for other popes. After President Barack Obama won the Nobel Peace Prize, a lot of people argued that heads of states should not be nominated for that kind of award until after they have left office. Maybe in the case of popes, sitting on the throne of St. Peter should be honor enough. ( Celestine Bohlen is a Bloomberg News columnist. The opinions expressed are her own.) Click on “Send Comment” in the sidebar display to send a letter to the editor. To contact the writer of this column: Celestine Bohlen in Paris at cbohlen1@bloomberg.net

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Pope Reaches Out to Youth With Religious Cyber Talk on YouTube, Podcasts

December 17, 2009

By Chiara Remondini and Flavia Krause-Jackson Dec. 17 (Bloomberg) — Pope Benedict XVI, who at 82 still handwrites his speeches rather than use a computer, is tapping YouTube , MySpace and podcasts to lure disenchanted youth into the Church’s fold. Reaching out to the cyber-faithful, he this year debuted on YouTube, Google Inc. ’s video-sharing site, and has a MySpace playlist that includes a rap song by Tupac Shakur . His midnight Christmas Mass next week will be podcast, and for the first time ever a Webcam will broadcast the Pope’s appearances from his apartment window overlooking St. Peter’s Square. “New media will be increasingly important for the Church and the Pope himself has said the Internet is a tool,” Don Paolo Padrini, 36, a priest in the northern Italian village of Stazzano, said in an interview. “It demonstrates the Church isn’t afraid of technology and is keeping up with the times.” Pope Benedict, who was elected in April 2005, is looking for ways to reach out to the young amid a decline in church attendance and following. Catholics were overtaken for the first time last year by the world’s 1.1 billion Muslims, according to the Vatican Statistical Yearbook . Attendance at Mass in the U.S. fell to 25 percent in 2002 from 75 percent in 1965, according to “Index of Leading Catholic Indicators: The Church since Vatican II” by Kenneth C. Jones . “The new digital arena, the so-called cyberspace, allows (people) to encounter and to know each other’s traditions and values,” the Pope said in a May speech . It’s for “young people, who have an almost spontaneous affinity for the new means of communication to take on the responsibility for the evangelization of this ‘digital continent,’” he said. ‘Theoblogical’ Revolution At least 100 people, including reporters and technicians, contribute to the Holy See’s Web efforts, Vatican spokesman Federico Lombardi said. From the www.pope2you.net Web site people can send Pope Benedict Christmas wishes. They can download a Facebook Inc. application that lets them listen to the Pope’s words, see his pictures and receive greetings from him through virtual postcards. Religion-related Web sites, smart-phone applications including liturgies , groups on Twitter Inc. and other social networks and even a cross-shaped USB key are among signs people want to share ideas on their faith, nun Maria Trigila , one of the contributors to the book “Publishing, Media and Religion,” said in an interview. “Religion-related Web sites are spreading like wildfire,” said Trigila. “We’re facing a ‘theoblogical’ revolution. The Church believes technology is one of the keystones for the future.” Youth Trends The Vatican, the world’s smallest state and home to the Pope, has flip-flopped between embracing new technologies and traditions, seeking to reach out to young generations without estranging older churchgoers. In 2007, the Pope lifted a ban on celebrating Latin Mass in an effort to heal a 40-year-old spat with traditionalists, while a year later he took the online pseudonym ‘Bxvi’ in his first foray into Catholic forums in Internet chat rooms. Emerging “spiritual” trends among young people include listening to religious podcasts, watching online videos and visiting Web sites of their churches, according to a February study by Ventura, California-based Barna Research Group. Padrini, the Stazzano priest, set up a Webcam in his parish to broadcast Mass and had to open a second account on Facebook after reaching 5,000 friends. ‘Holy Trivia’ Padrini also masterminded iBreviary, an application for Apple Inc. ’s iPhone, Research In Motion Ltd. ’s Blackberry and other mobile phones with computer capabilities. He teamed up with Web developer Dimitri Giani to create an application containing hymns, psalms and prayers prescribed for each day, in five languages. It was the first application to obtain the Vatican’s approval, Giani said. “Younger generations go to the Internet to get what they need,” Padrini said. Giani is working on “ Holy Trivia ,” a video game with quizzes on the Bible and religious matters to approach the sacred texts in an “instructive and enjoyable” way. He said he plans to submit the videogame application to Apple for approval in coming weeks. “Demand for iPhone applications is very high, but in the religion field there is still a lot to do,” Giani said. The Web 2.0, or the second generation of the World Wide Web focusing on interactive and shareable content, may foster new links with the faithful. Digital Rosary The digital rosary, where a leading voice accompanies the recitation of the prayer, was unveiled last month and presented as the social network of prayer . “A year ago, the electronic rosary was developed, a small device that even I carry with me in the car,” Archbishop Giovanni Tonucci said in a statement. “It was a success, so we decided to open up to new horizons through mobile phones.” Barcelona-based industrial designer Gerard Moline developed the USB lab, which has the double functionality of a cross and key drive and “symbolizes the adaptation to the social and cultural changes in the information age,” he said. The Vatican’s efforts to tap digital technologies go back to the 1990s. As his health began to fail, Pope John Paul II started the official Vatican Web site in 1995 and sent text messages to Catholic subscribers to his weekly Angelus prayer. The late pontiff also called the Internet a tool to “promote justice and solidarity.” The Vatican’s Internet TV channel, meanwhile, offers “news coverage of the main activities of the Holy Father and Vatican events” and has 19,600 subscribers and more than 2.1 million total video views, according to the Web site. “You must find new ways to spread voices and images of hope through the ever evolving communication system that surrounds our planet,” the Pope Benedict said this year. To contact the reporters on this story: Chiara Remondini in Milan at cremondini@bloomberg.net ; Flavia Krause-Jackson at fjackson@bloomberg.net .

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Berlusconi May Spend Second Night in Hospital After Attack on Milan Street

December 14, 2009

By Steve Scherer and Lorenzo Totaro Dec. 14 (Bloomberg) — Italian Prime Minister Silvio Berlusconi may remain in a Milan hospital until tomorrow after suffering cuts to his face and a broken nose in an attack at a political rally. Berlusconi had a headache this morning and “and asked for today’s newspapers” after waking up, Paolo Klun, the head of communications at San Raffaele hospital in Milan, said in an interview. The attack yesterday required stitches to his lip, damaged his front teeth and partially fractured his nose, his spokesman Paolo Bonaiuti said. Police are holding a man identified as Massimo Tartaglia, 42, who has been undergoing psychiatric treatment for 10 years. Tartaglia allegedly threw a statuette of the Milan cathedral at Berlusconi as the premier shook hands with supporters near the church known as the Duomo, said Armando Spataro , the Milan prosecutor heading the investigation. Political tensions are running high in Italy. Thousands of protesters called for Berlusconi’s resignation at a Rome rally last week, and a Mafia turncoat recently accused Berlusconi of ties to organized crime. Sex scandals and corruption cases have helped push his popularity to its lowest level since April 2008. Berlusconi has denied any wrongdoing and said Italian judges are out to destroy him politically and topple his government. Psychological Problems Tartaglia has no criminal record and was not politically active. He suffered from psychological problems since he was 18, but had never been aggressive or violent, his father Alessandro Tartaglia told SKY TG24. He also said he called the San Raffaele hospital last night to apologize to Berlusconi. Television news programs showed images of a bloodied Berlusconi with cuts and gashes on his face. “For months there has been a campaign of hatred against Berlusconi,” said Defense Minister Ignazio la Russa, who was with the prime minister at the time of the attack. President Giorgio Napolitano and most opposition politicians condemned the attack. Napolitano renewed a call for politicians to tone down their rhetoric and said in a statement that debate should “remain within responsible limits of self- control and civil confrontation.” Climate of Violence Some in the opposition accused Berlusconi of creating a climate of violence that may have contributed to the attack. “Berlusconi cannot consider himself a victim,” Rosy Bindi , chairwoman of the opposition Democratic Party , told La Stampa in an interview today. “He is among the creators of this climate.” The attack was an “insane act that we need to condemn,” said Antonio Di Pietro , a former magistrate and leader of another opposition party, Italian Values . “But it’s another thing entirely discussing the faults of a government which contributes to a climate of hatred.” Italian police will meet today to review Berlusconi’s security detail and “examine minute by minute what happened yesterday,” Deputy Interior Minister Alfredo Mantovano said in an interview on television network Canale 5. The government had received information from intelligence services about possible threats to Berlusconi, Mantovano said. To contact the reporters on this story: Steve Scherer at sscherer@bloomberg.net

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Office Tower in Charlotte’s Arts District Prepares for Opening

December 7, 2009

The 15-story 440 South Church office tower at Church and First streets in Charlotte, NC’s South Tryon Arts District will hold a grand opening on Dec. 15. The 365,000-square-foot building is opening at 52% occupancy. HDR Engineering has already completed…

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Berkshire Hathaway Venture Wins Auction for Capmark Loan Unit, Lawyer Says

November 24, 2009

By Steven Church and Andrew Frye Nov. 24 (Bloomberg) — Capmark Financial Group Inc., the bankrupt lender to office and apartment builders, agreed to sell its loan-servicing unit to Warren Buffett’s Berkshire Hathaway Inc. and Leucadia National Corp. , a lawyer for Capmark said. The partnership between Berkshire and Leucadia, called Berkadia, won an auction for the servicing unit, beating out an affiliate of PNC Financial Services Group Inc. , attorney Michael Kessler told the judge overseeing Capmark’s bankruptcy case during a hearing today in Wilmington, Delaware. Berkadia increased its offer by $25 million and converted a $75 million note to cash, adding $100 million in cash to the deal, Kessler said in court today. The total value of the deal climbed to about $468 million from $408 million, Kessler said. “Berkadia increased its bid, I believe, to get us to break off talks with PNC Bank,” Kessler told U.S. Bankruptcy Judge Christopher Sontchi , who must approve the deal before it can be completed. Sontchi is currently holding a hearing on the proposed sale. Horsham, Pennsylvania-based Capmark filed bankruptcy Oct. 25, blaming falling property values and a drop in lending. As of June 30, Capmark had $20.1 billion in assets and debts of $21 billion. The company lost $1.6 billion in April, May and June, according to court records. Buffett, who oversees businesses ranging from insurance to energy production, is investing Berkshire’s cash in assets hobbled by the property-market decline. Last year, he agreed to buy loans backing factory-built homes from CIT Group Inc. Capmark, owned by firms including KKR & Co. and Goldman Sachs Group Inc. , paid Berkadia $40 million in September for a so- called put option requiring Berkadia to buy the servicing unit unless a higher offer came in. Buffett “wants to own good businesses over a long period of time,” said Paul Howard , an analyst with Janney Montgomery Scott LLC’s Langen McAlenney division in Hartford, Connecticut. “But when the world is freaking out over commercial real estate, and they’re giving him a price far below what he thinks is the worst-case scenario, he’s going to be opportunistic.” The case is In re Capmark Financial Group Inc., 09-13684, U.S. Bankruptcy Court, District of Delaware (Wilmington). To contact the reporters on this story: Steven Church in Wilmington at schurch3@bloomberg.net ; Andrew Frye in New York at afrye@bloomberg.net .

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Lender That Really Does God’s Work Is Slowed as Mortgage Funding Dries Up

November 18, 2009

By Miles Weiss Nov. 18 (Bloomberg) — Mark Holbrook helped fuel a church construction boom by originating more than $3 billion of mortgages in the past decade, transforming a $2 million credit union he joined after Bible college into the largest U.S. evangelical lender. Evangelical Christian Credit Union , run by Holbrook since 1979, was the leading force behind the increase in credit flowing to churches in the form of five-year commercial mortgages with minimal monthly payments and lower initial costs than bond sales, the other widely used form of financing. Unlike the banks that joined the trend, ECCU catered exclusively to evangelical ministries, putting 83 percent of its assets in loans on churches and religious schools. Now, the Brea, California-based company’s delinquency rate has more than doubled since the end of 2007 and mortgage originations have slumped because of a decline in financing. Commercial church mortgages are coming due with so-called balloon payments, replacement loans have disappeared and the highest unemployment rate in 26 years has cut congregant donations. About 145 churches have gone into bankruptcy since the credit crunch accelerated in 2008, an upheaval in a lending niche that bankers once ranked among the safest in real estate. “We have seen more church foreclosures and bank-pressured sales, if you will, in this last year than we have seen in 20 years,” said Matthew Messier, a principal at CNL Specialty Real Estate Services Corp. , a broker in Orlando, Florida, that caters to religious and educational clients. “A lot of people think commercial is going to get worse before it gets better, and it could be the same for many churches.” ‘Unsettling Rumors’ Rising delinquencies have led to speculation about ECCU’s financial health, the company said. Chief Financial Officer Brian Scharkey, appearing in a video discussing the company’s third-quarter finances, said there were “some unsettling rumors floating around” among ministry leaders, including the possibility that ECCU might go bankrupt. “ECCU is one of the healthiest institutions in the country,” Holbrook said in the video on ECCU’s Web site, citing a capital ratio of 11 percent that he called among the highest in the industry. “We don’t see any even remote possibility of bankruptcy on the horizon.” Still, some ministries are having trouble repaying ECCU. As of Sept. 30, about 10.7 percent of the $943 million of first mortgages held by ECCU were more than 30 days overdue, according to a filing with the National Credit Union Association. That’s an increase from 6.9 percent a year earlier and 4.2 percent at the end of 2007. Losses Remain Low In comparison, Bank of the West, a unit of France’s BNP Paribas SA with $1.2 billion of church loans, has a 30-day delinquency rate of less than 1 percent, according to spokesman John Stafford. The delinquency rate for commercial real estate loans held by all U.S. banks was 7.7 percent at the end of June, according to data from the Federal Reserve. The rising delinquencies haven’t resulted in substantial write-offs , in part because ECCU loans on average equal 58 percent of underlying property values, providing a buffer against potential losses on the sale of foreclosed mortgages, according to Mark Johnson, an ECCU vice president. The company, which had never charged off a church mortgage prior to 2007, has since had about $4.3 million in losses, including $3.14 million during the first nine months of this year. That equals about 0.39 percent of average loans, compared with a charge-off rate of 2.24 percent for commercial lenders overall, according to Federal Reserve data for the end of June. “These churches are broadly and significantly keeping their commitments,” Johnson said in an interview. ECCU works with congregations to restructure their finances and avoid foreclosure, Holbrook said in the video. Construction Boom Holbrook, 59, landed a job at ECCU’s predecessor credit union in 1975, about a year after graduating from Biola University , formerly known as the Bible Institute of Los Angeles. He was running the company within four years, and positioned it to feed an expansion in which annual spending on houses of worship would rise to $6.3 billion in 2007 from $3.8 billion in 1997, according to estimates by the U.S. Census Bureau in Washington. Holbrook in 1987 shifted ECCU’s lending to evangelical ministries from individual customers, and in 1998 hired the lobbying firm William D. Harris & Associates to successfully obtain an exemption from legislation that bars credit unions from having more than 12.25 percent of assets in business loans . At the end of 2008, about 123 credit unions had been granted the exemption, which allows ECCU to write more loans for churches. There are about 7,770 credit unions in the U.S. Ministry as Bank “We are a ministry structured as a credit union that functions as a commercial bank” said Jac La Tour, a spokesman for ECCU. Lloyd Blankfein , chief executive officer of Goldman Sachs Group Inc., created a stir when he told the Sunday Times of London that he’s just a banker “doing God’s work.” Lucas van Praag , a spokesman for the New York-based bank, later said Blankfein’s comment was “an obviously ironic, throwaway response.” At ECCU, whose mission is to “increase the effectiveness of evangelical ministries,” first-mortgage originations soared to $661 million in 2008 from $50 million in 2000, according to company filings with the credit union administration in Alexandria, Virginia. Market Leader That’s more than half of the combined $1 billion in mortgages written annually by the top 10 church lenders, including Bank of the West in San Francisco and Bank of America Corp. in Charlotte, North Carolina, said David Dennison , principal at Church Mortgage Solutions, a Colorado Springs, Colorado, company that helps ministries obtain financing. ECCU has originated almost $3.2 billion in first mortgages overall since 2000. “ECCU had the largest share of the market, probably by a lot,” Holbrook said in a telephone interview. The credit union long prospered, according to company documents that show its return on assets averaged 1.66 percent during the past decade, compared with 0.75 percent for peers. Now, ECCU has curtailed lending because the credit unions that financed its operations have pulled back, according to Holbrook. Its mortgage originations fell to $130.6 million in the first nine months of 2009 from $579.1 million a year earlier, filings show. This comes at a time when many churches face balloon payments on maturing five-year mortgages provided by ECCU earlier in the decade. Financing Alternatives ECCU began considering alternative financing options earlier this year. Regulatory reports show that the credit union pledged $299 million of church loans in the first quarter to the Federal Reserve to become eligible to borrow from the Fed’s discount window as many banks do. Holbrook said in a July e-mail that the company had no plans to borrow from the Fed “in the foreseeable future.” In a company document dated Sept. 8, ECCU said it may raise money early next year for a private fund that would invest in its church mortgages. Johnson, the ECCU vice president, said that the credit union has been able to roll over all of its maturing loans to date, in part by cutting back on the origination of new mortgages. Churches Strained The rising U.S. jobless rate, which hit 10.2 percent in October, is crimping donations, the main source of income for many churches. Still, the borrowing binge of the past decade is a bigger factor in the rising number of religious foreclosures and delinquencies, said Dan Mikes, national manager of the church-and school-loan division at Bank of the West , which has recorded one loss in almost 20 years of lending to ministries. “The reason ministries are losing buildings is that they got into way too much debt to begin with,” Mikes said. Bond underwriters that also finance churches trace the current crisis to lax underwriting standards at rival commercial lenders and community banks. ECCU in particular would offer a ministry a larger loan than bond firms were willing to make based on that church’s income and property values, said Philip Myers , president of American Investors Group Inc. , a Minnetonka, Minnesota, brokerage that specializes in underwriting mortgage- secured bonds for churches. “We were constantly being outbid on deals where they were lending far too much money,” he said. Strict Standards ECCU uses strict underwriting standards in deciding whether to lend and has thrived thanks to its knowledge of churches and the way they work, Johnson, the vice president, said. “I am not aware of situations in which we stood out from competitors because ECCU was willing to make larger loans than other lenders were willing to make,” he wrote in an e-mail. The lender has increased the amount of loans it has modified, according to financial statements. At the end of September, ECCU had modified $140 million of real estate loans for borrowers who were unable to meet the original terms of the debt, up from $3.8 million a year earlier. The credit union’s foreclosed real-estate climbed to $26.9 million as of September from $10.3 million a year earlier. The credit union sent seven foreclosure notices in 2008 and four this year, according to the video on ECCU’s Web site. Falling into trouble were both small borrowers and mega-churches such as Ambassadors International Ministries in Lemon Grove, California, county property records show. ECCU subsequently modified terms of a loan to another mega-church, Without Walls International Church in Tampa, Florida, after sending a foreclosure notice, according to the records. Andrew Lord, an outside spokesman for Without Walls, and Steven Houbeck, an attorney representing Ambassadors International, didn’t return telephone calls seeking comment. Ambassadors International filed for bankruptcy protection in July. Understanding the Customer ECCU executives say the company’s understanding of faith- based finance appeals to churches when they are selecting a lender. For instance, ECCU eliminated prepayment penalties, a common feature of commercial mortgages, thereby allowing churches to retire their debts ahead of time at no additional cost. ECCU also set the terms of its five-year mortgages in a way that minimizes monthly principal payments, a step that helps churches qualify for larger loans. Hard to Compete In addition, commercial lenders such as ECCU charged about 0.5 percent to 1.5 percent of a loan’s face value to originate a church mortgage. Bond firms charged underwriting fees ranging from 3 percent to 7 percent of the amount raised. “It was very difficult” for the bond firms to compete with ECCU, said Bill Dodson, president of Ministry Partners Investment Co., an ECCU finance affiliate. The company financed its operations in part by selling stakes in some mortgages it originated to other credit unions that lacked the capacity or expertise to make business loans. As of Sept. 30, ECCU had sold $2.14 billion of interests in its mortgages while retaining stakes valued at $299.3 million, according to regulatory filings. ECCU “had these credit unions just lining up with truckloads of money because they never had a default,” said Stephen Ballas, a former president of the Ministry Partners affiliate. “Churches traditionally had been a very low-risk loan.” These credit unions began to cut back on their loan purchases last year as they came under government pressure to improve their own balance sheets, according to Charles Major, head of Share Financial Services Inc., a Dallas-based bond underwriter. During the third quarter, ECCU charged off $1.9 million of mortgages sold to credit unions, marking the first time this year it has disclosed losses on participation loans. “The Fed put the squeeze on the credit unions,” Major said. “That and changes in the credit crisis slowed down the participation of credit unions” with ECCU, he said. To contact the reporter on this story: Miles Weiss in Washington at mweiss@bloomberg.net

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Non-Christians May Find This Cross Hard to Bear: Ann Woolner

October 14, 2009

Commentary by Ann Woolner Oct. 14 (Bloomberg) — U.S. Supreme Court Justice Antonin Scalia , that towering intellect of the conservative legal movement, sounded appallingly ignorant last week. The question centered on the constitutionality of a Christian cross on government land to memorialize the American dead of World War I. Scalia first suggested during oral argument that the cross is fine because it’s less a religious symbol than the “most common” marker for graves. Can he be serious? Scalia didn’t stop there. When an American Civil Liberties Union lawyer pointed out that crosses never appear in Jewish cemeteries, Scalia reverted to bully mode. “I don’t think you can leap from that to the conclusion that the only war dead that that cross honors are the Christian war dead. I think that’s an outrageous conclusion,” Scalia declared. Did he believe his own words? He “seems to evaporate the real meaning of the cross,” says the Reverend John Pawlikowski , who teaches social ethics at the Catholic Theological Union in Chicago and directs its Catholic-Jewish studies program. The priest finds that surprising, given Scalia’s devotion to Catholicism. Scalia not only diluted the sacred meaning of the cross to Christians but brushed off the religious convictions of everyone else. Hundreds of thousands of non-Christians served in World War I. To memorialize the Jews, Muslims and other non-Christians who gave their lives for their country with a Christian cross doesn’t honor them. For many of their families, it insults them. Either Scalia is willfully ignorant or completely disingenuous. A Big Deal Though I can’t imagine he is one of them, clearly there are Christians who honestly don’t see what the big deal is about. They believe most church-state disputes are political correctness run amuck, obstacles to the free exercise of religion, the result of an erroneous parsing of constitutional language or some combination of those three. Why get so worked up over a cross in the Mojave Desert or school-sponsored prayer in classrooms? Most Americans are Christians, after all, and the rest of us should simply get used to it. This column is for them. I make no attempt to say which religion, if any, is the True One. Nor do I discount the abundant good works of people of faith. I’m in no position to say which religions have been the most violent or most tolerant toward non-believers. There is a lot of finger-pointing to go around. Viewing the Controversy The point is to try to offer the majority a minority way of viewing the controversy. For starters, imagine the reaction if prayers spoken by public officials at government events declared that we still await the coming of the Messiah . The first coming. That would be blasphemy to many Americans, and clearly unconstitutional. However certain Christians are that Jesus was the Messiah, Jews are just as certain he wasn’t . Yet we are considered hypersensitive if we (yes, we) cringe when someone prays for us in the name of Jesus Christ. (In my inter-faith family, spoken prayers now end like this: In Jesus’ name some of us pray.) So let’s say that as a minority, you learned long ago to slough off that sort of thing, realizing people are well-meaning when they pray and intend no offense. Resort to Violence And yet, as a minority you know that discounting other people’s religion has a rather nasty history . Through millennia, Christians have been seeking out non-believers for conversion or worse. Periodically, they resort to violence. Under the banner of Christianity and the sign of the cross, Christians for centuries tortured and murdered those who refused to convert. They did it to Jews and Muslims during the Crusades and to those whose conversions were deemed insincere during the Spanish Inquisition. Christians have chased Jews out of their native countries, driven religious practices underground, moved Jews into ghettos, forced attendance at conversion services and destroyed synagogues, shops and homes, all out of religious conviction. As for the Holocaust, Adolph Hitler killed 6 million Jews for racial, not religious, reasons, it’s true. But how did he get so far? “Christian anti-Semitism provided an indispensible seedbed for the success of Nazism on the popular level,” writes Pawlikowski. No Holocaust I don’t equate a cross in the American desert with the Holocaust. Nor do I hold my contemporaries responsible for the acts of their ancestors, and I know that many Christians have throughout history risked their own skins to save Jews. The Catholic Church and some denominations have acknowledged and even denounced their intolerant pasts. But even today, members of the Church of Jesus Christ of Latter Day Saints vicariously baptize the Jewish dead among others who in life chose not to join the church. Mormons see the practice as bestowing a blessing. They have baptized thousands of Holocaust victims, not to mention Nazi hunter Simon Wiesenthal, scientist Albert Einstein , artist Marc Chagall , lyricist Irving Berlin and Israel’s first prime minister, David Ben-Gurion, according to genealogist Bernard Kouchel. Jewish outrage prompted some curtailing of the practice, but not an end to it. There is nothing government can do about that, nor should it. But if you want to begin to understand why Jews get nervous if government favors a religion, it’s all a part of the picture. What unsettles me more than a cross in the Mojave is the realization that millions of Americans don’t understand why it might be worrisome. For a Supreme Court justice to convey such ignorance is, to use his word, outrageous. ( Ann Woolner is a Bloomberg News columnist. The opinions expressed are her own.) Click on “Send Comment” in the sidebar display to send a letter to the editor. To contact the writer of this column: Ann Woolner in Atlanta at awoolner@bloomberg.net .

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Chicago Cubs Receive Approval for Sale to Ricketts Family After Bankruptcy

October 13, 2009

By Steven Church Oct. 13 (Bloomberg) — The Chicago Cubs won court approval to transfer control of the baseball team to the family of Joe Ricketts , the TD Ameritrade Holding Corp. ’s founder, one day after the sports franchise filed for bankruptcy. The team yesterday joined its owner, the newspaper publishing company Tribune Co. , in court protection as part of a plan to transfer the Cubs to the Ricketts family. The $845 million in loans to fund the sale is in escrow awaiting the approval of U.S. Bankruptcy Judge Kevin Carey , Bryan Krakauer , a Cubs lawyer, said today in court in Wilmington, Delaware. “The transaction is ready to close, save for the approval of this court,” Krakauer said. Using a process previously approved by Carey, Tribune will transfer the Cubs to a new entity controlled by the family. Chicago-based Tribune is to keep a 5 percent stake in the team. The deal promises to bring Tribune creditors $740 million, according to court records. Arrangements for the bankruptcy and the sale in the two months leading up to today’s ruling included notifying more than 9,000 creditors of the team of the transfer and the planned Chapter 11 filing, Krakauer said. The Cubs case is In re: Chicago National League Ball Club LLC, 09-13496, and the Tribune case is In re Tribune Co., 08- 13141, U.S. Bankruptcy Court, District of Delaware (Wilmington). — Editors: John Pickering , Charles Carter. To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net .

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Chicago Cubs Receive Approval for Sale to Ricketts Family After Bankruptcy

October 13, 2009

By Steven Church Oct. 13 (Bloomberg) — The Chicago Cubs won court approval to transfer control of the baseball team to the family of Joe Ricketts , the TD Ameritrade Holding Corp. ’s founder, one day after the sports franchise filed for bankruptcy. The team yesterday joined its owner, the newspaper publishing company Tribune Co. , in court protection as part of a plan to transfer the Cubs to the Ricketts family. The $845 million in loans to fund the sale is in escrow awaiting the approval of U.S. Bankruptcy Judge Kevin Carey , Bryan Krakauer , a Cubs lawyer, said today in court in Wilmington, Delaware. “The transaction is ready to close, save for the approval of this court,” Krakauer said. Using a process previously approved by Carey, Tribune will transfer the Cubs to a new entity controlled by the family. Chicago-based Tribune is to keep a 5 percent stake in the team. The deal promises to bring Tribune creditors $740 million, according to court records. Arrangements for the bankruptcy and the sale in the two months leading up to today’s ruling included notifying more than 9,000 creditors of the team of the transfer and the planned Chapter 11 filing, Krakauer said. The Cubs case is In re: Chicago National League Ball Club LLC, 09-13496, and the Tribune case is In re Tribune Co., 08- 13141, U.S. Bankruptcy Court, District of Delaware (Wilmington). — Editors: John Pickering , Charles Carter. To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net .

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Chicago Cubs Team Files For Bankruptcy as Part of Sale to Ricketts Family

October 12, 2009

By Steven Church Oct. 12 (Bloomberg) — The Chicago Cubs filed for bankruptcy as part of a plan by owner Tribune Co. to sell the baseball team to the family of TD Ameritrade Holding Corp. founder Joe Ricketts . Chicago National League Ball Club LLC listed assets and debts of more than $1 billion in documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. The company’s board approved the bankruptcy, saying it “is desirable and in the best interest of the company,” according to the Chapter 11 petition. Under a process approved last month by U.S. Bankruptcy Judge Kevin Carey , Tribune plans to transfer the Cubs to a new entity controlled by the Ricketts family. Tribune, the bankrupt newspaper and television company, would retain a 5 percent stake in the team. The deal, worth about $845 million, would bring Tribune creditors $740 million, according to court records. Because the transaction is a so-called leveraged partnership, it will enable Tribune to avoid paying about $300 million in taxes, according to tax consultant Robert Willens , who teaches a class on tax law at the business school at Columbia University. December Filing Should Carey grant final court approval for the deal, Tribune would take cash out of the partnership, which is funded by debt. The structure allows Tribune to avoid taxes it would pay as part of a traditional sale, Willens said. Tribune filed for bankruptcy court protection in December, about a year after billionaire real-estate developer Sam Zell led the $8.3 billion purchase of the company. Tribune’s properties include the Los Angeles Times and the namesake Chicago newspaper. The Cubs have drawn more than 3 million spectators to their 95-year-old stadium in each of the past six seasons. Those fans fill Wrigley Field, on the city’s North Side, to root for a squad that hasn’t won a World Series since 1908, the longest drought in baseball. The team finished 83-78 this season, second place in the National League Central division behind St. Louis. The Cubs haven’t reached the World Series since 1945, when the team lost to the Detroit Tigers in seven games after tavern owner William Sianis cursed the franchise because his pet goat was ejected from a game. The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District of Delaware (Wilmington). To contact the reporter on this story: Steven Church in Wilmington, Delaware, at schurch3@bloomberg.net .

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Helicos Mapped RNA to Show Gene Roots of Disease, Build Better Treatments

September 23, 2009

By Elizabeth Lopatto Sept. 23 (Bloomberg) — Scientists from Helicos BioScience Corp. have mapped RNA , a key player in each person’s genetic blueprint, in a step that may boost researchers’ search for the roots of disease. The technique for showing the sequence of RNA is more accurate than a previous method, which required the RNA sample to be converted to its cousin DNA before it could be measured, according to a report in the journal Nature today. The technology will be commercially available as soon as next year and may benefit companies building new RNA-based drugs. Being able to identify RNA directly will uncover some corresponding areas of DNA previously called “junk” that has turned out to have valuable information, said Patrice Milos , the study’s head researcher. Many genetic markers of disease discovered in the last several years have been in the “junk” sections, said Milos, who is the chief scientific officer of Cambridge, Massachusetts-based Helicos. “Often, the particular genetic markers associated with common diseases lie outside the coding regions of genes,” Milos said. RNA is active in these regions so it may tell researchers what the gene segment’s purpose is. RNA, or ribonucleic acid, is a single-stranded molecule that helps translate genetic information from DNA into proteins that carry out DNA instructions. Researchers have found that RNA can block proteins from being made, a process called RNA interference. New Therapies Companies such as Alnylam Pharmaceuticals Inc. and RXi Pharmaceuticals are attempting to exploit RNA interference for therapies, in order to block actions of genes. Viruses are composed almost entirely of genetic material; cancer is principally a disease of flawed DNA. Turning off certain genes may halt the biological machinery that drives illnesses as varied as bird flu and AIDS. The new RNA sequencing technology will be available “sometime next year,” Milos said. It will be compatible with the HeliScope single molecule sequencing machine, which costs $999,000, Milos said. The individual channels for RNA analysis will cost $300 each. The HeliScope has two flow cells, each of which allows for 50 channels. A full analysis would be about $300 times 50, or $15,000, Milos said. Helicos shares fell 2 cents to $2.45 at 1:55 p.m. New York time in Nasdaq Stock Market composite trading. The share price has increased more than sixfold this year before today. Moving Target Direct mapping of RNA will be used more often if it demonstrates it’s better than previous methods, if it’s relatively simple, and if it doesn’t cost too much, said George Church , a Harvard University scientist whose findings helped spur the U.S. human genome project in the 1980s. “The competition is a moving target, but for now, Helicos is a clear leader on all three,” Church said in an e-mail. He wasn’t involved in today’s research report. Researchers are already moving away from using DNA microarrays, a way of examining DNA, to newer ways to sequence gene molecules, Church said. “This will drive that trend even further,” Church said in the e-mail. Previously, to sequence RNA, researchers created so-called complementary DNA through a chemical reaction. When the Helicos researchers compared the direct sequencing of RNA to the complementary DNA method, they found that 4 percent to 5 percent of the molecules measured in the DNA method were created in the conversion process. Direct sequencing, on the other hand, detected exactly what had been put in the test tube, Milos said. “There really were some biases that were created through complementary DNA,” Milos said. To contact the reporter on this story: Elizabeth Lopatto in New York at elopatto@bloomberg.net .

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Working-Class Boston Neighborhood Turns Out for Favorite Son’s Last Hurrah

August 29, 2009

By Tom Moroney and Karen Leigh Aug. 30 (Bloomberg) — Well-wishers plastered old campaign banners and American flags on graffiti-smudged brick walls. They peered from apartment windows and stood in the rain in front of tiny shops in Boston’s Mission Hill section yesterday as scores of dignitaries arrived for the funeral of Senator Ted Kennedy . The Basilica of Our Lady of Perpetual Help , a towering stone church on Tremont Street, was chosen because Kennedy had prayed for help there when his daughter, Kara, was sick with lung cancer in 2002. Pulitzer-winning historian Doris Kearns Goodwin , waiting in the rain to get into the funeral Mass, saw another reason for picking what is simply called Mission Church. “See all the people in the windows there,” Goodwin said, pointing to those looking out from three-story working-class apartments across the street as dignitaries’ limousines pulled up at the church. “It really shows the roots of this Kennedy family .” “It’s just extraordinary,” she said. Both Kennedy’s grandfathers were prominent Boston politicians, drawing their power from a similar working-class base. On his mother’s side, John “Honey Fitz” Fitzgerald was elected the first Irish-American mayor of the city in the early 1900s. On his father’s side, P.J. Kennedy was a saloon owner and ward boss. The 1914 marriage of their children, Kennedy’s parents, Rose and Joseph, was seen as a merger of the two powerful families. Racially Mixed Mission Hill has a total of 18,000 blacks, whites, Hispanics and Asians with 36 percent of residents living below the poverty line, according to census data. Near the church on Tremont Street are an auto parts shop, laundromat and doctors’ offices. A deli outside the security zone swarmed with those seeking a glimpse the politicians and business chiefs showing up for the funeral of Kennedy, who died Aug. 25 at age 77 of brain cancer. William Bulger , the former president of the Massachusetts Senate who was raised in Boston’s Southie neighborhood, told of the first time he met Kennedy in 1962. Kennedy aides had invited him to Locke-Ober restaurant hoping to enlist him in Kennedy’s first Senate campaign. Lobster Dish Bulger said he ordered an expensive lobster dish and was so busy eating he never looked up until someone suggested he acknowledge his host. Kennedy quipped, “Don’t worry about him. We couldn’t afford to feed him anyway,” Bulger recalled. Christine Schwarzman , wife of Blackstone Group Chief Executive Officer Stephen Schwarzman , said, “It was a privilege to have known Ted and to know Vicki,” the late senator’s wife who spent hours greeting mourners when her husband’s body lay in repose at the John F. Kennedy Presidential Library & Museum. Boston Celtics Hall-of-Fame center Bill Russell was there, as was Boston Red Sox owner John Henry and cellist Yo-Yo Ma , who performed at the Mass. Across from the church as guests continued to move through the security check, staff at youth center Sociedad Latina had painted its windows in tribute to Kennedy. “The hope still lives and the dream shall never die,” read part of one message, borrowing from Kennedy’s 1980 speech at the Democratic National Convention after losing the primary race to President Jimmy Carter . Slept at Office Executive director Alexandra Oliver said she and some of the staff slept in the office overnight because they were told they wouldn’t be able to gain entrance in the morning. “Kennedy loved this community,” she said. Caprice Taylor Mendez, 36, originally from Guatemala , said she was inspired by Kennedy to become a citizen in 1998. “We need more people with that spirit who believe in human rights,” she said. “It’s really messed up,” said pizza-shop worker Antonio Gomez, 30, of Kennedy’s death. “He did good for the people.” At security blockades where waves of multicolored umbrellas could be seen, dozens stood in the rain. “I don’t really care if I get wet,” said Brian Ebel, 32, of Millis, Massachusetts , 18 miles west of Boston. “I definitely was a fan. I grew up here and he’s just always been a part of my life.” Best View Among those with the best view were apartment dwellers directly across from the church, some of them students attending local colleges. Sipping from a coffee mug inside a first-floor window, Ryan Dunleavy, 23, a recent college graduate, said he knew about the Kennedy family from a young age. “My grandmother was the first woman selectman in my hometown and so we’d hear about them all the time,” he said. “She was like the Rose Kennedy where I come from.” His boyhood friend, Ryan Berube, 22, a Northeastern University finance student, sat next to him. “You hear all about the Kennedy curse, that he was the only brother to live out his natural life, and then you hear about all the things he’s done for civil rights and other issues,” Berube said. “It’s incredible really,” he said. “Really incredible.” To contact the reporters on this story: Tom Moroney in Boston at Or tmorrone@bloomberg.net Karen Leigh in Washington at kleigh@bloomberg.net .

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Boston’s Gritty Mission Hill Section Was Scene for Kennedy’s Last Hurrah

August 29, 2009

By Tom Moroney and Karen Leigh Aug. 29 (Bloomberg) — Well-wishers plastered American flags and old campaign banners on graffiti-smudged brick walls. They peered from apartment windows and stood in the rain in front of tiny shops in Boston’s Mission Hill section as scores of dignitaries arrived for the funeral of Senator Ted Kennedy . The Basilica of Our Lady of Perpetual Help , a towering stone church on Tremont Street, was chosen because Kennedy had prayed for help there when his daughter, Kara, was sick with lung cancer in 2002. Pulitzer-winning historian Doris Kearns Goodwin , waiting in the rain to get into the funeral Mass, saw another reason for picking what is simply called Mission Church. “See all the people in the windows there,” Goodwin said, pointing to those looking out from three-story working-class apartments across the street as dignitaries’ limousines pulled up at the church. “It really shows the roots of this Kennedy family .” “It’s just extraordinary,” she said. Both Kennedy’s grandfathers were prominent Boston politicians, drawing their power from a similar working-class base. On his mother’s side, John “Honey Fitz” Fitzgerald was elected the first Irish-American mayor of the city in the early 1900s. On his father’s side, P.J. Kennedy was a saloon owner and ward boss. The 1914 marriage of their children, Kennedy’s parents, Rose and Joseph, was seen as a merger of the two powerful families. Racially Mixed Mission Hill has a total of 18,000 blacks, whites, Hispanics and Asians with 36 percent of residents living below the poverty line, according to census data. Near the church on Tremont Street are an auto parts shop, laundromat and doctors’ offices. A deli outside the security zone swarmed with those seeking a glimpse the politicians and business chiefs showing up for the funeral of Kennedy, who died Aug. 25 at age 77 of brain cancer. William Bulger , the former president of the Massachusetts Senate who was raised in Boston’s Southie neighborhood, told of the first time he met Kennedy in 1962. Kennedy aides had invited him to Locke-Ober restaurant hoping to enlist him in Kennedy’s first Senate campaign. Lobster Dish Bulger said he ordered an expensive lobster dish and was so busy eating he never looked up until someone suggested he acknowledge his host. Kennedy quipped, “Don’t worry about him. We couldn’t afford to feed him anyway,” Bulger recalled. Christine Schwarzman , wife of Blackstone Group Chief Executive Officer Stephen Schwarzman , said, “It was a privilege to have known Ted and to know Vicki,” the late senator’s wife who spent hours greeting mourners when her husband’s body lay in repose at the John F. Kennedy Presidential Library & Museum. Boston Celtics Hall-of-Fame center Bill Russell was there, as was Boston Red Sox owner John Henry and cellist Yo-Yo Ma , who performed at the Mass. Across from the church as guests continued to move through the security check, staff at youth center Sociedad Latina had painted its windows in tribute to Kennedy. “The hope still lives and the dream shall never die,” read part of one message, borrowing from Kennedy’s 1980 speech at the Democratic National Convention after losing the primary race to President Jimmy Carter . Slept at Office Executive director Alexandra Oliver said she and some of the staff slept in the office overnight because they were told they wouldn’t be able to gain entrance in the morning. “Kennedy loved this community,” she said. Caprice Taylor Mendez, 36, originally from Guatemala , said she was inspired by Kennedy to become a citizen in 1998. “We need more people with that spirit who believe in human rights,” she said. “It’s really messed up,” said pizza-shop worker Antonio Gomez, 30, of Kennedy’s death. “He did good for the people.” At security blockades where waves of multicolored umbrellas could be seen, dozens stood in the rain. “I don’t really care if I get wet,” said Brian Ebel, 32, of Millis, Massachusetts , 18 miles west of Boston. “I definitely was a fan. I grew up here and he’s just always been a part of my life.” Best View Among those with the best view were apartment dwellers directly across from the church, some of them students attending local colleges. Sipping from a coffee mug inside a first-floor window, Ryan Dunleavy, 23, a recent college graduate, said he knew about the Kennedy family from a young age. “My grandmother was the first woman selectman in my hometown and so we’d hear about them all the time,” he said. “She was like the Rose Kennedy where I come from.” His boyhood friend, Ryan Berube, 22, a Northeastern University finance student, sat next to him. “You hear all about the Kennedy curse, that he was the only brother to live out his natural life, and then you hear about all the things he’s done for civil rights and other issues,” Berube said. “It’s incredible really,” he said. “Really incredible.” To contact the reporters on this story: Tom Moroney in Boston at Or tmorrone@bloomberg.net Karen Leigh in Washington at kleigh@bloomberg.net .

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Senator Kennedy Is Mourned by Nation’s Political Elite at Boston Funeral

August 29, 2009

By James Rowley and Alison Fitzgerald Aug. 29 (Bloomberg) — The nation’s political elite gathered at a Roman Catholic basilica in Edward Kennedy’s hometown of Boston and bade farewell to the Massachusetts senator whose legislative career spanned almost a half century. President Barack Obama and Vice President Joseph Biden led a Washington delegation of Cabinet officials and lawmakers, including House Speaker Nancy Pelosi and Republican Senator John McCain , who attended the two-hour service. Three former presidents, George W. Bush , Bill Clinton and Jimmy Carter , also assembled at the Basilica of Our Lady of Perpetual Help with members of the Kennedy clan, which includes California Governor Arnold Schwarzenegger , who is married to the late senator’s niece, Maria Shriver . “The world will long remember” Kennedy as “heir to a weighty legacy, a champion for those who had none; the soul of the Democratic Party; the lion of the U.S. Senate,” Obama said of the youngest brother to U.S. President John F. Kennedy, slain in 1963, and New York Senator Robert Kennedy, who was murdered during a 1968 quest for the nation’s highest office. Kennedy was given “the gift of time that his brothers were not” and “used that gift to touch as many lives and right as many wrongs as the years would allow.” ‘Compassion and Service’ In a tribute to Kennedy’s religious faith, the Reverend J. Donald Monan said that the late senator’s “zealously private” life of faith and prayer “held the secret to the extraordinary public life of compassion and service.” The body of Kennedy, who died Aug. 25 at age 77 of brain cancer, was borne to the church by a hearse from where it had lain in repose at the John F. Kennedy Presidential Library and Museum. A steady rain fell as Kennedy’s widow, Victoria Reggie Kennedy , and other family members waited outside the basilica as the senator’s flag-draped coffin was carried into the church by a military honor guard. A faint aroma of incense permeated the sanctuary as the honor guard carried the casket down the aisle. Kennedy’s daughter, Kara Kennedy , led the congregation in responsive reading of Psalm 72 with the refrain: “Justice shall flourish in his time and fullness of peace forever.” Ten of Kennedy’s grandchildren, nieces and nephews led the congregation in prayers, paraphrasing some of the late senator’s most familiar lines. These included Kennedy’s plea for universal health-care legislation, now pending in Congress. ‘Cause of His Life’ “For what my grandpa called the cause of his life, as he said that every American have decent quality health care as a fundamental right and not a privilege, we pray to the Lord,” said Max Allen, one of Kennedy’s grandsons. “The work begins anew, the hope rises again and the dream lives on,” said another grandson, Teddy Kennedy. Cellist Yo-Yo Ma played the Sarabande from Bach’s Cello Suite No. 6. During communion, tenor Placido Domingo, accompanied by Ma, sang Cesar Franck’s “Panis Angelicus.” And during lulls in the service, the sound of raindrops could be heard pounding on the church’s stain-glass windows. Those in attendance included Jesse Jackson , former Vice President Dan Quayle and Republican Senator Orrin Hatch of Utah, one of Kennedy’s closest collaborators on health-care legislation. “It is terribly sad that Ted is no longer here,” Blackstone Group Chief Executive Officer Stephen Schwarzman said as he waited outside the church to pass through a security checkpoint. ‘Thanks, Ted’ The president and the first lady, Michelle Obama , appeared somber as they entered the packed church. The congregation stood up as the president entered the sanctuary. Traffic signs on the highway that Obama’s motorcade traveled to the church flashed signs saying “Thanks, Ted.” The church is located in Roxbury, a working-class section of Boston where Kennedy had prayed daily for Kara Kennedy’s health while she was undergoing treatment for cancer. “This church was a place of private prayer for a public man,” Kennedy’s parish priest, the Reverend Mark Hession, said in the homily. It “sits in a neighborhood where the important issues that animated Senator Kennedy’s career as so plainly visible, the needs of the poor” so that “the senator’s choice of this church for his funeral mass resonates with the meaning and purpose of his life and work,” Hession said. Display of Flags Crowds lined up for the security check before 6 a.m. Many storefronts and apartment buildings in the neighborhood displayed large American flags. One storefront posted a large banner adorned with a peace sign read: “Teddy, Your Service Will Be Remembered.” Blue and white Kennedy campaign signs were posted over windows and brick walls with a one-word message: “Thanks.” Crowds of residents clutching multicolored umbrellas gathered several blocks away at the street corners that had been blocked off. Honorary pallbearers included Supreme Court Justice Stephen Breyer , a former Kennedy staffer, and Senators Christopher Dodd of Connecticut and John Kerry of Massachusetts. Another former Kennedy aide, Kenneth Feinberg , the U.S. Treasury’s special master for compensation of executives of financial firms that received U.S. bailout money, was also an honorary pallbearer. Family members at the funeral, led by Kennedy’s widow, included Kennedy’s three children, Kara, Edward Kennedy Jr . and Patrick Kennedy , a Rhode Island congressman, and his niece Caroline Kennedy , daughter of the late President Kennedy. Also in attendance was Kennedy’s first wife, Joan Kennedy, the mother of the couple’s children. Last Surviving Son Kennedy served in the Senate almost 47 years and was the last surviving son of the political dynasty that included his brothers John, the nation’s 35th president, and Robert, who served as attorney general in his brother’s Cabinet and later a New York senator. Kennedy was “a tower of strength for his family and a towering presence on the American landscape,” Hession said. Following a flight to Washington and a motorcade stop for a brief prayer outside the U.S. Capitol, Kennedy’s body was to be buried beside his brothers on a hilltop overlooking the capital city at Arlington National Cemetery. To contact the reporters on this story: James Rowley in Washington at jarowley@bloomberg.net ; Alison Fitzgerald in Boston at +1- a.fitzgerald@bloomberg.net

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Senator Kennedy’s Passion for Public Service Remembered on Eve of Funeral

August 28, 2009

By Tom Moroney Aug. 29 (Bloomberg) — Senator Edward Kennedy was remembered as a passionate public servant who loved his family, friends and a good laugh during a memorial service on the eve of his funeral and burial at Arlington National Cemetery. “It was never about him, it was always about you, a truly remarkable character trait,” said Vice President Joe Biden , one of many who recalled personal kindnesses performed for them by Kennedy. “Your father was a historic figure,” Biden said to Kennedy’s three children at the service last night at the John F. Kennedy Presidential Library and Museum in Boston. “He was a heroic figure beyond that” for his support of Americans trying to “start over again,” the vice president said. The funeral for Kennedy, who died Aug. 25 at age 77 of brain cancer, will be held today at Our Lady of Perpetual Help Basilica in Boston. President Barack Obama is scheduled to speak. Afterward, the senator will be buried at the national cemetery outside Washington near his two brothers — President Kennedy, assassinated in 1963, and Robert Kennedy, killed by a gunman in 1968. “John Fitzgerald Kennedy inspired our America; Robert Kennedy challenged our America; and Teddy changed our America,” said Senator Chris Dodd of Connecticut. “He was a champion for countless people who otherwise might not have had one, and he never quit on them, never gave up on the belief that we could make tomorrow a better day. Never.” Frequent Laughter The audience laughed frequently at the stories told by speakers. Dodd recalled that after he underwent prostate surgery a few weeks ago, Kennedy called him, saying in a booming voice, “between going through prostate cancer surgery and doing town hall meetings, you made the right choice!” Kennedy’s niece Caroline Kennedy , daughter of the late president, spoke about how her uncle used to take his nieces and nephews on “family history trips,” including one miserable campout that he abandoned to check into a Ritz hotel. “Now Teddy has become a part of history,” she said. Republican Senator Orrin Hatch of Utah recalled that although he came to Washington to “fight Ted Kennedy,” the senator wound up becoming “one of my closest friends in the world.” “He and I didn’t agree on much,” Hatch said, adding that Kennedy sometimes would “lay into me with the harshest red-meat liberal rhetoric you could imagine.” Minutes later, Kennedy would come up and ask him, “How’d I do, Orrin?” “I miss fighting in public and joking with him in the back room,” Hatch said, his voice quavering. ‘Large Family’ Kennedy’s nephew, Joseph P. Kennedy II , a former congressman and the son of the late New York Senator Robert Kennedy , said his uncle had to look after “one very, very large family” after the assassinations of Joseph’s father and President Kennedy. “For so many of us, we just needed someone to hang on to, and Teddy was always there to hang on to,” his nephew said. “He had such a big heart and he shared that heart with all of us.” Arizona Senator John McCain , last year’s Republican presidential nominee, said that when he and Kennedy worked together on an immigration bill, “he was the best ally you could have.” “He was the most reliable, the most prepared, and the most persistent member of the Senate,” McCain said. “He took the long view. He never gave up.” Work on Issues Massachusetts’ other senator, Democrat John Kerry , cited Kennedy’s work on matters such as the Americans With Disabilities Act, workplace safety, children’s health issues and Meals on Wheels. “He labored with all his might to make health care a right for all Americans and we will do that in his honor,” Kerry said. Cardinal Sean P. O’Malley will preside over today’s funeral in his role as Archbishop of Boston and will lead the final prayers of commendation. Obama’s eulogy is “obviously going to be very personal,” White House spokesman Bill Burton told reporters on Aug. 27. The president has been vacationing this week on the Massachusetts island of Martha’s Vineyard. More than 33,000 mourners filed past Kennedy’s flag-draped casket during the past two days at the library in Boston. His widow, Victoria , and other family members greeted visitors before the doors to the library, overlooking the Atlantic Ocean, were closed to the public yesterday. Thousands of People Thousands of people waited alongside roads and on overpasses two days ago to glimpse the black hearse bearing Kennedy’s body from his home in Hyannis Port. Before arriving at the museum, the motorcade toured Boston, the city Kennedy’s grandfather John F. Fitzgerald once served as mayor. Among the locations the motorcade passed were the federal building named for his brother John, the office where he served as a Suffolk County Assistant District Attorney and the church where his mother, Rose, was baptized. To contact the reporter on this story: Tom Moroney in Boston at tmorrone@bloomberg.net

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Constituents Line Up to Pay Final Respects to Kennedy at `End of an Era’

August 28, 2009

By Brian K. Sullivan and Sree Vidya Bhaktavatsalam Aug. 28 (Bloomberg) — Thousands of Massachusetts residents waited in line last night and more are expected today for a chance to pay their last respects to Senator Edward M. Kennedy . Kennedy, who was first elected to the post in 1962, lay in repose at Boston’s John F. Kennedy Presidential Library and Museum . The public was invited to view his flag-draped casket in the museum that honors his late brother, former U.S. President John F. Kennedy. “It’s the end of an era,” said Debbie Klapp, 55, a small business owner from the Boston suburb of Stoughton, who came to pay her respects to the senator, who died of brain cancer Aug. 25. “He has done so much for the common good of everybody.” Kennedy’s body was brought to the museum yesterday from his family’s compound in Hyannis Port, Massachusetts, about 70 miles (112 kilometers) south of Boston. Thousands of people lined the roads and overpasses to catch a glimpse of the black hearse bearing his body. Traffic on highways came to a halt in many places as motorists on the opposite sides of the road would just stop to watch the motorcade, which included about 85 family members. Kennedy’s wife, Victoria Reggie Kennedy , spoke briefly to reporters at the museum, thanking people for turning out to support her husband. In remarks carried on CNN, she said the sight of people lining the streets was “deeply, deeply moving for all of us.” ‘Extraordinary Thing’ “It is an extraordinary thing to have three brothers and as many sisters from one family make a contribution not only to this state but to this country,” former Massachusetts Lieutenant Governor Thomas P. O’Neill III said. “It is totally recognized on every street and every bridge crossing.” Kennedy’s funeral will be held tomorrow at Our Lady of Perpetual Help Basilica. President Barack Obama , vacationing this week on the Massachusetts island of Martha’s Vineyard, is scheduled to speak. Obama is “still working” on the eulogy, White House spokesman Bill Burton told reporters yesterday on Martha’s Vineyard. “It’s obviously going to be very personal.” Kennedy will be buried at Arlington National Cemetery near his two brothers — President Kennedy, assassinated in 1963, and New York Senator Robert F. Kennedy , killed by a gunman in 1968. Victoria Kennedy , Kennedy’s son Patrick , a congressman from Rhode Island , and his nephew Joseph Kennedy , a former congressman, were among the family members accompanying the senator’s body from his home in Hyannis Port. Honor Guard A military honor guard stood watch outside the home and escorted his body into the museum when it arrived in Boston. Before arriving at the museum, the motorcade toured Boston, the city his grandfather John F. Fitzgerald once served as mayor. Among the locations the motorcade passed were the federal building named for his brother John, the office where he served as a Suffolk County Assistant District Attorney and the church where his mother Rose was baptized. The hearse also passed City Hall, where Boston Mayor Thomas Menino and his wife, Angela, were among the thousands of people lining the street. “Today, the city of Boston will celebrate the life of Senator Kennedy,” Menino said in a statement. “I urge everyone to take a few minutes to remember his service to our city, state and country.” The bell atop Boston’s Faneuil Hall rang out 47 times, once for each year of Kennedy’s service in the U.S. Senate, as the hearse passed by. New Deal Kennedy represented one of the last generational links to Franklin D. Roosevelt ’s New Deal, said O’Neill, who is the son of former U.S. House Speaker Thomas P. “Tip” O’Neill Jr. “The ideals of the New Deal must stay in place,” said O’Neill, who went to view the casket of his friend last night. “People must understand the contribution he and my father made. They believed in a government of helping people.” People held U.S. flags, wore red, white and blue hats and some hung Irish flags in honor of Kennedy’s heritage. “They were really the last of the great Irish-American stories,” O’Neill said. “The Irish-Americans have made it, and now it is their obligation to look behind to anyone left behind.” To contact the reporters on this story: Brian K. Sullivan in Boston at bsullivan10@bloomberg.net ; Sree Vidya Bhaktavatsalam in Boston at sbhaktavatsa@bloomberg.net

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Kennedy Constituents Line Roads to Boston to Bid Farewell to Their Senator

August 27, 2009

By Brian K. Sullivan and Sree Vidya Bhaktavatsalam Aug. 27 (Bloomberg) — Thousands of Massachusetts residents gathered along the roads and highways between Boston and Hyannis Port in an effort to catch a glimpse of the black hearse bearing the body of Edward M. Kennedy . Kennedy, a U.S. senator since 1962, was taken by motorcade from his family’s compound on Cape Cod for the more than 70- mile (112 kilometer) trip to Boston, the city his grandfather John F. Fitzgerald once served as mayor. Kennedy’s wife, Victoria Reggie Kennedy , his son Patrick , a congressman from Rhode Island, his nephew Joseph Kennedy , a former congressman, were among the family members who are accompanying the senator’s body on the trip. So many family members wanted to accompany him to Boston, a bus had to be brought in to carry them all, according to WBZ, Channel 4, Boston’s CBS affiliate. State Senator Robert O’Leary, a Democrat who lives in the town of Barnstable, was one of the hundreds gathered on a back road in Hyannis to watch the motorcade leave for Boston. “I’m surrounded,” he said on his cell phone.“People are everywhere. I’ve never seen anything like it.” A military honor guard stood watch outside the home. After a private mass, several family members gathered on a porch where they could be seen laughing and holding hands as they waited to assemble for the procession to Boston. “Today, the city of Boston will celebrate the life of Senator Kennedy,” Boston Mayor Thomas Menino said in a statement. “I urge everyone to take a few minutes to remember his service to our city, state and country.” 47 Bell Rings Menino, a Democrat like Kennedy, and his wife, Angela, planned to watch the procession pass City Hall while the bell atop Faneuil Hall was to ring 47 times, once for each year of Kennedy’s service in the U.S. Senate. Thousands of Boston residents and workers were expected to line the streets, as well as the Rose Kennedy Greenway, a park in the center of the city named for Kennedy’s mother. Along the roads from Cape Cod to Boston, people held U.S. flags and held signs saying good-bye to the senator. The motorcade was to tour locations in the city that were important to Kennedy’s family, such as St. Stephen’s Roman Catholic Church in Boston’s North End neighborhood where his mother was baptized and eulogized. The hearse was also scheduled to pass by the office where Kennedy served as an assistant district attorney and where his brother, the late President John F. Kennedy , lived while serving in U.S. Congress. It will also pass by the JFK Federal building named for his brother and where he had his Boston office for many years. Public Viewing Following its tour of the city, the motorcade will arrive at the John F. Kennedy Library and Museum at about 4 p.m. where the senator’s body will lie in state for public viewing until Aug. 29. His funeral will be held at Our Lady of Perpetual Help Basilica on the day after tomorrow where President Barack Obama , vacationing on the Massachusetts island of Martha’s Vineyard, will speak. Obama is “still working” on the eulogy, White House spokesman Bill Burton told reporters today on Martha’s Vineyard.“It’s obviously going to be very personal.” Kennedy will be buried near his two brothers — President Kennedy, assassinated in 1963, and New York Senator Robert F. Kennedy , killed by a gunman in 1968 — at Arlington National Cemetery. To contact the reporters on this story: Brian K. Sullivan in Boston at bsullivan10@bloomberg.net ; Sree Vidya Bhaktavatsalam in Boston at sbhaktavatsa@bloomberg.net

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