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Let me decide

Editor, The Times:

It appears that the King County Council has decided that the public doesn’t know what it wants —only the Council knows [“Sales-tax proposal in jeopardy,” page one, May 22].

Most of the discussion from council members regarding why they would not allow King County residents to vote on a sales-tax increase revolves around the wrong issue. They talk as if they are deciding if we should increase the sales tax and do not talk about whether we should decide if we should increase the sales tax.

It is a subtle but very important distinction.

I am wise enough to know what I think is right. I also know that public safety is important to me. The County Council apparently thinks I do not know what I want or what is important to me.

These same County Council members say the county is spending more than it is making, so that has to change. Who do they think have been in charge of spending decisions over the last few years?

Look in the mirror, County Council, and you will see who is responsible for that dilemma — yet you think for some reason you are going to solve this before we have no more police officers, prosecutors or judges?

My experience living in King County says differently. By my rough calculation, the average tenure of a council member is 10 years.

I suspect council members would make the same decisions they have for the many terms they have served on the council. Why don’t you let me decide this time?

— Steve Tucker, Seattle

Modest sales-tax increase for families

King County Council has made many difficult cuts to our county’s budget during this recession — more than $209 million has been cut already, bringing our county’s general budget down from a high of $837 million in 2008 to $628 million. That is a 25 percent cut, which is serious belt-tightening by most standards.

Yet, we still face further deficits —as much as $140 million over the next two years. Given the reality that more than 75 percent of the county budget supports our law enforcement and justice system, the bulk of any additional cuts would come in those areas.

Unlike a family that often has no choice but to keep reducing discretionary expenses in tough times, our government’s justice system is not a discretionary choice. It is the cornerstone of our sense of fairness and security. We must find the funding to provide it.

The County Council has an option available to prevent these continued deep cuts: It could ask the voters to consider a modest sales-tax increase of $40 per family per year, or just 11 cents a day.

Before we go down the road to possible draconian cuts to the justice system, don’t we owe it to ask the voters first whether or not they want to increase revenues? If they say no, the County Council must act and we would face the consequences of reduced police, prosecutors and a strained court system.

As advocates for access to justice, the County Council should not hide behind the process and should put the question directly to the people.

— James Andrus, King County Bar Association president, Seattle

Tampa Bay, excluding the playoffs the past three seasons, has hired the former star of the Detroit Red Wings Steve Yzerman as Executive Director.

Yzerman served as vice president with the Detroit Red Wings, the only team for whom he played during his illustrious career that has opened the doors of the Hall of Fame. He recently led Canada to the conquest of the Olympic gold medal in his role as Executive Director for the Vancouver Games.

Last month, the new owner of the Lightning, Jeff Vinik, fired coach Rick Tocchet and general manager Brian Lawton after the team had missed the playoffs for a third straight season.

Yzerman had little hope of access to the post of Director General in Detroit in the short term because two of its executives, Ken Holland and Jim Nill, seem to have long term contracts.

“I love my work and my contribution to this organization,” said Yzerman earlier this month after eliminating the Red Wings in the second round of the playoffs.

Yzerman, 45 years old, from Cranbrook, British Columbia, has become one of the best players of the complete history of the NHL. He won the Stanley Cup three times and remains one of the most popular figures in Red Wings, where he has long been the captain.

In the Lightning, Yzerman inherits a team that finished the last season with a record of 34-36-12 and has changed coaches three times in two years.

Since the conquest of the Stanley Cup in 2004, the Lightning has not passed the first round of the playoffs.

Related posts:

1. Lakers Swept the Victory Over Oklahoma this Game 5 Playoffs
2. NBA Playoff 2010 Set To Start on April 14
3. Cleveland Cavaliers Coach Mike Brown – Not Fired according to Owner

Regulations on paying fares need to be enforced

Having driven Metro buses full-time for 25 years, I was glad to see “Scofflaws costing Metro $3.2 million” [NWThursday, May 20].

The problem with “scofflaws” (cheaters) has long been known to drivers. But we are not trained or authorized to be police officers, so we cannot force people to pay or deny rides to those who do not.

Cheaters know this — and that Metro would rarely, if ever, punish them for not paying. The fact that “fare evasion” is a misdemeanor crime would not deter them. Reporting of cheaters to management hardly ever garners any significant response.

I know drivers who have been yelled at, spat on and physically assaulted for just asking for fares.

If Metro really wants to try to collect all its fares, it should adopt a system such as that of the light rail: Riders must buy a ticket or have a pass to use the service or take the chance of receiving a large fine if caught without one. This means transit police must regularly check for tickets and issue citations. Only if enough people see regulations being enforced would they abide by them.

This latest report may spur Metro to change things. But after all my years on the road, I will believe it when I see it.

— Michael Spence, Tukwila

The civil rights dinosaur

In “Inherited clout not a sure thing” [News, May 24], Rand Paul’s statement that businesses have the right to refuse to serve blacks was characterized as “his quibbles with some elements of the Civil Rights Act.”

Quibbles? Paul’s views would undo lunch-counter sit-ins where students sat day after day demanding to be served. His views are racist to the core and to trivialize them as missteps or minor is no service to the reading public. He is a dinosaur and should be put back on the shelf.

— Adrienne Weller, Seattle

A good bad week

The Times showed Rand Paul’s picture with an up arrow in “Good week, bad week” [News, May 23], signaling he had a “good” week.

Apparently, whoever decided he had a good week is knee-deep in the tea-party movement.

Did you miss the part where Paul spoke about the civil-rights amendment and how it should not have required private clubs to be nondiscriminatory? He gave that speech at a golf country club, symbolic to say the least —typically all-white, upper-class.

Later this past week, Paul said he thought Obama was being too hard on BP.

Too hard? BP was caught lying about how much oil continues to spew into the Gulf of Mexico — it is 10 times worse than what BP officials have been claiming. Considering their gross negligence to begin with, the general consensus is that no one appreciates BP these days, except Paul.

— Jim Corbett, Seattle

A heartfelt, but otherwise unconvincing defense

I watched [Republican National Committee Chairman] Michael Steele trying to defend Rand Paul on TV. How could he, of all people, defend the statements made on TV by this tea-party favorite?

Paul exposed himself for the racial bigot that he is. How —in good faith — could any American support this man’s views?

Paul thinks the Massey Coal mining mess and the BP oil mess were just accidents. He said President Obama was blaming BP and Massey unfairly, and was unfairly picking on private enterprise. He said accidents happen. I guess we should just get past it?

— Anne and Bill Dillon, Kent

Last Thursday in San Francisco, Environmental Defense Fund set 24 MBA students loose into the wilds of corporate America. This group of students represents half of our popular summer fellowship program known as EDF Climate Corps. Tasked with cutting carbon emissions and energy costs for some of the largest and most innovative corporations in the world, each MBA fellow will play an instrumental role in the growing energy efficiency movement. Hailing from business schools at top-tier universities such the University of Michigan, Duke and Yale, these fellows gathered for a three-day intensive energy efficiency training hosted by EDF’s Climate Corps staff.

The fellows were shy and humble at first but like old friends by the end – already planning reunions. Over the course of the training, they took tours of downtown San Francisco skyscrapers and spoke with building engineers who explained building components from lighting to elevators, water boilers to chillers and the composition of a one-car-garage-sized absorber.

This year’s class listened to alumni fellows recall the barriers they faced during their Climate Corps fellowships and the solutions they uncovered. One fellow jokingly tugged his collar and whispered “Pressure’s on,” to his neighbor as he learned that every Climate Corps fellow has paid for him or herself a hundred times over in identified savings. The same fellow grinned as Emily Reyna told of the $8 million in energy savings she discovered during her fellowship with Cisco Systems in 2008.

Fortunately the Climate Corps Class of 2010 measures up. They are a well-qualified group, prepared with an in-depth understanding of energy efficiency and a network of relevant contacts, research, white papers and financial tools. So far the program's 33 alumni fellows from the last two years identified almost $90 million in net operating savings. Companies report that they are implementing upgrades representing 84% of the energy savings recommended by the fellows. We are confident that this year's class will continue to recommend investments that cut costs and enhance the bottom line.

One of the questions fellows were continuously encouraged to ask throughout their summer fellowships is “why?”

Joey Barr, an MBA student at the Haas School of Business at UC Berkeley stated emphatically, “I'm trying to figure out why there are $20 bills laying on the floor and people aren't picking them up. I think there are a lot of understandable but frustrating reasons, and Climate Corps is trying to seek some answers.”

After the training, the group packed their laptops and calculators into their backpacks and dispersed across the country for the next 10 – 12 weeks to become champions of energy efficiency at their respective host companies including JCPenney, Bloomberg, Carnival Cruises and McDonald's, among others.

This week we are hosting the other half of the 2010 Climate Corps class here in EDF's New York City office. Thirty more fellows are attending the training which kicked off at 8:30 this morning in the Big Apple.

“One of the main reasons I wanted an MBA is to impact the world from a higher level,” said Rama Murugan of Pennsylvania State University’s Smeal College of Business, before she began the training in New York.” Rama, who will be working at CA, Inc. in Islandia, NY, states “I am passionate about the environment and firmly believe that it needs to be saved for future generations to come. With the Climate Corps fellowship, both of my goals become one, and I have the opportunity to impact the world I live in a way that will help secure its future.”

We look forward to seeing the talent and passion these fellows bring to the table in coming weeks!

For more information on EDF Climate Corps, visit edfclimatecorps.org. You can also sign up to receive email updates from the fellows and host companies.

Staying dormant about environmental issues no longer an option

Given its enormity, the environmental disaster unfolding in the Gulf should be the last one of its kind [“Frustration mounts as oil seeps into Gulf wetlands,” News, May 23].

While official estimates place the oil “leak” at 5,000 barrels a day, more sobering analyses place it at 100,000 barrels a day, making it an oil volcano with no end in sight. What makes this event so tragic is that it was entirely preventable. Even worse, its impact on our country’s wildlife, fisheries, tourism and local economy is completely inestimable at this point.

Whether the oil contamination could spread up the Atlantic coast and whether efforts to contain it would be hampered by the inevitable hurricanes remains to be seen.

This disaster should awaken us to the myriad other man-made environmental catastrophes that are occurring. Annually, 81 tons of mercury enter the atmosphere as a result of coal-fired electrical generators, and farmland greater than the area of Scotland is lost to erosion, plus urban sprawl across the globe.

Every day, more than 100 plant and animal species become extinct and 13 million tons of toxic chemicals are released.

Currently, every square mile of ocean averages 46,000 pieces of floating plastic. In the last 100 years, 90 percent of the large ocean fish have disappeared and in the last 30 years, 50 percent of the world’s forests have been destroyed.

An environmental tipping point has been reached.

A future for humankind and other life-forms is not possible without a transformational change in how each of us treats our environment. We must use the highly visible, expanding “dead zone” of the Gulf as the rallying point for our very survival.

Each of us must become an environmental activist. Not only do we have to live in an environmentally friendly and sustainable way, but we must demand that our government enact strict environmental laws and vigorously enforce them. Failure to act now is no longer an option.

— Marshall Goldberg, Oak Harbor

Drilling response to demand for oil

In the wake of the Gulf of Mexico oil spill, many are expressing outrage toward BP, Transocean and Halliburton for not taking the precautions necessary to prevent such a disaster.

Without a doubt, this outrage is justified. But we should also ask ourselves why BP was drilling for oil a mile below the ocean surface, offshore from such a biologically rich region.

The answer on the most basic level is because there is a market for oil; those of us who drive gas-powered cars are part of that market. The more we drive, the more BP would drill. Perhaps we should all display pictures of oiled wetlands or idled fishermen on our dashboards.

Being reminded before we turn the key that we are all culprits in this disaster may prompt us to consider taking the bus, walking, riding a bicycle or simply avoiding the trip altogether.

— Jeannette Banobi, Seattle

Tragic accident turned criminal incident

I read “CG commandant: BP using all technical means it can” [Seattletimes.com, May 24]. Frankly, I believe neither BP nor our government.

Is the Gulf of Mexico the geologic equivalent of a hemophiliac? When I get a cut, I could stop the bleeding with pressure or a bandage. We could have had barges taking rock, sand and gravel to cover and plug the well within days of the explosion. Instead, BP decided it would try and siphon the emerging oil into a nearby tanker.

From many reports, it appears there is an epidemic of stooge-like behavior across the industry. With each report, I looked for evidence of Moe, Larry, Curly or Shemp.

Now, the blame game has started, with fingers pointing in every direction. State officials, federal officials and company officials — sounds like a cluster operation.

This country runs on energy, and we need new sources of oil. I support the search for new oil sources. But it is clear that our government cannot legislate faithfulness from the oil industry. Now is the time to assign inspection, arrest and prosecution authority to the Office of the Inspector General.

What happened originally was a tragic accident. What has happened since is criminal.

— Bob Boren, Federal Way

A craving with nasty consequences

As a firm believer in the preservation of the ecology of the Earth, I am disgusted and appalled by the callous decisions made by BP in regard to its oil-drilling policies.

BP officials’ decision to continue to push 24-hour drilling and disregard the safety of their drilling rig has caused the death of innocent workers and put the entire ecology of the Gulf of Mexico in danger of being ruined for years to come. The fragile ecology of the coastlines may never recover and for what —more money.

We need to improve the way we use oil by making more fuel-efficient vehicles and finding ways to use alternative fuel sources to fuel transportation. In essence, we need to become less dependent on oil as our main energy source. I know that I am not only speaking for myself, but for millions of other Americans.

— Marcia Thomas, Spanaway

Zug.com’s Bayan Rabbani is a glutton for punishment. Having spent 24 hours inside a Walmart in the name of comedy journalism, he thought he was ready to spend 24 hours inside a Starbucks. He was wrong.

Largely his story is one of a man who staves off boredom through constant sugar-laden caffeine beverages, tweets, and attempts to interact with fellow customers that are largely in vain. At one point Bayan tries to get a game of espresso pong but the manager
puts the kibosh on it, reminding Bryan that acting weird and that disturbing the carefully crafted casual corporate coffeehouse vibe can get you kicked out.

I’m mainly fascinated by the effect of so much coffee in such a short period of time:

3:06 PM May 14: 15 hours, 11 restroom visits, and 16 drinks in. At this point, it really felt like I was seeing things. The drinks weren’t the worst part, it was mostly the restroom. My bladder began to hurt. Later it would go numb.

3:45 PM May 14: It feels like my body is throwing up from the outside into my insides. Trust me, in my delirious condition it makes perfect sense. For some reason, my skin began to feel really hot. I ran to the restroom thinking I would barf, but I managed to keep everything inside.

12:03 AM May 14th: 24 HOURS, 19 RESTROOM BREAKS, 25 DRINKS! I DID IT!!!!

Venti Me, anyone?

Bayan’s Twitter feed from the experiment [Twitter]
The Starbucks Experiment: 24 Hours Trapped Inside Starbucks [Zug]
PREVIOUSLY: Man Spends 24 Hours In A Walmart, Lives To Tell The Tale

Wade Roush wrote:

Google unveiled the results of its first state-by-state analysis of the company’s impact on regional economies at press events in 10 cities on Tuesday, including Cambridge, MA, Detroit, and Seattle. For the most part, Google measured the value it generates when local advertisers and Web publishers use its AdWords and AdSense platforms for Web advertising.

Overall, Google claimed that transactions enabled by its search and advertising tools added up to $54 billion across the United States in 2009. About one-fourth of that that activity, $14.13 billion, took place in California. New York felt the second-biggest Google impact, with $6.27 billion in advertising-driven activity, followed by Illinois at $3.24 billion and Texas at $3.18 billion. Xconomy’s other home states of Massachusetts, Michigan, and Washington saw total economic value of $2.2 billion, $906 million, and $2.8 billion, respectively.

“‘What is the value of Google to local businesses?’ is a question we’ve often heard from the press, from advertisers, and from partners,” said Brian Schmidt, director of sales for Google Boston, at a press conference Tuesday at the Pemberton Farms market and garden center in Cambridge. “We take it seriously and we wanted to put some serious thought behind it.”

Advertising on Google is a “growth engine” for local businesses, Schmidt argued. He said that 43,000 of the 175,000 businesses in Massachusetts have advertised on Google. That includes Pemberton Farms, which allocates about 60 percent of its overall advertising budget to buying online ads matched to search keywords such as “gift basket” and “fruit basket,” according to co-owner Mark Saidnawey.

“The actual economic return to the state [of Massachusetts] via our advertising programs totals over $2 billion for 2009 alone. That is a really big number,” Schmidt said. “What’s important to note here is that we are not a California company. We are headquartered in Silicon Valley and that’s our focus, but we’ve built a focus in Massachusetts that we’re proud of. We’ve hired over 200 people, but more importantly we are empowering businesses in Massachusetts.”

Google calculated its economic-impact numbers by assuming that the dollars advertisers spend buying keyword-based advertising on its search pages through the AdWords program have a multiplier effect on their businesses. (After all, the whole point of advertising on Google is to entice Web surfers to click on your ad, arrive at your website, and become customers.) Hal Varian, Google’s chief economist, says businesses earn an average of $2 for every $1 that they spend on AdWords ads.

But when Google factors in not just revenue from AdWords advertising but revenue from clicks on natural search results—which outnumber AdWords clicks by about 5 to 1, acccording to third-party researchers—the multiplier effect grows even larger. Overall, the company calculates that for every dollar AdWords advertisers spend, they get back about eight dollars. (The exact formula that Google used can be seen here in more detail.)

A number of state and local officials attended the Cambridge press event, including Greg Bialecki, Secretary of the Executive Office of Housing and Economic Development under Massachusetts Governor Deval Patrick. In interviews with Xconomy and elsewhere, Bialecki has often promoted high-tech innovation as a path to economic recovery and growth for the state. “When we talk about the ‘innovation economy,’ sometimes people say ‘It sounds like you’re helping high-tech businesses but not …Next Page »

UNDERWRITERS AND PARTNERS

A Consumerist reader wrote into us today to tell us how he ended up with $132 in overdraft fees, not because he went on a spending spree and didn’t manage his finances correctly, but because his eager beaver roommate went ahead and deposited his post-dated rent check almost a full week early.

Here it is straight from the reader:

I gave my roommate my rent check to turn in for the summer since he would be around taking summer courses. I told him not to cash the check before the 30th of May because I did not have enough money in the account, but being the idiot he is, he ended up cashing it yesterday on the 24th of May even though it was dated for the 30th. I did not have enough money in the bank, and the check overdrafted my account, and a few small charges I made over the weekend processed that day too so now my account is over drafted and Wachovia has hit me with 132 dollars in overdraft fees. I called Wachovia and talked to a supervisor to explain the situation and the most they could do is refund 32 dollars of the overdraft fee.

The reader wants to know if there’s anything else he can do in terms of getting Wachovia to reduce or refund the overdraft fees. Unfortunately, he’s out of luck. The reason: Just because you post-date a check doesn’t mean it can’t be deposited early.

Here’s how the Dept. of Treasury explains it:

National banks are permitted to pay checks even though payment occurs prior to the date of the check. A check is a negotiable instrument—the payee, the person to whom the check is written, may negotiate it through the banking system at any time.

If you have incurred damages because a check has been negotiated before its date, you should directly pursue the payee for restitution.

So if the reader wants restitution, he should be talking to his “idiot” roommate who deposited the check six days before he was supposed to.

Answers About Cashing Checks [Treasury Dept.]

In case you don’t have the time or desire to read or watch full-length reviews, I’ve summarized my take on the recent wave of smartphones for you. 

 

Click here for the index of my latest smartphone Quick Takes.

 

Microsoft KIN Two (Verizon) – $99, Available Now

Ditto what I wrote about KIN One, except you get a larger display and better camera with HD video capture. But that 8MP camera is marred by ergonomic issues with the phone’s design that make for way too many shaky-hand photos and videos. If I were going KIN, I’d go Kin Two thanks to its widescreen design and two-thumb friendly QWERTY board. But I’d go Pre Plus or Droid Incredible before I’d go with either KIN on Verizon.

 

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Can you dig it? Ryu from Ninja Gaiden on the NES was a real badass. He could climb on walls and he had unlimited shuriken, a big plus when you’re going against hordes of anti-ninja forces on the NES. But how is he against Koopa Troopers?

Our favorite game, SMB Crossover, just announced they’re adding Ryu to their line-up of classic characters.

You can play it right here, right now. Thank us after you’ve had like an hour of fun.

via Kotaku

This questionable move by author Joe McGinniss stuns all his fans including the people who live around. He now lives next to Sarah Palin the person who is McGinniss subject in his book he’s working on.

And to keep everyone updated Sarah Palin made a post in Facebook.

Joe announced to Todd that he’s moved in right next door to us. He’s rented the place for the next five months or so. He moved up all the way from Massachusetts to live right next to us – while he writes a book about me. Knowing of his many other scathing pieces of “journalism”…we’re sure to have a doozey to look forward to with this treasure he’s penning. Wonder what kind of material he’ll gather while overlooking Piper’s bedroom, my little garden, and the family’s swimming hole?

Its nothing new that McGinniss is accused of plagiarizing material and deceiving sources but still he remains his best selling carrer is doing good. Still all of these accusations have not yet been confirmed. Many know that he has a very aggressive style and sometimes make use of unorthodox tactics. Definetely moving next door to his subject fits his descriptions.

Related posts:

1. Sarah Palin Now a Host?
2. Are Sarah Palin and GOP Encouraging Tea Party violence?
3. Sarah Palin To Discover Alaska With TLC Network

Former Detroit mayor Kwame Kilpatrick gets up to 5 years sentence in prison for violating terms of his probation due to lying under oath that he has an affair with his chief of staff.

Kilpatrick who is 39, asked Judge David Groner to show him compassion and empathy during the hearing last week, but Groner said that “that ship has sailed.”

On Teusday, Kilpatrick stated that he wanted to go home, added that he is not there for any offense such as gun charge or drug charge. He said that he’s only there for “confusion over written orders”. After hearing Kilpatrick’s statement, the judge remained unmoved.

After pleading guilty in 2008 to obstruction of justice, an issue of $1 million was ordered to Kilpatrick to pay the city. Last month Groner ruled out that Kilpatrick failed to report all of his assets and meet some of the other conditions of his probation.

Kilpatrick now has 42 days in which he could file an appeal.

Groner agreed with the prosecutors that Kilpatrick continued to lie after his release from jail the first time, he could afford to give more and has hid his assets intentionally.

Related posts:

1. Judge revokes probation of former Detroit mayor, Kwame Kilpatrick
2. New Conditions on Lindsay Lohan
3. Lindsay Lohan in court after returning to Los Angeles

[JURIST] Pakistan’s Supreme Court [official website] ruled Tuesday that a Pakistani cleric accused by India of plotting the 2008 Mumbai terror attacks [JURIST news archive] cannot be jailed due to lack of evidence. Hafiz Muhammad Saeed [Global Jihad profile] is the head of fundamentalist terrorist group Lashkar-e-Taiba (LeT) [CFR backgrounder], which was allegedly behind the attacks. Pakistan put Saeed under virtual house arrest [JURIST report] one month after the onslaught, where he remained except for a three-month period last summer, but the Lahore High Court (LHC) [official website] ordered his release [JURIST report] in October after finding insufficient evidence to link him to the Mumbai attacks or al Qaeda [JURIST news archive]. The Supreme Court’s ruling could strain the already fragile relationship between India and Pakistan, which had recently begun peace talks.

The charges against Saeed had been filed under the Pakistani Anti-Terrorism Act [text] and were related to speeches Saeed gave while visiting Faisalabad last year. It is claimed that he discussed [Times of India report] the significance of Jihad and asked for funding for his charity Jamaat-ud-Dawa (JuD), which is believed to be a front for the LeT. Saeed’s lawyer successfully argued that JuD was not a banned group. In September, Pakistan Interior Minister Rehman Malik announced that his government would indict seven suspects [JURIST report] for their role in the attacks, also requesting further evidence from India that Saeed was involved in planning the attacks. Mumbai has suffered a number of terrorist attacks allegedly linked to the LeT in recent years, leading the government to consider controversial terrorism laws and to institute special courts [JURIST reports] to try suspects.

The House and Senate may have both passed financial regulation bills, but the battle to create the final legislation isn’t over. Next up: the two chambers must reconcile their bills. The essence of these two bills overlaps fairly well, as explained here. But the details contain a number of significant differences that have to be hashed out. Here are some of the most important.

Consumer Financial Protection Agency/Bureau

Congress needs to worry about more than just what to call the new consumer watchdog. One of the biggest issues will be to determine where to put it. The Senate bill makes it an independent branch of the Federal Reserve, while the House version just creates it as a new agency altogether. House Financial Services Chairman Barney Frank (D-MA), who will be the lead negotiator for the House, has indicated he wants it independent. But Senate Banking Committee Chairman Christopher Dodd (D-CT), who will be the lead negotiator for the Senate, put it in the Federal Reserve to appease moderates. Either Dodd will have to convince some Senators that the agency should be truly independent or Frank will have to make peace with its presence in the Fed.

Some of the details of the powers and oversight of the agency/bureau also differ between the bills. One of the most notable differences is the auto dealer exclusion contained in the House bill. Even though the Senate’s bill doesn’t make this exception, expect the Senate to ultimately concur. It passed a resolution yesterday to direct conference committee to take this precise step, by a vote of 60 to 30. The White House, however, doesn’t like the exclusion — so you never know.

Derivatives

The derivatives language could be the most contentious of any section. The Senate bill took a very aggressive stance on this issue, and would force banks to put their derivatives businesses in separately capitalized affiliates. The House bill doesn’t contain any such proposal. While it’s unclear if Frank will go along with this provision, it matters more whether the House can pass a bill that includes the proposal. This could very well fall out of a final bill, especially if the conference process continues until after Blanche Lincoln’s (D-AR) runoff primary on June 8th. She was the author of the controversial section.

Resolution Authority

Both bills agree on the need for a regulator to step in and wind down giant non-bank institutions that collapse. They also agree that it makes sense for the FDIC to take on this task. But there are a couple of key differences. In particular, the chambers disagree on the tools that the FDIC will have in its chest. The House version would give it a pre-funded sum of up to $150 billion to work with to cover the costs of resolution. The Senate, however, has no fund and will worry about expenses of resolution after-the-fact, with a loan from taxpayers until bankruptcy proceeds will (hopefully) pay back the costs. The Senate could win out on this one, as Frank’s original bill also called for collecting costs after-the-fact, though through a different means. The provision was changed to a pre-emptive fund before it was finalized.

There are lots of other minor details to take care of here as well. The processes for determining how to wind down a firm aren’t precisely the same in both bills. The House bill paid more attention to how the resolution authority would treat creditors. It seems plausible that when one chamber provides greater detail than the other, such provisions will simply be adopted in the final bill, assuming little objection. That would generally err on the side of the House, since it took more time to work out the details, compared to the Senate’s rushed approach.

Break-Up Powers

Some advocates for cracking down on big banks wanted them broken up. Neither bill explicitly takes this step, but both bills allow for firms to be broken up under certain circumstances. The House version provides the new council the power to break up firms if a simple majority of its members believe the systemic risk cannot be regulated out of them. The Senate bill, however, only calls for breakup as a possible punishment for firms that don’t provide the resolution authority adequate failure plans. In that case, two-thirds of the council and the Federal Reserve Board must consent to break-up.

It’s quite possible that the House’s provision, which was an amendment sponsored by Rep. Kanjorski (D-PA), could fall out of the final bill. The Senate refused to consider a provision that would have broken up large institutions, so Senators may reject the notion that the council should have broad authority to break up firms. Alternatively, the Senate might call for a stricter two-thirds vote standard.

Proprietary Trading

As explained at length here, both bills contain provisions that could lead to banning proprietary trading at financial institutions. Each depends on the whim of regulators, but the details differ. We’ll likely end up with some sort of prop trading ban, though it might require a study or remain at some regulator’s discretion. If a ban does happen, expect Frank to demand a few exclusions. He has already promised to fight to exclude insurance companies and bank asset management from the provision.

Leverage

Its 15 to 1 leverage limit is an important, and often overlooked, aspect of the House bill. It’s one of the few ways where its version is more aggressive than the Senate’s. In fact, some Senators did try to impose leverage limits on financial institutions through amendments. Those attempts failed, however. As a result, it’s a little hard to see how the House could manage to keep this provision alive in the final bill. But expect Frank to try.

Fed Audit

Each bill also contains a provision which calls for Congress auditing the Federal Reserve, but they differ significantly. The House’s version came through an amendment sponsored by Rep. Ron Paul (R-TX). It’s more aggressive than the Senate’s version. The House would provide the ability for Fed audits in perpetuity on many aspects of its business. The Senate’s version, however, provides for a one-time audit, specifically regarding the emergency stabilization measures it employed during the financial crisis. Since the House’s version resembled the Senate’s original proposal, sponsored by Rep. Bernie Sanders (I-VT), expect to see its new version win out. Sanders was forced to change it, because he didn’t have the votes for the House’s more aggressive approach.

Rating Agencies

Both bills attempt to reform the rating agencies, but the Senate bill goes much further. The House bill mostly just lightly regulates the agencies and allows investors to sue for gross negligence in rating. The Senate bill, however, allows investors to bring a lawsuit if an agency did not conduct a “reasonable investigation” — a weaker standard. Moreover, the Senate bill would create a committee of investors and other market participants who assign a rating agency to assign every new securitization deal, thanks to an amendment by Sen. Al Franken (D-MN). It’s unclear if the House will be on board with these stronger provisions.

As you may have noticed through this analysis, most of the differences among the two bills resulted from amendments. Even if some of these are shaven off, the essence of the legislation will still remain the same. Many of these details matter a lot, however. But ultimately, the conference committee must determine which of these details are politically popular so it can get a bill passed, not necessarily which are best for the financial system.

Senate Banking Committee – White House – Blanche Lincoln – Financial services – Federal Reserve System

Nissan has sold out of orders for its upcoming Nissan LEAF electric-vehicle.

“We think there is a big future for this car. I can already tell you that the production for 2010 is already sold out,” Nissan CEO Carlos Ghosn said today during a luncheon at the Cobo Center in Detroit, Michigan.

So far in the United States, the Nissan LEAF has brought in 13,000 orders, which will be delivered in December. That number equals the full U.S. allocation for the Nissan electric-car.

Click here for more news on the Nissan Leaf.

Refresher: Power for the Nissan Leaf comes from a 107-hp electric-motor that runs on power supplied by lithium-ion cells. On a full-charge, the Nissan Leaf allows for a driving range of 100 miles with a top speed of 87 mph. A full charge takes up to 8 hours on a standard 200V outlet. Buyers can opt for the DC 50kW quick-charger, which recharges the battery up to 80 percent in under 30 minutes. Prices for the 2011 Nissan LEAF will start at $32,780 but with a federal tax-credit prices will come in as low as $25,280, or for a lease payment of $349 a month.

2011 Nissan Leaf:

– By: Kap Shah

Source: Free Press

Via The New Yorker’s twitter feed, North Korea, fresh from an unprovoked naval attack that killed 46 South Korean sailors, accuses South Korean President Lee Myung-bak of being a “wicked warmonger.” This call for “all-out counterattack” is from North Korea’s official news service:

“The Committee for the Peaceful Reunification of Korea, accordingly, formally declares that from now on it will put into force the resolute measures to totally freeze the inter-Korean relations, totally abrogate the agreement on non-aggression between the north and the south and completely halt the inter-Korean cooperation.

“In this connection, the following measures will be taken at the first phase:

“1. All relations with the puppet authorities will be severed.

“2. There will be neither dialogue nor contact between the authorities during (South Korean President) Lee Myung Bak’s tenure of office.

“3. The work of the Panmunjom Red Cross liaison representatives will be completely suspended.

“4. All communication links between the north and the south will be cut off.

“5. The Consultative Office for North-South Economic Cooperation in the Kaesong Industrial Zone will be frozen and dismantled and all the personnel concerned of the south side will be expelled without delay.

“6. We will start all-out counterattack against the puppet group’s ‘psychological warfare against the north.’

“7. The passage of south Korean ships and airliners through the territorial waters and air of our side will be totally banned.

“8. All the issues arising in the inter-Korean relations will be handled under a wartime law.

“There is no need to show any mercy or patience for such confrontation maniacs, sycophants and traitors and wicked warmongers as the (South Korean President) Lee Myung Bak group.”

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Although Kate Gosselin did not make it past week five on ABC’s Dancing With The Stars, she reportedly earned half a million dollars — or $100,000 per week — for her time on the show. That should go a long way to feeding those eight little mouths in her household.

The hit dance show will crown a new champion on tonight’s 10th season finale.

In our nearly three years of existence, we’ve featured hundreds of BlackBerry applications. While some of these are free, most of them cost a few dollars. This, of course, turns off many prospective customers. We’ve become so used to free software that purchasing premium software can seem like a waste. I have often found myself thinking along those lines, eschewing quality software because I didn’t want to shell out the developer’s asking price. That’s a one-dimensional way of looking at the issue, though. Today we’ll run through some main points on the worthiness of premium third-party software so you can better determine whether it’s worth your money.

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