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SMF Blogs > Hot Trends > April 2009


NEW YORK (AP) -- Citigroup Inc., which has received $45 billion in federal bailout funds and potentially could have to raise more capital based on "stress test" results, is requesting permission from the Treasury Department to pay out special bonuses to certain workers, The Wall Street Journal said late Tuesday.

Banks that have accepted federal bailout funds are subject to greater government scrutiny and limits on how much they pay their top executives. The restrictions are intended to prevent the outrage that ensued after it was disclosed that insurer American International Group had paid out $165 million in bonuses to employees despite having been bailed out to the tune of more than $180 billion.

But bank employees are chafing at the restrictions, and companies have said the pay caps make them vulnerable to poaching by competitors. Some smaller banks have quickly repaid bailout funds in order to remove themselves from heightened oversight. Several of the biggest bailout recipients -- including JPMorgan Chase & Co., Wells Fargo & Co., Morgan Stanley and Goldman Sachs Group Inc. -- have said they want to repay the government as soon as possible.

Citigroup is seeking Treasury permission to pay retention bonuses to workers it says are demoralized amid the company's restructuring and sharp drop in stock value, according to the paper, which cited people familiar with the matter. The New York-based bank, which recently saw a shuffling of its board of directors, also is hoping to free its highly profitable energy-trading unit Phibro from federal compensation limits, the paper said.

The bonus plans could include a scenario in which payouts would consist mainly of stock which would vest over at least three years, and the awards would likely be worth at least half of an employee's cumulative pay over the past three years, the paper said.

The Treasury Department hasn't made a decision on the request, which was made by Citigroup Chief Executive Vikram Pandit to Treasury Secretary Timothy Geithner at a meeting earlier this month, the paper said. The amount of bonuses requested wasn't disclosed. Calls to Citigroup and Treasury seeking comment weren't immediately returned late Tuesday.  

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Posted: 4/29/2009 7:45:03 AM by StockMarketFunding | with 0 comments


MADRID (AP) -- The top EU health official urged Europeans on Monday to postpone nonessential travel to parts of the United States and Mexico because of the swine flu virus, and Spanish health officials confirmed the first case outside North America. Russia, Hong Kong and Taiwan said they would quarantine visitors showing symptoms of the virus amid a surging global concern about a possible pandemic. 


World stock markets fell as investors worried that the deadly outbreak could go global and derail any global economic recovery. Airlines took the brunt of the selling. The virus was suspected in up to 103 deaths in Mexico, the epicenter of the outbreak with more than 1,600 cases suspected, while 40 cases -- none fatal -- were confirmed in the United States and six in Canada, the World Health Organization said. "Today we've seen increased number of confirmed cases in several countries," WHO spokesman Paul Garwood told The Associated Press.

"WHO is very concerned about the number of cases that are appearing, and the fact that more and more cases are appearing in different countries." President Barack Obama said the threat of spreading infections is cause for concern but "not a cause for alarm." The WHO set its pandemic alert level at level 3, which means there is an animal virus that occasionally causes human cases but that doesn't spread well between people.

If the WHO raises it to 4 or 5, that signals that the swine flu virus is becoming increasingly adept at spreading between humans. That move could lead governments to set trade, travel and other restrictions aimed at limiting the disease's spread. In Luxembourg, European Union Health Commissioner Androulla Vassiliou urged Europeans to postpone nonessential travel to parts of the United States and Mexico affected by swine flu, toning down earlier comments referring to all of North America.

"I meant a travel advisory, not a travel ban, for travel to Mexico City and those states in the United States where we have outbreaks" of swine flu, he said. The EU health commissioner only makes recommendations to the 27 member countries; they must make a final decision to set travel advisories through their foreign ministries. Dr. Richard Besser, acting head of the Centers for Disease Control and Prevention in Atlanta, said the EU recommendation was not warranted. "At this point I would not put a travel restriction or recommendation against coming to the United States."

A top German holiday tour operator said it was suspending charter flights to Mexico City. "These are early days. It's quite clear that there is a potential for this virus to become a pandemic and threaten globally," WHO spokesman Peter Cordingley told AP Television News. Spain's first swine flu case -- confirmed by the WHO -- was a young man in the town of Almansa who recently returned from Mexico for university studies and is responding well to treatment, said Health Minister Trinidad Jimenez. Neither the young man nor any of the 20 other people under observation for the virus were in serious condition.

Cordingley singled out air travel as an easy way the virus could spread, noting that the WHO estimates that up to 500,000 people are on planes at any time. New Zealand was testing 13 students, their parents and teachers who were showing flu-like symptoms after returning from Mexico, said Health Minister Tony Ryall. Britain, Israel, France, Brazil, Switzerland and Sweden were also conducting tests. At Germany's bustling Frankfurt Airport, people suspected of having the disease are being examined before getting off planes, said the health minister for Hesse state, Juergen Banzer.

This policy has been in effect since Saturday at continental Europe's second-busiest airport, after Charles de Gaulle in Paris. Governments in Asia -- with potent memories of SARS and avian flu outbreaks -- heeded the warning amid global fears of a pandemic. Singapore, Thailand, Japan, Indonesia, and the Philippines dusted off thermal scanners used during the 2003 SARS crisis and were checking for signs of fever among passengers arriving from North America. South Korea and Indonesia introduced similar screening.

In Malaysia, health workers in face masks took the temperatures of passengers as they arrived on a flight from Los Angeles. Russia, Hong Kong and Taiwan said visitors returning from flu-affected areas with fevers would be quarantined. Australian Health Minister Nicola Roxon said pilots on international flights would be required to file a report noting any flu-like symptoms among passengers before being allowed to land in Australia.

China said anyone experiencing flu-like symptoms within two weeks of arrival had to report to authorities. India will start screening people arriving from Mexico, the United States, Canada, New Zealand, Spain, Britain and France for flu-like symptoms, said Vineet Chawdhry, a top Health Ministry official. It also will contact people who have arrived from Mexico and other affected countries in the past 10 days to check for the symptoms, he said. Some officials cautioned that the checks might not be enough.

The virus could move between people before any symptoms show up, said John Simon, a scientific adviser to Hong Kong's Center for Health Protection. Thomas Tsang, controller for Hong Kong's Center for Health Protection, said the government and universities aim to develop a test for the new flu strain in a week or two that will return results in four to six hours, compared with existing tests that can take 2-3 days.

China and Russia banned imports of pork and pork products from Mexico and three U.S. states that have reported cases of swine flu, and other governments were increasing their screening of pork imports. Indonesia, which was hit hardest by bird flu, said it was banning all pork imports. Lebanon's agriculture ministry also banned all imports of pork and pork products, excluding some canned products.

It also says it will destroy any pork shipments to have entered Lebanon from a country declared infected with the swine flu virus by the WHO or countries with suspected cases. The CDC says people cannot get the flu by eating pork or pork products. Germany's leading vacation tour operators were skipping stops in Mexico City as a precaution.

The Hannover-based TUI said trips through May 4 to the Mexican capital were being suspended, including those operated by TUI itself and also through companies 1-2 Fly, Airtours, Berge & Meer, Grebeco and L'tur TUI said other holiday trips to Mexico would continue to operate but would not make stops in Mexico City "for the next few weeks." Japan's largest tour agency, JTB Corp., suspended tours to Mexico at least through June 30. Russian travel agencies said 30 percent of those planning to travel to Mexico in early May had already canceled.

At Madrid's Barajas International Airport, passengers arriving from Mexico were asked to declare where they had been and whether they had felt any cold symptoms. They were told to leave a contact address and phone number. "Where we were, there was no real alarm but we followed what was happening on the news and we're a little bit worried," said Spaniard Filomeno Ruiz, back from vacation in Cancun.

Passengers were also urged to contact health authorities if they notice any symptoms in the 10 days following arrival. In the airport's baggage claim area, ground crews and police wore surgical face masks. Some travelers took precautions even though they had not been in Mexico. "Nobody has recommended it, but I've put the mask on out of precaution," said Roger Holmes of Britain, who was traveling to Tunisia from Madrid. "I'm not afraid, but it costs nothing to be careful."

WHO swine flu page: http://www.who.int/csr/disease/swineflu/en/index.html
CDC: http://www.cdc.gov  

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Posted: 4/27/2009 12:28:54 PM by StockMarketFunding | with 0 comments



NEW YORK (AP) - An official says New York City has 20 more confirmed cases of swine flu, raising the city's total to 28. The official spoke Monday on condition of anonymity because the news had not been announced.

The additional cases are what brought the national total to 40 on Monday. The official says there are another 17 probable cases in New York City. The outbreak is occurring at a school in Queens where about 150 students came down with symptoms. The virus apparently resulted from a spring break trip to Mexico by students at the school. THIS IS A BREAKING NEWS UPDATE. Check back soon for further information.

AP's earlier story is below. NEW YORK (AP) — Esti Lamonaca's illness started with a high fever, a cough and achy bones, just a couple of days after she returned from a spring break trip on the beach in Cancun with friends. By the weekend, her voice was hoarse and she was wearing a surgical mask.

The 18-year-old senior was one of a dozen students from several New York City high schools who traveled to Mexico this month, and she thinks she has swine flu. Health officials have confirmed that eight students from her school — St. Francis Preparatory in Queens — have been infected with the strain, which has caused a deadly outbreak in Mexico. And they predict the number will grow once additional students, including Lamonaca, are tested.

The number of confirmed swine flu cases in the United States has doubled to 40, the World Health Organization announced Monday, saying it was "very concerned" about the disease's spread. However, most of those sickened in the U.S. have recovered or are recovering. That's a stark difference from the deadly outbreak in Mexico that authorities can't yet explain. "Some of them are getting worse and some are getting better," 14-year-old St. Francis freshman Samantha Cosentino said Monday of her classmates.

Cosentino said she came down with aches, pains and a fever last Thursday. She said that she was tested for swine flu but that the results were inconclusive. St. Francis officials learned that something was wrong there on Thursday when students started lining up at the nurse's office complaining of fever, nausea, sore throats and achy bones. It wasn't long before the line was out the door.

The nurse notified the city Health Department that day. On Friday, more students were getting sick, and the department dispatched a team to the school at about 1:30 p.m. But they got caught in traffic and didn't arrive until 3:30 p.m, just as classes were letting out for the weekend, said Brother Leonard Conway, the school's principal. By then, there were only a few students left, and health officials quickly tested them for swine flu.

While only eight cases are confirmed, more than 100 students are suspected to have been infected. Officials think they started getting sick after some students returned from the spring break trip to Cancun. Dr. Richard Besser, acting head of the Centers for Disease Control and Prevention, said Monday U.S. officials were questioning border visitors about their health.

The U.S. government declared a public health emergency Sunday to respond to the outbreak, which also has sickened people in Kansas, California, Texas and Ohio. Health officials in Michigan said they have one suspected case. Many of them had recently visited Mexico. Roughly 12 million doses of the antiviral drug Tamiflu will be moved from a federal stockpile to places where states can quickly get their share if they decide they need it, Homeland Security Secretary Janet Napolitano said.

Besser said Monday people can best protect themselves against the swine flu threat by taking precautions they were taught as kids, like frequently washing their hands and covering their mouths when coughing. Cleaning crews spent Sunday scrubbing down St. Francis, which will be closed for days. "I haven't been out of my house since Wednesday and am just hoping to make a full recovery soon," Lamonaca said.

"I am glad school is closed because it supposedly is very contagious, and I don't want this to spread like it has in Mexico." Some schools in Texas, California, New York, Ohio and South Carolina also were closing after students were found or suspected to have the flu. The outbreak has people on edge across the country.

Officials along the U.S.-Mexico border asked health care providers to take respiratory samples from patients who appear to have the flu. Travelers were being asked if they visited flu-stricken areas. In San Diego, signs posted at border crossings, airports and other transportation hubs advised people to "cover your cough."

At Los Angeles International Airport, Alba Velez, 43, and her husband Enrique, 46, were wearing blue face masks — purely as a precaution — when they returned from a trip to Mexico. The Los Angeles couple hadn't seen anyone sick while in Guadalajara but were nervous because of the stream of information about new cases. The two were wearing the masks because they're "just cautious," Enrique Velez said. It was a different story for travelers heading south of the border.

"I'm worried," said Sergio Ruiz, 42, who checked in for a flight to Mexico City after a business trip to Los Angeles and planned to stay inside when he got home. "I'm going to stay there and not do anything." In New York City, customers made a run on local pharmacies' stores of paper face masks. "We sold several boxes today," Gary Halpern, the pharmacist at Caligor Pharmacy on Manhattan's Upper East Side, said Monday.

"At least triple what we normally sell." In Ohio, a 9-year-old boy was infected with the same strain suspected of killing dozens in Mexico, authorities said. The third-grader had visited several Mexican cities on a family vacation, said Clifton Barnes, spokesman for the Lorain County Emergency Management Agency.

"He went to a fair, he went to a farm, he went to visit family around Mexico," Barnes said. The boy has a mild case and is recovering at home in northern Ohio, authorities said. His elementary school in Elyria was closed for the week. In New York, Jackie Casola — whose son Robert Arifo is a sophomore at St. Francis — said her son told her a number of students had been sent home sick Thursday and hardly anyone was in school Friday.

Arifo hasn't shown any symptoms, but some of his friends have, his mother said. And she has been extra vigilant about his health. "I must have drove him crazy — I kept taking his temperature in the middle of the night," she said.

Associated Press writers Josh Hoffner, Jennifer Peltz, Deepti Hajela, Cristian Salazar and Amy Westfeldt in New York; Michael R. Blood in Los Angeles, Michelle Roberts in San Antonio and Meghan Barr in Columbus, Ohio, contributed to this report. Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.  

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Posted: 4/27/2009 12:07:59 PM by StockMarketFunding | with 0 comments


April 27 (Bloomberg) -- The swine flu outbreak is spreading geographically and an emergency panel of the World Health Organization is meeting to determine whether a new alert level is needed, WHO spokesman Gregory Hartl said today on a conference call. 


To contact the reporter on this story: Robert Greene in Washington at rgreene2@bloomberg.net. Last Updated: April 27, 2009 11:09 EDT   

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Posted: 4/27/2009 10:44:21 AM by StockMarketFunding | with 0 comments


April 20 (Bloomberg) -- Members of a Jamaican anti-terror police squad boarded a chartered Canadian airliner in Montego Bay, Jamaica, today and captured a gunman who was demanding to be flown to Cuba.


Officers who entered the cabin of the plane at about 6:40 a.m. local time disarmed and arrested the gunman, identified as Stephen Fray of Montego Bay, and freed six crew members being held hostage, the Jamaica Information Service said in a statement posted on its Web site. None of the aircraft’s passengers or crew was hurt. The gunman boarded the CanJet Airlines Boeing 737 late yesterday at the Montego Bay airport as it was being loaded, and demanded to fly to Cuba, the airline said in a statement on its Web site.

The plane, operated for Transat Tours Canada, was already scheduled to fly to Halifax, Nova Scotia, via Santa Clara, Cuba. The aircraft’s 174 passengers, all Canadians, and two members of the crew were released, while six crew members were held hostage, said Kent Woodside, CanJet vice president, in a televised news conference today.

The gunman fired one shot while he was on the gangway leading to the plane, Woodside said. The security breach that allowed an armed man onto the aircraft is being investigated, Woodside said. The hijacker was described as a young man in his 20s with “mental challenges,” Daryl Vaz, Jamaica’s minister for information, said in a statement.

The gunman’s father, other relatives and friends were involved in negotations, Vaz said. Canadian Prime Minister Stephen Harper arrived late yesterday for a two-day state visit following the Summit of the Americas in Trinidad and Tobago. To contact the reporters on this story: Chris Dolmetsch at cdolmetsch@bloomberg.net; Brian Lysaght in London at blysaght@bloomberg.net.  

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Posted: 4/20/2009 9:25:17 AM by StockMarketFunding | with 0 comments


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