Daily Archives: May 8, 2009

Stress Test: Ten Major Banks need a $75 Billion to stay afloat.

The Federal Deposit Insurance Corporation released results of his stress test on Thursday, that said ten of the top 19 major banks need an estimated $75 billion in case the economy falters later this year. The FDIC says the major banks $599 Billion in loses.

The stress test measure future losses in loan losses real estate and securities. The Treasury has urged the banks begin to raise capital to stay solvent. Wells Fargo needs $13.8 billion, Morgan Stanley needs $1.8 billion; These banks have announced programs to raise the funds Wells Fargo will issue $6 billion in a common stock offering. While Morgan Stanley will raise $2 billion  in stock.

Stocks were mixed on Thursday,Bank of America shares climbed 3.6% to $13.99, while Citigroup was up 6.3% to $4.05. Fifth Third jumped 19% to $6.35. SunTrust fell 2.5% to $18.05, and Wells Fargo slipped 0.9% to $24.54.

The stress test results may effect the public ability to buy cars, home , refinance loans, remodel homes and business, start new business.  It would make it harder to borrow money to lend which affect banks survival.

The Good  News nine of the top bank the FDIC said were sound  include J.P. Morgan/Chase, and Goldman Sachs  as well as several regional banks area sound.

Here are the banks that need more tarp money:

Wells Fargo & CO $13.8 billion

Morgan Stanley $1.8 Billion

Bank of America $34 Billion

Sun Trust $2. 2 billion

Regions Financial $2.5 billion

Key Corp $1.8 Billion

Fifth-Third Bank $101 Billion

Citigroup $5.5 Billion

GMAC $11.3 Billion

Here are the Financially Sound banks  per stress test

J.P. Morgan Chase

US Bancorp

BB&T

American Express

Bank of New York Mellon

Captiol One

Goldman Sachs

Met Life

State Street

From the Wall Street Journal

Swine Flu:Canada’s First Death;Over 1600 cases in US. WHO says Up Two Billion worldwide could be infected.

A woman from northern Alberta has died from Swine Flu.The first death in Canada. Alberta Health Official Dr. Andre Corriveau, said  the victim was in her 30’s and did not travel outside of the country. Corriveau made the announcement Friday at a press conference.

In the US The Centers for Disease Control and Prevention said there are 1639 cases of Swine Flu in the US  in 43 states. Official with the CDCP  expects the H1N1 Virus in all 50 states in various degrees from mild to severe cases.

Meanwhile,  the World Health Organization says  two billion people could be infected if the Swine Flu become a pandemic.

Dr. Ken Fukuda, the WHO Flu Chief, says this isn’t a prediction but with experience with flu pandemics  shows with at least one third population get infected.“If we do move into a pandemic then our expectation is that we will see a large number of people infected worldwide,” Fukuda said. “If you look at past pandemics, it would be a reasonable estimate to say perhaps a third of the world’s population would get infected with this virus.

Even with a mild flu, “from the global perspective there are still very large numbers of people who could develop pneumonia, require respirators, who could die,” Fukuda said.

The most vulnerable is third world regions such as Southern Hemisphere, where malnutrition, war, disease, HIV and other factor  Fukuda said. This region could  serve illness and death.

The Swine flu has 2000 cases of infected individuals around the world.

Back in the US the CDCP has says schools can remain open.

Brietbart

Rueters

H/T: Drudge Report

Nancy”Liar, Liar, Pants on Fire” Pelosi: The Waterbording Queen

From Washington Post,  Speaker of the House of Representative, Nancy Pelosi knew about water board the controversial technique which the US employed to gather information from Al Qaeda terrorists at Guantanamo Bay Prison. In fact Pelosi was the first member  of congress also with Representative Porter Goss (R-Florida) were briefed on the techniques.

The memo, issued by the Director of National Intelligence and the Central Intelligence Agency to Capitol Hill, notes the Pelosi-Goss briefing covered “EITs including the use of EITs on Abu Zubaydah.  Enhanced Interrogation Techniques (EIT) used on Zubaydah was the first used by the Intellegence agencies which used water boarding, which was beneficial to get information on potenial terrorist attacks.

On Thursday,  in carefully worded statement  The speaker’s office still denies knowledge of water boarding, except to say it was approved by Bush administration lawyers.

This woman is lying. The truth has found you out Nancy. You can run but you can’t hide.  What the old saying the truth shall set you free.  Come clean now  before its too late. The blame Bush memme is getting old. Your hands are not clean.  Do it now or  find a new home in Leavenworth, Kansas at the federal pen.

Time to Break Up Los Angeles Unified School District

LA Times reporter Jason Song  has written a series  of reports weakness of The Los Angeles Unified School District and Power of United Teachers Of Los Angeles in why it is nearly impossible to fire bad, incompetent or dangerous teachers.  On Sunday,The Times began a series called “Failure Gets a Pass show the power  of the Teacher Unions in California and United Teachers of Los Angeles in particular  on the ability to dismiss teachers. In most states it takes three  years to become tenured. Here in  California it’s two.

Removing teachers in California  and LAUSD virtually impossible. The system is arduous, time consuming and when the school district may have done everything right the teacher will still keep their job thanks to lengthy appeals.

Part one deals with trying to fire teachers: Carlos  Polanco, a former teacher  at Virgil Junior High , make a sarcastic remark to a student who was hospitalized  after  making a suicide attempt.  The student  showed the wounds. Polanco allegedly called the cuts weak; carved deeper next time. Look you couldn’t kill yourself. Another student  told the boy how do it. The Polanco  said see he (the other boy) even know how to kill himself. The LAUSD school board  voted to fire him. But Polanco kept his job. He was misunderstood by the student and school board. The Teacher review commission overruled the school District board. The commission acknowledge Polanco made the statements. The teach meant no harm. Polanco now teaches At East Valley High School, in North Hollywood.

Part Two LA Unified Pays Teachers Not To Teach;  LA Times reporter Jason Song goes into detail LAUSD warehouses 160 teachers in various locations in the school district a few others are at home earning their salaries  while  appealing their suspension or termination.  Meet Matthew Kim, a LAUSD special education teacher with cerebral palsy who taught at Ulysses S. Grant High School in Valley Village section of LA. Kim has  was accused  of inappropriate touching of female students and colleagues. Kim said this was not the case. Kim has the partial use of one hand.  The school district has tried to fired Kim but to no avail. Kim said it was an involuntary movement. The district and Kim’s legal defense team has both scored victories. Kim claims disability discrimiation. Today Kim still earns his $68,000 salary while staying home.

In LAUSD teachers who are suspended are  not allowed by their union contract to anything but teach. Although there is no specific reference in the contract to housed employees, an attorney for L.A. Unified pointed to Article 9, Section 4.0, which defines the “professional duties” of a teacher, such as instructional planning and evaluating the work of pupils.  United Teachers of Los Angeles President A. J. Duffy, said”Why should we deingrade teacher by forcing them to doing something that they are not suppose to do.” This leaves teachers twitting their thumbs  waiting for news for their reinstatement or for termination.

In other school  systems, are mixed.  New York City Department of Education teachers do the same things in Los Angeles Unified nothing.  About 550 teachers  of the nation’s largest public school district teachers sit around doing nothing in so-called “rubber rooms” throughout the city.

In Chicago,  the process moves faster fire or reinstate the 30 or so teachers  who are waiting for fate who are assigned  to secretarial task in Chicago Public Schools(District 299).

In San Francisco Unified, teachers who waiting for their fate perform administrative tasks or working warehousing or doing inventory.

LA Unified Chief Ramon C. Cortines would like to fire the teachers but cannot. Cortines believes this needs to change. An attempt was made by one of two LA School Board members

“It’s a glaring example of how hard it is to remove someone from the classroom and how the process is tilted toward teachers,” said school board member Marlene Canter, who recently proposed — unsuccessfully — to revamp the disciplinary process.

These are some of the reasons that the LA Unified Schools District needs to broken down.  Other reasons includes  Payroll system debacle. in which teacher salaries and other district employees pay was shortened or was missing for 6 months making district employee go through a financial hardship in which some district filed bankruptcy.

Another scandal involved short term of LA Unified School District  Superintendent Vice-Admiral David C. Brewer, The school system first African-American leader.  Brewer was bought out of his contact in the summer of 2008 due to lack of improvement in test scores and graduation rates. Brewer felt that he was not given enough time to reform the spwalling school district. He was hired in late 2006. Brewer and some in the Africian American Community believed the that the Vice-Admiral Brewer was removed because he of his race.

Another problem is that the Los Angeles Unified School District building spree.  Late 1990’s  to early 2000’s the School district began a campaign new school campuses. The campuses were planned during explosive growth in district.  However, the LAUSD  is facing declining enrollment. During housing boom, many students moved to the outer ring suburban and exurban areas such as  Fontana, Moreno Valley, Beaumont; Lancaster, Palmdale, Victorville, and Apple Valley. Some families moved out of the state to Nevada, Arizona, Colorado, Texas, North Carolina, Georgia and Florida.

More students are leaving for  Mexic0 and Central America, Illegal immigrants have moved due to the housing bust and the current recession and the mounting job losses and opportunity have dried up. Wholesale families have given up on the American Dream  and they are fleeing. Some schools will be built sitting empty until population increases.

With that in mind its time to brake up the school district. LASUD is too unwieldy, too week in some aspects, too incompetent. The model is broken and need to be demolished. More local control.  Change the laws in Sacramento so that real reform can happen. Make school teachers and adminstrators  more accountable to parents and state education leaders.

A smaller school district would function more nimbly, more responsively  and better results. San Diego is divided into four regional school districts: San Diego Unified School district  is the cities largest covering most of the city south of State highway 52 to the National City, Lemon Grove, La Mesa borders.

Northwest San Diego(Torrey Pines, Carmel Valley and Sorrento Valley) is in the San Dieguito Unified School district one of the top school district in the State and nation.

North Central and Northeast San Diego(Rancho Penasquitos, Rancho Bernardo, 4 S Ranch and Sabre Springs) are  in the Poway Unified School District San Deigo County’s second largest school system.

Sweetwater Union School Disrict contains the San Diego communities including Otay Mesa, Palm City, South San Diego and San Ysidro.

San Dieguito, Poway  and Sweetwater Union students have better scores than the San Diego Unified  and San Diego Unified has far more high school graduates that LA.

Bigger is not better. Change must come to the district. Or the students will pay in the long term.