DealBook Column: A Reputation, Once Sullied, Acquires a New Shine

How do you describe Steven L. Rattner?

Up until three years ago, he was typically referred to in these pages as a former journalist turned successful financier — the vice chairman of the investment bank Lazard and then a co-founder of the Quadrangle Group, the private equity firm.

With much fanfare, he then became the White House auto czar assigned to fix General Motors and Chrysler, after years of trying to become part of the Washington firmament like so many on Wall Street who have wanted to make the leap.

He was the ultimate consigliere to power. Then, it all fell apart.

He was accused of using “pay to play” practices while raising money from a New York state pension fund when he was still at Quadrangle. In 2010 he paid more than $16 million to Andrew M. Cuomo, who was then New York’s attorney general, and the Securities and Exchange Commission to settle the civil cases without admitting or denying wrongdoing.

He was “banned from appearing in any capacity before any public pension fund within the State of New York for five years” and for “associating with any investment adviser or broker dealer” for two years, according to the suits. As the case proceeded, he stepped down from his position in the Obama administration.

Among the cocktail party circuit in Manhattan, Mr. Rattner was Topic A. And the schadenfreude was thick. Mr. Rattner, the narrative developed, had become Wall Street’s Icarus, flying too close to the sun. The New Republic headlined one article: “Rattner Hoisted on His Own Petard.” The question was asked: Would he ever eat lunch in this town again? And what about Washington?

Now, two years later, Mr. Rattner is lunching all over town. And, in truth, he may have never stopped.

As Mr. Rattner sat across from me in Midtown Manhattan two weeks ago, his re-emergence as power magnate was well under way. He is the overseer of Mayor Michael R. Bloomberg’s fortune of billions of dollars — you could call Mr. Rattner a money manager but that doesn’t capture the scope of it. He has appeared as a pundit about the economy on television (MSNBC’s “Morning Joe,” ABC’s “This Week” and “Fox News Sunday,” among others) and in newspapers (The Financial Times, Politico and The New York Times). And to take the story full circle, the Obama administration, which had eased Mr. Rattner out of his role, appears to have re-embraced him, even using him to campaign for the president last fall.

“It was the worst thing that ever happened in my professional life,” Mr. Rattner, who had taken off his trademark tortoise-rim glasses, said of the accusations and the settlement. “If you asked me, do I wish I had done some things differently about this whole situation, of course I wish I had done some things differently.” More on that in a moment, but he also has clearly worked unremittingly to move on. “Looking back, it was a bit like the half life of a radioactive isotope. Every few months the intensity of what happened seemed to go down by half,” Mr. Rattner added, as he sipped English Breakfast tea.

If there was a question about his current status — and whether the chattering classes had moved on — the guest list of his 60th birthday party this last summer, overlooking Rockefeller Center, may provide the answer: Mr. Bloomberg, Barry Diller, Jamie Dimon, Harvey Weinstein, Senator Charles E. Schumer, Ralph Lauren, Brian Roberts and Fred Wilpon, among others, were all in attendance.

When Vice President Biden held his holiday party in December, Mr. Rattner was there. And at the home of Hillary Clinton last month for her farewell party from the State Department, where Mr. Rattner’s wife, Maureen White, works, he was there, too. (His wife was the finance co-chairwoman of the Hillary Clinton for President campaign.)

In a city where powerful figures are dropped at the whiff of trouble — and rarely return to positions of significant influence despite efforts at comebacks — Mr. Rattner’s narrative of a meteoric rise to embarrassing scandal and back again is notable.

His re-emergence may also be a telling commentary about the way the nation’s elite flock to people with power — and those with powerful friends.

Some of his friends, many of whom declined to comment on the record, said they were willing to overlook his past transgressions because they felt he had paid for them, through the fines and the negative publicity. Others said that he had always been honest with them. Still, there are other friends who say they have distanced themselves from him but haven’t cut him off entirely for fear of alienating themselves from other people in his circle.

Mr. Diller, the chairman of IAC, counts himself among Mr. Rattner’s friends. “Whatever complications there were, I never thought he was culpable.” He added, “When you get anybody who is up there, then the takedown is going to have a pile-on effect. It is the nature of public life.”

That may be a truism. But at the time of the scandal, Mr. Cuomo used particularly pointed language: “Steve Rattner was willing to do whatever it took to get his hands on pension fund money including paying kickbacks, orchestrating a movie deal, and funneling campaign contributions.”

In the S.E.C.’s case, David Rosenfeld of the New York regional office said then that Mr. Rattner “delivered special favors and conducted sham transactions that corrupted the Retirement Fund’s investment process.”

Before we go any further, some disclosures are in order: It is well documented that Mr. Rattner is a longtime friend and confidant of the publisher of this newspaper, Arthur Sulzberger Jr. (Mr. Sulzberger was in attendance at Mr. Rattner’s birthday party, too.) Mr. Rattner was a reporter for The Times in the late 1970s and early 1980s. He also now writes a monthly Op-Ed column in The Times, arguably providing him with a powerful platform that increases his influence. I purposely haven’t discussed anything about Mr. Rattner with Mr. Sulzberger before writing this column. Now that that’s done, let’s continue.

Mr. Rattner’s re-emergence was not assured.

“There were some people inevitably who I thought were my friends who I found out were more fair weather and especially some in the political world,” he said. “I’m sure they said to themselves, let’s just keep a little space here and see what happens to Steve as opposed to let’s embrace Steve and say he’s my friend.”

One friend who never left was Mr. Bloomberg. When news of Mr. Cuomo’s case against him first broke, Mr. Rattner sent him an e-mail to give him a heads-up about the situation. Mr. Bloomberg’s reply? “The only thing wrong with you is your golf game.”

In an interview, Mr. Bloomberg said, “Steve is a good friend. You stick by your friends. And I don’t worry about what people say.” And despite all the chatter about Mr. Rattner, Mr. Bloomberg added, “I never heard anyone say they wouldn’t invite Steven Rattner to a party because of what was happening.”

The White House was less forgiving. While the Obama administration and Mr. Rattner portrayed his exit from Washington in July 2009 as a natural time to leave since his role helping G.M. through a government supported bankruptcy was finished, the president clearly made no effort to keep him, given the investigation hanging over him.

On the merits of the case that Mr. Rattner settled with Mr. Cuomo — which Mr. Rattner once described as “close to extortion” — he still has strong views. He and several other private equity firms, including the Carlyle Group, were accused of using Hank Morris, a political consultant, to help the firms obtain hundreds of millions of dollars to manage for the New York state pension fund.

Mr. Morris pleaded guilty to a felony count of violating the Martin Act for paying kickbacks and went to prison. Mr. Rattner was also accused of influencing a film distribution company that Quadrangle owned to secure a DVD distribution deal for a low-budget movie called “Chooch” that was produced by a pension fund official’s brother.

Mr. Rattner said: “I can’t imagine that any of the many firms that hired Hank Morris wouldn’t do that differently, given what he turned out to be. I appreciate clearly how important it is to avoid even the appearance of impropriety.”

Mr. Rattner and Mr. Cuomo chose to settle the case on what some lawyers described as benign terms given the penalty of a $26 million fine and a lifetime ban from the securities industry that Mr. Cuomo originally sought. Mr. Rattner settled for $10 million and a ban from working with New York State pension funds for five years, none of which has prevented him from continuing his role of managing Mr. Bloomberg’s money.

Unusually, Mr. Cuomo even agreed that Mr. Rattner’s settlement would include none of the usual language about admitting or denying wrongdoing, which allows Mr. Rattner to deny he ever broke the law. Mr. Rattner said he chose to settle the case, rather than fight what he said he expected to be a drawn-out court battle, because he wanted to move on with his life. He also paid $6.2 million to settle the S.E.C. case.

He clearly feels a sense of regret about some his actions, but declined to discuss the accusations in detail, citing the settlements.

A spokesman for Governor Cuomo declined to comment.

Mr. Rattner said he discovered a unique indicator to measure the impact of the scandal, which might just prove his theory that he should be compared with a radioactive isotope.

Right after the settlement, Mr. Rattner, who has long been active in political fund-raising for Democrats, said nobody would take his money. In fact, one politician, whom he declined to name, sent back a $500 donation from 2011. Several months later, he began to receive solicitations from politicians looking for his help in raising funds, he said. But does that say more about the state of Washington politics or Mr. Rattner?

Despite his past, the White House called him last fall and talked about his campaigning for the president in Ohio, where the auto bailout was an important issue. (Mr. Rattner published a book in September 2010 about his experience in trying to fix Detroit called “Overhaul: An Insider’s Account of the Obama Administration’s Emergency Rescue of the Auto Industry.”)

David Axelrod, who was President Obama’s senior strategist for his re-election campaign, said in an e-mail of Mr. Rattner, “Whatever happened in New York didn’t obviate the great service he rendered.” He added: “Steve did an extraordinary job for the administration and the country in helping to shape the auto plan, which was a clear success.”

So will Mr. Rattner ever have a chance to work in government again? For years, his name was always part of the parlor game of potential nominees for Treasury secretary.

He had a quick answer about returning to Washington: “Probably not.” He said now that he had worked in the capital and lived in the glare of the spotlight, he better appreciates the upside and downside. He said: “I had a great experience, but I also found out how thankless and frustrating it can be.”

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New look at Apollo moon rocks reveals signs of 'native' water









Scientists picking up signs of water on the moon's surface typically attribute them to deposits left by comets, asteroids and other heavenly objects. But a new analysis of lunar samples brought back to Earth by Apollo astronauts in the early 1970s indicates that the moon's interior may have been a little damp in its early days.


The findings, published online Sunday in the journal Nature Geoscience, support mounting evidence that the moon once contained some "native" water — throwing a wrench into current beliefs about how Earth's companion formed.


Prevailing theories hold that the moon was created when a Mars-sized body crashed into the young Earth and broke off debris that eventually coalesced into a new entity. In the process, much of the water would have evaporated into space, leaving Earth's new satellite quite arid.





PHOTOS: Images of space


"It's thought that the moon's formation involved the materials getting very hot," said Paul Warren, a UCLA cosmochemist who was not involved in the new study. "It's usually assumed that little water would have survived through that."


Indeed, the samples returned by the Apollo missions that visited the lunar highlands seemed to confirm that Earth's cold, rocky companion was bone-dry, said University of Notre Dame geologist Hejiu Hui, who led the new analysis.


But work in the last five years has challenged that notion, as scientists have used more advanced methods to look for increasingly tiny concentrations of water in glass beads that are thought to have been formed by volcanic eruptions in the moon's early days.


Some experts have argued that those glass beads could have been exposed to alien water sources after they had been ejected from the moon's interior. So Hui and his colleagues decided to look at a type of rock called plagioclase, which is thought to have formed in a magma ocean inside the moon. Although the rocks later floated to the surface to form the crust, they contain a chemical time capsule from inside the young moon.


To further rule out any outside source of water, Hui's team looked past the surface of these rocks and into their centers.


After examining the samples under a microscope equipped with a spectrometer, the researchers found that the rocks contained 6 parts per million of water. That’s drier than an Earth desert, but far more than expected to survive in a rock from the moon's once-molten center.


The samples should have been bone-dry, Hui said, but "somehow we still detect this amount of water, so that makes things interesting."


Based on their measurements, the researchers estimated that the early moon's magma ocean could have contained up to 320 parts per million of water. Once that ocean mostly crystallized, the remaining residues could have had as much as 1.4% water. That could explain the measured water content in lunar rocks, Hui said.


The findings could have interesting implications for theories about how the moon came to be, Warren said.


"It's thought that the moon's formation involved the materials getting very hot, and it's usually assumed that little water would have survived through that," he said. If the new study is right, "It opens up quite a mystery as to how the moon came through what we think was a very hot genesis process with this much water."


The findings also have implications for the moon's geological evolution, Warren said. Researchers have reconstructed the history of the moon's crustal formation while assuming there were negligible amounts of water involved. Now scientists may need to reevaluate some of those ideas.


Knowing how much water there is could be handy for future explorers. "Someday, when we put men on the moon in a more permanent way, we might need that water," Warren said.


amina.khan@latimes.com





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<cite>Halo</cite> Creator Unveils Its Next Masterpiece, a Persistent Online World



BELLEVUE, Washington — Destiny, the new game from the creator of Halo, isn’t just another shooter. It’s a persistent online multiplayer adventure, designed on a galactic scale, that wants to become your new life.


“It isn’t a game,” went the oft-heard tagline at a preview event on Wednesday. “It’s a world where the most important stories are told by the players, not written by the developers.”


This week, Bungie Studios invited the press into its Seattle-area studio to get the first look at Destiny. Although the event was a little short on details — Bungie and Activision didn’t reveal the launch date, handed out concept art instead of screenshots, and dodged most of my questions — it gave an intriguing glimpse at what the creator of Halo believes is the future of shooters.


Bungie was acquired by Microsoft in 2000, and its insanely popular shooter was the killer app that put the original Xbox on the map. Bungie split off from its corporate parent in 2007, and Microsoft produced Halo 4 on its own last year. The development studio partnered up with mega-publisher Activision for its latest project, which was kept mostly secret until now.


Destiny, slated for release on PlayStation 3 and Xbox 360, isn’t exactly an MMO. Activision CEO Eric Hirshberg called it a “shared-world shooter” — multiplayer and online, but something less than massive.


“We’re not doing this just because we have the tech,” Hirshberg said. “We have a great idea, and we’re letting the concept lead the tech.”



Built with new development software created specifically for Destiny, this new game is set in Earth’s solar system and takes place after a mysterious cataclysm wipes out most of humanity. The remaining survivors create a “safe zone” underneath a mysterious alien sphere called “The Traveler.”


The enigmatic sphere imparts players with potent weapons, magic-like powers and defensive technology. Thanks to these gifts, people have begun reclaiming the solar system from alien invaders that moved in while humanity was down.


Bungie fired off a list of design principles that guide Destiny’s creation: Create a world players want to be in. Make it enjoyable by players of all skill levels. Make it enjoyable by people who are “tired, impatient and distracted.” In other words, you don’t have to be loaded for bear and pumped for the firefight of your life every time you log on to Destiny.


After this brief overview, writer/director Joseph Staten used concept art and narration to outline an example of what a typical Destiny player’s experience might be.


Beginning in the “safe zone,” a player would start out from their in-game home and walk into a large common area. From here, the player would be able to explore their surroundings and meet up with friends. Then, they might board their starships and fly to another planet, let’s say Mars, in order to raid territory held by aliens.


During this raid, other real players who traveled to the same zone (like visiting a particular server on an MMO) would be free to come and go as they please. For example, a random participant could simply walk on by. They could stop and observe. Or they could get involved in the fight. In this instance, Staten suggested that a passerby would join the raid and then break off from the group after the spoils were divvied up without any user interface elements to fuss with. Walk away, and it’s done.


Bungie made a point of saying several times over that Destiny will not have any “lobby”-type interfaces, or menus from which to choose from a list of quests. Instead, players will simply immerse themselves in the world and organically choose to participate in whatever activities they stumble upon. Bungie promised solo content, cooperative content, and competitive content, though it provided no further examples of these.


The developer said that by employing very specialized artificial intelligence working entirely behind the scenes, players will encounter other real players who are best suited for them to interact with, based on their experience levels and other factors.


Staten didn’t say how many players would be able to exist in the world at the same time, but said that characters will be placed in proximity to each other based on very specific criteria, not simply to “fill the world up.”







Bungie showed off three distinct character classes throughout the day’s presentations: Hunter, Titan and Warlock. Although no differences were outlined between them apart from the Warlock being able to use a kind of techno-magic, the developer was keen to emphasize the idea that each character in Destiny would be highly customized and unique, and will grow with the player over an extended period of time.


While many games make the same promise, Destiny’s vision of “an extended period of time” isn’t 100 hours. It’s more like 10 years.


Bungie’s plan is for the Destiny story to unfold gradually over the course of 10 “books,” each with a beginning, middle and end. Through this will run an overarching story intended to span the entire decade’s worth of games, although like many other topics covered during the day, Bungie gave little detail about how this will work.


The developer spent a lot of time emphasizing its claim that no game has been made at this scale before. Bungie says it has a whopping 350 in-house developers working on Destiny.


Senior graphics architect Hao Chen gave examples of the sort of impenetrable mathematics formulas that allow Bungie to craft environments and worlds at a speed that it claims was previously impossible.


Bungie’s malleable team system was also said to increase its output. With the ability to co-locate designers, artists, and engineers at any time, Bungie says it can go through exceptionally rapid on-the-spot iteration and improvement for each facet of the game.


Apart from highly improved technology and the basic concept of humanity taking back the solar system, there’s just not a lot of hard information on Destiny at the moment. One thing that was made quite clear is that the game will not be subscription-based. Every presenter was clear in stating that players will not pay a monthly fee to participate in this persistent world.


While fees may not be required, a constant connection to the Internet will be. Since the core concept of Destiny is exploring a world that exists outside of the player’s console and is populated by real people at all times, it “will need to be connected in order for someone to play,” said Bungie chief operating officer Pete Parsons.


Representatives from both Bungie and Activision gave vague answers when Wired pressed for further details, often stating that they “were not ready” to discuss specifics. Whether that means those things are still being kept from the press, or whether they have not yet been determined by the development team, was unclear.


Questions currently unanswered: How will players communicate? How will players interact with each other outside of combat? What content exists in the non-combat “safe zones”? Subscriptions may be out, but what about in-app purchases? Will player versus player combat be available? Will the game ship on a disc or be download only? Will its persistent world allow Xbox and PlayStation gamers to play together? What content and interactions will be possible via smartphones and tablets (which Bungie alluded to)? Will the fancy new tools be licensed to other developers?


And so on.


For now, Bungie is asking us to take it for granted that it will execute on a bold 10-year plan for a very different sort of shooter. In the history of the always-changing gaming industry, no one’s ever been able to pull off a 10-year plan for anything. Can Bungie do it?


Hey… they made Halo, right?


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“Die Hard” action beats love stories at box office






(Reuters) – The fifth movie in the Bruce WillisDie Hard” franchise scored the biggest box-office action over the U.S. holiday weekend, beating out love story “Safe Haven,” which came in third for the Friday-through-Sunday period.


“A Good Day to Die Hard,” with Willis returning as the tenacious, wisecracking hero John McClane, pulled in $ 25 million at U.S. and Canadian theaters over the three days, according to studio estimates.






The tally was expected to approach a total of $ 40 million for the five days that began with Thursday’s Valentine’s Day and ends with Monday’s Presidents Day holiday in the United States.


Die Hard” beat “Safe Haven,” an adaptation of a Nicholas Sparks novel that was aimed at luring couples during the week of Valentine’s Day. The film, which stars Julianne Hough and Josh Duhamel, pulled in $ 21.4 million over the three days.


Last weekend’s box office winner, the Melissa McCarthy comedy “Identity Thief,” stayed strong and ended up taking second place with $ 23.4 million from Friday to Sunday.


Willis prevailed with his reprisal of a role he played four previous times starting with the original “Die Hard” in 1988. Those movies grossed $ 1.1 billion around the world and made Willis a global action star.


In the new movie, McClane travels to Russia to help his estranged son, a CIA operative played by Jai Courtney, in a fight to prevent a nuclear weapons heist.


Chris Aronson, president of domestic distribution at 20th Century Fox studio, said the film performed “right on par with our expectations,” which was near $ 40 million for the five-day period.


Audiences were about 55 percent male and 45 percent female, with just over one-third under the age of 25 and two-thirds 25 and older, which Aronson said was in line with the franchise’s last installment.


“It just shows the consistency of the fan base,” he said.


The opening was nearly double the total of the original “Die Hard,” adjusted for inflation, but down significantly from the previous three films in the franchise, according to figures from boxofficemojo.com.


The film added another $ 61 million to its total at international box offices, performing especially well in Russian, Japan and the United Kingdom.


‘BEAUTIFUL CREATURES’ MISSES AUDIENCE


News Corp’s 20th Century Fox spent about $ 92 million to produce the latest “Die Hard” sequel. It hit theaters on Valentine’s Day, and, in addition to “Safe Haven,” faced another romance movie in “Beautiful Creatures.” Fox promoted “Die Hard” with commercials encouraging moviegoers to “get some action” on Valentine’s Day.


Safe Haven” stars “Dancing with the Stars” alum Hough as a young woman who meets a widower played by Duhamel. Privately held Relativity Media produced the film for $ 28 million.


The studio said “Safe Haven” was on track to finish second for the Thursday-to-Monday period, with total sales of $ 34 million, beating industry projections.


Beautiful Creatures,” the supernatural love story about a teenage girl with magical powers, made its debut with $ 7.5 million at the box office to rank sixth in the three-day tallies.


The film was another of several Hollywood films aiming to capture the “Twilight” and “Hunger Games” audiences of teenage girls with adaptations of popular young adult novels.


Jeff Goldstein, Warner Bros. executive vice president of theatrical distribution, said “Beautiful Creatures,” produced by Alcon Entertainment for about $ 60 million, had a number of competitors on a busy weekend and the studio had hoped for a bigger turnout. “It just missed the audience,” he said.


In fourth place, family film “Escape from Planet Earth,” pulled in $ 16.1 million over the three days. The $ 40 million animated movie features the voices of Brendan Fraser and Sarah Jessica Parker in the story of an astronaut who finds trouble when he responds to a distress call from an alien planet.


Zombie romance “Warm Bodies,” in its third weekend of release, took the No. 5 slot with $ 9 million over the three days.


“Identity Thief” was released by Universal Pictures, a unit of Comcast Corp. The privately held Weinstein Co released “Escape from Planet Earth.” Lions Gate Entertainment’s Summit studio released “Warm Bodies.” “Beautiful Creatures” was produced by Alcon Entertainment and distributed by Warner Bros., a unit of Time Warner Inc.


(Reporting By Lisa Richwine in Los Angeles and Chris Michaud in San Francisco; Editing by Bill Trott and Eric Beech)


Movies News Headlines – Yahoo! News





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Allure of Self-Insurance Draws Concern Over Costs





WASHINGTON — Federal and state officials and consumer advocates have grown worried that companies with relatively young, healthy employees may opt out of the regular health insurance market to avoid the minimum coverage standards in President Obama’s sweeping law, a move that could drive up costs for workers at other companies.




Companies can avoid many standards in the new law by insuring their own employees, rather than signing up with commercial insurers, because Congress did not want to disrupt self-insurance arrangements that were seen as working well for many large employers.


“The new health care law created powerful incentives for smaller employers to self-insure,” said Deborah J. Chollet, a senior fellow at Mathematica Policy Research who has been studying the insurance industry for more than 25 years. “This trend could destabilize small-group insurance markets and erode protections provided by the Affordable Care Act.”


It is not clear how many companies have already self-insured in response to the law or are planning to do so. Federal and state officials do not keep comprehensive statistics on the practice.


Self-insurance was already growing before Mr. Obama signed the law in 2010, making it difficult to know whether the law is responsible for any recent changes. A study by the nonpartisan Employee Benefit Research Institute found that about 59 percent of private sector workers with health coverage were in self-insured plans in 2011, up from 41 percent in 1998.


But experts say the law makes self-insurance more attractive for smaller employers. When companies are self-insured, they assume most of the financial risk of providing health benefits to employees. Instead of paying premiums to insurers, they pay claims filed by employees and health care providers. To avoid huge losses, they often sign up for a special kind of “stop loss” insurance that protects them against very large or unexpected claims, say $50,000 or $100,000 a person.


Such insurance serves as a financial backstop for the employer if, for example, an employee is found to have cancer, needs an organ transplant or has a premature baby requiring intensive care.


In a report to clients last year, SNR Denton, a law firm, wrote, “Faced with mandates to offer richer benefits with less cost-sharing, small and midsize employers in particular are increasingly considering self-insuring.”


Officials from California, Maine, Minnesota, Utah, Washington and other states expressed concern about the potential proliferation of these arrangements at a recent meeting of the National Association of Insurance Commissioners.


Stop-loss insurers can and do limit the coverage they provide to employers for selected employees with medical problems. As a result, companies with less healthy work forces may find self-insuring more difficult.


Christina L. Goe, the top lawyer for the Montana insurance commissioner, said that stop-loss insurance companies were generally “free to reject less healthy employer groups because they are not subject to the same restrictions as health insurers.”


Insurance regulators worry that commercial insurers — and the insurance exchanges being set up in every state to offer a range of plan options to consumers — will be left with disproportionate numbers of older, sicker people who are more expensive to insure.


That, in turn, could drive up premiums for uninsured people seeking coverage in the exchanges. Since the federal government will subsidize that coverage, it, too, could face higher costs, as would some employees and employers in the traditional insurance market.


Large employers with hundreds or thousands of employees have historically been much more likely to insure themselves because they have cash to pay most claims directly.


Now, employee benefit consultants are promoting self-insurance for employers with as few as 10 or 20 employees.


Raeghn L. Torrie, the chief financial officer of Autonomous Solutions, a developer of robotic equipment based in Petersboro, Utah, said her business started a self-insured health plan for its 44 employees on Jan. 1 as a way to cope with the uncertainties created by the new law.


“We have a pretty young, healthy group of employees,” she said.


In Marshfield, Mo., J. Richard Jones, the president of Label Solutions, an industrial label-printing company with 42 employees, said he switched to a self-insurance plan this year “to hold down costs that were going up because of government regulation under Obamacare.”


The Township of Freehold, N.J., made a similar decision in January to gain more control over benefits and costs for its 260 employees.


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Editorial: Wages, From the Bottom Up





President Obama was right about the need to increase the federal minimum wage, but it was too bad that he pulled his punches in calling on Congress to lift the wage only to $9 an hour by the end of 2015, from $7.25 an hour, where it has been since 2009.




His proposal would boost the annual pay of an employee working full time at the minimum wage from $14,500 now to $18,000, which is still very low. Several economic measures — including purchasing power, average wages and productivity gains — indicate that the minimum wage should be at least $10 an hour today, not $9 an hour three years from now. In 2008, Mr. Obama campaigned on raising the minimum wage to $9.50 an hour.


Politically, the lowball proposal is understandable. Congressional Republicans are bound to oppose any increase. Representative John Boehner, the House speaker, lashed out against the proposal the day after the president’s State of the Union address, a stance that will very likely further alienate important constituencies from the Republican Party, including women, who represent more than half of the estimated 18 million people currently working at or near the minimum wage, and Hispanics, who represent one-fourth.


Combined with tax credits for the working poor, Mr. Obama’s proposal could lift a minimum wage worker who is currently below the poverty line ($18,498 for a family of three in 2012) out of poverty. But the minimum wage is more than an antipoverty program. In fact, most workers at or near the minimum wage live in households with moderate family incomes above poverty levels but below the national median of roughly $60,000. For them, and for the broader economy, an adequate minimum wage can help ensure fair pay and stimulate the economy by putting more money in consumers’ wallets.


Opponents of an increase in the minimum wage argue that it will harm small businesses, but that fear is exaggerated. Research shows that the extra cost is offset by lower labor turnover, small price increases or other adjustments. In addition, many low-wage workers at small businesses are tipped workers whose employers have been shielded for decades from minimum wage increases, and thus have room for an increase.


Over all, the argument that a higher wage will kill jobs has been debunked by a range of studies showing that a higher minimum wage boosts pay without measurably reducing employment, while improving productivity. One study from the Federal Reserve Bank of Chicago found that a $1 increase in the minimum wage results, on average, in $2,800 in new spending by affected households in the following year, in large part because the increase helps workers accumulate down payments to buy cars. Owning a car, in turn, helps workers to keep their jobs.


On Wednesday, Congressional Democrats said they would introduce bills to gradually raise the wage to $10.10 an hour. Both Mr. Obama and Democratic lawmakers have also called for annual inflation adjustments, an important change that would be made better by adjusting the minimum wage to keep it in line with increases in average wages, rather than with consumer prices. A higher minimum wage would be good for workers and for the economy. The challenge is to get it through Congress.


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Deasy wants 30% of teacher evaluations based on test scores









L.A. schools Supt. John Deasy announced Friday that as much as 30% of a teacher's evaluation will be based on student test scores, setting off more contention in the nation's second-largest school system in the weeks before a critical Board of Education election.


Leaders of the teachers union have insisted that there should be no fixed percentage or expectation for how much standardized tests should count — and that test results should serve almost entirely as just one measure to improve instruction. Deasy, in contrast, has insisted that test scores should play a significant role in a teacher's evaluation and that poor scores could contribute directly to dismissal.


In a Friday memo explaining the evaluation process, Deasy set 30% as the goal and the maximum for how much test scores and other data should count.





In an interview, he emphasized that the underlying thrust is to develop an evaluation that improves the teaching corps and that data is part of the effort.


"The public has been demanding a better evaluation system for at least a decade. And teachers have repeatedly said to me what they need is a balanced way forward to help them get better and help them be accountable," Deasy said. "We do this for students every day. Now it's time to do this for teachers."


Deasy also reiterated that test scores would not be a "primary or controlling" factor in an evaluation, in keeping with the language of an agreement reached in December between L.A. Unified and its teachers union. Classroom observations and other factors also are part of the evaluation process.


But United Teachers Los Angeles President Warren Fletcher expressed immediate concern about Deasy's move. During negotiations, he said, the superintendent had proposed allotting 30% to test scores but the union rejected the plan. Deasy then pulled the idea off the table, which allowed the two sides to come to an agreement, Fletcher said. Teachers approved the pact last month.


"To see this percentage now being floated again is unacceptable," the union said in a statement.


Fletcher described the pact as allowing flexibility for principals, in collaboration with teachers, first to set individual goals and then to look at various measures to determine student achievement and overall teacher performance.


"The superintendent doesn't get to sign binding agreements and then pretend they're not binding," Fletcher said.


When Deasy settled on 30%, his decision was in line with research findings of the Bill & Melinda Gates Foundation, which has examined teacher quality issues across the country. Some experts have challenged that work.


The test score component would include a rating for the school based on an analysis of all students' standardized test scores. Those "value-added" formulas, known within L.A. Unified as Academic Growth Over Time, can be used to rate a school or a teacher's effectiveness by comparing students' test scores with past performance. The method takes into account such factors as family income and ethnicity.


After an aggressive push by the Obama administration, individual value-added ratings for teachers have been added to reviews in many districts. They make up 40% of evaluations in Washington, D.C., 35% in Tennessee and 30% in Chicago.


But Los Angeles will use a different approach. The district will rely on raw test scores. A teacher's evaluation also may incorporate pass rates on the high school exit exam and graduation, attendance and suspension data.


Deasy's action was met Friday with reactions ranging from guarded to enthusiastic approval within a coalition of outside groups that have pushed for a new evaluation system. This coalition also has sought to counter union influence.


Elise Buik, chief executive of the United Way of Greater Los Angeles, said weighing test scores 30% "is a reasonable number that everyone can be happy with."


The union and the district were under pressure to include student test data in evaluations after L.A. County Superior Court Judge James C. Chalfant ruled last year that the system was violating state law by not using test scores in teacher performance reviews.


A lawsuit to enforce the law was brought by parents in Los Angeles, with support from the Sacramento-based EdVoice advocacy organization.


If the "actual progress" of students is taken into account under Deasy's plan, "it's a historic day for LAUSD," said Bill Lucia, the group's chief executive.


All of this is playing out against the backdrop of the upcoming March 5 election. The campaign for three school board seats has turned substantially into a contest between candidates who strongly back Deasy's policies and those more sympathetic toward the teachers union. Deasy supporters praise the superintendent for measures they say will improve the quality of teaching. The union has faulted Deasy for limiting job protections and said he has imposed unwise or unproven reforms.


In the upcoming election, the union and pro-Deasy forces are matched head to head in District 4, with several employee unions behind incumbent Steve Zimmer and a coalition of donors behind challenger Kate Anderson.


Anderson had high praise for Deasy's directive, saying it struck the right balance and that teachers and students would benefit.


Zimmer said that although he understands that principals need guidance, "I worry about anything that would cause resistance or delay in going forward. I hope this use of a percentage won't disrupt what had been a collaborative process."


howard.blume@latimes.com



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The Quirky World of Competitive Snow Carving Comes to California



The weekend at Northstar ski resort in Truckee, California, is beautiful, sunny, and in the 30s. For eight teams of snow carvers from around the world, though, it’s terrible — the melty snow is sloppy, hard to carve, and even dangerous.

Teams of three from Finland, Japan, Germany, Canada, and the U.S. were selected from more than 40 applicants for the inaugural Carve Tahoe, a five-day competition to hew works of art from 14-foot-high, 20-ton blocks of snow. But despite the bad snow, the teams rely on decades of experience, handcrafted tools, and creative techniques to fashion their massive sculptures. The team members are sculptors and artists and designers, but also doctors and lawyers. Though they spend weeks each year carving, nobody makes a living doing it.


“Everyone seems to have their own method of doing things,” says Team Wisconsin’s Mark Hargarten. “It’s amazing how different they are.”


The Wisconsin team uses a grid system for their carving — a Native American wearing an eagle costume, its feathers turning to flames, called “Dance of the Firebird.” The polyurethane model they built is scaled so 1/2 inch equals one foot on the finished snow sculpture. They cut a copy of the model in four, and covered each section with clay, sectioned in 1/2 inch increments. They etch corresponding lines in the snow, one foot to a side, and they peel off one piece of clay, carve the part of the sculpture they can see, and move on to the next.


“You never get lost using the method,” says Dan Ingebrigtson, a professional sculptor from Milwaukee. “Three or four guys can work from different angles, and meet in the middle.”


Wisconsin’s got several other strategies behind their carving as well. From the south, it looks like they haven’t even started; they left the southern side of the block intact to protect the rest of it from the sun, and the wall has been decimated by the heat. More than 20 percent of its thickness has melted by Sunday night, three days in. After the sun goes down, the team is hollowing out the interior of the structure, so it will freeze faster overnight.


Other teams are relying on nighttime freezing as well. A team partly from the U.S. and partly from Canada carves spires from blocks they removed from the sculpture, and plans to attach them to the top of their sculpture, “The Stand,” which incorporates four interwoven trees. They’ll use melty snow pulled from the middle of the block right when the sun goes down to cement the tops onto the trees, says team member Bob Fulks from the top of a stepladder as he cuts away at the sculpture with an ice chisel.


Fulks’ team is leaving Tahoe after the competition to go straight to Whitehorse, in the Yukon, for another competition, where he anticipates no problems with warm weather.


“It’s a good gig, you can travel all over the world doing it,” he says. “You go around and see the same people.”


Many of the carvers know each other from previous competitions.


“We’ve sculpted with almost everybody here before,” says Team Idaho-Dunham’s Mariah Dunham, who is working on “Sweet House (of Madness)” with her mother, Barb. The creation is a beehive, with the south side as the exterior, and the north side (intentionally placed out of the sun) as a representation of the comb, including hexagonal holds that perforate all the way to the hollow interior.


Though Carve Tahoe is new, snow carving is not. Many of the sculptors have been at it for more than 20 years, traveling around the world and meeting and competing against many of the same people — though each competition demands unique new designs from all the sculptors. Kathryn Keown discovered snow carving while Googling something completely different, and decided she wanted to host an international event.


“First we fell in love with the sculptures, then we fell in love with the sculptors,” says Keown, who founded the competition with Hub Strategy, the ad agency where she works.


Keown contacted several ski areas before Northstar, but the resort was on board right away; its owner, Vail Resorts also owns Breckenridge, where one of the biggest and most prestigious snow carving competitions is held.


But Keown wanted to commit to the design of the competition, not just the sculptures. Applicants submitted their designs last summer, and Keown enlisted Lawrence Noble, chair of the School of Fine Art at the Academy of Art University to help choose modern, complex, realist designs. She wanted no artsy, kitschy snowmen.


Then she chose a design-friendly logo and judges. In addition to Noble, the panel of judges features a sushi chef from Northstar, two interior designers, a photographer from nearby Squaw Valley, and Bryan Hyneck, vice president of design at Speck, which makes cases for mobile devices and was one of the event’s sponsors.


“The level of complexity and sophistication in this type of sculpture is just amazing,” says Hyneck, who has judged industrial and graphic design competitions, but never snow carving. “It’s amazing how organic some of the shapes can be.”


As a judge, Hyneck says he’ll focus on the craft and the execution of the sculptures, and how the sculptors use particular techniques to take advantage of the snow’s properties. But he adds that subject matter, point of view, message, and relationship to a theme are all important points as well.


“Anybody that is really going to push the limits of the capabilities of the media is going to get a lot of my attention,” he says.


For some, like the Germans, that means suspending massive structures made completely of snow. Their sculpture, titled “Four Elements”, features four large spires encircled by a tilted disc. Despite a trickle of melted snow dripping off the bottom edge, one — or even two — of the German carvers frequently stand atop the sculpture, using saws or chisels to shape the towers.


Sunday evening, after the sun has gone down and the temperature dropped, Josh Knaggs, bearded, with a cigarette in his mouth, is sitting in the curve made by the largest bear from the Team Idaho-Bonner’s Ferry sculpture, “Endangered Bears.” Wearing a blue event-issued jacket, he’s brushing out the hollow loop made by mama and papa bear.


Three days later, the judges award Knaggs and his team third prize, with Japan’s modern work, “Heart to Heart” coming in second and Germany’s gravity-defying “Four Elements” taking first. The teams disperse, and after a few more sunny days, Northstar tears down the structures before they get too soft and fall — all except the German piece, which can’t bear its own weight and collapses after judging is complete. But the ephemeral nature of the snow is part of what attracts the competitors.


“It’s for the moment, and it’s a beauty all in itself, creating something that’s gonna be disappearing, you know, it’s okay that it disappears,” says Team Truckee’s Ira Kessler. “We are making it for the moment.”


All Photos: Bryan Thayer/Speck


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Kate Upton says body shut down after Antarctic bikini shoot






(Reuters) – Swimsuit model Kate Upton said on Tuesday her body shut down after she posed in a skimpy bikini in Antarctica for Sports Illustrated magazine.


Upton, wearing only a white bikini bottom and an unzipped white parka, was picked as the cover girl for the annual Sports Illustrated swimsuit issue, unveiled on Monday, for the second consecutive year.






“It was freezing,” Upton, 20, told NBC’s morning TV show “Today” on Tuesday. “I’m from Florida, so it wasn’t easy for me.


“When I came back, I was losing my hearing and eyesight. My body was shutting down because it was working so hard to keep me warm.”


Upton joins celebrity models including Elle Macpherson, Christie Brinkley and Tyra Banks to appear more than once on the swimsuit issue‘s cover.


M.J. Day, a senior editor for Sports Illustrated, told Reuters that Upton braved temperatures as low as 24 degrees Fahrenheit (-4 Celsius) and wind chills as low as -20 Fahrenheit (-29 Celsius).


“We should name a passageway after her down there,” said Day, who accompanied Upton on the frigid shoot. “She braved six days in a bikini while we were head-to-toe in jackets … No one will ever accuse her of being a whiny model, ever.”


This year’s 17 models were part of photo shoots that stretched across all seven continents.


(Reporting by Eric Kelsey in Los Angeles; Editing by Jill Serjeant and Mohammad Zargham)


Celebrity News Headlines – Yahoo! News





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Livestrong Tattoos as Reminder of Personal Connections, Not Tarnished Brand





As Jax Mariash went under the tattoo needle to have “Livestrong” emblazoned on her wrist in bold black letters, she did not think about Lance Armstrong or doping allegations, but rather the 10 people affected by cancer she wanted to commemorate in ink. It was Jan. 22, 2010, exactly a year since the disease had taken the life of her stepfather. After years of wearing yellow Livestrong wristbands, she wanted something permanent.




A lifelong runner, Mariash got the tattoo to mark her 10-10-10 goal to run the Chicago Marathon on Oct. 10, 2010, and fund-raising efforts for Livestrong. Less than three years later, antidoping officials laid out their case against Armstrong — a lengthy account of his practice of doping and bullying. He did not contest the charges and was barred for life from competing in Olympic sports.


“It’s heartbreaking,” Mariash, of Wilson, Wyo., said of the antidoping officials’ report, released in October, and Armstrong’s subsequent confession to Oprah Winfrey. “When I look at the tattoo now, I just think of living strong, and it’s more connected to the cancer fight and optimal health than Lance.”


Mariash is among those dealing with the fallout from Armstrong’s descent. She is not alone in having Livestrong permanently emblazoned on her skin.


Now the tattoos are a complicated, internationally recognized symbol of both an epic crusade against cancer and a cyclist who stood defiant in the face of accusations for years but ultimately admitted to lying.


The Internet abounds with epidermal reminders of the power of the Armstrong and Livestrong brands: the iconic yellow bracelet permanently wrapped around a wrist; block letters stretching along a rib cage; a heart on a foot bearing the word Livestrong; a mural on a back depicting Armstrong with the years of his now-stripped seven Tour de France victories and the phrase “ride with pride.”


While history has provided numerous examples of ill-fated tattoos to commemorate lovers, sports teams, gang membership and bands that break up, the Livestrong image is a complex one, said Michael Atkinson, a sociologist at the University of Toronto who has studied tattoos.


“People often regret the pop culture tattoos, the mass commodified tattoos,” said Atkinson, who has a Guns N’ Roses tattoo as a marker of his younger days. “A lot of people can’t divorce the movement from Lance Armstrong, and the Livestrong movement is a social movement. It’s very real and visceral and embodied in narrative survivorship. But we’re still not at a place where we look at a tattoo on the body and say that it’s a meaningful thing to someone.”


Geoff Livingston, a 40-year-old marketing professional in Washington, D.C., said that since Armstrong’s confession to Winfrey, he has received taunts on Twitter and inquiries at the gym regarding the yellow Livestrong armband tattoo that curls around his right bicep.


“People see it and go, ‘Wow,’ ” he said, “But I’m not going to get rid of it, and I’m not going to stop wearing short sleeves because of it. It’s about my family, not Lance Armstrong.”


Livingston got the tattoo in 2010 to commemorate his brother-in-law, who was told he had cancer and embarked on a fund-raising campaign for the charity. If he could raise $5,000, he agreed to get a tattoo. Within four days, the goal was exceeded, and Livingston went to a tattoo parlor to get his seventh tattoo.


“It’s actually grown in emotional significance for me,” Livingston said of the tattoo. “It brought me closer to my sister. It was a big statement of support.”


For Eddie Bonds, co-owner of Rabbit Bicycle in Hill City, S.D., getting a Livestrong tattoo was also a reflection of the growth of the sport of cycling. His wife, Joey, operates a tattoo parlor in front of their store, and in 2006 she designed a yellow Livestrong band that wraps around his right calf, topped off with a series of small cyclists.


“He kept breaking the Livestrong bands,” Joey Bonds said. “So it made more sense to tattoo it on him.”


“It’s about the cancer, not Lance,” Eddie Bonds said.


That was also the case for Jeremy Nienhouse, a 37-year old in Denver, Colo., who used a Livestrong tattoo to commemorate his own triumph over testicular cancer.


Given the diagnosis in 2004, Nienhouse had three rounds of chemotherapy, which ended on March 15, 2005, the date he had tattooed on his left arm the day after his five-year anniversary of being cancer free in 2010. It reads: “3-15-05” and “LIVESTRONG” on the image of a yellow band.


Nienhouse said he had heard about Livestrong and Armstrong’s own battle with the cancer around the time he learned he had cancer, which alerted him to the fact that even though he was young and healthy, he, too, could have cancer.


“On a personal level,” Nienhouse said, “he sounds like kind of a jerk. But if he hadn’t been in the public eye, I don’t know if I would have been diagnosed when I had been.”


Nienhouse said he had no plans to have the tattoo removed.


As for Mariash, she said she read every page of the antidoping officials’ report. She soon donated her Livestrong shirts, shorts and running gear. She watched Armstrong’s confession to Winfrey and wondered if his apology was an effort to reduce his ban from the sport or a genuine appeal to those who showed their support to him and now wear a visible sign of it.


“People called me ‘Miss Livestrong,’ ” Mariash said. “It was part of my identity.”


She also said she did not plan to have her tattoo removed.


“I wanted to show it’s forever,” she said. “Cancer isn’t something that just goes away from people. I wanted to show this is permanent and keep people remembering the fight.”


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