Mind Faded, Darrell Royal’s Wisdom and Humor Intact Till End





Three days before his death last week at 88, Darrell Royal told his wife, Edith: “We need to go back to Hollis” — in Oklahoma. “Uncle Otis died.”




“Oh, Darrell,” she said, “Uncle Otis didn’t die.”


Royal, a former University of Texas football coach, chuckled and said, “Well, Uncle Otis will be glad to hear that.”


The Royal humor never faded, even as he sank deeper into Alzheimer’s disease. The last three years, I came to understand this as well as anyone. We had known each other for more than 40 years. In the 1970s, Royal was a virile, driven, demanding man with a chip on his shoulder bigger than Bevo, the Longhorns mascot. He rarely raised his voice to players. “But we were scared to death of him,” the former quarterback Bill Bradley said.


Royal won 3 national championships and 167 games before retiring at 52. He was a giant in college football, having stood shoulder to shoulder with the Alabama coach Bear Bryant. Royal’s Longhorns defeated one of Bryant’s greatest teams, with Joe Namath at quarterback, in the 1965 Orange Bowl. Royal went 3-0-1 in games against Bryant.


Royal and I were reunited in the spring of 2010. I barely recognized him. The swagger was gone. His mind had faded. Often he stared aimlessly across the room. I scheduled an interview with him for my book “Courage Beyond the Game: The Freddie Steinmark Story.” Still, I worried that his withering mind could no longer conjure up images of Steinmark, the undersize safety who started 21 straight winning games for the Longhorns in the late 1960s. Steinmark later developed bone cancer that robbed him of his left leg.


When I met with Royal and his wife, I quickly learned that his long-term memory was as clear as a church bell. For two hours, Royal took me back to Steinmark’s recruiting trip to Austin in 1967, through the Big Shootout against Arkansas in 1969, to the moment President Richard M. Nixon handed him the national championship trophy in the cramped locker room in Fayetteville. He recalled the day at M. D. Anderson Hospital in Houston the next week when doctors informed Steinmark that his leg would be amputated if a biopsy revealed cancer. Royal never forgot the determined expression on Steinmark’s face, nor the bravery in his heart.


The next morning, Royal paced the crowded waiting room floor and said: “This just can’t be happening to a good kid like Freddie Steinmark. This just can’t be happening.”


With the love of his coach, Steinmark rose to meet the misfortune. Nineteen days after the amputation, he stood with crutches on the sideline at the Cotton Bowl for the Notre Dame game. After the Longhorns defeated the Fighting Irish, Royal tearfully presented the game ball to Steinmark.


Four decades later, while researching the Steinmark book, I became close to Royal again. As I was leaving his condominium the day of the interview, I said, “Coach, do you still remember me?” He smiled and said, “Now, Jim Dent, how could I ever forget you?” My sense of self-importance lasted about three seconds. Royal chuckled. He pointed across the room to the message board next to the front door that read, “Jim Dent appt. at 10 a.m.”


Edith and his assistant, Colleen Kieke, read parts of my book to him. One day, Royal told me, “It’s really a great book.” But I can’t be certain how much he knew of the story.


Like others, I was troubled to see Royal’s memory loss. He didn’t speak for long stretches. He smiled and posed for photographs. He seemed the happiest around his former players. He would call his longtime friend Tom Campbell, an all-Southwest Conference defensive back from the 1960s, and say, “What are you up to?” That always meant, “Let’s go drink a beer.”


As her husband’s memory wore thin, Edith did not hide him. Instead, she organized his 85th birthday party and invited all of his former players. Quarterback James Street, who engineered the famous 15-14 comeback against Arkansas in 1969, sat by Royal’s side and helped him remember faces and names. The players hugged their coach, then turned away to hide the tears.


In the spring of 2010, I was invited to the annual Mexican lunch for Royal attended by about 75 of his former players. A handful of them were designated to stand up and tell Royal what he meant to them. Royal smiled through each speech as his eyes twinkled. I was mesmerized by a story the former defensive tackle Jerrel Bolton told. He recalled that Royal had supported him after the murder of his wife some 30 year earlier.


“Coach, you told me it was like a big cut on my arm, that the scab would heal, but that the wound would always come back,” Bolton said. “It always did.”


Royal seemed to drink it all in. But everyone knew his mind would soon dim.


The last time I saw him was June 20 at the County Line, a barbecue restaurant next to Bull Creek in Austin. Because Royal hated wheelchairs and walkers, the former Longhorn Mike Campbell, Tom’s twin, and I helped him down the stairs by wrapping our arms around his waist and gripping the back of his belt. I ordered his lunch, fed him his sandwich and cleaned his face with a napkin. He looked at me and said, “Was I a college player in the 1960s?”


“No, Coach,” I said. “But you were a great player for the Oklahoma Sooners in the late 1940s. You quarterbacked Oklahoma to an 11-0 record and the Sooners’ first national championship in 1949.”


He smiled and said, “Well, I’ll be doggone.”


After lunch, Mike Campbell and I carried him up the stairs. We sat him on a bench outside as Tom Campbell fetched the car. In that moment, the lunch crowd began to spill out of the restaurant. About 20 customers recognized Royal. They took his photograph with camera phones. Royal smiled and welcomed the hugs.


“He didn’t remember a thing about it,” Tom Campbell said later. “But it did his heart a whole lot of good.”


Jim Dent is the author of “The Junction Boys” and eight other books.



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Lenders, title insurers find new ways to delay or kill mortgages









Do you know the difference between credit rescoring and credit repair?

Apparently, some lenders don't. As a result, they are refusing to fund mortgages that they otherwise would approve.

At the same time, some title companies are starting to play hardball with borrowers who have recently undertaken home improvement projects. Even if the work is relatively minor, and even if it has been completed, the companies are refusing to issue title insurance policies, effectively stopping refinancings in their tracks.








For as long as Richard Temme of Woodland Hills Mortgage in Woodland Hills can remember, title companies would write policies on properties with recent or ongoing construction as long as the borrower agreed to indemnify the company against mechanic's liens. But lately, the mortgage broker reports, title firms have become much more cautious.

The typical indemnification holds the title company harmless from any liabilities, losses, damages, expenses or charges the company may incur because of mechanic's lien disputes between the borrower and the contractor. Borrowers also usually agree to defend any action based on a lien and do all the things necessary or appropriate to clear the lien from the title.

But in an increasing number of cases, that is not enough, Temme says. "We've seen title companies declining to issue on many more loans" than in the past, he says. As a result, he adds, "even minor home improvement projects, recent or unfinished, can hold up or kill a loan."

This may be a California phenomenon because the laws are different in other states. But in the Golden State, contractors, subcontractors and suppliers can file liens retroactively to the day they started their work or furnished materials.

If that date of the lien is before the day the mortgage is closed, the lien, not the mortgage, is in the first position. As a result, some title agencies are not writing policies unless the borrower can put a much higher level of net worth behind the indemnification, Temme says. And some are not accepting any indemnification at all.

Meanwhile, otherwise good loans are being rejected by lenders that confuse rescoring with credit repair. They are not the same.

Credit repair is often a scam. In fact, attorneys at the Federal Trade Commission say they've never seen a legitimate operation that offers to erase bad credit, create a new credit identity on your behalf or remove bankruptcies, judgments, liens or bad loans from your record. If the bad information in your file is correct, there is nothing that can be done to remove it, at least not legally.

No wonder lenders want nothing to do with applicants who have paid someone to clear accurate data from their records. If you have bad credit, after all, you are probably a bad risk.

Rescoring, on the other hand, corrects errors in your file, which may result in an increase to your all-important credit score.

Whereas credit repair firms are not legitimate, the 70-odd companies that provide rescoring are credit reporting agencies that work with the national credit repositories — Equifax, TransUnion and Experian. As resellers of credit information contained within the three repositories, they not only provide the majority of all credit reports but also have a legal obligation to you and your creditors.

Moreover, according to Terry Clemans of the National Credit Reporting Assn., rescoring is a program developed in conjunction with and processed through the big three credit repositories. Indeed, each repository maintains a special rescoring department that deals directly with resellers.

When a credit file is rescored, it is checked twice for accuracy, first by the reseller and again by the national repository. It is, Clemans says, "one of the safest transactions for any creditor because everything is double-verified."

If a change is warranted — say, a trade line was reported incorrectly, or the damaging information is not yours but someone's with a similar name — the miscue is corrected at the repository level and a new credit report and credit score are issued.

If you believe data in your credit file are incorrect, you can have the data removed on your own if you have the time and patience. It can take anywhere from 30 to 45 days. But if you are in a hurry, you can pay a reseller to do it for you, usually within 24 to 72 hours, Clemans says. The cost ranges from $50 to a few hundred bucks, depending on how complex the problem is.

Rescoring has been a popular service for seven or eight years, Clemans says, and he thinks some lenders are so worried about bad risks that they are confusing credit rescoring with credit repair. He calls it a "knee-jerk reaction after all the pain" resulting from the mortgage meltdown.

"I have heard from lenders … claiming they are trying to protect themselves from consumers 'gaming' the system for better rates," he says.

But as Clemans sees it, lenders that object to rescoring are basically telling a consumer seeking a quick resolution of incorrect data that they can't have it corrected for that particular loan application. As a result, he wonders whether it is lenders who are gaming the system in an effort to force borrowers into higher interest rates.

Whether or not that's true, there's little that would-be borrowers can do besides take their business elsewhere — or sue the lender under the Fair Credit Reporting Act.

As far as mechanic's liens are concerned, mortgage broker Temme is telling his refinancing customers to advise the title company in writing of any construction or rehab projects on the property. Otherwise, he says, if a lien is filed, the title company may sue for the amount it has to pay the lender to pay off the lien.

And tell the title firm early. Even if the company will accept an indemnification, the process can take weeks, he says, noting that loans can be lost during that period.

lsichelman@aol.com

Distributed by Universal Uclick for United Feature Syndicate.





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Bargains disappearing for distressed properties, Zillow says









Bargains on bank-owned homes are quickly vanishing in the country's most competitive markets.

Since the start of the mortgage meltdown, repossessed homes have been considered the discount aisles of real estate. Now competition among investors and first-time home buyers for affordable digs is making those distressed properties less affordable, a new analysis by Zillow.com shows.

"They will get somewhat of a deal, depending on the market," Zillow chief economist Stan Humphries said. "But, just generally, you are going to get less of a deal today than you would have gotten in late 2009 or early 2010."





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The shrinking discounts underscore how real estate has recovered this year as low interest rates and high affordability have sucked buyers back into the market. The number of for-sale homes has also fallen to levels not seen since the housing boom as foreclosures ease and homeowners — many who still owe more on their properties than they are worth — hold off on listing their houses for sale.

Zillow looked at sale prices of bank-owned homes and used a model to determine what that property would have brought if it had not been sold by a bank. In Las Vegas and Phoenix, for instance, a foreclosed home in September sold for the same price as a regular property.

Discounts were also marginal on bank-owned homes in the Inland Empire and the Sacramento region, 1.8% and 0.7%, respectively, according to the analysis. Both of these areas have grown increasingly competitive after being savaged by the housing bust. In the Los Angeles area, the foreclosure discount was 4.2% in September, Zillow said.

Certain Midwest and East Coast cities appeared to have the biggest foreclosure discounts. The Pittsburgh area had a discount of 27.4%, with Cleveland at 25.8%, Cincinnati 20.2% and Baltimore 20%.

Analysts figured the national foreclosure discount at just 7.7%. That's a big difference from the dog days of the housing bust, when people snapping up foreclosures could expect a discount of 23.7%, Zillow said.

Home shoppers looking for dime-store values now face a frustrating hunt. Gary K. Kruger, a real estate agent in Hemet, has seen buyers consistently bid on homes above the asking price and still struggle to make deals. One of his clients, a first-time buyer looking for a home in Vista, has bid on three properties — one a regular sale, one a bank-owned home and one a short sale — and lost each time.

Properties that are good for rentals or first-time buyers, along with properties priced in the lower-end of the move-up market, are "very, very hot," Kruger said.

"I have not had a successful person purchase a foreclosed home that was not an investor for months," he said. "Things are selling so quickly."

The story is similar in the Las Vegas region, said Keith Lynam, a real estate agent and chairman of the Nevada Assn. of Realtors' legislative committee. The number of foreclosed homes on the market in the Las Vegas area has dwindled to less than 300, compared with about 7,000 at its peak, Lynam said.

One of his clients, a potential buyer with a sizable down payment, has made half a dozen unsuccessful offers in the last six months.

"There is just zero inventory," Lynam said.

Experts are also revisiting the notion that foreclosed homes really drag down property values. A working paper by the Federal Reserve Bank of Atlanta published in August found that although the homes of troubled borrowers did drag down values of surrounding homes, the effects were small.

That paper also found that the worst declines occurred before the home was repossessed, indicating that the declines stemmed from people abandoning their homes or letting them fall into disrepair.

Sean O'Toole, a real estate investor and founder of the website ForeclosureRadar.com, agreed with the Zillow analysis. Previous studies failed to take into account the nature of most foreclosures and their geography, he said. Typically, and particularly during the last five years, foreclosures have been concentrated in more traditionally affordable areas. So comparing the median home price of all foreclosed homes during the bust with the median home price of non-foreclosed homes results in an apple-to-oranges comparison, he said.

"The results that Zillow got make perfect sense to me, because there is actually more demand for REO and foreclosures, because people believe they are a deal," O'Toole said, using shorthand for the term "real estate owned," which is how banks refer to the properties on their books. "There is more demand for those."

Michael Novak-Smith, a real estate agent in the Riverside area who specializes in listing foreclosures for banks, said the market has reached a frenzy few would have expected so soon after the bust. One bank-owned home he listed about two weeks ago in Fontana for $145,000 attracted 157 offers. The seller took an all-cash offer.

"That is really telling, because a lot of these buyers think they'll just go out and get a repo," Novak-Smith said. "But buyers need to come in strong with their best offers, because you will get beat right out. An entry-level house with 157 offers? That's just mind-boggling to me."

alejandro.lazo@latimes.com





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China derides U.S. “Cold War mentality” towards telecoms firm Huawei
















BEIJING (Reuters) – The United States is exhibiting a “Cold War mentality” with its fears that Chinese telecommunications equipment manufacturer Huawei poses a security risk because of its ties to the Communist Party, China‘s commerce minister said on Saturday.


The U.S. House of Representatives’ Intelligence Committee warned last month that Beijing could use equipment made by Huawei, the world’s second-largest maker of routers and other telecom gear, as well as rival Chinese manufacturer ZTE, the fifth largest, for spying.













The report cited the presence of a Communist Party cell in the companies’ management structure as part of the reason for concern.


The state role in business prompted a U.S. congressional advisory panel to complain this week that Chinese investment in the United States had created a “potential Trojan horse”.


“Can you imagine if China started asking U.S. companies coming to China what their relationship was with the Democratic or Republican parties? It would be a mess,” Commerce Minister Chen Deming, himself a Communist Party member, told reporters on the sidelines of the 18th Party Congress, which will usher in a new generation of leaders.


“If you see me as a Trojan horse, how should I view you? By this logic, if the Americans turned it around, they would see that it’s not in their interest to think this way.”


All Chinese state-owned enterprises and a growing number of private Chinese firms have a Communist Party secretary at the top of their management structure. In most cases, the top management are themselves party members.


Neither Huawei nor ZTE is state-owned. Huawei is owned by its employees and ZTE by different institutions.


Suspicions of Huawei are partly tied to its founder, Ren Zhengfei, a former People’s Liberation Army officer. Huawei denies any links with the Chinese military and says it is a purely commercial enterprise.


The Commerce Ministry China last month dismissed the U.S. suspicions as groundless.


“This report by the relevant committee of the U.S. Congress, based on subjective suspicions, no solid foundation and on the grounds of national security, has made groundless accusations against China,” spokesman Shen Danyang said.


(Reporting by Lucy Hornby; Editing by Nick Macfie)


Tech News Headlines – Yahoo! News



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Madonna fan guilty in NYC resisting arrest trial

NEW YORK (AP) — A former firefighter with a crush on Madonna has been convicted of resisting arrest outside her former New York City apartment building as he spray-painted poster boards with love notes.

A jury delivered its verdict Friday in Robert Linhart's trial. He could face up to a year in jail.

Defense lawyer Lawrence LaBrew tells the New York Post (http://bit.ly/ZgI4jl) that Linhart will appeal.

Linhart was arrested in September 2010. Police say he parked his SUV outside the singer's Manhattan apartment, laid out a tarp and wrote out such messages as "Madonna, I need you."

Jurors told the Post they felt it was fine for Linhart to express himself to the Material Girl. But they said they believed police testimony that he resisted arrest by flailing his arms.

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FEMA Chief Tours Damaged NYU Langone Medical Center





The federal government’s emergency management chief trudged through darkened subterranean hallways covered with silt and muddy water Friday, as he toured one of New York City’s top academic medical centers in the aftermath of Hurricane Sandy. The basement of the complex, NYU Langone Medical Center in Manhattan, smelled like the hold of a ship — a mixture of diesel oil and water.




“You’re going to deal with the FUD — fear, uncertainty and doubt,” W. Craig Fugate, administrator of the Federal Emergency Management Agency, told NYU Langone officials afterward, as they retreated to a conference room to catalog the losses. “Don’t look at this. Think about what’s next.”


NYU Langone, with its combination of clinical, research and academic facilities, may have been the New York City hospital that was most devastated by Hurricane Sandy. What’s next is a spectacularly expensive cleanup.


Dr. Robert I. Grossman, dean and chief executive of NYU Langone, looking pale and weary — as if he were, indeed, struggling to hold back the FUD — estimated that the storm could cost the hospital $700 million to $1 billion. His estimate included cleanup, rebuilding, lost revenue, interrupted research projects and the cost of paying employees not to work.


As the hurricane raged, the East River filled the basement of the medical center, at 32nd Street and First Avenue, knocked out emergency power and necessitated the evacuation of more than 300 patients over 13 hours in raging wind, rain and darkness. It disrupted medical school classes and shut down high-level research projects operating with federal grants.


Mr. Fugate arrived to inspect the damage and help plot the institution’s recovery, the advance guard of what aides said would be a hospital task force. He was brought in by Senator Charles E. Schumer of New York, who kept saying that there was nothing like seeing the damage firsthand to understand how profound it really was.


“What was that movie — ‘Contagion?’ ” Mr. Schumer said, marveling at the hellish scene.


NYU Langone’s patients, a major source of revenue, have been scattered to other hospitals, creating a risk that they may never return. Dr. Grossman said he was counting on those patients’ loyalty.


John Sexton, president of New York University, which includes NYU Langone, and who also met with Mr. Fugate, raised fears that researchers might be lured away to other institutions because their grants were ticking away on deadline or because they must publish or perish. Outside the hospital, tanks of liquid nitrogen testified to the efforts to keep research materials from spoiling.


In inky blackness, the group stood at the brink of the animal section of the Smilow Research Center, where rodents for experiments had been kept, but they did not go inside. On Nov. 3, a memo sent to NYU Langone researchers said the animal section, or vivarium, was “completely unrecoverable.”


Dr. Grossman said that scientists had managed to save some rodents by raising their cages to higher ground.


A modernized lecture hall with raked seats used by medical students had been filled “like a bathtub,” he said, though it was dry on Friday. The library, he said, “is basically gone.”


Four magnetic resonance scanners, a linear accelerator and gamma knife surgery equipment, kept in the basement, were now worthless. Dr. Grossman said that in the future, he wanted to move such equipment, which is very heavy, to higher floors.


Electronic medical records were protected by a server in New Jersey, he said.


Richard Cohen, vice president for facilities operations, took the group past piles of sandbags and a welded steel door that had been blown out by the force of the flood. “That door was put in around 1959 to 1960, when doors were really doors,” Mr. Cohen said. “And this thing is completely torsionally twisted. I’ve never seen anything like that.”


Walking to the back of the hospital, Mr. Cohen used a loading dock as a measuring stick to estimate that the surge had risen to 14 ½ feet. “We were prepared for 12 feet, no problem,” Dr. Grossman said.


Dr. Grossman said it would take a couple of more weeks of assessing the damage to determine when the hospital could reopen. Outpatient business is already returning. Research and some inpatient services will come next.


Mr. Fugate said his agency would help cover the uninsured losses, and urged NYU Langone officials to move ahead.


At this point, Dr. Grossman said, he could only theorize as to why the generators had shut down. All but one generator is on a high floor, but the fuel tanks are in the basement. The flood, he said, was registered by the liquid sensors on the tanks, which then did what they were supposed to do in the event, for instance, of an oil leak. They shut down the fuel to the generators.


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Hot Property: Traditional style resonates with singer Adam Levine









Although a traditional-style estate may not seem to blend with Adam Levine's pop rock persona, the Maroon 5 frontman and coach on "The Voice" has bought one in the Beverly Crest area for $4.83 million.

The single-level ranch house, white with long black shutters and built in 1940, is set on a secluded 3.6 acres at the end of a long brick driveway in a gated community. The main home and guesthouse have a combined six bedrooms, seven bathrooms and 6,539 square feet of living space. There is a swimming pool and a tennis court.

Levine, 33, is the lead singer and guitarist for the Grammy-winning band. He has worked with Kanye West, Natasha Bedingfield and 50 Cent, among others. The singer-songwriter has been a coach on "The Voice" since 2011.





Josh Flagg of Rodeo Realty was the listing agent. Julie Jones of Sotheby's International Realty's Sunset office represented Levine.

This is it: MJ lease house sells

The Holmby Hills mansion where Michael Jackson lived at the time of his death in 2009 has sold for $18.1 million. The estate, recently priced at $23.9 million, had been for sale for as much as $38.5 million before the pop star took up residency.

Although purchased in the name of a trust, the buyer has been reported by several media outlets to be Steven Mayer, a senior managing director for Cerberus Capital Management. The sellers are Roxanne Guez and her husband, Hubert, chief executive of clothing manufacturer Ed Hardy.

The French chateau, designed by Richard Landry and built in 2002, features a theater, a wine cellar with a tasting room, an elevator and a gym with a spa. There is a guesthouse with stained-glass doors near the swimming pool for a total of seven bedrooms, 13 bathrooms and nearly 17,200 square feet of living space.

Jackson was leasing the 1.2-acre estate for $100,000 a month when he died after receiving the anesthetic propofol for insomnia. His doctor, Conrad Murray, was found guilty of involuntary manslaughter last year and sentenced to four years in prison.

The 50-year-old was preparing for his "This Is It" concert tour during his time living at the mansion.

Mauricio Umansky of the Agency in Beverly Hills handled both sides of the transaction.

Former Disney estate comes to a crossing

Investor and pro soccer team owner Gabriel Brener has put his estate in Holmby Hills up for sale at $90 million.

The 35,000-square-foot manse, built in 2001, sits on a 3.6-acre site that once contained motion picture giant Walt Disney's personal residence.

The three-level mansion features a two-story oval foyer, statuary, a wine cellar, a movie room, three bars, a library, a gym, eight bedrooms, 17 bathrooms and two safe rooms. Staff quarters are accessible from a service entrance at the garage. There is a swimming pool with a pool house, a tennis court and a putting green.

Brener, who owns the Houston Dynamos, heads Azteca Acquisition Corp.

In the early 1950s, Disney tinkered in a barn on the property, building a 1/8 scale train he named the Carolwood Pacific Railroad and giving the neighbors rides, according to Los Angeles Times archives. The barn was later dismantled and sits in Griffith Park.

Jay Harris and Mauricio Umansky of the Agency in Beverly Hills are the listing agents.

Compound comes with muse quarters

The former live-work compound of artist Sam Francis is on the market in Santa Monica at $18.75 million.





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L.A. housing authority rife with fiscal mismanagement, audit finds









Los Angeles' housing authority, which runs on about $1 billion a year in taxpayer funds, is plagued by bad financial management that causes "questionable practices and poor decisions," according to an audit released Thursday by City Controller Wendy Greuel.

Greuel launched the audit last year amid an outcry over hefty taxpayer-funded restaurant tabs for agency officials and a $1-million-plus payout for the authority's fired executive director. The agency is responsible for sheltering about 75,000 of the city's neediest households.

A previous audit found instances of questionable spending by some agency officials, including double and triple billing for some travel and meal expenses. This audit, which looked at the agency's fiscal operations, did not uncover wrongdoing. But it did find that despite the authority's hefty budget and history of scandal going back decades, agency officials have done little to make sure money is properly managed.





Financial oversight was so lax, the audit found, that the agency's board of commissioners did not receive any financial statements or budget status reports during much of 2011 or the early part of 2012, except for one oral report last spring and one annual financial report that was presented nine months after the year had ended. A proposed budget presented to the board for 2012 was not balanced and contained contradictory statements.

"All of this suggests an agency that is out of control," said Greuel, a candidate for mayor. "The city cannot afford to continue spending its housing dollars irresponsibly."

One tenant advocate, Larry Gross, executive director of the L.A. Coalition for Economic Survival, said the lack of financial information given to the board and public was baffling.

"Whoever was on that board was clearly asleep at the wheel," he said. Many of the board members have been replaced in recent years.

Housing authority officials said they agreed with many of the audit's conclusions and will use the findings to guide reforms. Under recently hired Chief Executive Doug Guthrie, officials said they have already instituted a number of new practices, including financial training for all board members, stepped up financial reporting to the board and public, and the arrival of a new chief financial officer with expanded powers.

"We asked for this audit, we paid for the audit and we worked closely with the city controller's office" as the audit was underway, Guthrie said. "There's a lot of good stuff in the audit that helps us."

Mayor Antonio Villaraigosa released a statement expressing support for Guthrie, who was hired last spring after the previous executive director, Rudolf Montiel, was fired and then paid $1.2 million to settle allegations that he was let go in retaliation for reporting improper spending by board members. Montiel had earlier drawn the ire of city leaders when his agency tried to evict nine tenants who protested the agency's policies outside his home.

"The housing authority has worked diligently to win back the trust of the people," Villaraigosa said.

But some City Council members expressed anger at the latest audit findings.

"There's a lot of problems over there, and obviously, the problems haven't gone away," said Councilman Dennis Zine, a candidate for controller. "Maybe it's time for the grand jury to investigate."

Zine also said he would like the City Council to have more authority over the agency. Under a hybrid governing structure, the mayor appoints the authority's seven board members, but the council lacks the ability to review spending decisions, a power it has over many other city departments.

The audit also found that the agency's list of assets contained at least $100 million worth of property that had been disposed of or no longer had much value, such as refrigerators and stoves that had been purchased in the 1970s. No inventory of its fixed assets had been performed in at least seven years.

In addition, the agency did not always follow its own rules when it came to awarding contracts to vendors, in one case allowing someone to sit on a bid selection panel after he had declared a conflict of interest.

jessica.garrison@latimes.com





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Exclusive: SEC left computers vulnerable to cyber attacks – sources
















WASHINGTON (Reuters) – Staffers at the U.S. Securities and Exchange Commission failed to encrypt some of their computers containing highly sensitive information from stock exchanges, leaving the data vulnerable to cyber attacks, according to people familiar with the matter.


While the computers were unprotected, there was no evidence that hacking or spying on the SEC‘s computers took place, these people said.













The computers and other electronic devices in question belonged to a handful of employees in an office within the SEC’s Trading and Markets Division. That office is responsible for making sure exchanges follow certain guidelines to protect the markets from potential cyber threats and systems problems, one of those people said.


Some of the staffers even brought the unprotected devices to a Black Hat convention, a conference where computer hacking experts gather to discuss the latest trends. It is not clear why the staffers brought the devices to the event.


The security lapses in the Trading and Markets Division are laid out in a yet-to-be-released report that by the SEC’s Interim Inspector General Jon Rymer.


NO DATA BREACHED


The revelation comes as the SEC is encouraging companies to get more serious about cyber attacks. Last year, the agency issued guidance that public companies should follow in determining when to report breaches to investors.


Cyber security has become an even more pressing issue after high-profile companies from Lockheed Martin Corp to Bank of America Corp have fallen victim to hacking in recent years.


Nasdaq OMX Group, which runs the No. 2 U.S. equities exchange, in 2010 suffered a cyber attack on its collaboration software for corporate boards, but its trading systems were not breached.


One of the people familiar with the SEC’s security lapse said the agency was forced to spend at least $ 200,000 and hire a third-party firm to conduct a thorough analysis to make sure none of the data was compromised.


The watchdog’s report has already been circulated to the SEC’s five commissioners, as well as to key lawmakers on Capitol Hill, and is expected to be made public soon.


SEC spokesman John Nester declined to comment on the report’s findings.


SEC NOTIFIED EXCHANGES


Rich Adamonis, a spokesman for the New York Stock Exchange, said the exchange operator is “disappointed” with the SEC’s lapse.


“From the moment we were informed, we have been actively seeking clarity from the SEC to understand the full extent of the use of improperly secured devices and the information involved, as well as the actions taken by the SEC to ensure that there is proper remediation and a complete audit trail for the information,” he said.


A spokesman for Nasdaq OMX declined to comment on the security lapse at the SEC.


Since the internal investigation was concluded, the SEC initiated disciplinary actions against the people involved, one of the people familiar with the matter said.


The SEC also notified all of the exchanges about the incident.


The SEC’s Trading and Markets Division, which has several hundred staffers, is primarily responsible for overseeing the U.S. equity markets, ensuring compliance with rules and writing regulations for exchanges and brokerages.


Among the division’s tasks is to ensure exchanges are following a series of voluntary guidelines known as “Automation Review Policies,” or ARPs. These policies call for exchanges to establish programs concerning computer audits, security and capacity. They are, in essence, a road map of the capital markets’ infrastructure.


Although they are only voluntary guidelines, exchanges take them seriously.


Under the ARP, exchanges must provide highly secure information to the SEC such as architectural maps, systems recovery and business continuity planning details in the event of a disaster or other major event.


That is the same kind of data used by exchanges last week after Hurricane Sandy forced U.S. equities markets to shut down for two days.


Prior to re-opening, all of the U.S. stock market operators took part in coordinated testing for trading on NYSE’s backup system.


SEC Chairman Mary Schapiro recently said the SEC is working to convert the voluntary ARP guidelines into enforceable rules after a software error at Knight Capital Group nearly bankrupt the brokerage and led to a $ 440 million trading loss.


(Reporting by Sarah N. Lynch; Editing by Karey Wutkowski and Lisa Shumaker)


Internet News Headlines – Yahoo! News



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Roger Waters plays with band of wounded veterans

NEW YORK (AP) — Roger Waters honored wounded veterans in New York by performing with them at the annual Stand Up for Heroes benefit, Thursday night.

The founding member of Pink Floyd took to the stage of the Beacon Theater with 14 wounded soldiers he met recently at the Walter Reed Army Medical Center in Washington, D.C. He rehearsed with them at the hospital, and for the past few days in New York.

The event benefited the Bob Woodruff Foundation, which helps returning veterans and their families, and featured Waters, Bruce Springsteen, Ricky Gervais, Robin Williams, and others.

Before the show, Waters chatted with veterans and called the experience "fantastic." He says he's "looking forward to pulling for the rest of these guys with their comrades" during the healing process.

He says that he shares "enormous empathy with the men."

"I lost my grandfather in 1916 and my father in 1944, so I've been around the sense of loss and what loss from war can do to people," Waters said.

"I never talk about the politics because it's not relevant to me. I'm not interested in it," he said. "What I am interested in is the burdens these guys bear and would never question motive or even dream of talking about any of the politics."

He added: "If any of us have a responsibility in our lives it is to tear down the walls of indifference and miscommunication between ourselves and our fellow men."

Waters said he rehearsed with many of the soldiers at the hospital in between their medical procedures. Before the show, he walked the red carpet with Staff Sgt. Robert Henline, who was not in the band. In 2007, Henline was the sole survivor of a roadside bombing north of Baghdad. As a result, he suffered burns over 38 percent of his body and his head was burned to the skull.

Henline, who fought for his life after the attack, has endured more than 40 surgeries.

Still, he maintains a sense of humor. On the open red carpet on a chilly night, Waters pushed closer to Henline for warmth.

"Get next to the burn guy. I'm good. I'm heated up," Henline joked.

No surprise. The retired soldier says he's been doing stand-up comedy for the past year and a half.

Waters performed three songs with the veterans, including the Pink Floyd classic, "Wish You Were Here."

Waters said he didn't think there would be a reunion with his former band.

"I think David (Gilmour) is retired by and large. I shouldn't speak for him. But that's the impression I get."

Waters then added: "Hey whatever. All good things come to an end."

While his mammoth tour of "The Wall" ended this summer, Waters promised the theatrical version would hit the Broadway stage in the near future.

The Bob Woodruff Foundation has supported more than 1 million veterans, service members, and their families since it began in 2008.

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John Carucci covers entertainment for The Associated Press. Follow him at —http://www.twitter.com/jcarucci_ap

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