Prosciutto and Mushroom Pizza from one of Florenceís best pizzerias. Pure heaven for around ten bucks.
Pizzeria I Tarocchi, Florence, Italy
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Author Archives: Tom
While you’re at it, Judge Rakoff
The legal and business communities are still buzzing over U.S. District Judge Jed Rakoff’s scathing refusal earlier in the week to approve the proposed $33 million "settlement" (i.e., sweep under the rug) between the SEC and Bank of America over that the Bank’s failure (at least transparently) to disclose to its shareholders the billions in bonuses that the Bank agreed that an insolvent Merrill Lynch was allowed to pay to its employees.
The 12-page decision is certainly worth a read. Judge Rakoff tears into into the SEC for contradicting its own guidelines in penalizing BofA shareholders rather than the executives and lawyers who supposedly approved the lack of disclosure. The settlement "does not comport with the most elementary notions of justice and morality, in that it proposes that the shareholders who were the victims of the Bank’s alleged misconduct now pay the penalty for that misconduct." The Judge didn’t buy the SEC’s contention that this punishment will result in better management, characterizing it as "absurd." Sort of like the notion that the SEC can really police this type of thing in the first place.
Judge Rakoff goes on in his opinion to raise at least another half-dozen or so good questions about the proposed settlement. But there’s a couple more that I wish he’d asked.
A few years ago, former Enron chairman Ken Lay was prosecuted to death for promoting Enron to its shareholders even though he had a reasonable basis for believing that what he was saying about his company was true.
In contrast, the BofA executives and lawyers could not even offer the defense in a criminal fraud trial that the bad things they intentionally failed to tell BofA shareholders about the Merrill Lynch deal were immaterial.
So, isn’t it about time that somebody in the federal government acknowledge that it was a mistake to prosecute Ken Lay to death? And isn’t it about time that the government do something about this barbaric injustice?
Does anyone take John McClain seriously?
Please indulge me one last Texans-related post for the week.
John McClain, the lead Chronicle sportswriter covering the Texans, condemned this past Sunday’s Texans’ loss as the worst in the team’s history.
Now that normally wouldn’t be all that unusual. I mean, the Texans really did stink up Reliant Stadium.
However, McClain said the same thing about the Texans’ loss to the Ravens just 10.5 months ago.
But even that wouldn’t be so absurd except that, in between those two "worst" games, McClain generally dished up this type of blather about how good the Texans are poised to be this season.
I mean really, with far superior blogosphere sources such as Stepanie Stradley, Lance Zerlein and Alan Burge around to provide coverage of the Texans, does anyone take McClain seriously anymore?
2009 Weekly local football review
(AP Photo/Dave J. Phillip; previous weekly reviews for this season are here)
Well, as one salty high school football coach used to put it, "That went over about as well as a fart in church!"
In a home opener that was arguably as bad as the one in the their disastrous 2-14 Year Four season, the Texans had their collective ass kicked by a Jets team that was led by a rookie coach and QB. The Jets defensive front manhandled the Texans’ offensive line, which is supposed to be one of the team’s strengths.
Key tip of the day: Don’t even think about listening to sports talk radio shows in Houston this coming week.
The reality of early-season games such as this is that the Texans (0-1) probably aren’t as bad as they looked and the Jets (1-0) are probably not as good as the Texans helped make them look.
However, what should concern Texans owner Bob McNair is that Head Coach Gary Kubiak and his supposedly experienced and top-notch staff were clearly out-coached in preparation for the game and in making adjustments during the game. To his credit, Kubiak admitted as much during his post-game interview. But coming in his fourth season as a head coach, these types of debacles have to be wearing thin on even the extraordinarily patient McNair. And let’s face it, despite their reasonably respectable 8-8 record last season, the Texans were only 3-7 going into their 11th game on November 24th.
The Texans face the Tennessee Titans (0-1) next Sunday in Nashville. Anyone who watched any of the Texans-Jets game already know the Titans’ defensive game plan.
Houston Cougars 45 Oklahoma State 35
As I noted several times last season, the Houston Cougars (2-0) under second-year coach Kevin Sumlin are an endearing and fascinating team to follow. Thus, although the Coogs were a 16-point underdog at fifth-ranked Oklahoma State (1-1) on Saturday, anyone who has followed the Cougars under Coach Sumlin was not shocked (pleasantly surprised, yes) that Houston pulled off the upset of the Cowboys.
Behind third-year QB Case Keenum, Houston sports one of the best offenses in the country. Oklahoma State eventually figured out how to slow it down a bit in the 2nd half, but they were never able to stop it. Keenum throws the screen pass better than any college QB that I’ve seen in years — his 32-yard TD pass to WR/Sprinter Tyron Carrier on a middle-screen play just before the half against OSU will be used by offensive coaches around the country for the next several years as the quintessential example of how to execute that particular play.
The trick for the Cougars this season will be to figure out how their young defense — which lacks depth from several seasons of under-recruiting on the defensive side by previous head coach, Art Briles — can maintain the type of gritty effort that the unit displayed against OSU’s potent offense. UH defensive coordinator John Skladany is a master at getting the most out of undermanned defensive units (he was the DC for my friend Dan McCarney during Iowa State’s bowl run earlier this decade), but he will have his work cut out for him in the coming weeks. If the Coogs defensive unit can consistently play at the level it did against OSU, and the team can avoid injuries to key personnel, the Cougars are likely to be a top-20 team.
The Cougars take next Saturday off before taking on high-powered Texas Tech (2-0) at Robertson Stadium late on Saturday, September 26th. Now that is shaping up to be one wild affair.
Earlier in Texas Head Coach Mack Brown’s tenure at UT, this is a game that the Horns (2-0) could have lost or at least sweated until the very end. An inexplicably bad offensive game plan, poor special teams play, a below-average 1st half performance by star QB Colt McCoy, only 30,000 or so fans watching the game in a far-off locale — those were all elements that could have led to an upset of the Longhorns under Brown five or six seasons ago.
But things are different for the Texas program now. Not only does Texas have as much NFL-caliber talent as any program in the country, the Longhorns of this part of Coach Brown’s era at Texas play rock-ribbed, tough defense. Accordingly, against the likes of Wyoming, Texas now can under-perform for a half on offense and still win the game going away.
Now, the Horns won’t want to risk that approach against Oklahoma, or even Texas Tech (2-0) next Saturday in an unusual early-season Big 12 Conference game. But my sense is that they won’t. If the Horns can find a consistent running back out of their four or five good prospects at that position, then this team will be very difficult to beat.
Through two blowout losses, this season is shaping up to be a very difficult one for Rice (0-2), particularly after last season’s success.
Undecided at the QB position and working in a new offensive coordinator, even an Owl defense that held the potent Tech offense to 14 points in the 1st half wilted during the 2nd half as the Owl offense continued to struggle.
And things don’t get any easier for Rice over the next month. They face an angry Oklahoma State (1-1) team at Stillwater next Saturday, then they have consecutive home games against Vanderbilt (who gave LSU a good game last Saturday night in Baton Rouge), Tulsa (2-0) and Navy (1-1).
This could be a very long season for the Owls.
The Texas Aggies (1-0) were off on Saturday after last week’s blow-out win over a poor New Mexico team (0-2, scorched by Tulsa 44-10 on Saturday). The Aggies take on Utah State next Saturday at College Station.
Ben Hogan’s Mystique
Townes, Pancho & Lefty
The late Townes Van Zandt tells how he met Pancho & Lefty in Brenham.
And almost 10 years later, he delivers arguably his best television performance of his legendary song:
Houston Texans, Year Eight
Year Eight of the Houston Texans begins this Sunday with a home game against the Jets, so it’s time for my sixth annual preview of the team (previous annual previews are here).
Largely ignored amidst the inexplicable interest over the absurdly over-long NFL pre-season training camps is the harsh reality that the Texans have the worst record of any expansion franchise in the modern National Football League history.
As is usually the case in football, there are many reasons for the Texans’ poor record, not all of which are the fault of the Texans’ management and players. Nevertheless, Texans’ management bears a substantial responsibility for the relative futility of the team over its first seven years, so it’s helpful to review the team’s journey in evaluating whether the Texans are finally ready to make the leap to being in contention for the NFL playoffs.
The Texans were the toast of Houston for their first three seasons during which Houston football fans were simply happy to have an NFL team again and didn’t really have much in the way of expectations. Texans management and the local mainstream media trumpeted the party line that Texans were building a playoff contender "the right way" — that is through prudent drafting and development of young players while eschewing the temptation of short-term rewards provided by over-priced veterans who were on the downside of their careers. The progressively better won-loss records in the first three seasons (4-12, 5-11, and 7-9) — plus the drafting of young stars such as WR Andre Johnson, RB Dominack Davis (or whatever he ended up changing his name to) and CB Dunta Robinson — seemed to indicate that the Texans’ plan was working.
Unfortunately, those progressively better won-loss records distracted Texans management from recognizing the fact that the Texans’ overall personnel was not close to contending for an NFL playoff spot. The best evidence of that was that the Texans entered each of their first four seasons with the same two core problems — the Texans’ offensive line could not protect the quarterback and the Texans’ defensive front could not pressure the opposing team’s QB.
Former Texans GM Charlie Casserly never could solve the offensive and defensive line problems (remember LT Tony Boselli, the flirtation with LT Orlando Pace, and the thoroughly unimpressive DT Anthony Weaver?). The 2005 draft was an absolute disaster (DT Travis Johnson as the 15th pick in the first round?) and initial Texans head coach Dom Capers’ changes to the offensive and defensive systems between Years Three and Four proved equally disastrous. After the Texans limped home with a desultory 2-14 record in Year Four, Texans owner Bob McNair mercifully dispensed with Casserly and Capers.
Subsequently, McNair decided to blow up his original Texans management model and surprisingly hired Gary Kubiak, who promptly made (acquiesced to?) a whopper of a blunder in his first major personnel decision as Texans’ coach — retaining QB David Carr even though it was reasonably clear as early as before Year Three that Carr was unlikely to develop into an above-average NFL QB.
Kubiak — who is a quick study in evaluating talent — promptly soured on Carr during the early stages of Year Five, which was part of the reason why the Texans had one of the worst offenses in the NFL that season. As a result of enduring that Year Five offense, Kubiak arguably overpaid for QB Matt Schaub before Year Six and clearly overpaid for over-the-hill running back Ahman Green. Not much improved through 12 games of Year Six as even the local mainstream media cheerleaders were questioning whether Kubiak was the proper coach to right the Texans’ ship.
Then, the Texans showed some spark and won three of their last four games to finish with an 8-8 record for Year Six, the first non-losing record in franchise history. The Texans’ offense — even without Schaub and star WR Andre Johnson for five and seven games respectively — improved to 12th in the NFL in yards gained and 14th in points scored, by far the best finish of any Texans offense. That was enough to give the cheerleading local mainstream media and long-suffering Texans’ fan base hope that things might finally turn around for the franchise in Year Seven.
Unfortunately, Year Seven amounted to running-in-place for the Texans. A solid season-ending win over the Bears allowed the Texans to finish at 8-8 again, but the team did not contend for a playoff spot and suffered several demoralizing defeats. Given that the team had a 7-9 record after Year Three, a reasonable case could be made that not much progress had been made from the end of Year Three through Year Seven. The offense was better, but the defense was worse than it was after Year Three. Had the deck chairs simply been rearranged on the Texans’ Titanic?
On the other hand, several clear signs in Year Seven indicated that the Texans are headed in the right direction. The offensive line and the receiving corps were far-improved and have more depth than at any time in franchise history. Despite being somewhat brittle, Schaub showed the talent necessary to be a consistently above-average NFL QB. Likewise, RB Steve Slaton emerged as a game-breaking back who will only get better if another complementary back steps up from among a group of talented backs that the Texans have accumulated on their roster.
Moreover, although the Texans’ defense did not improve statistically last season, the Texans have a nucleus of young defensive players who — with proper coaching and sensible personnel adjustments — are likely to gel into a reasonably effective unit sometime over the next couple of seasons. Improvement in NFL defensive units generally gestates over several seasons as young players gain needed experience, so I expect the defense to improve under new defensive
coordinator Frank Bush, who is clearly a favorite of the players (unlike Kubiak’s prior DC, Richard Smith).
Although I’m still not sold that Kubiak is the coach to take the Texans to the playoffs, I have always been impressed by his willingness to recognize mistakes, cut losses and make changes. He does not seem to be burdened with the stubbornness that often undermines NFL head coaches. In fact, that characteristic was a big part of why Dom Capers failed as the first Texans head coach.
Continuity in coaching staffs and personnel are the most common elements of successful NFL teams. Accordingly, absent a total meltdown similar to Year Four, my sense is that the eternally patient McNair will continue to endure blunders such as the Ahman Green deal in the hope that maintaining stability will ultimately reward him with a consistent winner. McNair certainly deserves it given the stellar support that he has provided to the Texans football operation.
So, are the Texans ready to contend for a playoff spot this season? Hard to say given the lack of defensive improvement during Year Seven. As I noted several years ago in defending the Texans’ first-pick-in-the-draft selection of DE Mario Williams against almost universal mainstream media criticism, a common thread through NFL teams that take the step from mediocrity to playoff contention is that they find the right mix of defensive players that make it difficult for the opposition to mount a consistent rushing attack. The Texans have not found that mix yet, so playoff contention would appear to be a long-shot until they do.
However, given the high number of variables that play into a successful NFL season, picking NFL playoff teams is an extremely speculative endeavor. Almost all NFL playoff contenders are just a couple of key injuries away from the scrap heap. The Texans have accumulated enough talented football players on the offensive side of the football that they are in a position to seize the playoff opportunity if the variables tilt in their favor on the defensive side. But defensive improvement will likely be the key to whether this season is a breakthrough season or another disappointment. My sense is that the over/under for Texans’ wins this season is eight, the same as last season.
Now that the sports blogosphere is matured, there really is little reason to rely any longer on the mainstream media for Texans news and analysis. The Chronicle sportswriters provide extensive coverage of the Texans, but the coverage lacks meaningful insight. Far superior coverage and analysis is provided in Stephanie Stradley’s excellent blog, which she updates frequently, and Lance Zerlein’s blog, which he updates several times a week. Moreover, the Houston Examiner’s Alan Burge does a much better job of covering the Texans than the Chronicle sportswriters. I will continue my tradition of providing a 2009 weekly local football review each Monday during the season.
Finally, the following Texans blogs also provide superior analysis to that in the local mainstream media: Texans Gab; Battle Red Blog; DGDB&D (for "Da Good, Da Bad & DeMeco"); In the Bullseye.com; and Houston Diehards.
The Landry’s debacle
There are bad stock plays and there are horrible stock plays. And then there is Houston-based Landry’s Restaurants, Inc.
This story began back in July of 2007 when the company announced that it was delinquent in its regulatory filings with the SEC and that it was in need of refinancing over $400 million in debt in a rapidly deteriorating debt market. Shortly thereafter, the company sued some of its bondholders for declaring the company in technical default under their bonds, but the company quickly settled that litigation on not particularly good terms.
A few months later, Landry’s announced in January 2008 that its CEO and major shareholder (39%), Tilman Fertitta, had made an offer to take the company private by buying the other 61% of the company’s stock for $23.50 share, which worked to be a $1.3 billion deal, including debt.
Given the circumstances, that offer sounded pretty good, particularly given that the proposed purchase price was a 40% premium over the $16.67 share price at the time of the offer.
Unfortunately, a spate of shareholder lawsuits followed Fertitta’s bid. By early March, 2008, it was apparent that Fertitta’s bid was so speculative that he hadn’t even lined up financing for it.
So, in April of 2008, Fertitta lowered his offer to $21 per share because of "tighter credit markets", and Landry’s announced that it had accepted that price in June.
But by the fall of 2008, the financial crisis on Wall Street had roiled credit markets even further and Hurricane Ike caused considerable damage to several Landry’s properties.
So, in October of 2008, Fertitta lowered his offer to $13.50 per share.
Then, in mid January of 2009, Landry’s announced that it was terminating the proposed deal with Fertitta. The reason was a bit convoluted, but here is the gist of it.
Landry’s contended that the SEC was requiring the company to issue a proxy statement disclosing information about a confidential commitment letter from the lead lenders on the buyout deal. However, Landry’s was negotiating with those same lenders to refinance the bond indebtedness that the company promised to refinance in connection with October, 2007 litigation settlement with its bondholders noted above. Inasmuch as the lenders’ commitment for financing Fertitta’s buyout required that the terms of the commitment remain confidential, the company elected to terminate the buyout rather than risk that the lenders would declare a default for breach of confidentiality and back out of the financing commitment as well as the negotiations on refinancing the bond indebtedness.
Amidst all this, Landry’s stock was tanking, closing at under $5 per share.
Meanwhile, while the take-private bids languished and the company’s stock plummeted to historic lows, Fertitta continued to buy more Landry’s stock so that he now controls somewhere in the neighborhood of 55% of the company’s shares.
Yes, that’s right. Despite a series of unsuccessful take-private offers over a year and a half, Landry’s board failed to obtain a standstill agreement from Fertitta that would have prevented him from taking a majority equity position while Landry’s stock price was tanking.
So, given all of that, how could Fertitta and the Landry’s directors screw things up any worse?
How about proposing yet another deal in which Fertitta would buyout Landry’s other shareholders in return for giving them an equity stake in a publicly-owned spin-off (Saltgrass Steakhouse) in a brutally competitive niche of the restaurant market?
Prediction: This is not going to turn out well.
Innovative teaching
Having been raised by one, I’ve always been drawn to great teachers wherever I find them.
Jeff Ritter is a young golf teaching professional in the Phoenix area who combines excellent analytical ability with formidable communication skills to provide some of the best golf swing instruction that I’ve seen on the Web.
In this 10-minute video, Ritter shows how, over the course of a week, he improves the swing of a low-handicap amateur golfer who had come to Phoenix to work with him. In so doing, Ritter takes a good golf swing and turns it into a very good one.
Here are some more Ritter teaching videos, generally 1-3 minutes in length, that focus on various aspects of the golf swing. This is a wonderful example of how a talented teacher is using the Web in innovative ways to reach thousands of students who would not otherwise have access to his insight.
Some other sites in which to discover great teachers:
Top 7 Places to Watch Great Minds in Action
100 Incredible Lectures from the World’s Top Scientists
Understanding storytelling
When young attorneys ask me how they can become more effective advocates in the courtroom, I usually tell them: "Become better at telling stories."
Several years ago, Derek Sivers interviewed the late Kurt Vonnegut, who was no slouch as a storyteller. Check out Vonnegut’s views on story-telling, which he believed promotes the need for drama in people’s lives.
Essential reading for anyone who seeks to persuade.