U.S. District Judge Sim Lake refused today to lift a freeze order that the Enron Task Force had obtained on $55 million of former Enron CEO Jeff Skilling‘s assets pending further order of Judge Lake. I will be interested to review Judge Lake’s opinion on this issue. Given the government’s sledgehammer approach to the criminal case against Skilling, freezing his new worth while he defends himself appears to be an unfair restriction. On the other hand, Judge Lake is a very fair judge, so I expect good reasoning in this opinion. I will post it when I get a copy.
Daily Archives: March 18, 2004
Victor Davis Hanson on Spain, Europe, America and the Middle East
FrontpagMag.com interviews the always insightful Victor Davis Hanson regarding the recent events in Spain and the Middle East, and how Americans and Europeans have reacted to them. Thanks to Occam’s Toothbrush for the link. The entire interview is a must read, but one sentence about what could defeat America stands out:
I am talking about a secular religion of anti-Americanism brought on by our very success that allows such utopianism and cheap caring-and it does weaken and tire our efforts to win this war.
How low will Royal Dutch/Shell go?
In this stunning announcement, Royal Dutch/Shell today downgraded 250 million barrels in reserves to less certain reserve categories and decided not to book 220 million barrels that it had earlier classified as reserves. Although small in comparison to Royal Dutch/Shell’s earlier writedown, the timing of this latest reserve writedown is certain to increase scrutiny of the company’s management practices.
As noted here and here, Royal Dutch/Shell is already the subject of Justice Department and SEC investigations regarding its earlier reserve writedown.
Who is Ken Venturi?
This post from awhile back addressed the dust-up that has occurred between Arnold Palmer and Ken Venturi over Venturi’s recent allegation in his new book that Arnie had broken a rule (might we say, cheated?) on the 12th hole of Augusta National on his way to beating Venturi to win his first Masters Golf Tournament in 1958.
Well, Arnie’s Tour event — the Bay Hill Invitational — is this week. And, as you might expect, a reporter asked Arnie during his annual pre-tournament interview about Venturi’s allegations. The King’s response was classic:
Reporter: “Mr. Palmer, what is your reaction to the issue at Augusta raised in Ken Venturi’s new book?”
The King: “I don’t know what book you’re talking about. I don’t know a thing about it. I really don’t, and I’m not really too interested. That’s my comment. Next question.”
Justice Scalia refuses to recuse himself
Here is Justice Scalia’s opinion refusing to recuse himself in the Supreme Court case involving his hunting buddy, Vice-President Cheney. Here is the Sierra Club’s motion to recuse that prompted Justice Scalia’s opinion.
The poor health of Russians
Tyler Cowan over at Marginal Revolutions has this interesting post about the Russian health care system, which has been in the news because of recent reports regarding the decreasing life expectancy of Russian men. Tyler’s post contains several good links and solid analysis of the reasons for this crisis in Russian health care.
Smart View at Yahoo Maps
Tom Mighell over at Inter Alia notes the new feature on Yahoo Maps that provides information on area businesses such as restaurants for any address that you plug into the map building service. A very nice feature.
ChevronTexaco: Enough already
Clearly worn down by the prospect of dealing further with the Harris County Commissioner’s Court, ChevronTexaco announced yesterday that it had closed the deal to buy the former Enron Building in downtown Houston. In light of the County’s recalcitrance, I suspect that the seller threw come additional consideration to ChevronTexaco to get the deal done.
As noted in this earlier post on the matter, this closing frees Harris County taxpayers from having to deal with Commissioner Steve Radack’s delusions about having the County buy the building.
Medicare prescription drug controversy intensifies
The Bush Admininistration’s conduct in promoting the Medicare prescription drug legislation last year is coming under increasing scrutiny. Already of dubious financial merit, this NY Times article reports on the opening of a House inquiry into bribery allegations that are based on a Republican congressman’s public comments made immediately following the close vote last year over the controversial bill.
In related news, this WSJ ($) article and this NY Times article report on the controversy swirling around Richard Foster, Medicare’s chief actuary. Mr. Foster was warned last year that he could be accused of “insubordination” if he shared information with Congress about the White House-backed prescription-drug bill without the approval of his politically appointed superiors, according to e-mails from the top aide to Thomas Scully, who was then the Bush Administration’s administrator for the health-care program. A WSJ copy of the email can be reviewed here. The gist of the story is that Mr. Foster was pressured to reduce the estimated ten year cost of the Medicare prescription drug program by about 30% in order to make it more politically palatable. While Republican leaders say the allegations are overblown, no one doubts that release of the higher cost estimates last fall would have probably killed the prescription drug bill, which only passed by one vote after hours of arm-twisting in the House in November.
Again, my sense is that the Bush Administration’s handling of health care finance issues is a major, and largely underappreciated (at least by administration officials), political problem for the administration in the upcoming election.
UAL bankruptcy – Will it ever end?
This NY Times article and this WSJ ($) article report on the postponement of confirmation and consummation of United Airlines‘ reorganization plan in its long pending chapter 11 case. UAL has been operating under chapter 11 since December, 2002, and it’s exit financing and debtor-in-possession financing commitments expire on June 30. Although UAL is probably too big for its institutional creditors simply to give up on it, this is clearly a business that is in trouble, and no sure bet to make it even after emerging from chapter 11.
A related NY Times story reports on the daunting problems confronting UAL competitor, American Airlines.