Nortel subject of grand jury probe

Canadian computer giant Nortel Networks, which has its U.S. base in Richardson just outside of Dallas, announced that a federal grand jury in Dallas has subpoenaed financial documents from the company as part of a criminal investigation. The SEC and Canadian securities regulators are already investigating Nortel in regard to Nortel’s restatements of its earnings dating back to 2000 and an executive bonus program.
Nortel’s announcement refused to comment on whether the subpoenaed documents were linked to the three top Nortel executives — chief executive, Frank A. Dunn; its chief financial officer, Douglas A. Beatty; and its controller, Michael J. Gollogly — who the company fired last month. Nortel’s board fired those executives after the company reported that it earned half as much in 2003 as it initially reported and that it had smaller losses in 2001 and 2002 than it stated in those years. As you might expect, the three former executives have been named as defendants in nearly two dozen investor class-action lawsuits.

Comparing images of Abu Ghraib and Nicholas Berg

Charles Paul Freund is a senior editor of Reason, a monthly magazine on politics and culture, who has written extensively on the political manipulation of culture, the ideological use of imagery and language, modern techniques of persuasion and the process of disseminating ideas.
In this LA Times op-ed, which is a must read in its entirety, Mr. Freund makes the following salient point in comparing the responses to the recent images of the Abu Ghraib prison and the beheading of Nicholas Berg:

The Abu Ghraib pictures reveal American soldiers humiliating their prisoners in a sadistic manner (in some images, the Americans are actually smirking). It’s a painful sight because it is cruel on its own terms (we don’t even know whether the terrorized individuals are actually guilty of anything) and because we regard such sadism as unworthy of our image of ourselves.
By contrast, Zarqawi intentionally videotapes and distributes his bloody atrocity; the literal slaughter of an innocent is offered as an example of his righteousness. For Zarqawi, the question of unworthiness simply never enters the calculation; that the action is inhuman is its point.
Shameless brutality of this degree has the power to transform the shame of Zarqawi’s enemies. Zarqawi has reminded his enemies that, unlike him, they are at least capable of shame.
Zarqawi’s righteous snuff movie is an act of lunacy, a gift to his enemies, and, one hopes, an unwitting suicide note.

Hat tip to Virginia Postrel for the link to Mr. Freund’s timely piece.

Ten don’ts for appellate advocates

This Begging the Question post provides an appellate law clerk’s handy list of reminders for appellate lawyers in what not to do in advocating your client’s position. Hat tip to Evan Schaeffer over at the Illinois Trial Practice Blog for the link to this post.
By the way, Evan’s blog is one of the best in cyberspace in providing insightful and practical information for trial lawyers. I particularly enjoy the way he has organized his posts into various subjects relating to trial work. This is a great resource for trial lawyers, and a great example of how a blog can provide specialized information in a creative and effective manner.

Ugh

The Stros dropped their third straight game on Friday night as the Mets smoked them, 8-3. Roy O gave up his first career grand salami to the Mets’ Cliff Floyd, and that’s about all she wrote on this one. The Stros continue to slump at the plate, and now have averaged just three runs a game over their last six. The Stros try to get back on track in the Saturday evening game against the Mets behind Andy Pettitte, as the Rocket prepares for a Sunday afternoon matinee.

SBC president resigns

This Chronicle article reports on the resignation of SBC Communications Inc. President William Daley.
San Antonio-based SBC appointed 51-year-old Forrest Miller, a long-time telecom industry veteran, to succeed Mr. Daley as head of the company’s public affairs and corporate planning functions. However, SBC announced that it is not planning to appoint a new president.
A former Commerce Secretary under President Clinton, chairman of Al Gore’s 2000 presidential campaign, and the son of the late Chicago Mayor Richard J. Daley, Mr. Daley, 55, had been hired in 2001 to advance SBC’s regulatory agenda and was part of a campaign to improve the company’s strained relations with Midwest regulators.
Mr. Daley’s resignation comes as SBC and other local phone giants are in the middle of a volatile period of political activity over the future of access to local phone systems. SBC officials have been trying to free themselves from federal regulations that force them to lease access to their networks to rivals such as AT&T Corp. and MCI Inc. at artificially low rates. Competitors of SBC and other regional telecoms say the federal rules are fair and provide the only method of ensuring competition in local phone markets.
SBC and the other Bells suffered a serious regulatory defeat late last year when the Federal Communications Commission decided to leave wholesale leasing regulations essentially unchanged. Mr. Daley had led SBC’s regulatory lobbying effort in regard to that FCC matter.

Judge Tad Halbach hospitalized

State District Judge Joseph “Tad” Halbach, Jr was hospitalized at St. Lukes Episcopal Hospital in the Medical Center on Friday morning after suffering chest pains in his courtroom. Judge Halbach, 47, was undergoing tests this afternoon to determine the cause of the chest pains.

All politics are local, even in Iraq

David Ignatius of the Washington Post (free online subscription required) has some interesting observations in this piece titled “Reassembling Iraq” based on his recent trip to Iraq. The entire piece is well worth reading, and the folloiwng will give you a flavor for it:

After each visit to Iraq over the past year, I’ve tried to weigh how things are going. At the end of a trip last week, one answer was that it depends on where you live. Even in the wilds of Mesopotamia, all politics is local.
Overall, Iraq is a mess. . .
Yet this disarray on the macro level masks local pockets of stability. Southern Iraq, where I traveled for a week with British troops, is surprisingly calm — thanks to a quiet alliance of tribal sheiks and Shiite religious leaders with the British occupiers. The British have been wise enough to let the Iraqis find their own solutions to problems. Their motto, says the British chief of staff in the south, Col. Jim Tanner, is that “one size doesn’t fit all.”
The Kurdish north is also relatively calm and stable. Kurdish political leaders know they’ve got a good thing going in their quasi-autonomy from the Arabs to the south. Their troops and clan leaders are maintaining order, and while they may pay lip service to the notion of the Iraqi state, they’re quite happy to be running their own show.
The nightmare area is the U.S.-controlled zone in the center of the country. This was always going to be the toughest piece of the puzzle. Where the Shiite south and Kurdish north are each relatively homogenous, central Iraq is an ethnic, religious and political jumble.
But even in the center, temporary pockets of stability have emerged over the past month, as the United States steps back from the brink of all-out urban warfare. Much like the British in the south, the U.S. occupiers now seem ready to accept some Iraqi solutions that are backed by the nation’s traditional power bases, such as the tribes, religious leaders and semi-respectable remnants of the old army.
Sometimes we’ll have to hold our noses at these local solutions, as when a former Republican Guard general restores order in Fallujah. But that kind of pragmatic approach seems preferable to waging a bitter war of occupation.
Unfortunately, the checkerboard Iraq that I’m describing isn’t any longer a single nation. It’s a country in the process of de facto partition — with the north and the south going their own ways and the center in a bloody state of ferment.

Finally – Stros tix online!

Baseball fans can now print Houston Astros tickets directly from their own office or home computer, under a new system that the club just launched.
The newly announced delivery option — called TicketFast — allows fans to print tickets that are purchased on www.astros.com. Such tickets can be printed using home or office computers, then they can be used to attend Astros games at the Juice Box. TicketFast works by printing a unique bar code that is used in conjunction with the latest Minute Maid Park entry system.

Predicting terrorist attacks

Professor Sauer over at the Sports Economist analyzes this interesting David Henderson article and points us to this Pejman Yousefzadeh Tech Central Station article that address the benefits of generating information about terrorist attacks from decentralized sources.
In particular, Mr. Yousefzadeh’s article re-examines the use of futures markets as a predictor of terrorist attacks, which is a creative idea that was scuttled earlier based on emotional, rather than objective, reactions. As Professor Sauer and Mr. Henderson explain, such decentralized sources will often generate more reliable information than our increasingly centralized intelligence agencies are likely to produce. Check it out.
Also, for a fascinating story about a remarkable young man and his family, check out Mr. Yousefzadeh’s biography here. Pejmanesque is his blog.

Kerry’s health care finance plan

David Wessels over at the Wall Street Journal ($) has this column in yesterday’s edition that focuses on John Kerry’s health care finance plan. The entire column is well worth reading, and here are a few snippets:

But Mr. Kerry knows that for many American workers and businesses, the big worry is cost. So he has added another dish to his health-care table. He proposes that the federal government shoulder most of the cost when someone gets really sick. It would pay 75% of medical bills over $50,000 a year for any person covered by an eligible (more on that later) private employer. He says this would cut premiums for employers and employees by 10% or, as he boasts on the stump, by $1,000 per family.
The notion is so old it sounds novel. The Kerry campaign credits Stuart Altman, a veteran health-policy wonk at Brandeis University, for the plan. Mr. Altman drew it from memories of his years as a Nixon administration bureaucrat. A similar scheme was written into an ultimately unsuccessful bill in 1974 by Wilbur Mills, then chairman of the U.S. House Ways and Means Committee.
The concept is simple: Government becomes the ultimate reinsurance company, spreading the risk of expensive illness among taxpayers instead of sticking it with an unlucky employer. “We’re always worried that insurers will dump sick people,” notes David Cutler, a Harvard University health economist. “So the idea is that we won’t make them pay for really sick people.”
If Mr. Kerry wants to spend money so employers and insured workers pay less, then subsidizing firms that employ sicker and, often, older workers is reasonable.
But …
It’s expensive: $257 billion over 10 years, estimates Kenneth Thorpe, a former Clinton administration health economist now at Emory University.
It doesn’t save society any money and does nothing to restrain the American appetite for more drugs, more tests and more exams, whether or not they’re worthwhile. It simply shifts some costs now paid by employers and employees to taxpayers.

Mr. Wessels then closes by focusing in on one of the key issues, one that is sadly not a part of the usual public debate on health care finance:

If the proposal becomes law, Mr. Kerry and his advisers may discover it could do something they haven’t anticipated: provoke a broad public debate over how much health care is enough.
If the government starts picking up the tab for the one-half of 1% of privately insured Americans whose medical bills exceed $50,000, it will open the door to questions — and possibly rules — about whether such care is wise in every case. Should stomach-stapling surgery be covered? How about bypass surgery in 90-year-olds? Who decides when to pull the plug?
As The Wall Street Journal illustrated in articles last year, decisions in the U.S. on who gets expensive care and who doesn’t are made quietly and differently by intensive-care coordinators, transplant schedulers, and insurance bureaucrats. This Kerry proposal could break that debate wide open.

As Brad DeLong points out in this insightful post and as noted in this earlier post here on Health Savings Accounts, this key issue and others relating to the overhaul of America’s flawed health care finance system desperately need to be addressed in this campaign season. Although I have reservations about the Kerry plan’s reliance on third party payor systems as the primary mechanism for controlling health care costs, I agree with Professor DeLong that Kerry should be complimented for facilitating the debate of these key issues that the Bush Administration has largely ignored.