The Wall Street Journal ($) is reporting today that brokerage house Lehman Brothers Holdings Inc. is close to a $220 million settlement to resolve a class-action lawsuit alleging that it and other big brokerage firms participated in a scheme with Enron Corp. executives to mislead shareholders. Lehman’s propoed settlement follows a similar settlement in July in which Bank of America Corp. agreed to pay $69 million to settle similar allegations.
Bank of America and Lehman were underwriters in just a handful of Enron-related deals, so attorneys involved in the case believe their roles (and thus their settlement payments) are small in comparison to firms like Citigroup Inc. and J.P. Morgan Chase & Co. who did more Enron-related deals. Citigroup and J.P. Morgan are among the firms that have reserved billions of dollars to cover Enron-related exposure.
Monthly Archives: September 2004
Dan Duncan gives $35 million to Baylor College of Medicine
Kicking off a capital campaign, Baylor College of Medicine announced Wednesday it has received a $35 million gift from Baylor trustee and longtime Houstonian Dan Duncan to kick off the building of a new Baylor-operated clinic in the Texas Medical Center.
Mr. Duncan’s donation will be paid over 10 years and represents about a third of the clinic’s estimated cost. The clinic will be between 250,000 to 350,000 square feet and finished by late 2007 at a cost of about $90 million. The clinic will offer a full range of medical services from cardiology to ophthalmology, checkups, lab tests, and day surgery. The clinic will also allow patients to receive diagnosis and treatment in one place for conditions that cross specialties.
The University of Texas Health Science Center at Houston earlier this month announced the purchase the Hermann Professional Building to use as its outpatient clinic and Methodist Hospital has plans to build such a clinic, a plan that was part of the reason that Baylor and Methodist ended their 50 year relationship earlier this year.
New plan for the Astrodome
With the construction of the Juice Box and Reliant Stadium, one of the local political footballs that is lobbed around Houston from time to time is the following issue: What should we do with the Astrodome?
The local sports and convention corporation spends about $1.5 million annually to host a small number of events at the Astrodome and, even if the facility were to be mothballed, the corporation would spend $500,000 annually in maintaining it. Even razing it would be expensive, probably costing $10 million to $20 million. Moreover, Harris County still owes more than $50 million on bonds issued to pay for renovations at the Astrodome during the 1980s (remember Bud Adams?), and that debt will mature in 2012.
Consequently, The Astrodome is a knotty problem. It’s expensive to maintain and, quite frankly, the County is not spending the money to maintain it properly. As a result, it is a dump at this point, and it looks haggard next to gleaming Reliant Stadium and the new Reliant Convention Center that are next door neighbors to the Dome in Reliant Park. Unless something can be done to make some other use of the grand ol’ dame of Houston sports facilities, most Houstonians would rather see it blown up so that the space it uses could be transformed into more parking at Reliant Park.
However, this Chronicle article reports that the company looking to redevelop the Astrodome is planning on converting it into a 1,000 room convention hotel. The Astrodome hotel would be the second largest hotel in town, second to the 1,200 room Hilton Americas Convention Hotel next to the George R. Brown Convention Center in downtown Houston.
Although the Gaylord Texan Hotel in Grapevine near DFW Airport in the Dallas-Ft. Worth area is an existing prototype of what a retrofitted Dome could be, my sense is that this proposal for the Astrodome is not likely to occur without a substantial subsidy from Harris County. Consequently, let’s see if the Chronicle or any other Houston news media discloses the true taxpayer cost of retrofitting and maintaining the Dome in comparison to alternative uses of the property. Given the Chronicle’s abysmal performance in providing accurate information regarding the cost of the Streetcar Named Disaster, my expectations are not high.
Keegan on the Iraq War
John Keegan is England’s foremost military historian and, for many years, was the Senior Lecturer at the Royal Military Academy at Sandhurst. His book — The Second World War — is arguably the best single volume book on World War II and his book The Face of Battle is essential reading for anyone seeking an understanding of the history of warfare. His newest book — The Iraq War — was published earlier this year, and here is a post from June on one of Mr. Keegan’s earlier op-ed’s on the Iraq War.
In this London Telegraph op-ed, Mr. Keegan weighs in on the current situation in Iraq, which has been the subject of these Victor Davis Hanson and James Fallows posts from over the past several days. Essentially, Mr. Keegan notes that mistakes have been made, but points out that the situation could be far worse than it is.
Inasmuch as England’s Prime Minister Tony Blair is currently bearing the same criticism over the Iraq War that President Bush is enduring from similar forces in the U.S., Mr. Keegan first addresses the motives behind such criticism:
It is difficult to understand the motives of those who are making life difficult for the Prime Minister. Some are legalists who continue to insist that the war was launched without justification in international law and wish to punish those responsible for their transgressions.
T hey belong to that tiresome but increasingly numerous tribe who seem to think that men are made for laws and not laws for men. In any case, their arguments are contested, since many (including the Attorney General) hold that UN Resolutions 678, 687 and 1441 do in fact provide justification for the taking of military action against Saddam.
Some of Tony Blair’s castigators are old-fashioned anti-militarists, usually with a strong anti-imperialist tinge, who deprecate the use of force as an instrument of foreign policy in almost any circumstances. They ignore the fact that Saddam was in breach of at least nine UN resolutions and flaunted his defiance. They also failed to explain why they in effect would support Saddam’s continuance in power and the maintenance of his cruel and dictatorial rule over the Iraqi people.
Some anti-Blairites are, of course, simply playing internal Labour Party politics. They dislike the Prime Minister’s unwritten contract with the middle classes, his refusal to institute progressive taxation and his disinclination to take back into public ownership any of the denationalised industries. They are usually anti-American as well, and take pleasure at the spectacle of President Bush’s failure to translate the victory of 2003 into a successful transition to stable government.
Mr. Keegan then goes on to point out one of the big mistakes that the American military made during the occupation of Iraq:
It was a serious mistake to dissolve the Iraqi police force and to disband the Iraqi army. The reasons for doing so seem to have been based on distant memories of the occupation of Nazi Germany in 1945. The Ba’ath party was identified as the Iraqi version of the Nazi party and the view taken that no supporters of the old regime should be allowed to exercise power under a new regime.
That policy may also have drawn on an idealistic but naive American belief in the existence of a potential democratic majority inside any repressed population, ready to elect an enlightened government if given the chance to vote. The effect in practice was to throw into unemployment hundreds of thousands of young Iraqi males, instantly discontented but skilled in the use of weapons. As almost every Iraqi male has access to weapons, the result was to make for disorder.
However, the disorder in Iraq is isolated to the Sunni Triangle, and Mr. Keegan notes that there is precedent in the Islamic world for this type of disorder:
The trouble that persists is centred on the so-called Sunni triangle, west of Baghdad, and is fomented by ex-Ba’athists who fear that properly conducted elections will exclude them from the position of dominance they were accustomed to enjoy in the Saddam years. Such elections are scheduled for January and that timetable is the spur to the current spate of bombings and shootings, which take as their principal targets those Iraqis who are brave enough to seek enlistment in the new police force and the new army.
Other dissidents are Shia militants, many followers of the cleric Moqtada al-Sadr, who fear a revival of Sunni dominance through American-sponsored governmental means and who, in any case, regard Western forms of democratic government as un-Islamic. Their aims, if not their beliefs, are supported by the foreign infiltrators, particularly from Syria but also from Iran and the anti-royalist regions of Saudi Arabia, who want nothing less than the restoration of the seventh-century caliphate and a return to the rule of God on earth.
Britain has been here before. In the 1920s, at the beginning of its exercise of the League of Nations Mandate over Iraq, it had to pacify a disturbed ex-Turkish Ottoman territory in which, as the first British governor complained, every man had a rifle. Then, as now, Shia and Sunni were at loggerheads and the whole Muslim world was disturbed by the fall of the caliphate, brought about by Kemal Ataturk’s dissolution of Islamic rule in Turkey.
Nevertheless, Mr. Keegan notes that Iraq is a secular state and that its population is one of the best educated in the Middle East, and concludes by pointing out an essential truth regarding the calculated use of force:
When not silenced by the threat of violence from extremists and criminals, [most Iraqis] are also ready to say that they continue to regard the Western troops in their midst as liberators. Western so-called progressives who denounce the war of 2003 as a mistake are in fact illiberal and reactionary. They should be ashamed of themselves. Denunciation of war-making is much more fun than the recognition of the truth that the calculated use of force can achieve good. The United States and Britain must not be deterred.
Stros are officially toast
Noah Lowry pitched a five hitter as the Giants won their ninth game out of their last 10 as they beat the Stros for the second straight game in San Francisco, 5-1.
The win allowed the Giants to remain a half game in front of the Cubs in the NL Wild Card playoff race and to pull within a half game of the Dodgers in the NL West Division. With the loss, The Stros fell three games behind the Giants and two and a half games behind the Cubs in the Wild Card race. For all practical purposes, the Stros late season surge to make the playoffs is over.
Roy Oswalt — pitching despite a rib cage injury — had won his last five decisions, but never got into a rhythm Wednesday night. He allowed 10 hits, five earned runs, struck out three and walked four in 5 2-3 innings.
Meanwhile, the Stros biggest bugaboo for most of this season — lackluster hitting — has reappeared with a vengeance during this series. Three runs on nine hits in two games is simply not going to get it done against the Giants.
The Stros take a flyer on Brandon Backe this afternoon against the Giants’ Jason Schmidt, which looks like the mismatch of the week. Schmidt has not been as dominant over the past month as he has for most of the season, but the way the Stros are hitting, they are a convenient cure for Schmidt’s problems. The Stros go to Milwaukee for a weekender with the Brew Crew after the game. When does OktoberFest begin?
Ivan reappears in Gulf
Look who’s probably coming to the Houston Metro area.
This is one resilient storm.
By the way, Check out these cool aerial before and after Hurricane Ivan photos.
Three DeLay aides indicted in Austin
A Travis County, Texas grand jury indicted three people closely linked to Houston-based U.S. House Majority Leader Tom DeLay Tuesday along on charges of illegally using corporate money to help Republican Texas House candidates during the 2002.
The indictments focused on the DeLay-founded Texans for a Republican Majority Political Action Committee, which raised corporate money to help Republicans take control of the Texas House for the first time since Reconstruction. TRMPAC chief John Colyandro, fund-raiser Warren RoBold and DeLay political director Jim Ellis were the DeLay aides that were indicted. Travis County District Attorney Ronnie Earle, who is a Democrat, said the investigation continues into possible campaign-finance violations by TRMPAC, the Texas Association of Business and the election of GOP Texas Speaker Tom Craddick of Midland. This was the third grand jury to hear the investigation and Earle disclosed the investigation will continue when a new grand jury is impaneled in October. He would not say whether DeLay is a target of the investigation.
TRMPAC raised almost $600,000 from corporations, which usually contributed at fund-raisers in which DeLay was the featured guest. The money was used to pay for additional fund-raising and political activity to help Republican candidates win about 20 House seats. Texas Ethics Commission opinions have said corporate money can be used only to pay a political committee’s basic expenses, such as rent and utilities. However, TRMPAC supporters contend that the state law is trumped by the First Amendment of the U.S. Constitution and applicable federal law at the time.
Giants trounce Stros
The Stros’ chances for the Wild Card playoff spot were pushed to the brink of extinction Tuesday night as the Giants pounded the Stros decisively 9-2 in City by the Bay.
The loss puts the Stros two games behind the Giants in the Wild Card race, and 1.5 games behind the second place Cubs in that race. The loss stopped the Stros’ four-game winning streak and also allowed the Giants to to close within 1Ω games of the NL West-leading Dodgers, who lost 9-4 to the Padres. The Giants are now 23-8 against the Astros since the 2000 season.
After Bags and Berkman nailed back-to-back yaks in the Stros’ first inning, Brett Tomko (11-6) dominated the Stros as he pitched 8 2/3rds innnings of four hit ball and struck out five and walked three.
The Giants responded to the Stros mini-uprising in the first with three runs in the bottom half on three hits. Incredibly, Stros manager Phil Garner elected to have Carlos Hernandez pitch to Bonds with runners on second and third, and Bonds’ hard roller got past shifted shortstop Jose Vizcaino for an error and two runs. The Giants then batted around in their four-run fourth to put the game away.
Hernandez, who has not won in his last four starts, lasted only only 2 1/3 innings, which is his shortest outing of the season. Brandon Duckworth came in to pitch a couple of innings just to make sure that the Giants would put this game out of reach.
Sore-ribbed Roy O takes the mount tonight in a must win game for the Stros if they are to stay in the Wild Card race. If they can pull this one out, then they can try and figure out how Brandon Backe can outpitch Jason Schmidt in the Thursday afternoon game.
James Fallows on the Iraq War
James Fallows is the National Correspondent for The Atlantic Monthly, where he has worked for more than twenty years. He is one of the most important and gifted investigative reporters of our time. During his long and storied career, Mr. Fallows has written extensively on such diverse topics as defense policy, economics, computer technology, politics, and immigration.
Over the past two years, Mr. Fallows has written a series of investigative articles in The Atlantic in which Mr. Fallows argues that the Bush Administration has squandered valuable resources and opportunities as a result of its drive to war against Iraq. In this Atlantic Monthly ($) interview, Mr. Fallows elaborates on his views regarding the mistakes that he believes that the Bush Administration has made in pursuing the Iraqi front in the war on Islamic fascism. It is a valuable and thought provoking piece from a serious reporter and thinker, and the following are several tidbits of the interview to arouse your curiosity.
Charlie Beckham named chairman of the State Bar Bankruptcy Law Section
Charles A. (“Charlie”) Beckham Jr., a partner with Haynes and Boone LLP in Houston, has been elected as chair of the bankruptcy law section for the State Bar of Texas for a term running through June 2006.
Deborah D. Williamson, a shareholder with law firm Cox Smith Matthews in San Antonio, will serve as vice-chair and will take over the chair position after Mr. Beckham’s term expires.
Mr. Beckham has worked for over 20 years in bankruptcy law in both El Paso and Houston, and has represented primarily lenders and other parties in many Chapter 11 bankruptcy cases, particularly in the oil and gas industry. He currently represents the co-chair of the Creditors Committee in the Enron Corp. chapter 11 case in New York.
The bankruptcy law section of the State Bar of Texas is an 800-member organization and is one of the most active sections of the State Bar of Texas in terms of providing education programs for the legal profession and the public.
Congratulations, Charlie!