British News Media Agree to More Powerful Regulator





LONDON — The editors of Britain’s principal national newspapers met Wednesday under pressure from Prime Minister David Cameron and agreed to the establishment of an independent newspaper regulator with far greater powers than those available to the existing watchdog.




But the editors, meeting over breakfast at a London restaurant, steered a careful course, embracing most but not all of the measures recommended in a report last week by a high-ranking judge, Lord Justice Sir Brian Leveson. They rejected the judge’s most contentious proposal, for a new law that would put teeth into a state-sanctioned system of oversight.


That placed the editors broadly in line with the approach taken by Mr. Cameron, who has courted political opprobrium, particularly on the left, by saying that writing any part of a new regulatory system into law would risk eroding 300 years of press freedom in Britain. Reacting to the Leveson report last Thursday, the prime minister warned that once such a law existed, politicians would be tempted to broaden it, and start the country down the road to state control of the news media.


Lord Justice Leveson led a nine-month inquiry into a scandal surrounding abusive and illegal newspaper practices, including hacking into private computers and voice mail and bribing police officers and other public officials to obtain confidential information — practices that appeared to have been rife in some newsrooms.


The Leveson inquiry and the parallel investigations by the police have focused especially on two mass-circulation tabloids that anchored Rupert Murdoch’s newspaper empire in Britain, The Sun and The News of the World. The company shut down The News of the World in July 2011, at the height of the scandal.


In effect, some analysts said, the editors’ agreement reflects the price that Britain’s famously freewheeling newspapers are now paying for the tabloid papers’ excesses.


Though Britain has no formal equivalent of the First Amendment, its tabloid newspapers in particular have prided themselves on being the scourge of the establishment, of privilege and of claims to a right of privacy by celebrities and others in the news. That attitude could now be curbed, perhaps even radically, by a new regulatory body responding to the public outrage stirred by the recent scandals, these analysts said.


The newspaper The Guardian reported on its Web site on Wednesday that the editors — including representatives of the sensationalist “red top” tabloids like The Sun, the country’s most lucrative daily — had endorsed 40 of the 47 principal recommendations made in Lord Justice Leveson’s 2,000-page report.


They agreed to scrap the weak and widely discredited Press Complaints Commission, set up by newspaper barons 20 years ago, and replace it with a new body appointed from outside the newspaper industry and the government. It would have a much larger budget, a strong investigative staff, and the power to order errant newspapers to publish prominent apologies and pay fines up to £1 million, or $1.6 million, or 1 percent of a publication’s annual revenue, whichever is less. Effectively, subscribing to the new system would be compulsory, since failure to sign up would deny newspapers access to a new system for arbitrating libel suits that could be far cheaper than fighting suits in the courts.


“We endorsed virtually all the report, barring the clauses that dealt with statutory underpinning,” one of the editors who attended Wednesday’s meeting said. He spoke on the condition of anonymity, citing an agreement among the roughly 20 editors not to comment individually on the record while details of a new system are being worked out.


Newspapers represented at the meeting included broadsheets like The Guardian, The Observer, The Daily Telegraph, The Independent and two Murdoch-owned titles, The Times and The Sunday Times; two weekly journals, The Spectator and The Economist; and mass-market tabloids like The Daily Mirror, The Daily Express and Mr. Murdoch’s Sun, with readerships in the millions.


The editor who spoke said that the group voted clause by clause on the 47 Leveson recommendations in a 90-minute meeting marked by a sense of urgency because of the mounting political pressure for tougher measures to rein in the news media. “There was a feeling that if we were to avoid something nasty, we had to do something quickly,” he said.


On the political left and center-left, the Labour Party and the Liberal Democrats are pressing for a statute that would put the newspapers on notice that they would defy the new system at their peril. With his own Conservative Party deeply split on the issue, Mr. Cameron told the editors at a meeting on Tuesday that they should endorse the principles behind the Leveson proposals, and that if they did not, they would “get a statute,” an editor who was present said.


With the editors now in line, senior aides to Mr. Cameron have said they will try to defuse the situation with a more detailed blueprint for an oversight system that would be independent but not depend on statutory backing, perhaps with a senior judge to act as a referee on appointments to the new regulatory body and on contested findings.


The editors’ action put newspapers with a combined daily and weekend circulation of more than eight million copies — said to be read by more than one-third of Britain’s population of 62 million — on record in favor of substantially toughening the system of self-regulation by the newspapers that has been in place since 1953.


In its current form, set up in 1991 after an earlier threat of government regulation, a voluntary body passes judgment on accusations of wrongdoing by the newspapers that participate. But critics who testified before the Leveson inquiry, including victims of the tabloid excesses, said the commission has been too pliant, especially in dealing with rambunctious tabloids like The Sun, which have had little to fear from the commission’s reproaches.


This article has been revised to reflect the following correction:

Correction: December 6, 2012

An earlier version of this article referred incorrectly to the jurisdiction of a proposed independent regulator in Britain. The new regulator would be charged with oversight of newspapers, not of the broader news media.



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DealBook: HSBC Sells Stake in Chinese Insurer for $9.4 Billion

HONG KONG – HSBC Holdings, one of the biggest banks in Europe, said on Wednesday that it would sell its entire stake in a leading Chinese insurer to a Thai conglomerate for 72.7 billion Hong Kong dollars ($9.4 billion).

HSBC said it would sell its 15.6 percent stake in Ping An Insurance, based in Shenzhen, China, to the Charoen Pokphand Group, controlled by the Thai billionaire Dhanin Chearavanont, in a deal to be financed partly by the China Development Bank, a policy lender wholly owned by the government of China.

HSBC, based in London, has been shedding assets to cut costs and streamline its business, and at the same time bolstering its balance sheet in the face of tighter global capital requirements for banks. Since Stuart T. Gulliver took over as chief executive at the beginning of 2011, the bank has sold more than 40 noncore assets and has booked about $4 billion in gains on those sales this year alone.

HSBC disclosed last month that it was in talks over a potential sale of its Ping An stake, which it started building in 2002. It said on Wednesday that it expected to report an after-tax gain of $2.6 billion on completion of the deal.

“This transaction represents further progress in the execution of the group’s strategy,” Mr. Gulliver said in a statement announcing the sale. “China remains a key market for the group.”

Founded in Hong Kong and Shanghai almost 150 years ago, HSBC operates 133 outlets in 33 branch offices in mainland China. After the sale of the Ping An stake it will keep minority investments in several Chinese lenders, including a 19.9 percent stake in the Bank of Communications that is worth about $10 billion at current share prices; a stake in Industrial Bank, based in Fujian Province; and an 8 percent stake in the Bank of Shanghai.

In the Ping An transaction, Charoen Pokphand, a conglomerate that includes businesses like the distribution of agricultural products and the operations of one of the world’s biggest chains of 7-Eleven stores, will purchase 1.2 billion Ping An shares from HSBC at 59 dollars apiece.

HSBC said it would transfer 21 percent of the shares to the Thai group on Friday. The sale of the remaining 79 percent of the shares at the same price is being financed partly with cash and partly by a loan from the China Development Bank to Charoen Pokphand, and the transfer of those shares is expected to be completed by Jan. 7, contingent on receiving approval from the China Insurance Regulatory Commission.

The New York Times reported last month that relatives of Wen Jiabao, the Chinese prime minister, once held a large, indirect stake in Ping An through an investment vehicle called Taihong, according to corporate records. Ping An declined to comment on The Times’s findings, and it is unclear whether the prime minister’s relatives still hold any stake in the insurer.

The Chinese government has declined to comment on whether the relatives of Mr. Wen controlled a fortune that at one time was worth $2.7 billion. Earlier, a Foreign Ministry spokesman sharply criticized the investigation by The Times into the finances of Mr. Wen’s relatives, saying it “smears China and has ulterior motives.”

Representatives of Ping An, HSBC, Charoen Pokphand and the China Development Bank did not immediately respond on Wednesday to phone calls and e-mails seeking comment on The Times’s reports about the Ping An stake held by Mr. Wen’s relatives.

Ping An, which was founded in 1988, has grown into one of the biggest insurance companies in the world. The company, which is not state-owned, appears to have benefited from a favorable regulatory environment. In addition to insurance operations, it has won control of a large bank, brokerage and trust company.

In a statement on Wednesday, Ping An said it welcomed Charoen Pokphand, or C.P. Group, as a “long-term strategic investor.” The Thai firm “has been an important partner in China’s reforms and opening-up and in supporting China’s economic and social development. C.P. Group has full confidence in Ping An’s strategies, corporate culture and business model, as well as in Ping An’s management team,” the insurer said.

After the Wednesday announcement, shares in Ping An rose 4.9 percent, to close at 60.50 dollars in Hong Kong, exceeding the stake sale price by 1.50 dollars and signaling that investors were confident the transaction would go ahead. Shares in HSBC rose 1.7 percent, to close at 80 dollars in Hong Kong, and are up about 35 percent this year.

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The New Old Age Blog: For the Old, Less Sense of Whom to Trust

There’s a reason so many older people fall for financial scams, new research suggests. They don’t respond as readily to visual cues that suggest a person might be untrustworthy, and their brains don’t send out as many warning signals that ignite a danger ahead gut response.

The research, published Monday in the Proceedings of the National Academy of Sciences, is the first to show that older adults’ vulnerability to fraud may be rooted in age-related neurological changes.

Specifically, researchers from the University of California, Los Angeles, found that an area in the brain known as the anterior insula was muted when older people looked at photographs of suspicious-looking individuals. This part of the brain activates gut-level feelings that help individuals interpret the reliability of other people and assess potential risks and rewards associated with social interactions.

In one part of the U.C.L.A. study, both younger and older adults were asked to evaluate the trustworthiness of people portrayed in 60 photographs while undergoing brain scans. When the younger adults (21 altogether, from 23 to 46 years of age) labeled a person “not trustworthy,” their anterior insulas lit up. But this wasn’t true for older adults (23 altogether, age 55 to 80).

“The warning signals that convey a sense of potential danger to younger adults just don’t seem to be there for older adults,” said Shelley Taylor, the lead researcher and a psychology professor at U.C.L.A.

In another part of the study, researchers asked 119 older adults (55 to 84 years old) and 24 younger adults (age 20 to 42) to rate people in photographs as trustworthy, neutral or untrustworthy. Signs they were potentially untrustworthy included people with insincere smiles, averted gazes and postures that “leaned away” rather than toward the camera, among others, Dr. Taylor said.

Older adults were equally adept at identifying people judged to be trustworthy or neutral, but much more likely to miss signs of those who may be untrustworthy and view suspicious-looking people as approachable, the study found.

“We believe what’s going on is that older adults have a bias toward positive emotional experience and this keeps them from recognizing negative cues,” Dr. Taylor said.

This so-called “positivity effect” has been documented through research by Laura Carstensen, a professor of psychology and public policy at Stanford University, and it explains why older adults are, on the whole, happier than younger adults.

Asked to comment about the new study, Ms. Carstensen said in an e-mail that it was “very well done,” and observed that for older adults, “there are likely many benefits of looking on the bright side. However, there are likely some contexts where looking away from the negative and focusing on the positive is not good,” including financial scams and fraud.

Alexander Todorov, a professor of psychology at Princeton University, called the findings “interesting,” but warned that “there is an implicit assumption that these trustworthiness evaluations based on facial appearance are accurate. This is far from clear.”

Dr. Taylor became acutely aware of financial fraud practiced on the elderly almost 20 years ago when her elderly father handed $17,000 to two men who approached him on the street and walked with him to his bank.

“I got descriptions of the two men from someone who lived nearby — one had few teeth, both were dressed in a slovenly manner, and they’d been seen sleeping in doorways and were using the drug rehab center nearby,” the professor explained in an e-mail.

In other words, they would have been viewed skeptically by most people, but weren’t seen in that light by Dr. Taylor’s father.

Statistics show that financial exploitation of the elderly is on the rise. According to a study published last year by the MetLife Mature Market Institute and the National Committee for the Prevention of Elder Abuse, elder financial abuse — everything from fraudulent sweepstakes to bank accounts emptied out by guardians — totaled $2.9 billion in 2010, a 12 percent increase from only two years before.

Earlier this year, the Government Accountability Office weighed in on the issue, noting the inadequacy of existing safeguards and calling for a new national strategy to address the problem.

On Tuesday my colleague Paula Span wrote about a just-published consumer guide, “Protect Your Pocketbook,” intended for older adults and families who wanted to understand what put them at risk, how to prevent fraud, and where to turn for help.

As for Dr. Taylor, she advises that seniors never agree on the spot to a phone offer or a pitch from a door-to-door salesman. “Either hang up or wait and get someone else involved in your life to evaluate what’s being presented,” she said.

With financial fraud, almost half the time seniors end up being taken in by a caretaker or someone posing as a friend. “Make absolutely sure that you’ve carefully checked out the people taking care of an older relative,” or any “surprising new friend” that you’ve never heard of before that’s now on the scene, she tells family members.

Read More..

The New Old Age Blog: For the Old, Less Sense of Whom to Trust

There’s a reason so many older people fall for financial scams, new research suggests. They don’t respond as readily to visual cues that suggest a person might be untrustworthy, and their brains don’t send out as many warning signals that ignite a danger ahead gut response.

The research, published Monday in the Proceedings of the National Academy of Sciences, is the first to show that older adults’ vulnerability to fraud may be rooted in age-related neurological changes.

Specifically, researchers from the University of California, Los Angeles, found that an area in the brain known as the anterior insula was muted when older people looked at photographs of suspicious-looking individuals. This part of the brain activates gut-level feelings that help individuals interpret the reliability of other people and assess potential risks and rewards associated with social interactions.

In one part of the U.C.L.A. study, both younger and older adults were asked to evaluate the trustworthiness of people portrayed in 60 photographs while undergoing brain scans. When the younger adults (21 altogether, from 23 to 46 years of age) labeled a person “not trustworthy,” their anterior insulas lit up. But this wasn’t true for older adults (23 altogether, age 55 to 80).

“The warning signals that convey a sense of potential danger to younger adults just don’t seem to be there for older adults,” said Shelley Taylor, the lead researcher and a psychology professor at U.C.L.A.

In another part of the study, researchers asked 119 older adults (55 to 84 years old) and 24 younger adults (age 20 to 42) to rate people in photographs as trustworthy, neutral or untrustworthy. Signs they were potentially untrustworthy included people with insincere smiles, averted gazes and postures that “leaned away” rather than toward the camera, among others, Dr. Taylor said.

Older adults were equally adept at identifying people judged to be trustworthy or neutral, but much more likely to miss signs of those who may be untrustworthy and view suspicious-looking people as approachable, the study found.

“We believe what’s going on is that older adults have a bias toward positive emotional experience and this keeps them from recognizing negative cues,” Dr. Taylor said.

This so-called “positivity effect” has been documented through research by Laura Carstensen, a professor of psychology and public policy at Stanford University, and it explains why older adults are, on the whole, happier than younger adults.

Asked to comment about the new study, Ms. Carstensen said in an e-mail that it was “very well done,” and observed that for older adults, “there are likely many benefits of looking on the bright side. However, there are likely some contexts where looking away from the negative and focusing on the positive is not good,” including financial scams and fraud.

Alexander Todorov, a professor of psychology at Princeton University, called the findings “interesting,” but warned that “there is an implicit assumption that these trustworthiness evaluations based on facial appearance are accurate. This is far from clear.”

Dr. Taylor became acutely aware of financial fraud practiced on the elderly almost 20 years ago when her elderly father handed $17,000 to two men who approached him on the street and walked with him to his bank.

“I got descriptions of the two men from someone who lived nearby — one had few teeth, both were dressed in a slovenly manner, and they’d been seen sleeping in doorways and were using the drug rehab center nearby,” the professor explained in an e-mail.

In other words, they would have been viewed skeptically by most people, but weren’t seen in that light by Dr. Taylor’s father.

Statistics show that financial exploitation of the elderly is on the rise. According to a study published last year by the MetLife Mature Market Institute and the National Committee for the Prevention of Elder Abuse, elder financial abuse — everything from fraudulent sweepstakes to bank accounts emptied out by guardians — totaled $2.9 billion in 2010, a 12 percent increase from only two years before.

Earlier this year, the Government Accountability Office weighed in on the issue, noting the inadequacy of existing safeguards and calling for a new national strategy to address the problem.

On Tuesday my colleague Paula Span wrote about a just-published consumer guide, “Protect Your Pocketbook,” intended for older adults and families who wanted to understand what put them at risk, how to prevent fraud, and where to turn for help.

As for Dr. Taylor, she advises that seniors never agree on the spot to a phone offer or a pitch from a door-to-door salesman. “Either hang up or wait and get someone else involved in your life to evaluate what’s being presented,” she said.

With financial fraud, almost half the time seniors end up being taken in by a caretaker or someone posing as a friend. “Make absolutely sure that you’ve carefully checked out the people taking care of an older relative,” or any “surprising new friend” that you’ve never heard of before that’s now on the scene, she tells family members.

Read More..

Law Students in Austria Challenge Facebook Privacy Policy





BERLIN — An Austrian student group said Tuesday that it planned to challenge Facebook’s privacy policies in Irish court, alleging that the social networking giant had failed, despite repeated requests and formal complaints made by its members, to adapt to the restrictions of European data protection law.







Herwig Prammer/Reuters

Max Schrems, a student at the University of Vienna, said Facebook’s privacy policies were too broad and violated European law.







The group, which calls itself Europe vs. Facebook, said it would begin collecting donations to challenge the policy in Ireland, where the company’s European business is incorporated. Max Schrems, an Austrian law student at the University of Vienna who organized the effort, said Facebook had no interest in adapting its service to meet stricter European privacy requirements.


“We have been pursing this for more than a year with Facebook, but the company has done only about 10 percent of what we had asked them to do,” said Mr. Schrems, 25. “Therefore, we are preparing to go to court.”


Facebook, in a statement, said its European privacy policy had been vetted and approved by Irish regulators and was in compliance with European law.


“The way Facebook Ireland handles personal data has been subject to thorough review by the Irish Data Protection Commissioner over the past year,” the company said. “Nonetheless, we have some vocal critics who will never be happy whatever we do and whatever the D.P.C. concludes.”


Mr. Schrems’s group, which he said was made up of about 10 students at the University of Vienna, filed 22 complaints in 2010 with the Office of the Data Protection Commissioner in Ireland, which regulates Facebook’s European business because it is incorporated there.


As a result of those complaints, the regulator conducted a public audit of Facebook’s privacy policies. In September it announced an agreement with the company that required, among other changes, that Facebook shorten the time it retained consumer data and refrain from building a photo archive on individuals without their prior consent.


But Mr. Schrems said in an interview that Facebook was still violating European law in many areas, including a requirement that Facebook provide users who request it with a full copy of all the data the company has collected on them. Mr. Schrems, a Facebook user since 2007, said he requested his own summary file from Facebook in 2010.


The company, whose global headquarters is in Menlo Park, California, responded by creating a self-service tool for users to extract the data, which Mr. Schrems said supplied him only with information going back to 2010. In addition, he alleged that Facebook’s privacy policy, which users are required to agree to before they can use the service, is too broad and violates European law.


“It is basically a collection of American legalese, which is intentionally vague and gives the company adequate leeway to do basically anything they want with your data,” Mr. Schrems said.


Thilo Weichert, the data protection supervisor for the German state of Schleswig-Holstein, which has also brought legal action against Facebook, said he supported the Austrian student group’s efforts.


“Facebook’s policy is much too vague and broad and does not conform with German or European law,” Mr. Weichert said in an interview. “We think that European privacy officials need to take common action on this.”


Mr. Weichert issued an administrative order in August 2011 that barred businesses in the state, which is located along Germany’s northern border with Denmark, from using Facebook’s social plug-ins like the Like button and Fan pages. The rationale for the order: Those applications collect information on users without their consent by inserting cookies, which track individual computers, through a user’s Web browser.


In November of last year, Mr. Weichert sued several local business organizations, including the state’s own Industrie- und Handelskammer, the equivalent of the local chamber of commerce, for creating their own fan pages on Facebook. The chamber and businesses that have not been identified have challenged that suit, which is pending in court in Kiel.


The privacy policies of Facebook, Google and some other U.S.-based Web companies have come under increasing criticism in Europe.


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Typhoon Said to Have Killed Hundreds in Philippines


Erik De Castro/Reuters


Residents transported the body of victim in the southern Philippines on Wednesday.







MANILA —Rescue teams were trying to reach isolated villages in the southern Philippines on Wednesday after a powerful out-of-season typhoon tore through the region, leaving more than 270 people dead, officials said.









NASA

Typhoon Bopha moved toward the Philippines on Monday.






Karlos Manlupig/Associated Press

Relatives mourned in New Bataan on Wednesday.






Karlos Manlupig/Associated Press

Residents assessed the damage to their homes on the southern Philippine island of Mindanao on Tuesday after a typhoon struck.






Typhoon Bopha packed winds of up to 100 miles per hour when it struck Tuesday, bringing torrential rains that flattened entire villages, leaving thousands homeless, as well as washing out roads and bridges needed by rescue personnel trying to reach stricken regions.


A national disaster official, Benito Ramos, said at a news conference Wednesday afternoon that 274 deaths had been confirmed, with 339 people known to be injured and 279 missing.


The storm was weakening and leaving the Philippines on Wednesday. The Philippines is hit by more than 20 powerful tropical storms per year, but Bopha struck remote communities off the usual storm path that are not accustomed to such strong typhoons.


In December of last year, Tropical Storm Washi killed more than 1,200 people and left hundreds of thousands homeless. Officials this year called for mandatory early evacuations of vulnerable communities.


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Generic Drug Makers Facing Squeeze on Revenue


They call it the patent cliff.


Brand-name drug makers have feared it for years. And now the makers of generic drugs fear it, too.


This year, more than 40 brand-name drugs — valued at $35 billion in annual sales — lost their patent protection, meaning that generic companies were permitted to make their own lower-priced versions of well-known drugs like Plavix, Lexapro and Seroquel — and share in the profits that had exclusively belonged to the brands.


Next year, the value of drugs scheduled to lose their patents and be sold as generics is expected to decline by more than half, to about $17 billion, according to an analysis by Crédit Agricole Securities.“The patent cliff is over,” said Kim Vukhac, an analyst for Crédit Agricole. “That’s great for large pharma, but that also means the opportunities theoretically have dried up for generics.”


In response, many generic drug makers are scrambling to redefine themselves, whether by specializing in hard-to-make drugs, selling branded products or making large acquisitions. The large generics company Watson acquired a European competitor, Actavis, in October, vaulting it from the fifth- to the third-largest generic drug maker worldwide.


“They are certainly saying either I need to get bigger, or I need to get ‘specialer,’ ” said Michael Kleinrock, director of research development at the IMS Institute for Healthcare Informatics, a health industry research group. “They all want to be special.”


As one consequence of the approaching cliff, executives for generic drug companies say, they will no longer be able to rely as much on the lucrative six-month exclusivity periods that follow the patent expirations of many drugs. During those periods, companies that are the first to file an application with the Food and Drug Administration, successfully challenge a patent and show they can make the drug win the right to sell their version exclusively or with limited competition.


The exclusivity windows can give a quick jolt to companies. During the first nine months of 2012, sales of generic drugs increased by 19 percent over the same period in 2011, to $39.1 billion from $32.8 billion, according to Michael Faerm, an analyst for Credit Suisse. Sales of branded drugs, by contrast, fell 4 percent during the same period, to $174.2 billion from $181.3 billion.


But those exclusive periods also make generic drug makers vulnerable to the fickle cycle of patent expiration. “The only issue is it’s a bubble, too,” said Mr. Kleinrock. He said next year, the generic industry would enter a drought that was expected to last about two years.  Of the drugs that are becoming generic, fewer have exclusivity periods dedicated to a single drug maker.


In 2013, for example, the antidepressant Cymbalta, sold by Eli Lilly, is scheduled to be available in generic form. But more than five companies are expected to share in sales during the first six months, according to a report by Ms. Vukhac.


Heather Bresch, the chief executive of Mylan, the second-largest generics company in the United States, said Wall Street analysts were obsessed with the issue. “I can’t go anywhere without being asked about the patent cliff, the patent cliff, the patent cliff,” she said. “The patent cliff is one aspect of a complex, multilayered landscape, and I think each company is going to face it differently.”


Jeremy M. Levin, the chief executive of Teva Pharmaceuticals, the largest global maker of generic drugs, agreed. “The concept of exclusivity — where only one generic player could actually make money out of the unique moment — has diminished,” he said. “In the absence of that, many companies have had to really ask the question, ‘How do I really play in the generics world?’ ”


For Teva, Mr. Levin said, he believes the answer will be both its reach  — it sells 1,400 products, and one in six generic prescriptions in the United States is filled with a Teva product  — and what he says is a reputation for making quality products. That focus will be increasingly important, he said, given recent statements by the F.D.A. that it intends to take a closer look at the quality of generic drugs. Mr. Levin also said he planned to cut costs, announcing last week that he intended to trim from $1.5 to $2 billion in expenses over the next five years.


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The New Old Age Blog: On the Alert for Fraud

Unlike some forms of elder abuse, financial exploitation leaves no visible scars. It is under-reported and hard to prosecute. Adding to the tangled dynamics, the abuser is frequently a family member, increasing the victim’s humiliation and denial.

Better by far to try to prevent financial abuse before it wipes out an older person’s assets and hopes for a secure retirement. Though this has proved easier in theory than in practice — most authorities believe financial exploitation and abuse is actually increasing — vigilance represents a crucial first step.

The National Center on Elder Abuse and the Eldercare Locator (the federal service that helps older adults and caregivers find local programs and agencies) have just published “Protect Your Pocketbook,” a brief consumer guide for families and their older relatives. It maps out risk factors, warning signals and prevention strategies and tells where to turn for help.

You can download it from the Web  or order it online through the Eldercare Locator Web site. Or you can call the Locator at 1-800-677-1116 and ask to have a copy mailed to you.

Holidays, when so many adult children head “home,” tend to spur campaigns of this sort: attempts to integrate potentially painful conversations and questions with feasts and gifts.

I have always wondered about the timing of these discussions — first the pies, then the questions about unexplained bank withdrawals and credit card bills? But it is true that our elders can sound dandy during weekly phone calls, then surprise us with their frailty and their struggles when we are there in person to witness them.

Financial abuse, which I have written about before (see scam prevention advice here, along with a sad story), is only part of the picture, but it is a vital issue.

Apart from the advice in the brochure, we would appreciate hearing from readers who have tackled this problem and can tell us what has worked and what hasn’t.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

The New Old Age Blog: On the Alert for Fraud

Unlike some forms of elder abuse, financial exploitation leaves no visible scars. It is under-reported and hard to prosecute. Adding to the tangled dynamics, the abuser is frequently a family member, increasing the victim’s humiliation and denial.

Better by far to try to prevent financial abuse before it wipes out an older person’s assets and hopes for a secure retirement. Though this has proved easier in theory than in practice — most authorities believe financial exploitation and abuse is actually increasing — vigilance represents a crucial first step.

The National Center on Elder Abuse and the Eldercare Locator (the federal service that helps older adults and caregivers find local programs and agencies) have just published “Protect Your Pocketbook,” a brief consumer guide for families and their older relatives. It maps out risk factors, warning signals and prevention strategies and tells where to turn for help.

You can download it from the Web  or order it online through the Eldercare Locator Web site. Or you can call the Locator at 1-800-677-1116 and ask to have a copy mailed to you.

Holidays, when so many adult children head “home,” tend to spur campaigns of this sort: attempts to integrate potentially painful conversations and questions with feasts and gifts.

I have always wondered about the timing of these discussions — first the pies, then the questions about unexplained bank withdrawals and credit card bills? But it is true that our elders can sound dandy during weekly phone calls, then surprise us with their frailty and their struggles when we are there in person to witness them.

Financial abuse, which I have written about before (see scam prevention advice here, along with a sad story), is only part of the picture, but it is a vital issue.

Apart from the advice in the brochure, we would appreciate hearing from readers who have tackled this problem and can tell us what has worked and what hasn’t.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

Read More..

Oracle Paying Next Year’s Dividends Now, at Low Tax Rate





SAN FRANCISCO (Reuters) — Oracle said on Monday that it would pay more than $800 million in next year’s dividends to shareholders later this month, joining a growing number of companies accelerating such payments or declaring special dividends because of the possibility that income tax rates will rise in 2013.




Dividend payments are taxed at a preferential rate of 15 percent, but taxes could rise as high as 39.6 percent, depending on a taxpayer’s income bracket, if the Bush-era tax cuts expire as scheduled on Dec. 31. Higher income taxpayers will also be subject to a 3.8 percent surcharge on most investment income like dividends to help pay for President Obama’s health care law. That could bring the total possible tax rate on dividends to as much as 43.4 percent.


The Obama administration, which is pushing for higher dividend tax rates, is negotiating with Republicans in Congress over about $600 billion in automatic tax increases and government spending cuts that are scheduled to take effect in January, but no agreement is in sight.


Oracle accelerated second-, third- and fourth-quarter cash dividends totaling 18 cents a share of common stock, equivalent to $867 million, according to Thomson Reuters data.


In some cases, insiders are among the biggest beneficiaries of the special payouts, as well as shifts of regular dividends into 2012 from 2013. Oracle’s chief executive, Larry Ellison, the technology company’s largest shareholder, is entitled to dividends worth $198.9 million, according to Thomson Reuters data. Mr. Ellison did not participate in discussions or vote on the matter, Oracle said in a statement on Monday.


The accelerated dividend will be paid to stockholders of record as of the close of business on Dec. 14, with a payment date of Dec. 21, 2012.


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