Morgan Stanley has been fined $1 million by the SEC for not having proper protection in place to safeguard client data.
On March 12, 2010, Stanley Works officially acquired Black & Decker. The end result was (SWK), currently the largest toolmaker in the United States. The merger paired the leader in consumer and industrial hand tools and security with a leader in power tools. Since then, Stanley has made a continued effort to diversify into higher growth and higher margin businesses, increase emerging market exposure, and shed assets they feel don't fit with that strategy.
iOS 7 (AAPL +2.3%) is now available for download, flat icons and all. Also being released is iTunes 11.1, which adds iTunes Radio and a new Genius Shuffle feature.Developers have been busy making their apps iOS 7-friendly. Apple blogger/fan Pixel Envy has provided a very comprehensive review of the OS.A U.S. carrier source tells Reuters iPhone 5C pre-orders haven't been "overwhelming," and that supply for both the 5S and 5C has disappointed. Multiple reports emerged yesterday of tight 5S inventories.Hit-and-miss Digitimes reports the 5th-gen iPad and retina iPad Mini will join the iPhone 5S in having sapphire home buttons (presumably with fingerprint sensors underneath), and that iPhone 6 will "possibly" feature sapphire touchscreen cover glass.Sapphire is thinner and more scratch-resistant than current cover glass solutions such as Gorilla Glass, but is also much more expensive.Also: Apple chairman and former Genentech CEO Arthur Levinson has agreed to become the CEO of (and an initial investor in) Calico, a Google company set to work on anti-aging technology. Tim Cook provides some high praise for Levinson in the PR.Earlier: iPhone 5S/5C reviews, Morgan Stanley note 7 comments!
Submitted by Mark Grant, author of Out of the Box, “Failure is a state of mind. It's like one of those sand traps an ant lion digs. You keep sliding back. Takes one hell of a jump to get out of it.” -John Steinbeck, The Winter of Our Discontent He didn't make it. I believe that can be said with accuracy. Larry Summers could not make the "one hell of a jump" and so fell back into the trap, renounced his intentions, sent the appropriate frothy note on linen stationary designed more for the public than the man who received it and so was allowed to walk out of the pit relatively unscathed. It had become clear that the President's own political base in the Senate were not going to support Mr. Summer's ascendancy. The flourish of the epees will now retreat and public pronouncements affirming Mr. Summers' noted intellect and fine character will now be brandished about for public viewing. It is a time worn tradition and no reason to change it now. The larger question will be if this will influence the current Fed Chairman so that he cuts back on his taper intentions because of the additional note of uncertainty that is now present in the marketplace. Laurel and Hardy's "A fine kettle of fish," Mr. Bernanke might now recite. The eye of the Press will now turn to Mr. Kohn, Ms. Yellen, who does not seem to have the support of Mr. Obama, and the long, though interesting shot, of Stanley Fischer. Some will also wave the red, white and blue banner at Tim Geithner but his reluctance seems quite real. Not back to square one perhaps but not so far from it. The Drop Dead Day I have answered the question of "WHEN" and it is fast approaching. It is but a scant three days away as the German elections take place. After Ms. Merkel is hailed and wrapped in the finery of European grandeur and the beer and bratwurst have been consumed; watch out. I expect a serious hardening in the German position as all of the quite serious problems of Europe begin show up. You can count the numbers as you like, you can pretend and extend and the sleights of hand have become common place but the real numbers, the real deficits, the real liabilities do not vanish even if the Europeans choose not to count them and so reality eventually arrives and must be reckoned with and it is coming. From under the bed Portugal, Spain, Cyprus and Greece will all scurry about and salt water, labeled insecticide, will not work no matter what it is called. The Pied Piper cannot lead all of these vermin away and troubles aplenty are arriving on the horizon. Then Wednesday is also the scheduled day to vote on Mr. Berlusconi in Italy and Mr. Letta could soon find himself out of a job. The IMF who has kept mostly quiet until the German elections are over may now rear up and demand debt forgiveness in Greece or a refusal to lend so that the ropes may begin to bind around the Continent. Whipsaw There are so many political events, so many financial announcements and Syria still looms large in the background. Mr. Obama appears to be easing into a lame duck presidency far earlier than once thought and the reality of Obamacare will hit Main Street on October 1 which may tip the scales further out of his control. It may not be either the best of times or the worst of times but very volatile times that mark this week. “He saw something that makes a man doubtful of the constancy of the realities outside himself. It was the shocking discovery that makes a man wonder if I've missed this, what else have I failed to see?” -John Steinbeck, The Winter of Our Discontent The yellow flag is out. I advise you not to throw caution to the wind!
Stanley Druckenmiller's World View: "Catastrophic" Entitlement Spending, "Bizarre" & "Illusory" Asset Markets, & Beware The Taper
During an extended interview with Bloomberg TV, billionaire investor Stanley Druckenmiller provided a seemingly fact-based (and non-status-quo sustaining, commission-taking, media-whoring) perspective on a very wide variety of topics. The brief clips below touch the surface, with the detailed annotated transcript below providing details, as Druckenmiller opines on the looming catastrophe in entitlement spending "when you hear about the National debt being $16tn; if you actually took what we promised to seniors and future taxes, present value to both of them, that number is $200tn," why the Fed exit will be a big deal for markets, "it is my belief that QE has subsidized all asset prices and when you remove that, the market will go down," and his changing views on Obama "I was drinking the hope and change Kool-aid... in hindsight, he probably needed more experience for this job." Looking back to the financial crisis, he warns, "...a necessary condition to have a financial crisis, in my opinion, is too loose monetary policy that encourages people to take undue risk and go on the risk curve and do silly things. We should have shut this down in 1998, 1999. The NASDAQ bubble, we should have raised rates, we didn’t. Then we got the implosion." Seniors Are Stealing From Our Young A Looming Catastrophe In Entitlement Spending Fed Choice Totally Matter To Market Is Monetary Policy Too Loose? We have highlighted and underlined the key phrases in our view: Druckenmiller on why his college tour is so important: “It really solidified to me during the sequester period when the whole debate was going on about cutting government spending in our fiscal issues, and that is when I first came to understand the lack of knowledge on this topic, not just from seniors, but future seniors. If you listen to the sequester debate in spending and where the debt is, I find it inconceivable they didn’t know the facts, including I would be surprised if the President knew the facts given the statements he was making. During the sequester, you may remember he said, we are not going to balance the budget on the backs of our seniors. If you look at the situation where we are today, seniors are doing very, very well in the last 30 years. It has been a remarkable accomplishment. And because the mandate went well, the poverty rate is down from 35-percent to 9-percent for seniors. But their wealth is also increasing dramatically. Looking forward, we have a very tough picture because of the demographic situation, seniors about to explode as a portion of the population and the benefits we promised them, there is no way to cover them given the current situation we have.” On whether he blames the voters or politicians for being ignorant and uninformed: “I would say both. This is a country of special interests, as we all know. As we all know, old people vote or seniors vote. They vote consistently and young people don’t. Young people have other interests than say the future economic situation at the age of 20. I sure did. They’re not necessarily focusing on the stuff.” On whether his goal is to get young people out to vote, to vote with their consciences: “It won’t be their conscience. They should be mad as hell. Part of what I’m doing is to inform seniors of the situation… I’m sure they care. Maybe some don’t. But I would bet a lot of money that 85-percent of seniors today, if they knew the numbers were going to go over, they wouldn’t be comfortable with this this what they were leaving to their grandchildren and great-grandchildren.” On what he is most uncomfortable about: *chart discussed is at the 4 minute mark of video “seniors are stealing from our young” “Let’s first set the table and looking at what is going on in the last 35-years. Then I want to get into the demographic problem and why it is so scary from here and why I don’t understand the current dialogue that is taking place over the situation. It is completely uninformed. This chart on the screen is federal government entitlement transfers and percent of government budget outlays. If you go back to 1960 when I was sever years old, about 20-percent of the federal budget government outlays were transfer payments or what we call entitlement. That number has gone up to 72-percent over this 35 year period. The problem with that, first of all, the good news on that, as I said, seniors are much better off, it’s been a tremendous accomplishment, poverty rate is way down for seniors, but these are transfer payments and there is no productive investment or no looking to future coming out of this. If you look at how we get form 20-percent to 70-percent, almost all of that money went to the elderly. If you took an elderly person back in 1960, 40-percent of government outlays per capita went to them. That number is 71-percent all stop where did that come out of? It came out of children, came out of investments and things like education, infrastructure, thing like that. And that crowding out effect creates a problem going forward because these are not productive investments.” On the net worth by age group: *chart discussed is at the 7 minute mark of video “seniors are stealing from our young” “It is important shaping the debate. We have always heard the term, ‘you don’t want to leave the next generation with less than the current generation.’ This chart when it was first shown to me, and it is from the Federal Reserve board survey of consumer finances, it is kind of shocking. Because of the previous chart I showed where these transfer payments have gone primarily to the elderly and have been substantial, look at what has happened. If you are A 29-37 year old in this country, your net worth is less than 29-37 year old in 1983. Those are staggering statistics. This is the first generation where a 30-year old is worth literally is worth less than his parents. If you look at older people, their net worth has doubled over this timeframe. Again, because this money has been transferred. On whether he worries that people will overlook what he is saying because he is a billionaire: “Well, modestly, the way I would answer that is the way I made my money in the industry wasn’t necessarily in stock s. I made most of my money in the bond and currency markets trying to forecast future economic trends and problems that I saw happening. And one thing I’m not very proud of if oyu look at my record, the big years were in bear markets and chaos. I tend to take rate advantage of catastrophes happening in the marketplace. In other words, for whatever reason, maybe I have a dysfunctional personality; I was good at looking around corners and protecting them. And this is much longer a timeframe, but it is the easiest lay-up I have ever seen of something we have got to address and a problem we have got to deal with…My record speaks for itself on forecasting.” On what changed his opinions of President Obama since 2008: “I was drinking the hope and change Kool-aid. I was thinking of a younger generation. I think in hindsight, looking back, he probably needed more experience for this job. I also thought he would be more Clinton-like a move to the center. Clearly, he hasn’t…I am an independent and just hoping one candidate on either side in 2016 shows up.” On what he is doing investing wise: “Not a lot. I don’t want to hedge, but I probably have the smallest positions I’ve had. I had some big decisions earlier in the year. I’m sort of sitting and waiting. There is a lot of uncertainty over who the next fed chairman will be. What their attitude toward the diminution of QE will be. You have the whole Syria thing. I like to be patient and when I see something, go little bit crazy. I just don’t see anything right now. On whether it matters who the next Fed chairman will be: “It totally matters. When you think back of what Paul Volcker, Alan Greenspan and Ben Bernanke have meant to markets, it is pretty naïve to say the next Fed chairman won’t matter. It may not know why it matters and I may not know why, but it is a really, really important appointment.” On what he is doing if he is not completely sitting on cash: “Ok, so my guess is, and I believe the market is topping. The stock market predicted seven out of the last three recessions; I predicted seven out of the last three bear markets. I started in a bear market, so I have a bearish bias. Where I am on the market is if you gave me a stock I really like, I will buy it. If you give me a stock I really hate, I’ll short it. In terms of having some big position, long or show index, or some exposure to the stock market right now, I am lost. I don’t play when I am lost. I know in the future I won’t be lost. On whether other managers can say ‘I’m going to take 2 and 20 and not invest: “I don’t know. The way I always approach a business is, you give me a pile of money and I’m going to try and pound the money for you overtime as best I can. This whole quarterly performance and risk-adjusted stuff invading the hedge fund, I don’t get it. I can’t imagine why anybody would pay two and 20 to what is out there. When I started in the business, there was me, George Soros, Paul Tudor Jones, Bruce Kovner. We were expected to make 20-percent a year in down markets. There was none of this ‘Oh, I’ve got a risk-adjusted return of 8. That is how to two plus 20 came about. On why Hedge Fund managers are less successful: “There are too many, there were eight to ten back then. Somehow, 9000 people are pricing their product off of eight to ten people historic performance. I noticed a lot of the smart early investors and hedge fund clients were leaving, but they were more than replaced by state pension funds, sovereign wealth funds and so far they have been perfectly happy to get returns that our early investors would have never tolerated.” On what else is getting his attention: “I’m very focused on the new fed chairman and I’m perfectly willing to wait a few weeks to find out.” On how close are we right now to a bear market: “As long as the fed is printing money, not very close. That is why the issue of tapering and where we go with it, is so important. I don’t really care whether we got to 70 or 65 in September. But if you tell me QE is going to be removed over nine or twelve month, that is a big deal. It is my belief that QE has subsidized all asset prices and when you remove that, the market will go down.” On what we see in asset prices is illusory: “My first mentor and boss, Dr. Ellison from Pittsburg used to tell me, it takes hundreds of millions of dollars to manipulate a stock up but the minute you have this phony buying stock, it can go down on no volume. It can just re-price immediately. I personally think as long as this game goes on, assets will stay elevated. When he removed that prop, let’s face it, the Fed says they’re targeting asset prices. Those prices can adjust immediately. June was instructive. If you did not believe before the exit was going to be tough, the mere hunt that maybe in three months, if the economy is good, we might go from $85 billion a month to buying $65 Billion a month, cause that kind of havoc and risk around the world./ How in the world does anyone think when the actual exit happens that prices are not going to respond? It is silly.” On what asset class has been manipulated most because of QE: “I would say stocks. I have been really wrong on the bond market in the last three or four months. I have been waiting for this decline for two years and completely missed it. First of all, the stuff we were talking about earlier in the show, that is too far down the road in my opinion, for the bond market to pay attention. I have always found in bonds, if you can predict a relative change in the economy, relative to consensus, you will make money in bonds if you get that equation right… Yes [even in the world of QE]. Two or three months ago, I thought people were overly optimistic on the U.S. economy. It is my judgment that assessment turned out to be correct. But bonds went down anyway for not economic reason because we have the unwind going on. For whatever reason. While I anticipated down the road, I did not think it would happen while the economy was softening.” On whether he is concerned were too focused on Syria to focus on the economy: “I think we will always be focused on the economy. I am a little concerned that the Fed chairmanship could be hung up. It has become a complete circus. You have economists and politicians and newspaper people pining on it. My God, Obama should just go in the rose garden and appoint whoever he wants to appoint. That is his privilege and his job.” On how his investment philosophy reflects his personal views: “I wouldn’t say it is my investment philosophy, it is just a concern I have. Let me say when Al Hunt said this is easily fixable, I think it is a mistake most people make in investments. They look at the present instead of the future. If you analyze the debt is stated out there, it looks like it is fixed. We do a little change here and change there. That is not the case. Those charts we showed earlier had no demographics in them. What is going to happen now, because 1947 is when the baby boom start and fertility rates were over three than and are two now, 11,000 seniors every day come and we will have 11,000 new seniors. This will make the numbers of seniors who are getting entitlements explode relative to the working population. Instead of having 5 workers supporting entitlements, you will have 2.5 workers, and that is not on the government sheet. When you hear about the National debt being $16 Trillion or $12 Trillion, if you actually took what we promised to seniors and future taxes, present value to both of them, that number is $200 Trillion. That is the problem when you take the debt of future payments to seniors and put them on the balance sheet, and for god’s sake, they should be on the balance sheet. I mentioned the can kicks back organization. They sponsored a bill in Congress, the Inform Act, which will bring that.” “True transparency. We need to at least get that on the books so people see it. The other thing that annoys me on this problem and then we can move on, all of these solutions, even Paul Ryan who got absolutely lambasted pushing grandma off the cliff, even he said, let’s exempt everybody 55 and older. They already have this huge share of the pie. The problem is compounded away. If you don’t address it today, the problem is going to be much bigger in 10 years, 20 years, 30 years.” On how he looks back on the last five years since the financial crisis: “So I find the situation somewhat bizarre. It is a little bit colored by how I thought we got into this. I actually did well in the financial crisis because I believe this was the reason we got into it. I’m not saying it was the major reason, but a necessary condition have a financial crisis, in my opinion, is too loose monetary policy that encourages people to take undue risk and go on the risk curve and do silly things. We should have shut this down in 1998, 1999. The NASDAQ bubble, we should have raised rates, we didn’t.”
White House praises Russian co-operation over Syrian weapons crisis before key talks get under way in Geneva on ThursdayThe US has welcomed what it called "very specific" Russian proposals to secure the handover of Syria's chemical weapons before key talks in Geneva on Thursday.Placing its faith in Moscow's leverage over its Syrian ally, the White House urged patience and said it was increasingly confident that its Kremlin partners were acting in good faith by "putting their prestige on the line"."We have seen more co-operation from Russia in the last two days than we have heard in the last two years," said White House spokesman Jay Carney."The proposal they have put forward is very specific and the Syrian reaction is a total about-face. This is significant."The sudden thaw in White House attitudes toward Russia has met with scepticism in Washington, where many see it as an excuse for Barack Obama to avoid defeat in Congress over military action against Syria. A speech by Obama to the American people on Wednesday night was criticised by hawkish Republicans after it called for a suspension of Senate attempts to pass a resolution authorising US strikes.The White House insisted the Russian offer was genuine and a direct result of the pressure it had put on Syria. "There is no question that the credible threat of US force helped bring us to this point," Carney said. "By making this proposal Russia has, to its credit, put its prestige on the line when it comes to a close ally."But writing on Wednesday night in the New York Times, Vladimir Putin drew contrast between Russia's approach and the Obama administration's talk of military intervention – something the Russian president warned could "increase violence and unleash a new wave of terrorism".Syria was not witnessing a battle for democracy but "an armed conflict between government and opposition in a multi-religious country", Putin said, in an editorial repeating assertions that rebels rather than the government might have used chemical weapons, "to provoke intervention by their powerful foreign patrons", and may be planning further attacks, even against Israel."[An American attack] could undermine multilateral efforts to resolve the Iranian nuclear problem and the Israeli-Palestinian conflict and further destabilise the Middle East and North Africa. It could throw the entire system of international law and order out of balance."Putin welcomed Obama's consideration of the Russian-backed plan for Syria to hand over its chemical weapons and said his relationship with the US president was marked by "growing trust". But he warned: "It is alarming that military intervention in internal conflicts in foreign countries has become commonplace for the United States. Is it in America's long-term interest? I doubt it."Millions around the world increasingly see America not as a model of democracy but as relying solely on brute force, cobbling coalitions together under the slogan: 'You're either with us or against us.'"Separate discussions over a UN security council resolution were taking place in New York on Wednesday. The talks in Geneva between John Kerry and Russian foreign minister Sergey Lavrov will not cover the wording of any resolution. But the US tried to play down a potential rift over whether it should contain the threat of military action if Syria fails to comply.The White House hinted the Geneva talks would go on for at least two days and refused to discuss the Russian proposal which it received on Wednesday."Each side will bring technical experts so I will expect this will take some time," Carney said. "There are communications ongoing and papers exchanged but we are not at the stage of putting out a public piece of paper."The talks will need to resolve differences between western powers and Russia over whether the disarmament process should be backed by a threat of force if the Syrian government reneges on the timetable.Diplomats also said that it was unikely that a UN security council vote would take place before the publication of a report by UN weapons inspectors on the suspected chemical weapons attack in rebel-held eastern Damascus on 21 August. That report is expected some time next week.Meanwhile, US, British and French diplomats continued to meet at the UN headquarters on Wednesday to discuss a French draft resolution that would give Bashar al-Assad's regime 15 days to produce an "exhaustive, complete and definitive declaration of the locations, amount and types of all items related to its chemical warfare programme".The draft, according to a copy obtained by Reuters, would then order "immediate on-site inspections of Syria's chemical, biological and related vehicles". The full security council was due to meet later on Wednesday.The Syrian government has acknowledged it agreed with Russia that it would sign the 1993 chemical weapons convention, deliver a full declaration of its arsenal and its locations, and provide access to UN, Russian and other inspectors. Kerry said that the US was still pushing for a UN resolution to bolster the plan and which would punish Syria if it delayed or broke off the disarmament process. But he indicated he was prepared to listen to the Russian point of view."We need a full resolution from the security council in order to have confidence that this has the force that it ought to have. That's our belief, and obviously the Russians are at a slightly different place. We'll have to see where we get to. I'm not going to negotiate this out in public," the secretary of state said in answer to questions on an online chat forum.The president of France, François Hollande, also signalled flexibility on the wording of a resolution. A statement from the presidency, released after a meeting of Hollande's defence council, said: "The president emphasised France's determination to explore all avenues at the United Nations security council, in order to enable actual and verifiable control of the chemical weapons present in Syria as soon as possible."France's foreign minister, Laurent Fabius, is due in Moscow next Tuesday to discuss the issue with Lavrov and may visit Beijing on Monday for talks with the Chinese government, which has been non-committal on France's draft resolution.In a televised address to the American people on Tuesday night, Obama laid a path towards a possible diplomatic resolution to the impasse, He pledged to work directly but insisted military strikes remained a possibility.However, in what were his most doveish remarks since his administration began briefing two weeks ago that a strike was imminent, Obama said he would wait for the United Nations inspectors to complete their report on the 21 August chemical attacks outside Damascus before taking further action. He said there were "encouraging signs" of a political resolution.In London, officials revealed that Britain approved the export to Syria of more chemicals that could be used to make sarin, a powerful nerve agent, than had previously been acknowledged.Five export licences were approved for the sale of more than 4,000kg of sodium fluoride between 2004 and 2010. They were on top of exports approved last year of sodium fluoride and potassium fluoride under licences but subsequently revoked on the grounds they could be used as precursor chemicals in the manufacture of weapons.The five licences were revealed by Vince Cable, the business secretary, in a letter to Sir Robert Stanley, chairman of the Commons committee on export controls.Additional reporting by Paul Lewis in WashingtonSyriaUS foreign policyBarack ObamaRussiaBashar al-AssadMiddle East and North AfricaArab and Middle East unrestDavid CameronUnited NationsChemical weaponsDan RobertsJulian Borger theguardian.com © 2013 Guardian News and Media Limited or its affiliated companies. All rights reserved. | Use of this content is subject to our Terms & Conditions | More Feeds
Sarepta Therapeutics' (SRPT) CEO Chris Garabedian updates investors on eteplirsen at the Morgan Stanley healthcare conference.Garabedian isn't impressed with Prosensa (RNA) and GlaxoSmithKline's (GSK) DEMAND-2 study — the bar for assessing dystrophin production was "low," he says. (More on drisapersen here)SRPT will meet with the FDA in October to discuss chemistry, manufacturing and controls requirements for the planned NDA. The planned H1 2014 FDA filing depends upon whether the regulator shows a "reasonable amount of flexibility" regarding the requirements.The company will take new samples in order to give the FDA additional dystrophin production data to work with.More here from Adam Feuerstein. Post your comment!
Today at the White House, Secretary of the Interior Sally Jewell announced the members of the Advisory Council to the Presidential Task Force on Wildlife Trafficking. As directed by the Executive Order on Combating Wildlife Trafficking that the President signed on July 1, the Advisory Council is comprised of knowledgeable private-sector leaders, representatives of nonprofit organizations, and former government officials, who will advise and assist the Presidential Task Force, including as it works to develop a National Strategy for Combating Wildlife Trafficking. The members of the Advisory Council named today are: Judith McHale (Chair), President and Chief Executive Officer, Cane Investments, LLC David Barron, Chairman of the Board, International Conservation Caucus Foundation Patrick Bergin, Chief Executive Officer, African Wildlife Foundation Tod Cohen, Vice President and Deputy General Counsel of Global Government Relations, eBay Inc. David Hayes, Distinguished Visiting Lecturer of Law, Stanford Law School Carter Roberts, President and Chief Executive Officer, World Wildlife Fund Cristián Samper, President and Chief Executive Officer, Wildlife Conservation Society John Webb, Former Chief of the Environmental Crimes Section, Department of Justice Alternates: Crawford Allen, Senior Director, TRAFFIC Stanley Asah, Assistant Professor, University of Washington Marcus Asner, Partner, Arnold & Porter LLP Susan Lieberman, Former Director of the Global Species Program, WWF-International The United States remains strongly committed to combating wildlife trafficking, to assisting foreign nations in building capacity to combat wildlife trafficking, and to assisting in combating transnational organized crime. Learn more about our efforts here. Read the President’s Executive Order on Combating Wildlife Trafficking here.
"When I was interviewing [job candidates] at Morgan Stanley, if I got a female candidate — because it's banking and you need to be aggressive, you need to be tough — if she played, like, ice hockey, done. My daughter's playing, and I'm just a big believer in kids learning to be confidently aggressive, and I think that plays out in life assertiveness." I met Madeline while studying 95 families with elementary school-age children who compete in chess, dance, and soccer — research that is the basis for my new book, Playing to Win: Raising Children in a Competitive Culture. I label the lessons and skills that parents hope their children gain from participating in competitive activities "Competitive Kid Capital." The word "capital" applies, because many parents believe that the acquisition of certain character traits associated with vigorous competition will set their daughters up to be the leaders of tomorrow. In particular, as I talked with these parents about the skills and lessons they saw their children gaining from such activities, five themes emerged: (1) internalizing the importance of winning, (2) bouncing back from a loss to win in the future, (3) learning how to perform within time limits, (4) learning how to succeed in stressful situations, and (5) being able to perform under the gaze of others. One of the questions that interested me was how parents of girls in particular make choices between the three activities, deciding which is best suited to building Competitive Kid Capital for a new generation of women leaders. Madeline also told me, "We have no illusions that our [nine-year-old] daughter is going to be a great athlete. But the team element [is important]... That ability to work on a team was a crucial part of our hiring process. So it's a skill that comes into play much later. It's not just about ball skills or hand-eye coordination." Sports are important in American upper-middle-class culture. Historically women from upper-class families were most focused on the arts; but today athletics have become especially important for these women. Two studies, one by the Women's Sports Foundation and the other by the Oppenheimer Foundation, found that 82 percent of executive businesswomen played organized sports in middle school and high school and that 80 percent of female executives in Fortune 500 companies identified themselves as competitive tomboys during childhood. The Oppenheimer study also found that while 16 percent of women describe themselves as athletic, when you look at the responses of women who earn over $75,000 annually, the number rises to about 50 percent. These findings are consistent with the work of economist Betsy Stevenson on Title IX, which finds that participation in high school sports increases the likelihood that a girl will attend college, enter the labor market, and enter previously male-dominated occupations. Given this, it's not surprising that moms like Madeline, competing themselves in the business world, seek out sports for their daughters — they know firsthand how important these experiences can be. But I also saw the same decisions being made by credentialed moms who opted out of the corporate world — and certainly no less dedication to capital-building. Take Lois, who is in her early forties. She is married with two young girls, one in third grade and the other in kindergarten. Her husband is an ER doctor and she is a former banker who opted out of the workforce to focus more of her time and energy on getting pregnant after struggling with infertility, which she attributed to stress from work. When you meet Lois you quickly realize that she is constantly fiddling with the BlackBerry glued to her palm or ear as she arranges her daughters' classes, appointments, and play dates. Instead of managing employees and clients, Lois micromanages her daughters' lives. Lois regularly attends a Parenting Mommy Group in an area that is not close to her home; she is willing to travel because she likes this particular group's discussions about childhood, competition, and activities. She also told me about her conversations with psychologists: "Raising kids is a big experiment and I won't know till later [if I did it right]. I have my own therapist ... and she is very suspicious about chess in particular because it puts rewards on achieving things rather than on the experience of it." All these meetings and discussions occur in between shuttling her girls from chess tournaments to figure skating lessons, tennis classes, and private Hebrew tutoring. When asked what she wants for her eldest, Lois replies simply, "I want her to be happy and balanced and not neurotic like me, obviously." While all the moms I met want their children to be happy, they also think that being organized, competitive, and even sometimes a little neurotic, is the key to getting ahead in the business world. And that's a cornerstone to how they are raising their daughters to succeed — by finding ways for them to acquire competitive capital while they're young. I look forward to seeing the studies that will be published some thirty years from now ...
LA Galay were back at the White House to celebrate another championship season with President Barack Obama along with ice hockey outfit LA Kings, making their first visit to 1600 Pennsylvania Avenue. The Galaxy retained their Major League Soccer Cup in 2012 as David Beckham bowed out with silverware while the Kings won their first Stanley Cup. Obama voiced his appreciation not just of the team's successes last year, but also their community work. "We found out that both these teams are full of some pretty stand-up players and coaches. They’re out in the community year-round. They’re changing lives, they’re making a difference," Obama beamed. Obama shows off his heading skills at the White House "As Coach Arena of the Galaxy says, 'The soccer is very much secondary. If we can have an impact on the lives of young kids, we want to be a part of that.'" Obama expressed his "hearty congratulations" to both teams and lauded their "pretty good comeback" stories. The Galaxy triumphed despite an injury-plagued season and the Kings became the first hockey side in NHL history to win the Stanley Cup after entering the play-offs as an eighth seed.
Blackstone and Carl Icahn publish letters to Dell's ([[DELL]] +3.1%) board outlining their proposals. Blackstone says it's offering "greater than $14.25 in cash per share" to Dell shareholders who wish to sell, and is working with Morgan Stanley and others to secure debt financing. Icahn proposes $5B in equity financing (inc. his existing stake) to go with $5.2B in new debt, a $1.7B factoring receivable facility, and Dell's $7.4B cash balance. Dell admits the proposals could be superior to Silver Lake's. Shares are at $14.58. (previous)
and Carl Icahn publish letters to Dell's (DELL +3.1%) board outlining their proposals. Blackstone says it's offering "greater than $14.25 in cash per share" to Dell shareholders who wish to sell, and is working with Morgan Stanley and others to secure debt financing. Icahn proposes $5B in equity financing (inc. his existing stake) to go with $5.2B in new debt, a $1.7B factoring receivable facility, and Dell's $7.4B cash balance. Dell admits the proposals could be superior to Silver Lake's. Shares are at $14.58. (previous) Post your comment!