BH&F Blog - Burke, Harvey and Frankowski LLC

Goldman Accused Of Naked Short Selling

2008-11-19T08:00:00.003-06:00

Pierre Paulden and Caroline Salas of Bloomberg report that investors in the $591 billion high- yield, high-risk loan market are accusing Goldman Sachs Group, Inc. of naked short selling to profit from record price declines. At least two fund managers complained verbally to officials of the Loan Syndications and Trading Association, saying they believe Goldman helped drive down prices by using the technique, according to people with knowledge of the objections. New York- based Goldman is acting against its clients by trying to profit at their expense, the investors said. A $171 billion drop in the value of the loans in the past year is pitting banks against investing clients on assets once considered so safe they typically traded at par. The drop exposed flaws in an unregulated market where trades can take from several days to months to settle and banks may have information unavailable to investors. In a naked-short transaction, a firm would sell debt it didn’t already own, betting the price will fall before it purchases the loan and delivers it to the buyer.

To read the full article, click here.

If you have questions regarding this or any other investment concerns, please contact Burke, Harvey & Frankowski, LLC or go to bhflegal.com.

Morgan Keegan Bond Arbitration Losses May Exceed $200 Million

2008-11-18T16:34:00.003-06:00

Aboutlawsuits.com reports that over 1,000 investors have filed FINRA arbitration cases against Morgan Keegan to recover losses suffered in a number of bond funds managed by the regional brokerage firm, some of which have lost up to 95% of their value since mid-2007. According to Morgan Keegan could ultimately end up paying over $200 million to resolve these cases. The Morgan Keegan arbitration claims allege that investors were not properly informed about the risk associated with the firm’s bond funds, and the extent to which the funds were invested in risky mortgage backed securities, primarily involving the subprime mortgage market which began to collapse in late 2007. The Morgan Keegan bond funds, such as RMK Select High Income Fund, RMK Select Intermediate Bond Fund, RMK High Income Fund, RMK Multi-Sector High Income Fund, RMK Advantage Income Fund and RMK Strategic Income Fund, were sold to investors as relatively conservative investment options. However, the arbitration claims allege that the fund managers violated the objectives outlined in the prospectuses, and exposed investors to a level of risk which they would not have agreed to accept if they had been fully informed of the circumstances surrounding the assets held by the funds.

To read full article, click here.

Regions Morgan Keegan Hit With Arbitration Claims

2008-11-12T09:05:00.002-06:00

Newsinferno.com reports that Regions Morgan Keegan is facing an avalanche of arbitration claims over its failed bond funds. The first wave of Morgan Keegan arbitration hearings is scheduled to begin later this year, with more to follow early next year. Plaintiff’s lawyers say 1,000 to 1,500 arbitration cases ultimately could be filed against Morgan Keegan, with potential damages surpassing $200 million. Regions Morgan Keegan is the investment banking and securities division of Regions Financial Corp, the largest banking system in middle Tennessee. Since 2007, the firm’s Regions Morgan Keegan Select Intermediate Bond Fund and Regions Morgan Keegan Select High Income Fund lost up to 95 percent of their value, thanks to losing bets on high-risk collateralized debt obligations.

To read full article, click here.

Fighting Disability Insurance Denial

2008-11-07T12:44:00.002-06:00

You probably purchased long-term disability insurance to gain some peace of mind in the event of an injury, illness, or other medical condition that might prevent you from working. So it can be quite a shock when a long-term disability insurance claim you believe to be valid is denied.

You do have a right to appeal a long-term disability denial and in some cases you have to. For example, if your long-term disability policy is governed by Employee Retirement Income Security Act (ERISA) (most group insurance policies are), you have to exhaust your administrative remedies before going to court. The catch is, if you do go to court, you can’t introduce new evidence in your case. A court will only look at whether the appeals process was “arbitrary and capricious” based on the evidence provided at the time of the appeal. This can be a tough thing to prove, so it’s important to put all your favorable evidence and arguments on the record at the appeals stage. It’s very important to get an attorney at the appeals stage and you should even consider seeking legal advice when you file a claim. Our attorneys are skilled in reviewing long-term disability insurance policies and denial letters.

It’s important to understand some of your key long-term disability policy insurance terms in fighting a long-term disability denial. If it’s an “own occupation” policy you need to show that you’re unable to perform the material and substantial duties of your own job. If it’s an “any occupation” policy, you need to show that you are unable to perform with reasonable continuity the material duties of any job.

At Burke, Harvey & Frankowski, LLC, we commonly see disputes over whether an injury, illness or condition, really prevents someone from performing the “material” duties of a job. It’s important to first establish what the material duties of your job are (or any job, in the case of an “any occupation” policy). It’s also important to document your symptoms and to show how your symptoms affect your ability to perform these material duties. The more evidence you can provide, the stronger your case will be.

However, finding this evidence can be particularly problematic in some cases, such as cases involving mental illness, fibromyalgia, back pain, and chronic fatigue. Further, your primary care provider may not be the best qualified to show how these illnesses affect your ability to perform on the job. For example, if you have fibromyalgia, a neurologist may be better able to document your case than a doctor who specializes in internal medicine. The appropriate specialist also may help identify the best medical tests to support your case. Our attorneys can help you work with your physician and the appropriate specialist(s) to get the best evidence for your case.

You can fight a long-term disability benefit denial, but you’ll need the help of a qualified long-term disability attorney. The attorneys at Burke, Harvey & Frankowski, LLC have expertise in fighting long-term disability benefit denials and we are here to help.

Shareholders Lose More Than $500 Million In AIG Scam

2008-11-07T09:39:00.002-06:00

John Christoffersen of the AP reports that a federal judge has ruled that shareholders of American International Group Inc. lost more than $500 million as a result of a scheme to manipulate the financial statements of the world's largest insurance company. The ruling Friday by Judge Christopher Droney means five former insurance executives convicted of the scheme could face up to life in prison under advisory sentencing guidelines. Four former executives of General Re Corp. and a former executive of AIG were convicted in February of conspiracy, securities fraud, mail fraud and making false statements to the Securities and Exchange Commission.

To read the full article, click here.

Annuity Fraud Help For Florida Senior

2008-11-07T09:25:00.003-06:00

TC Palm reports that Florida Chief Financial Officer Alex Sink’s investigators recently helped Kikuko West, a Vero Beach senior, recover more than $217,000 in potential losses after she allegedly was tricked into prematurely replacing an existing annuity by an area insurance agent. West, 75, contacted the Department of Financial Services after hearing about Sink’s newly created “Safeguard our Seniors” Task Force, which is examining ways the state can reduce financial fraud against Florida seniors. According to West, the agent attempted to replace her and her husband’s existing annuity policy with a new one. The agent had committed in writing not to finalize the transaction or transfer any funds until West and her husband returned from a trip up north. Despite the written commitment, the agent proceeded with the transfer of funds. After reviewing other paperwork left behind by the agent, Sink’s investigators were able to determine that the agent appeared to have violated Florida law, which requires that buyers have a 15-day free look period without penalty once the contract is received. At the time of the funds transfer, West had not been presented with a contract. DFS is now investigating the agent’s actions in this case.

To read the full article, click here.

Securities Litigation Consulting Group Releases Regions Morgan Keegan Paper

2008-10-16T09:47:00.003-05:00

PRNewswire reports that Securities Litigation and Consulting Group, Inc. ("SLCG") has issued a report on six Regions Morgan Keegan bond funds. In this report, SLCG explains how the Regions Morgan Keegan funds collectively lost $2 billion in 2007 because they held concentrated holdings of low-priority tranches in structured finance deals backed by risky debt including subprime mortgages. The report concludes that Regions Morgan Keegan did not disclose the leveraged credit risks it was exposing investors to until well after the losses had occurred in 2007. The report goes on to show that Regions Morgan Keegan misrepresented hundreds of millions of dollars of leveraged asset-backed securities -- some of which were the toxic waste in risky deals -- as corporate bonds and preferred stocks thereby making the funds seem more diversified and less risky than they were. SLCG illustrates its findings for the six funds using Regions Morgan Keegan's Multi-Sector High Income fund (RHY) and with four examples of the complex tranches RHY held. This study and other working papers are available at http://www.slcg.com/research.php. Securities Litigation and Consulting Group, Inc. ("SLCG") is a financial economics consulting firm based in the Virginia suburbs outside of Washington, DC.

FINRA Awards Schwab Yield Plus Investor Over $500,000

2008-10-16T09:31:00.004-05:00

AboutLawsuits.com reports that an investor who lost money in the Schwab Yield Plus Fund was awarded $542,340 as part of an arbitration claim filed against his broker. Schwab YieldPlus is an ultra-short bond fund sold by Charles Schwab as an alternative to cash or money market funds. It was designed to generate income with minimal changes in share price. However, investors experienced losses of over 30% this year as a result of heavy exposure to risky subprime mortgage-backed securities. Like thousands of other investors, Jeffrey Nielson filed an arbitration claim through the Financial Industry Regulator Agency (FINRA) to recover his losses based on misrepresentations and false statements about the extent of risk associated with the fund. Nielson claimed that he purchased shares of Schwab YieldPlus based on the recommendations of his broker. However, he alleged that the broker failed to disclose that over half of the funds assets were in illiquid mortgage backed securities and also failed to disclose that it was a proprietary fund. The Financial Industry Regulatory Authority (FINRA) oversees the activities of 5,000 brokerage firms throughout the United States. In the event of a dispute between an investor and a broker, most brokerage agreements require FINRA arbitration instead of lawsuits through the court system. The arbitration panel awarded over half a million dollars to Nielson, in what is believed to be the second such Schwab Yield Plus arbitration result as a result of the collapse of this fund. According to Investmentnews.com, the other Schwab YieldPlus arbitration claim also resulted in an award in favor of the investor, which much less significant losses of $18,425. In the coming months, it is expected that hundreds of other claims with be decided by arbitration panels if Schwab does not reach a settlement for YieldPlus investors. In addition, financial fraud lawyers are continuing to review cases for individuals who have lost as little as $10,000 of their investments in Schwab YieldPlus Fund Investor Shares (SWYSX) and Schwab YieldPlus Fund Select Shares (SWYPX).

Understanding Your Rights in a Truck Accident

2008-10-06T15:25:00.003-05:00

Though truck drivers are usually skilled professionals, the pressures on truck drivers to meet schedules and the complexities of driving a large vehicle, like an 18-wheeler, can lead to serious truck accidents. Most of the deaths or injuries in a collision between a truck and a car or motorcycle involve the driver or passengers of the non-commercial vehicle. Truck accident injuries can be catastrophic and can lead to long-term disability. A wrongful death can have a ripple effect on the lives of many, affecting relationships and the emotional and financial well-being of families.

The legal issues relating to truck accidents are complex and some are unique to trucks. The trucking industry is regulated by the Department of Transportation or DOT and by state laws. For example, truck laws impact:

The number of hours a truck driver can drive at a time
Maintenance of vehicles
Truck size and load weight
Truck routes
Containment measures and signs, if a truck is carrying toxic chemicals
Loading and unloading requirements

Failure to obey any of these regulations can play a role in determining fault in a truck accident case and which parties can be sued. It’s usually not just the truck driver—a truck company and truck manufacturer also can be parties to a truck accident lawsuit. The attorneys at Burke, Harvey & Frankowski, LLC have expertise in multi-party cases and in the regulations affecting trucks.

Though it’s difficult to maintain presence of mind at an accident scene, there are some things you can do to protect your rights.

If you are able to, you should identify people who may have seen the accident and get their phone numbers. Tucking a disposable camera into the glove compartment of your car is always a good idea, and if you’re physically able to, you should take pictures of the accident scene or ask a witness to do so.

You may not immediately appreciate that you’ve been hurt and so you should see a doctor as soon as possible even if you feel alright. Notify your insurance company right away but don’t make statements, sign releases or waivers until you get legal advice. In particular, you shouldn’t make statements to representatives of a truck company or the truck company’s insurance provider. It’s not that you shouldn’t be helpful, but issues of fault can involve complicated legal considerations and the accident scene is not usually the place where you can calmly consider all the facts.

Truck accidents can implicate the laws of negligence, personal injury laws, and wrongful death laws, to name a few. You may also find yourself dealing with long-term disability claims and have questions about disability benefits denials.

The attorneys at Burke, Harvey & Frankowski, LLC have expertise in each of these areas and we are here to help. Please contact us today to schedule your confidential consultation.

Motorcycle Accidents: Determining Fault

2008-09-30T13:16:00.002-05:00

There are more and more motorcycle accidents every day. The National Highway Traffic and Safety Administration reports that motorcycle operators are 32 times more likely to experience death than drivers of automobiles. The risk of long-term disability is also high, preventing accident victims from working, from paying their bills, and supporting their families. Serious brain injuries and even death can be a consequence of a motorcycle accident.

There are a number of ways to obtain compensation for injuries and damages suffered from a motorcycle accident. At Burke, Harvey & Frankowski, LLC, we’ve seen that Alabama laws can create some unique challenges.

Some things to know about Alabama:
It’s an “at fault state” from an insurance perspective. This means that the insurance carrier of the person at fault pays for all of the damages. Who’s at fault? It’s the party the insurance company decides is 51% responsible. You may want to take an insurance company to court if it improperly decides that you are at fault and refuses to pay out. Our attorneys are experienced in dealing with insurance companies to resolve cases through settlement or through the court system.

What if the person who hit you is not insured or is under-insured? Insurance is not the only way to seek damages; you can also sue for negligence through the court system. A court will look at the duty of care owed and whether an accident was caused because there was a failure to meet this duty. For example, was the driver who hit you careless? Drunk? Was there a defect in the car that hit you? Poor highway conditions? As these questions may lead you to suspect, it’s not just the driver who can be sued. Depending on the circumstances, a car manufacturer, and even the state may have liability. Multi-party suits can be complex, but the attorneys at Burke, Harvey & Frankowski, LLC have expertise in these kinds of cases.

Additional challenges arise because Alabama applies a “contributory negligence” standard. This means that if your injury and/or damages are due in part to your own negligence, you may not be able to collect any damages. So even if you are only 2% at fault, you may not be able to recover damages. Needless to say, issues of fault and negligence can be highly contentious.

We recommend a prompt investigation. Taking a disposable camera with you when you’re on the road is a good idea so you can document an accident scene and your injuries. Though it may be tempting to discuss fault at an accident scene, you really should hold off. You may not be thinking straight and statements you make in the excitement of the moment can come back to haunt you. Fault is a complicated issue, dependent on Alabama state laws. Our motorcycle accident attorneys can help you make sure that there are complete records of your injuries and the crash and can help you navigate the complexities of fault and negligence.

Long-term disability insurance also can provide a source of income if you’re injured in a motorcycle accident and are unable to work for more than six months. It’s not tied to fault but you do have to show that your injury prevents you from working. It’s also a good idea to seek help when filing a long-term disability claim and appealing claim denials. The legal issues can be confusing and unfortunately, insurance companies are in the business of protecting their bottom line, not your best interests.

Your next step after a motorcycle accident should be to contact Burke, Harvey & Frankowski, LLC as soon as possible. We have expertise in the laws of Alabama, Georgia, Tennessee, and Florida, and we are here to help you. Please contact us for a free consultation.

FINRA Proposes Raising Threshold For Three Arbitrator Cases

2008-09-26T14:02:00.001-05:00

The Financial Industry Regulatory Authority (FINRA) today announced it has filed a proposed rule change with the Securities and Exchange Commission to have investor cases with claims of up to $100,000 in dispute heard by a single public arbitrator, an increase from $50,000. One arbitrator would be assigned to cases involving $25,000 to $100,000, under the proposal, unless all parties in arbitration agree to a three-person panel. Claims of $25,000 or less would continue to be heard by a single arbitrator, while three would continue to be assigned to cases involving more than $100,000 in dispute. "As more claims are heard by one arbitrator, we further simplify and streamline the dispute resolution process," said Linda Fienberg, President of FINRA Dispute Resolution. "It is much easier to appoint one arbitrator than three, and these efficiencies multiply when we schedule and conduct prehearing conferences and evidentiary hearings."

To read the full article, click here.

Wall Street Profits While Market Crashes

2008-09-26T13:48:00.003-05:00

Tom Randall and Jamie McGee of Bloomberg report that Wall Street's five biggest firms paid more than $3 billion in the last five years to their top executives, while they presided over the packaging and sale of loans that helped bring down the investment-banking system. Merrill Lynch & Co. paid its chief executives the most, with Stanley O'Neal taking in $172 million from 2003 to 2007 and John Thain getting $86 million, including a signing bonus, after beginning work in December. The company agreed to be acquired by Bank of America Corp. for about $50 billion on Sept. 15. Bear Stearns Cos.'s James ``Jimmy'' Cayne made $161 million before the company collapsed and was sold to JPMorgan Chase & Co. in June. Democrats and Republicans in Congress are demanding that limits be placed on executive pay as part of the $700 billion financial rescue plan proposed by U.S. Treasury Secretary Henry Paulson. The former Goldman Sachs Group Inc. CEO, who received about $111 million between 2003 and 2006, said in testimony to Congress on Sept. 24 that he would accept such limits as part of the plan, after initially opposing them. ``Shareholders and boards should have done something about this a long time ago,'' said Charles Elson, director of the Weinberg Center for Corporate Governance at the University of Delaware in Newark. ``They justified these levels of pay on the idea that they're all geniuses. I think that balloon has burst.'' Wall Street firms have shared profits liberally with employees. The five biggest -- Goldman, Morgan Stanley, Merrill, Lehman Brothers Holdings Inc. and Bear Stearns -- paid their 185,687 employees $66 billion in 2007, as problems with subprime mortgages mounted, including about $39 billion in bonuses. That amounts to average pay of $353,089 per employee, including an average bonus of $211,849. The five firms had combined net income of $93 billion during the five years through 2007.

To read the full article, click here.

Drug Label, Maimed Patient and Crucial Test for Justices

2008-09-19T20:03:00.002-05:00

Adam Liptak with the New York Times reports:

MARSHFIELD, Vt. — When Diana Levine starts talking about her rock ’n’ roll days, she plays a little air guitar, mimicking the way she used to handle her electric bass in bands like the Re-Bops and Duke and the Detours. But Ms. Levine is missing much of her right arm, which was amputated below the elbow after a medical disaster.

In November, the Supreme Court will hear arguments about whether Ms. Levine may keep more than $6 million that a Vermont jury ordered Wyeth, a pharmaceutical company, to pay her for failing to warn her adequately about the risks of one of its drugs. The case, the latest in a brisk parade of similar ones, will help define the contours of a signature project of the Roberts court.

In legal jargon, the cases concern “pre-emption,” a doctrine that can bar injured consumers like Ms. Levine from suing in state court when the products that hurt them had met federal standards. The issue is less boring and more consequential than it sounds, and Ms. Levine’s case is shaping up to be the most important business case of the term.

To read the entire article, click here.

Burke Harvey & Frankowski represents hundreds of individuals who have been injured and even caused death by defective pharmaceutical products. Should the United States Supreme Court find that our client's claims are "preempted" they will have no recourse for their injuries and the pharmaceutical companies whose conduct caused their injuries will get away without having to compensate them at all. Often these companies are able to get their products approved by failing to provide the FDA with all available information related to safety of their proposed drugs. Even the prestigious New England Jounral of Medicine has opposed the imposition of preemption stating that drug products liability lawsuits are important in keeping drug companies honest and helps provide protection to consumers.

Senate Committee Passes Nursing Home Arbitration Bill

2008-09-19T19:46:00.004-05:00

McKnight's Long term Care News reports that The Fairness in Nursing Home Arbitration Act of 2008, a bill that would eliminate arbitration agreements as a requirement for admission into a nursing home, is one step closer to becoming a law. The Senate Judiciary Committee passed the bill last Thursday. Since its introduction in April of this year, the legislation has sparked a heated debate between lawmakers and consumer advocates on one side and nursing-home groups on the other. As recently as last Wednesday, healthcare lobbyists were sending letters to high-ranking members of the Senate Judiciary Committee in an effort to defeat the bill. Many in the long-term care industry argue that eliminating mandatory arbitration agreements will cause facilities to focus resources more on legal battles than on improving quality of care.The Fairness in Nursing Home Arbitration Act will not entirely do away with arbitration agreements, lawmakers note. Rather, it will make them a voluntary agreement. Before it can become law, the bill must be debated on the Senate floor. No debate is currently scheduled.

We are hopeful that the Fairness in Nursing Home Arbitraiton Act of 2008 will ultimately become law. This law will help further guarantee and protect the rights of nursing home residents and prevent nursing homes that provide sub-standard care and treatment to their residents from hiding behind arbitration agreements in their admissions contracts. If you have a question about a nursing home admissions contract or an arbitration provision that you are being asked to sign, call the experienced nursing home abuse and neglect lawyers at Burke Harvey & Frankowski. We will answer any questions you have about this important issue that affects every prospective or current nursing homr resident.

House passes "Silver Alert" Legislation to Help Locate Missing Seniors

2008-09-19T19:28:00.004-05:00

McKnight's Long Term Care News reports that [T]he U.S. House of Representatives Wednesday passed legislation that would set up a nationwide "silver alert" system to help coordinate local law enforcement officials in the event of a missing senior. The silver alert system would augment the amber alert system, which alerts law enforcement agencies and the general public when a child has disappeared or been kidnapped. Recent reports suggest that up to 14 million seniors will develop Alzheimer's disease in the next few decades, and that up to 60% of them are likely to wander (McKnight's, 6/2). The bill would allow for up to $5 million per year between 2009 and 2013 to be spent implementing the silver alert system. The bill, the National Silver Alert Act (H.R. 6064), also would reauthorize Kristen's Act, which was established to create a national database to track missing adults who are endangered due to age or diminished mental capacity. The Kristen's Act re-authorization would provide an additional $4 million per year over the next decade to help families locate and recover missing adults.

Every year elderly individuals as a result of diminished mental capacity become injured or even die as a result of wandering away from their homes. Unfortunatley, there are documented cases of nursing home residents wandering away from the their facilities -- many of these residents fall down and are injured while still others die as a result of drowning, being struck by moving vehicles or as a result of exposure. Often, these residents are missing for hours or even days before anyone realizes they are gone after which they are difficult to locate. We are hopeful that laws such as the National Silver Alert Act and Kristen's Act will help to prevent these terribly unfortunate incidents. Burke Harvey & Frankowski is committed to representing our nation's elderly particularly in cases where they have been abused and neglected in nurisng homes, assisted living facilities and other long term care factilites. We have handled cases in which residents have been allowed to wander away from or elope from their nursing home. If you or someone you know has suffered abuse or neglect in a nursing home, call the experienced nursing home abuse and neglect attorneys at Burke, Harvey & Frankowski. We are currently representing nursing home residents and their families in Alabama, Georgia, Mississippi, Tennessee and Kentucky. We are here to help you.

President to sign bill expanding Americans with Disabilities Act

2008-09-19T19:18:00.003-05:00

McKnight's Long Term Care News reports that [T]he House of Representatives this week passed legislation to expand the definition of "disability" under the Americans with Disabilities Act, helping millions more disabled Americans receive government assistance. The current legislation was in response to Supreme Court decisions in 1999 and 2002. The court ruled that individuals who could compensate for their disabilities with medications, medical devices or prosthetics did not qualify for protection under ADA. The bill states that the Supreme Court made a mistake by "eliminating protection for many individuals whom Congress intended to protect." The original ADA passed in 1990. The definition of disability must now be interpreted to include broader coverage for the disabled, according to the new bill.The legislation is strongly endorsed by a number of consumer advocate groups, including the American Civil Liberties Union. The bill, which was originally introduced to the Senate on July 31 of this year, now makes its way to President Bush's desk for ultimate approval. A Bush spokesman has said he will sign the bill.

This is an important development for our nation's most vulnerable residents including some individuals who reside in our nation's nursing homes. Burke Harvey & Frankowski are committed to representing individuals who are disabled and folks who reside in nursing homes and other long term care facilities. If you or someone you know has been discriminated against because of a disability covered under the Americans with Disabilities Act or have been abused or neglected in a nursing home, call Burke Harvey & Frankowski. We are here to help you.

U.S. Plans Sweeping Reforms For Markets

2008-09-19T10:11:00.003-05:00

Deborah Solomon and Damien Paletta report that the federal government is working on a sweeping series of programs that would represent perhaps the biggest intervention in financial markets since the 1930s, embracing the need for a comprehensive approach to the financial crisis after a series of ad hoc rescues. Treasury Secretary Henry Paulson briefed reporters in Washington about efforts to heal the crisis in the U.S. financial markets. Treasury Secretary Henry Paulson announced plans Friday to quickly set up a "bold" government program to take over troubled mortgage assets from financial institutions, along with other efforts to step up the purchase of mortgage-backed securities. "The federal government must implement a program to remove these illiquid assets that are weighing down our financial institutions and threatening our economy," Mr. Paulson said in prepared remarks for a press conference. (Read the full remarks) President George W. Bush warned that a "significant" amount of taxpayer funds will be put at risk with the government's plan to bolster shaky markets, but said intervention is necessary to keep the financial system from grinding to a halt. "This a pivotal moment for America's economy," Mr. Bush said Friday. "In our nation's history, there have been moments that require us to come together across party lines to address major challenges. This is such a moment." Meanwhile, the Federal Reserve took another step deep into uncharted territory Friday morning, effectively coming to the rescue of another struggling financial sector -- this time the money market mutual fund industry. Separately, the Securities and Exchange Commission proposed a temporary ban on short-selling on 799 financial stocks. The ban, which is effective immediately, is set to last for 10 days, but could be extended for up to 30 days. (See related article.) Mr. Paulson plans to work with Congress over the weekend to get legislation in place next week, he said, calling for "prompt, bipartisan action." The program must be big enough to have "maximum impact," while protecting taxpayers, said Mr. Paulson.

To read the full article, click here.

Nursing Home Administrator's Salaries Top $80,000

2008-09-17T17:54:00.003-05:00

McKnights reports that [I]t was a respectable year for the long-term care industry, with many managers' salaries growing at or above standard market rates, according to a recently released survey of nursing home personnel. The national median for administrators saw a 3.6% pay bump; their assistants gained 4.3%. Directors of nursing experienced a 3.9% rate increase over the previous year. Assistant DONs weren't so fortunate, dropping 0.03% from last year's high-water mark. National median salaries for administrators topped out at $85,464, up from $82,400 last year. Assistant administrators, falling short of last year's incredible 10.8% leap, still mustered a median raise of $2,643, bringing them to an even $62,000 per annum. Directors of nursing reached the $75,000 mark, while their assistants actually lost ground, losing a median average of $22 from last year, and lowering them to $60,000. The report comes courtesy of the Hospital & Healthcare Compensation Service, in partnership with the American Association of Homes and Services for the Aging, and the American Healthcare Association. For 31 years, HHCS has collected information from a wide array of nursing homes across the nation. This year, 2,135 homes responded to the survey.

To read the entire article, click here.

Stock Market Crashes Again

2008-09-17T15:59:00.003-05:00

Alexandra Twin of CNNMoney.com reports that stocks plummeted Wednesday, with the Dow industrials falling 449 points in its second worst session of the year, as the government's emergency rescue of AIG amplified fears about the stability of financial markets. The Dow Jones industrial average (INDU) lost about 449 points, or 4%, according to early tallies and fell to the lowest level since November 2005. The Standard & Poor's 500 (SPX) index lost 4.7% and fell to its lowest point since April 2005. The Nasdaq composite (COMP) lost 4.9% and ended at its lowest point since August 2006. Selling pressure had eased up in the mid-afternoon as the jump in oil and gold prices boosted the underlying stocks. But any recovery attempt quickly lost steam and the market finished the session just above the worst levels of the day. Financial stocks tumbled across the board, with Goldman Sachs (GS, Fortune 500) down 21% and Morgan Stanley (MS, Fortune 500) off 29% on worries about the companies profits and ability to raise capital in the current environment. Both companies reported better-than-expected third-quarter results Tuesday. (Full story) The Philadelphia KBW Bank (BKX) index fell 6.2% and the Amex Securities Broker/Dealer (XBD) index fell 9.1%. Small cap stocks were hit, too, with the Russell 2000 (RUT) index sliding 3.9%. The selloff comes in the wake of the government's bailout of Fannie Mae and Freddie Mac, Lehman Brothers' bankruptcy, Merrill Lynch's sale to Bank of America and ongoing worries about Washington Mutual and other firms. "There's a fear of a financial system meltdown going on, and it's grounded in the headlines we're seeing about the series of firms that are in trouble," said Paul Rabbit, president of Rabbit Capital Management.

To read the full article, click here.

Even Money Market Funds Are Losing Value

2008-09-17T15:59:00.001-05:00

Jon Markman of MSN.com reports that extraordinary events are piling up on Wall Street so fast, it's hard to know where to focus. Forgetting the prospective bailout of AIG for a moment, since every media outlet is on that one, the most shocking development of the day for me is news that a $60 billion money market fund "broke the buck" on Monday due to losses in Lehman Brothers paper that it held. So much for the safety of "cash". The Reserve Primary Money Fund (RPFXX) has become the first money-market fund in more than a decade to lose money because its board was forced to write down $785 million worth of LEH debt to zero. The fund has reportedly seen assets plunge by 60% to $23 billion in the past two days after holders got wind of the fact that it would have to cut its net asset value to less than its usual $1 per share. Reserve Primary, which is one of the oldest money market funds in the country, is now trading at 97 cents, although it is showing up on the MSN Money site at $1. Its founder is considered the father of the money market fund, and he was one of the last holdouts against buying higher-yielding commercial paper rather than super-safe Treasuries. The company said in its that it would suspend redemptions for seven days while it tries to straighten things out. To review its most recent list of holdings, see its quarterly SEC filing here.

To read the full article, click here.

Consumer Ads for Medical Devices Subject of Senate Panel

2008-09-17T15:37:00.004-05:00

Barry Meier reports for the New York Times today that [A]s makers of medical devices like artificial knees and heart stents increasingly pitch their products directly to consumers, some lawmakers, medical groups and others are calling for restrictions on such advertisements, claiming they mislead patients.

The amount of medical device advertising directed to consumers on television or over the Internet — an estimated $193 million last year — represents just a small fraction of the volume of consumer advertising for prescription drugs, according to TNS Media Intelligence, a consulting firm.

But some experts maintain that the advertising of a medical device can have more of an impact on a patient’s well-being than a drug, because devices often require surgery to implant and may remain inside the body for years.

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Burke Harvey & Frankowski is currently handling medical device cases on behalf of hundreds of clients from all over the country. These cases include Shouler Pain Pumps and Kugel Mesh Hernia Repair Patches. If you or someone you know has suffered injury as a result of a defective medical device, call Burke, Harvey & Frankowski.

U.S. Gov. Bails Out AIG With $85 Billion Loan

2008-09-17T09:40:00.003-05:00

Matthew Karnitschnig, Deborah Solomon, Liam Pleven and Jon Hilsentrath of the WSJ report that the U.S. government seized control of American International Group Inc. -- one of the world's biggest insurers -- in an $85 billion deal that signaled the intensity of its concerns about the danger a collapse could pose to the financial system. The step marks a dramatic turnabout for the federal government, which had been strongly resisting overtures from AIG for an emergency loan or some intervention that would prevent the insurer from falling into bankruptcy. Just last weekend, the government essentially pulled the plug on Lehman Brothers Holdings Inc., allowing the big investment bank to go under instead of giving it financial support. This time, the government decided AIG truly was too big to fail.The U.S. negotiators drove a hard bargain. Under terms hammered out Tuesday night, the Fed will lend up to $85 billion to AIG, and the U.S. government will effectively get a 79.9% equity stake in the insurer in the form of warrants called equity participation notes. The two-year loan will carry an interest rate of Libor plus 8.5 percentage points. (Libor, the London interbank offered rate, is a common short-term lending benchmark.)

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Stocks Fall On News Of AIG Rescue

2008-09-17T09:17:00.005-05:00

Aaron Smith of CNNMoney.com reports that stocks tumbled Wednesday morning, as the government's rescue of AIG and Barclays' purchase of some of bankrupt Lehman's operations underscored the ongoing turmoil in financial markets. Investors also considered a report on new home construction that dipped to a 17-year low. The Dow Jones industrial average (INDU), the Standard & Poor's 500 (SPX) index and the Nasdaq composite (COMP) all slumped in the early going. On Tuesday, the Dow and Nasdaq gained as investors digested the Fed's decision to hold interest rates steady and geared up for news on AIG. AIG shares fell 30% Wednesday morning, while Lehman shares fell 36%. European markets were up in afternoon trade Wednesday. Asian markets ended mixed: Japan's Nikkei index was up, while Hong Kong's Hang Seng index was down. Lakshman Achuthan, managing director of the Economic Policy Research Institute, said that government intervention during times of economic crisis is being perceived as short-lived. "Each time the government takes a drastic action to facilitate the survival of one of these institutions caught up in the housing and credit crisis, there is a hope that it will put a floor under the financial markets," said Achuthan, in an e-mail to CNNMoney.com. "But from Bear, to Fannie and Freddie, to Merrill and AIG, the half-life of intervention benefits has been plunging as markets weaken further after brief respites."

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Mealtime Help Cuts Weight Loss in Residential Care

2008-09-16T18:12:00.003-05:00

Joene Hendry reports for Reuters that [I]ndividualized attention during daily meals and snacks in between minimizes weight loss among long-stay nursing home residents, researchers report.
The amount and quality of daily feeding assistance "can and does make a significant difference on the nutritional health status of a frail population," Dr. Sandra F. Simmons told Reuters Health. Previous studies have shown that unintentional weight loss in the elderly increases the risk of illness and death.

Simmons, of Vanderbilt University in Nashville, Tennessee, and colleagues assessed unintentional weight loss among 76 nursing home residents (83 years old on average) who were at risk of weight loss. The mostly female participants had been in residential care for about 3 years. Half the group received meal and snack time assistance for 24 weeks, while the other study participants took meals and snacks without additional attention (control group). During a second 24-week period, those initially given feeding assistance returned to usual feeding practice, while the original control group received feeding assistance.
Simmons' team documented weight and food intake at the start, during, and at the end of each study phase.

Their findings, published in the Journal of the American Geriatrics Society, show 56 percent of the study participants maintained or gained weight when given feeding assistance, while just 28 percent did so under usual feeding practices.The feeding assistance provided in this study required an average of 42 minutes per resident per meal and 14 minutes per resident per snack - more time than is generally allotted for meal and snack delivery by nursing home staff.

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Burke Harvey & Frankowski are currently handling numerous cases involving the abuse and neglect of nursing home residents in Alabama, Tennessee, Georgia, Mississippi and Kentucky. In some of these cases weight loss and malnutrition are issues because the nursing homes involved simply do not provide adequate staff to assist residents who are not capable of feeding themselves. In such cases, the residents slowly starve to death simply because they are not provided assistance at meal time. Unfortunately, such tragedy plays out every day in some of our nation's nursing homes. If you or a loved one is a resident in a nursing home and feel that you are not receiving the care and treatment that you deserve, call the knowledgeable and experienced nursing home neglect lawyers at Burke, Harvey & Frankowski. We are here to help you.

Jefferson County Judge Says Benefits Too Low for Some Injured Workers

2008-09-16T09:19:00.002-05:00

Eric Velasco with the Birmingham News reports that [A] Jefferson County judge has called on legislators to increase compensation for some workers severely injured on the job, saying a benefits cap set 23 years ago guarantees poverty for them and their families.

Alabama employees with permanent partial disabilities - serious on-the-job injuries that still allow the person to work after recovery - can receive pay of $220 a week for up to 5¾ years, depending on the level of disability.

But $220 now buys half of what it did when the benefits cap was set in 1985. It's inadequate, Circuit Judge Scott Vowell wrote in a pretrial ruling last week in a lawsuit filed by Shane Robinson against his former employer, Birmingham's Mid-South Control Systems.
"The trial courts see these workers leave our courtrooms week after week, without the ability to support themselves or their families," Vowell wrote in his order.

"They leave our courthouses with relatively small `lump sum' checks in their pockets," he wrote. "After that is spent for their necessities, who knows or cares what becomes of them?"

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The firm of Burke Harvey & Frankowski is committed to representing injured workers and their families. If you or someone you know has suffered an on the job injury you may be eligible for worker's compensation benefits under Alabama law. Contact us for a free consultation.