Sports
Stillman News
Senior Editors Bid Farewell to The Exchange
Although the team faces relocation, the Phoenix Coyotes are a great Cinderella story. See p. 11
Stillman students push career forward through motivational mentors in Corporate Mentorship Program. See p. 7
Gerardo Pecoraro, Danielle Storm and Tiffany Dindial say See p. 6, 7 & 15 goodbye to Seton Hall University.
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Goldman charged with defrauding investors
Unpaid Internships: An Investment, But At What Cost?
By Lee Duan, Money & Investing Writer
By Meg Reilly, Assistant Managing Editor
The Securities & Exchange Commission charged Wall Street giant Goldman Sachs & Co. (NYSE: GS) with defrauding investors by misstating and omitting key facts related to the structuring and marketing of a financial product positioned for failure. Paulson & Co., a hedge fund that believed in the collapse of the housing market, paid Goldman approximately $15 million to create a synthetic collateralizeddebt obligation to bet against. According to the SEC, Paulson “played a significant role in selecting which residential mortgagebacked securities should make up the portfolio.” The civil lawsuit alleges that Goldman did not disclose information on the influence Paulson had in the selection of the RMBS or its bet that the value of the securities would decline. The SEC claims that Goldman Vice President Fabrice Tourre was responsible for the structuring and marketing of the complex investment vehicle known as Abacus 2007-AC1. The allegations state that Tourre was aware of Paulson’s economic interests but purposefully mislead investors by marketing that the securities were picked by ACA Management, an independent manager with expertise in credit-risk analysis. In response to the charge, Goldman released a statement that says, “The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.” According to a second press release, Goldman claims that ACA was solely responsible for the selection of the RMBS in the financial product. Since ACA was also the synthetic CDO’s largest investor, the firm “had an obligation and every incentive to select appropriate securities.” Goldman also says it never communicated to ACA or other investors that Paulson had any intention to be a long investor in Abacus. The firm does not disclose the identities of those who invest in both the long and short positions of its financial products.
During the economic crisis, many companies transformed their internship programs to offer unpaid internships for the same amount of work. Most recently, the increasing trend has raised red flags regarding employee exploitation and labor law violations. This month, the U.S. Department of Labor Wage and Hour Division released a fact sheet regarding internship programs under the Fair Labor Standards Act (FLSA). According to Washington, an employment seeker must be considered a company “trainee” in order to be classified under the unpaid internship category. Six fields are denoted in the fact sheet that must all be met to be considered a “trainee” as opposed to an “employee”, who would fall under the FLSA requirements of minimum wage and overtime compensation. These six categories state that the internship must: be similar to training that would be given in an educational environment; be of benefit to the intern; not displace regular employees, but work under close supervision of existing staff; not yield immediate advantage from the activities of the intern to the employer; not offer definite employment at the conclusion of the internship; and clearly identify that the employer and the intern understand that the intern is
Money & Investing.............. 2 Stillman News...................... 6 Ethics ................................... 8 Editorials ............................. 9 Sports................................... 10 Domestic News..................... 13 International News.............. 15 International Business........ 16 Top front cover image courtesy of Ian Mehok, Assistant Managing Editor
not entitled to wages for the time spent in the internship. Due to the fact that an unpaid internship must meet all six standards to be considered legal, it is not uncommon that some unpaid internships violate labor laws. If the skills that an unpaid intern acquired during the
internship can be applied to various employment settings, not exclusively the company they work for, it would be more likely that the time spent with the company is classified as training. Continued on page 5...
Syria, First Arab Nation to Enforce Smoking Ban in Public Areas By Raphael Baseman, International News Writer
On Wednesday, April 21, Syrian President, Bashir al Assad, declared a ban on smoking in certain public areas, the first ever such ban in an Arab state. The ban outlaws tobacco smoking in various public venues, including cafes, restaurants, educational institutions, health centers, theaters, cinemas, and places of worship. Some tobacco usage will be permitted in well-ventilated cafes. Additionally, Saadalla Agha al-Qalaa, Syria’s Minister of Tourism, told CBS that Continued on page 5... some thirty percent of hotel rooms will be
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specifically allocated for smokers. The law also forbids the sale of cigarettes and water-pipes to minors. Additionally, the import and sale of sweets or toys modeled after tobacco products has been prohibited. This is not the first attempt by the government of Syria to ban smoking. In 1996, Assad’s late father, Hafez, the previous president, banned tobacco advertising and smoking in government offices. Later, in 2004, smoking in internet cafes was made illegal, and in 2006, smoking was forbidden in public transport, parks, and cultural centers. The last of these laws threatened small
fines and jail time of up to three months to individuals who chose to break them. However, these bans were largely flouted, and never strictly enforced. The newest law includes large fines for violations. Business owners who allow the ban to be broken on their premises will be fined up to 40,000 Syrian pounds, the equivalent of approximately $900; while the offenders themselves would be fined 2,000 Syrian pounds, the equivalent of $46. Violators are also subject to jail terms of three to 12 months. Continued on page 15...
Aftermath of Icelandic Volcano: Airline Industry Assesses the Financial Damages By Ben Canning, International Business Writer It has been over two weeks since Iceland’s Eyjafjallajökull volcano has erupted and filled the surrounding airspace with clouds of ash, knocking out all hopes for airspace transportation. But it seems now that the dust has settled and most airports, including London’s Heathrow, have reopened as the airline industry finds some hope after its major
financial losses. Thus far, the grounding of airplanes has cost the airline industry over $1.7 billion, and some airlines have asked the European Union for financial assistance. British Airways, having all of their planes grounded since the incident, have lost over $123 million. Other airlines have begun to announce their losses as well. Air France announced that they have been losing over $47 million a day and Emirates are now over $50 million in the
hole. EasyJet has been taking on much damage as well, losing 85 percent of its service ability in the past week due to the ash clouds. The question that is on the table now is: Is it safe to fly in the reopened airspace? Much controversy over this issue has arisen because some feel that grounding all airlines was an overreaction. Others, however, especially the European Union, do not want to surrender the safety of passengers. Continued on page 16...
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Money & Investing
NEWS BRIEFS
Wall Street Turns 2010 Home Sales Figures Year-over-Year Towards Reform for Hope By Kyle Connell, Photo coutesy businessinsider.com
Money & Investing Writer
• ICICI Bank Ltd., India's largest private bank, said Saturday its quarterly profit rose by more than a third, missing expectations, as it continued to retrench its deposit base and cut back on risky consumer loans. • Regulators on Friday shut down seven banks in Illinois, putting the number of U.S. bank failures this year at 57. • German Chancellor Angela Merkel is stressing the need for a better regulation of international financial markets, saying there is still “too much speculation going on” as exemplified by the financial crisis in Greece.
Home Sales Q1 - 2010 January
• Treasury Secretary, Tim Geithner, is telling Congress that the administration believes the final cost of the government's heavily criticized financial bailout effort could be as low as $87 billion.
March February
11%
23.8% .6%
Toyota’s Troubled Year to Date Graph courtesy of Yahoo! Finance
This Week’s Poll Question: What is your largest expected expense for the summer? A: Gas / Fuel B: Clothing (Bathing suits, etc.) C: Vacation Expenses (Hotels, Tickets, etc.) D: Personal Hobbies Respond at www. stillmanexchange.com
Last Weeks Poll Question: What do you think about the iPad? A: I already bought it. (26%) B: Iam thinking about buying it. (40%) C: I won’t buy it. (25%) D: I will never buy something from Apple (9%)
THE STILLMAN EXCHANGE
Two Weeks in Earnings Date Company 4/27 3M Company 4/27 Aflac Incorporated 4/28 Barrick Gold 4/28 Core Laboratories 4/29 Coinstar, Inc. 4/29 HealthSpring, Inc. 4/30 Total 4/30 VF Corporation 4/30 Avon Products Inc.
Symbol MMM AFL ABX CLB CSTR HS TOT VFC AVP
EPS $ 1.21 $ 1.32 $ 0.62 $ 1.31 $ 0.13 $ 0.37 $ 1.51 $ 1.13 $ 0.32
Earnings Stock to Watch: Citigroup Graph courtesy of Yahoo! Finance
Wall Street is begging for reform. The entire set up from the buildings to the people to the cracks in the sidewalk screams oldfashioned. Over the years though, the cautious, frugal mindset of Wall Street avoided too many updates to the eight block stretch located in Manhattan’s financial district. Michael Kors and Tim Gunn recently called it dreadfully drab and volunteered to play plastic surgeons to renew its youth with the air of arrogance it has earned. Gunn thinks that while the street supports a distinctly out of date fashion, few major adjustments will be needed to “make it work.” The proposed facelift would adjust three areas and will be both functional and aesthetic. “Start from the ground up!” says Kors, who developed the first makeover idea exchanging the boring pavement status quo for soft, red velvet streets. Asphalt’s dominance of street surfaces raises anti-trust issues, but more importantly takes the eye through endless intersecting paths of black misery. Instead, the unique institution of red velvet would invoke the feelings of love and compassion typically associated with Wall Street. After softening the streets, Kors and Gunn would smooth the sidewalks removing the typical concrete for a chic alternative: ice. The main function of the ice would be to eliminate the cracks which naturally divide the concrete and spread without control underneath the workers who carefully avoid them at the sake of their mothers’ backs. The irrepressible spread constantly reminds Wall Street workers of their inability to manipulate the cracks, and such impotence only idles the workers’ capacity for making money. Other ice functionality includes the replacement of bankers and brokers’ need to walk with the ability to slide. This new sliding ability should significantly decrease the strain on their backs and knees. Less strain means less physical deterioration. Without this deterioration, Wall Street workers can avoid costly medical expenses that significantly lower their already low incomes. Essentially, the savings would be like receiving a bonus without actually doing anything to warrant one. Kors and Gunn’s final suggestion replaces the hard, archaic brick and glass that currently cover the buildings of Wall Street with sponges. The sponge wall trend, while very new and only tried by the hippest of hipsters in Eastern Europe, has the promise to completely remodel Wall Street. Of the trend’s newness, Gunn said, “What better a place to open the United States to a defiantly new trend than Wall Street, a place already accustomed to enveloping the country in disruptive trends like recessions.” Along with the trendy upside, the sponge wall also provides functionality necessary for the future. When the Street inevitably finds itself holding the axe next to a toppled economy, the sponge material’s high absorption rates allow for the walls to absorb blame, letting the workers simply forget they did anything at all. Contact Kyle at kyle.connell@student.shu.edu
All information contained in this publication is not intended to substitute for the advice of a professional financial planner. It is meant only for informational purposes. The Stillman Exchange assumes no liability for any investment losses incurred as a result of information provided in this publication. Readers should consult a professional financial planner.
THE STILLMAN EXCHANGE
Jobs: Too Little Now, Too Many Later; Report Suggests U.S. Job Market Will Surge Through 2018 By Michael Pernal, Money & Investing Writer After collecting two years of unemployment benefits, Americans are still struggling to find jobs in today’s economy. Congress has extended unemployment benefits to 99 weeks, but even that is proving insufficient for Americans as they are still struggling to find jobs. According to early estimates by one advocacy group, up to a million people could find themselves without a paycheck or an unemployment check come the end of the year. That number becomes more dramatic as there has been no discussion in Congress to extend unemployment benefits any further. “People will endure extreme hardship,” said Andrew Stettner, deputy director of the N ational Employment Law Project. “We can’t just let everyone fall off of this cliff.” On the other hand, “If you are subsidized to stay out of the workforce, many people will,” said Alan Reynolds, senior fellow at The Cato Institute, a libertarian think tank. The large numbers of American without jobs is directly related to the recession. The economy is slowing crawling back, but 16 million Americans are still without work, 11 million of which are receiving unemployment benefits. The unemployed can receive 26 weeks of statepaid benefits and then apply for an additional 73 weeks of federally paid benefits. One likely reason why Congress has yet to move on extending unemployment benefits is that lawmakers have realized that the government just does not have the money to do so. Any extension would cost approximately $9 billion, and the government is already slated to spend $156 billion on jobless benefits in fiscal 2010, which begins October 1. If Congress does not extend benefits and unemployment benefits run out for millions of Americans, the economy could take another turn for the worse. Economists have stated that unemployment checks have helped the economy as the jobless spend every penny they receive. With unemployment still hovering around 10 percent, a recent report published by Bluestone, titled “After the Recovery: Help N eeded”, analysts state that there will be too many jobs and not enough workers to fill them by the year 2018. In Bluestone’s report, the jobs will emerge across the economic spectrum, but particularly in what the report describes as “the fast growing social sector.” The social sector includes critical areas such as healthcare, education, social assistance, and government. If the report does come to fruition, wages for all workers in these competitive fields will rise drastically. As unemployment falls, employees have stronger negotiation abilities and can demand more money for the same work. Since employees can easily find different work, employers must satisfy employee desires unless they would want to leave the door open for an employee revolving door. In order to fill these jobs, Bluestone is predicting that the baby-boomers, many of whom will be retiring soon, will be needed to fill these jobs. With retirement accounts taking a hit in the economic downturn, older Americans just might want to stay in the workforce, albeit in what they define as a more suitable position. According to Matt Thornhill, president of the Boomer Project, a market research firm, baby boomers are fortunate. “By taking a second career, they are going to be the ones to redefine the purpose and role of people over the age of 65.” If this report is accurate, by the time American digs itself out of one job crisis, it will be falling into another. The only difference will be the number of jobs.
Contact Michael at michael.pernal@student.shu.edu
Money & Investing
TUESDAY, APRIL 27, 2010
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IBM Sees Increase In First Quarter Profits By N igel Drew, Money & Investing Writer
IBM top officials believe that this is only the beginning to a strong financial year for technoloIBM (N YSE:IBM) gy giant and are using these posireleased its first quarter tive figures to sway investors to results of 2010 posting an place money into the technology increase of $2.6 billion, up giant’s stock. 13 percent from last year. Despite the company’s optiMany attribute this mistic outlook and better-thanincrease in profits to the douexpected earnings, IBM shares fell ble digit increase in software more than 2 percent in after-hours sales. Sales rose in the first trading. quarter by 5 percent to $22.9 Some analysts reviewed IBM’s billion, beating analysts’ service books and were displeased forecast of $22.75 billion. with the 2 percent decline from the Revenue was boosted by previous fourth quarter. growth in the company’s Other analysts believe that IBM software sector, which at this current time may be overincreased 11 percent. valued and thus are attempting to IBM posted a first quarter profit of $2.6 billion. The company The company earned sell the stock at its current price in reached $1.97 per share, beating investors’ expectations of $1.93. $1.97 per share, beating order to attain a profit. expectations of $1.93 and Some analysts are concerned its previous forecast. jumping 16 percent from the same quarthat IBM will be unable to maintain this IBM was able to successfully ter last year. Many analysts originally decrease costs which were a major con- level of production for the remainder of had IBM EPS total to be near $1.93. tributor to the strong first quarter results. the year and that the IBM stock price is These results reveal quite an amount Improvements in employee productivity near its current annual apex and a wise of information about the financial status as well as upgrades in machinery led this investor should take advantage of this of this technology giant. technology company to solid first quar- situation. The company’s systems and tech- ter numbers. Many view this rise in revDespite the decline in the stock nology sector also improved in the first enue for IBM as corporations are more price, many top financial officers were quarter, rising 5 percent after dropping 4 willing to spend on corporate technology quite pleased with these figures and percent in the previous quarter. and that companies are beginning to believe that that this is only the beginThis systems and technology sector rebound from the recession. ning to the possible returns IBM may see is heralded by many technology analysts Some also analyze the financial this year. as a major component in a strong finan- reports from IBM as consumers are willcial analysis of a corporation. Also, IBM ing to spend on upgrades in technology raised its outlook for the rest of the year, and thus are gaining confidence in the Contact Nigel at expecting 2010 earnings of at least economy and are willing to spend more nigel.drew@student.shu.edu $11.20 a share, up from $11 per share in of their income. Photo courtesy of IBM
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Money & Investing
THE STILLMAN EXCHANGE
Citigroup Weathers Storm: Reports $4.4 Billion In Profit By Steven Paramo, Money & Investing Writer
Citigroup also reported revenues of $25.4 billion, and $0.15 per diluted share. Citigroup has attributed its profits to strong trading of bonds, stocks, and other securities, as well as to the improvements of the economy, especially overseas. Also, new accounting rules required the bank to put billions of dollars of off-bal-
Wedged in between the current economic crisis and the civil fraud suit brought up to the esteemed Goldman Sachs (NYSE:GS), Citigroup (NYSE:C) has found a way to finally record profits of $4.4 billion for the quarter according to Washington Post. For the New York bank, this is the first notable profit in about three years, as Citigroup was hit hard by the credit crisis in mid 2007. In light of the suit brought to Goldman Sachs by the Securities and Exchange Commission, investors from all banks were backing out due to fears that the suit would reach the other bank giants as well. Citigroup was able to rebound from Photo courtesy of Citigroup this, and shares closed at $4.88 April 19, up Citigroup’s CEO, Vikram Pandit, believes that 7 percent, compared with almost 1 percent the company is rebounding after reporting profamong banks over all, according to the New its of $4.4 billion for the Q1 of 2010. York Times.
ance-sheet assets back on its books, and as a result, Citigroup’s asset levels grew about 8 percent in the quarter to about $2 trillion according to “Citi today is fundamentally a very different company from what it was only two years ago,” said Vikram Pandit, Citi’s Chief Executive Officer. “With its financial strength, strategic clarity, efficiency, worldclass business talent, and unique global footprint, Citi is well positioned to benefit from the key drivers of economic growth in developed and emerging markets.” With Citigroup making a strong push towards economic recovery, the other big banks also are starting to drag themselves out of the slum, as JP Morgan Chase & Co. and Bank of America Corp. have reported solid results. These have helped to boost hope that the worst of the credit crisis is over, and now hopefully banks are able to enter a stage of sustainable profitability. However, Pandit sought to dampen
short-term expectations for Citigroup, saying the bank remained cautious “given the uncertain economic recovery and high unemployment in the U.S,” especially considering that just a year ago the bank was looking at losses so drastic that it received two bailouts combining for a total of $45 billion. Citigroup executives also declared that fewer borrowers were falling behind on their credit card loan payments, especially in Asia and Latin America, where the number of troubled loans had declined, and credit quality was drastically improving. So while things are starting to look up for Citigroup (as well as the rest of the economy), clearly the worst is not yet over. One can only hope that this is a sign of continuing economic growth, for not only the company’s sake, but for the sake of all those hit hardest by the recession. Contact Steven at steven.paramo@student.shu.edu
Toyota - Can’t Catch a ‘Brake’; Recalls 2010 Lexus GX 640 By Spencer Lawrence, Money & Investing Writer In the midst of its troubles regarding the safety of mainly its sedans, Toyota Motor Corp. (NYSE: TM) faces another problem now that Consumer Reports has issued a rare “don’t buy” recommendation for the 2010 Lexus GX 460 SUV. While test driving the new Lexus, four of the publication’s engineers found a safety risk they deemed important enough to suggest consumers steer away from luxury sport utility vehicle when making their next purchase. During the emergency-handling tests, the GX 460 “slid out until the vehicle was almost sideways before the electronic stability control system was able to regain control,” according to Consumer Reports. In a real world situation such as exiting a highway ramp, the flaw increases the chances of a serious rollover accident. “Because the GX is a tall SUV with a high center of gravity, our concern for rollover safety is heightened,” Consumer Reports commented.
The handling tests were performed on all 95 SUV’s the magazine has ratings on. “No other in recent years slid out as far as the GX 460, including the Toyota 4Runner, which shares the same platform as the GX,” they said. The recommendation comes at a time when the Japanese automaker is already facing a bundle of negative publicity concerning sudden and unwarranted acceleration in some of its other products. In fact, the company recently confirmed that it will pay a $16.4 million fine to the U.S. government to settle claims that it did not disclose important information regarding the performance of its vehicles to federal highway-safety regulators. Although they paid the fine, Toyota made no admittance of wrongdoing, trying to savor whatever public trust they have left. However, the company may be forced to shell out even more money as U.S. Transportation Secretary, Ray LaHood, said he will continue to investigate the automaker for other possible violations and left open the possibility of more fines in the future.
“We’re concerned with the Photo courtesy of Toyota Motors results of Consumer Reports testing on the Lexus GX 460,” stated Lexus spokesman Bill Kwong. “Customer safety and satisfaction remain our highest priorities. “We take the Consumer Reports test results seriously and appreciate Consumer Reports bringing it Toyota’s troubles continue as its 2010 Lexus GX 460 SUV falls under fire for having an increased rollover chance. to our attention,” he continued to say. The last time Consumer Reports issued GX 460 sport utility vehicles in the U.S. to such a rating on a vehicle was in 2001 for fix problems with software that runs the vehicle’s electronic systems. the Mitsubishi Montero Limited. In the first quarter of 2010, the compaAn electronic stability control system is ny sold 4,800 units of the Lexus in question. installed in the Lexus model which is designed to prevent the very issue that has Contact Spencer at been raised, sliding out in a turn. spencer.lawrence@student.shu.edu Toyota is recalling close to 9,400 Lexus
Celebrities Cannot Hide From the Recession, Nick Cage Loses Home By Scott Giveans, Money and Investing Writer American’s rich and famous have longed been idolized for their lavish lifestyle and standard of living, but not even they could survive this recession unscathed. Turns out that celebrities and high-prolife executives overextended themselves, too, in the housing market upswing and are currently feeling the effects in the downturn. Just this past week movie star Nicolas Cage and Wall Street executive Rich Fuscone joined countless Americans who were forced to foreclose on their home. These multi-million dollar homes will likely be scheduled for a foreclosure auction in the coming months and represents an alltoo-familiar site for Americans superwealthy in recent months. Like most Americans, the super rich splurged in the height of the real estate market and once the crisis hit, they were forced to revaluate their financial situations. Many of the unfortunate individuals foreclosing on their homes are those that work in the financially-service industry and simply cannot afford the properties that they once could because their sector has been devastated by the financial downturn.
again gain control of their home financially. According to a RealtyTrac study for the Wall Street Journal, Americans with over a $5 million loan on their home have seen a sharp uptick in the month of February as 352 wealthy homeowners will have to see their home put up to a foreclosure auction. Nicolas Cage recently foreclosed on his $10.4 million mansion. This is an example of how even the rich are getting a taste of reality as the ripples The figure represents the largest number of from the recession continue. such notices in recent With much of their wealth and funds years and becomes significantly more eyedevoted to the stock market and other finan- opening when compared to last-year’s yearcial securities, the market crash has wiped long total of 1,312 foreclosure notices. out much of their riches. The sudden foreclosure of such high Nevertheless, unlike the typical priced homes is no surprise to Marc American, these wealthy individuals do Carpenter, a San Diego-based foreclosure have many more options in terms of settling specialist, because “The upper end is defitheir debt because their immense amount of nitely a lagging indicator,” he says. wealth and assets enables them to afford According to Marc, these luxury homes years of the distressed property process. simply do not have enough buyers that can Therefore, they often have the ability to afford them and it was only a matter of time delay the process enough so that they can before American rich felt the consequences accumulate the necessary funds to once of the recessional period. Photo courtesy of NY Daily News
In a time of financial downturn, people often reassess their financial situation and choose to pursue the next level of affordable homes. Such is the reason homes under $300,000 have been remaining relatively stable. Many McMansion homeowners who overstretched themselves and were forced to revert back to their lenders have pursued less expensive homes in this price region. However, homes that cost in excess of $5 million, there is not a large market of such buyers who are taking a step back financially into their price range which has resulted in the glutton inventory of multi-million dollar homes. Although these ultra rich Americans really have no excuses for their position, the same can be said for a majority of Americans. After all, these hardships and issues are all relative to the lifestyle that one is accustomed to living and unfortunately Americans rich are getting a taste of reality. Nicolas Cage’s recently foreclosed $10.4 million Bel-Air mansion
Contact Scott at scott.giveans@student.shu.edu
THE STILLMAN EXCHANGE
Money & Investing
TUESDAY, APRIL 27, 2010
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Unpaid Internships: Investment or Illegal? ...continued from page 1 However, if the interns perform operations of the employer or productive work, such as filing, clerical work, or assisting customers, the fact that they may be receiving new skills or improved work habits would not exclude them from the FLSA’s minimum wage and overtime requirements because the employer benefits from the interns’ work. Despite the newly defined restrictions on unpaid internships, the Career Center estimates almost half of unpaid internships were accepted by Seton Hall students. Unpaid internships have been found in all industries but the majority are offered by sports, broadcasting, graphic design, communication, entertainment and the nonprofit industries. In the case of paid internships, the majority are seen in fields of commerce such as accounting, finance, sales and marketing, customer service, and information technology management. Over the past three years, the Career
Center has noted an increase in unpaid internships. According to Jacquline Chaffin, Director of Career Center, “When cultivating a new internship opportunity, we always encourage the organization to provide some type of compensation. This compensation can include an hourly wage, a stipend or covering the costs of commuting expenses.”
“Internships, whether unpaid or paid, offer mutual benefits for the employer and employee.” The Career Center does not necessarily discourage students from pursuing unpaid employment opportunities because students “need relevant work experience prior to graduation as it makes them more marketable to hiring organizations, but for some an unpaid internship creates or contributes to a financial hardship,” comment Chaffin.
Goldman charged with defrauding investors ...continued from page 1 Since ACA was also the synthetic CDO’s largest investor, the firm “had an obligation and every incentive to select appropriate securities.” Goldman also says it never communicated to ACA or other investors that Paulson had any intention to be a long investor in Abacus. The firm does not disclose the identities of those who invest in both the long and short positions of its financial products. The impending court battle between the prestigious Wall Street firm and the divisive governmental agency has significant implications.
reform as banking institutions are further categorized as the villains responsible for the financial crisis and economic collapse. Yet, the accusation of securities fraud against Goldman is difficult to prove. Not only does the firm have top-notch legal counsel, recent actions by the SEC put into question the integrity of the agency. The decision to charge Goldman Sachs came with a split vote between the five commissioners of the SEC. The two objections came from Republicans, suggesting a partisan divide and internal conflict within the agency. Further issues of integrity have surfaced as reports claim employees of the SEC spent considerable work time viewing
Photo courtesy of 1010 Wins Goldman Sachs’ reputation is at risk as the SEC investigates the charges of defrauding investors
Goldman has only recently received substantial criticism for paying large bonuses to its employees. The investors of Abacus are currently examining potential actions against Goldman Sachs in order to recuperate losses. This could also lead to claims from investors of mortgage-related securities against other financial institutions that structured complex financial products. Legal action could also extend the damage to Goldman’s reputation and result in quicker action by Congress to pass financial
websites categorized as pornography.Either way, the stakes for both parties are high. Given the sizeable failures of the SEC to catch recent cases of securities fraud and the reputation of the investment banking and securities powerhouse on the line, the lawsuit will be central in the future direction of Wall Street and financial regulation.
Contact Lee at li.duan@student.shu.edu
In response to the recent release of Federal guidelines regarding unpaid internships, the Career Center anticipates a decrease in unpaid internships as well as a decrease in what has been valuable work and learning internship opportunities for students as many organizations cannot afford compensations and will thus cease offering these programs. However, the Career Center will continue their efforts to match students with job opportunities that emphasize the benefits that students gain from internship opportunities. Internships, whether unpaid or paid, offer mutual benefits for the employer and employee. For students, particularly in the business school, internships provide an opportunity to “test drive” certain fields before they graduate with a degree they might not pursue after graduation. One particular student, who wishes to remain anonymous, worked a paid and an unpaid internship last summer. Although paid internship was in finance, and the unpaid was in marketing,
the Stillman student happened to change her major due to the unpaid work in marketing that she enjoyed much more. Many students who choose unpaid internships recognize the value beyond the paycheck. Internships provide priceless networking opportunities, real world perspective of an occupation, and often times college credit. Along with students, many companies are seeing the advantages of offering internships, aside from the cheap or free labor. While an interview or a company test can add to what an employer knows about a person, an internship helps an employer evaluate how an individual would fare in the actual workplace. As a result, companies utilize this “trial period” to devote time and resources to finding, selecting and training interns in order to secure a return on their investment.
Contact Margaret at margaret.reilly@student.shu.edu
Hewlett-Packard Falls Under Bribery Investigation By Bryan Murawski Assistant Editor The U.S. teamed up with German and Russian authorities who are investigating whether Hewlett-Packard (NYSE:HPQ) Company executives paid millions of dollars in Bribes to Russian officials. The U.S. Justice Department and Securities Exchange Commission are investigating whether HP violated any terms of the Foreign C o r r u p t Practices Act. This law bars American companies from bribing foreign government officials. An HP spokeswoman stated that the company has been in discussions with SEC and is fully cooperating with U.S. and German authorities on this matter. The SEC can levy civil penalties against alleged violators. German prosecutors are trying to figure out if HP executives paid an estimated $10.9 million in bribes to win a €35 million contract to supply computer equipment throughout Russia to the countries prosecutor general (the federal authority responsible for handling criminal cases). Prosecutors from Germany have focused their inquiries into the suspected bribes on one current executive as well as two former executives who once worked for the U.S. Computer manufacturer, according to German court records and sources familiar with the case. Former head of HP’s sales operations in Russia is included in the investigation. German authorities ordered the arrest of the accused three in early December with the charges of suspicion of bribing foreign officials, tax evasion and breach of trust. All have since been released on bail and have yet to be indicted. This investigation comes at a rather bad time for HP. The company has been trying to repair its image ever since 2006 when the boardroom spying scandal caused criminal prosecutions, civil lawsuits and a resigna-
tion of the company’s chairwoman. Russian investigators raided HP’s Moscow offices recently for any information involving this latest scandal. The raid was in connection with the German bribery probe which has been underway for two years, according to court records. Prosecutors expect that a German HP subsidiary sent €8 million in bribes to Russian officials a f t e r receiving an initial €35 million payment for the Russian contract. The money was suspected to be pushed through three German middlemen, all independent sellers of HP’s equipment and based in Eastern Germany. The three middlemen are expected to have received funds provided by HP for equipment they never purchased. Instead the money found its way into bank accounts for shell companies in Latvia, Lithuania, Austria, Switzerland and Belize. In return, the suspected middlemen allegedly received commissions totaling several hundred thousand dollars. Authorities say they are still attempting to determine the ultimate recipients of the payments which were sent between 2004 and 2006. The records appear to contradict a statement made by HP that says that the German investigation involves alleged conduct that occurred almost seven years ago. As investigators continue to sift through more than 3,000 emails and thousands of pages of additional evidence in an attempt to identify any potential beneficiaries of the suspicious transactions, HP can only wait to see if anything can be found. If any more evidence is found against HP they might have a hard road ahead in the near future.
“Prosecutors expect that a German HP subsidiary sent €8 million in bribes to Russian officials after receiving an initial €35 million payment for the Russian contract. The money was suspected to be pushed through three German middlemen...”
Contact Bryan at bryan.murawski@student.shu.edu
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TUESDAY, APRIL 27, 2010
Stillman News
THE STILLMAN EXCHANGE
Managing Editor Advises Future Pirates and Bids Farewell to The Hall By Gerardo Pecoraro, Managing Editor As my time at Seton Hall draws to a close, I would really like to take a brief moment to offer some words of advice for the future Pirates; reveal some insights for the future Stillman Exchange staffs; as well as thank some of those that have helped me in my journey. I would like to begin by giving three quick pieces of advice to all future Pirates. As an editor and a Freshman Studies peer adviser, I have learned many things but the most important are the following. First, take chances. Take chances on experiences; with people; and with boundaries. No one ever did anything great without pushing the limits once and a while and taking a leap of faith. Next, seek out friends that will challenge your mind, heart and spirit. They can share your major, your classes, your age, your interests, or your passions – the key is to choose those that will encourage you to move forward. Lastly, do not ever hold back. College will be the best four year of your life if you just open your mind to it and embrace it all. Make those mistakes and learn from them. Each of us has the potential to change the world, but we cannot be sure that we are ready unless we have learned from our earlier mistakes. For the future Exchange staffs, please keep one thing alive in your hearts as you move forward – this newspaper is more than words on page, this newspaper is a home. It is a home for all students across all disciplines to come, learn, and share in all the experiences this newspaper has to offer. We began as a concept, and though tireless
Photo courtesy of The Stillman Exchange
effort, we became a practice. Today, we transform concepts into practice every day though every student on our staff. Finally, I conclude by thanking some of those individuals that have helped me achieve so much. First of all, I would like to thank Magdalena Dewane, my newspaperpartner-in-crime for the past 4 years. I started working on the staff because of her. We have shared many fond memories and I thank her for helping me become the leader I am today. I would also like to thank all of my former managing editors, Frank Anguiano, Michael Bellom, and my former assistant managing editor, Paul Seda. These three gentlemen inspired me from the very first day of being on staff and ever since that day I have pushed myself to emulate their efforts and enhance the name of this news-
paper and what they started five years ago. To the editors and staff members of The Exchange, both past and present, I would like to thank you for working patiently with me, growing with me, and pushing me to be the best I can be. Without you I could never have learned as much as I did. I know I made mistakes, but I thank you for sticking by me. It has been a terrific journey and I thank you for making us a premier college newspaper! You have exceeded all of my expectations and for that, I thank you. Also, earlier this year I got to do something unimaginable to me; something I never thought I would ever do during my four years here at The Hall. After a year of toying with a very advantageous idea, Dean Karen Boroff and I took a leap of faith and created the nation’s first college bilingual Mandarin Chinese/English business news-
paper. With that honor I got to meet and work with some very amazing Chinese exchange students. To my new friends, especially Herbert Chao Xu, thank you for taking that journey with me. It has been a great one and I wish you all the best of luck in your coming years. A special thank you goes to Ian Mehok, my friend and my successor. He has exceeded all of expectations and I know that he will continue the longstanding tradition of quality, excellence, professionalism, and integrity that this organization was founded on. I would like to thank you most of all of the Seton Hall faculty and administrators for all they have contributed to my success. First, I would like to thank Professors Tony Loviscek, Scott Rothbort and Michael Reuter. Each of you, in your capacity as faculty advisers, has propelled me to higher heights; thank you. Finally, to the deans of the Stillman School of Business, thank you for your continued support of this newspaper and me. In a special way, I would like to thank Deans Karen Boroff and Joyce Strawser. I am eternally grateful for the support, encouragement, counseling and love these two amazing leaders have given me over the years. Even before I began my journey at Seton Hall, these two have been my strongest confidants – so thank you, I would not have achieved so much without your support. Continued success to all of you and good luck Class of 2010, Go Pirates! Contact Gerardo at gerardo.pecoraro@student.shu.edu
‘FASB-ulous’ senior Mathew on the Road to Success in Accounting By Beverly Makarios, Assistant Editor Timothy Mathew will be receiving his Bachelor of Science in Business Administration this coming May with a concentration in accounting - a field that he has genuinely prepared to build his career upon. His skills and aptitude in accounting have proved successful in his academic and professional career. Tim has made Dean’s list all semesters with an astounding major GPA of 4.0. He is also a member of National Society of Collegiate Scholars and Golden Key International Honour Society. In the following interview, Tim looks back on his four years at Seton Hall, his accomplishments as a student leader, and the experience that brought him to Egypt and back to fulfill an enriching undergraduate experience. Beverly Makarios: How has your position as President of Beta Alpha Psi enriched your experiences as an undergrad? What changes have you made and why were they made? Lastly, what advice would you offer to students who are considering taking on leadership positions? Tim Mathew: I do not know where I would be in terms of my career if it were not for Beta Alpha Psi. As a junior, the honor society helped shape me into a professional. I decided to run as the President to give back to an organization that gave so much to me. However, after serving as the President for one year, I feel more indebted to this honor society now than I did a year ago. My expe-
riences as President have vastly improved my leadership, communication, public speaking, writing, and networking skills. I have developed relationships with faculty, students, and professionals from various companies that would not have been possible if it were not for my position. One of the changes made this year was the decision to target more sophomore students to join Beta Alpha Psi. My Executive Board and I decided to do this because many of the major accounting firms decided to change their summer internship interview schedules from the middle of the spring semester of one’s junior year to the beginning of the fall semester. We felt that it would be advantageous for students to join Beta Alpha Psi as sophomores so that they could get exposure to professional environments and develop relationships with recruiters before their potential interviews. If the opportunity is there, I would advise all students to take on leadership positions. The benefits are immeasurable and the skills learned are invaluable. Not once did I regret taking on my leadership position. BM: You recently accepted a full-time job offer with PricewaterhouseCoopers (PwC). How do you think your education and experiences in Seton Hall, overall, have prepared you for this job? TM: First of all, I do not think that I would have received a full time job offer from such a great accounting firm if it was not for Seton Hall. This university has shaped me into a young man with the two characteris-
tics that the Stillman School of Business always stresses – integrity and professionalism. I know that the education I have received is first rate and I am confident that the business school has provided me with the knowledge and skills necessary to be successful at PwC. Through the school, I was able hear advice from many reputable sources, ranging from new hires to CEO’s of Fortune 500 companies. Not only has the Photo courtesy of Tim Mathew university given me As president of Beta Alpha Psi, Tim’s leadership skills have improved the tools necessary to the organization by implementing new changes in the most beneficial ways to undergraduates hoping to enter the organization. be successful, but it has also taught me how to ing businesses in Egypt or ancient sites, use them. there was rarely a moment when I was not BM: What kind of experience did you amazed. I would definitely recommend this have while participating in the Doing course and any other study abroad courses Business in Egypt course? Would you to Seton Hall students. In the global econorecommend other undergraduates to my that we live in today, it is imperative that students see the world from different pertake up study abroad courses? Why? spectives and experience other cultures. TM: The Doing Business in Egypt course was one of the best experiences of my life. I was able to spend about two weeks with Dr. Wagdy Abdallah and other great students in Seton Hall. Professor Abdallah does an excellent job at preparing the schedule for this course. Whether we were visit-
For the complete interview with Tim, visit www.stillmanexchange.com. Contact Beverly at beverly.makarios@student.shu.edu
Stillman News
THE STILLMAN EXCHANGE
Corporate and Entrepreneur Leaders Discuss Advantages of Big Business vs. Your Business By John Ceniza, Stillman News Writer On Monday, April 19, McNulty Amphitheater was packed with interested business students eagerly waiting to hear representatives from both the corporate and entrepreneurship sides of the business world. The event began with the guests sharing their background in their respective fields. On the corporate side were Mark Stodden, an Equity Research Analyst at Train Babcock Advisors, and Gabino Roche, Director of Application Development at NYSE. On the entrepreneur side were Caesar Mistretta, owner of the J.M. Stringer Art Gallery, and Brian Jakovcic, CEO of Uvisor.com and President of Fusion Capital Management. The highlight of the event was the exchange of questions from the audience specifically targeting the corporate workers and entrepreneurs, and answers from the panelists. One audience member asked the corporate side whether or not they felt like their creativity was limited by their very structured career. The corporate panelists admitted that their inspiration is very limited as compared
TUESDAY, APRIL 27, 2010
7
Stillman Faculty Train with the Best from AT&T
to entrepreneurs, but it is not totally useless. There is room for inspiration in a more local level, such as the department or team you work with. Another audience member asked the entrepreneurs how they felt about not having job security in their jobs. Both men agreed that the future of their businesses is much more uncertain, but they enjoy the benefits that come with being a business owner. Also, the fact that there is no limit to their ranking in the office is a positive thing. As Jakovcic plainly put it, “the sky is the limit.” At the end of the discussion, corporate panelists, Stodden and Roche’s, final advice for the graduating students looking to land a corporate job was that one must know the company and position they are applying for very well. Entrepreneurs, Mistretta and Jakovcic, ended the discussion by answering the question, “What keeps you busy?” They both answered that they think about how to make the next sale and how to continuously improve their businesses.
Contact John at johnalex.ceniza@student.shu.edu
By Gerardo Pecoraro, Managing Editor
Justin Masucci. “With programs like this one, I know the faculty will be better prepared with examples for future classes”. The seminar was arranged by Bob Sloan ’86 MBA, Chair of the Stillman Marketing Advisory Board and Vice President Business Marketing for AT&T, and Dr. Steve Pirog, Chair of the Stillman Marketing Department. Funded by AT&T, with additional financial support provided
A day-long corporate training seminar was recently completed by business faculty members on April 16 at AT&T’s well known Bedminster facility, the GNOC (Global Networking Operations Center). The seminar included presentations from AT&T marketing, management and human resource leaders on topics such marketing position and strategy, product and pricing approaches and branding and advertising tactics. The purpose of the seminar was to further strengthen and expand Stillman’s corporate relationships and provide its faculty with direct contact and training in real world busi- Photo courtesy of Bill Attardi ness strategies and mar- Dr. Stephen Pirog stands with Mr. Bob Sloan ‘86 MBA at AT&T’s Global Networking Operations Center ketplace applications. Through programs, such as this, the faculty by the David Farris Faculty Internship can help enhance the educational experi- Program, professors and associate profesence for all Stillman students. sors representing approximately 40 percent “I have always told professors that I of the Stillman faculty were in attendance. wanted to learn more through the use of real world examples of the topics discussed Contact Gerardo at in class, commented Stillman student, gerardo.pecoraro@student.shu.edu
Letter From the Editor: Four Years Back and a Farewell By Tiffany Dindial, Stillman News Editor Four years ago when I stepped into the Faculty Library in Jubilee Hall for an interest meeting for The Stillman Exchange, I had absolutely no confidence that I could write for any publication, let alone the publication for the entire business school. My number one priority attending the meeting was to have my Stillman passport signed to win some mysterious prize awarded to the student who attended the most Stillman School Passport Events. After attending the first meeting, I decided to try writing an article for Stillman News covering a business fraternity on campus called Alpha Kappa Psi, an organization that I was pledging for at the time. With much enthusiasm and assistance from the Stillman News editor, Jerry Pecoraro, I was published for the first time. Throughout the years working with this remarkable newspaper, Jerry has been a mentor and a friend whose guidance and leadership I counted on every step of the way. I am enormously grateful for his dedication to the paper and the success of his writers as well as the confidence he had in my ability and potential to write for the publication. My predecessor, Rich Posluszny, deserves my gratitude for teaching me technique and the in’s and out’s of the publishing world and I would not have felt prepared to become Editor without him. He is an amazing writer and it is inspiring to know that he pursued a career that allowed him to
Photo courtesy of Tiffany Dindial
write while utilizing his finance degree, which is what I would like to aspire to do as well. The approaches that I took to lead my staff can be attributed to what I had learned under both Jerry’s and Rich’s leadership. As graduation is quickly approaching, I can honestly look back at the past four years without regrets of wanting to do more with my time at college. My advice to those looking to make the most out of their four years is to get involved not only because it will undoubtedly help during the job application process, but it can allow the development of skill sets that normally cannot be gained in a classroom setting. Getting involved can also grant opportunities such as meeting new people, networking, or gaining leadership experience. Most importantly, get involved with activities you enjoy and try some that you do not.
Once I started looking for internships, every professor and faculty advisor preached ‘networking.’ I knew what I had to do, but I did not exactly know how. After countless attendance at networking events put together by both the Career Center and almost every Stillman Club, it was unequivocal that networking, or simply talking to people who had already entered the workforce, was a strong base for learning how to present myself, my ideas and thoughts, and my intellect. After one of these events, I applied for an internship and kept in contact with several of the professionals I had met from the company by simply conversing via email. When I was offered the internship, I walked into the office on the first day with well formed relationships with half of the people I worked with. The Stillman School of Business offers countless resources and events - make the most of them. To my staff and especially my Assistant Editor, thank you for caring about the newspaper as much as I do and for always putting in your best efforts. I can only hope that I have offered you the guidance that I so luckily received during my time with the paper. Needless to say, I never came close to winning that Stillman passport prize because after that first interest meeting, I knew exactly how I wanted to spend my time at Seton Hall and it was one of the best decisions I have made. Contact Tiffany at tiffany.dindial@student.shu.edu
Students Push Career Boundaries Through Motivational Mentors By Ryan Garrity, Stillman News Writer For students, being is college is all about expanding their comfort zone. Some students do this by joining clubs, fraternities, sororities, playing intramural sports and getting jobs on campus. Students at the Stillman School of Business, however, have found a new way to expand their zones: the Corporate Mentorship program. Brainchild of Stillman School’s Dean Karen Boroff and directed by Michael Reuter, the program was incepted three years ago with the purpose of acculturating the school’s freshman and sophomore students, especially those of different ethnic
heritages, to corporate life. Under the program, students in teams of two are paired with a mentor. Mentor companies range from ADP to Alcatel-Lucent. Over the course of the academic year, students will meet with their mentors four to six times to learn about the mentor’s career path and how to develop their own competencies as they progress through their studies. In speaking with Michael Reuter, he described the program as “something that is very simple; an experience that gives students the opportunity to garner advice from senior executives, networking opportunities, a contact to maintain for the real world, and a chance for fantastic internships.” He went on to speak about students
who get truly involved with this program and how much they are able to take out of it, which is evidenced by the feedback received from those students. At ADP for example, the executives were described as “awesome”. They sat down with the students, discussed their resumes, role played interviews, discussed business strategies over lunch, and showed them that they truly love what they do at their company. There are no set requirements to participate in the Corporate Mentorship program. According to Reuter, the only requirement is that students must be willing to sign up and stretch themselves. To evidence this, he drew two small circles on a piece of paper. The inner one showed students comfort
zones five years ago—the outer one where the zone stretched to now. It was easy to see through this example that the goal of the Corporate Mentorship program is to push students to expand this zone even further. Reuter stated that he “wants students to be more than they ever dreamed they could be, but it’s up to them to push their boundaries.” The Corporate Mentorship program has excelled in helping students achieve this for the last three years and it certainly seems that it is poised to continue that trend for years to come. Contact Ryan at ryan.garrity@student.shu.edu
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TUESDAY, APRIL 27, 2010
Ethics
THE STILLMAN EXCHANGE
Sticks and Stones May Break Your Bones, But Finger Guns Can Never Hurt You? A young girl recently received three days of suspension from school for terroristic threats. The student shaped her hand like a gun and pointed it in the teacher’s direction. Is this an ethical example of the school’s zero tolerance policy, or is it an excessive abuse of power? too?
Christina Bosco: Senior, Marketing Major
Kids Will Be Kids, Not Terrorists Zero tolerance policies are common procedure in nearly all school districts nationwide. These days, it’s understandable as to why there is a need for such serious procedures. Unfortunately, there are some schools that don’t understand the legitimacy of a zero tolerance policy and will use it as a first resort for punishment. Personally, using zero tolerance as an excuse to punish every act suspected as violent seems a little too cautious. In fact, if used too much, it can be counterproductive and may even diminish the severity of an otherwise very important matter. Take Taylor, for example, a 13-yearold honor roll student from Texas, who was suspended for three days for a hand gesture people make daily; a shooting gun. She and her friends were simply goofing around yet, when the teacher turned, she only saw a gun-shaped hand inadvertently pointed in her direction. And those hands, just so happened to belong to an innocent, playful girl. To the teacher, it was considered a “terroristic threat” and immediately reported. But to her parents and to me, it all seems just a little ridiculous. There are many reasons why enforcing a zero tolerance policy for a small act like this is too much. For one, how many 13year-olds haven’t made that gesture before? In fact, Taylor was not the only one making it; her friends were making that same gesture. Why weren’t they punished,
Liliana Garcia: Senior, Psychology Major
Paranoid School System A child was playing a game and pretending to be a police officer, it is not like she was pretending that she really had a gun and was directly aiming it at the teacher saying “I’m going to kill you”. That would have been a direct threat to the teacher and in my eyes, cause for suspension. However, just because she was pretending to shoot at the blackboard and the teacher happened to be in the way, does not mean that she was threatening the teacher’s life. It is understandable that we have to be cautious with all the dangers there are in the world but we have gone from just being cautious to reporting every little thing and acting like they are major offenses. Even if the child had explicitly threatened her teacher, there was no need for her to be labeled as a terrorist. Things are getting too out of hand and we are just allowing it, while claiming that it is for the better. Everywhere you go people are scared to say things or do things. People are afraid to go to the airport and act weird or be excited because they are scared of being pulled aside and being interrogated for suspicious behavior. Just imagine being in an airport and
Secondly, Taylor’s aim was toward the chalkboard and not the teacher. The teacher did, however, happen to be standing beside the board and so the chances that she would eventually end up in Taylor’s aim were pretty likely. Thirdly, we must consider Taylor’s punishment. She was suspended on the grounds of what the school considers a “level 4 terroristic threat,” the same category as those guilty of assault, public lewdness, and selling drugs and/or alcohol at school. Tell me, how does a mistaken hand gesture compare with assault and the selling of illegal substances? The truth is that it doesn’t. And now, because of the school’s serious punishment, Taylor is being harassed and bullied by her fellow students for her actions. What’s funny to me is how the school couldn’t see this one coming. Bullying plays a huge part in almost all reported school violence! In fact, statistics from the Bureau of Justice show 86% of students agree that “other kids picking on them, making fun of them or bullying them” causes teenagers to turn to violence in school. Pretty ironic, right? The school certainly did what it thought was right, but sadly, at the price of a young student’s reputation. I commend the school for taking its zero tolerance policy so seriously, but sometimes things can get blown out of proportion. It’s necessary to be cautious, but in the end, you have to keep in mind that a kid is still a kid, and in a situation like this, a stern reprimand would have sufficed. Contact Christina at christina.bosco@student.shu.edu telling your traveling partner the story of an experiment you did last week in your chemistry class near a TSA officer. Ten minutes later, you are in a back room and suspected of being a terrorist. We may have to be careful, but there is a difference between caution and extreme measures and we seem to be moving towards the latter, as a society. When my generation was growing up, it was still okay for children to roughhouse and play in the streets. Now, that would just be looked down upon as hoodlums misbehaving and only causing trouble. Playing cops and robbers or cowboys and indians used to actually be a game, not grounds to get suspended from school and labeled with the serious term of terrorist. The word terrorist is thrown around too easily lately; it seems like all you hear on the news are stories about various terrorists. According to Merriam Webster, terrorism is the “systematic use of terror especially as a means of coercion.” With this in mind, how on earth can you say that a 13-year-old girl pointing her finger at you caused terror? This is a term that should only be used in extreme cases. We can’t just label every small threat or criminal act as terroristic, because it is a much more serious claim.
Contact Liliana at liliana.garcia@student.shu.edu
Photo courtesy of Baekdal.com
Kimberly Bolognini: Sophomore, Journalism Major
Putting Children and Teachers at Risk is Not a Joke Taylor Trostle, a 13-year-old attending Dr. Karl Blyel Junior High School was suspended for three days for pretending to be a police officer with her friends at the end of math class. She made her hand in the shape of a gun and the school claimed that she was pointing the “gun” at her math teacher. She was suspended for making “terroristic threats” and her teacher told the principal that she was scared for her life. Don’t get me wrong, this seems to be a drastic punishment for some kids just playing around, but the truth is, where are the boundaries? How do we truly know when a child is just joking around with friends or truly threatening a person or a group of people? In today’s society, we are forced to take drastic measures to protect the lives of innocent people. Taylor did seem to just be playing around with her friends, but not every kid has those intentions. In this day and age, children and teens have become more and more destructive and harmful towards others. Bomb threats in schools are practically routine now, because they occur so frequently. We must be cautious about these threats because we do not know who is truly just messing around with some friends and who is really out to hurt others. In the past, if someone had something to say it would just be by word-of-mouth, but with the new and upcoming technologies, there are so many different ways people can make threats.
Schools almost feel helpless in this situation because it is so hard to monitor students across all technological domains such as Facebook, Myspace, blog websites, Youtube, Skype, instant messanger, text messaging and many others. So, the schools feel obligated when they hear or see something suspicious or threatening to take drastic measures. I think it is completely ethical that Taylor was suspended for three days because of her actions. Schools would rather suspend students than be at risk for students getting harmed. People have to learn that they can’t just go around joking about inflicting harm on others, especially in public. A perfect example is airplanes; if someone is caught shouting “bomb” out loud in an airplane, they are automatically thrown off the flight.
“How do we truly know when a child is just joking around with friends or truly threatening a per son or group of people?” Life is not a joke and neither are potential circumstances for people to be at risk. If people can’t understand this, then they don’t care about protecting themselves. It is so important to think before you do and say everything, because there are severe consequences for engaging in what could be interpreted by others as terroristic threats.
Contact Kimberly at kimberly.bolognini@student.shu.edu
The Stillman Exchange proudly offers students, faculty, and administration the opportunity to write about their views on controversial topics. These opinions are to be read as the opinions of individuals and not the views of the newspaper as a whole.
THE STILLMAN EXCHANGE
TUESDAY, APRIL 27, 2010
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Editorials Dean Boroff Moves on as Stillman School Moves Forward By Tiffany Dindial, Stillman News Editor After 10 years of improving and enhancing the Stillman School of Business, Karen Boroff has decided to step down as Dean. According to Dean Boroff, her decision was based solely on the next cycle for the Stillman School’s Association to Advance Collegiate Schools of Business (AACSB) accreditation renewal. The cycle is five years and she did not see herself saying in the position for the entire five year period. “I didn’t want to consume the runway for a successor.” It would be much tougher if the successor had only two or three years to get ready for the accreditation process and “I didn’t think that was the right thing to do,”
said Dean Boroff. As far as personal goals, Dean Boroff stepped into the role wanting to advance the reputation of the school. She wanted the School to be better tomorrow that it was today. The school has advanced in countless ways from the mere design of the school to recognition in their rankings. Although it can be hard to pinpoint one accomplishment that she has achieved during her time as Dean, in 12 years the Stillman School of Business has built a trading room, entrepreneurship room, sports polling center, and The Stillman Exchange among others, while attaining incredible BusinessWeek rankings as well as strong improvements in job placement rates. The most satisfying aspect about being Dean was having “so many supporters –
students, alumni, people that were willing to invest in the school when they were strangers to the students, but not strangers to the school…people who were willing to entrust their hard earned money to us to make us a better place, and I found that very, very satisfying,” said Dean Boroff. As far as obstacles in her career, Dean Boroff said that there will always be disagreements but she is comfortable with the decisions she has made and still thinks they were the best decisions in her opinion. “You never get head by putting down the next person, you get head by working on your own game, on your own quality…if you had to make a choice between doing something this way or that way, which is the one that is higher quality and that one is probably going to be the way to go,” stated
Dean Boroff. Fortunately for the Stillman School and Seton Hall, Dean Boroff will be returning, after a one year sabbatical, as a professor within the Department of Management. According to Dean Boroff, she is excited to start working on a closer level with students and to learn and master the new technology that teaching now requires. Dean Boroff will officially step down at the end of business on June 30, 2010, but the process for selecting the new dean can take place beyond that date. Provost Gabriel Esteban will be reaching out to Dr. Rob Weitz, in his capacity as Chair of the FASB, will convene a search committee to discuss the next steps in the dean staffing process for the School. The committee may decide to appoint an interim or an acting dean as they search for more candidates outside of the Stillman School. The search committee typically consists of some faculty members, possibly an appointed student, an alumnus, and typically another Seton Hall dean from outside the Stillman School. Dean Boroff said she plans on giving her successor as much knowledge as possible while being as supportive as she can. It will be difficult to find a successor that possesses Dean Boroff’s vision, professionalism, and aptitude for moving the Stillman School of Business forward, however, the fact that she will remain a part of the faculty will be a comfort to many of her co-workers as well as students and alumni. Contact Tiffany at tiffany.dindial@student.shu.edu
The Stillman Exchange The Official Business Publication of Seton Hall University
Executive Board Managing Editor Gerardo Pecoraro Assistant Managing Editors Ian Mehok Margaret Reilly
Editorial Board
Assistant Editors Money and Investing Bryan Murawski Stillman News Beverly Makarios Ethics David Guzik
Money and Investing Ian Mehok
Sports Kayla Mjaatvedt Travis Tosoni
Stillman News Tiffany Dindial
Domestic News Morgan Tornetta
Ethics Caitlyn Cafferty
International News Kaitlin Tonti
Editorials Anthony Crisci
The Stillman Exchange would like to thank the Seton Hall community, administrators, faculty, and students that have contributed to the success of this publication and continue to support our efforts.
Sports Rich Kimsey
Faculty Advisers Karen Boroff, Ph.D., Dean Michael Reuter, M.B.A.
Domestic News Rachel Ressler
E-ma il stillmanexchange@shu.edu
International News Danielle Storm
Website www.stillmanexchange.com
International Business Alex Cohen
Twitter stillmanXchange
Webmaster Christine Wotton
Fa cebook The Stillman Exchange
About The Stillman Exchange is the first undergraduate published business newspaper in the United States. The Stillman Exchange is published on a bi-weekly basis from the Center for Securities Trading and Analysis in the W. Paul Stillman School of Business at Seton Hall University.
In particular, William Attardi Jacquline Chaffin Theresa Deehan Joanne DeStefano Tayna Dixon Pamela Dungee Carol Flynn Reesa Greenwald Andrea Garrido Kelly Hill Donna Jackson-Robertson Jill Mathews Meredith Mayes Vincent Nalupta Leigh Onimus Karen Passaro Melody Puliti
Elven Riley Scott Rothbort Susan Scherreik Jack Shannon Joyce Strawser Riad Twal Jason Yin Yeomin Yoon In a special way, Karen Boroff Jim O’Brien Judy O’Brien Michael Reuter Msgr. Robert Sheeran Members of the Seton Hall Board of Regents
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TUESDAY, APRIL 27, 2010
Sports Business
THE STILLMAN EXCHANGE
NBA sponsors turning to digital advertising for playoffs By Scott Kim, Sports Business Writer For the playoffs this year, NBA sponsors are looking to expand advertising through the use of digital media. After maxing out their advertising in other areas, the sponsors are now looking to get creative through the use of digital advertising. “Sponsors are looking for more creativity in digital and social media and in finding ways to leverage their rights in those places,” said NBA executive vice president Mike Tatum. One way that Kia is reinventing advertising this year is by allowing the fans to become more involved. Fans can now have a say in who wins the MVP, Defensive Player of The Year, Most Improved Player, and Sixth Man through voting. Fans’ votes will count just as much as the media members who vote now. Whoever decides to vote also gets entered into a sweepstakes where the winner gets to enjoy the Finals by watching a game with all time greats Kareem Abdul-Jabbar and Julius Erving. This promotion is receiving TV, digital and courtside advertising. Right Guard, another sponsor of the NBA, is planning to expand digitally as well. It is
joining forces with Turner for a “Win or Go Home” Sweepstakes that offers a trip to the 2011 All-Star Game as the grand prize. Right Guard’s online “Total 5 MVP Program” allows users to create an avatar online, collect the clues on NBA.com that help in completing missions throughout the site, and collect points that can be exchanged for virtual prizes. Adidas and Nike’s Jordan Brand are also planning on getting involved in the new digital advertising. Anheuser-Busch has a “Thirst Quarter” playoff promo that allows fans the opportunity to sit in special Bud-branded prime seats for postseason games. Another plus to winning this promotion is that you will get a public address announcement and you will be recognized on the big board. T-Mobile is again allowing for online and text message voting for the Player of the Game Award. Cisco also has a digital campaign called “Amazing Is” where fans are allowed to create mix tapes of over 100 playoff moments and share them over Facebook and Twitter. With companies always looking for new ways to advertise their business, this year’s NBA Playoffs are no different, and have led to a digital revolution in advertising.
Contact Scott at william.kim@student.shu.edu
Breeders’ Cup looking into permanent home for race By Ian Baker, Sports Business Writer Greg Avioli, Breeders’ Cup CEO, announced that the Breeders’ Cup Board of Directors could soon make an announcement about moving the Breeders’ Cup to a permanent location for years to come. The Breeders’ Cup World Championship is an annual series of thoroughbred races held over a period of two days in the first week of November. It was established as a year-end championship for North American horse racing, but allows international horses to race as well. Traditionally the Breeders’ Cup changes its location every year. The last venue to have hosted the event in two consecutive years is Santa Anita Park in 2008 and 2009. However, the Breeders’ Cup is looking into moving to one location for an extended period of time. There are many upsides to moving to one select location. Avioli says that one major advantage is the opportunity for sponsorship from local and national corporations. Horse owners would also not have to worry about preparing for different tracks since it would be the same track every year. In an operations standpoint, holding the event at one track every year would eliminate much of the planning and work needed to set up the event at a different track every year. Avioli has said that the Cup has seen two of its most successful years come at Santa Anita. The track seems like an ideal location because of its facilities and the good year-round weather. Considering the event is held in the first week of November, weather could be a large factor in picking the location of future races. Santa Anita Park CEO and President Ron Charles said that he is
Photo courtesy of Getty Images The Breeders’ Cup has had success of the track in Santa Anita. The ability to find local sponsors is also a strong reason why one track may be best now.
interested in hosting the event for years to come. However, other big name tracks such as Churchill Downs are still in the discussion. Race caller Travis Stone feels that the Cup
has a good chance of being held at Churchill Downs. He argues that the board likes Churchill Downs because it consistently outperforms other venues. Churchill Downs also has the advantage
that it already has a large core fan base considering that it hosts the Kentucky Derby every year. Contact Ian at ian.baker@student.shu.edu
Octagon Digital develops way to use athletes to monetize Twitter By Anthony Crisci, Editorials Editor The social networking community has grown to ridiculous numbers over the last couple of years, and most recently it has attracted even the most highly paid sports stars. Teams’ and athletes’ popularity has begun to explode in the eyes of these social networks, obtaining thousands upon thousands of followers on websites such as Twitter. On April 9, an official service tendering to the sports world came alive. FanWaves was launched earlier this month as the socalled “brain child” of Octagon Digital, which combines news and popular sports links from Twitter accounts. The first teams to start using this new gadget were the New York Knicks and the Phoenix Suns. Immediately following the two teams were superstars Chris Paul and Rudy Gay on their own personal accounts. The new system works differently than the everyday tweet on the web page. Instead
of a team or athlete pushing for a specific product or company, the system simply puts out ads at the top of the web browser for any account that is tweeting and using FanWaves. Instead of having ads directly in the feed of the twitter account, FanWaves allows the athletes and teams to sponsor ads at the top of the browser where the usual banner ads already appear. At the same time, Twitter just recently announced its new advertising model named “Promoted Tweets”, which may cause a little rivalry between the two systems. Jim DeLorenzo, Vice President of Octagon Digital talks more about the new structure. “One of the things that our athletes and the agents that represent them were saying is, ‘We don’t want to insert an ad directly into the Twitter stream.’ Because it's a very personal connection that fans feel they have with an athlete through Twitter,” DeLorenzo said. “That’s one of the reasons why
it’s so popular and why so many fans follow athletes on Twitter—it feels like they have that direct connection.” FanWaves produces income for a number of parties including the company itself, the company in which the ad is promoting, as well as the team or athlete that is promoting it. The advertiser simply comes in with a number that they are willing to spend to promote through a particular athlete, obviously the more followers and athlete has the more expensive the ad will cost. The athlete has a rate card with the amount of money they wish to charge for the ads. At the end of the day everyone makes money, and it keeps the stream of Twitter free from ads that are not needed.
Contact Anthony at anthony.crisci@student.shu.edu
THE STILLMAN EXCHANGE
Sports Business
TUESDAY, APRIL 27, 2010
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Microsoft sponsor Coyotes find on-ice success amidst financial troubles finally beginning to pay off, as the Coyotes past two seasons, including winning the the Seattle Storm By Travis Tosoni, Assistant Editor saw back-to-back sellouts in their first two Stanley Cup in 2008. Phoenix is certain a By Anthony Holesworth, Sports Business Writer Microsoft recently made a deal with the Seattle Storm to become the third company to put its name on a WNBA team’s jersey. The new Storm jerseys will be promoting Microsoft’s new search engine, Bing. On the jerseys, the Bing logo will be placed above the numbers, where the team’s name normally is. The other two WNBA teams who have signed jersey deals with companies are the Los Angeles Sparks and the Phoenix Mercury, who last year signed with LifeLock and Farmers’ Insurance, respectively. In its fourteen years of existence, the WNBA has struggled with popularity and consequently, profits. America’s economic recession made it even harder for the league to survive. Jersey advertising has helped turn things around for the WNBA teams that have participated thus far. “Last year was hopefully the low and we’re starting to rebuild. This is a very visible sign that the league is moving onward and very upward,” Storm president Karen Bryant said. The advent of companies advertising
It seems that every year, there is a feelgood Cinderella story in the sports world. This year there is no feel good story that can match that of the Phoenix Coyotes. Rumors of the team’s relocation out of Phoenix began swirling soon after the franchise declared bankruptcy. Then to begin training camp, the Coyotes fired head coach Wayne Gretzky and replaced him with Dave Tippett. Couple all of this with dwindling fan support and a lackluster lineup and you are bound to have a terrible season. Phoenix has been able to prove all of its critics wrong, and the team soared through the regular season, winning 50 games and collecting 107 points, which are both franchise records. The Coyotes earned a berth in the NHL playoffs as a number four-seed in the Western Conference and a first round match-up with the Detroit Red Wings. The Coyotes have been led this season by goaltender Ilya Bryzgalov, whose stellar play in net resulted in the third-fewest goals allowed during the regular season. Along with Bryzgalov, Phoenix was led in scoring by mid-season acquisition Wojtek Wolski, who notched 23 goals and 65 points. First-year coach Dave Tippett is at the helm of this fantastic turnaround, and led the struggling franchise to its first postseason berth since 2002. This newfound success is
home playoff games. The same team that played in front of a home crowd of only 8,000 fans in October is now battling for the
first round victory would silence any remaining critics. This amazing run to the playoffs has
Photo courtesy of Getty Coyotes teammates have rallied around each other even though the financial situation is uncertain.
Stanley Cup in front of 17,779 excited supporters. Despite all of this success, doubters still see the Coyotes as underdogs in their first round matchup with the Red Wings, who have made it to the Stanley Cup Finals in the
brought a passion for hockey back to the desert, and the increased fan support and revenue will go a long way in helping keep the Coyotes in Phoenix for a long time. Contact Travis at travis.tosoni@student.shu.edu
NFL could benefit from new rookie pay scale By Robert Szeluga, Sports Business Writer
Photo courtesy of NY Times Bing will adorn the front of the Storm uniform.
their products on sports uniforms is widely popular around the world, especially in the world of soccer. However, in the United States, the advertising method is frowned upon by most professional sports leagues. “Advertising on uniforms is done all over the world and in most sports it creates increasing value in a crowded marketplace,” The president of the WNBA, Donna Orender said. Although Microsoft and the Storm didn’t release the terms of their deal, the Storm did release the information that the deal made Microsoft their biggest endorser. The Storm isn’t the first team to have Microsoft endorsements on their jerseys. The Seattle Sounders of the MLS have Microsoft’s Xbox symbol on the chest of their jerseys. The Seattle Sounders found an opportunity to make significant profit at the small expense of advertising Microsoft. In today’s economy, money is hard to come by, especially for the popularity-deprived WNBA. At this point in time, the bottom line is that money talks. Contact Anthony at anthony.holesworth@student.shu.edu
Having a top 15 pick in this year’s NFL draft may be more costly for teams than helpful. Teams thought to have been helped by such high draft positions will be paying rookies hefty sums of money, more than ever before. Last year alone, the top five picks in the draft received an average of $62 million over five to six year contracts. An average $28 million was in guaranteed money as well. The current rookie pay scale has reached a point where unproven rookies are slated to be paid higher than premier athletes. For example, Ndamukong Suh may receive more guaranteed money coming out of the draft than Albert Haynesworth received from the Redskins last year, which was approximately $41 million. Last year’s first overall pick, Matthew Stafford, was awarded a six year contract worth an estimated $72 million, $41.7 million of which was guaranteed money. The year before that, Jake Long received a five year, $57.5 million contract, $30 million of which was guaranteed. Though teams are handing out large contracts to rookies, there is no guarantee that rookies will deliver on such promise. The most infamous example would be Ryan Leaf. Leaf was selected second overall in the 1998 draft, one pick after Peyton manning. Many scouts argued, however, that Leaf would become a better pro than Manning. As a result, Leaf received a five year, $31 million contract.
Leaf played three seasons in the NFL, totaling four wins in twenty appearances, and was eventually cut by both the San Diego Chargers and the Dallas Cowboys. The NFL has visibly shown that it is not in favor of the high contracts given to top draft picks, in particular Roger Goodell, who has previously stated that he would rather see the money go towards NFL veterans. Though there were discussions over the past year of a possible cap for this year’s draft, no agreement was reach. One direction the NFL may consider for the future is a rookie salary cap similar to that in the NBA. The NBA allows teams to sign draftees to two year contracts, with an option of a third or fourth year. The NBA also has an assigned salary scale, where the first overall pick receives more than the second, and the second more than the third, and continues from there. Adopting such policy would eliminate long term deals and would ease the burden of teams paying potential draft “busts” such as Ryan Leaf. Teams do have the option of trading their pick, however, in hopes to save money and potentially find a late-round “steal”. If the NFL cannot come to terms of a rookie wage scale, teams will continue to trade down, especially those unable to handle the financial burden that comes with a top draft pick. Contact Robert at Robert.Szeluga@student.shu.edu
NBA receives unexpected increase in revenue By Matt Bartel, Sports Business Writer Despite an economic recession, the NBA has suffered less financial damage than was expected. The league had expected its tickets sold or “gate revenue” to be down a double digit percentage, but this number stayed in the single digits, although the league refuses to display the actual figures. One actual figure was given by Commissioner David Stern in February when he said that the league was on pace to lose $400 million. The NBA did make more than $1 billion in gate revenue this season, which accounts for nearly one third of the league’s $3.5 billion total revenue. The less than ten percent drop in gate revenue is a victory in the leagues eyes as they had anticipated much greater financial losses. Senior vice president of team marketing and business operations for the league Chris Granger credits the marginal losses to increased revenue from
group and individual game ticket sales, despite the renewal rate of season tickets slipping below 80 percent. Attendance was another area of success for the league amidst this financially strained season. Average capacity for arenas was at 90 percent, reaching that mark for the sixth consecutive season. The Chicago Bulls averaged a league best with over 20,000 in attendance per game. The Charlotte Bobcats, who were recently purchased by NBA legend Michael Jordan, experienced the largest increase in average attendance, gaining 8.36 percent from last season. Getting fans in the stands did trouble some teams however, as the near all-time worst record season posted by the New Jersey Nets was only viewed by an average of just over 13,000 fans every home game, a league worst. The Detroit Pistons suffered the worst drop in average attendance, with the Palace at Auburn Hills seeing a 14.3 percent drop in fiscally troubled Michigan.
NBA viewership did not suffer any loses on its three major outlets as games on ESPN and ABC held steady ratings, while games aired on TNT saw a slight increase in viewership. While the NBA playoffs are in full swing, management must decide how to deal with the losses endured this season and how to avoid them in the future. One way of combating their financial woes could be to increase revenue sharing in order to aid smaller market teams. The NFL has a system in place where the “gate” is split 60/40 with the visiting team, while the NBA profits all go to the home team. This causes the larger markets to have an unfair advantage and is just one way the NBA could right its ship to smoother sailing for future seasons.
Contact Matt at matthew.bartel@student.shu.edu
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TUESDAY, APRIL 27, 2010
Stillman Sports
THE STILLMAN EXCHANGE
Goodell sends Big Ben to sideline for six games Stillman Sports By Kayla Mjaatvedt, Assistant Editor Steelers quarterback, Ben Roethlisberger, was suspended last Wednesday for a total of six games without pay. His suspension could be reduced to only four games if he completes the necessary counseling and treatment. Photo courtesy of ESPN
Roethlisberger’s suspension could be extended for more games if he does not meet the guidelines set forth by the NFL commissioner Roger Goodell.
Roethlisberger was accused by a young woman of sexually assaulting her on March 5. He wasn’t charged for the crime, but NFL commissioner Roger Goodell made the decision to suspend him for violating the conduct policy. During the suspension, Roethlisberger is not allowed to participate in any team activity, such as practicing or working out at the facility. However, he is allowed to practice during training camp and
play in preseason games. Due to the suspension, he will miss at least four games against big teams like Atlanta, Tampa Bay, Tennessee and Baltimore. If he still must serve the full suspension of six games, he will also miss games against Cleveland and Miami. Roethlisberger will lose at least $1,894,117.64 of his salary for 2010 if he only misses four games. If he misses six, he’ll lose seven weeks of salary or $3,314,705.87, according to the Pittsburgh Post-Gazette. The Steelers will also be fined $200,000 for having one of their players violate the NFL conduct policy. Before Roethlisberger can return to team activities, he must undergo a “comprehensive behavioral evaluation” by medical professionals. Goodell wrote to Roethlisberger saying he must obey orders of the medical professionals to participate in the counseling or treatment they recommend to him. This will ultimately help him to make better decisions and stay out of legal trouble. Roethlisberger may not attend any team offseason activity until he has completed the evaluation and the professionals confirm with Goodell that Roethlisberger may resume football activities. Once cleared, he will be able to participate in training camp and preseason games this summer. Goodell plans to review Roethlisberger’s progress in the evaluation prior to the start of the season, in order to make a decision whether to reduce his suspension to four games or not. If he fails to cooperate and follow the professionals’ plan, Roethlisberger’s suspension could be made longer. “Your conduct raises sufficient concerns that I believe effective intervention now is the best step for your personal and professional welfare,” Goodell wrote in his letter to Roethlisberger. “I believe it is essential that you take full advantage of the resources available to you. My ultimate disposition in this matter will be influenced by the extent to which you do so, what you learn as a result, and a demonstrated commitment to making positive change in your life. In your six years in the NFL, you have first thrilled and now disappointed a great many people. I urge you to take full advantage of this opportunity to get your life and career back on track.”
Both the Big Ten and the Pac-10 are looking to expand the number of teams in their division. The Big Ten is making it sound like expansion is inevitable. As the price of TV contracts and marketing rights for college football games continues to increase, both conferences want to expand to the point where they can have a conference championship game to bring in more general revenue. As of right now the Big Ten is the conference that looks destined to expand in the next few years. They have already targeted major Big East schools like Rutgers, Pittsburgh, and Syracuse. They have also targeted major Big XII teams like Texas and Texas A&M, and, of course, there is an independent league team called Notre Dame that the Big Ten is looking to add to the conference. Notre Dame has to be the biggest name on this list not only because they are one of,
7. The Boston Red Sox beat Texas 8-7 Wednesday night, sending the Rangers to their sixth straight loss. It was Boston’s second straight last at-bat win after losing its previous five games. 6. Jason Taylor, former Miami Dolphins star, recently signed a 2-year deal with the New York Jets. Taylor spent 12 of his 13 seasons in Miami and was hoping for an offer from the Dolphins that never came. After returning from a vacation, he decided to join the Jets. 5. Kevin Kennedy, a Tampa Bay Rays TV analyst, was one of eight men who subdued a man that threatened to blow up the plane they were on. The passenger allegedly sprayed the first class cabin with a water bottle before trying to enter the cockpit. The plane, set to fly from Los Angeles to Florida, was diverted to Albuquerque after the man was apprehended. 4. Cliff Lee's long-awaited debut in Seattle is tentatively set for April 30. Lee has been on the disabled list since March 26 with a lower abdominal strain. He threw a 70-pitch simulated game Tuesday without pain, the same day his five-game suspension from spring training was rescinded.
Contact Kayla at kayla.mjaatvedt@student.shu.edu
Big Ten, Pac-10 looking to expand By Tony Cramond, Sports Business Writer
Super Seven
if not the biggest, football colleges in the country, but also because they are not coming in from a BCS conference. Notre Dame has been able to stay away from the BCS conferences because the current landscape of the BCS allowed them to still play in a BCS bowl game if Notre Dame had a good season. However, things are starting to change. Notre Dame athletic director Jack Swarbrick speculated earlier this month when describing the catastrophic scenario that might force the Irish to bite the bullet and join a BCS conference. “The only things that could make it happen are the sorts of radical change in the industry that would cause upheaval and impact a lot than Notre Dame… you wind up with only three conferences,” Swarbrick said. “You wind up with two tiers of conferences. Now, all of a sudden, it's not three divisions in college; it's four. It's the big change.” Swarbrick is talking about the things that are
going on behind the scenes. As the Big Ten and Pac-10 have made it known that they want to expand their conferences, there is another BCS conference that is moving behind the scenes—the SEC. The SEC is moving very quietly as they try to get two to three teams away from the ACC. Teams that have been mentioned: Clemson, Miami, and Florida State, are the biggest names in ACC college football. If these teams are to leave it would affect the ACC the same way that the Big East would be affected by the Big Ten expansion, goodbye to highly valued conference football games. All of this is tentative and nothing has actually happened yet, but one has to wonder, is college football going to become a league where only four or five conferences actually matter and the rest just fall by the wayside? Only time will tell. Contact Tony at anthony.cramond@student.shu.edu
3. Eric Foster, defensive tackle of the Indianapolis Colts, faces a sexual assault lawsuit. A 22-year-old hotel receptionist is suing Foster, claiming that he sexually assaulted her in his room at an Indianapolis hotel before the AFC Championship Game on Jan. 24. Colts President Bill Polian says the team will not discipline Foster. 2. Tiger Woods announced Thursday he will play the Quail Hollow Championship, which begins April 29. It will be his first time playing at a tournament where tickets are sold to the general public since his spectacular downfall from a sex scandal. 1. The St. Louis Rams took Sam Bradford, quarterback out of Oklahoma, with the first pick in the 2010 NFL Draft. Bradford may be given the reigns to the team from day one and will have to prove himself as an NFL quarterback from the start of his career. Bradford was selected over three other highly regarded quarterbacks, Tim Tebow, Jimmy Clausen, and Colt McCoy.
NHL teams use goal music as branding technique for fans to associate with By Travis Tosoni, Assistant Editor The first round of the 2010 Stanley Cup playoffs has already treated fans to highlight-reel goals, huge body check, and overtime thrillers. Many of the teams that are competing in this year’s playoffs possess something relatively new to hockey: their own goal songs. The days of traditional and sometimes boring organ music are gone for the most part, replaced by loud digital recordings of
popular songs and stadium anthems. So when the high-octane offense of the Washington Capitals connects for a goal during this postseason, the song “Rock the Red”, written by a local Virginia indie rock band, will be blaring from the Verizon Center speakers. The loud music, accompanied by a shrill goal siren and 18,277 fans screaming and cheering will make playing in Washington a daunting task for opponents. The Chicago Blackhawks, Los Angeles
Kings, Philadelphia Flyers, and San Jose Sharks are also known for playing their own unique songs after goals are scored. Many other teams throughout the league are beginning to catch on to this trend, all in hopes to start a unique tradition. Some teams are currently trying to take this new trend to the next level; for example, the Detroit Red Wings are playing goal songs for each individual player. The unique songs are usually based on a player’s preference of a particular artist.
Other teams like the New York Islanders are still undecided about which goal song they would like to call their own. During the course of the regular season, the team tried out quite a few different songs before settling on “Bro Hymn” by the band Pennywise. The reason the Islanders were even looking for a new goal song was due to the controversy surrounding a famous stadium anthem artist. Contact Travis at travis.tosoni@student.shu.edu
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TUESDAY, APRIL 27, 2010 13
Domestic News
Obama Encourages Wall Street to “Join us, Instead of Fighting Against Us” By Amanda Genabith, Domestic News Writer On Thursday April 22, President Obama visited Wall Street to discuss his new financial regulation plans. At Cooper Union, only a few blocks from Wall Street, Obama laid out his plans. He called for ending bailouts, restricting big banks, more transparency, consumer protection, and more power for shareholders, claiming that these new regulations would prevent another meltdown In his speech, Obama told Wall Street “to join us, instead of fighting us in this effort”. President Obama explained to the audience, which included top bank executives, Mayor Bloomberg, Gov. Paterson, and NY Attorney General Cuomo, “that some on Wall Street forgot that behind every dollar traded or leveraged, there is a family looking to buy a house, pay for an education, open a business, or save for retirement”. With these new regulations, banks would be allowed to fail using special money set aside for liquidation rather than taxpayer money and would also be prevented from becoming too large, which many experts feel caused the meltdown. Under the bill, a new Consumer Protection Agency would also be created, so people would not suffer the weight of the companies and give shareholders a voice in the payment of executives. Some speculate that those in attendance were upset with Obama because he received
campaign support from some of the institutions that he was addressing. Before the President’s arrival in New York, local papers ran articles and advertisements that also expressed concern about
“beating up on Wall Street may be good short-term politics – but not if it gets in the way of the right solution”. The advertisement echoed Mayor Bloomberg’s worries. Photo courtesy of New York Daily News
Obama made a speech Thursday April 22 to top bank executives, Mayor Bloomberg and NY Attorney General Cuomo.
Obama’s plans. In the New York Post an editorial appeared called “Dear Mr. President, Don’t Kill the Golden Goose: City Economy Imperiled in the Name of ‘Reform”. The United States Chamber of Commerce ran a full-page ad in New York newspapers which warned Obama that
News Briefs New York Man Pleads Guilty in Subway Bomb Plot Zarein Ahmedzay pled guilty to conspiracy to use weapons of mass destruction and to providing support to alQaeda. Prosecutors believe that he and two classmates were planning an attack on the city’s subway lines in September of last year, under the direction of al-Qaeda. Classmates Najibullah Zazi, an Afghan immigrant, and Adis Medunjanin, face similar charges. US officials call it the most serious threat since the September 11th attacks in 2001. Boy Scouts to Pay Almost $20M in Sex Abuse Case In Oregon, a jury decided to award a man $18.5 million in punitive damages in a sex abuse case against the Boy Scouts of America. On Friday, April 23, the jury ordered payment to Kerry Lewis, the victim of a former assistant Scoutmaster in the 1980s. This is one of the largest settlements against the Scouts in a sex abuse case. This year marks the Boy Scouts’ centennial. Proposed Limits on Vendors Leads to Protests On Friday, April 23, protestors filled the Chelsea Recreation Center to protest Mayor Bloomberg’s proposed limits on the number of street vendors allowed to in Battery Park, High Line Park, Union Square, and in high-traffic areas of Central Park. The city wishes to impose such regulations because it is concerned that street vendors pose a safety hazard on sidewalks and park paths. Vendors argue that controlling their numbers violates their rights under the First Amendment. Convicted Murderer Chooses Firing Squad A Utah judge approved the execution by a five-man firing squad of convicted murderer Ronnie Lee Gardener on Friday, April, 23. This would be the state’s first use of the firing squad since 1996. A change in Utah’s laws eliminated the firing squad as an option for execution, but inmates who had already chosen to be executed by firing squad before those changes will still be executed that way.
According to CBS, the President said in his speech “that he did not want to kill Wall Street, a vital part of the New York City economy”. Meanwhile as the President was making his move in Washington, Democrats were trying to mobilize Capitol Hill, in the
hopes of starting debates on the regulations on Monday. According to Sen. Harry Reid (D-NV) , “Republicans [are] simply stalling.” Rep. Spencer Bachus (R-AL) explained that “under the Democrat plan, certain financial institutions have no freedom to fail, and are instead propped up by taxpayers bailouts and government loan guarantees”. Sen. Mitch McConnell (R-KY) expressed views similar to Rep. Bachus. President Obama responded to Sen. McConnell by saying “that may make for a good sound bite but it’s not factually accurate. It is not true…A vote for reform is a vote to put a stop to taxpayer-funded bailouts”. Democrats feel that President Obama’s personal involvement in the new financial plan, which comes on the heels of the health care reform bill being signed, will lead to faster acceptance. While the President has moved faster on this than the health care bill, it does not mean that the bill will automatically pass. The bill will have to go through the Senate and the House before it goes to the President. President Obama ended his speech with encouragement, “there is no dividing line between Main Street and Wall Street. We rise and we fall together as one nation”.
Contact Amanda at amanda.genabith@student.shu.edu
Voters Reject NJ School Budget Cuts; Layoffs Still Expected By Padmavathy Sonti, Domestic News Writer
shrink government spending,” Brigid Harrison, a professor of law and political science at Montclair State University said. “It’s definitely a win in the tally column for him. It was such a resounding rejection that it was actually the exception for one to pass.” While only 20 districts implemented wage freezes, 143 districts
Many districts are expected to cut academic programs and lay off teachers and workers. According to On Tuesday, April 20, 2010, the NJEA, approximately 6,000 New Jersey voters rejected 59 percent teachers and 10,000 school workers of the proposed school budgets withwill lose their jobs. in 19 counties. This is the first time "Voters are saying they can no since 1976 that school budgets were longer afford a government that wishdefeated by such a large margin. es problems away,” stated Governor Many residents were furious that Christie. "We need to heed the direc80 percent of the school budgtion the public is asking Photo courtesy of nj.com us to go in." ets relied upon significant increases in the “highest propWithin the South erty taxes” in the nation. Orange-Maplewood Governor Christie school district, a $108.6 referred to the vote as “a seismillion plan was mic change that reflects, I approved by a panel believe, a changed attitude in that proposed wage New Jersey.” freezes. With an $11 billion state “It’s certainly not budget deficit, Governor something we took Christie proposed cutting $820 lightly,” Mark Gleason, million in aid to school disthe district’s school tricts. In addition, he asked board president said. teachers to take a one-year pay “This was a difficult freeze and to pay for health year because of that Gov. Christie encouraged citizens to vote against budgets that insurance. Despite opposition state aid cut. This budgfrom the New Jersey et involved some really “didn’t include shared sacrifice”. Education Association, tough choices.” Governor Christie urged people to agreed to wage concessions. In Essex County, the school “vote against budgets that [didn’t] “You have schools saying they budgets were passed in Millburn, include shared sacrifice.” were efficient but they could not Bloomfield and Glen Ridge. Voter turnout was significantly accept a 5 percent cut,” Jerry In the districts with failed school higher at 26.7 percent, up from 15 Cantrell, president of the New Jersey budgets, local municipalities are percent last year. Taxpayers Association said. “That expected to make the final budget “This is absolutely a clear mes- just did not ring true to a lot of peo- decisions by May 19, 2010. sage voters were sending that they ple. I think the bottom line was ecoContact Padmavathy at support the governor in his efforts to nomics.” padmavathy.sonti@student.shu.edu
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TUESDAY, APRIL 27, 2010
Domestic News
Oil Rig Explosion Could Pose Dangers if Spill Reaches Shore By Rachel Ressler, Domestic News Editor President Obama’s recent plan to lease new offshore drilling contracts has come under new scrutiny following the explosion and subsequent sinking of a floating oil rig in the Gulf of Mexico. The explosion, which occurred on Tuesday, April 20, left 11 of the 126-person crew missing and presumed dead. The bodies are believed to have sunk along with the rig on April 22, and the search was officially halted early on April 24. The rig, which is owned by Transocean, Ltd. and rented for about $500,000 a day by BP, was anchored about 50 miles off the coast of Louisiana. If the oil spilled by the rig reaches the coastline, environmental consequences would be far worse than the dangers posed by the two mile by eight mile spill currently coating part of the Gulf. Though initial responders estimated that the well was leaking thousands of gallons of oil every hour, the Coast Guard announced on April 23 that there appears to be no new leakage of oil. They are unsure how the oil stopped leaking, as workers who attempted to cap the oil flowing from the well before the rig sank were unsuccessful. BP has said that it has dispatched over 32 vessels to the site to contain and clean the estimated 8,400 gallons of crude oil which are currently in the Gulf. Early reports suggested that the damages of the oil and the 700,000 gallons of on-board diesel fuel would be minimized by the fire. Environmental experts agree that the spill is easier to contain in the Gulf than if it were to reach land, though some have said that if the consequences of such an oil spill were to affect
beaches, the case against offshore drilling would become stronger. Dave Hamilton, the Sierra Club’s director for global warming and energy projects, speculated on the effect, saying, “Then people in Virginia that like the beach and people in North Carolina that like the Outer Banks will get a first-hand look at the kind of devastation this can wreak.” Though recent inspections in February, March and April by the Minerals Management Service, part of the federal government, showed no safety violations on the rig, at least one suit has been filed since the explosion. Both Transocean and BP have been named in the suit filed by family members of one of the missing workers. The family claims the companies were negligent. The cause of the blast is still unknown, though experts have said it was probably what is known as a “blowout.” In this rare occurrence, a blowout consists of a surge of natural gas or oil blasts through the rig unexpectedly. Usually they are caught and controlled to prevent explosions. The Minerals Management Service in the last year has become focused on making changes to reduce human error on oil rigs. Through examination of 1,443 offshore oil rig accidents from 2001 to 2007, the report found that “equipment failure is rarely the primary cause of the incident or accident.” The new regulations which are under consideration will ask oil rigs to reduce human error. A similar spill in California in the1960’s is one of the reasons there is a ban on offshore drilling in many federal waters.
Contact Rachel at rachel.ressler@student.shu.edu
THE STILLMAN EXCHANGE
Arizona Outlaws Illegal Immigration; Obama Criticizes State’s Actions By Amelia Snoblin Domestic News Writer In a move that sparked widespread scrutiny, Arizona governor Jan Brewer signed a bill into effect on Friday, April 23 that contains the toughest measures on immigration ever implemented in the United States. The bill makes it a crime to be an illegal immigrant in Arizona, and requires police to question people as to their status if there is any suspicion that they are in the country illegally. Brewer has received harsh criticism for this bill, particularly from President Obama. He, as well as religious and civil rights leader, spoke out against the measures involved, saying that they would undoubtedly lead to racial profiling. While Brewer said that she would not tolerate racial profiling, Obama has said that he believes this bill will open the door to irresponsibility and that its measures “threaten to undermine basic notions of fairness that we cherish as Americans.” In response to the bill, Obama has also pushed for federal regulations that would put an end to other “misguided” efforts to stem illegal immigration at the state level. “If we continue to fail to act at a federal level,” Obama said, “we will continue to see misguided efforts opening up around the country.” According to recent statements, Obama has asked members of his administration to look into the “civil rights and other implications of this legislation.” Brewer, a strong presence in the
GOP, has been clear in her criticism of the Obama administration, making statements about “the federal government[‘s] refus[al] to fix the crisis caused by illegal immigration.” She says that the bill in no way violates the constitutional rights of the citizens of Arizona, but rather strengthens them. “I strongly disagree with the Arizona immigration law,” said Rep. Lincoln Diaz-Balart (R-Miami). “It alters American tradition and long-standing policy making immigration law enforcement a federal matter.” This debate only serves to underscore the depth of the immigration issue, especially in light of President Obama’s open criticism of the bill. It is very rare for presidents to weigh in on state legislation. Some point to the November mid-term elections in Congress and expect that the Democrats will be using this debate to court the Hispanic vote. Hundreds of peaceful demonstrators gathered at the city plaza as the governor spoke nearby, promising that the bill is not intended to target any particular group. Critics and proponents alike agree that this new law is the broadest and strictest on immigration in generations. Because the Department of Justice is reviewing the bill it appears that this issue will not go away. The immigration debate will be a hot-button topic in all upcoming elections as the nation stands divided. Contact Amelia at amelia.snoblin@student.shu.edu
Studies Suggest Technology Plays Larger Role in Schoolyard Bullying Today By Morgan Tornetta, Assistant Editor Phoebe Prince. Michael Brewer. Josie Lou Ratley. These names should not yield any hits on Google News, or at least not the results that they do. Phoebe Prince was a 15-year-old girl from South Hadley, Massachusetts, who committed suicide at the beginning of this year. Michael Brewer has finally returned to school after sustaining burns to more than half of his body. Josie Lou Ratley recently awoke from a coma. These teens met their unfortunate fates for the same reason: school bullying. Prince had recently moved to South Hadley from Ireland, and according to friends, was relentlessly bullied for several months. This included taunts and slurs via social networking sites such as Facebook and text messaging. Though Prince’s mother talked to school staff members prior to her death, no action was taken, and Prince instead chose to end her own life. The bullying did not stop there; even after her death, Phoebe’s assailants left nasty messages on the walls of the memorial pages started in her memory on Facebook, one of which read “mission accomplished.” In October 2009, Michael Brewer was doused with gasoline by a classmate and lit on fire. He received burns to 65 percent of his body. Brewer, also 15, was attacked allegedly over a dispute about money for a video game. Ratley was waiting for a school bus on March 17, when 15-year-old Wayne Treacy, whom family members claim she did not know, attacked her. Ratley had sent texts to
Treacy which mocked his older brother’s suicide. She suffered severe brain damage after Treacy kicked her in the head seven times while wearing steel-toed boots. She was put into a medically induced coma.
to saying hurtful things online • 42 percent of students have been bullied online • 35 percent of students have been threatened online
Photo courtesy of schooltipline.com Technology is playing a larger role in schoolyard bullying than in previous generations.
In all three cases, the generational fixation on technology played a key role: Prince was harassed in person, online, and via text messages, Ratley was attacked because of texts she sent, Brewer was burned because of a video game. Is it possible that technology is contributing to school violence? A study from 2005 called “CyberBullying: Creating a Culture of Respect in a Cyber World” found some unnerving statistics: • 57 percent of students said that someone had hurtful things to them online • 53 percent of students have admitted
Perhaps the most worrisome statistic is that 58 percent of students have not told their parents or a trusted adult that they were bullied online. According to BullyingStatistics.org, one of five teens with a cell phone will be bullied, and one in ten will engage in text bullying. Though in some cases parents and teachers blame one another for the incidents, some have started a push for anti-bullying legislation. In Louisiana, for example, a bill against cyber bullying by Rep. Roy Burrell (D-
Shreveport) was just approved by the House Criminal Justice Committee. The bill would make harassing or intimidating someone by text message, e-mail, or social networking posts a misdemeanor crime if the victim is under 17. Fines and prison sentences range from $500-$5000 and six months to three years, depending on the number of offenses. Older students have noticed a change as well. “When I was in middle school there always was bullying, but never to this extent that kids are committing suicidal acts and using weapons to kill others,” Lejla Radoncic, a Seton Hall diplomacy major, said. “Bullying was always a part of school life but now it has changed, and it has become huge news in the global media because of these kids that have access to everything they need, the social database, knives, guns et cetera.” Kaitlin Owens, a biology major, said, “There are constantly situations in which a strong-willed person will walk over someone of a more agreeable personality. In the news what we're seeing is those bolder people turned criminal, going beyond good oldfashioned rude or catty or cliquey or mean.” “[Technology] has made [bullying] somewhat worse, especially via text messaging, because people find ways to use these tools without being traced,” finance major Jack Fondacaro said. “Even on Facebook…you put enough info on yourself and people will find a way to use it against you.”
Contact Morgan at morgan.tornetta@student.shu.edu
THE STILLMAN EXCHANGE
TUESDAY, APRIL 27, 2010
International News
Syria, First Arab Nation to Enforce Smoking Ban ...continued from page 1 Syria’s health minister, Rida Said, remarked on the ban, “This shows Syria’s commitment to the framework agreement on combating smoking signed with the U.N. The decree will protect non-smokers, particularly children, women of childbearing age and teenagers from smoking damages.” Smoking is a cultural norm in Syria. According to the Syrian Society for Countering Cancer, some 60 percent of the adult male population smokes, and 23 percent of women making for a total of at least five million smokers in Syria who go through 10 million cigarettes each day. Reactions to the ban have been mixed. Bassam Shanna, a Syrian businessman interviewed by the AP, said, “The ban is good, but I doubt I will stop smoking.” Damascus University sociology professor Mohammed al-Kash, told the AP, “It’s a chance for me to seriously try to quit smoking. I am fully committed to the ban.” However, owners of businesses that cater to smokers were less positive about the changes. Ismat Kosoros, owner of the Café Rawda in Damascus, said, “There are customers who have been coming here for forty years. And in hot summers, it is hard
to have people sitting in courtyard, they need an airconditioned area.” The manager of another cafe in Damascus blamed his almost empty Photo courtesy of CNBC business on the Syrians continue to smoke despite country wide ban ban, while a third told the AP he hoped the government would “reconsider the ban.” One client at the Aroma Cafe in Damascus told CBS, “This is not acceptable. They are interfering in our private lives. The law will not work, anyway. It is typical wishful thinking.” While the Syrian smoking ban came as a shock, it is yet to be determined whether it will withstand the test of time. Contact Raphael at raphael.baseman@student.shu.edu
Hotel Kidnappings: A Product of Mexican Drug Wars By Maggie Dougherty, International News Writer At 3 a.m. Wednesday April 21, an estimated 30 gunmen raided two hotels in the center of Monterrey, Mexico taking at least 6 hostages. The two locations attacked include the Holiday Inn Centro and the Misión Hotel. Before attacking the hotels, the gunmen stole trucks and other vehicles that were used to block access to the area. Their efforts were successful in preventing police from reaching the hotels. The gunmen first attacked the Holiday Inn, where they stormed through a number of rooms on the fifth floor, and abducted four guests. Upon entering the Holiday Inn, the attackers advanced to the desk where they abducted the hotel receptionist, David Salas, and took the hotel computer equipment that contains the hotel’s guest registry as well as security tapes. The security guard was also reported missing. According to reports, the attackers entered the Holiday Inn with a man already in handcuffs who instructed them to go to the fifth floor of the 17-story hotel. The attackers appeared to be searching for particular guests as they pinpointed specific rooms. The majority of those abducted are residents of Mexico City. While the attackers are unidentified, initial evidence points
to the Zetas, a paramilitary group that engages in drug trafficking and other illegal activities. The Zetas have been linked to numerous incidents of violence in Monterrey. One of their most recent attacks, involving a shootout between soldiers and drug traffickers, left two students dead at a private university. Consequently, several U.S. Universities have temporarily suspended their exchange programs in the area. The day before the hotel attacks, American Ambassador, Carlos Pascual, delivered a speech to business leaders in Monterrey in which he highlighted that with increased violence, the cost of doing business in Mexico has also increased. While at a dinner of the Monterrey Chapter of the American Chapter of Commerce in Mexico, he stated, “unchecked, violence and instability could cause corporations to rethink their business strategy of locating in Mexico.” In northern Mexico, particular in the states of Tamaulipas and Nuevo Leon, where Monterrey is located, a recent uptick in violent activity has been noticed. This violent activity is blamed on warring drug cartels. Mexican citizens and travelers are increasingly fearful due to violence in the region. Contact Maggie at maggie.doughterty@student.shu.edu
Belgium, Uncovered By Danielle Polak, International News Writer Next Thursday, lawmakers in Belgium will publically announce proposed legislation to make Belgium the first of many European countries considering a ban on the Muslim face coverings worn by women. Fines averaging to 20 Euros, or a prison sentence of up to a week would be implemented for wearing the niqabs veil, which covers the face, or burqas, which cover a woman’s body from head to toe. Denis Ducarme, a leader of the Reformist Movement and author of the proposed legislation, views this ban as a way for Belgium to take the lead in what has been a hotly contested issue across Europe. Though countries such as Great Britain currently have no laws regarding any type of Muslim symbols, several countries have recently succeeded in placing restrictions on public representations of Muslim culture. Recently, Flanders outlawed religious headdresses in certain schools and Switzerland passed a bill against building the minarets associated with mosques. Belgium would become the first European nation to pass a ban on all coverings in “public spaces”, a move the Reformist Movement claims is not racially or religiously intolerant, but one that instead seeks to liberate women and ensure public security. The impact of this legislation on the population would be slight, as the predominantly Roman Catholic country only has a 3 percent Muslim population. The vast majority of these women
in Belgium and throughout Europe do not wear burqas or niqabas, and it is estimated that in Belgium this law would only affect 300 to 400 women in total. However, with Muslim protestors asserting that the covering is a religious means of honoring god, the passing of such legislation may be met with legal backlash for religious intolerance. Islamic leaders worn that should this legislation pass many more will begin to wear the traditional dress in protest. Six years ago when the small Belgian town of Maaseik banned burqas within their municipality, no backlash was seen and their Mayor claims to the law was quite successful as there are no burqas worn in public today. While this may only affect a small group of people, both in the city of Maaseik and even in Belgium as a whole, popular opinion in Belgium and in select other European countries support the outlawing of Muslim religious attire, despite protests from Amnesty International. Ironically, both sides claim they are acting in the best interest of the women that this affects. While Muslims remain a clear minority across the E.U., they are the fasted growing religious group and continue to grow in number. The majority of Muslim immigrants and citizens has not assimilated into the European culture and live in segregated communities which are generally plagued by poverty and crime. Restrictions of Muslim culture may only further divide the European and Muslim populations. Contact Danielle at danielle.polak@student.shu.edu
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Goodbye, Adios, Au revoir, Do svidaniya By Danielle Storm, International News Editor And so it is time to say farewell. Four years ago my freshman suite mate, Alana Anderson, suggested I go with her to the Stillman Exchange editing meeting, and so the journey began. As a Diplomacy major I couldn’t figure out what “bulls and bears” had to do with the stock market. Suffice to say, the paper introduced business and financial perspectives into my global studies. My suite of four freshman Diplomacy majors quickly found our niche in the Stillman Exchange and rocked the business world by bringing an international perspective to the paper. Maggie, Sini, and Alana, I truly believe working with you ladies on the paper was the catalyst for the beautiful friendships we share today. Some of my dearest friends and fondest college memories were produced through my involvement in the paper. The paper brought together different people of different majors and interests, unifying us as a funny little family. Each of you has made my life richer! When I first started, the paper was one year old, consisting of only 12 pages and 12 staff members. Today, the Photo courtesy paper is 16 of Danielle Storm pages with more than 75 active writers and editors. Each year the paper has made huge developmental strides including, expanding in length, releasing bilingual editions in English and Chinese, which are distributed across the U.S. and China, and developing an interactive website. Even while studying in Rwanda I remained active in the paper sharing a unique perspective of life in a developing nation by reporting from abroad. This quickly became a periodic trade mark of the International News Section. Assisting in the physical development of the paper, as well as the development of exceptionally brilliant writers, has opened my eyes to talents I didn’t know I possessed. Thank you to all of my writers for your patience, innovation and hard work; being your editor has been a joy. Kaitlin, I’m thrilled to leave the International News section in your capable hands, you’ve been a phenomenal partner and intuitive apprentice. I would like to extend a huge thanks to the original editors Frank Anguiano, Mike Bellom and Paul Seda, who without their vision and dedication the paper would not be here today. I thank you gentlemen for welcoming me into the Stillman Exchange family. This paper has shaped my college experience, and continues to open doors to professional opportunities. I praise God that our lives intertwined! Dean Boroff, thank you for your constant support and generosity which has allowed us to spread our wings and explore endless possibilities. Finally, thank you to all of our faithful readers who drive us to produce an excellent paper. Next year I will pursue my Juris Doctorate at the University of Pittsburgh Law School with a specialization in International Human Rights Law. Contact Danielle at danielle.storm@student.shu.edu
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TUESDAY, APRIL 27, 2010
THE STILLMAN EXCHANGE
International Business
China Races to the Front in Beijing Auto Show By Rachel Rosenstrock, International Business Writer
Volvo from Ford for $1.8 billion, has propelled its image onto the international stage and is setting itself up to take the lead in the Chinese industry. This company hopes to increase sales by 22 percent in 2010 by producing an additional 400,000 cars.
The Beijing Auto Show takes place in China from April 23 to May 2, showcasing global car companies alongside rising Chinese manufacturers as they compete in the ever-expanding and increasingly competitive Chinese auto market. Displaying more than 990 car models and debuting 89 of them for the first time, this biennial car show promises to expose and promote the newest technology available in the car industry. China has officially surpassed the United States to become the largest automobile industry in the world. In 2009, sales rose for car companies in China by 45 percent, followed by a 72 percent increase within the first quarter of 2010. Photo courtesy of cardomain.com “No automaker will ignore the Beijing Auto Show” said Kevin Wale, president and managing director of General Other Chinese manufacturers such as Motors China Group. “We all see China as Great Wall Motor Co and BYD Auto Co are a major source of growth.” looking toward producing environmentally The newer Chinese companies hope to friendly cars to gain recognition, although use this exhibition to start expanding this trend is beginning to be utilized across abroad as well as form a stronger domestic the board. base. With more than 70 competing At the auto show, almost every compaChinese car manufacturers, dominant com- ny, ranging from BMW to GM to Toyota, is panies are only just beginning to emerge. displaying their newest hybrid and electric Geely Automobile, through acquiring cars. China, however, appears to hold an
advantage in this field with their less expensive, entry-level cars. “I see China taking the lead in electric vehicles, hybrid vehicles for a combination of reasons. It has a good chance to outride others in terms of the market, in terms of government support and in terms of raw materials supply,” said Anil Sharma an auto sector analyst at Hybridev.com. In fact many foreign companies are collaborating with the Chinese brands to develop and market these new hybrid cars for this rising Chinese industry. As debate surrounding the revaluation of China’s Yuan grows, raising its value against the dollar could disrupt Chinese domestic companies’ growth, providing foreign investors a slight advantage in the market. Nonetheless, the Chinese auto industry will push forward, continuing to lead the way in innovation as well as profit margins. Contact Rachel at rachel.rosenstrock@student.shu.edu
In the Aftermath of Icelandic Volcano, Airline Industry Assesses the Financial Damages Navy deployed two warships, the HMS Ark Royal and HMS Ocean, into the English Channel to start Director General of the International bringing back some of the marooned Air Transport Association (IATA), people itching to get home. Giovanni Bisignani felt that the entire The main concern with all the airgrounding of airplanes could have been lines is to get their planes back in the avoided, or at least had a lesser burden, air and resume normal operations. had the airlines taken a different approach The volcano situation has wreaked a to the excess volcanic ash found in the air. lot of havoc and caused much conBisignani said to CBS News that, troversy all across Europe but air“Europe was using a theoretical mathelines have been putting their best matical approach and this is not what you Photo courtesy of Reuters foot forward in their attempts to need. We needed some test flights to go A geological event caused untold travel horror stories, as regain function ability. into the atmosphere and assess the level well as financial pain for the airline industry of ashes and take decisions.” Depending Despite the airspace chaos, some counon the levels of ash and if the damage to airContact Benjamin at plane engines was minimal, Bisignani feels tries have put their efforts into alternative benjamin.canning@student.shu.edu airlines could have put their planes in the methods of transportation for their stranded countrymen and women. Britain’s Royal sky sooner. ...continued from page 1
German Railway Firm Deutsche Bahn Acquires Britain’s Arriva By Tesse Postek, International Business Writer Germany’s state-owned railway, known as Deutsche Bahn AG, is agreeing to buy United Kingdom bus and train operator Arriva Plc. The firm is going to make the purchase at around 1.6 billion pounds ($2.46 billion). Deutsche Bahn AG is hoping to become a pan-European transport company. Investors of Arriva will get $12 in cash for every share they hold. This business agreement will create a group with $21.4 billion in sales. Ruediger Grube, Deutsche Bahn Chief Executive, says that the company estimates to be transporting about 10 million passengers daily. This deal is competing against the French company, Societe Nationale des Chemins de fer Francais for the top spot in the European bus and railway market. There is a branch of the French company in Sunderland, England. It terminated its merger negotiations with SNCF last month; Arriva is said to be the “biggest regional player that is not state owned.” Karl Burns, an analyst at Shore Capital, has indicated that Deutsche Bahn is getting a large opportunity. It is getting the
chance to make a “footprint, rather than a strong business, at the moment…no other operator would allow Deutsche Bahn to establish that quickly in Europe.” Burns also expressed that in order to succeed in the market “the company needs investment.” According to Grube, Deutsche Bahn plans on using Arriva to expand outside of Germany. The company also wants to keep its business name, management team and headquarters. At the moment, its Berlin-base owns Britain’s largest rail-freight. It has passenger services from London to Birmingham. The company also owns half of the services provided in Wrexham, Shropshire, Marylebone Railway, and London’s Overground Commuter Route. Grube’s plans to expand are “only the beginning…We don’t want our foreign competitors to steal a march on us…We have to act and Arriva is an excellent opportunity. It’s only the beginning of market liberalization.” Arriva currently has a market value of 1.53 billion pounds. This stock has gained 64 percent as of January 28, when the U.K. company announced it would receive the merger from SNCF’s Keolis unit. Contact Tesse at tessegianella.postek@student.shu.edu
IMF Proposes Dual Tax on Financial Institutions in Latest Report By Alexandra Hauenstein, International Business Writer The International Monetary Fund has proposed a radical dual tax plan on banks and other financial institutions to avert a future global financial crisis. The proposals are part of the Fund’s “A Fair and Substantial Contribution by the Financial Sector” interim report compiled at the request of the G-20, consisting of 85 percent of the global economy. The “financial stability contribution” component would initially be a flat rate levy, but would then be increased to tailor to the degree of risk a firm’s collapse would trigger in the financial system. The IMF estimates that the tax would raise about 2 percent of a country’s economic output, set aside to “accumulate in a fund to facilitate the resolution of weak institutions,” according to the Fund. The report also calls for a “financial activities tax” on excess profits and pay, essentially intended to discourage superfluous bonuses and risky investing. Established at the end of World War II, the IMF promotes global economic stability through monitoring and advising the economic policies of its 184 member states, as well as providing loans to countries that demonstrate financial need in exchange for their economic reform. Currently, the Fund is playing a vital role in moderating the G-20 global financial reform debate. Since the G-20 agreed last year that the responsibility to pay for future bailouts rested in financial institutions rather than in taxpayers, many governments have proposed their own plan. In January, President Obama called for a $90 billion tax on banks to reimburse the government over a ten year period for the cost of the bailouts, known as the Troubled Asset Relief Program. Meanwhile Gordon Brown, Britain’s Prime Minister, proposed a tax on all financial transactions. The IMF’s proposed levies would raise more money than these proposals. However, the IMF report is nonbinding, and some G-20 members, such as Canada, oppose the adoption of new bank taxes altogether. This resistance has affirmed that international cooperation is crucial to the success of the plan. Without a standardized global agreement, institutions would be able to evade the taxes by moving their operations to a state where the taxes are not enforced. U.K. Chancellor Alistair Darling asserted that “We do need to make sure the principles will be similar everywhere” to prevent this kind of cherry-picking. The report is expected to be reviewed by the G-20 finance ministers at the annual spring meeting of the IMF and World Bank taking place this week.
Contact Alexandra at alexandra.hauenstein@student.shu.edu