Daily Herald the Brown
vol. cxlv, no. 10 | Tuesday, February 9, 2010 | Serving the community daily since 1891
Simmons won’t be ‘buffeted about’ on boards
C R E AT I V E C O N S T R U C T I O n
By Alex Bell Senior Staf f Writer
Hilary Rosenthal / Herald Construction on the Creative Arts Center progresses on Angell Street.
Trustee may Faculty wage freeze may face lawsuit be lifted for next year from ex-wife By Max Godnick Senior Staff Writer
By Goda Thangada Senior Staf f Writer
A high-stakes lawsuit against a Corporation member may be brought back to life after being dropped in January. Steven Cohen P’08, a trustee of the University’s highest governing body who amassed a vast fortune in hedge funds, was accused by his ex-wife Patricia Cohen in December of concealing assets at the time of their divorce in 1990. Her lawyer, Paul Batista, dropped the suit in mid-January, though Patricia Cohen announced that she would continue to pursue the suit with another lawyer, Gaytri Kachroo, who told The Herald that the case will be refiled soon. “What is open to us now is to file a new complaint or an amended complaint,” Kachroo said. SAC Capital, the hedge fund founded by Steven Cohen after the divorce, was also named in the suit. “As we have said from the outset, these decade-old allegations by Mr. Cohen’s spouse are patently false and entirely without merit,” said Jonathan Gasthalter, an SAC Capital spokesperson. Patricia Cohen’s claims come at time when the public is increasingly scrutinizing the practices of prominent hedge funds. In the suit filed by Batista, she sought $300 million. The earlier suit went into depth describing Steven Cohen’s financial
inside
continued on page 7
News...1–5, 7 Metro.......6 Nation...8-9 Editorial..10 Opinion...11 Today........12
www.browndailyherald.com
The University Resources Committee made a recommendation to the Corporation earlier this month that the freeze placed on faculty and staff salaries be lifted in the next year’s budget. Last year’s budget initiated a freeze on all University employee wages
due to the harsh economic climate. Should the recommendation be acted upon by the Corporation when the budget is passed later this month, it would allow President Ruth Simmons’ Plan for Academic Enrichment to continue in its efforts toward creating comcontinued on page 2
President Ruth Simmons said in an inter view last week that she does not expect negative publicity about the practices of Goldman Sachs, whose Board of Directors she ser ves on, to carr y over to the University’s image. Simmons joined the board in 2000 while president of Smith College. The New York–based financial ser vices company Goldman Sachs has suffered harsh criticism since early in the current financial crisis for doling out high bonuses to its executives after receiving money from the federal bailout program. All 10 of the company’s directors ser ve on its compensation committee, which is responsible for determining and approving the compensation for the company’s CEO and executives, according to the committee’s charter. The debate over Goldman’s practices is to be expected, Simmons said, but she declined to make a public statement on the company’s past actions. “There are lots of things in a complex institution that go on,” she said. “You’re not in charge of ever ything that your friends do and every policy that organizations that you’re affiliated with issue.”
In a statement on its compensation policies released in December, Goldman stated that its compensation policy, which emphasizes per formance-based bonuses, is “designed to attract and retain the most talented human capital, which has been a key contributor to generating excess returns relative to peers.” But to the surprise of many analysts, Goldman announced on Friday that the bonus received by CEO Lloyd Blankfein will be only $9 million this year and will be delivered entirely in stock. Blankfein’s largest bonus, of $67.9 million, came in 2007. Newspapers such as the Times of London had repor ted suspicions of a bonus as high as even $100 million this year. In Januar y, Chairman of the Financial Crisis Inquiry Commission Rep. Phil Angelides, D-Calif., criticized Goldman’s practices during the months leading up to the financial crisis of selling debt products tied to mor tgages it knew were declining in value. He compared the practice to “selling a car with faulty brakes and then buying an insurance policy on the buyer.” Simmons said she can “fully accept” the public’s scrutiny, as well continued on page 4
Low point for the diving team Former
dean dies at 88
By Nicole Boucher Staff Writer
Nothing brings a group together quite like a road trip, and practice has taken the diving teams out of state twice a week for over two years.
By Ana Alvarez Senior Staff Writer
Traveling takes time away from school work and other social activities, she added. Diver Charles Kambe ’10 put a positive spin on having to use off-campus facilities. “On the upside, it makes us much better at traveling,” he said. “We are better at adapting. A lot of teams
Elizabeth LeDuc, former dean of biological sciences and landmark member of Brown’s Division of Biology and Medicine, died Jan. 31 at 88 years of age. At a time when few women were included in academic life, LeDuc left a legacy of effective leadership and groundbreaking research in biology. According to the University Archives, “Dukie,” as her colleagues called her, earned full professorship in the BioMed division at Brown in 1964 — the third woman to reach that rank in Brown’s history and the first to do so in biology, the Providence Journal reported. LeDuc served as the division’s dean from 1973 to 1977, another impressive achievement for a woman
continued on page 7
continued on page 4
FEATURE After structural problems led to the demolition the Smith Swim Center in 2007, a temporary aquatics facility was built on campus to accommodate the swimming, diving and water polo teams. However, the pool is not deep enough to allow for three-meter diving. This setup places the diving team in a unique situation — they must travel off-campus twice a week to practice with the threemeter springboard. “We deal with what we have and we get by by thinking positively,” said Rebecca Tassell ’12, a member of the diving team.
Nick Sinnott-Armstrong / Herald
The temporary aquatics facility cannot accommodate three-meter diving, forcing the team to travel to Massachusetts for practice.
Fish out of water — and out of state The team travels about 40 minutes to the University of Massachusetts at Dartmouth twice a week to use the three-meter board. They leave around 2:30 p.m. and get back around 6, Tassell said. “It’s hard on the team in terms of traveling and commitment,” said team member Kara Lindquist ’11.
News, 3
Metro, 6
Opinions, 11
The blog today
NOT AS THEY APPEAR Come shopping period, some students discover hidden class caps
crazy journey Rhode Island professor’s dissertation turned into Oscar-nominated film
inspiring hope Yue Wang ‘12 wants you to befriend your neighborhood high school student
Make a day of… Wickenden Street! BlogDailyHerald’s guide to the ins and outs.
195 Angell Street, Providence, Rhode Island
herald@browndailyherald.com