Trump says will back away from business to focus on White House

NEW YORK - U.S. President-elect Donald Trump vowed on Wednesday to step back from running his global business empire to avoid conflicts of interest, as concern over his dual role mounts ahead of the Republican's inauguration on Jan. 20.

Trump, a real estate magnate who owns hotels and golf resorts from Panama to Scotland, said he will spell out at a Dec. 15 news conference how he will separate himself "in total" from his worldwide business holdings, which include a winery, modeling agency, and a range of other businesses.

After Trump won the Nov. 8 election, his company, the Trump Organization, had said it was looking at new business structures with the goal of transferring control to Donald Trump Jr., Ivanka Trump and Eric Trump - three of his adult children who are involved with the company.

Trump gave few details in a series of early morning tweets on Wednesday, but said "legal documents are being crafted which take me completely out of business operations" and said his children will attend the news conference. He did not say what the planned change might mean for ownership of his businesses.

His children are also on the executive committee of his White House transition team. His daughter Ivanka joined a telephone call his father had with Argentine President Mauricio Macri earlier this month and attended a meeting with Japanese Prime Minister Shinzo Abe, raising concerns about possible conflicts of interests.

A brand name around the globe, Trump had previously argued that he had no need to separate himself from the Trump Organization, which includes a hotel down the street from the White House, a Manhattan tower where he lives and is running his transition to office, and a New Jersey golf course where he interviewed cabinet candidates earlier this month.

Trump said on Wednesday he is not required by law to alter his relationship with his business, but added: "I feel it is visually important, as president, to in no way have a conflict of interest with my various businesses."

As the Republican heads toward taking over the White House from President Barack Obama, scrutiny of potential conflicts has grown. Democratic lawmakers on Capitol Hill called for hearings on the issue.

Rules on conflict of interest for executive branch employees do not apply to the president, but Trump will be bound by bribery laws, disclosure requirements and a section of the U.S. Constitution that prohibits elected officials from taking gifts from foreign governments.

The nonpartisan Office of Government Ethics said in a statement it applauded Trump's aims, and recommended Trump completely divest his holdings rather that transfer control.

"As we discussed with your counsel, divestiture is the way to resolve these conflicts," the office tweeted.

WALL STREET PICKS

Trump, a former reality TV star, has spend much of the last few weeks setting up his new cabinet and interviewing candidates for top jobs in his administration.

On Wednesday, Trump said he will nominate his chief campaign fundraiser Steven Mnuchin to lead the U.S. Treasury. Mnuchin said the administration would make tax reform and trade pact overhauls top priorities as it seeks a sustained pace of 3 percent to 4 percent economic growth.

Mnuchin, a former Goldman Sachs banker, also signaled a desire to remove U.S. mortgage-finance companies Fannie Mae and Freddie Mac from government ownership, a move that could have wide-ranging ramifications for how Americans pay for their homes, and said banking regulations should be eased to spur lending.

Trump named Wilbur Ross, a billionaire known for his investments in distressed industries, as his nominee for commerce secretary. Both nominees will require confirmation by the U.S. Senate.

Trump is also considering Goldman Sachs President and Chief Operating Officer Gary Cohn, a former commodities trader, to head his White House budget office or to fill another position, a Trump transition official said.

The economic picks were praised by the Business Roundtable, a group that represents America's largest corporations.

But Democratic senators Bernie Sanders and Elizabeth Warren called Mnuchin "just another Wall Street insider."

"That is not the type of change that Donald Trump promised to bring to Washington - that is hypocrisy at its worst," Sanders and Warren said in a joint statement.

Trump had pledged during his campaign to "drain the swamp" in Washington. A spokesman said giving top economic jobs to Wall Street figures was not inconsistent with that vow.

"You want some people that are insiders and understand the system and some outsiders that are creative thinkers, out-of-the-box thinkers and disruptors," said Anthony Scaramucci, an asset manager who is on Trump's transition committee.

Trump is also working to fill out his foreign policy team, but no decision appeared imminent on who the next secretary of state will be.

He met on Wednesday with Linda McMahon, co-founder of wrestling empire WWE. McMahon told reporters that she discussed job creation and the Small Business Administration with Trump, and said "Stay tuned!" about whether she would join the administration.

On Thursday, Trump will travel to Indiana to formally announce a deal he reached with United Technologies Corp to keep close to 1,000 jobs at its Carrier Corp air conditioner plant in Indianapolis rather than shifting them to Mexico.

Trump and his running-mate Mike Pence, the governor of Indiana, had railed against Carrier on the campaign trail, using the company's outsourcing move as an example of how trade agreements hurt American workers.

(Additional reporting by David Lawder and Eric Walsh in Washington and Melissa Fares in New York; Writing by Roberta Rampton; Editing by Bill Trott and Alistair Bell)

source: news.abs-cbn.com

GM seeks broader immunity from suits over flaws in older cars

General Motors Co., moving to expand its immunity from lawsuits after recalling almost 29 million cars in North America, said it sees no need to try to settle customer claims until a judge decides whether it’s legally responsible for faults in its predecessor’s cars.

GM said this week that it will ask U.S. Bankruptcy Judge Robert Gerber before Aug. 11 to dismiss accident and economic-loss claims arising from flaws unrelated to ignition switches in cars sold by old GM, as the pre-bankruptcy company is known. The automaker, fighting more than 120 suits, previously asked the Manhattan judge to affirm 2009 rulings that would free it from responsibility for fallen vehicle values.

“Defendants do not believe that any potential settlement negotiations would be meaningful or productive until the parties and this court know what claims, if any, remain to be litigated after the bankruptcy court decides the matters before it,” the company said in a July 21 letter.




GM Chief Executive Officer Mary Barra has warned that she will fight all claims except for those arising from switch-based accidents. Lawyer Kenneth Feinberg has started to assess those death and injury claims.

GM sent the letter announcing its intentions to the federal judge in Manhattan handling the ignition-switch suits pending a ruling from Gerber.

The automaker said it will reject non-ignition claims over pre-July 10, 2009, accidents and all economic-loss claims related to other faults in old GM cars. New GM was born out of bankruptcy on that date when the U.S. Treasury Department financed its acquisition of old GM’s best assets.

The effect of such a request to Gerber will greatly expand his role in the litigation by forcing him to ordain the future of almost all suits tied to old GM cars. The automaker has to go back to him a second time because it initially asked him only to consider ignition-switch suits over almost unsaleable Cobalts and Ions.

Gerber, handling the 2009 restructuring of a then-shaky manufacturer, ruled that GM didn’t have to pay compensation or punitive damages for its predecessor’s faults, except for certain warranties it chose to take on. The Treasury insisted that the company slough off as many liabilities as possible to aid a turnaround, GM has said. Faults in cars made after its rebirth are its responsibility.

According to GM, U.S. District Judge Jesse Furman is juggling more than 101 suits transferred so far from other courts, mostly demanding compensation for a drop in car prices since the ignition-switch recalls started in February. After Gerber rules on whether they have any legitimate claims, the economic-loss suits could usefully be combined into one class action, GM said.

Delphi Automotive Plc, a parts maker named in some suits against the carmaker, might also ask a bankruptcy judge to shield it from such liabilities, GM said.

Separately, customer lawyer Steve Berman wrote Furman, saying GM ought to soon deliver documents on its handling of recalls that it shared with lawmakers. By law, a federal district judge doesn’t have to wait for a bankruptcy judge to rule before allowing certain parts of a litigation to go forward, he said.

The remaining nine ignition suits over deaths and injuries should proceed separately, after staying with Furman while he coordinates requests for documents and information, GM said. The 101 suits were filed by 358 individuals and companies, according to the company.

The carmaker said it already has sought to dismiss one high-profile accident suit, known the Melton case, brought by lawyer Lance Cooper, who’s credited with spurring some of the GM recalls. The case is in Georgia state court. GM said asked the judge to stop Cooper from making separate demands for information from the automaker.

source: newsday.com

Existing Home Sales Fall, Price Appreciation Slows

WASHINGTON -- Americans bought fewer existing homes in September than the previous month, held back by higher mortgage rates and rising prices.

The National Association of Realtors said Monday that sales of resold homes fell 1.9 percent last month to a seasonally adjusted annual rate of 5.29 million. That's down from a pace of 5.39 million in August, which was revised lower.

The sales pace in August equaled July's pace. Both were the highest in four years and are consistent with a healthy market.

Mortgage rates rose sharply over the summer from their historic lows, threatening to slow a housing recovery that began last year and has helped drive modest economic growth.

But many economists expect home sales will remain healthy, especially now that rates have stabilized and remain near historically low levels. Final sales in September reflected contracts signed in July and August, when rates were about a percentage point higher than in May.

The average rate on a 30-year fixed mortgage was 4.28 percent last week, down from a two-year high of 4.58 percent in August. That's also far below the 30-year average of 7 percent, according to Bankrate.com.

Sales of existing homes have risen at a healthy 10.7 percent in the past 12 months. Still, that's the slowest year-over-year increase in five months.

And the median home price has risen 11.7 percent in the past year, the Realtors said. That's also the slowest annual gain in the past five months.

Price increases may be slowing because more homes are finally coming on the market. The supply of available homes rose 1.8 percent from a year ago to 2.21 million, the first year-over-year increase in 2 ½ years.

The limited number of homes for sale is a key reason prices have risen so fast in the last year.

The economy is growing modestly and employers are adding jobs at a slow but steady pace. That's helped a growing number of Americans buy homes.

Still, many first-time buyers have been unable to enter the market. They made up just 28 percent of purchases in September, down from 32 percent a year ago. In healthier housing markets, they typically make up at least 40 percent of buyers.

First-time buyers are having trouble qualifying for loans because many banks have adopted tougher lending restrictions and higher down payment requirements since the housing bubble burst.

In their place, investors and Americans willing to pay cash are playing an outsize role in sales. Cash purchases made up 33 percent of September's sales, up from 28 percent a year ago.

Borrowing rates began to rise in May after Federal Reserve Chairman Ben Bernanke suggested that the Fed could start to slow its monthly bond purchases by the end of the year. The purchases are intended to keep interest rates low and stimulate the economy.

But the Fed decided against slowing its purchases at its September meeting, citing weak economic data and looming budget battles in Washington. The budget fights led to a partial government shutdown Oct. 1. The nation's borrowing limit was increased but only at the last minute. Economists have cut their forecasts for growth in the October-December quarter by about a half-percentage point because of the shutdown and debt limit fight.

As a result, many economists think the Fed won't slow its bond purchases until January or even later. That's likely to keep mortgage rates low well into the new year.

source: dailyfinance.com

Pinoys outraged over Rolling Stone cover of bombing suspect

NEW YORK CITY -- America usually celebrates the cover of popular magazine, Rolling Stone, when it is graced by great actors, music legends and even the president of the united states.

But the rockstar-like image of suspected terrorist Dzokhar Tsarnaev on the cover of Rolling Stone outraged many, including Filipinos in New York City.

“You’re encouraging more crime to happen when people, especially the young ones, see this,” said Cecilia Magsino-Skala.

“He (Tsarnaev) has no place being on the cover of a glamour magazine,” added Susan Apat.

For Rolan Ocampo, who crossed the finish line of the Boston Marathon minutes before the bombs exploded, seeing the face of Tsarnaev on the cover of Rolling Stone, rubs wounds that are still raw.

“It hurts because the magazine chose to feature this alleged terrorist first. And besides, it’s too soon. The magazine should have featured the victims, their families and the volunteer rescuers — not Tsarnaev,”he said.

Ocampo added that if Tsarnaev was shown on the cover wearing a prison jumpsuit or in handcuffs, it would have come off differently to people.

“Instead, he was made to look like a pretty boy, a rockstar, a celebrity,” he pointed out.

Tsarnaev recently pleaded not guilty to the 30 counts of a federal indictment related to the Boston bombings — which killed three people and injured at least 260 others.

If found guilty, Ocampo believes Tsarnaev doesn’t even deserve the privilege of a quick death sentence.

“I would rather he get a life sentence, without the possibility of parole. He should rot in jail,” said Ocampo.

Big pharmacy chains like CVS and Walgreens, as well as stores like Stop and Shop and Tadeschi food shops have announced their refusal to sell the August issues of Rolling Stone.

In a statement, Rolling Stone said that while their hearts go out to the victims, they also felt it was important to gain a more complete understanding of how a tragedy like this happens and how a charming kid with a bright future became a monster.

source: www.abs-cbnnews.com