Monday morning headlines

Reforming Wall Street: The Bush administration formally announced its ambitious plan to overhaul the U.S. financial regulatory system. In laying out the particulars, Treasury Secretary Henry Paulson acknowledged this morning that it’ll take years to complete, well beyond the current market turmoil (we hope). "Once we are through this period of market stress, we need to begin the serious work of modernizing and reforming the structure, which will require a great deal of discussion and many years to complete," Paulson said. That's a realistic assessment, but it also makes you wonder whether they'll be much enthusiasm for reform once the economy starts to improve. From the WSJ:

In an interview, Mr. Paulson said the regulatory system is broken, a growing sentiment in recent months in Washington as each of the nation's financial watchdogs failed in a different way to prevent the foreclosure crisis and credit-market turmoil from spreading. "We need regulation, but if we have it, it should be just structured in a way that it has some way of being more effective," he said. "Everywhere I look, I see the plumbing hasn't changed to meet the realities." Little is likely to happen this year, amid the fierce presidential and congressional election races, even on fixes that Treasury has designated as short-term items. That means a new Congress and president will determine the ultimate shape of any regulatory overhaul.

AFTRA to start talking: Now that it's broken away from the Screen Actors Guild, the American Federation of Television and Radio Artists can quickly begin contract talks with the studios and networks. Expect a pretty quick deal, which is certain to put the screws on the more militant SAG. Informal talks earlier this month between SAG and News Corp. president Peter Chernin and Disney CEO Robert Iger have been characterized as unproductive. The current contract expires June 30. From Variety:

Several execs expressed astonishment over the split with SAG, which came after both unions had appeared in recent few weeks to put aside their differences in the name of presenting a united front at the bargaining table. The unions had been scheduled to give final approval Saturday to a contract proposal to the AMPTP at a joint board meeting. Had that happened, informal talks between the majors and both unions would have started over the next few days.

U2 cuts deal: The British band has signed a 12-year deal with L.A.-based Live Nation to work on touring and merchandising – but not recording. That will stay with Universal Music, which has a longstanding relationship with the band. (The Telegraph)

Producing for X-box: Hollywood producer Peter Safran will be creating content for the Microsoft product, with the first round of programs expected to be ready this fall. At first, he’ll focus on comedy and horror. Microsoft said other deals with producers are in the works. (NYT)

Aloha to Aloha: The airline was not able to find a buyer and will halt passenger service after today. Aloha was done in by fierce competition from Mesa Air Group's go! airline, and by rising fuel costs. A Seattle company offered to buy the cargo operations, but wasn't interested in taking over Aloha's passenger business. (AP)

New service to Australia: Richard Branson’s V Australia Airlines is launching nonstop service between LAX and Sydney. Airport officials have tried for some time to lure V Australia (SF was also in the running). The announcement, to be formally made this morning at the airport, comes as the U.S. and Australia sign an accord that will free up previous flight restrictions between the two nations. Quantas already has a big presence at LAX. (Daily Breeze)

Was Marilyn a New Yorker?: That's a key question for the estate of Marilyn Monroe, which has earned more than $30 million licensing her image. If Monroe was a New Yorker at her death in 1962, product makers may be free to use her image without paying licensing fees to her estate because of a difference between California and New York state laws. From the WSJ:

The families of photographers who shot famous images of Ms. Monroe filed suit claiming she has no publicity rights because she was a New Yorker, where the right of publicity doesn't survive a celebrity's death. The photographers' families are hoping to market their Monroe images without having to pay licensing fees to the estate. Marilyn Monroe LLC, the management vehicle of the Monroe estate, asserted in court that Ms. Monroe was a Californian, where state law holds that the right of publicity survives a celebrity's death. In an opinion earlier this month, U.S. District Judge Margaret Morrow in Los Angeles sided with the photographers' families. In the 1960s, the judge noted, the executor of Ms. Monroe's estate told California tax authorities that Ms. Monroe was a New York resident, so as to limit the California inheritance taxes owed by the estate.