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Big drop in stocks: The June jobs numbers obviously don't help. Dow is down about 170 points in early trading.
Latest on IOUs: Today's the day state Controller John Chiang could start issuing registered warrants. The state's Pooled Money Investment Board (who knew?) will set the interest rate for the IOUs at an emergency meeting this morning. (Capitol Alert)
Latest on budget: Really no change. The governor says the Democrats wasted the month of June debating a bill that would prevent the amputation of cow tails (a worthy effort but not exactly great timing). Lawmakers, meanwhile, accuse Schwarzenegger of being unreasonable in his demands. (Sacto Bee)
Tracking illegal workers: More than 50 L.A. businesses have been audited as part of a federal effort to toughen immigration enforcement. Among the companies was American Apparel. From the LAT:
Businesses are forbidden by law to hire illegal immigrants but often do so unwittingly. Employers are required to review, and keep, identification and work authorization documents and to complete a form, called an I-9, recording that information for each employee. They are not required, however, to determine whether those documents are valid. Companies can check the employment status of new hires through E-Verify, the online verification system, but the program is voluntary in California and most other states.
Swindlers on the loose: The FTC has charged five Van Nuys companies with bilking consumers out of about $300 million by selling fraudulent programs related to real estate or online businesses. It's part of a nationwide crackdown on con artists. From the LAT:
The FTC accuses the companies of making "false and unsubstantiated claims about potential earnings" that customers could make by following their advice in books, CDs and DVDs titled "John Beck's Free & Clear Real Estate System," "John Alexander's Real Estate Riches in 14 Days" and "Jeff Paul's Shortcuts to Internet Millions," which were sold for $39.95 each.
Chase Carey's payday: The new president and COO of News Corp. could earn up to $43.1 million in salary and bonuses in his first year. The employment deal is similar to that of Peter Chernin, who Carey succeeds. (WSJ)
Big bonuses are back: So much for Wall Street reform - Goldman Sachs is on track to pay out as much as $20 billion this year, nearly double the firm's $363,000 average last year. Morgan Stanley will likely pay $11 billion to $14 billion in compensation. Of course it's still early and those numbers could change. From the WSJ:
"I'm seeing deals like it's 2007 again," says Steven Eckhaus, an executive-employment lawyer at Katten Muchin Rosenman LLP in New York. He's worked on several deals recently that featured eight-figure guaranteed pay packages stretched over one to three years. The recent increases in compensation reflect efforts by Wall Street executives to keep pay high enough to remain competitive but low enough to avoid the wrath of angry lawmakers. In at least one case, bank executives or their representatives have discussed pay with the Obama administration's pay czar Kenneth Feinberg ahead of time, seeking to head off any public reprimand, according to a person familiar with the meetings.
Platinum payout turned down: Bankruptcy Judge Robert Drain said $30 million was a "not reasonable or appropriate" reimbursement to the Bev Hills private equity firm if its bid for auto supplier Delphi is topped. A lawyer for Platinum argued the firm had spent a lot of time and effort on its bid. (Reuters)
Sony Walkman turns 30: In the age of the iPod, it looks more like 300. Does anyone under 20 even know what a Walkman is? (AP)
Mark Lacter created the LA Biz Observed blog in 2006. He posted
until the day before his death on Nov. 13, 2013.