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Rethinking “palimony” laws

Dick Taffe — Mon, 02 Nov 2009 22:16:11 +0000

The focus on the Obama’s marriage stemming from the New York Times Sunday Magazine cover story is sparking discussion of the role of government in promoting marriage. Law Professor Linda McClain, blogging in Concurring Opinions, says it was the passing of Michelle Triola Marvin, famous for her 1970′s “palimony” suit against actor Lee Marvin, that should provoke a discussion of the governonment’s role in nonmarital unions.

“Now that ‘palimony’ is in its fourth decade, perhaps it is time to rethink the state of nonmarital unions.”

Contact Linda McClain, 617-358-4635, lmcclain@bu.edu

Ford’s surprise profit

Dick Taffe — Mon, 02 Nov 2009 20:23:41 +0000

In a turnaround story for a troubled industry, Ford Motor Company posted a surprising 3rd quarter profit of nearly $1 billion, though it has still lost some $1.3 billion for the year. School of Management Dean Lou Lataif, a former top Ford executive, says adversity has built character in the current generation of Ford’s leaders.

“While Ford still has an enormous debt burden which must be paid down, the management team is proving that predictions of the demise of ‘Detroit’ and of American manufacturing are at least premature if not dead wrong.”

Contact Lou Lataif, 617-353-2668, lelataif@bu.edu

Dealing with TBTF institutions

Dick Taffe — Fri, 30 Oct 2009 19:17:39 +0000

Treasury Secretary Timothy Geithner is still trying to convince Congress to pass legislation to deal with “too big to fail” financial institutions before they get to the point of collapse. Law Professor Cornelius Hurley, director of the Morin Center for Banking and Financial Law and a former counsel to the Fed Board of Governors, says it’s about time.

“The answer to the ‘too big to fail’ high-wire act does not lie in removing the government’s capacity to cope with these institutions in a crisis. It lies in removing the financial incentives for becoming TBTF in the first instance.”

Contact Cornelius Hurley, 617-353-5427, ckhurley@bu.edu

Google offers free GPS

Dick Taffe — Thu, 29 Oct 2009 20:40:09 +0000

Reflecting the trend toward consolidating functions on hand-helds, Google is offering free GPS navigation system for mobile phones – a potentially big blow to stand-alone GPS makers. Professor N. Venkat Venkatraman, head of the School of Management’s IS Department, says it’s logical to extend Google Maps to mobile phones.

“Google realizes that it needs killer apps for the phone beyond just offering the Android OS.”

Contact N. Venkat Venkatraman, 617-353-7117, venkat@bu.edu

FTC to get new powers

Dick Taffe — Thu, 29 Oct 2009 20:22:34 +0000

Congress is moving to give the Federal Trade Commission new powers to oversee and punish violators of FTC regulations aimed at protecting consumers. School of Management Professor Michael Salinger, a former FTC director, says the authority to impose civil penalties will help, but cautions that the ban on “unfair trade practices” in the FTC Act is vague.

“The combination of large penalties and uncertain legal standards can be a big problem.”

Contact Michael Salinger, 617-353-4408, salinger@bu.edu

Karzai’s brother on CIA payroll

Dick Taffe — Wed, 28 Oct 2009 21:03:24 +0000

In an diplomatic bombshell, the New York Times reports that Afghan President Karzai’s brother – long a suspect in that nation’s opium trade – is on the CIA’s payroll and has been for years. Journalism Professor Nick Mills, who came to know the future president in the ’80s when Mills ran BU’s Afghan Media Project, says this explains why there was no “hard evidence” for Karzai to remove his brother from power.

“The hard evidence is all in the CIA’s possession — and obviously Karzai knew it, which further erodes his legitimacy as president.”

Contact Nick Mills, 617-353-3492, nmills@bu.edu

GMAC needs more bailout

Dick Taffe — Wed, 28 Oct 2009 20:22:38 +0000

Troubled consumer finance company GMAC reportedly needs more taxpayer bailout money, on top of the $12.5 billion it’s already received. Robert Bench, an ex-deputy Comptroller of the Currency and now senior fellow at the Law school’s Morin Center for Banking and Financial Law, says it’s understandable because GMAC concentrated most of its risk on a selected consumer product – autos.

“It is exactly that risk that causes a dearth of private sector financial support for GMAC, requiring billions in federal financing to keep it operating.”

Contact Robert Bench, 617-353-5428, bobbench@bu.edu

Technology ad blitz under way

Dick Taffe — Tue, 27 Oct 2009 19:44:23 +0000

Many technology companies facing timid customers and increasing competition – e.g., Google, Yahoo, Microsoft, Cisco, and for the first time Juniper Networks — are ramping up advertising campaigns. Advertising Professor John Verret, a 40-year veteran of the ad business, says they can thank Apple for showing that great messages, widely disseminated, build great markets.

“All the tech/Internet brands are going to try to ‘out Apple’ one another. This will be fun – and it’s a great sign for the economy.”

Contact John Verret, 617-353-7737, jverret@bu.edu

“Smart Choices” dubbed unhealthy by FDA

Lauren Davalla — Tue, 27 Oct 2009 16:41:09 +0000

According to Reuters.com, Federal investigators are looking into the “smart choices” food labeling program for misleading the public. Director of the Food and Nutrition Center at Sargent College Stacy Zawacki helped to found BU’s Sargent Choice food labeling program and is available for interviews on this topic. She can be reached at szawacki@bu.edu.

Breakthrough for shareholders

Dick Taffe — Mon, 26 Oct 2009 21:11:18 +0000

In an unprecedented move for a major business, HealthSouth Corp. will reimburse activist shareholders for the costs involved with unseating management-backed directors. LawProfessor Elizabeth Nowicki, a former SEC and Wall Street attorney, says the HealthSouth initiative may mark a sea change in how boards respond to shareholders clamoring for accountability.

“Now that HealthSouth has voluntarily given shareholders’ more access to proxy contests and director elections, activist shareholders are likely to be emboldened and other boards are going to feel pressure to address the issue.”

Contact Elizabeth Nowicki, 617-353-2807, enowicki@bu.edu