Bloomberg

Stem Cells From Own Eyes Restore Vision to Blinded Patients, Study Shows

February 26, 2011

By Rob Waters June 18 (Bloomberg) — Patients blinded in one or both eyes by chemical burns regained their vision after healthy stem cells were extracted from their eyes and reimplanted, according to a report by Italian researchers at a scientific meeting. The tissue was drawn from the limbus , an area at the junction of the cornea and white part of the eye. It was grown on a fibrous tissue, then layered onto the damaged eyes. The cells grew into healthy corneal tissue, transforming disfigured, opaque eyes into functioning ones with normal appearance and color, said researchers led by Graziella Pellegrini of the University of Modena’s Center for Regenerative Medicine. The stem-cell treatment restored sight to more than three- quarters of the 112 patients treated, Pellegrini said yesterday in a presentation at the International Society for Stem Cell Research meeting. The patients were followed for an average of three years and some for as long as a decade, Pellegrini said. “The patients, they are happy, even the partial successes,” she said in an interview at the meeting in San Francisco. “We have a couple of patients who were blind in both eyes. Can you imagine for these patients the change in their quality of life?” The work was praised by Ivan Schwab , an ophthalmology professor and stem cell researcher at the University of California, Davis, who has treated patients in clinical trials with a procedure based on Pellegrini’s work. While his patients improved for a time, the benefits didn’t endure, he said in a June 15 telephone interview. Pellegrini’s patients appear to have long-term improvement, he said. ‘Long-Term’ Effect “The powerful part of her work is she has such long-term follow-up,” Schwab said. Many of the patients she treated had been blind for years as result of tissue and blood vessels growing over damaged parts of the eye. Some had been through failed surgeries and alternative treatments. Pellegrini estimated 1,000 to 2,000 patients in Europe suffer from burns with chemicals such as bleach or industrial solvents and may benefit from the procedure. The key to success is to be certain that when the stem cells extracted from the limbus are grown in culture they have the right mix of stem cells and the differentiated cells that form the corneal tissue, Pellegrini said. If there are too few stem cells in the transplant, the improvement won’t last because there will be no reservoir to form the new corneal cells needed with the normal recycling of cells over time, she said. Success Rate The procedure succeeded after a single transplant in 69 percent of cases. A second procedure was performed on some patients, boosting the success rate to 77 percent, she said. The procedure was deemed a partial success in 13 percent of cases and a failure in 10 percent, she said. Depending on the depth of the injury, some patients regained sight in as little as two months, Pellegrini said. Others with deeper injuries needed a second procedure and waited a year before sight was restored, she said. The applications of the work may extend to other organs, Schwab said. “This is bigger than just the surface of the eye,” he said. “She may be making a model for how to regenerate livers or other organs.” To contact the reporter on this story: Rob Waters in San Francisco at rwaters5@bloomberg.net .

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UBS Customers May Have `Mere Hours’ to Report to IRS as Swiss Seal Accord

February 26, 2011

By Ryan J. Donmoyer June 18 (Bloomberg) — U.S. citizens and residents with UBS AG accounts are racing the clock to disclose their secret holdings to the Internal Revenue Service after the Swiss Parliament ratified an agreement to surrender the names of 4,450 bank clients, tax lawyers said. Swiss lawmakers yesterday ended a standoff and approved the bank’s settlement with the U.S., allowing the names to be transmitted to tax authorities as early as this week. Lawyers said Americans who ignored an IRS offer last year to reduce penalties in exchange for voluntary disclosures are now flooding their offices with calls seeking advice on how to avoid possible sanctions, which could include prison sentences. “For UBS account holders, they have mere hours to run to the IRS and hope they can disclose the account before the Swiss hand the data over,” said Asher Rubinstein , a partner at Rubinstein & Rubinstein LLP in New York who said he’s been “getting panicked calls all week.” The Parliament ’s vote ends Switzerland’s long tradition of bank secrecy and is a victory for the IRS and U.S. Department of Justice, which fought a two-year battle to gain access to the accounts. It also removes the threat of further civil litigation against Zurich-based UBS and additional fallout under criminal law. ‘Move Quickly’ IRS Commissioner Douglas Shulman said yesterday he expects the Swiss government to “move quickly” to transmit the information. “We will immediately follow up on the information we receive from the Swiss and we will vigorously enforce the laws against those who have attempted to evade their tax responsibilities by hiding their assets offshore,” he said. IRS spokesman Dean Patterson said “even though the special provisions of the voluntary disclosure program are no longer available, it’s always a good idea for taxpayers to come forward on their own and disclose tax issues before we find them.” A UBS spokeswoman in New York, Karina Byrne , said the bank previously told the 4,450 clients their account data would be given to the Swiss Federal Tax Administration, which would then determine if it should be disclosed to the IRS . The SFTA said yesterday in a statement that it had already reviewed 3,000 accounts to determine if they met the criteria for transfer to the U.S. under the accord. It said it had already disclosed the names of 500 consenting account-holders. IRS Offer About 15,000 Americans voluntarily reported secret offshore bank accounts to the IRS last year, after the tax agency offered to reduce certain penalties and not seek criminal charges. The program ran from March to October. Robert Fink , a tax lawyer with Kostelanetz & Fink LLP in New York, said many of the 4,450 UBS account holders may already have come forward after being warned of possible disclosure by the bank and the Swiss government. “The number of new names that the IRS will get will be far, far less than 4,450,” he said. Americans who didn’t take the IRS’s leniency offer last year now face possible criminal charges, prison time and the loss of all the money in their Swiss accounts, plus “substantially more,” said Barbara Kaplan , a tax lawyer at the New York firm Greenberg Traurig LLP. Those who come forward before the IRS learns their identity by other means may still avoid prison, she said. ‘Worst-Case Scenario’ “I think people are starting to realize that their opportunity to avoid disclosure has run out,” she said. “The worst-case scenario, including criminal prosecution, could ensue. It’s worth taking the chance on the civil side to mitigate the chance on the criminal side.” UBS, Switzerland’s biggest bank , avoided U.S. prosecution in February 2009 by paying $780 million, admitting it helped wealthy Americans evade U.S. taxes from 2000 to 2007, and handing over account data on more than 250 U.S. clients. The day after the settlement, the U.S. sued the bank, seeking data on 52,000 Swiss accounts. UBS settled that case in August, agreeing to hand over as many as 4,450 names to the Swiss government to review before passing them on to the IRS. Parliamentary approval became necessary after a Swiss court ruled in January that the agreement couldn’t be enforced as it then stood. Swiss lawmakers ratified the deal yesterday after the lower house agreed to drop demands for a public referendum that would have caused a deadline for disclosure of the information to be missed. Undeclared Assets Under terms of the settlement between the two countries last year, Switzerland will turn over details of UBS accounts of U.S. residents that held more than 1 million Swiss francs in undeclared assets at any time between 2001 and 2008. Other benchmarks include U.S. citizens who were beneficiaries of “offshore company accounts.” In both cases, there has to be a suspicion of “tax fraud and the like,” according to a statement distributed last year by the Swiss Justice Ministry in Bern. The steepest penalty allows the IRS to seize the higher of $100,000 or 50 percent of an offshore account’s value when the holder deliberately didn’t disclose it to the Treasury Department. That penalty can apply to multiple years. Scott Michel , a lawyer at Caplin & Drysdale in Washington, said he had received two calls yesterday from clients considering a voluntary disclosure after the Parliament’s vote. Leniency for Volunteers Michel said he and other tax lawyers hope the IRS will continue to show leniency to people who come forward, even without explicit offers to reduce penalties such as those last year. “If they start hammering people with 100 percent or more penalties, people are going to stop making voluntary disclosures,” Michel said. At least 16 UBS clients have been charged with tax crimes in the case. Two UBS bankers and three other alleged enablers of tax crimes also have been charged. At least 150 other Americans are under criminal investigation, the Justice Department said last year. To contact the reporter on this story: Ryan J. Donmoyer in Washington at rdonmoyer@bloomberg.net

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Obama Turns to Economy in Ohio to Highlight Administration’s Stimulus Jobs

February 26, 2011

By Kate Andersen Brower and Roger Runningen June 18 (Bloomberg) — President Barack Obama pivoted from the Gulf of Mexico oil spill back to the economy today with an emphasis on the jobs created by his administration’s $862 billion economic stimulus package. At a groundbreaking in Columbus, Ohio, for the 10,000th road project funded by the stimulus, Obama said improving the nation’s infrastructure is one of the keys to long-term prosperity. “If we’re going to rebuild America’s economy, then we’ve got to rebuild America, period, from the ports and the airways that ship our goods, to the roads and transit systems that move our workers and connect cities and businesses,” Obama said at the project site near the Nationwide Children’s Hospital . The president is seeking to remind voters of his efforts to revive the economy five months ahead November’s midterm elections. Republicans have criticized the stimulus legislation as a wasteful spending program that hasn’t fulfilled the administration’s promises on job creation. Unemployment in Ohio is 10.7 percent, one percentage point higher than the national average. While the Federal Reserve’s regional business survey showed last week that the economy expanded in all the central bank’s districts in April and May for the first time in more than two years, job growth has lagged. Initial jobless claims increased by 12,000 to 472,000 in the week ended June 12, Labor Department figures showed yesterday. ‘Summer of Recovery’ “The economy is still lousy,” Transportation Secretary Ray LaHood told reporters before today’s trip. “We want to put the message out: This is going to be the summer of recovery.” LaHood, who traveled with the president to Ohio, said the project being highlighted today is expected to create more than 300 new jobs and is one of 462 transportation projects in Ohio funded by $1.1 billion in stimulus money. The work being done under the stimulus will “pay dividends to our communities for generations to come,” Obama said. “While the recovery may start with projects like this it can’t end here.” In a report to the president released yesterday, Vice President Joe Biden said the government has spent $620 billion from the stimulus and created or saved between 2.2 million and 2.8 million jobs. He predicted jobs created or retained by the end of 2010 will number “at least” 3.5 million. Republican Critics “We have created over 17,000 jobs in the last month” in Ohio, Republican state auditor Mary Taylor , a candidate for lieutenant governor, told reporters on a conference call today before Obama arrived. “But it’s an important fact to note that 16,800 of those jobs created were government jobs.” The White House is kicking off a six-week focus on scores of public works projects under way across the nation and into the election season. “This summer a lot more people are going to be working on highways, building clean water projects, weatherizing homes, and — and they’ll be drawing paychecks that they wouldn’t have otherwise drawn,” Biden said at a briefing yesterday that was part of the administration’s focus on the stimulus. The economy will be a top issue in the November elections that will determine which party controls the House and Senate. The Columbus area is represented in the House by freshman Democrat Mary Jo Kilroy . She was elected in 2008, the first Democrat to represent the district since 1982, according to the Almanac of American Politics. The non-partisan Cook Political Report rates her race against Republican former state Senator Steve Stivers as a toss-up. “There’s a feeling of disenchantment, disillusionment, discouragement — a feeling that no politician is going to be able to do much to turn the situation around,” Paul Beck , a political science professor at Ohio State University in Columbus, said of voter sentiment in the state. “Until the private sector really turns around you’re not going to have a big surge of jobs,” said Beck. Still, Beck said, “the stimulus money has been very important to Ohio, it’s prevented wrenching cutbacks in Ohio.” To contact the reporters on this story: Kate Andersen Brower in Columbus, Ohio at kandersen7@bloomberg.net ; Roger Runningen in Washington at rrunningen@bloomberg.net

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Texas Congressman’s Apology to BP is Denounced by His Fellow Republicans

February 26, 2011

By Lisa Lerer and Patrick O’Connor June 18 (Bloomberg) — U.S. Representative Joe Barton may be the only person who had a worse day on Capitol Hill yesterday than BP Plc Chief Executive Officer Tony Hayward . The Texas Republican sparked a political backlash from both parties when he apologized to Hayward — at a hearing where other lawmakers lined up to berate BP — and accused the White House of a “shakedown” by pressuring BP to set aside $20 billion for damage claims from the Gulf of Mexico oil spill. Barton retracted his comments hours later after a meeting with House Minority Leader John Boehner , an Ohio Republican, and House Minority Whip Eric Cantor , a Virginia Republican. The party leaders told Barton to apologize immediately or lose his position as ranking Republican on the Energy and Commerce Committee , said a party leadership aide who spoke on condition of anonymity. The outcry illustrates Republicans’ difficulty in gaining political ground, even during a low period for President Barack Obama , as the party struggles to conquer internal divisions, said Julian Zelizer , a political science professor at Princeton University in New Jersey. Message Discord “The Republican Party is not totally united on what its message should be,” Zelizer said in an interview yesterday. “It’s the Tea Party-versus-leadership tension that we’ve seen on other issues.” The flap began at a hearing by the Energy and Commerce panel on the Gulf of Mexico spill. Lawmakers denounced Hayward for hours, accusing him of stonewalling and failing to provide answers about the causes of the explosion. Barton, though, at the hearing’s beginning apologized to Hayward. The congressman described the claims fund BP agreed to establish after its top officials met with Obama on June 16 as “a $20 billion shakedown.” “I’m ashamed of what happened in the White House,” Barton, 60, told Hayward at the hearing, and later said, “I apologize” for it. Less than six hours later, Boehner’s office released a statement by Barton in which he retracted his apology to BP and apologized “for using the term ‘shakedown.’” ‘Wrong’ Boehner’s office also issued a separate statement from the Republican leader, Cantor and Representative Mike Pence , an Indiana Republican, calling Barton’s statements at the hearing “wrong.” Barton’s statement said he regretted “the impact that my statement this morning implied that BP should not pay for the consequences of their decisions and actions in this incident.” The comments by Barton, who was first elected to his Dallas-area House seat in 1984, inflamed Gulf Coast Republicans, who are outraged at BP for failing to plug the leaking well. “I don’t think we need to be apologizing to British Petroleum,” said Florida Republican Senator George LeMieux . Representative Jeff Miller , a Florida Republican, said in a statement that Barton’s comments “call into question his judgment and ability to serve” in a leadership position on the Energy and Commerce Committee. Other fiscally conservative Republicans have criticized the BP agreement with the Obama administration. And Kentucky Republican Senate candidate Rand Paul today expressed sympathies for Barton in an interview with a radio station. “I have never liked the tone of the president when he said things or his administration says things like he is going to put the boot on the throat of BP,” he said on Lexington, Kentucky- based WVLK-AM. ‘Shakedown Politics’ Georgia Republican Representative Tom Price , in a statement yesterday, said Obama’s insistence on creating an escrow fund was an example of his administration “exerting its brand of Chicago-style shakedown politics.” Representative Michele Bachmann , a Minnesota Republican, criticized the idea of an escrow fund as a “redistribution-of- wealth” fund at a Heritage Foundation forum this week. Former Representative Dick Armey of Texas, a Republican and a leading funder of the Tea Party movement, said at a meeting this week with reporters that Obama lacked the constitutional authority to set up such a fund. ‘Risky’ “They’re trying to make an anti-Obama, anti-Democratic point out of this recent announcement, but I think it’s risky to Republicans,” said Zelizer. Employees of the oil and gas industry have been Barton’s largest source of campaign cash since 1989, giving him $1.4 million, according to the Center for Responsive Politics , a Washington-based research group. That’s more than any other House member has gotten from the industry. He has raised $100,470 from oil and gas industry employees for his 2010 re- election campaign. Democrats immediately seized on Barton’s statements, seeing an opportunity to score political points months before the November elections. “When people in the Gulf are suffering from actions taken by BP, Republicans in Congress are apologizing to BP,” House Speaker Nancy Pelosi told reporters, referring to the statements by Barton and Price. Jon Vogel, executive director of the Democratic Congressional Campaign Committee , used the comments in an e-mail fundraising appeal, telling supporters that their donations would “send an overwhelming message” that Republicans “shamelessly shill for their Big Oil backers.” Vice President Joe Biden called Barton’s remarks “incredibly insensitive, incredibly out-of-touch.” “There’s no shakedown,” the vice president said at a White House briefing. “It’s insisting on responsible conduct and a responsible response to something they caused.” To contact the reporters responsible for this story: Lisa Lerer at llerer@bloomberg.net ; Patrick O’Connor in Washington at Poconnor14@bloomberg.net

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Lloyds’s Fenner Says Oil Demand ‘Fragile’: Audio

February 24, 2011

Feb. 24 (Bloomberg) — Sian Fenner, an economist at Lloyds Bank Corporate Markets in London, says demand for oil “is fragile at the moment” and “fundamentals suggest oil prices should be lower.”

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Tchilinguirian Says Higher Oil May Not Curb Economy: Audio

February 24, 2011

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Former Fed Bank President Poole Says Fed Must Finish QE2: Audio

February 24, 2011

Feb. 24 (Bloomberg) — William Poole, former president of the Federal Reserve Bank of St.

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Lloyd Blankfein’s Headache: Bloomberg Markets Magazine

February 22, 2011

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Lloyd Blankfein’s Headache: Bloomberg Markets Magazine

February 22, 2011

Feb. 22 (Bloomberg) — Richard Teitelbaum, a senior writer at Bloomberg Markets magazine, talks with editor Ron Henkoff about Goldman Sachs Group Inc.’s struggle to manage other people’s money.

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Bob McKee Sees Middle East Affecting Markets for Weeks: Audio

February 22, 2011

Feb. 22 (Bloomberg) — Bob McKee, chief economist at Independent Strategy Ltd. in London, says unrest in the Middle East will continue to affect global markets for a few weeks.

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Lloyds’s Schmidt Says Oil Unlikely to Decline Soon: Audio

February 22, 2011

Feb. 22 (Bloomberg) — Adrian Schmidt, a foreign exchange strategist at Lloyds Bank Corporate Markets in London, says the “jittery” Middle East makes it “quite hard to see the oil price coming down a great deal.”

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Rajan Says Fed Setting Monetary Policy for World: Audio

February 18, 2011

Feb. 18 (Bloomberg) — Raghuram Rajan, a professor at the University of Chicago, talks with Kathleen Hays about the U.S

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Daiwa’s Mehta Sees U.K. Inflation Closer to 2% in 2012: Audio

February 18, 2011

Feb. 18 (Bloomberg) — Hetal Mehta, an economist at Daiwa Capital Markets Europe in London, says she sees inflation in the United Kingdom falling back to two percent next year.

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Daiwa’s Mehta Sees U.K. Inflation Closer to 2% in 2012: Audio

February 18, 2011

Feb. 18 (Bloomberg) — Hetal Mehta, an economist at Daiwa Capital Markets Europe in London, says she sees inflation in the United Kingdom falling back to two percent next year.

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Isaac, Pitt Say Dodd-Frank `Worst’ Financial Legislation: Audio

February 17, 2011

Feb. 17 (Bloomberg) — William Isaac, chairman of Fifth Third Bancorp and former chairman of the Federal Deposit Insurance Corporation, and Harvey Pitt, chief executive officer of Kalorama Partners and former chairman of the Securities and Exchange Commission, talk with Bloomberg’s Kathleen Hays about the Dodd-Frank financial overhaul law. Federal Reserve Chairman Ben S

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RBC’s Watt Says Fed on Hold Until 2012: Audio

February 17, 2011

Feb. 17 (Bloomberg) — David Watt, senior currency strategist at Royal Bank of Canada’s RBC Capital unit in Toronto, says “don’t look for the Fed to move” until the first quarter of 2012.

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Credit Agricole’s Green Says Fed Won’t be ‘Proactive’: Audio

February 17, 2011

Feb. 17 (Bloomberg) — Orlando Green, assistant director of capital-markets strategy at Credit Agricole Corporate & Investment Bank, says the U.S. Federal Reserve “will remain behind the curve rather than proactive.”

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Economics of Modeling; Kooi Says 2011 Is Year of Energy: Audio

February 16, 2011

Feb. 16 (Bloomberg) — Ashley Mears, assistant professor of sociology at Boston University, talks with Kathleen Hays about the labor market in the fashion modeling industry.

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Economics of Modeling; Kooi Says 2011 Is Year of Energy: Audio

February 16, 2011

Feb. 16 (Bloomberg) — Ashley Mears, assistant professor of sociology at Boston University, talks with Kathleen Hays about the labor market in the fashion modeling industry.

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Economics of Modeling; Kooi Says 2011 Is Year of Energy: Audio

February 16, 2011

Feb. 16 (Bloomberg) — Ashley Mears, assistant professor of sociology at Boston University, talks with Kathleen Hays about the labor market in the fashion modeling industry. Mari Kooi, chief executive officer and founder of Wolf Asset Management International, discusses the outlook for energy and commodity prices.

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