ResCap creditors target cash from Ally asset sales: WSJ












(Reuters) – A group of creditors of Ally Financial Inc‘s mortgage subsidiary is laying claim to cash from Ally asset sales that was intended to help repay the U.S. government, which funded a $ 17.2 billion bailout of the financing firm, the Wall Street Journal reported.


The creditors of mortgage firm Residential Capital LLC (ResCap) are eyeing more than $ 9 billion that Ally plans to collect from sales of its international operations, the business daily said.












Ally, which is 74 percent owned by the U.S. government, agreed to sell its European and Latin American auto lending operations to General Motors Co’s financing arm General Motors Financial Co for about $ 4.2 billion last week.


The sale was part of Ally’s efforts to speed up the repayment of bailout funds. The company is focusing on its U.S. business and has already sold operations in Canada and Mexico.


In a letter sent on Monday to Ally’s board, the creditors question transfers made in 2009 from Residential Capital to Ally, the Wall Street Journal reported, citing people who have reviewed the letter.


The creditors said Ally stripped ResCap of most of its value when it transferred Ally Bank, a depository unit valued at $ 10 billion, to the parent company and asked the company to repay them before others receive proceeds from Ally.


Ally, the former financing arm of GM, confirmed a letter had been received and said the company disagreed with the creditors’ claims, although it did not elaborate on the content of the letter.


“The letter from ResCap’s unsecured creditors‘ committee is a predictable tactic. We strongly disagree with the allegations in the letter and believe the claims are wholly without merit,” Ally spokeswoman Gina Proia said in an e-mailed statement.


Ally has maintained that it is insulated from ResCap’s liabilities because of their distinct ownership structures.


The Wall Street Journal said a representative for the creditors’ committee did not respond to a request for comment.


ResCap filed for bankruptcy in May and earlier this month a bankruptcy court judge approved the sale of its mortgage operations to Ocwen Financial Corp and Walter Investment Management Corp for $ 3 billion.


(Reporting by Ashutosh Pandey in Bangalore and Rick Rothacker in New York; Editing by Edmund Klamann)


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Israel successfully tests missile defense system












JERUSALEM (AP) — Israel successfully tested its newest missile defense system Sunday, the military said, a step toward making the third leg of what Israel calls its “multilayer missile defense” operational.


The “David’s Sling” system is designed to stop mid-range missiles. It successfully passed its test, shooting down its first missile in a drill Sunday in southern Israel, the military said.












The system is designed to intercept projectiles with ranges of up to 300 kilometers (180 miles).


Israel has also deployed Arrow systems for longer-range threats from Iran. The Iron Dome protects against short-range rockets fired by militants in the Gaza Strip and Hezbollah guerrillas in Lebanon. Iron Dome shot down hundreds of rockets from Gaza in this month’s round of fighting.


Israeli Defense Minister Ehud Barak said the success of Iron Dome highlighted the “immense importance” of such systems.


“David’s Sling,” also known “Magic Wand,” is developed by Israel’s Rafael Advanced Defense Systems and U.S.-based Raytheon Co. and is primarily designed to counter the large arsenal of Hezbollah rockets in Lebanon.


The military said the program, which is on schedule for deployment in 2014, would “provide an additional layer of defense against ballistic missiles.”


The next generation of the Arrow, now in the development stage, is set to be deployed in 2016. Called the Arrow 3, it is designed to strike its target outside the atmosphere, intercepting missiles closer to their launch sites. Together, the two Arrow systems would provide two chances to strike down incoming missiles.


Israel also uses U.S.-made Patriot missile defense batteries against mid-range missiles, though these failed to hit any of the 39 Scud missiles fired at Israel from Iraq In the first Gulf War 20 years ago. Manufacturers say the Patriot system has been improved since then.


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Tourists visit Southfork to remember Larry Hagman












PARKER, Texas (AP) — Tourists and locals flocked to Southfork Ranch on Saturday, bringing flowers in memory of Larry Hagman, who played the infamous J.R. Ewing on the TV show “Dallas.”


Hagman died in Dallas on Friday at age 81 due to complications from his battle with cancer.












Southfork, a ranch north of Dallas, was known to millions of viewers as the Ewing family home. Exterior shots of the house and pool were shown when the series aired from 1978 to 1991, although the show wasn’t filmed there.


The ranch has been open for tours since the mid-1980s, and now sees more than 100,000 visitors each year. Each room of the house has a theme for each character.


On Saturday, J.R. Ewing’s room had flowers and a card for tourists to sign.


“Today is about Larry Hagman and his family,” said Janna Timm, a Southfork Ranch & Hotel spokeswoman. “He was such a wonderful person, and we will really miss him.”


“Dallas” was recently revived on TNT this summer, and all of the scenes were filmed at Southfork or other places in the Dallas area. Hagman had revised his role as the scheming oilman who would even double-cross his own son.


Linda Sproule of Peterborough, Ontario, had been traveling through the U.S. the past couple of weeks and heard about Hagman’s death Friday while in Dallas. She said she didn’t know where Southfork was but wanted to come because she was a fan of the show in the 1980s.


“I remember on Friday nights we watched it, and J.R. was bigger than life in some ways,” she said after taking the Southfork tour Saturday morning. “This ranch is beautiful. Being here is kind of emotional in a way.”


Barbara Quinones and her husband were in town for their daughter’s soccer tournament and had already planned to visit Southfork when they heard news of Hagman’s death.


“We loved him because he was so ruthless,” said Quinones, of Albuquerque, N.M. “This is a sad day, but I’m glad we’re here.”


Some of the show’s stars, including Hagman, came to Southfork for the series’ 25th anniversary. The Fort Worth-born actor also had visited several times before the show was revived.


“He was definitely a gentleman, a class act,” said Jim Gomes, vice president of resorts at Southfork Ranch & Hotel. “He loved the fans as much as they loved him.”


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Donald preparing for surgery on sinuses












DUBAI (Reuters) – World number two Luke Donald is planning to have an operation in the off-season in an attempt to cure a lingering problem with his sinuses.


“My sinuses are all completely clogged up and every time I get a little bit run down they turn into infections,” the 34-year-old Briton told reporters after finishing in a tie for third place at the DP World Tour Championship on Sunday.












“Hopefully the surgery will fix it. It’s a pretty quick and easy operation.”


Donald said he was affected by the problem over the last two rounds in Dubai, the final event of the European Tour season.


The former world number one wanted to make it clear, however, that his disappointing one-under-par final round of 71 should not be blamed on his physical ailments.


“I don’t like to make excuses but the last couple of days I’ve had the sinus issue again,” added Donald. “I felt a little bit flat and unfortunately I couldn’t get things going on Sunday.”


The Chicago-based Englishman went into the last 18 holes sharing the lead with Ryder Cup team mate Rory McIlroy.


Donald went a remarkable 102 holes without carding a bogey in the Dubai tournament, this year and in 2011, but a dropped stroke at the third on Sunday ended that sequence and put him on the back foot for the rest of the round.


He finished five strokes adrift of world number one and tournament winner McIlroy, who birdied each of the closing five holes to shoot a six-under 66.


(Editing by Peter Rutherford)


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The Man With a China Growth Plan












China’s premier-elect, Li Keqiang, ran a province of 93 million people that endured three deadly fire disasters and an HIV blood scandal on his watch. His run of bad luck as Governor of Henan from 1998 to 2004 earned him the nickname Three-Fires Li in the foreign press. Beijing’s Communist officialdom, however, has high hopes for Li, an award-winning economist for his work on urbanization, in his new role as the country’s top economic policymaker.


In March, Li, 57, will inherit an economy forecast to grow at 7 percent in 2013, the slowest pace in at least 23 years, according to investment fund company Pimco. It will take major economic reforms to arrest the slowdown, encourage growth of globally competitive private sector companies, and address a widening income gap. China’s new leadership team, led by incoming Communist Party General Secretary and President-elect Xi Jinping, needs to roll back the dominant state-owned enterprises that receive the majority of loans from government-controlled banks, according to the World Bank’s “China 2030” study, which Li has publicly endorsed. Another task: Allow the markets—not bureaucrats—to determine the prices for everything from bank loans to raw materials.












Although millions have escaped poverty since Deng Xiaoping opened China to foreign investment and put in place limited reforms in 1978, the world’s second biggest economy faces new challenges—namely, what economists call the middle-income trap. That refers to the slower growth developing economies encounter when they fail to implement political, financial, and legal reforms needed to create a bigger middle class. Of 101 middle-income economies in 1960, only 13 became high-income societies by 2008, the World Bank estimates. The bank defines high-income as $ 12,476 or more in per-capita gross national income.


In speeches, Li hasn’t been shy about pointing to what he thinks are China’s economic shortcomings: an unsustainable rate of investment, an overdependence on exports, weak domestic consumption, and an underdeveloped service sector. Li has also emphasized the growing income inequality that resulted in city dwellers earning 3.3 times more than their rural counterparts in 2009.


More than 100 million people left farms for cities during Hu Jintao’s presidency, many for jobs in factories, and Li wants to see even faster urban migration to boost incomes. By 2030 as many as 300 million more people will have moved from the countryside to join 600 million already living in cities, the Organisation for Economic Co-operation and Development estimates. Urbanization “is the fuel for a sustained high-investment ratio in Chinese GDP,” says Stephen Roach, former nonexecutive chairman at Morgan Stanley (MS) in Asia and a senior fellow at Yale University. “But here’s the catch—urbanization is a transition strategy at best. It will have to have an increasingly services-led job creation to absorb the influx of surplus labor, and only then can the urbanization strategy really come to life.”


Rebalancing Chinese growth away from exports and expanding middle-class incomes will require taking on provincial governments and state-run companies and banks that have grown rich off the current system. “The big question is whether China will change before a crisis forces it to,” says David Loevinger, former senior coordinator for China affairs at the U.S. Treasury Department.


Few dispute Li’s economic credentials. During the years he spent running Henan and then Liaoning, these regions grew at more than 10 percent annually. He has a law degree and a Ph.D. in economics from Peking University. “He is a new generation of leader,” says Robert Lawrence Kuhn, author of How China’s Leaders Think and an adviser to the Chinese government. Yet it will take more than economic savvy to push through controversial economic reforms. Big state companies and bureaucrats “won’t be listening to a weak premier,” says Lam Wo Lap Willy, an adjunct professor of history at the Chinese University of Hong Kong. China needs an iron-fisted reformer like Premier Zhu Rongji, who fought government corruption and forced state-owned banks to deal with dud loans during the 1990s, he says. “People feared Zhu Rongji,” says Lam. “But nobody is going to fear Li Keqiang.”


The bottom line: China’s new reformist premier aims to expand migration to cities, where incomes are three times higher than in the countryside.


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Egypt reformist warns of turmoil from Morsi decree












CAIRO (AP) — Prominent Egyptian democracy advocate Mohammed ElBaradei warned Saturday of increasing turmoil that could potentially lead to the military stepping in unless the Islamist president rescinds his new, near absolute powers, as the country’s long fragmented opposition sought to unite and rally new protests.


Egypt‘s liberal and secular forces — long divided, weakened and uncertain amid the rise of Islamist parties to power — are seeking to rally themselves in response to the decrees issued this week by President Mohammed Morsi. The president granted himself sweeping powers to “protect the revolution” and made himself immune to judicial oversight.












The judiciary, which was the main target of Morsi’s edicts, pushed back Saturday. The country’s highest body of judges, the Supreme Judical Council, called his decrees an “unprecedented assault.” Courts in the Mediterranean city of Alexandria announced a work suspension until the decrees are lifted.


Outside the high court building in Cairo, several hundred demonstrators rallied against Morsi, chanting, “Leave! Leave!” echoing the slogan used against former leader Hosni Mubarak in last year’s uprising that ousted him. Police fired tear gas to disperse a crowd of young men who were shooting flares outside the court.


The edicts issued Wednesday have galvanized anger brewing against Morsi and the Muslim Brotherhood, from which he hails, ever since he took office in June as Egypt’s first freely elected president. Critics accuse the Brotherhood — which has dominated elections the past year — and other Islamists of monopolizing power and doing little to bring real reform or address Egypt’s mounting economic and security woes.


Oppositon groups have called for new nationwide rallies Tuesday — and the Muslim Brotherhood has called for rallies supporting Morsi the same day, setting the stage for new violence.


Morsi supporters counter that the edicts were necessary to prevent the courts, which already dissolved the elected lower house of parliament, from further holding up moves to stability by disbanding the assembly writing the new constitution, as judges were considering doing. Like parliament was, the assembly is dominated by Islamists. Morsi accuses Mubarak loyalists in the judiciary of seeking to thwart the revolution’s goals and barred the judiciary from disbanding the constitutional assembly or parliament’s upper house.


In an interview with a handful of journalists, including The Associated Press, Nobel Peace laureate ElBaradei raised alarm over the impact of Morsi’s rulings, saying he had become “a new pharaoh.”


“There is a good deal of anger, chaos, confusion. Violence is spreading to many places and state authority is starting to erode slowly,” he said. “We hope that we can manage to do a smooth transition without plunging the country into a cycle of violence. But I don’t see this happening without Mr. Morsi rescinding all of this.”


Speaking of Egypt’s powerful military, ElBaradei said, “I am sure they are as worried as everyone else. You cannot exclude that the army will intervene to restore law and order” if the situation gets out of hand.


But anti-Morsi factions are chronically divided, with revolutionary youth activists, new liberal political parties that have struggled to build a public base and figures from the Mubarak era, all of whom distrust each other. The judiciary is also an uncomfortable cause for some to back, since it includes many Mubarak appointees who even Morsi opponents criticize as too tied to the old regime.


Opponents say the edicts gave Morsi near dictatorial powers, neutering the judiciary when he already holds both executive and legislative powers. One of his most controversial edicts gave him the right to take any steps to stop “threats to the revolution,” vague wording that activists say harkens back to Mubarak-era emergency laws.


Tens of thousands of people took to the streets in nationwide protests on Friday, sparking clashes between anti-and pro-Morsi crowds in several cities that left more than 200 people wounded.


On Saturday, new clashed broke out in the southern city of Assiut. Morsi opponents and members of the Muslim Brotherhood swung sticks and threw stones at each other outside the offices of the Brotherhood‘s political party, leaving at least seven injured.


ElBaradei and a six other prominent liberal leaders have announced the formation of a National Salvation Front aimed at rallying all non-Islamist groups together to force Morsi to rescind his edicts.


The National Salvation Front leadership includes several who ran against Morsi in this year’s presidential race — Hamdeen Sabahi, who finished a close third, former foreign minister Amr Moussa and moderate Islamist Abdel-Moneim Aboul-Fotouh. ElBaradei says the group is also pushing for the creation of a new constitutional assembly and a unity government.


ElBaradei said it would be a long process to persuade Morsi that he “cannot get away with murder.”


“There is no middle ground, no dialogue before he rescinds this declaration. There is no room for dialogue until then.”


The grouping seems to represent a newly assertive political foray by ElBaradei, the former chief of the U.N. nuclear watchdog agency. ElBaradei returned to Egypt in the year before Mubarak’s fall, speaking out against his rule, and was influential with many of the youth groups that launched the anti-Mubarak revolution.


But since Mubarak’s fall, he has been criticized by some as too Westernized, elite and Hamlet-ish, reluctant to fully assert himself as an opposition leader.


The Brotherhood‘s Freedom and Justice political party, once headed by Morsi, said Saturday in a statement that the president’s decision protects the revolution against former regime figures who have tried to erode elected institutions and were threatening to dissolve the constitutional assembly.


The Brotherhood warned in another statement that there were forces trying to overthrow the elected president in order to return to power. It said Morsi has a mandate to lead, having defeated one of Mubarak’s former prime ministers this summer in a closely contested election.


Morsi’s edicts also removed Abdel-Meguid Mahmoud, the prosecutor general first appointed by Mubarak, who many Egyptians accused of not prosecuting former regime figures strongly enough.


Speaking to a gathering of judges cheering support for him at the high court building in Cairo, Mahmoud warned of a “vicious campaign” against state institutions. He also said judicial authorities are looking into the legality of the decision to remove him — setting up a Catch-22 of legitimacy, since under Morsi’s decree, the courts cannot overturn any of his decisions.


“I thank you for your support of judicial independence,” he told the judges.


“Morsi will have to reverse his decision to avoid the anger of the people,” said Ahmed Badrawy, a labor ministry employee protesting at the courthouse. “We do not want to have an Iranian system here,” he added, referring to fears that hardcore Islamists may try to turn Egypt into a theocracy.


Several hundred protesters remained in Cairo’s Tahrir Square Saturday, where a number of tents have been erected in a sit-in following nearly a week of clashes with riot police.


____


Brian Rohan contributed to this report from Cairo.


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10 Adorable Animals Feeding Other Animals [VIDEOS]












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Hobbits, superheroes put magic in NZ film industry












WELLINGTON, New Zealand (AP) — A crate full of sushi arrives. Workers wearing wetsuit shirts or in bare feet bustle past with slim laptops. With days to go, a buzzing intensity fills the once-dilapidated warehouses where Peter Jackson‘s visual-effects studio is rushing to finish the opening film in “The Hobbit” trilogy.


The fevered pace at the Weta Digital studio near Wellington will last nearly until the actors walk the red carpet Nov. 28 for the world premiere. But after “The Hobbit: An Unexpected Journey” hits theaters, there’s more work to be done.












Weta Digital is the centerpiece of a filmmaking empire that Jackson and close collaborators have built in his New Zealand hometown, realizing his dream of bringing a slice of Hollywood to Wellington. It’s a one-stop shop for making major movies — not only his own, but other blockbusters like “Avatar” and “The Avengers” and hoped-for blockbusters like next year’s “Man of Steel.”


Along the way, Jackson has become revered here, even receiving a knighthood. His humble demeanor and crumpled appearance appeal to distinctly New Zealand values, yet his modesty belies his influence. He’s also attracted criticism along the way.


The special-effects workforce of 150 on “The Lord of the Rings” trilogy a decade ago now numbers 1,100. Only five of Weta Digital‘s workers are actual employees, however, while the rest are contractors. Many accept the situation because movie work often comes irregularly but pays well. Union leaders, though, say the workers lack labor protections existing in almost any other industry.


Like many colleagues, Weta Digital‘s director, Joe Letteri, came to New Zealand in 2001 to work on the “Rings” trilogy for two years. The work kept coming, so he bought a house in Wellington and stayed.


“People come here because they know it’s their chance to do something really great and to get it up on the screen,” he said in a recent interview. “And you want to do it in these next two weeks, because the two weeks after the movie’s finished are useless.”


Jackson, who declined to be interviewed for this story, launched Weta in 1993 with fellow filmmakers Jamie Selkirk and Richard Taylor. Named after an oversized New Zealand insect, the company later was split into its digital arm and Weta Workshop, which makes props and costumes.


Loving homages to the craft are present in Weta Digital’s seven buildings around the green-hilled suburb of Miramar. There are old-time movie posters, prop skulls of dinosaurs and apes, and a wall of latex face impressions of actors from Chris O’Donnell to Tom Cruise.


Its huge data center, with the computing power of 30,000 laptops, resembles a milk-processing plant because only the dairy industry in New Zealand knew how to build cooling systems on such a grand scale.


Little of Weta’s current work was visible. Visitors must sign confidentiality agreements, and the working areas of the facilities are off-limits. The company is secretive about any unannounced projects, beyond saying Weta will be working solidly for the next two years, when the two later “Hobbit” films are scheduled to be released.


The workforce has changed from majority American to about 60 percent New Zealanders. The only skill that’s needed, Letteri says, is the ability to use a computer as a tool.


Beyond having creativity as a filmmaker, Jackson has proved a savvy businessman, Letteri says.


“The film business in general is volatile, and visual effects has to be sitting right on the crest of that wave,” Letteri says. “We don’t get asked to do something that somebody has seen before.”


The government calculates that feature films contribute $ 560 million each year to New Zealand‘s economy. Like many countries, New Zealand offers incentives and rebates to film companies and will contribute about $ 100 million toward the $ 500 million production costs of “The Hobbit” trilogy. Almost every big budget film goes through Jackson’s companies.


New Zealand has a good reputation for delivering films on time and under budget, and Jackson has been superb at that,” says John Yeabsley, a senior fellow at New Zealand‘s Institute of Economic Research. “Nobody has the same record or the magic ability to bring home the bacon as Sir Peter.”


“You cannot overestimate the fact that Peter is a brand,” says Graeme Mason, chief executive of the New Zealand Film Commission. “He’s built this incredible reputational position, which has a snowball effect.”


Back in 2010, however, a labor dispute erupted before filming began on “The Hobbit.” Unions said they would boycott the movie if the actors didn’t get to collectively negotiate. Jackson and others warned that New Zealand could lose the films to Europe. Warner Bros. executives flew to New Zealand and held a high-stakes meeting with Prime Minister John Key, whose government changed labor laws overnight to clarify that movie workers were exempt from being treated as regular employees.


Helen Kelly, president of the New Zealand Council of Trade Unions, says a compromise could easily have been reached. She says the law changes amounted to unnecessary union-busting and a “gross breach” of employment laws.


“I was very disappointed at Peter Jackson for lobbying for that,” she says, “and I was furious at the government for doing it.”


Weta Digital’s general manager Tom Greally compared it to the construction industry, where multiple contractors and mobile workers do specific projects and then move on.


Animal rights activists said last week they plan to picket the premiere of “The Hobbit” after wranglers alleged that three horses and up to two dozen other animals died in unsafe conditions at a farm where animals were boarded for the movies. Jackson’s spokesman Matt Dravitzki acknowledged two horses died preventable deaths at the farm but said the production company worked quickly to improve animal housing and safety. He rejected claims any animals were mistreated or abused.


Jackson’s team pointed out that 55 percent of animal images in “The Hobbit” were computer generated at Weta. The People for the Ethical Treatment of Animals (PETA) have asked Jackson in the future to create all his animals in the studio.


Controversies aside, the rise of Weta and the expat American community in and around Miramar is visible in everything from a Mexican restaurant to yoga classes. On Halloween, which in the past was not much celebrated in New Zealand, hundreds of costumed children roamed about collecting candy. Americans gave the tradition a boost here, but the locals have embraced it.


The National Business Review newspaper estimates Jackson’s personal fortune to be about $ 400 million, which could rise considerably if “The Hobbit” franchise succeeds. Public records show Jackson has partial ownership stakes in 21 private companies, most connected with his film empire. He’s spent some of his money on philanthropy, helping save a historic church and a performance theater.


For all his influence, Jackson maintains a hobbit-like existence himself, preferring a quiet home life outside of work. In the end, many say, he seems to be driven by what has interested him from the start: telling great stories on the big screen.


___


Follow Nick Perry on Twitter at http://twitter.com/nickgbperry


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Taming the Workplace Bully












It started during the training sessions for her new job. Elizabeth Santeramo, a cancer information specialist in New York, saw a woman across the room glance in her direction, whisper in the ear of a co-worker, and then snort derisively. The episode seemed so brazenly immature, as if plucked directly from Mean Girls, that Santeramo shrugged it off. “The work we were doing was to help people who were just diagnosed with cancer,” she says. “We’re all empathic, compassionate people, I told myself. I’m just being paranoid.” A few days later, the abusive snickering intensified.


One day Santeramo’s nemesis approached a cubicle near hers, where she removed a cutout picture of a golden-haired cat and propped it up so everyone in the room could see it. When Santeramo stood up, puzzled, the woman began to meow at her. Her colleagues around her joined in. Soon, a chorus of malicious meowing would follow Santeramo in and out of the office like a demented soundtrack. “To this day,” she says, “I remain mystified by the meows.”












The abuse, which led to an emotional meeting with her supervisor, is just one indication of how bullying, contrary to popular stereotype, has made its way from high school locker rooms and hallways to the office. “In a lot of workplaces, it’s just considered part of daily workplace culture,” says Joe Grimm, professor of journalism at Michigan State University. “Browbeating, intimidation, cutting people off, and being the loudest in the room with an opinion.” In a recent book he edited, The New Bullying: How Social Media, Social Exclusion, Laws and Suicide Have Changed Our Definition of Bullying, Grimm reveals how bullying has some professionals living in debilitating fear of the office, which may sound familiar for viewers of The Devil Wears Prada, the thinly veiled account of working at Vogue, or the junior analysts at Goldman Sachs (GS) who were once forced to dress up like Teletubbies. “When bullies get out of school,” says Grimm, “they don’t stop being bullies.”


By some accounts, legions of Biff Tannens and Nurse Ratcheds are running rampant, inflicting cruelty on a large part of the American workforce. In August, CareerBuilder announced that 35 percent of employees surveyed claim to have been bullied at work, up from 27 percent the year before. The Workplace Bullying Institute, based in Bellingham, Wash., has 36 state chapters, a 10,000-person mailing list, and local, on-the-ground “targets” (the WBI doesn’t like the word victim) who now direct anti-bullying campaigns and serve as local points of contact. This year legislation making it easier for bullying victims to sue employers was introduced in 13 states.


The official definition of bullying, according to the WBI, is a “repeated, health-harming mistreatment” by one or more “perpetrators” that takes the form of “verbal abuse, offensive conduct/behaviors which are threatening, humiliating, or intimidating,” or “work interference-sabotage—which prevents work from getting done.” Here, WBI representatives make a distinction between a bully and someone who’s just mean. An overly demanding boss, explains a WBI volunteer, generally puts pressure on all underlings. Once a task is finished, however, verbal assaults stop. Bullies tend to single out an individual with an added level of personal malice. When a manager at a Direct Federal Credit Union a few years ago seized an underling’s diary and read excerpts to her co-workers, that was bullying.


In the corporate world, bullying tends to be about power, control, and career advancement. “Bullying can be a way of getting ahead,” says Stacey Kessler, assistant professor of management at Montclair State University. For decades researchers have used questionnaires known as Machiavellianism (or Mach) scales to measure an individual’s capacity to engage in the manipulative, amoral, and deceitful behaviors espoused by the 15th century ends-justify-the-means diplomat. Recently psychologists found that those who score high on the 100-point Mach scale are also among those likeliest to engage in office bullying. The employee “might bully someone at the job to keep them quiet or to get an individual to do more things for him or her,” says Kessler. The person could also be popular and want to maintain his or her status, or have low self-esteem and want to feel superior, adds Robin Kowalski, a psychology professor at Clemson University. “In workplace bullying,” she says, “you’re talking about adults who have a certain degree of self-control, so they are more devious and calculating.”


This raises the question: Should business become more like high school and impose strict rules protecting individuals from persecution? Gary Namie, a social psychologist, would say yes. Ever since his wife was bullied by a boss and fell into depression in the 1980s, Namie has been working to shed light on office bullying. He co-founded the WBI with his wife in 1991 but has been fighting a largely losing battle in the courts. He estimates that in almost 20 years he’s been involved in 30 bullying cases, five of which settled and 22 of which were thrown out. Only one went to trial. “I feel bad for the clients because they sunk money into these cases,” he says. “Nothing that employers do seems to be outrageous enough for the courts.” Much of this failure stems from employment laws that stack the deck in the bully’s favor. Many states preclude employees from taking actions against employers for emotional harm unless there’s a discriminatory or retaliatory component—in other words, unless race, gender, or whistle-blowing is a factor. “I lost another summary judgment in favor of employers just last week,” says Namie.


In a case cited by David Yamada, a professor and founding director of the New Workplace Institute at Suffolk University Law School in Boston, a physician in Arkansas abused an employee for two years, called her a “slut,” and told her repeatedly that women who work outside the home are “whores and prostitutes.” Making matters worse, he threatened to kill her if she quit. In its decision, an Arkansas court ruled that even if the allegations were true, they still didn’t add up to intentional affliction of emotional stress. “Many targets say, ‘I’m just being crushed at work,’ ” Yamada says. “And the lawyers are telling them this type of mistreatment is completely legal.”


Lawsuits aside, there’s at least one powerful incentive for companies to consider adopting anti-bullying measures. According to a landmark 2008 Gallup Poll of more than 1 million workers, the most common reason for quitting a job: an overbearing boss. “Bullying is hugely expensive,” says Michigan State’s Grimm. “It keeps people from the jobs they could best do. If you quit because of bullying, it would take a company twice your annual salary to replace you: flying in job candidates, hiring, and training.” And sometimes these conflicts are more easily fixable. After Santeramo complained to her supervisor about her tormentor, which had little effect, she decided to test the age-old theory that “bullies are cowards.”


“I approached her to befriend her,” she says. “And it worked.”


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Beijing’s S. China Sea rivals protest passport map












TAIPEI, Taiwan (AP) — China has enraged several neighbors with a few dashes on a map, printed in its newly revised passports that show it staking its claim on the entire South China Sea and even Taiwan.


Inside the passports, an outline of China printed in the upper left corner includes Taiwan and the sea, hemmed in by the dashes. The change highlights China’s longstanding claim on the South China Sea in its entirety, though parts of the waters also are claimed by the Philippines, Vietnam, Taiwan, Brunei and Malaysia.












China’s official maps have long included Taiwan and the South China Sea as Chinese territory, but the act of including them in its passports could be seen as a provocation since it would require other nations to tacitly endorse those claims by affixing their official seals to the documents.


Ruling party and opposition lawmakers alike condemned the map in Taiwan, a self-governed island that split from China after a civil war in 1949. They said it could harm the warming ties the historic rivals have enjoyed since Ma Ying-jeou became president 4 1/2 years ago.


“This is total ignorance of reality and only provokes disputes,” said Taiwan’s Mainland Affairs Council, the Cabinet-level body responsible for ties with Beijing. The council said the government cannot accept the map.


Philippine Foreign Secretary Albert del Rosario told reporters in Manila that he sent a note to the Chinese Embassy that his country “strongly protests” the image. He said China’s claims include an area that is “clearly part of the Philippines’ territory and maritime domain.”


The Vietnamese government said it had also sent a diplomatic note to the Chinese Embassy in Hanoi, demanding that Beijing remove the “erroneous content” printed in the passport.


In Beijing, the Foreign Ministry said the new passport was issued based on international standards. China began issuing new versions of its passports to include electronic chips on May 15, though criticism cropped up only this week.


“The design of this type of passports is not directed against any particular country,” Chinese Foreign Ministry spokeswoman Hua Chunying said at a daily media briefing Friday. “We hope the relevant countries can calmly treat it with rationality and restraint so that the normal visits by the Chinese and foreigners will not be unnecessarily interfered with.”


It’s unclear whether China’s South China Sea neighbors will respond in any way beyond protesting to Beijing. China, in a territorial dispute with India, once stapled visas into passports to avoid stamping them.


“Vietnam reserves the right to carry out necessary measures suitable to Vietnamese law, international law and practices toward such passports,” Vietnamese foreign ministry spokesman Luong Thanh Nghi said.


Taiwan does not recognize China’s passports in any case; Chinese visitors to the island have special travel documents.


China maintains it has ancient claims to all of the South China Sea, despite much of it being within the exclusive economic zones of Southeast Asian neighbors. The islands and waters are potentially rich in oil and gas.


There are concerns that the disputes could escalate into violence. China and the Philippines had a tense maritime standoff at a shoal west of the main Philippine island of Luzon early this year.


The United States, which has said it takes no sides in the territorial spats but that it considers ensuring safe maritime traffic in the waters to be in its national interest, has backed a call for a “code of conduct” to prevent clashes in the disputed territories. But it remains unclear if and when China will sit down with rival claimants to draft such a legally binding nonaggression pact.


The Philippines, Brunei, Malaysia and Vietnam are scheduled to meet Dec. 12 to discuss claims in the South China Sea and the role of China.


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Associated Press writers Oliver Teves in Manila, Philippines, Chris Brummitt in Hanoi, Vietnam, and researcher Zhao Liang in Beijing contributed to this report.


Asia News Headlines – Yahoo! News


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