Analysis: Amid Tears Lance Armstrong Leaves Unanswered Questions in Oprah Winfrey Interview





In an extensive interview with Oprah Winfrey that was shown over two nights, Lance Armstrong admitted publicly for the first time that he doped throughout his cycling career. He revealed that all seven of his Tour de France victories were fueled by doping, that he never felt bad about cheating, and that he had covered up a positive drug test at the 1999 Tour with a backdated doctor’s prescription for banned cortisone.




Armstrong, the once defiant cyclist, also became choked up when he discussed how he told his oldest child that the rumors about Armstrong’s doping were true.


Even with all that, the interview will most likely be remembered for what it was missing.


Armstrong had not subjected himself to questioning from anyone in the news media since United States antidoping officials laid out their case against him in October. He chose not to appeal their ruling, leaving him with a lifetime ban from Olympic sports.


He personally chose Winfrey for his big reveal, and it went predictably. Winfrey allowed him to share his thoughts and elicited emotions from him, but she consistently failed to ask critical follow-up questions that would have addressed the most vexing aspects of Armstrong’s deception.


She did not press him on who helped him dope or cover up his drug use for more than a decade. Nor did she ask him why he chose to take banned performance-enhancing substances even after cancer had threatened his life.


Winfrey also did not push him to answer whether he had admitted to doctors in an Indianapolis hospital in 1996 that he had used performance-enhancing drugs, a confession a former teammate and his wife claimed they overheard that day. To get to the bottom of his deceit, antidoping officials said, Armstrong has to be willing to provide more details.


“He spoke to a talk-show host,” David Howman, the director general of the World Anti-Doping Agency, said from Montreal on Friday. “I don’t think any of it amounted to assistance to the antidoping community, let alone substantial assistance. You bundle it all up and say, ‘So what?’


Jeffrey M. Tillotson, the lawyer for an insurance company that unsuccessfully withheld a $5 million bonus from Armstrong on the basis that he had cheated to win the Tour de France in 2004, said his client would make a decision over the weekend about whether to sue Armstrong. If it proceeds, the company, SCA Promotions, will seek $12 million, the total it paid Armstrong in bonuses and legal fees.


“It seemed to us that he was more sorry that he had been caught than for what he had done,” Tillotson said. “If he’s serious about rehabbing himself, he needs to start making amends to the people he bullied and vilified, and he needs to start paying money back.”


Armstrong, who said he once believed himself to be invincible, explained in the portion of the interview broadcast Friday night that he started to take steps toward redemption last month. Then, after dozens of questions had already been lobbed his way, he became emotional when he described how he told his 13-year-old son, Luke, that yes, his father had cheated by doping. That talk happened last month over the holidays, Armstrong said as he fought back tears.


“I said, listen, there’s been a lot of questions about your dad, my career, whether I doped or did not dope, and I’ve always denied, I’ve always been ruthless and defiant about that, which is probably why you trusted me, which makes it even sicker,” Armstrong said he told his son, the oldest of his five children. “I want you to know it’s true.”


At times, Winfrey’s interview seemed more like a therapy session than an inquisition, with Armstrong admitting that he was narcissistic and had been in therapy — and that he should be in therapy regularly because his life was so complicated.


In the end, the interview most likely accomplished what Armstrong had hoped: it was the vehicle through which he admitted to the public that he had cheated by doping, which he had lied about for more than a decade. But his answers were just the first step to clawing back his once stellar reputation.


On Friday, Armstrong appeared more contrite than he had during the part of the interview that was shown Thursday, yet he still insisted that he was clean when he made his comeback to cycling in 2009 after a brief retirement, an assertion the United States Anti-Doping Agency said was untrue. He also implied that his lifetime ban from all Olympic sports was unfair because some of his former teammates who testified about their doping and the doping on Armstrong’s teams received only six-month bans.


Richard Pound, the founding chairman of WADA and a member of the International Olympic Committee, said he was unmoved by Armstrong’s televised mea culpa.


“If what he’s looking for is some kind of reconstruction of his image, instead of providing entertainment with Oprah Winfrey, he’s got a long way to go,” Pound said Friday from his Montreal office.


Armstrong acknowledged to Winfrey during Friday’s broadcast that he has a long way to go before winning back the public’s trust. He said he understood why people recently turned on him because they felt angry and betrayed.


“I lied to you and I’m sorry,” he said before acknowledging that he might have lost many of his supporters for good. “I am committed to spending as long as I have to to make amends, knowing full well that I won’t get very many back.”


Armstrong also said that the scandal has cost him $75 million in lost sponsors, all of whom abandoned him last fall after Usada made public 1,000 pages of evidence that Armstrong had doped.


“In a way, I just assumed we would get to that point,” he said of his sponsors’ leaving. “The story was getting out of control.”


In closing her interview, Winfrey asked Armstrong a question that left him perplexed.


“Will you rise again?” she said.


Armstrong said: “I don’t know. I don’t know. I don’t know what’s out there.”


Then, as the interview drew to a close, Armstrong said: “The ultimate crime is the betrayal of these people that supported me and believed in me.”


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Reactions to Lance Armstrong's confession not favorable









Lance Armstrong called himself a lot of names -- liar, bully, jerk and even humanitarian -- in the first part of his taped interview with Oprah Winfrey on Thursday night.


Nevertheless, early reactions suggest that his performance was found lacking, a response the disgraced former cycling champion isn't used to hearing.


"It kind of reminded me of Tiger Woods coming clean," said Scott Allison, a psychology professor at the University of Richmond who has studied fallen heroes in American society. "For people like Tiger Woods and Lance Armstrong, it's so foreign to admit wrongdoing that they are out of their element. ... It can come across as robotic."





PHOTOS: Lance Armstrong through the years


"He's a liar, and it never stops," said Kathy LeMond, whose husband, Greg, won three Tour de France titles and later questioned Armstrong's success. "I don't think he's sorry."


Another wife of a former Armstrong teammate, Betsy Andreu, was more harsh. She and husband Frankie had said they were in a hospital room in 1996 when Armstrong told cancer doctors that he had used performance-enhancing drugs.


She later testified about the incident and began cooperating with a reporter working on a book about doping allegations against Armstrong. He responded by berating her and others who raised questions about his use of the drugs.


More recently, he said, he'd reached out to her to apologize.


"This was a guy who used to be my friend, who decimated me," Andreu told CNN's Anderson Cooper. "He could have come clean. He owed it to me. He owes it to the sport that he destroyed."


PHOTOS: Sports scandals, present and past


The president of the World Anti-Doping Agency, which has said Armstrong can only be considered for a return to sanctioned competition if he provides details and names people involved in doping, didn't buy Armstrong's assertion that at the time he didn't consider himself to be cheating.

"He was wrong, he cheated and there was no excuse for what he did," John Fahey told the Associated Press. "If he was looking for redemption, he didn't succeed in getting that. My feeling after watching the interview is that he indicated that he probably would not have gotten caught if he hadn't returned to the sport.


"He didn't name names, he didn't say who supplied him, what officials were involved," Fahey added.


From a marketing standpoint, the first half of the Winfrey interview appeared to do little to begin the public healing process.


"After reflecting on part one, I feel Lance neither did well in the interview nor achieved the goals he was likely seeking from the Oprah appearance," marketing expert Ken Ungar, president of U/S Sports Advisors, said in an interview with the Austin American-Statesman newspaper. "From a technical perspective of a marketing professional providing advice to athlete clients on PR and crisis management, I'd note the following: He seemed to lack real empathy; he lacked contrition and didn't address his plans for the future; and he parsed his words too finely, as if he was trying hard to 'win' the interview.


Travis Tygart, chief executive of the U.S. Anti-Doping Agency, was only slightly more impressed.


"His admission that he doped throughout his career is a small step in the right direction," Tygart said in a statement. "But if he is sincere in his desire to correct his past mistakes, he will testify under oath about the full extent of his doping activities."


The Livestrong Foundation, long affiliated with Armstrong, offered a statement with mixed sentiments: "We at the Livestrong Foundation are disappointed by the news that Lance Armstrong misled people during and after his cycling career, including us.


”Even in the wake of our disappointment, we also express our gratitude to Lance as a survivor for the drive, devotion and spirit he brought to serving cancer patients and the entire cancer community. Lance is no longer on the foundation's board, but he is our founder, and we will always be grateful to him for creating and helping to build a foundation that has served millions struggling with cancer."


Armstrong still has the second part of the interview, which is to be shown at 9 p.m. EST/PST Friday on the Oprah Winfrey Network, to make his case. It is to be streamed live at 6 p.m. PST on Oprah.com.


In it, Winfrey is expected to turn to the topics of his family, his sponsors, Livestrong and a return to competition.


ALSO:


Armstrong tells Winfrey that cancer battle made him a bully


Bill Dwyre: Lance Armstrong picks wrong way to come clean


Photos: Lance, Oprah and recent TV apologies and confessions






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Become the Ashton Kutcher of Subscription Swag, Before He Does



If you’ve always wanted to create your own monthly subscription box, social commerce startup The Fancy will now do the hard work for you. And here’s the beauty part: They pay you a chunk of every sale.


Starting now, anyone – yes, you – can sign up to make their own Fancy subscription box. You can sign up by e-mailing myfancybox@thefancy.com and once they set you up, you get to pick from a list of popular products on The Fancy, or add anything else you like from the internet, so long as isn’t deemed inappropriate by the startup’s staff (think offensive t-shirts, weapons, or drugs). The Fancy says it is looking for all kinds of people to make boxes, says a company spokesperson. That might seem like a risky business decision, but the company won’t procure any of the products for a box until one sells.


The Fancy will take care of the rest, including packing and shipping the box, and handling the transaction. You’re expected to share your box on Facebook, Twitter, and any other social networks you use to get the word out (and bring more traffic to The Fancy). You keep half the profits from your box sales.



Fancy gained attention last year as not only a Pinterest rival, where you could save images from around the internet, but also as store that actually sold most of the products that others had shared to the site. Instead of finding a cool product on Pinterest and then hunting around to buy it online, you can easily buy that leather bicycle wine rack you fell in love with right from The Fancy. That move to turn pretty pictures into revenue helped The Fancy raise a $26 million round of funding, and spark rumors that Apple was interested in acquiring the company.


In the fall of 2012, the company jumped on the subscription services bandwagon by offering monthly boxes of goodies from the site, picked by the staff. Now its opening that service up to anyone to make their own box.


The first user-created Fancy box hails from actor and investor Ashton Kutcher, who promises to fill his boxes with “the dopest stuff on The Fancy.” Called the A+ box, the box contains $90 worth of stuff and sells for $45. From pictures of the first few A+ boxes, we see mustache bandaids, a bearded beanie, and a (probably faux) Chanel iPhone case.


Since anyone can create a new The Fancy subscription box, we’re secretly hoping a few other Silicon Valley celebrities will sign up as well. There could be the “Best Dressed Tech Billionaire” box, filled with skinny ties and Scott Morrison denim, created by Jack Dorsey, who happens to be an investor in The Fancy; the “Chic Working Mom” box with a mix of stylish kids’ toys and striped tops from Marissa Mayer; and the “Young Fast-Paced CEO” box by Box CEO Aaron Levie, with several pounds of coffee, the latest business read, and ear plugs.


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Armstrong admits doping: ‘I’m a flawed character’






CHICAGO (AP) — He did it. He finally admitted it. Lance Armstrong doped.


He was light on the details and didn’t name names. He mused that he might not have been caught if not for his comeback in 2009. And he was certain his “fate was sealed” when longtime friend, training partner and trusted lieutenant George Hincapie, who was along for the ride on all seven of Armstrong’s Tour de France wins from 1999-2005, was forced to give him up to anti-doping authorities.






But right from the start and more than two dozen times during the first of a two-part interview Thursday night with Oprah Winfrey on her OWN network, the disgraced former cycling champion acknowledged what he had lied about repeatedly for years, and what had been one of the worst-kept secrets for the better part of a week: He was the ringleader of an elaborate doping scheme on a U.S. Postal Service team that swept him to the top of the podium at the Tour de France time after time.


“I’m a flawed character,” he said.


Did it feel wrong?


“No,” Armstrong replied. “Scary.”


“Did you feel bad about it?” Winfrey pressed him.


“No,” he said. “Even scarier.”


“Did you feel in any way that you were cheating?”


“No,” Armstrong paused. “Scariest.”


“I went and looked up the definition of cheat,” he added a moment later. “And the definition is to gain an advantage on a rival or foe. I didn’t view it that way. I viewed it as a level playing field.”


Wearing a blue blazer and open-neck shirt, Armstrong was direct and matter-of-fact, neither pained nor defensive. He looked straight ahead. There were no tears and very few laughs.


He dodged few questions and refused to implicate anyone else, even as he said it was humanly impossible to win seven straight Tours without doping.


“I’m not comfortable talking about other people,” Armstrong said. “I don’t want to accuse anybody.”


Whether his televised confession will help or hurt Armstrong’s bruised reputation and his already-tenuous defense in at least two pending lawsuits, and possibly a third, remains to be seen. Either way, a story that seemed too good to be true — cancer survivor returns to win one of sport’s most grueling events seven times in a row — was revealed to be just that.


“This story was so perfect for so long. It’s this myth, this perfect story, and it wasn’t true,” he said.


Winfrey got right to the point when the interview began, asking for yes-or-no answers to five questions.


Did Armstrong take banned substances? “Yes.”


Did that include the blood-booster EPO? “Yes.”


Did he do blood doping and use transfusions? “Yes.”


Did he use testosterone, cortisone and human growth hormone? “Yes.”


Did he take banned substances or blood dope in all his Tour wins? “Yes.”


In his climb to the top, Armstrong cast aside teammates who questioned his tactics, yet swore he raced clean and tried to silence anyone who said otherwise. Ruthless and rich enough to settle any score, no place seemed beyond his reach — courtrooms, the court of public opinion, even along the roads of his sport’s most prestigious race.


That relentless pursuit was one of the things that Armstrong said he regretted most.


“I deserve this,” he said twice.


“It’s a major flaw, and it’s a guy who expected to get whatever he wanted and to control every outcome. And it’s inexcusable. And when I say there are people who will hear this and never forgive me, I understand that. I do. …


“That defiance, that attitude, that arrogance, you cannot deny it.”


Armstrong said he started doping in mid-1990s but didn’t when he finished third in his comeback attempt.


Anti-doping officials have said nothing short of a confession under oath — “not talking to a talk-show host,” is how World Anti-Doping Agency director general David Howman put it — could prompt a reconsideration of Armstrong’s lifetime ban from sanctioned events.


He’s also had discussions with officials at the U.S. Anti-Doping Agency, whose 1,000-page report in October included testimony from nearly a dozen former teammates and led to stripping Armstrong of his Tour titles. Shortly after, he lost nearly all his endorsements, was forced to walk away from the Livestrong cancer charity he founded in 1997, and just this week was stripped of his bronze medal from the 2000 Olympics.


Armstrong could provide information that might get his ban reduced to eight years. By then, he would be 49. He returned to triathlons, where he began his professional career as a teenager, after retiring from cycling in 2011, and has told people he’s desperate to get back.


Initial reaction from anti-doping officials ranged from hostile to cool.


WADA president John Fahey derided Armstrong’s defense that he doped to create “a level playing field” as “a convenient way of justifying what he did — a fraud.”


“He was wrong, he cheated and there was no excuse for what he did,” Fahey said by telephone in Australia.


If Armstrong “was looking for redemption,” Fahey added, “he didn’t succeed in getting that.”


USADA chief Travis Tygart, who pursued the case against Armstrong when others had stopped, said the cyclist’s confession was just a start.


“Tonight, Lance Armstrong finally acknowledged that his cycling career was built on a powerful combination of doping and deceit,” Tygart said. “His admission that he doped throughout his career is a small step in the right direction. But if he is sincere in his desire to correct his past mistakes, he will testify under oath about the full extent of his doping activities.”


Livestrong issued a statement that said the charity was “disappointed by the news that Lance Armstrong misled people during and after his cycling career, including us.”


“Earlier this week, Lance apologized to our staff and we accepted his apology in order to move on and chart a strong, independent course,” it said.


The interview revealed very few details about Armstrong’s performance-enhancing regimen that would surprise anti-doping officials.


What he called “my cocktail” contained the steroid testosterone and the blood-booster erythropoetein, or EPO, “but not a lot,” Armstrong said. That was on top of blood-doping, which involved removing his own blood and weeks later re-injecting it into his system.


All of it was designed to build strength and endurance, but it became so routine that Armstrong described it as “like saying we have to have air in our tires or water in our bottles.”


“That was, in my view, part of the job,” he said.


Armstrong was evasive, or begged off entirely, when Winfrey tried to connect his use to others who aided or abetted the performance-enhancing scheme on the USPS team


When she asked him about Italian doctor Michele Ferrari, who was implicated in doping-related scrapes and has also been banned from cycling for life, Armstrong replied, “It’s hard to talk about some of these things and not mention names. There are people in this story, they’re good people and we’ve all made mistakes … they’re not monsters, not toxic and not evil, and I viewed Michele Ferrari as a good man and smart man and still do.”


But that’s nearly all Armstrong would say about the physician that some reports have suggested educated the cyclist about doping and looked after other aspects of his training program.


He was almost as reluctant to discuss claims by former teammates Tyler Hamilton and Floyd Landis that Armstrong told them, separately, that he tested positive during the 2001 Tour de Suisse and conspired with officials of the International Cycling Union officials to cover it up — in exchange for a donation.


“That story wasn’t true. There was no positive test, no paying off of the labs. There was no secret meeting with the lab director,” he said.


Winfrey pressed him again, asking if the money he donated wasn’t part of a tit-for-tat agreement, “Why make it?”


“Because they asked me to,” Armstrong began.


“This is impossible for me to answer and have anybody believe it,” he said. “It was not in exchange for any cover-up. … I have every incentive here to tell you yes.”


Finally, he summed up the entire episode this way: “I was retired. … They needed money.”


Ultimately, though, it was Landis who did the most damage to Armstrong’s story. Landis was stripped of the 2006 Tour title after testing positive and wound up on the sport’s fringes looking for work. Armstrong said his former teammate threatened to release potentially destructive videos if he wasn’t given a spot on the team. That was in 2009, when Armstrong returned to the Tour after four years off.


Winfrey asked whether Landis’ decision to talk was “the tipping point.”


“I’d agree with that. I might back it up a little and talk about the comeback. I think the comeback didn’t sit well with Floyd,” Armstrong recalled.


“Do you regret now coming back?”


“I do. We wouldn’t be sitting here if I didn’t come back,” he said.


The closest Armstrong came to contrition was when Winfrey asked him about his apologies in recent days, notably to former teammate Frankie Andreu, who struggled to find work in cycling after Armstrong dropped him from the USPS team, as well as his wife, Betsy. Armstrong said she was jealous of his success, and invented stories about his doping as part of a long-running vendetta.


“Have you made peace?” Winfrey asked.


“No,” Armstrong replied, “because they’ve been hurt too badly, and a 40-minute (phone) conversation isn’t enough.”


He also called London Sunday Times reporter David Walsh as well as Emma O’Reilly, who worked as a masseuse for the USPS team and later provided considerable material for a critical book Walsh wrote about Armstrong and his role in cycling’s doping culture.


Armstrong subsequently sued for libel in Britain and won a $ 500,000 judgment against the newspaper, which is now suing to get the money back. Armstrong was, if anything, even more vicious in the way he went after O’Reilly. He intimated she was let go from the Postal team because she seemed more interested in personal relationships than professional ones.


“What do you want to say about Emma O’Reilly?” Winfrey asked.


“She, she’s one of these people that I have to apologize to. She’s one of these people that got run over, got bullied.”


“You sued her?”


“To be honest, Oprah, we sued so many people I don’t even,” Armstrong said, then paused, “I’m sure we did.”


Near the end of the first interview installment, Winfrey asked about a federal investigation of Armstrong that was dropped by the Justice Department without charges.


“When they dropped the case, did you think: ‘Now, finally over, done, victory’?”


Armstrong looked up. He exhaled.


“It’s hard to define victory,” he said. “But I thought I was out of the woods.”


___


AP Sports Writers Jim Vertuno in Austin, Texas, Eddie Pells in Denver and Dennis Passa in Melbourne contributed to this report.


Entertainment News Headlines – Yahoo! News





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The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring


Andrea Mohin/The New York Times


John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.







Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.





The Neediest CasesFor the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.


Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.








2012-13 Campaign


Previously recorded:

$6,865,501



Recorded Wed.:

16,711



*Total:

$6,882,212



Last year to date:

$6,118,740




*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.





“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”


Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.


Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.


The operation was a success, but then came the bills.


“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.


The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.


The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.


“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”


When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.


Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.


Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.


On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.


Neither one knows what the next step will be, however, and the stress has been eating at them.


“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”


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DealBook: Michael Dell’s Empire in a Buyout Spotlight

The computer empire of Michael S. Dell spreads across a campus of low-slung buildings in Round Rock, Tex.

But his financial empire — estimated at $16 billion — occupies the 21st floor of a dark glass skyscraper on Fifth Avenue in Manhattan.

It is there that MSD Capital, started by Mr. Dell 15 years ago to manage his fortune, has quietly built a reputation as one of the smartest investors on Wall Street. By amassing a prodigious portfolio of stocks, companies, real estate and timberland, Mr. Dell has reduced his exposure to the volatile technology sector and branched out into businesses as diverse as dentistry and landscaping.

Now, Mr. Dell is on the verge of making one of the biggest investments of his life. The 47-year-old billionaire and his private equity backers are locked in talks to acquire Dell, the company he started with $1,000 as a teenager three decades ago, in a leveraged buyout worth more than $20 billion. MSD could play a role in the Dell takeover, according to people briefed on the deal.

The private equity firm Silver Lake has been in negotiations to join with Mr. Dell on a transaction, along with other potential partners like wealthy Asian investors or foreign funds. Mr. Dell would be expected to roll his nearly 16 percent ownership of the company into the buyout, a stake valued at about $3.5 billion. He could also contribute additional personal money as part of the buyout.

That money is managed by MSD, among the more prominent so-called family offices that are set up to handle the personal investments of the wealthy. Others with large family offices include Bill Gates, whose Microsoft wealth financed the firm Cascade Investment, and New York’s mayor, Michael R. Bloomberg, who set up his firm, Willett Advisors, in 2010 to manage his personal and philanthropic assets.

“Some of these family offices are among the world’s most sophisticated investors and have the capital and talent to compete with the largest private equity firms and hedge funds,” said John P. Rompon, managing partner of McNally Capital, which helps structure private equity deals for family offices.

A spokesman for MSD declined to comment for this article. The buyout talks could still fall apart.

In 1998, Mr. Dell, then just 33 years old — and his company’s stock worth three times what it is today — decided to diversify his wealth and set up MSD. He staked the firm with $400 million of his own money, effectively starting his own personal money-management business.

To head the operation, Mr. Dell hired Glenn R. Fuhrman, a managing director at Goldman Sachs, and John C. Phelan, a principal at ESL Investments, the hedge fund run by Edward S. Lampert. He knew both men from his previous dealings with Wall Street. Mr. Fuhrman led a group at Goldman that marketed specialized investments like private equity and real estate to wealthy families like the Dells. And Mr. Dell was an early investor in Mr. Lampert’s fund.

Mr. Fuhrman and Mr. Phelan still run MSD and preside over a staff of more than 100 overseeing Mr. Dell’s billions and the assets in his family foundation. MSD investments include a stock portfolio, with positions in the apparel company PVH, owner of the Calvin Klein and Tommy Hilfiger brands, and DineEquity, the parent of IHOP and Applebee’s.

Among its real estate holdings are the Four Seasons Resort Maui in Hawaii and a stake in the New York-based developer Related Companies.

MSD also has investments in several private businesses, including ValleyCrest, which bills itself as the country’s largest landscape design company, and DentalOne Partners, a collection of dental practices.

Perhaps MSD’s most prominent deal came in 2008, in the middle of the financial crisis, when it joined a consortium that acquired the assets of the collapsed mortgage lender IndyMac Bank from the federal government for about $13.9 billion and renamed it OneWest Bank.

The OneWest purchase has been wildly successful. Steven Mnuchin, a former Goldman executive who led the OneWest deal, has said that the bank is expected to consider an initial public offering this year. An I.P.O. would generate big profits for Mr. Dell and his co-investors, according to people briefed on the deal.

Another arm of MSD makes select investments in outside hedge funds. Mr. Dell invested in the first fund raised by Silver Lake, the technology-focused private equity firm that might now become his partner in taking Dell private.
MSD’s principals have already made tidy fortunes. In 2009, Mr. Fuhrman, 47, paid $26 million for the Park Avenue apartment of the former Lehman Brothers chief executive Richard S. Fuld. Mr. Phelan, 48, and his wife, Amy, a former Dallas Cowboys cheerleader, also live in a Park Avenue co-op and built a home in Aspen, Colo.

Both are influential players on the contemporary art scene, with ARTNews magazine last year naming each of them among the world’s top 200 collectors. MSD, too, has dabbled in the visual arts. In 2010, MSD bought an archive of vintage photos from Magnum, including portraits of Marilyn Monroe and Mahatma Gandhi, and has put the collection on display at the University of Texas, Mr. Dell’s alma mater.

Just as the investment firms Rockefeller & Company (the Rockefellers, diversifying their oil fortune) and Bessemer Trust (the Phippses, using the name of the steelmaking process that formed the basis of their wealth) started out as investment vehicles for a single family, MSD has recently shown signs of morphing into a traditional money management business with clients beside Mr. Dell.

Last year, for the fourth time, an MSD affiliate raised money from outside investors when it collected about $1 billion for a stock-focused hedge fund, MSD Torchlight Partners. A 2010 fund investing in distressed European assets also manages about $1 billion. The Dell family is the anchor investor in each of the funds, according to people briefed on the investments.

MSD has largely remained below the radar, though its name emerged a decade ago in the criminal trial of the technology banker Frank Quattrone on obstruction of justice charges. Prosecutors introduced an e-mail that Mr. Fuhrman sent to Mr. Quattrone during the peak of the dot-com boom in which he pleaded for a large allotment of a popular Internet initial public offering.

“We know this is a tough one, but we wanted to ask for a little help with our Corvis allocation,” Mr. Fuhrman wrote. “We are looking forward to making you our ‘go to’ banker.”

The e-mail, which was not illegal, was meant to show the quid pro quo deals that were believed to have been struck between Mr. Quattrone and corporate chieftains like Mr. Dell — the bankers would give executives hot I.P.O.’s and the executives, in exchange, would hold out the possibility of giving business to the bankers. (Mr. Quattrone’s conviction was reversed on appeal.)

The MSD team has also shown itself to be loyal to its patron in other ways.

On the MSD Web site, in the frequently asked questions section, the firm asks and answers queries like “how many employees do you have” and “what kind of investments do you make.”

In the last question on the list, MSD asks itself, “Do you use Dell computer equipment?” The answer: “Exclusively!”


This post has been revised to reflect the following correction:

Correction: January 18, 2013

An earlier version of this article misstated when an MSD affiliate raised money from outside investors for a hedge fund. It was last year, not earlier this year. The article also misstated which hedge fund and its focus. It was MSD Torchlight Partners, a stock-focused hedge fund, not MSD Energy Partners, an energy-focused hedge fund.

A version of this article appeared in print on 01/18/2013, on page B1 of the NewYork edition with the headline: Michael Dell’s Empire In a Buyout Spotlight.
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Group of hostages reportedly escapes Islamist captors in Algeria









CAIRO -- The Algerian news agency reported Thursday that as many as 45 hostages, including Americans, had escaped from a natural gas complex a day after Islamic militants seized the installation in retaliation for French airstrikes against Islamist rebels in neighboring Mali.   

The Algerian report said 30 Algerians and 15 foreigners had fled the compound Thursday. The report could not be independently confirmed. The Associated Press, quoting an unnamed Algerian official, said 20 foreigners, including Americans, had escaped.


[Updated, 5:51 a.m. Jan. 17: Conflicting reports suggested that hostages and kidnappers may have been killed by Algerian soldiers when they attempted to leave the complex. Media reports said a Mauritanian news organization quoted a militant spokesman as saying gunfire from helicopters killed 35 foreigners and 15 kidnappers, including the group's leader.





If either scenario if true -- no details are yet known -– it would mark a stunning twist in a drama that has raised fears of a long siege and highlighted the dangerous Islamist extremism stretching from Mali across the mountains and lawless deserts of North Africa.]


The militants had reportedly threatened to blow up the gas facility at In Amenas near the Libyan border if government commandos attempted to free the hostages. France 24 television reported that a male captive said in a telephone interview that attackers forced some hostages to strap on belts laden with explosives. It could not be confirmed if the man was a hostage.


Hundreds of Algerian soldiers ringed the Sahara Desert compound and helicopters skimmed above. Algerian officials had earlier said they would not negotiate with the militants, who reportedly had asked for safe passage into Libya.


Captives being held are believed to be from the U.S., France, Japan, Norway and other countries. Reports on Wednesday suggested that as many as 41 foreigners were being held by an Al Qaeda-linked group calling itself the Signed-in-Blood Battalion.


The ordeal has shown the volatility of a region bristling with gunrunners, smugglers and a visceral strain of Islamic ideology. Militant groups, including Algeria's Al Qaeda in the Islamic Maghreb (AQIM), have been deadly at home but now present a widening danger in North Africa, including in Tunisia and Libya, where Islamic extremists have gained a foothold since the uprisings of the Arab Spring.


The natural gas complex at In Amenas, which supplies Europe and Turkey, is a joint venture operated by BP; Statoil, a Norwegian firm; and Sonatrach, the Algerian national oil company


ALSO:


Germany to bring home its gold by 2020


Islamic militants hold foreigners hostage at Algeria gas field


Pakistan government calls demands by protesters "not possible"


jeffrey.fleishman@latimes.com


 


 





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Why Lance Armstrong's Confession Should Make <em>You</em> Worry



Lance-o-Rama has broken out … again. But this time, we’re getting a confession. On air. On Oprah. Tonight.


While many people speculate about this being his first step towards redemption, a comeback, a new chapter in the doping arms race, the one thing nobody seems to be discussing right now is what L’Affair de Lance means for you.


After all, if you’re like most Americans, you watched the Tour de France for about five minutes, and cheered when Armstrong won. You know a little about his cancer charity, and that he dated a pop star. And that’s about the extent of emotional energy you’ve expended. Since I’ve written a lot about doping in sports – and delved into how anti-doping agencies like the United States Anti-Doping Agency (USADA) conduct business – I’ve expended a lot more energy on your behalf.


So here’s the thing you need to know: The USADA takedown of Armstrong matters, and it could effect everybody. Because it will enhance the power and reach of a private, non-profit business that has managed to harness the power of the federal government in what’s quickly becoming a brand new war on drugs … with all the same pitfalls brought to you by the first war on drugs.


The USADA is a private outfit. Yet it gets taxpayer money. And it has existed in this weird legal nether world since its creation in 1999 at the instigation of the International Olympic Committee, United States Olympic Committee, and President Clinton’s White House Office of National Drug Control Policy. The USADA is designated by the U.S. Congress as the company that handles anti-doping for this country, because the World Anti-Doping Treaty – a UNESCO-promulgated document that the U.S. signed with almost no discussion – obligates the U.S. to do a number of things, which includes conforming our laws to the international anti-doping code.


Nobody cared much about that treaty. And few care much now, really, because it was understood that anti-doping was about testing athletes, and mostly elite ones.


But the Armstrong case isn’t based on testing at all.




The USADA has wanted Armstrong for years. To it, and to the World Anti-Doping Agency (WADA), Armstrong was Moby Dick: If they could kill the whale – and do it without a raft of positive tests to show Armstrong doped – a new model of anti-doping would be enshrined into practice. And that’s just what happened.


Piggy-backing on a federal investigation, the USADA was able to pressure Armstrong teammates to confess to doping and implicate Armstrong … with no positive test results. It was an FBI-style investigation spanning multiple countries, but there was no “smoking syringe” found stuck in Armstrong’s arm.


Yet this is now the main model for anti-doping. Athletes will still have to pee in cups and have blood drawn from their arms, but anti-doping agencies are using the Armstrong case to justify a tremendous expansion of their investigatory powers.


In Australia and the United Kingdom, anti-doping agencies are part of the government — and they’re beginning to look like police bodies. The U.K. agency, headed by the former chief constable of the North Yorkshire police, has promised to boost investigations. It, along with WADA, has called on governments to form alliances with the international police body Interpol.


There was no ‘smoking syringe’ found stuck in Armstrong’s arm. Yet this is now the main model for anti-doping.


The Australian Anti-Doping Agency, meanwhile, went so far as to demand private medical records from hundreds of athletes so it could fish for anything suspicious. In an eerie echo of the tactics used by the American House Un-American Activities Committee during the Red Scare days, the Australian agency issued a call this past November “to anyone involved with, or has information about, doping activity in the sport of cycling to come forward and talk before someone else accuses them of doping.” If you talk first, you can get credit for snitching. If you wait, well, who knows what somebody else might say about you?


All of these state-sanctioned players – the Australians, the British, the Americans, and WADA — are hyping what they call “increased intelligence.” This includes anything from spying on athletes, to fishing through their garbage — and anything they find can be shared with “real” crime enforcers like the FBI (and vice versa). All of them have used the Armstrong case as illustration number one of why such actions are justified.


USADA chief Travis Tygart — who’s been talking like anti-doping’s Eliot Ness since the Armstrong story broke — has told me he’d like his own team of investigators. Let’s keep in mind that we’re talking about sports here: not terrorism, or even industrial espionage.


So while you might wish athletes didn’t dope — I do, too — and want action taken to combat doping, you might also want to be careful about what you’re wishing for. Especially since sports is taking on a broader definition that includes amateurs, low-level marathon runners, and even your kid’s high school football team.


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“Gangnam Style” takes top song prize at “K-pop Grammys”






(Reuters) – South Korean rapper Psy‘s quirky viral hit “Gangnam Style” took the prize for top song on Wednesday at the 27th annual Golden Disk Awards, a Korean pop event dubbed the “Korean Grammys.”


The two-day celebration of all things K-pop, including performances by superstars such as the boy band Super Junior, was held in the Malaysian capital of Kuala Lumpur before hordes of screaming fans, a testimony to the soaring popularity of Korean pop music around the world.






Nowhere has that been more apparent than with “Gangnam Style,” an infectious hit that made history last month when it became the first ever video on YouTube to reach 1 billion views, the latest record on the song’s surge into mainstream pop.


The tune won the Song of the Year award, the final prize.


The awards were only the latest accolades for Psy, 35, in what has been a whirlwind year for the chubby rapper, the first K-pop artist to achieve mainstream success in the United States as a result of “Gangnam Style.”


Decked out in a bow tie and suit jackets varying from pink to baby blue, and only a towel for one sequence set in a sauna, Psy raps in Korean and busts funky moves based on horse-riding in venues ranging from playgrounds to subways.


The song, released in July, was meant as a commentary on the rampant materialism of today’s South Korea – particularly in relation to the Gangnam section of the city, which Psy has termed Seoul’s Beverly Hills.


“My goal in this music video was to look uncool until the end. I achieved it,” Psy told Reuters in August.


The popularity of the song, which has prompted many copycat and parody videos, has added fuel to growing international interest in Asian pop music, especially the K-pop industry, which now aims to follow Psy into mainstream Western pop music.


Thanks to their youth, glowing image and the style of their songs and dances, K-pop fans have grown rapidly in Southeast Asia, formerly dominated by stars from the West as well as Hong Kong and Taiwan.


A Malaysian fan who queued for three days to get into the first night of the awards ceremony said she loved how the K-pop stars strived for perfection.


“K-pop stars have been working very hard, even before they make their first debut. They spend a lot of time practicing to become a perfect artist,” said the 20-something Tay Ching Ee. “This is what other artists should learn from them.”


The Golden Disk Awards began in 1986, with winners chosen based on album sales and digital downloads. The ceremony first ventured overseas in 2012, when it was held in Japan.


On Tuesday, the first night, Super Junior again won the best album award with their album “Sexy, Free & Single.” Boy band Shinee scooped the Most Popular Star prize.


(Additional reporting by Angie Teo and Belinda Goldsmith; writing by Elaine Lies; editing by Patricia Reaney)


Music News Headlines – Yahoo! News





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The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

  1. Their Social Security number.
  2. The 12-digit federal benefit number found on their checks.
  3. The amount of the most recent check.
  4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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