Tuesday, September 13, 2016

Here are the Ten Most Powerful Women in Business This Year - Fortune

Posted: 08 Sep 2016 08:35 AM PDT
There are 22 female CEOs — down from 27 last year — on the 19th Most Powerful Women list that Time, Inc. publication Fortune released Thursday morning.
Mary Barra, the CEO and Chairman of GM, topped the ranking, with Pepsi Co. CEO and Chairman Indra Nooyi following in second place. Fortune releases the list of the most powerful business women every year.
There are nine newcomers to the list in total (read about them here). Ten women, including seven CEOs (such as Yahoo’s Marissa Mayer), dropped off the 2016 list for either stepping down from their posts or losing relative prominence.
The list of 51 women also includes Facebook COO Sheryl Sandberg, Mylan CEO Heather Bresch, and “bonus pick” Beyoncé. Check out the top ten below:
  1. Mary Barra, CEO and Chairman of GM 
  2. Indra Nooyi, CEO and Chairman of PepsiCo 
  3. Marillyn Hewson, CEO, Chairman and President of Lockheed Martin 
  4. Ginni Rometty, CEO, Chairman, and President of IBM 
  5. Abigail Johnson, CEO and President of Fidelity Investments 
  6. Sheryl Sandberg, COO of Facebook 
  7. Meg Whitman, CEO and President of Hewlett Packard Enterprise 
  8. Phebe Novakovic, CEO and Chairman of General Dynamics 
  9. Irene Rosenfeld, CEO and Chairman of Mondelez International 
  10. Safra Catz, Co-CEO of Oracle 
[Fortune]

How For-Profit Colleges Could Spark the Next Financial Crisis - TIME

Posted: 08 Sep 2016 07:06 AM PDT

With the closing of for-profit college chain ITT Technical Institutes, as well as the pay-to-play suspicions hanging over Donald Trump with allegations that he violated Florida bribery laws in order to try and protect Trump University against class action lawsuits, and even revelations that the Clintons have made millions of dollars in the scandal-plagued for-profit education sector, I’m thinking that education, and for-profit education in particular, is ground zero for the next financial crisis.
This isn’t a crisis like Lehman Brothers. Student lending is a far smaller part of the credit market than housing, after all. But it has many aspects of the subprime scandal, including an asset bubble, huge amounts of debt ($1.2 trillion, to be exact), vulnerable borrowers, fraud, conflict of interest, and money politics.
For-profits make up only 12% of enrollment in the higher education sector, but they take 25% of all federal aid and represent half of all student defaults. This is the student debt problem, right here. And like so many troubled areas of our economy, education, (and for-profit education in particular) has been financialized. Over the last two decades, for-profit colleges have become darlings of Wall Street, with companies like University of Phoenix owner Apollo going public and many others cutting deals with private equity firms. These schools often act more like rapacious businesses than educators, taking huge, double digit profit margins and spending more on marketing than instruction. (Apollo recently spent more on its marketing budget than Apple, one of the world’s largest and most profitable companies.)
They spend this money to bring in more students, who become stable, annuity-like investments, paying off a clear return year after year. No wonder the Street has favored these companies. Between 2000 and 2003, for-profit stocks were on a major run, outperforming every other sector of the market. Since then, of course, they’ve crashed and burned. But most still get 80% of their revenues from federal subsidies, thanks to major lobbying efforts to roll back regulation and lawsuits that rival those that the big banks waged post-2008. It’s a huge irony, especially given the neoliberal “market knows best” arguments so often used to support for-profit schools, that most of them wouldn’t even exist if not for federal funds.
Their destructive effects also go far beyond the for-profit sector itself. For-profits have risen as state subsidies for non-profit state colleges have fallen (thank you Grover Norquist and the Koch Brothers). The result is that the price of college as a percentage of household income for the lowest 25% of the socioeconomic spectrum has doubled over the last several years, while outcomes have fallen. Meanwhile, new research from the Roosevelt Institute shows that many big universities are involved in bad swaps deals à la Detroit, raising huge questions about how their balance sheets are being managed, and who, exactly, their leadership answers to — students or Wall Street.
This is really the next big financial scandal. My idea about how to fix all this — the next president should get rid of for-profits, and use the billions of dollars in subsidies they receive to pay off poor students who’ve gone into debt for useless degrees, and fund free, high-quality community college for everyone — would go a long way towards rebooting the system and starting to train up the 21st century, better-educated labor force this country so desperately needs.

Hillary Clinton's health is big issue in US election campaign - Independent

Hillary Clinton falling ill Sunday morning at a memorial service on the 15th anniversary of the Sept. 11 attacks will catapult questions about her health from the ranks of conservative conspiracy theory to perhaps the central debate in the presidential race over the coming days.
"Secretary Clinton attended the September 11th Commemoration Ceremony for just an hour and thirty minutes this morning to pay her respects and greet some of the families of the fallen," spokesman Nick Merrill said. "During the ceremony, she felt overheated, so departed to go to her daughter's apartment and is feeling much better."
What that statement leaves out is that a) it came 90 minutes after Clinton left the ceremony b) reporters -- or even a reporter -- were not allowed to follow her and c) the temperature in New York City at the time of Clinton's overheating was in the low 80s. (A heat wave over the eastern United States broke last night/this morning.)
later left her daughter's apartment, saying she was "feeling great" and waving at the crowd, per the Associated Press. Clinton was diagnosed Friday with pneumonia, according to her doctor, who ascribed her illness on Sunday to that ailment.
Hillary Clinton left a New York memorial service marking the 15th anniversary of the Sept. 11 attacks early after feeling "overheated," according to a campaign spokesman. She emerged from her daughter's New York apartment later and said she feels better. (The Washington Post; Photo: Yana Paskova, The Post)
Whether Clinton likes it or not, her "overheating" episode comes at a very bad time for her campaign. Thanks to the likes of Rudy Giuliani and a small but vocal element of the Republican base, talk of her health had been bubbling over the past week -- triggered by a coughing episode she experienced during a Labour Day rally.

That talk was largely confined to Republicans convinced that Clinton has long been hiding some sort of serious illness. I wrote dismissively of that conspiracy theory in this space last week, noting that Clinton had been given an entirely clean bill of health by her doctors after an episode in which she fainted, suffered a concussion and then was found to have a blood clot in late 2012 and early 2013.
Coughing, I wrote, is simply not evidence enough of any sort of major illness that Clinton is assumed to be hiding. Neither, of course, is feeling "overheated." But those two things happening within six days of each other to a candidate who is 68 years old makes talk of Clinton's health no longer just the stuff of conspiracy theorists.
Whereas Clinton and her campaign could laugh off questions about her health before today, the "overheating" episode makes it almost impossible for them to do so. Not only has it come at a time when there was growing chatter -- with very little evidence -- that her health was a problem but it also happened at a 9/11 memorial event -- an incredibly high-profile moment with lots and lots of cameras and reporters around.
Her campaign may well try to dismiss this story as nothing more than an isolated incident, meaning nothing. (Democrats were already pushing the story of George W. Bush fainting in 2002 after choking on a pretzel, via Twitter.)
But the issue is that Clinton kept reporters totally in the dark for 90 minutes after her abrupt departure from the 9/11 memorial service for a health-related matter. No reporter was allowed to follow her. (Clinton has resisted a protective pool for coverage because Donald Trump refuses to participate in one.) This is, yet again, the Clinton campaign asking everyone to just trust it. She got overheated! But she's fine now!
Clinton may well be totally fine -- and I certainly hope she is. But we are 58 days away from choosing the person who will lead the country for the next four years, and she is one of the two candidates with a real chance of winning. Taking the Clinton team's word for it on her health -- in light of the episode on Sunday morning -- is no  longer enough. Reasonable people can -- and will --  have real questions about her health.
I wrote this on Tuesday morning: "The simple fact is that there is zero evidence that anything is seriously wrong with Clinton. If suffering an occasional coughing fit is evidence of a major health problem, then 75 percent of the country must have that mystery illness. And I am one of them."
Well, that is no longer operative. Context matters. A coughing episode is almost always just a coughing episode. But when coupled with Clinton's "overheating" on Sunday morning -- with temperatures something short of sweltering -- Clinton and her team simply need to say something about what happened (and why the press was in the dark for so long.)
And as the New York Times's Adam Nagourney tweeted on Sunday morning, now might be a good time for Clinton to release a fuller record of her medical history.
Sunday morning changed the conversation in the race about Clinton's health. Or rather it will force Clinton to have a conversation about her health in the race.