Respondent brief in Ashcroft Raich

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					 Bank of America plans to cut 30,000 jobs
     By PALLAVI GOGOI           shortly after Brian Moyni-          with its 2008 purchase of          left the bank. The bank also        this year.
      Associated Press          han, the bank’s CEO, dis-           Countrywide Financial Corp.        elevated commercial banking            The Charlotte, N.C., com-         THE HAYS DAILY NEWS
    NEW YORK — Bank             closed the cost-saving goals        The bank faces lawsuits from       chief David Darnell and             pany said it expects many           TUESDAY, SEPT. 13, 2011
of America will cut about       in an address to investors in       investors and regulators over      investment banking head             of the cuts to come through
                                                                                                                                                                               WATCH FOR BREAKING NEWS AT
30,000 jobs during the next     New York.                           the sales of mortgage-backed       Tom Montag to co-chief              attrition and eliminating
few years in a bid to save $5       “We’re a much simpler           securities that lost value after   operating officers, reporting        unfilled positions. The bank             HDNEWS.NET
billion per year. The cost-cut- company than we were 24             the housing boom collapsed.        to Moynihan.                        said the number of job cuts
ting drive is part of a broader months ago,” Moynihan said.            The job cuts follow a              The latest job cuts will         isn’t fixed, but it expects they
effort to reshape and shrink        Bank of America stock           revamp of the bank’s top           lead to a 10 percent reduc-         will total 30,000. It hopes           Ex-Detroit mayor aide
the nation’s largest bank as    was up 2 cents at $7 at mid-        management team last week.         tion in the bank’s work force       to save $5 billion in annual       pleads guilty to corruption
it copes with fallout from the day. The stock has lost half         Two senior executives, wealth      of 288,000. The cuts come           costs through 2014 under              DETROIT (AP) — A for-
housing bust.                   its value this year, largely over   management head Sallie             on top of 6,000 positions the       a cost-cutting plan dubbed         mer aide to ex-Detroit Mayor
    The bank announced          problems related to poorly-         Krawcheck and head of              bank already has eliminated         internally as “Project New         Kwame Kilpatrick has plead-
the job cuts in a statement     written mortgages it acquired       consumer banking Joe Price,        through the third quarter of        BAC.”                              ed guilty to criminal charges
                                                                                                                                                                              and agreed to cooperate as
                                                                                                                                                                              federal prosecutors take his

    Study: Many                                                                                                                                                               old boss to trial next year.
                                                                                                                                                                                 Prosecutors said Derrick
                                                                                                                                                                              Miller admitted Monday he
    wrong about                                                                                                                                                               accepted $115,000 from a
                                                                                                                                                                              real estate broker in connec-
   pill perception                                                                                                                                                            tion with the lease or sale
                                                                                                                                                                              of city properties. Prosecu-
                                                                                                                                                                              tors said he also accepted
   By CARLA K. JOHNSON                                                                                                                                                        $10,000 from a contractor
      Associated Press                                                                                                                                                        and passed $10,000 from
   CHICAGO — Many                                                                                                                                                             the same contractor to Kil-
consumers mistakenly believe                                                                                                                                                  patrick when Kilpatrick was
new prescription drugs are                                                                                                                                                    running for mayor in 2001.
always safer than those with                                                                                                                                                     The government said
long track records, and that                                                                                                                                                  Miller acknowledged other
only extremely effective drugs                                                                                                                                                corrupt acts in his job as
without major side effects                                                                                                                                                    Detroit’s chief administrative
win government approval,                                                                                                                                                      officer and chief informa-
according to a new study.                                                                                                                                                     tion officer. The plea deal
   A national survey of nearly                                                                                                                                                capped any sentence at 10
3,000 adults found about                                                                                                                                                      years in prison.
                                                                                                                                                                                 Kilpatrick faces trial in
four in 10 wrongly believe
                                                                                                                                                                              a year on fraud and tax
the U.S. Food and Drug                                                                                                                                                        charges.
Administration approves only
“extremely effective” drugs.
   One in four mistakenly                                                                                                                                                      Maryland company fined
believes the FDA allows only                                                                                                                                                     for Medicare fraud
drugs that don’t have serious                                                                                                                                                    NEWARK, N.J. (AP) —
side effects.                                                                                                                                                                 Federal authorities Monday
   That means consum-                                                                                                                                                         announced a $150 mil-
ers “may not get the ben-                                                                                                                                                     lion settlement against a
efit from drugs they think                                                                                                                                                     Maryland-based health care
they’re getting, or they may                                                                                                     WILFREDO LEE • ASSOCIATED PRESS              company accused of de-
expose themselves to more        People gather to mark the anniversary of the 9/11 terror attacks and unveil a memorial Sunday in Pembroke Pines, Fla.                        frauding Medicaid and other
harm than they think,” said                                                                                                                                                   federal programs.

                                  Small towns struggle with 9/11 memorials
study co-author Dr. Steven                                                                                                                                                       Maxim Healthcare Sys-
Woloshin of the Dartmouth                                                                                                                                                     tems is a health care staffing
Institute for Health Policy                                                                                                                                                   agency based in Columbia,
and Clinical Practice and the                                                                                                                                                 Md. It has offices in more
VA Outcomes Group                                                                                                                                                             than 40 states. Under the
   In truth, the FDA approves          By MEGHAN BARR           hurricane-resistant glass.                                                 in the shape of an American        order issued Monday,
a new drug when its benefits             Associated Press           “Obviously we couldn’t do                                               flag to be displayed in North       Maxim will pay a criminal
outweigh any known risks.           The memorial started with that.”                                                                       Naples, Fla. Through private       penalty of $20 million and
FDA approval doesn’t mean                                                                                                                                                     civil penalties totaling about
                                 a steel beam salvaged from        Hundreds of small memo-                                                 donations, he has raised
the drug’s benefits are large                                                                                                                                                  $130 million to Medicaid
                                 the World Trade Center — a rials to Sept. 11, 2001, have                                                  about $600,000 — but he            programs and the Veterans
compared to drugs already        small piece of the terrorist   bloomed across the country                                                 still needs $800,000 more to
on the market. And risks for                                                                                                                                                  Affairs program.
                                 attacks the city of Pembroke in the 10 years since the at-                                                pay for the granite.                  Authorities had investi-
some drugs appear only after     Pines, Fla., was determined                                                                                   Sanford had been hoping
                                                                tacks.                                                                                                        gated the company for the
they’ve been used by millions                                                                                                              to unveil the memorial in
                                 to honor in its own way.          But in many towns, what                                                                                    past five years and charged
of people and long after FDA                                                                                                               time for the 10th anniversary,
approval.                           Nobody from this coastal    began as a simple tribute to                                                                                  it with conspiracy to commit
                                 town died on Sept. 11, 2001. the dead turned into an ex-                                                  but now he doesn’t know            health care fraud for submit-
   For instance, Merck & Co.
                                 But plans for its memorial     pensive headache as the cost                                               when it will be completed.         ting claims for services that
withdrew the FDA-approved                                                                                                                                                     were never provided and op-
arthritis pill Vioxx after its   grew ever more elaborate — of building such memorials                                                         “Times are very differ-
                                 at one point projected to cost ballooned and the economy                                                  ent now,” he said. “The            erating offices that weren’t
heart risks surfaced.                                                                                                                                                         properly licensed.
   “One of the reasons doc-      more than $1 million — as      deteriorated.                                                              unemployment is rampant.
                                                                                                       A section of steel from the         People are out of work. The           The U.S. attorney’s of-
tors tend to prescribe newer,    the years passed.                 Still short of funds, some
                                                                                                       World Trade Center is shown         economy is bad.”                   fice in New Jersey and the
expensive drugs is there’s a        “It was a glass-enclosed,   cities dramatically scaled                                                                                    state’s attorney general join
widespread perception that       air-conditioned house,” re-    down the scope of the proj-            on display Sunday in Wel-               There was a nationwide
                                                                                                                                                                              authorities in 40 other states
newer is better,” said Dr. Mi-   called the city’s mayor, Frank ects, paid the outstanding bill        lington, Fla.                       rush to build 9/11 memori-
                                                                                                                                                                              to reach the settlement.
chael Steinman of San Fran-      Ortis. “With a reflection pool with public money or aban-                                                  als in the first few years after
cisco VA Medical Center.         and water running down,        doned a memorial altogether.           Others remain unfinished             the attacks that has since
                                                                                                       with no completion date in          subsided, said Erika Doss, a         Vegan couple’s appeal
                                                                                                       sight.                              professor at the University         swatted down by court
                                                                                                           The numbers are minus-          of Notre Dame and author              ATLANTA (AP) — An
                                                                                                       cule compared with what             of the book “Memorial              Atlanta vegan couple whose
                                                                                                       it cost to build the major          Mania: Public Feeling in           malnourished 6-week-old son
                                                                                                       national memorials: $700            America.”                          starved to death after they fed
                                                                                                       million for the National                “Once the recession hit,       him a too-limited diet of soy
                                                                                                       September 11 Memorial &             the economic possibilities of      milk and apple juice will have
                                                                                                       Museum in New York City             doing so went away,” said          to serve their life sentences
                                                                                                       and at least $60 million for        Doss, who discovered about         for murder, Georgia’s top
                                                                                                       the Flight 93 memorial near         400 memorials to 9/11              court ruled Monday.
                                                                                                       Shanksville, Pa.                    while researching her book.           The Georgia Supreme
                                                                                                           But like these small towns,     “People still wanted to do         Court’s unanimous deci-
                                                                                                       even the Flight 93 memo-                                               sion rejected appeals by
                                                                                                                                           it, but it became more and
                                                                                                                                                                              Jade Sanders and Lamont
                                                                                                       rial still is struggling to raise   more difficult.”                    Thomas.
                                                                                                       enough money to build its               It’s impossible to say            The two first-time par-
                                                                                                       original design — organizers        how much money has been            ents in their 20s at the time
                                                                                                       need to raise about $10 mil-        spent on the proliferation of      lived in Atlanta’s Buckhead
                                                                                                       lion to finish the memorial’s        memorials of all kinds across      neighborhood. They rushed
                                                                                                       first phase and maintain it in       the U.S. — from makeshift          their infant, Crown Shakur,
                                                                                                       the future.                         crosses on the side of the         to the hospital in April 2004
                                                                                                           Jerry Sanford, a former         road to massive monuments          after he began to have
                                                                                                       New York City firefighter, has        — because most are funded          trouble breathing. Doctors
                                                                                                       been soliciting money since         through a combination of           who couldn’t resuscitate him
                                                                                                       2004 for a granite memorial         private and public money.          determined he died because
                                                                                                                                                                              of extreme malnourishment
                                                                                                                                                                              or starvation.
                                                                                                                                                                                 Police searching the

                                                                                                       Student loan defaults jump                                             couple’s apartment found
                                                                                                                                                                              a soy milk bottle, an apple
                                                                                                                                                                              juice bottle and a rancid-
                                                                                                                                                                              smelling baby bottle caked
                                                                                                              By JUSTIN POPE               more accurate measure — to         with debris.
                                                                                                              Associated Press             determine which institu-              At the 2007 trial, pros-
                                                                                                          The number of borrowers          tions lose eligibility to enroll   ecutors said the soy milk
                                                                                                       defaulting on federal student       students who have borrowed         cartons in their apartment
                                                                                                       loans has risen substantially,      from the government.               stated that it wasn’t to be
                                                                                                       highlighting concerns that              The latest figures show         used as a substitute for
                                                                                                       rising college costs, low           substantial variations by state,   baby formula. They also
                                                                                                       graduation rates and poor           ranging from default rates of      contended that the couple
                                                                                                       job prospects are getting           3.4 percent at institutions in     intentionally neglected their
                                                                                                       more and more students over         Montana and North Dakota           child and refused to take
                                                                                                       their heads in debt.                                                   him to the doctor even as
                                                                                                                                           to 16 percent among borrow-
                                                                                                                                                                              his body wasted away. He
                                                                                                          The national two-year            ers at colleges in Arizona.        was just 3.5 pounds when
                                                                                                       cohort default rate rose to             “These hard economic           he died, about as much as
                                                                                                       8.8 percent last year, from         times have made it even            a baby weighs at 7 months
                                                                                                       7 percent in fiscal 2008,            more difficult for student bor-     into a normal pregnancy.
                                                                                                       according to figures released        rowers to repay their loans,          A jury convicted them of
                                                                                                       Monday by the Department            and that’s why implement-          malice murder, felony mur-
                                                                                                       of Education.                       ing education reforms and          der, involuntary manslaugh-
                                                                                                          The latest figures show the       protecting the maximum Pell        ter and cruelty to children.
                                                                                                       percentage of the more than         grant is more important than          “No matter how many
                                                                                                       3.6 million borrowers whose         ever,” U.S. Secretary of Edu-      times they want to say,
                                                                                                       first payments came due in           cation Arne Duncan said.           ‘We’re vegans, we’re veg-
                                                                                                       the year starting October               The federal default rate       etarians,’ that’s not the issue
                                                                                                       2008 — at the height of the         remains substantially below        in this case,” prosecutor
                                                                                                       financial crisis — and who           its peak of more than 20           Chuck Boring said during
                                                                                                       defaulted before Sept. 30,          percent in the early 1990s,        the trial. “The child died
                                                                                                       2010.                               before a series of reforms         because he was not fed.
                                                                                                          More borrowers in that           in government lending. But         Period.”
                                                                                                       group likely have defaulted                                               Defense attorneys coun-
                                                                                                                                           after years of steady declines
                                                                                                                                                                              tered that the parents did
                                                                                                       since last fall.                    it now has risen four straight     the best they could while
                                                                                                          Next year, the department        years and is almost double         adhering to the lifestyle of
                                                                                                       will begin using three-year         its trough of 4.6 percent in       vegans, who typically use
                                                                                                       default rates — considered a        2005.                              no animal products.