FRIDAY, MAY 28, 2010
KLMNO
WASHINGTON BUSINESS
LOCAL DIGEST
DEFENSE
Army to review acquisition process
Amid major defense acquisi-
tion reform, the Army announced Wednesday it will conduct a com- prehensive review of its own ac- quisition organizations, policies, workforce and processes. The announcement follows last year’s passage of the Weapon Systems Reform Acquisition Act, which focused on more accurate- ly estimating weapons programs’ price tags. The legislation also mandated more program testing and competition earlier. The new study was commis- sioned by Army Secretary John McHugh, who took office in Sep- tember. Previously the ranking member on the House Armed Services Committee, McHugh helped oversee the passage of last year’s reform legislation. The four-month review will be
conducted by an independent panel headed by Gil Decker, a for- mer Army acquisition chief, and retired Gen. Lou Wagner, a for- mer military deputy to the Army acquisition chief. Army spokes- man Lt. Col. Jimmie Cummings said the two will select the panel’s members.
The review is meant to provide a near-term plan to improve Army acquisition effectiveness. It will examine the atypical prac- tices the service has used to buy equipment for the wars in Iraq and Afghanistan and will identify areas where the Army could be more efficient and save money. Cummings emphasized that the panel was formed by the serv- ice and not directed by the Penta- gon.
— Marjorie Censer, Capital Business
MANAGEMENT
Capital One exec takes key SEC post
The Securities and Exchange Commission named Jeff Heslop as the agency’s first chief operat- ing officer for information tech- nology, financial reporting and records management. Heslop joins the agency from Capital One Financial, where he was responsible for information and resiliency risk management, the SEC said Thursday in a state- ment. “The creation of the Chief Op-
erating Officer position will en- hance our ongoing effort to refo- cus our resources and make this agency more efficient and effec-
tive,” SEC Chairman Mary Scha- piro said in the statement. “Jeff brings a great depth of private sector experience with technol- ogy development and manage- ment assessment, and he has de- veloped the expertise necessary to ensure seamless oversight of our wide-ranging technology im- provements.”
— Bloomberg News
UTILITIES
FirstEnergy plans regional base in Md.
FirstEnergy said it will estab- lish a regional headquarters in central or western Maryland if its proposed merger with Allegheny Energy goes through. The power companies filed a
merger application Thursday with the Maryland Public Service Commission. They announced the $4.7 billion deal in February. FirstEnergy, based in Akron,
Ohio, said it will put the regional headquarters in the Maryland territory served by Allegheny’s Potomac Edison subsidiary. Poto- mac Edison has about 250,000 Maryland customers in Allegany, Carroll, Frederick, Garrett, How- ard, Montgomery and Washing- ton counties.
— Associated Press
Sibley aims to join Hopkins
D.C. hospital would become a subsidiary of Md. system
by Lena H. Sun
Sibley Memorial Hospital and
Johns Hopkins Health are in talks to have the District-based hospi- tal become a subsidiary of the Baltimore-based health system, officials announced Thursday. The development, reported
Wednesday on The Washington Post’s Web site, will give the $4.5 billion Hopkins system a greater presence in the region, with a foothold in a part of afflu- ent Washington where patients have insurance. Officials of both systems say it is anticipated that Sibley will join Johns Hopkins Health in early fall. Sibley spokeswoman Sheliah Roy said the nonprofit, 328-bed hospital is not being sold and will stay open. “There’s no money changing hands,” she said. Patients, she said, probably will
Lehman estate sues J.P. Morgan
Lawsuit says firm forced bank to give up valuable collateral
by Stephen Bernard
new york — The estate of Leh- man Brothers Holdings sued J.P. Morgan Chase, alleging that the firm helped drive Lehman into bankruptcy by forcing it to give up billions of dollars in cash re- serves that it otherwise could have used to stay afloat. The suit, filed Wednesday, says
J.P. Morgan forced the now-failed bank to put up collateral in the days before it collapsed that sapped Lehman of cash that, at the least, would have enabled it to wind down operations in an or- derly process. Lehman filed for bankruptcy in
September 2008, helping to spark one of the worst financial crises since the Great Depression. It was the largest bankruptcy filing in U.S. history. J.P. Morgan spokesman Joe
Evangelisti said the lawsuit “is ill- conceived and meritless.” A bankruptcy examiner’s re-
port of Lehman’s failure released in March blamed the company for its own collapse, saying that some of its top executives took on too much risk and misrepresented the bank’s financial health. J.P. Morgan served as an in- termediary between Lehman and its trading partners. In that role, Lehman said, J.P. Morgan used in- side knowledge of the bank to “si- phon billions of dollars” through a series of “one-sided agree- ments,” according to the suit. The suit alleges that J.P. Mor- gan threatened to stop providing its clearing services if Lehman
didn’t provide more collateral to protect J.P. Morgan from risks tied to serving as a bridge for Leh- man and its trading partners. Lehman said that without J.P. Morgan acting as a clearing agent, it would have immediately been forced into bankruptcy. Evangelisti said J.P. Morgan provided more than $100 billion in credit to Lehman on a daily ba- sis while acting as the bank’s clearing agent. J.P. Morgan con- tinued to provide Lehman with credit through its bankruptcy. Lehman says the $8.6 billion in
collateral it provided J.P. Morgan in its final four days of operations was billions more than was need- ed to protect against losses. The lawsuit says J.P. Morgan should return the extra cash so it can be paid to creditors still owed money from the bankruptcy pro- ceedings.
—Associated Press
have easier access to Hopkins per- sonnel. Hopkins last year ac- quired Suburban Hospital in Bethesda, converting it into a Hopkins subsidiary. If the transaction is completed as planned, Sibley will operate under the Hopkins structure in the same way as Suburban and other Hopkins affiliates, officials said. Sibley would keep its volun- tary medical staff and physician organization. Its leadership struc- ture and day-to-day operations are not expected to change. Sibley’s board of trustees voted
Wednesday for the hospital to en- ter talks to join Hopkins, as did the Hopkins board earlier this month, according to officials. Roy said Sibley’s vote “is a sig-
nificant decision.” Hospital indus- try sources said Sibley had also been in talks for several weeks with Columbia-based Medstar Health, which owns Washington Hospital Center, the largest hos- pital in the District, and George- town University Hospital. In a statement Thursday, Ed- ward Miller, dean and chief exec- utive of Johns Hopkins Medicine, said: “Sibley will be a key force in the development of an integrated system of care for the national capital region, focused on im- proving health by providing ac- cess to state-of-the-art clinical medicine that’s supported by a
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Daily Stock Market Performance
Index
Dow Jones Industrial Average
11,600 10,900 10,200 9500 8800 8100
Nasdaq Composite Index
2600 2300 2000 1700
S&P 500 Index
1250 1175 1100 1025 950 875
J
1103.06 +3.3 –1.1 2277.68 +3.7 +0.4
THE MARKETS
10,258.99
Close %Chg
+2.9
Daily
%Chg
–1.6
YTD
Industry Group
Real Estate Mgmt & Dev REITS
Metals & Mining
Construction & Engineerng Consumer Finance Multi-Utilities
Pharmaceuticals Household Products
Health Care Technology Diversified Consumer Svcs
S&P 500 Industry Group Snapshot
Daily
%Chg
8.71 5.58 5.50 5.34 5.23 1.60 1.34 0.94 0.41 0.06
–9.0% 0 +9.0%
Commodities
Futures
Copper Corn
Crude Oil Gold
Natural Gas
/ SIBLEY
HE-BIRTH4. Hospital birth classes. Sibley Hospital exterior. Credit: Sibley
strong base of research and med- ical education.” Sibley’s president and chief ex-
ecutive, Robert Sloane, said in a statement that the alliance would be a major step in advancing health-care delivery in the region. Sibley spokeswoman Roy not-
ed that Sibley was one of the few remaining free-standing hospi- tals in the Washington area. The national health-care overhaul means “there’s a lot of changes going on,” and with reduced Medicare payments to physicians in the future, she said, teaming with Hopkins positions Sibley to be a “more relevant health-care
provider” for the future. In recent weeks, industry sources have said patient volume at Sibley has dropped. The hospi- tal also does not have stroke ac- creditation, though Roy said Sib- ley is in the process of obtaining it. A lack of such accreditation means fewer patients can be brought to the emergency room for treatment for possible strokes. Hopkins has one of the nation’s leading medical schools, an ex- tensive research faculty and a sprawling hospital system that in- cludes Howard County General Hospital in Columbia.
sunl@washpost.com
S
A21
Data and graphics by
$3.1515 $3.7325 $74.55
$1211.90 $4.29
Close %Chg
+2.5 +0.5 +4.3 –0.1 +2.8
Daily
Orange Juice Silver
Soybeans Sugar Wheat
Value of $1000 invested for the past:
Daily
International Stock Markets
Daily
Americas
Brazil (Bovespa)
Canada (S&P/TSX Comp.)
Mexico (Bolsa)
Europe
Eurozone (DJ Stoxx 600) France (CAC 40)
Germany (DAX)
U.K. (FTSE 100)
Asia Pacific
J A S O N D J
Company
3M
Alcoa
AmExp AT&T BoA
Boeing
Caterpillar Chevron Cisco
Coca-Cola DuPont
Exxon Mobil GE
Dow Jones 30 Industrials
Daily
Close
81.43
11.82 40.33 24.63 16.18 65.13 62.06 74.36 23.67 51.23 36.79 61.46 16.66
Home Depot 34.55 HP
46.94
Other Measures
Index
%Chg %Chg
2.9
5.1 –26.7 5.7 2.1 4.6 3.0 3.9 3.9 3.4 2.3 4.9 3.6 4.1 1.5 2.7
–12.1 7.4
20.3 8.9
–3.4 –1.1
–10.1 9.3
–9.9 10.1 19.4 –8.9
Close
DJ Total Stock Market Index 11,543.07 Russell 2000
670.51
Post-Bloomberg DC Area Index 191.88 CBOE Volatility (VIX)
29.68
YTD
–1.5 –0.5
F M A M
Company
IBM
Intel J&J
JPMorgCh Kraft Foods McDonald's Merck
Microsoft P&G Co Pfizer
Travelers
United Tech Verizon
Wal-Mart Walt Disney
Close
126.39
21.76 59.03 40.42 29.06 67.20 33.62 26.00 60.95 15.37 49.73 68.11 27.58 50.70 34.37
Daily
5.1
–1.1 4.2 2.3 1.8 3.7 4.0 0.8 1.7 3.6 3.0
%Chg %Chg
2.6
YTD
–3.4 –8.4
–8.0 –14.7 0.5
–15.5 –0.3 –1.9
2.4 –16.8 1.4 3.9
–5.1 6.6
Interest Rates
Consumer Rates
Daily%Chg YTD%Chg
3.4 4.3 3.3
0.4 7.2 2.4
–15.2 36.9
Money market funds 6-Month CDs 1-Year CDs 5-Year CDs New car loan Home-equity loan
0.79 0.81 1.18
2.60 6.30 7.48
0.54% 0.25% 3.25%
Bank Prime Federal Funds LIBOR 3-Month
3.22% 4.19% 4.86%
30-Year fixed mortgage 15-Year fixed mortgage 1-Year ARM
Australia (ASX 200) China (CSI 300)
Hong Kong (Hang Seng) Japan (Nikkei)
4379.20 2859.98 19,431.37 9639.72
Cross Currency Rates
EU €
US $
6.7
–3.0 6.9 7.6
US $ per EU € per
Japan ¥ per Britain £ per Brazil R$ per
Canada $ per Mexico $ per
0.8091 91.0600 112.5400
0.6853 0.8471 0.0075 1.8175 1.0488
12.8022 15.8232 0.1410
2.2461 0.0200 1.2963 0.0115
Japan ¥
1.2360 0.0110 0.0089
1.7 1.6 1.2 1.2
Britain £
1.4589 0.5505 1.1805 0.4451
Brazil R$ Canada $ Mexico $ 0.9535 0.0781 0.7715 0.0632
132.8500 50.0727 86.8300 7.1130 0.3772
2.6516 1.5302 0.5771 18.6771
0.6536 0.0535 1.7327 0.1420 0.0819
7.0440 12.2074
Close
62,091.77 11,749.12 32,056.16
244.79 3525.31 5937.14 5195.17
%Chg
3.2 1.8 2.3
3.0 3.4 3.1 3.1
YTD%Chg
–25%
0% +25%
Exchange-Traded (Ticker) %Chg
Coffee (COFF.L) Copper (COPA.L) Corn (CORN.L) Cotton (COTN.L) Crude Oil (CRUD.L) Gasoline (UGAS.L) Gold (BULL.L)
0.7 2.5 1.0
Natural Gas (NGAS.L) Silver (SLVR.L)
Gainers
NetApp Inc
–1.0 4.9 3.5 0.2 0.6 1.8
Gainers and Losers from the S&P 1500 Index
Daily
Close %Chg
$38.17 17.7
TTM Technologies Movado Group
Standard Register Pioneer Drilling Kulicke & Soffa
Veeco Instruments Hutchinson Tech Kite Realty Group Network Equipment SuperiorWell Svcs
TitaniumMetalsCorp Century Aluminum Quaker Chemical RTI Intl Metals Sotheby's
GibraltarIndustries Stone Energy
10-year note
Yield:
5-year note
Yield:
3.35 2.19
4:30 p.m. New York time.
$11.48 16.8 $12.70 14.6 $4.20 13.8 $5.96 13.3 $7.35 11.9 $39.59 11.6 $5.61 10.9 $4.74 10.5 $4.55 9.9 $14.89 9.9
RudolphTechnologies $9.19 9.8 Technitrol Inc
$4.01 9.6 $17.73 9.5 $10.74 9.4 $27.40 9.3 $26.84 9.2 $32.69 9.1 $13.63 9.0 $14.67 9.0
Losers
Close %Chg Daily
HornbckOffshoreSvcs $16.54 –6.0 Monsanto Co Salix Pharm
Corinthian Colleges ITT Edu Services Semtech
Oceaneering Intl DeVry
Washington Post TeleTech Holdings Clean Harbors
Johnson & Johnson Vertex Pharm NV Energy Inc
Diamond Offshore Seahawk Drilling Dril-Quip
99CentsOnlyStores
$50.27 –4.5 $35.68 –4.1 $13.42 –3.2 $101.90 –3.0 $17.47 –2.6 $52.05 –2.6 $58.06 –2.5 $470.00 –1.7 $12.74 –1.5 $61.39 –1.1 $59.03 –1.1 $34.44 –0.9 $11.69 –0.8 $68.08 –0.7 $12.22 –0.7 $53.55 –0.6 $15.07 –0.6
AmericanScience&Eng $71.62 –0.6 Capella Education
Treasury Performance Over Past Three Months
2-year note
Yield:
6-month bill
Yield:
0.87 0.23
Note: Bank prime is from 10 major banks. Federal Funds rate is the market rate, which can vary from the federal target rate. LIBOR is the London Interbank Offered Rate. Consumer rates are from Bankrate. All figures as of
$87.12 –0.5
day
$800 $1000
$1.4120 $18.47 $9.5175 $0.1492 $4.6775
Close %Chg
+1.1
Daily
+0.9 +1.5 –2.9 +1.3
month
$1200
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