November 2009

Lawsuit over Time Warner-AOL merger dismissed

LOS ANGELES (Reuters) –
The last in a wave of hundreds of shareholder lawsuits over the 2001 AOL-Time Warner merger was dismissed on Monday by a New York judge who found the claim was filed too late and failed to link investor losses to statements made by AOL's auditor, Ernst & Young.

U.S. District Judge Colleen MacMahon granted Ernst & Young's motion to dismiss the complaint brought against it in 2003 by private investigator and former AOL shareholder Dominic Amorosa.

Amorosa filed his case after time limits for securities fraud cases had expired, and failed "to connect specific statements made by the auditor" to stock losses, the judge wrote. Amorosa had originally sued AOL, Time Warner, the merged company, AOL European partner Bertelsmann AG, and 11 executives in addition to Ernst & Young. The other defendants were dismissed from the case in earlier proceedings.

The court also said it was considering sanctions against Amorosa's lawyer, Christopher Gray, over procedural "shenanigans" in the case. Neither Gray nor Ernst & Young could be reached for comment late on Monday.

Amorosa accused Ernst & Young of approving false and misleading financial statements that were incorporated into the merger registration statement and of concealing AOL's improper methods of booking online ad revenue.

Those revenue recognition practices became the focus of investigations by the U.S. Securities and Exchange Commission and Justice Department, and AOL later restated some financial results for 2000 through 2002.

The restatements led to hundreds of investor lawsuits, all but about 200 of which were consolidated into a class action in New York federal court. All have been settled or dismissed.

Ernst & Young contended that Amorosa -- who opted out of the class action to file his own suit -- was a "vexatious litigant pursuing clearly frivolous claims," the judge wrote.

She said she would consider sanctions at a separate proceeding.

The case is Dominic Amorosa vs. Ernst & Young, case no. 03-03902, U.S. District Court for the Southern District of New York.

(Reporting by Gina Keating; Editing by Richard Chang)

Demjanjuk trial opens on Nazi death camp charges

MUNICH – John Demjanjuk sat in a wheelchair wrapped in a light blue blanket, his eyes closed and his face pale as his trial opened Monday on charges he helped kill 27,900 Jews as a Nazi death camp guard.
Lawyers for the retired Ohio autoworker portrayed him as a victim — of the Nazis and misguided German justice. But three German doctors testified the Ukrainian-born Demjanjuk was fit to stand trial.
Wearing a blue baseball cap, Demjanjuk, 89, was wheeled in to the packed Munich state court and did not answer when presiding judge Ralph Alt asked if he could answer basic questions about himself. His left hand twitched occasionally and his mouth was open slightly as though he was in pain.
A German doctor who examined Demjanjuk two hours before the trial began said that despite suffering from a bone marrow disease and other ailments he was able to face trial.
"He lies there, keeps his eyes closed, but understands everything," said Dr. Albrecht Stein.
Demjanjuk's family disputed that.
"Given his now confirmed grave medical condition and his resulting inability to fully defend himself, it is farcical for anyone to say he is fit for trial and malpractice for any doctor to recommend it," said his son, John Demjanjuk Jr., in an e-mail sent from Ohio.
Demjanjuk was deported in May from the United States and has been in custody in Munich since then. He could face up to 15 years in prison if convicted of training as a guard in the Trawniki SS camp, then serving in the Sobibor death camp in Nazi-occupied Poland.
The prosecution argues that after Demjanjuk, a Soviet Red Army soldier, was captured by the Germans in 1942 he volunteered to serve under the SS as a guard.
Demjanjuk has denied that, saying he spent most of the rest of the war in Nazi POW camps before joining the so-called Vlasov army made up of Soviet POWs and other anti-communists to fight with the Germans against the encroaching Soviets in the final months of World War II.
Ulrich Busch, one of Demjanjuk's two lawyers, told the court that those Ukrainians who did volunteer to serve as guards did so to save themselves, noting that millions of Soviet POWs died at the hands of the Nazis.
"Germany did not only commit the Holocaust on the Jews, but also on the Red Army prisoners of war," he said. Those who trained at "Trawniki were survivors, not perpetrators."
Efraim Zuroff, the top Nazi hunter at the Simon Wiesenthal Center, said the contention was offensive.
"It is a total distortion of the Holocaust and turns people with criminal responsibility into blameless victims," he said.
The trial comes after 30 years of legal action against Demjanjuk on three continents.
Demjanjuk had his U.S. citizenship revoked in 1981 after the Justice Department alleged he hid his past as the notorious Treblinka guard "Ivan the Terrible." He was extradited to Israel, where he was found guilty and sentenced to death in 1988, only to have the conviction overturned five years later as a case of mistaken identity.
In the latest prosecution, Demjanjuk is accused of serving as a "Wachmann" or guard, the lowest rank of the so-called "Hilfswillige" or "Hiwi" volunteers who were subordinate to German SS men. It is the first time a conviction has been sought against someone so low-ranking without proof of a specific offense.
The prosecution argues that, even with no living witnesses who can implicate Demjanjuk in specific acts of brutality, just being a guard at a death camp means he was involved in murder. The 27,900 counts of accessory to murder come from the number of people transported to Sobibor and killed during the time Demjanjuk allegedly worked there.

Busch told the court that scores of others of higher rank have been acquitted of being part of the Nazi's machinery of destruction.

Karl Streibel, the commandant of the Trawniki training camp, was acquitted in 1976 after judges in Hamburg ruled there was insufficient proof he knew what the guards were being trained for.

Busch filed a motion seeking removal of the judges and prosecutors, saying the case should never have been brought to trial given the precedent.

"How can you say that the order-givers were innocent ... and the one who received the orders is guilty?" he asked. "There is a moral and legal double standard being applied today."

Alt, the presiding judge, did not immediately rule on the motion.

In deference to Demjanjuk's health, court sessions were limited to two 90-minute periods per day.

After sitting in a wheelchair during the first session, Demjanjuk was wheeled in on a gurney for the afternoon session, with two blankets covering his body and obscuring his face.

He was taken out after about 45 minutes to be examined, and Stein told the court he complained of severe pain and was given a shot of an analgesic the doctor said would not impair Demjanjuk's ability to concentrate. Stein recommended the session go for no more than another half-hour.

Afterward, Demjanjuk was wheeled back in lying on his back, his face visible and his eyes closed. His hands were clasped over his stomach as he listened to the Ukrainian translator at his side.

Zuroff suggested Demjanjuk was trying to appear more ill than he really was.

"He has a vested interest in appearing as sick and as frail as possible. And he's going to play it up to the hilt," he told The Associated Press.

Thomas Blatt, a Sobibor survivor who does not remember Demjanjuk serving as a camp guard but was to testify in general about his experiences there, said he hopes Demjanjuk addresses the court.

"I think that he should tell the truth, so that people will know about Sobibor," he told the AP. "The victims are dying out, the murderers are dying out — in 10 years it will all only be history. This is the last time he could talk and tell the world what happened."

This is the second major war crimes trial for Demjanjuk.

His conviction in Israel was based on evidence that included testimony from former Treblinka prisoners who claimed to recognize him as the brutal guard Ivan the Terrible. The Israeli high court freed him in 1993 after it received evidence that another Ukrainian, not Demjanjuk, was Ivan.

Demjanjuk's U.S. citizenship was restored but again revoked in 2002, based on fresh Justice Department evidence showing he concealed his service at Sobibor from immigration officials.

This time, however, there are no Sobibor survivors who claim to recognize Demjanjuk.

Demjanjuk questions the authenticity of one of the main pieces of evidence — a photo ID identifying Demjanjuk as a guard at Sobibor and saying he was trained at Trawniki. U.S. and German experts have declared the ID genuine.

Some of the most damning evidence comes from statements made by Ignat Danilchenko, a now-deceased Ukrainian who once served in the Soviet army and was exiled to Siberia after World War II for helping the Nazis.

In 1979, he told the Soviet KGB he served with Demjanjuk at Sobibor and that Demjanjuk "like all guards in the camp, participated in the mass killing of Jews."

However, the U.S. Office of Special Investigations has questioned the validity of his statements, saying they contained "numerous factual errors."

If convicted, Demjanjuk could receive credit in sentencing for some or all the time he spent behind bars in Israel. If acquitted, Demjanjuk will likely have to remain in Germany because he has been stripped of his U.S. citizenship.

Giving new definition to being on tour

MELBOURNE, Australia – Tiger Woods first made his move in the Australian Masters in the middle of the opening round, getting his name on the leaderboard next to a player named "Jordan" that even some of the local fans did not recognize.
Damien Jordan, the last player to get into the field, was worth getting to know.
The 29-year-old rookie fulfilled one part of his dream by making it through Q-school last year on the Australasian Tour, a goal that had been put on hold when he enlisted in the Army and served two tours in Iraq.
The first tour was for five months in 2002, and he returned in 2005 for a seven-month tour of more heavy combat. He left the Army a year later, and took two years to polish his game. If anything, it has given him a different perspective than most.
"Regardless of what happens, I know I'll go home at the end of the day and have a hot shower, have a good feed," he said. "Half the time you're over there, you're thinking, 'This could be the time when an IED goes off and I'm not going home.'"
Jordan's parents introduced him to golf at a young age, and he was slowly developing into a decent golfer when he felt compelled to join the Army at age, serving in the 2nd Battalion of the Royal Australian Regiment.
"A lot of people before me have given their lives for the country, and I thought, 'Why should I be different and not put my end up?'" Jordan said. "That's what I did. I met a lot of good mates, a lot of friends for life, and it made me stronger out here."
Even now, he faces a struggle different from most.
He said his time in the Army cost him his marriage, which Jordan said was one of the untold statistics of Army life. He spends as much time as he can with his two daughters, ages 2 and 3.
Jordan said he will take medication the rest of his life to cope with the dreams, and he continues to see a psychiatrist twice a month.
"Even smells can bring it back," he said. "I walked into a fruit and vegetable shop, and there had been an Iraqi shop that had the same incense going," he said. "That made it tough. It was exactly the same. I'm trying to get away from stuff like that."
Jordan mostly played the pro-am circuit this year in Australia, in which amateurs put up the purse while playing with the pros. It would be comparable to a mini-tour in the United States, and Jordan won eight tournaments.
The Australian Masters was his first event that counted on the world ranking. He opened with a 69 before falling well back and finishing toward the bottom of the leaderboard.
Asked for his greatest moment in golf, he smiled.
"Playing here, mate," he said. "It's the biggest thing I've ever done in my golf career. To make the cut, and to be out here, is just brilliant. And I got to see Tiger. To play in the field with anyone of that stature is phenomenal."
Jordan was not sure if he would get into the Australian Open or the Australian PGA Championship next month. Asked for his ultimate goal, he did not mention winning or even playing a particular tournament.
"Just keep living the dream, doing what I'm doing," Jordan said. "Every day is a win for me."
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RACE TO DUBAI: The European Tour has four players in position to win the Race to Dubai, which features a $7.5 million bonus pool in addition to the $7.5 million purse this week at the Dubai World Championship.

Rory McIlroy, the 20-year-old from Northern Ireland, moved atop the standings with his runner-up finish last week in Hong Kong, putting him about $190,000 ahead of Lee Westwood. They are followed by Martin Kaymer and Ross Fisher.

Paul Casey is fifth in the standings, but has withdrawn with a recurring rib injury.

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PRESIDENTS CUP: PGA Tour commissioner Tim Finchem said the tour has agreed to look into the possibility of staging the Presidents Cup in China in 2019, which he said might be enough time for China to set a goal of having a player capable of competing in the matches, or worthy enough to be a captain's pick.

If that's the case, it would leave 2015 open for an international venue.

Finchem is intrigued by the idea that the Presidents Cup head to South America in 2015, one year before golf returns to the Olympic program in Brazil. Golf is only guaranteed the 2016 and 2020 Olympics before another vote of confirmation. It is important that golf put on a good show in Rio.

"We can't just show up and say, 'We're here,'" Finchem said.

The Nationwide Tour is headed to Colombia next year, home country of Camilo Villegas. One problem is that the best players from South America are coming from Argentina — two-time major champion Angel Cabrera, Andres Romero, Ricardo Gonzalez, Daniel Vancsik and Estanislao Goya. Argentina held a wildly successful World Cup, won by Tiger Woods and David Duval, in 2000.

"Will that help with an Olympics in Brazil? I don't know," Finchem said.

He said the first priority before South America — perhaps Brazil, in this case — can be considered for a Presidents Cup is getting more golf courses built.

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TIGER'S CHECK: Depending on the exchange rate when the check was written, Tiger Woods earned a little more than $250,000 for his victory in the Australian Masters, which was the sixth-lowest winning check of his career.

Two of those checks came on the PGA Tour.

Woods earned $216,000 for winning at Disney in 1996 and the Mercedes Championship at La Costa to open the next season. The tour negotiated its new TV deal later that year, and prize money took off a few years later.

The smallest check was $48,450 in 1997 for winning the Asian Honda Classic, followed by $190,798 for winning the Johnnie Walker Classic in 2000. Woods also received only $223,061 for winning the Johnnie Walker in 1998.

Of course, he received appearance fees that dwarfed the total purse in those overseas events.

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DIVOTS: Tiger Woods earned 28 world ranking points with his victory in the Australian Masters, the fewest for any victory since he received 24 in the 2000 Johnnie Walker Classic. ... There were 91 players who earned over $1 million on the PGA Tour, the fewest since 78 players in 2005. ... The PGA Tour had 13 playoffs this year, three short of the record last set in 1991.

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STAT OF THE WEEK: Adam Scott tied for third in Singapore and tied for sixth in Australia. It was the first time he had top 10s in consecutive tournaments since May 2008.

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FINAL WORD: "I'm definitely playing well. I haven't missed a cut since Tiger invited me to his tournament. But unfortunately, it's not about missing cuts out here." — Chris Riley, who failed to finish inside the top 125 on the PGA Tour money list to keep his card.

Army suicides to top 2008, but progress reported

WASHINGTON – Soldier suicides this year are almost sure to top last year's, but a recent decline in the pace of such deaths could mean the Army is making progress in stemming them, officials said Tuesday.
Army Vice Chief of Staff General Peter Chiarelli said that as of Monday, 140 active duty soldiers are believed to have died of self-inflicted wounds. That's the same as were confirmed for all of 2008.
"We are almost certainly going to end the year higher than last year — this is horrible, and I do not want to downplay the significance of these numbers in any way," he said.
But Chiarelli said there has been a tapering off in recent months from huge numbers of January and February.
"I do believe we are finally beginning to see progress being made," Chiarelli told a Pentagon press conference.
He attributed that to some unprecedented efforts the Army has been trying to work with soldiers through new programs.
Using some U.S. bases as examples of the trend downward, Chiarelli said there were 18 suicides reported this year at Fort Campbell in Kentucky — and that 11 of those were in the first four months of the year.
At Schofield Barracks in Hawaii, there were seven all year so far — five in the first five months of the year and only two since.
The Army widened suicide prevention in March in an attempt to make rapid improvements in its programs and policies. Army efforts to curb suicides also were increased Oct. 1 with the beginning of the so-called Comprehensive Soldier Fitness program, which aims to put the same emphasis on mental and emotion strength as the military traditionally has on physical strength. Basic training now includes anti-stress programs as part of a broader effort to help soldiers deal with the aftereffects of combat and prevent suicides.
Still, another jump in suicide figures for 2009 would make it the fifth straight year that such deaths have set a record as troops continue to come under the stress of two overseas wars. It compares with 140 in 2008, 115 in 2007 and 102 in 2006.
The numbers kept by the service branches don't show the whole picture of war-related suicides because they don't include deaths after people have left the military. The Department of Veterans Affairs tracks those numbers and says there were 144 suicides among the nearly 500,000 service members who left the military from 2002-2005 after fighting in at least one of the wars.
The true incidence of suicide among military veterans is not known, according to a report last year by the Congressional Research Service. Based on numbers from the Centers for Disease Control and Prevention, the VA estimates that 18 veterans a day — or 6,500 a year — take their lives, but that number includes vets from all previous wars.

John Mayer makes sure music rises above tabloids

NEW YORK – If you're engrossed in the tabloid Internet-gossip that has come to define the celebrity world, then John Mayer's latest CD, "Battle Studies," could provide enough fodder to fill at least a dozen Perez Hilton blog posts or at least one story in Us Weekly.
The CD's first single, "Heartbreak Warfare," already has some speculating on its subject with lyrics like: "If you want more love, why don't you say so?... Bombs are falling everywhere, heartbreak warfare."
Hmmm... could that be a message to a certain famous "friend" who he's been linked with on and off for the last two years? A look into the much-dissected love life of one of music's hottest hunks?
Mention this to Mayer himself, and you'll get a serious eye-roll, followed up with an "Are you kidding me?" look.
"I know some people think that, but it doesn't," a slightly exasperated Mayer says during a break in rehearsals for two upcoming concerts to promote his new CD (his concert airs on Fuse on Tuesday night, the same day as the album's release).
"That would mean that my personal life is more powerful than the music itself, and it's just not. No one's personal life is more powerful than music itself, and it's just not.
"By the way, I'm not the first person to process a personal life into putting out a record," he adds. "I think if there's any intrigue — obviously it would be silly of me to ask somebody not to be intrigued — but I think when the music starts playing, you're not thinking about my life, you're thinking about yours."
Mayer has rarely shied away from attention. He provides must-read updates to his more than 2.6 million followers on Twitter, engaged in a high-profile romance with Jennifer Aniston (which followed the high-profile romance with Jessica Simpson, which followed a romance with yet another startlet), has written for blogs and magazines and is known as one of the wittiest, media-savvy entertainers around.
But he is weary of those who would rather put the focus on John Mayer, the celebrity, and not John Mayer, the critically acclaimed, multiplatinum singer-songwriter-guitarist once heralded by Rolling Stone as one of rock's new "guitar gods."
"I've never liked the idea of somebody co-opting who I am, and I don't think anybody does," says Mayer, sitting in a small room as guitars wail in the background.
It's been nearly a decade since John Mayer burst onto the music scene as the boyish-looking, uncommonly gifted musician on "Room for Squares," with hits like "Your Body Is a Wonderland." Over the years, he's worked with everyone from B.B. King to Buddy Guy, won seven Grammys and created signature hits like "Daughters" and "Gravity." Billed as the "next James Taylor," he quickly created a musical identity of his own.
"Battle Studies" — his fourth studio album — is what he describes as perhaps his most lyrically complex, and yet at the same time, his most straight-foward. Now a veteran musician and producer, he has more confidence and experience when making a record: "I don't see it as a series of winning bets. I see it as something I do for a living."
The album finds Mayer at his most emotionally vulnerable, with songs titles like "Half of My Heart" (which features Taylor Swift) and "Perfectly Lonely." Mayer describes it as the "loose-ends phase of my life."
"I have all the big pieces figured out... I know what I want to do for my life, I know who my friends are, I know how to behave, I know what burns when I touch it because it's too hot," he says. "It's about tidying up those last few things so we can really get to the point in life so the struggle isn't the main event."
But Mayer's romantic struggles have become the main focus in the tabloid world — and he's rarely painted as the wounded party — most notably his relationship with Aniston, which reached its media apex when he escorted her to the Oscars earlier this year (and perhaps its low when he was quoted as confirming their then-breakup to paparazzi last year).
Mayer has dated other celebrities in the past, but the Aniston romance put him into tabloid overdrive. He was at best defined as a Lothario — at worst, a cad. But what has been potentially more damaging is that in some circles, it has overshadowed his musicianship.
"You know what I really like? I like when people say to me, 'Gee, I didn't know he could play like that,'" says guitarist Steve Jordan, who has worked with Mayer for at least five year and is featured on his latest CD. "(People) see a People magazine or a Us (Weekly) magazine and they think that's what it's all about."
And that infuriates Mayer to no end.

"By the way, I didn't really kill anybody. I didn't smash a car, I didn't commit a crime... I don't like the idea that there's an indictment on anything that I do," he says.

"The idea that there has been a sullying of my image ... I'm not going to be buried with an Us Weekly. I don't give a (expletive) about it anymore, I can't worry about it and I don't worry about it. And I don't think people want me to worry about it."

Mayer admits that perhaps a month ago, before he started promoting his album, he might have started to worry about all the tabloid chatter. But then he went to Australia and found himself playing before thousands of fans who didn't care about who he was dating, or his latest Twitter post — just about his music.

And he knew that Mayer, the musician, would be fine.

"I've never played in front of a room full of people who are chattering. I've played in front of a room full of people who are singing along to every word... that's a lot louder than chatter," he says.

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On the Net:

http://www.johnmayer.com

Hard Money Lenders

Hard Money Lenders

Some private investment groups or bridge capital groups will require joint venture or sale-lease back requirements to the riskiest transactions that have a high likelihood of default. Private Investment groups may temporarily offer bridge or hard money, allowing the property owner to buy back the property within only a certain time period. If the property is not bought back by purchase or sold within the time period the commercial hard money lender may keep the property at the agreed to price.

While we cannot promise you that we can get you the loan you are seeking, we can promise that we will be straight and honest with you. We are currently in a very volatile market and lending and underwriting guidelines are changing daily. Loan programs that were available 3 to 6 months ago are no longer close to the realm of possibility. Currently, our own guidelines prevent us from lending money on any property with an NOD filed against it...most lenders are moving in the same direction.

China, U.S. eye pact to help troubled banks: sources

HONG KONG (Reuters) –
Chinese and U.S. regulators are negotiating a pact aimed at encouraging Chinese financial institutions to buy into small and medium-sized banks in the United States, bankers briefed on the plan said on Tuesday.

Chinese bankers have complained that it's been difficult for them to set up branches or invest in banks in the world's leading economy, due partly to U.S. regulators' tough supervision and strict approval process for financial deals.

But the global financial landscape has been revamped by the credit crisis, and cash-rich Chinese banks are now bigger players on the world scene and are scouting around for investment targets.

To illustrate the global shake-down, Industrial and Commercial Bank of China (601398.SS) (1398.HK) is now the world's biggest bank by market value, while Citigroup Inc (C.N), once the world's No.1 bank, is worth the same as a second-tier commercial bank in China.

Two senior Chinese bankers said they had been invited this year by U.S. officials, investment bankers and financial advisers to look at several potential investments in U.S. banks, mostly in financial trouble.

"The trend is already there," said one Chinese banker. "Now they're going to make this into an agreement to show there's a change in official attitude toward Chinese investments in the U.S. banking system," said the banker, who declined to be identified due to the sensitive nature of the matter.

A Sino-U.S. Memorandum of Understanding (MOU) to encourage Chinese banks to invest in U.S. lenders is in the making, and China's banking regulator has sought feedback from big domestic banks, bankers told Reuters.

Over 100 U.S. banks have already been seized by regulators in the financial crisis, and more bank failures could come as the Obama administration also needs more capital to take over troubled lenders.

NO HURRY TO BUY?

The MOU would be part of a new strategic framework that ranges from climate change to international cooperation, Hong Kong's South China Morning Post reported on Tuesday.

The hope is to announce a deal during U.S. President Barack Obama's current visit to China, the newspaper said, citing unnamed mainland bankers briefed on the matter.

In October 2007, Minsheng Banking Corp (600016.SS), China's seventh-largest by assets, agreed to buy 9.9 percent of San Francisco-based UCBH Holdings Inc (UCBH.O) for more than $200 million in the first investment by a mainland Chinese bank in a U.S. bank.

But Minsheng has seen huge paper losses on its investment in UCBH, whose business focuses on mortgages for many Chinese Americans on the U.S. West Coast, as UCBH shares sank in the financial crisis.

Other Chinese banks such as ICBC and Merchants Bank (600036.SS) (3968.HK) have also shown an interest in expanding in the United States, but their approach may be different.

"I feel lots of uncertainties still exist in the U.S. financial market and we want to keep a distance from these toxic assets at this moment," said Ma Weihua, CEO of Merchants Bank, China's sixth-largest lender by assets.

"Our attitude toward U.S. financial assets is very conservative right now," Ma told Reuters by telephone.

Merchants Bank opened its first U.S. branch in New York about a year ago, and Ma said the branch would hire more local staff to expand its business there.

(Additional reporting by Twinnie Siu and Don Durfee, Editing by Ian Geoghegan)

Pet Tags

Pet Tags

Pet Insurance pays the veterinary costs if one's pet is ill or is injured in an accident. Some policies also pay out if the pet dies, or is lost or stolen.

The purpose of pet insurance is to mitigate the risk of incurring significant expense to treat ill or injured pets. As veterinary medicine is increasingly employing expensive medical techniques and drugs, and owners have higher expectations for their pets' health care and standard of living than previously, the market for pet insurance has increased.

Grim reality still grips U.S. commercial real estate

NEW YORK (Reuters) –
Executives do not expect the U.S. commercial real estate market to emerge from critical condition any time soon, according to a survey by The Real Estate Roundtable.

Although the three indexes tracked by the "Sentiment Survey" have risen dramatically since the near-collapse of financial markets last year, they reflect the respondents' collective sense of relief at having survived the worst of the turmoil, according to The Real Estate Roundtable.

The U.S. commercial real estate market has been in a downward spiral for more than two years. On the whole, U.S. commercial real estate values have fallen about 40 percent from their peaks in 2007. Borrowers face shortfalls in financings when loans come due, while other borrowers are struggling to meet even monthly payments.

The delinquency rate of U.S. commercial real estate loans that had been securitized into Commercial Mortgage-Backed Securities (CMBS) hit 4.8 percent in October, up from 4.36 the prior month and dwarfing the 0.77 rate a year earlier, according to Trepp, which tracks CMBS loans.

The Roundtable is a trade group that has been advocating for government policy changes to help jump-start the sector. It has urged policymakers to adopt its "Five-Point Liquidity Plan" which includes changes in tax rules that will allow more foreign investment and improving the Term Asset-Backed Lending Facility's (TALF) ability to foster new issuance of commercial mortgage-backed securities (CMBS).

According to the Roundtable's survey, U.S. property executives rate "current conditions" a 56 -- well below the ideal of 100.

An overall index of 100 would mean that respondents believe present conditions are "much better" than a year ago, and will be "much better" 12 months from now.

"The problems now are more clearly defined and there's a grim sense of reality setting in, but that's a long way from saying markets are stabilizing or that conditions are on the mend," Roundtable President and Chief Executive Jeffrey DeBoer said in a statement.

Policymakers need to restore credit availability, address the equity shortfall resulting from falling commercial property losses, and foremost help create jobs, the Roundtable said.

About 77 percent of the more than 100 commercial real estate executives surveyed said property values are lower than a year ago.

Although that was down from 93 percent the previous quarter, it was far from optimistic. Seventy-one percent of the respondents said they expected values to remain "about the same" or to erode even further in the next 12 months.

As far as financing sources, 28 percent of those polled said credit availability is worse today than a year ago, compared with 71 percent who said so in the previous quarter.

The percentage that characterized equity availability as worse today than a year ago also dropped significantly -- to 17 percent from 55 percent in the prior quarter. However, 95 percent expect debt market conditions to be at least the same or better 12 months from now.

(Reporting by Ilaina Jonas, editing by Matthew Lewis)