Uncovering Problems in Older Homes

Unlike many modern built houses that are constructed in mass and with the same specifications, older homes are unique, evoke character, and have history. This charm can cause many homeowners (or prospective homeowners) to overlook some major structural or maintenance problems that could easily lead to expensive and repeated repairs.

Of course, if you’re current living in an aged home (or have your eye on one), this doesn’t mean you are doomed to living in a “money pit.” In fact, if you inspect the property with a discerning eye and solve problems immediately (before they exacerbate), you can indeed live in your dream home.

Typical Problems to Look For

Although elderly homes can suffer from a whole range of problems, most of the major issues are caused by two things: water and electricity. Use the tips below to discover any troubles your home is hiding:

Water Damage

Water is the biggest cause of damage in all homes. It can rot wood, disturb foundations, and generally wreak havoc on a home. Some hints that water damage may exist are:

• Missing shingles
• Rooted/loose trim boards
• Clogged/disconnected gutters and downspouts (major red flag!)
• Grade around the house slopes inward (water flows towards house instead of away)

Electric Systems

In years past, people simply didn’t use as much electricity as we do today. While older electric systems used to run only a radio and a lamp, today they power light fixtures in every room, an assortment of appliances, TVs, and more. Needless to say, an antiquated electric system isn’t going to cut it — and is a major fire hazard.

Your electric system is likely outdated if it:

• Is 40 years or older
• Has a fuse box rated at 60 amps or less
• Contains aluminum wiring
• Has burn marks around outlets and switches

While it’s useful to scrutinize your own home, if you really want to uncover all potential problem areas, you should hire a professional home inspector. They know exactly what to look for and are more ruthless in their hunt, since they have no emotional attachment to the property.

Would you buy an older home, or do you think they are more trouble than they are worth? Share below.

Health workers pack dead chicken at a wholesale poultry market in Hong Kong December 21, 2011.

NEW YORK | Fri Jan 20, 2012 6:36pm EST

(Reuters) – Researchers studying a potentially more lethal, airborne version of the bird flu virus have suspended their studies because of concerns the mutant virus they have created could be used as a devastating form of bioterrorism or accidentally escape the lab.

In a letter published in the journals Nature and Science on Friday, 39 scientists defended the research as crucial to public health efforts, including surveillance programs to detect when the H5N1 influenza virus might mutate and spark a pandemic.

But they are bowing to fear that has become widespread since media reports discussed the studies in December that the engineered viruses “may escape from the laboratories” — not unlike the frightful scenario in the 1971 science fiction movie “The Andromeda Strain” — or possibly be used to create a bioterror weapon.

Among the scientists who signed the letter were leaders of the two teams that have spearheaded the research, at Erasmus Medical College in the Netherlands and the University of Wisconsin, Madison, as well as influenza experts at institutions ranging from the U.S. Centers for Disease Control and Prevention to the University of Hong Kong.

The decision to suspend the research for 60 days “was totally voluntarily,” virologist Ron Fouchier of Erasmus told Reuters. The pause is meant to allow global health agencies and governments to weigh the benefits of the research and agree on ways to minimize its risk.

“It is the right thing to do, given the controversies in the U.S.,” Fouchier said.

The U.S. National Science Advisory Board for Biosecurity in December had asked Science and Nature to censor details of the research from the Erasmus and Wisconsin teams that was submitted for publication.

Biosecurity experts fear that a form of the virus that is transmissible through airborne droplets–which the Erasmus and Wisconsin teams independently created–could spark a pandemic worse than the 1918-19 outbreak of Spanish flu that killed up to 40 million people.

“There is obviously a controversy here over the right balance between risk and benefit,” says virologist Daniel Perez of the University of Maryland, who signed the letter supporting the moratorium. “I strongly believe that this research needs to continue, but that doesn’t mean you can’t call a time out.”

The researchers’ decision shifts the focus of debate from whether the studies should be made public to whether they should have been done at all, given the theoretical possibility that a highly infectious virus could be stolen or escape from a lab. Some of the studies were funded by the U.S. National Institutes of Health.

Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases at NIH, told Reuters that the decision to fund the research was justified.

“The proposal the investigators put forth to do this research was appropriate,” said Fauci, who was “actively involved” in the decision to call a moratorium on the research. “The value of the research is clear, as even the biosecurity board unanimously agreed.”

CONTAGIOUS AMONG HUMANS

In its current form, people can contract H5N1 only through close contact with ducks, chickens, or other birds that carry it, and not from infected individuals.

But when H5N1 acquires mutations that allow it to live in the upper respiratory tract rather than the lower, it can travel via airborne droplets between infected ferrets, which are considered good models of how flu viruses behave in people.

The teams at Wisconsin, led by Yoshihiro Kawaoka, and Erasmus induced as few as three mutations that allow the virus to be transmitted through the air between ferrets. It is not known whether the mutant H5N1 can be spread between people in a similar way, by coughing or sneezing, since such experiments would be unethical.

But the fear is that the mutations that allow H5N1 to spread via the air between ferrets would allow it to do in people, making it exponentially more contagious.

To give the scientific community and governments time to determine whether the research can be conducted safely, the scientists write, “We have agreed on a voluntary pause of 60 days on any research involving highly pathogenic avian influenza H5N1 viruses” that produce easily contagious forms of the virus.

In particular, they wrote, no experiments with live, mutant viruses “already shown to be transmissible in ferrets will be conducted during this time.”

Fouchier noted in an essay published Thursday in Nature that other laboratories around the world may also be close to an airborne bird flu virus, and may not even be aware of it.

HOW SAFE ARE THOSE LABS?

Critics have more recently raised concerns over the safety of the physical environment in which the experiments were being conducted, in addition to the question over whether details of the research should be made public. For now, Science and Nature are withholding publication of the studies.

Nature reported last month that both experiments on mutant viruses were carried out in labs rated “biosafety level 3 (BSL-3) enhanced,” which “require scientists to shower and change clothes when leaving the lab, and include other safety features such as negative air pressure and passing exhaust air through high-efficiency particulate air filters.”

That is widely believed to protect against an accidental release of the virus. But some virologists argue that the more stringent BSL-4 precautions are needed. BSL-4, which is required for research on, among other microbes, the Ebola virus, includes full-body positive air-pressure suits like astronauts use. In the past, the SARS (severe acute respiratory syndrome) virus has escaped from BSL-3, and possibly BSL-4, labs.

“It’s a responsible decision to suspend work on these viruses while agreement is being reached,” said Peter Openshaw, Director of the Centre for Respiratory Infection at Imperial College London. “I hope that these issues can be resolved and that this vital work will continue under appropriate conditions and not be driven underground.”

Scientists and government officials are expected to meet in Geneva in February at the World Health Organization, to decide how research on mutant H5N1 should proceed.

Former House Speaker Newt Gingrich scolds CNN moderator John King at the beginning of a Republican presidential candidates debate in Charleston, South Carolina, January 19, 2012.

CHARLESTON, South Carolina | Thu Jan 19, 2012 9:27pm EST

(Reuters) – Republican presidential candidate Newt Gingrich angrily defended himself on Thursday against allegations that he had asked his ex-wife for an open marriage, lashing out in perhaps the most crucial debate yet in the 2012 campaign.

The CNN-sponsored debate got off to a raucous start when moderator John King asked Gingrich to respond to charges put forth by his ex-wife Marianne that he had sought an “open marriage” while having an affair.

The impropriety charges have dogged Gingrich for years and threaten to slow his momentum in South Carolina as he seeks to upset front-runner Mitt Romney in the first primary vote in the South on Saturday.

“I think the disruptive, vicious, negative nature of the news media makes it harder to govern this country,” Gingrich fumed. “I am appalled that you would begin a presidential debate on a topic like that.”

The Republican crowd roared its approval of Gingrich.

The was the final chance for rivals to chip away at Romney’s lead in South Carolina and Gingrich, the former speaker of the U.S. House of Representatives, had perhaps the best shot.

Romney came into the debate under strong pressure to turn back Gingrich, who received the endorsement of Texas Governor Rick Perry who dropped out of the race early Thursday.

Romney, a former private equity executive, insisted the company for whom he worked did in fact help create more than 100,000 jobs despite doubts about that expressed by experts.

Romney’s experience at Bain Capital, which bought companies and restructured them sometimes resulting in job losses, has hurt him in South Carolina where unemployment remains around 10 percent. Gingrich lobs frequent attacks at him on this.

Romney said Bain helped nurture companies that created 120,000 jobs while business failures cost about 10,000 jobs for a net increase of 100,000.

“People have evaluated that since I ran four years ago,” said Romney, who lost the Republican presidential race in 2008 to Senator John McCain.

Romney will take a huge step toward claiming the Republican nomination if he wins on Saturday.

Fighting for their political lives at the debate were former Pennsylvania Senator Rick Santorum and libertarian Congressman Ron Paul of Texas.

GINGRICH GETS CLOSER

A strong performance in a debate in South Carolina on Monday helped him get within touching distance in the polls of Romney, who has struggled to explain why he has not released his tax forms.

But Gingrich has faced troubling questions that could halt his momentum. His second wife, Marianne, told ABC News that Gingrich had sought an open marriage while having an affair with current wife Callista. She said he should not be considered electable in the race to find a Republican challenger to Democratic President Barack Obama in next November’s election.

A new Reuters/Ipsos poll conducted of 656 likely South Carolina voters showed Romney with 35 percent support, Gingrich with 23 percent support, and former Senator Rick Santorum with 15 percent support.

Romney was looking for a rebound to boost his momentum after the surprise news from Iowa on Thursday that he did not receive the eight-vote victory that he had believed on January 3.

A formal count by Iowa election officials gave the nod to Santorum by a mere 34 votes, puncturing the aura of inevitability that Romney’s campaign has sought to portray.

Santorum went on the attack on Thursday night against Romney and Gingrich over healthcare. He attacked Romney’s healthcare plan in Massachusetts that Democrats say was a model for Obama’s unpopular overhaul, and Gingrich for prior support for a provision that individuals be required to buy health insurance.

Thu Jan 19, 2012 4:19pm EST

(Reuters) – Eastman Kodak Co, the photography icon that invented the hand-held camera, has filed for bankruptcy protection and plans to shrink significantly, capping a prolonged plunge for one of America’s best-known companies.

The Chapter 11 filing makes Kodak one of the biggest corporate casualties of the digital age, after it failed to quickly embrace more modern technologies such as the digital camera — ironically, a product it invented.

Kodak once dominated its industry, and its film was the subject of a popular 1973 song, “Kodachrome,” by Paul Simon.

The bankruptcy may give Kodak, which traces its roots to 1880, the ability to find buyers for some of its 1,100 digital patents, a major portion of its value. Kodak now employs 17,000 people worldwide, down from 63,900 just nine years ago.

“It is a very sad day even though we had anticipated it,” said Shannon Cross, an analyst at Cross Research who has had a “sell” rating on the company since 2001. “If it emerges, it will be a much smaller entity.”

According to papers filed with the U.S. bankruptcy court in Manhattan, Kodak had about $5.1 billion of assets and $6.75 billion of liabilities at the end of September.

In court documents, Chief Financial Officer Antoinette McCorvey said, without elaborating, that Kodak plans to sell “significant assets” during the bankruptcy. Non-U.S. units are not part of the Chapter 11 case.

Kodak also said it obtained a $950 million, 18-month credit line from Citigroup Inc so it can keep operating and avoid having to liquidate. It said it expects to complete the bankruptcy process in 2013.

“This is a necessary step and the right thing to do for the future of Kodak,” Chairman and Chief Executive Antonio Perez said in a statement on Thursday.

Kodak’s market value has sunk well below $200 million from $31 billion 15 years ago, when its share price topped $94.

The shares began trading on Thursday on the Pink Sheets. By the end of the day they were down 6 cents at 30 cents each.

WAY BEHIND

In recent years, Perez has steered Kodak toward consumer and commercial printers.

But that failed to restore annual profitability, something Kodak has not seen since 2007, and did not arrest a cash drain.

Kodak has struggled to meet its pension and other obligations to more than 65,000 workers, retirees and others who

participate in its employee benefit programs.

McCorvey said Kodak ultimately suffered from a “liquidity shortfall” as some vendors stopped shipping and providing services, and demanded shorter payment terms.

Kodak said in court papers it has about $820 million of cash and equivalents, but was down to just $56.7 million of cash in the United States.

“They got behind the curve on the analog-to-digital shift, and they were way behind for a long time,” said Ananda Baruah, an analyst at Brean Murray who covers Kodak.

The company’s downfall has also hit its Rust Belt hometown of Rochester, New York, with its workforce there falling to about 7,000 from more than 60,000 in Kodak’s heyday.

Andrew Cuomo, New York’s governor, on Thursday called the bankruptcy “difficult and disappointing news” for the city, whose population was about 211,000 in the last census.

Kodak named Dominic DiNapoli, a vice chairman at business turnaround specialist FTI Consulting Inc, as its chief restructuring officer.

The investment bank Lazard is also providing advice and has been helping Kodak look for a buyer for its digital patents. Kodak’s law firm is Sullivan & Cromwell.

Last week, Kodak reorganized its business operations, creating a commercial unit and a consumer unit. It previously had units for consumer digital imaging; film, photofinishing and entertainment; and graphic communications.

Mark Zupan, dean of the University of Rochester’s business school, said “there’s still too much value” at Kodak for the company to be forced to liquidate. “Segments will be profitable enough to survive as a leader, as a smaller company.”

LITIGATION STRATEGY

Perez, who has been chief executive since 2005, said the bankruptcy would help Kodak maximize the value of patents related to digital imaging, which Kodak said are used in virtually every modern digital camera, smartphone and tablet.

“I’ve talked to companies who will buy assets who said they were waiting for Kodak to go bankrupt to pay a better price,” said Baruah, the Brean Murray analyst.

In the last few years, Kodak has used extensive litigation with rivals such as Apple Inc, BlackBerry maker Research in Motion Ltd, South Korea’s Samsung Electronics Co and Taiwan’s HTC Corp over those patents as a means to try to generate revenue.

Among Kodak’s many creditors are retailers including Wal-Mart Stores Inc and Target Corp, and movie companies Sony Corp and Walt Disney Co.

Bank of New York Mellon Corp is the largest unsecured creditor, in its capacity as trustee for creditors, with more than $670 million of claims.

APOLLO 11

According to Kodak, George Eastman, a high-school dropout from upstate New York, founded the company in 1880 and began making photographic plates. To get his business going, he splurged on a second-hand engine to make the plates for $125.

Within eight years, the Kodak name had been trademarked, and the company had introduced the hand-held camera as well as roll-up film, where it became the dominant producer.

Eastman also introduced the “Wage Dividend” in which the company would pay bonuses to employees based on results.

Kodak went on to create famous cameras such as the Brownie, launched in 1900 and sold for $1, and the Instamatic in 1963.

The company on its website said a Kodak camera was used on the Apollo 11 mission in 1969. A Kodak camera was used by the astronauts to film the lunar soil from only inches away, according to NASA.

Kodak film has been used on 80 movies that have won Best Picture Oscars, according to the company.

Six years after Apollo 11, and not long after songwriter Simon told his mama not to take his Kodachrome away, Kodak invented the digital camera.

The size of a toaster, it was too big for the pockets of amateur photographers, whose pockets now are stuffed with digital offerings from the likes of Canon, Casio and Nikon.

But rather than develop the digital camera, Kodak put it on the back burner and spent years watching rivals take market share that it would never reclaim.

In 1994, Kodak spun off a chemicals business, Eastman Chemical Co, which proved to be more successful.

Kodak’s final downfall in the eyes of investors began in September when it unexpectedly withdrew $160 million from a credit line, raising worries of a cash shortage.

PENSIONS IN FOCUS

It remained unclear how Kodak will address its pension obligations, many of which were built up decades ago when U.S. manufacturers offered more generous retirement and medical benefits.

Many retirees hail from Britain, where Kodak has been manufacturing since 1891. The company had promised to inject $800 million over the next decade into its British pension plan.

McCorvey, the chief financial officer, said in court papers on Thursday that she expects the trustee for the British pension plan to have a “significant” general unsecured claim against the company.

The number of fake euro banknotes found in the second half of last year rose by 4.7 percent to 310,000 bills from the prior six months, the European Central Bank said Monday, though it hastened to add that the vast majority of euros were real.

“When compared with the number of genuine euro banknotes in circulation (on average 14.4 billion during the second half of 2011), the proportion of counterfeits remains very low,” the ECB said in a statement.

The 20 and 50-euros banknotes remain counterfeiters’ favorites, accounting for four out of five fake bills.

A group of demonstrators rally against the controversial Keystone XL oil pipeline outside President Barack Obama's fundraiser at the W Hotel in San Francisco, October 25, 2011.

WASHINGTON | Wed Jan 18, 2012 5:09pm EST

(Reuters) – The Obama administration on Wednesday rejected the Keystone crude oil pipeline project, a decision welcomed by environmental groups but blasted by the domestic energy industry.

U.S. President Barack Obama said TransCanada’s application for the 1,700-mile (2,740-km) pipeline was denied because the State Department did not have enough time to complete the review process.

“This announcement is not a judgment on the merits of the pipeline, but the arbitrary nature of a deadline that prevented the State Department from gathering the information necessary to approve the project and protect the American people,” Obama said in a statement.

With environmental groups concerned about carbon emissions from oil sands production, the administration in November delayed a decision on a presidential permit for the project until 2013.

But lawmakers that support the project attached a measure to a tax-cut law passed at the end of last year that set a February deadline for a decision.

His firm, facing demands from customers and other firms for cash, needed to sell billions of dollars in securities to raise the money. As the week progressed, MF Global executives came to believe that JPMorgan Chase & Co., one of MF Global’s primary bankers and a middleman moving that cash, was dragging its feet in forwarding the funds.

Corzine phoned Barry Zubrow, then JPMorgan’s chief risk officer, to question the slow payments. Corzine also called William Dudley, president of the Federal Reserve Bank of New York, to update him on MF Global’s status and told him that payments were slow to arrive from JPMorgan and others. Dudley said he’d monitor the situation.

The delays contributed to a serious cash shortage at MF Global, according to people familiar with the matter. These people say the firm started trading one day in late October with $600 million in cash and spent the whole day selling securities, only to end with just $200 million in cash.

By adhering to procedure and not cutting MF Global any slack, these people say, JPMorgan was able to slow the delivery of funds, worsening MF Global’s distress. As a result, they note, hundreds of millions of dollars of MF Global money may be still stuck in accounts at JPMorgan.

The details of MF Global’s trading, based on court documents and multiple interviews with people familiar with the situation, shed light on what could have happened to more than $600 million in customer funds at MF Global, which are still being sought by regulators nearly three months after the firm filed for bankruptcy protection on October 31.

An early sign that money was missing came as auditors from the CME Group Inc., which audited MF Global, combed through the company’s books in Chicago and New York, according to congressional testimony by CME executive chairman Terrence Duffy. After MF Global reported a quarterly loss on October 25, the CME had dispatched two auditors to the Chicago office to review customer accounts on October 27 – the first of several confusing days as auditors and regulators, working in Chicago and New York, tried to understand whether funds were intact.

In a statement last week , a JPMorgan spokeswoman said, “Our firm lost money because of MFG’s failure, and we are cooperating with the regulators with full transparency to assist their investigation.”

Through a spokesman, Corzine declined to comment.

To be sure, regulators have made no allegation of wrongdoing against JPMorgan, and there is no evidence that JPMorgan did anything improper. Indeed, it seems to have been simply following banking procedure, according to people familiar with the matter.

Futures trading firms and brokers like MF Global are heavily dependent on borrowing, which then exposes the big banks that lend to them was well as their trades. That gives banks like JPMorgan the ability to protect themselves in a crisis.

The transactions that JPMorgan handled are drawing increased scrutiny from regulators, a bankruptcy trustee and MF Global because understanding MF Global’s money flow could aid in identifying customer money flows, according to people familiar with the situation.

“They made things that are in normal times quite plain vanilla, easy things to do very difficult to do,” said a person involved in MF Global’s struggle, referring to JPMorgan. “What normally works well was taking forever because JPMorgan was dotting every ‘i’ and crossing every ‘t,’ and they were holding on to as much money as they possibly could under the law.”

JPMORGAN’S DUAL ROLE

The role that JPMorgan played as both a lender and middleman to MF Global illustrates the procedures banks can deploy to protect their own interests when dealing with weaker counterparties.

On one side of its ledger, JPMorgan and a syndicate of banks had lent MF Global $1.3 billion in its final week through a loan commitment the firm could draw down at any time. JPMorgan also was a primary banker for MF Global, a role that gave it significant insight into, and control over, MF Global’s accounts.

On the other side, JPMorgan was clearing some of the asset sales MF Global was making. In this role, its job was to take the securities from MF Global and the cash from the buyer and pass them along to the other party when the deal was complete .

Normally such trades can settle within a day or two, if the back-office mechanics function smoothly. But that week, the money didn’t arrive when MF Global executives expected, according to people familiar with the situation.

JPMorgan, a major lender to rival firms as well as one of Wall Street’s biggest middlemen in settling trades, has previously drawn scrutiny for protecting its own interests when rival firms ran aground. In 2008, a week before Lehman Brothers Holdings Inc. sought bankruptcy protection, JPMorgan demanded collateral to protect its role as counterparty to Lehman. While the request was not improper, Lehman’s bankruptcy estate later claimed Lehman posted the collateral because JPMorgan had threatened to withhold funding.

A Congressional panel that looked at the 2008 crisis, the Financial Crisis Inquiry Commission, investigated the events surrounding Lehman’s fall in a 2011 report. A JPMorgan official told the FCIC that the bank didn’t believe “the request put undue pressure on Lehman,” the report said. The FCIC didn’t draw a conclusion about the incident.

SLOW ON THE TRADE

When Corzine took the helm in 2010, MF Global was a little-known boutique futures trading firm. Corzine, who joined Goldman Sachs as a bond trader in 1975 and ultimately became chairman, also was a former U.S. Senator and former governor of New Jersey. He brought star power to the CEO role, and sought to increase MF Global’s profits. Among his trades was a series of purchases of deeply discounted European government debt. European Union leaders, he reasoned, would never allow the countries to default.

In September, MF Global said the Financial Industry Regulatory Authority had required the firm to bolster its capital.

On Monday, October 24, things took a turn for the worse when Moody’s Investors Service downgraded MF Global’s credit rating to one level above junk. A day later, MF Global reported its largest-ever quarterly loss.

By Wednesday, October 26, customers were demanding millions of dollars from accounts held at MF Global. To meet the sudden outflow, MF Global during the week of October 24 tapped the $1.3 billion loan commitment from a syndicate of banks led by JPMorgan.

MF Global also decided to sell $1.3 billion of IOUs known as commercial paper. The short-term debt was part of some $7 billion of securities the firm sold that week. But this sale was critical, people familiar with the situation said, because MF Global had used customer funds to invest in the short-term debt and now badly needed to liquidate the IOUs and move cash into the customer accounts to meet their demands. The investments in the IOUs were allowed by industry regulations, these people said.

For help, Corzine turned to his old employer, Goldman Sachs, which specializes in trading the short-term paper. Corzine phoned Goldman President Gary Cohn to ask him to buy the IOUs, offering a slight discount, according to people familiar with the situation.

Cohn agreed, and Goldman traders made the purchases, these people said. Because it needed the cash immediately, MF Global sought to settle the deal that day, according to Corzine’s testimony in Congress.

JPMorgan, in its role as middleman, was able to control the speed with which MF Global’s asset sales were processed, according to people familiar with the situation.

Two people familiar with the transaction say that JPMorgan was slow to process the trade. A spokeswoman for JPMorgan said the bank was not able to confirm the information about that specific trade. It remains unclear exactly whether cash from the sale was ultimately routed to MF Global.

On Thursday October 27, Moody’s downgraded MF Global again, this time to junk. At that point, “we were finished,” said a former employee in MF Global’s New York office.

While MF Global waited for the funds from JPMorgan, it frenetically tried to avoid a second cash demand generated by the second Moody’s downgrade. The downgrade sparked margin calls from trading partners. The New York Fed at one point issued its own margin calls.

To meet those demands, MF Global on October 28 undertook yet another set of asset sales totaling $4.5 billion. It sold the securities to JPMorgan, yet the bank was slow to settle this trade as well, according to people familiar with the situation. JPMorgan declined to confirm whether it bought the securities.

LOST CONFIDENCE

One thread regulators are now examining is how MF Global got hold of enough funds to cover an overdrawn account at JPMorgan. Corzine told a congressional panel that during the morning of October 28, “I was trying to sell billions of dollars of securities to JPMorgan Chase in order to reduce our balance sheet and generate liquidity. JPMorgan Chase told me that they would not engage in those transactions until overdrafts in London were cleaned up.”

To clear that hurdle, Corzine contacted MF Global’s back office in Chicago and told them to resolve the problem-ostensibly by routing money to JPMorgan. JPMorgan then asked whether a transfer of funds violated industry regulations. Corzine said that the Chicago office “explicitly confirmed to me that the funds were properly transferred.” Corzine said he assumed JPMorgan signed off because the bank then executed billions of dollars in trades.

People familiar with JPMorgan say that the bank had to contend with numerous issues in assisting MF Global with the asset sales, including the fact that some MF Global assets couldn’t immediately be sold.

As MF Global tried to complete the sales, MF Global officials and regulators, who were trying to untangle customer accounts in Chicago and New York, discovered a shortfall of cash in the customer accounts — including those that had once held MF Global’s commercial paper holdings.

“Despite our best efforts to sell assets and generate liquidity, the marketplace lost confidence in the firm,” Corzine said at a congressional hearing.

While it may appear that records for the trades would be clear, regulators say they have been stymied in tracing the money flowing to and from MF Global.

“They are circuitous money trails,” said Bart Chilton, a commissioner at the Commodity Futures Trading Commission, one of the agencies probing MF Global. “They are not simple linear transactions.”

“There were an extraordinary number of transactions during MF Global’s last few days and I do not know, for example, whether there were operational errors at MF Global or whether banks and counterparties have held onto funds that should rightfully have been returned to MF Global,” Corzine told a congressional panel in December

The concern for a clearing bank like JPMorgan is over exposure when it is extending a lot of credit, according to Craig Pirrong, a finance professor at the University of Houston.

JPMorgan, as a clearing bank, has the ability to take some actions to protect itself, but the bank “is going to undergo a lot of scrutiny,” Pirrong said. “Any action it takes to reduce its exposure comes into question when a bankruptcy is involved.”

“STOCK WAS TOAST”

MF Global, during the weekend before it filed bankruptcy proceedings, made one final push to sell more assets. In London, it tried to sell off short-term European bonds, according to one trader at a London bank.

But by then, MF Global had run out of time, this trader said. Tagged with a junk credit rating and unable to meet margin calls, the firm could no longer effectively function in the markets.

The firm’s stock, which hit $7.74 at the end of June, fell from $3.87 at the beginning of October to $1.20 on October 28, its final day of trading before it filed for bankruptcy protection.

“Their stock was toast,” the trader said.

What remains unclear is whether JPMorgan held on to the funds, and where the funds are now. People familiar with the situation suggest that the funds are still at JPMorgan.

Regulators and the bankruptcy trustee have not said. They say they are still trying to verify which customer accounts may have been tapped for funds during MF Global’s final hours.

Officials at Sweden’s tourism board agreed to hand over control of their @sweden Twitter feed in December to a different Swedish citizen each week.

The project — billed as “the world’s most democratic Twitter account” — has so far been hugely popular, featuring a female priest, an advertising executive and an organic sheep farmer.

Its 20,000 followers may be small in a social media world where Lady Gaga has almost 20 million, but those behind @sweden say it is one of a kind and has more than doubled its number of followers in just five weeks.

“In this age of internet and transparency, if you want to be credible, you have to let go of control and empower the people,” said Tommy Sollen, VisitSweden’s social media manager, who was part of the team that came up with the idea.

Sollen said the project, which will continue indefinitely, is less about boosting tourism and more about creating long-term branding for a nation that is often associated with tall blondes, meatballs and neutrality.

“We want to be seen as progressive, open, credible and truthful,” he said.

People from around the world have logged on in the past weeks to follow tweets and discussions that have covered everything from immigration to new and old music, food, alcohol and sobriety, religion and hunting.

“Gosh, I really enjoy being @sweden,” writes Hanna. “They’ll have to grab the account out of my dying hands.”

Sometimes @sweden talks about the weather, a popular topic in the Nordic country of 9 million, but other topics are harder hitting.

Anders Dalenius, the third Swede on the stand, kicked off his week with a photo of himself in the middle of the woods, decked out in bright orange hunting gear.

“Hi all! Im Anders and right now we’re hunting moose and wild boar. Join me!” he tweeted, sparking a huge debate over hunting.

This week, an upbeat 32-year-old who drives trucks and drinks too much coffee is tweeting on her breaks.

“Sweden won’t be a location as much as a state of mind,” Hanna told Reuters by phone before climbing into her 17-metre, 40-tonne truck on her way to Denmark and the Netherlands.

“I just am doing what I always do, writing about my life. Sometimes I write about politics and social welfare, but not with a true agenda. I mostly just express my own opinions when I see something that bothers me or I find interesting.”

Sollen said the guest tweeters have free rein, though they are asked to make clear that their views are their own.

Hasan Ramic, a Swedish immigrant who fled Bosnia in the early 1990s, was openly critical of the country’s foreign minister during his week as @sweden.

He describes himself as not trusting homogeneity.

“It strikes me as unnatural,” he said.

He would try to represent the more “colorful” side of Sweden — “the one I know.”

Relative to its size, Sweden has been among the top five nations in the European Union in taking in refugees and asylum-seekers, including those fleeing the Balkan wars of the 1990s and Iraq after the U.S. invasion.

Ramic also shared with his followers a link to what he said was Sweden’s national dish — the “kebabpizza” — calling it “a genius outcome of Swedish immigration policies.”

Co-founder and former CEO of Yahoo! Inc. Jerry Yang arrives for the announcement of a commitment pledge at the Clinton Global Initiative in New York in this September 22, 2010 file photo

SAN FRANCISCO | Tue Jan 17, 2012 9:27pm EST

(Reuters) – Yahoo Inc co-founder Jerry Yang has quit the Internet company he started in 1995, appeasing shareholders who had blasted the Internet pioneer for pursuing an ineffective personal vision and impeding investment deals that may have transformed the struggling company.

Yang’s abrupt departure comes two weeks after Yahoo appointed Scott Thompson its new CEO, with a mandate to return the once-leading Internet portal to the heights it enjoyed in the 1990s.

Wall Street views the exit of “Chief Yahoo” Yang as smoothing the way for a major infusion of cash from private equity, or a deal to sell off much of its 40-percent slice of China’s Alibaba, unlocking value for shareholders.

Shares of Yahoo gained 3 percent in after-hours trade.

“Everyone is going to assume this means a deal is more likely with the Asia counterparts,” Macquarie analyst Ben Schacter said. “The perception among shareholders was Jerry was more focused on trying to rebuild Yahoo, than necessarily on maximizing near-term shareholder value.”

“It certainly seems things are coming to a head as far as realizing the value of these assets.”

Yang – who is severing all formal ties with the company by resigning all positions including his seat on the board of directors – has come under fire for his handling of company affairs dating back to an aborted sale to Microsoft in 2008.

Yang’s exit comes roughly a month before dissident shareholders can nominate rival directors to Yahoo’s board.

The remaining nine members of Yahoo’s board, which includes Hewlett-Packard executive Vyomesh Joshi and private investor Gary Wilson, are all up for reelection this year.

Yang’s departure could be part of a broader board shakeup, said Ryan Jacob, chairman and chief investment officer of Jacob Funds, which owns Yahoo shares.

“If they don’t move quickly on these things, they run the risk of a proxy battle, and they are doing everything they can to avoid that.”

The company did not say where Yang was headed, or why he had suddenly resigned. CEO Thompson offered few clues in a memo to employees obtained by Reuters following the announcement.

“I am grateful for the support and warm welcome Jerry provided me in my early days here. His insights and perspective were invaluable, helping me to dig deeper – more quickly than I could have on my own – into some of the key elements of the company and how it operates.

Yang and co-founder David Filo, both of whom carry the official title “Chief Yahoo,” own sizable stakes in the company. Yang owns 3.69 percent of Yahoo’s outstanding shares, while Filo owns 6 percent, as of April and May 2011.

CHIEF YAHOO … NO LONGER

In a letter to Yahoo’s chairman of the board, Yang said he was leaving Yahoo to pursue “other interests outside of Yahoo” and was “enthusiastic” about Thompson as the choice to helm the company.

Yang, 43, is also resigning from the boards of Yahoo Japan and Alibaba Group Holdings.

Respected in the industry as one of the founding figures of the Web, Yang has come under fire from investors, and to some extent within the company’s internal ranks, over the years.

“Lots of people think he holds up innovation there with old ideas and (is) slow to decide; and that he’s not an innovator himself for being at such a high level,” said one former Yahoo employee.

“People have very high expectations for founders. Everyone wants a Steve Jobs,” the employee said, referring to Apple’s co-founder who brought the company back from near death and transformed it into the world’s most valuable tech company.

Some analysts say the Yahoo board’s indecision stems in part from Yang’s sway in the company. Disillusioned by the company’s flip-flopping, they warn that the rest of the board remained much the same as the one that rejected Microsoft’s unsolicited takeover bid when Yang was CEO.

“Jerry Yang was certainly an impediment toward anything happening,” said Morningstar analyst Rick Summer. “This is a company that’s been mired by a bunch of competing interests going in different directions. It was never clear what this board’s direction has been.”

Microsoft’s bid was worth about $44 billion. Its share price was subsequently pummeled by the global financial crisis and its current market value stands at about $20 billion.

More recently, Yang and Yahoo chairman Roy Bostock have incurred the wrath of some major Yahoo shareholders for their handling of the “strategic review” the company was pursuing, in which discussions have included the possibility of being sold, taken private or broken up.

Yang’s efforts to seek a minority investment in Yahoo from private equity firms enraged several large shareholders including hedge fund Third Point, which accused Yang of pursuing a deal that was in “his best personal interests” but not aligned with shareholders’.

Yahoo has also been exploring a deal to unload most of its prized Asian assets in a complex deal valued at roughly $17 billion, sources told Reuters last month.

“I had thought that Jerry Yang was a lifer at Yahoo,” said Susquehanna analyst Herman Leung. “Without him on the board, this could smooth a potential transaction. What that transaction is, is any of our guesses right now.”