Tell-All on the Internet Fells Chinese Official

BEIJING — Viewed through the lens of the Marxist tenets he so arduously promoted, Yi Junqing’s transactional relationship with an ambitious female researcher would have probably fallen into the category of exploitive.

Mr. Yi, 54, an impish scholar who is China’s top guardian of Communist literature, is said to have provided the woman with a fellowship at his research institute in exchange for $1,600. The sex and jewelry came later.

The allegations came to light last month after the woman, Chang Yan, 34, posted online a self-indulgent and occasionally scintillating diary that recounted a yearlong affair between the two married scholars. A few days later, Ms. Chang tried to retract her sprawling tell-all but the damage was done.

On Thursday Mr. Yi, director of the Central Compilation and Translation Bureau, was dismissed from his job. Xinhua, the state news agency, kept its dispatch brief and clean: Mr. Yi, it said, was let go over “lifestyle issues.”

In a season when dozens of ethically challenged Chinese officials have been felled by their lust for women, money and luxury timepieces, the downfall of Mr. Yi prompted a hearty round of snickering and schadenfreude, and not only because his vice minister rank made him one of the more senior party members to lose his job over official malfeasance.

“People have come to treat such news as entertainment, but that’s only because we feel so helpless,” said Zhu Ruifeng, a muckraking journalist who specializes in the misdeeds of Chinese officials.

Mr. Yi’s main job, after all, was to propagate the leftist and often puritanical teachings of Mao Zedong and other Communist luminaries at a time when many Chinese have grown disenchanted by the seeming lack of rectitude among their leaders. The headline in the Qianjiang Evening News of Hangzhou seemed to sum up the public’s disgust: “Mouthful of Marxism-Leninism, Mind Full of Filth and Vice.” The commentary went on to lambast Mr. Yi for selling positions at his institute, which has a staff of nearly 300 and is charged with translating Marxist tracts into Chinese and Chinese government documents into a number of foreign languages.

Even if party leaders ultimately tossed Mr. Yi overboard, it was the Internet that sealed his fate. Over the past two months, a parade of corrupt officials have been exposed by enterprising journalists, anonymous tipsters — or in Mr. Yi’s case, jilted lovers.

Recent cases include the relatives of a housing official in Henan Province who had collected 31 properties and a deputy mayor in Guangdong Province who was fired and placed under investigation after his cozy ties to a local drug gang were publicly revealed by a disgruntled underling.

Given China’s normally tight censorship restrictions, some analysts have suggested that the spate of scandals appearing online are a sign the new leadership is committed to fighting corruption in the party. During his inaugural address in November, Xi Jinping, the new Communist Party chief and incoming president, warned that unchecked graft threatened to destroy the party.

Indeed, Xinhua, on its microblog account, tried to put a positive spin on the latest scandal, saying “The resolute management of problematic officials shows the determination of the party’s fight against corruption.”

Judging from the deluge of biting commentary on Sina Weibo, the Chinese equivalent of Twitter, not many people were convinced. “The shameful step-down of this minister-level official once again proves the Internet wisdom: rumors are but prophesies,” Xue Manzi, a well-followed businessman, wrote on his microblog.

When it comes to Chinese-style scandal, Mr. Yi’s transgressions — at least those alleged by his former lover — are not particularly spectacular. He seems to have had a fondness for sushi and sake, and for lunchtime tête-à-têtes at a Beijing hotel with Ms. Chang — 17 of them, by her count.

She described a man who enjoyed talking politics, but also about his own achievements. “I am quite talented after all,” he supposedly said after recounting the favorable impression he made on Mr. Xi, the party chief. Ms. Chang does not exactly come off as a naïf. After bribing him with Swarovski baubles, a bottle of Boss cologne and an additional $8,000, she said she grew angry when Mr. Yi failed to secure her a permanent position at his institute. She was also not pleased to learn he had other lovers. In the end, she admits she tried to blackmail him, demanding nearly $50,000 to leave him alone.

After the diary’s release, Ms. Chang tried to backpedal, saying she was depressed and nearly delusional from working too much when she wrote its 100,000 characters. “In my spare time I put together a work of fiction,” she said.

Patrick Zuo contributed research.

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DealBook: Michael Dell’s Empire in a Buyout Spotlight

The computer empire of Michael S. Dell spreads across a campus of low-slung buildings in Round Rock, Tex.

But his financial empire — estimated at $16 billion — occupies the 21st floor of a dark glass skyscraper on Fifth Avenue in Manhattan.

It is there that MSD Capital, started by Mr. Dell 15 years ago to manage his fortune, has quietly built a reputation as one of the smartest investors on Wall Street. By amassing a prodigious portfolio of stocks, companies, real estate and timberland, Mr. Dell has reduced his exposure to the volatile technology sector and branched out into businesses as diverse as dentistry and landscaping.

Now, Mr. Dell is on the verge of making one of the biggest investments of his life. The 47-year-old billionaire and his private equity backers are locked in talks to acquire Dell, the company he started with $1,000 as a teenager three decades ago, in a leveraged buyout worth more than $20 billion. MSD could play a role in the Dell takeover, according to people briefed on the deal.

The private equity firm Silver Lake has been in negotiations to join with Mr. Dell on a transaction, along with other potential partners like wealthy Asian investors or foreign funds. Mr. Dell would be expected to roll his nearly 16 percent ownership of the company into the buyout, a stake valued at about $3.5 billion. He could also contribute additional personal money as part of the buyout.

That money is managed by MSD, among the more prominent so-called family offices that are set up to handle the personal investments of the wealthy. Others with large family offices include Bill Gates, whose Microsoft wealth financed the firm Cascade Investment, and New York’s mayor, Michael R. Bloomberg, who set up his firm, Willett Advisors, in 2010 to manage his personal and philanthropic assets.

“Some of these family offices are among the world’s most sophisticated investors and have the capital and talent to compete with the largest private equity firms and hedge funds,” said John P. Rompon, managing partner of McNally Capital, which helps structure private equity deals for family offices.

A spokesman for MSD declined to comment for this article. The buyout talks could still fall apart.

In 1998, Mr. Dell, then just 33 years old — and his company’s stock worth three times what it is today — decided to diversify his wealth and set up MSD. He staked the firm with $400 million of his own money, effectively starting his own personal money-management business.

To head the operation, Mr. Dell hired Glenn R. Fuhrman, a managing director at Goldman Sachs, and John C. Phelan, a principal at ESL Investments, the hedge fund run by Edward S. Lampert. He knew both men from his previous dealings with Wall Street. Mr. Fuhrman led a group at Goldman that marketed specialized investments like private equity and real estate to wealthy families like the Dells. And Mr. Dell was an early investor in Mr. Lampert’s fund.

Mr. Fuhrman and Mr. Phelan still run MSD and preside over a staff of more than 100 overseeing Mr. Dell’s billions and the assets in his family foundation. MSD investments include a stock portfolio, with positions in the apparel company PVH, owner of the Calvin Klein and Tommy Hilfiger brands, and DineEquity, the parent of IHOP and Applebee’s.

Among its real estate holdings are the Four Seasons Resort Maui in Hawaii and a stake in the New York-based developer Related Companies.

MSD also has investments in several private businesses, including ValleyCrest, which bills itself as the country’s largest landscape design company, and DentalOne Partners, a collection of dental practices.

Perhaps MSD’s most prominent deal came in 2008, in the middle of the financial crisis, when it joined a consortium that acquired the assets of the collapsed mortgage lender IndyMac Bank from the federal government for about $13.9 billion and renamed it OneWest Bank.

The OneWest purchase has been wildly successful. Steven Mnuchin, a former Goldman executive who led the OneWest deal, has said that the bank is expected to consider an initial public offering this year. An I.P.O. would generate big profits for Mr. Dell and his co-investors, according to people briefed on the deal.

Another arm of MSD makes select investments in outside hedge funds. Mr. Dell invested in the first fund raised by Silver Lake, the technology-focused private equity firm that might now become his partner in taking Dell private.
MSD’s principals have already made tidy fortunes. In 2009, Mr. Fuhrman, 47, paid $26 million for the Park Avenue apartment of the former Lehman Brothers chief executive Richard S. Fuld. Mr. Phelan, 48, and his wife, Amy, a former Dallas Cowboys cheerleader, also live in a Park Avenue co-op and built a home in Aspen, Colo.

Both are influential players on the contemporary art scene, with ARTNews magazine last year naming each of them among the world’s top 200 collectors. MSD, too, has dabbled in the visual arts. In 2010, MSD bought an archive of vintage photos from Magnum, including portraits of Marilyn Monroe and Mahatma Gandhi, and has put the collection on display at the University of Texas, Mr. Dell’s alma mater.

Just as the investment firms Rockefeller & Company (the Rockefellers, diversifying their oil fortune) and Bessemer Trust (the Phippses, using the name of the steelmaking process that formed the basis of their wealth) started out as investment vehicles for a single family, MSD has recently shown signs of morphing into a traditional money management business with clients beside Mr. Dell.

Last year, for the fourth time, an MSD affiliate raised money from outside investors when it collected about $1 billion for a stock-focused hedge fund, MSD Torchlight Partners. A 2010 fund investing in distressed European assets also manages about $1 billion. The Dell family is the anchor investor in each of the funds, according to people briefed on the investments.

MSD has largely remained below the radar, though its name emerged a decade ago in the criminal trial of the technology banker Frank Quattrone on obstruction of justice charges. Prosecutors introduced an e-mail that Mr. Fuhrman sent to Mr. Quattrone during the peak of the dot-com boom in which he pleaded for a large allotment of a popular Internet initial public offering.

“We know this is a tough one, but we wanted to ask for a little help with our Corvis allocation,” Mr. Fuhrman wrote. “We are looking forward to making you our ‘go to’ banker.”

The e-mail, which was not illegal, was meant to show the quid pro quo deals that were believed to have been struck between Mr. Quattrone and corporate chieftains like Mr. Dell — the bankers would give executives hot I.P.O.’s and the executives, in exchange, would hold out the possibility of giving business to the bankers. (Mr. Quattrone’s conviction was reversed on appeal.)

The MSD team has also shown itself to be loyal to its patron in other ways.

On the MSD Web site, in the frequently asked questions section, the firm asks and answers queries like “how many employees do you have” and “what kind of investments do you make.”

In the last question on the list, MSD asks itself, “Do you use Dell computer equipment?” The answer: “Exclusively!”

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This post has been revised to reflect the following correction:

Correction: January 18, 2013

An earlier version of this article misstated when an MSD affiliate raised money from outside investors for a hedge fund. It was last year, not earlier this year. The article also misstated which hedge fund and its focus. It was MSD Torchlight Partners, a stock-focused hedge fund, not MSD Energy Partners, an energy-focused hedge fund.

A version of this article appeared in print on 01/18/2013, on page B1 of the NewYork edition with the headline: Michael Dell’s Empire In a Buyout Spotlight.

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The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring

Andrea Mohin/The New York Times

John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.

Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.

For the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.

Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.

2012-13 Campaign

Previously recorded:

$6,865,501

Recorded Wed.:

16,711

*Total:

$6,882,212

Last year to date:

$6,118,740

*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.

“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”

Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.

Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.

The operation was a success, but then came the bills.

“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.

The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.

The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.

“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”

When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.

Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.

Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.

On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.

Neither one knows what the next step will be, however, and the stress has been eating at them.

“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”

Read More..

The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring

Andrea Mohin/The New York Times

John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.

Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.

For the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.

Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.

2012-13 Campaign

Previously recorded:

$6,865,501

Recorded Wed.:

16,711

*Total:

$6,882,212

Last year to date:

$6,118,740

*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.

“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”

Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.

Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.

The operation was a success, but then came the bills.

“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.

The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.

The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.

“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”

When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.

Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.

Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.

On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.

Neither one knows what the next step will be, however, and the stress has been eating at them.

“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”

Read More..

DealBook: Morgan Stanley's $481 Million 4th-Quarter Profit Beats Estimates

8:23 a.m. | Updated

Morgan Stanley reported adjusted earnings for the fourth quarter on Friday that beat analyst estimates, driven by gains in wealth management and stock trading.

Including charges, the firm had a fourth-quarter profit of $481 million, or 25 cents a share. That compares with a per-share loss of 15 cents in the year-ago period. The results seem to please investors. Morgan Stanley shares are up 6.4 percent in premarket trading.

The results, however, were affected by one-time accounting charges related to the firm’s credit spreads. Excluding those charges, the firm had a profit of 45 cents a share. That handily beat the estimates of analysts polled by Thomson Reuters, which had estimated a profit of 27 cents a share.

Morgan Stanley’s revenue came in at $7 billion in the fourth quarter, up 23 percent from the year-ago period.

Morgan Stanley’s chief executive, James P. Gorman, said in a release that Morgan Stanley had reached a “pivot point” in its turnaround strategy, which has been underway since the financial crisis when the firm’s operations were badly damaged. “Our firm is now poised to reach the returns of which it is capable on behalf of our shareholders,” he said.

The results are good news for Mr. Gorman, who has been working since the financial crisis to retool Morgan Stanley by shifting its focus away from potentially riskier businesses like trading and into steadier less capital-intensive areas like wealth management. While he has notched some successes, the company still faces challenges.

Notably, the firm has reduced the size of its fixed department in the wake of ratings downgrades and new regulatory requirements, both of which have forced it to hold more capital against riskier trading activities, reducing profitability. This month, it laid off 1,600 employees, many of them in fixed income.

Excluding the debt charge, institutional securities, which included fixed income and banking, had revenue of $3.5 billion, compared with $1.9 billion in the same quarter in 2011. The fixed income sales and trading unit reported adjusted revenue of $811 million, compared with a loss of $493 million in the year-ago period.

This week Morgan Stanley and other Wall Street firms notified employees of their 2012 compensation. Morgan Stanley set aside $15.62 billion for compensation, or about 60 percent of its 2012 revenue. This compares with 2011, when just 51 percent of revenue was allotted for compensation and benefits.

The high ratio of compensation as a percentage of revenue could raise eyebrows on Wall Street. In 2010, Mr. Gorman said that Morgan Stanley’s compensation rate of 62 percent that year was a “historic high” that no one on his management team “will ever see again.” He indicated that the rate should be no higher than 50 percent.

Earlier this week, Goldman Sachs posted profit of $5.60 a share, which outpaced analyst expectations. Citigroup, Wells Fargo and JPMorgan Chase have also recently reported stronger year-over-year earnings.

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IHT Rendezvous: Is Something Toxic Buried in China's Financial System?

BEIJING — China’s economy, whizzing ahead as the West struggles, seems quite remarkable. Perhaps a little too remarkable? Like many things too good to be true, is it all a little, well, too good to be true?

There will be the yea- and nay-sayers in any debate, and China’s economy provokes plenty of both. So here’s the “yea” side: the forces of urbanization and industrialization unleashed here in the 1970s after the death of Mao Zedong represent a historically singular phase that still has a way to go.

Here’s the “nay” side: that’s true, but we need to look at what’s actually happening in China’s financial system — is it safe? The trouble is, that system is mostly hidden from the outside world by a combination of language difficulty and the pitch-dark opacity that envelops much important business here. What’s interesting about the “nay” argument is that increasingly, it’s Chinese media and some prominent Chinese economists who are making it.

And of course all of this matters to the world because China is by now deeply part of the global economy, so what happens here affects everyone.

A Hong Kong online magazine that follows the Chinese-language debate closely recently presented a clear argument: among key concerns about China’s financial system are wealth management products offered by “trust companies,” part of the shadow banking system that operates outside the official banking sector but is entwined with it.

As Week in China wrote recently: “Analysts worry that the trust firms (and their wealth management products) could provide an explosive element to China’s financial landscape — much as toxic CDO’s made the American system vulnerable.”

CDO’s, of course, are collateralized debt obligations, those complicated financial tools that spurred unhealthy debt and lending in the United States, causing shocks that spread around the world when the system collapsed in 2007. (This graphic makes them as simple as possible.)

For some time, Chinese-language media have been looking at the scene, with outlets such as the 21st Century Business Herald and the National Business Daily leading the way.

Spurring concern was a recent remark by Xiao Gang, the chairman of the Bank of China, that the way trust companies were run was, potentially, “fundamentally a Ponzi scheme.” (The report is in English.)

It is difficult to measure the amount and value of wealth management products in circulation in China, wrote Mr. Xiao. (Mr. Xiao has been a proponent of Chinese banks vigorously investing overseas.)

“KPMG reports that trust companies will soon overtake insurance to become the second-largest sector in the Chinese financial industry. According to a report by CN Benefit, a Chinese wealth-management consultancy, sales of WMP’s soared 43 percent in the first half of 2012 to 12.14 trillion yuan,” or $1.9 trillion, he wrote.

Either way, there are now “more than 20,000” wealth management products in circulation, “a dramatic increase from only a few hundred just five years ago.”

“Given that the number is so big and hard to manage, China’s shadow banking sector has become a potential source of systemic financial risk over the next few years,” wrote Mr. Xiao. “Particularly worrisome is the quality and transparency of WMP’s. Many assets underlying the products are dependent on some empty real estate property or long-term infrastructure, and are sometimes even linked to high-risk projects, which may find it impossible to generate sufficient cash flow to meet repayment obligations.”

The details are complex. But Week in China’s conclusion is this: “WiC suspects — along with swathes of the Chinese press — that the trusts and their wealth management products have now intertwined to become the weakest link in the Chinese financial system. In recent weeks it’s become clearer that these obscure institutions have waded into some wayward financial positions,” with certain companies, such as Zhongrong Trust and Shangdong International Trust, particularly involved.

“The question now is whether this might lead to a broader crisis,” the magazine wrote.

“On balance that may still be a way off,” it wrote.

As long as the economy expands at close to 8 percent a year, “the trusts may be able to ‘grow’ out of their bad assets. But if one of the major players collapses, the dynamic may be much more explosive. As Charles Ponzi well understood, confidence is everything,” it concluded.

Last week, several Chinese-language media reported the big four state banks had stopped selling trust company products to clients in Beijing and were scaling back in Guangzhou. “The official clampdown on the trusts might already have begun,” wrote Week in China.

Read the story and see what you think: Is China veering towards a U.S.-style financial crisis, or will it take action and avoid one? Or is the concern overblown?

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Gadgetwise Blog: Q&A: Moving from Hotmail to Outlook.com

I want to switch my Hotmail account to an Outlook.com account, but will I have to change my e-mail address?

Even if you switch your Hotmail account to the newer mail system at Outlook.com, Microsoft says you can still keep the old @hotmail.com address. (Users with the @live.com or @msn.com accounts can also switch to Outlook.com and keep their original addresses.) You also have the option of adding an @outlook.com address, as Microsoft outlines here.

To make the move from Hotmail to Outlook.com, log into your Hotmail account, click Options and choose “Free Upgrade to Outlook.com.” Your Hotmail account page should convert to the white Outlook.com page. In addition to keeping the same address, your password and old mail are saved after you switch.

The Outlook.com site should work with recent versions of most browsers, including Internet Explorer 8 and later, Mozilla Firefox 10 and later, Google Chrome 17 and later, and Safari 5.1 and later for the Mac. Older browsers may not display the site properly, or will not work with it at all. (You can also continue using your account with a standalone mail program, as long as you have the correct settings.)

Microsoft plans to automatically move all Hotmail accounts over to Outlook.com. The company describes the process as “gradual,” but says Hotmail users due for the upgrade will be notified in advance.

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The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

1. Their Social Security number.
2. The 12-digit federal benefit number found on their checks.
3. The amount of the most recent check.
4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

1. Their Social Security number.
2. The 12-digit federal benefit number found on their checks.
3. The amount of the most recent check.
4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.

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Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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Claims for Jobless Benefits Drop

WASHINGTON — The number of Americans filing new claims for unemployment benefits tumbled to a five-year low last week, while housing starts surged, the government said Thursday in a pair of new economic reports.

Initial claims for state unemployment benefits fell 37,000 to a seasonally adjusted 335,000, the lowest level since January 2008 and the largest weekly drop since February 2010, the Labor Department said.

The previous week’s figure was revised to show 1,000 more applications than previously reported.

While last week’s decline ended four straight weeks of increases, it is probably not the start of a new trend or a sign of a material shift in labor market conditions as claims tend to be volatile around this time of the year because of large swings in the model used by the department to iron out seasonal fluctuations.

A Labor Department analyst said the model had expected a large increase in claims last week, but the actual number of filings only showed a modest increase, leading to a big decline in the seasonally adjusted figure.

The four-week moving average for new claims, a better measure of labor market trends, fell 6,750 to 359,250, suggesting some improvement in underlying labor market conditions.

The claims data covered the survey week for January’s nonfarm payrolls. Job growth has been gradual, with employers adding 155,000 new positions in December. The unemployment rate held steady at 7.8 percent last month.

The claims report showed the number of people still receiving benefits under regular state programs after an initial week of aid increased 87,000 to 3.21 million in the week ended Jan. 5. The four-week average of the so-called continuing claims was the lowest since July 2008.

In a separate report, the Commerce Department said Thursday that groundbreaking to build new homes surged 12.1 percent last month to a 954,000-unit annual rate.

It was the fastest pace since June 2008, supporting the view that housing is poised to provide a substantial boost to the U.S. economy. But data for housing starts can be volatile and is sometimes subject to large revisions. The government revised downward its estimate for November housing starts, for example, to a 851,000-unit rate from the originally reported 861,000.

Some of the strength in December’s reading for starts came from a 20.3 percent surge in multi-unit construction; that component is especially volatile.

Thursday’s report nonetheless builds on a trend in growth that has led many analysts to expect residential construction bolstered the economy last year for the first time since 2005.

Permits for future home construction edged higher to a 903,000-unit rate, the quickest since July 2008. Groundbreaking for single-family homes, the largest segment of the market, climbed 8.1 percent last month to a 616,000-unit pace.

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