Month: February 2009

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Grey Area Anatomy: Tax Exemptions for Nonprofit Hospitals

I.  Introduction

A key battle over America’s healthcare future is being fought in one of the most unlikeliest of places: Urbana, Illinois.  Scheduled for argument in front of the Illinois Supreme Court in mid-2009, Provena Covenant Medical Center v. Department of Revenue is poised to set the bar regarding the tax exempt status of nonprofit hospitals.[1] Nonprofit hospitals, such as Provena, account for near sixty percent of the hospitals in the U.S., while the others are either for-profit or government-owned.[2] Oddly, these nonprofit hospitals are actually faring better than their for-profit counterparts. Seventy-seven percent of the 2033 U.S. nonprofit hospitals are “in the black”, while sixty-one percent of for-profit hospitals are profitable.[3] One of the reasons for such high success rates is the ability of non-profit hospitals to receive significant tax exemptions. The Congressional Budget Office reported in 2006 that nonprofit hospitals receive an estimated $12.6 billion in annual tax … Read the rest

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Weekend at Bernie’s

I. Introduction

The past few months have seen numerous financial frauds
uncovered. Two of these frauds are
particularly noteworthy. On December 11th,
2008, the largest of these financial frauds was unveiled when Bernard Madoff
admitted to a $50 billion fraud through his firm, Madoff Securities.[1] On February 17th, the Securities
and Exchange Commission (SEC) filed charges against Stanford International Bank
relating to an allegedly fraudulent $8 billion certificate of deposit (CD)
scheme.[2] Other alleged frauds have come to light,
often in highly publicized and dramatic fashion.[3] These frauds suggest something is amiss in the markets.

In the midst of the current economic crisis, these alleged
financial frauds have further destabilized a badly shaken market. While fraud is an unfortunate fact of the
market, the allegations against Madoff and Stanford paint a picture of frauds
that have reached massive proportions and that have been ongoing for
years. The intention of this … Read the rest

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The Wall Street Bonus Culture: Well-Deserved Benefit or Unnecessary Waste?

Recent headlines that Wall Street investment banking executives have received billions of dollars in bonuses, just months after the federal government has given these same firms billions of dollars in bailout money, has greatly increased skepticism about acceptable methods of awarding bonuses. [1]  President Obama condemned the awarding of these exhobirtant bonuses. "That is the height of irresponsibility. It is shameful. And part of what we're going to need is for the folks on Wall Street who are asking for help to show some restraint and show some discipline and show some sense of responsibility." [2] However, many individuals on the flip side of the coin believe these bonses are imperative to the success of the banking business. [3] This article will discuss the arguments for and against seemingly inflated bonus plans by delving into the most common types of compensation plans and their relation to the current economic crisis on Wall Street.

 

In order … Read the rest

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SAG Power Struggle Spills Into Court Amidst Talk of Strike

I. Introduction

In February 2008, when the Writers Guild of America (WGA) ended the acrimonious three-month strike that crippled American television production, a sense of relief spread throughout the entertainment industry.[1]  Hollywood studios had achieved three years of labor peace with writers, television production would resume, and the Oscars could air undisturbed.[2]  Any feelings of elation were short-lived, however, as the industry collectively turned its head toward the impending expiration of the Screen Actors Guild (SAG) contract that summer.[3]  Despite the express desire of both parties to avoid a reprise of the writers’ strike, the June 30 expiration date came and went without a new agreement between SAG and the Alliance of Motion Picture and Television Producers (AMPTP).[4]  SAG members have now been working under an expired contract for over seven months, with the threat of another strike persistently looming.[5]  Further complicating matters has been a power struggle between hardliners … Read the rest

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Storm Ahead for Sirius XM Merger

I. Introduction  

            On July 25, 2008 the Federal Communications Commission (“FCC”) approved the XM Satellite Radio and Sirius Satellite Radio merger voting 3-2 to approve the deal without imposing many restrictions on the combined entity.[1] Critics of the merger asserted that the combination of two principal satellite radio companies would result in a monopoly.[2] The FCC recognized that the Internet age has revolutionized how individuals obtain and listen to music opening the market to a variety of competition.[3] However, the question remains whether the Sirius XM Radio merger will survive. On July 25, 2009, the day of the announcement of the merger, Sirius shares plunged 43% and XM stock declined 40%. Recently, reports indicate that Sirius XM Radio is preparing to file bankruptcy.[4] This article will analyze the state of Sirius XM Radio as well as give recommendations to Sirius XM radio on … Read the rest

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Ticketmaster’s Legal Woes

I.  Introduction
 

For many, Ticketmaster Entertainment Inc. (Ticketmaster) is the first place that people look when they want tickets to an event.  It is the largest and most well-known broker of event tickets in the industry.  Ticketmaster sells tickets for more than 80% of the major arenas and stadiums in the U.S. [1] However, it has come recently been hit with a $500 million lawsuit in Toronto, Canada, after fans complained that Ticketmaster was deliberately directing customers into its subsidiary site, TicketsNow in violation of anti-scalping laws. [2]  Not only is Ticketmaster now facing this class-action lawsuit, but it also is in danger of being hit with charges by the Canadian as well as the U.S. government.[3]  Compounded with the recent backlash against its new merger with LiveNation, Ticketmaster is currently facing a host of legal problems.[4]
 

II.  The Canadian Class-Action Lawsuit
 

The lawsuit began with one

… Read the rest