Banking Scandal or Ben Affleck Movie?; Airline Ranks and Tanks; Drones to the Rescue

Who gets the movie rights?

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The latest scandal to come out of the banking world has its very own name – “The Panama Papers.” It seems a Panamanian law firm called Mossack Fonseca helped a slew of politicians, celebrities, businessman etc. to create offshore accounts and shell companies for the last forty years. It’s estimated that 500 banks all over the world enlisted the help and resources of Mossack Fonseca to help them set up these shell companies since 1977. Fast forward to a year ago when an anonymous source leaked some 11 million documents to Germany’s biggest newspaper, Suddeutsche Zeitung, which then enlisted the help of the International Consortium of Investigative Journalists. The ICIJ shared information and hunted down leads for over a year in an effort to publicize “The Panama Papers” that contain information on some 214,000 offshore companies. The documents also have plenty of unflattering details about Russian President Vladimir Putin, FIFA officials and over 30 other people and companies that are blacklisted by the U.S. government. These include people indicted for corruption and have ties to drug trafficking and terrorism. Strangely enough, Mossack Fonseco only seems to know the true identities of just over 200 companies out of the over 14,000 that the firm managed to incorporate just in the Seychelles. Now banks across Europe find themselves under the microscope as regulators try to establish if and how those banks found ways to hide assets. The Kremlin, ironically, is calling the allegations “a series of fibs” and thinks its just an attempt to thwart Putins chances in upcoming elections, which are said to be rigged anyway. FIFA, another group that could use a lesson or two on business ethics, called the allegations “ridiculous.” To be fair, it’s not clear to certain people that any actual illegal activity occurred. Of course the banks denied any wrongdoing while Mossack Fonseca calls itself the victim of a data breach.

Bumpy landing…

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Results are in for the Airline Quality Rating and you might just be surprised. Or not. Virgin America took the top spot, even earning the best score in the baggage handling rate category. While Virgin America no doubt takes pride in getting the best ranking, Sir Richard Branson is not exactly celebrating considering Alaska Airlines is buying him out for $2.6 billion. Alaska Airlines, by the way, is paying $57 in cash per share, – a 47% premium over Virgin America’s closing price on Friday. Incidentally, Alaska Airlines came in fifth, though it was ranked highest when it came to fewest customer complaints. But it is anyone’s guess how this buyout will impact Virgin America’s rating next year. In any case, JetBlue came in at number two with Delta, shockingly enough, earning a very respectable third place ranking. Overall industry performance improved slightly. Really slightly. Six carriers actually improved, while another six did not. Spirit came in dead last, but in all fairness, Spirit is new to the list. Also in all fairness, Spirit ranked the highest in customer complaints, which makes sense considering that its culture is best described as “take it or leave it.” Amerian Airlines plunged three spots from last year to number 10. Which sounds about right. American, by the way, is the largest carrier in the world, just not on the United States. United is and yet it doesn’t exactly boast an enthusiastic following. Hawaiian Airlines ranked number one for on-time performance. And that’s really great. Especially if you’re going to Hawaii. Which unfortunately, I am not.

Start-up STAT…

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Bay Area start-up Zipline just scored $18 million in funding  – but not from just any investors.  Microsoft co-founder Paul Allen and Yahoo Founder Jerry Yang saw fit to plunk down tons of cash for the drone company but the question is: what makes this drone company different from all the other drone companies? At least for Paul Allen and Jerry Yang. I suppose it has something to do with the fact that Zipline founder Keller Rinaudo is using his drone technology not for delivering books and groceries, but rather to save lives in third-world countries. Zipline’s drones will be delivering blood and much-needed medical supplies to remote, hard-to-reach areas in Rwanda. Rinaudo, a Harvard-trained scientist said that there is “nothing more precious than blood and medicine” and plans on making those items much more accesible than they have ever been. He also wisely pointed out: “Getting medicine to remote places is both a huge market and a global challenge.” As of now places in Rwanada get resupplied a few times a year. But Rinaudo is planning for his drones to make up to 150 drops a day come July. The government of Rwanda is footing the bill to make that happen. And unlike many other types of drones that can’t operate properly in inclement weather, Zipline’s drones can, are able to carry up to 3.5 lbs. and fly within a 75 mile range. Considering that Rwanda is one of the poorest nations in the world, it will become the first country to employ commercial drone delivery, all while Amazon and other companies continue fighting regulatory battles and FAA hurdles.

 

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Michael Bolton: IRS = Anus of Our Country; NY AG Schneiderman Takes Issues With Shifty Shift Practices; Rank and File: Airlines Get Graded

How am I supposed to live without you?

Image courtesy of hywards/FreeDigitalPhotos.net

Image courtesy of hywards/FreeDigitalPhotos.net

With tax day on Wednesday, John Oliver, host of HBO’s Last Week Tonight thoughtfully explained our national aversion to taxes and the IRS: namely, they involve “someone taking our money and math.” To further complicate things and strengthen our aversion, Congress has drastically cut funding to the IRS, causing activity at the agency to come to an almost virtual standstill. Mr. Oliver urged us to redirect our anger, rage and frustration at Congress and not the folks at the IRS who perform “a dangerously boring job.” So what better way to pay tribute to the IRS than to call it the “anus of our country” which is precisely what, crooner Michael Bolton did, on John Oliver’s show, when he sang a not-so-moving ballad that was sort of meant to be a show  “… of reluctant support for their appropriate funding.”  To help taxpayers truly grasp the anus/IRS comparison, Mr. Oliver articulately explained that we should, “Think of our government as a body. The IRS is the anus: It’s nobody’s favorite part, but you need that thing working properly or everything goes to s–t real quick.” Pure poetry.

Oh shift!

Image courtesy of  iosphere/FreeDigitalPhotos.net

Image courtesy of iosphere/FreeDigitalPhotos.net

More than a dozen retailers are getting probed for some shifty shift scheduling practices that are not only downright rude, but according to New York Attorney General Eric Schneiderman, might just be illegal, as well. The practice in question, dubbed”on-call shifts” basically lets hourly wage employees know if they will be working only hours before they need to show up for work. The practice is not cool for so many reasons. First, for many employees, the practice does not give them ample time to make care-giving arrangements for children and and elders in their care. “On-call shifts” also don’t allow for employees to make other arrangements for alternative sources of income.  If an employee reports for work for which they had been scheduled, then according to New York State law, that employee is entitled to be paid for four hours of work at basic minimum wage. Some of the big retailers who were sent letters about their shift scheduling practices include Target, The Gap, Abercrombie & Fitch, J.C. Penney and J. Crew.

Would you like some pretzels with that?

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Image courtesy of bplanet/FreeDigitalPhotos.net

The 25th annual Airline Quality Report is out and the least shocking observation on it is Virgin America taking the top spot for the third year in a row. If you’ve ever flown Virgin America, and also American Airlines, then you’ll clearly see why Virgin America gets the top spot while American – which merged with US Airways – doesn’t. However, American still managed to snag the number seven spot. A bit high, if you ask me. In fact, I am shocked that American isn’t in last place. Its regionally operated Envoy/American Eagle airline does place last, though. Yikes. The report, which measures airline performance quality, takes into account four major aspects – or as the pros say “core elements”: on-time performance, involuntary denied boardings, mishandled baggage and customer complaints. No doubt, if the AQR measured how travelers were treated, I am certain American/US Airways would have claimed the last spot. In any case, Hawaiian Airlines came in at number. Too bad it doesnt fly anywhere I need to go. Delta took the number three spot, the only large carrier to break into the top four, while some were left scratching their heads over JetBlue’s fourth place ranking, since the airline came in second last year.