Banking Supervision Examined

Ben Bernanke,Chairman of the Federal Reserve,has been reflecting on banking supervision in light of the financial crisis.There are two questions,Mr.Bernanke said:1.What have we learned? and 2.How can we apply those lessons? Increasing the effectiveness of supervision must be a top priority of our institution.The Federal Reserve is now requiring banks to identify the unintended consequences of new financial instruments.We coordinate closely with foreign supervisors,Mr.Bernanke revealed.Our close relationships have proved very helpful as we have dealt with this crisis.The crisis underscores the importance of liquidity in banks.International collaboration has enabled U.S. supervisors to learn from the experience,Mr.Bernanke pointed out.

Health Uncle:Orthopaedic Project Resumes

Wellspan Health,a nonprofit,integrated health system for Southcentral Pennsylvania and Northern Maryland,is resuming its Rehabilitation and Specialty Hospital project.The project was halted when economic conditions deteriorated.The hospital will be located in York County,Pennsylvania's Apple Hill medical campus.It will offer 73 beds and four orthopaedic operating rooms.With the graying of the population,such a facility will be increasingly useful in the years ahead.Joint replacement is one of the most common surgeries among the elderly.It is often minimally invasive,and the quality of the replacement joints is significantly better than in the past.They can last for up to 20 years now.In osteoarthritis,the cartilage between the joints wears away,and the bones then rub against each other,causing debilitating pain and stiffness.Knees,hips and shoulders affected by it are replaced by the hundreds of thousands each year.Athletes of every age are also turning to orthopaedic procedures to extend their careers.
Some 450,000 people live in Wellspan Health's service area.The health system is anchored by York and Gettysburg Hospitals.

Wellpoint Enrollment Down

Feeling the impact of the financial crisis,health insurer Wellpoint's enrollment was 34.6 million at the end of Q1-down 2.3% as companies cut health benefits for their employees.CEO Angela Braly says we're just now getting into the health care discussion.We know the Obama administration has been very interested in listening.Of those who are uninsured,25% are eligible for government programs;25% can afford their own insurance;we need a bridge for the rest,so they can get the coverage they need,Ms.Braly believes.Wellpoint is America's largest private health insurer,covering one in nine citizens through its Blue Cross plans.It is a holding of Warren Buffett's Berkshire Hathaway.

Michigan's Got the Goods

We've got the capacity,Governor Granholm insisted.We've got a workforce that's hungry.We want to be the ones that produce those electric vehicles.Come on over! We want Chrysler to be big and vibrant,producing those vehicles that lead us to be independent of foreign oil.This bankruptcy gives us the ability to leapfrog,to be the place where that happens.This is a defining moment for Michigan.Michigan has blue ribbon factories for not producing waste.This is not your father's UAW,the Michigan Democrat observed,who has been mentioned as a U.S. Supreme Court prospect.

A Rough Ride Ahead

General Motors has a significant hurdle to climb with the bondholders,Michigan governor Jennifer Granholm noted.You can read the tealeaves in the Chrysler news.GM is the next shoe to drop.Let's support the home team,the governor urged.Let's make sure we have a viable company on the other side of bankruptcy.We're gonna have a tough period of time as the Chrysler plants go into hibernation for the next 30-60 days.People feared there would be a liquidation,but these companies are not gonna go away.The bankruptcy announcement will ensure the survival of Chrysler.If the court does what it's supposed to do,the risk to jobs will be greatly diminished,Governor Granholm pointed out.

Confident in Chrysler

Michigan governor Jennifer Granholm is confident in the future of Chrysler,which is in Chapter 11 bankruptcy protection.We are gonna see Chrysler emerge as a stronger,leaner,greener company, she said.They've got agreements with the vast majority of stakeholders.The hedge funds were offered a premium,but they rejected it because they wanted more.I don't know that hedge funds were acting in their investors' best interest,the governor remarked.Saving Chrysler is about jobs-38,000 jobs inside Michigan alone,Governor Granholm indicated.Under the agreements,which must be approved by a bankruptcy court,the U.S. government will get an 8% stake in Chrysler,the third-largest North American automaker;the Canadian government will get 2%;Italian automaker Fiat will get 20-35%,depending on whether targets are met;and the United Auto Workers and Canadian Auto Workers will get a 55% stake in the firm,which was privately held by Cerberus Capital Management.

Health Uncle:Dealing With Swine Flu

At this point,the swine flu outbreak is less severe than the regular flu.About 36,000 Americans die of the regular flu each year.So far,only one death from swine flu has been reported in the U.S.,and that was of a Mexican child.That doesn't mean there isn't a major problem.The problem is,we don't know how this new virus will evolve.It's starting out mild beyond Mexico's borders,but that doesn't mean it will stay that way.It could disappear over the summer,then return in the autumn in a much worse form.That is why the public health authorities are so concerned.Probably a vaccine for it will be developed within a few months,and perhaps included in the standard flu vaccine this autumn.In the mean time,many with sniffles may become alarmed.It is most likely hay fever,if no fever is present.Now is the height of oak pollination in many places,and this makes the allergic moderately ill.To protect against hay fever,consider keeping your windows closed.
The media and public health authorities have to be vociferous and proactive.It's the only way they can protect the public,should the worst case scenario be realized.Unfortunately,this creates an intense environment on top of the economic stress of the day.Let's rest easy in the knowledge that everyone who can do something about these issues,such as the World Health Organization,seems to be making a strong effort.The rest of us can help by following their good advice and exercising sound judgement in our daily affairs.