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JP Morgan’s $2 Billion Deal Backfires

JP Morgan's bank strategy has come under fire (AP Photo/Gregory Bull, File)

J.P. Morgan Chase made it through the financial crisis relatively unscathed. And its CEO, Jamie Dimon [dye-mon] was supposed to be untouchable.

But yesterday, the firm announced that it had taken a two-billion dollar loss on a massive trade that backfired.

Dimon called the bank’s strategy “poorly executed and poorly monitored.”

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Ministers Blend Faiths, Seek Solid Financial Ground

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On a Tuesday evening, around 25 people are gathered in a classroom at the One Spirit Interfaith Seminary, on the sixth floor or a nondescript building in Manhattan’s Garment District, near Penn Station. They’re studying the Dhammapada, one of the main Buddhist texts. About a dozen students around the world are also in class: via the webcam in one corner of the room.

The seminary offers a two year, part time degree that’s somewhere in between a Masters of Divinity from a traditional theological seminary and one of those instant online ordination certificates through the Universal Life Church.

The altar in the main classroom displays a Christian cross, a Buddha statue, a Jewish Torah scroll, and other religious objects. Reverend David Wallace leads the group. After class, he says the focus tonight was Buddhism, but it’s not always.

“I teach the Upanishads, I teach the Tao, I’ve taught the gospels, I’ve taught a course on the mystics,” Wallace said.

One Spirit is not alone in its approach. Union Theological Seminary in New York City, which is a traditional, historically Christian school, has explored interfaith territory in recent years. Some Union faculty have taken the lead on courses with names like “Buddhist Meditation and the Psyche,” “Christian-Muslim Dialogue,” and “Studies in Jewish-Christian Relations.”

David Wallace says one difference between a school like Union and One Spirit is that his students approach the scriptures less academically.

“Not as scholars, but as people trying to learn what those old messages were,” Wallace said.

One Spirit teaches that openness to different ideas is necessary in a society where faiths have become more blended.

In 2006, a national survey from the University of Chicago found that one in four U.S. households consider themselves mixed faith. Susan Turchin is the director of enrollment at One Spirit, a graduate, and an interfaith minister herself. She says that couples and families are less willing to choose one religion, like Judaism over Christianity or Buddhism. One Spirit grads like her work with a lot of gay and lesbian couples as well, who sometimes feel like outsiders when it comes to traditional religion. She offers wedding and commitment ceremonies custom-tailored to a couple’s spiritual needs.

“So there are several people that are making their living offering those, as well as blessing ceremonies for children that are born into interfaith families,” Turchin said.

She says most ministers keep their day jobs, doing ceremonies on the side. A few graduates have taken full-time positions in traditional congregations, and others are freelance ministers, like Reverend Andrew Harriott, who graduated in 2008.

“I speak at a Church called Sacred Light, volunteer at a home for the aged, I have individual clients from pastoral counseling, I do regular counseling,” Harriott said. “So we have to find a living where we can make a living….Recently we’ve been starting to look at ministry as an industry and as a business.”

One Spirit has enlisted the help of Sandy Fishman, a career consultant for JP Morgan Chase. She helps minsters like Harriott navigate the challenging job market, just like she helped Bear Stearns employees who lost their jobs when their company was absorbed by Chase. Fishman hosted the first One Spirit career panel last August.

“Within the first hour I think forty people signed up,” Fishman said, “because there was a tremendous hunger to come and listen to the people who had graduated, and see what they had done.”

She changed some of the vocabulary for the One Spirit sessions. Instead of “job target,” she talked about “personal vision.” But Fishman is teaching them the same career skills she teaches at corporations– setting goals, interviewing, and networking.

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The NFL and its union locked in negotiations

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NFL's Roger Goodell (left) and NFLPA's DeMaurice Smith are the main players in these negotiations. Photo by Charles Dharapak/AP.

The National Football League and its union, the NFL Players Association announced today they’ve agreed to meet with a federal mediator for the next week. It’s an effort to negotiate a new Collective Bargaining Agreement and avoid a strike that could mean an entire year without football.

Simply put, team owners and players are at odds on how to divide football’s massive revenues: a 9 billion dollar pie. Other points of disagreement include the addition of two regular season games, increased benefits for retired players and a rookie salary cap. Robert Boland is a sports business professor at New York University. He says team owners have considerable leverage.

“The worst-case scenario probably right now is that the owners would choose to shut down the game to force an agreement on the players,” he said. “The players would eventually run out of money and sue for peace.”

This is called a lockout. It’s the management’s way of offsetting a strike. Boland says strikes are legal in football, but costly.

“A lockout allows management to stop that economic damage from happening at a critical time by saying we’re just going to cease operation so you can’t hurt us,” he said. “It’s been quite effective in hockey and basketball.”

In the event of a lockout, players wouldn’t get any bonuses or workout off-season money. Team owners on the other hand would still be able to rely on billions of dollars in television revenue. Recently, the players’ union director, DeMaurice Smith, reminded reporters that team owners have consistently earned more since 2006, when the last union contract was struck. Yet, player’s salaries are still years behind.

“We have pushed hard to first get a proposal to understand a justification for a rollback in players share that would put us back around 1992 or 1993,” Smith said. “It’s that serious.”

But NFL commissioner Roger Goodell says the process can’t be rushed. During his annual State of the League press conference on February 4th, the mood was pretty light, even when player and sometime journalist Chad Ochocinco took the mic.

But then, the Cincinnati Bengals receiver asked him when to expect a deal. Goodell wouldn’t commit.

“We will get an agreement, and I think that’s only going to happen when there’s intense negotiations between your union and the owners,” he said. “This is this the window of opportunity to get this done right because otherwise uncertainty is going to seep into all of our operations.”

Both sides have yet to make concessions. Ken Belson writes about the business of sports for the New York Times. He says the dispute has been somewhat sensationalized by both parties and the media.

“It feels a little bit like a Hollywood negotiation, just given the stature of the players and the league,” he said. “I’ve covered enough labor negotiations to know that a lot of this is theater for our consumption to get one side’s point across or the other side’s point across, and both sides will sort of claim that Armageddon is near.”

Boland, the NYU professor, says the ball is now in the owners’ hands. He says if games are shut down, they would lose money because they wouldn’t sell any tickets or play any games.

“However, they would have a long period of time before they actually play any of those games,” he said. “If they locked out in March, they’d have six months really before games started to be played again and they had any real loss. So they would at least make money in the short run from their television revenue, and not have to play the players.”

A lockout would still  end up hurting team owners, if only for the potential loss of thousands of fans. Boland says that every sport that’s had a significant work stoppage, like a loss of half a season or the loss of a championship, has always taken a lot of time to recover.

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