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Wednesday, March 11, 2009

Free Internet Press Newsletter - Wednesday March 11 2009 - (813)

Wednesday March 11 2009 edition
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Asian Markets Rise In Early Trading
2009-03-11 03:34:30
Equity markets across Asia rose sharply in early trading Wednesday, buoyed by positive news from Citigroup and by one of the biggest one-day gains in the Dow Jones industrial average in more than 60 years.

By midday, 17 of the 20 leading indices in the Asia-Pacific region were higher.

Japan’s Nikkei average was up more than 4 percent, and the broader Topix index was 3 percent higher. The Hang Seng index in Hong Kong shot up 4.6 percent early in the day and despite some pullback, was 2.8 percent higher by midday. The markets in Shanghai, Taiwan, South Korea and Singapore also posted solid increases.

The Nikkei was trying to come back from dismal results that had sent it to a 26-year low on Tuesday.

Three major Japanese banks - Mitsubishi UFJ Financial Group, Mizuho Financial Group and Sumitomo Mitsui Financial Group - were up more than 6.7 percent, as banks and financial services companies throughout the region registered significant gains.

Toshiba rose 8 percent on speculation that aggressive cost-cutting measures could help lead to an operating profit next year. Canon, Seiko Epson and Honda also rocketed upward in morning trading in Tokyo.

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50 Years Later, Beijing Still Fails To Control Tibet
2009-03-11 03:34:06

Tuesday marks the 50th anniversary of the 1959 revolt in Tibet against China and the Dalai Lama's flight from the country. Despite decades of repression, the Tibetans living under Chinese control still dare to voice their demands for more autonomy - and the return of their exiled spiritual leader

It was 6.30 a.m., and the sun had not yet risen when they left wearing their red robes to march along the narrow paths between the fields. Then they turned left at the Petro China gas station onto Democracy Street and continued in the direction of the Guinan local government offices.

It was Feb. 25, the first day of the Tibetan New Year. The monks from the Lutsang monastery had heeded the Dalai Lama's advice to his compatriots in China that, this year, they should forgo loud and joyful celebrations. The religious leader had made it known from his place of exile in India that - in the light of the "immense difficulties and misery" faced by Tibetans - the time had come for reflection.

It was this call that led roughly 100 monks to light candles on this particular morning and to present their demands to the local officials: That China should understand the hopes and thoughts of the Tibetans better.

There has probably never been a lonelier place for a protest. The streets to Guinan trail like an endless ribbon through the high plains of Qinghai Province, where herds of yaks, goats and sheep, overseen by shepherds on horses and mopeds, graze on the blades of grass. Yet the action was not without consequences.

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Congressional Audit: Energy Dept. Erred On Coal Project
2009-03-11 03:33:25
The Energy Department made a $500 million math error a year ago when it withdrew its support from a “near-zero emissions” coal plant in Illinois, Congressional auditors will say in a report to be released Wednesday.

The error led the department to say mistakenly that the project, known as FutureGen, had nearly doubled in cost - an increase the Bush administration deemed too expensive.

At the time, FutureGen was the leading effort to capture and sequester carbon dioxide, the main heat-trapping gas linked to global warming.If the project were resumed and proved successful, it could provide a model for curbing the carbon dioxide that coal adds to the atmosphere.

The new energy secretary, Steven Chu, has said that he will consider renewing support for FutureGen but that changes will be needed. He did not specify what those might be.

The report was prepared by the Government Accountability Office for Representative Bart Gordon, chairman of the House Science Committee. The panel’s subcommittee on energy and environment will hold a hearing on the issue on Wednesday.

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5 Years After It Halted Weapons Program, Libya Sees U.S. As Ungrateful
2009-03-11 03:31:49
When Libya gave up its nuclear and chemical weapons programs in late 2003, President George W. Bush pointed to the decision as a victory in Washington’s so-called war on terror and as a potential model for pressing Iran and North Korea to give up their weapons programs, too.

Now, Libyan officials say they are dissatisfied with the way the deal worked out, insisting that the United States has done too little to reward Libya’s concessions. Officials here say they believe that Libya’s limited payoff undermines the credibility of the United States as it presses other nations to abandon weapons programs.

Libya’s discontent suggests potential hurdles for the Obama White House as it tries to engage with nations the United States has shunned, like Iran and Syria, as part of a broader strategy reassessment in the Middle East.

While Libya says it does not plan to restart the weapons programs, its disaffection signals the need to manage expectations and reveals the unexpected challenges of developing relations with the former pariah state, which has been isolated for decades and remains run by an eccentric, enigmatic strongman, Col. Muammar el-Qaddafi. 

“We gave some devices, some centrifuges, for example for America, but what do you give us? Nothing,” said Abdelrahman Shalgham, who served as foreign minister for eight years before being named ambassador to the United Nations this month. “That’s why we think North Korea and Iran are hesitating now to have a breakthrough regarding their projects.”

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Stock Market Rallies Strongly, Dow Finished Up 379 Points
2009-03-10 21:41:06

U.S. stock markets rallied strongly and broadly Tuesday, closing up more than 5 percent, as hope on Wall Street spread that the fortunes of some of the nation's largest financial institutions might be turning around.

The surge, which was sparked by morning news that beleaguered financial giant Citigroup had posted profits in the first two months of the year, grew in its robustness throughout the day to touch every sector, from technology companies to utility giants to Detroit automakers.

Although analysts warned that concerns over the economy, housing and credit markets could still imperil any recovery, the scope of the gains led some to hold out optimism that a turning point could be near following weeks of decline.

"There is finally some good news out there for once, and it seems to have gotten the markets rolling on the upside, and we are hopeful we can hold this sentiment," said Andrew Brooks, head of stock trading at T. Rowe Price. "The selling has been unabated, if you will; one up day does not improve the entire framework, but it sure feels a lot better."

The Dow Jones industrial average gained 5.8 percent, or 379 points. The Standard & Poor's 500-stock index was up 6.4 percent, or 43 points, and the Nasdaq composite index climbed 7.1 percent, or 90 points.

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U.S. Congress Eases Travel To Cuba
2009-03-10 21:40:43
U.S. citizens with family in Cuba will be able to visit the island nation more often and stay as long as they like under legislation Congress passed Tuesday night.

Changes in rules for family travel to Cuba, which were included in a massive spending bill, come amid debate on whether the U.S. should lift its trade embargo against Cuba.

Under the bill, which President Barack Obama is expected to sign, Cuban-Americans could travel to Cuba once a year to visit relatives and stay for an unlimited duration. Existing rules limit family visits to once every three years for no more than 14 days at a time.

The bill would also would ease financing rules for imports of food and medicine into Cuba. That provision prompted protests by lawmakers who said it would reward a brutal dictatorship.

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President Obama Unveils Education Blueprint, Urges More Parental Involvement
2009-03-10 16:03:51
President Barack Obama laid out his vision for a 21st century education system this morning, unveiling plans for federal grant programs meant to inspire better performance but also calling on states, schools and parents to take part even where there is no financial incentive.

Obama's blueprint includes a controversial plan to hike pay for high-performing teachers, as well as money for states that raise student standards, track student progress and cut the drop-out rate.

Yet much of Obama's speech to business leaders with the U.S. Hispanic Chamber of Commerce - his first address on education since taking office - focused not on detailing federal programs but on encouraging Americans to raise the standards on their own.

He called for longer school days and school years, more charter schools and a greater effort to recruit promising candidates to the teaching profession, as well as a renewed commitment from parents to support their children's education.

"Yes, we need more money," said Obama. "Yes, we need more reform. Yes, we need to hold ourselves more accountable for every dollar we spend. .. The bottom line is that no government policies will make any difference unless we also hold ourselves more accountable as parents."

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Dalai Lama Harshly Condemns China
2009-03-10 16:03:29
The Dalai Lama delivered on Tuesday one of his harshest attacks on the Chinese government in recent times, saying that the Chinese Communist Party had transformed Tibet into a “hell on earth” and that the Chinese authorities regard Tibetans as “criminals deserving to be put to death.”

“Today, the religion, culture, language and identity, which successive generations of Tibetans have considered more precious than their lives, are nearing extinction,” said the Dalai Lama, 73, the spiritual leader of the Tibetans.

Those words came during a blistering speech made Tuesday morning in Dharamsala, India, the Himalayan hill town that is the seat of the Tibetan government-in-exile. Tibetans outside of China and their supporters held rallies around the world on Tuesday to mark the 50th anniversary of a failed Tibetan uprising against Chinese rule. The Chinese military crushed the rebellion, forcing the Dalai Lama to flee across the Himalayas to India.

The furious tone of the Dalai Lama’s speech may have been in reaction to a new clampdown by China on the Tibetan regions. The Dalai Lama might also have adopted an angry approach to placate younger Tibetans who have accused the Dalai Lama of being too conciliatory toward China. The Dalai Lama advocates genuine autonomy for Tibet and not secession, while more radical Tibetans are urging the Dalai Lama to support outright independence.

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Bernanke Says Financial Rules Need Overhaul
2009-03-10 16:03:07
Federal Reserve chairman Ben S. Bernanke called on Tuesday for a broad reworking of how the government regulates the financial system to prevent future financial collapses.

In a speech before the Council on Foreign Relations in Washington, D.C., Bernanke said the financial system needed to be regulated “as a whole, in a holistic way” and that stricter oversight of banks would not be enough to guard against future crises.

“Strong and effective regulation and supervision of banking institutions, although necessary for reducing systemic risk, are not sufficient by themselves to achieve this aim,” said Bernanke.

He said that government oversight systems and private risk management helped to precipitate the economic crisis by failing to ensure that a flood of foreign money into the United States was prudently invested. Credit markets seized up and global economies began contracting in what Bernanke called the worst financial crisis since the 1930s.

Even as the Fed and other central banks scramble to rebuild confidence in the financial system and free up credit,  Bernanke said that policy makers needed to look ahead to long-term changes in the financial system.

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Stocks Push Higher On Upbeat Memo From Citigroup
2009-03-10 16:02:43

Wall Street soared on Tuesday morning, with the Dow rebounding more than 200 points, as investors got a taste of what they desperately crave: a glimmer of optimism in the financial sector.

That hint of hope came in the form of a memorandum from the chief executive of Citigroup, Vikram S. Pandit, saying that the bank had turned a profit in the first two months of the year, and that its quarterly performance to date, before taxes and special items, was the best since the third quarter of 2007.

Pandit gave no indication of how much special items, like write-downs or credit losses, would be, but investors took the memo as a sign of a better days ahead for Citigroup, which had an $8.29 billion loss in the fourth quarter.

Shares of Citigroup, which briefly sank below $1 last week, surged 23 percent in midmorning trading, helping to lead a surge in financial companies and fueling a broader rally. Bank of America soared nearly 24 percent, and JPMorgan Chase, PNC Financial Services and Morgan Stanley all rose by double digits.

At about 2 p.m., the Dow Jones industrial average was up 292 points, or nearly 4.5 percent, while the broader Standard & Poor’s 500-stock index rose 5.2 percent - the biggest gains for the two market indices since late January. The Nasdaq index rose 5.8 percent, a day after technology and telecommunications dragged the broader markets lower.

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Judge Dismisses Lawsuit Of Guantanamo Detainee - At Detainee's Request
2009-03-10 16:02:14

A federal judge has dismissed a lawsuit brought by a 34-year-old Saudi challenging his confinement at the U.S. military prison at Guantanamo Bay, Cuba, because the detainee does not want to proceed with his case.

The decision by U.S. District Judge Emmet G. Sullivan followed a two-hour hearing on Friday that included testimony from the detainee, Ghassan Abdullah al-Sharbi, via a secure video link to the prison, according to Sharbi's attorney, Robert Rachlin.

Rachlin declined to discuss anything specific that transpired at the hearing because it was closed to the public. He said his client has "consistently demanded that his case be dropped and has refused the assistance of military and civilian lawyers." Rachlin said Sharbi is "an aspiring martyr."

"He has disdain for the whole process," said Rachlin.

Under Sullivan's ruling, Sharbi can bring his suit again if he wants to, said Rachlin.

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Interview: 'Window Of Opportunity' For U.S.-Russia Relations
2009-03-11 03:34:20

Ties between Washington and Moscow have been frosty in recent years; but former U.S. Ambassador Thomas Pickering sees a golden opportunity for improvement. He spoke with Spiegel Online about how Russia could help with Iran and Afghanistan.

SPIEGEL ONLINE: Secretary of State Hillary Clinton, Vice President Joe Biden, President Barack Obama himself - they all promise to press the "reset button" on ties with Russia. Is that realistic?

Thomas Pickering: I think there is a real window of opportunity to jumpstart the relationship between Moscow and Washington. The expectations are extremely low after the standstill of the past years. And the Obama administration is off to a good start. They really seem determined to engage in a new dialogue.

SPIEGEL ONLINE: But Moscow reacted rather coolly to Obama's letter to Russian President Dmitry Medvedev, in which he seemed to offer to abandon the U.S. missile shield in Europe in exchange for more Russian cooperation on the nuclear dispute with Iran.

Pickering: I have not seen that letter; I have only seen what the Russians said to the press. But I was not really surprised that the Russians were not too enthused. One has to remember: Russian politicians always welcome the opportunity to criticize the Americans. Former Russian President Vladimir Putin brilliantly used this to help his political standing at home, and it was not much different when I served as U.S. ambassador in Moscow in the 1990s. That is just the way Russians look at the relationship with Washington - and that won't change all of a sudden.

SPIEGEL ONLINE: Were you surprised that the Obama administration seemed to offer a complete abandonment of the missile shield in the letter to Medvedev?

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Madoff To Plead Guilty - Life Sentence Likely
2009-03-11 03:33:42
Bernard L. Madoff, the New York financier accused of masterminding the biggest Ponzi scheme ever, plans to plead guilty this week to 11 felony charges that will likely put him behind bars for the rest of his life, his lawyer said Tuesday.

Madoff, 70, will admit to running a fraud dating back to the 1980s. He solicited billions of dollars from pension funds, charities and other investors, at times promising annual returns of as much as 46 percent, according to court documents filed Tuesday afternoon in U.S. District Court in Manhattan.

He set up accounts in London, England, in part to make it look like he was investing in European securities. To give his business an air of legitimacy, said the documents, Madoff hired numerous employees with little or no relevant training and had them generate false documents, including trading records and monthly statements to clients. Prosecutors didn't say whether his staff was aware of the fraud.

The new details about Madoff's operations were collected by government investigators after Madoff's Dec. 11 arrest. Prosecutors had charged him with a single count of securities fraud after, they said, Madoff admitted to running a $50 billion Ponzi scheme.

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Car Loan Delinquencies Rising Amid Signs Of Fraud
2009-03-11 03:32:07
Many car buyers are having the same kind of trouble obtaining and paying off loans that plagued America's housing market, new data show.

Some 3.25 percent of all indirect auto loans were at least 30 days overdue in the third quarter, the American Bankers Association reports. That's the worst showing since the group began compiling such numbers in 1980. Indirect loans are those arranged by a third party, typically an auto dealer, and they account for 90 percent of all car loans.

"Many car buyers have fallen victim to many of the same subprime, predatory lending practices that have caused so many home foreclosures and our current economic recession," said Rep. Doris Matsui, D-California.

Not only are their payments starting to lag, but "evidence suggests that fraudulent practices with regard to both the condition and financing of used cars are on the rise," said Rep. Bobby Rush, D-Illinois, the chairman of the House Subcommittee on Commerce, Trade and Consumer Protection.

He and others, including the National Consumer Law Center, say this trend is affecting the poor disproportionately.

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GV20 Deal At Risk As U.S.-Europe Rift Grows
2009-03-11 03:31:32

British Prime Minister Gordon Brown's hopes of achieving a deal on the international handling of the financial crisis in London next month have been dealt a blow by signs of a growing split between America and Europe, and an admission by Britain's most senior civil servant that it is very hard to get decisions from the Obama administration. 

America's idea of another co-ordinated fiscal stimulus to lift the world out of recession is being resisted by Germany and France, both worried by the scale of their projected public deficits.

The faultline was becoming visible as Sir Gus O'Donnell, head of the U.K. civil service, said U.S. Treasury Secretary  Tim Geithner told him there was no one in the U.S. Treasury Department because of delays in appointing a new administration. "There is nobody there," he told a civil service conference in Gateshead. "You cannot believe how difficult it is."

Sir Gus made his remarks in defense of a permanent civil service, pointing out that he had known Geithner for many years, but had been unable to get decisions from the administration.

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U.S. Congress Passes Huge $410 Billion Spending Legislation
2009-03-10 21:40:55

The Senate gave final approval to a $410 billion spending bill to fund most of the federal government for the remainder of the year after overcoming a resilient Republican opposition and several Democratic defections.

The bill, which included thousands of controversial earmarks inserted by members of both parties, was approved on a voice vote after eight Republicans joined 54 Democrats in backing a procedural measure to bring the long and rancorous debate to a close. President Obama has indicated that he will sign the bill despite misgivings about the earmarks included in it.

The legislation was six months overdue, a victim of partisan gridlock at the end of the Bush presidency but also sticker shock. Congress already has approved a $700 billion financial bailout and a $787 billion economic stimulus package. Obama has said he is likely to ask for more.

"This has taken far too long," Senate Majority Leader Harry Reid (Nevada) said before the final vote. The multiple hurdles that had blocked the bill "had been surprising to me," said Reid. "It's been difficult. But we're going to get it done."

The bill provides fiscal 2009 funding for nine federal departments, covering all government activities other than defense and homeland security-related agencies, whose funding was approved last fall. Many agencies will see big boosts under the legislation, in some cases 10 percent or more about fiscal 2008 levels.

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Gunman, 9 Others Killed In South Alabama Towns
2009-03-10 21:40:27
Authorities say at 10 people have been shot and killed in two south Alabama towns, including the gunman.

The Alabama Department of Safety says at least four shootings by a single gunman left at least nine people dead before he killed himself.

The department says in a statement that the shootings began late Tuesday afternoon in Samson. The shooter killed five people in one home and one each in two other homes.

The gunman then shot at a state trooper's car, striking the vehicle seven times and wounding the trooper with broken glass.

Police pursued him to Reliable Metal Products just north of Geneva, where he fired an estimated 30 rounds.

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EPA Proposes National System For Reporting Greenhouse Gas Emissions
2009-03-10 16:03:39

The U.S. Environmental Protection Agency Tuesday proposed establishing a nationwide system for reporting greenhouse gas emissions, a program that could serve as the basis for a federal cap on the buildup of carbon and other gases linked to global warming.

The registry plan, which would cover about 13,000 facilities that produce between 85 and 90 percent of the nation's greenhouse gas output, was drafted under the Bush administration but stalled after the Office of Management and Budget objected to it because EPA based the rule on its powers under the Clean Air Act.

"Our efforts to confront climate change must be guided by the best possible information," said EPA administrator Lisa P. Jackson in a statement. "Through this new reporting, we will have comprehensive and accurate data about the production of greenhouse gases. This is a critical step toward helping us better protect our health and environment - all without placing an onerous burden on our nation's small businesses."

Sens. Dianne Feinstein and Barbara Boxer (D-California) had inserted language in a 2007 spending bill instructing EPA to develop a national greenhouse gas reporting system.

If adopted by the end of the year, the new rule could produce greenhouse gas statistics by the end of 2010. The EPA requirements would apply to large industrial sources that emit 25,000 metric tons or more a year, including oil and chemical refineries; cement, glass, pulp and paper plants; manufacturers of motor vehicles and engines; and confined animal feeding operations. The threshold of 25,000 metric tons is about equal to the annual emissions of just more than 4,500 passenger cars.

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China Says U.S. Naval Ship Was Conducting Illegal Activities
2009-03-10 16:03:18
China on Tuesday rejected accusations that it harassed a U.S. naval ship off one of its southern islands and said the vessel was conducting illegal surveying activities.

On Monday, the White House had protested the aggressive shadowing Sunday of the USNS Impeccable in the South China Sea near Hainan Island. According to the Pentagon, five Chinese vessels "surrounded" the ship and closed to within 50 feet while crew members were "waving Chinese flags and telling Impeccable to leave the area."

Foreign Ministry spokesman Ma Zhaoxu said at a news conference Tuesday that the United States had misrepresented the situation and that the U.S. ship had been in a "Chinese exclusive economic zone" without the Chinese government's permission.

"The U.S. claim is totally inaccurate and confuses right and wrong and is unacceptable to China," said Ma. China maintains that the Impeccable's presence violates international law and has demanded that the United States refrain from carrying out similar missions.

In a response Tuesday, Pentagon spokesman Maj. Stewart Upton said, "We stand by our earlier statements that U.S. Navy ships regularly operate in international waters around the world and that the Impeccable was conducting routine operations in the South China Sea in accordance with international law."

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New Fears Of Violence Rise As Bomber Kills Dozens In Iraq
2009-03-10 16:02:54
A suicide bomber took aim at a group of Iraqi Army officers on their way to a reconciliation conference on the western outskirts of Baghdad on Tuesday, and wild gunfire ensued. A total of 33 people were killed, including two journalists.

It was the second attack since Sunday to kill more than two dozen people, suggesting a renewed ability by insurgents to mount effective suicide bombings, after a long period in which such attacks were relatively few and less lethal because of heavy security precautions.

A witness said the attacker on Tuesday was wearing a national police uniform and struck as a group of officials were in a marketplace near the municipal building in Abu Ghraib. The Iraqi Interior Ministry put the death toll at 33, with 46 injured. It was early afternoon, and the local Iraqi army leaders were on their way to a scheduled reconciliation conference in the District Council with Sunni tribal leaders in the area, according to army officers at the scene.

A correspondent and a photographer for an Iraqi television network, Al Baghdadiya, were killed. The Iraqi Army lost at least seven men, including the commander of the third regiment, Lt. Col. Muhammed Jassim. The commander of Al Muthanna Brigade, Staff Col. Murad Kareem, was injured, and his brother, who was his bodyguard, was killed, said  military officials.

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Muslim Woman Asked To Leave Line At Maryland Credit Union
2009-03-10 16:02:25

A Muslim woman was asked to leave her place in line at a credit union in Southern Maryland and be served in a back room because the head scarf she wore for religious reasons violated the institution's "no hats, hoods or sunglasses" policy, the woman said Monday.

The incident at the Navy Federal Credit Union on Saturday was the second in a month for Kenza Shelley, and Muslim advocates fear it could become a problem nationwide as many financial institutions, intent on curbing robberies and identity theft, ban hats and similar items without appropriate accommodations for religious attire.

"This may be the tip of the iceberg," said Ibrahim Hooper, a spokesman for the Washington-based Council on American-Islamic Relations. "There's got to be a way to work it out so that this security concern does not lead to violations of constitutional rights."

Shelley, 54, who runs a day care out of her home in Lexington Park, said she has used the credit union in the St. Mary's County community of California for more than 10 years. Until February, no employees had complained about her head scarf, which covers her hair but not her face. But a few weeks ago, she said, she was standing in line to deposit a check when an employee asked her to come to the back room, referring to a new policy that prohibited hats, hoods and sunglasses. She complied but asked whether she would have to go through the same process each time she made a transaction.

On Saturday, Shelley said, employees again asked her to come to the back room if she would not remove her head scarf. "No," she recalled telling them, "I want to be served like everybody else."

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RV Maker Fleetwood Files For Bankruptcy
2009-03-10 16:01:54
Fleetwood Enterprises Inc., the Riverside recreational vehicle maker, filed for Chapter 11 bankruptcy protection today and said it was in talks to sell itself as it battles to survive a prolonged sales slump.

Fleetwood said it would continue to operate while in bankruptcy proceedings and as it holds talks with potential buyers.

"The company is in discussions with buyers for all or part of its business," said a spokeswoman for the company.

Fleetwood, which employs 3,000 people at 15 plants in 10 states, also said it would close its travel trailer operation, shutting down three factories and two service centers and eliminating 675 jobs. The company said it was also laying off an additional 65 workers.

"Although we made substantial progress in restructuring this division and improved the product offering, current market conditions proved too severe to continue the turnaround," Chief Executive Elden L. Smith said in a statement.

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