U.S. health inspectors have found serious deficiencies at Theranos Inc.’s laboratory in Northern California, according to people familiar with the matter. The problems were found during an inspection by the Centers for Medicare and Medicaid Services, the chief federal regulator of clinical labs, at the blood-testing company’s facility in Newark, Calif. Failing to fix the problems could put the Theranos lab at risk of suspension from the Medicare program. The inspection results are expected to be publicly released soon, these people said. A spokesman for the agency said it “can’t confirm any survey conclusions or results at this time.” ……… Theranos already has stopped collecting tiny samples of blood from patients’ fingers for all but one of its tests while it waits for the Food and Drug Administration to review the company’s applications for wider use of the proprietary vials called “nanotainers.” In October, the FDA said it had determined that the nanotainers were an “uncleared medical device.” Since then, Theranos has been performing just one test—to detect herpes—using its proprietary Edison device, people familiar with the matter said. That test was approved by the FDA. Theranos is using traditional machines for the rest of the more than 200 tests it offers to consumers, the people said.
Theranos has been a hawking a proprietary technology which allows for a wide range of blood tests to be conducted by a simple finger prick.
They have a valuation of over $1 billion, their technology does not work reliably. their conventional lab tests have been cited by the FDA, and most of their business they have to outsource at a loss.
I understand that this Might Be a promising technology, but how does this become a multibillion dollar valuation?
How is there difference between this and much of the rest of the froth in Silicon Valley?
There are no venture capitalists. There are just con men looking for the next idiot.
*In the world of business, a unicorn is a company, usually a start-up that does not have an established performance record, with a stock market valuation or estimated valuation of more than $1 billion.
It should be noted that the current bank failures are dwarfed by the failures during the S&L crisis, (Also known as the bailout of the Texas banking industry) but that we routinely saw more failures than that before the creation of the FDIC.
The next time that someone complains about how excessive regulation constrains the dynamism of the US economy, show them these graphs. (click for slide show)
We have yet to have the first bank failure of the year, but we now have the first credit union failure, Clarkston Brandon Community Credit Union of Clarkston, MI.
I’m wondering if there was a change in policy over the past year tha might have credit unions failing at a faster rate than commercial banks.
This is not a conflict that the government can deescalate. These folks goals is to use the threat of violence to get as much as they can, and then they will go to explicit violence.
This is an insurrection, and a fair number of the fellow travelers are not ready for this, but every time the government backs down, this movement picks up supporters and momentum.
It is not a question as to whether the US government will have to go after them with lethal force, but when.
Sooner is better than later here:
A group of armed anti-government activists remained encamped at a federal wildlife refuge in Oregon on Sunday evening, vowing to occupy the outpost for years to protest the federal government’s treatment of a pair of local ranchers set to report to prison Monday. The occupation of a portion of the Malheur National Wildlife Refuge, about 30 miles southeast of Burns, Ore., began a day earlier, after a small group of men broke off from a much larger march and rally held on Saturday evening The armed occupation is being led by Ammon Bundy, an Idaho rancher whose father, Cliven Bundy, led an armed standoff with federal agents in Nevada in 2014 and who has described his supporters as “militia men.” “Those who want to go take hard stand, get in your trucks and follow me!” Ammon Bundy declared to rally-goers at the conclusion of Saturday’s event, according to several people who were in attendance. Not long afterward, the group had taken over the federal wildlife preserve. Harney County Sheriff David M. Ward said authorities from several law enforcement organizations were monitoring the ongoing incident. “These men came to Harney County claiming to be part of militia groups supporting local ranchers,” Ward said in a statement Sunday. “When in reality these men had alternative motives, to attempt to overthrow the county and federal government in hopes to spark a movement across the United States.” Organizers of the rally say several hundred attended the procession through Burns, Ore. — a ranching town of less than 3,000 residents — in a show of support for Dwight Hammond, 73, and his son Steven Hammond, 46, who in the conclusion of a decades of clashes with the federal government were sentenced last October to serve five years in prison. Prosecutors accused the Hammonds of committing arson on federal land in 2001 and 2006. The men and their attorneys argued that the fires had been set on their own property — once to prevent the spread of an invasive species of plant and once in attempt to prevent the spread of a wildfire — and had inadvertently burned onto public lands. But prosecutors said the fires were set in attempt to destroy evidence that the Hammonds had been illegally hunting deer on the federal lands.
This needs to be shut down before it metastasizes, if it hasn’t already done so.
As an aside, I think that we need to minimize the private use of federal land in the west, because history shows that people who derive public benefit for their private benefit are inclined to go to extremes to cling to their undeserved windfall.
Just look at the behavior of the 2nd Estate around the time of the French Revolution. They did more to create the Reign of Terror than any other segment of society.
In the continuing revelations regarding the Silicon Valley-eaque medical startup, I have come to the conclusion that it’s investors, and its market cap, are more a product of its founder is an earnest attractive blond who dropped out of Stanford.
This suggests one of two possibilities: either Theranos’ customers received test results generated by equipment that no federal official checked for accuracy, or Theranos wasn’t using the proprietary technology behind its $9 billion valuation to return results to patients. A recent report from The Wall Street Journal pointed toward an extreme version of option number one: that Theranos actively hid its proprietary technology from lab inspectors, which would explain why the inventions were never checked. And Theranos has publicly proclaimed it used its technology on patients, which means either that the company’s lying or patients received tests that had not been validated by any federal authorities.
“CMS did not inspect the Theranos proprietary technology.”Theranos first came under scrutiny after a report in the Journal in October, which said that Theranos’ inventions were only used on a small number of tests sold to patients. On Sunday, the paper reported that during an inspection by Centers for Medicare and Medicaid Services auditors, employees who worked in the “Normandy” section of the Theranos lab were told not to enter or exit the lab; the inspectors toured the section of the lab that housed traditional lab instruments Theranos bought from other companies but never saw the Edison machines — Theranos’ highly publicized blood analyzers. This account fits with lab inspection documents that The Verge obtained from CMS, which do not mention Theranos’ proprietary technology at all. There’s a reason for that: “CMS did not inspect the Theranos proprietary technology,” a spokesperson for CMS told The Verge in an email. Consequently, at no point between Theranos opening its first wellness center in 2013 and a surprise inspection by the FDA in August did any federal official examine the company’s proprietary technology — either its Edison machine, which reads samples, or its “Nanotainer” device, which stores blood from pinprick testing.
The lack of inspection was possible in part because Theranos registered its technology in categories that have minimal oversight. Theranos sold its tests under a designation that even the US Food and Drug Administration calls a regulatory loophole: the “lab-developed test.” Under this designation, no pre-market FDA approval is required for the company’s blood tests — as it typically is for most drugs and devices. The category was meant for research hospitals, which sometimes adapt commercial tests to suit patients’ needs, and Theranos is one of several companies using the loophole to sell its tests to the public. Instead of the FDA, regulation of Theranos’ labs fell to the Centers for Medicare and Medicaid Services.
Theranos also registered its blood containers as FDA Class I medical devices in 2013, according to the FDA. That category of medical device doesn’t require an FDA inspection. No FDA inspectors entered a Theranos facility until August of this year, during a round of surprise inspections. In the FDA’s inspection report, it referred to Theranos’ Nanotainer as an “uncleared medical device” and altered its registration to a Class II medical device, which requires greater oversight.
CMS declined to provide us with additional information about Theranos. The FDA provided some information about Theranos’ regulatory status — including the fact that Theranos registered its containers as Class I in 2013 — but declined to reveal anything further about the company.
I’m beginning to think that the whole startup culture is a code word for some sort of charity for overpriviliged white boys.
California has just dealt a blow to Monsanto as the state’s Environmental Protection Agency has decided to list glyphosate, the highly toxic main ingredient used in Roundup, as a known carcinogenic. Under Proposition 65, also known as the Safe Drinking Water and Toxic Enforcement Act of 1986, the state is required to list and publish chemicals that cause birth defects, cancer, or other reproductive harm. If a chemical is found to be carcinogenic by the International Agency for Research on Cancer (IARC), they are required to be listed as well. The IARC released a report, in March, that states glyphosate to be a ‘probably carcinogen.’ The report shows that the herbicide has been found to cause cancer in lab animals as well.
There have been concerns about the cancer causing effects of Roundup® since its commercial release.
There have been studies that have reinforced these concerns for over a decade.
Unfortunately, the standard, in the US at least, is to require proof of harm, rather than, as is the case with medications, a proof of safety.
Wall Street is still out of control. Seven years ago, the Federal Reserve and the Treasury Department bailed out the largest financial institutions in this country because they were considered too big to fail. But almost every one is bigger today than it was before the bailout. If any were to fail again, taxpayers could be on the hook for another bailout, perhaps a larger one this time. To rein in Wall Street, we should begin by reforming the Federal Reserve, which oversees financial institutions and which uses monetary policy to maintain price stability and full employment. Unfortunately, an institution that was created to serve all Americans has been hijacked by the very bankers it regulates. The recent decision by the Fed to raise interest rates is the latest example of the rigged economic system. Big bankers and their supporters in Congress have been telling us for years that runaway inflation is just around the corner. They have been dead wrong each time. Raising interest rates now is a disaster for small business owners who need loans to hire more workers and Americans who need more jobs and higher wages. As a rule, the Fed should not raise interest rates until unemployment is lower than 4 percent. Raising rates must be done only as a last resort — not to fight phantom inflation. What went wrong at the Fed? The chief executives of some of the largest banks in America are allowed to serve on its boards. During the Wall Street crisis of 2007, Jamie Dimon, the chief executive and chairman of JPMorgan Chase, served on the New York Fed’s board of directors while his bank received more than $390 billion in financial assistance from the Fed. Next year, four of the 12 presidents at the regional Federal Reserve Banks will be former executives from one firm: Goldman Sachs.
The citizens of Woodland, N.C. have spoken loud and clear: They don’t want none of them highfalutin solar panels in their good town. They scare off the kids. “All the young people are going to move out,” warned Bobby Mann, a local resident concerned about the future of his burg. Worse, Mann said, the solar panels would suck up all the energy from the Sun.
Another resident—a retired science teacher, no less—expressed concern that a proposed solar farm would block photosynthesis, and prevent nearby plants from growing. Jane Mann then went on to add that there seemed to have been a lot of cancer deaths in the area, and that no one could tell her solar panels didn’t cause cancer. “I want information,” Mann said. “Enough is enough.”
These comments were reported not in The Onion, but rather by the Roanoke-Chowan News-Herald. They came during a Woodland Town Council meeting in which Strata Solar Company sought to rezone an area northeast of the town, off of US Highway 258, to build a solar farm. The council not only rejected the proposal, it went a step further, voting for a complete moratorium on solar farms.
To quote the movie Billie Madison, “What you just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response, were you even close to anything that could be considered a rational thought. Everyone in this room is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.”
A former federal prosecutor will head the agency charged with investigating police shootings in Chicago after the immediate resignation of its chief administrator, Mayor Rahm Emanuel’s office announced Sunday. Sharon Fairley will take over for Scott Ando as the head of the Independent Police Review Authority, according to a statement from the mayor’s office. Fairley declined to comment when reached Sunday by the Chicago Sun-Times. Ando could not be reached. “Scott has taken important steps to move IPRA forward and reduce its backlog of cases,” Emanuel said in a statement. “Yet it has become clear that new leadership is required as we rededicate ourselves to dramatically improving our system of police accountability and rebuilding trust in that process.” Emanuel made his announcement hours after hundreds of protesters led by the Rev. Jesse Jackson marched through the Loop on Sunday, demanding accountability after the release of video footage of Chicago Police Officer Jason Van Dyke fatally shooting 17-year-old Laquan McDonald 16 times on Oct. 20, 2014. ……… A former federal prosecutor will head the agency charged with investigating police shootings in Chicago after the immediate resignation of its chief administrator, Mayor Rahm Emanuel’s office announced Sunday. Sharon Fairley will take over for Scott Ando as the head of the Independent Police Review Authority, according to a statement from the mayor’s office. Fairley declined to comment when reached Sunday by the Chicago Sun-Times. Ando could not be reached. “Scott has taken important steps to move IPRA forward and reduce its backlog of cases,” Emanuel said in a statement. “Yet it has become clear that new leadership is required as we rededicate ourselves to dramatically improving our system of police accountability and rebuilding trust in that process.” Emanuel made his announcement hours after hundreds of protesters led by the Rev. Jesse Jackson marched through the Loop on Sunday, demanding accountability after the release of video footage of Chicago Police Officer Jason Van Dyke fatally shooting 17-year-old Laquan McDonald 16 times on Oct. 20, 2014.
It is gratifying seeing the bully and coward that is Rahm Emanuel scrambling for his political career.
I think that he will serve out his term, even with all this, but it’s going to be as a very lame duck.
Big banks will lose a portion of a multibillion-dollar government handout they’ve enjoyed for over 100 years, thanks to a compromise highway bill released Tuesday. One estimate pegged the loss to the banks at $8 billion to $9 billion over a 10-year time frame. The bill, as it emerged from a House-Senate conference committee, pays for roads, bridges, and mass transit projects in part by reducing what is currently a 6 percent annual dividend on stock that the big banks buy to become members of the Federal Reserve system. Fed membership offers many perks, from access to processing payments to cheap borrowing. But the dividend could be the sweetest gift, because banks cannot ever lose money on the stock; they’re even paid out if their regional Fed bank disbands. Despite the total lack of risk, member banks have received the 6 percent dividend payout every year since 1913. So for example, JPMorgan Chase, which has held stock since then, has made back its investment six times over without risking any loss. And if the bank stock was in place before 1942, that dividend payment is tax-free. Originally — that is, 100 years ago — the Fed offered the dividend to entice banks into the new Federal Reserve system. But nationally chartered banks are today required by law to become members, and all banks must abide by the standards of membership. So the dividend is just a vestigial sweetener that never went away, pumping billions of dollars in public money to the banks for no discernible reason.
………
Senate Majority Leader Mitch McConnell, seeing no better option, stuck a version of it in the Senate highway bill. The provision called for cutting the dividend from 6 percent to 1.5 percent, eliminating $17 billion in big-bank subsidy over a 10-year period. It passed.
The banks freaked out, aided by Fed Chair Janet Yellen, who warned of unnamed “unintended consequences.” Through a well-worn lobbying strategy, they managed to get the House of Representatives to remove the dividend cut and replace it with a raid on the Fed’s capital surplus account, which is used to cover losses on the balance sheet.
In other words, Yellen and the Fed quietly preferred flushing their own surplus account over denying banks their full entitlement.
But when the final bill was released Tuesday, the dividend reduction remained in there, albeit with some modifications.
The reduction now applies only to banks with over $10 billion in assets, compared to the $1 billion threshold in the original bill. Instead of cutting the dividend to 1.5 percent, the rate will now match the interest rate of the highest-yield 10-year Treasury note at the point that the dividend is due. For context, the high yield at the last Treasury auction was 2.304 percent.
There are, however, some more giveaways to the banksters in the bill, including an attempt to exempt even more mortgage lenders from Consumer Financial Protection Bureau oversight.
Basically, they are implementing data caps, and then exempting their own services from their caps:
By now, Comcast’s strategy for fighting internet video competition is very clear. For one, the company is slowly but surely expanding usage caps into dozens of new markets. In these ever-expanding areas, Comcast imposes a 300 GB usage cap, then charges users $10 for every 50 GB of extra data they consume. Comcast’s also now testing a new wrinkle wherein users have the option of paying another $30 to $35 if they want unlimited data. In short, the option to have the same unlimited connection they had yesterday will cost these users significantly more.
But recently, Comcast’s other spoke in this strategy started to reveal itself. The company is slowly but surely expanding a creatively named streaming video service named Stream. Stream provides Comcast broadband-only users a $15 service that includes live TV, video on demand, and HBO, and it’s Comcast’s way of trying to keep would-be cord cutters in house. Here’s the kicker though: Comcast’s new streaming service doesn’t count against Comcast user usage caps:
“We asked Comcast today if Stream TV usage will count against the 300GB data plans imposed in certain parts of Comcast’s territory. “No, Stream is an IP cable service delivered over our managed network to the home,” a Comcast spokesperson replied.
Comcast also pointed Ars to an (sic) FAQ that says, “Stream TV is a cable streaming service delivered over Comcast’s cable system, not over the Internet. Therefore, Stream TV data usage will not be counted towards your Xfinity Internet monthly data usage.”
In short, Comcast’s trying to argue that this isn’t a net neutrality violation because the service spends significantly more time traveling over Comcast’s managed IP infrastructure instead of the public Internet. It’s the same excuse Comcast gave back in 2012, when it was criticized for exempting its streaming service via the Xbox 360 from usage caps. The move resulted in some pointed criticism by Netflix CEO Reed Hastings, who declared that Comcast was “no longer following net neutrality principles” and the company “should apply caps equally, or not at all.” The FCC, however, did nothing.
Seriously, what the actual f%$#?
Without monopoly rents, Comcast executives would be flipping burgers.
Neel T. Kashkari, who oversaw the government’s bailout of the banking industry as a Treasury official in the George W. Bush and Obama administrations, was named the next president of the Federal Reserve Bank of Minneapolis on Tuesday. Mr. Kashkari, 42, will succeed Narayana R. Kocherlakota in that post in January. He will also take Mr. Kocherlakota’s place as the youngest of the 17 members of the Fed’s policy-making committee, the Federal Open Market Committee. “Mr. Kashkari is an influential leader whose combined experience in the public and private sectors makes him the ideal candidate to head the Minneapolis Fed,” MayKao Hang, a Minneapolis Fed board member who was co-chairwoman of the search committee, said in a statement. Mr. Kashkari is the third person this year appointed to lead a regional reserve bank, and all three of the new presidents previously worked at Goldman Sachs. The Philadelphia Fed in March appointed Patrick Harker, a former Goldman trustee, as its new president. The Dallas Fed in August selected Robert S. Kaplan, a former Goldman vice chairman. Mr. Kashkari will join a minority of Fed officials who do not have advanced degrees in economics, but he has expressed strong views on monetary policy. In 2012, Mr. Kashkari criticized the Fed’s decision to start a second round of bond-buying. “At the end of the day, this is not going to lead to real economic growth,” he told CNBC at the time. “Unfortunately, it likely leads to an inflationary outcome.” He also has compared bond-buying to dosing the economy with morphine — “Makes u feel better but doesn’t cure,” he posted on Twitter in 2013 — and suggested that financial markets would resist weaning. Those views suggest Mr. Kashkari will break with his predecessor. Mr. Kocherlakota began his term at the Minneapolis Fed as a vocal skeptic of the Fed’s ability to improve economic conditions but underwent a battlefield conversion and became a leading proponent of the Fed’s efforts. He is now the only Fed official pushing to expand its stimulus campaign.
So, he’s been wrong on everything, he f%$#ed up the bank bailout, and now he is President of the Minneapolis Fed.
And another Vampire Squid alumni gets to decide the winners and losers in our economy.
So, if the Minneapolis Fed felt the need to maintain conservation of NK, they could have chosen to replace Narayana Kocherlakota with a New Keynesian. Instead, they chose Neel Kashkari. Brad DeLong isn’t happy, and this Twitter exchange suggests that he has good reason to worry.
I’ve written before about the all-too-common fallacy of confusing demand with supply, of arguing that because we had a bubble — so that some component of aggregate demand was unsustainable — the economy as a whole was somehow producing more than its potential. Let me just repeat what I said then:
………
In the words of Charlie Brown, AAUGH!
That word “artificially” is the real telltale, as is Kashkari’s description of Japanese monetary stimulus as “morphine.” It’s straight out of the liquidationist playbook, e.g. Hayek denouncing the use of “artificial stimulants” to fight the Great Depression.
So, great: we now have a liquidationist in a senior position in the Fed system.
Not just a liquidationist, a crony capitalist incompetent liquidationist.
I’m feeling so much better about our monetary policy now.
Hiring at American companies shifted into higher gear in October, helping to lift wages and clearing the path for the Federal Reserve to raise interest rates next month. The 271,000 jump in payrolls reported by the Labor Department on Friday was much more robust than expected and suggested that economic growth had enough momentum to allow the central bank to begin its move away from the ultralow, crisis-level interest-rate policy it has been following for seven years. Along with altering the landscape for policy makers in Washington and traders on Wall Street, the strength in the labor market, if it persists, is expected to shift the political debate as the 2016 presidential campaign heats up. While there is still a possibility the Fed could hold back, the underlying solidity evident in the latest jobs report will strengthen the hand of monetary policy hawks who have long favored an increase in short-term rates. At the same time, it should reassure Janet L. Yellen, the chairwoman of the Federal Reserve, and a majority of her colleagues at the central bank that the economy can handle modestly higher borrowing costs without stress. “It was pretty much everything you could ask for in a jobs report,” said Michelle Meyer, deputy head of United States economics at Bank of America Merrill Lynch. “Not only was the headline number strong, but there were upward revisions for prior months, the unemployment rate fell and wage growth accelerated.”
I don’t know when the Fed will raise rate, but I am almost certain that when they do, it will be too soon.
The cultural imperative of central banks, including the Fed are such that they always err on the side of mindless inflation concerns.
The White House on Tuesday said President Obama had no intention of bowing to a request from the company behind the Keystone XL oil pipeline to delay a decision on the project, saying he wanted to take action before his tenure ends. The State Department is reviewing a request made on Monday by the company, TransCanada, to pause its yearslong evaluation of the proposed 1,179-mile pipeline, which has become part of a broader debate over Mr. Obama’s environmental agenda. Josh Earnest, the White House press secretary, said on Tuesday that “there’s reason to suspect that there may be politics at play” in TransCanada’s request. He strongly suggested that the review, which has been widely expected to result in a rejection of the pipeline as soon as this month, remained on track. “Given how long it’s taken, it seems unusual to me to suggest that somehow it should be paused yet again,” Mr. Earnest said about the evaluation at the State Department, which reviews proposed cross-border projects that require a presidential permit. The president, Mr. Earnest added, “would like to have this determination be completed before he leaves office.” Environmental protection advocates say Mr. Obama is poised to reject the pipeline project in large part to make a bold statement about his commitment to curb climate change in advance of a United Nations summit meeting in Paris. He will seek to broker an accord at the December gathering, committing every nation to enacting new policies to counter global warming.
It would be nice if he hadn’t waited 6 years to start this.
A new cancer treatment strategy is on the horizon that experts say could be a game-changer and spare patients the extreme side effects of existing options such as chemotherapy. Chemotherapy and other current cancer treatments are brutal, scorched-earth affairs that work because cancer cells are slightly – but not much – more susceptible to the havoc they wreak than the rest of the body. Their side effects are legion, and in many cases horrifying – from hair loss and internal bleeding to chronic nausea and even death. Imlygic, which bursts melanoma cells open and triggers immune response, can shrink localised tumours but is not proven to extend life, says FDA But last week the Food and Drug Administration (FDA) for the first time approved a single treatment that can intelligently target cancer cells while leaving healthy ones alone, and simultaneously stimulate the immune system to fight the cancer itself. The treatment, which is called T-VEC (for talimogene laherparepvec) but will be sold under the brand name Imlygic, uses a modified virus to hunt cancer cells in what experts said was an important and significant step in the battle against the deadly disease.
Hmmmm…. A revolutionary virus based cancer treatment..
Recall a zombie flick that started with that.
I really hope that the FDA has done proper due diligence.
From the time Folake Ogundiran’s daughter started kindergarten at a Success Academy charter school in Fort Greene, Brooklyn, the girl struggled to adjust to its strict rules. She racked up demerits for not following directions or not keeping her hands folded in her lap. Sometimes, after being chastised, she threw tantrums. She was repeatedly suspended for screaming, throwing pencils, running away from school staff members or refusing to go to another classroom for a timeout. One day last December, the school’s principal, Candido Brown, called Ms. Ogundiran and said her daughter, then 6, was having a bad day. Mr. Brown warned that if she continued to do things that were defiant and unsafe — including, he said, pushing or kicking, moving chairs or tables, or refusing to go to another classroom — he would have to call 911, Ms. Ogundiran recalled. Already feeling that her daughter was treated unfairly, she went to the school and withdrew her on the spot. Success Academy, the high-performing charter school network in New York City, has long been dogged by accusations that its remarkable accomplishments are due, in part, to a practice of weeding out weak or difficult students. The network has always denied it. But documents obtained by The New York Times and interviews with 10 current and former Success employees at five schools suggest that some administrators in the network have singled out children they would like to see leave. Nine of the students on the list later withdrew from the school. Some of their parents said in interviews that while their children attended Success, their lives were upended by repeated suspensions and frequent demands that they pick up their children early or meet with school or network staff members. Four of the parents said that school or network employees told them explicitly that the school, whose oldest students are now in the third grade, was not right for their children and that they should go elsewhere. The current and former employees said they had observed similar practices at other Success schools. According to those employees, who spoke on the condition of anonymity to protect their jobs or their relationships with people still at the network, school leaders and network staff members explicitly talked about suspending students or calling parents into frequent meetings as ways to force parents to fall in line or prompt them to withdraw their children. ……… Suspensions at Success, which typically last one or two days, are frequent compared with traditional public schools. In the 2012-13 school year, the most recent one for which state data is available, Success schools suspended between 4 percent and 23 percent of their students at least once, with most suspending more than 10 percent. According to the most recent statistics from the city’s Education Department, from 2013-14, traditional public schools suspended 3 percent of students that academic year. ……… At Success Academy Fort Greene, the same day that Ms. Ogundiran heard from the principal, her daughter’s name was one of 16 placed on a list drawn up at his direction and shared by school leaders. The heading on the list was “Got to Go.” ……… The notes also appear to allude to the possibility of getting one child on the “Got to Go” list classified as a 12:1:1 special education student. Those students are entitled to classrooms limited to 12 students, with one teacher and one aide, so Success Academy, which offers only five such classes in a network serving 11,000 students, might not be able to meet the needs of every 12:1:1 student. Ms. Fleischman, the education manager, warned her colleagues in a follow-up email that the goal should not have been put in an email and that, in any case, a 12:1:1 classification “does not guarantee a withdrawal.” Asked this month about that remark, she said that she was saying only that the parent of a 12:1:1 student would not be required to take the student out, and was not alluding to any effort to ensure the child would leave.
I would also argue that it s a violation of anti-retaliation laws, and I would further argue that the parent, or an enterprising prosecutor, might also consider racketeering as icing on the cake:
Anyone who has reported on campus sexual assault knows that school administrations rarely respond, even when they feel unfairly maligned, because they fear violating the Family Educational Rights and Privacy Act, or FERPA. Passed in 1974, FERPA is a federal law that bans the release of students’ personal information without their consent. “Schools are not supposed to talk about their students, even when the media is saying, ‘Hey, I can’t believe you did this,’ ” says Derek W. Black, a professor at the University of South Carolina School of Law who specializes in education law. “And sometimes that means the media doesn’t get the story straight, but it does protect the student.” That’s why it was so surprising when Eva Moskowitz, the high-profile head of Success Academy, a network of New York City charter schools, responded to a negative PBS story by releasing the disciplinary record of an ex-student featured in it. Black says this was probably illegal, and it has left the student’s mother, Fatima Geidi, furious and frantic with worry over her 10-year-old son’s reputation. “For a grown woman, an adult, to attack a child is disgusting,” Geidi told me. “There’s no other way around it.” The skirmish began on Oct. 12, when PBS NewsHour ran a segment titled “Is Kindergarten Too Young to Suspend a Student?” It came as a national backlash has been building against overly strict discipline in public schools, particularly toward very young students. Last year, the Obama administration urged schools to abandon so called zero-tolerance disciplinary policies, warning administrators nationwide that it would investigate racial disparities in student punishment. Shortly before the PBS NewsHour piece ran, a report from the Center for American Progress documented that students are being suspended and expelled as early as preschool. “[I]t is clear that what were intended to be last resort and occasional disciplinary tools have become wildly overused and disproportionately applied to children of color, resulting in dramatically negative long-term effects,” the report said. ……… The NewsHour segment focused on the suspension of kindergarteners at Success Academy schools, which are known both for their high test scores and their highly structured environments, with a code of conduct running six pages. According to PBS reporter John Merrow, at one Success Academy charter with 203 kindergartners and first-graders, there were 44 out-of-school suspensions in a single year. Merrow spoke with nearly a dozen families, but only Fatima Geidi and her son, Jamir, agreed to go on camera. Jamir, who left Success Academy last year because he and his mother couldn’t tolerate the frequent suspensions, described some of the infractions that got him in trouble: “I would always have to keep my shirt tucked in. And let’s say I wasn’t wearing black shoes, and I was wearing red shoes. Then that would be an infraction.” Viewers didn’t get the impression that these were the only reasons the boy, now 10, was disciplined. Fatima Geidi, said that even at his new school, where Jamir hasn’t been suspended, he’s had “meltdowns” and “outbursts.” Still, the segment made it seem as though Success Academy throws kids out for petty misbehavior. Moskowitz herself said that a single incidence of using “sexually explicit language” would get a 5-year-old suspended. ……… But Moskowitz didn’t just object to the numbers. She wanted to combat the allegation that Success Academy suspends kids without good reason. And so she made Jamir Geidi’s record public, posting a letter to PBS on the Success Academies website that listed 19 specific incidents of misconduct, some of them violent, along with long excerpts of teacher reports on Jamir’s behavior. (Her letter referred to Jamir as “John Doe,” but since he was the only student named in the PBS segment, there was no question about who she was talking about.) Fatima Geidi disputes some of these examples as either false or exaggerated. Whether or not they happened the way Moskowitz claims, Black says that in revealing them, she likely broke the law. “A student’s records themselves are private, as well as the contents,” he says. “If those are going to be disclosed to outside third parties, they clearly have to have consent.” With the help of Leonie Haimson, co-founder of the Parent Coalition for Student Privacy, Fatima Geidi sent Moskowitz a cease-and-desist letter, demanding that her son’s information be taken down. “I’ve seen violations of FERPA, but not in such an obvious, egregious way,” Haimson told me. “Not in a press release sent to the media and posted online. I have not seen this level of violation.” Moskowitz is unapologetic. In a letter to Geidi, she wrote, “The First Amendment limits a person’s ability to use privacy rights to prevent others from speaking. When somebody chooses to make statements to the press, they waive their privacy rights on the topics they have discussed, particularly when, as here, those statements are inaccurate.” ……… Whatever you think about the dispute among Fatima Geidi, Merrow, and Moskowitz, however, Jamir Geidi is 10 years old. A document describing him as frighteningly violent now appears in the first page of his Google results. If that’s OK, it doesn’t just hurt him and his mother. It sends a message to any current or former Success Academy parent who might take public issue with Moskowitz’s methods. Fatima Geidi, “was the only parent whom PBS contacted who was brave enough to speak out” under her own name, says Haimson of the Parent Coalition for Student Privacy. “One reason why parents are very afraid—and teachers are afraid too—is they knew they risked the kind of tactics that Eva Moskowitz used against Fatima’s child.” FERPA is supposed to protect such children. We’ll see if it does.
Moskowitz’s argument is bullsh%$.
She is forbidden by law from releasing specific student records.
She can contest the News Hour report, and she can say that the school was justified in its disciplinary actions, but she cannot release student records without specific approval of the parents.
That is the law. (there is an exemption for military recruiters, but that’s another story)
It is this sense of impunity and lawlessness that permeates the charter school movement, and this should not be supported by taxpayer money.
BTW, I think that I’ve figured out why more credit unions have failed this year than commercial banks.
Many of these credit unions are tiny by the standards of commercial banks, the money quote from the above link is, describes the institution as, “A federally insured credit union with 96 members and assets of $290,927.”
At those sizes, one bad house loan can take the institution down.
Hell, a bad car loan can take down the institution for a somewhat expensive car.
When juxtaposed with a structure that tends to mitigate against mergers, it means that there will simply be a lot more institutions.
With commercial banks, you’ve seen a lot of M&A activity, meaning that there are far fewer banks, with remaining institutions less vulnerable to the failure of an individual customer.
The price inmates pay to call their friends and family is set to decrease after the Federal Communications Commission voted Tuesday to cap the rates. The vote was part of a years-long push to decrease the cost of prison and jail calls, which have been described as predatory and are dramatically higher than general rates for the public. “The truth is that each of us is paying a heavy price for what is now a predatory, scaled market regime,” said Commissioner Mignon Clyburn, a Democrat, who has led the charge. “None of us here would ever consider paying $500 a month for a voice only service where calls are routinely dropped for no reason.” The FCC also implemented new rules it said would “discourage” advance payments [kickbacks to the jails] that the few dominate calling services give to prisons to win exclusive contracts, sometimes described as “kickbacks.” Advocates and even the phone companies themselves pushed the FCC to go further to end the payments altogether, which are technically called site commissions. But the FCC said its authority to do that is questionable. Clyburn encouraged states to reevaluate those payments and to cap rates at even lower levels at the local level, as a few states have already done. Most inmates’ calling rates will drop to 11 cents per minute, though rates will be capped at higher prices in smaller prisons and jails. Other transaction fees will be capped between $2 and $6. The cap is a more than 50 percent drop from previous limits, and those only applied to calls between states. The new cap will apply to all calls within a state and between states. Civil rights groups and others have pointed to the benefits of inmates being able to make calls affordably and how close contact with family can help reduce recidivism. Phone companies have been required to ensure that their rates for inmate calls are reasonable and fair. One way they have justified higher-than-normal prices in the past is by factoring in the upfront payments for contracts. The new order would allow these payments to go forward but would prevent phone companies from factoring them in when calculating phone rates.
I understand that a part of the corrections is punitive, but that is not an excuse to gouge prisoners and their families, particularly when the rest of us bear the cost of though increased recidivism and general misery.
The bad guys lose today, for a while at least.
I fully expect moves in congress to reverse this decision.
