News

Acting California Attorney General Kathleen A. Kenealy, along with the U.S. Department of Justice and the attorneys general of 20 other states and the District of Columbia, on Friday announced an $863.8 million settlement with Moody's Corp., a business and financial services company, to resolve federal and state civil claims related to the company’s misconduct in inflating ratings of residential mortgage-backed securities.

An investigation conducted by the Attorney General's Office showed that Moody's Corp. systematically misrepresented to the public, and to the California Public Employees' Retirement System (CalPERS) and the California State Teachers’ Retirement System (CalSTRS), that its ratings of structured finance securities were based on an objective and reliable analysis and not influenced by Moody's economic interests.

Moody’s clients relied on these ratings to invest in the structured finance securities, the collapse of which led to the 2008 financial crisis. 

“Moody’s Corp. misled their clients about the objectivity of its ratings and their misconduct caused significant losses to Californian’s pension funds,” Kenealy said. “I want to thank our California Department of Justice attorneys for their great work to hold Moody’s accountable.”

Moody's will pay a total of $863,791,823 to federal and state government entities. The Office of the Attorney General will recover $150 million in damages for the State of California, and the settlement recovers losses sustained by CalPERS and the CalSTRS on their investments.

The remainder of the total settlement proceeds will be distributed among the U.S. Department of Justice and the other 21 state attorneys general.  

As part of the settlement, Moody's agreed to a statement of facts which indicate that, despite its claims of independence and objectivity, the desire for market share resulted in it using more lenient rating criteria than it publicly claimed to be using, resulting in ratings which were higher than they would have been if Moody's had used its publicly stated criteria.

The settlement with Moody's arises from the investigation into mortgage-backed securities by Attorney General's Mortgage Fraud Strike Force, which was formed in May 2011 to comprehensively investigate misconduct in the mortgage industry.

The Attorney General's Office's additional efforts to investigate the mortgage crisis include securing approximately $20 billion for California in the National Mortgage Settlement and sponsoring the California Homeowner Bill of Rights, a package of laws instituting permanent mortgage-related reforms.

For more information on the U.S. Department of Justice settlement, visit http://www.justice.gov/ .

This settlement is the latest in several resolutions holding responsible the institutions that contributed to the financial crisis.

To date, the Attorney General's Office has recovered over $1 billion for California’s public pension funds.  In August 2014, the Attorney General obtained a $300 million settlement with Bank of America over its misrepresentations in residential mortgage-backed securities sold to CalPERS and CalSTRS.  Similar settlements were reached in July 2014 with Citigroup Inc. for nearly $200 million and in November 2013 with J.P. Morgan Chase & Co. for $300 million.

In February 2015 the Attorney General's Office announced a $210 million settlement with rating agency Standard & Poor's and its parent, McGraw-Hill Financial Inc.

LAKE COUNTY, Calif. – A Lake County Narcotic Task Force operation on Friday resulted in the confiscation of hundreds of methamphetamine pipes, thousands of nitrous oxide canisters and more than a dozen weapons.

Lt. Steve Brooks of the Lake County Sheriff's Office said that on Friday Narcotic Task Force detectives executed a series of search warrants throughout Lake County for retail “smoke shops” illegally selling methamphetamine glass pipes and for distribution of nitrous oxide gas for the purposes of intoxication.

Brooks said warrants were served at the two “Cheaper Cigarettes” locations on Lakeshore Drive and Olympic Drive in Clearlake, “Ed and Linda’s” on Lakeshore Drive in Clearlake, “Smoke on the Water” on Highway 20 in Lucerne and Mystic Barrel on Highway 20 in Nice.

Employees at two of the locations actually sold glass methamphetamine pipes to undercover detectives just prior to the raids, Brooks said.

During the search, narcotics detectives located a total of 803 glass methamphetamine smoking pipes, two 12 gauge shotguns, a .380 auto pistol and a .22 revolver, Brooks said.

In addition, Brooks said detectives seized 3,812 nitrous oxide canisters along with the canister “crackers” and balloons for inhalation.

He said criminal complaints are being sought for the owners of each establishment and several employees for selling/furnishing drug paraphernalia and distribution of nitrous oxide. A potential penalty for a violation of these sections is the revocation of the issued business license.

The firearms were seized, due to the fact that the person in possession was unable to explain where they came from and she was not the registered owner, Brooks said.

Sheriff Brian Martin expressed his dismay that business owners would try to profit by selling methamphetamine smoking pipes to members of our community.

“The methamphetamine epidemic that plagues our community contributes to countless quality of life issues, and brings additional crime to our neighborhoods,” Martin said. “Our deputy sheriffs and police officers work around the clock battling the effects of drug abuse in Lake County. We will take every action available to ensure that commercial dealers of paraphernalia are prosecuted to the full extent of the law.”

California and federal law make it illegal to use nitrous oxide as a recreational drug to get high. It is also a misdemeanor to be under the influence of nitrous oxide deliberately, unless the gas was administered for medical, surgical, or dental care by a licensed person, such as a dentist, Brooks said.

Lake County's two members of Congress on Friday voted against the effort to begin dismantling the Affordable Care Act.

Rep. Mike Thompson (CA-05) and Rep. John Garamendi (CA-03) both voted against S.Con.Res.3, a budget resolution that begins the process to repeal the Affordable Care Act, or ACA, which is being pushed by Republicans in Congress.

The bill passed by a 227 to 198 vote, which Garamendi said throws America’s health insurance market into a period of volatile uncertainty.

Thompson said the Republican Majority in the House “looked a lot like the dog that caught the bus as they took the first step in their campaign promise to repeal the Affordable Care Act. I do not believe they have fully thought this through.”

He said 30 million people could lose their health coverage because of the actions taken Friday.

“Protections for preexisting conditions will evaporate. Children will no longer be able to stay on their parents’ insurance policies. Three million jobs across the country are at risk. Hospitals will lose the resources and funding they need to keep our families healthy. California hospitals stand to lose over $14 billion, and my district alone would lose roughly $343 million. It is clear this slash and burn approach will cost Americans dearly,” Thompson said.

During statements on the House floor, Thompson said the Republicans have maintained their “repeal and replace” plan regarding health care. “After seven years and more than 60 votes, they still have not come up with the replace. This isn’t just a talking point. This is literally a matter of life and death for people – like Raymond from Napa in my District, who was diagnosed with stage 3 renal cancer in 1996.”

Thompson said Raymond's premiums rose year after year until the ACA was passed. “Before the ACA, Raymond worried about losing his insurance because of his pre-existing condition. In fact, his cancer returned in 2014. Thanks to the ACA, he got the treatment he needed,” Thompson said.

He added, “What are Republicans going to do for Raymond if they repeal the ACA and his premiums go up? Or his insurance drops him because he had cancer over 20 years ago? Or he hits his lifetime cap on coverage? Republicans need to ask themselves if they’re willing to return Americans like Raymond to a time when the care they needed was always beyond their grasp.”

Garamendi said that over the past six years, House Republicans have voted more than 60 times to repeal the Affordable Care Act, “yet we’ve never seen a comprehensive plan to replace it. Today’s vote to repeal the Affordable Care Act puts the insurance of up to 30 million Americans in jeopardy – 30 million Americans who would be one serious injury or disease away from destitution or worse.”

He continued, “Prior to the Affordable Care Act, 45,000 Americans died every year due to a lack of health insurance and people with pre-existing conditions were routinely denied coverage. I’ve said from day one that the Affordable Care Act can and should be improved, but we can’t go back to the dark days of regular denial of lifesaving medical care.”

On Thursday, the U.S. Senate voted at 1:30 a.m. to also begin the repeal of the Affordable Care Act. Both repeal votes were rushed in the first weeks of the new Congress without any committee hearings or an alternative to the existing system, Garamendi said.

By contrast, in considering the Affordable Care Act, the House held 79 bipartisan hearings and markups over the span of two years, according to Garamendi.

Garamendi cited a number of important facts about the ACA in his support of it.

Those include that the uninsured rate is now the lowest on record – with the uninsured rate currently at 8.6 percent. Under the ACA, the uninsured rate has been slashed almost in half from 16.3 percent in 2010 to 8.6 percent today.

In addition, 20 million previously uninsured Americans have gained health insurance coverage since enactment of the ACA, and the solvency of the Medicare Trust Fund has been extended by 11 years.

Other key facts about the ACA Garamendi cited include the following:

· More than 11 million seniors have saved more than $23.5 billion on their prescription drugs since 2010 – an average savings of more than $2,000 per senior.

· Under the ACA, unnecessary hospital readmissions in Medicare have fallen for the first time on record, dropping 8 percent between 2010 and 2015. Cumulatively since 2010, Medicare beneficiaries have avoided 565,000 hospital readmissions.

· Up to 129 million Americans have a preexisting condition. Before the ACA, this group could have been denied coverage or charged an exorbitant premium if they needed individual market insurance. Now, health insurance companies cannot discriminate against people based on their medical history.

· Before the ACA, 105 million Americans, most of them with employer coverage, had a lifetime limit on their insurance policy. The ACA prohibits annual and lifetime limits on policies.

· Since enactment of the ACA, health care costs are growing at the slowest rate in 50 years, resulting in savings for those with employer-based coverage. The average family premium for family coverage rose only 3.4 percent in 2016 – compared to an average rate of 7.9 percent from 2000 to 2010. Indeed, family premiums are $3,600 lower today than if growth had continued at the pre-ACA rates.

· Due to the ACA, all health plans now have limits on out-of-pocket costs, benefiting 22 million Americans with employer coverage who lacked this protection prior to the ACA.

· Under the ACA, health plans must cover preventive services – like flu shots, cancer screenings, contraception, and mammograms – at no extra cost to consumers, benefiting 137 million Americans, most of whom with employer coverage.

· An estimated 2.3 million young adults have benefited from the ACA provision allowing children to stay on their parents’ health insurance up to age 26.

· 87,000 lives and nearly $20 billion have been saved, due to a 17 percent reduction in hospital-acquired conditions, such as infections, from 2010 to 2014, under the ACA.

This week, the U.S. Department of Agriculture released the 2015 Expenditures on Children by Families report, also known as “The Cost of Raising a Child.”

The report, developed by economists at USDA's Center for Nutrition Policy and Promotion, or CNPP, estimates that for a child born in 2015, a middle-income married-couple family will spend between $12,350 and $13,900 annually (in 2015 dollars) – or $233,610 from birth through age 17 – on child-rearing expenses.

For the purposes of this report, a middle-income family is defined as the middle third of the income distribution for a two-parent family with children.

Families with lower incomes are expected to spend $174,690 and families with higher incomes are expected to spend $372,210 from birth through age 17. Many state governments use this annual report, first issued in 1960, as a resource in determining child support and foster care guidelines.

“As the economy continues to improve, USDA is committed to supporting the nutrition and health of individuals and families through our research and programs,” said Kevin Concannon, under secretary for Food, Nutrition and Consumer Services. “This report, which we have produced for 55 years, gives families a greater awareness of the expenses they are likely to face, and serves as a valuable tool for financial planning and educational programs, as well as courts and state governments.”

“Understanding the costs of raising children and planning for anticipated and unexpected life events is an important part of securing financial health. The U.S. Department of the Treasury, among other Federal agencies, has a wealth of information and tools that can help Americans plan for their future. MyMoney.gov can help you make a budget, find assistance with child care costs and save for emergencies or big purchases like a home or college education,” said Louisa Quittman, director of the Office of Financial Security for the U.S. Department of the Treasury. “MyMoney.gov can also help you provide money management lessons for your children to help them be more prepared for their financial future.”

The report details spending by married-couple and single-parent households; for married-couple households, spending in various regions of the country are examined.

Housing (29 percent) and food (18 percent) account for the largest share of child-rearing expenses for middle-income, married-couple families, followed by childcare/education (16 percent), transportation (15 percent), and health care (9 percent).

Clothing was the smallest expense, at 6 percent, and other miscellaneous child-rearing necessities from birth to age 18 accounted for 7 percent. This report does not include costs related to pregnancy or college costs.

“When CNPP first issued this report in 1960, housing and food were the two highest expenses, just as they are today,” said CNPP Executive Director Angie Tagtow. “But while housing costs have increased over time, changes in American agriculture have resulted in lower food costs, and family food budgets now represent a lower percentage of household income. For families who wish to lower their food costs even more, we offer a variety of resources at ChooseMyPlate.gov/budget.”

Across the country, costs were highest in the urban Northeast, urban West, and urban South; while lowest in the urban Midwest and rural areas. Much of the regional variation in expenses was related to housing. Differences in child care and education expenses also contributed to regional variation.

Overall, child-rearing expenses in rural areas were 24 percent lower than those in the region with the highest expenses, the urban Northeast.

It is important to note that child-rearing costs vary greatly depending on the number and ages of children in a household. As family size increases, costs per child generally decrease. Report author and CNPP economist Mark Lino, PhD emphasized how significantly costs are impacted by the number of children in a household.

“There are significant economies of scale, with regards to children, sometimes referred to as the 'cheaper by the dozen effect.' As families increase in size, children may share a bedroom, clothing and toys can be reused, and food can be purchased in larger, more economical packages.” said Dr. Lino.

As a result, compared to a child in a two-child family, families with one child spend 27 percent more on the only child and families with three or more children spend 24 percent less on each child.

CNPP economists used data from the most recent Consumer Expenditure Survey to present the most recent and comprehensive estimates.

The full report, Expenditures on Children by Families, 2015, is available on the Web at www.cnpp.usda.gov .

NASA scientists are crisscrossing the globe in 2017 – from a Hawaiian volcano to Colorado mountain tops and west Pacific islands – to investigate critical scientific questions about how our planet is changing and what impacts humans are having on it.

Field experiments are an important part of NASA’s Earth science research. Scientists worldwide use the agency’s field data, together with satellite observations and computer models, to tackle environmental challenges and advance our knowledge of how the Earth works as a complex, integrated system.

“At NASA we are always pushing the boundaries of what can be done from space to advance science and improve lives around the world,” said Thomas Zurbuchen, associate administrator of NASA’s Science Mission Directorate in Washington. “These field campaigns help us build better tools to address such issues as managing scarce water resources and alerting the public to natural disasters.”

New investigations

Three new field campaigns kick off this month.

Scientists preparing for a future Hyperspectral Infrared Imager (HyspIRI) mission will take to the skies above Hawaii to collect airborne data on coral reef health and volcanic emissions and eruptions.

This airborne experiment supports a potential HyspIRI satellite mission to study the world’s ecosystems and provide information on natural disasters.

Scientists working on a future satellite – the Plankton, Aerosol, Cloud, ocean Ecosystem (PACE) mission – set sail in January from Hawaii.

The month-long sea campaign across the Pacific on the research vessel Falkor will monitor the diversity of oceanic phytoplankton, microscopic plant-like organisms, and their impact on the marine carbon cycle.

Novel measurements will be compared to existing satellite observations and used in preparation for the PACE mission.

In February, the SnowEx airborne campaign begins flights over the snow-covered forests of Colorado for the first of a multiyear effort to determine how much water is stored in Earth’s terrestrial snow-covered regions. 

Continuing investigations

In addition to the new field campaigns, eight Earth science projects will continue this year.

The second deployment of NASA's Atmospheric Tomography (ATom) mission begins in January with a 28-day flight around the world. ATom will gather measurements of more than 200 different gases, as well as aerosols from the air near the ocean surface to approximately seven miles altitude.

The goal is to understand the sources, movement and transformation of short-lived greenhouse gases, such as ozone and methane, which are important contributors to climate change.

The Atmospheric Carbon and Transport – America (ACT-America) research team returns to the skies over the eastern half of the United States in January to continue tracking the movement of atmospheric carbon, the objective being to better understand the sources and sinks of greenhouse gases. Flights will originate from Louisiana, Nebraska and Virginia.

Three field campaigns are heading to the Arctic. In March, Oceans Melting Greenland (OMG) will conduct its second set of airborne surveys of glacier heights around the edge of Greenland and coastal ocean conditions. The mission is providing the first comprehensive look at how glaciers and oceans change year to year.

Operation IceBridge returns in March to the Arctic for the ninth straight year to measure changes in the elevation of the Greenland ice sheet and sea ice extent. In the fall, the team also will begin its yearly measurements of land and sea ice in Antarctica.

This summer, the Arctic Boreal Vulnerability Experiment (ABoVE) will start the airborne component of its decade-long campaign that began last year to study the ecology of the fast-changing northern reaches of Alaska and Canada.

A diverse suite of instruments will be flown to investigate the region’s permafrost, carbon cycle, vegetation and water bodies and inform future satellite missions. Scientists will also go into the field to support the airborne measurements.

Two experiments head back to the Pacific Ocean this year.

In February, the Coral Reef Airborne Laboratory (CORAL) project team will continue its airborne and in-water investigations in the Hawaiian Islands to assess the condition of threatened coral-based ecosystems.

In the spring, CORAL will target the waters off Palau and Guam and the rest of the Mariana Islands. In October, NASA’s second Salinity Processes in the Upper Ocean Regional Study (SPURS-2) returns to the eastern tropical Pacific to recover instruments installed in September to investigate the oceanic and atmospheric processes that control changes in salinity.

On the other side of the world, two field campaigns are returning to the Atlantic Ocean. From its base in Namibia, the Observations of Clouds above Aerosols and their Interactions (ORACLES) study will use airborne instruments this fall to probe the impact on climate and rainfall of the interaction between clouds over the southeastern Atlantic Ocean and smoke from vegetation burning in southern Africa.

The North Atlantic Aerosols and Marine Ecosystems Study (NAAMES) will take to the sea and air, for the third year, to study how the world’s largest plankton bloom gives rise to small organic particles that influence clouds and climate.

To follow all of NASA’s 2017 Earth science field campaigns, visit http://www.nasa.gov/earthexpeditions .

LAKE COUNTY, Calif. – Are you a victim of the Valley, Clayton, or Rocky fire? Are you a Lake County resident interested in escaping high rental prices and crowded living conditions?

For a very low monthly mortgage payment, and a willingness to partner with Habitat for Humanity, you can achieve the dream of homeownership.

The Habitat for Humanity Homeownership agents are holding a community meeting on Thursday, Jan. 19, from 5 to 7 p.m. at the Methodist Church Community Center at 16255 Second St. in Lower Lake to learn how their homeownership program works and what it takes to qualify.

It is easier than you think. Come join the discussion and take the first step towards a brighter future.

For questions regarding homeownership or this meeting, please call 707-994-1100, Extension 103.