Dick Fuld, Disgraced Former CEO Of Lehman Brothers, Makes Bizarre Comeback

Dick Fuld, part villain and part unforgivably very confused bystander to the financial crisis in the eyes of most -- and a victim of the financial crisis to himself -- made a bizarre comeback at a conference in New York on Thursday.

In his first public appearance (other than sworn congressional testimony) since the collapse of Lehman Brothers, Fuld blamed regulators, borrowers and rumors for the end of the 158-year-old, $47 billion firm he led. It was a “perfect storm” that sank Lehman, not his own leadership or decisions, Fuld said, while touting Lehman’s “success” to the audience. He also claimed that every one of the 27,000 employees who once worked for Lehman had been a risk manager, because they owned stock in the firm.

Lehman’s September 2008 collapse was the first of many bank failures and market seizures that fall. It sparked the financial crisis that ended in a $416 billion bank bailout and left the country mired in the Great Recession.

Fuld's comments were initially carried live on the financial news network CNBC, but the feed was pulled by conference organizers part way through his remarks. Technically, Fuld was at the conference to deliver a keynote address titled, "How Emerging Growth Companies Can Succeed in Today's Capital Markets: Perspectives from My Journey." His comments, however, were a well-rehearsed if less-than-convincing defense of his own actions leading up to the largest bankruptcy in U.S. history.

He denied that Lehman was a failed company in September 2008 and intimated that he and the firm were victims of a conspiracy centered around former competitors in regulatory positions with a vendetta against him. Fuld, nicknamed the “Gorilla” during his career for his overly aggressive style, seemed temperamentally unchanged, telling one conference questioner, “Why don’t you bite me?”

Months prior to Lehman’s fall, Fuld had declared that “the worst of the impact of the financial markets is behind us” and pushed subordinates to take more risk, sidelining or firing those who disagreed with him.

Fuld is now working at his own firm, which is focused on the kind of small deals he would have scoffed at as CEO of a massive investment bank. The venue itself was an indication of his fall: an otherwise barely noteworthy conference focused on selling shares in tiny public companies.

Nike Just Became Part Of The FIFA Corruption Scandal

It is not just FIFA officials and little-known sports marketing groups who are finding themselves in the crosshairs of the U.S.'s investigation into long-term corruption in international soccer. Nike seems to be caught up in the maelstrom as well.

Remarks by U.S. Attorney General Loretta Lynch on Wednesday, as well as indictments released by the Justice Department the same day, indicate that the iconic American corporation has been pulled into the massive global corruption scandal. Detailing the long history of bribery by some of the world's soccer governing bodies, Lynch said those offenses also extended to "agreements regarding sponsorship of the Brazilian national soccer team by a major U.S. sportswear company."

Her remarks referred to the landmark ten-year, $160 million deal that Nike struck in 1996 to sponsor the Brazil national team's well-known yellow, blue and green uniforms. Last year, Jose Hawilla, the owner and founder of the Florida- and Brazil-based sports marketing firm the Traffic Group, pleaded guilty to conspiracy to commit wire fraud for, among other things, accepting and passing along bribes and kickbacks in connection with that deal. Hawilla paid these bribes and kickbacks to a senior official in the Brazilian Football federation (CBF), who signed the deal along with Hawilla and four Nike executives.

U.S. Attorney General Loretta Lynch discusses the investigation during a press conference on Wednesday.

Lynch's comments followed the Justice Department's announcement that 14 people, including nine FIFA officials, had been arrested and indicted on Wednesday on numerous charges that include "racketeering, wire fraud and money laundering conspiracies."

The Justice Department's indictment notes that Hawilla and the unnamed Brazilian official also engaged in other corrupt deals in the years following the Nike contract. While it does not accuse Nike of any wrongdoing or of any knowledge of Hawilla's corrupt practices, it is unclear to what extent Nike vetted Hawilla before allowing him to act as their middleman with the Brazilian soccer federation.

"Like fans everywhere we care passionately about the game and are concerned by the very serious allegations," Nike said in a statement to The Huffington Post on Wednesday. "Nike believes in ethical and fair play in both business and sport and strongly opposes any form of manipulation or bribery. We have been cooperating, and will continue to cooperate, with the authorities."

Nike introduced its first soccer boot in 1971, but its market share remained small. Globally, it was barely a player in a multibillion-dollar market, then dominated by its chief competitor, Adidas. In 1994, Nike began a major push to increase its presence in the soccer world. As part of this effort, the company's co-founder and chairman, Phil Knight, "openly set his sights" on sponsoring Brazil's national team that year. By 1996, the company was able to sign the deal with CBF and has supplied the Brazilian team's uniforms ever since.

Brazil soccer player Luiz Gustavo poses for pictures during the presentation of the team's new uniform for the 2014 FIFA World Cup on Nov. 24, 2013.

Now, however, Brazil's soccer federation is named in the Justice Department's investigation.

"Other alleged schemes relate to the payment and receipt of bribes and kickbacks in connection with the sponsorship of CBF by a major U.S. sportswear company, the selection of the host country for the 2010 World Cup and the 2011 FIFA presidential election," read a statement from the department.

In 2008, Nike renegotiated its contract with Brazil, which now lasts until 2018 and is expected to be worth $34 million, SportsPro Media reported last year.

Women Need To Listen To This Advice Given To Yahoo CEO Marissa Mayer

You may think the advice that one super-successful corporate titan gives to another super-successful almost-CEO is something you can safely ignore.

Yet the last thing that Google founder Sergey Brin told Marissa Mayer right before she ascended to the throne of chief executive of Yahoo is something we all need to hear. Especially women.

In an interview with Patricia Sellers at Fortune, Mayer dished about the guidance Brin gave her in the minutes before Yahoo announced her appointment back in 2012. She said that Brin gave her all sorts of minor advice that she later wound up acting on -- like changing the Yahoo logo, one of the first things she did as CEO.

But as she was headed out the door, Brin called her back, Mayer told Sellers. "'Marissa, wait! Don’t forget to be bold,'" he said.

That’s it. That’s the advice women need to hear. Because many of us have confidence issues. I reported earlier Wednesday on a new study that offered up more evidence of the problem. The study revealed that female college students are less confident about their job and salary prospects than men.

It is the latest brick in a hard wall of evidence that shows women hold themselves back at work by not aiming higher. Facebook Chief Operating Officer Sheryl Sandberg talked about the issue in her highly publicized book “Lean In,” and the Atlantic published a long piece last year called the Confidence Gap that detailed a lot of depressing examples of women’s propensity to be very much not bold.

In one anecdote, authors Katty Kay and Claire Shipman tell the story of their friend who supervises two direct reports: Rebecca and Robert. Rebecca plugs away at her job, diligently doing good work. When she needs to talk to the boss, she makes an appointment. She doesn’t speak up in client meetings. When she gets tough feedback, sometimes she cries. Meanwhile, Robert is at the boss’s office door constantly with new ideas. A lot of them are bad, but he doesn’t seem to care.

Kay and Shipman wrote:

Our friend had come to rely on and value Rebecca, but she had a feeling it was Robert’s star that would rise. It was only a matter of time before one of his many ideas would strike the right note, and he’d be off and running—probably, our friend was beginning to fear, while Rebecca was left behind, enjoying the respect of her colleagues but not a higher salary, more responsibilities, or a more important title.

Of course, as the authors note, women are often in a double-bind when it comes to boldness. Women who are bossy and decisive at work are often labeled as "bitches." But things are changing, thanks to people like Sandberg and Mayer herself.

We can also thank some great new female comics. In a recent episode of “Inside Amy Schumer” called “I’m Sorry,” there’s a hilarious takedown of the female propensity to undersell ourselves and apologize for no reason. It involves a fake panel of women geniuses who step over themselves with self-deprecating nonsense.

You should check it out. Meanwhile, I’m so sorry for taking up your time with this.

Big Banks Plead Guilty To Market Manipulation, Will Pay $5.8 Billion

The age of multibillion-dollar bank fines with no admission of wrongdoing is over. The Justice Department announced Wednesday morning that five banks pleaded guilty to market manipulation, while also paying billions of dollars in fines.

Barclays, Citigroup, J.P. Morgan and the Royal Bank of Scotland admitted to illegally distorting foreign exchange markets. The banks formed what they called "The Cartel" and aimed to set a key currency marker, known as "the fix," at mutually beneficial values.

The fix is set every day at 4 p.m. London time and is used in the more than $5 trillion currency market to determine the price of trades and the value of large institutional holdings. Traders at the banks used instant messaging chat rooms to discuss where to set the fix.

In addition to admitting guilt, the banks will also pay fines. Barclays will pay $650 million, Citigroup $925, million J.P. Morgan $550 million and RBS $395 million. Barclays will pay another $1.3 billion to New York State, federal and U.K. regulators.

The Justice Department said it was charging the banks' parent companies because the wrongdoing was pervasive, and that the banks' punishment was "fitting considering the long-running and egregious nature of their anticompetitive conduct." To put the fines in context, in 2014, Barclay's net income was $3.5 billion, Citigroup's was $7.3 billion, J.P. Morgan's was $21.8 billion and RBS' was $3.9 billion.

A fifth bank, UBS, pleaded guilty to manipulating the London Interbank Offered Rate, which is called Libor. Libor is the most important international interest rate benchmark. UBS will pay $545 million in fines to the Justice Department and Federal Reserve. The value of more than $300 trillion in debt is tied to Libor.

The five banks will pay a further $1.6 billion in fines to the Federal Reserve.

This story has been updated to include more information from the Justice Department and the 2014 income of the banks mentioned.

Why A Wegmans In Brooklyn Is Great News For Low-Income Locals

The announcement that Wegmans plans to open a Brooklyn store sent a wave of excitement through New Yorkers on Wednesday. The proposed grocery store, slotted to open in 2017, would bring affordable food prices to a segment of the Fort Greene neighborhood that has long been waiting for its own high-quality supermarket.

The site sits next to the Farragut Houses, a public housing project near the Brooklyn Navy Yard, a city-owned industrial park on the East River. For many years, residents had little access to cheap grocery stores with large selections of fresh foods, even as new buyers poured money into historic townhouses and luxury condos several blocks away.

Back in 2010, former Mayor Michael Bloomberg's administration committed to a redevelopment plan for the dilapidated houses along Admiral’s Row at the Navy Yard. The plan included the construction of a supermarket, but it never got off the ground. Two potential developers had already pulled out by the time Steiner NYC secured its bid this week, with a Wegmans store anchoring the project.

The Navy Yard is situated along the northern border of Fort Greene, where home prices have climbed steadily over the last five years, according to market data from real estate website Trulia.

Townhouses within a quarter-mile of city housing are selling for around $1,100 per square foot, said Jerry Minsky, a broker at Douglas Elliman who also lives in Fort Greene. “You’re getting a lot of people from Europe and Manhattan with an extreme level of wealth,” Minsky said, adding that the area is “going through this Shangri-La now of being great for young professionals” who are making investments with parental support.

As a result, goods and services are also becoming more costly. A few affordable grocery stores in Fort Greene have already or will soon be shuttered, and public housing residents often travel several miles to Costco and Pathmark for lower prices, according to The New York Times.

“It’s hard for people on a lower income to deal with the cost of living when the neighborhood reaches a crescendo like in Fort Greene,” Minsky said. “I can go to a bodega and get organic if I choose it, but some people can’t afford that.”

The arrival of Wegmans, known for its fresh produce and low prices, will likely be a relief for its new neighbors. The store is also looking forward to serving the local community, said Jo Natale, a spokeswoman for the chain. It will begin by creating jobs, with an initial hiring round of 450 employees, many of them locals. Wegmans hopes its Brooklyn store will eventually employ as many as 600 people.

The chain had been looking to open a store in New York, but first needed a substantial plot of land. “This one is 74,000 square feet and large by New York standards,” Natale said of the Admiral's Row location.

The retailer was eager to settle in the Navy Yard when the site was proposed, having previously worked with the developer Steiner NYC on two New Jersey stores in Bridgewater and Manalapan.

Wegmans is still a relatively small retailer, with just 85 stores, mostly located in upstate New York and the mid-Atlantic region. But its popularity is buoyed by a cult-like following of devoted customers and a strong reputation for employee compensation. It’s been named the best supermarket in the country several times.

“Even this morning, we’ve been surprised by the reaction on social media,” Natale said Wednesday. “It’s very heartwarming. We are by most measures a small regional supermarket chain, and it makes it even more exciting to look forward to the opening.”

For now, Steiner doesn't expect the $140 million redevelopment project to impact nearby housing prices.

“New York is so dense that I don’t think it will change the fundamental dynamics of the neighborhood,” said Doug Steiner, chairman of Steiner NYC and Steiner Studios, one of the largest soundstages outside Hollywood and the set of several HBO shows, including "Girls."

As part of the redevelopment deal, Steiner NYC will preserve two buildings on the site. One will be converted into a community facility, and the other set aside for retail or light industrial space, Steiner said.

In addition, the firm will restore an area of around 20 acres near Kent Ave. as part of a studio expansion.

“Wegmans checks all the boxes in terms of affordability and quality, and they’re fantastic employers,” Steiner said. “They’re the ideal supermarket, and it’s long overdue for the area, both for shopping and job opportunities.”

The States With The Most Stay-At-Home Fathers

Not too long ago, it was practically unheard of for a father to raise his children full-time instead of working for money. In the 1970s, only six U.S. men identified themselves as stay-at-home parents. Not 6 percent -- six men, in the entire country.

Last year, by contrast, an estimated 1.9 million fathers remained home with the kids -- accounting for 16 percent of the stay-at-home parent population, according to a HuffPost analysis of U.S. Census data.

That’s definitely a huge step forward for fathers seeking to shed the stigma that still lingers around the idea of a man as primary caretaker. But the figure comes with a significant caveat: Most fathers aren't staying home voluntarily. According to one prominent researcher, 80 percent of those 1.9 million dads would be working outside the home if they could.

The reasons why any parent might stay home are complex and often very personal. The job market is certainly a factor, but the cost of child care and cultural issues also likely play a key role, says Noelle Chesley, an associate professor of sociology at the University of Wisconsin-Milwaukee who has researched stay-at-home fathers.

The Huffington Post took a state-by-state look at men as stay-at-home caregivers, as seen in the map and table in this article. We found some instances where high proportions of dad caregivers seemed to correspond with high unemployment rates. In West Virginia, for example, where men account for an estimated 30 percent of stay-at-home parents, the unemployment rate is 6.6 percent -- well above the national average of 5.4 percent -- and the percentage of adults who are employed is the lowest in the nation.

Yet elsewhere, the correlation did not hold. In South Dakota, for example, 39 percent of stay-at-home parents are fathers, but unemployment is comparatively low.

The very definition of "stay-at-home dad" is also up for debate. The Census Bureau defines the term very narrowly, excluding same-sex partners, single dads and parents of kids who are older than 15, as well the fathers in families where both parents do not work.

Our analysis used a broader definition: any father who's been unemployed for at least a year, and who is also at home with a child or children under 18. With this approach, we sought to replicate the methodology used by the Pew Research Center in a 2014 report.

[Click the column header to sort the data]

AOL CEO: Verizon Deal Will 'Extend The Tarmac' For Mobile

NEW YORK -- AOL CEO Tim Armstrong said Tuesday morning that the company's $4.4 billion acquisition by Verizon would bolster AOL's hope of dominating the burgeoning and lucrative mobile ad market.

Comparing to the company’s mission to an airplane’s flight path, Armstrong said selling to Verizon was not changing direction but, rather, “extending the tarmac.”

“This is not a deal done out of necessity,” he said before a crowd of staffers gathered in the fourth-floor reception room of the company’s Manhattan headquarters. “This is a deal done out of where the future is overall.”

According to Armstrong, one benefit of the deal announced Tuesday morning will be that, thanks to AOL’s push to make its wide variety of media properties mobile-friendly, the merged company will have access to a huge amount of user data from those sites. And while Armstrong did not mention it, data could also flow in the other direction, from legacy Verizon businesses to AOL media properties. The elusive end goal for tech companies is to squeeze every possible penny out of, or 'monetize,' the data they collect. Monetizing data generally means sharing it with other companies, which tends to make the privacy-minded users who generate that data uncomfortable. Now, Verizon and AOL will be able to monetize their data without sharing it with outside parties.

Though Armstrong insisted Verizon wanted to buy AOL mostly for its content properties -- which include The Huffington Post, Engadget and TechCrunch -- many have speculated that the company’s newly launched automated ad platform, AOL One, is the real prize. AOL earned $995 million from display and search ads on its own properties last year. The company made almost as much -- $856 million -- selling ads for third-party sites, according to Fortune. Still, Armstrong said all editorial brands were included in the deal, allaying worries about spinoffs, at least in the near term.

The deal may also boost the companies' work around mobile video.

AOL began investing heavily in video two years ago, when ad sales for online video in the U.S. hit $2.8 billion, a 19 percent increase from the previous year, according to the Interactive Advertising Bureau. That year, the company bought the programmatic video ad platform Adap.tv -- which became a cornerstone of AOL One. A month later, HuffPost launched HuffPost Live, the publication’s streaming video network.

“Mobile is the centerpiece,” Armstrong said. “We need to be on every single screen.”

Verizon, which streams television channels through its FiOS division, also has a hand in the lucrative live-sports business with the exclusive NFL Mobile app.

“You’re going to be at a company that does everything from NFL live games to HuffPost Live,” Armstrong said.

He said the deal was completed just after midnight, hours before the public announcement was made. It began as an operational deal, but became a merger. If the acquisition gets the green light from regulators, the deal will close before the end of summer, Armstrong said.

"This deal,” he said, “puts us at the big table.”

Jenny Che and Damon Beres contributed reporting.

Verizon To Buy AOL In $4.4 Billion Deal

Verizon announced Tuesday morning that it plans to buy AOL for $4.4 billion.

The all-cash deal between the telecom giant and the owner of The Huffington Post will be completed this summer, pending regulatory approvals.

The entrance to AOL headquarters at 770 Broadway in New York City on May 12.

Lowell McAdam, Verizon chairman and CEO, said in a press release that the merger will help "provide a cross-screen connection for consumers, creators and advertisers to deliver that premium customer experience."

"AOL has once again become a digital trailblazer, and we are excited at the prospect of charting a new course together in the digitally connected world," McAdam stated. "AOL's advertising model aligns with this approach, and the advertising platform provides a key tool for us to develop future revenue streams."

Lowell C. McAdam, chairman and chief executive officer of Verizon Communications.

AOL CEO Tim Armstrong said he will continue to lead the company once the deal goes through.

"The leadership at AOL is staying and I am staying -- enthusiastically, and we made that part of the deal," he wrote in a memo to employees early Tuesday morning. "We know their team well and they know our team well. The cultures share very similar values and are both working on very similar ways to do good while doing well."

Armstrong also noted that the deal may mean better wages and benefits for AOL employees.

At a town-hall meeting with employees, Armstrong said the company had no plans to move from its New York headquarters, located in three floors on 770 Broadway on the edge of Manhattan's East Village. He said AOL would operate largely as a standalone division of Verizon, and none of its brand names would change.

AOL stock rose nearly 19 percent to $50.59 by mid-afternoon on Tuesday. Verizon shares fell nearly 1 percent to $49.55.

"For you this means growth, it means mobile, and it means compensation that will be equal or better to your AOL compensation. Your benefits will not change in 2015. We will eventually go on Verizon’s benefit plan, but that won’t happen until 2016 or later and we will work with Verizon to make sure the benefits are strong and cover important areas of people's lives," Armstrong wrote in the memo. "Your job and what you do on a daily basis should be enhanced by the market opportunity this deal is targeted to capture. The simple answer to the question of 'what does this mean for you?' should be, 'I just got more resources, more support and more growth opportunity.'"

The deal comes 15 years after AOL’s catastrophic merger with Time Warner. On the heels of the dot-com bubble burst, resulting in a $98.7 billion loss in 2002, the combined company was forced to write down the value of AOL, creating the biggest annual corporate loss in history.

In 2009, Time Warner finally spun off AOL. The company began investing heavily in media properties. AOL acquired TechCrunch in 2010. A year later, it purchased The Huffington Post for $315 million.

By 2013 -- when ad sales for online video climbed 19 percent to $2.8 billion, according to the Interactive Advertising Bureau -- AOL began investing heavily in video products. That year, it bought the programmatic video ad platform Adap.tv for $405 million. A month later, HuffPost launched HuffPost Live, its streaming video network. Last month at the 2015 Digital Content NewFronts -- a convention for media companies to show off new content to advertisers -- AOL promoted a slate of new reality show programs starring celebrities such as James Franco and Oscar-winner Jared Leto.

In April, AOL launched One, an automated platform for buying ads across different media. The service, which provides open data to ad buyers, pits AOL against tech goliaths Facebook and Google, which limit the data clients can use.

1) Verizon just bought a strong ad tech stack and is probably going to be most advanced mobile to desktop player soon.

— Darren Herman (@dherman76) May 12, 2015

AOL CEO Tim Armstrong said he will stay on.

“The decision to enter into an agreement with Verizon was made over a long and thoughtful time period and both companies see significant opportunity to service consumers and customers in a differentiated and exciting way,” Armstrong told employees. “On a personal level, the decision to go forward with an agreement was predicated on giving our talent the best opportunity to build a multi-decade business that would be deeply growth oriented and aimed directly at the platform shift that video and mobile are offering the world -- today and 20 years from now.”

In recent years, investors have urged AOL to merge to Yahoo, the troubled online media and tech giant. As recently as January, the activist investor Starboard Value LP sent a letter to Yahoo CEO Marissa Mayer, advising her to consider a deal with AOL.

Still, AOL's cash-cow remains its dial-up business, which had 2.2 million subscribers at the end of 2014. Subscription revenue reached $606.5 million last year, comprising about 24 percent of overall sales.

Seems like Verizon’s Fios offerings could cannibalize AOL’s lucrative dial-up business.

— Matt Yglesias (@mattyglesias) May 12, 2015

It's unclear whether Verizon will sell off its publications, the biggest three of which are HuffPost, Engadget and TechCrunch. AOL has had serious discussions to spin off HuffPost to German publishing giant Axel Springer, according to Re/code co-editor Kara Swisher, a highly respected digital media reporter. Facing declining print ad sales in Germany, the publisher is adding digital properties to its portfolio, most recently by partnering with Politico to launch a European edition.

"We've spoken to partners about content and scaling," Armstrong told Re/code. "Obviously we've seen a lot of interest in the content brands we have. So over the course of the summer, stay tuned."

At the company meeting Tuesday, Armstrong touted the company's editorial properties, including HuffPost, as the crown jewels that attracted Verizon.

"You're going to be a company that does everything from NFL live games to HuffPost Live," he said, referring to Verizon's NFL Mobile streaming app.

Still, the merger would mark the second time in less than a year that Verizon owned a media property. Last year, the telecom giant launched SugarString. The tech site was shuttered in December after drawing fire for refusing to let its reporters write about net neutrality or National Security Agency spying, two hotly debated issues in which Verizon held stake.

To be clear: This changes nothing editorially at @Engadget. We'll continue to cover Verizon, net neutrality, etc... the way we always have.

— Terrence O'Brien (@TerrenceOBrien) May 12, 2015

Here is Tim Armstrong's full email to employees:

AOLers –-

As you have heard me say many times over the last 5 years since we became an independent AOL, we are building toward becoming the largest media technology company in the world. While there are search platforms, social platforms, and commerce platforms, we have built a very meaningful media platform and AOL today is a media platform company powering our brands and the brands of over 30,000 partners.

If there is one key to our journey to building the largest digital media platform in the world, it is mobile. Mobile will represent 80% of consumers’ media consumption in the coming years and if we are going to lead, we need to lead in mobile. Over the last 18 months we set a goal of moving AOL into a leading position in mobile, mobile video, and mobile registered consumers. We are approaching 400 million global consumers, we have built one of the best advertising platforms in the world, and we have one of the most talented teams in the world -- and now it is time for us to fully open up the mobile frontier.

Today, we are announcing that the largest and most innovative wireless and cable company -– and the one investing the most in high quality mobile content -– is acquiring AOL with the strategy of building the biggest media platform in the world. The company is Verizon and the deal will game-change the size and scale of AOL’s opportunity. Just as AOL has propelled The Huffington Post, Adap.tv, TechCrunch, and other companies we have acquired, Verizon will propel AOL and comes to the table with over 100 million mobile consumers, content deals with the likes of the NFL, and a meaningful strategy in mobile video.

The decision to enter into an agreement with Verizon was made over a long and thoughtful time period and both companies see significant opportunity to service consumers and customers in a differentiated and exciting way. On a personal level, the decision to go forward with an agreement was predicated on giving our talent the best opportunity to build a multi-decade business that would be deeply growth oriented and aimed directly at the platform shift that video and mobile are offering the world -- today and 20 years from now.

There are two important questions you might have at this point in the letter:
1. What does this mean?
2. What does this mean for me (meaning you)?

The deal means we will be a division of Verizon and we will oversee AOL’s current assets plus additional assets from Verizon that are targeted at the mobile and video media space. The deal will not change our strategy -- it will expand it greatly. The deal will give our content businesses more distribution and it will give our advertisers more distribution and mobile-first features. The deal will add scale and it will add a mobile lens to everything we do inside of our content, video, and ads strategy.

For you this means growth, it means mobile, and it means compensation that will be equal or better to your AOL compensation. Your benefits will not change in 2015. We will eventually go on Verizon’s benefit plan, but that won’t happen until 2016 or later and we will work with Verizon to make sure the benefits are strong and cover important areas of people's lives. Your job and what you do on a daily basis should be enhanced by the market opportunity this deal is targeted to capture. The simple answer to the question of “what does this mean for you?” should be, “I just got more resources, more support and more growth opportunity.”

The leadership at AOL is staying and I am staying -- enthusiastically, and we made that part of the deal. We have the opportunity to build a unique and globally scaled media technology company with the scale and resources we need to make that happen. Verizon and AOL are very large partners today -- in content, in ads, and in the technology. We know their team well and they know our team well. The cultures share very similar values and are both working on very similar ways to do good while doing well. Diversity and women’s leadership are at the top of both companies’ agendas and we look forward to having a consumer and industry impact on those important issues.

The future in front of AOL and the industry requires scale, mobile, and video – and partnerships. In our lifetime, we will see the connection of the world on very large and very fast networks – and to play in that world with our strategy requires us to take the natural steps to secure our ability to shoot for the stars. This deal is aimed at the stars and we are going to pursue the joint vision of building the most significant media platform in the world.

I have been a buyer of AOL over the last 5 years –- and that is an investment in one thing -- our talent. We have reviewed every hire coming into the company over the last 5 years and we have taken extraordinary risks and faced extraordinary challenges over the last 5 years. There is nothing more meaningful than watching our team turn-around this great company and restoring it to growth when most people had left it for dead.

AOL is back and now we are joining forces with Verizon to build the best media technology company in the world. Let’s mobilize. -- TA

Why This Live Nation Exec Quit The Business To Become A Meditation Guru

Something changed the moment six years ago when Jason Garner’s mother, sick with stomach cancer, took her last breath in his arms.

After mourning her death, Garner, then 37, returned to his job at event promotion giant Live Nation, where he served as chief executive of the concert division. He didn’t last another year there.

“I realized how much of my life had been subconsciously driven to make my mom proud, to make society proud, to do something, to be a good boy,” Garner, now 42, told The Huffington Post in an interview this week. “I realized there had to be something more. This emptiness and lack of fulfillment I was feeling -- there had to be something more.”

He embarked on a spiritual journey, meditating in the Shaolin Monastery in China and connecting with himself. Now running a consultancy from his home in Manhattan Beach, California, he has devoted himself to teaching business people how to meditate and find inner balance between work needs and personal, spiritual ones.

“As business leaders, we know that if we don’t take care of our workforce, we end up with a sick and diseased workforce,” said Garner, who authored a book on his experience titled … And I Breathed. “The same thing is true with the workforce that are the cells of our bodies. When we nurture them, they respond.”

Each year, American companies lose an estimated $200 billion to $300 billion because of issues related to workers' stress. Meditation can help. Meditating for just 25 minutes a day for three days in a row can decrease how much of the stress hormone cortisol the body emits, according to a 2014 study by Carnegie Mellon University.

Not everyone has the luxury of quitting a high-paying job to find inner peace on the other side of the planet, though. Fortune magazine twice featured Garner on its annual list of the highest-paid executives under 40. Near the end of his Live Nation tenure, he oversaw global tours by such musical acts as Madonna and The Police.

“Luckily, I had worked really hard my entire young life,” he said. “So I was able to put that money to really good use on taking care of myself and discovering these things about myself.”

But finding spiritual balance doesn’t require a Chinese monastery or a full-time commitment to meditation, he said.

“The idea of balance sounds like, if I spend 10 to 12 hours a day working, do I need to spend 10 to 12 hours a day doing some of these monk-like activities? No way,” Garner said. “There’s some really powerful activities that you can build into your daily routine.”

Start the morning with meditation, for instance. Practice yoga after work. Eat nutritious meals.

He compared mending a relationship with the body to making up after clashing with a boss at work.

“If you stopped by the boss’s office and said, hey look let’s smooth things over, they’d say OK and you’d move forward,” he said. “It’s never too late.”

We Need To Stop Pretending Work-Life Balance Is A Woman's Issue

It’s time for everyone to come out of the closet.

Not that closet. I’m talking about the white-collar trap where those of us who wish to have lives outside of the office hide our true feelings and instead fake like we’re working all the time. Most of us have a foot in that closet, pretending to some extent that being tethered to our email 24/7 has somehow freed us up to have personal lives.

This thought hit home after reading some research about a prominent consulting firm where many men pretend to work 80-hour weeks, so that they are still regarded as star employees.

These men have the same kind of work-family balance issues that women face, but the guys' problems get a lot less attention. And that's a shame.

“Work-life balance issues aren’t just women’s issues. Even in elite jobs, men are experiencing challenges at the same rate as women, but because we expect different things from men and women, men develop different strategies,” Erin Reid, an assistant professor at Boston University’s Questrom School of Business who conducted this study, told The Huffington Post.

Reid and other researchers interviewed 82 consultants at the firm, which she's dubbed AGM (a pseudonym). She also looked at consultants’ performance reviews and talked to former employees. Reid wrote about her findings in the Harvard Business Review and in a longer paper for the journal Organization Science. They were later reported by the New York Times.

The culture at AGM, like many big consulting firms and law firms, is all about putting in the hours. Consultants are expected to commit themselves wholly to the work and be available at any time to both clients and the firm to get the job done: 60 to 80-hour workweeks are the norm.

One consultant puts it this way in Reid’s paper:

You know AGM people, we’re on our BlackBerries. We’re thinking about our work 24/7. I mean, maybe you tune out for a little while here and there, but AGM people work all the time, all the time. I mean, you wake up at night, you’re dreaming about it. The first thing you do is you pick up your BlackBerry, you’re on it through the morning. You get to the office, you’re working through the day, you sit at your desk, you know, you’re cancelling plans.

The more of a committed, extreme player you are, the bigger your rewards, the better your performance rating and the quicker you’re promoted.

Lots has been written about how this kind of culture punishes women, particularly mothers. Less attention has been paid to how it affects men.

“The main takeaway seems to be that these jobs require you to work all the time, and women have difficulty but men don’t. That didn’t resonate with people that I knew in my life,” Reid told HuffPost this week, in explaining why she did the study. “The men I know aren’t super happy working all the time.”

A majority of the male consultants Reid interviewed were miserable with the always-on mentality. Some complained “of children crying when they missed their soccer games, of poor health and substance addictions caused by how they worked, and of a general sense of feeling 'overworked and underfamilied,'” Reid writes.

The women at the firm -- mothers especially -- weren’t quite expected to work as hard as the men. The HR department had formal policies to help them -- women asked for reduced work hours, took maternity leave, etc. Those accommodations came with penalties, according to Reid's study. Women who asked for flexibility weren't considered “true ideal workers,” she writes. “They were consequently marginalized within the firm.”

The men who asked for formal help were also dinged. One asked for a three-month unpaid paternity leave, something his employer is legally bound to offer thanks to the Family Medical Leave Act. “I felt like this was the only time in my career I would be able to do this,” he told Reid. “But the original reaction I actually got inside of the firm was 'oh no, you can’t take three months off.'"

He settled for six weeks unpaid -- and worked hard the rest of the year. Didn’t help. He was passed over for a promotion because, his supervisor said, they couldn’t evaluate his performance that year with such a big gap in his employment.

Many other men at AGM -- and a few women -- figured out a new way to get the balance they wanted: faking it. They figured out how to structure their work so it looked like they were putting in 80 hours -- but really were closer to 50.

Men found local clients that required less travel. They strategically emailed at off hours so it looked like they were pulling all-nighters or working weekends -- a maneuver I’m sure many of us can relate to.

One man described taking his family on a five-day ski trip -- on work time. From Reid's study:

“I skied five days last week. I took calls in the morning and in the evening but I was able to be there for my son when he needed me to be, and I was able to ski five days in a row,” he tells Reid. He clarified that these were work days, not vacation days: “No, no one knows where I am…. Those boundaries are only practical with my local client base.… Especially because we’re mobile, there are no boundaries.”

On Facebook, one of my friends was inspired by the fakers: “Women, here's what we can learn from men, don't ask for permission but do what you need to do to be successful at work and at home," she wrote when sharing the piece.

But maybe the path to success doesn’t start with everyone pretending that a 24/7 culture is OK and trying to fit their lives into it.

Imagine if more and more workers simply rebelled against the culture of face time? Or if firms like AGM started to understand that people can have lives outside the office -- and still be devoted workers.

“Organizations need to change,” said Reid, who has been hearing from lots of people for whom AGM's culture resonated all too well. Elite firms should perhaps not have the default expectation that workers put in 60-hour weeks and be available to travel at the drop of a hat, Reid said.

Still she doesn’t expect any changes at AGM. The firm may now understand it has a problem, but Reid said that it hasn't done much about it since she presented her results to the firm back in 2011.

The Way We Shop Has Completely Transformed In The Last 10 Years. Here's Why.

In 2005, shopping malls reigned supreme. There were a handful of online-only retailers, but they were nascent, at best.

A lot has changed over the last decade.

Now, the teeming centers that once drew urban and suburban shoppers are giving way to denser complexes built to house retail locations, commercial offices and residential space.

“Almost nobody is building malls. They are building ‘alls,’” said Paco Underhill, CEO of the retail consultancy Environsell, in an interview with The Huffington Post. “If you think of the typical American mall, how many have a grocery store? A drugstore? A hardware store? A place to get your laundry done? The answer is none of them.”

Younger consumers crave the convenience of stores within walking or biking distance of where they live. They want "alls," not traditional shopping malls.

“Many millennials would love to be in a place where they can live, work and shop and never have to step into their cars,” said Underhill.

Luxury malls, located in wealthy areas and containing mostly high-end retailers, have fared well since the Great Recession, but the wider industry is suffering. Nearly one-fifth of the country’s non-outdoor malls have vacancy rates of 10 percent or higher, according to The New York Times. The paper reports that over 3 percent of malls are thought to be dying, meaning that 40 percent or more of their stores are vacant. In 2006, that description applied to less than 1 percent of malls.

Underhill, a popular commentator on the future of retail, said that on Friday he will speak to a group of chief executives of the country’s biggest mall operators, explaining to them the importance of reconfiguring existing mall spaces to accommodate millennials' new, multifaceted demands.

"What we're watching is the better treatment of the art and science of building and managing commercial spaces," he said.

The rise of "alls" replacing malls looks likely to continue for the next decade or so.

“They’re essentially higher-end versions of strip malls,” Sucharita Mulpuru, an analyst at the market research firm Forrester Research, told HuffPost. “It’ll probably be like this for at least the next decade, if not the next two decades.”

Part of what has eroded the popularity of malls is the rise of the Internet -- a one-stop shop with every kind of inventory imaginable. Online shopping has skyrocketed since 2005.

“It’s a lot more Amazon now,” Mulpuru said. “That’s the single biggest difference.”

Last year, the fourth-quarter e-commerce sales in the United States topped $79.6 billion, up 14.6 percent from the same period in 2013, according to data from the U.S. Department of Commerce.

Holiday season e-commerce sales have grown steadily since 2005.

Computers are much more sophisticated now than they were in 2005, of course -- and their users are, too. Plus, countless numbers of online retailers have cropped up in the past decade.

“In 2005, maybe there were 10 sites that sold discounted luxury goods, for example,” said Underhill. “Now there are more than 200.”

It remains to be seen whether traditional malls can regain their footing, but e-commerce, and the desire to live, work and shop all in the same close vicinity, seem likely to define retail in the decade to come.

Sheryl Sandberg Makes First Public Comment Since Husband's Death

On Tuesday, Sheryl Sandberg made her first public statement since her husband, Dave Goldberg, died suddenly while exercising on vacation in Mexico four days ago.

Hours after President Barack Obama wrote a stirring tribute on the White House’s official Facebook page, Sandberg responded to the post.

"Thank you President Barack Obama for this beautiful tribute -- and for your friendship to our family," she wrote. "Dave Goldberg admired you for your leadership, passion, and your deep love of sports."

Later that evening, Sandberg also shared a personal eulogy about her late husband in a Facebook post of her own, and thanked family and friends for their support.

"I met Dave nearly 20 years ago when I first moved to LA. He became my best friend," she wrote. "He showed me the internet for the first time, planned fun outings, took me to temple for the Jewish holidays, introduced me to much cooler music than I had ever heard."

She recalled their 11 years together as "the deepest love, happiest marriage, and truest partnership," ultimately rewarding with the birth of their two children. "He gave me the experience of being deeply understood, truly supported and completely and utterly loved – and I will carry that with me always," she wrote.

Read her full statement:

I want to thank all of our friends and family for the outpouring of love over the past few days. It has been...

Posted by Sheryl Sandberg on Tuesday, May 5, 2015

Sandberg, the chief operating officer of Facebook, also changed the cover photo of her Facebook page to a picture of her and her husband, who served as the chief executive of SurveyMonkey before his death.

Goldberg died Friday of a head injury after he was found on the floor of a gym at near the Mexican coastal town of Puerto Vallarta. He was rushed to a hospital, where he was later pronounced dead.

UPDATE: This post has been updated to include Sandberg's latest statement.

Corinthian Colleges Files For Bankruptcy

Corinthian Colleges Inc. filed for bankruptcy on Monday, capping a year in which one of the nation's largest for-profit career school chains slowly collapsed under the watch of the U.S. Department of Education amid allegations that it had systematically deceived students with false graduation and job placement rates.

The company's collapse comes a week after it shut down its remaining 30 locations, leaving 16,000 students scrambling for options. At its peak, the company operated more than 120 colleges with more than 110,000 students across North America under the Everest, Wyotech and Heald brands, and investors valued the company at more than $1.4 billion.

Corinthian listed $19.2 million in assets and $143.1 million in debts in its Chapter 11 petition, filed Monday with the U.S. Bankruptcy Court in Wilmington, Delaware. Students at Corinthian's schools have received about $4 billion in federal student loans and $2 billion in federal grants since the start of the 2010-2011 academic year, according to Education Department data. Most of that money flowed to the school in the form of tuition and fees.

Corinthian fell out of favor with the Department of Education last summer over a paperwork dispute, leading to a cash crunch at the company after the department slowed its access to federal financial aid. The Education Department subsequently bailed out the company and brokered a sale of more than half of Corinthian's campuses to ECMC Group, one of the department's contracted debt collectors, in an effort to avoid a collapse that could have forced the department to forgive hundreds of millions of dollars in federal student loans given to Corinthian's students.

Meanwhile, the department watched from the sidelines as the federal Consumer Financial Protection Bureau sued the company for allegedly duping students with fake job placement promises. The department also shunned pleas by Senate Democrats and state prosecutors to forgive Corinthian students' federal student loans on the grounds that they were misled into enrolling in its schools.

As the company descended into insolvency, the Education Department allowed it to continue to enroll new students at its remaining campuses in an effort to keep its schools attractive to potential buyers. The Education Department's hand-picked monitor, Patrick Fitzgerald of Skadden, Arps, Slate, Meagher & Flom LLP, had been keeping tabs on the company as part of its agreement with the department.

Federal and state authorities have accused Corinthian of lying about its graduation and job placement rates, misleading potential students into enrolling and stumping up tens of thousands of dollars to obtain allegedly questionable credentials. State prosecutors in Massachusetts, California and Wisconsin have separately sued the company, as has the federal consumer bureau. California settled similar accusations with the company in 2007.

"For too many students, Corinthian turned the American dream of higher ed into a nightmare of debt & despair," Rohit Chopra, the federal consumer bureau's top student loan official, said April 26 on Twitter.

On April 14, the Education Department piled on, accusing Corinthian's Heald schools of misleading students and accreditation agencies about its graduates’ employment rates. The department said it found 947 false job placement rates dating back to at least 2010, and alleged that Corinthian had shown a “blatant disregard” for the federal student loan program.

The Education Department levied a $30 million fine against the company that hasn't yet been paid. In light of Monday's bankruptcy filing, it's unclear whether the department will ever collect the fine or recoup any taxpayer funds from Corinthian.

Corinthian has denied wrongdoing. When it announced on April 26 that it would immediately shut down its remaining campuses, the company blamed federal and state regulators for its abrupt closure.

Students enrolled in Corinthian’s programs but who are unable to complete their studies as a result of the company’s shutdown are eligible to have their federal student loans canceled if they choose not to transfer any of their Corinthian credits to a new school. There are few transfer agreements in place between Corinthian’s schools and traditional public or nonprofit colleges. The Education Department told Corinthian students to consider more than a dozen for-profit schools whose owners are under state or federal investigation, a move that Sen. Dick Durbin (D-Ill.) promptly criticized last week.

The school's sudden collapse is exactly what the Education Department has been trying to avoid since last summer. Education Secretary Arne Duncan's handling of Corinthian has given rise to a growing movement of so-called "debt strikers" who are refusing to repay the federal student loans they took out to attend Corinthian's schools.

Known as the "Corinthian 100," more than 100 Americans are publicly refusing to make monthly payments on debt they view as illegitimate in light of Corinthian's allegedly false statements and the Education Department's alleged failure to properly police the company's schools and protect students. They want the department to discharge all federal student loans held by current and former Corinthian students.

The Education Department could pass on much of the cost to Corinthian, but with the company claiming its debts exceed its assets by nearly $124 million, it’s unlikely the department would be able to recoup those losses.

Dorie Nolt, an Education Department spokeswoman, said the department would attempt to secure from Corinthian "as much of the $30 million as possible." She declined to answer further questions or make any department officials available for an interview.

The debt strikers were to meet with senior Education Department officials on Monday, but canceled their meeting after news reports indicated that the department had already ruled out the group's central demand.

"We refuse to be the pawns of a department that seeks to use the students’ campaign to give cover to their ongoing failures," the group said in a statement.

The Education Department's failure to police the company ultimately played a role in its demise.

In January 2014, about three months after the state of California sued Corinthian for allegedly misleading students about their future employment opportunities, Education Department officials sent Corinthian a letter requesting information about its reported job placement rates. At the time, the company was facing pressure from a growing group of state and federal authorities that wanted to probe Corinthian’s practices.

A few months later, in May 2014, Corinthian hired Barclays, the giant British bank, to explore a potential sale of its schools, according to a court filing by William Nolan, the company’s chief restructuring officer and a senior managing director at FTI Consulting.

The next month, the Education Department sent another letter to the company, this time claiming that the answers to its January letter were insufficient. The department forced the company to wait 21 days before it could access federal financial aid.

Nearly 90 percent of Corinthian's revenues came from taxpayer cash, Nolan said in the court filing, and the delay in accessing the funds came during the final month of the company’s fiscal year. The cash squeeze threatened the company’s survival, leading Corinthian to strike a deal with the Education Department in which the company would get immediate access to cash in exchange for eventually winding down its operations through sales and orderly shutdowns.

In November, the Education Department helped ECMC Group buy more than 50 campuses from Corinthian to be part of a new unit called Zenith Education Group. The sale was finalized in February of this year. ECMC and Zenith got access to about 40,000 students, or more than half of Corinthian’s 74,000 students as of March 31 of last year, according to Nolan.

Corinthian continued its efforts to sell its remaining campuses through Barclays and another consultant, Eduvize. Nolan said in the document that “several” potential buyers looked at the company, and Corinthian entered into negotiations with at least three of them for its Heald schools. Heald, which was founded more than 150 years ago and enrolled students in health care, business, technology and legal programs, was considered one of Corinthian’s most valuable assets.

But demands by federal and state authorities effectively blocked Corinthian’s sale of Heald, Nolan said. The Education Department wanted Heald’s future owners to reduce tuition by 20 percent and the department wanted $30 million for itself, up to $12 million of which it wanted immediately, Nolan said.

In April, the department fined Heald some $30 million for allegedly misrepresenting its job placement rates.

Meanwhile, Kamala Harris, California’s top prosecutor, wouldn’t readily allow future buyers to dodge existing claims her office has against Corinthian. Heald buyers likely wanted the company’s assets but none of its legal liabilities.

The last remaining potential buyer for Heald formally withdrew from the sale process on April 22, Nolan said. Corinthian tried to strike agreements with other parties to allow current students to complete their studies, but the Education Department effectively blocked those efforts, too.

The department also wanted Corinthian to post by May 17 what Nolan described as a “significant” letter of credit in order to maintain access to federal financial aid for its students.

“Corinthian’s bankruptcy filing follows aggressive enforcement actions taken by the department to protect students,” Denise Horn, an Education Department spokeswoman, said in a prepared statement. “The department remains committed to protecting students and ensuring that those who have been hurt by fraud -- including at Corinthian -- receive the debt relief they are entitled to.”

Nolan said the company began to wind down its operations on April 23. It announced on April 26 that it would close its remaining campuses, effective April 27. Some 2,700 Corinthian employees lost their jobs.

This story was updated Monday afternoon with information from Corinthian's bankruptcy documents and with a statement from the Education Department.

Chrysler Is Giving Its Dealership Workers Free College Tuition

Yet another major company wants to send its workers to school.

Fiat Chrysler Automobiles said Monday that it plans to offer free college tuition to the 118,000 workers at its Chrysler, Jeep, Dodge, Ram and Fiat dealerships across the United States.

The move comes a month after Starbucks expanded its online college degree program with Arizona State University, allowing its baristas to study for four years for free. Chrysler also joins McDonald’s, which earlier this year offered to help pay college tuition for workers at its 14,300 U.S. stores.

Chrysler’s program is the result of a partnership with Strayer University, a private, for-profit college that offers online classes. The company said it hopes the free tuition will transform it into a more attractive place to work.

“Our goal is to position our dealer network as the ‘employers of choice,’” Al Gardner, the Chrysler brand’s chief executive, said in a statement. “Our collaboration with Strayer demonstrates our focus on building our dealers’ hard-working employees’ skill sets to help them perform at an optimal level while also investing in their long-term success.”

While dealership employees can take Strayer classes online, they can also attend lessons at the college's Virginia campus or one of its 76 satellite campuses, mostly around the Southern United States. Strayer CEO Karl McDonnell said he expects an even mix of students online and at physical locations.

"I suspect we'll get a healthy blend of both," he told The Huffington Post. "We're somewhat agnostic as to the modality that students choose."

Employees need to have worked at a Chrysler dealer for 30 days to become eligible for the free tuition, he said.

The program, dubbed Degrees@Work, will be rolled out in phases, starting in the southeast. Employees at dealerships in Florida, Georgia, South Carolina, North Carolina, Alabama and Tennessee can now enroll. McDonnell told HuffPost that each participating dealership will pay a flat fee, no matter how many employees at each choose to attend Strayer classes. It's unclear how much the fee will be.

For-profit colleges have come under heightened scrutiny in the wake of a scandal surrounding one of the largest career school chains in the U.S., Corinthian Colleges Inc., which filed for bankruptcy on Monday after allegedly misleading investors about its finances and students about job placement after school.

However, a 2012 Senate report on the for-profit education industry called Strayer "one of the best of any company examined."

Strayer operates a robust corporate alliances program, which partners the college with companies looking to give education benefits to employees. McDonnell said about a quarter of the school's students come from Fortune 500 companies.

"These companies would not be sending us more and more -- hundreds, in some cases thousands of employees -- if they didn't feel that the education was strong," he said, adding that Strayer supports tighter regulation of the for-profit college industry.

Chrysler isn’t the only automaker giving its employees a boost. Volkswagen is expanding a three-year vocational program at its Chattanooga, Tennessee-based plant that trains employees to work high-skilled jobs on the assembly line. The German company based the course on apprenticeship programs in its home country.