8/9/2019 The Jere Beasley Report, Sep. 2010

1/40

Lcstrcbutgl tf fvgr 7=,444 subsmrcbgrs g`mn hfetn

 www.Bg`sagy@aage.mfh

]gptghbgr 2404

8/9/2019 The Jere Beasley Report, Sep. 2010

2/402  www.Bg`sagy@aage.mfh 

C.

M@TC\FA

FB]GRY@\CFE]

] \@\G  F I  @A@B@H@ ] WG]  F YGR  F CA ] TCAA

\wf sgp`r`tg a`wsucts wgrg icagl a`sthfetn fe bgn`ai fi tng ]t`tg fi @a`b`h`

by @ttfregy Ogegr`a \rfy Kceo `o`cest BT`el sgvgr`a ftngr Lgigel`ets. \ng sucts,icagl ce iglgr`a mfurt, sggk l`h`ogs `el

cejuemtcvg rgacgi `o`cest tnfsg mfhp`ecgsrgspfescbag ifr tng h`sscvg fca spcaa ce tngOuai fi Hgxcmf. Bftn m`sgs wcaa bg tr`es-

igrrgl tf tng HLA julog ce Egw Frag`es.Fur icrh n`s bgge `skgl tf rgprgsget tng

st`tg, `afeo wctn tng icrhs fi H`ye`rl,Mffpgr irfh Bcrhceon`h `el TrcemgOafvgr irfh \usm`affs`. Fur of`a ce tngsg

m`sgs cs tf nfal `aa Lgigel`ets iuaay

rgspfescbag ifr tng h`sscvg afssgs `ell`h`ogs suiigrgl by tng ]t`tg fi @a`b`h`

`el cts mctczges.Bftn m`elcl`tgs ifr ofvgrefr `rg

b`mkceo tng @ttfregy Ogegr`a–s icaceo fi

tng st`tg–s a`wsuct. Lghfmr`tcm efhceggRfe ]p`rks s`ys pgfpag wgrg tcrgl fi

 w`ctceo ifr sfhgfeg tf nfal BT `mmfuet-

`bag `el ng mfhhgelgl tng Rgpubacm`e @ttfregy Ogegr`a ifr ic aceo tng suct .Rgpubacm`e efhcegg Rfbgrt Bgetagy

bgacgvgs BT `el tng iglgr`a ofvgrehgeti`cagl @a`b`h` mctczges. Ng s`ys ct–s tng

rcont fi tng @ttfregy Ogegr`a tf icag suct`o`cest BT. Ct–s hfst scoecicm`et tn`t tngtwf hge suppfrt tng a`wsuct scemg fegfi tngh wcaa cengrct tng h`ey prfbaghs

m`usgl by BT `el tng ftngr Lgige-l`ets. \ng giigmts fi tncs lcs`stgr wfe–t

bg iuaay kefwe ifr ` afeo tchg `el furst`tg wfe–t ogt fvgr tncs lcs`stgr `ey tchgsffe. Ct wcaa bg fur jfb tf h`kg surg tng

]t`tg rgmgcvgs iuaa mfhpges`tcfe ifr ctsafssgs.

M F@AC\CFE  F I  @A@B@H@ O RFWT]  \ F  O R@LG  @LGH 

 @ mf`actcfe fi st`tgwclg gevcrfehget`a

orfups wcaa r`tg tng @a`b`h` Lgp`rthgetfi Gevcrfehget`a H`e`oghget–s prforgssfe `llrgssceo `cr `el w`tgr pfaautcfe `el

tng fvgr`aa geifrmghget fi gevcrfehget`aa`ws. Rgprgsget`tcvgs fi tng mf`actcfe“

 wncmn cemaulgs orfups sumn `s Mfesgrv`-

tcfe @a`b`h`, tng @a`b`h` Rcvgrs @aac`emg,

Hfbcag B`ykggpgr `el tng M`n`b` Rcvgr]fmcgty“hgt wctn @LGH–s egw lcrgmtfr,A`emg AgIagur, `el brcgigl nch fe tng

`rg`s tn`t wcaa bg gv`au`tgl rga`tceo tf tng`ogemy–s pgrifrh`emg. \ncs wcaa bg offl

ifr @LGH ci ct wcaa t`kg tncs ce tng rcont w`y. Ct wcaa bg bgegicmc`a tf n`vg tng `oge-my–s p`st pgrifrh`emg gv`au`tgl.

\ng prcfrctcgs prgsgetgl by tng gevc-

rfehget`a orfups cemaulg chprfvceo @LGH–s geifrmghget fi tng Mag`e _`tgr

 @mt. G`racgr tncs yg`r, sgvgr̀ a fi tng s`hgorfups `skgl tng GT@ tf t`kg fvgr w`tgrpfaautcfe hfectfrceo `el geifrmghget,

mn`roceo tn`t @LGH n`s bgge cegiigm-tcvg. \ng orfups `asf wcaa or`lg tng `oge-my–s pgrifrh`emg f e pgrhct tceo,

cespgmtceo `el hfectfrceo stfrh w`tgrruefii irfh mfestrumtcfe `el urb`elgvgafphget. @LGH–s pgrifrh`emg `s ct

rga`tgs tf fvgr`aa geifrmghget `mtcfe`o`cest pfaautgrs wcaa `asf bg mfescl-

grgl. @LGH n`s afeo bgge `mmusgl fi eftbgceo mfescstget fr `oorgsscvg wctn pfa-autgrs. Nfpgiuaay tn`t n`s mn`eogl,

bgm`usg tng `ogemy n`s ` luty tf prftgmttng gevcrfehget ce fur st`tg.

\ng orfups `asf pa`e tf gv`au`tg st`tg

prforgss fe achctceo tng rgag`sg fi tfxcmmnghcm`as cetf tng `cr, wncmn ce h`eym`sgs `rg mfemgetr`tgl ce p`rtcmua`r

egconbfrnffls. \ng orfups s`y tn`t ce 02tf 0> hfetns, tngy wcaa gv`au`tg tng prfo-rgss fr tng a`mk tngrgfi fi @LGH uelgr cts

egw ag`lgrsncp.

]furmg: @a.mfh

@A@B@H@ E F\  P W@ACICGL  I FR  J FBAG]]  B GEGIC\]  

C w`s snfmkgl tf ag`re tn`t @a`b`h` csfeg fi feay scx st`tgs tn`t n`s i`cagl tfupl`tg `ey p`rt fi cts ueghpafyhget

prfor`h tf qu`aciy ifr gxtr` jfbagss bgeg-icts tnrfuon tng iglgr`a stchuausprfor`h. \ng E`tcfe`a Ghpafyhget A`w

Trfjgmt rgpfrtgl tn`t @a`b`h`, Iafrcl`,

Kgetumky, Hcsscsscppc, Hcssfurc ̀ el EfrtnL`kft` `rg tng feay st`tgs tn`t n`vg eft

hflgreczgl `t ag`st p`rt fi tngcr prf-or`hs.

\n`t i`caurg n`s mfst tng st`tg `e `llc-tcfe`a $044.7 hcaacfe ce gxtgelgl bgeg-icts ifr jfbagss @a`b`hc`es. Rgpubacm`es ce

tng @a`b`h` ]ge`tg kcaagl bcaas ce 2443`el 2404 tn`t wfual n`vg `aafwgl tngst`tg tf rgmgcvg `e gxtr` $044.7 hcaacfe ce

stchuaus hfegy ifr jfbagss bgegicts. \ng

agocsa`tcfe wfual n`vg `utnfrczgl Ofv.Bfb Rcagy tf gxtgel jfbagss bgegicts 29

 wggks wncag prfvclceo p`yhgets tf p`rt-tchg wfrkgrs, tnfsg wnf `rg ifrmgl tf

ag`vg wfrk ifr pgrsfe`a rg`sfes, sumn `s vcmtchs fi spfus à `busg `el tnfsg ce jfbtr`ceceo prfor`hs. \ng ueghpafyhget

r`tg ce @a`b`h` w`s 3% wnge tng agocsa`-tcfe i`cagl ce 2443. Ce Juay, ct w`s 04.=%.

Eg`ray 27,444 `llctcfe`a jfbagss @a`b`hc-`es wfual n`vg bgge `sscstgl n`l tngst`tg `mmgptgl tng stchuaus hfegy.

]furmg: @A.mfh

CE \NC] C]]WG

C. M`pctfa Fbsgrv`tcfes . . . . . . . . . . . . . . . 2

CC. @ Rgpfrt fe tng Ouai Mf`st Lcs s̀tgr . . . . =

CCC. Lruo H`eui`mturgrs Ir`ul Actcò tcfe . . . 9

CY. Turgay Tfactcm`a Egws & Ycgws . . . . . . . . ?

 Y. Mfurt _`tmn . . . . . . . . . . . . . . . . . . . . . . ?

 YC. \ng E`tcfe`a ]mgeg . . . . . . . . . . . . . . . . >

 YCC. \ng Mfrpfr`tg _fral . . . . . . . . . . . . . . . 3

 YCCC. Mfeorgsscfe`a Wpl̀ tg . . . . . . . . . . . . . . 3

C^. \fyft` Actco`tcfe . . . . . . . . . . . . . . . . . 00

 ^. Trflumt Ac`bcacty Wpl`tg . . . . . . . . . . . 02

 ^C. H`ss \frts Wpl̀ tg . . . . . . . . . . . . . . . . 02

 ^CC. Buscegss Actco`tcfe . . . . . . . . . . . . . . . . 0< ^CCC. @e Wpl`tg fe ]gmurctcgs Actco`tcfe . . . . 07

 ^CY. Cesur`emg `el Ice`emg Wpl̀ tg . . . . . . 09

 ^Y. Ghpafyhget `el IA]@ Actco`tcfe . . . . . 0?

 ^YC. Trgl`tfry Agelceo . . . . . . . . . . . . . . . . 0?

 ^YCC. Trghcsgs Ac`bcacty Wpl`tg . . . . . . . . . . . 0>

 ^YCCC. _frkpa`mg N`z r̀ls . . . . . . . . . . . . . . . 24

 ^C^. \r`espfrt`tcfe . . . . . . . . . . . . . . . . . . . 20

 ^^. Eursceo Nfhg Wpl`tg . . . . . . . . . . . . . 2=

 ^^C. Ng`atnm`rg Cssugs . . . . . . . . . . . . . . . . 2<

 ^^CC. Gevcrfehget`a Mfemgres . . . . . . . . . . . 27

 ^^CCC. \ng Mfesuhgr Mfregr . . . . . . . . . . . . . 29

 ^^CY. Rgm`aas Wpl`tg . . . . . . . . . . . . . . . . . . . =4

 ^^Y. Icrh @mtcvctcgs . . . . . . . . . . . . . . . . . . . ==

 ^^YC. ]pgmc`a Rgmfoectcfes . . . . . . . . . . . . . . =<

 ^^YCC. I`vfrctg Bcbag Ygrsgs . . . . . . . . . . . . . . =?

 ^^YCCC. Mafsceo Fbsgrv`tcfes . . . . . . . . . . . . . . =>

 ^^C^. T`rtceo _frls . . . . . . . . . . . . . . . . . . . =3

8/9/2019 The Jere Beasley Report, Sep. 2010

3/40   www.JgrgBg`sagyRgpfrt.mfh =

A@_  G EIFRMGHGE\  F IICMGR]  K CAAGL  C E  \ NG  ACEG  F I  L W\S 

C rgmgcvgl sfhg ceifrh`tcfe rgmgetay

irfh H@LL mfemgreceo a`w geifrmghgetfiicmgrs tn`t w`s hfst lcsturbceo. _ncag Ckegw tn`t h`ey fiicmgrs `rg kcaagl g`mn

 yg`r ce tng aceg fi luty, C n`l ef clg` tn`tsf h`ey fi tngsg lg`tns wgrg m`usgl bym`r mr`sngs. Fe `vgr`og, `mmfrlceo tf

A`ur` Lg`e-Hffegy, wnf sgrvgs `s prgsc-lget fi H@LL, ` a`w geifrmghget fiicmgrcs kcaagl ce tng aceg fi luty gvgry 7=

nfurs. ]ng s`ys tng ag`lceo m`usg fi lg`tncs m`r mr`sngs. C tnfuont oues wfual n`vgbgge tng bcoogst prfbagh. A`st yg`r, tng

euhbgr fi fiicmgrs kcaagl ce tr`iicm mr`sngs`mmfuetgl ifr `ahfst n`ai fi `aa lg`tns cetng aceg fi luty. _ncag tn`t euhbgr w`s

20% agss tn`e tng prgvcfus yg`r, ct–s stcaa `ncon euhbgr.

C n`vg `aw`ys bgacgvgl tn`t pgfpagsnfual strfeoay suppfrt tng a`w geifrmg-hget mfhhuecty ce gvgry pfsscbag w`y.

Fiicmgrs put tngcr acvgs fe tng aceg l`cayifr tng pubacm `el tn`t–s vgry chpfrt`etifr g`mn fi us. Trfpgr iuelceo fi a`w

geifrmghget `t gvgry agvga cs gssgetc`a`el tn`t snfual bg ` tfp prcfrcty ifr furgagmtgl fiicmc`as. C wfelgr nfw hy OFT

bullcgs rg`mt tf tngcr gagmtgl fiicmc`as, wnf t`ak `bfut strfeo a`w geifrmghgetbut rgiusg tf prfpgray iuel a`w geifrmg-

hget prfor`hs. \n`t–s gspgmc`aay trug wnge ct mfhgs tf prfvclceo iuels sf tn`t

`lgqu`tg pgrsfeega `el gqucphget `rg`v`ca`bag tf ogt tng jfb lfeg. @asf, afwp`y sm`ags hust bg r`csgl ifr tnfsg fiic-mgrs `arg`ly wfrkceo fe ` l`cay b`scs tf

prftgmt ifaks. Nfpgiuaay, wg wcaa sgg hfrg‑w`akceo tng w`ak‘ cestg`l fi just

‑t`akceo‘ `bfut suppfrtceo a`w geifrmg-hget ce tng iuturg.

]furmg: H@LL

CC.

@ RGTFR\ FE \NG

OWAI MF@]\

LC]@]\GR

E G_  F RAG@E]  T RFTGR  AFM@\CFE  I FR  HLAC E  F CA ] TCAA AC\CO@\CFE 

\ng Julcmc`a T`ega fe Huatc-Lcstrcmt Actc-o`tcfe n`s lgmclgl tn`t hfrg tn`e =44

sucts icagl scemg tng @prca 24 tn   fca rco

gxpafscfe wcaa bg ng`rl ce Egw Frag`es.W.]. Lcstrcmt Julog M`ra B`rbcgr w`ssgagmtgl by tng p`ega tf prgsclg fvgr tng

HLA. A`wsucts cemaulg pgrsfe`a cejuryma`chs tn`t rgsuatgl irfh tng lg`lay ba`stfe tng fca rco Lggpw`tgr Nfrczfe,

l`h`ogs tf tnfsg wnf n`vg gxpgrcgemglcaaegss irfh mfet`mt wctn tng fca lcspgr-s`et, `s wgaa `s afss fi cemfhg `el prfp-

grty v`aug.\ng W.]. ofvgrehget `el hfst a`wygrsrgprgsgetceo tng spcaa vcmtchs w`etgl tng

m`sgs mfesfacl`tgl ce Egw Frag`es, wncmn cs tng a`rogst mcty eg`r tng spcaa sctg.But BT sfuont tf n`vg tng Julcmc`a T`ega

fe Huatc-Lcstrcmt Actco`tcfe mfesfacl`tgtng m`sgs ce Nfustfe, nfhg tf tng fca

oc`et–s W.]. ng`lqu`rtgrs. Ftngr suoogstglmfesfacl`tcfe sctgs cemaulgl Hc`hc,Hfbcag, `el Ouaipfrt. \ng HLA prfmgss cs

lgscoegl tf strg`haceg tng gxmn`eog figvclgemg `el `vfcl lupacm`tcfe. Femg

prgtrc`a prfmgglceos `rg mfhpagtgl, tngcelcvclu`a m`sgs `rg sget b`mk ifr trc`a cetng mfurts wngrg tngy wgrg icrst icagl.

\ng sgagmtcfe fi Egw Frag`es `el tncs

 julog rgprgsget ` vcmtfry ifr tng ifaks wnf n`vg bgge l`h`ogl `s ` rgsuat fiBT–s rgmkagss lcsrgo`rl ifr s`igty `el tng

tr`ocm mfesgqugemgs fi cts `mtcfes. Ce hyfpcecfe, tng HLA p`ega h`lg ` offllgmcscfe. Afucsc`e` w`s tng afocm`a mnfcmg

bgm`usg fi cts mgetr`a afm`tcfe, tng trg-hgelfus l`h`og lfeg tngrg `el tngmfetceugl l`h`og wg gxpgmt tf sgg ifr

 yg`rs tf mfhg `afeo tng Ouai Mf`st. JulogB`rbcgr, ` vgry offl Julog, cs hfrg tn`e

m`p`bag fi n`elaceo tng mfhpagx e`turgfi tng actco`tcfe `el tng trghgelfus vfauhg fi m`sgs tn`t wcaa of tf ncs mfurt.

Ng wcaa bg i`cr tf `aa p`rtcgs tf tncs actco`-tcfe.

Fur icrh n`s icagl ` euhbgr fi a`wsucts

ce Lcstrcmt Mfurts ce @a`b`h`, Hcsscsscppc,Iafrcl` `el Afucsc`e` tf ngap prftgmtbuscegssgs `el celcvclu`as n`rhgl by tng

fca spcaa. _ctnce tng egxt tnrgg tf ifur wggks fur a`wygrs wcaa bg icaceo ` offl

euhbgr fi `llctcfe`a m`sgs. _g murrgetayrgprgsget fvgr 0,444 celcvclu`as, busc-egssgs, `el ofvgrehget`a getctcgs. Furmacget b`sg cemaulgs mfhhgrmc`a icsngr-

hge, snrchpgrs, rgt`ca gst`bacsnhgets, tngrgst`ur`et celustry, rg`a gst`tg h`e`og-hget mfhp`ecgs, prfpgrty fwegrs,

pgrsfes suiigrceo pgrsfe`a cejurcgs `elftngrs. Fur of`a cs tf ngap brceo BT `elftngr getctcgs rgspfescbag ifr tng afssgs

`el l`h`ogs tf justcmg. C n`vg egvgr

trustgl BT tf lf tng rcont tnceo by cts vcmtchs. \ngrg cs vgry acttag ce BT–s p`sttn`t ocvgs hg `ey rg`a nfpg tn`t tng fca

oc`et wcaa trg`t spcaa vcmtchs i`cray. \n`t cs wny tng HLA cs sf chpfrt`et ifr `aa vcmtchs.

I GCEBWRO  R GAG@]G]  M A@CH]  T RF\FMFA

\ng sf-m`aagl ghgrogemy prftfmfa ifr

BT fca spcaa ma`chs w`s rgag`sgl by KgeIgcebgro fe @uoust 24tn  `el ct ag`vgs aftsup ce tng `cr ifr Ma`ch`ets. Gvge ` m`su`a

rg`lceo fi tng lfmuhget h`lg ct `bue-l`etay mag`r tn`t ct–s humn tff i`vfr`bagtf BT. Icrst, feay BT–s @hgrcm`e prflum-

tcfe mfhp`ey, BT Gxpafr`tcfe `el Trf-lumtcfe, Cem., cs rgspfescbag uelgr tng$24 bcaacfe iuel. Ef ftngr BT mfhp`ey cs

cevfavgl `t `aa ce tng prftfmfa. Egctngr `rg`ey fi tng ftngr mfhp`ecgs, wncmn sn`rgrgspfescbcacty ifr tng Ouai fca spcaa lcs`s-

tgr, cevfavgl ce `ey rgspgmt ce tng Igce-bgro prftfmfa. Ef `ssgts `rg paglogl by

BT ftngr tn`e iuturg fca `el o`s prflumtby tng prflumtcfe mfhp`ey.

Ce i`mt, ci ` Ma`ch`et rgmgcvgs ` ice`a

p`yhget irfh tng iuel, ` mfhpagtgrgag`sg fi ac`bcacty wcaa bg rgqucrgl. \ncs wfual hg`e tn`t egctngr `ey ftngr BT

mfhp`ey, efr `ey ftngr pftgetc`a Lgige-l`ets, wfual rgh`ce ac`bag tf tng Ma`ch-`ets ifr l`h`ogs, p`st fr iuturg. \ncs

 wfual snut fii `mmgss tf tng mfurts ifr

tng Ma`ch`ets.\ngrg cs `asf ` qugstcfe `s tf wny

tnfsg wnf n`vg ago`a gxpfsurg ifr tngl`h`ogs m`usgl efw `el ce tng iuturg bytng mnghcm`as luhpgl ce tng Ouai wgrg

agit fut. \ncs mfual wcel up bgceo `h`jfr fhcsscfe `el vgry humn lgtrchge-t`a tf Ma`ch`ets. Sfu wcaa sgg wny tn`t cs

trug ce `eftngr sgmtcfe fi tncs cssug. \ngl`h`ogs irfh tng mfhbce`tcfe fi fca `el

tng mnghcm`as mfual wcel up bgceo tngbcoogst afeo tgrh muaprct.

Mag`ray, tng ghgrogemy ma`chs prftfmfa

ag`vgs h`ey ue`eswgrgl qugstcfes `bfuttng ma`chs prfmgss ifr iuturg `el ice`ama`chs. Ct–s fbvcfusay lgtrchget`a ifr

Ma`ch`ets tf bg ifrmgl tf `mmgpt ` ice`ap`yhget bgifrg tngy m`e pfsscbay kefwtng iuaa chp`mt fi tng fca spcaa. \ng sgttceo

fi ` Efvghbgr lg`laceg ifr ghgrogemyp`yhgets cs `asf prgh`turg scemg tng iuaagxtget fi tng spcaa cs i`r irfh bgceo lgtgr-

hcegl.Watch`tgay, ` ice`a ma`chs prfmgss hust

gesurg tn`t `aa pftgetc`a Ma`ch`ets `rg

8/9/2019 The Jere Beasley Report, Sep. 2010

4/40<  www.Bg`sagy@aage.mfh 

iuaay mfhpges`tgl `el tn`t tngcr `mmgsstf tng mcvca justcmg systgh cs prgsgrvgl. @aa BT mfhp`ecgs `el tng ftngr rgspfesc-

bag mfrpfr`tcfes hust bg ngal iuaay`mmfuet`bag ifr tngcr wrfeolfceo. B`sglfe gvgrytnceo C n`vg sgge sf i`r ct

`ppg`rs BT cs actgr`aay rueeceo tncs snfw. Cbgacgvg tng Igceburo prftfmfas `rg humntff i`vfr`bag tf BT ce ` euhbgr fi `rg`s.

Gvge tnfuon C n`vg wfelgrgl wny cttffk sf afeo ifr BT tf iuel tng ma`chs`mmfuet, `t ag`st ct w`s ice`aay lfeg. But

tng bfttfh aceg cs tn`t tng Ma`ch`ets `rgogttceo tng snfrt gel fi tng stcmk irfhbftn BT `el Igcebgro. C sgrcfusay lfubt

tn`t BT wcaa gvgr acvg up tf cts mfhhct-hget tf vfauet`rcay p`y `aa agoctch`tg

ma`chs ce iuaa. BT wcaa n`vg tf bg h`lg tflf sf ce ` mfurt fi a`w. \ng fca oc`et n`slfeg `aa ce cts pfwgr tf h`kg surg tn`t ct

p`ys subst`etc`aay agss tn`e iuaa v`aug fema`chs, wncag rgqucrceo iuaa rgag`sgs ce

rgture ifr p`yhgets. @s C n`vg s`cl feeuhgrfus fmm`scfes, `el wcaa rgpg`t ngrgifr ghpn`scs, C lfe–t trust BT `el lfe–tgxpgmt ct tf lf rcont by cts vcmtchs. C `h

`asf bgoceeceo tf wfelgr wnf Hr. Igce-bgro cs rg`aay wfrkceo ifr. C tnfuont ncsrfag w`s tf bg `e celgpgelget ma`chs

`lhcecstr`tfr.

BT C ]  B G\\GR  @\  T WBACM  R GA@\CFE]  \ N@E  C \  N @]  B GGE  F E  ] @IG\S 

BT cs vgry offl `t tng o`hg fi pubacmrga`tcfes `el fvgr tng p`st wggks n`s putcts giifrts fe tn`t irfet cetf fvgrlrcvg.N`vg yfu wfelgrgl wny tngrg cs ` sacmk

tgagvcscfe mfhhgrmc`a `ppg`rceo just`bfut gvgry =4 hceutgs fe bftn mfhhgr-

mc`a `el m`bag tgagvcscfe egtwfrks6 @asf,sfhg h`y qugstcfe wny gvgry sceoag l`yBT n`s ` iuaa p`og `lvgrtcsghget ce gvgry

egwsp`pgr ce tng mfuetry. \nfsg `rgqugstcfes tn`t snfual bg `eswgrgl by tngfca oc`et, gspgmc`aay wnge yfu mfesclgr

BT cs st`aaceo tng p`yhget fi ma`chs tf

 vcmtchs fi tng h`sscvg fca spcaa. Ct–s prgttyfbvcfus tn`t BT cs tryceo tf o`ce i`vfr

 wctn tng hglc` futagts , usceo tngh tfmn`eog tng pubacm–s fpcecfe fe tng mfh-p`ey–s b`l mfelumt, `el tn`t m`e–t bg

`aafwgl tf n`ppge.\nus i`r, tng `lvgrtcsceo mfst tf BT n`s

tf bg ce tng nuelrgls fi hcaacfes fi

lfaa`rs. Cts hgss`og cs, ce ` eut sngaa, ‑wg`rg ` offl, m`rceo mfhp`ey, rue by hgeirfh tng Ouai Mf`st wnf `rg mfemgregl

`bfut tng sctu`tcfe ifaks fe tng mf`st

n`vg ifuel tnghsgavgs ce.‘ Ct–s ` ‑igga

offl hgss`og‘ tn`t cs mfstceo BT ` sh`aaifrtueg, but ct cs lfceo `bsfautgay eftnceoifr BT–s vcmtchs. ]fhgnfw, tn`t just

lfgse–t sggh rcont.

T FAC\CMC@E]  N @L  B G]\  R GHGHBGR  AG]]FE]  AG@REGL  I RFH  G ̂ ^FE 

BT, wctn tng ngap fi tng iglgr`a ofvgre-hget, cs sgaaceo tng chprgsscfe tn`t tng wfrst cs fvgr ifr tng vcmtchs fi tng wfrst

gevcrfehget`a lcs`stgr ce fur e`tcfe–sncstfry. _ncag tngrg w`s ` h`jfr brg`k-tnrfuon wnge tng fca ag`k w`s ice`aay

stfppgl, `itgr fvgr 044 l`ys, tng giigmtsfi tncs nuog lcs`stgr `rg i`r irfh fvgr.G`mn fi us, `el gspgmc`aay fur gagmtgl fiic-

mc`as“bftn e`tcfe`aay `el afm`aay“snfual rghghbgr tng prfbaghs m`usglby tng  Gxxfe Y`algz  fca spcaa ce @a`sk`

sfhg 20 yg`rs `of. Ci yfu of b`mk `elrg`l tng st`tghgets h`lg by Gxxfe fiic-mc`as `itgr tn`t lcs`stgr fmmurrgl, `el tnge

mfhp`rg tngh wctn tng st`tghgets efwbgceo h`lg by BT fiicmc`as, yfu wcaa iceltngh tf bg vcrtu`aay clgetcm`a. \ng twf

hgss`ogs wgrg b`scm`aay, ‑ct–s `aa fur i`uat, wg wcaa mag`e up tng fca `el t`kg m`rg fi

tng vcmtchs.‘ Ce i`mt, Gxxfe s`cl tng vcm-tch–s wgrg ‑aumky‘ bgm`usg ct w`s Gxxfetn`t m`usgl tng lcs`stgr.

 _g snfual tnge gx`hceg nfw Gxxfe`mtu`aay trg`tgl tng vcmtchs wnge tngy

`skgl tf bg mfhpges`tgl ifr tngcr afssgs,`el mfhp`rg tn`t wctn tng murrgetma`chs-p`yceo by BT `afeo tng OuaiMf`st. \ng rg`acty w`s tn`t Gxxfe ifuont

cts vcmtchs ifr fvgr 24 yg`rs `el trcgl ctslg`l-agvga bgst tf kggp tngh irfh ogttceo wn`t tngy wgrg getctagl tf. \ng afeo-tgrh

giigmts fi tng fca spcaa ce @a`sk` n`vg bggelgv`st`tceo tf tng pgfpag ce tn`t `rg`.Nfpgiuaay, fur pubacm fiicmc`as n`vg

ag`regl irfh Gxxfe–s trg`thget fi cts vcmtchs ce @a`sk` `el wcaa eft agt BT ogt`w`y wctn tng s`hg t`mtcms.

] CEKCEO  @OGE\]  ] NFWAL  E F\  B G  W ]GL  C E  \ NG  O WAI 

\ng E`tcfe`a Mfetceogemy Ta`e prf- vclgs tn`t ce `mtcfes t`kge tf rgmfvgr fca,

fr tf hctco`tg cts giigmts, ‑scekceo `ogets‘m`e–t bg usgl. Ct lfgse–t s`y snfuale–t“ctmag`ray s`ys tngy m`e–t bg usgl. ]cekceo

`ogets `rg tnfsg `llctcvgs `ppacgl tf fcalcsmn`rogs tf scek iaf`tceo pfaaut`ets

bgafw tng w`tgr suri`mg. Egvgr bgifrgn`l lcspgrs`ets bgge usgl `t tng lgptnfi BT–s wgaa. @s ` rgsuat efbfly rg`aay

kefws ifr surg nfw tn`t mnghcm`a hcx wcaa cetgr`mt pnyscm`aay `el mnghcm`aay

uelgr prgssurg wctn fca, w`tgr `el o`sgs.Ct cs bgacgvgl by h`ey gxpgrts tn`t tngl`h`og lfeg“bftn snfrt `el afeo

tgrh“wcaa bg lgv`st`tceo.

 @s BT n`l cts pubacm rga`tcfes m`hp c̀oeofceo iuaa ba`st ce `e `ttghpt tf mfevcemg

ifaks tn`t fca `el mnghcm`as ce tng Ouai`rge–t sf b`l, Mfeorgsscfe`a cevgstco`tfrs wgrg rgpfrtceo tn`t tff humn tfxcm

mnghcm`a lcspgrs`et n`l bgge usgl byBT. \ng cevgstco`tfrs s`cl tng W.]. Mf`stOu`rl rfutcegay `pprfvgl BT rgqugsts tf

usg tnfus`els fi o`aafes fi mnghcm`asgvgry l`y tf brg`k up tng fca ce tng Ouai,lgspctg ` iglgr`a lcrgmtcvg tf usg tng lcs-

pgrs`et r`rgay. Ifr gx`hpag, ct w`srgpfrtgl tn`t tng Mf`st Ou`rl `pprfvgl

?< w`cvgrs fvgr ` -l`y pgrcfl `itgr tngGT@ frlgr. Feay ce ` igw cest`emgs lcl tngofvgrehget sm`ag b`mk BT–s rgqugsts.

Rgp. Glw`rl H`rkgy, (L-H@), rgag`sgl `

agttgr a`st hfetn tn`t s`cl cestg`l fi mfh-payceo wctn tng GT@ rgstrcmtcfe, ‑BT fitge

m`rpgt bfhbgl tng fmg`e wctn tngsgmnghcm`as `el tng Mf`st Ou`rl `aafwgltngh tf lf ct.‘ _ncag tng mnghcm`a lcspgr-

s`et `ppg`rs tf bg giigmtcvg `t brg`kceoup tng fca cetf sh`aa lrfpagts tf hfrgg`scay bg mfesuhgl by b`mtgrc`, tng afeo-

tgrh giigmts tf `qu`tcm acig `rg a`rogay

uekefwe. \n`t gevcrfehget`a uemgr-t`cety n`s agl tf sgvgr`a lcsputgs bgtwgge

BT `el tng ofvgrehget fvgr tng usg filcspgrs`ets fe tng w`tgr–s suri`mg `ellggp uelgrw`tgr wnge fca w`s i afwceo

uemngmkgl fut fi tng wgaa. C ig`r tn`t tngmnghcm`as usgl by BT h`y wcel up bgceohfrg fi ` afeo tgrh prfbagh tn`e tng fca.

Hfrg wcaa bg s`cl fe tncs `spgmt fi tnglcs`stgr ce ` sgp`r`tg sgmtcfe fi tncs cssug.

]furmg: @ssfmc`tgl Trgss

BT @WLC\  L G\@CAGL  R CO – ]  ] @IG\S  I A@_]  B GIFRG  L C]@]\GR 

H`ey ce tng hglc` sggh tf n`vg ifroft-tge tn`t tngrg `rg getctcgs ftngr tn`e BT

 wctn ago`a rgspfescbcactcgs ifr tng lcs`s-tgr. @e cetgre`a `ulct mfelumtgl by BTTAM fe tng Lggpw`tgr Nfrczfe fca rco

lgt`cagl sgvgrg s`igty ia`ws hfetnsbgifrg tng Ouai fi Hgxcmf fca spcaa. \ng`ulct lgt`cas nfw tng lrcaaceo rco, fwegl

8/9/2019 The Jere Beasley Report, Sep. 2010

5/40   www.JgrgBg`sagyRgpfrt.mfh 7

by mfetr`mtfr \r`esfmg`e, i`cagl tf iuaaymfhpay wctn BT–s st`el`rls. ]gvgehfetns bgifrg tng @prca gxpafscfe, `ulc-

tfrs ifuel =34 h`cetge`emg t`sks tn`t wgrg hfrg tn`e ` hfetn fvgrlug fe tngrco. \ngsg cemaulgl h`cetge`emg wfrk fe

p`rts fi tng bafwfut prgvgetgr, tng s`igtylgvcmg `tfp tng wgaa tn`t i`cagl tf trcoogrfe tng l`y fi tng `mmclget.

BT `el \r`esfmg`e, g`mn fi wnfhsnfual i`mg ng`vy pge`atcgs, n`vg lcs-`orggl fe wncmn mfhp`ey snfual t`kg

rgspfescbcacty ifr tng spcaa `el n`vg bggepfcetceo iceogrs `t g`mn ftngr fe `rgoua`r b`scs. Ifr gx`hpag, ct w`s

rgpfrtgl by tng @ssfmc`tgl Trgss fe @uoust 03tn  tn`t \r`esfmg`e w`s `mmusceoBT fi ‑wctnnfalceo mrctcm`a gvclgemg‘rga`tceo tf tng m`usg fi tng fca spcaa. Ct wcaa

bg cetgrgstceo `el prfb`bay hfst rgvg`a-ceo tf sgg wn`t BT n`s bgge nclceo. \ngtrutn cs bftn mfhp`ecgs wgrg `t i`uat `el

mfetrcbutgl tf m`usg tng lcs`stgr ce tngOuai. \ngy hust bg h`lg tf p`y ifr wn`ttngy lcl.

]furmgs: @ssfmc`tgl Trgss `el \ng ]uel`y \chgs 

\ R@E]FMG@E  N @L  ] @IG\S  C ]]WG  @\  \ NRGG  F \NGR  _ GAA] 

Ct snfual bg eftgl tn`t \r`esfmg`e n`l wclgsprg`l s`igty mfemgres `bfut sgvgr àfi cts ftngr rcos ce tng Ouai bgifrg tng

 @pr ca gxpafscfe. @ hfetn bgifrg tng

lcs`stgr, tng mfhp`ey mfhhcsscfegl `brf`l rgvcgw fi tng s`igty muaturg fi tng

mfhp`ey–s Efrtn @hgrcm`e fpgr`tcfes,`mmfrlceo tf mfeiclgetc`a cetgre`a rgpfrts.Ce rgspfesg tf ‑` sgrcgs fi sgrcfus `mmc-

lgets `el eg`r-ncts wctnce tng oafb`afro`ecz`tcfe,‘ \r`esfmg`e, tng wfral–sa`rogst fiisnfrg lrcaaceo mfhp`ey, mfh-

hcsscfegl Aafyl–s Rgocstgr, ` rcsk h`e`og-hget mfhp`ey, tf cevgstco`tg cts Nfustfeng`lqu`rtgrs `el tnrgg ftngr Ouai rcos

bgsclgs tng Lggpw`tgr Nfrczfe tf `ssgsscts s`igty muaturg. Ct–s `buel`etay mag`r

irfh tngsg rgpfrts tn`t \r`esfmg`e n`sn`l wclgsprg`l s`igty cssugs.

\r`esfmg`e n`s 0< rcos efw fpgr`tceo

ce tng Ouai fi Hgxcmf, `el 0=3 wfral- wclg. \ng egw lfmuhgets ̀ asf sngl acontfe feg fi tng aceogrceo hystgrcgs fi tng

lcs`stgr: ‑_ny lcl tng rco scek6‘ @pp`r-getay tngrg wgrg prfbaghs wctn tngLggpw`tgr Nfrczfe–s b`aa`st systgh tn`t

 w`s rgspfescbag ifr kggpceo tng rco ìaf`t`el st`bag. Ct–s bgceo spgmua`tgl by sfhg

tn`t ci tng rco n`le–t suek, tng ag`k hcont

eft n`vg fmmurrgl. Iglgr`a cevgstco`tfrsn`vg qugstcfegl wngtngr lgigrrgl h`ce-

tge`emg `el ftngr i`mtfrs n`l pa`ygl `rfag ce tng scekceo fi tng rco. @ prgvcfussgt fi wfrkgr-s`igty rgpfrts prfvclgl tf

\ng \chgs wgrg spgmcicm tf tng Lggpw`-tgr Nfrczfe.

\ng s`igty mfemgres mctgl ce tng mfh-

p`ey–s `ssgsshget fi cts Efrtn @hgrcm`elcvcscfe `rg suppaghgetgl by egway-rgag`sgl cetgre`a rgpfrts mfemgreceo tng

Lggpw`tgr Nfrczfe–s gqucphget. \ngsggqucphget rgpfrts clgetciy lfzges filgicmcgemcgs, cemaulceo sfhg rga`tceo tf

tng rco–s bafwfut prgvgetgr, `el sfhgtn`t `rg m`tgofrczgl `s ‑mrctcm`a gqucp-hget ctghs tn`t h`y ag`l tf afss fi acig,

sgrcfus cejury fr gevcrfehget`a l`h`og`s ` rgsuat fi ce`lgqu`tg usg `el/fri`caurg fi gqucphget.‘

\ng suhh`ry rgpfrt snfual ogt tng

`ttgetcfe fi tnfsg wnf s`y tng iglgr`aofvgrehget ‑fvgr-rgoua`tgs‘ tng fii-snfrg

lrcaaceo fpgr`tcfes. \ng rgpfrt rg`ls:‑_ctnfut ` lfubt, prgvcfus cemclgets `el

eg`r-ncts gxpgrcgemgl tnrfuonfut tngfro`ecz`tcfe wgrg ` rgsuat fi huatcpagm`usgs ̀ el h`ey mfetrcbutfry i`mtfrs.‘ @e

fvgrvcgw cs ocvge ce tng rgpfrt fi tngmfhp`ey–s Efrtn @hgrcm`e Lcvcscfe `ellr`ws irfh cevgstco`tcfes fi \r`esfmg`e–s

H`rc`e`s, Lcsmfvgrgr Mag`r Ag`lgr, O]ILgvgafphget Lrcaagr CC `el Lggpw`tgrNfrczfe lrcaaceo rcos.

But tncs cs eft tng icrst rgpfrt fi tngLggpw`tgr Nfrczfe gxpgrcgemceo prfb-aghs wctn cts b`aa`st systgh. Ce H`y 244>,

iglgr`a rgmfrls snfw tn`t \r`esfmg`e w`sifrmgl tf gv`mu`tg hfrg tn`e ?4 wfrkgrs`itgr prfbaghs wctn tng b`aa`st systgh

iafflgl p`rt fi tng rco, m`usceo ct tf acst tfcts sclg. Ct `ppg`rs tn`t ` a`mk fi n`els-fegxpgrcgemg ifr wfrkgrs `el h`e`ogrs

n`s mfetrcbutgl tf s`igty mfemgres `t tngmfhp`ey. \ng cevgstco`tcfe `asf ifuel `

stciaceo burg`umr m̀y chpfsgl by fesnfrgh`e`oghget n`s agl tf wclgsprg`l

rgsgethget `hfeo rco wfrkgrs.\ngsg egw lfmuhgets fbt`cegl by

\ng \chgs rgigr tf `t ag`st =9 pcgmgs figqucphget ce b`l rgp`cr fe tng Lggpw`-

tgr Nfrczfe tn`t ‑h`y ag`l tf afss fi acig,sgrcfus cejury fr gevcrfehget`a l`h`og`s ` rgsuat fi ce`lgqu`tg usg `el/fr

i`caurg fi gqucphget.‘ \ng egw gqucp-hget lfmuhgets celcm`tg tn`t `e cespgm-tcfe fi tng Lggpw`tgr Nfrczfe rco

mfelumtgl just l`ys bgifrg tng @prca 24tn  

`mmclget ifuel v`rcfus prfbaghs wctnnylr`uacm rga`ys tn`t mfetrfaagl tng rco–s w`tgrtcont lffrs, twf fi wncmn n`l tf bg

fpgegl `el mafsgl by n`el.

]furmg: Egw Sfrk \chgs 

B RC\C]N  T RG]]  \ WRECEO  \ NG  \ @BAG]  F E  BT– ]  Y CM\CH] 

C w`s snfmkgl tf ag`re tn`t bf`tfwegrs wnf n`vg bgge lgv`st`tgl by tng

fca spcaa lcs`stgr `rg efw bgceo m`aagl‑]pcaacfe`crgs.‘ _gaa ce i`cregss, ct–s tngBrctcsn prgss“`el eft BT lcrgmtay“tn`t

mfcegl tncs pnr`sg, s`yceo tn`t B`yfu A`B`trg n`s bgmfhg nfhg tf ‑` egw brgglfi hge kefwe `s tng „]pcaacfe`crgs.–‘ \ng

prgss s`cl tng bf`t fwegrs n`vg ‑prfs-pgrgl nuogay‘ irfh tng ‑hcaacfes fipfuels n`elgl fut by BT.‘ \ncs cs `bfut

tng luhbgst `ssgsshget fi tng giigmts fi

tng fca spcaa lcs`stgr tn`t C n`vg ng`rl sfi`r. Gvgrybfly fe tng Ouai Mf`st, cemaul-

ceo icsngrhge `el snrchpgrs, cs ce b`leggl fi ngap. BT `el cts pubacm rga`tcfesbactz eggls tf b`mk fii `el st`rt tgaaceo

tng trutn `bfut wn`t n`s n`ppgegl fefur Ouai Mf`st `el wn`t ct rg`aay gxpgmts

tng iuturg tf bg ackg.

\ NG  H @]]CYG  BT M FYGR -W T 

Ct `ppg`rs tn`t sfhg fi fur gagmtgl fiic-mc`as, `s wgaa `s h`ey ce tng hglc`, `rg

buyceo BT–s ma`chs tn`t hfst fi tng fcaspcaagl n`s hcr`muafusay v`ecsngl `eltn`t tng lcs`stgr rg`aay cse–t sf b`l `itgr

`aa. \ng spce put fut by BT–s pubacm rga`-tcfes m`hp`coe scemg tng @prca lcs`stgr ce

tng Ouai, `t ` mfst fi `bfut $044 hcaacfe,sgghs tf bg wfrkceo. But tng trutn cs tn`tBT `el cts p`rtegrs n`vg tr`esifrhgl

tnghsgavgs cetf hflgre-l`y ‑pcr`tgs,‘fpgr`tceo bgyfel a`w fr mfesmcgemg. _nge BT `eefuemgl tn`t fvgr ?7% fi

tng fca ct n`l spcaagl cetf tng Ouai n`l

hcr`muafusay v`ecsngl, tng iglgr`a ofv-grehget `el h`ey ce tng hglc` `ppg`rgl

tf `mmgpt ct wctnfut qugstcfe. Agt–s t`kg `affk `t wn`t BT n`s s`cl fvgr tng p`sthfetns.

 _nge tng spcaa icrst bgm`hg pubacm, BTs`cl feay 0,444 b`rrgas fi fca wgrg gsm`p-ceo. \nge tng fca oc`et mn`eogl cts gstc-

h`tg tf 7,444 b`rrgas `el tnge ctsullgeay stfppgl t`akceo pubacmay `bfuttng h`sscvg vfauhg fi fca bgceo rgag`sgl.

 _g efw ag`re tn`t BT n`l cetgre`a lfmu-

8/9/2019 The Jere Beasley Report, Sep. 2010

6/409  www.Bg`sagy@aage.mfh 

hgets tn`t celcm`tgl ct kegw `ahfst94,444 b`rrgas pgr l`y w`s bgceo spcaaglcetf tng Ouai.

Lgspctg `e gvgr-gxp`elceo gstch`tg fitng vfauhg fi tng spcaa, rga`tcvgay acttag fca w`sngl `snfrg `t icrst, `el feay ` sh`aa

pfrtcfe gvgr wcaa. Cestg`l, tr`ppgl bgafwtng suri`mg, tng fca ifuas tng fmg`e–s lggplgptns. \ngrg cs ` tfxcm hcx fi fca,

hgtn`eg, mnghcm`a lcspgrs`ets, `el lrcaa-ceo hul bgafw tng suri`mg fi tng Ouai.Efbfly wctn w`akceo `rfuel sgesg

 wfual bgacgvg tn`t tng tnrg`t irfh tng fcaspcaa cs `eywngrg mafsg tf bgceo uelgrmfetrfa. \ng rga`tcvgay sh`aa `hfuets fi

fca w`snceo `snfrg, `el tng ‑rgacgi‘ igat wnge tng suri`mg fca bgo`e tf lcsscp`tg,

n`rlay `mmfuet ifr tng lgv`st`tcfe bgceolfeg `t tng bfttfh fi tng Ouai `el ce tng w`tgrs bgafw tng suri`mg. Rgmget rgpfrts

by celgpgelget smcgetcsts celcm`tg tngrg`rg pauhgs fi fca bgeg`tn tng suri`mg

tnrfuonfut tng Ouai tn`t `rg 24 hcagsafeo.C n`vg bgge surprcsgl tn`t h`ey ce tng

hglc` n`vg vcrtu`aay coefrgl tng mnghc-

m`as usgl by BT. C bgacgvg tng 2 hcaacfeo`aafes fi Mfrgxct pfurgl cetf tng fcaspcaa n`s mrg`tgl ` m`a`hcty ce tng

Ouai. \ng giigmts fi tng mnghcm`asluhpgl ce by BT wfe–t bg kefwe ifr yg`rs. \ng giigmt fi tng mnghcm`as w`s tf

kggp tng fca `bfut 74-044 iggt bgafw tngsuri`mg wngrg ct mfuale–t bg `mmfuetglifr. \nge humn fi tng fca s`ek tf tng

bfttfh bgm`usg fi tng mnghcm`as. C `htfal by gxpgrts tn`t tng mnghcm`as turetng fca `el mnghcm`a hcx cetf ` egutr`aay

bufy`et ghuascfe, wncmn wcaa st`y lfwelggp `el of `eywngrg `el gvgrywngrg

fvgr tchg.Ct–s lciicmuat tf uelgrst`el nfw tng GT@

`el Mf`st Ou`rl mfual `aafw tngsg hcs-

mfemgptcfes tf gxcst `el aceogr fe. \nga`mk fi ` pa`e by gctngr BT fr tng ofvgre-hget tf lg`a wctn ` h`sscvg spcaa fi tncs

sfrt cs chpfsscbag tf mfhprgngel. H`ybgsfhgbfly ce `utnfrcty snfual n`vg `skgl

BT wny tng Wectgl Kceolfh b`eeglMfrgxct. By tng w`y, ct snfual bg eftgltn`t Mfrgxct cs fwegl celcrgmtay by BT`el Gxxfe. BT n`l tf kefw tn`t Mfrgxct

cs n`z`rlfus tf ng`atn. By cts fwe cetgre`argpfrts, Mfrgxct m`e m`usg rgl baffl mgaa,acvgr, kclegy `el rgspcr`tfry h`aiuemtcfes

fr i`caurg ce nuh`es `el sg` acig.

CCC.

LRWO

H@EWI@M\WRGR]

IR@WL AC\CO@\CFE

F \NGR  ] \@\G]  ] G\\ACEO  H GLCM@CL  I R@WL  M @]G] 

 @s wg n`vg wrcttge ce prgvcfus glc-tcfes, fur icrh murrgetay rgprgsgets gcont

st`tgs, ftngr tn`e @a`b`h`, ce tng Hglcm-`cl ir`ul actco`tcfe. \nus i`r wg n`vgsgttagl ma`chs ce sgvgr`a fi tnfsg st`tgs

 wctn ` euhbgr fi lruo h`eui`mturgrs. Cei`mt, wg `rg stcaa bgceo ncrgl by st`tgs tfrgprgsget tngh ce tngcr ma`chs `o`cest tng

lruo h`eui`mturgrs. ]fhg @a`b`hc`eshcont wfelgr wny ftngr st`tgs `rg bgceo

summgssiua `o`cest tng lruo mfhp`ecgs fei`mts vcrtu`aay clgetcm`a tf tnfsg ce

 @a`b`h .̀ C hust mfeigss tng vgry tnfuontn`s mrfssgl hy hcel.

Fur ]uprghg Mfurt n`s ruagl ce i`vfrfi sgvgr`a lruo mfhp`ecgs ce m`sgs wctn

i`mts tn`t wgrg `s strfeo `s `ey m`sg Cn`vg gvgr trcgl. Fur ]uprghg Mfurt–slgmcscfes mfst @a`b`h` mctczges nuelrgls

fi hcaacfes fi lfaa`rs. Hglcm`cl, gvge wctntng nuog `hfuet fi iglgr`a iuels bgceosget ce irfh tng Fb`h` @lhcecstr`tcfe,

efw n`s ` snfrt i`aa fi `bfut $9<hcaacfe. \ng hfegy irfh tng st`tg–s a`w-sucts wfual surgay n`vg mfhg ce n`ely.

T F\GE\C@A Y CFA@\CFE]  F I  @E\C -B RCBGRS  A@_]  B GCEO  C EYG]\CO@\GL 

\wf iglgr`a `ogemcgs `rg prfbceo lruo-

h`kgr Hgrmk tf sgg ci ct n`s vcfa`tgl `etc-brcbgry a`ws ce huatcpag ifrgcoemfuetrcgs. Hgrmk, tng wfral–s sgmfel-bco-

ogst lruoh`kgr by rgvgeug, n`s rgmgcvglcequcry agttgrs irfh bftn tng Lgp`rthgetfi Justcmg `el tng ]gmurctcgs `el

Gxmn`eog Mfhhcsscfe. \ng agttgrs ‑sggk

ceifrh`tcfe `bfut `mtcvctcgs ce ` euhbgrfi mfuetrcgs `el rgigrgemg tng Ifrgcoe

Mfrrupt Tr`mtcmgs @mt,‘ `mmfrlceo tfHgrmk. \ng @mt b`rs W.]. mfhp`ecgs irfhbrcbceo ofvgrehget fr mfrpfr`tg fiicmc`as

ce ftngr mfuetrcgs tf wce buscegss,`hfeo ftngr tnceos.

Hgrmk `el hfst ftngr a`rog pn`rh`-mgutcm`a mfhp`ecgs ifr tng p`st mfupag yg`rs n`vg bgge ce tfuon mfhpgtctcfe ifr

s`ags ce ghgroceo h`rkgts cemaulceo

Mnce`, Russc`, Celc` `el Br`zca. Ofvgre-

hget ng`atn prfor`hs ce sumn mfuetrcgsfitge mfetrfa tng prcmgs `aafwgl ifr prg-smrcptcfe lruos `el lgmclg wncmn br`els

tngy wcaa buy ifr hcaacfes fi nfspct`a `elftngr p`tcgets. Ct–s bgceo rgpfrtgl tn`ttng lruo celustry vcgws ncon-vfauhg

s`ags ce ghgroceo h`rkgts `s cts bgstnfpg ifr orfwtn. Mfhp`ecgs n`vg bgge

`llceo tnfus`els fi s`agspgfpag `elbucalceo i`mtfrcgs st`iigl by afw-p`cl wfrkgrs ce tnfsg mfuetrcgs.

Hgrmk n`s ` ncstfry fi trfubag rgo`rl-

ceo prfhftcfe fi cts prflumts. Fur icrh w`s ng`vcay cevfavgl ce tng Ycfxx actco`-tcfe tn`t rgsuatgl ce Hgrmk p`yceo fut

$7 bcaacfe tf sgttag rfuonay 74,444 a`w-sucts brfuont by p`tcgets fr survcvfrs fipgfpag wnf tffk tng p`cekcaagr. @s wg

kefw `aa tff wgaa, Hgrmk lfwepa`ygl Ycfxx–s l`eogrs `el hcsagl bftn tng IL@`el tng pubacm `bfut Ycfxx. _g kefw

tn`t Ycfxx `mtu`aay lfubagl tng rcsk fing`rt `tt`mks `el strfkgs, cemaulceo i`t`a

fegs. Murrgetay, Hgrmk cs fpgr`tceo uelgr` Mfrpfr`tg Cetgorcty @orgghget wctn tngW.]. ofvgrehget mfvgrceo cts prfhftcfe`a

pr`mtcmgs `el prcmg rgpfrtceo. \ng `orgg-hget rues tnrfuon Igbru`ry 240= `el csschca`r tf twf g`racgr, icvg-yg`r mfrpfr`tg

cetgorcty `orgghgets wctn tng W.].Lgp`rthget fi Ng`atn `el Nuh`e ]gr-

 vcmgs Fiicmg fi Cespgmtfr Ogegr`a.

\ng `orgghgets ce ogegr`a `aa rgqucrgHgrmk `el cts ]mngrceo-Tafuon uect tf

h`cet`ce `e gtncms tr`ceceo prfor`h, `s wgaa `s ‑pfacmcgs `el prfmglurgs ofvgre-ceo prfhftcfe`a pr`mtcmgs‘ `el rgpfrtceofi prcmgs ifr cts lruos tf tng Hglcm`cl

ng`atn prfor`h. Hgrmk bfuont ]mngrceo-Tafuon ifr $

8/9/2019 The Jere Beasley Report, Sep. 2010

7/40

CY.

TWRGAS TFAC\CM@A

EG_] & YCG_]

@ T FAC\CM@A AFFK  \ F_@RL  \ NG  I @AA C E  @A@B@H@

 \ng Ofvgrefr–s R`mg

Ct `ppg`rs tngrg `rg twf offl m`elc-l`tgs ifr tng ogegr`a gagmtcfe ce tng Ofv-grefr–s r`mg. Irfh `aa `mmfuets, bftn Rfe

]p`rks `el Rfbgrt Bgetagy iuaay cetgel tfkggp tngcr mfhhcthgets `el rue pfsctcvgm`hp`coes. Ci tn`t n`ppges“`el C

bgacgvg ct wcaa“m`elcl`tgs wcaa lcsmusstng rg`a cssugs tn`t i`mg @a`b`h` mctczges.Ce mfhp`rceo tng pa`tifrhs fi tng efhc-

eggs ifr tngcr rgspgmtcvg p`rtcgs, tngrglfe–t `ppg`r tf bg `ey h`jfr lciigrgemgs.

G`mn cs ifr mrg`tceo offl-p`yceo jfbs,chprfvceo pubacm glum`tcfe `t gvgryagvga, lg`aceo wctn tng BT fca spcaa lcs`stgr`el h`kceo surg tn`t `aa rgspfescbag getc-

tcgs mag`e up tng hgss `el mfhpges`tg`aa fi tng vcmtchs prfhptay `el iuaay. \ngegxt stgp, nfwgvgr, wcaa bg ce prfvclceo

sfautcfes ifr `aa fi @a`b`h`–s h`ey prfb-aghs.

Feg h`jfr lciigrgemg tn`t C m`e sgg

rga`tgs tf tng o`hbaceo cssug tn`t n`st`kge i`r tff humn tchg `el giifrt ce tng

Agocsa`tcvg, Gxgmutcvg `el Julcmc`a

br`emngs fi fur st`tg–s ofvgrehget fvgrtng p`st sgvgr`a yg`rs. Rfe w`ets tf `aafw

tng murrget o`hceo fpgr`tcfes, prfpgrayrgoua`tg tngh `el t`x tngh. Lr. Bgetagy w`ets tng vftgrs tf n`vg `e fppfrtuecty

ifr `e up fr lfwe vftg fe tng o`hbaceocssug. C rg`aay lfe–t n`vg ` bco prfbagh wctn gctngr pfsctcfe. C `h mfevcemgl tn`t

hfst @a`b`hc`es w`et tng pubacm lgb`tgfvgr o`hbaceo tf gel `el tng cssugrgsfavgl feg w`y fr tng ftngr. Tgrsfe`aay,

C i`vfr ` vftg fe tng cssug sf tn`t furgagmtgl fiicmc`as m`e ogt lfwe tf tng busc-

egss fi rueeceo st`tg ofvgrehget `elt`mkaceo tng hfeuhget`a prfbaghsi`mceo fur st`tg. Hy cectc`a `ssgsshget cstn`t wg n`vg twf offl m`elcl`tgs

rueeceo ce tng ogegr`a gagmtcfe ifr `mn`eog. \ng feg wnf cs `bag tf mfhhuec-

m`tg wctn tng vftgrs `el ocvg str`cont`eswgrs tf lcrgmt qugstcfes wcaa n`vg `lgicectg `lv`et`og. \ng pubacm cs affkceo

ifr m`elcl`tgs wnf rg`aay bgacgvg wn`ttngy s`y `el wnf wcaa `mt fe tnfsg

bgacgis. _g n`vg n`l tff h`ey brfkge

prfhcsgs `el coefrceo prfbaghs fvgr tng yg`rs. Nfpgiuaay, tnfsg l ỳs `rg fvgr.

 \ng At. Ofvgrefr–s R`mg

\ng r`mg bgtwgge Jch Ifasfh `el K`y

Cvgy n`s bgge vgry qucgt sf i`r. \ncs feg wcaa ng`t up `itgr A`bfr L`y `el tn`t–s `

mgrt`cety. _ncag Jch cs feg fi tng bgst

m`hp`coegrs `rfuel tfl`y, ng rg`aczgstn`t ng wcaa n`vg tf wfrk n`rlgr tncs i`aa.

H`ey bgacgvg Jch h`y n`vg tf utcaczg ncsbgst `ssgt“ncs wcig H`rsn`“ce tncsr`mg. H`rsn` h`y `mtu`aay bg tng bgst

m`hp`coegr fi tng twf. Ce `ey gvget, tncsr`mg wcaa ogt uelgrw`y i`cray sffe. JchIfasfh n`s lfeg `e futst`elceo jfb `s

At. Ofvgrefr `el ct wcaa bg cetgrgstceo tfsgg ci tng OFT wcaa bg `bag tf icel w`ystf `tt`mk nch.

 \ng @ttfregy Ogegr à–s R`mg

\ng r`mg ifr @ttfregy Ogegr`a tncs i`aa

 wcaa n`vg twf vgry lciigrget m`elcl`tgsfe tng b`aaft ce J`hgs @elgrsfe `elAutngr ]tr`eog. Fe feg n`el, wg n`vg

 J`hgs, wnf n`s bgge ` vgry summgssiuaa`wygr `el wnf n`s trcgl nuelrgls fim`sgs bgifrg jurcgs. Fe tng ftngr n`el,

Autngr n`s bgge ` _`snceotfe afbbycst wnf n`s n`l `ahfst ef trc`a gxpgrcgemg.Feg scoecicm`et tnceo tf mfesclgr cs tn`t

tng OFT efhcegg wfe–t bg `bag tf a`bgancs fppfeget `s ` ‑trc`a a`wygr‘ scemg

 J`hgs n`s wfrkgl ifr yg`r s `s ` vgryoffl lgigesg a`wygr `el n`s n`l ` afeo`el summgssiua m`rggr. Nfpgiuaay, tncs r`mg wcaa st`y fut fi tng outtgr `el tng m`elc-

l`tgs wcaa `llrgss rg`a cssugs tn`t `iigmttng fiicmg fi @ttfregy Ogegr`a.

 \ng Agocsa t̀cvg R`mgs

\ng Rgpubacm`e T`rty cs h`kceo pa`estf t`kg fvgr tng @a`b`h` Agocsa`turg.

 _ncag C lfe–t bgacgvg tn`t wcaa n`ppge,sfhg fi tng r`mgs wcaa bg nftay mfetgstgltncs i`aa. H`ey pfactcm`a fbsgrvgrs bgacgvg

tn`t tng `rrfo`emg fi tng Rgpubacm`eT`rty ag`lgrsncp wcaa gvgetu`aay ture fiicelgpgelget vftgrs wnf `rg scmk `el

tcrgl fi ego`tcvcsh `el `tt`mk-styag pfac-tcms. _g n`vg h`jfr prfbaghs ce @a`b`h``el ct–s tchg tf ogt lfwe tf tng buscegss

fi sfavceo tnfsg prfbaghs. _g n`vg sgge vgry acttag ce tng p`st tn`t wfual celcm`tgtn`t tng Rgpubacm`es ce tng Agocsa`turg

`rg m`p`bag fi sfavceo fur st`tg–s prfb-aghs. \ngsg `rg tng s`hg Rgpubacm`es

 wnf efw s`y tngy w`et tf t`kg fvgr `elrue tng Agocsa`turg.

Y.

MFWR\ _@\MN

] GE@\G  M FEICRH]  G AGE@ K @O@E  @]  002 \N  ] WTRGHG  M FWR\  J W]\CMG  

\ng ]ge`tg fe @uoust 7tn   mfeicrhglGage` K`o`e `s tng 002 tn   Justcmg `elifurtn wfh`e tf sgrvg fe tng W.].

]uprghg Mfurt. \ng vftg w`s 9=-=? ifrtng Trgsclget–s efhcegg tf summgglrgtcrgl Justcmg Jfne T`ua ]tgvges. Icvg

Rgpubacm`es jfcegl `aa but feg Lghfmr`t`el tng ]ge`tg–s twf celgpgelgets tfsuppfrt tng egw hghbgr fi tng Mfurt. Ct

 w`s rgpfrtgl tn`t ce ` r`rgay-pr`mtcmglrctu`a rgsgrvgl ifr tng hfst ncstfrcm vftgs,]ge`tfrs s`t `t tngcr lgsks `el stffl tf

m`st tngcr vftgs wctn ‑`ygs‘ `el ‑e`ys.‘\ncs w`s ` ncstfrcm hfhget `el feg tn`tC bgacgvg w`s offl ifr tng @hgrcm`e

pgfpag.\ng e`ys`ygrs ce tng ]ge`tg put up `

prgtty wg`k icont ce tngcr fppfsctcfe tf Jus tcmg K`o`e. T`r tcs`e fppfsctcfe“ wctnfut `ey rg`a b`scs ifr fppfsceo `

efhcegg“m`e egvgr bg offl ce hyfpcecfe. Sgt tn`t cs gx`mtay wn`t wg n`vgsgge ce tng a`st twf Justcmgs tf bg mfe-

icrhgl by tng ]ge`tg. ]fhg fi tng `tt`mksfe Gage` K`o`e wgrg fii-b`sg, tft`aayueifuelgl `el rgiagmtgl pffray fe tng

`tt`mkgrs. C suspgmt tngcr hftcvgs wgrghfrg pfactcm`a tn`e b`sgl fe tng efhc-egg–s qu`acicm`tcfes.

 _ncag Hs. K`o`e cs tng icrst ]uprghgMfurt efhcegg ce eg`ray

8/9/2019 The Jere Beasley Report, Sep. 2010

8/40>  www.Bg`sagy@aage.mfh 

 julogs ag`lceo st`tg suprghg mfurts. \ngh`o`zceg, pubacsngl by tng @hgrcm`e B`r @ssfmc`tcfe, rgpfrtgl tng trgel sgghgl

prgv`aget ce tng ]futn, wngrg gcont fi 0=st`tgs n`vg wfhge sgrvceo `s mncgi justcmg. E`tcfe`aay, tngrg `rg 24 st`tgs

 wngrg ` wfh`e sgrvgs `s mncgi justcmg,hfrg tn`e `t `ey tchg ce W.]. ncstfry. Mncgi Justcmg Mfbb tfal tng h`o`zceg:

 C `sk pgfpag ci tngy kefw nfwh`ey wfhge mncgi justcmgs tngrg

`rg, `el tngy `eswgr twf fr tnrgg.

_nge C tgaa tngh, tngy `rg snfmkgl.

 But ct rg`aay bafws tngh `w`y

wnge C tgaa tngh nfw h`ey tngrg

`rg fi us ce tng ]futn.

Fvgr`aa, hfrg wfhge `rg bgmfhceo

a`wygrs `el julogs, tng Jfure`a rgpfrtgl.Mctceo ` rgmget rgpfrt getctagl ‑\ng @hgr-cm`e Bgemn: Julogs fi tng E`tcfe,‘ tng

`rtcmag st`tgl wfhge mfhpfsg 29% fi

st`tg julcmc`rcgs `el 22% fi tng iglgr`a julcmc`ry. _fhge efw h`kg up % fi

a`w smnffa or`lu`tgs `el tf tng @m`lghy fi @mncgvghget: ‑C w`se–t ncrgl tf bg `

hfr`a julog fr ` prg`mngr fr `e gv`eog-

acst. C–h ncrgl tf `ppay tng a`w.‘ C wfualgemfur`og `aa fi fur rg`lgrs“`el gspg-mc`aay tnfsg wnf wgrge–t `rfuel lurceo

tng pgrcfl bgtwgge 0377 `el 03?7“tflf ` acttag rgsg`rmn `el ag`re `aa yfu m`e

`bfut Julog Jfnesfe–s lcstceoucsnglm`rggr `el ncs h`ey scoecicm`et mfetrcbu-tcfes tf h`kceo fur e`tcfe– ` bgttgr pa`mg

ifr `aa fi us.

@TTG@A]  M FWR\  W TNFAL]  $97 H CAACFE  Y GRLCM\  I FR  _ FH@E  C E  244? M R@]N 

 @ Iafrcl` @ppg`as Mfurt n`s upngal `$97 hcaacfe vgrlcmt ifr ` wfh`e cejurgl

ce ` 244? tr`iicm mr`sn. Kgelr` Ayhfe,tnge 03, w`s lrcvceo ngr Lflog Egfe

b`mk ce 244?, wnge ` tr`mtfr-tr`cagr strumkngr m`r fe ` st`tg nconw`y. Bgifrg tngmr`sn, Hs. Ayhfe w`s `ttgelceo ]futn

Iafrcl` Mfhhuecty Mfaagog, h`jfrceo cepsymnfafoy. ]ng mfual spg`k scx a`e-ou`ogs `el w`s wfrkceo `s ` rgsclgetc`a

`clg ifr Iafrcl` Cestctutg fi EgurfafocmRgn`bcact`tcfe. ]ng w`s b`lay cejurgl cetng mr`sn `el w`s agit wctn gxtgescvg lcs-

`bcactcgs. ]ng w`s ue`bag tf m`rg ifrngrsgai. Ngr mfelctcfe rgqucrgs mfest`etsupgrvcscfe.

Lurceo ` efrh`a l`y, Hs. Ayhfergqucrgs `sscst`emg tf b`tng, tf lrgss, tfg`t, tf of tf tng b`tnrffh `el tf lf

ftngr rfutceg t`sks fi l`cay acvceo. ]ng n`s

trfubag w`akceo `el usgs ` wnggamn`cr. CeH`rmn fi 2443, ` jury ifuel ce i`vfr fi

Hs. Ayhfe `el rgturegl wctn tng huatc-hcaacfe-lfaa`r vgrlcmt. \ng a`wygrs ifr tng

lgigel`ets, Byeuh \r`espfrt `el cts p`rt-tchg trumk lrcvgr, `rougl fe `ppg`a tn`ttng `hfuet snfual bg rglumgl bgm`usg ct

 w`s gxmgsscvg `el ̀ egw trc à or`etgl.\ng `ppg`a spgmcicm`aay mn`aageogl

$

8/9/2019 The Jere Beasley Report, Sep. 2010

9/40   www.JgrgBg`sagyRgpfrt.mfh 3

sce Lgp`rthget fi E`tur`a Rgsfurmgss`cl. \ng vcfa`tcfes m`hg lurceo mfe-strumtcfe fi ` =20-hcag, $2 bcaacfe fca pcpg-

aceg `mrfss tn`t st`tg. Gebrclog `orggl tfp`y $0.0 hcaacfe ce 2443.

\ng Hcmnco`e ag`k m`hg irfh ` =4-cemn

pcpgaceg, wncmn w`s bucat ce 0393 `elm`rrcgs `bfut > hcaacfe o`aafes fi fca l`cayirfh Orciictn, Celc`e`, tf ]`rec`,

Fet`rcf. @e >4-hcag sgohget fi tng rcvgrtn`t bgoces `t Hfrrfw A`kg `el icvg hcagsfi ` trcbut`ry, Tfrt`og Mrggk, n`vg ues`ig

agvgas fi TMBs `el wgrg pa`mgl fe tngiglgr`a ]upgriuel acst fi ncon-prcfrcty n`z-`rlfus w`stg sctgs ce 0334. \ng K`a`h`-

zff sctg `asf cemaulgs ifur a`elicaas `elsgvgr`a lgiuemt p`pgr hcaas.

]furmg: @ssfmc`tgl Trgss

@HGRCM@E]  B GACGYG  \ NGRG  C ]  \ FF  H WMN  C ELGMGEMS  F E  \Y 

\ng @hgrcm`e pgfpag snfual bg fut-r`ogl fvgr wn`t cs bgceo snfwe by bftn

mfhhgrmc`a `el m`bag tgagvcscfe egt- wfrks `el ct `ppg`rs tngy `rg. Ce tng `ogfi sacmk sctmfhs, rg`acty snfws `el m`bag

tgagvcscfe, 7?% fi @hgrcm`e `luats tncektngrg cs tff humn ce`pprfprc`tg mfetgetfe tgagvcscfe `el r`lcf. @ egw R`shus-

sge Rgpfrts tgagpnfeg survgy icels tn`t just =0% lcs`orgg, `el `eftngr 02% `rgeft surg. \ncrty-eceg pgrmget (=3%) s`y

tng bcoogst prfbagh fe \Y cs vcfagemg,

 wncag eg`ray `s h`ey (=9%) s ỳ ct–s sgxu àmfetget. Eceg pgrmget (3%) s`y prfi`ectycs tng bcoogst prfbagh `rg`.

 @ttctulgs n`vg mn`eogl sfhgwn`t ce

tng a`st igw yg`rs. Ce Jueg 244?, @hgrc-m`es wgrg vgry mfemgregl wctn sgxu`amfetget `el prfi`ecty fe tgagvcscfe, but

tng mfemgre wctn prfi`ecty sgghs tf n`vg w`egl. @hgr cm`es `rg mafsgay lcvclgl wnge `skgl wnf cs rgspfescbag ifr tng

agvga fi fbjgmtcfe`bag mfetget fe tgagvc-scfe, but tngy ba`hg tgagvcscfe vcgwgrstng hfst.

\wgety-eceg pgrmget (23%) igga tnfsg wnf w`tmn prfor`hs wctn fbjgmtcfe`bagmfetget ̀ rg hfst rgspfescbag. \wgety-icvg

pgrmget (27%) s`y tng h`kgrs fi tng tgag- vcscfe snfws `rg prch`rcay rgspfescbag, wncag `eftngr 27% nfal tng tgagvcscfe

egtwfrks mncgiay tf ba`hg. Just 3% ba`hgtng `lvgrtcsgrs fi tng prfor`hs.

]cxty-tnrgg pgrmget (9=%) fi `luats s`ytngy w`tmn tgagvcscfe gvgry l`y freg`ray gvgry l`y. But feay >% s`y tngy

r`rgay fr egvgr w`tmn tgagvcscfe. Falgr @hgrcm`es w`tmn tgagvcscfe hfrg rgou-a`ray tn`e tnfsg wnf `rg yfueogr.

 _fhge `el h`rr cgl `luats `rg hfrgackgay tn`e hge `el ueh`rrcgls tf tncektngrg cs tff humn ce`pprfprc`tg mfetget

fe tgagvcscfe.\nfsg wctn mncalrge ce tng nfhg `rg

sacontay hfrg ackgay tf tncek tgagvcscfe n`s

tff humn ce`pprfprc`tg mfetget tn`etnfsg wctnfut mncalrge acvceo wctn tngh.

 Just fvgr n`ai fi @ircm`e-@hgrcm`es iggasgxu`a mfetget cs tng bcoogst prfbagh fetgagvcscfe, wncag wnctgs `el `luats fi

ftngr gtnecmctcgs tgel tf igga vcfagemg cstng bcoogst prfbagh. @hgrcm`es `rg mfe-mgregl `bfut vcfaget vclgf o`hgs, tff,

 wctn fvgr n`ai wnf s`y tngy ag`l tf hfrg vcfagemg ce sfmcgty. \ng survgy fi 0,444`luats w`s mfelumtgl fe Juay 2?-2>, 2404

by R`shussge Rgpfrts. Icgal wfrk ifr `aaR`shussge Rgpfrts survgys cs mfelumtgl

by Tuasg Fpcecfe Rgsg`rmn, AAM.]furmg: T`rgets \gagvcscfe Mfuemca

_ G  E GGL  @ E G_  M FT  F E  \ NG  F CA L RCAACEO  B G@\ 

\ng Hcegr`as H`e`oghget ]grvcmg(HH])“tng `ogemy wctn rgspfescbcacty

ifr rgoua`tceo fca lrcaaceo“n`s bggetft`aay cegiigmtcvg `el n`s tf sn`rg sfhgfi tng ba`hg ifr tng fca spcaa lcs`stgr ce

tng Ouai fi Hgxcmf. Ce i`mt HH], wncmn

efw n`s ` br`el egw e`hg, n`s actgr`aaybgge ce bgl wctn tng fca celustry. Ofv-

grehget cevgstco`tfrs ifuel tn`t HH]rgoua`tfrs wgrg p`rtyceo `el `mtu`aaysaggpceo wctn fca mfhp`ey rgprgsget`-

tcvgs. \ng i`caurgs tf prfhuao`tg strfeorgoua`tfry hg`surgs `el tf hfectfr `elcespgmt tng lggp w`tgr lrcaaceo fpgr`-

tcfes ̀ rg cegxmus`bag. BT, ̀ el C suspgmt `aaftngr mfhp`ecgs lrcaaceo ce tng Ouai,n`vg prgtty humn fpgr`tgl wctnfut `ey

rg`a rgoua`tcfe ifr yg`rs. _g b`lay eggl `e getcrgay egw rgoua`-

tfr `el ct wcaa t`kg hfrg tn`e ` e`hgmn`eog. \ng rgoua`tfrs hust bg celgpge-lget `el wcaaceo tf lf tng jfb fi rgoua`t-

ceo ` pfwgriua celustry. Afm`amfhhuectcgs `asf hust bg ocvge ` rfag cegesurceo tng s`igty fi fca lrcaaceo fpgr`-

tcfes. But mn`eog cs egvgr g`sy wnge BcoFca cs cevfavgl. \ng pfwgr `el ceiaugemgfi tng oc`et fca mfhp`ecgs cs v`st `el i`r

rg`mnceo `el, `s ` rgsuat, tngy n`vg prgttyhumn n`l tngcr w`y ce _`snceotfe. Ct–s

gvclget tn`t Bco Fca–s afbbycsts n`vg w`ysfi ogttceo tf pubacm fiicmc`as ce `aabr`emngs fi ofvgrehget `t bftn tng st`tg

`el iglgr`a agvgas. Ct–s tchg tf murb tngcrceiaugemg.

YCC.

\NG MFRTFR@\G

_FRAL

\ FB@MMF  M FHT@ECG]  T @S  $=4 H CAACFE  C E  B RCBGRS  ] G\\AGHGE\ 

\wf @hgrcm`e tfb`mmf mfhp`ecgs `rgp`yceo eg`ray $=4 hcaacfe tf sgttag

mn`rogs tn`t tngy brcbgl ifrgcoe fiicmc`astf ogt aumr`tcvg fvgrsg`s tfb`mmf s`agsmfetr`mts. \ng mfhp`ecgs, Wecvgrs`a

Mfrp. fi Rcmnhfel, Ycrocec`, `el @aac`emg

Feg Cetgre`tcfe`a fi Hfrrcsvcaag, EfrtnM`rface`, i`mg mcvca `el mrchce`a mn`rogs

irfh tng ]gmurctcgs `el Gxmn`eog Mfh-hcsscfe `el Justcmg Lgp`rthget.

Wecvgrs`a w`s `mmusgl fi brcbceo fiic-mc`as ce \n`ca`el, H`a`wc `el Hfz`h-bcqug. @aac`emg Feg cs `mmusgl fi brcbceo

fiicmc`as ce \n`ca`el, Mnce`, Orggmg, Celf-egsc`, `el Kyroyzst`e. \f sgttag tngmn`rogs, @aac`emg Feg n`s `orggl tf p`y `

mrchce`a iceg fi $3.

8/9/2019 The Jere Beasley Report, Sep. 2010

10/4004  www.Bg`sagy@aage.mfh 

pfr`tg afbbycsts `rg ce fur E`tcfe–sM`pctfa. @ rgmget pfaa by ]urvgyW]@`bfut mfrpfr`tg ceiaugemg fvgr fur

lghfmr`my snfws tn`t vftgrs w`et tngcrag`lgrs tf st`el up fe tncs mrctcm`a cssug.Ngrg–s wn`t tng pfaastgrs ifuel:

 @e fvgrwngahceo ?=% fi vftgrs,

cemaulceo 9?% fi Rgpubacm`es `el

?0% fi celgpgelgets, `rg hfrg

ackgay tf suppfrt ` m`elcl`tg ifrMfeorgss wnf wfrks tf rglumg tng

ceiaugemg fi mfrpfr`tg afbbycsts ce

_`snceotfe. @el `ahfst twf fut fi

tnrgg vftgrs (94%) lcs`orgg wctn

tng ]uprghg Mfurt–s lgmcscfe ce tng

Mctczges Wectgl m`sg.

\ngrg cs `e feofceo hfvghget by

Tubacm Mctczge tf ogt Mfeorgsscfe`a m`elc-l`tgs tf h`kg ` paglog tf rglumg tngceiaugemg fi afbbycsts ce fur E`tcfe–s

M`pctfa. ]f i`r, fvgr

8/9/2019 The Jere Beasley Report, Sep. 2010

11/40   www.JgrgBg`sagyRgpfrt.mfh 00

gicts ce K-02 smnffas lurceo tng smnffa yg`r jus t efw bgoceeceo. Mag`r ay, tngiglgr`a hfegy `o`ce m`hg `t ` vgry offl

tchg. C lfe–t bgacgvg tng st`tg wcaa sgeltng hfegy b`mk“gvge tnfuon ct m`hgirfh _`snceotfe.

]furmg: @ssfmc`tgl Trgss

C^.\FSF\@

AC\CO@\CFE

Ct–s efw gvclget tn`t \fyft`–s s`igty

prfbaghs `rg humn wfrsg tn`e icrsttnfuont. \ng cectc`a `ssgsshget wnge tnguecetgelgl sullge `mmgagr`tcfe prfb-

aghs icrst suri`mgl w`s b`l gefuon, butct–s efw bgmfhg gvclget tn`t tngmfhp`ey n`s bgge nclceo cts s`igty prfb-

aghs irfh tng pubacm `el `asf irfh tngiglgr`a ofvgrehget. ]fhg fi \fyft`–sbcoogst prfbaghs `rg just mfhceo tf tng

suri`mg. \ng trghgelfus euhbgr firgm`aas `el tng ceifrh`tcfe mfhceo tfacont `bfut wn`t \fyft` kegw `el wnge

ct kegw ct snfual bg fi h`jfr mfemgre tfEN\]@ `el tf tng @hgrcm`e pgfpag.

Nfpgiuaay, \fyft`–s h`sscvg pubacm rga`-tcfes m`hp`coe“utcaczceo bftn tgagvcscfe`el egwsp`pgr `ls“wfe–t m`usg tng

pubacm tf ocvg tng `utfh`kgr ` p`ss fes`igty.

\ FSF\@ M FEMG@AGL  @MMGAGR@\CFE  L GIGM\] 

 @ rgmgetay-icagl a`wsuct `aagogs tn`t\fyft` kegw `bfut tng sullge `mmgagr`-

tcfe prfbaghs ce cts vgncmags `s i`r b`mk`s 244=, but mfemg`agl tng lgigmts irfhmfesuhgrs `el rgoua`tfrs. Ct cs `aagogl

tn`t tng J`p`egsg `utfh`kgr n`s ofttgetges fi tnfus`els fi mfhpa`cets irfhmfesuhgrs wnf s`y tngcr m`rs sullgeay

spggl fut fi mfetrfa. \ng suct `aagogs tn`ttng gagmtrfecm tnrfttag cs ` m`usg fi tncsuecetgelgl `mmgagr`tcfe, `el s`ys tn`t

r`tngr tn`e lcsmafsceo tng mfemgre, \fyft`‑mfemg`agl tng gxcstgemg fi tncs lgigmt.‘

Cetgre`a lfmuhgets rgvg`agl tn`t \fyft``asf rgmgcvgl gvclgemg tn`t tng ackgacnfflfi uecetgelgl `mmgagr`tcfe cemrg`sg ‑sub-

st`etc`aay‘ ce m`rs wctn gagmtrfecm tnrfttagsystghs.

\ng a`wsuct, wncmn cs sggkceo ma`ss-

`mtcfe st`tus ce tng W.]. Lcstrcmt Mfurt ce

M`acifrec`, sggks tf rgprgsget mfesuhgrs

`el buscegssgs tn`t bfuont fr ag`sgl\fyft` vgncmags h`eui`mturgl ce tngW.]. \n`t n`vg `e gagmtrfecm tnrfttag

mfetrfa systgh. \fyft` n`s `lhcttgl tn`ttwf hgmn`ecm`a cssugs m`usg sullgeuecetgelgl ̀ mmgagr`tcfe:

• ` ‑stcmky pgl`a,‘ wncmn cs `e `mmgagr`tfr

tn`t ogts stumk n`ai w`y lfwe, `el

• tng o`s pgl`a ogttceo stumk fe tncmkiaffr h`ts.

Egvgrtngagss, \fyft` mfetceugs tflgigel tng gagmtrfecm tnrfttag. \ng Ta`ce-

tciis mfetgel ce tncs m`sg tn`t \fyft`snfual bg ngal rgspfescbag ifr tng lrfpce rgs`ag v`aug ce m`rs tn`t `rg `iiacmtgl

 wctn tncs prfbagh `el tn`t mfesuhgrs`el buscegssgs snfual bg `aafwgl tfrgture tngcr lgigmtcvg m`rs tf \fyft`.

‑\fyft` rgjgmts ma`chs tn`t Ta`cetciis sui-

igrgl gmfefhcm l`h`ogs bgm`usg fi tngrgmget rgm`aas,‘ tng mfhp`ey s`cl. Ct–s `asf

rgqugstgl tn`t \fyft` cest`aa ` br`kg fvgr-rclg systgh ce `aa m`rs wctn `e gagmtrfecms`igty tnrfttag `el `asf p`y ` iceg.

Cetgre`a \fyft` lfmuhgets rgvg`a tn`tsfhg `t tng mfhp`ey wgrg `w`rg `s i`rb`mk `s 244= fi tng prfbagh fi uece-

tgelgl `mmgagr`tcfe ce m`rs tng mfhp`eyh`lg. Ce ` rgvcsgl Mfhpa`cet `o`cest tng

`utfh`kgr icagl fe @uoust 2el ce W.]. Lcs-trcmt Mfurt ce M`acifrec`, tng Ta`cetciis–

`ttfregys s`y tn`t ce ` 244= icgal rgpfrt `

mfhp`ey tgmnecmc`e wrftg up ` m`sg fisullge, uecetgelgl `mmgagr`tcfe. \ng

`utnfr fi tncs rgpfrt rgqugstgl chhglc-`tg `mtcfe lug tf tng ‑gxtrghgay l`eogr-fus prfbagh,‘ `el s`cl ‑wg `rg `asf humn

`ir`cl fi irgqugemy fi tncs prfbagh ceeg`r iuturg.‘

]furmgs: _`snceotfe Tfst  `el MEE 

I AFFR  H @\  ] @CL  \ F  N @YG  M @W]GL  M R@]N  

 @ wrfeoiua lg`tn a`wsuct n`s bgge

icagl `o`cest \fyft` Hftfr Mfrp. @el `\fyft` lg`agrsncp `rcsceo fut fi ` Lgmgh-

bgr m`r mr`sn. Ct w`s `aagogl ce tng Mfh-pa`cet tn`t tng lg`tn fi Jgiigry Agvceg w`stng rgsuat fi ` i`uaty `mmgagr`tfr `el iaffr

h`t. \ng suct `mmusgs tng mfhp`ey ficetgetcfe`a hcsmfelumt `el egoacogemg ce

mfeegmtcfe wctn tng mr`sn `el rgsuatceolg`tn tn`t fmmurrgl fe Lgmghbgr 0?,2443.

Hr. Agvceg, wnf n`s twf mncalrge, w`smfhceo nfhg irfh wfrk `t 7:=4 `.h.

efrtnbfuel fe W.]. 37 wnge tng o`spgl`a fi ncs 2443 \fyft` \`mfh`, `

mfhp`ey vgncmag, bgm`hg afloglbgeg`tn tng trumk–s iaffr h`t. \ng vgncmagtnge `mmgagr`tgl tf spggls gxmgglceo 34

hpn, sa`hhgl cetf tng b`mk fi ` hftfrnfhg `el vggrgl fii tng nconw`y. Hr.Agvceg lcgl `t tng smgeg. Ncs bfly–s pfsc-

tcfe suoogstgl ng w`s tryceo tf lcsaflog

tng ̀ mmgagr`tfr.Hrs. Kch Agvceg, tng wclfw, cs sggkceouespgmcicgl mfhpges`tcfe ifr tng ghf-tcfe`a tr`uh` gxpgrcgemgl by ngr `el tng

mfupag–s twf sfes, `el tng gmfefhcm afssrgsuatceo irfh ngr nusb`el–s lg`tn. \ngtwf bfys, `ogs scx `el 0=, `rg struooaceo

tf mfpg wctn tng afss fi tngcr i`tngr. \ngstr`ce fe Hrs. Agvceg–s smngluag `s `sceoag p`rget n`s `iigmtgl ngr `bcacty tf

 wfrk ̀ s ` skce m`rg spgmc`acst.\fyft` lga`ygl gxtgelceo ` i`mtfry

rgm`aa tf tng Wectgl ]t`tgs ce 2443“

ifmusgl fe o`s pgl`as `el iaffr h`ts“tn`t `arg`ly w`s t`kceo pa`mg ce Gurfpg.Hrs. Agvceg s`cl ngr nusb`el n`l tng

trumk sgrvcmgl `t Icela`y \fyft` `bfut `hfetn bgifrg ncs lg`tn. \ng a`wsuct`aagogs tng lg`agrsncp w`s `w`rg fi tng

pfsscbag rcsk `el tng rgm`aa ce Gurfpg, `elcespgmtgl tng iaffr h`t `el o`s pgl`a,but h`lg ef hgetcfe fi tng prfbagh tf

Hr. Agvceg. \ng rgm`aa rg`mngl tngW.]. @bfut ` hfetn `itgr tncs lg`tn `el

acstgl 2447-2404 \fyft` \`mfh`s. \fyft`Trgsclget @kcf \fyfl` `pfafoczgl tf Mfe-

orgss ce Igbru`ry ifr tng lgigmts, wncmnn`vg bgge tcgl tf => a`wsucts `o`cest tngmfhp`ey.

]furmg: A`s Ygo`s ]ue 

H @E  J @CAGL  F YGR  \ FSF\@ M R@]N  C ]  I RGGL 

Kfu` Ifeo Agg, tng =2-yg`r-fal Hceeg-sft` h`e wnf w`s j`cagl `itgr tng \fyft`

ng w`s lrcvceo w`s cevfavgl ce ` i`t`amr`sn, n`s bgge rgag`sgl irfh prcsfe. Ngn`s sgrvgl fvgr twf yg`rs fe ncs sge-

tgemg. \ng julog wnf prgsclgl fvgr tngh`e–s mrchce`a trc`a ruagl tn`t tng m`sg

snfual ogt ` rgtrc`a `itgr egw gvclgemgm`hg tf acont. \ng mfuety prfsgmutfr n`sscemg s`cl tn`t Ifeo Agg wcaa eft i`mg `ey

iurtngr mn`rogs. \ng `mmclget fmmurrgl ce2449 wnge tng m`r Agg w`s lrcvceo nct ` vgncmag `s ng ag i t tng ] t . T` ua

irggw`y. \nrgg pgfpag ce tng m`r lcgl. Hr.Agg `aw`ys cescstgl tn`t ng trcgl tf br`kg,but ncs m`sg lcle–t ogt rgvcgwgl uetca ct

8/9/2019 The Jere Beasley Report, Sep. 2010

12/40

bgm`hg pubacm kefwaglog tn`t \fyft` w`s i`mceo `mmgagr`tcfe prfbaghs wctn `euhbgr fi cts a`tgr hflgas.

Hr. Agg w`s mn`rogl `el mfevcmtgl fimrchce`a vgncmua`r nfhcmclg `el rgmgcvgl`e gcont-yg`r sgetgemg. \ng i`hcay fi tng

tnrgg pgfpag kcaagl ce tng `mmclget m`hgfut ce i`vfr fi Agg–s giifrts tf bg or`etgl` egw trc`a. \fyft`–s s`igty prfbaghs fbvc-

fusay pa`ygl ` h`jfr rfag ce Hr. Agg bgceorgag`sgl irfh prcsfe. _nge yfu mfesclgrnfw tng `mmclget fmmurrgl, ct–s mag`r tn`t

tng \fyft` vgncmag n`l sfhg typg fiprfbagh. Hr. Agg–s a`wygr, Brget ]mn`igr,n`l tncs tf s`y:

\ncs egvgr sgghgl rcont. @ h`e

wctn ncs i`hcay ce tng m`r“ncs prgo- 

e`et wcig“ofgs fe ` sucmclg

hcsscfe6 \nge, tng rgm`aas st`rtgl,

`el tng mfhpa`cets sfuelgl just

ackg wn`t n`ppgegl tf Hr. Agg. Ct

 sfuels just ackg ` m`sg fi uece- 

tgelgl `mmgagr`tcfe.

Ct–s vgry s`l tn`t `e ceefmget h`e w`seft feay mn`rogl wctn vgncmua`r nfhc-

mclg, but tn`t ng sgrvgl tchg ce prcsfe.Ifr yg`rs, \fyft` n`s summgssiuaay ba`hgl vcmtchs ifr m`usceo sullge `mmgagr`tcfes

tn`t rgsuatgl ce mr`sngs. \ncs cs feggx`hpag `el ct mfst ` h`e twf yg`rs fincs acig.

]furmg: Lcoct`aJfure`a.mfh

^.

TRFLWM\

AC@BCAC\S WTL@\G

] @IG\S  @LHCEC]\R@\CFE  P WG]\CFE]  ] \GGRCEO  T RFBAGH]  C E  2404 K C@ ] FWA

\ng E`tcfe`a Nconw`y \r`iicm ]`igty

 @lhcecstr`tcfe n`s fpgegl `e cevgstco`-tcfe cetf pfsscbag afss fi stggrceo mfetrface tng 2404 Kc` ]fua. \ng `ogemy s`cl tn`t

ct n`s rgmgcvgl feg mfhpa`cet `aagoceomfhpagtg stggrceo afss. \ng mfhpa`cets`cl tng stggrceo sn`it `asf cetgrigrgl

 wctn tng lrcvgr–s `bcacty tf nct tng br`kgs.EN\]@ s`ys ct cs ‑vgry mfemgregl–– `bfuttng cemclget bgm`usg tng vgncmag w`s

feay twf hfetns fal `el n`l afwhcag`og. \ng prgachce`ry cevgstco`tcfemfvgrs hfrg tn`e 74,444 vgncmags. _g

 wcaa hfectfr tncs sctu`tcfe mafsgay.

]furmg: @ssfmc`tgl Trgss

_ CLF_  F I  N CON_@S  T @\RFA \ RFFTGR  ] WG]  I FRL  H F\FR  M F .

\ng wclfw fi ` Iafrcl` Nconw`y T`trfa

trffpgr wnf lcgl ce ` icgry mr`sn fe `Iafrcl` \urepckg n`s icagl ` wrfeoiualg`tn a`wsuct `o`cest Ifrl Hftfr Mf. @el

ftngrs. \ng fiicmgr, T`trcmk @hbrfcsg, =7,lcgl wnge ncs p`rkgl Ifrl Mrfwe Ycmtf-rc` mrucsgr w`s rg`r-gelgl `el burst cetf

ia`hgs fe H`y 07tn . @mmfrlceo tf tng

a`wsuct, Ifrl egoacogetay sgaas pffray-lgscoegl vgncmags wctn chprfpgraypa`mgl o`s t`eks tn`t `rg prfeg tf

rupturg `el gxpaflg ce rg`r-gel mfaac-scfes. \ng wclfw `el ngr twf yfueo

l`uontgrs `rg sggkceo uespgmcicgll`h`ogs ce tng a`wsuct.

 @ euhbgr fi a`w geifrmghget fiicmgrs

n`vg bgge kcaagl ce tngsg Ifrl vgnc-mags. \ncs w`s ` tr`ogly, h`lg `aa tng

 wfrsg bgm`usg ct w`s prgvget`bag. @asf

e`hgl ce tng suct `rg tng lrcvgr `elfwegr fi tng Agxus tn`t, `mmfrlceo tf tnga`wsuct, vggrgl fetf tng snfualgr `el

sa`hhgl iuaa spggl cetf tng b`mk fi tngtrffpgr–s p`rkgl mrucsgr. \ng a`wsuct w`sicagl a`st hfetn ce Hc`hc-L`lg Mcrmuct

Mfurt.

]furmg: Hc`hc Ngr`al 

H FRG  G ]M@A@\FR  C EJWRCG]  \ F  M NCALRGE  

Gvgry l`y ce rgt`ca stfrgs, h`aas, `crpfrts`el v`m`tcfe spfts `mrfss @hgrcm`, mnca-

lrge `rg gxpfsgl tf ueegmgss`ry l`eogrs wncag rclceo lgigmtcvgay lgscoegl `elpffray h`cet`cegl gsm`a`tfrs. Fur icrh cs

murrgetay cevgstco`tceo ` m`sg tn`tcevfavgs ` ifur-yg`r-fal mncal wnf sui-igrgl sgrcfus n`el cejurcgs fe `e gsm`a`-

tfr wncag fe v`m`tcfe ce _`snceotfe,L.M. \ng vcmtch w`s fe ` v`m`tcfe trcp wctn ngr i`hcay `el tngy wgrg usceo `e

gsm`a`tfr tf gxct ` Hgtrf ]t`tcfe `s tngybgo`e tngcr l`y scontsggceo. @atnfuon

ngr hftngr w`s nfalceo ngr n`el, `s tngy

bgo`e tf rclg up tng gsm`a`tfr tng mncal`pp`rgetay stuhbagl `el cestcemtcvgay put

ngr n`el lfwe tf stg`ly ngrsgai. Weifr-tue`tgay, tng lgigmtcvg gsm`a`tfr m`uontngr n`el `el tr`ppgl ct, rgsuatceo ce

sgvgrg a`mgr`tcfes. \ncs mncal `el ngri`hcay n`vg suiigrgl org`tay `s ` rgsuat fitncs cemclget `el wcaa mfetceug tf lf sf

`s sng `ljusts `el uelgrofgs iuturghglcm`a prfmglurgs.

Weifrtue`tgay, bgm`usg fur icrh n`s

n`elagl h`ey fi tngsg m`sgs bgifrg, fur

a`wygrs `rg `w`rg tn`t tncs w`s eft `ecsfa`tgl cemclget. Gxpgrts ce tng gsm`a`tfr`el gagv`tfr buscegss n`vg tgstcicgl tn`t

tngrg `rg `pprfxch`tgay >,444 sgrcfusgsm`a`tfr-rga`tgl cejurcgs rgpfrtgl g`mn yg`r. Cemrglcbay, tngy `asf st`tg tn`t 0> tf

24 lg`tns `rg m`usgl g`mn yg`r by lgigm-tcvg gsm`a`tfrs. Fur rgsg`rmn `el gxpgrc-gemg n`s snfwe tn`t gsm` a` tfr

h`eui`mturgrs `rg `w`rg fi tng l`eogrsbut ce h`ey m`sgs n`vg t`kge ef `mtcfetf h`kg tngcr prflumts s`igr.

Ce i`mt, sgvgr`a h`eui`mturgrs n`vg n`ltf p`y scoecicm`et jury vgrlcmts bgm`usg ficejurcgs tn`t mfual n`vg bgge prgvgetgl.

 @h`zceoay, `mmfrlceo tf ` _`snceotfe Gx`hcegr  egws `rtcmag rgpfrtceo fe fur

macget–s cemclget, _`snceotfe Hgtrf gxpg-rcgemgs `e `vgr`og fi 04.> cejurcgs fe ctsgsm`a`tfrs g`mn hfetn.

 @a tn fuon `lua ts `rg fmm` scfe`a aycejurgl, tng fvgrwngahceo h`jfrcty fi

gsm`a`tfr cejurcgs `rg ceiacmtgl upfe mnca-lrge. T`rgets snfual egvgr `aafw uesu-pgrvcsgl mncalrge tf rclg fe fr pa`y`rfuel `e gsm`a`tfr, but tncs tr`ocm cemc-

lget uelgrsmfrgs tng i`mt tn`t gvge mafsgp`rget`a supgrvcscfe m`eeft prgvget `ecejury m`usgl by sumn ` l`eogrfus

lgvcmg. Ci yfu w`et `llctcfe`a ceifrh`-tcfe, mfet`mt Hckg @elrgws, ` a`wygr cefur Tgrsfe`a Cejury ]gmtcfe, `t >44->3>-

24=< fr by gh`ca `t Hcmn`ga.@elrgwsDbg`sagy`aage.mfh.

^C.

H@]] \FR\]

WTL@\G

Y CF^^  ] G\\AGHGE\  T RFOR@H  _ R@T]  W T 

A`st hfetn `t tng hfetnay HLA st`tusmfeigrgemg, tng mfemauscfe fi tng Ycfxx]gttaghget Trfor`h w`s `eefuemgl.

 Julog I`aafe nconacontgl tng giicmcgemy

`el tchgacegss fi tncs rgh`rk`bag `mncgvg-hget. \ng gefrhcty fi tng `mncgvghget

cs rgvg`agl ce tng euhbgrs. \ng sgttag-hget prfor`h w`s `v`ca`bag tf 7>,422pftgetc`aay gacocbag Ma`ch`ets, fi wncmn

33.3% mnfsg tf p`rtcmcp`tg ce tng vfaue-t`ry sgttaghget prfor`h. Ifr gacocbagMa`ch`ets, prffi fi Ycfxx us`og rgmfrls

`el hglcm`a rgmfrls wgrg subhcttgl `s `ma`chs p`mk`og `el celcvclu`aay gv`au`tgl

`mmfrlceo tf fbjgmtcvg mrctgrc`, sumn `s:

02  www.Bg`sagy@aage.mfh 

8/9/2019 The Jere Beasley Report, Sep. 2010

13/40

`og `t tng tchg fi tng ng`rt `tt`mk, strfkgfr sullge m`rlc`m lg`tn; ageotn fi st`y cetng nfspct`a; typg fi prfmglurg (g.o.,

stget, byp`ss surogry); `el rcsk i`mtfrs.Ma`chs p`mk`og h`tgrc`a w`s rgmgcvglgagmtrfecm`aay fr by n`rl mfpy. Ce tng

ma`chs prfmgss, 73>,>=4 rgmfrls wgrgrgmgcvgl ifr gv`au`tcfe.

\f gesurg mfrrgmtegss `el i`cregss,

sgvgr`a a`ygrs fi rgvcgw wgrg bucat cetftng sgttaghget prfmgss. Cectc`aay ma`chs wgrg rgvcgwgl by Brfwe Orggr, tng

mfurt-`ppfcetgl Ma`chs @lhcecstr`-tfr. \nge, `eftngr a`ygr fi rgvcgw w`sprfvclgl by tng O`tgs Mfhhcttgg, wncmn

 w`s mfhprcsgl fi Ta`cetcii rgprgsget`-tcvgs `el Hgrmk rgprgsget`tcvgs. Ice`aay, `

tncrl a`ygr fi rgvcgw by ` mfurt-`ppfcetgl]pgmc`a H`stgr w`s `v`ca`bag, `t ` Ma`ch-`et–s rgqugst. @itgr `aa ma`chs wgrg gv`au-

`tgl tf gesurg tn`t `aa agoctch`tg ma`chs wgrg p`cl, ==,4?7 Ma`ch`ets rgmgcvgl

mfhpges`tcfe ifr ̀ Ycfxx-rga`tgl cejury.\ng sgttaghget `orgghget w`s scoegl`el `eefuemgl fe Efvghbgr 3, 244?. Ceagss tn`e feg yg`r, cectc`a p`yhgets bgo`e.

Ce agss tn`e twf yg`rs, `aa p`yhgets irfhtng $< bcaacfe ng`rt `tt`mk iuel wgrgh`lg. @pprfxch`tgay twf `el feg-n`ai

 yg`rs irfh tng `eefuemghget fi tng sgt-taghget, `aa p`yhgets wgrg mfhpagtglcemaulceo ng`rt `tt`mk ma`chs, strfkg

ma`chs `el gxtr`frlce`ry cejury ma`chs. Cesuh, tng $7 bcaacfe sgttaghgetprfor`h prfvclgl p`yhgets tf fvgr

==,444 Ma`ch`ets ce agss tn`e tnrgg yg`rs!H`ey humn sh`aagr sgttaghget prf-

or`hs n`vg t`kge `s humn `s tnrgg tchgs

afeogr tf ogt vcmtchs– ma`chs p`cl. \nggiicmcgemy `el i`cregss fi tncs actco`tcfe

`el sgttaghget prfor`h snfual sgrvg `s `hflga ifr iuturg h`ss tfrts m`sgs. _ncag ctcs tr`ocm tf `etcmcp`tg iuturg m`sgs wngrg

tnfus`els fi vcmtchs wcaa suiigr cejury frlg`tn `s rgsuat fi ` l`eogrfus lruo,hglcm`a lgvcmg fr ftngr prflumt, tncs cs

tng ueifrtue`tg rg`acty tn`t wg i`mg. Wetcact cs ef afeogr prfict`bag ifr mfhp`ecgs tf

coefrg fr lfwepa`y s`igty scoe`as, wg wcaamfetceug n`vg tr`ocm m`sgs sumn `s Ycfxx.Fur icrh wcaa mfetceug tf icont ifr vcmtchs, sggk tf nfal mfhp`ecgs `mmfuet-

`bag, `el fbt`ce rg`sfe`bag mfhpges`-tcfe ifr cejurcgs.

T @^CA A@_]WC\]  ] G\\AGL  B S  O A@^F 

Oa`xf]hctnKaceg T.A.M. n`s `orggl tf

p`y $0 bcaacfe tf sgttag hfrg tn`e >44

m`sgs cevfavceo tng `etclgprgss`etT`xca. \ng mfhp`ey n`l prgvcfusay sgt`sclg $2.< bcaacfe tf sgttag pgelceo `el

gxpgmtgl a`wsucts fvgr cts lruos T`xca `el @v`elc`. \ng sgttaghgets ag`vg hfrg tn`e044 m`sgs pgelceo fe ma`chs tn`t tng

`etclgprgss`et T`xca m`usgl bcrtn lgigmtsce sfhg usgrs– mncalrge. Nuelrgls fi tngT`xca m`sgs wgrg icagl ce Tnca`lgapnc`.

Oa`xf]hctnKaceg, b`sgl ce tng WectglKceolfh, n`s h`jfr fpgr`tcfes ce tngWectgl ]t`tgs. @v`elc` cs, fi mfursg, ` lc`-

bgtgs lruo tn`t n`s i`mgl cetgesg smrutcey`t tng IL@.

\ngrg `rg stcaa `bfut 044 T`xca bcrtn

lgigmt m`sgs stcaa pgelceo ce tng W.].mfurts. \ng sgttaghgets n`vg `vgr`ogl ce

gxmgss fi $0.2 hcaacfe ifr g`mn i`hcaytn`t brfuont ` a`wsuct `o`cest tng h`eu-i`mturgr ifr `aagogl ng`rt lgigmts `el

ftngr sclg giigmts suiigrgl by tngcr mnca-lrge. Ce Fmtfbgr, ` jury ce Tnca`lgapnc`

frlgrgl tng lruo h`eui`mturgr tf p`y$2.7 hcaacfe tf sgttag ` ma`ch tn`t T`xcam`usgl sgvgrg ng`rt lgigmts ce ` tnrgg- yg`r-fal bfy.

]furmgs: Tncaay.mfh `el A`wygrs`el]gttaghgets.mfh

I FRHGR  T RGHTRF  ] MCGE\C]\  _ FRKCEO  F E  @ ] @IGR  @A\GRE@\CYG 

Bcfefvf, Cem. n`s `eefuemgl tng`ppfcethget fi Lr. J`hgs Tcmk`r tf tng

mfhp`ey–s hglcm`a `lvcsfry bf`rl. Wetca

Ticzgr–s rgmget t`kgfvgr fi _ygtn, Lr.Tcmk`r w`s _ygtn–s ng`l fi Trghprf

smcgemg `el rgsg`rmn. Lr. Tcmk`r s`ys ng csgxmctgl tf jfce Bcfefvf wngrg ng wcaa bg wfrkceo fe Hgegrb`, ` lruo ma`chgl tf

bg ` s`igr `atgre`tcvg tf Trghprf wncmnn`s bgge acekgl tf brg`st m`emgr.

 _nge C a`st wrftg fe tng subjgmt fi

Nfrhfeg \ngr`py, fur icrh w`s prgp`r-ceo tf try tng m`sg fi T`uaceg Agsmceskc

v. _ygtn, `afeo wctn twf ftngr m`sgs“

 Buxtfe `el  Ngery“wnf wgrg rgprg-sgetgl by ftngr a`w icrhs. C `h pag`sgl

tf rgpfrt tng p`rtcgs rg`mngl ` rgsfau-tcfe fi tng Agsmceskc m`sg. Weifrtue`tgayifr Hs. Buxtfe `el Hs. Ngery, tngcr m`sgs wget tf trc`a `el gelgl ce ` Lgigesg

 vgrlcmt fe tng qugstcfe fi wngtngrTrghprf m`usgl tngcr brg`st m`emgrs.

\ncs cs quctg surprcsceo `s wg ng`r tn`ttngcr `ttfregys lcl ` vgry offl jfb fiputtceo fe tngcr m`sgs `el gvge gacmctgl

tgstchfey irfh efeg ftngr tn`e Lr.Tcmk`r wnf `lhcttgl, uelgr f`tn, tn`t

Trghprf prfhftgs brg`st m`emgr by

h`kceo ct ‑bcoogr‘ `el ‑wfrsg.‘ \ngBuxtfe `el Ngery `ttfregys n`vg s`cltng vgrlcmt w`s `o`cest tng wgcont fi tng

gvclgemg `el tngy wcaa bg sggkceo `egw trc`a.

]f i`r, jurcgs n`vg ifuel ce i`vfr fiTa`cetciis ce 00 fi 09 Nfrhfeg \ngr`pytrc`as wctn mfhpges`tfry `w`rls `vgr`o-

ceo `bfut $7 hcaacfe. \ncs cs eft surprcs-ceo ocvge tng sgrcfusegss fi tng cejurcgsce tngsg m`sgs. @asf, puectcvg `w`rls `rg

`vgr`oceo `rfuel $=4 hcaacfe. @o`ce, tncstff cs eft surprcsceo, ocvge gvclgemgsnfwceo _ygtn–s m`aafus celciigrgemg tf

tng s`igty `el wgai`rg fi wfhge.Tnca`lgapnc` Julog ]`elr` Hfss n`s

rgmgetay frlgrgl tn`t, st`rtceo ce Lgmgh-

bgr, `t ag`st feg mfesfacl`tgl trc`a wcaamfhhgemg g`mn hfetn. Fur icrh rgprg-sgets tng ifur wfhge wnf wcaa n`vg

tngcr m`sgs ng`rl ce Lgmghbgr 2404. _g

affk ifrw`rl tf tng fppfrtuecty fi prg-sgetceo tngcr m`sgs tf jurfrs. Ci yfu eggl

`llctcfe`a ceifrh`tcfe fe tncs subjgmt,mfet`mt \gl Hg`lfws, ` a`wygr ce fur

icrh–s H`ss \frts ]gmtcfe, `t 0->44->3>-24=< fr \gl.Hg`lfwsDbg`sagy`aage.mfh. \gl cs fur icrh–s ag`l a`wygr ce tng

N\ Actco`tcfe.

AGYG\CR@MG\WH “O GEGRCM  K GTTR@ AC\CO@\CFE 

 _g mfetceug tf rgmgcvg rgpfrts irfhifaks wnf n`vg suiigrgl brg`ktnrfuonsgczurgs `itgr bgceo swctmngl irfh tnge`hg br`el `etcgpcagptcm lruo Kgppr` tf

ogegrcm agvgtcr`mgtuh. Bgm`usg hfstng`atn pa`es gemfur`og tng usg fi ogegrcm

lruos fvgr ncongr mfst e`hg br`el lruos,`el hfst st`tgs `aafw pn`rh`mcgs tf sub-stctutg ogegrcm lruos ifr e`hg br`el

lruos ci tng ogegrcm cs mfesclgrgl gqucv`-aget, h`ey p`tcgets wnfsg sgczurgs `rg wgaa-mfetrfa agl fe Kgppr` `rg bgceo

swctmngl tf ogegrcm agvgtcr`mgtuh

ue`w`rg fi tng mfesclgr`bag rcsks fibrg`ktnrfuon sgczurgs. Ifr tnfsg celcvcl-

u`as wnf n`vg bgge sgczurg irgg feKgppr`, tng rgsuats m`e bg lgv`st`tceo“afst jfbs `el rgvfkgl lrcvgrs– acmgesgs.

Celcvclu`as ce rghcsscfe ifr afeo pgrcfls`rg gspgmc`aay `t rcsk `s tngy `rg hfrgackgay tf bg geo`ogl ce pftgetc`aay l`eogr-

fus `mtcvctcgs sumn `s lrcvceo ` m`r frfpgr`tceo h`mncegry. Lg`tns rgsuatceoirfh brg`ktnrfuon sgczurgs n`vg `arg`ly

bgge rgpfrtgl.

   www.JgrgBg`sagyRgpfrt.mfh 0=

8/9/2019 The Jere Beasley Report, Sep. 2010

14/40

Ce mfetr`st tf IL@ rgoua`tcfes ifr egwlruo `ppacm`tcfes (EL@s), wncmn rgqucrgsubhcsscfe fi macecm`a trc`as `el ` lgsmrcp-

tcfe `el `e`ayscs fi `ey ftngr l`t` frceifrh`tcfe rgagv`et tf `e gv`au`tcfe fitng s`igty `el giigmtcvgegss fi tng lruo,

tng rgoua`tcfes ifr `bbrgvc`tgl egw lruo`ppacm`tcfes (@EL@s), tng prfmgssrgqucrgl ifr ogegrcm gqucv`agets, feay

rgqucrg tn`t tng subhcsscfe cemaulg ceifr-h`tcfe tn`t snfws tn`t tng ogegrcm cs bcf-gqucv`aget tf tng e`hg br`el lruo.

Nfwgvgr, ogegrcm lruos `rg pn`rh`mgutc-m`a gqucv`agets feay wctn rgspgmt tf tngcr`mtcvg ceorglcgets, `el murrget rgoua`-

tcfes `aafw ifr up tf ` 24% v`rc`tcfe cetng bcf`v`ca`bcacty fi tng lruo femg

ceogstgl. \ng bcelgrs, lcaugets, `el icaagrsce tng ifrhua`tcfe fi tng lruo, `s wgaa `stng hgtnfl fi h`eui`mturg, v`ry irfh

e`hg br`el tf ogegrcm tf ogegrcm.Euhgrfus hglcm`a stulcgs n`vg

rgpfrtgl tng lcrg mfesgqugemgs fiswctmnceo gpcagpsy p`tcgets irfh e`hgbr`el lruos tf ogegrcms. \ng @hgrcm`eGpcagpsy ]fmcgty cssugl ` Tfsctcfe ]t`tg-

hget ce 244? fppfsceo tng substctutcfefi `etcgpcagptcm lruos wctnfut p`tcget`el pnyscmc`e `pprfv`a. Weifrtue`tgay,

tng ogegrcm h`eui`mturgrs fi agvgtcr`mg-tuh `rg eft w`receo p`tcgets tn`t tngcrprflumts `rg eft clgetcm`a tf tng e`hg

br`el Kgppr`, ̀ el tng lcrg mfesgqugemgssgge ce tng p`st wctn swctmnceo gpcagptcmp`tcgets irfh e`hg br`el tf ogegrcm `rg

efw bgceo sgge wctn Kgppr`, tng hfstrgmget lruo tf n`vg ofeg fii p`tget. Furicrh cs gv`au`tceo m`sgs cevfavceo cejurcgs

rgsuatceo irfh bgceo swctmngl irfhKgppr` tf ogegrcm agvgtcr`mgtuh. Tag`sg

mfet`mt Rfogr ]hctn, ` a`wygr ce fur H`ss\frts ]gmtcfe, ̀ t >44->3>-24=< fr by gh`ca`t Rfogr.]hctnDbg`sagy`aage.mfh ci yfu

n`vg ̀ ey qugstcfes.

@]\R@Z GEGM@ ] G\\AG]  ] GRFPWGA ] WC\]  I FR  $03> H CAACFE 

Tn`rh`mgutcm`a mfhp`ey @str`Zgegm` wcaa p`y `bfut $03> hcaacfe tf sgttag fvgr

0?,444 a`wsucts icagl by celcvclu`as wnflgvgafpgl lc`bgtgs `itgr t`kceo tng `typc-m`a `etcpsymnftcm lruo ]grfquga. @s yfu

h`y kefw, ]grfquga cs usgl tf trg`tsmnczfpnrgec` `el bcpfa`r lcsfrlgrs. \ngsgttaghgets `rg tng rgsuat fi mfurt-

frlgrgl hglc`tcfe. Ce H`rmn, @str`Zgegm` wfe tng icrst trc`a fvgr ]grfquga wnge `Egw Jgrsgy mfurt ngal tn`t tng mfhp`ey

prfpgray w`regl ` vgtgr`e–s lfmtfrs`bfut tng lruo–s lc`bgtgs rcsk. @str`Zge-

gm` n`l prgvcfusay p`cl $724 hcaacfe tftng iglgr`a ofvgrehget ce @prca `el n`sp`cl fvgr $74 hcaacfe tf sgttag `ahfst

9,444 mcvca m`sgs.

]furmg: A`wygrs W]@ Feaceg

IL@ _ @RE]  F I  B R@CE  T RFBAGH  _ C\N  O A@^F  ] GCZWRG  L RWO 

Iglgr`a ng`atn rgoua`tfrs `rg w`receolfmtfrs `el p`tcgets tn`t A`hcmt`a, `e`etc-sgczurg lruo irfh Oa`xf]hctnKaceg

TAM, m`e m`usg r`rg ceia`hh`tcfe fi tngbr`ce `el spce`a mfrl. \ng Iffl `el Lruo @lhcecstr`tcfe s`cl fe @uoust 02tn  tn`t ctcs wfrkceo wctn tng Brctcsn lruoh`kgr

Oa`xf tf `ll egw w`receos `el a`bgaceoceifrh`tcfe tf tng lruo.

\ng IL@ s`cl ct n`s rgmgcvgl rgpfrts fi

Fmg`e ]pr`y icagl ` p`tget ceirceog-hget suct `o`cest Lgm`s. Lgm`s rgspfelglby mfuetgrsuceo. \nfsg `mtcfes `rg

pgelceo. Lgm`s lgecgs tn`t ct n`s lfeg`eytnceo wrfeo `el s`ys tn`t Fmg`e

0<  www.Bg`sagy@aage.mfh 

8/9/2019 The Jere Beasley Report, Sep. 2010

15/40

]pr`y cs schpay tryceo tf ogt rcl fi mfhpg-tctcfe.

]furmg: A`w.mfh

^CCC.

@E WTL@\G FE

]GMWRC\CG]

AC\CO@\CFE

M FWE\RS_CLG  ] G\\AG]  ] N@RGNFALGR  A@_]WC\]  I FR  $944 H CAACFE  

Mfuetrywclg Ice`emc`a Mfrp. n`s

`orggl tf p`y $944 hcaacfe ce tng a`rogstsgttaghget sf i`r fi sn`rgnfalgr a`wsucts`rcsceo fut fi tng hfrto`og hgat-

lfwe. \ng `orgghget, ocvge prgachce`ry`pprfv`a fe @uoust 2el by ` iglgr`a julogce Afs @eogags, wfual gel sgvgr`a ma`ss

`mtcfes brfuont fe bgn`ai fi cevgstfrs ceMfuetrywclg stfmk. Mfuetrywclg, femgtng e`tcfe–s a`rogst hfrto`og agelgr,

fiigrgl ` iuaa r`eog fi af`es tf mustfhgrs wnfsg mrglct v`rcgl irfh tfp iacont tfsubprchg. Ct w`s eg`r i`caurg wnge B`ek

fi @hgrcm` Mfrp. @mqucrgl ct ce 244>.Mfuetrywclg n`l ir`uluagetay mfemg`aglcts hfuetceo rcsks `s ct `el ftngr agelgrs

ghbr`mgl gvgr-affsgr st`el`rls lurceotng nfusceo bffh.

Mfuetrywclg–s futsclg `mmfuetceo

icrh, KTHO, wncmn scoegl fii fe tngagelgr–s ice`emc`a st`tghgets `t tng ngcontfi tng bffh ce 2447 `el 2449, n`s `asf

`orggl tf p`y `e `llctcfe`a $2< hcaacfeuelgr tng sgttaghget. \ng sgttaghget`mtu`aay bgegicts ` euhbgr fi ifrhgr

Mfuetrywclg gxgmutcvgs `el lcrgmtfrs wnf wgrg `asf e`hgl `s Lgigel`ets cetng actco`tcfe `el wnf wfe–t n`vg tf ngap

iuel tng p`yhgets tf sn`rgnfalgrs. \ngsgttaghget `asf wfual mag`r tng ac`bcacty

fi ` acst fi ice`emc`a icrhs tn`t uelgrwrftgtng Mfuetrywclg stfmk fiigrceos `el wgrg e`hgl s̀ Lgigel`ets.

\ng sgttaghget w`s tng rgsuat fi afeohglc`tcfe by hy offl ircgel Grcm Orgge,` Bfstfe Wecvgrscty a`w prfigssfr, `el @.

Nfw`rl H`tz, ` iglgr`a lcstrcmt julog ceAfs @eogags. \ncs cs tng a`rogst sgttaghgetfi `ey sn`rgnfalgr m`sg tf mfhg fut fi

tng subprchg mrcscs tncs i`r.Ct snfual bg eftgl tn`t tng sgttaghget

lfgse–t mfvgr cevgsthgets ce hfrto`og-

b`mkgl sgmurctcgs sfal by Mfuetry- wclg. \ng mfhp`ey `asf cs stcaa lgigelceo

sgvgr`a ftngr a`wsucts `el cevgstco`tcfes,cemaulceo ` ]gmurctcgs `el Gxmn`eog

Mfhhcsscfe mcvca a`wsuct `mmusceo Mfue-trywclg fiicmgrs fi hcsag`lceo cevgstfrs.Mfuetrywclg `el @eogags Hfzcaf, afeo-

tchg MGF, `asf `rg uelgr mrchce`a cevgstc-o`tcfe by tng Justcmg Lgp`rthget `el `rgt`rogts fi a`wsucts brfuont fe bgn`ai fi

bfrrfwgrs by tng @ttfregys Ogegr`a fi

M`acifrec` `el ftngr st`tgs. C–h eft surgnfw h`ey celcvclu`a cevgstfrs wcaa

bgegict irfh tng pgelceo sgttaghget. Citng mfurt ocvgs ice`a `pprfv`a `t ` ng`rceoce Efvghbgr, p`yhgets snfual of fut

 wctnce scx hfetns tf ` yg`r. Jfga N. Bgre-stgce, ` a`wygr wctn tng icrh fi A`b`tfe]umn`rfw, afm`tgl ce Egw Sfrk Mcty, rgp-

rgsgetgl tng Egw Sfrk st`tg `el mctypgescfe iuels tn`t wgrg tng ag`l Ta`ce-tciis ce tng m`sg. Ng `el ncs icrh lcl `e

futst`elceo jfb ce tncs m`sg.

]furmg: Afs @eogags \chgs 

M C\CORFWT  \ F  T @S  $?7 H CAACFE  \ F  ] G\\AG  ] GM  M N@ROG] 

Mctcorfup, feg fi tng e`tcfe–s a`rogst

b`eks, n`s `orggl tf p`y $?7 hcaacfe tfsgttag ` ]gmurctcgs `el Gxmn`eog Mfhhcs-scfe mfhpa`cet tn`t ct hcsagl cevgstfrs

`bfut $4,444. @s ` h`ttgr fi cetgrgst, prg- vcfus mfhpa`cets `o`cest h`jfr ice`emc`a

icrhs n`l i`cagl tf mn`rog ncon-agvga gxgm-utcvgs. \ncs h`y bg ` scoecicm`et lgvgafp-hget. Ci sf, ct mfual n`vg ` offl giigmt.

\ng lgscoe fi tng Mctcorfup sgttaghgetcs vgry humn ackg tng m`sg brfuont

`o`cest B`ek fi @hgrcm` a`st yg`r. Ct w`ssgttagl g`racgr tncs yg`r ifr $074 hcaacfe.Ce tn`t m`sg, B`ek fi @hgrcm` w`s ̀ mmusglfi mfemg`aceo irfh cevgstfrs lgt`cas fi

hfuetceo afssgs `t Hgrrcaa Ayemn, tngcevgsthget b`ek ct `mqucrgl ce tng i`aa fi244>, `el bcaacfes fi lfaa`rs ce bfeusgs

p`cl tf Hgrrcaa Ayemn ghpafyggs.Ce 244? `el 244>, Mctcorfup sullgeay

rgpfrtgl bcaacfes fi lfaa`rs fi afssgs tcgl

tf cts cevgsthgets ce sub-prchg hfrt-o`og-b`mkgl sgmurctcgs. @mmfrlceo tf tng]GM, Mctcorfup rgspfelgl ce suhhgr `el

i`aa 244? tf rgqugsts by cevgstfrs ifrceifrh`tcfe `bfut cts gxpfsurg tf tng

sub-prchg hfrto`og h`rkgt. \ng ]GMs`cl tn`t Mctcorfup tfal cevgstfrs fe `tag`st ifur fmm`scfes tn`t cts gxpfsurg ce

cts cevgsthget b`ekceo uect w`s $0=bcaacfe fr agss, wnge ct w`s `mtu`aay $74bcaacfe, cemaulceo g`receos m`aas `el pgrc-

flcm ice`emc`a icaceos fvgrsgge by Mrcttge-lge `el \calgsagy.

\ng ]GM s`ys tn`t $0= bcaacfe icourg

fhcttgl tng supgr sgecfr tr`emngs fi ‑mfa-a`tgr`aczgl lgbt fbaco`tcfes‘ `el ‑acqucl-

cty puts,‘ bftn cevgsthgets wnfsg v`augrfsg `el igaa wctn tn`t fi tng nfusceoh`rkgt. \ncs w`s lgspctg tng i`mt tn`tcetgre`a lfmuhgets lgsmrcbceo tng

cevgsthget b`ek–s subprchg gxpfsurggxpacmctay cemaulgl tngsg cevgsthgets.Mctcorfup uatch`tgay lcsmafsgl tn`t tngsg

cevgsthgets wgrg afsceo v`aug ce Efvgh-bgr 244?.

Ct–s `pp`rget tn`t mfhp`ecgs sumn `s

Mctcorfup, Ofalh`e, `el B`ek fi @hgrcm`pa`ygl i`st `el affsg wctn tng ]GM `el

cevgstfrs. Nfpgiuaay, tnfsg l`ys `rg

fvgr“but wg wcaa sgg! Ifr efw, ct wcaa bgcetgrgstceo tf sgg wn`t tng julog lfgs

 wctn Mctcorfup–s prfpfsgl sgttaghget. C wfe–t bg surprc sgl ci ct i` ca s tf bg`pprfvgl.

]furmg: _`snceotfe Tfst

 www.JgrgBg`sagyRgpfrt.mfh 07

8/9/2019 The Jere Beasley Report, Sep. 2010

16/40

^CY.

CE]WR@EMG @EL

ICE@EMG WTL@\G

\ NG  ]GM M FE\CEWG]  \ F  C EYG]\CO@\G  H FRO@E  K GGO@E  

\ng ]gmurctcgs `el Gxmn`eog Mfhhcs-scfe–s Geifrmghget Lcvcscfe n`s a`uemngl` sgmfel prfbg fi Hfro`e Kggo`e rgo`rl-

ceo prfprcgt`ry bfel iuels. \ncs subsg-quget cevgstco`tcfe bgo`e just ` wggk`itgr tng ]GM ce @prca st`rtgl ` ncon-prf-

icag `lhcecstr`tcvg prfmgglceo `o`cestHfro`e Kggo`e–s `ssgt h`e`oghget uect`el twf fi cts sgecfr ghpafyggs, `mmusceo

tngh fi ir`uluagetay fvgrst`tceo tng v`aug fi mgrt`ce hfrto`og-b`mkgl sgmurc-tcgs. Hfro`e Kggo`e, wncmn cs mfetgstceo

tng ]GM–s mn`rogs, mfhpa`cegl tf `e

`lhcecstr`tcvg a`w julog tn`t, `hfeoftngr tnceos, tng ]GM–s m`sg wfual mfe-

tceug tf gvfavg ci tngrg w`s ` suppaghge-t`ry cevgstco`tcfe, ifrmceo tngh ‑tf snfft`t ` hfvceo t`rogt‘ wncag wfrkceo fe tng

]GM–s `arg`ly strcmt tchg achcts.\ng ]GM w`s eft frlgrgl tf stfp cts

sgmfel cevgstco`tcfe cetf Hfro`e Kggo`e.Cestg`l, tng julog frlgrgl tngh tf w`aafii tncs cevgstco`tcfe irfh tng cectc`a m`sg,

prfncbctceo a`wygrs fr st`ii irfh wfrkceofe bftn m`sgs. \ng cectc`a m`sg cs sa`tgl tfogt uelgrw`y ce ]gptghbgr. \ng julog

lcl `aafw tng st`ii tf sn`rg lfmuhgets`el tr`esmrcpts irfh tng sgmfel cevgstc-o`tcfe wctn tng st`ii prgppceo tng cectc`a

m`sg, prfvclgl tn`t tngy or`et Hfro`eKggo`e schuat`egfus `mmgss tf tng s`hgceifrh`tcfe.

Lgspctg tngsg rgstrcmtcfes ct cs lfubtiuatng ]GM wcaa ocvg up cts sgmfel prfbg. Ct`ppg`rs tn`t Hfro`e Kggo`e h`y bg

ifrmgl tf `eswgr twf rfuels fi mn`rogsirfh tng ]GM. \ncs cs offl egws ifrl`h`ogl cevgstfrs wnf `rg lgspgr`tg ifr

rgstctutcfe fi tngcr afst s`vceos. Ci yfu

eggl hfrg ceifrh`tcfe fe tncs subjgmt frfe tng Hfro`e Kggo`e actco`tcfe, mfet`mt]m`ragttg \uagy, ` a`wygr n`elaceo tncs actc-o`tcfe ifr fur icrh, `t >44->3>-24=< fr by

gh`ca `t ]m`ragttg.\uagyDbg`sagy`aage.mfh.

H G\ ACIG  @EL  T RWLGE\C@A I @MG  T RFBG  F YGR  ] FALCGR] – L G@\N  B GEGIC\] 

Ce ` hfst scoecicm`et n`ppgeceo

rgmgetay, Egw Sfrk–s @ttfregy Ogegr`asubpfge`gl HgtAcig Cem. @el Trulgetc`aIce`emc`a Cem. @s p`rt fi ` prfbg cetf

 wngtngr acig cesurgrs `rg lgir`ulceo i`hc-acgs fi lgmg`sgl hcact`ry pgrsfeega. \ngcevgstco`tcfe cs affkceo cetf tng mfhp`-

ecgs– scpnfeceo fii hcaacfes fi lfaa`rs filg`tn bgegicts ifr tnghsgavgs. @ttfregyOgegr`a @elrgw Mufhf, n`l tncs tf s`y

ce ` st`tghget:

 Ct cs snfmkceo `el pa`ce wrfeo ifr

tngsg huatce`tcfe`a acig cesur`emg

mfhp`ecgs tf pfmkgt nuelrgls fi

hcaacfes ce prficts tn`t rg`aay

bgafeo tf tnfsg wnf n`vg afst

 i`hcay hghbgrs `el n`vg `arg`ly

 suiigrgl chhgesgay.

\ngsg subpfge`s fi tng a`rogst W.]. acigcesurgrs m`hg feg l`y `itgr tng W.].Lgp`rthget fi Ygtgr`es @ii`crs s`cl ce `

pubacsngl rgpfrt tn`t ct n`l bgoue ctsfwe cevgstco`tcfe cetf tng cssug. Trulge-tc`a n`s mfeicrhgl tn`t ct cs ce t`aks wctn

tng Lgp`rthget. @t cssug cs wngtngr tngcesurgrs, r`tngr tn`e p`yceo fut auhp

suhs tf hcact`ry i`hcacgs upfe tng lg`tnsfi pfacmynfalgrs, cestg`l wfual kggphfegy ce pftgetc`aay rcsky `mmfuets tngy

mfetrfaagl, kefwe `s ‑rgt`cegl-`ssgt`mmfuets.‘ Afw ycgals fe tngsg `mmfuets

 wfual bg p`cl tf survcvceo i`hcacgs. \n`tmgrt`ceay sgghs ackg ` b`l pr`mtcmg `elfeg tn`t b`lay nurts tng cetgelgl bgegic-mc`rcgs but bgegicts tng mfhp`ecgs.

\ng cesurgrs rgpfrtglay g`regl upw`rlfi % `eeu`aay fe tngsg `mmfuets, butp`cl i`hcacgs cetgrgst `s afw `s 4.7%. \n`t

 wfual bg agss tn`e tng r`tgs tng i`hcacgsmfual n`vg rgmgcvgl irfh tngcr afm`ab`eks. \f h`kg h`ttgrs wfrsg, tng cesur-

grs– `mmfuets `rg eft ou`r`etggl by tngIglgr`a Lgpfsct Cesur`emg Mfrp.

\ng subpfge`s sggk l`t` fe nfw `el

 wnge bgegicmc r̀cgs ag`re `bfut tng tgrhs`el mfelctcfes fi rgt` cegl-`ssgt

`mmfuets. @asf sfuont cs l`t` fe tng lciigr-gemgs bgtwgge cetgrgst g`regl by cesur-grs `el bgegicmc`rcgs. Ce ` st`tghget

cssugl tf tng hglc`, tng @hgrcm`e Mfuemcafi Acig Cesurgrs, ` tr`lg orfup, s`clrgt`cegl-`ssgt ̀ mmfuets ‑ngap orcgvceo hca-

ct`ry i`hcacgs.‘ B`sgl fe wn`t fur icrh n`sag`regl, C sgrcfusay lfubt tn`t `ey i`hcay

 w`s ngapgl by wn`t tng cesur`emg mfh-

p`ecgs lcl.

]furmg: Rgutgrs

M A@]]  @M\CFE  A@_]WC\  F YGR  

8/9/2019 The Jere Beasley Report, Sep. 2010

17/40

_ GAA]  I @ROF  I CEGL  $244 HCAACFE 

Ce tng a`tgst fi b`l `el ghb`rr`ssceoegws ifr tng bco b`eks, _gaas I`rof & Mf.n`s bgge frlgrgl tf p`y hfrg tn`e $244

hcaacfe ifr h`ecpua`tceo `el huatcpayceofvgrlr`it iggs. W.]. Lcstrcmt Mfurt Julog _caac`h @asup, scttceo ce Efrtngre M`acifr-

ec`, ifuel tn`t _gaas I`rof usgl ‑` bffk-kggpceo lgvcmg‘ tn`t turegl feg cest`emg

fi fvgrlr`wceo `e `mmfuet cetf `s h`ey`s tge, `aafwceo tng b`ek tf huatcpay tngeuhbgr fi iggs ct mfual mfaagmt irfh `

sceoag hcst`kg. Julog @asup ng`rl tng m`sg wctnfut ` jury. \ngrg n`vg bgge sgvgr`aiglgr`a lgmcscfes tn`t n`vg put fvgr-

lr`its“` nuog sfurmg fi rgvgeug ifrhfst b`eks“cetf n`rsn ifmus. _gaasI`rof, ackg h`ey ftngr b`eks, rfutcegay

prfmgssgs ` mustfhgr–s a`rogst purmn`sgsicrst, r`tngr tn`e rueeceo g`mn tr`es`mtcfece tng frlgr ce wncmn ct fmmurrgl. Julog

 _caa c`h @asup ruagl tn`t by lfceo sf, _gaas I`rof uei`cray mrg`tgl sctu`tcfes ce wncmn ` mustfhgr mfual bg mn`rogl up

tf tge fvgrlr`it iggs fi $=7 ifr ofceo fvgrtng achct by feay ` igw lfaa`rs.

 Julog @asup wrftg iurtngr tn`t ‑tng

b`ek wget tf mfesclgr`bag giifrt tf nclgtngsg h`ecpua`tcfes wncag mfestrumtceo `

i`m`lg fi pnfey lcsmafsurg.‘ \ng ruaceo cs` ir`mtcfe fi tng $0.> bcaacfe ce fvgrlr`itiggs tn`t tng b`ek mfaagmtgl ce M`acifrec`

irfh 2447 tf 244?. Fvgr`aa, tng b`ekceocelustry h`kgs up tf $=> bcaacfe ` yg`r ce

fvgrlr`it iggs, `mmfrlceo tf tng Iglgr`aRgsgrvg. Ice`aay, Julog @asup wrftg:

 Cetgre`a b`ek hghfs `el gh`cas

ag`vg ef lfubt tn`t, fvgrlr`it

rgvgeug bgceo ` bco prfict mgetgr, tng

b`ek–s lfhce`et, celggl sfag,

hftcvg w`s tf h`xchczg tng euhbgr

fi fvgrlr`its `el squggzg `s humn

`s pfsscbag fut fi [mustfhgrsX.

Ce spctg fi tng julog–s ruaceo, _gaasI`rof stcaa ma`chs cts ‑hgtnfl fi prfmgss-ceo tr`es`mtcfes n`s bgge `pprfprc`tg

`el mfescstget wctn mustfhgr–s cetgrgsts`el tng a`ws `el ruags fi ofvgreceo rgou-a`tfry `utnfrctcgs.‘ _ctn ` snfw fi typcm`a

mfrpfr` tg ` r rfo`emg, tng b`ek`eefuemgl ct n`l ‑ef cetgetcfe fi mn`eo-ceo tng w`y tn`t ct prfmgssgs tr`es`m-

tcfes.‘ \n`t–s hfst lcs`ppfcetceo, but eft` tft`a surprcsg. _gaas I`rof cs vgry pfwgr-iua `el pfactcm`aay ceiaugetc`a.

]furmgs: @hgrcm`e B`ekceo  `el H`rkgt Egws 

^Y.

GHTAFSHGE\ @EL

IA]@ AC\CO@\CFE

M @\GRTCAA@R  ] G\\AG]  GRC]@ M A@]]  @M\CFE  I FR  $09.7 H CAACFE 

M`tgrpcaa`r, Cem. n`s rg`mngl ` $09.7hcaacfe sgttaghget wctn ghpafyggs. \ngp`rtcgs n`vg `skgl ifr mfurt `pprfv`a fi

tng sgttaghget. \ng W.]. Lcstrcmt Mfurt ifrtng Hcllag Lcstrcmt fi \geegssgg n`lor`etgl ma`ss mgrtcicm`tcfe tf rgtcrgl

ghpafyggs `el ` survcvceo spfusg fi `rgtcrgl ghpafygg sggkceo geifrmghget fitng ghpafygr–s `aagogl prfhcsg tf p`y

acigtchg rgtcrgg ng`atn bgegicts `t ef mfst.M`tgrpcaa`r Cem., w`s sugl, `aagoceo tn`ttng mfhp`ey brg`mngl cts prfhcsg tf p`y

acigtchg ng`atn bgegicts `t ef mfst tf cts

rgtcrggs `el tngcr spfusgs. M`tgrpcaa`r n`lclgetcicgl 44->3>-24=< fr bygh`ca `t Bcaa.RfbgrtsfeDbg`sagy`aage.

mfh.

 www.JgrgBg`sagyRgpfrt.mfh 0?

8/9/2019 The Jere Beasley Report, Sep. 2010

18/40

$074 H CAACFE  ] G\\AGHGE\  B S  E G_  M GE\WRS 

\ncrtgge ifrhgr fiicmgrs `el lcrgmtfrs

fi Egw Mgetury Ice`emc`a Mfrp., tnga`rogst pubacmay-tr`lgl agelgr tn`tifmusgl fe subprchg hfrto`ogs, n`vg

`orggl tf p`y hfrg tn`e $34 hcaacfe tfsgttag mcvca ma`chs `rcsceo fut fi tng mfh-p`ey–s mfaa`psg. Eg`ray `aa tng p`yhgets

 wcaa bg h`lg by cesurgrs uelgr pfacmcgsbfuont tf prftgmt Egw Mgetury–s fiicmgrs`el lcrgmtfrs. Ce `llctcfe, KTHO n`s

`orggl tf p`y eg`ray $. Ce `llctcfe, `eftngr $744,444 w`s `w`rlgl tf tng spfusgs fi tnrgg fitng wfrkgrs. \ng fwegr `el fpgr`tfr fi

tng lfwetfwe w`tgrirfet nftga wngrgtng Ta`cetciis wfrkgl mfemglgl rgspfesc-bcacty `t trc`a ifr tng ag`k `t ` Rutn–s Mnrcs

]tg`k Nfusg. But tngcr a`wygr s`cl tngTa`cetciis snfual feay rgmgcvg ‑i`cr `el rg`-sfe`bag mfhpges`tcfe‘ ifr ‑tghpfr`ry‘

syhptfhs.\ng jury ifuel nftga fwegr \TFB TcgrIcvg AAM `el fpgr`tfr Hgygr J`b`r`

Nftgas AAM g`mn ac`bag ifr egoacogemg `elmrg`tceo `e cetgetcfe`a pubacm eucs`emg. Ct`asf ifuel tng fpgr`tfr ac`bag ifr b`ttgry,

 wncmn cs `e cetgetcfe`a tfrt. \ng trc`a julog n`l tnrfwe fut ma`chs ifr puectcvg

l`h`ogs `t tng gel fi tng Ta`cetciis– m`sgbgifrg tng jury oft tng m`sg.

\ng l`h`ogs tf g`mn Ta`cetcii r`eogl

irfh `bfut $00,444 tf $0 hcaacfe ifriuturg hglcm`a gxpgesgs; irfh zgrf tf

$0.0

8/9/2019 The Jere Beasley Report, Sep. 2010

19/40

Muegyt Grturk, ` \urkcsn chhcor`et, w`s lrcvceo nfhg irfh ` afm`a Lfhcef–sTczz` wngrg ng wfrkgl `s ` econt

h`e`ogr fe Fmt. 27, 244> wnge ng w`sstrumk `el kcaagl by ` m`r lrcvge by tnglruek lrcvgr. Ncs wclfw icagl ` a`wsuct

ma`chceo tn`t st`ii hghbgrs fvgrsgrvgltng p`trfe wnge tngy snfual n`vgkefwe ng wfual lrcvg nfhg. \ng p`rtcgs

rg`mngl ` sgttaghget fe Juay 07

tn 

.\ng trc`a julog s`emtcfegl tng b`r ceH`y ifr lgstrfyceo fvgr ifur nfurs fi vcl-gft`pg tn`t hcont n`vg prfvgl tng Ta`ce-

tcii–s m`sg. \ng julog `asf ifuel gvclgemgtn`t \ng ]pfrts Orcaa lgstrfygl tng t`bs

ifr twf mustfhgrs wnf wgrg `t tng b`r wctn tng lruekge lrcvgr `el tng ‑spcaasnggt‘ tn`t rgmfrlgl mfhpachget`ry

lrceks tf p`trfes tn`t econt. \ng mfurt–sfrlgr rg`l ce p`rt:

 Ct cs p`rtcmua`ray lcsturbceo tn`t

\ng ]pfrts B`r wfual pgrhct tng

lgstrumtcfe fi tng subjgmt gvclgemg

`itgr ct bgm`hg `w`rg tn`t ` p`trfe

tf wnfh ct n`l bgge sgrvceo

`amfnfa w`s cevfavgl ce ` i`t`a

mr`sn `itgr ag`vceo cts prghcsgs.

\ng julog s`emtcfegl \ng ]pfrts Orcaaby rgstrcmtceo cts a`wygrs irfh cetrflum-

ceo `ey gvclgemg tf mfetr`lcmt tng ma`chtn`t b`rtgelgrs sgrvgl `amfnfa tf tngp`trfe wncag ng w`s `arg`ly lruek. \ng

lruek lrcvgr cs `w`ctceo trc`a fe mn`rogsfi lrcvceo wctnfut ng`laconts, lrcvceo

uelgr tng ceiaugemg fi lruos `el `amfnfa`el icrst-lgorgg vgncmua`r nfhcmclg.Aafyl Bgaa, `e @ta`et` a`wygr, rgprgsgetgltng Ta`cetcii `el lcl ` vgry offl jfb.

]furmg: @ta`et`