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be they FDA, OSHA, SEC, NYSE, or other regulatory bodies, is the best way to address a regulatory business problem This is not always easy and certainly not second nature Basically, there is not much upside to interaction with regulators, but the downside can be the complete cessation of business The government has unlimited resources, and, absent judicial relief, will likely get what it wants This is not to suggest that an unwarranted government action should not be contested, only that it be recognized as serious; and if a challenge is the chosen route, that the cost and time commitment are also recognized The company should also be honest about why it is contesting the action, bring the best resources it can muster to resolve the issue, and keep the lines of communication open Where possible, recruit other companies to join in diffusing risks and costs The automakers challenge of California s tough new emission requirements is one example where companies band together as they believe the legislature has overstepped legal boundaries Automakers need to tread this route with care and with eyes wide open They have to overcome the public s disapproval for taking on a popular law Right now their arguments are largely based on cost and the arcane argument that only the federal government can legislate fuel economy By banding together, they may be able to keep the public from painting any one company as the villain When an entire industry takes on legislation, it levels the playing field with regulators and legislators and reduces the risk for each individual company AIG stands apart as a company that has long had a reputation of challenging regulators Their bullying tactics may have finally backfired The company recently agreed to pay an $80 million fine and accept the imposition of a monitor to oversee its business due to the sale of products it sold from 1999 through 2001 These products received the attention of the New York Attorney General because they were designed to help companies manipulate their earnings This is on top of a $10 million fine paid a year earlier to settle similar claims Now, these fines are not all that material when one considers the size of AIG, and perhaps the board contemplated this in their decision making However, the monitor has to be an unpleasant and unexpected addition Monitors are basically attorneys hired by a company to investigate it, and the results of the their investigations are normally published Their work can be very disruptive as internal staff respond to document requests and try to explain away whatever.

To parse the same XML document using SAX, the implementation in Listing 12-6 is required Listing 12-6 Parsing Using the SAX Approach

// Runs client-side and starts the separate server process/thread static TInt StartTheServer() { TRequestStatus start; TServerStart starter(start); // HerculesServerexe or HerculesServerdll _LIT(KServerBinaryName,"HerculesServer"); const TUid KServerUid3={0x01010101}; // Temporary UID const TUidType serverUid(KNullUid, KNullUid, KServerUid3); #ifdef __WINS__ // On the Windows emulator the server is a DLL RLibrary lib; TInt r=libLoad(KServerBinaryName, serverUid); if (r!=KErrNone) return (r); // The entry point returns a TInt representing the thread // function for the server TLibraryFunction export1 = libLookup(1); TThreadFunction threadFunction = reinterpret_cast<TThreadFunction>(export1()); TName name(KServerName); // Defined previously // Randomness ensures a unique thread name nameAppendNum(Math::Random(), EHex);

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dirty laundry is found AIG initially balked at accepting a monitor; but the company finally acquiesced to the government s demands in order to put the issue behind it AIG still faces other hurdles, as the New York Attorney General has implicated the company in bidrigging schemes The company has also received regulatory scrutiny of its public announcements And more recently, federal prosecutors are investigating Hank Greenberg himself, the irascible former chairman of AIG, for his personal role in selling a nontraditional insurance product to General Re that allegedly helped it manipulate its financial statements Regulators are also digging into suspicions that AIG may have improved its own operating results by doing business with captive offshore subsidiaries In AIG s case, it seems that standing up to regulators has invited even more scrutiny Directors and managers should also be aware that regulators can come across as defensive or uneducated regarding your business It is obvious to any intelligent manager that an outsider can never know his business as well as he does Also, many government jobs are a training ground for the industries they regulate In that regard, they do not pay as well as the private sector and experience high turnover Inexperience does not make regulators unintelligent, and it would be a mistake to treat them as such At the end of the day, you will be asking them to give you a clean bill of health available for investor inspection The board must make sure senior management is involved in any response to regulatory concerns raised and that they are addressed to everyone s satisfaction

orgapachexercesparsersSAXParser; orgxmlsaxAttributes; orgxmlsaxhelpersDefaultHandler; orgxmlsaxSAXParseException; orgxmlsaxSAXException; javaioIOException;

5 The KErrAlreadyExists error code is returned because there must only be one copy of the server running on the system Simultaneous attempts to launch two copies of the server process will be detected by the kernel when the second attempt is made to create a CServer object of the same name It is this which fails with KErrAlreadyExists

There is a fourth emerging distress marker It is identified by a shareholder activist no longer politely knocking on your door, but threatening to kick it open The collapse of Enron and WorldCom have emboldened shareholder activists, such as the pension fund giant CalPERS, to become aggressive advocates for governance reform TIAA-CREF, another fund behemoth, has targeted 50 companies identified as having independence issues The only reason this marker is not already one of the Big Distress Markers is that the activists may be picking too many battles and waging war against

10 { 11 public SimpleSax(String a_file) 12 { 13 /* Create the parser */ 14 SAXParser sparser = new SAXParser(); 15 16 /* Set the content handler */ 17 sparsersetContentHandler(this); 18 19 /* Parse */ 20 try { 21 sparserparse(a_file); 22 } 23 catch (SAXException e) { 24 Systemerrprintln(e); 25 } 26 catch (IOException e) { 27 Systemerrprintln(e); 28 } 29 } 30 31 public void startElement (String a_uri, String a_localName, 32 String a_qName, Attributes a_attributes) 33 { 34 Systemoutprintln("NODE = "+a_localName); 35 } 36 37 public static void main (String[] args) 38 { 39 new SimpleSax(args[0]); 40 } 41 }

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