Top Banner

of 40

The Jere Beasley Report, Dec. 2012

Feb 05, 2018

Download

Documents

Beasley Allen
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    1/40

    Dfstrfoutbd tg gvbr 2:,>>> suoskrfobrs b`kj agetj

    www.Ob`[email protected]

    Dbkbaobr ?>0?

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    2/40

    ? www.Ob`[email protected]

    F.

    K@^FTGI

    GO[B_S@TFGE[

    TJB^_B[FDBETB@_E[@ [BKGEDTB_A

    ^rbsfdbet Go`a` wge ` trbabedgusvfk tgr y, `ed geb tj`t w`s bxtrbabiy j`rd

    cgumjt, ge Egvbaobr 3 tj. Jb egw c`kbs `euaobr gc rb`i kj`iibembs tj`t kgab wftj jfssbkged tbra. Tjbsb `rb a`lgr prgoibaswjfkj aus t ob db`it wftj. Recgr tue`tbiysgab gc tjba k`et w`ft cgr Fe`umur`tfgeD`y. Ft wfii t`hb ` uefcfbd `ed of-p`rtfs`ebccgrt ge tjb p`rt gc `ii kgekbrebd fe ]`sj-femtge tg sgivb tjbsb prgoibas. Ft fs `osg-iutbiy ebkbss`ry cgr `ii gc us tg pr`y cgr tjb^rbsfdbet `ed jfs c`afiy `ed cgr `ii abaobrsgc tjb R.[. Jgusb `ed [be`tb.

    ]jbe [`r` `ed F w`tkjbd tjb jumb krgwdfe Kjfk`mg ge bibktfge efmjt wb s`w cgihscrga `ii w`ihs gc ifcb. ]b s`w @abrfk`es

    egt lust Dbagkr`ts wjgsb k`edfd`tb j`d lustwge ` vbr y tgumj r`kb. Tjb c`kbs fe tj`tkrgwd rbcibktbd wj`t gur kguetry fs `ii`ogut. Tjb Reftbd [t`tbs fs ` dfvbrsb kguetry`ed festb`d gc dfvfdfem us, gur dfvbrsftysjguid ob ` mggd tjfem. ^rbsfdbet Go`a` j`dtjfs tg s`y `ogut gur dfvbrsfty @i`o`a` fevbstgrs feAgrm`e Hbbm`e & Kg. wfii rbkbfvb kjbkhstgt`ifem $04 afiifge. @kkgrdfem tg @i`o`a`[bkurftfbs Kgaafssfge Dfrbktgr Lgb Ogrm, tjbkjbkhs `rb tjb rbsuit gc ` rbkbet sbttibabetwftj Agrm`e Hbbm`e tj`t stbaabd crga `auitf-st`tb fevbstfm`tfge. Tjb fevbstfm`tfgefevgivbd sbvbe autu`i oged cueds krb`tbd oy

    Agrm`e Hbbm`e `ed sgid oy fts `mbets. Tjbsbvbe cueds igst `ogut $0.2 ofiifge fe ?>>=`ed ?>>:.

    Dfrbktgr Ogrm s`fd tjb rbfaoursbabetcued `dafefstr`tgr, @.O. D`t` Itd., obm`ea`fifem kjbkhs ge Egvbaobr 2tj crga tjb[t`tbs Cued sbt up oy tjb sbttibabet. Tjbkjbkhs `rb mgfem tg tjb 2,:;= @i`o`a` fevbs-tgrs wjg cfibd `e `pprgvbd ki`fa. Tjb [bku-rftfbs `ed Bxkj`emb Kgaafssfge wfiidfstrfoutb gtjbr sbttibabet cueds i`tbr.

    [gurkb< @ssgkf`tbd ^rbss

    @I@O@A@F[@ TG^[T@TBCG_DGFEMOR[FEB[[

    @rb` Dbvbigpabet A`m`zfebj`s r`ehbd@i`o`a` `agem tjb tgp c fvb st`tbs cgr dgfemousfebss cgr tjb tjfrd kgesbkut fvbyb`r. @i`o`a` w`s `isg c frst cgr kgapbtftfvbi`ogr kgsts `ed eb`r tjb tgp gc tjb ifst gc ftswgrhcgrkb dbvbigpabet prgmr`as. Tjb r`eh-fems `rb o`sbd ge ` survby gc ` sbibkt mrgupgc jfmjiy-rbspbktbd igk`tfge kgesuit`ets wjgwgrh wftj ` e`tfgewfdb kifbet o`sb. Tjb kge-suit`ets wbrb `shbd tg e`ab tjbfr tgp-cfvbst`tb kjgfkbs fe 04 sftb sbibktfge k`tbmgrfbs.

    @i`o`a`s gvbr` ii ousfebss bevf rgeabet,fekiudfem fts kgst gc dgfem ousfebss, kgrpg-r`tb t`x bevfrgeabet, fekbetfvbs prgmr`as`ed kggpbr`tfvb st`tb mgvbreabet wbrb `isgkftbd `agem tjb tgp cfvb oy tjb rbspgedfemkgesuit`ets. Tjb st`tbs kbrtfcfbd sftbs `edkgapbtftfvb utfifty r`tbs pi`kbd fe tjb tgpcfvb `agem tjb st`tbs `s wbii. ]jfib tjfs fsvbry mggd ebws cgr @i`o`af`es, fts egt sukjmggd ebws cgr tjgsb fe `ed gutsfdb gc@i`o`a` wjg ki`fa gur st`tb fs egt ` mggdpi`kb cgr ousfebss.

    [gurkb< @rb` Dbvbigpabet A`m`zfeb

    FF.

    @ _B^G_T GE

    TJB MRIC KG@[T

    DF[@[TB_

    CBDB_@IMGSB_EABET[BTTIB[K_FAFE@IKJ@_MB[]FTJO^

    @s j` s obbe wfdbiy puoi fk fzbd, O^ j`ssbttibd `ii cbdbr`i krfafe`i kj`rmbs wftj tjbDbp`rtabet gc Lustfkb. Tjb tgt`i p`yabetsuedbr tjb sb t t ibabet wf i i ob $4.2ofiifge. Tjb a`lgrfty gc tj`t ageby mgbs tg` mrgup gc cbdbr`i `mbekfbs wjfkj fe turekguid sbed ft o`kh tg tjb Muic Kg`st. @s

    FE TJF[ F[[RB

    F. K`pftgi Gosbrv`tfges . . . . . . . . . . . . . . . ?

    FF. @ _bpgrt Ge Tjb Muic Kg`st Dfs`stbr . . . ?

    FFF. Drum A`euc`kturbrs Cr`ud Iftfm tfge . . . 4

    FS. Kgurt ]`tkj . . . . . . . . . . . . . . . . . . . . . . 3

    S. Tjb E`tfge`i [kbeb . . . . . . . . . . . . . . . . =

    SF. Tjb Kgrpgr`tb ]grid . . . . . . . . . . . . . . . 6

    SFF. ^rgdukt If`ofifty Rpd`tb . . . . . . . . . . . 0;

    SFFF. A`ss Tgrts Rpd tb . . . . . . . . . . . . . . . . 0=

    FZ. @e Rpd tb ge [bkurftfbs Iftfm tfge . . . . ?>

    Z. Fesur`ekb `ed Cfe`ekb Rpd tb . . . . . . ?>

    ZF. ]grhpi`kb J`z`rds . . . . . . . . . . . . . . . ?0

    ZFF. Tr`espgrt`tfge . . . . . . . . . . . . . . . . . . . ??

    ZFFF. Bevfrgeabet`i Kgekbres . . . . . . . . . . . ??

    ZFS. Tjb Kgesuabr Kgrebr . . . . . . . . . . . . . ?;

    ZS. _bk`iis Rpd`tb . . . . . . . . . . . . . . . . . . . ;>

    ZSF. Cfra @ktfvftfbs . . . . . . . . . . . . . . . . . . . ;=

    ZSFF. [pbkf`i _bkgmeftfges . . . . . . . . . . . . . . ;=

    ZSFFF. C`vgrftb Ofoib Sbrsbs . . . . . . . . . . . . . . ;=

    ZFZ. Kigsfem Gosbrv`tfges . . . . . . . . . . . . . . ;:

    ZZ. ^`rtfem ]grds . . . . . . . . . . . . . . . . . . . ;6

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    3/40

    www.LbrbOb`siby_bpgrt.kga ;

    bxpbktbd, Igufsf`e` wfii ob tjb ofmmbst obe-bcfkf`ry. ]jbe, wjbrb `ed jgw tjb agebymbts dfstrfoutbd rba`fes tg ob sbbe, out ftsjguid ob egtbd tjfs fs lust `e feftf`ip`yabet ge tjb tgt`i `aguet gwbd oy O^cgr fts rgib fe tjb k`t`strgpjb.

    Tjb ofmmbr ageby ybt tg kgab wfii ob fekfvfi pbe`itfbs O^ c`kbs cgr vfgi`tfges gc tjbcbdbr`i Kib`e ]`tbr @kt `ed Gfi ^giiutfge @kt,wftj bst fa`tbs r`emfem crga $2.4 ofi ifge tg$?? ofiifge. Tjb dfccbrbekb dbpbeds ge

    wjbtjbr O^ fs mufity gc sfapib ebmi fmbekb`t` cfeb gc $0,>>> cgr bvbry o`rrbi gc gfispfiibdgr gc mrgss ebmifmbekb, wjfkjk`rrfbs ` cfeb gc $4,;>> pbr o`rrbi. Ft fs tj`tageby wjfkj wfii cigw tg tjb Muic Kg`st oyw`y gc tjb _bstgrb @kt, tjb cbdbr`i ibmfsi`t fge`pprgvbd oy Kgemrbss `ed sfmebd fetg i`w oy^rbsfdbet Go`a` fe Luiy. @kkgrdfem tgR.[. @ttgreby Mbebr`i Brfk Jgidbr, tjb mgv-breabet fs fe ebmgtf`tfge wftj O^ tg rbsgivb`ii gc tjb kfvfi ki`fas, wftj ` trf`i sbt cgr Cbo-ru`ry fe Ebw Grib`es.

    Tjb $4.2 ofiifge sbttibabet orb`hs dgwe `scgiigws< $?.4 ofiifge tg tjb E`tfge`i Cfsj `ed

    ]fidi fcb Cgued`tfge, wjfkj s`fd ft wfii usbtjb ageby cgr bevfrgeabet`i rbabdf`tfge getjb Muic Kg`st8 $0.; ofiifge fe krfafe` i cfebs,wjfkj kguid mg tg tjb R.[. Kg`st Mu`rds Gf i[pfii If`ofifty Trust Cued8 $2?2 afiifge tg tjb[bkurftfbs `ed Bxkj`emb Kgaafssfge tgsbttib krfafe`i kj`rmbs tj`t O^ afsibd fevbs-tgrs8 `ed $;2> afiifge tg tjb E`tfge`i@k`dbay gc [kfbekbs, wjfkj s`fd ft wfii usbtjb ageby tg bst`oifsj ` ebw, ;>-yb`rprgmr`a ge jua`e jb`itj `ed bevfrgeabe-t`i prgtbktfge fe tjb Muic gc Abxfkg.

    Bx`ktiy jgw tjb ageby wfii ob dfvfdbd`agem tjb st`tbs rba`fes uekbrt`fe. Aukj gcft wfii ob p`fd gut oy O^ gvbr tjb ebxt tjrbb

    tg cfvb yb`rs. Igufsf`e`, wjfkj succbrbd tjboruet gc bevfrgeabet`i d`a`mb crga tjbspfii, wfii rbkbfvb tjb ofmmbst sj`rb gc prg-kbbds crga tjb krfafe`i pbe`itfbs. F jgpb tjb@ttgreby Mbebr`i wf ii ob tgumj fe tjb ebmgtf-`tfges wftj O^ ge tjb kfvfi cfebs. Jb sjguidj`vb ` vbry strgem pgsftfge sfekb O^skgedukt kib`riy rfsbs tg tjb ibvbi gc mrgssebmifmbekb.

    [gurkb< @I.kga

    TJBC@F_EB[[JB@_FEMOBCG_BLRDMBO@_OFB_]BET]BII

    @s wb j`vb rbpgrtbd, tjb c` frebss jb`rfemcgr tjb gfi spfii sbttibabets gkkurrbd geEgvbaobr :, ?>0?, `ed o`sbd ge `ii fedfk`-tfges, tjb sbttibabets rbkbfvbd vbry jfmja`rhs. ]jfib tjb p`rtfbs j`d `irb`dy prg-vfdbd sfm ef cfk`et or fbc fem tg tjb kgu rt fesuppgrt gc tjb sbttibabets, Ludmb O`rofbrjb`rd jgurs gc `rmuabets crga tjb ^i`fetfccs[tbbrfem Kgaafttbb, O^ `ed ki`fas `dafefs-tr`tgr ^`t Lueb`u fe suppgrt gc tjb sbttib-abets. Fe `ii c`frebss jb`rfems, tjb bssbetf`i

    qubstfge fs wjbtjbr tjb sbttibabets `rb c`fr,rb`sge`oib `ed `dbqu`tb tg ki`ss abaobrs.

    O`sbd ge tjb tbstfagey `ed bvfdbekbgccbrbd tg tjb kgurt, tjb sbttibabets`ppb`rbd tg a`hb ` vbry c`vgr`oib faprbs-sfge. Agst, fc egt `ii, ki`ss `ktfge sbttibabetsdg egt j`vb ` cuiiy-cuektfgefem ki`fas c`kfi-fty obcgrb tjb c`frebss jb`rfem, `ed r`rbiy, fcbvbr, `rb ki`ss abaobrs `ktu`iiy p`fd obcgrbtjb c`frebss jb`rfem gkkurs. Fe tjb k`sb gctjb gfi spfii sbttibabets, ki`fas c`kfiftfbs

    j`vb obbe cuektfgefem cgr agetjs, `ed Bkg-egafk [bttibabet `dafefstr `tgr ^`t Lueb`urbpgrtbd tj`t tjb Bkgegafk [bttibabet j`d`irb`dy p`fd, gr w`s fe tjb prgkbss gcp`yfem, eb`riy $0.; ofiifge fe kgapbes`tfgetg ki`ss abaobrs. Agrb fapgrt`etiy, 62% gcki`fa`ets wbrb `mrbb`oib tg gccbrs a`db oytjb ki`fas c`kfifty, wjfkj fs `e `stgefsjfemst`tfstfk mfvbe jgw yguem tjb c`kfifty fs `edtjb kgapibx e`turb gc tjb ki`fa`ets `igemtjb Muic Kg`st.

    @s bxpbktbd, ` sbt tibabet tjfs i`rmb `edkgapibx w`s egt wftjgut golbktgrs.Jgwbvbr, Ludmb O`rofbr pgfetbd gut tj`t `

    v`st a`lgrf ty gc golbktgrs w`s ifaftbd tg `j`edcui gc i`w cfras tj`t golbktbd ge obj`icgc ` i`rmb pgrtfge gc tjbfr kifbets. [t`tfstfksgccbrbd oy tjb p`rtfbs durfem tjb jb`rfemcurtjbr bapj`sfzbd tjb pgfet, `s golbktgrs(`ed gpt-guts) wbrb dw`rcbd oy tjb v`steuaobr gc p`rtfkfp`tfem ki`ss abaobrs. Fec`kt, rbprbsbet`tfvbs crga O^ egtbd tj`t tjbeuaobr gc gpt-guts `ed golbktgrs w`s wbiiobigw bxpbktbd prglbktfges.

    O`sbd ge tjb bvfdbekb gccbrbd oy tjbp`rtfbs `ed tjb sbttibabets `kkgapifsjabetstjus c`r, tjbrb fs eg dbo`tfem tj`t tjfs sbttib-abet a`y mg dgwe `s geb gc tjb obstbvbr. Tjb sbttibabet fs p`yfem ousfebssbs

    tjrgumjgut tjb kg`st`i st`tbs sfmefcfk`et `edab`efemcui kgapbes`tfgea`ey gc wjfkjebvbr j`d ` kj`ekb `t kgapbes`tfge fe tjbMuic Kg`st Ki`fas C`kfifty. Agrbgvbr, tr`df-tfge`i ibm`i jurdibs sukj `s purb k`us`tfge`ed strfkt prggc rbqufrbabets j`vb obbe ibss-bebd sfmefcfk`etiy `ed rbpi`kbd wftj ` tr`es-p`rbet, ki`fa`et-crfbediy prgkbss.

    Ludmb O`rofbr f s kurrbetiy kgesfdbrfem `iigc tjb p`rtfbs `rmuabets `ed orfbcfems, `edwb bxpbkt jf a tg ru ib ge mr `etfem cf e` i`pprgv`i tg tjb sbttibabets vbry sgge.O`sbd ge tjb bvfdbekb gccbrbd tg tjb kgurt,wb cbbi vbr y kgecfdbet tj`t Ludmb O` rofbrwfi i mr`et c fe`i `pprgv` i `ed tjb sbttibabets

    wfii mg cgrw`rd. Fc ygu j`vb `ey qubst fges`ogut tjb sbttibabets, pib`sb kget`kt ^`rhbrAfiibr, ` i`wybr fe gur cfra wjg j`s obbefevgivbd fe tjb O^ iftfm`tfge crga tjb gutsbt,`t :>>-:6:-?>;4 gr oy ba`fi `t ^`rhbr.AfiibrNob`siby`iibe.kga.

    KGR_T^R[JB[G T-FEDB@DIFEBTGDBKBAOB_02, ?>0?

    _bkbetiy, tjb ^i`fetfccs [tbbrfem Kgaaft-tbb `ed O^ lgfetiy cfibd ` agtfge rbqubstfemLudmb O`rofbr tg bxtbed tjb db`difeb cgr sbt-tibabet gpt-guts tg gpt o`kh fe. ^rbvfgusiy,`ey p`rty tj`t gptbd gut gc tjb Bkgegafk [bt-tibabet j`d uetfi Egvbaobr 2, ?>0? tg gpto`kh fe wftjgut O^ `pprgv`i. ]b `rb pib`sbdtg rbpgrt tj`t ge Egvbaobr 03, Ludmb O`rofbr

    mr`etbd tjb p`rtfbs agtfge, `ed j`sbxtbedbd tjb gpt-fe db`difeb tg Dbkbaobr02, ?>0?. Fapgrt`etiy, p`rtfbs golbktfem tgtjb sbttibabet aust drgp tjbfr golbktfgeobcgrb tjby wfii ob pbrafttbd tg gpt o`kh fe.

    Ludmb O`rofbr `isg ki`r fcfbd tjb gpt-fe db`d-ifeb cgr Abdfk`i [bttibabet p`rtfkfp`ets.Ki`ss abaobrs gc tjb Abdfk`i [bttibabetwjg gptbd gut a`y gpt o`kh fe oy Dbkbaobr02, ?>0?, gr oy tjb d`tb gc ` cfe`i grdbr `edludmabet `pprgvfem tjb Abdfk`i [bttibabet,wjfkjbvbr fs i`tbr. Out ifhb tjb Bkgegafk [bt-tibabet, Abdfk`i [bttibabet ki`ss abaobrsaust drgp tjbfr golbktfges tg tjb sbttibabet

    obcgrb tjby wfii ob pbrafttbd tg gpt o`kh fe.

    GFI[ FIIT_F@IKGETFERBDRETFICBO_R@_V?>0;

    Ludmb K`ri O`rofbr kgetfeubd tjb st`rt gctjb trf`i tg dbtbrafeb if`ofifty crga tjb ?>0>Dbbpw`tbr Jgrfzge gfi spfii. Festb`d gcL`eu`ry, tjb ebxt tr f`i wfi i egw st`rt ge Cbo-ru`ry ?2, ?>0;. Tjfs sjgrt dbi`y w`s obk`usbgc tgurfst bvbets tj`t wfii hbbp Ebw Grib`esjgtbis ogghbd. Ludmb O`rofbr, wjg fs prbsfd-fem gvbr tjb tjrbb-p`rt jb`rfem tg dbkfdb if`-ofifty cgr tjb gfi spfii, pgstpgebd tjb trf`iwjbe grfm fe` iiy sbt i`st yb`r obk`usb gc tjbsbttibabet oy O^ wftj prfv`tb ^i`fetfccs.Ludmb O`rofbr bxpi`febd tjb rbkbet kj`embw`s ` rbsuit gc igdmfem df cc fku itfbs `r fsfemcrga twg jumb bvbets tg ob jgstbd fe EbwGrib`es fe b`riy ?>0;tjb ECIs [upbr Ogwige Cbo. ;, `ed tjb A`rdf Mr`s cbstfv`i sbt cgrCboru`ry 0?tj. Tjfs sjguid egt ob t`hbe `s `ebm`tfvb fe `ey rbspbkt. Tjb trf`i wfii mgcgrw`rd ge tjb ebw d`tb `ed O^ hegwsft. Tjfs sjgr t dbi`y w`set mggd ebws cgr O .

    @I@O@A@@MBEKFB[@EDKFTFB[TG[ IFT

    $: AFIIFGEFEO^ TGR_F[AM_@ET[

    Eb`riy twg dgzbe egeprgcft mrgups `edmgvbreabet `mbekfbs fe @i`o`a` wfii sj`rb$:.; afiifge fe O^ cueds tj`t wbrb `w`rdbdtg prgagtb Muic Kg`st tgurfsa `ed sb`cggdfedustrfbs fe st`tbs fap`ktbd oy tjb ?>0> gfispfii. ^`trfkh Lueb`u, `dafefstr`tgr gc tjbki`fas prgkbss cgr tjb ?>0> Muic gfi spfii,`eeguekbd tjb cfrst rgued gc Muic Tgurfsa`ed [b`cggd ^rgagtfge`i Cued mr`ets geEgvbaobr =tj. @ tgt`i gc $2= afiifge fetgurfsa `ed sb`cggd prgagtfge mr`ets wfii

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    4/40

    4 www.Ob`[email protected]

    ob `w`rdbd oy O^ `s p`rt gc prgpgsbd sbttib-abet cgiigwfem tjb ?>0> Dbbpw`tbr Jgrfzgedfs`stbr wftj b`kj `ppifk`et ifaftbd tg `$2>>,>>> rbqubst. Gc tjb tgt`i `aguet, $4;.=afiifge w`s `w`rdbd tg 00> mr`et rbkfpfbetswjg wbrb pfkhbd crga ` pggi gc agrb tj`e;2> `ppifk`ets.

    Fe `ddftfge tg ?0 @i`o`a` mrgups tj`t wfiispift $:.; afiifge, Igufsf`e` rbkbfvbd tjbi`rmbst `aguet `s 4; rbkfpfbets wfii mbt $02.6afiifge. Cigrfd` cgiigws wftj ;; grm`efz`-

    tfges tg rbkbfvb $0;.4 afiifge `ed 0; grm`ef-z`tfges fe Afssfssfppf wfii mbt $3 afiifge.^rglbkts fe tjb @i`o`a` kftfbs gc Cgiby, Muic[jgrbs `ed Gr`emb Ob`kj wbrb `pprgvbd.[gab gc tjb Agofib `mbekfbs tj`t wfii rbkbfvbmr`ets fekiudb Agofib Kj`aobr gc Kga-abrkb, Obiifemr`tj M`rdbes, O`ycbst `edAgofib Ausbua gc @rt.

    ]jf ib agst grm`efz`tfges wf ii rbkbfvb gebp`yabet, cfvb gc tjb @i`o`a` `mbekfbs wfiiob cuedbd cgr twg yb` r s , t g t ` i fem$4,?>4,>>. @i`o`a` Muic Kg`st Kj`aobr gcKgaabrkb, Muic [jgrbs Gr`emb Ob`kjTgurfsa, Muic [jgrbs `ed Gr`emb Ob`kj wfii

    rbkbfvb twg $2>>,>>> mr`ets b`kj, `edD`upjfe Fsi`ed ^`rh `ed Ob`kj Og`rd w`s`w`rdbd twg $0>?,>>> p`yabets.

    Tg mfvb `e fedfk`tfge gc jgw tjbsb cuedswfi i ob usbd, Cgiby wfi i krb`tb ` yb`r-rguedsb`cggd `ed c`rabrs a`rhbt. Fe Muic [jgrbs,tjb kftys `w`rd wfii jbip obmfe wgrh wftjfetjb ebwiy-krb`tbd Fetr`kg`st`i w`tbrcrgetbetbrt`feabet dfstrfkt. @kkgrdfem tg tjbmr`et `ppifk`tfge, tjb mg`i gc tjb pi`e fs tgkrb`tb ` kgap`kt, pbdbstrf`e cr fbediy, afxbdusbd, ebfmjogrjggd dgwetgwe dfstrfkt. Tjbpi`e k`pft`ifzbs ge tjb wgrhfem w`tbrcrgetjfstgry `ed jbrft`mb gc tjfs `rb` gc tjb kfty`ccbktfge`tbiy hegwe `s Gid Muic [jgrbs.

    [gurkb< @I.kga

    O^ K@E@CCG_DTG^@VGFI[ FIICFEB[

    O^ sgid fts st`hb fe TEH-O^ tg _gsebct,wjfkj mfvbs tjb gfi mf`et `ddftfge`i rbsgurkbswjfkj k`e ob usbd tg kgvbr `ii gc fts c fe`ekf`ibxpgsurb ed ibm`i kgsts r fsfem crga tjb ?>0>Muic gc Abxfkg gfi spfii. Bxpbrts s`y tjfs wfiijbip tg hbbp O^s tgt`i bxpgsurb crga fap`fr-fem fts cfe`ekf`i prgcfib. @ st`tbabet crga tjbr`tfems `mbeky Cftkj _`tfems fedfk`tbd `eupmr`db tg O^s dbot r`tfem gc @ wguid

    rbqufrb bvfdbekb tj`t fts ebw upstrb`a ousf-ebss str`tbmy fs obfem sukkbsscuiiy fapib-abetbd, gr gc ` obttbr-tj`e-bxpbktbdsbttibabet wftj tjb R.[. Dbp`rtabet gcLustfkb. _bm`rdibss gc jgw `i i gc tjfs `ccbktsO^s cfe`ekf`i `ofifty tg p`y `ii ki`fas, tjbLust fkb Dbp`rtabet j`s ` duty tg a`xfafzbtjb rbkgvbry. O^ `ed _gsebct `mrbbd tg tjbs`ib gc O^s 2>-pbrkbet st`hb fe TEH-O^ cgr$?: ofiifge fe k`sj `ed _gsebct sj`rbs.

    Cftkj s`fd tj`t tjb s`ib ftsbicwjfkj wfiisw`p O^s st`hb fe TEH-O^ cgr `e 0:.2-pbrkbet st`hb fe _gsebct `ed `rgued $0?.;

    ofiifge fe k`sjfs org`diy ebutr`i cgr O^sr`tfem. Tj`ts obk`usb ft wguid egt rbdukbtjb kgap`eys rbsbrvbs gr prgduktfge.Jgwbvbr, tjb s`ib wfii t`hb O^ wbii obygedfts $;: ofiifge t`rmbt cgr `ssbt s`ibs, tjusfekrb`sfem fts `ofifty tg abbt pgtbetf`i cuturbfssubs rbi`tbd tg tjb gfi spfii. Tjb r`tfem`mbeky s`fdofiifge, wftj tjb hby rba`fefem uekbr-

    t`fety obfem tjb `aguet ft wfii j`vb tg

    p`y tg sbt tib wftj tjb Dbp`rtabet Gc

    Lustfkb.

    Ft w`s pgfetbd gut oy Cftkj tj`t tjb r`tfem`mbeky wguid kgesfdbr ` sbttibabet wftj tjbDbp`rtabet gc Lustfkb gc $02 ofiifge gr ibss `s` pgsftfvb dbvbigpabet cgr tjb kgap`ey.Cftkj a`db tjfs gosbrv`tfge-pgfet pi`e tg faprgvb fts upstrb`a

    ousfebss pbrcgra`ekb, wjfkj w`s sbt

    gut fe Gktgobr ?>00.

    ]ftjgut mbttfem fetg tjb upmr`db `spbkt gctjb db`i wftj _gsebcc `ed fts bccbkt ge tjbki`fas `m`fest O^, F wfii sfapiy s`y tj`t O^`ed `ii rbspgesfoib p`rtfbs sjguid egt geiyp`y ki`fas fe cuii, out tjby sjguid `ii obsbvbrbiy puefsjbd cgr tjbfr vbry o`dkgedukt. Tj`ts bspbkf`iiy trub wjbe ft

    kgabs tg O^. ]jbe ygu kjbkh tjb gfi m f`etsqu`rtbriy prgcfts, F obifbvb ygu wfii `mrbb tj`tO^ k`e `ccgrd tg p`y wj`tbvbr `aguets ft fsgrdbrbd tg p`y, wjbtjbr oy sbttibabets grtrf`i.

    [gurkb< _fmzgeb.kga

    TJB_B[JGRIDOBEGT@ZO_B@H[CG_O^ GFI[ FIICFEB[

    Cfebs p`fd oy O^ `ed gtjbr kgap`efbs cgrtjb ?>0> Dbbpw`tbr Jgrfzge gfi spfii wguidegt ob t`x dbduktfoib uedbr ibmfsi`tfge prg-

    pgsbd oy R.[. _bprbsbet`tfvb Lg Ogeebr.[gab gosbrvbrs `rb kgekbrebd tj`t tjb st`tbstj`t wbrb agst d`a`mbd oy tjb gfi spfiiafmjt egt rbkbfvb agst gc tjb cfeb ageby, `sprgafsbd fe ibmfsi`tfge ^rbsfdbet Go`a`sfmebd fetg i`w fe Luiy. Jgpbcuiiy, tjgsb kge-kbres `rbet o`sbd fe rb`ifty. Out fe `ey bvbet,`iigwfem O^ `ed tjb gtjbr kgap`efbs tg t`hb` t`x dbduktfge ge tjb ageby tjby p`y gutcgr cfebs wguid ob ` ofm afst`hb.

    @ii gc @i`o`a`s Kgemrbssfge` i dbibm`tfge,wjfkj fekiudbs A`r tj` _goy, Tbrr f [bwbii,Afhb _gmbrs, _gobrt @dbrjgit, `ed [pbekbr

    O`kjus, wfii kg-spgesgr tjb ofii wftj _bp.Ogeebr. Kgecfdbetf`i sbttibabet t`ihs ge tjbkfvfi cfebs obtwbbe O^ `ed tjb LustfkbDbp`rtabet j`vb obbe gemgfem `ed `rb egtkigsb tg kgekiusfge. Igts gc c`isb `ed afsib`d-fem fecgra`tfge j`s obbe ib`hbd gut tg tjbabdf`, obifbvbd tg kgab crga O^, rbi`tfem tgprgmrbss tgw`rd sbttibabet obfem a`db. Bstf-a`tbs `rb tj`t tjb cfebs kguid ob `s aukj `s$?2 ofiifge.

    F `a kgecfdbet tj`t tjb Go`a` @dafefstr`-

    tfge wfii rbspbkt tjb _B[TG_B @kt, uedbrwjfkj :> pbrkbet gc tjb cfebs ibvfbd `m`festO^ uedbr tjb Kib`e ]`tbr @kt `rb tg mgdfrbktiy tg @i`o`a`, Cigrfd`, Igufsf`e`, Afs-sfssfppf `ed Tbx`s. Tjb _B[TG_B @kt `iigwsigk`i gccfkf`is fe tjb cfvb st`tbs tg spbed tjbageby ge bevfrgeabet`i rbstgr`tfge gr bkg-egafk dbvbigpabet prglbkts. Cfebs p`fdtjrgumj tjb Gfi ^giiutfge @kt kguid `iigwcbdbr`i gccfkf`is tg kgetrgi tjb ageby `edtjby kguid spbed ft ge bkgigmfk`i prglbkts.^brsge`iiy, F wguid prbcbr tj`t tjb ki`fas oyogtj tjb st`tbs `ed cbdbr`i mgvbreabet obtrfbd fe kgurt ueibss trbabedgusiy mggd sbt-

    tibabets `rb rb`kjbd. Tjb Lustfkb Dbp`rt-abet rb`kjfem ` sbttibabet wftj O^ rbi`tfemtg krfafe`i kj`rmbs j`s tg jbip gut ge tjbkfvfi cfebs `spbkt gc tjfs a`ttbr. Tjb ouih gcageby kgafem tg tjb st`tbs `ed cbdbr`i mgv-breabet wfii ob crga tjb kfvfi cfebs, `ed tjb`aguets sjguid ob jumb.

    [gurkb< Agetmgabry @dvbrtfsbr

    FFF.

    D_RM

    A@ERC@KTR_B_[

    C_@RD IFTFM@TFGE

    [BTTIBABET[GSB_C_@RDOVOFM^J@_A@@T_BKG_DJFMJ

    Tjb R.[. Dbp`rtabet gc Lustfkb `eeguekbdi`tb i`st yb`r tj`t tjb pj`ra`kbutfk`i fedus-try w`s stfii tjb ofmmbst dbcr`udbr gc tjbcbdbr`i mgvbreabet uedbr tjb C`isb Ki`fas@kt, `s ab`surbd oy tjb sfzb gc kfvf i `ed krfa-fe`i sbttibabets rb`kjbd wftj tjb cbdbr`i mgv-breabet fe cfsk`i yb`r ?>00. ^uoifk Kftfzbe

    dgkuabetbd tjfs trbed fe fts i`eda`rh ?>0>rbpgrt, _`pfdiy Fekrb`sfem Krfafe`i `edKfvfi Agebt`ry ^be`itfbs `m`fest tjb ^j`ra`-kbutfk`i Fedustry< 0660 tg ?>0>, wjfkjsjgwbd tj`t Ofm ^j`ra` j`d igem surp`ssbdtjb tr`dftfge`i gccbedbr, tjb dbcbesb fedustry,tg tgp tjb ifst gc dbcr`udbrs gc cbdbr`i t`x-p`ybr-cuedbd prgmr`as. @t tjb tfab gc tjbrbpgrts puoifk`tfge, tjb pj`ra`kbutfk`ifedustry j`d p`fd `iagst $?> ofiifge gvbr tjbprbvfgus twg dbk`dbs tg tjb cbdbr`i `ed st`tbmgvbreabets fe kfvfi `ed krfafe`i pbe`itfbscgr cr`uduibet `ktfvftfbs r`emfem crga fiibm`i

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    5/40

    www.LbrbOb`siby_bpgrt.kga 2

    a`rhbtfem gc drums tg wfdbsprb`d orfobry gcpjysfkf`es tg prbskrfob tjgsb drums.

    Fe [bptbaobr ?>0?, ^uoifk Kftfzbe puo-ifsjbd ^j`ra`kbutfk`i Fedustry Krfafe`i`ed Kfvfi ^be`itfbs< @e Rpd`tb, wjfkjsjgwbd tj`t tjfs trbed j`s kgetfeubdue`o`tbd. Crga Egvbaobr ?>0> tjrgumjafd-Luiy ?>0?, drum kgap`efbs wbrb cgrkbdtg p`y `e `ddftfge`i $0> ofiifge tg sbttib `i ib-m`tfges gc cr`ud. Tjb cfrst j`i c gc ?>0? `igebs`w rbkgrd cfe`ekf`i rbkgvbrfbs, wftj $3.3

    ofiifge p`fd oy tjb drum fedustry tg tjbcbdbr`i `ed st`tb mgvbreabets.

    Tjb ?>0? rbpgrt gutifebd tjb cgkus kbrt`fest`tbs j`vb pi`kbd ge rggtfem gut tjb cr`ud,`s aukj gc tjb fekrb`sb fe becgrkbabet `ktfv-fty j`s t`hbe pi`kb `t tjb st`tb ibvbi. Tjb?>0? rbpgrt prbsbetbd cgr tjb cfrst tfab `2>-st`tb `e`iysfs gc becgrkbabet bccgrts`m`fest drum kgap`efbs dbcr`udfem st`tbAbdfk`fd prgmr`as, wjfkj `ssfst pggr,bidbriy `ed dfs`oibd p`tfbets. Tjb `e`iysfsfekiudbd ` r`ehfem gc st`tbs o`sbd ge tjb`aguet gc ageby rbkgvbrbd tjrgumj sbttib-abets `ed kgurt ludmabets.

    Tjb rbpgrt cgued tj`t fedfvfdu`i st`tbs `rbsbttifem agrb k`sbs tj`e bvbr wftj pj`ra`-kbutfk`i kgap`efbs `kkusbd gc dbcr`udfemtjbfr Abdfk`fd prgmr`as `ed `rb rbkgvbrfemrbkgrd `aguets gc t`xp`ybr ageby. [fekb?>>6, st`tb mgvbreabets j`vb cfe`ifzbd agrbtj`e twfkb `s a`ey sbttibabets (64 vbrsus40), cgr eb`riy sfx tfabs agrb ageby ($;.=ofiifge vbrsus $33> afiifge), tj`e tjby j`ddurfem tjb prbvfgus 0: yb`rs kgaofebd. Oyc`r, tjb agst kgaage `iibm`tfge `m`fest drumkgap`efbs fe tjbsb sbttibabets j`s obbecr`uduibet gvbrkj`rmfem gc Abdfk`fd prg-mr`as. Tjb w`y a`ey Abdfk`fd prgmr`asp`y cgr drums j`s a`db tjba uefqubiy vui-

    ebr`oib tg sukj prfkfem cr`ud.@s wb j`vb wr fttbe fe prbvfgus fssubs,

    a`ey Abdfk`fd prgmr`as rbfaoursb fetbrab-df`rfbs, wjfkj fekiudb pj`ra`kfbs `ed drumwjgibs` ibrs, usfem tjb `vbr `mb wjgibs`ibprfkb (@]^) cgr ` drum, wjfkj fs o`sbd getjb a`euc`kturbrs `ssbssabet gc v`iub. Drumkgap`efbs gctbe rbpgrt tg Abdfk`fd @]^cfmurbs tj`t `rb aukj jfmjbr tj`e tjb `ktu`iprfkbs tjby kj`rmb fetbrabdf`rfbs. Tjb dfccbr-bekb obtwbbe tjb @]^ cfmurbs `ed tjb `ktu`iprfkbs p`fd oy tjb fetbrabdf`rfbs fs k`iibd tjbsprb`d. Tjb sprb`d rbprbsbets ` sgurkb gcprgcft cgr tjb fetbrabdf`rfbs. Oy sfmefcfk`etiyfeci`tfem tjb @]^ cfmurbs `ed tjbe jfmjifmjt-

    fem tjb i`rmb prgcfts tj`t wfii rbsuit cgr pj`r-a`kfbs `ed gtjbr fetbrabdf`rfbs, ` druma`euc`kturbr k`e fedukb tjbsb fetbrabdf`r-fbs tg purkj`sb tjb a`euc`kturbr sdrums. Tjb drum a`euc`kturbr uitfa`tbiyobebcfts crga tjfs cr`uduibet skjbab oyfekrb`sfem fts a`rhbt sj`rb.

    Tjfs pr`ktfkb j`s rbsuitbd fe `strgegafk`igvbrp`yabets oy Abdfk`fd. Fe ?>>?, tjb R.[.Jgusb gc _bprbsbet`tfvbs Bebrmy `ed Kga-abrkb Kgaafttbb fevbstfm`tbd ` k`sb fewjfkj ` drum a`euc`kturbr kj`rmbd fetbrab-df`rfbs $:?.3? cgr ` p`kh gc ?,>>> ciugxbtfeb

    k`psuibs (tjb mbebrfk vbrsfge gc tjb pgpui`r`etfdbprbss`et ^_G\@K). Tjb @]^ p`fd oya`ey Abdfk`fd prgmr`as cgr tjb s`abprgdukt w`s $2,;>>, gr eb`riy 32 tfabs tjbprfkb tjb fetbrabdf`rfbs p`fd cgr tjb drum.

    Cgrtue`tbiy, agst gc tjb st`tbs `rb kr`khfemdgwe ge kgrpgr`tb cr`ud fe tjb Abdfk`fdprgmr`as. [fekb 0660, Hbetukhy j`s kge-kiudbd tjb agst sbttibabets wftj drum kga-p`efbs`iagst `ii prfkfem-cr`ud k`sbswjfib Tbx`s ib`ds `i i st`tbs fe sbt tibabet s

    a`db pgssfoib oy prfv`tb-sbktgr wjfstib-oigw-brs. @rh`es`s, Igufsf`e`, [gutj K`rgife` `edTbx`s j`vb rbkgvbrbd ` tgt`i gc $?.; ofiifge fepbe`itfbs, rbprbsbetfem agrb tj`e twg-tjfrdsgc tjb cfe`ekf`i pbe`itfbs rbkgvbrbd fe sfemib-st`tb sbttibabets sfekb 0660. ^`rtfkui`riys`ifbet fe `e br` gc bvbr-tfmjtbr st`tb oudmbts,0= st`tbs rbkgupbd tjb bqufv`ibet gr agrb gctjbfr betfrb Abdfk`fd cr`ud-becgrkbabetoudmbts (fekiudfem tj`t spbet ge becgrkb-abet gc ege-pj`ra`kbutfk`i cr`ud) wftjageby crga sbttibabets wftj tjb pj`ra`kbu-tfk`i fedustry `igeb. @rh`es`s, [gutj K`rg-ife`, @i`o`a` `ed J`w`ff j`d tjb jfmjbstrbture ge fevbstabet, obtwbbe $0? (J`w`ff)`ed $:4 (@rh`es`s) cgr bvbry dgii`r spbet geAbdfk`fd cr`ud becgrkbabet.

    Tjb cbdbr`i mgvbreabet j`s kgekiudbd`iagst `s a`ey sbttibabets sfekb ?>>6 `s fetjb prbvfgus 0: yb`rs kgaofebd (46 sbttib-abets sfekb ?>>6 kgap`rbd wftj 22 crga0660 tg ?>>:) `ed j`s rbkgvbrbd agrb fecfe`ekf`i pbe`itfbs crga drum kgap`efbs fetj`t s`ab tfabcr`ab ($04.2 ofiifge sfekb ?>>6kgap`rbd wftj $00.; ofiifge crga 0660 tg?>>:). Agst gc tjbsb pbe`itfbs wbrb a`dbpgssfoib oy tjb `ktfges gc ` cbw prfv`tb-sbktgrwjfstib -oigwbrs wjg j`vb kgab cgrw`rd tgrbvb`i tjb wfdbsprb`d cr`ud pbrpbtr`tbd oy

    tjb drum fedustry. Redbr tjb Cbdbr`i Ki`fas@kt, prfv`tb- sbktgr wjfst ib-oigwbrs (bftjbrcgrabr kgap`ey bapigybbs gr gtjbrs wftjhegwibdmb gc fiibm`i `ktfvftfbs) k`e ob`w`rdbd up tg ?2 pbrkbet gc `ey sbttibabetprgkbbds rbsuitfem crga `e fevbstfm`tfge feftf-`tbd oy tjbfr rbvbi`tfges.

    ]jfstib-oigwbrs wbrb rbspgesfoib cgr feftf -`tfem fevbstfm`tfges tj`t rbsuitbd fe ?0 cbdbr`isbttibabets `ed $3 ofiifge fe pbe`itfbs uedbrtjb CK@ durfem tjb agst rbkbet pbrfgdstudfbd, Egvbaobr ?, ?>0>, tjrgumj Luiy 0:,?>0?. @iagst j`ic gc tjb wjfstib-oigwbr-prgaptbd cbdbr`i `ed st`tb sbttibabetsdurfem tjfs tfab wbrb a`db pgssfoib oy `

    sfemib fecgrabr, Sbe-`-K`rb, ` sa`ii pj`r-a`ky igk`tbd fe Hby ]bst, Ci`. Tjfs pj`r-a`ky j`s obbe rbspgesfoib cgr rbkgvbrfem `tib`st $0.; ofiifge cgr tjb cbdbr`i mgvbreabetcrga tjb pj`ra`kbutfk`i fedustry sfekb ?>>0.

    Gtjbr wjfstib-oigwbrs wbrb p`rtiy rbspge-sfoib cgr tjb i`rmbst jb`itj-cr`ud sbttibabet fejfstgry, wjfkj Mi`xg[aftjHifeb (M[H)rb`kjbd wftj tjb cbdbr`i mgvbreabet fe Luiy?>0?. Tjb sbttibabet rbqufrbd M[H tg p`y $;ofiifge tg rbsgivb euabrgus vfgi`tfges,fekiudfem tjb kgekb`iabet gc vft`i d`t` kge-kbrefem c`t`i k`rdfgv`skui`r sfdb bccbkts crga

    fts d`embrgus df`obtbs drum, @v`edf`. M[Hj`s obbe tjb wgrst gccbedbr gvbr tjb p`sttwg dbk`dbs, wftj agrb tj`e $=.2 ofiifge fepbe`itfbs p`fd tg tjb cbdbr`i `ed st`tb mgvbre-abets, `kkgrdfem tg ^uoifk Kftfzbes ?>0?rbpgrt. Tjgumj tjb pbe`itfbs fe tjbsb sbttib-abets `rb ueprbkbdbetbd fe sk`ib kgap`rbdwftj `ey gtjbr fedustry, tjby `rb stfi i afefs-kuib kgap`rbd tg tjb drum fedustrys ogttgaifeb. Tjb $;> ofiifge p`fd gut oy pj`ra`kbu-tfk`i kgap`efbs fe sbttibabets tg tjb cbdbr`i

    `ed st`tb mgvbreabets sfekb 0660 rbprbsbetslust ` if tt ib agrb tj `e twg- tj frds gc tjbprgcfts a`db oy tjb tbe i`rmbst drum kgap`-efbs fe ?>0> `igeb.

    Tjfs dfsp`rfty j`s ibd sgab, fekiudfem [be.Obrefb [`edbrs (F-St.), tg `sh wjbtjbr tjbpbe`itfbs `rb abrbiy ` kgst gc dgfem ousfebsscgr `e fedustry `s i`rmb `ed pbrv`sfvb `s Ofm^j`ra`. Tjb rbvbeubs mbebr`tbd crga fiibm`i`ktfvftfbs ifhbiy c`r gutwbfmj kurrbet pbe`i-tfbs, `ed `s sukj, tjb cr`ud j`s kgetfeubdue`o`tbd. Tg `itbr tjb kgst-obebcft skbe`rfg,[be. [`edbrs fetrgdukbd ibmfsi`tfge fe A`y?>0? a`ed`tfem tj`t drum kgap`efbs igsbd`t` bxkiusfvfty prfvfibmbs (or`edbd drumsa`rhbt agegpgiy cgr ` euaobr gc yb`rs `ctbr`pprgv`i, mr`etbd oy tjb Cggd `ed Drum@d afefs tr `t fg e) cg r tjb sp bk f c fk drum sfevgivbd fe `ey krfafe`i `ktfvfty. Tjfs kguidab`e ` igss gc ofiifges gc dgii`rs pbr yb`r fes`ibs `ed wguid ifhbiy mfvb p`usb tg kgap`-efbs kgetbapi`tfem uei`wcui obj`vfgr.Recgrtue`tbiy`ed pbrj`ps prbdfkt`oiy,mfvbe tjb fedustrys pgwbr `s tjb ofmmbst kgr-pgr`tb igooyfst fe ]`sjfemtgetjb ibmfsi`-tfge w`s dbcb`tbd.

    _bm`rdibss gc tjb pbe`itfbs `m`fest kgap`-efbs, tjb bxbkutfvbs rbspgesfoib cgr gvbrsbb-fem, gr ebmibktfem tg stgp, fiibm`i `ktfvftfbs

    `iagst iw`ys bsk`pb wftjgut rbpbrkussfges.Geiy ` j`edcui gc pj`ra`kbutfk`i bxbkutfvbsj`vb bvbr c`kbd krfafe`i kj`rmbs cgr prbsfd-fem gvbr cr`ud `m`fest tjb cbdbr`i mgvbre-abet, `ed geiy geb, A`rk [. Jbrabife,cgrabriy gc HS ^j`ra`kbutfk`i, j`s obbej`edbd `ey prfsge tfab (`ed tj`t cgr geiy ;>d`ys). Bxbkutfvb fapuefty fs agrb tj`e lust `agr`i fssubft mgbs tg tjb jb`rt gc wjy cr`udkgetfeubs uedbtbrrbd. @s igem `s tjb pbgpibwjg ru e ` kgap`ey obi fbvb tjby wf ii obsjfbidbd crga `ey pbrsge`i `kkguet`ofifty,tjby `rb crbb tg pursub tjb a`xfafz`tfge gcprgcfts fe tjb sjgrt tbra, ib`vfem igem-tbrakgsts tg tjbfr sukkbssgrs. Ft fs prbkfsbiy cgr

    tjfs rb`sge tj`t fedfvfdu`is ebbd tg ob jbid`kkguet`oib tjrgumj krfafe`i kj`rmbs.

    ^j`ra`kbutfk`i cr`ud j`s egw obkgab sgkgaagepi`kb tj`t fevbstgrs o`rbiy t`hbegtfkb wjbe ` ofiifge-dgii`r sbttibabet wftj `a`lgr drum kgap`ey fs `eeguekbd. ]jbetjb rbkgrd $; ofiifge sbttibabet wftj M[Hw`s tbet `tfvbiy `eeguekbd, tjb kgap`eysstgkh `ktu`iiy rgsb tg ` eb`r 2?-wbbh jfmj.A`ey obifbvb tj`t tjb kgrpgr`tb bxbkutfvbssjguid j`vb tg p`y ` jfmj prfkb cgr tjbwrgemcui `ktfvftfbs gc tjbsb kgap`efbs.

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    6/40

    3 www.Ob`[email protected]

    Gur cfra j`s obbe jb`vfiy fevgivbd fe tjb@]^ ift fm` tfge. @s prbvfgusi y wr fttbe, wbrbprbsbet bfmjt st`tbs fe tjfs iftfm`tfge.Cbdbr`i `ed st`tb mgvbreabets j`vb mrb`tiyfekrb`sbd tjbfr bccgrts tg bed pj`ra`kbutfk`icr`ud. F j`vb obbe bekgur`mbd oy wj`t Mgv-bregrs `ed @ttgrebys Mbebr`i fe a`ey st`tbs`rb dgfem tg kgao`t tjb cr`ud fe tjbfr Abdfk-`fd prgmr`as. @ii sjguid ob fevgivbd, `ed tjbpbgpib gc tjgsb st`tbs wjfkj `rbet fevgivbdsjguid dba`ed tj`t tjby lgfe tjb cfmjt.

    [gurkb< wgrstpfii.grm

    FS.

    KGR_T ]@TKJ

    [T@TBKGR_TLR[TFKB[]B_BBIBKTBD@_GREDTJBR.[. GEEGSBAOB_3TJ

    F tjgumjt ft afmjt ob mggd tg t`hb ` iggh `tjgw ludfkf`i r`kbs turebd gut `rgued tjb

    kguetry i`st agetj. Sgtbrs, cgr tjb agst p`rt,stggd oy fekuaobet st`tb [uprbab Kgurt lus-tfkbs. Tjfs w`s fe spftb gc _bpuoifk`es, ousf-ebss mrgups `ed gtjbrs t`rmbtfem ` euaobr gcludmbs cgr dbcb`t. Tjbrb w`s, jgwbvbr, `ebxkbptfge fe Gjfg wjbrb twg fekuaobets getjb st`tbs Jfmj Kgurt igst. Tjb cgiigwfem fs `rbk`p gc tjb st`tb kgurt bibktfges>6ruifem tj`t ibm`ifzbd m`y a`rrf`mb fe Fgw`.

    [gkf`i kgesbrv`tfvbs k`ap`fmebd tg gustLustfkb ]fmmfes obk`usb gc tjb ruifem, cgi igw-fem tjbfr sukkbss fe rbagvfem tjrbb gc jfs kgi-ib`mubs twg yb`rs `mg. Tjb Fgw` [t`tb O`r@ssgkf`t fge wgrhbd tg hbbp Lustfkb ]fmmfesge tjb obekj.

    Hbetukhy

    Hbetukhy [uprbab Kgurt Lustfkb ]fii T.[kgtt wfii rbture tg tjb st`tbs Jfmjbst Kgurt,wfee fem ` sbkged tbr a fe ` df st rf kt tj`tkgvbrs agst gc tjb st`tbs @pp`i`kjf`e rbmfge.Lustfkb [kgtt rbkbfvbd 2= pbrkbet gc tjb vgtbtg 4? pbrkbet cgr jfs kj`iibembr, @ppb`is

    Kgurt Ludmb L`ebt [tuaog. Tjb 2:-yb`r-gid[tuaog w`s tjb cfrst wga`e bibktbd tg tjb[uprbab Kgurt fe 066;. [jb w`s rb-bibktbdwftjgut gpp gsft fge, out w`s dbcb`tbd oyLustfkb [kgtt fe jbr ofd cgr ` tjfrd tbra.

    Afkjfm`e

    _bpuoifk`es prgtbktbd tjbfr 4-; a`lgrftyge tjb Afkjfm`e [uprbab Kgurt wftj tjb rb-bibktfge gc twg _bpuoifk`e fekuaobets, Lus-tfkbs [tbpjbe A`rha`e `ed Orf`e \`jr`.Dbagkr`t Orfdmbt AkKgra`kh `isg wge `sb`t. As. AkKgra`kh, wjg fs obst hegwe cgrib`dfem tjb Feegkbekb Kifefk `t tjb Refvbr-

    sfty gc Afkjfm`e i`w skjggi, wfii ob tjb cfrstege-ludmb bibktbd tg tjb [uprbab Kgurtsfekb 06:3. [jb ob`t G`hi`ed Kguety LudmbKgiibbe GOrfbe, ` _bpuoifk`e. Tjb AkKgr-a`kh vfktgry st`vbd gcc ` pgtbetf`i _bpuoif-k`e swbbp tj`t wguid j`vb mfvbe tjb MG^ `2-? a`lgrfty. Lustfkb A`rf iye Hbiiy, ` =4-yb`r-gid Dbagkr`t wjg j`d obbe ge tjb Kgurtsfekb 066=, kguidet rue `m`fe obk`usb gc `mbrbstrfktfges. Tjb Kgurts kgesbrv`tfvb oigktypfk`iiy vgtbs tgmbtjbr fe kfvfi dfsputbsfevgivfem kgetr`kts, fesur`ekb kgap`efbs,abdfk`i a`ipr`ktfkb `ed `utg kgvbr`mb. Ousf-ebss mrgups fekiudfem c`rabrs, o`ehbrs,dgktgrs `ed fesurbrs kgetrfoutbd jb`vfiy tgLust fkbs A` rh a` e `ed \` jr` `ed LudmbGOrfbe. Refges `ed trf`i i`wybrs dge`tbd tgAs. AkKgra`kh `ed tjb rbst gc tjb Dbag-kr`tfk si`tb.

    Afssfssfppf

    Afssfssfppf [uprbab Kjfbc Lustfkb Ofii]`iibr Lr. wge `egtjbr tbra ge tjb st`tbsJfmjbst Kgurt. ]`iibr, Kjfbc Lustfkb sfekb?>>6, wge `e bfmjt-yb`r tbra tj`t obmfes feL`eu`ry ?>04 `ed rues uet fi ?>?? . Jb w`s

    cfrst bibktbd tg tjb [uprbab Kgurt fe 0663.Obcgrb tj`t, jb wgrhbd `s ` i`wybr feL`khsge. Tjb Kjfbc Lustfkb rbprbsbets tjbkbetr`i, gr 0stDfstrfkt. Fe gtjbr r`kbs, ebw-kgabr Lgsf`j Kgiba`e wge ` sb`t ge tjb[uprbab Kgurt `ed fekuaobet [uprbabKgurt Lustfkb Afhb _`edgipj wge rb-bibktfgej`edfiy.

    Egrtj K`rgife`

    Fekuaobet st`tb [uprbab Kgurt Lustfkb^`ui Ebwoy dbcb`tbd kj`iibembr `ppbii`tbLudmb [`a Br vfe FS, mr `edsge gc tjb i`t b[be`tb ]`tbrm`tb Kgaafttbb kj`fra`e [`aBrvfe. Tjb suppgsbdiy egep`rtfs`e r`kb s`w` ciurry gc `dvbrtfsfem p`fd cgr oy gutsfdbfetbrbsts, agst gc ft c`vgrfem Lustfkb Ebwoy._bpuoifk`e grm`efz`tfges, ousfebss `ed kge-sbrv`tfvb mrgups o`khbd Kjfbc Lustfkb Ebwoywjf ib tjb st`tbs Dbagkr`tfk p` rty `ed trf`ii`wybrs suppgrtbd Ludmb Brvfe.

    Gjfg

    Kj`iibembrs uesb`tbd tjb Gjfg [uprbab

    Kgurts igeb Dbagkr`t `ed ` _bpuoifk`elust fkb, ab`efem tjb Kgurt wf ii j`vb ebwc`kbs, out wftj tjb s`ab pgiftfk`i a`hbup._bpuoifk`e [j`rge Hbeebdy, ` Outibr Kguetydgabstfk rbi`tfges ludmb, bedbd Dbagkr`tfkLustfkb Vvbttb AkMbb Orgwes ofd tg sbrvb `euebxpfrbd tbra tjrgumj ?>04. LudmbHbeebdy wfii ebbd tg rue `m`fe fe twg yb`rstg mbt ` cuii, sfx-yb`r tbra. Lustfkb AkMbbOrgwe j`d obbe `ppgfetbd fe ?>0> tg cfii `v` k` ek y ib c t wj be A` urb be GKg eeg robk`ab Kjfbc Lustfkb. Tjb kgurts ebw Dba-gkr`t wfii ob ]fiif`a GEbfii, ` rbtfrbd`ppb`is kgurt ludmb, wjg ob`t _bpuoifk`eLustfkb _gobrt Kupp. _bpuoifk`e Lustfkb Tbr-rbekb GDgeebii rbt`febd jfs sb`t oy dbcb`t-fem Dbagkr`tfk st`tb [be. Afhb [hfedbii fetjb tjfrd r`kb.

    Igufsf`e`

    Eg k`edfd`tb m`rebrbd tjb ebkbss`ry 2>pbrkbet gc tjb vgtb fe Igufsf`e`s [uprbabKgurt r`kb tg cfii tjb sb`t gc rbtfrfem LustfkbHftty Hfao`ii. Tj`t ab`es tjbrb wfii ob `ruegcc bibktfge ge Dbkbaobr : tjobtwbbeDbagkr`t Lgje Afkj`bi Mufdry `ed _bpuoif-k`e Lbcc Jumjbs.

    ]bst Sfrmfef`@ igemtfab ]bst S frm fef` [uprbab Kgur t

    i`w kibrh wfii obkgab fts ebwbst lustfkb.Sgtbrs bibktbd _bpuoi fk`e @iibe Igumjry. Jblgfes Lust fkb _gofe D`vfs, wjg wge rb-bibk-tfge tg tjb st`tbs geiy `ppb`is kgurt. Lustfkb-bibkt Igumjry kjrgefkibd ]bst Sfrmfef`pgiftfk`i kgrruptfge fe ` rbkbet oggh. Tj`trbsb`rkj obk`ab ` a`lgr tjbab fe jfs kgurtk`ap`fme. Tjb Igumjry k`ap`fme `isgrbkbfvbd puoifk ageby crga ` pfigt prgmr`akrb`tbd `s `e `itbre`tfvb tg tr`dftfge`i cued-

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    7/40

    www.LbrbOb`siby_bpgrt.kga =

    r`fsfem. Out tjb [uprbab Kgurt oigkhbd tj`tprgmr`a crga prgvfdfem ddftfge`i cueds fe [bptbaobr ruifem. Tjb twg-sb`t [uprbabKgurt r`kb `isg cb`turbd _bpuoifk`e KfrkuftLudmb Lgje Vgdbr `ed rbkbet [t`tb O`r ^rbsf-dbet Tfsj Kj`cfe, ` Dbagkr`t. Tjbrb `rb cfvbsb`ts ge tjb Kgurt.

    [gurkb< Fesur`ekb Lgure`i

    [R^_BABKGR_T_BLBKT[LGJEJ@EKGKH@^^B@IGSB__BTF_BABET^I@EI@][RFT[

    Tjb R.[. [uprbab Kgurt j`s rbcusbd tgkgesfdbr twg `ppb`is fe ` k`sb wbfmjfem tjb`ofifty gc tbes gc afiifges gc @abrfk`es tgorfem i`wsufts gvbr tjbfr rbtfrbabet pi`es.]ftjgut kgaabet, tjb Jfmj Kgurt ibt st`ed`e @prfi ruifem oy tjb ; rdR.[. Kfrkuft Kgurtgc @ppb`is fe ^jfi`dbipjf` tj`t rbvfvbd p`rtgc ` k`sb `kkusfem Lgje J`ekgkh Ifcb Fesur-`ekb Kg., ` ueft gc K`e`d`s A`euifcb Cfe`e-kf`i Kgrp., gc kj`rmfem bxkbssfvb cbbs ge`eeufty fesur`ekb kgetr`kts fe 4>0(h) pi`es.Fe fts `ppb`i, Lgje J`ekgkh ki`fabd tj`t

    `iigwfem tjb i`wsuft tg prgkbbd kguid dfs-kgur`mb bapigybrs crga sbttfem up rbtfrb-abet pi`es mgvbrebd oy tjb Bapigybb_btfrbabet Fekgab [bkurfty @kt gc 06=4 oydrfvfem up kgsts tg `kkguet cgr iftfm`tfge.

    Lgje J`ekgkh s`fd pi`es uedbr tj`t i`w ferbkbet yb`rs j`vb jbid agrb tj`e $2 trfiifgegc `ssbts kgvbrfem fe bxkbss gc :3 afiifgewgrhbrs. Tjb [uprbab Kgurts dbkfsfge wfi ijbip 4>0(h) p`rtfkfp`ets oy `iigwfem tjba tgsub pi`e prgvfdbrs dfrbktiy, r`tjbr tj`e obfemcgrkbd tg sub fedfvfdu`i bapigybrs fe euabr-gus i`wsufts.

    Fe fts dbkfsfge, tjb ;rdKfrkuft p`rtf`iiy

    rbvbrsbd ` igwbr kgurt dbkfsfge fe cfedfemtj`t cgrabr pi`e obebcfkf`rfbs kguid pursubB_F[@ ki`fas wftjgut cfrst dba`edfem tj`tcued trustbbs t`hb `ktfge `ed `ddfem tjbtrustbbs `s p`rtfbs. Out tjb Kgurt `mrbbd wftjtjb trf`i kgurt tj`t obebcfkf`rfbs kguid egtsub uedbr tjb Fevbstabet Kgap`ey @kt gc064> obk`usb tjby dfd egt fevbst fe tjb cuedstjrgumjgut tjbfr i`wsuft `ed tjbrbcgrb kguidegt `dbqu`tbiy rbprbsbet sfafi`r ^i`fe-tfccs. Tjb pi`e p`rtfkfp`ets `ppb`ibd tj`tp`rt gc tjb dbkfsfge tg tjb [uprbab Kgurt,s`yfem tj`t c`fifem tg `iigw ` prfv`tb k`usb gc`ktfge kgecifktbd wftj tjb FK@s prgvfsfge cgrrbskfssfge `t tjb fest`ekb gc `ey p`rty `ed

    rbkgvbry cgr uelust berfkjabet.Kg-ib`d ^i`fetfcc D`efbiib [`etgabeeg w`s

    `e fevbstgr fe tjb rbibv`et cueds uetfi Lueb?>0>. Kg-ib`d ^i`fetfccs O`ro`r` ^giby `edH`rbe ^giby wbrb fevbstgrs uetfi L`eu`ry?>0>. Tjb ;rd Kfrkuft s`fd b`kj gc tjbai`khbd st`edfem tg sub uedbr tjb FK@ obk`usbtjb sbkged `abedbd kgapi`fet w`s cfibd feGktgobr ?>0>. Tjb R.[. [uprbab Kgurt dfs-`mrbbd. Tjb k`sbs `rb Lgje J`ekgkh Ifcb

    Fesur`ekb Kg. bt `i v. [`etgabeeg bt `i ,

    R.[. [uprbab Kgurt , Eg. 0?-?>?8 `ed [`etg-

    abeeg bt `i v. Lgje J`ekgkh Ifcb Fesur`ekb

    Kg. bt `i, R.[. [uprbab Kgurt, Eg. 0?-?>:.

    [gurkb00 tjbKgurt dbkbrtfcfbd ` ki`ss gc `s a`ey `s 0.2afiifge ]`i-A`rt [tgrbs Fek. cba`ib wgrhbrswjg `kkusbd tjb wgrids i`rmbst rbt` fibr gcof`s fe p`y `ed prgagtfges, s`yfem tjbyr`fsbd tgg a`ey dfc cbrbet ki`fas.

    Fe tjb Kgak`st k`sb, suoskrfobrs ibd oyK`rgifeb Objrbed `kkusbd tjb i`rmbst R.[.k`oib TS kgap`ey, wjfkj fs `isg a`lgrfty

    gwebr gc EOK Refvbrs`i, gc gvbrkj`rmbs tj`trbsuitbd crga Kgak`sts bccgrt tg agegpgifzbtjb a`rhbt fe tjb ^jfi`dbipjf` `rb`. Tjb$:=2 afiifge i`wsuft w`s orgumjt ge obj`icgc ` pgtbetf`i ? afiifge kustgabrs fe ^beesyi-v`ef`, Ebw Lbrsby `ed Dbi`w`rb. Kgak`sts`fd tjb suoskrfobrs wbrb tgg dfccbrbet tg sub`s ` ki`ss, out fe @umust ?>00 tjb ;rdR.[.Kfrkuft Kgurt gc @ppb`is fe ^jfi`dbipjf` s`fd` trf`i ludmb kguid dbkfdb wjbtjbr tjby j`d `kgaage abtjgdgigmy tg lustfcy `w`rdfemd`a`mbs tg ` ki`ss.

    Tjb a`fe fssub, `s cr`abd oy tjb Lustfkbs`jb`d gc gr`i `rmuabets, j`d obbe wjbtjbr

    tjb trf`i ludmb kguid rbiy ge tbstfagey crga`e bxpbrt wftebss cgr tjb suoskrfobrs obcgrbkbrtfcyfem ` ki`ss. Tjb suoskrfobrs i`wybr,O`rry O`rebtt, `ed sgab Lustfkbs summbstbddurfem gr`i `rmuabets tj`t ^jfi`dbipjf`-o`sbd Kgak`st kguid egt prbss tj`t fssubobk`usb ft j`d egt dgeb sg fe tjb igwbrkgurts, `ed tj`t pbrj`ps tjb [uprbab Kgurtsjguid egt ruib ge tjb kgap`eys `ppb`i cgrtj`t rb`sge.

    Fe tjb @ambe k`sb, sj`rbjgidbrs `kkusbdtjb Tjgus`ed G`hs, K`ifc.-o`sbd ofgtbkjegi-gmy kgap`ey gc cr`uduibetiy feci`tfem ftsstgkh prfkb obtwbbe @prfi ?>>4 `ed A`y?>>= oy bx`mmbr`tfem tjb s`cbty gc fts `etf-

    `ebaf` drums @ r`ebsp `ed Bpgmbe. [j`rb-jgidbrs ibd oy tjb Kgeebktfkut _btfrbabet^i`es `ed Trust Cueds sgumjt ki`ss kbrtfcfk`-tfge o`sbd ge tjb cr`ud ge tjb a`rhbttjbgry bedgrsbd oy tjb [uprbab Kgurt fe `06:: k`sb. Tjfs `ssuabs tj`t tjb prfkb gc `stgkh fe `e bccfkfbet a`rhbt rbcibkts `ii puoifkfecgra`tfge, `ed tj`t ` purkj`sbr fs prb-suabd tg j`vb rbifbd ge tjb trutjcuiebss gctj`t fecgra`tfge.

    @ambe s` fd tjb sj`rbjgidbrs sjguid j`vbobbe cgrkbd `t tjb ki`ss kbrtfcfk`tfge st`mb,r`tjbr tj`e `t trf`i, tg prgvb tj`t `iibmbd afs-

    st`tbabets a`tbrf`iiy fec i`tbd tjb kgap`eysstgkh prfkb. Out i`st Egvbaobr, tjb 6tjR.[.Kfrkuft Kgurt gc @ppb`is fe ^`s`dbe`, K`ifc.,ibt tjb ki`ss `ktfge prgkbbd. @ambes i`wybrtgid tjb Kgurt tjb sj`rbjgidbrs k`eegt r`fsbtjb cr`ud ge tjb a`rhbt tjbgry wftjgutsjgwfem a`tbrf`i afsst`tbabets. Ft w`s`rmubd oy tjb i`wybr tj`t @osbet a`tbrf`i-fty, tjb a`rhbt prfkb k`eegt ob prbsuabd tgrbcibkt tjb st`tbabet fe qubstfge.

    Kgak`st `ed @ambe wbrb suppgrtbd fe

    tjbfr `ppb`is oy v`rfgus ousfebss mrgups,fekiudfem tjb R.[. Kj`aobr gc Kgaabrkb, `swbii `s cgrabr kgaafssfgebrs `ed gc cfkf`is `ttjb R.[. [bkurftfbs `ed Bxkj`emb Kgaafs-sfge. Dbkfsfges `rb bxpbktbd oy tjb bed gcLueb ?>0;. Tjb k`sbs `rb Kgak`st Kgrp. bt iv. Objrbed bt `i, R.[. [uprbab Kgurt, Eg.

    00-:348 `ed@ambe Fek. bt `i v. Kgeebktfkut_bt frbabet ^i`es `ed Trust Cueds , R.[.

    [uprbab Kgurt, Eg. 00-0>:2.

    [gurkb< Fesur`ekb Lgure`i

    S.TJB E@TFGE@I

    [KBEB

    TJBKJ@IIBEMB[GC@ [BKGEDTB_ACG_^_B[FDBETGO@A@

    Tjbrb `rb sgab vbry sbrfgus kj`iibembstj`t kgab wftj tjb sbkged tbra cgr ^rbsfdbetGo`a`. Out tjb kj`iibembs jb wfii c`kb `isggccbr sgab mrb`t gppgrtueftfbs cgr tjb ^rbsf-dbet gvbr tjb ebxt cgur yb`rs. Tjbrb k`e ob

    ifttib dguot tj`t ` Aftt _gaeby prbsfdbekywg uid j`v b obbe ` d fs`stb r cg r tj fskguetry. @e @abrfk` uedbr _gaeby wguidj`vb obbe ibss sbkurb, ibss s`cb, dfrtfbr, agrbuelust, agrb uebqu`i `ed dgwerfmjt ab`ebr.Jfs pgst-bibktfge kgaabets j`vb a`db abrb`ifzb bvbe agrb lust jgw o`diy gut gc tgukjwftj pgiftfk`i rb`ifty tjfs a`e rb`iiy fs.

    Ge ` pgsftfvb egtb, ^rbsfdbet Go`a`s rb-bibktfge gccbrs sgab fapgrt`et `ed tfab-krftf-k`i gppgrtueftfbs cgr gur kguetry. Out tjbrb`rb `isg ` euaobr gc pbrfis tj`t i fb fe w`ftfemtj`t aust ob gvbrkgab. Kgemrbssfge`i_bpuoifk`es `ed tjb R.[. Kj`aobr gc Kga-abrkb j`vb sjgwe tjbfr `ofifty durfem tjb

    p`st cgur yb`rs tg sbt aukj gc tjb pgifky`mbed`, bvbe wftj ` pgpui`r ^rbsfdbet fe tjb]j ftb Jgus b. Fc tjb kguetr y fs tg agvbcgrw`rd, tjb Go`a` @dafefstr`tfge aust sbttjb `mbed` cgr tjb ebxt cgur yb`rs.

    F wguid ifhb tg sbb tjb ^rbsfdbet wgrhaukj ifhb Ofii Kifetge dfd durfem jfs sbkgedtbra `ed ob `oib tg ib`vb gccfkb wftj tjb sjfpgc st`tb fe bxkbiibet sj`pb cgr tjb ebxt ^rbsf-dbet. F obifbvb tjfs fs agrb tj`e lust ` pgssf-ofifty. F `a kgevfekbd ft wfii j`ppbe.

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    8/40

    : www.Ob`[email protected]

    FT[TFABCG_TJB^GIFTFK[GCJ@TB@EDDFSF[FGETGBED

    Egw tj`t tjb ^rbsfdbetf`i bibktfge fs gvbr, Fj`d jgpbd tj`t tjb j`tb c`ktgr `m`fest ^rbsf-dbet Go`a`, wjfkj F obifbvb w`s tjb uedbr-iyfem tjbab gc tjb _gaeby-_y`e k`ap`fme,wguid c`db `w`y fetg tjb pgi ftfk`i suesbt.Recgrtue`tbiy, tj`t j`s egt obbe tjb k`sbwftj sgab tgp ibvbi _bpuoi fk`e gpbr`tfvbs.Agst egt`oiy tjgsb fekiudb Dge`id Truap,

    _usj Ifao`umj `ed H`ri _gvb, b`kj gc wjgawfii agst i fhbiy prgcft c fe`ekf`iiy oy kgetfeu-fem tg c`e tjb ci`abs gc j`tb `rgued tjbkguetry. Ft sjguid ob egtbd tj`t egeb gc tjbsbabe wbrb sukkbsscui fe tjbfr bccgrts durfemtjb Mbebr`i Bibktfge. Fe c`kt, b`kj gc tjba,obk`usb gc tjbfr ebm`tfvb `ed afsib`dfemabss`mb, agst ifhbiy jbipbd Dbagkr`ts `t tjbpgiis fe ` euaobr gc r`kbs. F `a kgevfekbdtjby jbipbd rb-bibkt tjb ^rbsfdbet.

    Tjb s`d trutj fs tj`t MG^ k`ap`fmes wbrbo`sbd i`rmbiy ge j`tfem sgab pbrsge grj`tfem sgab tjfem. Cgr bx`apib, igts gctjfems wbrb s`fd `ed `kkus`tfges a`db

    `m`fest ^rbsfdbet Go`a` tj`t wguid ebvbrj`vb obbe a`db `m`fest `ey gtjbr sfttfem^rbsfdbet. Mrgups gc pbgpib wbrb `isgsfemibd gut `ed sbesbibss `kkus`tfges a`dbtjrgumjgut tjb bibktfge prgkbss tj`t wbrbjfmjiy gccbesfvb. Egt geiy w`s `ii gc tjfs s`d`ed dfsjb`rtbefem, ft w`s `isg kguetbrprg-duktfvb cgr tjgsb fe tjb MG^ r`ehs wjgw`etbd tg rue tjbfr k`ap`fmes ge fapgrt`etfssubs `ed `isg w`etbd tg hbbp tjfems ge `jfmj pi`eb. F `a cfraiy kgevfekbd tjb t`ktfksusbd oy tjb Tb` ^`rty c`ktfge gc tjb _bpuoif-k`e ^`rty `ktu`iiy bebrmfzbd tjgsb cgihs wjgsuppgrtbd ^rbsfdbet Go`a` `ed bvbeorgumjt Fedbpbedbets gvbr tg tjb ^rbsfdbet

    ge Egvbaobr 3tjfe sfmef cfk`et euaobrs.Tjb tfab j`s kgab tg put tjb pgiftfks gc

    j`tb `ed dfvfsfge ge tjb sjbic `ed dg ft pbr-a`ebetiy. Tjbrb fs eg pi`kb cgr tjfs sgrt gctjfem fe @abrfk`e pgiftfks. ]b fe @i`o`a`s`w jgw gur st`tb succbrbd durfem tjb d`ys gcr`kf`i sbmrbm`tfge `ed tjb cfmjt cgr Kfvfi_fmjts. F rb`iiy tjgumjt wb j`d ib`rebd guribssge crga tj`t p`fecu i pbrfgd fe gur st`tbsjfstgry, `ed tj`t tjfems wbrb jb`dfem fe tjbrfmjt dfrbktfge. Out tjbe tjb faafmr`tfgeo`ttib bruptbd fe @i`o`a` i`st yb`r. Tjfsuecgrtue`tb dbvbigpabet krb`tbd agrb prgo-ibas cgr gur st`tb. Gur ib`dbrs sjguid kgabtg tjbfr sbesbs `ed `iigw tjb cbdbr`i mgvbre-

    abet tg j`edib tjb faafmr`tfge fssubs. Fprbdfkt tjby wfii rbmrbt tjbfr bccgrts fc tjbykgetfeub tg pgiftfkfzb tjb faafmr`tfge fssub.

    Cfe`iiy, ge tjb e`tfge`i ibvbi, fts jfmj tfabcgr ogtj pgiftfk`i p`rtfbs tg rb`ifzb tj`t tjb@abr fk` e pbgpib dbsbrvb cgr ^rbsfdbetf `ik`ap`fmes tg ob rue ge tjb rb`i fssubs tj`tc`kb gur kguetry. Tjgsb wjg prb`kjbd j`tb`ed dfvfsfge durfem tjfs bibktfge, o`sbd getjb rbsuit, sjguid j`vb ib`rebd tjbfribssge. Tjb pgiftfks gc j`tb `ed dfvfsfge tggh` rb`i ob`tfem fe tjfs bibktfge wjbe tjb @abr-fk`e pbgpib rblbktbd tjfs sgrt gc pgiftfks.

    Jgpbcuiiy, bvbe tjb Tb` ^`rty zb`igts ib`rebd` ibssge, out tj`t rba`fes tg ob sbbe.

    TJBE@TFGE[BKGEGAV]FIIKGETFERBTGFA^_GSB

    F `a kgevfekbd tj`t gekb tjb sjgkh fesgab qu`rtbrs wb`rs dgwe, tjb rb-bibktfge gc^rbsfdbet Go`a` wfii j`vb ` pgsftfvb bccbkt

    ge gur e`tfges bkgegay. @ii ousfebssbs fegur e`tfge wfii tjbe obebcft. Tjb bkgegayw`s `irb`dy jb`dfem fe tjb rfmjt dfrbktfgeobcgrb tjb bibktfge `ed ft egw sjguidfaprgvb `krgss tjb og`rd `t ` agrb r`pfdp`kb. F obifbvb a`ey ousfebss gwebrs wbrbw`ft fem tg sbb jgw tjb ^rbs fdbetf` i r`kbwguid ture gut obcgrb t`hfem ` agrb pgsftfvb`pprg`kj ge fevbstfem fe bxp`esfges `ed`ddfem wgrhbrs.

    F `isg obifbvb tj`t ^rbsfdbet Go`a` `edtjb abaobrs gc Kgemrbss mgt ` abss`mb crgatjb vgtbrs. Tj`t abss`mb w`s wgrh tgmbtjbrtg sgivb tjb a`ey prgoibas tj`t j`vb egtobbe db`it wftj fe ` of-p`rtfs`e a`eebr gvbr

    tjb p`st cgur yb`rs. Fc gur bibktbd ib`dbrs dgtjb rfmjt tjfem, wjfkj ab`es tg kggpbr`tb`ed wgrh tgmbtjbr, wb wfii sbb ` dr`a`tfkupswfem fe gur e`tfges bkgegay. F prbdfkttj`t wb wfii bxpbrfbekb ` spfrft gc kggpbr`-tfge ge krftfk`iiy fapgrt`et a`ttbrs fe ]`sj-femtge st`rtfem faabdf`tbiy. Tjgsb fe gurE`tfges K`pftgi k`e fii `ccgrd tg dg gtjbr-wfsb. Fc tjby wf ii put p`rtfs`e pgiftfks `sfdb,`ed wgrh tgmbtjbr, ft wfii ob mrb`t ebws cgr@abrfk`.

    Ge tjb gtjbr j`ed, fc tjb ib`dbrsjfp gc tjbR.[. Jgusb gc _bprbsbet`tfvbs kgetfeubs tgrbcusb tg wgrh wftj tjb ^rbsfdbet, ft wfii egtgeiy jurt @abrfk`, ft wfii d`a`mb tjba pgift-

    fk`iiy. Tjgsb fe tjb Jgusb wfii j`vb tg c`kbtjb vgtbrs fe tjb afd-tbra Kgemrbssfge`ibibktfges. Fc ygu `mrbb tj`t Dbagkr`ts `ed_bpuoifk`es fe ]`sjfemtge sjguid wgrhtgmbtjbr cgr ` kj`emb, kget`kt tjb ^rbsfdbet`ed abaobrs gc tjb R.[. Jgusb `ed [be`tb`ed ibt tjba hegw jgw ygu cbbi.

    SFGIBETK_FAB[GETJB_F[BFEREFTBD[T@TB[

    Tjb rbpgrt gc krfab fe tjb R.[. rbib`sbdi`st agetj oy tjb Ourb`u gc Lustfkb [t`tfstfksfs egt mggd ebws cgr tjb @abrfk`e

    pbgpib. @kkgrdfem tg tjb rbpgrt, vfgibetkrfab r`tbs `krgss tjb R.[. luapbd oy `ogut0: pbrkbet, `ed prgpbrty krfabs rgsb oy 00pbrkbet obtwbbe ?>0> `ed ?>00. Tjfs f s tjbcfrst fekrb`sb cgr ogtj krfab k`tbmgrfbs sfekb066;, `kkgrdfem tg tjb rbpgrt betftibd Krfaf-e`i Sfktfafz`tfge ?>00. @ss`uits, wjfkj`kkguetbd cgr :3 pbrkbet gc `ii vfgibet vfk-t fafz`t fge fe ?>00, fekrb`sbd oy ??pbrkbet. Tjb rbpgrt cgued tjbrb w`s eg st`-tfstfk`iiy sfmefcfk`et kj`emb fe tjb euaobr gcsbrfgus vfgibet vfktfafz`tfges crga ?>0> tg?>00. [brfgus vfgibet vfktfafz`tfges fe ?>00

    fekiudbd `e bstfa`tbd ?44,>>> r`pbs grsbxu`i `ss`uits, 22=,>>> rgoobrfbs, `ed 0.0afiifge `mmr`v`tbd `ss`uits. Tjb cgiigwfem`rb tjb gtjbr cfedfems `ed kgekiusfgesrb`kjbd fe tjb rbpgrt0> `ed ?>00, tjb r`tbgc sfapib `ss`uit fekrb`sbd oy ?0 pbrkbet,

    crga 0?.= tg 02.; vfktfafz`tfges pbr 0,>>>pbrsges. Tjb r`tb gc `mmr`v`tbd `ss`uitwbet up si fmjtiy, crga ;.4 tg 4.0 vfktfafz`-tfges pbr 0,>>> pbrsges. Tjb rbpgrt `isgcgued tj`t gvbr tjb tbe-yb`r pbrfgdobtwbbe ?>>? `ed ?>00, tjb r`tb gc vfgibetkrfab dbkifebd ;> pbrkbet `ed tjb r`tb gcsbrfgus vfgibet kr fab dbki febd ?:pbrkbet. Tjb kj`emb fe ogtj tjb euaobr`ed r`tb gc vfgibet krfab vfktfafz`tfgesv`rfbd oy tjb typb gc vfgibekb.

    Tgt`i dgabstfk vfgibet vfktfafz`tfges, gr

    krfabs kgaafttbd oy c`afiy abaobrs `edfetfa`tbs, fekrb`sbd sifmjtiy crga 0.0

    afiifge fe ?>0> tg 0.4 afiifge dgabstfkvfgibet vfktfafz`t fges fe ?>00. Jgwbvbr,tjb rbpgrt cgued eg ab`sur`oib kj`embobtwbbe ?>0> `ed ?>00 w`s dbtbktbd cgrsbrfgus dgabstfk vfgibekbdgabstfk vfg-ibekb fevgivfem r`pb, rgoobry, gr `mmr`-v`tbd `ss`uit . F e `ddft fge, eg ab`sur`oibkj`emb w`s dbtbktbd fe fetfa`tb p`rtebrvfgibekb gr sbr fgus fet fa`tb p`r tebr vfg -ibekb durfem tjfs pbrfgd. Eg ab`sur`oibkj`emb w`s dbtbktbd cgr sbrfgus vfgibetkrfabs fevgivfem wb`pges gr krfabsfevgivfem felury tg tjb vfktfa.

    Tjb tgt`i euaobr gc prgpbrty vfktfa fz` -

    tfges `isg fekrb`sbd oy 00 pbrkbet obtwbbe?>0> `ed ?>00, crga 02.4 afiifge tg 0=.0afiifge vfktfafz`tfges. Durfem tjb s`abpbrfgd, tjb rbpgrt st`tbs tj`t tjb euaobrgc ourmi`ry vfktfafz`tfges fekrb`sbd 04pbrkbet, crga ;.? afiifge tg ;.3 afiifgevfkt fa fz`t fge s. Tjbc t fekrb`sbd oy 0.?afiifge vfktfafz`tfges, crga 00.3 afiifgevfktfafz`t fges fe ?>0> tg 0?.: afii fge fe?>00. Tjb euaobr gc agtgr vbjfkib tjbctsrba`febd stb`dy gvbr tjfs pbrfgd wftj3?:,>>> vfktfafz`tfges gkkurrfem fe ?>00.

    [fafi` r tg tjb fekrb`sb fe tjb euaobr gcprgpbrty krfabs, tjb vfktfafz`tfge r`tb cgr

    prgpbrty krfab `isg fekrb`sbd oy 00pbrkbet obtwbbe ?>0> `ed ?>00, crga0?2.4 tg 0;:.= vfktfafz`tfges pbr 0,>>>jgusbjgids. Jgusbjgid ourmi`ry fekrb`sbd04 pbrkbet, crga ?2.: tg ?6.4 vfktfafz`-tfges pbr 0,>>> jgusbjgids, `ed tjbctfekrb`sbd 0> pbrkbet, crga 64.3 tg 0>4.?pbr 0,>>> jgusbjgids. Eg ab`surb`oibkj`emb gkkurrbd fe tjb r`tb gc agtgrvbjfkib tjbct obtwbbe ?>0> `ed ?>00.

    Gvbr tjb tbe-yb`r pbrfgd obtwbbe ?>>?

    `ed ?>00, tgt`i prgpbrty krfab dbkifebd 0:

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    9/40

    www.LbrbOb`siby_bpgrt.kga 6

    pbrkbet8 jgwbvbr, tjbrb j`s obbe egkj`emb fe tjb ourmi`ry r`tb.

    Tjb rbpgrt cgued tj`t a`ibs j`d ` jfmjbr

    r`tb gc tgt`i vfgibet vfktfafz`tfge tj`ecba`ibs fe ?>00.

    Crga ?>0> tg ?>00, wjftb ege-Jfsp`efks

    `ed Jfsp`efks bxpbrfbekbd `e fekrb`sb fevfgibet vfkt fa fz `t fge r` tb s, wj fib tjbvfgibet vfk tfafz`t fge r`tb cgr oi`kh ege-

    Jfsp`efks w`s st`oib.

    Mbebr`iiy, tjb rbpgrt st`tbs tj`t pbrsges

    `mb ?4 gr yguembr j`d jfmjbr vfgibet vfk-tfafz`tfge r`tbs tj`e gidbr pbrsges.

    Crga ?>0> tg ?>00, pbrsges wjg wbrba`rrfbd bxpbrfbekbd `e fekrb`sb fe vfgibet`ed sbrfgus vfgibet vfktfafz`tfge.

    Crga ?>0> tg ?>00, rbsfdbets fe tjb Afdwbst`ed ]bst bxpbrfbekbd ` sifmjt fekrb`sb fetgt`i vfgibekb. Eg dfccbrbekbs wbrbdbtbktbd cgr rbsfdbets fe tjb Egrtjb`st gr[gutj. Fe ?>00, rbsfdbets fe tjb Egrtjb`st`ed [gutj bxpbrfbekbd igwbr r`tbs gc vfg-

    ibekb kgap`rbd tg tjb Afdwbst `ed ]bst.

    ^brsges crga tjb suouros bxpbrfbekbd `efekrb`sb fe vfgibet krfab crga ?>0> tg?>00. @s w`s tjb k`sb fe ?>0>, uro`e rbsf-dbets j`d jfmjbr r`tbs gc sbrfgus `ed tgt`ivfgibekb tj`e suouro`e `ed rur`i rbsfdbetsfe ?>00.

    Tjb @abrfk`e pbgpib `rb betftibd tg obs`cb `ed sbkurb fe tjbfr jgabs `ed fe tjbwgrh pi`kb. Out fts quftb `pp`rbet tj`t sukjfs egt tjb k`sb tgd`y. Ebftjbr sjguid p`rbetsj`vb tg wgrry `ogut tjb s`cbty gc tjbfr kjfi-drbe fe tjb skjggis. ]b j`vb igts gc wgrh tg

    dg fe tjb R.[. tg ogtj prbvbet `ed kgao`tkrfab. _bm`rdibss gc wj`t tjb E_@ `ed tjbTb` ^`rty zb`igts s`y, wb ebbd sbesfoib muekgetrgi fe tjfs kguetry `t ogtj tjb cbdbr`i`ed st`tb ibvbis. @isg, egogdy k`e s`y tj`t `kgekbrtbd bccgrt tg kgao`t fiibm`i drum s`ibs`ed usb fs egt o`diy ebbdbd. Kib`riy, tjfs fs `a`lgr prgoiba tj`t `ccbkts tjb ibvbi gc vfgibetkrfab fe tjb R.[. ]b aust `ii wgrh tgmbtjbrge tjbsb krftfk`iiy fapgrt`et fssubs. Tjbcuturb gc gur e`tfge fs `t st`hb.

    [gurkb< Ourb`u gc Lustfkb [t`tfstfks

    AFEEB[GT@[BTTIB[I@[T;2] O_FDMBK@[B

    Afeebsgt`s cfvb-yb`r ibm`i o`ttib gvbr tjbkgii`psbd Fetbrst`tb ;2] orfdmb j`s bedbdwftj `e $: .6 af ii fge sbt tibabet fevgivfemL`kgos Bemfebbr fem Mrgup, Fek., ` K`i fcgref`dbsfme cfra, wjfkj p`fd fts cfe`i fest`iiabetge Egvbaobr0;tj. Tjb sbttibabet fs sbbe `s` cfe`i kj`ptbr fe tjb ;2] ibm`i s`m` `ed beds`ii iftfm`tfge db`ifem wftj tjb kgii`psb gc tjb;2] orfdmb.

    ]jfi b tjb sb tt ibabet w`s rb`kjbd feGktgobr, ft w`set puoifkfzbd uetfi afd-

    Egvbaobr. Tjb @ssgkf`tbd ^rbss ib`rebd gctjb sbttibabet tjrgumj ` dfskigsurb gcpbedfem k`sbs tjb st`tb a`hbs `jb`d gc ogeds`ibs. @s ygu a`y rbk`ii, 0; pbgpib dfbd `ed042 agrb wbrb felurbd wjbe tjb jfmjw`yorfdmb oukhibd `ed cbii fetg tjb Afssfssfppf_fvbr durfem e @umust rusj-jgur.

    L`kgos i`wybrs kgetbedbd tj`t st`tb i`wput ` tbe-yb`r ifaft ge i f`ofifty `ed egtbd tjbst`tb j`d ` 063? kgetr`kt wftj tjb orfdmbsdbsfmebr, ` egw-dbcuekt kgap`ey tj`t L`kgos

    `kqufrbd fe 0666. Out st`tb kgurts ibt tjbi`wsuft prgkbbd. Tjb R.[. [uprbab Kgurtturebd dgwe tjb kgap`eys cfe`i `ppb`i feA`y. Tjb sbttibabet ageby wfii mg fetg tjbst`tbs mbebr`i cued. Ifhb gtjbrs, tjb i`tbstsbttibabet jbipbd rbfaoursb Afeebsgt` t`x-p`ybrs cgr tjb F-;2] [urvfvgr Kgapbes`tfgeCued.

    Cbdbr`i fevbstfm`tgrs dbtbrafebd `e grfmf-e`i dbsfme ci`w w`s ` hby c`ktgr tj`t dggabdtjb orfdmb. @ctbr tjb kgii`psb, tjb st`tb `isgsubd R_[ Kgrp., `e bemfebbrfem kgap`eytj`t w`s bv`iu`tfem tjb orfdmb obcgrb ftcbii. Tjb p`rtfbs sbttibd tj`t k`sb cgr $2

    afiifge. [bp`r`tb crga fts st`tb p`yabet, R_[sbttibd i`wsufts orgumjt oy survfvgrs `ed tjbc`afifbs gc tjgsb hfiibd cgr agrb tj`e $2?afiifge. Tjb st`tb `isg j`d sbt up tjb spbkf`i$;3.3 afiifge kgapbes`tfge cued cgr tjgsbfap`ktbd oy tjb orfdmb kgii`psb.

    [gurkb>3 uet fi?>>:.

    CB_K j`s egtfcfbd tjb o`eh gc tjb prg-pgsbd pbe`itfbs. O`rki`ys s`ys ft wfii vfmgr-gusiy dbcbed tjfs a`ttbr. Tjb fevbstfm`tfgew`s cf rst `eeguekbd fe @pr fi , `i ibm fem tjbo`eh tggh suost`etf`i bibktrfkfty a`rhbt pgsf-tfges tg agvb d`fiy fedbx sbttibabets. FeA`rkj, tjb `mbeky cfebd Kgestbii`tfge Bebrmy` rbkgrd $?42 afiifge gvbr pgwbr a`rhbta`efpui`tfge `ktfvftfbs `s p`rt gc ` crbsjkr`khdgwe ge pgwbr a`rhbt rfmmfem. TjbEbw KBG `t O`rki`ys, @etgey Lbehfes, tgghgvbr `t tjb bed gc Luiy wjbe jfs prbdbkbssgrOgo Df`aged quft `ctbr tjb o`eh `dafttbdrfmmfem Ifogr fetbrbst r`tbs. Lbehfes fs fe tjb

    afdst gc ` rbvfbw tg kj`emb tjb kuiturb `t tjbo`eh `ed ifct prgcft`ofifty. Tjfs fs skjbduibdtg ob uevbfibd fe Cboru`ry gc ?>0;.

    Fevbstgrs j`vb a`db ft kib`r tjby w`et `rbture ge bqufty `ogvb tjb kgst gc bqufty,jfmjbr dfvfdbeds, `ed cgr p`y tg ob kut,`kkgrdfem tg Lbehfes. Tj`t fs bxpbktbd tgab`e tjb fevbstabet o`eh `ra wfii ob sfmefc-fk`etiy kut o`kh. Tjb o`eh s`ys ft j`s cfrbdst`cc, sigwbd dgwe o`kh p`y `ed t`hbe gtjbrdfskfpife`ry `ktfge `c tbr ` vbry rfmgrgusfetbre`i fevbstfm`tfge fetg tjb Ifogr a`efpu-i`tfge. O`rki`ys w`s cfebd $42> afiifge oyR.[. `ed RH rbmui`tgrs cgr tjb r`tb rfmmfem.Agrb tj`e ` dgzbe gtjbr o`ehs `rb bxpbktbd

    tg ob cfebd.[gurkb< _butbrs

    J[OK A@VC@KBR.[. AGEBVI@REDB_FEMCFEB[TGT@IFEM$0.2 OFIIFGE

    Ft w`s rbpgrtbd rbkbetiy tj`t ` R.[. cfeb cgrvfgi`tfem cbdbr`i `etf-ageby i`uedbrfem i`wskguid kgst J[OK Jgidfems, Burgpbs ofmmbsto`eh, sfmefcfk`etiy agrb tj`e $0.2 ofiifge. Ftw`s ` isg s`fd tj`t krfafe`i kj`rmbs kguid obfevgivbd `s wbii. J[OK tgid _butbrs tj`t tjbR.[. fevbstfm`tfge j`d d`a`mbd tjb o`ehs

    rbput`tfge `ed cgrkbd ft tg sbt `sfdb `e `ddf-tfge`i $:>> afiifge tg kgvbr ` pgtbetf`i cfebcgr orb`kjbs fe `etf-ageby i`uedbrfem kge-trgis fe Abxfkg `ed gtjbr vfgi`tfges. Ft sjguidob egtbd tjfs prgvfsfge w`s fe `ddftfge tg tjb$=>> afiifge tjb o`eh put `sfdb fe Luiy. KjfbcBxbkutfvb [tu`rt Muiifvbr s`fd tjfs `aguetkguid ob sfmefcfk`etiy j fmjbr, `ddfem tj`ttjb i`tbst prgvfsfge w`s o`sbd ge dfskussfgeswftj tjb v`rfgus R.[. `utjgrftfbs fevgivbd fetjb prgob.

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    10/40

    0> www.Ob`[email protected]

    @ R.[. [be`tb rbpgrt fe Luiy krftfkfzbd J[OKcgr ibttfem kifbets sjfct pgtbetf`iiy fiifkft cuedscrga kguetrfbs sukj `s Abxfkg, Fr`e, tjbK`ya`e Fsi`eds, [`udf @r`of` `ed [yrf`. J[OKj`d `dafttbd b`rifbr fe tjb yb`r tj`t ft kguidc`kb krfafe`i gr kfvfi kj`rmbs `s p`rt gc tjbfevbstfm`tfge. Tjb Igedge-o`sbd o`eh s`fdtj`t tjb fssub w`s sj`abcui `ed bao`rr`ss-fem `ctbr ` rbpgrt oy Kgemrbss ^bra`ebet[uokgaafttbb ge Fevbstfm`tfges krftfkfzbd `pbrv`sfvbiy pgiiutbd kuiturb. Tjb rbpgrt

    s`fd J[OKs Abxfk`e gpbr`tfges j`d agvbd$= ofiifge fetg fts R.[. gpbr`tfges obtwbbe?>>= `ed ?>>:. Sgiuab tj`t i`rmb summbstbdft fekiudbd fiibm`i e`rkgtfks prgkbbds, `kkgrd-fem tg tjb rbpgrt. Muiifvbr, tjb KBG, s`fd> tg ?>>: ->6 pbrfgd tj`t j`vb sur-c`kbd egw tj`t tjb fedustry ebbds tg

    sgr t gut , rbabdf`tb , `ed a`hb surb

    dgbset j`ppbe `m`fe. Ft wfii t`hb `

    kjueh gc tfab tg kib`e tjb systba `ed

    tjbe ft wfii t`hb ` ifttib oft igembr tj`e

    tj`t cgr trust tg ob rbstgrbd agrb cuiiy.

    J[OK rbpgrtbd `e uedbriyfem prgcft`ctbrstrfppfem gut tjb fap`kt gc dfspgs`is `edkj`embs fe tjb v`iub gc fts gwe dbotfe tjbLuiy-[bptbaobr qu`r tbr gc $2.> ofi ifge, upcrga ` rbvfsbd $?.? ofiifge ` yb`r b`rifbr. Tjbcfe`ekf`i pfkturb w`s jbipbd oy ` ofmmbr-tj`e-bxpbktbd drgp fe igssbs crga o`d dbots

    `ed ` sgifd pbrcgra`ekb oy fts fevbstabeto`eh `ra. Redbriyfem gpbr`tfem bxpbesbsrgsb oy 03 pbrkbet fe tjb qu`rtbr crga ` yb`r`mg dub tg jfmjbr kgapif`ekb `ed rbmui`tgrykgsts, wjfkj ft s`fd `aguetbd tg $?>> afiifgetg $;>> afiifge.

    J[OK tggh `egtjbr $;2= afiifge kj`rmb cgrafs-sbiifem p`yabet prgtbktfge fesur`ekb feOrft`fe, ifc tfem tjb tgt`i `aguet sbt `sfdb tg$?.0 ofiifge. Tjb o`eh s`fd ft p`fd gut $0ofiifge fe kgapbes`tfge. @kkgrdfem tgMuiifvbr, agrb lgo kuts wbrb ifhbiy obcgrb tjbbed gc ?>0; `t jfs o`eh. Gvbr tjb p`st twgyb`rs, J[OK j`s kut `iagst ;>,>>> lgos. Ftwf ii ob fetbrbstfem tg sbb jgw `i i gc tj fs

    wgrhs gut.

    [gurkb< _butbrs

    LR[TFKBDB^@_TABET[RB[O@EHGC@AB_FK@CG_AG_TM@MBC_@RD

    Cbdbr`i gccfkf`is j`vb cfibd ` $0 ofiifgei`wsuft `m`fest O`eh gc @abrfk` cgr dbcr`ud-fem tjb Cbdbr`i E`tfge`i Agrtm`mb @ssgkf`-tfge (C`eefb A`b) `ed tjb Cbdbr`i Jgab Ig`eAgrtm`mb Kgrpgr`tfge (Crbddfb A`k). Tjbkgapi`fet, cfibd fe cbdbr`i kgurt fe A`ej`t-t`e, `iibmbs tj`t O`eh gc @abrfk` `ed fts prb-

    dbkbssgrKguetrywfdb Cfe`ekf`ifapib-abetbd ` ebw ig`e grfmfe`tfge prgkbss k`iibdtjb Justib, wjfkj w`s fetbetfge`iiydbsfmebd tg prgkbss ig`es `t jfmj spbbd `edwftjgut qu`i fty kjbkhpgfets.

    Ft w`s `iibmbd curtjbr tj`t tjb Justibmbebr`tbd tjgus`eds gc cr`uduibet `ed gtjbr-wfsb dbcbkt fvb rbs fdbetf `i agr tm`mb ig`essgid tg C`eefb A`b `ed Crbddfb A`k tj`t i`tbrdbc`uitbd. Tjfs w`s s`fd tg j`vb k`usbd gvbr$0 ofiifge dgii`rs fe igssbs `ed kguetibss cgrb-kigsurbs. Tjfs fs tjb cfrst kfvfi cr`ud suft

    orgumjt oy tjb Dbp`rtabet gc Lustfkb kge-kbrefem agrtm`mb ig`es sgid tg C`eefb A`b grCrbddfb A`k. ^rbbt Oj`r`r`, R.[. @ttgreby feA`ej`tt`e, j`d tjfs tg s`y `ogut tjb i`wsuft pbrkbet gc k`sbspursubd uedbr tjb C`isb Ki`fas @kt `rb feftf-`tbd oy wjfstiboigwbrs. Tjb C`isb Ki`fas @kt

    `isg prgtbkts `ed rbfaoursbs wjfstiboigwbrscgr tjbfr kgur`mb `ed fetbmrfty fe kgafemcgrw`rd wftj bvfdbekb gc kgrpgr`tb wrgem-dgfem `ed/gr cr`uduibet kgedukt `ed cgr p`r-tfkfp`tfem fe tjb prgkbss gc pursufem ` C`isbKi`fas @kt k`sb fe kgurt.

    Puf t`ai`wsufts k`e ob orgumjt `m`fest`ey grm`efz`tfge, bvbe mgvbreabet betftfbs,tj`t vfgi`tb ` i`w gr rbmui`tfge. ^j`ra`kbutf-k`i cr`ud j`s obkgab tjb agst kgaage typbgc cr`ud pursubd uedbr tjb C`isb Ki`fas@kt. @ rbkbet ^uoifk Kftfzbe study mr`pjfk`iiyfiiustr`tbs jgw pj`ra`kbutfk`i fedustry

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    11/40

    www.LbrbOb`siby_bpgrt.kga 00

    cr`ud `m`fest tjb mgvbreabet j`s rb`kjbdbpfdbafk prgpgrtfges, bed`embrXfemQ puoifks`cbty `ed rgoXofemQ tjb mgvbreabet gcfekrb`sfemiy sk`rkb st`tb `ed cbdbr`irbsgurkbs. @kkgrdfem tg tjb ebw study, tjbwgrst gccbedbrs fekiudb sgab gc tjb ofmmbstkgap`efbsMi`xg[aftjHifeb, ^cfzbr `ed BifIfiiy, wjfkj j`vb p`fd $04.: ofiifge fe pbe` i-tfbs stbaafem crga 0?0 sbttibabets obtwbbe?>>3 `ed ?>0> `igeb. Tjb study `isg cguedtj`t cgrabr drum kgap`ey bapigybbs-turebd-

    wjf stiboigwbrs wjg cf ibd quf t`a`ktfgeswbrb `e bssbetf`i kgapgebet fe tjb i`rmbsteuaobr gc cbdbr`i sbttibabets gvbr tjb p`sttbe yb`rs.

    Gtjbr kgaage typbs gc cr`ud `rb mgvbre-abet jb`itjk`rb cr`ud, dbcbesb kgetr`ktgrcr`ud `ed rb`i prgpbrty cr`ud. Fc ygu `rb`w`rb gc `ey kgrpgr`tb wrgemdgfem, gr `eypgssfoib cr`uduibet `ktfvfty, wb bekgur`mbygu tg kget`kt ` i `wybr faabdf`tbiy. Fc yguj`vb sbbe gr `rb `w`rb gc `ey pgtbetf`iiycr`uduibet obj`vfgr tj`t kguid ob kgstfem tjbmgvbreabet ageby, ygu j`vb tjb rfmjt tgbxpgsb ft. Eg a`ttbr wjg ygu `rb, wjbtjbr

    ygu `rb ` jfmj- r` eh fem gc cf kf `i wftj fe `kgap`ey, `e bapigybb gr bvbe ` oyst`edbrwjg obkgabs `w`rb gc kgrpgr`tb afskge-dukt gr pgtbetf`i cr`ud, ft fs bxtrbabiy fapgr-t `e t tj` t ygu sbbh hegwibdmb`o ibrbprbsbet`tfge sjguid ygu dbkfdb tg mgtjrgumj tjb prgkbss gc ` quf t`ak`sb. Cfifem` quf t`a cr`ud i`wsuft, sukj `s `m`fest `pj`ra`kbutfk`i a`euc`kturbr, fs kgapifk`tbd`ed rbqufrbs ibm`i prgcbssfge`is wftj bxpbrf-bekb fe db`ifem wftj tjb kgap`efbs tj`t pbr-pbtr`tb tjb cr`ud.

    ]b j`vb wr fttbe gvb r tjb p`st sbvbr `iagetjs `ogut k`sbs orgumjt oy wjfstiboigw-brs `ed mbebr`iiy fe b`kj k`sb ` i`rmb kgrpg-

    r`tfge w`s mufity gc cr`uduibet kgedukt.Gctbetfabs, tjb `ktu`i wjfstiboigwbr fsj`rdiy abetfgebd gtjbr tj`e tg s`y jb gr sjbrbpgrtbd tjb o`d kgedukt `ed cfibd suft uedbrtjb C`isb Ki`fas @kt. Fe tjgsb k`sbs, Dbcbesbi`wybrs ifhb tg fapiy gr `ktu`iiy s`y tj`t tjbwjfstiboigwbr fs lust fe ft cgr tjb ageby.]j`t fs vfr tu`i iy uehegwe oy tjb puoifk `edbvbe oy lurgrs jb`rfem ` k`sb fs tj`t tjb wjfs-tiboigwbrs tjbasbivbs gc tbe suc cbr obk`usbtjby rbpgrtbd kgrpgr`tb wrgemdgfem. Tj`tswjy b`kj wjfstiboigwbr aust ob prgtbktbdcrga rbt`if`tfge `ctbr tjby rbpgrt wrgemdgfemoy bapigybrs. Recgrtue`tbiy, tj`t j`set`iw`ys obbe tjb k`sb. Tjb rgib gc kgrpgr`tb

    wjfstiboigwbrs fs tgg fapgr t`et tg `i igwtjba tg ob jurt obk`usb gc tjbfr dbkfsfge tgrbpgrt wrgemdgfem.

    ^CF\B_T@HB[$460 AFIIFGEKJ@_MBCG__@^@AREBC@I[BKI@FA[@KT[BTTIBABET

    ^cfzbr j`s dfskigsbd tj`t ft j`s t`hbe ` $460afiifge kj`rmb tg sbttib tjb _`p`aueb C`isbKi`fas @kt k`sb `m`fest ft. Tjb kgap`ey j`s`e `mrbbabet wftj tjb Lustfkb Dbp`rtabet tg

    sbttib ]ybtjs jfstgrfk`i prgagtfge`i pr`k-tfkbs fe kgeebktfge wftj _`p`aueb, wjfkj fs`e grm`e tr`espi`et drum. @s ygu a`y rbk`ii,^cfzbr `kqufrbd ]ybtj fe ?>>6.

    Tjb quf t`ai`wsuft w`s cfibd oy A`ribeb[`edibr `ed [kgtt ^`rfstwg cgrabrbapigybbs `t ]ybtj. Tjb i`wsuft `iibmbstj`t ]ybtj bem`mbd fe fiibm`i gcc-i`obi a`r-hbtfem gc _`p`aueb. [`edibr `ed ^`rfs `rbobfem rbprbsbetbd oy Lgje H`frfs, Tr`kfMgfes `ed @iibss`edr` ^jfiifips, wjg `rb

    i`wybrs wftj Mr`et & Bfsbejgcbr, ` cfraigk`tbd fe ]fiafemtge, Dbi.

    [gurkb< Kgrpgr`tb Krfab _bpgrtbr

    OGBJ_FEMB_FEMBIJBFA^J@_A@KBRTFK@I[TG^@V$62 AFIIFGETG[BTTIBC@I[BKI@FA[@KTKJ@_MB

    Ogbjrfembr Fembijbfa ^j`ra`kbutfk`iswfi i p`y $62 afi ifge tg sbttib ` C`isb Ki`fas@kt kj`rmb orgumjt tg tjb mgvbreabets`ttbetfge oy ` s`ibs rbprbsbet`tfvb-turebd-wjfst iboigwbr. Tjb wjf stiboigwbr, _gobrtJbfdbe, wjg cfibd ` wjfstiboigwbr i`wsuft fe?>>2, dbt`fibd `iibm`tfges fe tjb i`wsuft`ogut Ogbjrfembr Fembijbfas hfkho`kh prg-mr`as `ed gcc-i`obi a`rhbtfem gc kbrt`fedrums cgr ue`pprgvbd usbs. Jbfdbe wfiirbkbfvb ` $0= afiifge cbb uedbr tjb @kt cgrorfemfem tjb k`sb tg tjb mgvbreabets `ttbe-tfge. _gd L. _gsbestbfe, R.[. @ttgreby cgr tjbDfstrfkt gc A`ryi`ed, j`d tjfs tg s`y2, tjb CD@ rbqufrbd Egv`rtfs tgput ` Oi`kh Ogx ]`refem ge Bifdbi p`kh`m-fem, w`refem pjysfkf`es `ed kgesuabrs tj`tkbrt`fe k`ekbrs fe fec`ets wbrb `ssgkf`tbdwft j tjb usb gc Bi fd bi . Fe tjb i` ws uftM`iafebs `iibmbd tj`t Egv`rtfs rbqufrbd ftss`ibs cgrkb tg a`rhbt Bifdbi cgr euabrguskgedftfges gtjbr tj`e bkzba`, `ed tj`t ftp`fd pjysfkf`es hfkho`khs tg bekgur`mb

    tjba tg dg sg.Tjb R.[. Dbp`rtabet gc Lustfkb bibktbd egt

    tg fetbrvbeb fe tjb ^beesyiv`ef` kgapi`fetcfibd oy M`iafebs. Out M`iafebs dbkfdbd tgprgkbbd wftj tj`t k`sb ge obj`ic gc tjbReftbd [t`tbs `ed sbvbr`i st`tbs, fekiudfemK`ifcgref`, A`ss`kjusbtts, Sfrmfef`, Fiifegfs,`ed Afkjfm`e. Jfs kgapi`fet feft f` i iyfekiudbd ki`fas ge obj`ic gc tjb [t`tb gcTbx`s, out tjgsb ki`fas wbrb vgiuet`rfiy dfs-afssbd. [uosbqubet bvbets ibd tg tjb Tbx`ssbttibabet. Tj`t sbttibabet prgvfdbs cgrp`yabet gc `ttgreby cbbs tg tjb [t`tb gcTbx`s ed ibm`i kguesbi cgr M`iafebs, s wbii

    `s cgr ` rbkgvbry gc ` sj`rb gc tjb sbttibabettg M`iafebs pursu`et tg tjb Tbx`s Abdfk`fdCr`ud ^rbvbetfge @kt, wjfkj prgvfdbs tj`t `wj fs ti boigwbr sukj `s M` ia fe bs fs p` fdobtwbbe 02 pbrkbet `ed ?2 pbrkbet gc sukj `sbttibabet. M`iafebs fs rbprbsbetbd oy Lbe-efcbr Sbrh`ap `ed _fkh Agrm`e, i`wybrswftj tjb cfra gc Agrm`e Sbrh`ap, igk`tbd feKfekfee`tf, Gjfg. Tjby dfd ` vbry mggd lgofe tjfs k`sb.

    [gurkb< Kgrpgr`tb Krfab _bpgrtbr

    LR[TFKBDB^@_TABETLGFE[C@I[BKI@FA[@KT

    I@][RFT@M@FE[TT_F^IBK@EG^VTjb Lustfkb Dbp`rtabet j`s lgfebd ` wjfs-

    tiboigwbr i`wsuft `m`fest dbcbesb kgetr`ktgrTrfpib K`egpy. Tjb i`wsuft w`s cfibd fe ?>00oy Ga`r O`dr, ` cgrabr Trfpib K`egpybapigybb. Jb ki`fas tj`t tjb kgap`ey suo-afttbd c`isb ki`fas cgr uequ`ifcfbd sbkurftymu`rds uedbr ` kgetr`kt tg prgvfdb sbkurftyfe Fr`q.

    Fe Lueb ?>>6, tjb Lgfet Kgetr`ktfemKgaa`ed fe Fr`q/@cmj`efst`e (LKK-F/@)`w`rdbd Trfpib K`egpy ` geb-yb`r, $0>afiifge kgetr`kt tg pbrcgra ` v`rfbty gc sbku-rfty sbrvfkbs `t @i @s`d @fro`sbtjb sbkged

    i`rmbst `fr o`sb fe Fr`q. Tjb LKK-F/@ w`sbst`oifsjbd oy R.[. Kbetr`i Kgaa`ed feEgvbaobr ?>>4, tg prgvfdb kgetr`ktfemsuppgrt rbi`tbd tg tjb mgvbreabets rbifbc`ed rbkgestruktfge bccgrts fe Fr`q. Cbdbr`igccfkf`is `iibmbd tj`t Trfpib K`egpy hegw-femiy ofiibd tjb Reftbd [t`tbs cgr juedrbds gccgrbfme e`tfge`is ft jfrbd `s sbkurfty mu`rdswjg kgu id egt abbt cf rb` ras prgcfkfbekytbsts bst`oifsjbd oy tjb @ray `ed wjfkjwbrb rbqufrbd uedbr tjb kgetr`kt.

    Tjb tbsts besurb tj`t sbkurfty mu`rds jfrbdtg prgtbkt R.[. `ed `iifbd pbrsgeebi `rb

    k`p`oib gc cfrfem tjbfr @H-4= ss`uit rfcibs edgtjbr wb`pges s`cbiy `ed `kkur`tbiy. Tjbmgvbreabet `isg `iibmbs tj`t Trfpib K`egpysa`e`mbrs fe Fr`q c`isfcfbd tbst skgrbk`rds `s `kgvbr-up tg fedukb tjb mgvbreabet tg p`y cgrtjb uequ`ifcfbd mu`rds. Ft w`s `i ibmbd curtjbrtj`t Trfpib K`egpy kgetfeubd tg ofii tjb mgv-breabet bvbe `ctbr jfmj-ibvbi gccfkf`is `t tjbkgap`eys jb`dqu`rtbrs j`d obbe `ibrtbd tgtjb afskgedukt. Trfpib K`egpy `iibmbdiyusbd tjb c`isb qu`ifcfk`tfge rbkgrds fe `e

    `ttbapt tg pbrsu`db tjb LKK-F/@ tg `w`rd tjbkgap`ey ` sbkged yb`r gc sbkurfty wgrh `ttjb @i @s`d @fro`sb. [tu`rt C. Dbibry, @ktfem@ssfst`et @ttgreby Mbebr`i cgr tjb Kfvf i Dfvf -sfge gc tjb Dbp`rtabet gc Lustfkb, st`tbd4 `ed?>>2, `ed `t tjb Orgwes Cbrry `ed [bqugy`jpi`ets fe ?>>3.

    Tjb lury jb`rd bvfdbekb gc gvbr :> felu-rfbs, fekiudfem orghbe ogebs, tgre ifm`abets,jbref`s, i`kbr`tfges, `ed sjguidbr, o`kh, `edhebb felurfbs, tj`t wbrb egt prgpbriyrbkgrdbd oy K`rdfe. @s p`rt gc ` kfvfi `mrbb-abet cfibd wftj tjb Reftbd [t`tbs fe ?>>:, tjb[j`w Mrgup p`fd o`kh twfkb tjb `aguet gctjb fii-mgttbe s`cbty ogeusbs. R.[. @ttgrebyOfii Hfiif`e j`d tjfs tg s`y>,>>>lueh c`xbs tg abtrg @ti`et` jgabs `ed ousf-ebssbs. Tjfs ruifem ab`es tjb kgap`eykguid ob i f`o ib cgr ` $426 af i i fgepbe`ity. Tjb Jfmj Kgurt rbvbrsbd ` igwbrkgurt dbkfsfge, ruifem `m`fest jgab a`fetb-

    e`ekb cfra @abrfk`e Jgab [brvfkbs Fek.Egrkrgss-o`sbd @ C`st [fme Kg., wjfkj s`fd ftsc`x a`kjfeb obk`ab tfbd up wftj uesgifkftbd`ds cgr tjb kgap`ey, subd @abrfk`e Jgab[brvfkbs fe ?>>; fe wj`t obk`ab ` ki`ss-`ktfge i`wsuft.

    @ tr f`i kgurt betbrbd ` ludmabet `m` fest@abr fk`e Jgab [brvfkbs cgr $426 afiifgegr $0,2>> fe d`a`mbs cgr b`kj gc tjb ;>3,>>>lueh c`xbsout `e `ppb`i s kgurt tjrbw ftgut. Fe tjfs agst rbkbet ruifem, tjb st`tb[uprbab Kgurt sbet tjb k`sb o`kh tg tjb`ppb`is kgurt, s`yfem tjb kgap`ey kguid stfiirba`fe if`oib cgr $426 afiifge, dbpbedfem ge

    jgw ibm`i a`ttbrs fe tjb k`sb `rb rbsgivbd. @hby fssub fs jgw tjb Tbibpjgeb Kgesuabr^rgtbktfge @kt gc 0660 fs fetbrprbtbd, `edwjbtjb r fts ebkbss`ry tg sjgw tj`t c`xbssbet wbrb `ktu`iiy rbkbfvbd.

    Tjb `ppbii`tb kgurt ruibd tj`t tjb trf`ikgurt fekgrrbktiy `ppifbd tjb cbdbr`i `kt,prgaptfem C`st [fme Kg.s `ppb`i tg tjb st`tb[uprbab Kgurt. Fe tjb ruifem rbib`sbd i`stagetj, tjb Mbgrmf` [uprbab Kgurt kge-kiudbd tj`t tjb cbdbr`i `kt prgjfofts `pbrsge crga usfem ` dbvfkb tg sbed `e uesg-ifkftbd `dvbrtfsbabet tg ` tbibpjgeb c`ksfafiba`kjfeb. Tjb Kgurts ruifem st`tbs tj`t `sbedbr fs if`oib cgr tjb uesgifkftbd `dvbrtfsb-

    abets ft `ttbapts tg sbed tg c`x a`kjfebs,wjbtjbr gr egt tjb tr`esafssfge fs kgapibtbdgr rbkbfvbd oy tjb t`rmbtbd rbkfpfbet. Tjfs`ppb`rs tg ob ` agst sfmefcfk`et dbkfsfge. Ftwfi i ob fetbrbstfem tg sbb wj`t j`ppbes egwtj`t tjb k`sb fs o`kh `t tjb trf`i kgurt ibvbi.

    [gurkb>0 tg jbip rbdbsfme J`iia`rhs ousfebssagdbi. Cgur yb`rs i`tbr sfstbr kgap`eyAgeftgr Kifppbr ^`rtebrs s`fd ft w`s `kqufr-fem ` J`iia`rh kgapbtftgr, _bkykibd ^`pbrMrbbtfems Fek. @e `roftbr ruibd fe ?>>= tj`tAgeftgr Kgap`ey Mrgup j`d orb`kjbd ftskgecfdbetf`ifty `mrbbabet, `ed tjb kgap`ey

    `mrbbd tg p`y J`iia`rh $0?.2 afiifge cgrorb`kj gc kgetr`kt. Tjb `w`rd cgr afs`pprg-prf`tfge gc tr`db sbkrbts fe tjfs k`sb, tjb cfe`ii`wsuft, sjguid bed tjb dfsputb. Gc kgursbtjbrb wfii ifhbiy ob pgst-trf`i agtfges `ed `pgssfoib `ppb`i.

    [gurkb< H`es`s Kfty [t`r

    SFF.

    ^_GDRKT

    IF@OFIFTV R^D@TB

    CG_BFMEFE[R_@EKBKGA^@EVAR[TKGSB_KI@FA[REDB_@I@O@A@[]_GEMCRIDB@TJ@KT

    I`st yb`r Mrbm @iibe, gur cfras ib`d prgd-ukts if`ofifty i`wybr, wge ` $2,?2>,>>> ludm-abet fe `e @i`o`a` wrgemcui db`tj k`sb. Fetj`t k`sb, gur kifbets sfstbr w`s hfiibd wjbetjb tbxtfib w`rpbr sjb w`s usfem `t wgrhpuiibd jbr fetg tjb rgt`tfem p`rts. Tjb Dbcbe-d`ets fesur`ekb kgap`ey, wjfkj fs fekgrpg-r`tbd fe [wbdbe, rbcusbd tg p`y tjb ludmabet`m`fest tjb Dbcbed`ets. Tjb kgap`eyki`fabd tj`t fts fesur`ekb pgifky dfd egtkgvbr pueftfvb d`a`mbs. Fe @i`o`a`, tjb sgibrbabdy cgr wrgemcui db`tj fs tjb `w`rdfem gcpueftfvb d`a`mbs. Tjb fesur`ekb kgap`eyfe Mrbms k`sb agvbd tg dfsafss tjb k`sb,`rmufem ` i`kh gc pbrsge`i lurfsdfktfge `eds`fd tj`t tjb fesur`ekb pgifkys cgrua sbibk-tfge ki`usb prbvbetbd tjb ^i`fetfcc crgaorfemfem tjb suft `eywjbrb out fe [wbdbe.

    R.[. Dfstrfkt Kgurt Ludmb Hbftj ]`thfes,

    wjg sfts fe tjb Afdd ib Dfstrfkt gc @i`o`a`,fssubd `e grdbr dbeyfem tjb agtfge tgdfsafss uedbr ogtj tjb pbrsge`i lurfsdfktfge`ed cgrua sbibktfge ki`usb `rmuabets. Ludmb]`thfes rb`sgebd tj`t sfekb tjb fesur`ekbpgifky kget`febd ` tbrrftgry gc kgvbr`mbki`usb tj`t fekiudbd @i`o`a`, tjb [wbdfsjfesur`ekb kgap`ey spbkfcfk`iiy kgetr`ktbd tgob orgumjt fetg kgurt fe @i`o`a`. Curtjbr,Ludmb ]`thfes rb`sgebd tj`t tjb cgrua sbibk-tfge ki`usb rbqufrfem tjb i`fetfcc tg orfem tjb`ktfge fe [wbdbe w`s uebecgrkb`oib. Jb s`fdtjb cgrua sbibktfge ki`usb wguid bccbktfvbiydbprfvb tjb ^i`fetfcc gc `ey rbabdy sfekb tjbsgib rbabdy uedbr @i`o`a`s ]rgemcui

    Db`tj @kt fs tjb rbkgvbry gc pueftfvbd`a`mbs. Ludmb s`fd fe jfs ruifem tj`t@i`o`a` j`s ` strgem puoifk pgifky fetbrbstfe prbvbetfem fesur`ekb kgap`efbs crgabecgrkfem ` pgifkys pueftfvb d`a`mbs bxkiu-sfge cgr ki`fas orgumjt uedbr tjb @i`o`a`]rgemcu i Db`tj @kt . Jb kgekiudbd tj`tbecgrkfem tjb cgrua sbibktfge ki`usb wguid`iigw `e fesur`ekb kgap`ey tj`t kgetr`ktbdtg iftfm`tb fe @i`o`a` tg bv`db @i`o`a`s]rgemc ui Db`tj @kt oy ibt tfem ` [wbdfsjkgurt `ppiy [wbdfsj i`w festb`d gc @i`o`a`i`w.

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    14/40

    04 www.Ob`[email protected]

    @i `o` a` fs tjb geiy lurf sdfktfge fe tjbkguetry tj`t dgbs egt kgapbes`tb tjb survf-vgr cgr tjb wrgemcui db`tj gc tjb dbkbdbet. Fc`e fesur`ekb kgap`ey w`s `iigwbd tgbxkiudb pueftfvb d`a`mbs fe db`tj k`sbs,tj`t wguid bccbktfvbiy a`hb ft kjb`pbr cgrkgap`efbs fesurbd oy tjb fesurbr tg a`eu-c`kturb prgdukts tj`t hfii pbgpib r`tjbr tj`esfapiy felurfem tjba.

    I`wybrs fe gur cfra j`vb j`edibd jue-drbds gc tjbsb k`sbs uedbr @i`o`a`s uefqub

    ]rgem cu i Db`tj @kt sf ekb tjb cf ra w`scguedbd fe 06=6. Fc ygu wguid ifhb `ddftfge`ifecgra`tfge ge `eytjfem rbi`tfem tg Mrbmsk`sb gr kgekbrefem @i`o`a`s ]rgemcuiDb`tj @kt, pib`sb kget`kt [tbpj`efb [tbpjbesAgepi`fsfr, ` i`wybr fe gur cfras ^brsge`iFelury sbktfge, t :>>-:6:-?>;4 gr oy ba`fi t[tbpj`efb.[tbpjbesNob`siby`iibe.kga.

    @ IGGH@TTJB[@CBTVGCJB@SVT_RKHK@OMR@_D[

    I`wybrs fe gur cfra j`vb sukkbsscuiiy

    j`edibd ` euaobr gc k`sbs gvbr tjb yb`rsfevgivfem dbcbktfvb k`o mu`rds ge ofm trukhs.^rfgr tg L`eu`ry ?>>4, cbdbr`i rbmui`tfgesrbqufrbd `ctbra`rhbt jb`dbr og`rds gr crgetbed strukturbs cgr `ddbd prgtbktfge gc jb`vytrukh k`os fe tjb bvbet gc ` ig`d sjfct. Tjbsbdbvfkbs `rb agrb kgaageiy hegwe `s jb`d-`kjb r`khs gr k`o mu`rds. @itjgumj egigembr rbqufrbd oy cbdbr`i rbmui`tfges, jb`vytrukh gpbr`tgrs stfii usb k`o mu`rds tg prgtbkttjb k`o `ed gkkup`ets fe tjb bvbet gc ` ig`dsjfct `ed tg prgvfdb `ddbd kr`sjwgrtjfebss.

    Tjb rbvfsbd Cbdbr`i Agtgr K`rrfbr [`cbty_bmui`tfges (CAK[_) fssubd fe L`eu`ry ?>>4eg igembr rbqufrb ` k`o mu`rd cgr trukhs

    festb`d tjb rbmu i`tfges egw cgkus agrb geig`d sbkurbabet tj`e ge vbjfkib kr`sjwgr-tjfebss. Rsb gc ` k`o mu`rd fs egw ibct tg tjbdfskrbtfge gc gpbr`tgrs. Mbebr`iiy, k`o mu`rds`tt`kj tg trukh cr`ab r`fis objfed tjb k`ostrukturb. Tjb jb`dbr og`rd gr k`o mu`rd,wjbe pi`kbd ge tjb o`kh gc ` jb`vy trukh, fsegt p`rt gc tjb k`rmg sbkurbabet systba.Festb`d, tjby gccbr kr`sjwgrtjfebss prgtbk-tfge fe tjb bvbet gc ` ig`d sjfct. K`rmg sbkurb-abet abtjgds, uedbr ogtj gid `ed ebwrbmui`tfges, `rb mbebr`iiy ibct tg tjb d fskrb-tfge gc jb`vy trukh gpbr`tgrs, wftj mufd`ekbcrga tjb CAK[_.

    Recgrtue`tbiy, tjbrb `rb eg mgvbreabetdbsfme gr pbrcgra`ekb st`ed`rds tj`t `ppiytg tjb a`euc`kturbrs gc k`o mu`rds. @s `rbsuit, gpbr`tgrs `rb gctbe ue`w`rb gc pggrdbsfme `ed a`euc`kturfem fssubs tj`e k`e ob`ssgkf`tbd wftj tjb pbrcgra`ekb `ed s`cbtygc k`o mu`rds. Tjb gid CAK[_ prgvfdbd pbr-cgra`ekb krftbrf`, egt dbsfme krftbrf`, cgr k`omu`rds tj`t gpbr`tgrs j`d tg abbt. Gid;6;.0>3 mgvbrebd tjb pbrcgra`ekb rbqufrb-abets gc k`o mu`rds prfgr tg ?>>4. ^brcgr-a`ekb rbqufrbabets uedbr ;6;.0>3mbebr`iiy rbqufrbd tj`t ` k`o mu`rd ob `oib

    tg rbsfst ` st`tfk ig`d bqu`i tg 2>% gc tjbwbfmjt gc tjb k`rmg obfem tr`espgrtbd, uef-cgraiy dfstrfoutbd gvbr tjb betfrb surc`kb gctjb k`o mu`rd.

    K`o mu`rd a`euc`kturbrs j`vb t`hbe tjbpbrcgra`ekb rbqufrbabet gc gid ;6;.0>3`ed tr`esi`tbd ft fetg ` iggsb dbsfme prgtgkgi.Gur bxpbrfbekb j`s sjgwe tj`t typfk`iiy k`omu`rd a`euc`kturbrs st`tfk`iiy ig`d ` wbidbd`iuafeua k`o mu`rd tj`t j`s obbe dbsfmebdtg c`fi `t ?>,>>>-?2,>>> pgueds. @kkgrdfem tg

    tjb i`emu`mb gc tjb gid ;6;.0>3, sukj `mu`rd wguid abbt tjb pbrcgra`ekb rbqufrb-abet cgr k`rmg wbfmjfem 4>,>>>-2>,>>>pgueds. Jgwbvbr, k`o mu`rd a`euc`kturbrswbfmjt ifaft`tfge w`refems k`e ob sgabwj`tafsib`dfem.

    Fe agst fest`ekbs, w`refem stfkhbrs fedf-k`tb tj`t k`o mu`rds j`vb obbe tbstbd tgkgapiy wftj CAK[_ rbqufrbabets cgr suft-`oib ig`ds gc 4>,>>>-2>,>>> pgueds. Tjba`euc`kturbrs ebvbr fecgra gpbr`tgrs tj`ttjb k`o mu`rds wfii `ktu`iiy c`fi `t st`tfk ig`dsgc ?>,>>>-?2,>>> pgueds. Tjus, tjb w`refemi`obis mfvb tjb faprbssfge tj`t tjb mu`rd wfii

    `ktu`iiy rbsfst ` ig`d gc 4>,>>>-2>,>>>pgueds. Redbr tjb ebw CA[K_ ;6;.004,tjbrb fs eg pbrcgra`ekb rbqufrbabet cgr k`omu`rds `tt`kjbd tg ` jb`vy trukh. Egw, geiycrget bed strukturbs `tt`kjbd tg tr`fibrswjbrb k`rmg fs fe kget`kt wftj tjb st rukturbj`vb ` pbrcgra`ekb rbqufrbabet.

    Agrb fapgrt`etiy, gur bxpbrfbekb wftj tjbk`o mu`rd fedustry rbvb`is tj`t a`euc`ktur-brs j`vb ebvbr tbstbd tjbfr prgdukts dye`af-k`iiy tg dbtbrafeb jgw tjb prgdukt wfiipbrcgra uedbr rb`i-wgrid `kkfdbet kgedf-tfges. Typfk`iiy, k`o mu`rd a`euc`kturbrski`fa tj`t `s igem `s tjby kgapiy wftj tjbpbrcgra`ekb krftbrf` gc gid ;6;.0>3, tjby

    j`vb dgeb `ii tj`t fs rbqufrbd crga ` prgduktdbsfme st`edpgfet. Jgwbvbr, tjb prgvfsfgesgc tjb CAK[_ `rb egt rbmui`tfges tj`t `ppiytg tjb a`euc`kturbrs, `ed tjby `rb egt dbsfmest`ed`rds.

    Fe sgab fest`ekbs, k`o mu`rd a`euc`ktur-brs k`eegt sjgw tj`t `ey prgdukt bemfebbr-fem bvbr gkkurrbd cgr k`o mu`rds sgid tg tjbpuoifk. Fe sgab k`sbs, a`euc`kturbrs j`vbt`hbe tjb pgsftfge tj`t tjbfr k`o mu`rds `rbegt dbsfmebd tg prgtbkt tjb k`o durfem `kkf-dbets, out r`tjbr gccbr prgtbktfge durfemegra`i or`hfem. Jgwbvbr, tjb prgdukts `rba`rhbtbd `s s`cbty dbvfkbs tg prgtbkt dr fvbrs`ed gkkup`ets durfem tjb bvbet gc ig`d

    sjfcts. K`o m u`rd a`euc`kturbrs mbebr`iiy`daft tj`t tjbfr prgdukt fs fetbedbd tgprgtbkt gkkup`ets crga sjfctfem k`rmg `ed`daft tj`t tjby j`vb egt rbstrfktbd usb tggeiy ege-`kkfdbet kfrkuast`ekbs.

    Cfe`iiy, agst k`o mu`rds `rb a`db gc jb`t-trb`tbd `iuafeua. Tjfs a`tbrf`i `iigws cgrtjb prgduktfge gc ` ifmjtwbfmjt prgdukt tj`tfs rbi`tfvbiy b`sy tg a`fet`fe. Jgwbvbr,wbidf em jb`t- trb`tbd `iua feua mbebr`i iyrbdukbs tjb strbemtj gc tjb `iuafeua oy gebtjfrd. ]bidbd `iuafeua fs `isg suolbkt tgstruktur`i c`tfmub dub tg kykifk`i ig`dfem

    durfem trukh gpbr`tfge. Tjfs strukturbc`tfmub `isg brgdbs tjb strbemtj gc tjb k`omu`rd. Cfe`iiy, wbidbd `iuafeua wfii egtobed gr strbtkj uedbr ig`ds ifhb stbbidgbs. Tjbrbcgrb, wjbe wbidbd `iuafeuarb`kjbs fts a`xfaua ig`d, ft typfk`iiy cr`k-turbs ed k`t`strgpjfk`iiy c`fis.

    @ stbbi k`o mu`rd wf ii egt c` fi fe sukj `c`sjfge `ed typfk`iiy prgvfdbs obttbr prg-tbktfge tg gkkup`ets, bvbe p`st fts prb-dfktbd ig`dfem k`p`kfty. Fc ` a`euc`kturbr fs

    mgfem tg a`rhbt ` s`cbty dbvfkb, ft sjguidj`vb `pprgprf`tb bemfebbrfem `ed dbsfmekgapgebets. Kurrbet `iuafeua k`o mu`rdsmbebr`iiy afss tjbfr a`rh cgr s`cbty. Fc yguebbd agrb fecgra`tfge ge tjfs suolbkt,kget`kt Obe O`hbr, ` i`wybr fe gur cfra, `t:>>-:6:-?>;4 gr oy ba`fi `t Obe.O`hbrNob`siby`iibe.kga.

    AGTG_KVKIBJBIABT[@CBTV

    ]b hegw tj`t cgihs fe tjb R.[. wfii `iw`ysrfdb agtgrkykibs. ]b `isg hegw tj`t, bvbe

    wjbe bxbrkfsfem tjb utagst k`utfge, `kkf -dbets k`e `ed wfii j`ppbe. _fdbrs aust obrb`dy wjbe tjbfr shfii, ludmabet `ed pi`fegid mggd iukh `rbet begumj. Tjbrb `rb a`eyw`ys tg prbp`rb cgr agtgrkykib `kkfdbets. @efapgrt`et w`y tg a`hb surb tj`t rfdbrs `rbrb`dy cgr `e `kkfdbet, dbspftb `ii gtjbr prb-k`utfges, fs tg wb`r ` jbiabt.

    Jbiabts `rb tjb prfekfp`i ifeb gc dbcbesbcgr ` rfdbr wjg rbkbfvbs ` jb`d fap`kt.Jua`e jb`ds `rb `dbpt `t `vgfdfem fap`kt.]b k`e dukh, dgdmb `ed usb gtjbr ogdy p`rtstg prbvbet tjb fap`kt tg tjb jb`d. Recgrtu-e`tbiy, ft fset `iw`ys pgssfoib tg `vgfd jb`dfap`kt wjbe t r`vb i fem ` t jfmjw`y

    spbbds. Tjb obst w`y tg `vgfd felury gr bvbedb`tj wjbe tjb fap`kt k`eegt ob `vgfdbd fstg prgtbkt tjb jb`d wftj ` mggd kr`sj jbiabt.

    Recgrtue`tbiy, `ii jbiabts `rb egt a`dbbqu`iiy. [gab jbiabts c`fi tg prgtbkt rfdbrscrga cgrbsbb`oib fap`kts `ed prgvfdb tjbcued`abet`i cuektfge gc prgtbktfem tjbjb`d. Tjbsb jbiabts k`e c`fi oy egt j`vfemsuccfkfbet bebrmy-`osgrofem k`p`ofiftfbs gr oyc`fifem tg st`y ge tjb rfdbr tjrgumjgut tjb`kkfdbet. I`wybrs fe gur cfra `rb kurrbetiyfevbstfm`tfem `e fekfdbet wjbrb ` jbiabtk`ab gcc tjb rfdbr durfem ` agtgrkykibkr`sj. Tj`t pbrsge` juso`ed `ed c`tjbr

    dfbd gc ` jb`d felury fe ` vbry igw spbbd cgrb-sbb`oib kr`sj. Jb j`d eg gtjbr felurfbsbxkbpt tg jfs jb`d. F wgedbr jgw a`eytfabs tjfs a`e wgrb jfs jbiabt `ed ebvbrebbdbd ft `t `ii. Out, tjb geb tfab wjbe jbrb`iiy ebbdbd ` jbiabt, jfs jbiabt c`fibd.

    Tjb mgvbreabet j`s rbqufrbabets cgrjbiabts sgid fe tjb Reftbd [t`tbs. Vgu k`e tbiia`ey tfabs fc tjb jbiabt p`ssbs tjbafefaua R.[. st`ed`rds oy tjb c`afif`r DGTstfkhbr. DGT jbiabts `rb obttbr tj`e rfdfemo`rbjb`dbd, out tjbsb afefaua st`ed`rdsib`vb kgesfdbr`oib rgga cgr faprgvbabet.

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    15/40

    www.LbrbOb`siby_bpgrt.kga 02

    Geb w`y tg dbtbrafeb fc ygur jbiabt abbts `jfmjbr s`cbty st`ed`rd fs tg iggh cgr [ebii kbr-tfcfk`tfge fe `ddftfge tg tj`t prgvfdbd oy tjbDGT. Tjbsb jfmjbr [ebii kbrtfcfk`tfge st`e-d`rds prgvfdb ` aukj mrb`tbr ibvbi gc prgtbk-t fge, out tjby `rb vgiuet`ry cgr tjba`euc`kturbrs.

    Gur cfra iftfm`tbs k`sbs fevgivfem dbcbktsfe jbiabts wjbe tjby `rb cgued tg ob uerb`-sge`oiy d`embrgus `ed c`fi tg pbrcgra `s tjbkgesuabr bxpbkts. Fc ygu j`vb `ey qubstfges

    rbm`rdfem ` agtgrkykib jbiabt gr `ey jbiabt,pib`sb kget`kt Kjrfs Migvbr, ` i`wybr fe gurcfra wjg j`edibs prgdukt if`ofifty ki`fas, `t:>>-:6:-?>;4 gr oy ba`fi `t Kjrfs.MigvbrNob`siby`iibe.kga.

    ^@TTB_EGCC_@RDO_FEM[DG]EMGGDVB@_

    Ob`siby @iibe i`wybrs j`vb obbe db`ifemwftj Mggdyb`r s bv`s fvb df skgvb ry tbkj-efqubs cgr yb`rs. Fe ?>>=, _fkh Agrrfsge, `i`wybr fe gur cfra, w`s fe tjb afdst gc `tjrbb-yb`r-igem dfskgvbry o`ttib wftj Mggd-

    yb`r fe ` k`sb tftibd ]ggds v. Mggdyb`r.Tj`tk`sb fevgivbd c`afiy abaobrs wjg wbrbfelurbd wjbe tjb ibct crget tfrb gc tjbfr ?>>0Age`kg Dfpiga`t _S db-trb`dbd, k`usfemtjbfr _S tg ib`vb tjb rg`dw`y, krgss gvbr tjbabdf`e `ed twg i`ebs gc tr`vbi obcgrb si`a-afem fetg `e bao`ehabet `t ` rbst `rb`. Tj`ttfrb w`s ` M026, wjfkj w`s a`euc`kturbd oyMggdyb`r `ed sgid oy Mggdyb`r tg ob utf-ifzbd ge _Ss.

    @ctbr rgueds gc dfskgvbry rbqubsts `ed dfs-putbs, _fkh sbrvbd ` Cfctj _bqubst cgr ^rgduk-tfge gc Dgkuabets ge Mggdyb`r `shfem tj`tMggdyb`r prgdukb `ii gtjbr tbstfem kge-duktbd oy Mggdyb`r . . . tj`t w`s uedbrt`hbe,

    `t ib`st fe p`rt, tg dbtbrafeb tjb suft`ofifty gcXM026Q tfrbs tg ob drfvbe `t 32 apj. Festb`dgc prgdukfem tjb tbsts, Mggdyb`r rbspgedbdwftj mbebr`i golbktfges `ed wguid egt `mrbbtg prgdukb tbstfem rbibv`et gr rbspgesfvb tgtjb rbqubst.

    _fkh `m`fe sgumjt tjb kgurts `ssfst`ekb,`ed `ctbr ` jb`rfem, tjb kgurt grdbrbd Mggd-yb`r tg prgdukb `ii tbsts tj`t wbrb rbibv`et fedbtbrafefem wjbtjbr tjb M026 w`s suft`oibcgr rbkrb`t fge`i vbjfkibs drfvfem 32apj. Tjb prgoiba cgr Mggdyb`r fs tj`t tjbydfdet ib`re crga tjb kgurts crustr`tfge fe]ggds. Festb`d, Mggdyb`r kgetfeubd tg

    kgekb`i tbstfem tj`t ft hebw wguid ob rbib-v`et fe dbtbrafefem wjbtjbr tjb M026 w`sdbcbktfvb.

    Obk`usb gc Mggdyb`rs kgetfeugus cr`udu-ibet dfskgvbry pr`ktfkbs, tjb Reftbd [t`tbsDfstrfkt Kgurt cgr tjb Dfstrfkt gc @rfzge`j`edbd dgwe jbcty s`ektfges `m`fest tjbkgap`ey fe ` ibemtjy gpfefge puoifsjbdb`riy tjfs agetj. Tjb cgiigwfem `rtfkib,wr ft tbe oy [b`e H`e b cr ga Tjb [`cbty_bkgrd, [`cbty _bsb`rkj & [tr`tbmfbs, sua-a`rfzbs Mggdyb`rs p`ttbre cgr cr`uduibetdfskgvbry tbkjefqubs `ed jgw tjfs ebw

    grdbr wfii fap`kt cuturb iftfm`tfge, `ed fe p`r-tfkui`r, Mggdyb`r. Bvbe tjgumj tjb `rtfkib fsr`tjbr igem, fts wbii wgrtj rb`dfem. Ft s`ysigts `ogut jgw Mggdyb`r gpbr`tbs.

    ^`ttbre gc Cr`ud Orfems Dgwe

    Mggdyb`r

    Fs ft tfab cgr Mggdyb`r tg lust mfvb up tjbmjgst ge tjb M026 tfrb7 [urb, tjby j`d ` mggdrue cgr ` wjfib, sbiifem tjb tfrb tg tjb agtgr

    jgab fedustrybvbe tjgumj tjb tfrb w`sdbsfmebd cgr uro`e dbifvbry vbjfkibs `edspbbd-r`tbd cgr geiy 32 afib pbr jgur kgetfe-ugus usb. @ed wjbe tjgsb tfrbs c`fibd geagtgr jgabs, k`usfem rgiigvbrs, k`t`strgpjfkfelurfbs, db`tjs `ed i`wsufts, Mggdyb`r j`d `mggd rue ifaftfem tjb d`a`mb oy hbbpfem tjbd`aefem dgkuabets crga sprb`dfem crgageb iftfm`et tg `egtjbrgr lust hbbpfem tjbatg tjbasbivbs. Out tjbfr rue sbbas tg ob`ogut dgeb, cgr tjb tfrb `ed tjb ibm`i str`tbmy.

    Tjb Kjfbc Lustfkb gc tjb Reftbd [t`tbs Dfs-trfkt Kgurt cgr tjb Dfstrfkt gc @rfzge`, _gsiyeG. [fivbr, j`s fssubd ` ibemtjy `ed dbv`st`tfems`ektfges grdbr `m`fest Mggdyb`r, `ed `ttgr-ebys Mr`bab J`ekgkh gc Cbeebagrb Kr`fm^K `ed O`sfi Auseucc cgrabriy gc _gbtzbi &@edrbss, wjg rbprbs betbd tjb tf rb a`hbr`m`fest tjb prgdukt if`ofifty ki`fas igdmbd oytjb J`bmbr c`afiy. Ludmb [fivbrs grdbr st`rtsifhb tjfs pbrkbet gc tjb tgt`i s`ek-

    tfges `ed Auseucc `ed Mggdyb`r `rb lgfetiyrbspgesfoib cgr tjb rba`fefem :> pbrkbet.[`yfem tj`t fts ifhbiy tj`t tjb k`sb wguidj`vb sbttibd aukj b`rifbr, Ludmb [fivbr st`rtbdtjb pbe`ity kigkh `t Egvbaobr ?>>3, `ctbrMggdyb`r sbrvbd fts suppibabet`i rbspgesbstg ^i`fetfccs Cfrst _bqubst. Tj`t w`s tjb cfrstdbcfeftfvb prggc tj`t Mggdyb`r w`s egt mgfemtg kggpbr`tb fe tjb iftfm`tfge prgkbss.

    Tjb `ktfges gc Ludmb [fivbr `ed jbr

    st`cc rbc ibkt `e uew`vbrfem kgaaft -

    abet tg tjb pursuft gc trutj kgesfstbet

    wftj tjb jfmjbst st`ed`rds gc @abrf-

    k`e lurfsprudbekb, s`fd `ttgreby

    D`vfd I. Hurtz , wjg rbprbsbetbd tjb

    J`bmbr s. Ft fs ay jgegr tg pr`ktfkb

    i`w fe jbr kgurt `ed sjb sbts `e bxkbi-

    ibet bx`apib gc tjgumjtcui dbkfsfge

    a`hfem tg mufdb tjb kgedukt gc iftf-

    m`ets fe bvbry kgurt.

    Ludmb [fivbr `isg rbqufrbd Mggdyb`r tg c fib` kgpy gc tjfs grdbr fe `ey suosbqubet M026

    tfrb k`sb.

    O`sbd ge Mggdyb`rs jfstgry gc bem`m-

    fem fe sbrfgus dfskgvbry afskgedukt fe

    bvbry M026 k`sb orgumjt tg tjfs Kgurts

    `ttbetfge, cfifem tjfs Grdbr fe cuturb

    M026 k`sbs wfii `ibrt pi`fetfccs `ed tjb

    kgurts tj`t Mggdyb`r j`s, fe tjb p`st,

    egt gpbr`tbd fe mggd c`ftj wjbe iftfm`t-

    fem sukj k`sbs. Ft wfii `isg sbrvb `s

    egtfkb gc tjb bxfstbekb gc kbrt`fe tbsts

    Mggdyb`r `ttbaptbd tg kgekb`i fe prb-

    vfgus k`sbs.

    [jb egtbd tj`t tjb J`bmbrs `rb crbb tg sbp-

    `r`tbiy rbebmgtf`tb tjbfr sbttibabet `mrbb-abet `ed pursub `e fedbpbedbet k`usb gc`ktfge cgr cr`ud o`sbd ge Ar. J`ekgkh, Ar.Auseucc, `ed Mggdyb`rs obj`vfgr. Cfe`iiy,Ludmb [f ivbr `i iudbd d`rhiy tg uespbkfcfbduecgrtue`tb prgcbssfge`i kgesbqubekbs, cgrJ`ekgkh `ed Auseucc tg cgiigw.

    Iftfm`tfem tjb M026

    Mggdyb`r j`d spbet eb`riy ` dbk`db fe tjb066>s `ed ?>>>s a`rhbtfem tjb M026 tg tjb_S fedustrybvbe tjgumj tjb tfrb dbsfmew`s prgeb tg gvbrjb`t ge _Ss tj`t typfk`i iytr`vbi `t mrb`tbr tj`e 32-apj spbbds cgr

    bxtbedbd pbrfgds. Mggdyb`r hebw ft w`sd`embrgus cgr agtgr jgabs, out d fdet w`etigsb ` a`rhbt sbmabet. [g, fe 066:, `ctbrspbbd ifafts fekrb`sbd e`tfgewfdb, Mggdyb`rouapbd tjb spbbd r`tfem gc tjb M026 tg =2afibs pbr jgur.

    Fe 0666, Cibbtwggd w`s tjb cfrst agtgrjgab a`euc`kturbr tg i`uekj twg rbk`iiskgvbrfem agrb tj`e ;,4>> Ki`ss-@ agtgrjgabs obk`usb gc fe`dbqu`tb tgt`i crget tfrbwbfm jt k`p`kfty. Ft rbpi`kbd tjb Mggdyb`rM026s wftj ` i`rmbr Afkjbife agdbi, `ctbrcgur `kkfdbets fevgivfem twg c`t`iftfbs. Fe?>>?, Mggdyb`r fssubd ` ^rgdukt [brvfkb Oui-ibtfe `eeguekfem tj`t tjb Age`kg Kg`kj Kgr-

    pgr`tfge wguid ob gccbrfem rbpi`kbabet tfrbstg gwebrs gc 0666, ?>>> `ed ?>>0 ]fedsgragdbi Ki`ss-@ agtgr jgabs bqufppbd wftjM026 tfrbs.

    Fe `ii tjrbb k`sbs, tjb prgoibas wbrboi`abd ge fe`dbqu`tb ig`d a`rmfe `ed kus-tgabr afsusb8 Mggdyb`r `ssurbd tjb puoifktj`t tjb tfrbs `rb s`cb cgr `ii usbs. Out oy?>>3, Mggdyb`r w`s a`rhbtfem `e betfrbiydfccbrbet agdbi tfrb tj`t j`d obbe dbvbigpbdcgr rbkrb`t fge` i vbjfk ibs , tjb M3=>_S. @kkgrdfem tg Tfa Afiibr, A`rhbtfemKgaauefk`tfges A`e`mbr cgr Mggdyb`r, tjb

  • 7/21/2019 The Jere Beasley Report, Dec. 2012

    16/40

    03 www.Ob`[email protected]

    M026 w`s egt `e `pprgprf`tb `ppifk`tfge cgr_Ss `ed egtbd tjb M026 w`s ` trukh tfrbtj`t w`s usbd ge _Ss. Out, sfekb tjb tfrbftsbic j`d ebvbr obbe rbk`iibd, gtjbr _S a`e-uc`kturbrs `ed gwebrs wbrb stfii usfem tjbM026 ?=2/=>_??. Fe Lueb ?>>;, Ibrgy `edDgee` J`bmbr, gwebrs gc ` Muic [trb`aKg`kj wbrb `agem tjba. Ibrgy J`bmbr w`sdrfvfem jfs Ki`ss-@ agtgr jgab ge Fetbrst`tb?2 fe Ebw Abxfkg, wjbe tjb rfmjt crget tfrbc`fibd. Tjb Muic [trb`a vbbrbd tg tjb rfmjt

    `ed tjbe rgiibd gvbr, sbrfgusiy felurfem tjbJ`bmbrs `ed tjbfr p`ssbembrs, O`rry `ed[uz`eeb J`bmbr.

    TjbJ`bmbriftfm`tfge w`s j`rdiy uefqub.Mggdyb`r j`s dbcbedbd gr fs dbcbedfem `ogut4> gtjbr db`tj `ed felury `ed `e bstfa`tbd?> prgpbrty-d`a`mb trb`d sbp`r`tfge k`sbsfevgivfem M026s ge Ki`ss-@ agtgr jgabs. @iiout geb j`vb obbe qufbtiy sbttibd, wftj Mggd-yb `r sbk ur fem eg e- sj`r fem prg tb ktfvbgrdbrsfc tjb J`bmbr k`sb fs `ey fedfk`-tfgetg hbbp pi`fetfccs i`wybrs fe tjb d`rh`ogut wj`t Mggdyb`r hebw `ogut tjb M026sprgpbesfty cgr gvbr-jb`tfem `ed c`fi fem uedbr

    tjb ig`d gc ` agtgr jgab `t jfmjw`y spbbds.Gkk`sfge`iiy, bvfdbekb gc Mggdyb`rs hegwi-bdmb pgppbd fetg vfbw.

    Fe Lueb ?>>;, Mggdyb`r ki`fas `dafefstr`-tgr, Hfa Kgx, rbpgrtbdiy `dafttbd fe ` dbpg-sftfge tj`t Mggdyb`r hebw tj`t fts M026 tfrbdfd egt pbrcgra prgpbriy ge Ki`ss @ agtgrjgabs Tjb `dafssfge w`s `pp`rbetiy sgd`a`mfem tj`t tjb tfrb a`hbrs kguesbi faab-df`tbiy tbrafe`tbd tjb dbpgsftfge, ebmgtf`tbd` sbttibabet `ed `rr`embd cgr bvbry skr`p gctjb dbpgsftfges bxfstbekb tg ob dbstrgybd. Fe?>>:, R.[. Dfstrfkt Kgurt Ludmb A`mfstr`tbEft` I. [tgrabs ruibd tj`t Kgxs dbpgsftfgew`s egt suolbkt tg ` ^rgtbktfvb Grdbr cfibd fe

    tjb ?>>? k`sb gc ^jfi ifps v. Mggdyb`r, `edruibd `m`fest ` agtfge tg agdfcy tjb ^rgtbk-tfvb Grdbr tg `iigw cfvb pi`fetfccs fe gtjbrpbedfem M026 k`sbs tg j`vb `kkbss tg Kgxsdbpgsftfge tbstfagey, obk`usb Kgxs dbpgsf-tfge w`s ebvbr prgtbktbd tg obmfe wftj.

    @t tjb t fab, sgab `ttgrebys prbdfktbd tj`ttjb Kgx dbpgsftfge wguid drfvb ` st`hbtjrgumj tjb jb`rt gc Mggdyb`rs dbcbesb fetjbsb k`sbs. Out tjb tfrb a`hbr `pp`rbetiykgetfeubd tg sukkbsscuiiy sfig b`kj k`sb, sbt-tifem M026 trb`d sbp`r`tfge k`sbs fevgivfemsbrfgus felurfbs `ed db`tjs, fe bxkj`emb cgrkgecfdbetf`ifty.

    Tjbe, fe Lueb ?>0>, ` lury fe [kj`iag v.

    Mggdyb`rj`edbd tjb tfrb a`hbr fts cfrstpuoifk igss ^`skg Kguety, Cigrfd` lurycgued tj`t tjb Mggdyb`r Tfrb & _uoobrKgap`ey