Regents OK raise for new UC Berkeley chief









Despite strong opposition from Gov. Jerry Brown, the UC Board of Regents on Tuesday gave the incoming chancellor of UC Berkeley a $50,000 — or 11.4% — pay raise over the current campus head. The extra money will come from private donations, not state funds, the regents said.


Nicholas B. Dirks will be paid $486,000, which officials said is $14,000 less than his current salary as a high-ranking administrator at Columbia University.


Brown, who is a regent, described Dirks as an excellent choice but said he would not vote for the salary given the austerities that the state and the 10-campus UC system still face. The university must look for more efficient ways to teach and operate and "the leaders have to demonstrate that they are also sacrificing," Brown said.





The $50,000 increase, even though it won't come from public coffers, "does not fit within the spirit of servant leadership that I think will be required over the next few years," the governor said.


Brown also cited voters' recent approval of his Proposition 30 tax increase, which spared UC from deep budget cuts. During the campaign for the measure, the governor said, he promised voters that he would "use their funds judiciously and with prudence."


Brown, who rarely attended regents meetings before the election, has since become a dramatic presence and voice against UC status quo. Since last summer, he has criticized raises for Cal State executives and suggested that all public colleges promote less expensive insiders instead of shopping for high-priced "hired guns" from across the country.


Besides noting that Dirks will take a pay cut from being Columbia's executive vice president and dean of its arts and sciences faculty, UC leaders said his UC Berkeley salary will be much lower than that of leaders at many other prestigious public and private universities.


"I try to get the very best person I can in this job to navigate the university through some very complicated times," UC system President Mark G. Yudof said.


Yudof said he and Brown do not see "exactly eye to eye" on Dirks' pay, but Yudof said he and the governor agree on nearly all other issues, including efforts to keep tuition from rising.


The regents first debated the issue privately Tuesday in a telephone conference call linking those in Oakland, Sacramento and Los Angeles. After the call went public, three regents voted against the pay increase — Brown, Lt. Gov. Gavin Newsom and Charlene Zettel — and 11 others voted for it. All 14 voted to appoint Dirks.


State Sen. Leland Yee (D-San Francisco), a frequent UC critic, issued a statement suggesting that Dirks follow the example of Timothy P. White, who recently asked for a 10% pay cut from the salary paid his Cal State predecessor. Yee said he would reintroduce legislation to limit executive pay raises in public higher education.


When he starts at the 36,000-student UC Berkeley on June 1, Dirks will receive free campus housing, along with $121,700 in relocation fees paid out in installments over four years and other benefits.


An anthropologist and historian who is an expert on India and its British colonial era, he will succeed Robert J. Birgeneau, who has been Berkeley chancellor for eight years. Dirks' wife, Columbia history professor Janaki Bakhle, is expected to receive a faculty job at UC Berkeley, but officials said her hiring and any possible salary must be reviewed by faculty panels.


After his confirmation, Dirks, who is the son of a former UC Santa Cruz administrator, said he was grateful to lead "one of the greatest universities in the world" and said he would work to boost student financial aid and encourage interdisciplinary research and studies.


He thanked Brown and California voters for passing Proposition 30, which raises the state sales tax a quarter-cent over four years and the income tax on high earners over seven years. Dirks, 61, promised that he would carefully "steward the tax dollars that are being paid by the citizens of this great state."


The regents unanimously approved an annual $245,600 salary and housing for Jane Close Conoley, who will become acting chancellor at UC Riverside next month until a permanent one is hired. That salary is below the $325,000 pay of the current Riverside campus chief, White, who is leaving to become chancellor of the Cal State system. Conoley is now dean of UC Santa Barbara's Gervitz Graduate School of Education.


larry.gordon@latimes.com





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A Google-a-Day Puzzle for Nov. 28











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.



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U.S. author sues filmmaker Tyler Perry over plot of 2012 film












NEW YORK (Reuters) – An American author sued the prolific filmmaker Tyler Perry in a federal court on Tuesday, accusing him of lifting the plot of his 2012 movie, “Good Deeds,” from her book.


Terri Donald, who also writes under the pseudonym TLO Red’ness, says Perry based the film on her 2007 book, “Bad Apples Can Be Good Fruit.”












The lawsuit, filed in Philadelphia, says Donald sent a copy of her book to Perry’s company before production on the movie began.


Donald is seeking $ 225,000 in initial damages as well as an injunction requiring the company to add a credit for her book in the opening and closing credits. The lawsuit also calls for the company to provide an accounting of the movie’s revenues.


The drama, which stars Perry as a wealthy businessman who meets a struggling single mother, earned approximately $ 35 million at the box office after its February release.


Representatives for Perry and Lions Gate Entertainment, which released the film and is also named as a defendant in the lawsuit, did not respond to requests for comment on Tuesday.


Perry is best known for his portrayal in drag of the character Madea in several of his films.


(Reporting by Joseph Ax; Editing by Paul Simao)


Movies News Headlines – Yahoo! News


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Recipes for Health: Spinach and Turkey Salad — Recipes for Health


Andrew Scrivani for The New York Times







Turkey or chicken transforms this classic spinach salad (minus the bacon) into a light main dish, welcome after Thanksgiving and before the rest of the holiday season feasting begins.




2 cups (12 ounces) shredded cooked turkey, chicken breast or chicken breast tenders


1 6-ounce bag baby spinach


6 white or cremini mushrooms, thinly sliced


1 cup cooked wild rice


2 tablespoons chopped walnuts


1 to 2 hard boiled eggs (to taste), finely chopped (optional)


2 tablespoons chopped chives


1 to 2 tablespoons chopped fresh herbs such as parsley, tarragon or marjoram


For the dressing:


2 tablespoons fresh lemon juice


1 tablespoon red wine vinegar, tarragon vinegar or sherry vinegar


1 teaspoon Dijon mustard


Salt and freshly ground pepper


1 small garlic clove, pureed


1/3 cup extra virgin olive oil


2 tablespoons plain low-fat yogurt


1. Combine all of the salad ingredients in a large salad bowl. Whisk together the lemon juice, vinegar, Dijon mustard, salt, pepper, garlic, olive oil and yogurt. Toss with the salad just before serving.


Yield: Serves 4 as a main dish


Advance preparation: The salad can be assembled and the dressing mixed several hours before serving. Refrigerate and toss together when ready to serve.


Variation: Add 1 ripe but firm persimmon, peeled, cored and sliced, to the mixture.


Nutritional information per serving: 375 calories; 25 grams fat; 4 grams saturated fat; 5 grams polyunsaturated fat; 15 grams monounsaturated fat; 53 milligrams cholesterol; 14 grams carbohydrates; 2 grams dietary fiber; 119 milligrams sodium (does not include salt to taste); 26 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Facebook Gift Store Urges Users to Shop While They Share





SAN FRANCISCO — Facebook is already privy to its users’ e-mail addresses, wedding pictures and political beliefs. Now the company is nudging them to share a bit more: credit card numbers and offline addresses.







James Best Jr./The New York Times

Facebook Gifts is a service that prompts users to buy things for friends on the social network.






Sharing Even More




What do you think about Facebook’s plan to have users buy gifts for their friends through the site using their credit cards?







A screenshot of Facebook Gifts.






The nudge comes from a new Facebook service called Gifts. It allows Facebook users — only in the United States for now — to buy presents for their friends on the social network. On offer are items as varied as spices from Dean & DeLuca, pajamas from BabyGap and subscriptions to Hulu Plus, the video service. This week Facebook added iTunes gift cards.


The gift service is part of an aggressive moneymaking push aimed at pleasing Facebook’s investors after the company’s dismal stock market debut. Facebook has stepped up mobile advertising and is starting to customize the marketing messages it shows to users based on their Web browsing outside Facebook.


Those efforts seem to have brought some relief to Wall Street. Analysts issued more bullish projections for the company in recent days, and the stock was up 49 percent from its lowest point, closing Tuesday at $26.15, although that is still well below the initial offering price of $38. The share price has been buoyed in part by the fact that a wave of insider lockup periods expired without a flood of shares hitting the market.


To power the Gifts service, Facebook rented a warehouse in South Dakota and created its own software to track inventory and shipping. It will not say how much it earns from each purchase made through Gifts, though merchants that have a similar arrangement with Amazon.com give it a roughly 15 percent cut of sales.


If it catches on, the service would give Facebook a toehold in the more than $200 billion e-commerce market. Much more important, it would let the company accumulate a new stream of valuable personal data and use it to refine targeted advertisements, its bread and butter. The company said it did not now use data collected through Gifts for advertising purposes, but could not rule it out in the future.


“The hard part for Facebook was aggregating a billion users. Now it’s more about how to monetize those users without scaring them away,” said Colin Sebastian, an analyst with Robert W. Baird.


He added: “Gifts should also contribute more to Facebook’s treasure trove of user data, which has the benefit of a virtuous cycle, driving more personalization of the site, leading to better and more targeted ads, which improves overall monetization.”


Facebook already collects credit card information from users who play social games on its site. But they are a limited constituency, and a wider audience may be persuaded to buy a gift when Facebook reminds them that a friend is expecting a baby or a cousin is approaching her 40th birthday.


The Gifts service, which grew out of Facebook’s acquisition of a mobile application called Karma, was introduced in September and expanded earlier this month on the eve of the holiday shopping season.


Magnolia Bakery, based in New York, was among Facebook’s early partners for Gifts. Its vice president for public relations, Sara Gramling, said the company had sold roughly 200 packages of treats since then. She counted it as a marketing success. The bakery, which gained fame thanks to “Sex and the City,” had only recently begun shipping its goods. “It was a great opportunity to expand our network,” she said.


Magnolia Bakery isn’t exactly catering to the masses. A half-dozen cupcakes cost $35, plus about $12 for shipping. Facebook, Ms. Gramling said, takes care of the billing. The bakery is eyeing Facebook’s global reach, too, as it opens outlets internationally, especially in the Middle East.


One of the appeals of Facebook Gifts is the ease of making a purchase. Facebook users are nudged to buy a gift (a gift-box icon pops up) for Facebook friends on their birthdays. They are offered a vast menu to choose from: beer glasses, cake pops, quilts, marshmallows, magazine subscriptions and donations to charity. They are asked to choose a greeting card. Then they are asked for credit card details. Facebook says it stores that credit card information, unless users remove it after making a purchase.


Facebook has declined to say how many users have bought gifts, only that among those who have, the average purchase is $25.


David Streitfeld contributed reporting.



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Egypt president meets judges, fails to 'contain crisis'









CAIRO — President Mohamed Morsi suggested Monday that he would scale back broad powers he assumed last week but failed to appease Egypt's judiciary, which would still lack oversight of some institutions including the Islamist-led assembly drafting a new constitution.


Morsi and senior judges met for nearly five hours to discuss differences resulting from the president's declaration that his office was free from judicial review. Morsi told judges that the decree was meant to be temporary, and mainly aimed at shielding the long-troubled constitutional assembly from any judicial attempt to disband it.


Presidential spokesman Yasser Ali said after the meeting that Morsi's decree was not designed to "infringe" on the judiciary, suggesting not all of the president's actions would be immune from court review. The Supreme Judicial Council on Saturday condemned Morsi's expanded powers as an "unprecedented attack" on the courts. And Monday's talks did not seem to soften the sentiment of some council members.





"Our meeting with the president has failed to contain the crisis," Abdelrahman Bahloul, a member of the judicial council, told the newspaper Al Masry al Youm. "The statement issued by the presidency is frail and does not represent the members of the council."


The Judges Club, a separate legal organization, also was not satisfied that Morsi had scaled back enough of his authority. It called on its members to continue a partial strike in Alexandria and other cities. Ziad Akl, a political analyst, said Morsi's negotiations with the judges were a move to show the public he's not a dictator, "but, in reality, his declaration has not changed."


The talks in the presidential palace did not stop anti-Morsi demonstrations in Tahrir Square on Monday. But in a sign tensions may be easing, the Muslim Brotherhood, which Morsi helped lead until his inauguration in June, announced it was canceling a scheduled demonstration Tuesday to avoid bloodshed and possible clashes with Morsi opponents.


The consequences of the nation's restiveness played out as Morsi and the judges met Monday, with mourners turning out to bury two boys from opposite political sides who were killed in recent clashes: a 16-year-old antigovernment protester reportedly shot with a rubber bullet near Tahrir Square and a 15-year-old struck by a stone when a crowd attacked an office of the Brotherhood's Freedom and Justice Party in the Nile Delta.


"The presidency mourns two of the nation's finest young men," Morsi said in a statement.


But the images of two funerals made it clear that Morsi and the Brotherhood, although still Egypt's dominant political forces, miscalculated the depth of public anger that has bristled since last year's overthrow of longtime autocrat Hosni Mubarak and subsequent government setbacks, including judicial action disbanding the Islamist-led parliament.


Last month, Morsi, who for months has held wide executive and legislative powers, attempted to fire Prosecutor-General Abdel Meguid Mahmoud, only to retreat after a backlash from judges. His most recent decree to hold his office above judicial oversight struck many as another ill-conceived bid to consolidate his authority and advance an Islamist agenda.


Morsi contended that his intent was to prevent Mubarak-era judges from disrupting the country's political transition. Many Egyptians, including opposition figures, are suspicious of the courts, Mahmoud in particular. But Morsi's unilateral decree echoed the strongman tactics of his predecessor.


One of the president's biggest challenges is to protect the assembly drafting the constitution, which will open the way for new parliamentary elections. In June, the Supreme Constitutional Court, made up mostly of Mubarak-appointed judges, dissolved parliament. The court has since been deciding the fate of the Islamist-led assembly, which Morsi feared would also be disbanded.


Activists, liberals, women and non-Muslims have boycotted the assembly, saying that it is too focused on sharia, or Islamic law, which could limit civil rights. Protesters in Tahrir Square said they will continue their demonstrations until Morsi retracts more of his power.


Jaber Nassar, a legal expert quoted on state TV, said Morsi's meeting with the judges showed that he remains adamant on keeping broad authority. He called Morsi's announcement Monday "simply a political statement meant to curb protests against" his decree.


jeffrey.fleishman@latimes.com


Abdellatif is a special correspondent.





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A Google-a-Day Puzzle for Nov. 27











Our good friends at Google run a daily puzzle challenge and asked us to help get them out to the geeky masses. Each day’s puzzle will task your googling skills a little more, leading you to Google mastery. Each morning at 12:01 a.m. Eastern time you’ll see a new puzzle posted here.


SPOILER WARNING:
We leave the comments on so people can work together to find the answer. As such, if you want to figure it out all by yourself, DON’T READ THE COMMENTS!


Also, with the knowledge that because others may publish their answers before you do, if you want to be able to search for information without accidentally seeing the answer somewhere, you can use the Google-a-Day site’s search tool, which will automatically filter out published answers, to give you a spoiler-free experience.


And now, without further ado, we give you…


TODAY’S PUZZLE:



Note: Ad-blocking software may prevent display of the puzzle widget.




Ken is a husband and father from the San Francisco Bay Area, where he works as a civil engineer. He also wrote the NYT bestselling book "Geek Dad: Awesomely Geeky Projects for Dads and Kids to Share."

Read more by Ken Denmead

Follow @fitzwillie and @wiredgeekdad on Twitter.



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Bin Laden movie “Zero Dark Thirty” based on first-hand accounts












LOS ANGELES (Reuters) – The makers of a Hollywood movie about the U.S. operation to kill Osama bin Laden denied asking for classified material for their film, but say they did conduct interviews with a CIA officer and others at the heart of the decade-long hunt for the al Qaeda leader.


“It was all based on first-hand accounts so it really felt very vivid and very vital and very, very immediate and visceral of course which is very exciting as a filmmaker,” Kathryn Bigelow, director of “Zero Dark Thirty,” told ABC News in an interview airing on Monday.












Bigelow and screenwriter Mark Boal said in a “Nightline” interview that they were originally working on a film about the failed bid to find bin Laden in the Tora Bora mountains of Afghanistan during the U.S-led invasion there in 2001.


But their plans changed swiftly after U.S. President Barack Obama announced in May 2011 that a Navy commando unit had killed bin Laden in a compound in Pakistan.


“I picked up the phone and started calling sources and asking them what they knew and taking referrals and knocking on doors and really approached it as comprehensively as I could,” Boal told “Nightline” according to an advance excerpt.


“I certainly did a lot of homework, but I never asked for classified material,” he said. “To my knowledge I never received any.”


The release of “Zero Dark Thirty” – seen as a strong contender for Oscar nominations – was pushed back to December after the film got caught up earlier this year in a U.S. election year controversy.


The U.S. admiral who oversaw the secret operation in May denied a claim that the Obama administration arranged for Bigelow and Boal to be given special access to top officials while researching their movie.


The film reconstructs the hunt for bin Laden largely through the eyes of a young female CIA officer, played by Jessica Chastain, who helps find him through a long-forgotten courier. Obama only makes a fleeting appearance in the film.


“It was a couple of months into the research when I heard about a woman, part of the team, and she has played a big role and she had gone to Jalalabad and been deployed with the SEALs on the night of the raid,” Boal told ABC News reporter Martha Raddatz in the “Nightline” interview.


While some of the dialogue is word for word and based on interviews with the young CIA officer and others, some of the dialogue is dramatized, said the Oscar-winning makers of 2008′s “The Hurt Locker,” about a U.S. Army bomb disposal team during the Iraq War.


The assault on bin Laden’s Pakistan compound was recreated as accurately as possible, using a full-scale version built in Jordan. The floor, the tile, the carpet, the furniture and the marks on the walls were copied from images seen in ABC News footage that Bigelow said they reviewed frame by frame.


The full interview can be seen on “Nightline” on Monday evening.


“Zero Dark Thirty” opens in U.S. movie theaters on December 19. Nominations for the 2013 Academy Awards are announced on January 10 ahead of the February 24 Oscar ceremony.


(Reporting By Jill Serjeant)


Movies News Headlines – Yahoo! News


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Recipes for Health: Quinoa Salad With Avocado and Kalamata Olives — Recipes for Health


Andrew Scrivani for The New York Times







This is inspired by a salad I recently enjoyed in a small vegetarian restaurant called Siggy’s on Henry Street in Brooklyn Heights. They called it a quinoa Greek salad, but really the only thing that was Greek about it was the kalamata olives. No matter, it was still delicious.




3/4 cup quinoa


1 1/4 cups water


Salt to taste


1 small cucumber, cut in half lengthwise, seeded and sliced, or 1 Persian cucumber, sliced; or 1/2 cup sliced or diced celery (from the inner heart)


1/4 cup kalamata olives, pitted and halved (about 12__ olives)


1 ripe avocado, diced


1 tablespoon slivered fresh mint leaves


2 tablespoons chopped fresh parsley


1 1/2 ounces feta cheese, crumbled (1/3 cup, optional)


1 6-ounce bag mixed spring salad greens, baby spinach, arugula, or a combination


For the dressing:


1 tablespoon freshly squeezed lemon juice


1 tablespoon sherry vinegar


1 teaspoon Dijon mustard


1 small garlic clove, pureed


Salt to taste


2 tablespoons extra virgin olive oil


1/3 cup buttermilk or plain low-fat yogurt


Freshly ground pepper


1. Place the quinoa in a strainer and rinse several times with cold water. Place in a medium saucepan with 1 1/4 cups water and salt to taste. Bring to a boil, cover and simmer 15 minutes, until the grains display a thread-like spiral and the water is absorbed. Remove from the heat, remove the lid and place a dish towel over the pan, then return the lid to the pan and let sit for 10 minutes or longer undisturbed. Transfer to a salad bowl and fluff with forks. Allow to cool.


2. Add the remaining salad ingredients except the salad greens to the bowl. Whisk together the dressing ingredients. If using yogurt, thin out if desired with a tablespoon of water.


3. Just before serving toss the lettuces with 3 tablespoons of the dressing. Toss the quinoa mixture with the rest of the dressing. Line a salad bowl or platter with the greens, top with the quinoa, and serve. Or if preferred, toss together the greens and quinoa mixture before serving.


Yield: Serves 4 to 6


Advance preparation: You can assemble the salad up to a day ahead but do not toss with the dressing until shortly before serving.


Nutritional information per serving (4 servings): 340 calories; 21 grams fat; 4 grams saturated fat; 3 grams polyunsaturated fat; 13 grams monounsaturated fat; 10 milligrams cholesterol; 30 grams carbohydrates; 7 grams dietary fiber; 347 milligrams sodium (does not include salt to taste); 9 grams protein


Nutritional information per serving (6 servings): 226 calories; 14 grams fat; 3 grams saturated fat; 2 grams polyunsaturated fat; 9 grams monounsaturated fat; 7 milligrams cholesterol; 20 grams carbohydrates; 5 grams dietary fiber; 231 milligrams sodium (does not include salt to taste); 6 grams protein


Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”


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Puerto Rico Races to Rescue Its Pension Fund





Puerto Rico is fighting to stay afloat in a rising sea of debt.




Its economy is sputtering. Its population is shrinking. Its recent election is disputed. Its public pension fund is perilously low on cash. The American territory has just been through a brutal five-year recession, something not experienced in the United States as a whole since the 1930s.


Desperate to raise cash, Puerto Rican officials have been selling off anything they can: two toll roads and the main airport so far.


To bring in tax revenue, they are trying to lure people out of the underground economy. Coffee shops, hairdressers, even outdoor market stalls are being required to issue printed receipts with every sale. The receipts carry a lottery number, with a chance to win cars or cash, as an incentive to get shoppers to pay the island’s 7 percent sales tax.


Though many of Puerto Rico’s problems are reminiscent of Greece’s — tax noncompliance, a stagnant economy, years of issuing long-term debt to cover short-term payments — investors have had a nearly insatiable appetite for its bonds.


But now their support is dwindling. Some big investors are pruning their holdings. That is beginning to widen the cost of borrowing for Puerto Rico relative to other states and municipalities, which are benefiting from a big decline in borrowing costs. The interest rate its 30-year bonds now pay is about 2.5 percentage points higher than other municipal borrowers’, up from a difference of just 1.5 percentage points at the beginning of 2012, according to Municipal Market Data.


The possibility of a credit downgrade also hangs in the air, something that could lead to more selling.


“There is no specific event looming on the horizon,” said Alan Schankel, a managing director at Janney Capital Markets in Philadelphia. “But it’s a problem of immense magnitude, and it’s very challenging to sit here and see how they work their way out of it.”


Puerto Rico needs to be able to issue bonds at attractive rates to cover its short-term financing needs. Perhaps more important, it has to figure out how to salvage its retirement funds. After shortchanging them for years, it now has the weakest major public pension system in America.


The main fund, which serves about 250,000 government workers, past and present, is only 6 percent funded — a small percentage of what is considered the minimum needed for a marginally healthy pension plan — and could run out of money as soon as 2014. Another fund, for about 80,000 teachers, which is 20 percent funded, will last just a few years longer if nothing is done. Police officers and teachers in Puerto Rico have opted out of Social Security and rely entirely on their pensions.


“For now, I’m not totally shaken about the possibility of the fund going broke,” said Jorge Ramón Román, a 78-year-old retired instructor for the island’s Civil Air Patrol. “But I do fear for the future, when I’ll be an even older person, more infirm and with less of a pension.”


Héctor M. Mayol Kauffman, the executive director of the pension system, said it would be impossible to cut the benefits of people who are already retired, citing court precedent.


Puerto Rican officials were racing this fall to put together a rescue plan for the pension fund. Voters, though, pushed out Gov. Luis Fortuño, who had tried austerity measures that included cutting tens of thousands of government workers along with a revamping of the fund.


They elected Alejandro García Padilla, who promised to create 50,000 new jobs in the next 18 months. But the margin was razor-thin and Mr. Fortuño has requested a recount. Mr. García Padilla’s party had dropped out of the retirement overhaul effort, but the governor-elect says he will deal with the looming pension crisis with “diligence and promptness” and has put together a task force of economists and financial advisers.


“We will not leave retired government workers stranded at a bus stop in their older years,” he said.


Since the election, yields on the island’s 30-year bonds have continued to widen.


“I don’t think that there’s a default that’s about to happen, but a default isn’t the only bad thing that can happen when you’ve got bonds,” Mr. Schankel said. Puerto Rico’s bonds are just a notch or two above junk status. If they fall to that level, at least some institutions would be forced to sell, potentially setting off a chain reaction. And individual investors could get a jolt if they saw the value of their holdings fall. Many people own Puerto Rican debt without knowing it, through their mutual funds.


“The concern is that Puerto Rico is a systemic risk to the municipal bond market because it’s so widely held,” said Robert Donahue, a managing director with Municipal Market Advisors.


Rafael Matos contributed reporting from San Juan, P.R.



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