Justice Department opens antitrust inquiry into BCS process

The Bowl Championship Series determines which college football teams play for the national title and trophy.The Bowl Championship Series system makes it hard for some college teams to qualifyMillions of dollars in revenue are at stake in the football bowl selection processAssistant Attorney General Varney seeks an explanation

(CNN) -- In a letter to the NCAA disclosed Wednesday, the Justice Department said it has received several requests for an antitrust investigation into the current Bowl Championship Series system, and it wants information to help it decide what to do.

That controversial system makes it very difficult for teams in some athletic conferences to qualify for major bowl games, potentially costing millions of dollars in revenue to those not chosen.

"Serious questions continue to arise suggesting that the current BCS system may not be conducted consistent with the competition principles expressed in federal antitrust laws," Assistant Attorney General Christine Varney told NCAA President Mark Emmert.

The decision to release the letter came hours after Sen. Orrin Hatch, R-Utah, a major opponent of the current system, demanded further consideration of the issue in a face-to-face appearance with Attorney General Eric Holder at a Senate Judiciary Committee hearing.

Holder responded by disclosing the Justice Department had sent a letter to the NCAA on the issue Tuesday.

In her letter, Varney asked Emmert to explain why college football does not have a playoff when so many other college sports do. She also asked what steps, if any, the NCAA has taken to create a playoff, and whether the NCAA has determined that there are aspects of the BCS system that do not serve interests of fans, colleges, universities, and players.

Officials acknowledge the NCAA is not legally required to respond, although lawyers following the case expect the association to do so.

Antitrust lawyers have been watching the debate grow for more than two years, to see whether the Justice Department will jump into the case.

One antitrust expert who declares himself neutral in the case says he doubts Justice will launch a probe because it has a full plate of more pressing issues.

"There is a problem, but not an antitrust problem," said Gordon Schnell of the New York firm Constantine Cannon. A court could never require a football playoff, but they could break up the current BCS system, he said.

Currently, the BCS system limits automatic bids to the winners of the Big Ten, Big East, Big 12, Atlantic Coast Conference, Pac 10 and the Southeast Conference, thereby leaving out other conferences, including almost all schools in the Rocky Mountain Region. Only two remaining at-large spots are available to all other colleges and universities.

CNN's Terry Frieden contributed to this report

CNN

This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

High gas prices prompt Justice Department to eye energy industry

Regular gas is nearly $5 a gallon at a service station this week in Washington. STORY HIGHLIGHTSNEW: Obama promises to ensure companies don't take advantage of U.S. consumersThere is no current evidence of illegal conduct, Attorney General Holder says"We will be vigilant in monitoring the oil and gas markets," he saysHe notes there are "lawful reasons" for increases in gasoline prices Washington (CNN) -- Prodded by growing public frustration over sharply rising gasoline prices, the Justice Department on Thursday announced the formation of a team -- the "Oil and Gas Price Fraud Working Group -- tasked with the goal of ensuring consumers are not victims of price gouging.

Gas prices exceeding $4 per gallon or higher are "tough" for most Americans, President Barack Obama told an audience in Reno, Nevada. "We are going to make sure that no one is taking advantage of American consumers for their own short-term gain."

"This gas issue is serious," the president said. "It hurts."

CNNMoney: Why is gas outpacing oil in price?

Attorney General Eric Holder made no secret the move is a direct response to public angst, not to current evidence of any illegal conduct.

"Rapidly rising gasoline prices are pinching the pockets of consumers across the country," Holder said in a written statement released at the Justice Department.

Gas price jumped while he was still pumping

View the Original article

Labor Department Reports 382,000 Unemployment Claims Last Week

FoxNews.com

Print Email Share Comments Recommend Tweet

WASHINGTON -- Fewer Americans applied for unemployment benefits last week, extending a multi-week downward trend that gives hope employers will continue new hiring.

The Labor Department says the number of people seeking benefits dropped 10,000 to 382,000 in the week ending April 2. However, that 392,000 was revised upward by 4,000 from initial reports. 

Even so, benefit claim reporting for the week ending April 2 showed the third drop in claims in four weeks. The four-week average of applications, a less volatile measure, declined to 389,500.

Applications near 375,000 are consistent with a sustained increase in hiring. Applications, which reflect the pace of layoffs, peaked during the recession at 659,000.

The number of people seeking benefits has fallen for several months. The four-week average has dropped by 28,750, or nearly 7 percent, in the past eight weeks. At the same time, businesses are stepping up hiring.

Employers added a net total of 216,000 jobs last month, the Labor Department said last week, and the unemployment rate fell from 8.9 percent to 8.8 percent. Private employers added more than 200,000 jobs in both February and March, the biggest two-month gain since 2006.

The number of people collecting benefits also dropped. The total dipped slightly to 3.7 million during the week ending March 19, one week behind the applications data. That's the lowest total since October 2008. But that doesn't include millions of people receiving aid under the emergency unemployment benefit programs put in place during the recession.

Overall, 8.5 million people received unemployment benefits in the week ending March 19, the latest data available. That's down sharply from the previous week, when nearly 8.8 million people collected benefits.

The Associated Press contributed to this report.

Print Email Share Comments Recommend Tweet View ArticleLeave a CommentSort: NewestSort: Oldest Please enable JavaScript to view the comments powered by Disqus. You must login to comment.

View Article

View All Comments

Latest Politics VideosMore »

View the Original article

Obama Justice Department Appeals Judge's Health Care Ruling

AP

Attorney General Eric Holder speaks during a news conference in Washington March 9.

ATLANTA -- The Obama administration has appealed a judge's ruling that found the federal overhaul of the health care system unconstitutional. 

The Justice Department filed a 62-page motion Friday to the 11th Circuit Court of Appeals in Atlanta that said there's clear and well-established precedent that Congress acted within its authority in adopting the overhaul. It said Congress mad "detailed findings establishing a foundation" for exercising the authority. 

Florida and 25 other states filed the lawsuit that said Congress exceeded its authority by requiring all citizens to purchase health insurance or face tax penalties. U.S. District Judge Roger Vinson agreed in a Jan. 31 ruling that said Obama's entire health care overhaul is unconstitutional. It is considered the most sweeping ruling against the health care law. 

Some states, including Alaska, have cited the decision in refusing to cooperate with the health care law. But Vinson issued another ruling last week ordering states to continue implementing the law while the case makes its way through the courts. 

Either way, the broad challenge seems certain to be resolved only by the Supreme Court. Two other U.S. district judges have previously upheld the law, both Democratic appointees to the federal bench. 

Vinson's rulings have found that lawmakers do not have the power to penalize citizens for not doing something. But he has acknowledged that the 11th Circuit could disagree with him. 

"It is likely that the Court of Appeals will also reach divergent results and that, as most court-watchers predict, the Supreme Court may eventually be split on this issue as well," he wrote in the March 3 ruling. 

Other states that joined Florida in filing the lawsuit were: Alabama, Alaska, Arizona, Colorado, Georgia, Indiana, Idaho, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Nebraska, Nevada, North Dakota, Ohio, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Washington, Wisconsin and Wyoming.

Print Email Share Comments Recommend Tweet View ArticleLeave a CommentSort: NewestSort: Oldest Please enable JavaScript to view the comments powered by Disqus. You must login to comment.

View Article

View All Comments

Latest Politics VideosMore »

View the Original article