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(Host) Vermont finance officials are bracing for a possible federal debt default.

They say the state has plenty of cash reserves to weather a short-term halt in federal funds. But theyre more worried about the possibility of the debt crisis continuing.

VPRs John Dillon has more.

(Dillon) On Monday, one day before the deadline to raise the federal debt ceiling, Vermont is supposed to get $53 million from the federal government.

The money is for the feds share of the Medicaid program. Finance Commissioner Jim Reardon expects the cash to come in on schedule. Reardon says the future beyond that is a little harder to predict.

(Reardon) The federal government has not sent out any guidance as to what their priority of payments will be. So I dont know whether Vermont will receive some funding, no funding, or whether certain programs will receive priority payments and others may not.

(Host) The state gets about $1.6 billion a year from the federal government – money that pays for everything from health care to highway projects.

State Treasurer Beth Pearce manages Vermonts day-to-day cash flow. She says the states reserve funds are full. So there should be plenty of cash on hand if the federal funds stop flowing.

(Pearce) Our cash position is very liquid. We have reduced investments in areas that would have longer maturities so we could be liquid to address this emergency if in fact it happens. We still hold out hope that a solution can be found before Aug. 2.

(Dillon) Pearce says a default of the federal debt could have longer term consequences in the form of higher interest rates.

Vermont is one of 15 states with a triple-A credit rating, meaning its pays low interest rates when it borrows money. Pearce is worried that if the debt crisis continues, that credit rating could be at risk.

(Pearce) The fact of the matter is our reserves, our conservative management has served us well in that rating process. And were very pleased that were in good shape but again the impacts of Washington and the failure to resolve this impasse could lead to more issues and more financing costs for the state of Vermont over time if it is not resolved.

(Dillon) The debt crisis has also raised alarms among investors. Anne Doremus is a financial adviser with Hanson and Doremus in Burlington.

Shes been hearing from clients about how a potential federal default will affect their investments.

(Doremus) If you have a long time horizon you can afford to wait out these kinds of events. But either if you have difficulty just sleeping at night and your risk tolerance really just cant support this kind of environment, or if you have need to get access to cash, those are both good reasons to think about changing your strategy.

(Dillon) Doremus says markets will be volatile as long as the uncertainty over the debt ceiling continues. And she predicts that interest rates will also rise because of the failure to address the federal deficit.

For VPR News, Im John Dillon in Montpelier.

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French Finance Minister Christine Lagarde leaves TF1 private television studios on June 28 after a prime-time news program in Boulogne-Billancourt, near Paris. Gonzalo Fuentes / Reuters

Emerging powers hope new IMF chief Christine Lagarde will make good on her pledges

It came as little surprise that French Finance Minister Christine Lagarde was appointed the 11th managing director of the International Monetary Fund (IMF), defeating Agustin Carstens, head of Mexicos central bank, after a month-long race. Former lawyer Lagarde, 55, will be the first female to head the IMF. Unlike her predecessors, she will also be the first IMF chief that does not have a background career as an economist.

Lagardes win, as some analysts point out, once again reflects Western dominance over the IMFs leadership. It seems that the world is not prepared for a non-European boss to lead the key financial institution, especially at a time when the European debt crisis is still haunting the global economy.

The IMF has traditionally been led by a European since it was established in the aftermath of World War II. Lagarde received support from major Asian powers, such as China and India, after she pledged to increase the influence of emerging economies at the fund.

The Peoples Bank of China, Chinas central bank, welcomed Lagardes appointment and said that it expects her to implement further reform of the IMF.

Carstens, Lagardes sole rival for the post, also issued a statement of support. Lagarde will be a very capable IMF chief, he said and expressed his hope that she would make meaningful progress in strengthening governance of the fund.

Lagarde has a wealth of political experience and formidable negotiating skills to bring to her new post. She has gained wide support in Europe for her ability to reach compromise and strike deals among different parties under pressure.

She has also won a reputation as a good communicator and consensus-builder between developed and emerging economies.

She likes to attribute her teamwork spirit and self-discipline to her training as a synchronized swimmer at a young age. She also gained firsthand and practical experience of addressing thorny economic problems during Frances presidency of the G20 and the sovereign debt crisis of the eurozone.

Her more than 20 years of experience working as a lawyer at Baker McKenzie, a leading US law firm, also makes it easy for her and the Americans, who have the biggest voting quota at the IMF, to relate to each other.

Her strong negotiating skills are definitely considered a plus by the European nations and her experience working at a well-known US law firm also makes her very relatable to the Americans, which helped her land the job, says Dong Yuping, an economist with the Institute of Finance and Banking at the Chinese Academy of Social Sciences (CASS).

When asked by reporters what new ideas she would bring to the IMF while she was running her campaign in China, Lagarde mentioned inclusion and diversity. She said that her goal is to make the IMF more representative, more involved and more legitimate.

The world has changed and it cannot operate on the basis of the Washington consensus as it is often portrayed, Lagarde said. I would hope that the IMF remains relevant and plays a pivotal role in transforming the international scene.

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Darden Restaurants Inc. (DRI), the
operator of Olive Garden and Red Lobster, expects lower
commodity costs in the second half of this fiscal year, Chief
Financial Officer Brad Richmond said.

“We do see the markets, from this very elevated level,
moderately moving down in the back half of our fiscal year,”
Richmond said today in a telephone interview. Seafood remains
“at pretty high prices right now for us,” he said.

Darden, along with other restaurants, has faced surging
raw-ingredient costs during the past year that have forced it to
raise menu prices. The US Department of Agriculture predicts
food prices will rise as much as 4 percent in 2011.

The restaurant company reported a 19 percent gain in
fourth-quarter profit as sales increased at its Red Lobster and
LongHorn Steakhouse restaurants. Net income in the period ended
May 29 rose to $137.4 million, or 99 cents a share, the Orlando,
Florida-based company said today in a statement. The average
analyst estimate compiled by Bloomberg was $1. Profit from
continuing operations was $1 a share.

Darden fell 81 cents to $48.95 at 5:40 pm New York time
in trading after the close of the New York Stock Exchange. The
shares rose 46 cents to $49.76 in NYSE composite trading today,
for a gain of 28 percent in the past year.

“Acquisitions are part of our strategy,” Richmond said.
While the company’s current brands are capable of delivering
sales goals for the next five years, “when you get beyond that,
we might be pushing them too hard,” he said.

“The potential for an acquisition, at some point in time,
to come in and to help in sustaining that growth is something
that we’re always open to.”

Darden has almost 1,900 restaurants in the US and Canada.
Fourth-quarter net income last year was $115.6 million, or 80
cents a share.

To contact the reporter on this story:
Leslie Patton at lpatton5@bloomberg.net

To contact the editor responsible for this story:
Robin Ajello at
rajello@bloomberg.net

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BY JAMES WILLHITE

Median pay for chief financial officers of SP 500 companies surged 19% to $2.9 million last year, as profits and stock valuations rebounded and some finance chiefs assumed broader responsibilities, according to a Wall Street Journal survey.

CFO pay varied widely, from less than $600,000 to more than $60 million. Five CFOs received more than $20 million in compensation. Growth in pay partly reflected the growing clout and multiple responsibilities of some finance chiefs, and moves by some companies to combine the function with others.

Indeed, the two highest-paid CFOs in the Journals survey Thomas Dooley of Viacom Inc. and …

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NEW YORK, Jun 30, 2011 (BUSINESS WIRE) –
New Mountain Finance Corporation (the “Company”)

/quotes/zigman/5141969/quotes/nls/nmfc NMFC
-0.31%

today
announced that it will release its financial results for the quarter
ended June 30, 2011 on Thursday, August 11, 2011 after the close of the
financial markets. Additionally at that time, the Company will declare a
dividend to be paid by Friday, September 2, 2011. The Company will host
an earnings conference call and audio webcast at 10:00am (Eastern Time)
on Friday, August 12, 2011 to discuss its second quarter 2011 financial
results.

All interested parties may participate in the conference call by dialing
1.800.561.2718 approximately 15 minutes prior to the call, international
callers should dial 617.614.3525. Participants should reference New
Mountain Finance Corporation and the participant passcode of 13187313
when prompted. This conference call will also be broadcast live over the
Internet and can be accessed by all interested parties through New
Mountain Finance Corporation’s website,
http://www.newmountainfinance.com/investor-relations .
To listen to the live call, please go to the Company’s website at least
15 minutes prior to the start of the call to register and download any
necessary audio software. Following the call you may access a replay of
the event via audio webcast.

ABOUT NEW MOUNTAIN FINANCE CORPORATION

New Mountain Finance Corporation is a closed-end, non-diversified and
externally managed investment company that has elected to be treated as
a business development company under the Investment Company Act of 1940.
The Company used all of the proceeds from its initial public offering as
well as the proceeds from its concurrent private placement to acquire
common membership units from New Mountain Finance Holdings, L.L.C. New
Mountain Finance Holdings, L.L.C.’s investment objective is to generate
current income and capital appreciation through the sourcing of debt
securities at all levels of the capital structure, including first and
second lien debt, notes, bonds and mezzanine securities. In some cases,
investments may also include small equity interests. New Mountain
Finance Holdings, L.L.C.’s investment activities are managed by its
Investment Adviser, New Mountain Finance Advisers BDC, L.L.C., which is
an investment adviser registered under the Investment Advisers Act of
1940.

FORWARD-LOOKING STATEMENTS

Statements included herein may constitute “forward-looking statements,”
which relate to future events or our future performance or financial
condition. These statements are not guarantees of future performance,
condition or results and involve a number of risks and uncertainties.
Actual results may differ materially from those in the forward-looking
statements as a result of a number of factors, including those described
from time to time in our filings with the Securities and Exchange
Commission. New Mountain Finance Corporation undertakes no duty to
update any forward-looking statements made herein. All forward-looking
statements speak only as of the time of this press release.

SOURCE: New Mountain Finance Corporation

New Mountain Finance Corporation
Adam Weinstein, Chief Financial Officer
212-220-4247

Copyright Business Wire 2011

/quotes/zigman/5141969/quotes/nls/nmfc

Add NMFC to portfolio

NMFC

New Mountain Finance Corp.

$
13.05

-0.04
-0.31%

Volume: 13,059
July 12, 2011 4:01p

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TALLAHASSEE —
A Florida federal judge has struck down a provision of state campaign finance law that attempted to negate an advantage for millionaire candidates like Rick Scott by providing matching tax dollars to their opponents.

The decision of US District Judge Robert Hinkle parrots Monday#x2019;s 5-4 US Supreme Court ruling against Arizona#x2019;s campaign finance matching law.

The Florida ruling, which had been expected in light of the Supreme Court decision, is a late but important win for now Gov. Scott, who brought the lawsuit during his Republican primary against former Attorney General Bill McCollum.

The provision of the law limited Scott#x2019;s campaign expenditures to $24.9 million in the primary. For every $1 Scott spent over the limit, McCollum would have received a $1 match in taxpayer funding.

Scott argued that the cap was a violation of his First Amendment rights because it restricts his free speech by benefiting his opponents#x2019; speech. He won a temporary injunction that prevented McCollum from receiving taxpayer assistance during the primary, but the case was not resolved.

The cap wasn#x2019;t an issue in the general election because Democratic candidate Alex Sink, like Scott, decided to forgo public financing.

The Florida decision does not affect the other major component of the state#x2019;s public-financing system, which provides matching dollars for contributions made by Florida residents.

#x201C;Gov. Scott views this as another big victory for taxpayers, who will no longer be forced by politicians to foot the bill for their attack ads and campaign costs,#x201D; said spokesman Brian Burgess.

It also could be a big victory should Scott run for re-election in 2014, since the governor will not have to worry about spending limits or taxpayers coming to the aid of his opponents.

During the 2010 election, Scott, a former health care executive, spent more than $70 million of his own money. He reported a net worth of $218 million in forms filed with the state last year, though the figure is believed to be low because it does not include his wife#x2019;s assets or the worth of his family#x2019;s limited partnership.

Aaron Sharockman can be reached at asharockman@sptimes.com or (727) 892-2273.

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