Severin Schwan, CEO of Roche Holdings AG, met with community leaders Tuesday to discuss the parent company's plans for Ventana Medical Systems. Schwan said Ventana's people are what drew Roche to the Oro Valley-based biotech firm.

Ventana Medical Systems Inc. Chief Operating Officer Hany Massarany will take over the Tucson operation when President and CEO Christopher Gleeson retires at the end of the year.

Massarany has been with Ventana since July 1999, when he was hired as the first director of Asia-Pacific operations. The Australian native said he has been in Tucson about seven years.

Gleeson’s retirement was announced Tuesday at a luncheon with Severin Schwan, CEO of Roche Holdings AG, Ventana’s parent company. The transition to Massarany from Gleeson, who has been CEO since May 1999, was planned and is not connected to Roche’s takeover of the company, Ventana spokeswoman Alana Bolton said.

“It is supported by Roche and they have every confidence in (Massarany),” Bolton said.

Schwan was making his fourth visit to Tucson since the Swiss company bought Ventana for $3.4 billion in January. Each time he has addressed the employees at Ventana.

“He’s definitely a motivator,” Bolton said. “They look forward to his visits.”

This visit was the first time Schwan made a public appearance. At the luncheon, hosted by Stone Canyon Club in Oro Valley, Schwan put forth Roche’s plans for Ventana to about 45 community and business leaders.

Gleeson, who introduced Schwan, said Roche is committed to significant investment in the community, with plans to make the Tucson area its global center of excellence for tissue diagnostics.

Despite the rough start to their relationship, Gleeson said, referring to Roche’s hostile bid, the company has been an “excellent corporate partner to our growing company.”

And Schwan echoed that message of growth as a part of Roche’s plans to improve medicine through personalized health care – targeting treatments through better detection, diagnosis, treatment and monitoring of diseases.

“Ventana is an important . . . pillar in this,” Schwan said. “Direct examination of tissue is very important information. In Tucson we have found the right partner.”

Schwan said Ventana has about 750 employees here, and it is expected to expand to about 1,000 by the end of next year.

Roche plans to invest in research and development and expand the high-tech labs at the Ventana facility, he said.

Schwan said Roche’s acquisition strategy is not to engulf a company, but to allow it to continue in its own culture and with its current staff. Allowing those separate cultures to flourish is what spurs creativity, he said.

Ventana’s culture was a big factor in Roche’s decision to acquire the company, Schwan said. The employees’ energy, dedication and passion were impressive.

“We have very dedicated, very qualified people around the world, but Tucson stands out,” Schwan said. “You have to trust the people you give the money to.”

Ventana was one of six or seven acquisitions Roche has made in the past 18 months. It is currently bidding to buy out California pharmaceutical firm Genentech.

Arizona drivers already pay bloated premiums to cover insurance-fraud losses, and the problem could get worse before it gets better. A tough domestic economy, a growing organized-crime presence, financial pressures faced by car-repair shops, and other problems, including violence in Mexico, set the stage for more vehicle-related losses.

“We see a lot more fraudulent activity occurring over the next year or two,” said Ralph Lumpkin, regional director of operations for the National Insurance Crime Bureau, an industry group.

The crimes aren’t just of a white-collar nature. In some cases, stolen vehicles are used in cross-border human or drug smuggling or violent acts.

“It leads to many other serious crimes,” said Enrique Cantu, executive director of the Arizona Automobile Theft Authority.

Some of the problems are linked to violence in Mexico, and that’s spreading north of the border, said Sgt. Terry Starner of the Arizona Department of Public Safety.

Starner estimates that U.S. law-enforcement officials recover between 60 percent and 70 percent of the vehicles known to have been taken south of the border.

“But it’s impossible to tell how many vehicles go into Mexico,” he said.

Lumpkin, Cantu and Starner were among the speakers at a daylong seminar in Phoenix this week devoted to fraud issues. The event was attended by insurance representatives and government officials.

“Sharing information is the biggest weapon in combating insurance fraud,” said Tom Welsh, also of the National Insurance Crime Bureau.

Participants heard tales of staged rear-end collisions, stolen cars being used in smuggling operations, shady tow-truck operators and body shops charging inflated prices. It all adds up to fraud losses absorbed by insurers and passed on to consumers.

An estimated 10 percent or more of property and casualty claims are fraudulent, according to industry sources. With Arizonans filing $4.3 billion worth of claims in 2006, the most recent year tracked, that represents annual fraud losses of more than $400 million.

“The average policyholder is paying $300 extra in premiums yearly due to losses from insurance fraud,” said Ron Williams, executive director of the Arizona Insurance Council, another speaker.

Although insurance-fraud rankings by state are scarce, Arizona ranks No. 2 nationally in one dubious category: automobile thefts per capita.

Welsh said organized criminals are becoming more active, responsible for an estimated 31 percent of Arizona’s insurance-fraud claims in 2006, 38 percent in 2007 and 45 percent this year.

Commentators at the conference cited Eastern European and Mexican crime groups, as well as small-scale operators.

“These are businesses with business models set up to defraud us and our customers,” said Brian Garrett, manager of a special investigations unit for State Farm.

Staged auto accidents are a significant problem. These are accidents, including rear-end and T-bone collisions, caused by crooks seeking payments for repairs and injuries.

“They usually involve bodily injuries because it’s easy to collect and easy to fake a soft-tissue injury,” Garrett said.

In some cases, medical clinics post fraudulent billings, Garrett said. In addition, crooks sometimes cite the names of legitimate doctors when filing bogus claims.

“We’ve seen ID thefts involving doctors, where the doctors’ names are being used without their knowledge,” Garrett said.

Repair costs sometimes are inflated by body shops, including windshield-repair businesses.

Rental-car agencies sometimes exaggerate loss-of-use charges for damaged rental vehicles while they’re in the shop.

Fraudulent billings can escalate in cases where the perpetrators fill their vehicles with several passengers, all of whom claim injuries, said Scott Strain, a special-investigations manager with American Family Insurance.

In Western states, staged accidents frequently are committed by crooks with Eastern European ties.

“They’re often represented by the same attorneys and treated by the same doctors,” Strain said.

Consumers who suspect fraud can contact their agents or the Arizona Department of Insurance.

In truth, it’s easy for anyone to file a fraudulent claim or worse. Carla Johnson, a captain with the Tucson Police Department, related how one 13-year-old suspect reportedly learned how to steal cars from doing Internet research at the library.

Inflated towing charges, including vehicle storage, figure as a major expense.

“In more than 50 percent of the claims we handle, there’s a tow,” said Jeff Schmersahl, a special-investigations manager for Geico in Arizona and nearby states.

Most Arizona cities have contracts that limit towing fees on calls initiated by police, yet insurers and consumers often are oblivious to these limits.

handler, for example, allows tow companies to charge just $10, plus $7.50 for the first 24 hours of storage, yet operators sometimes bill insurers for several hundred dollars.

“This is an area where insurance companies have been deficient about going out and getting the information,” Schmersahl said.

Kerry Hayden, a government-affairs representative at Farmers Insurance, said the most egregious storage fee she has seen was $1,200 for 12 hours. This was a case where a tow-truck operator took a damaged car to a body shop with which it had an arrangement, even though the car’s owner wanted it taken elsewhere.

Many body shops are facing financial pressures of their own, encouraging some to conspire with tow operators, officials said.

“We’re seeing body shops that are desperate,” Schmersahl said. “We’re seeing body shops taking baseball bats to cars, adding additional damage.”

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MORE

Options to reduce vehicle theft

TECHNOLOGY

• Install automated license-plate readers on major highways.

• Encourage manufacturers to innovate with devices like ones that gradually disengage the power to vehicles that have been reported stolen.

INFORMATION

• Establish a national database of vehicle titles.

• Improve sharing of vehicle information between the United States and Mexico, and between law-enforcement agencies and U.S. Border Patrol officials.

ADMINISTRATION

• Require Arizona cars to have front-end license plates, thereby increasing the effectiveness of automated plate readers.

• Improve oversight of companies that handle vehicle titling.

• Encourage rental-car companies to improve their verification of customer identities.

Source: Capt. Carla Johnson, Tucson Police Department

How to spot staged incidents

Here are some signs of “staged” mishaps:

• One driver readily accepts liability. Usually this is a person who has insurance coverage and is colluding with others to receive payments.

• There’s no police report because the drivers leave before waiting for police to arrive. The parties involved often can’t recall key details.

• Photos or repair estimates taken at the scene are much less severe than subsequent photos or estimates, suggesting that damage is inflicted later.

• If you’re involved in such an accident, take notes, collect personal information about the other driver, photograph damage and wait for police.

Sources: Scott Strain, American Family Insurance; Ron Williams, Arizona Insurance Council.

Tucson artist MAM (Mark A. Molina) debuts his Hollywood Monsters series in "Mamityville Horror," showcased at Lulubell Toy Bodega, 439 N. Sixth Ave. MAM's monsters were inspired by classic horror films he remembers watching on an old black-and-white TV as a young boy. The monster from the 1954 classic horror, "Creature from the Black Lagoon," is one of the paintings included in the show, on view through Oct. 30.

OPENING THIS WEEK:

JOEL D. VALDEZ MAIN LIBRARY: Oct. 29-Nov. 28: “Tucson-Pima Arts Council’s Rural Art Showcase,” features works by emerging and established professional artists living outside of the Tucson city limits. When: 9 a.m.- 8 p.m. Mondays-Wednesdays, 9 a.m.-6 p.m. Thursdays, 9 a.m.- 5 p.m. Fridays, 10 a.m.-5 p.m. Saturdays and 1-5 p.m. Sundays Where: 101 N. Stone Ave., Price: Free Info: 594-5500 http://www.library.pima.gov/ locations/main/art.cfm#about

LOUIS CARLOS BERNAL GALLERY: Oct. 27-Dec. 5: “Natural Selections: Jim Waid Paintings.” This is the first Tucson exhibition in 10 years for local artist Waid, whose work is regularly exhibited nationwide. The arroyos, hills and canyons around Tucson are the subjects for his large sensually colored paintings. Oct. 29: Gallery talk, 11:30 a.m.-12:30 p.m. and artist reception, 5-7 p.m. Nov. 20: Lecture, 7 p.m. When: 10:30 a.m.- 5 p.m. Mondays-Wednesdays, 10 a.m.-5 p.m. Tuesdays and Thursdays, 10 a.m.-3 p.m. Fridays, and before most evening performances in the Cente Where: Pima Community College-West Campus, 2202 W. Anklam Road Info: 206-6942, pima.edu/cfa

TEMPLE GALLERY: Oct. 24-Dec. 3: “Jim Waid: Botanical Improvisations” features a selection of works on paper including recent pastels, acrylics and watercolors that takes the viewer to the intimate world of nature, offering a nuanced understanding of Waid’s artistic process. Oct. 24: Artist’s reception, 5:30-7:30 p.m. When: 10 a.m.-6 p.m. Mondays-Fridays and prior to Arizona Theatre Company performances Where: 330 S. Scott Ave., Info: 624-7370, ethertongallery.com

TOSCANA STUDIO & GALLERY: Oct. 25-Jan. 8: “Glenna Gilbert-Jones: A Glorious Journey.” A retrospective of more than 50 years of work including oil paintings, watercolors, printmaking and sculpture. Oct. 25: Opening reception, 7-10 p.m. When: 10 a.m.-5 p.m. Mondays-Saturdays Where: 9040 N. Oracle Road, Oro Valley Price: free Info: 575-1445, toscanastudioandgallery.com

CONTINUING

ABA GALLERY: Closing Oct. 24: Oil paintings by Dragana Skrepnik. When: 9 a.m.-4 p.m. weekdays Where: at Alliance Bank of Arizona, 4703 E. Camp Lowell Road Info: 784-6021

AGUA CALIENTE PARK RANCH HOUSE GALLERY: Through Oct. 31: “Eclectic Expressions” features mixed media of watercolors, collage, monoprints, handmade journals, papers and jewelry by Junardi Armstrong. When: 8 a.m.-2 p.m. Tuesdays-Saturdays Where: 12325 E. Roger Road Info: 615-7855 Ext. 5, www.pima.gov/nrpr

ARIZONA HISTORICAL SOCIETY: Permanent: “Saving History: The George Chambers Family Legacy.” When: 10 a.m.- 3 p.m. Mondays-Fridays and 10 a.m.-1 p.m. Saturdays Where: 949 E. Second St. Price: $5 adults, $4 seniors 60+ and students ages 12-18. Children 12 and younger admitted free Info: 617-1143

ARIZONA STATE MUSEUM: Closing Oct. 26: “Anatomy of Sorrow” features paintings by renowned Tucson artist Daniel Martin Diaz. When: 10 a.m.- 5 p.m Mondays-Saturdays and noon-5 p.m. Sundays. Where: on the UA campus, (east of the main entrance on University Boulevard) Info: 621-6302, www.statemuseum.arizona.edu

ART GALLERY: Through Oct. 31: “Lawrence W. Lee: A Farewell Showing.” When: 11 a.m.-4 p.m. Wednesdays-Saturdays or by appointment at 405-5800 Where: 1122 N. Stone Ave. Info: 624-7099

ARTCULTURE PARTNERSHIP GALLERY: Through Nov. 15: “The Five Loves” features new paintings on copper, aluminum and steel by Ruben Urrea Moreno. When: noon-5 p.m. Tuesdays-Saturdays and by appointment Where: 945 E. 35th St. Info: 792-3617, www.artculturepartnership.org

ARTS INCUBATOR GALLERY: Closing Oct. 25: “Play” features works by local artists Jerry Jordon (aka Modernus), Craig Wilson (aka Popfutura), James Sizemore (Lord Loup’Rah) and Jessica Van Woerkom. Oct. 25: Blacklight Art Show & Dance Party, 8 p.m., with Cory and Noah Reason spinning the wheels of steel. Cost is $3. Black attire is strongly encouraged. When: 11 a.m.-3 p.m. Tuesday and Thursday, 7 p.m.-midnight Thursdays-Saturdays Where: 108 E. Congress St. Info: 891-8035, www.tenpoundpixel.com/play

ARTSEYE: Through Dec. 3: “20/20.” An exhibit celebration to mark Steve Kaiser’s 20th anniversary at Photographic Works. Oct. 11: Artist reception, 6-9 p.m. When: 9 a.m.-6 p.m. Mondays-Fridays, 10 a.m.-5 p.m. Saturdays Where: 3550 E. Grant Road Info: 325-0260, artseye.com

AZORA GALLERY: Through Oct. 31: “Lugares Prometidos or Promised Sites” features surrealistic architectural photographs by Mexican photographer Gabriel Figueroa Jr. and other regional artists. When: 11 a.m.-6 p.m. Tuesdays-Saturdays Where: 2870 E. Skyline Drive, Suite 170 Info: 577-5111, www.azoragallery.com

BOREALIS ARTS LLC: Through Oct. 31: “Urban Impressionists” features works by William Dubin and Harwood Steiger. When: 10 a.m.-6 p.m. Mondays-Fridays and 10 a.m.- 5 p.m. Saturdays Where: 6530 E. Tanque Verde Road, Suite 160 Info: 885-2157, www.borealisarts.com

CENTER FOR CREATIVE PHOTOGRAPHY: Through Nov. 2: “Accommodating Nature – The Photographs of Frank Gohlke.” Gohlke (b. 1942) is one of America’s leading landscape photographers. For more than 30 years, he has taken photographs that depict how Americans build their lives within a natural world that rarely matches the pastoral ideal. When: 9 a.m.-5 p.m. weekdays and noon-5 weekends Where: on the UA campus, 1030 N. Olive Road Info: 621-7968, www.creativephotography.org

CENTRAL ARTS GALLERY: Closing Oct. 24: “Basically Simple.” When: noon-5 p.m. Wednesdays-Fridays and Sundays, 10 a.m.-5 p.m. Saturdays Where: 274 E. Congress St. Info: 792-4503, www.centralartsgallery.org

CONTRERAS GALLEY: Closing Oct. 25: “Elements of Nature” features abstract acrylic paintings by George Welch, Pima College art faculty. When: 11 a.m.-5 p.m. Tuesdays-Saturdays Where: 110 E. Sixth St. Info: 398-6557, www.contrerashousefineart.com

DAVIS DOMINGUEZ GALLERY: Through Nov. 22: Works by Charlotte Bender (paintings/pastels) and Alfred Quiroz (paintings/drawings). Oct. 25: Opening reception, 6-8 p.m. When: 10 a.m.-5 p.m. Tuesdays-Fridays and 10 a.m.-4 p.m. Saturdays Where: 154 E. Sixth St., Info: 629-9759, davisdominguez.com

DEGRAZIA GALLERY IN THE SUN: Through Jan. 16: “Revolución: Tierra y Libertad.” The first formal exhibition of paintings by Ted DeGrazia that depict events of the Mexican Revolution includes 19 oils and 11 works on paper created by the artist from 1937-1973. When: 10 a.m.-4 p.m. daily Where: 6300 N. Swan Road Info: 299-9191, degrazia.org

DESERT ARTISANS GALLERY: Through Dec. 7: “Falling” features works by Tucson artists Margaret Shirer, Susan Libby, Stacey Hayes, Al Christensen and Joan Fimbel DiGiovanni. Oct. 18: Sidewalk sale, 10 a.m.-4 p.m. When: 10 a.m.-5 p.m. Mondays-Saturdays and 10 a.m.-1:30 p.m. Sundays Where: 6536 E. Tanque Verde Road, Info: 722-4412, www.DesertArtisans.com

DRAWING STUDIO GALLERY: Through Nov. 8: “Figures from Life.” This juried figure work show, chaired by Fred Sanchez, features works from the figure in a wide range of media. A side exhibit includes several master drawings by Harry Carmean. A concurrent figure show, “Contours and Character,” is featured at Tangerine Gallery. When: noon-5 p.m. Tuesdays-Saturdays Where: 33 S. Sixth Ave. Info: 620-0947, www.thedrawingstudio.org

ETHERTON GALLERY: Through Nov. 15: “The Figure Illuminated.” This exhibition presents three reflections on the mysteries and wonders of the nude, with works by Flor Garduño, Alvin Booth and Ralph Gibson. When: 11 a.m.-5 p.m. Tuesdays-Saturdays. Extended hours on Thursdays until 7 p.m. Where: 135 S. Sixth Ave. Info: 624-7370, www.ethertongallery.com

GREGORY SALE’S “LOVE BITES”: This exhibit, presented with the University of Arizona’s Poetry Center, takes on love, loss, and language by toying with the fluid parameters of public and private, prose and poem. Dec. 6: Artist talk, 4 p.m. Show runs through Dec. 20. When: noon-5 p.m. Mondays and Thursdays-Saturdays Where: MOCA on the Plaza (east gallery), 149 N. Stone Ave. Price: $5 general. Free to MOCA members Info: 624-5019, www.moca-tucson.org

HILARY MEEHAN: Through Dec. 30: “Hilary Meehan: Running for Her Life. A site-specific performative and interactive project that is equal parts political satire and self-help manual. Where: MOCA on The Plaza windows, 149 N. Stone Ave. Price: free Info: 624-5019, www.moca-tucson.org

JACOME PLAZA: Through Dec. 31: Public debut of Curt Brill’s new series of monumental (twice life-size and larger) figurative sculptures. This outdoor display is a joint exhibition of The Gallery at 6th & 6th and the City of Tucson Parks and Recreation Department. Where: Plaza in front of Joel D. Valdez Main Library, 101 N. Stone Ave. Info: 594-5500

JOEL D. VALDEZ MAIN LIBRARY: Closing Oct. 28: Works in oil and acrylic by Katherine Estrella. When: 9 a.m.-8 p.m. Mondays-Wednesdays, 9 a.m.-6 p.m. Thursdays, 9 a.m.-5 p.m. Fridays, 10 a.m.- 5 p.m. Saturdays and 1-5 p.m. Sundays Where: 101 N. Stone Ave. Price: free Info: 791-4010

JOSEPH GROSS GALLERY: Through Jan. 7: Works by Scott Ellegood. The artist creates portraits of emotion and memory, rendering what is hidden beneath a surface visually apparent. Oct. 23: Opening reception, 5-7 p.m. When: 9 a.m.- 5 p.m. Mondays-Fridays, noon- 4 p.m. Saturdays-Sundays Where: 1031 N. Olive Road Info: 626-4215, web.cfa.arizona.edu/galleries/ Directions: in the University of Arizona School of Art

LIONEL ROMBACH GALLERY: Closing Oct. 24: Works by Kate McHugh. When: 9 a.m.-5 p.m. Mondays-Fridays and noon-4 p.m. Saturdays and Sundays Where: 1031 N. Olive Road Price: free Info: 626-4215, web.cfa.arizona.edu/galleries/

LULUBELL TOY BODEGA: Closing Oct. 30: “Mamityville Horror.” Tucson artist MAM (Mark A. Molina) debuts his Hollywood Monsters series. As a graphic design student, MAM drew inspiration from pop art icons like Andy Warhol and Keith Harin, to create his own monster visions that he remembers watching on an old black-and-white TV every Saturday afternoon as a young boy. When: noon-6 p.m. Tuesdays-Saturdays Where: 439 N. Sixth Ave. Info: 622-5858, www.lulubelltoys.com.

MARK SUBLETTE MODERN: Continuing: “Modern Art for the Western Esthetic” features new paintings and sculpture by nationally acclaimed artists, including ceramics, wood and Native American antiques with a modern bent. When: 11 a.m.- 7 p.m. Mondays-Saturdays, 1-5 p.m. Sundays Where: in the Plaza Colonial, 7000 E. Tanque Verde Road Info: 722-7798, www.marksublettemodern.com

MOCA ON THE PLAZA (WEST GALLERY): Through Dec. 20: “Blood, Sea” features works by Janaina Tschape. The universe created by Tschape’s video beckons viewers into a parallel world of ambiguous scale – indeterminate in both time and space. When: noon-5 p.m. Mondays and Thursdays-Saturdays Where: 149 N. Stone Ave. Price: $5 general. Free to MOCA members Info: 624-5019, www.moca-tucson.org

MOUNTAIN SHADOW GALLERY: Through Oct. 31: New works by Tucson artist Judith D’Agostino, including a series of landscapes, some of which are based on regional locations. Oct. 9: Artist reception, 5-7:30 p.m. When: 10 a.m.-6 p.m. Mondays-Saturdays and 11 a.m.-5 p.m. Sundays Where: Gallery Row at El Cortijo, 3001 E. Skyline Drive, Suite 109 Info: 577-6301

MURPHEY GALLERY: Closing Oct. 30: Watercolors by Kathy Robbins and oils and pastels by Don Webber. When: 2-4 p.m. Tuesdays, Thursdays and Sundays Where: at St. Philip’s in the Hills Episcopal Church, River Road and Campbell Avenue Info: 299-7649

PHILABAUM GLASS STUDIO & GALLERY: Through Oct. 31: “For the Birds” exhibit features blown glass birds by Shane Fero. When: 10 a.m.-5 p.m. Tuesdays-Saturdays Where: 711 S. Sixth Ave. Info: 884-7404

RAICES TALLER 222 ART GALLERY AND WORKSHOP: Closing Oct. 28: “Puro Politico – Pure Politics.” An exhibition of work inspired by the country’s upcoming election featuring artwork by invited guest artists and gallery members. When: 1-5 p.m. Fridays-Saturdays or by appointment Where: 218 E. Sixth St. Info: 881-5335, www.RaicesTaller222.org

SAAVI GALLERY: Oct. 17-Dec. 31: “The Colors of My World” features watercolors by artist Rose Molin. Oct. 17: Artist reception, 6-8 p.m. with refreshments. When: 9 a.m.-4 p.m. weekdays Where: Southern Arizona Association for the Visually Impaired, 3767 E. Grant Road Price: free Info: 795-1331

TANGERINE GALLERY: Through Nov. 15: “Contours & Character: Artistic Visions of the Human Figure” features works from local artists. Live figure models during the reception and from 1-4 p.m. Saturdays. Bring a sketch pad. This show is concurrent with the “Figures from Life” exhibit at The Drawing Studio. When: 10 a.m.-5 p.m. Mondays-Saturdays Where: 2522 E. Fort Lowell Road, Info: 326-5028, tangerinegallery.com

TOHONO CHUL PARK: Exhibit Hall – Through Nov. 9: “Please Touch Again,” is the third in a series of “Please Touch” exhibits at the park. The show breaks art museums’ sacred rule by asking visitors to please touch the art, giving them a rare opportunity to enjoy a multisensory experience of artworks. People with vision loss are encouraged to attend the exhibit, which will be labeled in Braille and large print, and park docents will offer verbal description tours. Oct. 24: Artist’s reception, 5-8 p.m. (free admission). When: 9 a.m.-5 p.m. daily Where: 7366 N. Paseo del Norte, Price: $7 adults, $5 seniors/active military, $2 ages 5-12, $3 students with ID.Free for ages 5 and younger Info: 742-6455 www.tohonochulpark.org

TUCSON BOTANICAL GARDENS: Through Nov. 23: “Richard Laugharn: Photographs.” Over the past seven years, Laugharn has photographed more than 80 individual plants, including saguaros, mesquite and ironwood trees, as well as a variety of other desert perennials. When: 8:30 a.m.-4:30 p.m. daily Where: Gallery at the Gardens, 2150 N. Alvernon Way Price: $7 adults, $3 ages 4-12. Free for Garden members and ages 3 and younger Info: 624-7370, www.tucsonbotanical.org

TUCSON INTERNATIONAL AIRPORT: • Upper Link Gallery – Through Oct. 31: “Click” features works by Arnold Kolb and Earle Sidelle. • Center Pointe – Continuing through Dec. 30: “Dino” a new sculpture exhibit by Dana Smith. When: always open Where: 7250 S. Tucson Blvd. Price: free Info: 573-8187, www.tucsonairport.org

TUCSON MUSEUM OF ART: Through Feb. 15: “A Place of Refuge: Maynard Dixon’s Arizona.” The California-born Dixon (1875-1946) first traveled to Arizona in 1900 to absorb what he believed was a vanishing West. Dixon found Arizona a visually inspiring and spiritual place that shaped the course of his paintings and ultimately defined him. Nov. 12: Art Talk: “Maynard Dixon, Tucson’s Own,” 1:30 p.m. Beverly (Penny) David, reveals the life of Dixon in this illustrated presentation. Free with museum admission. When: 10 a.m.- 4 p.m. Tuesdays-Saturdays and noon-4 p.m. Sundays. Where: Tucson Museum of Art, 140 N. Main Ave. Price: $8 general, $6 seniors (60+), $3 students (13+). Children 12 and younger are free. Info: 624-2333, TucsonMuseumofArt.org

UA LIBRARY SPECIAL COLLECTIONS: Through Jan. 9: “Paginas de la historia de México: Excerpts from the Morales de Escárcega Collection.” When: 9 a.m.-6 p.m. Mondays-Thursdays and 9 a.m.-5 p.m. Fridays Where: University of Arizona, 1510 E. University Blvd. Info: 307-2774

UA MUSEUM OF ART: Through Nov. 9: “Jenny Schmid: The Vistas of Gender Utopia.” • On display through March 22: “Fernando Gallego and His Workshop: The Altarpiece from Ciudad Rodrigo.” When: 9 a.m.-5 p.m. Tuesdays-Fridays and noon- 4 p.m. Saturdays-Sundays. Closed Mondays and holidays. Where: 1031 N. Olive Road, Info: 621-7567, artmuseum.arizona.edu

WARD 6 COUNCIL OFFICE: Closing Oct. 28: “Autumn Kaleidoscope” features artwork in all mediums by the Southwestern League of Fine Arts. When: 9 a.m.- 5 p.m. Mondays-Fridays Where: 3202 E. First St. Info: 743-4238

CONRAD WILDE GALLERY: Closing Oct. 25: “Book Forms.” Guest curator Margaret Suchland gathered 14 award-winning artists from across the United States to feature a collection of one-of-a-kind handmade artists books. When: 11 a.m.-5 p.m. Tuesdays-Saturdays Where: 210 N. Fourth Ave. Info: 622-8997, www.conradwildegallery.com

WILDE MEYER GALLERY: Through Nov. 6: “Desert Autumn and Gold” features interpretations of the desert by artists Brenda Bredvik, Ka Fisher and Alix Stefan, among others. When: 10 a.m.-5:30 p.m. Mondays-Fridays, 10 a.m.-6 p.m. Saturdays and noon-5 p.m. Sundays Where: 3001 E. Skyline Drive, Suite 109 Info: 615-5222, www.wildemeyer.com

WOMANKRAFT ART GALLERY: Through Oct. 25: “Pieced Together – The Art of Collage” features works by Gayle Swanbeck and Donette Tyrrell. When: 7-10 p.m. 1-5 p.m. Tuesdays-Saturdays Where: 388 S. Stone Ave., Info: 629-9976 www.womankraft.org

More than $8 million in unclaimed economic stimulus rebates and tax refunds for Arizonans were returned to the IRS as undeliverable.

That means nearly 11,000 people around the state are owed money by the federal government, and need to update their mailing information to receive it.

A searchable list of those people is on the Citizen’s KNOWledgeNet online at tucsoncitizen.com/know/irs.

The average stimulus check amount for Arizona is $611. Tax refunds average $1,023. If you are owed money, visit irs.gov or call (866) 234-2942 for stimulus checks or (800) 829-1954 for tax refunds to find out how to update your address.

Though the deadline for claiming stimulus checks is Nov. 28, none exists for tax refunds.

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OUTSTANDING IRS PAYMENTS

A searchable list of people is on the Citizen’s KNOWledgeNet online at tucsoncitizen.com/know/irs

At least 5 percent of last year’s freshmen at the University of Arizona obtained a payday loan, a figure the surveyor described as “very alarming.”

Arizona’s Norton School of Family and Consumer Sciences conducted the survey, which measured the financial habits of 2,172 freshmen – about a third of the class – who enrolled in fall 2007.

Student use of payday loans more than doubled based on a survey taken a year ago that included freshmen through seniors, said professor Soyeon Shim, the group’s director.

“As consumers, students shouldn’t be using payday loans as a resort to deal with financial stress,” Shim said.

The survey results are being used by opponents of Proposition 200, who say payday loan stores prey upon vulnerable consumers, such as students, who need of a quick infusion of cash. Voters will decide upon the measure Nov. 4.

Opponents of the measure want the proposition defeated because its demise likely would force the industry to close its doors in Arizona.

Payday loan chains are bankrolling Proposition 200, which would repeal a state law that stops the licensing of payday lenders July 1, 2010. A lender needs a license to operate.

The measure also would lower fees, stop costly loan extensions and create repayment plans. Payday loan operators are offering the changes as an incentive to voters to let the stores stay in business.

Stan Barnes, chairman of the Yes on 200 campaign, said he didn’t know how to put the university study into context with the ballot measure.

“It sounds like a small number (5 percent) to me. I don’t know what it means to Prop. 200,” Barnes said. “All I’m thinking about is getting a yes on 200.”

Barnes said he did not know what percentage of Arizonans use payday loans, except the 640 branches in Arizona have “tens of thousands of customers.”

Shim said she’s not taking a position on Proposition 200.

Still, she said payday loans are expensive because the annual percentage rate would be up to 391 percent even if the measure passes.

DENVER (AP) — Freeport-McMoRan Copper and Gold Inc. on Tuesday reported its profit fell one-third amid a wobbly economy that kept commodity prices lower for much of the third quarter.

The results, which missed Wall Street estimates, sent stocks tumbling in afternoon trading.

The Phoenix-based company, the world’s largest publicly traded copper producer, said it is looking at cost-cutting measures, deferring or eliminating some projects and exploration.

At the beginning of the quarter, Freeport-McMoRan was selling copper at $4 a pound, generating cash flow, and investing in equipment and resources, President and Chief Executive Officer Richard Adkerson told analysts during a conference call.

Now, copper prices are hovering around $2 a pound while the costs of energy, diesel, steel and acid used in operations are dropping. “It’s pretty striking just how quickly this has changed,” Adkerson said. “Now we’ve had to change.”

Executives are limiting investments in some projects and operations, and reducing capital expenditures. “Fortunately, we don’t have to face refinancing any of our obligations, and we will earn enough cash to continue to invest in our business to maintain our resource, and to go forward,” he said.

For the July-to-September quarter, Freeport-McMoRan reported net income available to common shareholders of $523 million, or $1.31 per share, down 33 percent from a profit of $775 million, or $1.87 per share, in the year-ago quarter.

The most recent quarter reflected $61 million in charges for unrealized losses on copper futures contracts; a $16 million charge for lower cost or market inventory adjustments. The year-ago quarter reflected a $44 million non-cash accounting adjustment.

Revenue dipped to $4.62 billion from $5.07 billion.

Analysts polled by Thomson Reuters had forecast on average earnings of $1.43 per share on revenue of $4.81 billion.

Freeport-McMoRan sold 1 billion pounds of copper at an average price of $3.14 per pound, which is 11 percent lower than $3.53 it commanded in the year-earlier period. Meanwhile, the company sold 307,000 ounces of gold at an average price of $869 — up 25 percent from the year-ago price.

The company sold more molybdenum in the latest quarter, for a higher selling price. Freeport-McMoRan sold 19 million pounds of molybdenum at an average price of $32.11, up from 16 million pounds for an average price of $27.89, in the 2007 quarter.

For the year, Freeport-McMoRan said it expects to sell 4 billion pounds of copper, 1.2 million ounces of gold and 74 million pounds of molybdenum.

Adkerson said they have decided to delay expansion projects at Sierrita and Bagdad mines and the restart of the Miami mine in Arizona. They are assessing the timing of developments at two South American mines but plans are still on track to reopen the Climax molybdenum mine at Leadville, Colo., in 2010.

The company also issued revised projected copper sales of 4.3 million pounds for 2009 and 4.6 million pounds 2010, cutting each year by 200 million pounds.

Shares tumbled $3.98, or 10.8 percent, to $32.74. Over the past year, the stock has ranged between $30.03 and $127.24, and is off 68 percent since January.

DENVER – Freeport-McMoRan Copper and Gold says third-quarter profits fell nearly one-third as copper prices declined.

The Phoenix-based mining giant blamed lower commodity prices and economic uncertainty and said it’s revising operating plans to lower costs.

For the July-to-September quarter, Freeport-McMoRan reported net income of $523 million or $1.31 a share Tuesday. That compares with a net income of $775 million or $1.87 per year in the year-ago quarter. Revenue dipped to $4.6 billion from $5 billion.

Analysts polled by Thomson Reuters had forecast on average earnings of $1.43 a share on revenue of $4.8 million.

Shares tumbled 5.6 percent to $34.66 in premarket trading.

Congress passed new and extended tax credits with the financial bailout package that are expected to prompt thousands of people to add solar- and wind-energy systems to their homes.

But the incentives for some systems are so much better than existing tax credits that many people also are delaying their home improvements until next year when the new credits kick in.

The new incentives will slash an additional $7,000 or more off the cost of a solar-energy system compared with today’s credits, and $4,000 more off household wind turbines.

Congress haggled all year over the 30 percent tax credit for solar projects, capped at $2,000 for homeowners, that was set to expire Dec. 31.

That prompted many people to rush and purchase solar-energy systems before the credit expired.

Those people, like retiree Dru Bacon of Goodyear, can’t help but feel slighted because the $2,000 federal tax credits they received are much smaller than what people will get next year.

Systems installed from 2009 to 2016, or simply not turned on until then, will get a true 30 percent credit applied to the bottom line of their taxes

Bacon had a system installed this year that retailed for $38,000. He got incentives from the state and Arizona Public Service Co. worth more than $18,000, and the maximum federal tax credit of $2,000.

But if he had waited until 2009, he would have gotten a federal credit worth $11,400.

That would have cut his out-of-pocket expense from $18,000 to $8,600.

Bacon still supports solar, but regrets that 48 people in his neighborhood association are installing solar-energy systems. Some already turned on their systems and are not able to get the bigger rebate.

“People I influenced to do it in ’08 are probably a little discouraged in me,” he said. “But the credit could have gone away, and it looked like it was going to. I think what spurred it was the financial disaster we are all living through.”

Solar installer PerfectPower Inc. in Scottsdale has already heard from customers with pending projects who want to push them into next year to get bigger federal rebates, sales engineer Matt Kelly said.

“We’ve notified our customers, and given them that option,” he said. “There were some folks where it was already in place, and everybody opted to wait to have their system turned on.”

The credits didn’t change for all technologies. Solar water heaters, which are much more affordable but use a different technology, still have a $2,000 cap.

The cap is more than enough to cover 30 percent of most projects, according to Sun Systems Inc., which sells solar water heaters made by its sister company, Integrated Solar in Phoenix.

The average system sells for less than $6,500, President Tom Bohner said.

“On one hand, I’m kind of glad the cap did not get raised,” he said. “The current cap allows me to sell a water heater in the mid-$6,000 range and get the full credit. If they raised the cap, I guarantee some fly-by-nights would be in here selling $9,000 and $10,000 systems.”

Bohner’s 40 employees expect steady business and are thankful the credit was extended at all, even if their solar-thermal technology didn’t get the same bonus that photovoltaic equipment was given.

Without the extension, the company’s systems essentially would have cost homeowners $2,000 more after the first of the year.

“What is finally happening, is all the rich people that said they would do solar have done it,” he said. “Now it is trying to get down to the masses. The masses will be a much tougher sell. But the world is figuring it out. The sunshine that falls on your roof is more than enough to power your home and heat your water.”

Small wind turbines now qualify for as much as $4,000 under a similar tax credit, which likely will help companies like Southwest Windpower Inc. in Flagstaff reach more customers.

“This is a first for wind projects under 100 kilowatts,” marketing manager Miriam Robbins said. “Suddenly, wind is becoming more mainstream just like solar because there are a lot more systems available to the average consumer.”

The company has seen sales double in each of the past two years and welcomes the new incentive, she said.

“This just helps sweeten the pot and helps the consumer that maybe was on the fence (about buying a wind turbine) go over it more quickly,” Robbins said.

———

Incentives at work

Following are examples of how incentives help finance various home-energy projects:

• Photovoltaic solar panels

Average system cost: $42,600.

Incentives available: Utility and state incentives of $19,900 plus $12,780 from the expanded federal tax credit.

Out-of-pocket expense: $9,920.

Payback: About 6 1/2 to eight years.

• Solar-thermal water heating

Average system cost: $5,000 to $6,500.

Incentives available: $1,000 credit from the state, 30 percent federal credit capped at $2,000, utility rebates of $1,200 to $1,800 depending on the appliance’s performance rating.

Out-of-pocket expense: $750-$1,500.

Payback: Two to five years.

• Backyard wind turbines

Average cost: $12,000-$18,000 for a 2.4-kilowatt residential turbine.

Incentives: Arizona Public Service Co. offers $2.50 per watt in system capacity up to 50 percent of the retail cost, or $6,000 in this case, with a new federal incentive worth $2,400 for a system of this size.

Out-of-pocket expense: $3,600-$9,600.

Payback: Five to 11 years.

Sources: American Solar Electric Inc., Sun Systems Inc. and Southwest Windpower Inc.

Style-conscious consumers may be counting their pennies, but some haven’t retreated to the shopping sidelines. In one response to the weaker economy, they’re turning to clearance stores and outlet centers for style and luxury at bargain prices.

Like Wal-Mart and other discounters, outlet shopping-center companies such as Arizona Mills owner Simon Property Group Inc. and Charlotte, N.C.,-based Tanger are reporting sales growth despite the overall wintry sales climate.

And in metro Phoenix, stores and outlet centers such as Saks Fifth Avenue Off 5th and Outlets at Anthem are growing.

Off 5th, located at Arizona Mills in Tempe, just updated the look of its store and added new exclusive labels. The Anthem center, north of Phoenix, is expanding and adding more luxury stores.

Tanger Factory Outlet Centers Inc., plans to break ground next year on a West Valley center. “People still want life’s luxuries, but they don’t want to pay as much for them,” said JoAnn Truax, Outlets at Anthem’s general manager.

Truax believes the feeble economy has helped Outlets at Anthem so far this year.

“We actually saw an increase in traffic week to week this summer,” she said.

Linda Humphers, editor-in-chief of Value Retail News, published by the New York-based International Council of Shopping Centers, said, “Outlet shoppers are people who don’t want to lower their standard. They don’t want to go to Wal-Mart.”

Cheap and profitable

Indianapolis-based Simon Property Group features Off 5th and Neiman Marcus Last Call Clearance Center in its Arizona Mills center. It also owns the ultra-high-end Desert Hills Premium Outlets near Palm Springs, where tenants include Coach, Burberry and Dolce and Gabbana.

Last quarter, Simon reported 5.5 percent sales growth, to $519 a square foot, and its stock rose 7.9 percent.

The privately held Craig Realty Group, of Newport Beach, Calif, owns Outlets at Anthem. It does not disclose overall earnings, but Truax said her center’s sales in 2007 were $300 a square foot, up from $290 in 2006 and $270 in 2005.

Nordstrom, one of the few stores that will talk about outlet earnings, said sales at its Nordstrom Rack, a more upscale outlet than Last Chance, grew 8.7 percent in 2007. That’s less than the double-digit growth Rack saw in previous years but more than Nordstrom’s overall sales growth of about 3 percent.

Jim Benson, director of advertising and sales promotion for Dillard’s western division, said his company has been so impressed by Nordstrom’s outlet sales that it is converting its store at Metrocenter in Phoenix into a clearance center. “There is definitely a clearance-store customer we need to cater to,” he said.

On the hunt for merchandise that once was for sale at big-name stores, clearance-store customers gravitate to places such as Last Chance, the new Dillard’s center or Neiman Marcus Last Call.

‘Treasure hunters’

Some retail experts call them “treasure hunters.”

“Our customer is out there looking for treasures all the time,” said Gayle Tremblay, vice president of the clearance division of Neiman Marcus.

On a recent weekday, dozens of shoppers filled Camelback Colonnade’s Last Chance, one of just two Nordstrom clearance centers in the nation. They dug through racks and tables of merchandise, hunting for coveted labels like 7 for All Mankind, Etnies and Juicy Couture.

“There is nothing quite like this place,” Mesa resident Marcy Anderson said. “I saved hundreds.”

Chicago retail analyst Michael Silverstein is the co-author of a book called Treasure Hunt: Inside the Mind of the New Consumer. He says many treasure hunters earn middle incomes but “budget for self-indulgence.”

“They know what goods are priced at and will hunt down bargains,” Silverstein said.

Vacationing retirees Anne Cottrell of Milwaukee and her friend Ginne Helin, of Dodgeville, Wis., sounded like typical treasure hunters as they talked about their purchases in Outlets at Anthem’s food court. Cottrell wore a turquoise necklace she purchased for $14 after several markdowns.

“We have been here a week, and all we have done is shop,” Helin said. “You can tell the economy is hurting. Everything is on sale.”

Retailers say traditional outlet shoppers want deals but not necessarily clearance items. They like classic, non-fussy lines of clothes, shoes and handbags that some brands create specifically for outlets.

Even the wealthy

“People willing to crawl on the floor to grab a (clearance) handbag are not outlet shoppers,” Humphers said.

Some outlet shoppers have high-enough incomes to walk into a full-line Saks or Coach and pay full price.

But why do that when they can walk into an outlet and pay less?

“People don’t get rich by throwing their money away,” said luxury-retail consultant Pam Danziger, the author of several books about high-end retailing.

Robert Wallstrom, president of Saks Fifth Avenue Off 5th, said his stores recently went to a more open, contemporary look and changed the merchandise to better appeal to the shoppers Danziger describes. He said the average annual family income of Off 5th shoppers is about $100,000.

“They are fashion-conscious, but they are definitely also thinking of value,” he said. “They also want speed and an easy transaction.”

While Saks department-store customers get phone calls and handwritten notes from sales associates, these shoppers respond to e-mail blasts, especially if they contain coupons.

Everyday prices are about 30 percent below what a customer would find at a Saks department store, he said.

Wallstrom said Off 5th still carries clearance items from the department store, but its bigger emphasis is on brands created just for the outlet: Threads is a line of casual, everyday wear, Cashmere is work attire, and 548 is outlet’s contemporary brand.

“We carry this year’s trends at outlet prices,” he said.

NEW YORK – Wall Street snapped back Tuesday after its biggest sell-off in years amid growing expectations that lawmakers will salvage a $700 billion rescue plan for the financial sector. But the seized-up credit markets where businesses turn to raise money showed no sign of relief.

The recovery in stocks wasn’t unexpected as carnage on Wall Street often attracts bargain hunters, though questions remain about how investors will proceed. Without a bailout plan in place to absorb soured mortgage debt and other bad loans from battered banks, investors are left wondering what might restore confidence in lending.

Major stock indexes were almost a sideshow during the session, with the credit markets as the main event. A key rate that banks charge to lend to one another shot higher, a tightening of the availability of credit that could cascade through the economy.

Traders on the floor of the New York Stock Exchange, still stunned from Monday’s 778-point rout in the Dow Jones industrial average, warned that the government needs to approve a plan that will sweep away the fears that hobbled the credit markets. While U.S. political leaders have vowed to revisit the issue, the House isn’t slated to meet again until Thursday.

“If it doesn’t pass, then look out below,” said Jason Weisberg, an NYSE trader for Seaport Securities. “It could get ugly.”

Though the blue-chip index rose nearly 500 points by late afternoon, the main worry for traders is that a lack of a plan will make it nearly impossible for some companies to fund basic operations like making payroll. Participants in the credit market buy and sell debt that companies use to finance operations.

The benchmark London Interbank Offered Rate, or LIBOR, that banks charge to lend to one another, rose sharply Tuesday, making it more expensive and difficult for consumers and businesses to borrow money. In addition, credit card debt and more than half of adjustable-rate mortgages are tied to LIBOR, so an increase isn’t welcome for many consumers.

LIBOR for 3-month dollar loans rose to 4.05 percent from 3.88 percent on Monday. LIBOR for 3-month euro loans, meanwhile, rose to 5.27 percent, from 5.22 percent Monday.

Critics of the bailout package believe that it was too costly and wouldn’t have done enough to jump-start lending. To maintain pressure ahead of Thursday’s likely vote, President Bush said in a statement from the White House early Tuesday that the damage to the economy will be “painful and lasting” unless Congress passes the bailout measure.

On Wall Street, many traders likely will proceed cautiously while they gauge prospects for resurrecting the bailout effort, which was backed by leaders of both parties.

“I’m not getting the sense that investors are going to be jumping in with both feet until there is some kind of resolution on the plan,” said James Maguire, an NYSE floor trader with Christopher J. Forbes. “If there’s a no vote, we’re going to see a lower overall drift in stocks. It will be a slow bleed.”

Traders also will likely focus on how the bloodshed will look on paper. Tuesday marks the final session of the third quarter — and what is typically the worst month for the stock market — so some portfolio managers might try to do what they can to dress up their performance. Others might simply wish to dump holdings in an unpopular corners of the market like the financial sector.

The Dow rose 485.21, or 4.68 percent, to 10,850.66 after falling nearly 7 percent on Monday to its lowest close in nearly three years. It was the largest point drop and 17th largest percentage drop in the blue chip index. The percentage decline was far less severe than the 20-plus-percent drops seen in the stock market crash of October 1987 and before the Great Depression.

Broader stock indicators also bounced higher. The Standard & Poor’s 500 index recovered 58.35, or 5.27 percent, to 1,164.74, and the Nasdaq composite index rose 98.60, or 4.97 percent, to 2,082.33.

The S&P fell 8.79 percent Monday, while the Nasdaq lost 9.14 percent.

The yield on the 3-month Treasury bill rose Tuesday to 0.89 percent from 0.14 percent late Monday. The yield fell Monday as investors clamored for the safety of government debt. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.83 percent from 3.58 percent late Monday. The dollar rose against other major currencies and gold prices advanced.

While investors focused on what might come from Washington this week, Wall Street was cheered by several economic readings.

A private research group reported that consumer confidence rose unexpectedly in September. The Conference Board said Tuesday its Consumer Confidence Index rose to 59.8 from a revised 58.5 in August; Wall Street had expected a reading of 55.5, according to Thomson/IFR. The reading, which doesn’t reflect attitudes following Monday’s steep stock market sell-off, remains near a 16-year low.

The Chicago Purchasing Managers’ index, which measures business conditions across Illinois, Michigan and Indiana, came in at 56.7 compared with 57.9 in August — a second straight month of a strong reading.

Light, sweet crude rose $4.27 to settle at $100.64 on the New York Mercantile Exchange. Oil fell more than $10 a barrel Monday as investors worried that a weaker economy would curtail demand.

Advancing issues outnumbered decliners by about 2 to 1 on the New York Stock Exchange, where volume came to a light 1.02 billion shares.

The Russell 2000 index of smaller companies rose 21.86, or 3.32 percent, to 679.58.

Overseas, Japan’s Nikkei stock average fell 4.12 percent. But Hong Kong’s Hang Seng index rose 0.76. Britain’s FTSE 100 rose 1.74 percent, Germany’s DAX index added 0.41 percent, and France’s CAC-40 rose 1.99 percent.

By Joe Bel Bruno, Tim Paradis

The subprime-mortgage meltdown and ensuing credit crunch resembles a Greek tragedy — a long one.

It has meandered through several acts, taken numerous plot twists and involved an ever-growing cast of characters.

The crisis is complex, and blame can be spread broadly. The following chart lists the most prominent players who contributed to the drama.

But it’s only a partial list since it excludes, for the sake of brevity, others who played supporting roles. These included appraisers who bloated values on homes, various nonprofit agencies that encouraging homeownership for low-income people with risky credit and even the media for missing ample warning signs.

But the list below shows the major players, the stars who made it happen.

Real estate agents

What happened: Agents and brokers worked on the front lines. They showed properties, put buyers in touch with lenders and earned commissions. They dealt with appraisers and title officers, who also wanted to see deals close so they could generate fees. On balance, real estate marketers contributed to the hype and glossed over problems such as risky loans and minimal down payments. Many probably believed real estate prices could never fall. Case in point: The chief economist of the National Association of Realtors (NAR) wrote a book during the bubble titled “Why the Real Estate Boom Will Not Bust – and How You Can Profit From It.”

Current situation: Agents, brokers, appraisers, title officers and others tied to residential real estate have been hurt, with commissions and fee income drying up and many leaving the business. As a plus, real estate professionals have become more attuned to negative-amortization and other risky loans, and more aware of the drawbacks of directing people into homes they can’t afford.

Next act: Residential real estate already enjoys some of the best income-tax breaks around, including the mortgage-interest deduction and ability to exclude capital gains on primary residences. Still, the industry wants more tax assistance, with the NAR and other groups backing passage of federal stimulus such as a tax credit for first-time buyers.

Home builders

What happened: Residential developers rode the crest of the real estate wave. Critics believe many builders inflated demand by dangling various incentives to buyers, including financing. “Builders jumped into the mortgage business to a degree they never had,” read a Business Week article. Shares of building companies emerged as Wall Street darlings, with hefty executive-pay packages. Some builders eventually clamped down on purchases by investors and speculators but it wasn’t a universal practice. These absentee buyers were among the first to bail when prices started heading south.

Current situation: Builders got swamped when the wave finally broke. Some firms failed or had to reorganize. On Wall Street, homebuilders got slammed, with a Dow Jones index of home-construction stocks losing 70 percent of its value since its inception in May 2006. But industry employment hasn’t suffered as much as predicted because commercial and public projects have taken up some slack.

Next act: The building industry also seeks federal tax help including the credit for first-time buyers to stoke demand. The National Association of Home Builders said it has “initiated an all-out effort to get Congress to pass badly needed stimulus legislation.” In a hopeful sign, homebuilder stock prices have stabilized in recent weeks — a possible signal the worst is over.

Lenders

What happened: Mortgage brokers, banks and other lenders provided the funds so that unqualified applicants could buy homes. Brokers don’t lend their own money but serve as middlemen, collecting commissions but sometimes without much regard to whether borrowers can make payments. Many banks weren’t much better, selling loans to third-party investors while collecting fees. It didn’t help that lenders unveiled innovative but risky mortgages, such as negative-amortization and optional-payment loans. Plus, many brokers and lenders never verified a borrower’s job status, income or assets because they were passing the risk along.

Current situation: Many lenders have paid a steep price for their involvement. Hundreds of mortgage firms have failed or have been taken over, including Countrywide Financial, IndyMac Bank and Ameriquest. Banks have reported a surge in non-performing assets and have had to scramble to put up reserves to cover those losses. Industry profits are down sharply.

Next act: Many banks aren’t lending as much money now, and it’s uncertain when that will change. Also, lenders aren’t using risky mortgages as much, and they’re paying closer attention to the application process. Banks are watching carefully for payment problems on auto loans, credit cards and other types of loans.

Borrowers

What happened: Before the crisis hit, homeownership seemed more attainable than ever. Because many of the newest home buyers had borderline credit, they could qualify only for risky subprime loans. Many borrowers didn’t understand their loan terms, especially the potential for payments to spike when low teaser rates expired. Nor were all borrowers honest, with some studies estimating most subprime applicants lied or omitted key information. Some borrowers may have tried harder to adjust to higher monthly payments but gave up when slumping prices left them owing more than their homes were worth.

Current situation: The homeownership rate peaked above 69 percent in 2004, but now it’s dropping. Blacks and Hispanics have been especially hard hit, as they took out a large slice of subprime loans. Credit on mortgages and other loans has gotten tighter for borderline borrowers. Delinquencies and foreclosures further have damaged credit scores for many borrowers.

Next act: Many individuals have put homeownership on hold while they grapple with credit-score damage from delinquent payments and foreclosures. In the future, more people will have to buy homes the old-fashioned way — by scrapping together a down payment.

Investors

What happened: Lenders packaged the subprime mortgages they generated for resale to investors on Wall Street, thus transferring risk down the line. These bondlike investments seemed appealing because they offered enticing yields for what buyers thought were low risks during a period of skimpy interest rates. Yet investors far removed from the mortgage-origination process didn’t understand the risks they were assuming. Some hedge funds bought these securities with heavy use of leverage and got slammed when the market froze. The Bear Stearns collapse stemmed largely from the firm’s hedge-fund exposure.

Current situation: Investors have borne much of the brunt of the subprime mess and broadening credit crunch, from players such as Bear Stearns to financial giants such as Merrill Lynch and Citigroup, both of which were forced to raise cash. The market for some debt instruments froze. Even the stock market swooned because of the crisis’ impact on the economy and erosion of confidence.

Next act: The crisis slowed the packaging of mortgages and other assets into securities but won’t stop it. Still, investors now demand more information about these deals and higher returns. Critics want more regulation of hedge funds, those secretive partnerships that seem to pop up in each crisis.

Federal Reserve

What happened: Many blame the central bank under Alan Greenspan for keeping interest rates too low and for boosting the nation’s money supply too much. This created an easy-credit environment that encouraged less-qualified home buyers. It also created a period of such low yields that many investors sought better returns in securities backed by subprime mortgages. Critics also say the central bank encouraged investors to take too much risk because of its implied help in arranging bailouts — the “moral hazard” idea. A precedent was set when the Fed helped rescue a prominent hedge fund in 1998.

Current situation: Once the crisis broke, the Fed acted aggressively and in various ways to contain it. The central bank cut interest rates to perk up the economy and provided easier credit to banks, Wall Street firms and even mortgage giants Fannie Mae and Freddie Mac to prevent a cascade of failures. The Fed now is moving more slowly, trying not to stoke inflationary pressure.

Next act: The Fed has changed its role, transforming itself into a lender of last resort for financial firms beyond just commercial banks. Chairman Ben Bernanke is asking for broader powers from Congress to help the Fed oversee a more complex financial landscape.

Other regulators

What happened: U.S. and state banking-oversight agencies, including the Fed here too, are accountable and probably deserve some blame for allowing excesses to multiply, from lax underwriting to the prevalence of mortgages with negative amortization and other risky features. Also, regulators didn’t seem especially concerned by the concentration of some banks’ lending portfolios in real estate — a problem that plagues Arizona. On the other hand, regulator attitudes are somewhat understandable considering residential real estate had never suffered a national slump like the current one. Few people saw the train wreck coming.

Current situation: Bank regulators are trying to put out the brush fires from the credit crisis in the form of bank failures. Only five banks have gone under so far in 2008, but the list is growing and includes a big subprime-loan specialist, IndyMac Bank, the second-largest failure. Regulators haven’t banned most types of risky mortgages, but market forces have discouraged their use.

Next act: Look for changes in the regulatory landscape. The Treasury Department wants clearer roles and fewer government regulators. In a related vein, it also seeks optional oversight of insurance firms at the federal level to complement the current system of state-only regulation.

Rating agencies

What happened: Firms including Standard & Poor’s and Moody’s rate bonds to help investors analyze the risk and return trade-off. Critics say the rating agencies masked the crisis by giving inflated grades to mortgage-backed securities underpinned by subprime loans. Critics also contend the rating agencies harbored actual or perceived conflicts of interest, because the investment banks that packaged those securities for sale to investors are the ones who paid for the ratings. Of note, the diversification created by linking dozens of mortgages to a given security didn’t help lessen risk as expected.

Current situation: The credit-rating agencies have gotten tougher in their grading of mortgage-backed securities and have announced steps to reduce actual or perceived conflicts of interest. Downgrades of mortgage securities raise an interesting issue, because pension funds and some other investors can hold only those bonds with sufficiently high grades and will have to dump lower-rated ones.

Next act: As long as investors demand a shorthand way to assess risk, bond ratings will have a place. Still, critics would like to see the cost of ratings paid by investors rather than the firms that sell bonds. Some critics also call for agencies to split the rating side of their business from debt-consulting roles.

White House and Congress

What happened: It’s a stretch to blame the administration for the crisis, but government policy has for years encouraged homeownership through tax breaks and other incentives. Also, banks are required to offer loans to lower-quality borrowers under the Community Reinvestment Act. Under President Bush, the White House has become a vocal proponent of consumer spending to keep the economy afloat (as in the aftermath of the Sept. 11 attacks). Such policies can be viewed as antagonistic to saving. That’s notable because many subprime borrowers made little or no down payments, in part because they had little cash to put down.

Current situation: The White House and Treasury have spearheaded various efforts to ease the crisis, from asking lenders to delay interest-rate resets on subprime loans to asking lenders to hold off on some foreclosures. The White House and Congress also agreed on this year’s stimulus tax rebates to boost consumer spending and mute fallout on the economy from the credit crunch.

Next act: Congress and the White House are working on a mortgage-relief bill that would let tens of thousands of strapped borrowers refinance into lower-cost loans backed by the Federal Housing Administration. Future legislation will hinge on who wins the election.

Foreigners

What happened: The subprime mess is mostly a domestic issue, but it has shown up in a few other nations, including Britain. Dozens of foreign banks and investors took big stakes in U.S. mortgage securities. More fundamentally, many believe aggressive foreign purchases of U.S. Treasury bonds, especially by the Chinese, kept interest rates here artificially low while the crisis was building. That may have allowed more borderline borrowers to qualify for mortgages and encouraged speculation in general. Those purchases were made possible by China’s big trade surplus with the United States.

Current situation: Foreign banks from Europe to Asia have suffered notable losses from their exposure to U.S. subprime bonds, and global stock markets have tumbled in lockstep. Still, foreigners, including controversial government-controlled investment funds, have stepped up to the plate with cash infusions, helping to stabilize firms like Merrill Lynch and Citigroup.

Next act: Foreigners have been big investors in America since colonial days, and that won’t change. In fact, foreigners may become more critical in supplying capital to U.S. firms. Sovereign investment funds controlled by various foreign governments will continue to come under scrutiny.

The number of homes for sale in the Tucson area in August fell, indicating the market may be stabilizing, according to figures released by Tucson Association of Realtors.

However, the median sales price of homes continues to fall here. It was $185,000 in August, down $14,000 from July. The highest median sales price was recorded in November 2005, when it hit $226,000, Multiple Listing Service figures show.

The number of homes for sale in August was 7,763. During the late 1990s and through 2004, the number of active listings generally ran between 3,600 and 5,000.

The average number of days on the market also fell in August. It dropped to 77 from a high of 83 in January.

“Although the bottom of our market will continue to be bumpy, the positive aspects reinforce that we are in a recovering market,” wrote Kimberly Clifton, MLS president.

More help is on the way for Arizonans struggling to keep their homes.

The state is funding a $13.6 million initiative to help stem the growing foreclosure problem and aid the rising number of homeless people. The two problems have become related as more families losing their homes can’t find places they can afford to rent.

The funding, the largest the state has set aside for foreclosure help, was announced Wednesday at the Arizona Department of Housing’s annual conference in Flagstaff. The money will come from the Arizona Housing Trust, which is funded from a percentage of the sales of unclaimed properties in the state, such as bank deposits. No taxpayer money is contributed to the trust, which varies in size each year.

About $6 million will expand current housing programs. The rest will be used for new programs.

The help comes as pre-foreclosures, or notice of trustee sales, in metropolitan Phoenix hit a new high of 7,271 in August, according to the real-estate-data firm Information Market. Foreclosures in the Valley have been hovering around 4,000 for each of the past few months but are bound to climb if more struggling homeowners don’t get help.

“Everyone deserves a safe, decent and affordable place to live,” Housing Department Director Fred Karnas said.

He said one of his most memorable moments was on a Saturday morning earlier this year. He was at Phoenix City Hall for a foreclosure-counseling conference and was taken aback when he saw more than 100 families waiting in line just for a chance to talk a housing counselor.

Arizona, which has one of the fastest-growing foreclosure rates in the country, received $1.3 million from the National Foreclosure Mitigation Counseling Program earlier this year.

It was the first federal funding just for foreclosure prevention the state has received and was far below what some other states with lower foreclosure rates got.

It’s clear by Arizona’s rising foreclosures that more help is needed. Housing counselors at many of the state’s non-profits are swamped, and lenders faced with mounting losses don’t have enough resources to help all the struggling borrowers.

“The bottom line is that Arizonans are hurting from the multiple impacts of rising costs for gas and groceries to dwindling home values and the loss of homes,” Gov. Janet Napolitano said.

Foreclosure filings in August increased 27 percent compared to the same month a year ago, a significantly slower pace than in previous months, according to data released Thursday.

Nationwide, 303,800 homes received at least one foreclosure-related notice in August, up 12 percent from July, RealtyTrac Inc. said. That means one in every 416 U.S. households received a foreclosure filing last month.

August’s increase, however, was smaller than the two prior months. June and July both had year-over year increases in foreclosure filings of 50 percent or more. Still, the total number of foreclosure filings is still the highest since RealtyTrac began issuing its report in January 2005.

Irvine, Calif.-based RealtyTrac monitors default notices, auction sale notices and bank repossessions. More than 90,893 properties were repossessed by lenders nationwide last month — up more than half from 43,141 in August 2007, the company said.

The top three states in foreclosure rates were Nevada, California and Arizona, in that order, RealtyTrac said. Florida, Michigan, Georgia, Ohio, Colorado, Illinois and Indiana rounded out the top 10, though Michigan, Georgia, Ohio and Colorado all reported rate decreases year-over-year.

Weak sales, sinking home values, tighter home loan lending practices and a slowing U.S. economy hamstrung by high fuel prices has left some homeowners with few options to avoid foreclosure. Many can’t find buyers or owe more than their home is worth and can’t refinance into an affordable loan.

Banks and mortgage investors are also holding a glut of foreclosed properties and are slashing prices to get them off the books.

On Thursday, four Democratic senators urged the mortgage companies Fannie Mae and Freddie Mac to freeze foreclosures for 90 days on loans they hold. The troubled companies, seized by the government Sunday, should help struggling borrowers swap their mortgages for more affordable loans and stay in their homes, the lawmakers said.

An estimated 2.8 million U.S. households will face foreclosure, turn over their homes to their lender or sell the properties for less than their mortgage’s value by the end of next year, predicts Moody’s Economy.com.

James J. Saccacio, chief executive officer of RealtyTrac, said the lower percentage increase last month is due to a big spike in activity in August 2007. Last month, default activity was up 10 percent from a year ago and auction activity up 7 percent year-over-year, Saccacio said.

“The increases in default and auction activity could be slowing down partly as the result of new legislation passed in several states that is designed to give homeowners in distress more time before foreclosure proceedings are initiated,” Saccacio said.

The next six months will be critical in terms of the housing crisis, noted Albert Saiz, assistant real estate professor at Wharton School of Business. Consumers and investors will be tracking volatile financial markets, judging the success or failure of this year’s housing bill, monitoring the government bailout of Freddie and Fannie, and anticipating the impact of a new president, he said.

On the bright side, if home prices and sales stabilize or improve, the foreclosure situation could get better.

But the slow economy, high unemployment and volatile financial markets present obstacles to improvement in the foreclosure situation, Saiz said.

Together, California, Florida and Arizona accounted for more than half of the nation’s volume of foreclosure activity.

Last month, California’s foreclosure activity increased more than 40 percent from July and more than 75 percent from August 2007.

The California cities of Stockton, Merced and Modesto were 1-2-3 in top metro foreclosure rates. July’s leader, the Cape Coral-Fort Myers, Fla., metro area, dropped to sixth. Las Vegas came in seventh.

Consumer financial stresses aren’t showing signs of abating as Tucson-area bankruptcy filings in August climbed 34 percent above the number filed a year ago.

The U.S. Bankruptcy Court in Tucson recorded 352 filings in August as consumers struggled with housing woes, job losses and other problems.

U.S. filings rose 29 percent in August to 96,413, hitting the highest total in nearly three years, the American Bankruptcy Institute and National Bankruptcy Research Center reported.

Tucson’s job-growth engine has slipped into reverse. The local economy had 6,000 fewer jobs last month than in July 2007, according to latest figures from the Department of Economic Security.

Also, housing prices here are weak.

The median price of resale homes in Tucson dipped in June, to $188,726 from $195,000 in May, and foreclosure sales accounted for 17 percent of all resales in June, according the Southern Arizona Housing Market Letter,

“You’re seeing this domino effect,” Phoenix bankruptcy attorney Diane L. Drain said.

The list, she said, now includes subcontractors hurt by the housing slump, the upper echelon stretched too thin and homeowners caught by a surprise freeze in their home-equity lines of credit.

“Unemployment, medical problems and divorces still drive many bankruptcies, as before,” Drain said. “But, now, you’re seeing problems with real-estate people, investors and others.”

Three-quarters of Tucson-area filings are Chapter 7s, which offer a fresh start to people who qualify.

Most of the rest are Chapter 13 procedures built around debt-repayment plans.

The Tucson bankruptcy court includes filings from Pima, Pinal, Santa Cruz, Cochise, Graham and Greenlee counties. Nearly 90 percent of all Arizona filings are in Pima and Pinal counties.

By The Arizona Republic, Tucson Citizen