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Business Reckons With a Historic Court Moment

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Business Reckons With a Historic Court Moment

Immediately, senators will start hearings on the historic nomination of the federal appellate choose Ketanji Brown Jackson to the Supreme Court docket. She is the primary Black lady nominated to serve on the courtroom and the one candidate ever to have served as a public defender. Right here’s what her nomination would possibly imply for enterprise.

Decide Jackson has a various résumé. She dealt with civil and prison instances, served on the federal sentencing fee, labored in personal regulation companies, clerked for Stephen Breyer (the justice she’d be changing), attended Harvard and briefly reported for Time journal. She is dealing with pushback from some Republicans who say she was overly lenient in some instances, and even those that reward her credentials, just like the minority chief Mitch McConnell of Kentucky, gained’t decide to voting for her.

A number one enterprise group is cautious. The U.S. Chamber of Commerce endorsed the three most up-to-date Supreme Court docket nominees appointed by President Donald Trump. The commerce group, which historically leans conservative, has lately promoted bipartisanship, endorsing some Democratic candidates for workplace. It hasn’t but expressed a place about Decide Jackson’s nomination. In an e-mail to DealBook, a Chamber spokeswoman stated: “It’s clear that Decide Jackson is an completed lawyer and a revered jurist. We look ahead to studying extra about how she would method serving on our nation’s highest courtroom.” The U.S. Hispanic Chamber of Commerce and U.S. Black Chambers have endorsed her nomination.

“Variety is a key pillar of America’s financial vitality,” stated LeRoy Cavazos-Reyna of the Hispanic chamber. For minority-owned companies, it’s “crucial” that the nation’s variety is mirrored on the excessive courtroom, as a result of it makes selections “that straight correlate with the monetary stability of our residents, which interprets into our collective American shopping for energy.”

This nomination is a mannequin for enterprise leaders, stated Ruchika Tulshyan, the writer of a brand new e book on variety within the office, “Inclusion on Goal.” As a candidate, President Biden promised to make a historic nomination, so the follow-through exhibits “a degree of intentionality” that Tulshyan stated is important to selling equality within the justice system and workplaces extra typically.

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Decide Jackson by the numbers:

  • She has been confirmed by the Senate thrice, together with for her present position on the U.S. Court docket of Appeals for the D.C. Circuit, by a vote of 53-44 final June.

  • She has presided over 12 trials that made it to verdict, half civil and half prison proceedings.

  • She’s written greater than 560 opinions. The latest denied Uber’s movement to dismiss in a case alleging discrimination towards wheelchair customers. She rejected arguments that Uber can’t be held accountable for discrimination as a result of it solely serves as a “conduit” between passengers and drivers.

A industrial airliner crashes in southern China with 132 individuals on board. The Boeing 737 operated by China Japanese Airways went down within the Guangxi area. The crash might be the worst in China for the reason that Nineties, and raised investor considerations concerning the impact on Boeing, whose shares fell in premarket buying and selling.

Hong Kong eases journey restrictions that anxious large enterprise. Native authorities stated they might quickly raise a flight ban from 9 international locations, together with the U.S., for Hong Kong residents and shorten their quarantine interval to seven days. The announcement got here after many companies sought to maneuver staff out of the territory over the journey curbs.

Saudi Aramco reviews blockbuster earnings. The Saudi-controlled oil large stated earnings greater than doubled, to $110 billion, because it benefited from the leap in crude costs. That can assist Riyadh in its aim of investing overseas and diversifying the dominion’s financial system.

Elon Musk’s ties to China reportedly fear Washington. U.S. lawmakers are involved about Beijing gaining access to categorized data at SpaceX, together with via international suppliers to the area exploration firm and thru hyperlinks between SpaceX and Tesla, The Wall Road Journal reviews.

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Laptop chip makers face a dire element crunch, a key provider warns. The chief of ASML, which makes tools to supply superior semiconductors, predicted that there could be supply-chain shortages for the following two years.

The Worldwide Vitality Company lately predicted that Russian oil exports would drop by 3 million barrels a day, or roughly a 3rd of its whole output, as quickly as subsequent month. Some are skeptical that the dropoff can be that large, however market watchers are monitoring the consequences of sanctions, embargoes and disruptions to grease provides after Russia invaded Ukraine, a key determinant of the place oil costs are headed.

It’s laborious to know if Russian oil gross sales have slid for the reason that begin of the conflict. The oil market is opaque and Russian oil gross sales, specifically, are typically performed in over-the-counter transactions. Most oil is offered 30 days earlier than loading, so it could be some time earlier than Russian oil deliveries replicate gross sales for the reason that invasion. “In the event you cease shopping for crude that was going to be loaded mid-March, the impression of that doesn’t begin getting actually felt till April 1,” Andy Lipow, an oil trade marketing consultant based mostly in Houston, informed DealBook.

That’s led to a hunt for clues in obscure vitality trade knowledge. Matt Smith, an oil analyst with the analytics agency Kpler, has been watching particular person ships. Final week, he seen a tanker carrying Canadian oil that left from a U.S. Gulf port headed for Eire, a mix he hadn’t seen earlier than. Smith says the bizarre route might counsel that Europe is beginning to diversify its provides. “There are a couple of tentative indicators that flows from elsewhere are selecting up,” Smith informed DealBook.

A key refinery suggests Russian gross sales are underneath strain. Most Russian oil is shipped overseas as crude and refined elsewhere. However Russia has some refineries specializing in processing foreign-bound oil. Lipow says the one to observe is Tuapse, the one Russian refinery on the Black Sea. About 10 days in the past, Lipow stated, the refinery needed to sluggish operations as a result of it had an excessive amount of oil coming in and never sufficient going out.

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Others are skeptical that the movement of Russian oil will sluggish. Simon Johnson, an economist at M.I.T., stated he and his colleagues have been monitoring the sale of Russian oil for weeks, out of a want to do one thing to assist Ukraine and level out who’s funding the Russian conflict effort. Based mostly on their evaluation, it seems that Russian oil shipments are growing, particularly to India but in addition to Europe.

The newest within the Russia-Ukraine conflict:


— Kevin Roose, The Instances’ tech columnist, in “The Latecomer’s Information to Crypto,” a part of a package deal answering the commonest questions on cryptocurrency. There are additionally guides to web3, NFTs, DAOs and DeFi. (In the event you don’t know what these phrases imply, the hyperlinks are value a click on.)


Russian bonds: Buyers proceed to gauge the Russian authorities’s skill to repay international money owed, with a $66 million cost due right now on a dollar-denominated bond. Amid some doubts about its entry to funds, Russia repaid $117 million in coupons final week.

Local weather reporting: The S.E.C. meets right now to think about whether or not corporations must be required to report on their greenhouse fuel emissions — and targets to scale back their carbon footprints.

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Theranos trial: Opening statements for the trial of Ramesh Balwani, the previous president of Theranos and ex-boyfriend of Elizabeth Holmes, are anticipated to start on Tuesday. Balwani faces a number of fraud prices; prosecutors say he was a co-conspirator in defrauding buyers.

Financial updates: The Fed chair Jay Powell is scheduled to talk at occasions on Monday and Wednesday, whereas on Friday the College of Michigan will launch its last March studying of shopper sentiment, which has plunged as larger inflation has lowered spending energy and offered issues for policymakers like Powell on the Fed.


The Y Combinator-backed investing app Alinea is designed by Gen-Z buyers for, nicely, themselves. It was created to attenuate anxiousness and concentrate on social impression, say founders Eve Halimi and Anam Lakhani, who’re each of their mid-20s. “Proper now nobody else is particularly focusing on them,” Lakhani informed DealBook.

Alinea’s founders, who bonded in faculty, wished extra younger ladies to speculate. They raised greater than $2 million to tackle what they name the “old fashioned” on-line buying and selling large Robinhood (which launched in 2015). They criticized Robinhoods “triggering” brilliant colours and nudges to commerce; Alinea’s interface depends on pastels and “playlists” that bundle investments.

“Gen-Z already experiences unbelievable quantities of tension, Lakhani stated. “We wished to verify when individuals come on to the Alinea app they really feel calm as a result of there are such a lot of anxiety-inducing merchandise on the market.” And to deal with prospects’ ethical and moral considerations, the founders stated, the playlists embody investments round local weather impacts, Black empowerment, women-led corporations and extra.

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Crypto joins the combination right now, with 20 digital currencies launching in 49 states. Crypto was a part of the unique imaginative and prescient, however approvals proved tough, the founders found. They quickly hope to supply extra tokens and playlists for buyers who would possibly discover venturing into these notably risky markets anxious.

Offers

  • Warren Buffett’s Berkshire Hathaway will purchase the reinsurer Alleghany for $11.6 billion. (Bloomberg)

  • The TV-ratings firm Nielsen stated it had rejected a $9 billion takeover bid from an investor consortium as too low. (WSJ)

  • The enterprise software program firm Anaplan, underneath strain from activist buyers, agreed to promote itself to the personal fairness agency Thoma Bravo for $10.7 billion. (FT)

  • G.M. purchased out the SoftBank Imaginative and prescient Fund’s almost 20 % stake in Cruise, the carmaker’s autonomous-vehicle arm. (Reuters)

Coverage

  • A Texas lawmaker threatened to bar Citigroup from underwriting municipal bonds within the state except it stopped paying the journey prices for workers searching for abortions outdoors the state. (NYT)

  • “How Massive Tech misplaced the antitrust battle with Europe” (FT)

  • Personal pupil mortgage lenders are lobbying the Biden administration to restart federal pupil mortgage repayments, after a two-year pause. (Politico)

Better of the remaining

  • A former Google worker sued the tech large, claiming it systematically discriminated towards Black staff. (NYT)

  • “Toronto, the Quietly Booming Tech City” (NYT)

  • Contained in the testy relationship between Bob Iger and Bob Chapek, Disney’s ex- and present C.E.O.s. (CNBC)

  • “Afghanistan’s final finance minister, now a D.C. Uber driver, ponders what went improper” (WaPo)

We’d like your suggestions! Please e-mail ideas and strategies to dealbook@nytimes.com.

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Wildfires Will Deepen Housing Shortage in Los Angeles

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Wildfires Will Deepen Housing Shortage in Los Angeles

Each of the homes burned in the Los Angeles fires is its own individual calamity.

Collectively, the losses — whether in the hundreds or, as is far more likely, in the thousands — will weigh on the city’s already urgent housing shortage.

Fires are still raging, and with 180,000 people under evacuation orders as of Thursday morning, the degree of displacement in the city and its surrounding areas will take time to assess. For the time being, evacuees are holing up in public shelters in Los Angeles County, with friends or family members or in hotels.

But in the coming weeks and months, people whose homes are gone will have to find more stable accommodations while they rebuild. That will not be easy in a metro area that, as of 2022, already had a shortage of about 337,000 homes, according to data from Zillow. The number of homes on the market in Los Angeles was 26 percent below prepandemic norms as of December, according to Zillow.

“One of the biggest challenges ahead will be getting people who lost their homes into permanent, long-term housing,” Victor M. Gordo, the mayor of Pasadena, said on Wednesday. Pasadena, which is battling the Eaton fire, has already lost hundreds of homes.

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The area’s tight rental market is likely to become further strained as many of the thousands of displaced residents turn to rental units, while figuring out their next move. The median rent for a one-bedroom apartment in Los Angeles, as of Jan. 7, was more than $2,000, according to Zillow.

“You’re going to have a positive shock in demand, and a negative shock in supply, so this automatically means prices go up in the rental markets,” said Carles Vergara-Alert, a professor of finance at IESE Business School in Barcelona, who has studied the effects of wildfires on housing markets.

Any uptick in rental costs would affect tenants across the region, beyond those displaced by the fires, Dr. Vergara-Alert said.

Jonathan Zasloff, who lost his home in Pacific Palisades this week, teaches land use and urban policy at the University of California, Los Angeles law school, and is acutely aware of how his search for interim housing could affect the broader market.

Dr. Zasloff is staying with his brother for the time being, while a friend is putting up his wife and daughter. They evacuated their house, which they had lived in for almost 15 years, around noon on Tuesday, before the official evacuation order was issued for the area. That evening, Dr. Zasloff realized the severity of the crisis when he was watching television and saw a reporter standing on his fire-ravaged block.

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His insurance agent told him it could take two to three years to rebuild his house. His family might try to find a rental in West Los Angeles near UCLA in the meantime, he said.

There aren’t many rentals in that part of the city, Dr. Zasloff said, so students and other renters could be displaced as he, and people like him who lost their homes, move in.

“It’s very possible that this event is going to cause a big increase in homelessness, even though the people who got pushed out of their homes are people of means,” he said.

California has been in the grip of an affordable housing crisis for a decade. Both state and local lawmakers have passed a raft of new laws that aim to make housing cheaper and more plentiful by making it easier to build. In Los Angeles, for instance, Mayor Karen Bass signed an executive order that streamlines permitting for projects in which 100 percent of the units are affordable. In response to state housing reforms, there has been a boom of backyard homes — called accessory dwelling units, or A.D.U.s — that homeowners often rent out for extra income and that have added to the housing stock.

Still, both the city and state remain well behind their housing production goals, and affordability has only continued to erode. The number of apartment units approved by the city of Los Angeles, for example, dipped to a 10-year low in 2024, according to data from the Los Angeles Department of Building and Safety compiled by Crosstown LA, a news site. That downturn in building permitting has raised concern about roadblocks to new housing unit creation.

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“This is a place that had massive affordability challenges last week, and after this week it’s going to be that much more challenging,” said Dave Rand, a land-use lawyer at Rand Paster & Nelson in Los Angeles, who also serves on the board of directors of a statewide affordable housing organization.

After the fires are extinguished and the recovery begins, Mr. Rand said, there is hope that the common cause of rebuilding can be a catalyst for tackling affordability challenges by continuing to make it easier to build housing, particularly affordable rental housing, at a faster pace.

“This is such a devastating event that hopefully it rocks the system to the point where we can get real reform,” he said.

The Los Angeles City Council has aimed to build nearly half a million new units by 2029. But many people trying to rebuild all at once after the fires could lead to higher costs, and slow down the overall production of housing, said Jason Ward, a co-director of the center on housing and homelessness at the RAND Corporation.

A longstanding construction labor shortage in Los Angeles does not help. Andy Howard, a general contractor who has worked across the city for three decades, including in the areas affected by the fires, said many of the subcontractors he work with in the past have left California since the pandemic. And there are not enough young people entering the industry.

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The fires are “going to make it worse,” Mr. Howard said. “It’s going to drive the cost up, for sure.”

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For Hollywood workers, L.A. fires are the latest setback as productions halt

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For Hollywood workers, L.A. fires are the latest setback as productions halt

As the market for documentaries and other content slowed and work dried up in Hollywood, producer Kourtney Gleason was already worried about making the mortgage payments on the home she bought last year with her boyfriend.

Now, as raging fires have halted film and TV production in Southern California and many in the industry have lost homes, she’s terrified that the entertainment business will be set back yet again. Though she’s been in the industry for 12 years, Gleason is now reluctantly looking at restaurant jobs to get by.

“The industry in the town is so fragile that every little thing becomes a bigger bump in the road,” she said. “Another bump that will push things back from getting ramped up.”

The destruction of the fires only compounds the difficult lot for many of Hollywood’s workers. Still reeling from the pandemic, they faced financial hardship during the dual Hollywood labor strikes in 2023, then were hit with a sustained slowdown in film and TV production that has driven many to rethink their careers in the industry.

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“A lot of the below-the-line workers were already under an incredible amount of pressure,” said Kevin Klowden, executive director of the Milken finance institute. “For Hollywood workers, it becomes one more blow.”

The sheer scope of the region’s multiple fires means that nearly every echelon of Hollywood has been hard hit.

The Palisades fire, which has burned more than 17,200 acres and destroyed numerous homes, businesses and longtime landmarks in the Pacific Palisades area, is home to many Hollywood stars, studio executives and producers. Actors such as Billy Crystal and Cary Elwes lost homes in the blaze.

Across the region, the Eaton fire has now burned at least 10,600 acres in the Pasadena and Altadena areas and destroyed many structures. The San Gabriel Valley is home to many of the industry’s more modest or middle-class workers, who were already financially harmed by the production slowdown and relocation of shoots to other states or countries.

The fires could rank as one of the costliest natural disasters in U.S. history. A preliminary estimate calculated by AccuWeather, the weather forecasting service, put the damage and total economic loss at $52 billion to $57 billion, which could rise if the fires continue to spread. J.P. Morgan on Thursday raised its expectations of economic losses to close to $50 billion.

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Many affected homeowners reported the insurers had dropped their policies, as some of the biggest insurers have stopped writing or renewing policies in high-risk coastal and wildfire areas. The complications with fire insurance, combined with the region’s problems with housing affordability and supply, will only be exacerbated by these fires, Klowden said, leading some to reconsider whether they can stay in California.

“It adds up,” he said. “How many more people decide they can’t afford to stay?”

Hollywood workers had been holding onto hope that 2025 would be a better year for work, perhaps closer to the levels they saw before the pandemic.

But with yet another disaster, “it feels like it’s just another weight that’s been placed,” said Jacques Gravett, a film editor who has primarily worked in television on such shows as “Power Book IV: Force” on Starz and “13 Reasons Why” on Netflix.

Gravett was out of work for 13 months between the pandemic and the strikes, and said he’s concerned about how already struggling workers will be able to absorb the financial blow from the fires.

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“At least when you’re working and something happens, you have resources to get you by, and a lot of people don’t have the resources now,” said Gravett, who is co-chair of the Motion Picture Editors Guild’s African-American steering committee. “Now we’re faced with another tragedy for those who’ve been displaced. What do you do?”

The effect of the fires on industry workers could give lawmakers a push to approve Gov. Gavin Newsom’s proposed increase to the state’s film and TV tax credit program, which aims to lure production back to California and increase jobs in the Golden State, Klowden said.

“Right now, the industry desperately is waiting on the incentives to be expanded,” he said.

In the near term, discussions about new projects are already hitting a wall. Gary Lennon, showrunner of various “Power” spinoffs, including “Force,” said an agent told him there will likely be a temporary pause before anyone wants to talk about new ideas.

“Buyers and meetings for pitches being sold will take a hit for a moment,” Lennon said. “People are focused on what is immediately happening in front of them.”

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Even before the fires, he said he was already getting two to three calls a week from production designers, editors, costume designers and others looking for work.

But once the industry is ready to ramp back, he said he thinks it will move quickly.

“So much has happened recently, I think production will start right away again because people do need to work,” Lennon said. “And that’s a good thing.”

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Paul Oreffice, a Combative Chief of Dow Chemical, Dies at 97

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Paul Oreffice, a Combative Chief of Dow Chemical, Dies at 97

Paul F. Oreffice, who as the pugnacious head of Dow Chemical grew and diversified the company at the same time that he rebuffed Vietnam veterans over Agent Orange, argued that the chemical dioxin was harmless and oversaw the manufacturing of silicone breast implants that were known to leak, died on Dec. 26 at his home in Paradise Valley, Ariz. He was 97.

His family confirmed his death.

Mr. Oreffice (pronounced like orifice) spoke in staccato, fast-paced sentences, and they were often deployed in pushing back against environmentalists, politicians and journalists during an era, the 1970s and ’80s, when the environmental movement was gaining force by focusing on toxic chemicals in the air and water.

Under his 17-year leadership, which included the titles of president, chief executive and chairman, Mr. Oreffice weathered intense controversies.

His public relations instinct was for confrontation, not conciliation. He had an intense dislike for what he perceived as government meddling in business, which he traced to his having grown up in Italy under Mussolini. “I’ve seen what overgoverning can do,” he told The New York Times in 1987. “I was born under a Fascist dictatorship, and my father was jailed by it.”

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Mr. Oreffice took the reins of the Dow USA division in 1975, when its public image was tainted from campus protests of the 1960s that had vilified the company as a maker of the incendiary agent napalm, which was widely used in Vietnam.

When Dow pulled out of apartheid South Africa in 1987 under pressure from shareholders, Mr. Oreffice said: “I’m not proud of it. I think we should have stayed and fought.”

In 1977, when Jane Fonda lacerated Dow in a speech at Central Michigan University, not far from Dow headquarters, in Midland, Mich., Mr. Oreffice canceled the company’s donations to the school, writing its president that he could not support Ms. Fonda’s “venom against free enterprise.”

Instead, Mr. Oreffice financed the campaigns of anti-regulation politicians. And he sued the Environmental Protection Agency for surveilling Dow’s sprawling Midland plants from the air when the company refused an on-site inspection.

The case made its way to the United States Supreme Court, which in 1986 ruled against the company, at the time the No. 2 American chemical maker after DuPont. (The companies merged in 2017, then split into three companies.)

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In 1983, Rep. James H. Scheuer, Democrat of New York, disclosed that Dow had been allowed to edit an E.P.A. report on the leakage of dioxin, one of the most toxic substances ever manufactured, from the Midland plants into the Tittabawassee and Saginaw Rivers and Saginaw Bay.

E.P.A. regional officials told Congress that their superiors in the Reagan administration ordered the changes to comply with demands made by Dow. Mr. Oreffice, appearing on NBC’s “Today” show, offered a sweeping dismissal.

“There is absolutely no evidence of dioxin doing any damage to humans except for causing something called chloracne,” he said. “It’s a rash.”

His statement brushed aside evidence that dioxin was extremely hazardous to laboratory animals and had been shown in some research to be linked with a rare soft-tissue cancer in humans.

One former Dow president, Herbert Dow Doan, a grandson of the company founder, told a public relations publication, Provoke Media, in 1990 that Mr. Oreffice’s style was not one fine-tuned to mollify critics. “The reason is part ego, part pride,” he said. “Paul is inclined to push his line to the point where some people say he is arrogant.”

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There is no question that Mr. Oreffice’s strength of will also uplifted Dow’s businesses, which through the 1970s were overly dependent on basic chemicals like chlorine. When a glut of low-priced petrochemicals flooded the global market in the early 80s, he aggressively reshaped Dow by diversifying into consumer products, such as shampoos and the cleaning fluid Fantastik, and by moving into foreign markets. By 1987, Dow posted a record profit of $1.3 billion (about $3.5 billion in today’s currency).

At the same time, a class-action lawsuit on behalf of 20,000 Vietnam veterans and their families against Dow and other makers of Agent Orange was further tarnishing the company’s image. The suit, filed in 1979, charged that dioxin in Agent Orange led to cancer in combat veterans and genetic defects in their children.

Dow argued that it had made Agent Orange at the request of the government and was not responsible for how it was used. But in 1984, the company and other makers of Agent Orange, without admitting liability, settled the lawsuit for $180 million, with the proceeds going to veterans and their families.

In another controversy, Dow Corning, a joint venture between Dow Chemical and Corning Inc., released documents in February 1992 showing that it had known since 1971 that silicone gel could leak from breast implants it made.

Tens of thousands of women had sued the company, claiming their implants had given them breast cancer and autoimmune diseases. Dow Corning agreed to a $3.2 billion settlement after the company had been driven to file for bankruptcy protection.

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In 1999, an independent review by an arm of the National Academy of Sciences concluded that silicone implants do not cause major diseases.

Paul Fausto Orrefice was born Nov. 29, 1927, in Venice. His parents, Max and Elena (Friedenberg) Oreffice, moved the family to Ecuador in 1940 as Mussolini declared war on Britain and France. Paul came to the U.S. in 1945, entering Purdue University with fewer than 50 words of English at his command.

He graduated with a B.S. in chemical engineering in 1949, became a naturalized citizen, and after two years in the Army went to work for Dow in 1953.

“When I walked into Midland, Mich., this was ‘WASP’ country, and I was a ‘W’ but I wasn’t an ‘ASP,’” he told The Washington Post in 1986. “I spoke with an accent and combed my hair straight back, which just wasn’t done.”

Mr. Oreffice represented Dow in Switzerland, Italy, Brazil and Spain before being called back to the Midland headquarters in 1969 and appointed the company’s financial vice president. He became president of Dow Chemical U.S.A. in 1975 and was then promoted to president and chief executive of the parent Dow Chemical Company in 1978. In 1986, he added the title of chairman.

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To the astonishment of many observers, Dow poured millions of dollars in the mid-1980s into a public-relations campaign to improve its image, including a new slogan, “Dow let’s you do great things.”

Under company rules, when he reached age 60, Mr. Oreffice stepped down as president and chief executive in 1987. He retired as chairman in 1992.

He is survived by his wife of 29 years, Jo Ann Pepper Oreffice, his children Laura Jennison and Andy Oreffice, six grandchildren and one great-granddaughter.

In retirement, Mr. Oreffice pursued a passion for thoroughbred racehorses, investing in Kentucky Derby starters and spending summers at a home in Saratoga Springs, N.Y. He was a partner in a Preakness Stakes winner, Summer Squall, and a Belmont Stakes winner, Palace Malice.

In 2006, he published a memoir about rising from an immigrant with little English to a corporate titan, titling it “Only in America.”

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