Female Nascar engineer makes science cool

NEW YORK (CNNMoney)

These drivers come from varied backgrounds and have different styles behind the wheel, but they have one thing in common: They all share the same lead engineer.

Alba Colon, the daughter of a doctor and a teacher, grew up in Puerto Rico dreaming of becoming an astronaut.

"I was always interested in space," she said. "My model was Sally Ride. So I wanted to be like her. I used to have a poster of her in my room."

She pursued her dream and gained a degree in mechanical engineering, but somewhere along that path she hit what she calls a "happy detour." During college she became active in the Society of Automotive Engineers and realized that she enjoyed something else as much as she loved space.

"I started to fall in love with vehicles and with the racing side," she said.

Related: Preparing low-income youth for tech jobs

In 1994, she became a data acquisitions engineer for General Motors (GM). In the twenty years since, she's worked her way up the ranks within GM's NASCAR program. She is now the lead engineer for Chevy Racing -- one of the sport's most successful teams.

As lead engineer for the NASCAR Sprint Cup Series for Team Chevrolet, Colon manages the technical resources GM provides all of its NASCAR Sprint Cup Race Teams. Colon and her team are constantly striving to innovate and improve things like the design bodies, engine parts and software to give them an edge on the track. She also serves as the main liaison between the teams and NASCAR.

And it's fair to state the obvious -- she's a double minority -- a Hispanic woman in a world traditionally full of white men. But take a walk through the garages with her and it's clear that she's not only earned their respect and her place but she is truly beloved.

Colon is now a champion several times over but, more importantly, she is a leader, which she knows comes with responsibility. She uses the platform to share her story in hopes of inspiring others. Colon speaks often at universities, Hispanic initiative events at GM, diversity programs hosted by NASCAR and, less formally, at elementary schools. It's here she hopes she can do the most good by reaching children young.

"Many of these students, the examples they have at home is parents that didn't finish school," she said. "So I want to show them hey, I am a Hispanic kid and I worked hard to get where I am. You can be like me. You don't have to stop when you finish high school. You can keep going."

Related: 6 things you need to know about STEM

Colon also hopes to show these kids the value of hard work. It's a value she feels is all but lost on today's youth.

"This is the generation of 'I want everything now,'" she said. "And I will try to say so they understand that you have to work for what you want. You cannot go and get everything immediately. Hard work and study got me to have a fun job today."

She understands that there's a stigma that comes with careers under the STEM umbrella—science, technology, engineering and math. And ridding society of the stigma requires an early start too.

"When you are studying a lot and you're good in math and science, what do they call you? They call you a nerd right? So we as a society have to change that—hey, it's cool to be a nerd."

Colon hopes that by bringing students into her world, race cars can help make science cool. And she already sees the landscape starting to change.

Related: How immigrant entrepreneurs are making it

"When I started, there were not too many engineers," she said. "[Now] every team has engineers. Not one, many. Some of the crew chiefs are engineers, and we even have a driver that's an engineer."

The driver she's referring to is the highly decorated Ryan Newman who also holds an engineering degree from Purdue University. Newman has even joined Colon to help spread the message that jobs in scientific fields can be far cooler than the boring reputation they often get.

"My engineering degree has helped me," Newman said. "I know it's important for all of our teams to have that background of physics and understanding of the race car."

Colon's efforts to show children that the path of success is through dedication, hard work and education is a message she hopes their parents are listening to as well.

"I talk not only to the kids but to the parents because you know one thing that was key for me was to have my two parents to support me. All the time."

She credits her father specifically for her love of math and science.

"I remember spending a lot of time with my father studying," she said. "He said that math is beautiful. ... I am still trying to figure out the beauty of math completely, but with the numbers and science -- that's where everything gets started."

First Published: October 6, 2014: 9:53 AM ET

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Waldorf Astoria sold to Chinese company for $1.95 billion

The Waldorf Astoria has been a symbol of luxury for decades.

NEW YORK (CNNMoney)

Conrad N. Hilton acquired the iconic luxury hotel 65 years ago and on Monday Hilton Worldwide (HLT) announced its sale to Anbang Insurance Group. Hilton will continue to operate the Waldorf for the next 100 years under a "strategic partnership" with the Beijing-based company.

The Waldorf Astoria will undergo a "major renovation" to restore the hotel to its "historic grandeur," according to a joint statement from Hilton and Anbang.

Related: Five-star stays in...hospital suites

The Waldorf Astoria is the flagship of Hilton's 27 luxury hotels around the world.

It first opened in 1893 on the site of millionaire William Waldorf Astor's Fifth Avenue mansion. Waldorf's cousin and fellow millionaire John Jacob Astor IV reconstructed the hotel a few years later at a nearby location. The hotel fell into disrepair during prohibition and was torn down in 1929, making way for another landmark: the Empire State Building.

The Waldorf is a cultural icon and has hosted foreign heads of state for years. It was featured in a 1945 film staring Ginger Rogers called "Week-end at the Waldorf."

Legend has it that the Waldorf salad was invented by the maître d'hôtel of the Waldorf Astoria in 1896.

The hotel is home to restaurants where New York's elite dine such as Peacock Alley, Bull and Bear Prime Steakhouse and Oscar's.

Related: How to be a super rich family's concierge

The Waldorf Astoria has been at its current location on Park Avenue since 1931. While Conrad Hilton purchased the management rights to the hotel in 1949, Hilton Worldwide did not become the owner until 1972.

Hilton plans to open nine more swanky hotels globally in locations that range from Bali and Bangkok to Beverly Hills. The company said it will use the proceeds from the Waldorf sale to fund future purchases.

First Published: October 6, 2014: 10:40 AM ET

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Now at Wal-Mart: Health insurance advice for customers

NEW YORK (CNNMoney)

The firm, DirectHealth.com, will have agents in 2,700 Walmart stores to help answer customers' questions about plans and enroll them either online or by phone.

"For years, our customers have told us that there is too much complexity when it comes to understanding their health insurance options," said Labeed Diab, president of Wal-Mart's (WMT) health & wellness unit.

The company said research from the Kaiser Family Foundation shows 60% of people have difficulty understanding their health insurance options and nearly 40% believe they picked the wrong plan after enrollment.

Related: Health care costs hit Wal-Mart profits

DirectHealth will help customers who are age 65 and older weigh 1,700 Medicare supplement plans from 12 leading carriers. Open enrollment for those plans runs from Oct. 15 through Dec. 7.

Those under age 65 will have access to thousands of health exchange plans from more than 300 companies. The open enrollment period for those customers takes place from Nov. 15 to Feb. 15.

First Published: October 6, 2014: 7:59 AM ET

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Why I quit Wall Street to open a restaurant

Former hedge fund trader Jon Schiff, left, with his cousin and chef, Gabe Lava.

NEW YORK (CNNMoney)

The 34 year-old quit his high pressure finance job on a Monday. By Wednesday, he was living on an organic farm in rural Illinois, baling hay and tilling the fields.

"I'm a city kid who sat behind a desk. There are no callouses on my hands. I was biting my lip because it hurt so bad," said Schiff. "But it's amazing to feel what a hard day's work is like."

The experience inspired the idea for Real Good Juice Company, the cold pressed juice restaurant that he opened up in Chicago this summer.

"I didn't love what I was doing," said the former hedge fund derivatives trader. "It was an opportunity to work and create something around active healthy living."

Related: Kale and chia seed juice boosts Jamba

Schiff is part of a crop of young Wall Street-types giving up the prestige and hefty paycheck of the investment world for a life in the notoriously hard-to-survive food business.

CNNMoney caught up with a few of these "finance-to-food" entrepreneurs to find out why and how they're doing it.

Colleagues reactions: When Jeremie Banet left his job as a portfolio manager at bond fund Pimco in May with plans to open up a food truck, the reception from colleagues was mixed.

"The people that knew me very well were not totally surprised....they know I'm trying to maximize my happiness rather than my income," said Banet, who is awaiting the final permits to operate a truck, called Monsieur Madame, with his wife and chef Nissa. "People that were money-centric didn't understand it."

Monsieur Madame will feature baseline French cuisine with influences from Eastern Europe and North Africa, an homage to Banet's Ashkenazi Jewish heritage and the Algerian roots of his wife's family.

The pair, who are from France but met in the United States while working at the bank BNP Paribas hope to be up and running in Southern California in early 2015.

Jeremie and Nissa Banet with their children.

Learning curve: Even for savvy investors, managing a restaurant is a whole different ball game. Luke Holden opened up Luke's Lobster in late 2009 in a 300 square foot location in New York's hip East Village neighborhood while he was still working as a junior investment banker.

The concept was simple: to serve high quality fresh lobster rolls at affordable prices.

The Maine native knew a lot about lobster from his father, who had worked in the business as a fisherman, dealer, and processor, but he had zero restaurant experience. "We were learning from the ground up," he said.

He's found considerable success, and is about to open his 14th location. The similarities between the food industry and investment banking are actually aplenty, according to Holden.

Related: Want a job on Wall Street? Go to UPenn or Georgetown

In banking as in hospitality, "you take a big project, divvy up the responsibilities, figure out the best members of the team to do the job," he said. "It also takes a lot of creativity to solve problems, not a lot of deals are routinely solved with the same answer."

Risky business: Of course, the restaurant business is no piece of cake. A bad review from a foodie blogger or unhappy customer can break you. But as one-time market gurus accustomed to dealing with risk on a daily basis, all the restauranteurs seemed to be well aware of the gamble involved.

Related: Bay Area restaurant: "Hate us on Yelp"

"This is a learning experience. We're doing something new, we're doing something that's fun and exciting," said Nissa. "We think it's okay if we fail. We're going to learn a lot, and we're going to have a good time."

Her husband added that the couple "saved during the good years" and lived a "reasonably frugal" lifestyle by Wall Street standards, so they're in comfortable shape financially, regardless of how things turn out with their new venture.

No going back: None of the former investment pros regretted making the switch and can't imagine going back to their previous lives.

"A lot of traders come into the restaurant, and it's nice chatting with them about markets, but next to the friends I made across the Street, there's not much that I miss," asserted Schiff, using the industry shorthand for Wall Street. "I still can't believe it's my job to go to the farmer's market. I'm still taken aback that I can call this work."

As the most seasoned of the group, Holden contended that like in any career, networking is key in the restaurant business. He even suggests finding a mentor.

"I've certainly found the hospitality industry to be extremely welcoming. It gets a bad rep for being closed door and being extremely competitive," he said. "Network, pay it forward. That strategy has created a lot of friends and great business contacts that we've certainly benefited from."

First Published: October 6, 2014: 7:09 AM ET

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AIG trial puts Geithner, Bernanke and Paulson on hot seat

Timothy Geithner, Hank Paulson and Ben Bernake will testify in a lawsuit charging that the $182 billion bailout that saved AIG was unfair to its shareholders.

NEW YORK (CNNMoney)

But former CEO Hank Greenberg has a different beef. He argues that the terms of the bailout that kept AIG from going under were too harsh.

Greenberg sued the federal government in 2011, challenging the terms of AIG's rescue. The case has finally gone to trial, and his lawyers are preparing to grill a list of star witnesses about their efforts to save the company amid the financial crisis.

Former Treasury Secretaries Hank Paulson and Tim Geithner, as well as former Federal Reserve Chairman Ben Bernanke, will take the stand this week in Washington's U.S. Court of Federal Claims to defend their actions.

When the government bailed out the insurance giant it took an 80% stake in the company, significantly diluting the stakes of existing shareholders. Greenberg, who is one of AIG (AIG)'s largest shareholders, has long complained that this shortchanged stockholders.

Related: Taxpayers made $52 billion profit on Geithner's bailouts

The government did ultimately make a $22.7 billion profit on the AIG bailout. But if the company had gone bankrupt, shareholders would have been wiped out altogether.

Greenberg's lawyers, led by superstar attorney David Boies, said in opening arguments last week that while the too big to fail banks like Citigroup (C) and Morgan Stanley (MS) got billions at virtually no cost, AIG was charged "an extortionist's interest rate" of 14% for political reasons.

"What they have tried to do....is to demonize AIG, to suggest that somehow AIG was the poster child for the problems during the financial crisis," Boies said.

Treasury has sought to have the case dismissed repeatedly since it was filed, but lost.

An attorney for the U.S. government argued that federal officials had to bail out AIG, because allowing it to fail would have threatened the world's economy. But, he added, that doesn't mean that AIG was entitled to get a bailout on its own terms.

"We call this a rescue loan, but the goal was not to save AIG. The goal was to save the world from AIG," said U.S. attorney Kenneth Dintzer. He added that Greenberg and other plaintiffs accepted the terms of the bailout, but now that AIG has recovered, they're seeking a "$40 billion windfall."

First Published: October 6, 2014: 9:29 AM ET

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HP to split into two companies

NEW YORK (CNNMoney)

HP (HPQ, Tech30) announced Monday that it plans to put its PC and printer operations under one roof under the name HP Inc., and its business that provides software and services to corporate customers under another under the name HP Enterprise.

The company said the split will give both companies the focus, financial resources and flexibility to adapt more quickly to the market, while also raising the stock value for shareholders.

"Being nimble is the only path to winning," CEO Meg Whitman said on a conference call with investors Monday.

Shares of HP jumped more than 4% in early trading following the announcement.

The split is expected to be completed by the end of 2015. News of the split was first reported Sunday by The Wall Street Journal.

The split follows a number of spinoffs and breakups this year. Most recently, eBay (EBAY, Tech30) announced last week it would spin off the online payment platform PayPal, which it bought in 2002.

Whitman took the helm in 2011 and unveiled a five-year restructuring plan. That included a major overhaul of the printer and PC business in 2012. Layoffs have totaled at least 45,000, and the company's projected savings have reached $4.5 billion per year.

Whitman said that the financial success of recent years is what makes a split into two companies possible.

"Three years ago this company was in a difficult situation and we needed to rebuild and do so as one HP," she said. "Today was made possible by our turnaround."

Related: Big companies that are making big job cuts

Whitman's predecessor, Leo Apotheker, considered a corporate split similar to the one announced Monday, but he left the company after only 11 months.

Whitman will have leadership roles at both companies, serving as CEO of HP enterprise business and chairman of HP Inc.. Dion Weisler, the current executive vice president of HP's printing and personal systems business, will become CEO of HP Inc.

The two companies will be roughly equal in size. Each will have revenue of just over $57 billion and profits of more than $5 billion. But the split might not be the only move the company makes in the next 12 months. Chief Financial Officer Cathie Lesjak told investors Monday "We will be actively looking at [mergers and acquisitions] throughout the year."

Some investors applauded the potential move.

The split would allow HP to be more "nimble" and let it "reshape" its business, said Brendan Connaughton, chief investment officer at ClearPath Capital Partners.

In particular, Connaughton said, the move would put renewed focus on enterprise services, "where they have incredible margins," sometimes upward of 20%.

HP shares struggled for several years amid turmoil at the top of the company. Whitman, the former boss at eBay, was named CEO in 2011, making her the fourth leader in just seven years.

But she has helped to turn around its fortunes, as shares have tripled in value since hitting a low point in late 2012.

HP is among the top five performers in CNNMoney's Tech 30 index, which tracks significant tech companies. Its stock has climbed nearly 26% this year alone, bolstered by earnings that have climbed even as sales slumped.

--CNN's Paul LaMonica and Dave Goldman contributed to this report

Related: Whitman among CEOs who take $1 salary

First Published: October 6, 2014: 7:04 AM ET

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Disney bails out its European theme park

LONDON (CNNMoney)

For the second time in three years, Walt Disney (DIS) has been forced to ride to the rescue of Disneyland Paris -- this time by leading a billion euro ($1.25 billion) refinancing of park operator Euro Disney.

Since opening in 1992, the theme park east of Paris has become Europe's top tourist attraction by visitor numbers.

But the dream has turned into a nightmare for Disney and other investors.

Attendance has been hit by Europe's economic crisis, leaving the company struggling to invest in new attractions while servicing its massive debts.

Related: The 'Disney economy' is back

Visitor numbers are expected to fall to around 14.1 million this year, 800,000 fewer than in 2013.

Hotel occupancy rates are also slumping -- down to 75% from nearly 80% last year. Euro Disney expects to lose between 110 million and 120 million euros this year.

Walt Disney owns about 40% of its European subsidiary. By guaranteeing a capital increase and converting existing debt into equity, it could end up owning the entire company, depending on whether or not other investors choose to take part in the bailout.

Saudi Prince Alwaleed Bin Talal is the second largest shareholder, with a stake of 10%, according to FactSet.

Euro Disney has a market value of about 124 million euros, and owes Disney 1.75 billion euros.

First Published: October 6, 2014: 9:21 AM ET

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NBA renews television deals with ESPN, TNT

Thanks to the new TV deal, players like LeBron James may be making more money.

NEW YORK (CNNMoney)

On Monday, the league renewed its partnerships with the Disney-owned ESPN and the Time Warner-owned TNT networks well into the next decade, once again demonstrating the ballooning value of live sports to television broadcasters.

The new deals, first reported by the Wall Street Journal on Sunday night, are said to be worth nearly three times as much as the existing deals between the league and the networks. (The NBA's last negotiation with ESPN and TNT, back in 2007, resulted in an eight-year, $7.44 billion deal.)

The new deals are for nine years; they will take effect in 2016 and extend through 2025. They include new ways for ESPN and TNT to extend the NBA rights on the Internet.

"This is a significant deal for our company and we are pleased to continue our long-standing partnership with the NBA, its fans, owners and players," said David Levy, the president of Turner Broadcasting, which includes TNT and CNN.

"By acquiring significantly more NBA content for both existing and yet-to-be created platforms, we will establish a vibrant, year-round NBA presence for fans," ESPN president John Skipper said in a statement.

Disney's ABC broadcast network will keep exclusive rights to the NBA finals; ESPN and ABC will together televise 100 games each regular season, up from 90 in the existing agreement.

The most intriguing part of the ESPN pact is the future launch of an Internet video service for the NBA. No details were provided on Monday, but it might resemble what the NBA already sells on the Internet: packages of out-of-market basketball games.

Other deal sweeteners, according to ESPN, include "increased team appearances" and wider rights to replay footage from games.

As for Turner, TNT will televise 64 games a year, up from 52 in the existing agreement. This includes Opening Night and the NBA All-Star game.

Turner will continue to manage the NBA's digital assets, including the NBA TV channel and NBA.com. The company said the new deal gives it the "opportunity to develop and distribute new NBA content and programming for Bleacher Report," a sports web site that Turner acquired in 2012.

Monday's announcement had been awaited for months, as the NBA rights amounted to the last major sports TV deal coming due before 2020.

The renewals are the first major deals for new NBA commissioner Adam Silver, who took over the league from David Stern earlier this year.

And the deals have implications for teams and players via its effect on the BRI (Basketball Related Income) and the NBA's salary cap, two systems set up to control how much teams are allowed to spend on players.

For example, 2013 NBA MVP LeBron James only signed a two-year contract upon returning to the Cavaliers this past summer. James can potentially make significantly more money once the new contracts with ESPN and TNT take effect.

First Published: October 6, 2014: 10:07 AM ET

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The Donald wins. Trump name coming off casino

In Atlantic City, Trump Plaza Casino's facade - or what remains of it - is coming down.

NEW YORK (CNNMoney)

"We have a very high standard and they didn't meet it," Donald Trump said, in an interview to CNNMoney. "We essentially won the suit."

It's a success for Trump (the man, not the casino) who sued Trump Entertainment Resorts, the company that runs Trump Plaza Casino. The real estate mogul wanted his name removed from two of the Atlantic City casinos: Trump Plaza and the Trump Taj Mahal.

"The process of removing the letters from the building is beginning today and the project should take a few weeks," said Brian Cahill, spokesman for Trump Entertainment Resorts.

Related: Trump Plaza files for bankruptcy

The Taj Mahal is expected to close down on Nov. 13, or shortly thereafter.

Trump originally built and owned both the casinos, before selling them seven years ago. He has since been licensing his name and image to the company that bought the casinos.

Trump's lawsuit, filed in August, accused the company of neglecting the casinos and allowing them "to fall into an utter state of disrepair." The neglect violated the license agreement, under which the brand's "superior reputation" must be used in a "dignified manner" consistent with the "highest quality."

Related: Revel sold at bankruptcy auction

Trump Plaza went out of business in September, becoming the fourth casino in Atlantic City to shut down this year, putting 8,000 people out of work.

One of the shut-down casinos - Revel - was sold at bankruptcy auction for $110 million on Oct. 1 to Brookfield Asset Management.

"Atlantic City needs a total remake," said Trump.

First Published: October 6, 2014: 11:23 AM ET

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Breaking up is the latest Wall Street craze

NEW YORK (CNNMoney)

Hewlett-Packard's decision to split into two companies is just the latest in a series of corporate breakups.

Ironically enough, the last company that HP (HPQ, Tech30) CEO Meg Whitman led, eBay (EBAY, Tech30), disclosed plans last week to spin off PayPal -- which was bought under Whitman's watch in 2002.

Considering that HP's stock was up more than 4% Monday on the news and eBay surged 7.5% the day it announced its split, expect more spinoffs. Big companies live and die by the "me too" copycat strategy.

If the stock market were a washing machine, we're definitely in the middle of a "spin cycle" right now.

Joe Cornell, publisher of Spin-Off Research, a firm that tracks corporate splits, said that this is shaping up to be the biggest year for spin-offs since 2000. And it's not just technology companies that are selling off pieces of themselves either.

The biggest spin-off this year was GE's (GE) initial public offering for its credit card unit Synchrony Financial (SYF).

Related: Baby GEs? General Electric may need a breakup

CNNMoney owner Time Warner (TWX) spun off its publishing unit Time Inc. (TIME) a few months ago. And another media company, USA Today publisher Gannett (GCI), plans to separate its newspapers from its TV station business.

Several well-known consumer companies have announced breakups or are in the process of doing so. Struggling retailers Sears (SHLD) spun off Lands' End (LE) -- and Lands' End has thrived since being set free from Sears.

Kleenex maker Kimberly-Clark (KMB), Hertz (HTZ), Barnes & Noble (BKS) and Energizer (ENR) are also planning to spin off units.

So who could be next to split? Cornell thinks energy companies Apache (APA) and Babcock & Wilcox (BWC) could be candidates for a breakup. Babcock & Wilcox has already said it is considering a split and both it and Apache are facing pressure from activist hedge funds to boost returns.

Cornell added that more telecoms could follow the lead of Windstream (WIN) and spin off landline units into real estate investment trusts to take advantage of favorable tax treatments for REITs. He suggested that smaller regional telecoms CenturyLink (CTL) and Frontier (FTR) could do a REIT conversion and that even Verizon (VZ, Tech30) might want to consider it.

Whether or not breakups work for any of these individual companies remains to be seen. But it does appear that the companies that are spun off are good bets.

The Guggenheim Spin-off ETF (CSD), which tracks an index of spin-offs, has outperformed the S&P 500 since it began trading in 2006.

Two of the top holdings in the fund are Zoetis (ZTS), the veterinary medicine unit that used to be owned by drug giant Pfizer (PFE), and soy milk producer WhiteWave (WWAV), a spin-off of Dean Foods (DF).

"Investors prefer more focused, nimble companies," Cornell said.

First Published: October 6, 2014: 11:42 AM ET

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