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Postal marketer leaves

Published on .

The U.S. Postal Service's senior VP-marketing, Loren E. Smith, is leaving under fire. The newsletter Business Mailer Review reported allegations that he overspent the agency's $140 million advertising budget by $80 million. Mr. Smith, who has been an advocate of using advertising to increase Postal Service revenues, could not be reached on Monday.

The Postal Service named Allen Kane, formerly VP-operations support, as Mr. Smith's replacement. While Postmaster General-CEO Marvin Runyon praised Mr. Smith, press reports said the agency's board of governors had demanded his ouster because of the overruns.

Under Mr. Smith, the Postal Service split its account and increased advertising and marketing, but also took some controversial steps including sponsoring the political conventions.

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