Algerian Hostage Standoff Continues; U.S. Victim Identified


Anis Belghoul/Associated Press


An Algerian military truck on a road leading to a Saharan gas field where militants still held at least 10 foreign hostages on Friday.







BAMAKO, Mali — Islamic militants in Algeria continued to hold at least 10 and possibly dozens of foreign hostages Saturday as details started emerging about some of the people killed in the standoff.




The United States said for the first time that Americans were among the remaining captives and confirmed the first known death of an American hostage, Frederick Buttaccio, 58, of Katy, Tex. Linked In, the social networking site for professionals, lists a Frederick Buttaccio as a sales operations coordinator for BP, the British energy giant that helped run the complex, but a BP executive said it would not comment on any employee who may have been at the facility.


The French foreign minister, Laurent Fabius, identified a French citizen who was killed as Yann Desjeux, but he added that “the lives of three others of our compatriots who were on the site during the terrorist attack have been saved.” The country’s defense minister, Jean-Yves Le Drian, said Saturday that the government believed that no more French nationals were being held hostage.


As the hostage situation entered its fourth day, there were no signs of a resolution. A senior Algerian government official said no talks were planned with the militants.


“They are being told to surrender, that’s it,” the official said. “No negotiations. That is a doctrine with us.”


French television said that shooting had erupted again at the site early Saturday, but gave no details.


Two days after the Algerian army began an assault to try to free the hostages, all foreign governments and companies with citizens at risk were still scrambling for basic information about the missing as they ferried escaped hostages out of the country on military aircraft and urged Algeria to use restraint.


The Norwegian energy firm Statoil said that six workers for the company, all of them Norwegian, were unaccounted for.


“We can never lose hope,” Statoil’s chief executive, Helge Lund, told a news conference Saturday morning. “Bringing home our employees is our primary goal.”


Secretary of State Hillary Rodham Clinton told reporters in Washington on Friday that the situation in Algeria was “extremely difficult and dangerous.”


Describing a conversation she had earlier Friday with Algeria’s prime minister, Abdelmalek Sellal, Mrs. Clinton said she had emphasized to him that “the utmost care must be taken to preserve innocent life.”


Algeria’s state news agency, APS, said 12 Algerian and foreign workers had been killed since Algerian special forces began an assault against the kidnappers on Thursday. It was the highest civilian death toll Algerian officials that have provided in the aftermath of the assault, which freed captives and killed kidnappers. The incident was one of the worst mass abductions of foreign workers in years.


Previous unofficial estimates of the foreign casualties have ranged from 4 to 35. The American who died, Mr. Buttaccio, lived in a gated community in Katy, a suburb that is about 30 miles west of downtown Houston.The Algerian news agency also said that 18 militants had been killed and that the country’s special forces were dealing with remnants of a “terrorist group” that was still holding hostages in the refinery area of the gas field in remote eastern Algeria.


It also gave a new sense of how many people may have been at the facility when the militants seized it on Wednesday, asserting that nearly 650 had managed to leave the site since then, including 573 Algerians and nearly half of the 132 foreigners it said had been abducted. But that still left many people unaccounted for.


The senior Algerian official, who spoke on condition of anonymity, said he believed there were about 10 hostages under the control of possibly 13 to 15 militants, but he emphasized that “nothing is certain” about the numbers, which have varied wildly since the crisis began. He also said that there were other workers on the site “who are still in hiding” but that the Algerian military had secured the residential part of the gas-field complex.


“What remains are a few terrorists, holding a few hostages, who have taken refuge in the gas factory,” he said. “It’s a site that’s very tricky to handle.”


Adam Nossiter reported from Bamako, and Gerry Mullany from Hong Kong. Reporting was contributed by Elisabeth Bumiller, John F. Burns and Julia Werdigier from London; Alan Cowell, Steven Erlanger and Scott Sayare from Paris; Michael R. Gordon, Eric Schmitt and Thom Shanker from Washington; Martin Fackler and Hiroko Tabuchi from Tokyo; Clifford Krauss and Manny Fernandez from Houston, and Rick Gladstone from New York.



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Samsung updates Galaxy Note 10.1 and Galaxy Tab 2 to Jelly Bean






Owners of the Galaxy Note 10.1 and Galaxy Tab 2 will be happy to learn that Samsung (005930) has begun to update their tablets to Android 4.1 Jelly Bean. The company announced its plans earlier this week, revealing that the Note’s update includes “dramatic improvements to the multitasking and S Pen features,” while the Tab 2 will bring the company’s Premium Suite of features and productivity apps to the device. The addition of Jelly Bean will also give the tablets access to Google Now, Google’s (GOOG) personal assistant feature, and improved performance with Project Butter. The update is available now for Wi-Fi models of the Galaxy Note 10.1, Galaxy Tab 7 and Galaxy Tab 10.1.


[More from BGR: Nintendo’s Wii U problems turn into a crisis]






This article was originally published on BGR.com


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J.J. Abrams to produce Lance Armstrong biopic


LOS ANGELES (AP) — He's already gotten the Oprah treatment. Now Lance Armstrong is headed for the silver screen.


Paramount Pictures and J.J. Abrams' production company, Bad Robot, are planning a biopic about the disgraced cyclist, a studio spokeswoman said Friday.


They've secured the rights to New York Times reporter Juliet Macur's upcoming book "Cycle of Lies: The Fall of Lance Armstrong," due out in June. Macur covered the seven-time Tour de France winner for over a decade.


No director, writer, star or start date have been set.


Armstrong is in the midst of a two-part interview with Oprah Winfrey in which he admits to using performance-enhancing drugs to reach his historic victories, something he'd defiantly denied for years. The International Olympic Committee stripped him of his 2000 bronze medal this week.


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Business Briefing | Medicine: F.D.A. Clears Botox to Help Bladder Control



Botox, the wrinkle treatment made by Allergan, has been approved to treat adults with overactive bladders who cannot tolerate or were not helped by other drugs, the Food and Drug Administration said on Friday. Botox injected into the bladder muscle causes the bladder to relax, increasing its storage capacity. “Clinical studies have demonstrated Botox’s ability to significantly reduce the frequency of urinary incontinence,” Dr. Hylton V. Joffe, director of the F.D.A.’s reproductive and urologic products division, said in a statement. “Today’s approval provides an important additional treatment option for patients with overactive bladder, a condition that affects an estimated 33 million men and women in the United States.”


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Analysis: Amid Tears Lance Armstrong Leaves Unanswered Questions in Oprah Winfrey Interview





In an extensive interview with Oprah Winfrey that was shown over two nights, Lance Armstrong admitted publicly for the first time that he doped throughout his cycling career. He revealed that all seven of his Tour de France victories were fueled by doping, that he never felt bad about cheating, and that he had covered up a positive drug test at the 1999 Tour with a backdated doctor’s prescription for banned cortisone.




Armstrong, the once defiant cyclist, also became choked up when he discussed how he told his oldest child that the rumors about Armstrong’s doping were true.


Even with all that, the interview will most likely be remembered for what it was missing.


Armstrong had not subjected himself to questioning from anyone in the news media since United States antidoping officials laid out their case against him in October. He chose not to appeal their ruling, leaving him with a lifetime ban from Olympic sports.


He personally chose Winfrey for his big reveal, and it went predictably. Winfrey allowed him to share his thoughts and elicited emotions from him, but she consistently failed to ask critical follow-up questions that would have addressed the most vexing aspects of Armstrong’s deception.


She did not press him on who helped him dope or cover up his drug use for more than a decade. Nor did she ask him why he chose to take banned performance-enhancing substances even after cancer had threatened his life.


Winfrey also did not push him to answer whether he had admitted to doctors in an Indianapolis hospital in 1996 that he had used performance-enhancing drugs, a confession a former teammate and his wife claimed they overheard that day. To get to the bottom of his deceit, antidoping officials said, Armstrong has to be willing to provide more details.


“He spoke to a talk-show host,” David Howman, the director general of the World Anti-Doping Agency, said from Montreal on Friday. “I don’t think any of it amounted to assistance to the antidoping community, let alone substantial assistance. You bundle it all up and say, ‘So what?’


Jeffrey M. Tillotson, the lawyer for an insurance company that unsuccessfully withheld a $5 million bonus from Armstrong on the basis that he had cheated to win the Tour de France in 2004, said his client would make a decision over the weekend about whether to sue Armstrong. If it proceeds, the company, SCA Promotions, will seek $12 million, the total it paid Armstrong in bonuses and legal fees.


“It seemed to us that he was more sorry that he had been caught than for what he had done,” Tillotson said. “If he’s serious about rehabbing himself, he needs to start making amends to the people he bullied and vilified, and he needs to start paying money back.”


Armstrong, who said he once believed himself to be invincible, explained in the portion of the interview broadcast Friday night that he started to take steps toward redemption last month. Then, after dozens of questions had already been lobbed his way, he became emotional when he described how he told his 13-year-old son, Luke, that yes, his father had cheated by doping. That talk happened last month over the holidays, Armstrong said as he fought back tears.


“I said, listen, there’s been a lot of questions about your dad, my career, whether I doped or did not dope, and I’ve always denied, I’ve always been ruthless and defiant about that, which is probably why you trusted me, which makes it even sicker,” Armstrong said he told his son, the oldest of his five children. “I want you to know it’s true.”


At times, Winfrey’s interview seemed more like a therapy session than an inquisition, with Armstrong admitting that he was narcissistic and had been in therapy — and that he should be in therapy regularly because his life was so complicated.


In the end, the interview most likely accomplished what Armstrong had hoped: it was the vehicle through which he admitted to the public that he had cheated by doping, which he had lied about for more than a decade. But his answers were just the first step to clawing back his once stellar reputation.


On Friday, Armstrong appeared more contrite than he had during the part of the interview that was shown Thursday, yet he still insisted that he was clean when he made his comeback to cycling in 2009 after a brief retirement, an assertion the United States Anti-Doping Agency said was untrue. He also implied that his lifetime ban from all Olympic sports was unfair because some of his former teammates who testified about their doping and the doping on Armstrong’s teams received only six-month bans.


Richard Pound, the founding chairman of WADA and a member of the International Olympic Committee, said he was unmoved by Armstrong’s televised mea culpa.


“If what he’s looking for is some kind of reconstruction of his image, instead of providing entertainment with Oprah Winfrey, he’s got a long way to go,” Pound said Friday from his Montreal office.


Armstrong acknowledged to Winfrey during Friday’s broadcast that he has a long way to go before winning back the public’s trust. He said he understood why people recently turned on him because they felt angry and betrayed.


“I lied to you and I’m sorry,” he said before acknowledging that he might have lost many of his supporters for good. “I am committed to spending as long as I have to to make amends, knowing full well that I won’t get very many back.”


Armstrong also said that the scandal has cost him $75 million in lost sponsors, all of whom abandoned him last fall after Usada made public 1,000 pages of evidence that Armstrong had doped.


“In a way, I just assumed we would get to that point,” he said of his sponsors’ leaving. “The story was getting out of control.”


In closing her interview, Winfrey asked Armstrong a question that left him perplexed.


“Will you rise again?” she said.


Armstrong said: “I don’t know. I don’t know. I don’t know what’s out there.”


Then, as the interview drew to a close, Armstrong said: “The ultimate crime is the betrayal of these people that supported me and believed in me.”


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The Caucus: As Obama Begins Second Term, Majority Approve of His Performance

President Obama heads into his second term in office with an overall positive approval rating, but the public remains ambivalent about his handling of the economy.

Fifty-one percent of Americans approve of the way Mr. Obama is handling his job, according to a survey by The New York Times/CBS News, with 41 percent disapproving. Mr. Obama’s job approval rating is similar to George W. Bush‘s at the start of his second term, but much lower than the ratings of the previous two presidents who served eight years. (President Bill Clinton‘s approval rate was 60 percent in January 1997, and Ronald Reagan‘s was 62 percent in January 1985.) More than 8 in 10 Democrats approve of his job performance, 8 in 10 Republicans disapprove and independents are evenly divided.

The public has not changed its assessment of Mr. Obama’s handling of the economy since the last-minute negotiations with Congress to avert the automatic tax increases and spending cuts that were scheduled to take affect at the end of last year. Almost half, 46 percent, approve of the way the president has been dealing with the economy and 49 percent disapprove.

The public is also closely divided over how the president is dealing with taxes. In the wake of the recent fiscal deal that raised taxes on individuals with incomes over $400,000, 45 percent of those surveyed approve of Mr. Obama’s handling of taxes and 47 percent disapprove.

Last month, when negotiations to forestall the fiscal crisis were at a stalemate and taxes had not yet been raised on anyone, more than half — 52 percent — approved of how Mr. Obama was taking care of taxes.

Mr. Obama’s management of the overall federal budget deficit continues to be viewed negatively: 37 percent approve and 54 percent disapprove, including a quarter of Democrats.

Susan Fales, of Wilmington, N.C., strongly approves of Mr. Obama’s job performance. “A president doesn’t have unlimited power but he’s working on behalf of people like myself as best he can under the circumstances he is in,” Mrs. Fales, 49, an unemployed Democrat, said in a follow-up interview.

John Gorden, 58, is an independent who disapproves of how Mr. Obama is handling all aspects of his job. “It seems Barack Obama is moving us closer and closer to socialism, to more of a European government,” said Mr. Gorden, a consultant in the oil and gas industry who lives in Traverse City, Mich.

Moving away from fiscal matters, almost half, 49 percent, of respondents approve of the president’s handling of foreign policy, and 36 percent disapprove.

The nationwide poll was conducted Jan. 11-15 with 1,110 adults, using landlines and cellphones, and has a margin of sampling error of plus or minus three percentage points. More results from this poll will be released on NYTimes.com after 6:30 p.m.

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Tina Fey Wants Boring People to Get a License to Twitter






We realize there’s only so much time one can spend in a day watching new trailers, viral video clips, and shaky cell phone footage of people arguing on live television. This is why every day The Atlantic Wire highlights the videos that truly earn your five minutes (or less) of attention. Today:  


RELATED: Jimmy Kimmel Really Hates Kids; Call Me Again Maybe






Tina, you can be in charge of Twitter-licensing any day. And, please, start with Donald Trump….


RELATED: A Bad Lip Read of Edward and Bella; Kimmel Continues to Make Kids Cry


RELATED: The Honey Boo Boo Nature Special; Everyone’s Favorite Sleepwalking Mom


The Atlantic Wire staff (with the exception of our Canadian correspondent) travels on the New York City subway system every single day. We have never seen this man. If you have, give him a dollar for us:


RELATED: Ai Weiwei’s ‘Gangnam Style’ Isn’t Bad


RELATED: So Which Boyfriend Is Taylor Swift Singing About Now?


Parents, please take this piece of advice: If Jimmy Kimmel comes knocking, the answer is always yes. 


And finally, Notre Dame’s Manti Te’o has changed the way we think about Internet relationships. But before you bemoan the terribleness of Internet dating and how awful everyone’s become, we present you this: 


Wireless News Headlines – Yahoo! News





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Snowboarder Kevin Pearce stars in film at Sundance


The camera zoomed out as snowboarder Kevin Pearce sank deeper into the leather rocking chair, his voice quivering with every word he whispered to his therapist.


Just when Pearce thought he was making progress from a traumatic brain injury he suffered during a frightful fall in the halfpipe three years ago, more bad news seemed to follow.


On this day, he found out he needed additional eye surgeries to correct his double vision. Downcast and dejected, he told his therapist, "It just feels like it's never ending. Will it never end?"


The camera closed in tight on his brother, Adam, who was sitting on the couch: A tear rolled down Adam's cheek as he listened to the sorrow of his younger sibling.


That's just one of the touching scenes in the film "The Crash Reel," a documentary about Kevin Pearce's return from his life-altering accident set to premiere on Friday night at the Sundance Film Festival.


Pearce has yet to see the nearly two-hour movie directed by British filmmaker Lucy Walker. He's heard through the grapevine the film is "tripping" and "rad" and "insane." But he wanted to hold off until he was with his family and a close-knit group of pro snowboarders who call themselves the "Frends" (there's no 'I' in friendship). They all will be on hand for the debut.


"This film is going to be unreal," Pearce said in an interview from his home in Carlsbad, Calif., shortly before traveling to Park City, Utah, for the festival. "I'm so psyched."


The first part of the movie chronicles the rise of Pearce, the up-and-coming snowboarder expected to give Shaun White his biggest challenge at the 2010 Vancouver Games. But on Dec. 31, 2009 — just 49 days before the Olympics — Pearce miscalculated a tricky maneuver during a training run in Park City and landed directly on his face.


From there, the film focuses his recovery, with his family playing an integral role in his rehabilitation at Craig Hospital, a Denver facility that specializes in spinal cord and traumatic brain injuries.


And finally, it centers on Pearce trying to make some sort of peace with his new life.


"What's so shocking about this material is to realize that in a split second life can change on a dime," said Walker, who had help financing the picture with assistance from HBO Documentary Films. "He didn't put his hand out — that movement would've changed everything in his life. You can see that moment, but you can't take it back. I get very moved around that."


Walker became acquainted with Pearce's story soon after it happened. She was in Park City and noticed the town was covered in red "I ride with Kevin" stickers. They later met at a Nike function and started a conversation.


"My first thought was, 'What an amazing young man. What an incredible journey he's been on,'" Walker said. "My second thought was, 'Someone should make a film' and my third thought was, 'I'd love for it to be me.'"


And so it would be, because from the moment Pearce met Walker, he felt a connection.


Walker has an extensive background in documentary films, telling stories ranging from Amish youths deciding if they should remain in or leave their community ("Devil's Playground") to blind Tibetan students climbing Everest ("Blindsight").


She certainly had enough footage for this project, given the popularity of Pearce. Walker tracked down tape of contests and training runs from all over the world.


"The action snowboarding community is so eye-popping and has this incredible wealth of material," she said. "It's incredibly cinematic."


Not only that, but she had a dashing young actor with wavy, brown hair and black-rimmed glasses for the leading role.


Kevin Pearce, the movie star. It has a nice ring.


Although, he'd rather be Kevin Pearce, the snowboarding star. But those days are over as he comes to realize in the film. He only reaches that point with the help of his family, who even have a fireside chat to determine how best to intervene and tell him he's not ready — nor will he ever be ready — to drop back into the halfpipe.


He thinks he is, though, returning to the slopes last year with a run at Breckenridge, Colo., with his "Frends" entourage.


Later, he competed in a banked slalom event — on a slope, not in a halfpipe — without his family's knowledge. He meandered through the tricky course and said after finishing, "My snowboarding is bad right now. I was bummed out. I'm not good enough and not in the place I need to be to do really well."


These days, he simply rides for fun in powder.


Although Pearce has yet to see the film, he's checked out the footage of his fall. He caught it online when it was briefly posted, before it was taken down.


"I was like, 'That was gnarly,'" said Pearce, who will serve as an analyst at the Winter X Games next week in Aspen. "To the average person, you really can't tell how bad it is."


It definitely comes across in the film, especially after factoring in the chain of events leading up to the crash.


He and his buddies were originally going to snowboard in Aspen that week, but changed their minds because the halfpipe wasn't up to their satisfaction. They packed up the truck and went to Park City.


On the morning of the accident, Pearce rode his stationary bike to get ready and commented to the camera, "Today is only going to continue to get better."


Standing at the top of the halfpipe, Pearce went rock, paper, scissors with good friend Luke Mitrani to see who went first. Pearce lost and moments later over-rotated on his run and badly crashed.


"I started hollering for ski patrol, 'Hey, we're going to need a helicopter up here," Olympic bronze medalist Scotty Lago said in the documentary.


An intense moment.


Then again, this movie was filled with stirring scenes:


— Pearce being asked by a fan if he could take White and good-naturedly replying, "I'll get back at it soon and take him down."


— Coming out of a surgery filled with panic, only to instantly calm down once he grasped his mom's hand.


— Sarah Burke recounting her injuries while riding in a car with her husband, Rory Bushfield. Burke died in a training accident last year in the same Utah halfpipe where Pearce was hurt.


— His mom giving him a hug and crying before he took his first run after the accident.


— Pearce's dad reaching for his hand before Thanksgiving dinner.


— His brother David, who has Down Syndrome, pleading with Kevin never to snowboard again because he doesn't want to lose him.


"That's the wonderful thing about a documentary — you get a really intimate look," Walker said. "I think a lot of people will be very moved and inspired by this film."


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The Neediest Cases: Medical Bills Crush Brooklyn Man’s Hope of Retiring


Andrea Mohin/The New York Times


John Concepcion and his wife, Maria, in their home in Sheepshead Bay, Brooklyn. They are awaiting even more medical bills.







Retirement was just about a year away, or so John Concepcion thought, when a sudden health crisis put his plans in doubt.





The Neediest CasesFor the past 100 years, The New York Times Neediest Cases Fund has provided direct assistance to children, families and the elderly in New York. To celebrate the 101st campaign, an article will appear daily through Jan. 25. Each profile will illustrate the difference that even a modest amount of money can make in easing the struggles of the poor.


Last year donors contributed $7,003,854, which was distributed to those in need through seven New York charities.








2012-13 Campaign


Previously recorded:

$6,865,501



Recorded Wed.:

16,711



*Total:

$6,882,212



Last year to date:

$6,118,740




*Includes $1,511,814 contributed to the Hurricane Sandy relief efforts.





“I get paralyzed, I can’t breathe,” he said of the muscle spasms he now has regularly. “It feels like something’s going to bust out of me.”


Severe abdominal pain is not the only, or even the worst, reminder of the major surgery Mr. Concepcion, 62, of Sheepshead Bay, Brooklyn, underwent in June. He and his wife of 36 years, Maria, are now faced with medical bills that are so high, Ms. Concepcion said she felt faint when she saw them.


Mr. Concepcion, who is superintendent of the apartment building where he lives, began having back pain last January that doctors first believed was the result of gallstones. In March, an endoscopy showed that tumors had grown throughout his digestive system. The tumors were not malignant, but an operation was required to remove them, and surgeons had to essentially reroute Mr. Concepcion’s entire digestive tract. They removed his gall bladder, as well as parts of his pancreas, bile ducts, intestines and stomach, he said.


The operation was a success, but then came the bills.


“I told my friend: are you aware that if you have a major operation, you’re going to lose your house?” Ms. Concepcion said.


The couple has since received doctors’ bills of more than $250,000, which does not include the cost of his seven-day stay at Beth Israel Medical Center in Manhattan. Mr. Concepcion has worked in the apartment building since 1993 and has been insured through his union.


The couple are in an anxious holding pattern as they wait to find out just what, depending on their policy’s limits, will be covered. Even with financial assistance from Beth Israel, which approved a 70 percent discount for the Concepcions on the hospital charges, the couple has no idea how the doctors’ and surgical fees will be covered.


“My son said, boy he saved your life, Dad, but look at the bill he sent to you,” Ms.  Concepcion said in reference to the surgeon’s statements. “You’ll be dead before you pay it off.”


When the Concepcions first acquired their insurance, they were in good health, but now both have serious medical issues — Ms. Concepcion, 54, has emphysema and chronic obstructive pulmonary disease, and Mr. Concepcion has diabetes. They now spend close to $800 a month on prescriptions.


Mr. Concepcion, the family’s primary wage earner, makes $866 a week at his job. The couple had planned for Mr. Concepcion to retire sometime this year, begin collecting a pension and, after getting their finances in order, leave the superintendent’s apartment, as required by the landlord, and try to find a new home. “That’s all out of the question now,” Ms. Concepcion said. Mr. Concepcion said he now planned to continue working indefinitely.


Ms. Concepcion has organized every bill and medical statement into bulging folders, and said she had spent hours on the phone trying to negotiate with providers. She is still awaiting the rest of the bills.


On one of those bills, Ms. Concepcion said, she spotted a telephone number for people seeking help with medical costs. The number was for Community Health Advocates, a health insurance consumer assistance program and a unit of Community Service Society, one of the organizations supported by The New York Times Neediest Cases Fund. The society drew $2,120 from the fund so the Concepcions could pay some of their medical bills, and the health advocates helped them obtain the discount from the hospital.


Neither one knows what the next step will be, however, and the stress has been eating at them.


“How do we get out of this?” Mr. Concepcion asked. “There is no way out. Here I am trying to save to retire. They’re going to put me in the street.”


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DealBook: Michael Dell’s Empire in a Buyout Spotlight

The computer empire of Michael S. Dell spreads across a campus of low-slung buildings in Round Rock, Tex.

But his financial empire — estimated at $16 billion — occupies the 21st floor of a dark glass skyscraper on Fifth Avenue in Manhattan.

It is there that MSD Capital, started by Mr. Dell 15 years ago to manage his fortune, has quietly built a reputation as one of the smartest investors on Wall Street. By amassing a prodigious portfolio of stocks, companies, real estate and timberland, Mr. Dell has reduced his exposure to the volatile technology sector and branched out into businesses as diverse as dentistry and landscaping.

Now, Mr. Dell is on the verge of making one of the biggest investments of his life. The 47-year-old billionaire and his private equity backers are locked in talks to acquire Dell, the company he started with $1,000 as a teenager three decades ago, in a leveraged buyout worth more than $20 billion. MSD could play a role in the Dell takeover, according to people briefed on the deal.

The private equity firm Silver Lake has been in negotiations to join with Mr. Dell on a transaction, along with other potential partners like wealthy Asian investors or foreign funds. Mr. Dell would be expected to roll his nearly 16 percent ownership of the company into the buyout, a stake valued at about $3.5 billion. He could also contribute additional personal money as part of the buyout.

That money is managed by MSD, among the more prominent so-called family offices that are set up to handle the personal investments of the wealthy. Others with large family offices include Bill Gates, whose Microsoft wealth financed the firm Cascade Investment, and New York’s mayor, Michael R. Bloomberg, who set up his firm, Willett Advisors, in 2010 to manage his personal and philanthropic assets.

“Some of these family offices are among the world’s most sophisticated investors and have the capital and talent to compete with the largest private equity firms and hedge funds,” said John P. Rompon, managing partner of McNally Capital, which helps structure private equity deals for family offices.

A spokesman for MSD declined to comment for this article. The buyout talks could still fall apart.

In 1998, Mr. Dell, then just 33 years old — and his company’s stock worth three times what it is today — decided to diversify his wealth and set up MSD. He staked the firm with $400 million of his own money, effectively starting his own personal money-management business.

To head the operation, Mr. Dell hired Glenn R. Fuhrman, a managing director at Goldman Sachs, and John C. Phelan, a principal at ESL Investments, the hedge fund run by Edward S. Lampert. He knew both men from his previous dealings with Wall Street. Mr. Fuhrman led a group at Goldman that marketed specialized investments like private equity and real estate to wealthy families like the Dells. And Mr. Dell was an early investor in Mr. Lampert’s fund.

Mr. Fuhrman and Mr. Phelan still run MSD and preside over a staff of more than 100 overseeing Mr. Dell’s billions and the assets in his family foundation. MSD investments include a stock portfolio, with positions in the apparel company PVH, owner of the Calvin Klein and Tommy Hilfiger brands, and DineEquity, the parent of IHOP and Applebee’s.

Among its real estate holdings are the Four Seasons Resort Maui in Hawaii and a stake in the New York-based developer Related Companies.

MSD also has investments in several private businesses, including ValleyCrest, which bills itself as the country’s largest landscape design company, and DentalOne Partners, a collection of dental practices.

Perhaps MSD’s most prominent deal came in 2008, in the middle of the financial crisis, when it joined a consortium that acquired the assets of the collapsed mortgage lender IndyMac Bank from the federal government for about $13.9 billion and renamed it OneWest Bank.

The OneWest purchase has been wildly successful. Steven Mnuchin, a former Goldman executive who led the OneWest deal, has said that the bank is expected to consider an initial public offering this year. An I.P.O. would generate big profits for Mr. Dell and his co-investors, according to people briefed on the deal.

Another arm of MSD makes select investments in outside hedge funds. Mr. Dell invested in the first fund raised by Silver Lake, the technology-focused private equity firm that might now become his partner in taking Dell private.
MSD’s principals have already made tidy fortunes. In 2009, Mr. Fuhrman, 47, paid $26 million for the Park Avenue apartment of the former Lehman Brothers chief executive Richard S. Fuld. Mr. Phelan, 48, and his wife, Amy, a former Dallas Cowboys cheerleader, also live in a Park Avenue co-op and built a home in Aspen, Colo.

Both are influential players on the contemporary art scene, with ARTNews magazine last year naming each of them among the world’s top 200 collectors. MSD, too, has dabbled in the visual arts. In 2010, MSD bought an archive of vintage photos from Magnum, including portraits of Marilyn Monroe and Mahatma Gandhi, and has put the collection on display at the University of Texas, Mr. Dell’s alma mater.

Just as the investment firms Rockefeller & Company (the Rockefellers, diversifying their oil fortune) and Bessemer Trust (the Phippses, using the name of the steelmaking process that formed the basis of their wealth) started out as investment vehicles for a single family, MSD has recently shown signs of morphing into a traditional money management business with clients beside Mr. Dell.

Last year, for the fourth time, an MSD affiliate raised money from outside investors when it collected about $1 billion for a stock-focused hedge fund, MSD Torchlight Partners. A 2010 fund investing in distressed European assets also manages about $1 billion. The Dell family is the anchor investor in each of the funds, according to people briefed on the investments.

MSD has largely remained below the radar, though its name emerged a decade ago in the criminal trial of the technology banker Frank Quattrone on obstruction of justice charges. Prosecutors introduced an e-mail that Mr. Fuhrman sent to Mr. Quattrone during the peak of the dot-com boom in which he pleaded for a large allotment of a popular Internet initial public offering.

“We know this is a tough one, but we wanted to ask for a little help with our Corvis allocation,” Mr. Fuhrman wrote. “We are looking forward to making you our ‘go to’ banker.”

The e-mail, which was not illegal, was meant to show the quid pro quo deals that were believed to have been struck between Mr. Quattrone and corporate chieftains like Mr. Dell — the bankers would give executives hot I.P.O.’s and the executives, in exchange, would hold out the possibility of giving business to the bankers. (Mr. Quattrone’s conviction was reversed on appeal.)

The MSD team has also shown itself to be loyal to its patron in other ways.

On the MSD Web site, in the frequently asked questions section, the firm asks and answers queries like “how many employees do you have” and “what kind of investments do you make.”

In the last question on the list, MSD asks itself, “Do you use Dell computer equipment?” The answer: “Exclusively!”


This post has been revised to reflect the following correction:

Correction: January 18, 2013

An earlier version of this article misstated when an MSD affiliate raised money from outside investors for a hedge fund. It was last year, not earlier this year. The article also misstated which hedge fund and its focus. It was MSD Torchlight Partners, a stock-focused hedge fund, not MSD Energy Partners, an energy-focused hedge fund.

A version of this article appeared in print on 01/18/2013, on page B1 of the NewYork edition with the headline: Michael Dell’s Empire In a Buyout Spotlight.
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DealBook: JPMorgan's Board Uses a Pay Cut as a Message

Shortly after the markets closed on Tuesday afternoon, an emissary from JPMorgan Chase’s board of directors walked two flights down to the 48th-floor corner office of the bank’s chief executive, Jamie Dimon, to deliver a stark message. The board had voted to slash Mr. Dimon’s annual compensation for 2012 by half.

At first blush, the move appeared to be a stinging rebuke of Mr. Dimon for his failures of leadership that contributed to the bank’s multibillion-dollar trading loss last year.

But the pay cut was actually a message from the board to regulators and worried investors that it was a strong watchdog over the nation’s largest bank, according to several people with knowledge of the matter.

After facing criticism for its lax oversight, the board wanted to assert its position as a check on top management, according to the people, who declined to be named because the discussions were not public.

Mr. Dimon, who was the highest paid chief executive at a large bank in 2011, was unfazed when he heard the news. On Wednesday, Mr. Dimon said the board “had a tough job” in assessing how to reduce his total compensation for the year. He called the trading episode an “embarrassing mistake” and said, “I respect their decision.”

The decision came after back-to-back board meetings earlier this week where the head of the board’s compensation committee, Lee R. Raymond, the former chief executive of Exxon Mobil who is known for his no-nonsense style, made a compelling pitch to his fellow directors. The group, Mr. Raymond argued, needed to take swift, decisive action.

While a few members were initially skittish about the depths of the proposed cuts, the board voted unanimously to reduce Mr. Dimon’s pay to $11.5 million from $23.1 million a year earlier, according to the people. The directors also voted to release the results of internal investigations into the trading losses, which largely fault other top executives for the problems.

The extent of the cut took some JPMorgan executives by surprise when news of the compensation was disclosed on Wednesday along with the bank’s earnings, which surged to an annual record of $21.3 billion.

“Mr. Dimon bears ultimate responsibility for the failures that led to losses,” the board said in a statement. It added that upon learning the extent of the losses, he “responded forcefully.”

Still, the trading losses, which have swelled to more than $6 billion, have cast a long shadow over the board and management of the bank. Many of JPMorgan’s hallmarks that Mr. Dimon has trumpeted, from its deft management of risk to a deep bench of executive talent, have been partially undercut by the trading fiasco and ensuing upheaval.

Despite the board’s move on pay, some federal regulators are skeptical that the directors have prowess to adequately police risk, according to several current and former regulators with knowledge of the matter. Mr. Dimon, 56, who successfully steered the bank through the turbulence of the 2008 financial crisis relatively unscathed, still maintains a tight grip on the bank.

Some federal regulators worry that the board, which largely exonerated themselves in their internal investigation of the losses, cannot sufficiently push back against the hard-charging Mr. Dimon. Others, the regulators said, are concerned that the directors lack the financial acumen to rein in risky activities.

At the time of the losses, the board’s risk committee had three members, a smaller group than many of its major Wall Street rivals. Also troubling, the regulators said, the three included executives with little banking experience: the president of the American Museum of Natural History, Ellen V. Futter, and David M. Cote, the chief executive of the manufacturer Honeywell. Since the losses were disclosed, Timothy P. Flynn, formerly the chairman of the auditing firm KPMG, joined the risk committee.

Joseph Evangelisti, a JPMorgan spokesman, said, “This is the same board that brought us through the worst financial crisis in our history with flying colors.”

Since revealing the trading losses in May from a soured bet on complex credit derivatives, Mr. Dimon has exerted his powerful influence over the shape and direction of the bank. He has reshuffled the upper echelons of its management, claiming the jobs of some of his most trusted lieutenants. Two notable casualties are Douglas L. Braunstein, who ceded his role as chief financial officer in November, and Barry L. Zubrow, a former chief risk officer, who resigned as head of regulatory affairs late last year. Mr. Braunstein is a vice chairman reporting to Mr. Dimon.

Adding to the turmoil at the top of the bank, Ina R. Drew resigned as head of the chief investment office shortly after the trading losses were announced. Her precipitous fall was followed this year by the departure of James E. Staley, once considered a potential heir to Mr. Dimon.

To replace them, Mr. Dimon has elevated a group of younger executives, most of whom are in their 40s. Some bank analysts and executives at JPMorgan worry that the group does not yet have the institutional knowledge or experience of their more seasoned predecessors, according to several people with knowledge of the matter.

At a conference in San Francisco earlier this month, Mr. Dimon called the current group of executives “the strongest leadership team we have ever had in place.” He mixed his praise, however, with a sharp criticism of others at the bank in the aftermath of the trading losses. “Instead of helping, they were running around with their head chopped off,” he said. Some “acted like children” and wondered “What does this mean for me personally? How’s my reputation?”

At the same time, Mr. Dimon has emerged relatively unscathed. While critical of Mr. Dimon, an internal report, led by Michael J. Cavanagh, a head of the corporate and investment bank, leveled its most scathing attacks on the executives who directly oversaw the London traders who made increasingly outsize wagers in the bank’s chief investment office. “Responsibility for the flaws that allowed the losses to occur lies primarily with C.I.O. management,” the report, which was released on Wednesday, said. Also ensnared are Mr. Zubrow and Mr. Braunstein.

The cuts target Mr. Dimon’s bonus compensation. While his salary remained the same from a year earlier at $1.5 million, his bonus was whittled down to $10 million, paid out in restricted stock.

Still, Mr. Dimon has accumulated much wealth in his years at the bank. He owns bank shares valued at $263 million.

Ben Protess contributed reporting.

A version of this article appeared in print on 01/17/2013, on page A1 of the NewYork edition with the headline: JPMorgan Uses Big Cut in Pay To Send Signal.
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PC titans take notes from tablets to regain customers






SAN FRANCISCO (Reuters) – Personal computer makers, trying to beat back a tablet mania that’s eating into their sales, are making what may be a last-ditch attempt to sway customers by mimicking the competition.


Many of the laptops to be unveiled around the world in coming months will be hybrids or “convertibles” – morphing easily between portable tablets and full-powered laptops with a keyboard, industry analysts say.






The wave of hybrids comes as Intel Corp and Microsoft Corp, long the twin leaders of the PC industry, prepare to report results this week and next. Wall Street is predicting flat to sluggish quarterly revenue growth for both, underscoring the plight of an industry that has struggled to innovate.


In 2013, some are hoping that will change.


With the release of Microsoft’s touch-centric, re-imagined Windows 8 platform in October and more power-efficient chips from Intel, PC makers are trying to spark growth by focusing on creating slim laptops with touchscreens that convert to tablets and vice versa.


Microsoft, expanding beyond its traditional business of selling software, is expected this month to roll out a “Surface Pro” tablet compatible with legacy PC software developed over decades.


That’s a major selling point for corporate customers like German business software maker SAP, which plans to buy Surface Pros for employees that want it, said SAP Chief Information Officer Oliver Bussmann.


“The hybrid model is very compelling for a lot of users,” Bussmann told Reuters last week. “The iPad is not replacing the laptop. It’s hard to create content. That’s the niche that Microsoft is going after. The Surface can fill that gap.”


Apple’s iPad began chipping away at demand for laptops in 2010, an assault that accelerated with the launch of Amazon.com Inc’s Kindle Fire and other Google Android devices like Samsung Electronics’ Note.


With sales of PCs falling last year for the first time since 2001, this year may usher in a renaissance in design and innovation from manufacturers who previously focused on reducing costs instead of adding new features to entice consumers.


“People used to be able to just show up at the party and do well just because the market was going up,” Lisa Su, a senior vice president at Advanced Micro Devices, which competes against Intel. “It’s harder now. You can’t just show up at the party. You have to innovate and have something special.”


At last week’s Consumer Electronics Show in Las Vegas, devices on display from Intel and others underscored the PC industry’s plan to bet more on convertible laptops.


Lenovo’s North America President Gerry Smith told Reuters last week that over the holidays he sold out of the company’s “Yoga”, a laptop with a screen that flips back behind its keyboard, and the “ThinkPad Twist”, another lightweight laptop with a swiveling screen.


Intel itself showed off a hybrid prototype laptop dubbed “North Cape”, housed in a thin tablet screen that attaches magnetically to a low-profile keyboard. And Asus showed a hefty 18-inch, all-in-one Windows 8 PC that converts to a tablet running Google’s Android operating system.


Lenovo and Asus, which have both won positive reviews for their devices in recent months, increased their PC shipments by 14 percent and 17 percent respectively last year, according to Gartner.


“The number of unique systems that our partners have developed for Windows has almost doubled since launch. That gives an indication of how much innovation is going into the PC market,” Tami Reller, chief financial officer of Microsoft’s Windows unit, told Reuters.


FINGER-POINTING


To be sure, hybrids with detachable or twistable screens do not yet account for a significant proportion of global PC sales, and consumers still need to be sold on their benefits.


Previous attempts by PC makers to reinvigorate the market have had limited success. Pushed by Intel, manufacturers launched a series of slimmed down laptops early last year with features popular on tablets, like solid-state memory.


They were too expensive, often at more than $ 1,000 apiece, and failed to arrest the PC decline.


Microsoft’s Windows 8 launch in October brought touchscreen features but failed to spark a resurgence in PC sales many manufacturers had hoped for. A round of finger-pointing ensued, with PC and chip executives blaming a shortage of touchscreen components and others saying it was the manufacturers that sharply underestimated consumer demand for touch devices.


Regardless, the entire PC ecosystem is onboard for 2013. Almost half of the Windows laptops rolled out this year may have touch screens. Of those, most will be in convertible form, according to IDC analyst David Daoud.


Further blurring the distinction between kinds of devices, about a quarter of upcoming Windows 8 gadgets will be tablets that can easily act as laptops with the help of keyboard accessories, he added.


But buyers may have to wait until the second half of the year to see many of them.


“The most likely scenario today is for the industry to have these products ready for the back-to-school season,” Daoud said.


(Reporting and writing by Noel Randewich; Additional reporting by Poornima Gupta and Bill Rigby in Seattle; Editing by Tim Dobbyn)


Tech News Headlines – Yahoo! News





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Sniping, then singing as 'American Idol' returns


LOS ANGELES (AP) — There was no hair-pulling between Mariah Carey and Nicki Minaj on the season debut of "American Idol," although some viewers may have been reduced to it.


The pop divas exchanged insults worthy of middle schoolers, fellow freshman judge Keith Urban looked trapped between them, and there was a whiff of make-believe Wednesday about the show's touted feud.


"We can have accessories. I didn't know that was allowed. That's all I'm gonna say," Carey commented archly about Minaj's flashy, drum major-style hat.


The rapper took offense.


"Why'd you have to reference my hat?" Minaj said, with Carey then accusing Minaj of rudeness to her during an earlier elevator meeting.


Mercifully, a contestant arrived to break up the bickering and remind viewers that we tuned in to a talent show, not an episode of "Real Housewives of American Idol."


When the action resumed, Minaj demonstrated a magnificent talent for eye-rolling and upped the ante with a muttered insult.


"If she called me something that begins with a 'b' and ends with an 'itch,' I rebuke it," Carey declared.


Whether the clash is real, Minaj's scrappiness came off as far more entertaining than Carey's demure, even queenly, manner. Carey is getting a truly royal paycheck: $18 million, to Minaj's $12 million.


The award for least self-absorbed judge goes to genial country singer Urban.


The two-hour episode opened by showcasing last year's winner, Phillip Phillips, and those alumni with established careers, including Carrie Underwood, Kelly Clarkson and Jennifer Hudson.


Then host Ryan Seacrest brought "American Idol" back down to Earth and to its new judges.


"Our legacy continues as a new era begins," he said, reciting the panelists' resumes, including record sales, Grammys won and, in Carey's case, vocal range (five octaves, "the definition of diva," Seacrest said).


Cue the parade of good, bad and touching performances and biographies, with contestants facing serious challenges once again an "Idol" hallmark.


The judges, including veteran Randy Jackson, hardened their hearts and rejected a young man who had lost a leg to cancer but melted for a teenage girl whose family fosters children with medical concerns and another singer with partial hearing loss.


Forty-one people survived the New York auditions to sing another day in the Hollywood rounds, with the action moving to Chicago on Thursday's episode.


"I feel like we jell well in a weird, crazy way," Minaj declared optimistically of the panel near the episode's conclusion.


Fox certainly hopes so. Last season, "Idol" lost its status as the most-watched TV program for the first time since 2003, eclipsed by NBC's "Sunday Night Football," and pegged its lowest-rated season since it debuted in summer 2002.


___


Online:


http://www.fox.com


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The New Old Age Blog: Officials Say Checks Won't Be in the Mail

The jig is up.

Two years ago, the Treasury Department initiated its Go Direct campaign to persuade people still receiving paper checks for their Social Security, Veterans Affairs, S.S.I. and other federal benefits to switch to direct deposit.

“At that point, we were issuing approximately 11 million checks each month,” or about 15 percent of the total, Walt Henderson, director of the campaign, told me.

After putting notices in every monthly check envelope, circulating public service announcements and putting the word out through banks, senior centers, the Red Cross, AARP and other organizations, the Treasury Department has since shrunk that number to five million monthly checks.

That means 93 percent of those getting federal benefits are using direct deposit or, if they prefer or lack a bank account, a Direct Express debit card that gets refilled each month and can be used anywhere that accepts MasterCard.

“So people have been getting the word and making the switch,” Mr. Henderson said. Now, federal officials are pushing the last holdouts to convert to direct deposit by March 1.

Although officials say the change is not optional, the jig isn’t entirely up. If you or your older relative does not respond to their pleading, “we’re not going to interrupt their payments,” Mr. Henderson said. But the department will start sending letters urging people to switch.

The major motive is financial: shifting the last paper checks to direct deposit or a debit card (only 2 percent of recipients go that route) will save $1 billion over the next decade, the department estimates.

But safety enters the picture, too. One reason some beneficiaries resist direct deposit, Mr. Henderson said, is that they fear their electronic deposits can be hacked or diverted. Having grown up in a predigital age, perhaps they feel safer with a check in their hands.

But they probably aren’t. In 2011, the Treasury Department received 440,000 reports of lost or stolen benefits checks. With direct deposit, “there’s no check lingering unattended in a mailbox,” Mr. Henderson noted.

The greater reason for sticking with paper is probably simple inertia. “It’s human nature to procrastinate,” he said.

But unless you or your relatives want a series of letters from the Treasury Department, it is probably time for the last fence-sitters to get with the program.

They don’t need to use a computer. People can switch to direct deposit, or get the debit card, at their banks or the local Social Security office. More simply, they can call a toll-free number, (800) 333-1795, and have agents walk them through the change. Or they can sign up online at www.GoDirect.org.

They will need:

  1. Their Social Security number.
  2. The 12-digit federal benefit number found on their checks.
  3. The amount of the most recent check.
  4. And, for direct deposit, a bank or credit union routing number, usually found on the front of a check. They can have direct deposit to a savings account, too.

A caution for New Old Age readers: If you think your relative has not switched because he or she is cognitively impaired and can no longer handle his finances, you can be designated a representative payee and receive monthly Social Security or S.S.I. payments on your relative’s behalf. This generally requires a visit to your local Social Security office, documentation in hand.


Paula Span is the author of “When the Time Comes: Families With Aging Parents Share Their Struggles and Solutions.”

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DealBook: After Mortgage Settlements, Bank of America's Profit Drops 63%

7:42 a.m. | Updated
Bank of America continues to cope with the self-inflicted wounds it suffered during the financial crisis.

The bank on Thursday reported a widely expected 63 percent drop in fourth-quarter profit after making huge payments to settle legal claims over its mortgage business. The bank’s earnings, a slim $732 million, amounted to 3 cents a share. That figure narrowly beat estimates of 2 cents a share, based on a survey of analysts by Thomson Reuters.

Bank of America’s quarterly revenue sank as well, down about 25 percent to $18.7 billion, a drop that stems from the steep legal charges tied to mortgage settlements with the government. The figures underscored the extent of the bank’s mortgage woes, an albatross it largely inherited from Countrywide Financial, the subprime lending giant it bought in 2008. Without the various charges, fourth-quarter revenue would have totaled $22.6 billion.

But the results also point to signs of a recovery for Bank of America. For the entire year, profit jumped to $4.2 billion, from $1.4 billion in 2011. Delinquent loans declined in the quarter, another sign of health, and the bank’s wealth management unit continued huge gains.

Bank of America also noted that the one-time legal charges, which skewed the bank’s true performance, helped it to continue shedding the legacy of the crisis.

“We enter 2013 strong and well positioned for further growth,” Bank of America’s chief executive, Brian T. Moynihan, said in a statement.

Bank of America’s bleak quarterly profit numbers come as no surprise to investors. The bank previously announced that it incurred a $700 million charge on the perceived improvement in its debt, an accounting-related cost that actually indicated greater public confidence in the stability of the bank. (The charges were offset because of a one-time $1.3 billion gain from foreign tax credits.)

The bank’s recent legal settlements also weighed down its results. Bank of America had warned investors that it deducted $2.5 billion to settle with regulators over claims of foreclosure abuses.

The bank last week also struck an $11 billion agreement to resolve claims that it sold troubled mortgages to the government-controlled housing finance giant Fannie Mae, which suffered deep losses from the loans. As part of the announcement, Bank of America disclosed that its fourth-quarter pretax income took a $2.7 billion hit to cover part of the deal.

The expenses, all told, wiped out $5.9 billion, or 34 cents a share, from fourth-quarter earnings.

“Litigation expenses have taken a huge toll,” said James Sinegal, an analyst with the research firm Morningstar.

But the settlements are also helping the bank close a dark chapter in its history. The deal last week put to rest a bitter battle with Fannie Mae that lingered since the housing bubble burst.

Bank of America, which recently sold off about 20 percent of its loan servicing business, also reached a $2.43 billion settlement with shareholders last fall. The agreement, stemming from its takeover of Merrill Lynch, resolved accusations that Bank of America misled investors about Merrill’s health.

“As long as they keep taking these charges, they can say they’re putting this behind them,” Mr. Sinegal said.

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Islamists Attack Algerian Gas Field and Kidnap Foreigners







ALGIERS (Reuters) - Islamist militants attacked a gas production field in southern Algeria on Wednesday, kidnapping at least seven foreigners and killing a French national, local and company officials said.




An al Qaeda-linked group operating in the Sahara said it had carried out the raid on the In Amenas facility, Mauritania's ANI news agency reported.


The field, located close to the border with Libya, is operated by a joint venture including BP, Norwegian oil firm Statoil and Algerian state company Sonatrach.


Five Japanese nationals working for the Japanese engineering firm JCG Corp were kidnapped as well as a French national, local officials said. An Irishman was also seized, the Irish government said.


A French national was killed in the attack, a local source said, but it was unclear if the victim was the same person who had been kidnapped.


The foreigners were taken from In Amenas in the morning. Algerian troops had mounted an operation to rescue the hostages and had also surrounded the workers' camp at Tiguentourine, a local source said.


Algeria has allowed France to use its air space during its military intervention against Al Qaeda-linked Islamist rebels in Mali, although officials have yet to make a link between Wednesday's attack and the conflict in Algeria's southern neighbor.


ANI, which has regular direct contact with Islamists, said that fighters under the command of Mokhtar Belmokhtar were holding the foreigners seized from the gas field.


Belmokhtar for years commanded al Qaeda fighters in the Sahara before setting up his own armed Islamist group late last year after an apparent fallout with other militant leaders.


BP confirmed there had been a "security incident" at the In Amenas field but could give no more details.


Statoil, a minority shareholder in the venture, said it was notified of the incident on Wednesday morning but could not say if any of its fewer than 20 employees were affected.


Statoil described the incident as serious and called it an emergency situation.


BP said the field was approximately 1,300 km (825 miles) from the capital, Algiers.


The five Japanese work for the engineering firm JGC Corporation, Jiji news agency reported, quoting company officials. JGC has a deal with Sonatrach-BP-Statoil Association for work in gas production at In Amenas.


In Tokyo, the Japanese Foreign Ministry said it was gathering information on the situation but could not comment. French Foreign Ministry officials also said they had no immediate comment and were trying to verify the reports.


(Reporting by Lamine Chikhi in Algiers, additional reporting by Catherine Bremer in Paris; Editing by Angus MacSwan)


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“Banshee” head Greg Yaitanes: secrets galore, but hold the olives






NEW YORK (TheWrap.com) – Like many TV creators, Greg Yaitanes isn’t crazy about the alternate identities people adopt online – and the Emmy-winning former “House” executive producer gets to explore anonymity and becoming someone else in the new Cinemax series “Banshee.”


“I’ve been harassed by ‘House’ Twitter fans for years now. I’m always kind of surprised at people’s level of saying something that they would never say to my face – that they would never say to another human being’s face,” he said.






Not that Yaitanes has a problem with social media – he was an early investor in Twitter, and used a litany of apps and new technology to make his pulpy drama, executive produced by Alan Ball, as scrappy as a tech startup.


With “Banshee,” Yaitanes gets to explore “the best of the wish fulfillment that people have of reinventing themselves or being able to disappear. In a way, all the characters are reinventing themselves.”


Those characters include a thief who steals the identity of the sheriff in Banshee, Pa., his cat burglar ex-girlfriend, who has eked out a new life as a homemaker, and the villain, a man who becomes a criminal mastermind after he is ousted from his Amish community. Then there’s the identity thief – Job – who keeps changing which gender he appears to be.


We talked with Yaitanes about how he made his show look expensive, how to describe Job, and the importance of counting olives.


The Wrap: The show looks expensive – starting with a sequence in New York in which a bus falls over and skids through an intersection. Can you talk about how you kept costs down?


Yaitanes: It’s a way of thinking from working with startups. They’re often one, two, three man operations when they first operate. Twitter was an example of that. You have to look at what is the simplest, most effective way to do this, to deliver to the consumer. We had a very specific box that “Banshee” could be made in, in terms of our budget.


The first thing that came to mind was what I call the “one olive.” The one olive is a story that originates with American Airlines back in the ’80s, when American Airlines took one olive out of their inflight meal – and saved $ 40,000. It’s all about challenging and making everybody their own producer and their own CEO and asking, ‘What is that one thing I can take out that either saves money or makes us that more efficient over the course of 100 days?’


Maybe $ 1,000 isn’t particularly exciting, but when you do it across a season, that’s an official day of shooting. That’s seven more minutes of content that we can get done that day.


We just looked for all these small ways that I feel put nearly an episode’s worth of saving back into the show, so we could make our show more robust and make the action scenes that much bigger and get the actor that we really want.


These are things that the audience gets to enjoy.


What are some of the cost-saving measures?


We also tried to find our olives by using the apps and technology that’s right in front of us, like Skype and Facetime and iChat so we don’t have to fly everybody around? I think probably 75 percent of the crew including directors were hired through some form of video conferencing. You saw the pilot, with the bus crash. We scouted all of that via Google Streetview. We could find blocks and circle around and look up and down and did all the legwork until we absolutely had to go to New York. So we saved on those flights, those hotels, those per diems.


You’ve invested in so many social media sites. Is there something that want to say on the show about the changing nature of identity when we can all take on different personalities online? Your main character, Lucas Hood (Antony Starr) actually takes on another person’s life.


Lucas does the most obvious adoption. A lot of people’s secrets and new identities and new lives are happening before the series starts, which is why we’ve shot an entire online series with our cast.


One of those characters, Job, is constantly in flux – even in terms of whether he appears male or female. Is he transgendered?


He’s straddling this line of androgyny. We specifically don’t want to answer questions about Job’s sexuality… he is a chameleon. He has something that he can tap into depending on his situation. By the time you get to the finale you won’t believe where Job goes.


Internet News Headlines – Yahoo! News





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Oxygen halts controversial 'Babies' Mamas' project


NEW YORK (AP) — Oxygen Media has pulled the plug on "All My Babies' Mamas," a reality special the network was developing about a musician who has fathered 11 children with 10 different mothers.


The network offered no reason for curtailing the project. In a statement issued Tuesday, Oxygen said that, "as part of our development process, we have reviewed casting and decided not to move forward with the special."


The one-hour program would have featured Atlanta rap artist Shawty Lo, his children and their mothers. It was expected to air later this year on Oxygen, an NBCUniversal cable network owned by Comcast.


"All My Babies' Mamas" got a hostile public reception after Oxygen announced it last month. At least one petition calling for Oxygen to shut it down has collected more than 37,000 signatures.


The Parents Television Council called the program's concept "grotesquely irresponsible and exploitive" and pledged to contact advertisers of the show if it reached the air.


Previously, Oxygen denied charges that the show was meant to be "a stereotypical representation of everyday life for any one demographic or cross section of society," but rather would reveal "the complicated lives of one man, his children's mamas and their army of children."


On Tuesday, Oxygen said it will "continue to develop compelling content that resonates with our young female viewers and drives the cultural conversation."


___


Online:


www.oxygen.com


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The New Old Age Blog: In Flu Season,Use a Mask. But Which One?

Do face masks help prevent people from getting the flu? And if so, how much protection do they give?

You might think the answer to this question would be well established. It’s not.

In fact, there is considerable uncertainty over how well face masks guard against influenza when people use them outside of hospitals and other health care settings. This has been a topic of discussion and debate in infectious disease circles since the 2009 H1N1 flu pandemic, also known as swine flu.

As the government noted in a document that provides guidance on the issue, “Very little information is available about the effectiveness of facemasks and respirators in controlling the spread of pandemic influenza in community settings.” This is also true of seasonal influenza — the kind that strikes every winter and that we are experiencing now, experts said.

Let’s jump to the bottom line for older people and caregivers before getting into the details. If someone is ill with the flu, coughing and sneezing and living with others, say an older spouse who is a bit frail, the United States Centers for Disease Control and Prevention recommends the use of a face mask “if available and tolerable” or a tissue to cover the nose and mouth.

If you are healthy and serving as a caregiver for someone who has the flu — say, an older person who is ill and at home — the C.D.C. recommends using a face mask or a respirator. (I’ll explain the difference between those items in just a bit.) But if you are a household member who is not in close contact with the sick person, keep at a distance and there is no need to use a face mask or respirator, the C.D.C. advises.

The recommendations are included in another document related to pandemic influenza — a flu caused by a new virus that circulates widely and ends up going global because people lack immunity. That is not a threat this year, but the H3N2 virus that is circulating widely is hitting many older adults especially hard. So the precautions are a good idea, even outside a pandemic situation, said Dr. Ed Septimus, a spokesman for the Infectious Diseases Society of America.

The key idea here is exposure, Dr. Septimus said. If you are a caregiver and intimately exposed to someone who is coughing, sneezing and has the flu, wearing a mask probably makes sense — as it does if you are the person with the flu doing the coughing and sneezing and a caregiver is nearby.

But the scientific evidence about how influenza is transmitted is not as strong as experts would like, said Dr. Carolyn Bridges, associate director of adult immunization at the C.D.C. It is generally accepted that the flu virus is transmitted through direct contact — when someone who is ill touches his or her nose and then a glass that he or she hands to someone else, for instance — and through large droplets that go flying through the air when a person coughs or sneezes. What is not known is the extent to which tiny aerosol particles are implicated in transmission.

Evidence suggests that these tiny particles may play a more important part than previously suspected. For example, a November 2010 study in the journal PLoS One found that 81 percent of flu patients sent viral material through air expelled by coughs, and 65 percent of the virus consisted of small particles that can be inhaled and lodge deeper in the lungs than large droplets.

That is a relevant finding when it comes to masks, which cover much of the face below the eyes but not tightly, letting air in through gaps around the nose and mouth. As the C.D.C.’s advisory noted, “Facemasks help stop droplets from being spread by the person wearing them. They also keep splashes or sprays from reaching the mouth and nose of the person wearing them. They are not designed to protect against breathing in the very small particle aerosols that may contain viruses.”

In other words, you will get some protection, but it is not clear how much. In most circumstances, “if you’re caring for a family member with influenza, I think a surgical mask is perfectly adequate,” said Dr. Carol McLay, an infection control consultant based in Lexington, Ky.

By contrast, respirators fit tightly over someone’s face and are made of materials that filter out small particles that carry the influenza virus. They are recommended for health care workers who are in intimate contact with patients and who have to perform activities like suctioning their lungs. So-called N95 respirators block at least 95 percent of small particles in tests, if properly fitted.

Training in how to use respirators is mandated in hospitals, but no such requirement applies outside, and consumers frequently put them on improperly. One study of respirator use in New Orleans after Hurricane Katrina, when mold was a problem, found that only 24 percent of users put them on the right way. Also, it can be hard to breathe when respirators are used, and this can affect people’s willingness to use them as recommended.

Unfortunately, research about the relative effectiveness of masks and respirators is not robust, and there is no guidance backed by scientific evidence available for consumers, Dr. Bridges said. Nor is there any clear way of assessing the relative merits of various products being sold to the public, which differ in design and materials used.

“Honestly, some of the ones I’ve seen are almost like a paper towel with straps,” Dr. McLay said. Her advice: go with name-brand items used by your local hospital.

Meanwhile, it is worth repeating: The single most important thing that older people and caregivers can do to prevent the flu is to be vaccinated, Dr. Bridges said. “It’s the best tool we have,” she said, noting that preventing flu also involves vigilant hand washing, using tissues or arms to block sneezing, and staying home when ill so people do not transmit the virus. And it is by no means too late to get a shot, whose cost Medicare will cover for older adults.

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DealBook: JPMorgan’s 4th-Quarter Profit Jumps 53% to $5.7 Billion

JPMorgan Chase touted a strong quarter of earnings, although the bank opted to slash the chief executive’s pay in light of a multi-billion dollar trading loss last year.

The bank reported a record profit of $5.7 billion for the fourth quarter, up 53 percent from the previous year. Revenues, too, were strong, rising 10 percent to $23.7 billion.

“The firm’s results reflected strong underlying performance across virtually all our businesses for the fourth quarter and the full year, with strong lending and deposit growth,” chief executive Jamie Dimon said in statement.

But the year was also clouded by a multi-billion dollar trading loss stemming from a bad bet on derivatives. JPMorgan continues to unwind the bungled trade that had racked up $6.2 billion in losses through the third quarter of 2012. The bank said it “experienced a modest loss” during the recent quarter.

In light of the trading losses, the bank’s board opted to reduce Mr. Dimon’s total compensation. That decision was driven by a desire to hold the chief executive accountable for some of the oversight failings that led to the bungled bet, according to several people close to the board.

The board cut Mr. Dimon’s total compensation for 2012 to $11.5 million from $23 million a year before. While Mr. Dimon’s salary remained the same at $1.5 million, his incentive compensation was reduced to $10 million, paid out in restricted stock.

Despite the overhang of the bad bet, JPMorgan produced record profit, as the economy and credit conditions improved. The bank continued to reduce the money it set aside for potential losses, adding to profits overall. And the bank notched gains in all its major divisions, showing strength in both consumer and corporate banking operations.

For the full year, JPMorgan reported earnings of $21.3 billion, compared with $19 billion in 2011. Revenues in 2012 were essentially flat at $99.9 billion.

Despite the rocky market conditions and uncertainty related to the budget impasse, the corporate-focused businesses reported nice gains. Investment banking fees jumped 54 percent to $1.7 billion, with debt and equity underwriting. Revenue in the commercial banking group hit $1.75 billion, with the tenth consecutive quarter of loan growth.

Income in JPMorgan’s asset management group rose 60 percent to $483 million. JPMorgan has been ramping up the business, as other riskier ventures get crimped by new regulation.

Like other big lenders, the bank’s earnings have also been bolstered by a surge in mortgage lending, driven in part by a series of federal programs that have helped drive down interest rates. As homeowners seize on the low rates, JPMorgan is experiencing a flurry of refinancing applications. The bank is also making bigger gains when those loans are packaged and eventually sold to big investors.

Overall, the mortgage banking group notched profit of $418 million, compared with a loss of $269 million in the previous year.

But those low interest rates also present a challenge for JPMorgan, which is dealing with glut of deposits. The bank reported average total deposits of $404 billion, up 10 percent from a year earlier.

As deposits pile up, the situation is weighing on profitability. The net interest margin, a key measure of a bank’s profitability, continued to shrink, dropping to 2.44 percent from 2.76 percent the previous year.

The bank also continues to face a slew of legal problems.

In the last year, JPMorgan has worked to move beyond some of the issues stemming from the mortgage crisis. Along with competitors, JPMorgan hashed out deals with federal regulators over claims that its foreclosures practices may have led to wrongful eviction of homeowners. Earlier this month, JPMorgan and other agrees $8.5 billion settlement with the Comptroller of the Currency and the Federal Reserve, which ends a costly and flawed review of loans in foreclosure ordered up by the regulators in 2011. The bank spent roughly $700 million this quarter on costs associated with the review.

Still, the bank is dealing with other cases that could prove costly. The New York attorney general, Eric T. Schneiderman, filed a lawsuit against the bank related to Bear Stearns, the troubled unit the JPMorgan bought in the depths of the financial crisis. In the lawsuit, filed in October, the attorney general claimed JPMorgan defrauded investors who bought securities created from shoddy mortgages.

JPMorgan was also hit with two enforcement actions earlier in this week, the first formal sanctions from federal banking regulators over the bank’s multibillion trading loss. Regulators from the Federal Reserve and the Comptroller of the Currency, identified flaws throughout the bank, citing failures in the bank’s ability to asses how big losses might swell as a result of the complex trades. In addition, regulators found that bank executives did not adequately inform board members about the potential losses.

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Pakistan Supreme Court Orders Arrest of Prime Minister





ISLAMABAD, Pakistan – Pakistan’s Supreme Court ordered the arrest of Prime Minister Raja Pervez Ashraf in a corruption case on Tuesday afternoon, dramatically raising the stakes in a tense standoff between the government and its opponents.




The court order came as an enigmatic preacher turned politician, Muhammad Tahir ul Qadri, addressed thousands of supporters outside Parliament and repeated calls for the government’s ouster. In earlier speeches, he said that a caretaker administration led by technocrats should take its place.


The confluence of the two events stoked growing speculation that Pakistan’s powerful military was quietly supporting moves that would delay general elections that are due to take place this spring, most likely through the imposition of a military-backed caretaker administration.


“Victory, victory, victory. By the grace of God,” said Mr. Qadri at the conclusion of a speech to his supporters, who have vowed not to leave a public square outside Parliament until their demands are satisfied.


It was not certain that the events were linked. Some analysts said that in ordering the prime minister’s arrest, the court, which is led by the independent-minded chief justice Iftikhar Muhammad Chaudhry, was simply taking advantage of anti-government sentiment generated by Mr. Qadri to pursue its longstanding grudge against President Asif Ali Zardari.  


Whatever its motivations, the court’s actions added to the chaos in Pakistan, with the stock market dropping 3 percent after word of the court’s order came down.


In the order issued Tuesday, the Supreme Court ordered the National Accountability Bureau, a government body that investigates graft, to arrest Mr. Ashraf and 15 other senior current or former officials, including a former finance minister and a former finance secretary.


The case relates to longstanding allegations that Mr. Ashraf took millions of dollars in kickbacks as part of a deal to build two electricity plants while serving as minister for water and power between March 2008 and February 2011.


The order comes more than a year after two opposition figures filed a complaint in the Supreme Court against Mr. Ashraf. Three months later, in March 2012, the court ruled that the power plants were illegal, ordered their closure, and instituted proceedings against Mr. Ashraf.


The case has particular political resonance because Pakistan’s energy crisis, which has seen severe electricity rationing across the country, is the source of some of the main complaints against the government.


The information minister, Qamar Zaman Kaira, said the government had not received any official notification of the order to arrest Mr. Ashraf.


Fawad Chaudhry, a senior adviser to the prime minister, said that any such order would be "illegal and unconstitutional."


"Under the law, the court cannot arrest him," he said President Zardari called a meeting of senior advisers at his Karachi residence to discuss the crisis late Tuesday, Mr. Chaudhry added.


Mr. Zardari’s supporters have painted the prosecution as part of a politically-motivated drive by Justice Chaudhry to unseat Mr. Zardari. Mr. Ashraf came to power last June after the Supreme Court forced his predecessor, Yousaf Raza Gilani, to resign from office over another corruption-related case.


Whether there was any link between the court order and Mr. Qadri’s march on Islamabad – billed by the preacher as a “million man march” but in reality far smaller – the timing was certainly striking.


Mr. Qadri stormed onto the political scene in Pakistan after returning from a seven-year stint in Canada, where he also holds citizenship, armed with considerable funding that he has used for an intensive television advertising campaign and large rallies.


In his speech Tuesday, which was peppered with emotional Islamic references, he demanded the immediate resignation of the government and painted the country’s elected politicians as “criminals” who deserved to be prosecuted for corruption.


“There is no Parliament. There is a group of looters, thieves and dacoits!” he said in a  thundering voice, pointing to the building behind him. “Our lawmakers are the lawbreakers.”


In contrast, Mr. Qadri offered fulsome support for the military and the Supreme Court, both of which have been at odds with Mr. Zardari’s government at various points in recent years. “Now only two institutions are there – the judiciary and the armed forces,” he said.


Responding to the allegations that he is secretly supported by the military, Mr. Qadri said he was supported by Allah, the Prophet Muhammad and the 180 million people of Pakistan.


The government’s five-year term of office ends in mid-March. Under the constitution, elections are to take place within the following 60 days.


But Ayaz Amir, an opposition politician, said the crisis could actually benefit the government as it would enable it to play the “victim card.”


The developments raise doubts about the government’s ability to make headway in Pakistan’s efforts to achieve stability as a democracy. Should Mr. Ashraf’s administration complete its term and hold peaceful elections, it would be the first such transfer of power in Pakistan’s history.


But speculation that Mr. Qadri or the court could derail that transition grew steadily as events unfolded on Tuesday.


Theories about a link between the two players and the military are not easy to reconcile. Over the last year, Justice Chaudhry has openly clashed with top generals, as part of his court’s bid to carve out its independence from both civilian and military rulers.


Justice Chaudhry has stressed that his court will not act as a rubber stamp to military rule, as previous courts have, and earlier on Tuesday he reportedly stressed the importance of holding elections by mid-May.


Salman Masood contributed reporting.



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