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: 


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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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