DealBook: Liberty Global in Talks to Buy Virgin Media

6:59 a.m. | Updated

LONDON – Liberty Global, the international cable company owned by the American billionaire John C. Malone, is in discussions to buy the British cable company Virgin Media.

In a brief statement on Tuesday, Virgin Media said it was in talks with Liberty Global, which serves almost 20 million customers worldwide.

“Any such transaction would be subject to regulatory and other conditions,” Virgin Media said in a statement. Spokesmen for both Virgin Media and Liberty Global declined to comment further.

Shares in Virgin Media, which was formed through several mergers of small British cable companies and a cellphone company in the 2000s, rose more than 15 percent in morning trading in London on Tuesday.

The company’s current market capitalization stands at $10.4 billion. Including debt, Virgin Media’s enterprise value is around $19.4 billion, according to data from Thomson Reuters.

To secure a deal, analysts at Espirito Santo said Liberty Global may have to pay as much as $24 billion, though they questioned whether the international cable company could afford to fund the acquisition because of its existing high levels of debt.

The analysts added that it would be difficult for Liberty Global to make costs savings between its current European operations and those of Virgin Media.

“A bid from Liberty would not offer any in-market synergies but would add to the company’s scale on a European basis,” Espirito Santo analysts said in a note to investors on Tuesday.

Virgin Media’s share price has jumped almost 60 percent in the last 12 months, as more consumers sign up for so-called bundled services, including Internet and cellphone contracts.

The cable company, whose primary listing is on Nasdaq, is the second-largest pay-TV provider in Britain after BSkyB, which is partly owned by Rupert Murdoch‘s News Corporation.

The British billionaire Richard Branson, whose Virgin brand is now used for a variety of products and services, including airlines and banks, owns less than 3 percent of Virgin Media.

While the British cable operator has been picking up market share, the company currently has 4.9 million customers, or roughly half the number of subscribers as its larger rival, BskyB, according to filings from the companies.

A potential deal for Virgin Media would put Mr. Malone head-to-head with Mr. Murdoch, his longtime rival.

In 2008, the Liberty Group, which has operations in 13 countries, completed its purchase of a controlling stake in DirecTV, the satellite television provider, from News Corporation in a cash-and-equity deal worth roughly $11 billion.

The deal came after Mr. Malone’s purchase of a 16 percent stake in News Corporation, which he then traded for the satellite television operator, a number of regional sports networks and around $550 million cash.

Liberty Global has been expanding its presence in Europe and has operations from Ireland to Romania, though it failed last month in its bid to acquire the Belgian telecommunications company Telenet Group for $2.7 billion. Liberty Global currently owns a 58 percent stake in Telenet.

In August, Liberty Media, the media conglomerate also controlled by Mr. Malone, agreed to buy a stake in Barnes & Noble for $204 million, but declined to buy the bookseller outright.

The move disappointed some investors after Liberty had earlier offered to buy a 70 percent stake of Barnes & Noble for $17 a share if its chairman, Leonard S. Riggio, who owns around 30 percent of the company, agreed to the deal.

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Bolshoi Ballet Director Says He Knows Who Attacked Him

MOSCOW – Bolshoi Ballet artistic director Sergei Filin, who was severely burned by an acid attack on Jan. 17, said he believes he may have been targeted by a group of people who hoped to replace the theater’s current leadership, and who had previously attacked another top executive at the ballet, prompting him to leave his post in 2011.

Mr. Filin, who left Russia for a clinic in Germany on Monday for a rehabilitation that may last for months, made the comments in a telephone interview with the New York Times.He has said he knows who is behind the attack, but that he would not offer further details for fear of interfering with the investigation. A police spokesman told Interfax on Monday that the names of suspects in the attack would be made public only after they have been detained and indicted.

Mr. Filin said he stepped into a pre-existing power struggle in March of 2011, when he accepted the position of artistic director at the Bolshoi Ballet, which is the world’s largest ballet company. That same month, Gennady Yanin – who occupied the more managerial post of the company’s director – filed for voluntary leave after erotic photographs featuring a man resembling him were published on the Internet.

“From the first day of work, when I arrived, I immediately felt that those things that happened with Gennady Yanin” would continue, Mr. Filin said. “I felt that I became a continuer, the next participant in this story. As one might say, ‘You’ll be next.’”

“I am practically sure it is exactly the same story, and I think it is not one person – but I don’t want to, and cannot, talk about this now because there is a serious investigation,” he said. “I think it is a group of people who have their own views and ideas regarding the Bolshoi Theater.”

Asked if members of the group would like to run the theater, he said, “I am sure that is the case.”

No one was ever publicly accused of publishing the photographs of Mr. Yanin, who was widely considered a candidate to temporarily fill the powerful position of artistic director while the Bolshoi negotiated a contract with a permanent replacement. Mr. Yanin resigned swiftly, and never gave a public account of the incident, which some journalists dubbed “Pornogate.”

“It was clear that it was someone who did not want him to become artistic director, unfortunately,” said Tatyana Kuznetsova, who covers ballet for Kommersant, a daily newspaper. “But who? That is unknown.”

Shortly thereafter, the Bolshoi announced the appointment of Mr. Filin as artistic director.

He had not been the first choice for the job, but seemed uniquely capable of managing tension between the old and the new at the ballet: A Bolshoi dancer and protégé of its iconic director, Yuri Grigorovich, he left for Moscow’s second-tier ballet company in 2008 and established himself as an innovator, introducing modern European choreographers. Threats began soon after he took the job in 2011, his associates have said, and grew more serious toward the end of 2012, when his personal email was hacked and correspondence published online.

Katerina Novikova, the Bolshoi Theater’s spokeswoman, said she thought Internet-based attacks on Mr. Filin and Mr. Yanin may have been related, but would not speculate on whether the same perpetrators had planned the acid attack.

“It might be all in one line,” she said. “Or it might be some crazy person.”

Mr. Filin, 42, said he met late last week with the team of investigators assigned to the case, and said they had compiled a voluminous case file and he was “very happy with the work they have done.” Mr. Filin said they had questioned a large number of Bolshoi employees and reported that only four people had spoken critically of Mr. Filin or his work. He confirmed that detectives had been given a list of three or four names when they began work.

He also said the detectives were increasingly bewitched by the world of ballet.

“They told us, ‘we never loved the ballet – we never even knew which direction to approach it from,’” Mr. Filin said. “Now they have become not just ballet fans, but they said, ‘We have a big request: As soon as you get back on your feet, please make it possible for us to go to the Bolshoi as often as possible, because we have heard such a huge number of positive and good comments about you and your work.”

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Estonian pleads guilty in U.S. court to Internet advertising scam

NEW YORK (Reuters) – An Estonian man pleaded guilty on Friday in U.S. federal court for his role in a massive Internet scam that targeted well-known websites such as iTunes, Netflix and The Wall Street Journal.

The scheme infected at least four million computers in more than 100 countries, including 500,000 in the United States, with malicious software, or malware, according to the indictment. It included a large number of computers at data centers located in New York, federal prosecutors said.

Valeri Aleksejev, 32, was the first of six Estonians and one Russian indicted in 2011 to enter a plea. They were indicted on five charges each of wire and computer intrusion. One of the defendants, Vladimir Tsastsin, was also charged with 22 counts of money laundering.

In U.S. District Court in Manhattan on Friday, Aleksejev pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit computer intrusion. He faces up to 25 years in prison, deportation and the forfeiture of $ 7 million.

The scam had several components, including a “click-hijacking fraud” in which the malware re-routed searches by users on infected computers to sites designated by the defendants, prosecutors said in the indictment. Users of infected computers trying to access Apple Inc’s iTunes website or Netflix Inc‘s movie website, for example, instead ended up at websites of unaffiliated businesses, according to the indictment.

Another component of the scam replaced legitimate advertisements on websites operated by News Corp’s The Wall Street Journal, Amazon.com Inc and others with advertisements that triggered payments for the defendants, prosecutors said.

The defendants reaped at least $ 14 million from the fraud, prosecutors said. However, Aleksejev’s lawyer, William Stampur, said in court on Friday that Aleksejev has no assets.

Estonian police arrested Aleksejev and the other Estonians in November 2011. One other Estonian, Anton Ivanov, has been extradited, and the extradition of the other four is pending, according to the U.S. Attorney’s office in Manhattan. The Russian, Andrey Taame, remains at large, according to the U.S. Attorney’s office.

Aleksejev told Magistrate Judge James Francis he assisted in blocking anti-virus software updates on infected computers. Francis asked Aleksejev if he knew what he was doing was illegal.

“I thought it was wrong,” Aleksejev said in broken English after a long pause. “But of course I didn’t know all the laws in the U.S.”

Francis set a tentative sentencing date of May 31 for Aleksejev.

The case is USA v. Tsastsin et al, U.S. District Court in Manhattan, No. 11-00878.

(Reporting by Bernard Vaughan; Editing by Dan Grebler)

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Beyonce electrifies at Super Bowl halftime show

If naysayers still doubted Beyonce's singing talents — even after her national anthem performance this week at a press conference — the singer proved she is an exceptional performer at the Super Bowl halftime show.

Beyonce opened and closed her set belting songs, and in between she danced hard and heavy — and better than most contemporary pop stars.

She set a serious tone as she emerged onstage in all black, singing lines from her R&B hit "Love on Top." The stage was dark as fire and lights burst from the sides. Then she went into her hit "Crazy In Love," bringing some feminine spirit to the Superdome as she and her background dancers did the singer's signature booty-shaking dance. Beyonce ripped off part of her shirt and skirt. She even blew a kiss. She was ready to rock, and she did so like a pro.

Her confidence — and voice — grew as she worked the stage with and without her Destiny's Child band mates during her 13-minute set, which comes days after she admitted she sang to a pre-recorded track at President Barack Obama's inauguration less than two weeks ago.

Beyonce proved not only that she can sing, but that she can also entertain on a stage as big as the Super Bowl's. The 31-year-old was far better than Madonna, who sang to a backing track last year, and miles ahead of the Black Eyed Peas' disastrous set in 2011.

Beyonce was best when she finished her set with "Halo." She asked the crowd to put their hands toward her as she sang the slow groove on bended knee — and that's when she the performance hit its high note.

"Thank you for this moment," she told the crowd. "God bless y'all."

Her background singers helped out as Beyonce danced around the stage throughout most of her performance. There was a backing track to help fill in when Beyonce wasn't singing — and there were long stretches when she let it play as she performed elaborate dance moves.

She had a swarm of background dancers and band members spread throughout the stage, along with videotaped images of herself dancing that may have unintentionally played on the live-or-taped question. And the crowd got bigger when she was joined by her Destiny's Child band mates.

Kelly Rowland and Michelle Williams popped up from below the stage to sing "Bootylicious." They were in similar outfits, singing and dancing closely as they harmonized. But Rowland and Williams were barely heard when the group sang "Independent Woman," as their voices faded into the background.

They also joined in for some of "Single Ladies (Put a Ring On It)," where Beyonce's voice grew stronger. That song featured Beyonce's skilled choreography, as did "End of Time" and "Baby Boy," which also showcased Beyonce's all-female band, balancing out the testosterone levels on the football field.

Before the game, Alicia Keys performed a lounge-y, piano-tinged version of the national anthem that her publicist assured was live. The Grammy-winning singer played the piano as she sang "The Star Spangled Banner" in a long red dress with her eyes shut.

She followed Jennifer Hudson, who sang "America the Beautiful" with the 26-member Sandy Hook Elementary School chorus. It was an emotional performance that had some players on the sideline on the verge of tears. Hudson also sang live, her publicist said.

The students wore green ribbons on their shirts in honor of the 20 first-graders and six adults who were killed in a Dec. 14 shooting rampage at the school in Newton, Conn.

The students began the song softly before Hudson, whose mother, brother and 7-year-old nephew were shot to death five years ago, jumped in with her gospel-flavored vocals. She stood still in black and white as the students moved to the left and right, singing background.

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Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin

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Medicines Co. Licenses Rights to Cholesterol Drug

The drug, known as ALN-PCS, inhibits a protein in the body known as PCSK9. Such drugs might one day be used to treat millions of people who do not achieve sufficient cholesterol-lowering from commonly used statins, such as Lipitor.

The Medicines Company will pay $25 million initially and as much as $180 million later if certain development and sales goals are met, under the deal expected to be formally announced Monday. It will also pay Alnylam, which is based in Cambridge, Mass., double-digit royalties on global sales.

That is small payment for a drug with presumably a huge potential market, probably reflecting that Alnylam is still in the first of three phases of clinical trials, well behind some far bigger competitors.

The team of Sanofi and Regeneron Pharmaceuticals is already entering the third and final stage of trials with their PCSK9 inhibitor, as is Amgen. Pfizer and Roche are in midstage trials.

ALN-PCS is different from the other drugs. It uses a gene-silencing mechanism called RNA interference, aimed at shutting off production of the PCSK9 protein. The other drugs are proteins called monoclonal antibodies that inhibit the action of PCSK9 after it has been formed.

Alnylam and the Medicines Company hope that turning off the faucet, as it were, will be more efficient than mopping the floor, allowing their drug to be given less frequently and in smaller amounts.

But that has yet to be proved. No drug using RNA interference has reached the market.

The Medicines Company, based in Parsippany, N.J., generates almost all of its revenue from one product — Angiomax, an anticlotting drug used when patients receive stents to open clogged arteries.

Dr. Clive A. Meanwell, chief executive of the company, said that PCSK9 inhibitors are likely to be used at first mainly by patients with severe lipid problems under the care of interventional cardiologists, the same doctors who use Angiomax. “It really is quite adjacent to what we do,” he said.

The Medicines Company licensed Angiomax from Biogen Idec, where the drug was invented and initially developed under a team led by Dr. John M. Maraganore, who is now the chief executive of Alnylam.

“It’s a bit like getting the band back together,” Dr. Maraganore said.

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Euro Watch: Producer Prices Fall in Euro Zone

BRUSSELS — Euro zone factory prices fell for the second month in a row in December, mirroring the trend in consumer inflation and leaving room for a possible European Central Bank interest rate cut to revive the weak economy.

Prices at factory gates in the 17 countries using the euro fell 0.2 percent in December from November, the E.U.’s statistics office, Eurostat, said on Monday.

Prices fell by the same margin in November. Compared to the same month a year ago, the producer price index was up 2.1 percent in December. Annual consumer inflation was 2.0 percent in January, close to the E.C.B.’s target of below 2 percent.

The E.C.B.’s governing council kept rates at 0.75 percent at its January meeting and will discuss rate policy again on Thursday. The decision to keep policy on hold last month was unanimous, but economists are divided over the E.C.B.’s future moves.

“The E.C.B. is unlikely to change policy stance” in February, analysts at Citigroup wrote in a note. “But we expect the tone of the press statement to turn more cautious on the economic outlook and more relaxed on the outlook for inflation,” the bank said, referring to the E.C.B.’s explanation for its decision on rates delivered to the media.

Both consumer and factory inflation were driven up last year by high world oil prices and tensions between Iran and the West over Tehran’s nuclear ambitions, which further pushed up the cost of energy.

Lower world oil prices have since helped cut the cost of energy for industry and households in the euro zone. Brent crude came down from $120 a barrel in August to trade around $110 a barrel towards the end of 2012.

Brent crude was around $116 a barrel on Monday, on signs of improving economic growth in the United States and China.

Last year’s cooler prices were reflected in the euro zone’s producer prices in December. Energy prices dropped 0.8 percent, the third straight month of decline, and by the same margin as in November.

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Chris Kyle, ‘American Sniper’ Author, Reported Killed

GLEN ROSE, Texas — A former Navy SEAL and the author of “American Sniper,” Chris Kyle, was shot and killed along with another man Saturday at a Texas gun range, a county sheriff has told the Texas news media.

The sheriff of Erath County, Tommy Bryant, said Mr. Kyle, 38, and a second man were found dead at Rough Creek Lodge’s shooting range west of Glen Rose, according to The Fort Worth Star-Telegram and The Stephenville Empire-Tribune. Glen Rose is about 50 miles southwest of Fort Worth.

Kyle wrote the best-selling book, “American Sniper: The Autobiography of the Most Lethal Sniper in U.S. Military History,” detailing his 150-plus kills of insurgents from 1999 to 2009.

Mr. Bryant did not immediately return phone calls to The Associated Press seeking comment. A woman who answered the phone at the lodge where the shooting occurred declined to comment and referred calls to the sheriff’s office.

Investigators did not immediately release the name of the second victim, according to the newspapers.

Witnesses told sheriff’s investigators that a gunman opened fire on the men around 3:30 p.m. Saturday, then fled in a pickup truck belonging to one of the victims, according to The Star-Telegram. The newspapers said a 25-year-old man was later taken into custody in Lancaster, southeast of Dallas, and that charges were expected.

Lancaster police did not immediately return calls for comment.

The motive for the shooting was unclear.

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Timberlake gives Super Bowl-eve comeback concert

NEW ORLEANS (AP) — One of the most anticipated musical moments of the year so far happened in New Orleans and was connected to the Super Bowl — but it had nothing to do with Beyonce.

Instead, it was another superstar, Justin Timberlake, who had the town buzzing as he gave his first performance in nearly five years — a sizzling, hour-long concert that featured the nattily dressed entertainer with a more than 10-piece band and guest appearances by Timbaland and Jay-Z, who's prominently featured on Timberlake's comeback single, "Suit and Tie."

Timberlake hadn't released new music in years, preferring to concentrate on a blossoming acting career that included star turns in movies such as "Friends With Benefits" and the Oscar-nominated "The Social Network."

But when Timberlake took to the stage on Saturday night for DirecTV's Super Bowl-eve bash, it seemed as if he had never left. Timberlake, dressed in a black tux, betrayed no nerves or rust as he appeared with the backing band dubbed "JT & the Tennessee Kids" and dove into the night's first song, "Like I Love You," his signature falsetto in top form.

There was a bit of irony the setting of Timberlake's comeback concert because he is identified with the most infamous Super Bowl performance of them all, 2004's wardrobe malfunction featuring Janet Jackson. He spoke a little about Sunday's big game as he baited Baltimore Ravens fans against San Francisco 49ers followers.

Other than that, had little else to say, letting his music do all the talking. For the most part, his musical statement consisted a rundown of his greatest hits, including "Senorita," ''Cry Me A River," ''Summer Love" and "My Love" (the latter of which included a verse of Jay-Z and Kanye's "... In Paris").

But he did offer at least two new songs that seemed as if they could have been inspired by his recent marriage to Jessica Biel. Both were slow jams: One was called "Push Your Love Girl," while another had the refrain: "I'm in love with that girl ... don't be mad at me."

Timberlake also drew from others' music, performing a cover of INXS' "What You Need" and delivering a spot-on rendition of the Jacksons' "Shake Your Body Down To the Ground," complete with the Jacksons' trademark choreography.

The standing-room crowd — which included Paul McCartney, Sofia Vergara, John Legend and New England Patriots owner Bob Kraft — was dancing most of the night, and by the time Jay-Z came on to deliver his verse for "Suit and Tie," the party was in full throttle.

Timberlake ended the evening with "SexyBack," bringing his sexy —and more importantly his music — back for the public to enjoy.

Timberlake's comeback will reach an even larger audience next Sunday with his performance on the Grammys. His third album, "The 20/20 Experience," is out next month.

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Online:

http//www.justintimberlake.com

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Concerns About A.D.H.D. Practices and Amphetamine Addiction

Before his addiction, Richard Fee was a popular college class president and aspiring medical student. "You keep giving Adderall to my son, you're going to kill him," said Rick Fee, Richard's father, to one of his son's doctors.

VIRGINIA BEACH — Every morning on her way to work, Kathy Fee holds her breath as she drives past the squat brick building that houses Dominion Psychiatric Associates.

Andrea Mohin/The New York Times

MENTAL HEALTH CLINIC Dominion Psychiatric Associates in Virginia Beach, where Richard Fee was treated by Dr. Waldo M. Ellison. After observing Richard and hearing his complaints about concentration, Dr. Ellison diagnosed attention deficit hyperactivity disorder and prescribed the stimulant Adderall.

It was there that her son, Richard, visited a doctor and received prescriptions for Adderall, an amphetamine-based medication for attention deficit hyperactivity disorder. It was in the parking lot that she insisted to Richard that he did not have A.D.H.D., not as a child and not now as a 24-year-old college graduate, and that he was getting dangerously addicted to the medication. It was inside the building that her husband, Rick, implored Richard’s doctor to stop prescribing him Adderall, warning, “You’re going to kill him.”

It was where, after becoming violently delusional and spending a week in a psychiatric hospital in 2011, Richard met with his doctor and received prescriptions for 90 more days of Adderall. He hanged himself in his bedroom closet two weeks after they expired.

The story of Richard Fee, an athletic, personable college class president and aspiring medical student, highlights widespread failings in the system through which five million Americans take medication for A.D.H.D., doctors and other experts said.

Medications like Adderall can markedly improve the lives of children and others with the disorder. But the tunnel-like focus the medicines provide has led growing numbers of teenagers and young adults to fake symptoms to obtain steady prescriptions for highly addictive medications that carry serious psychological dangers. These efforts are facilitated by a segment of doctors who skip established diagnostic procedures, renew prescriptions reflexively and spend too little time with patients to accurately monitor side effects.

Richard Fee’s experience included it all. Conversations with friends and family members and a review of detailed medical records depict an intelligent and articulate young man lying to doctor after doctor, physicians issuing hasty diagnoses, and psychiatrists continuing to prescribe medication — even increasing dosages — despite evidence of his growing addiction and psychiatric breakdown.

Very few people who misuse stimulants devolve into psychotic or suicidal addicts. But even one of Richard’s own physicians, Dr. Charles Parker, characterized his case as a virtual textbook for ways that A.D.H.D. practices can fail patients, particularly young adults. “We have a significant travesty being done in this country with how the diagnosis is being made and the meds are being administered,” said Dr. Parker, a psychiatrist in Virginia Beach. “I think it’s an abnegation of trust. The public needs to say this is totally unacceptable and walk out.”

Young adults are by far the fastest-growing segment of people taking A.D.H.D medications. Nearly 14 million monthly prescriptions for the condition were written for Americans ages 20 to 39 in 2011, two and a half times the 5.6 million just four years before, according to the data company I.M.S. Health. While this rise is generally attributed to the maturing of adolescents who have A.D.H.D. into young adults — combined with a greater recognition of adult A.D.H.D. in general — many experts caution that savvy college graduates, freed of parental oversight, can legally and easily obtain stimulant prescriptions from obliging doctors.

“Any step along the way, someone could have helped him — they were just handing out drugs,” said Richard’s father. Emphasizing that he had no intention of bringing legal action against any of the doctors involved, Mr. Fee said: “People have to know that kids are out there getting these drugs and getting addicted to them. And doctors are helping them do it.”

“...when he was in elementary school he fidgeted, daydreamed and got A’s. he has been an A-B student until mid college when he became scattered and he wandered while reading He never had to study. Presently without medication, his mind thinks most of the time, he procrastinated, he multitasks not finishing in a timely manner.”

Dr. Waldo M. Ellison

Richard Fee initial evaluation

Feb. 5, 2010

Richard began acting strangely soon after moving back home in late 2009, his parents said. He stayed up for days at a time, went from gregarious to grumpy and back, and scrawled compulsively in notebooks. His father, while trying to add Richard to his health insurance policy, learned that he was taking Vyvanse for A.D.H.D.

Richard explained to him that he had been having trouble concentrating while studying for medical school entrance exams the previous year and that he had seen a doctor and received a diagnosis. His father reacted with surprise. Richard had never shown any A.D.H.D. symptoms his entire life, from nursery school through high school, when he was awarded a full academic scholarship to Greensboro College in North Carolina. Mr. Fee also expressed concerns about the safety of his son’s taking daily amphetamines for a condition he might not have.

“The doctor wouldn’t give me anything that’s bad for me,” Mr. Fee recalled his son saying that day. “I’m not buying it on the street corner.”

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Iceland, Prosecutor of Bankers, Sees Meager Returns

Ilvy Njiokiktjien for The New York Times

"Greed is not a crime. But the question is: where does greed lead?" said Olafur Hauksson, a special prosecutor in Reykjavik.

REYKJAVIK, Iceland — As chief of police in a tiny fishing town for 11 years, Olafur Hauksson developed what he thought was a basic understanding of the criminal mind. The typical lawbreaker, he said, recalling his many encounters with small-time criminals, “clearly knows that he crossed the line” and generally sees “the difference between right and wrong.”

Today, the burly, 48-year-old former policeman is struggling with a very different sort of suspect. Reassigned to Reykjavik, the Icelandic capital, to lead what has become one of the world’s most sweeping investigation into the bankers whose actions contributed to the global financial crisis in 2008, Mr. Hauksson now faces suspects who “are not aware of when they crossed the line” and “defend their actions every step of the way.”

With the global economy still struggling to recover from the financial maelstrom five years ago, governments around the world have been criticized for largely failing to punish the bankers who were responsible for the calamity. But even here in Iceland, a country of just 320,000 that has gone after financiers with far more vigor than the United States and other countries hit by the crisis, obtaining criminal convictions has proved devilishly difficult.

Public hostility toward bankers is so strong in Iceland that “it is easier to say you are dealing drugs than to say you’re a banker,” said Thorvaldur Sigurjonsson, the former head of trading for Kaupthing, a once high-flying bank that crumbled. He has been called in for questioning by Mr. Hauksson’s office but has not been charged with any wrongdoing.

Yet, in the four years since the Icelandic Parliament passed a law ordering the appointment of an unnamed special prosecutor to investigate those blamed for the country’s spectacular meltdown in 2008, only a handful of bankers have been convicted.

Ministers in a left-leaning coalition government elected after the crash agree that the wheels of justice have ground slowly, but they call for patience, explaining that the process must follow the law, not vengeful passions.

“We are not going after people just to satisfy public anger,” said Steingrimur J. Sigfusson, Iceland’s minister of industry, a former finance minister and leader of the Left-Green Movement that is part of the governing coalition.

Hordur Torfa, a popular singer-songwriter who helped organize protests that forced the previous conservative government to resign, acknowledged that “people are getting impatient” but said they needed to accept that “this is not the French Revolution. I don’t believe in taking bankers out and hanging them or shooting them.”

Others are less patient. “The whole process is far too slow,” said Thorarinn Einarsson, a left-wing activist. “It only shows that ‘banksters’ can get away with doing whatever they want.”

Mr. Hauksson, the special prosecutor, said he was frustrated by the slow pace but thought it vital that his office scrupulously follow legal procedure. “Revenge is not something we want as our main driver in this process. Our work must be proper today and be seen as proper in the future,” he said.

Part of the difficulty in prosecuting bankers, he said, is that the law is often unclear on what constitutes a criminal offense in high finance. “Greed is not a crime,” he noted. “But the question is: where does greed lead?”

Mr. Hauksson said it was often easy to show that bankers violated their own internal rules for lending and other activities, but “as in all cases involving theft or fraud, the most difficult thing is proving intent.”

And there are the bankers themselves. Those who have been brought in for questioning often bristle at being asked to account for their actions. “They are not used to being questioned. These people are not used to finding themselves in this situation,” Mr. Hauksson said. They also hire expensive lawyers.

The special prosecutor’s office initially had only five staff members but now has more than 100 investigators, lawyers and financial experts, and it has relocated to a big new office. It has opened about 100 cases, with more than 120 people now under investigation for possible crimes relating to an Icelandic financial sector that grew so big it dwarfed the rest of the economy.

To help ease Mr. Hauksson’s task, legislators amended the law to allow investigators easy access to confidential bank information, something that previously required a court order.

Parliament also voted to put the country’s prime minister at the time of the banking debacle on trial for negligence before a special tribunal. (A proposal to try his cabinet failed.) Mr. Hauksson was not involved in the case against the former leader, Geir H. Haarde, who last year was found guilty of failing to keep ministers properly informed about the 2008 crisis but was acquitted on more serious charges that could have resulted in a prison sentence.

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