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Iran invites nations to tour nuclear sites identify the invited countries at a later time, but it appears the “5+1” were invited as a group and not as individual nations. A diplomat familiar with the invitation said the United States — the greatest critic of Iran’s nuclear ambitions — was not invited. Mehmanparast said the invitation was a sign of Iran’s “good will” and greater transparency about its nuclear program. Iran insists its nuclear program is designed to generate power, but the West suspects that’s just a cover to build bombs. On Monday, the Associated Press reported the invitation, citing a letter from a senior Iranian envoy that suggested the weekend of Jan. 15 and 16 for the tour.

BY NASSER KARIMI Associated Press


TEHRAN, Iran — The Tehran government said Tuesday that it has invited world powers and its allies in the Arab and developing world to tour Iranian nuclear sites before a high-profile meeting late January on its disputed nuclear program. Iranian Foreign Ministry spokesman Ramin Mehmanparast said the invitation went to “the EU, the nonaligned movement and representatives from 5+1 countries.” The “5+1” countries are the six world powers negotiating with Iran over its nuclear program: the five permanent U.N. Security Council members — the United States, Britain, France, Russia and China — plus Germany. Mehmanparast said Iran would • TURN TO IRAN, 2A

No happy ending for Tolstoy Excommunicated by the church, Russia’s icon is left out in the cold BY ELLEN BARRY AND SOPHIA KISHKOVSKY New York Times Service

MOSCOW — A couple of months ago one of Russia’s elder statesmen set out on a paradoxical mission: to rehabilitate one of the most beloved figures in Russian history, Tolstoy. This would have seemed unnecessary in 2010, a century after the author’s death. But last year Russians wrestled over Tolstoy much as they did when he was alive. Intellectuals accused the Russian Orthodox Church of blacklisting a national hero. The church accused Tolstoy of helping speed the rise of the Bolsheviks. The melodrama of his last days, when he fled his family estate to take up the life of an ascetic, was revived in all its pulpy detail, like some kind of earlystage reality television. And in a country that rarely passes up a public celebration, the anniversary of his death, on Nov. 20, 1910, was not commemorated by noisy galas or government-financed cinematic blockbusters. Officially speaking, it was barely noted at all.


TRIUMPH OF JUSTICE: Cornelius Dupree Jr., center, celebrates with his lawyer Nina Morrison, left, and attorney Barry Scheck in Dallas on Tuesday. Dupree served 30 years for a 1979 rape and robbery before being exonerated by DNA evidence.

DNA exonerates man after 30 years in jail MCT

cate theme,” Stepashin asked forgiveness on behalf of Tolstoy, who was excommunicated 110 years ago. The impulse had swelled up during a lonely visit to an unmarked mound of earth where Tolstoy is buried.

With this in mind Sergei V. Stepashin, a former prime minister here, sat down to write to the head of the Russian Orthodox Church, which has become an arbiter of politics and culture. In painstakingly diplomatic language, acknowledging “the particular sensitivity” of “this deli-


Ciudad Juarez residents flee Mexico’s ‘dying city’ BY WILL WEISSERT Associated Press

“They asked, ‘Where to?’ ” he recalled. “I said, ‘Anywhere.’ ” No one knows how many residents have left the city of 1.4 million since a turf battle over border drug corridors unleashed an unprecedented wave of cartel murders and mayhem. Business leaders, citing government tax information, say the exodus could number 110,000, while a municipal group and local university say it’s closer to 230,000. Estimates by social organizations are even higher. The tally is especially hard to track because Juarez is by nature transitory, attracting thousands of workers to high-turnover jobs in manufacturing, or who use the city across the Rio Grande from El Paso as a way station before they slip north illegally. But its toll is everywhere you look. Barely a week goes by when

CIUDAD JUAREZ, Mexico — The mother of four raised a finger, pointing out abandoned and stripped concrete homes and counting how many families on her street alone have fled the Western Hemisphere’s deadliest city. “One, two, three, four, here, and two more back there on the next block,” said Laura Longoria. The 36-year-old ran a convenience store in her working-class neighborhood in south Juarez until the owners closed shop, fed up with the tribute they were forced to pay to drug gangsters to stay in business. Her family vowed to stick it out. But then came the kidnapping of a teen from a stationery shop across the street. After that, Longoria’s husband, Enrique Mondragon, requested a transfer from the bus • TURN TO MEXICO, 4A company where he works.


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overturned his conviction. Nationally, only two others exonerated by DNA evidence spent more time in prison, according to the Innocence Project, a New York legal center that specializes in wrongful conviction cases and represented Dupree. James Bain was wrongly imprisoned for 35 years in Florida, and Lawrence McKinney spent more than 31 years in a Tennessee prison. Dupree was sentenced to 75 years in prison in 1980 for the rape and robbery of a 26-year-old Dallas woman a year earlier. He was released in July on mandatory

BY JEFF CARLTON Associated Press

DESCENDANTS: Leo Tolstoy’s descendants Vladimir Tolstoy, center, Catharina Tolstoy, left, and Anastasia Tolstoy arrive at the premiere of The Last Station in Berlin. The film about the literary icon was largely ignored by Russia’s government.

DALLAS — A Texas man declared innocent Tuesday after 30 years in prison could have cut short his prison stint twice and made parole — if only he would admit he was a sex offender. But Cornelius Dupree Jr. refused to do so, doggedly maintaining his innocence in a 1979 rape and robbery, in the process serving more time for a crime he didn’t commit than any other Texas inmate exonerated by DNA evidence. “Whatever your truth is, you have to stick with it,” Dupree, 51, said Tuesday, after a Dallas judge • TURN TO DNA, 2A

Familiar challenges confront Brown BY ADAM NAGOURNEY New York Times Service

SACRAMENTO — Jerry Brown has begun his return engagement as governor of California, using his inaugural address to call for an end to partisan battling that he said was paralyzing the state and to promise, in what is presumably the last chapter of his public life, to lead

California out of one of the toughest budget crises of its history. “Choices have to be made, and difficult decisions taken,” Brown declared Monday to an audience that included two former governors and hundreds of state legislators. “At this stage of my life, I have not come here to embrace delay and denial.”


SACRED OATH: Jerry Brown is sworn in Monday as California’s governor with his wife Anne Gust Brown, center, beside him.


At times jocular, at times earnest, Brown noted — indeed celebrated — his longevity in California politics, a depth of experience that in no small part accounted for his victory in November as voters in so much of the rest of the country were turning to outsiders. At 72, Brown is returning for a third term as governor, a position also held by his father, offering a West Coast echo of what took place in Albany, N.Y., on Sunday with the swearing-in of Andrew M. Cuomo as governor of New York. “For me, this day is also special because I get to follow in my father’s footsteps once again, and, 36 years after my first inauguration as governor, even follow in my own,” Brown said. In contrast to his first inaugural speech — where he called for a 7 percent cut in the size of his office staff — Brown did not offer many specifics for how he intended to deal with a state budget • TURN TO CALIFORNIA, 2A



NEWS XTRA................ 3A THE AMERICAS.......... 4A OPINION....................... 7A COMICS & PUZZLES.. 6B

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California’s new governor faces familiar challenges • CALIFORNIA, FROM 1A

shortfall that is now projected at $28.5 billion over 18 months. But he has made clear that his solution, in a budget due Jan. 10, will call for deep cuts in state spending, and his aides have said it is likely to also include a request that voters extend tax surcharges scheduled to expire this year. More than that, Brown — who has had a history of being something of a political iconoclast and who has always been drawn to populist themes and language — offered a clear rebuke to political leaders from both parties who have been enmeshed in what have, at times, seemed interminable and irresolvable political battles. This year, the Legislature adopted a budget 100 days late, setting a record. “In the face of huge budget deficits year after year and the worst credit rating among the 50 states, our two political parties can’t come close to agreeing on the right path forward,” the new governor said, as the lawmakers in his audience sat in still silence. “They remain in their respective comfort zones, rehearsing and rehashing old political positions. “Perhaps this is why the public holds the state government in low esteem,”‘ he said, adding, “Without the trust of the people, politics degenerates into mere spectacle and democracy declines, leaving demagoguery and cynicism to fill the void.” Brown looks far different from 36 years ago — what hair he has left has turned gray, as his audience was reminded with a slide show that included pictures from his first round as governor — and he is moving at a slightly slower pace. And many of the people who were here for his first inaugural speech are gone, including his father, Edmund Brown Sr., who died in 1996. The crowd Monday included two other former governors — Gray Davis, a Democrat, and Arnold Schwarzenegger, a Republican, to whom Brown paid a particularly warm tribute. (Schwarzenegger declined to endorse the Republican nominee for governor, Meg Whitman, in what was widely seen here as a tacit endorsement of Brown.) But there were some striking similarities between Brown’s two inaugurations. Then, as now, California was

coming out of a tough recession. One of the main themes of Brown’s first speech was how to deal with joblessness. The unemployment rate in January 1975 was 9.4 percent; it is now 12.4 percent. In 1975, he was succeeding a Republican governor who was a former actor — Ronald Reagan; this time, it was Schwarzenegger, also a former actor. He also presented himself at that time as fiscally conservative and prepared to make cuts in state spending, as he did to a certain extent Monday. That said, Brown spoke for 16 minutes Monday — far longer than the seven minutes at his first inaugural address. And as grave as things might seem fiscally, he appeared in good humor. At the swearingin, when the chief justice of the California Supreme Court, Tani Cantil-Sakauye, asked him to attest that he was taking the position without mental reservation, Brown paused and the audience laughed. “Really, no mental reservation,” he said. Brown has kept a decidedly low profile since his election, making only two significant public appearances and only two appointments. He is now moving into a period where he is to begin spelling out some of those painful choices he has talked about. On this day, at least, Brown seemed intent on not making any enemies, promising to impose tough cuts without detailing exactly what may lay ahead, well aware that cuts in programs, or proposed tax increases, would threaten to squander whatever support he enjoyed. For example, for all the talk of budget tightening, he said the state needed to do something to take care of public schools that have been battered by years of cuts, a deep concern of Californians. Yet if there was one dominant theme, it was of a child of California returning to the job he once had with no ambition beyond another term in Sacramento. Or two more terms. At one point, he introduced his aunt, Connie Carlson. He told his audience she was 99 and waited for the applause to subside. “By the way, those of you hankering after my job?” he said. “It may be awhile. Relax.”



DNA exonerates Texan man • DNA, FROM 1A

supervision, and lived under house arrest until October. About a week after his release, DNA test results came back proving his innocence in the sexual assault. A day after his release, Dupree married his fiancee, Selma. The couple met two decades ago while he was in prison. His exoneration hearing was delayed until Tuesday while authorities retested the DNA and made sure it was a match to the victim. Dallas County District Attorney Craig Watkins supported Dupree’s innocence claim. Dupree stood through most of the short hearing, until state district Judge Don Adams told him, “You’re free to go.” One of Dupree’s lawyers, Innocence Project codirector Barry Scheck, called it “a glorious day.” “It’s a joy to be free again,” Dupree said. This latest wait was nothing for Dupree, who was up for parole as recently as 2004. He was set to be released and thought he was going home, until he learned he first would have to attend a sex offender treatment program.

Those in the program had to go through what is known as the “four R’s.” They are recognition, remorse, restitution and resolution, said Jim Shoemaker, who served two years with Dupree in the Boyd Unit south of Dallas. “He couldn’t get past the first part,” said Shoemaker, who drove up from Houston to attend Dupree’s hearing. Shoemaker said he spent years talking to Dupree in the prison recreation yard, and always believed his innocence. “I got a lot of flak from the guys on the block,” Shoemaker said. “But I always believed him. He has a quiet, peaceful demeanor.” Under Texas compensation laws for the wrongly imprisoned, Dupree is eligible for $80,000 for each year he was behind bars, plus a lifetime annuity. He could receive $2.4 million in a lump sum that is not subject to federal income tax. The compensation law, the United States’ most generous, was passed in 2009 after dozens of wrongly convicted men were released. Texas has freed 41 wrongly convicted inmates through DNA since 2001 — more than any other state.

Dallas County’s record of DNA exonerations — Dupree is No. 21 — is unmatched nationally because the county crime lab maintains biological evidence even decades after a conviction, leaving samples available to test. In addition, Watkins, the district attorney, has cooperated with innocence groups in reviewing hundreds of requests by inmates for DNA testing. Watkins, the first black district attorney in Texas history, has also pointed to what he calls “a convict-atall-costs mentality” that he says permeated his office before he arrived in 2007. At least a dozen other exonerated former inmates from the Dallas area who collectively served more than 100 years in prison upheld a local tradition by attending the hearing and welcoming the newest member of their unfortunate fraternity. One of them, James Giles, presented Dupree with a $100 bill as a way to get his life restarted. At one point, Scheck pointed out that eyewitness misidentification — the most common cause of wrongful convictions — was the key factor that sent Dupree

to prison. The attorney then asked how many of the others were wrongly imprisoned because an eyewitness mistakenly identified them. A dozen hands went in the air. Not in attendance Tuesday was Dupree’s accused accomplice, Anthony Massingill, who was convicted in the same case and sentenced to life in prison on another sexual assault. The same DNA testing that cleared Dupree also cleared Massingill. He says he is innocent, but remains behind bars while authorities test DNA in the second case. Dupree was 19 when he was arrested in December 1979 while walking to a party with Massingill. Authorities said they matched the description of a different rape and robbery that had occurred the previous day. Police presented their pictures in a photo array to the victim. She picked out Massingill and Dupree. Her male companion, who also was robbed, did not pick out either man when showed the same lineup. Dupree was convicted and spent the next three decades appealing. The Court of Criminal Appeals turned him down three times.

No happy ending for Tolstoy, Russia • TOLSTOY, FROM 1A

Stepashin described the visit — made while he was director of the Federal Security Service, successor to the KGB — as an emotional experience that he has never been able to shake off. “You look at the house where he lived and worked, where he created his works, and then you come to a place where there is nothing but this small hill,” said Stepashin, who has close ties to the church. “It was puzzling, on a human and a moral plane. And then I decided to write this letter.” Ambivalence toward Tolstoy is new in Russia. The Soviets planted him at the top of their literary pantheon, largely because of the radical philosophy he preached amid the early rumblings of the October Revolution. The publication of War and Peace and Anna Karenina made Tolstoy so famous that one contemporary described him as Russia’s second czar. He used that position to rail against the church, as well as the police, the army, meat eating, private property and all forms of violence.

Lenin loved Tolstoy’s “pent-up hatred.” As the 50th anniversary of his death approached, the Communist Party began preparing two years in advance, so a monument would be ready. For the centennial, in a Russia wary of utopian thought, there was nothing of the kind. By contrast, Chekhov received lavish official tributes in 2010 for his 150th birthday, including a birthplace visit from Russia’s President Dmitry Medvedev. Although a star-studded Tolstoy biopic, The Last Station, opened in Moscow just ahead of the anniversary, it was filmed in Germany, with actors from Britain and a U.S. director. Russian filmmaker Andrei Konchalovsky, a producer of the film, said he petitioned “every ministry” in the Russian government for support. In the end, he said, he was forced to invest his own money. None of surprised Vladimir Tolstoy, Tolstoy’s greatgreat-grandson, who oversees the museum at Yasnaya Polyana, the author’s estate. Ten years ago he asked the church to revisit the 1901 ruling that excommunicated

his great-great-grandfather. He received no answer. Aside from a reception held by the minister of culture, the anniversary transpired with “a conscious ignoring of Tolstoy,” he said. It was a relief when Stepashin joined the effort. The men met about 15 years ago, when Stepashin, then director of the Federal Security Service, presented Tolstoy with sheaves of family letters pulled out of Soviet intelligence files. Stepashin shared the sense that the writer was getting short shrift. “I understood that there would not likely be a decision to return him to the church,” said Stepashin, now president of the Russian Book Union. “But as for the attitude to him as a person, as a person who did a lot for Russian culture and for the Russian language, I just counted on that, on a change of attitude toward him.” The church’s response, published in state-run newspaper Rossiyskaya Gazeta, suggested not. It acknowledged Tolstoy’s “unforgettable, beautiful works,” and said Russian Orthodox readers were allowed to say soli-

tary prayers for him on the anniversary of his death. But its tone was mournful, calling Tolstoy the most “tragic personality” in the history of Russian literature. It said that Tolstoy “purposely used his great talent to destroy Russia’s traditional spiritual and social order” and that it was “no accident that the leader of the Bolsheviks extremely valued the aim of Leo Tolstoy’s activity.” So there could be no candles burned for Tolstoy in Orthodox churches and no commemorations read, according to the letter, signed by the cultural council secretary to Patriarch Kirill I, the church’s leader. Stepashin said he expected this response and was glad the letter included some praise. But intellectuals did not hide their astonishment. “It’s as if in the 20th century the church did not survive persecution that made Tolstoy’s criticisms look like childish prattle,” wrote literary critic Pavel Basinsky. “It’s as if we have found ourselves in the situation that we were in at the beginning of the last century.”

Iran invites nations to tour nuclear sites • IRAN, FROM 1A

Mehmanparast did not give a firm date, but said the tour would take place before the January talks. The new round of negotiations is meant to explore whether there is common ground for more substantive talks on Iran’s nuclear program. A round of talks in Geneva in December yielded no breakthrough. The U.N. Security Council has demanded that Iran freeze uranium enrichment — a process that can produce both fuel and fissile warhead material. But Iranian negotiators flatly ruled out discussing such demands at the Istanbul meeting. The offer of a visit comes more than three years after six diplomats from developing nations visited Iran’s uranium ore conversion site at Isfahan, which turns raw uranium into the gas that is then fed into enriching centrifuges. Participating diplomats told reporters they could not assess Iran’s nuclear aims based on what they saw there. The new offer appeared more wide ranging, both in terms of who was invited and sites to be visited.

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Dated Dec. 27, the fourparagraph letter offered no details beyond offering an all-expenses paid “visit to Iran’s nuclear sites.” But a diplomat familiar with its contents said it was mailed to Russia, China, Egypt, the group of nonaligned nations at the U.N. International Atomic Energy Agency, Cuba, Arab League members at the IAEA, and Hungary, which currently holds the rotating EU presidency. China, and to a lesser degree Russia, have acted to dilute harsh sanctions proposed by the United States and its Western allies on the Security Council, leading to compromise penalties enacted by the council that are milder than the West had originally hoped. The outreach to Moscow and Beijing in Tehran’s offer to visit appeared to be an attempt to leverage any differences between the Eastern and Western powers meeting the Iranians in Istanbul. On Tuesday, Chinese Foreign Ministry spokesman Hong Lei acknowledged that Beijing has received an invitation and hopes the dispute over Iran’s nuclear program would be resolved through dialogue.

1/5/2011 5:49:07 AM






GOP sets date for health law repeal vote BY PAUL KANE Washington Post Service


DANGER CRAWLS: Residents of Rockhampton, Australia, have reported seeing a large number of snakes, as the animals move around seeking dry ground. Tourists, above, are rescued from the flooded Magela Creek, Australia.

Deadly reptiles pose a threat in Australian floods ROCKHAMPTON, Australia — (AP) — Residents of an Australian city cut off by some of the country’s worst flooding in decades are being warned to stay out of the water, and not just because of the risk of being swept away: Debris, snakes and even crocodiles could also pose a danger. Large parts of the coastal city of Rockhampton were under water Tuesday. The waters were still rising, with the 75,000-strong population bracing for the floods’ expected peak in the next 24 hours as a huge inland sea spawned by heavy rain across Queensland state drains toward the ocean. Residents on boats made their way through Rockhampton’s flooded streets, while police checked houses to see whether they were occupied. Up to 500 people have been evacuated from their homes along the Fitzroy River, which runs through the city and has spilled over its banks and inundated houses and businesses. Waters range from a few inches to waist deep, and are expected to rise another few feet. Air and rail links to the city were cut and only one main road remained open. HEALTH RISKS Adding to the woes, Rockhampton Mayor Brad Carter said Tuesday the floodwaters were threatening Rockhampton’s sewage treatment plants and officials may seek to discharge some effluent directly into the swollen river system. He said this would only occur away from the city, and that the discharged sewage would be highly diluted and would not pose a health risk. Rockhampton is the latest of 22 cities and towns in Queensland to be swamped by floods that began building just before Christmas — the worst effects of an unusually wet summer in the tropical region. No one has died in Rockhampton, but swollen rivers and flooding have killed 10 people in Queensland since late November, police say. Officials have said the flooded area covers the size of France and Germany combined and 200,000 people have been affected. Wendy White, who owns a clothing alterations shop in Rockhampton, said she was worried about her merchandise and equipment as the waters rise. “We’ve taken everything about two feet up off the floor . . . my machines are above that and then everything, all my stock is stacked on that,” she told the Australian Broadcasting Corporation “So it’d be a case of, if the water does come in, we’ll have to mop up before we can set up to start trading again.” Authorities have warned residents to stay out of floodwaters for their own safety, saying the biggest risk is from fast-moving currents powerful enough to sweep cars from roadways. At least two people have drowned after being swept away in their cars. SEEKING DRY GROUND Mayor Carter has also said residents have reported seeing higher than usual numbers of snakes, as the animals move around looking for dry ground. He has also noted that saltwater crocodiles have been spotted from time to time in the Fitzroy River. “We do not think they are a risk to public safety if people keep out of the waters, but if people do enter the waters their safety cannot be guaranteed,” Carter told The Australian newspaper. Animal welfare worker Wendy Hilcher said fears about snakes and crocodiles were hampering her group’s efforts to rescue pets left behind by people who had left their homes in flooded areas of the city. “It’s not just the safety aspect of getting to these places, it’s what’s in the water itself,” said Hilcher, from the Royal Society for the Prevention of Cruelty to Animals. “If it gets too dangerous, we have to get out of there.” U.S. Secretary of State Hillary Clinton sent a condolence message to those affected by the floods and said Washington was ready to help if needed. A military cargo plane landed in a city north of Rockhampton on Monday carrying food, water, medical supplies and other items such as diapers to keep the city stocked with necessities. The goods were trucked south to the city, or carried on barges. Further flights would continue as needed, Australia’s acting Defense Minister Warren Snowdon said. Two navy helicopters were on standby to help. Other supplies were being brought by sea from areas south of Rockhampton, where regular supply routes may be closed for days to come. Many stores and businesses in dry parts of the city remained open. Power supplies were being severed to inundated areas for safety reasons, officials said. Australia’s Prime Minister Julia Gillard has said the cost associated with the flooding will likely reach many hundreds of millions of dollars, and has announced relief funding worth millions. Rains have eased, and water levels have been dropping in some towns in Queensland. Across the state, some 1,000 people are living in evacuation centers, and it may be a month before the floodwaters dry up completely.

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WASHINGTON — House Republicans have set Jan. 12 as their day to vote on a repeal of U.S. President Barack Obama’s healthcare law, after a midterm election in which they campaigned against the landmark legislation as a government takeover of the health industry. The announcement Monday sets up the attempted repeal of the healthcare law as the first significant legislative action by House Republicans in the 112th Congress. With 242 members on their side, Republicans expect to pass the legislation easily, but they privately acknowledge that the measure faces a high hurdle in the Democratcontrolled Senate. “Obamacare is a jobkiller for businesses small and large, and the top priority for House Republicans is go-

ing to be to cut spending and grow the economy and jobs,” Brad Dayspring, spokesman for incoming House Majority Leader Eric Cantor, R-Va., said in a statement. The repeal legislation will be a brief document that simply revokes the law. Obama signed the measure in March after a legislative battle that lasted nearly a year and proved politically bruising. Democrats have since suggested it was worth the fallout. Although many Democrats distanced themselves from the legislation during last fall’s elections, some liberals want to use this next phase as a chance to reframe the debate in their favor, particularly as the effects of the legislation begin to kick in this year. And Rep. Nancy Pelosi, D-Calif., the outgoing speaker, said in a post on Twitter,

“While Dems are focused on job creation, GOP is fasttracking repealing patients’ rights & Rx help for seniors.” GOP leaders often advanced a “repeal and replace” theme during the 2010 campaign. A day after Republicans won control of the House in November, Rep. John Boehner, R-Ohio, who will replace Pelosi as speaker, signaled a slow approach to the repeal by saying that Republicans must “lay the groundwork before we begin to repeal this monstrosity.” Instead, they will pass their repeal legislation a week after the start of the new Congress. A key element of the legislation, the mandate that all individuals buy health insurance, does not take effect until 2014. Other portions took effect Saturday, with the dawn of the new year, including one that provides discounts

to Medicare beneficiaries for the purchase of prescription drugs — covering what is commonly known as the system’s “doughnut hole.” In a Monday letter to Boehner signaling that they have no intention to consider the repeal, Senate Democrats cited the “doughnut-hole fix” as a key provision that must be allowed to take effect. “This proposal deserves a chance to work. It is too important to be treated as collateral damage in a partisan mission to repeal healthcare,” Majority Leader Harry Reid, D-Nev., and other Senate Democratic leaders wrote. That sets up a likely showdown over the funding of some of the provisions, including money that would need to be allocated to the Department of Health and Human Services and other agencies to fund the legislation’s implementation.

Guantanamo provisions may be challenged BY PETER FINN AND ANNE E. KORNBLUT Washington Post Service

WASHINGTON — The White House is considering a challenge to the authority of Congress to bar detainees held at Guantanamo Bay, Cuba, from trial in federal courts in the United States, according to administration officials. A provision in the defense spending bill, which was passed in December, prevents the administration from transferring any detainee to the United States for any purpose. The bill also prevents the administration from purchasing a state prison in the United States to replace the facility in Cuba, and it places new restrictions on the transfer of detainees who have been cleared for release by an interagency review panel. White House officials said they are discussing the possible merits of issuing a signing statement when U.S. President Barack Obama signs the defense bill, but cautioned that no final decision has been made and that it may not challenge every Guantanamo provision. At a minimum, the statement would assert that Congress has wrongly intruded on the executive branch’s discretion to decide on the appropriate venue to prosecute terrorism suspects, officials said. ProPublica, the nonprofit news organization, first reported that the administration was weighing such a statement, which is a mechanism for the president to comment on legislation or declare that he will not enforce some part of it on constitutional or oth-


RESTRICTION: A provision in the U.S. defense spending bill prevents the administration from transferring any detainee to the United States for any purpose. A prisoner, above, writes in the communal area at Guantanamo Bay. er grounds, even as he signs it into law. Former U.S. President George W. Bush, who issued more signing statements than any other president, was criticized by some legal scholars, including current members of the Obama administration, for using signing statements to circumvent the constitutional separation of powers. The administration has long said that it wants to use a combination of federal courts and military commissions to prosecute some detainees as part of its overall goal of closing the military detention center at Guantanamo Bay. About 36 of the remaining 174 detainees at Guantana-

mo Bay have been slated for prosecution, but the administration ran into fierce political opposition from both Democrats and Republicans after it said it wanted to try Khalid Sheik Mohammed, the self-proclaimed mastermind of the Sept. 11, 2001, attacks, in U.S. District Court in Manhattan, N.Y. A signing statement is likely to spark fresh political conflict with Congress over the future of Guantanamo Bay. “President Obama is wrong on multiple counts,” said Rep. Peter King, R-N.Y., the incoming chairman of the House Homeland Security Committee. “First, after

criticizing President Bush so strongly for issuing signing statements, it would be totally hypocritical of him do the same thing when it suits his own ideological purpose. Second, the American people made it clear they don’t want Guantanamo detainees in the United States, and they don’t want 9/11 trials in the United States.” The administration is also planning to issue an executive order that would formalize indefinite detention without trial for some detainees at the U.S. military prison, but allow those detainees and their lawyers to continue to challenge the basis for continued incarceration on a regular basis.

Postlethwaite, 64, was actor with broad range BY BRUCE WEBER New York Times Service

Pete Postlethwaite, a lanky, craggy-faced character actor whose range stretched from sweet sentimentality to acid menace and who was nominated for an Academy Award in 1994 for his role as the father of a man unjustly accused of terrorism in In the Name of the Father, died in Shrewsbury, Shropshire, England. He was 64 and lived on a farm near Bishop’s Castle, Shropshire. The cause was cancer, said Andrew Richardson, a friend. With a broad nose, prominent ears, high cheekbones and hollow cheeks, Postlethwaite was distinctive looking and rawboned, if not exactly classically handsome. His face was an especially suitable one for the rough-hewn working-class men he often (although far from always) played. He was widely known in England as a stage and television actor before beginning a busy film career in the 1980s — his first significant role was in A Private Function, with Michael Palin and Maggie Smith, in 1984 — and in the 1990s he became familiar to U.S. audiences in, among oth-

er films, Alien 3, Waterland, The Last of the Mohicans and The Usual Suspects. In 1996, he starred as the leader POSTLETHWAITE of a local brass band in Brassed Off, a melancholy and sentimental comedy about the threatened closing of a coal mine in a village in northern England that would also mean the end of the band, the village’s pride and joy. His later films included The Shipping News and a remake of the 1976 horror film The Omen. In 2010, he was seen in two Hollywood action extravaganzas, as a fisherman and adoptive father of a character loosely based on the mythological figure Perseus in Clash of the Titans and as a dying corporate baron in Inception; he also played a vicious gangster in Ben Affleck’s crime drama The Town. In the Name of the Father was based on the real-life tribulations of Gerry Conlon, a feckless Irishman wrongly accused in the 1974 Irish Republican Army bombing of two pubs popular with

British soldiers in Guildford, England. Postlethwaite played Giuseppe Conlon, “a father in an unimaginable predicament” as The New York Times described the role, whose complicated relationship with his son (Daniel Day-Lewis) is made even more difficult when he becomes a victim of the prosecution of the crime his son did not commit. Peter William Postlethwaite was born on Feb. 7, 1946, into a working-class Roman Catholic family in Warrington, near Liverpool, where as a teenager he once booked the Beatles to appear at a village hall. His father, William, was a cooper and later a school caretaker. He and his wife, Mary, expected their son to become a priest (Peter spent two years in a seminary, beginning at age 11) or a teacher. As a young man Postlethwaite did teach for a while — drama and physical education — until he gave it up to pursue acting, a decision that, according to family lore, his mother chided him for until the 1980s, when he had his picture taken with Queen Elizabeth II after appearing in a Royal Shakespeare Compa-

ny production of The Taming of the Shrew. Postlethwaite studied to be an actor at the Bristol Old Vic and spent his first years as a professional at the Everyman Theater in Liverpool, where he worked with Bill Nighy, Jonathan Pryce and others. He began appearing on television in the 1970s, in both films and series. It was a brazen and brutal performance as a drunken, abusive husband and father in the 1988 film Distant Voices, Still Lives that brought him wider attention as a film actor. He continued to perform onstage throughout much of his career, and two years ago he returned to Liverpool’s Everyman as King Lear. Dominic Cavendish wrote in The Telegraph of London, “The journey Postlethwaite takes is beautifully shaded, by turns semi-serious, pensive and pained before arriving, touchingly, at some dazed, carefree state where madness has become his sole means of self-preservation.” Postlethwaite’s survivors include his wife, Jacqui Morrish; a son, Will, who is a drama student in London; and a daughter, Lily.

1/5/2011 5:13:19 AM






Judge says Orioles’ Simon can be detained BY DIONISIO SOLDEVILA Associated Press

SANTO DOMINGO, Dominican Republic — Baltimore Orioles reliever Alfredo Simon surrendered to police Monday to face an involuntary manslaughter charge in a fatal shooting New Year’s Eve, and a judge ruled he could be held up to a year pending trial. Judge Adriana Vazquez Jimenez issued the order in Puerto Plata on Monday evening, several hours after Simon gave himself up. The Dominican pitcher is suspected of firing a shot that killed 25-year-old Michel Castillo Almonte and wounded his 17-year-old brother in the northeast coastal town of Luperon. The dead man is Simon’s cousin, according to the player’s lawyer, who has said the player was firing celebratory shots in the air. Police initially said a murder charge would be filed against Simon, but Public Prosecutor Victor Mueses told The Associated Press on Monday that

witness accounts and evidence supported an involuntary manslaughter charge instead. “The version that we have is that there was a dispute between two women and he tried to dissolve it, fired a shot that ended up wounding a young person in the arm and that same bullet lodged in the chest of the deceased,” Mueses said by phone. Simon could face up to two years in prison if convicted of involuntary manslaughter. Mueses, the public prosecutor in Puerto Plata, initially said he would request three months of preventive detention for Simon while the case is pending but later pushed for a year. The judge agreed. Simon’s lawyer, Carlos Olivares, told the AP that he planned a quick appeal of the ruling. He said his client is not a flight risk and called the ruling an unjust decision. The Caribbean country’s legal system allows for preventative detention.


FATAL SHOT: Dominican pitcher Alfredo Simon is suspected of firing a shot that killed 25-year-old Michel Castillo Almonte and wounded his brother in the Dominican coastal town of Luperon.

Human rights groups have long said the provision is abused and thousands of people are held unjustly for extended periods. Earlier Monday, Olivares said his client fired random shots with a group of local boys to celebrate New Year’s Eve. But he believes Simon could not have been the shooter because the player’s cousin was shot in the chest. “We are giving the weapon so that the national police can do the pertinent ballistics tests,” Olivares said. Ballistics test should be completed in the next 48 hours, Dominican Police Chief Jose Polanco said. Some Dominicans shoot guns in the air on New Year’s Eve especially in the hours leading to midnight, although authorities have repeatedly warned against the practice. Bystanders are killed or wounded every New Year’s Eve. Simon was accompanied to the police station by Julio Lugo, the free agent second baseman for the Orioles. “He is scared because he recognizes that he fired shots, although they went into the air,” said Lugo, who advised Simon to surrender after he fled the scene. The injured teenager was shot in the right arm and remains hospitalized in the Dominican city of Santiago. The Baltimore Sun newspaper said that John Stockstill, the Orioles’ director of development, was being sent to the Dominican Republic to evaluate the situation. “The purpose of my trip is to make sure we have the accurate facts as we move forward and take appropriate action,” Stockstill told the newspaper. Simon joined Baltimore in 2008 but was quickly sidelined with an injury. The 29-year-old pitcher went 4-2 with a 4.93 ERA last season. He had 17 saves.

Bolivia’s President Morales apologizes for flag burning LA PAZ, Bolivia — (AP) — Bolivia’s President Evo Morales has apologized for the burning of a Venezuelan flag during protests against an abrupt rise in fuel prices. Morales said he “publicly apologized in the name of the Bolivian people” for the incident last week.

He said the Venezuelan Embassy called the presidential palace to complain after the flag was torched by protesters. Morales has close ties to President Hugo Chavez of Venezuela, and the incident highlighted complaints by opponents that the Bolivian leader is

following in his footsteps. Morales on Tuesday blamed right-wing opponents in Bolivia for violence during the protests that left at least 15 injured. Morales on Saturday abruptly reversed the unpopular fuel price hikes in response to the protests.

Colombian soldiers accused of killing three civilians BY DAVID McFADDEN Associated Press

BOGOTA — Colombian authorities said on Monday that they have accused an army major and four other soldiers of killing three civilians and then falsely presenting their bodies as those of guerrillas who has been slain in combat. Maj. Juan Carlos Del Rio Crespo and four other troops were charged in the 2002 killings of three members of the Agudelo family in Antioquia state, about 180 miles northwest of Bogota, the attorney

general’s office said in a statement. Investigators determined the three were defenseless when they were slain, but that the soldiers later said the deaths happened during combat against the leftist Revolutionary Armed Forces of Colombia, or FARC, the attorney general’s office said. It said troops under Del Rio’s command seized the three men from a sugarcane field where they were working. Their bodies were found with two shotguns. Del Rio and three

soldiers have been jailed, while one other soldier is wanted in the killings. In November, Colombian authorities said they were investigating the extrajudicial killings of 2,650 civilians, and that about 1,100 soldiers were under investigation. At least 272 soldiers have been convicted and 58 have been absolved in a series of similar cases since 2008, when scandal erupted in Colombia over mounting accusations that soldiers were regularly killing civilians.


OPTIMISTIC: Lazaro Cuesta, above, a top priest at a panel of Afro-Cuban priests in Havana says that 2011 will be a year of reforms for Cuba.

Cuban Santeria priests see ‘reorganization’ BY JENNY BARCHFIELD Associated Press

HAVANA — Cuba’s Santeria priests say 2011 will be a year of change and “reorganization,” characterized by growing economic openness and threats of war and coups d’etat. Their annual New Year’s forecast, released by a panel of Afro-Cuban priests, coincides this year with the communist island’s most significant economic reforms in a generation. “We are sure that there will be changes” in 2011, said the one of the group’s top priests, Lazaro Cuesta. “We’re certain that good moments are coming.” In addition to predicting “commercial openings and an increase in exports and imports,” the forecast also included warnings of war, “coups d’etat and sudden political changes,” and the deaths of famous political personalities. Similar predictions were

made by the group last year, but none came to pass in Cuba in 2010. The priests announced their latest forecast — known here as the “Letra del Ano,” or the “Letter of the Year” — following a secretive New Year’s Eve ritual that includes religious chants and animal sacrifices. Some 1,000 priests participated in the closeddoors ceremony, Cuesta said. This year’s predictions come as Cuba launches a host of reforms aimed at scaling back the state’s control of the economy and generating new revenue for the cash-poor government. The reforms, announced in late 2010, include the firing of a half million state workers and an opening to some limited forms of private enterprise. Dozens of santeros — followers of the syncretic religion that mixes Roman Catholicism with the traditional African Yoruba faith — turned out for Monday’s predictions.

“It looks to me like the signs are good for this year,” said Reineiro Espinosa, a 53-year-old bus driver who has practiced Santeria for more than a decade. “Last year was very bad, so we’re really hoping that better things are in store for this year,” he said, as he scribbled down the forecast onto the back of a cardboard box. The forecast said 2011 is the year of the divinity Oggun, the patron saint of soldiers, as well as Baba Eyiobe, a Santeria sign that means “double salvation.” That was also the sign in key years in Cuban history — including 1959, the year of former President Fidel Castro’s revolution, the group said. Predictions by a rival Santeria group agreed that 2011 is the year of Oggun. In a statement Sunday, the group, which enjoys official government sanction, added that “great difficulties” would be overcome this year.

Residents of Ciudad Juarez flee Mexico’s ‘dying city’ • MEXICO, FROM 1A

Longoria and her husband don’t watch a neighbor move away. Then the vandals arrive, carrying off window panes, pipes, even light fixtures, until there’s nothing but a graffiti-covered shell, surrounded by yards strewn with rotting food or shredded tires. That could be what’s in store for Longoria’s three-room home of poured concrete if her husband’s transfer comes through. Long controlled by the Juarez Cartel, the city descended into a horrifying cycle of violence after Mexico’s most-wanted kingpin, Joaquin “El Chapo” Guzman, and his Sinaloa Cartel tried to shoot their way to power here beginning in 2008. Mexico’s President Felipe Calderon sent nearly 10,000 troops to restore order. Now, the Mexican army and federal authorities are going doorto-door, conducting an emer gency census to determine just how many residents have fled. Many people, however, refuse to answer their questions for fear authorities are simply collecting information about neighborhoods so they can begin extorting residents — just like the drug gangs. “Soon,” Longoria said, “there won’t be many people left to count.”

While many Juarez residents fleeing the violence seek out more peaceful points in Mexico, others have streamed across the border into El Paso, population 740,000, where apartment vacancies are down and requests for new utility services in recently purchased or rented houses have spiked, according to Mayor John Cook. Massacres, beheadings, YouTube videos featuring cartel torture sessions and even car bombs are becoming commonplace in Juarez, where more than 3,000 people were killed in 2010, according to the federal government, making it among the most dangerous places on earth. El Paso, by contrast, has had three violent deaths — and one was a murdersuicide. Juarez Chamber of Commerce President Daniel Murguia said at least 6,000 city businesses have closed in 2010, according to Mexican Interior Ministry figures. There is no data available on those shuttered amid 2009’s and 2008 violence, however, or on scores of businesses targeted by arsonists. Kathy Dodson, El Paso’s economic director, said the number of fees paid for new city business permits there

has not increased dramatically, but Jose Luis Mauricio, president of a group for new Mexican business owners in El Paso known as “La Red,” or The Net, said membership has grown from nine in February to about 280 today. “Maybe it’s a bit sad for Juarez, but these are business owners who are moving here because they have no choice,” said Mauricio, who leads weekly breakfasts for Mexican expatriates looking to set up businesses in El Paso. One club member is a Mexican-American who owns a factory in Juarez but moved to El Paso with his family after he was kidnapped in 2009. The 50-year-old, who asked that his name not be published to avoid further repercussions, was held in a Juarez safe house — but managed to untie his hands and cry for help loud enough that neighbors called the Mexican army to rescue him. “There’s a lot of people afraid. I don’t blame them. Even if they haven’t had a bad experience, they don’t want to be the next one to have one, so they run away,” said the factory owner. He said he will never move back to Juarez but hopes the violence will one day calm enough for him to visit. “It’s a city that’s dying,” he said. “It’s out of control.”

Fugitive in Brazil jail seeks release

U.S. seeks new envoy to Venezuela

RIO DE JANEIRO — (AP) — Defense attorneys for an Italian fugitive wanted for murder in his homeland are asking the Brazilian Supreme Court to release him from prison. Attorney Renata Alves Peixoto says the defense has requested that ex-leftist rebel Cesare

WASHINGTON — (AP) — The Obama administration says it may nominate a new ambassador to Venezuela after its previous choice was rejected by the government of Venezuela’s President Hugo Chavez. U.S. State Department spokesman P.J. Crowley said the United States believes

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Battisti be freed “as soon as possible.” Battisti was convicted of four murders committed in the late 1970s in Italy. He escaped from prison in 1981 while awaiting trial and was tried in absentia in 1990. He arrived in Brazil in 2004, and was arrested

three years later on Interpol orders. On Friday, Brazil’s President Luiz Inacio Lula da Silva decided not to extradite him despite pressure from Italy, citing the petitioner’s “personal condition.” Peixoto said on Monday the decision allows Battisti to be freed.

it is important to have an ambassador in Caracas in order to manage relations, which have been strained by Chavez’s condemnations of the United States and by U.S. criticisms that democracy is deteriorating in Venezuela. Crowley said Monday the administration regrets that

Chavez refused to accept Larry Palmer as ambassador. It said that if a decision is made to seek Venezuela’s agreement on another envoy, that candidate’s nomination would have to be submitted to the Senate for confirmation. Crowley said this was now under consideration.

1/5/2011 5:39:28 AM






Republicans set up huge target for the budget ax BY JACKIE CALMES New York Times Service

WASHINGTON — The incoming Republican majority in the House is moving to make good on its promise to cut $100 billion from domestic spending this year, a goal backed by conservatives but one carrying substantial political and economic risks. House Republican leaders so far are not specifying which programs would bear the brunt of budget cutting, only what would escape it: spending for the military, domestic security and veterans. The reductions that would be required in the remaining federal programs, including education and transportation, would be so deep — roughly 20 percent on average — that Senate Republicans have not

joined the $100 billion pledge that House Republicans, led by the incoming speaker, Rep. John Boehner, made to voters before November’s midterm elections. Even if adopted by the House, the Republicans’ budget is unlikely to be enacted in anything like the scale they envision since Democrats retain a majority in the Senate and U.S. President Barack Obama could veto annual appropriations bills making the reductions. But the effort is more than symbolic: In particular it could give House Republicans increased leverage in budget negotiations with the White House this winter and spring, when the administration must get Congress to raise the federal debt limit or risk a government financing

crisis. The budget-cutting exercise is perhaps the biggest test facing the House Republicans as they seek to remain united and to keep faith with Tea Party members, many of whom remain suspicious of the party’s willingness to vote for deep spending cuts. But if Republicans vote for the size and range of required cuts in education, law enforcement, medical and scientific research, transportation and much more, it would give Democrats political ammunition to use against them in swing districts. Such reductions are sure to draw protests from governors and local officials, including Republicans, who are counting on federal money to help balance their budgets. Many business and farm groups

likewise would oppose cuts in their subsidies. And many economists would argue that immediate federal spending cuts of this size, especially on top of cuts and layoffs in the cities and states, would threaten the economy’s recovery and offset any stimulus from the tax cut deal Republicans and Obama reached just weeks ago. Yet conservative analysts say even more spending cuts are desirable. Brian Riedl, of the Heritage Foundation, a conservative research organization, has outlined a plan for $343 billion in reductions, including cuts from corporate tax breaks and entitlement programs that are not in the portion of the federal budget that House Republicans are focusing on, the so-

called non security discretionary spending. “The difficulty for Republicans is that they’re concentrating their cuts in a small sliver of the budget,” Riedl said. “They should also be addressing large entitlement programs, such as Medicare and Social Security, which are the main source of our budget problems. Cutting $100 billion from these other programs isn’t just a matter of eliminating waste, fraud and abuse. It will involve real cuts in real programs.” Other Republicans are skeptical, as well. “I just don’t know how, when you get down to it, they’re going to get agreement on that,” said G. William Hoagland, who for many years was the Republican

Officials probe bird deaths in Arkansas BY JEANNIE NUSS Associated Press

BEEBE, Ark. — New Year’s revelers in a small Arkansas town were enjoying midnight fireworks when they noticed something other than sparks falling from the sky: thousands of dead blackbirds. The red-winged blackbirds rained out of the darkness onto rooftops and sidewalks and into fields. Birds were “littering the streets, the yards, the driveways, everywhere,” said Robby King, a county wildlife officer in Beebe, a community of 5,000 northeast of Little Rock. “It was hard to drive down the street in some places without running over them.” In all, more than 3,000 birds tumbled to the ground. Scientists said Monday that fireworks appeared to have frightened the birds into such a frenzy that they crashed into homes, cars and each other. Some may have flown straight into the ground. “The blackbirds were flying at rooftop level instead of treetop level” to avoid explosions above, said Karen Rowe, an ornithologist with the Arkansas Game and Fish Commission. “Blackbirds have poor eyesight, and they started colliding with things.” But Rowe stopped short of declaring the mystery solved, saying labs planned to test bird carcasses for toxins or disease. Another theory was that violent

thunderstorms might have disoriented the flock or even just one bird that could have led the group in a fatal plunge to the ground. With the birds, a few stunned ones survived their fall and stumbled around like drunken revelers. There was little light across the countryside at the time, save for the glimmer of fireworks and some lightning on the horizon. In the tumult, many birds probably lost their bearings. “I turn and look across my yard, and there’s all these lumps,” said Shane Roberts, who thought hail was falling until he saw a dazed blackbird beneath his truck. His 16-year-old daughter, Alex, spent Saturday morning picking them up. For some people, the scene unfolding shortly before midnight evoked images of the apocalypse and cut short New Year’s celebrations. Many families phoned police instead of popping champagne. “I think the switchboard lit up pretty good,” said Beebe police Capt. Eddie Cullum. “For all the doomsdayers, that was definitely the end of the world.” Paul Duke filled three five-gallon buckets with dead birds on New Year’s Day. “They were on the roof of the house, in the yard, on the sidewalks, in the street,” said Duke, a suspension supervisor at a nearby school. A few dead birds still littered town streets Monday. The birds will

Associated Press

HONOLULU — U.S. President Barack Obama is considering naming former Commerce Secretary William Daley to a top White House job, possibly chief of staff, a person familiar with the matter said. The development comes as Obama eyes a broader reorganization of his senior staff heading into the next phase of his presidency. Daley, an executive at JPMorgan Chase, has extensive private sector experience, an attractive profile for a White House trying to counter the notion that the president is antibusiness. Obama aides have been discussing naming an executive to a top job as a way to give the business community more of a voice

in the administration. The person spoke Monday on the condition of a n o ny m i ty because they were not authorized to speak publicly on the matter. Obama’s first chief of DALEY staff, Rahm Emanuel, resigned in 2010 to run for Chicago mayor. The colorful and hard-edged Emanuel was replaced by interim chief of staff Pete Rouse, a low-key, behind the scenes troubleshooter who prefers to operate out of the spotlight. Daley, 62, has spent decades quietly but successfully maneuvering the political landscape. While his brother,

Military expert found dead in landfill BY RANDALL CHASE Associated Press


ASCERTAINING: Assistant State Veterinarian Dr. Brandon Doss examines dead red-winged blackbirds at the Arkansas Livestock and Poultry Commission Diagnostic Laboratory in Little Rock, Ark., Monday, not be missed. Large roosts like the one at Beebe can have thousands of birds that leave ankle- to knee-deep piles of droppings in places. On Monday, a few live birds chirped and hopped from tree to tree behind the Roberts’ home. “The whole sky turns black every morning and every night,” Roberts said. Red-winged blackbirds are

the among North America’s most abundant birds, with somewhere between 100 million and 200 million nationwide, according to the Cornell Lab of Ornithology in Ithaca, N.Y. The Game and Fish Commission shipped carcasses to the Arkansas Livestock and Poultry Commission and the National Wildlife Health Center in Madison, Wis. Re-

searchers at the University of Georgia’s wildlife disease study group also asked for a set of birds. Test results could be back in a week. “They died from massive trauma,” said Game and Fish Commission spokesman Keith Stephens, citing a report from the state poultry lab where the birds were examined.

Obama eyeing Daley for top White House job BY JULIE PACE

staff director of the Senate Budget Committee. The promise to cut $100 billion this fiscal year — in effect, taking government operations to 2008 levels — would mean cuts of more than 20 percent across the board from the $477 billion that Congress allocated for such programs in fiscal 2010, which ended Sept. 30. Such across-the-board cuts “would have very damaging implications for the long-term growth of the economy and the long-term future of our workforce,” said Jacob J. Lew, Obama’s budget director. He is preparing the administration’s budget for fiscal 2012, which would continue a three-year freeze of the same domestic spending at 2010 levels.

Chicago Mayor Richard Daley, focused on local issues, William Daley has had one foot in Chicago and one in Washington. With his ties to his family’s powerful political dynasty, Daley would likely bring a broader public profile to the chief of staff job than the privacy-seeking Rouse. His appointment would also bring an outside voice into Obama’s circle, and give the impression that Obama is willing to make changes following Democrats’ sweeping defeats in the November elections. Other changes are expected to unfold soon. Rouse has been heading a staff review that is expected to lead to some shake-ups in the West Wing. David Plouffe, the architect of Obama’s 2008 presi-

dential campaign, is expected to be in the White House as soon as next week as an advisor to the president. One of the president’s most trusted advisors, David Axelrod, is leaving this month; he is expected to take a break and recharge for a central role in the 2012 reelection campaign. Obama has been reviewing Rouse’s report during his Hawaiian vacation, and a new-look White House structure of people and portfolios is expected to unfold over the coming weeks. It was thought that Rouse would stay on at least until the reorganization review was complete, along with the president’s State of the Union address in late January and the release of Obama’s budget proposal in February. But beyond that,

Rouse has never relished the high-profile job as the top White House manager. Those close to Obama say top aides are generally being asked to make their intentions known now if they want to change or leaves jobs — or be prepared to stay on for the rest of the term — so there is stability as Obama heads into his reelection bid. Daley made his name in politics as a special counsel to former U.S. President Bill Clinton, coordinating the successful campaign to pass the North American Free Trade Agreement and then serving as Clinton’s commerce secretary. Later, he ran Al Gore’s 2000 presidential campaign and the historic recount effort that ended with Gore conceding the race to George W. Bush.

DOVER, Del. — The body of a military expert who served in three Republican administrations was found dumped in a landfill and investigators said Monday they were trying to retrace his steps in the days leading up to his death. John Wheeler III, 66, who had not been reported missing, was scheduled to be on an Amtrak train from Washington to Wilmington on Dec. 28, but authorities say it’s not clear if he ever made that trip. His body was found three days later, on New Year’s Eve, as a garbage truck emptied its contents at the Cherry Island landfill. His death has been ruled a homicide. Wheeler served as an Army staff officer in Vietnam and later worked in both the Reagan and the Bush administrations. He also helped lead efforts to build the Vietnam Veterans Memorial Wall in Washington and was the second chairman and chief executive of Mothers Against Drunk Driving. Before the garbage truck arrived at the landfill, it stopped to pick up commercial disposal bins in Newark, several miles from Wheeler’s home in the historic district of New Castle. Investigators have been to the home he shared with his wife, Katherine Klyce. It was not considered a crime scene, said Newark police spokesman Lt. Mark Farrall. “We don’t have a crime scene at this point,” said Farrall, adding that investigators still do not have any leads in the case. Initial police reports that Wheeler was last seen getting off an Amtrak train on Dec. 28 were incorrect, Farrall said. Investigators don’t know how long Wheeler might have been missing or where and when he was last seen, though a friend said he received an e-mail from Wheeler the day after Christmas.

Navy captain Honors loses command because of sexually explicit videos BY ELISABETH BUMILLER New York Times Service

WASHINGTON — A series of coarse and sexually explicit videos produced several years ago and shown to the crew of a Navy aircraft carrier by an HONORS officer who later became the ship’s captain has cost the officer his command. The officer, Capt. Owen Honors, was permanently relieved of his duties as captain of the nuclear-powered

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carrier, the Enterprise, on Tuesday, some two weeks before it is due to leave its home port at Norfolk, Va., to support combat missions in Afghanistan. Adm. John C. Harvey Jr., the commander of the United States Fleet Forces Command in Norfolk, said in a statement released Tuesday afternoon that Captain Honors was removed for demonstrating poor judgment. “The responsibility of the commanding officer for his or her command is absolute,” Admiral Harvey said in the statement. “While Captain Honors’ performance as command-

ing officer of USS Enterprise has been without incident, his profound lack of good judgment and professionalism while previously serving as executive officer on Enterprise calls into question his character and completely undermines his credibility to continue to serve effectively in command.” Admiral Harvey also said in the statement that after viewing the videos, he had lost confidence in Captain Honors’ ability to lead effectively. The videos, which include scenes of simulated masturbation, simulated eating of feces and two men as

well as two women showering together, were made by Captain Honors and shown as entertainment to some 6,000 sailors and Marines aboard the Enterprise in 2006 and 2007. The videos, which also include slurs against gay men, were disclosed over the weekend by a Norfolk newspaper, The Virginian-Pilot. The Navy said on Sunday that the videos were “clearly inappropriate” and that it was investigating the circumstances surrounding their production. Captain Honors, who was the ship’s executive officer and second in command

when he made and starred in the videos, declined a request for comment on Monday. He was promoted to be the ship’s commanding officer in May. He was reassigned to administrative duties on Tuesday. Navy officials had no explanation for why the videos, which were shown on the ship’s closed-circuit television system, surfaced publicly after several years, or why no officers on the Enterprise apparently raised questions about them when they were made and shown. The Virginian-Pilot said one crew member mailed a complaint about the videos to the

Navy inspector general last week, and quoted other crew members who said they were ignored when they objected to the videos at the time they were shown. The Virginian-Pilot also quoted a female sailor who said that she and a number of other women were offended by the videos, a view Captain Honors acknowledged on camera. Comic in-house videos are popular as morale boosters in the Navy as well as in the other branches of the armed services, but military officials said Captain Honors’s efforts were an extreme case.

1/5/2011 3:38:54 AM






Sudanese gear up to vote in referendum BY MAGGIE FICK Associated Press

JUBA, Sudan — Nearly 4 million people in Southern Sudan are registered to vote in an independence referendum to be held Jan. 9, the top election official said. The electoral body is “100 percent prepared” for the vote and it will be held on time, said Justice Chan Reec Madut. Some observers had worried that South Sudan’s poor infrastructure and political issues might delay the polls. Most people expect the oil-rich, mainly Christian south will vote for independence from the mainly Muslim north. The two sides fought a bloody civil war that stretched over two decades. Sunday’s vote is the culmination of a peace deal that ended the conflict in 2005. Just over 3.93 million people have registered to vote, said Madut. Polls will be held in both northern and southern Sudan. Diaspora voting is also taking place in eight countries. Madut said the distribution of ballots across the Texas-sized south and training of polling staff was almost complete, but access was still a problem in some areas of the south, one of the most underdeveloped places in the world. Despite this, he said, nothing would stop the Southern Sudanese from voting. “Our people are ready to walk for six hours, eight hours, in order to reach their polling centers,” he said. The main challenge still facing the commission is funding, which

Madut said “is not forthcoming from Khartoum.” According to the referendum law, Sudan’s national government in Khartoum was supposed to fund the vote with help from the international community. Madut said he hoped the funding issue might be resolved during Sudan’s President Omar al Bashir’s visit to Juba Tuesday. Al Bashir is expected to meet with his southern counterpart, Salva Kiir. Last week al Bashir said he would be “the first to recognize the south” if voters choose independence in the self-determination vote. Among the last minute hitches is a hold up in stipends for the police. They have still not received the $24,000 needed to feed 60,000 security personnel who will be stationed across the south for the seven days of polling, said Lt. Gen. Gordon Micah, the deputy head of the south’s police force. Despite minor problems, the head of the largest domestic referendum monitoring group in the south said he expected the referendum to go smoothly. Edmund Yakani heads the Sudanese Network for Democratic Election, which has deployed 2,800 Sudanese observers in ten states. Former U.S. President Jimmy Carter and former U.N. Secretary General Kofi Annan will visit Sudan as the leaders of the Carter Center’s delegation of more than 100 international observers of the referendum.


MOURNING: Supporters of the main ruling Pakistan People’s Party react after the killing of Punjab Province’s Governor Salman Taseer in Islamabad. Taseer was shot by an elite police guard.

Pakistan governor shot by guard BY SALMAN MASOOD AND CARLOTTA GALL New York Times Service

ISLAMABAD, Pakistan — The governor of Pakistan’s most important and populous province was assassinated by an elite police guard in Islamabad on Tuesday, plunging the already unstable national government into an even deeper crisis. It was the highestprofile killing of a Pakistani leader since Benazir Bhutto was gunned down at a political rally three years ago. The governor, Salman Taseer, was shot at close range as he was getting into his car in the Kohsar Market, an area frequently visited by the city’s elite and by foreigners. Pakistan’s Interior Minister Rahman Malik said that a police guard was the killer. Citing hospital officials, local news media reports said Taseer was

struck by nine bullets. The assassination came after days of protests, unrest and political upheaval that have shaken the country at a time when the United States is pressing Pakistan to cooperate more fully in the war in Afghanistan and in opposition to the Taliban. Taseer had also been embroiled in a recent debate over Pakistan’s contentious blasphemy law. While Taseer supported its repeal, religious parties strongly opposed any changes. A suspect in the shooting, identified as Malik Mumtaz Hussain Qadri, is under arrest, the police said. Qadri, an elite-force security guard, was motivated to kill Taseer because of his opposition to the blasphemy law, police officials said. Taseer was a prominent member of the ruling Pakistan Peoples Party and a close ally

of Pakistan’s President Asif Ali Zardari, Bhutto’s husband, who ascended after her assassination on Dec. 27, 2007. He appointed Taseer as governor of Punjab in 2008. The assassination of Taseer came as a severe blow to Zardari, whose government is close to collapse after the defection of a major ally. Taseer’s death will also be a setback for the government in Punjab, Pakistan’s most powerful province. The dominant party there is the Pakistan Muslim League-N, led by former Prime Minister Nawaz Sharif. On Tuesday, Sharif’s party gave the Pakistan Peoples Party a three-day deadline to accept a list of demands to avert a no-confidence vote that could provoke the collapse of the national coalition government, The Associated Press reported. Two of the coali-

tion’s partners have left, leaving the government of Prime Minister Yusuf Raza Gilani in question. Sharif said the government must reverse recent fuel price increases, cut expenditures by 30 percent and enforce a series of court verdicts against ruling party officials for corruption. Sharif said that if the government failed to accept these demands within 72 hours, his group would join other opposition parties in moving against the government, The AP said. Taseer, a successful businessman who owned a television channel and was the publisher of a liberal Englishlanguage daily, had been allied with rights activists, critics and several government officials in urging the government to repeal or revise the country’s blasphemy law.

Gbagbo softens position slightly in leadership crisis BY ADAM NOSSITER New York Times Service

ABIDJAN, Ivory Coast — The president who refuses to relinquish power here after losing an election has agreed to lift the blockade on his winning rival’s headquarters, West Africa’s political-economic alliance announced Tuesday. The move by the president, Laurent Gbagbo, appeared to represent a slight softening of his stance after weeks of diplomatic pressure from the alliance and others, though there were still no signs Gbagbo was budging from the presidential palace in Abidjan. Gbagbo “pledged to immediately lift the blockade around Hotel Du Golf, the temporary headquarters of Alassane Ouattara, the President-elect,” the West African alliance, known as ECOWAS, said in a statement Tuesday in Abuja, the Nigerian capital. The announcement followed


UNHAPPY: Supporters of Alassane Ouattara, Ivory Coast’s President-elect, protest against President Laurent Gbagbo. a diplomatic mission here by ECOWAS leaders that otherwise ended in failure, as the group’s goal — dislodging Gbagbo — appeared as distant as ever. Gbagbo’s refusal to leave office in Ivory Coast,

the world’s leading producer of cocoa, has become something of a test case in Africa, pitting him against an alliance of critics that include not only ECOWAS and the much bigger African Union,

but also the United Nations, European Union and major global financial institutions like the World Bank. For weeks, as part of his effort to consolidate his grip on power after throwing out election results, Gbagbo has blocked the roads leading to the hotel. Ouattara and his ministers have been forced to rely on daily United Nations helicopter flights for food. Despite Gbagbo’s new pledge, by mid afternoon Tuesday members of Ouattara’s government were saying by telephone from the Hotel du Golf that the roads remained blocked. Gbagbo also “agreed to negotiate a peaceful end to the crisis without any preconditions,” the ECOWAS statement said. Still, Gbagbo told the ECOWAS delegation Monday that his continuing tenure as president was not negotiable, and diplomats said that on that central point,

the defeated leader was inflexible. “His version of the end of the crisis is quite different from what we have in mind,” said a western diplomat in Abuja who is knowledgeable about the ECOWAS negotiations. “He’s agreed to a negotiated end, but obviously he’s not moving,” said the diplomat, who spoke on condition of anonymity because his government had not authorized him to speak to the media. Indeed, the previous threat by ECOWAS to mobilize military force a regional intervention army — to dislodge Gbagbo remains active, the diplomat said. “Active preparations are underway,” he said. “Planning is ongoing.” In Abuja, the ECOWAS commission president, James Victor Gbeho, told reporters at a news conference that the “military objective” remained a “tool” of the alliance. Diplomats

here and in the Nigerian capital said Gbagbo appeared to be engaging in a practice in which he has shown himself to be masterful: stalling. For five years, up until the now-disputed election in November 2010, the Ivorian leader put off calls for a new vote, despite the expiration of his legal term in 2005. Now, he was doing the same, diplomats said — and apparently at the expense of ECOWAS. “Gbagbo is still playing for time,” the diplomat in Abuja said. “He’s called their bluff, but they haven’t really put anything on the table,” he said. A diplomat in Abidjan who is close to the ECOWAS negotiations said Tuesday, of Gbagbo’s time-game strategy: “It’s so limpid, so clear, I don’t see why people aren’t seeing it. Frankly, I don’t see any other solution but the military one.”

Protests in Russia over opposition leader’s arrest Japan on high alert following bird flu scare BY MICHAEL SCHWIRTZ

New York Times Service

MOSCOW — Members of Russia’s opposition have denounced a Moscow court’s decision to jail, for up to 15 days, several leaders of their movement who took part in an anti-government rally. Almost 70 people were arrested during a New Year’s Eve protest against restrictions on freedom of assembly. Boris Y. Nemtsov, one of the opposition’s most prominent leaders, was among those arrested. On Sunday, a Moscow court sentenced Nemtsov, a central official in the government of former President Boris N. Yeltsin, to 15 days in jail. Other leaders received similar or lesser sentences. The arrests occurred despite a Moscow City Hall decision to allow the rally and appeared to indicate some disagreement within the Russian government over how to deal with the country’s tiny, but vocal, opposition. Russia’s President Dmit-

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ry A. Medvedev recently singled out Nemtsov and several other opposition leaders, referring to them as “well-known politicians” who could in the future play a serious role in the political life of the country. The remarks contrasted with those of Medvedev’s mentor, Vladimir V. Putin, Russia’s prime minister and paramount leader, who, when asked about Nemtsov and other opposition figures in December, dismissed them as interested only in “money and power.” It was unclear what prompted the arrests during the rally on New Year’s Eve. The police said that those arrested were part of a separate, unsanctioned rally who were trying to urge protesters to leave their designated area on Triumfalnaya Square in central Moscow and march to another area of the city. Olga Shorina, a spokeswoman for Nemtsov and his political group, Solidarity, said he had been charged

with public swearing and resisting arrest. Though he had been arrested on several occasions, Nemtsov had never received as much as 15 days, Shorina said. Opposition supporters responded with outrage to the arrests. At least 20 people were detained Mon-

day in Moscow while picketing in support of Nemtsov, Solidarity said. Some were later released. In Washington, the White House said in a statement that it was “surprised” by the arrests, given the earlier decision to allow the demonstrations.


RESTRICTED: Russian police detained Boris Y. Nemtsov, center, a prominent opposition leader, during a protest on New Year’s Eve.

BY DONALD G. McNEIL JR. New York Times Service

Japanese bird sanctuaries, poultry farms and zoos went on high alert in December after several species of migratory birds in different regions were found dead of what appeared to be H5N1 avian influenza. The virus frightened flu specialists when it resurfaced in Hong Kong in 2003 and quickly spread throughout Asia and along bird migratory routes to Europe and Africa. It has not mutated to spread among humans, though it still kills them occasionally — Egypt reported its 38th death in December. According to articles in the Japanese press gathered by ProMED, which monitors disease outbreaks, a hooded crane was found dead of H5N1 on the Izumi Plain

in Kagoshima Prefecture in southern Japan. The plain is Japan’s largest wild crane wintering site, and the prefecture is the nation’s top poultry-raising area. Meanwhile, in Tottori, several hundred miles north, a wild tundra swan was found on a house balcony dying of what was tentatively identified as the flu virus found on a poultry farm about four miles away. That set off a search of the area, turning up 23 more dead birds, which are being tested. Farther north, in Toyama Prefecture, a dead mute swan led to inspections of nearby poultry farms and a decision by a park in Hyogo Prefecture, on Japan’s Inland Sea, to stop displaying its white storks, a national treasure, for fear that they would come into contact with infected wild birds.

1/5/2011 5:02:05 AM






A deep hole to climb out of an economic boom; it’s certainly higher than almost all the forecasts I’ve seen. f there’s one piece of economic Yet the math says that even with wisdom I hope people will grasp that kind of growth the unemploythis year, it’s this: Even though we ment rate would be close to 9 permay finally have stopped digging, cent at the end of this year, and we’re still near the bottom of a still above 8 percent at the end of very deep hole. 2012. We wouldn’t get to anything Why do I need to point this out? resembling full employment until Because I’ve noticed many people late in Sarah Palin’s first presidenoverreacting to recent good eco- tial term. nomic news. Seriously, what we’re looking What particularly concerns at over the next few years, even me is the risk of self-denying op- with pretty good growth, are untimism — that is, I worry employment rates that not that policymakers will long ago would have been look at a few favorable considered catastrophic economic indicators, de— because they are. cide that they no longer Behind those dry statisneed to promote recovery, tics lies a vast landscape and take steps that send us of suffering and broken sliding right back to the dreams. And the arithmebottom. tic says that the suffering So, about that good KRUGMAN will continue as far as the news: Various economic eye can see. indicators, ranging from relatively So what can be done to accelgood holiday sales to new claims erate this all-too-slow process of for unemployment insurance healing? A rational political sys(which have finally fallen below tem would long since have cre400,000 a week), suggest that the ated a 21st-century version of the great post-bubble retrenchment Works Progress Administration — may finally be ending. we’d be putting the unemployed We’re not talking Morning in to work doing what needs to be America here. Construction shows done, repairing and improving no sign of returning to bubble-era our fraying infrastructure. levels, nor are there any indicaIn the political system we tions that debt-burdened families have, however, Sen.-elect Kelly are going back to their old habits Ayotte, delivering the Repubof spending all they earned. But lican weekly address on New all we needed for a modest eco- Year’s Day, declared that “Job one nomic rebound was for construc- is to stop wasteful Washington tion to stop falling and saving to spending.’’ stop rising — and that seems to be Realistically, the best we can happening. hope for from fiscal policy is that Forecasters have been mark- Washington doesn’t actively uning up their predictions; growth dermine the recovery. Beware, in as high as 4 percent this year now particular, the Ides of March: By looks possible. then, the federal government will Hooray! But then again, not probably have hit its debt limit so much. Jobs, not GDP num- and the GOP will try to force U.S. bers, are what matter to U.S. President Barack Obama into ecofamilies. And when you start nomically harmful spending cuts. from an unemployment rate of I’m also worried about monalmost 10 percent, the arithmetic etary policy. Two months ago, of job creation — the amount of the Federal Reserve announced a growth you need to get back to new plan to promote job growth a tolerable jobs picture — is by buying long-term bonds; at the daunting. time, many observers believed First of all, we have to grow that the initial $600 billion puraround 2.5 percent a year just to chase was only the beginning of keep up with rising productivity the story. and population, and hence keep But now it looks like the end, unemployment from rising. That’s partly because Republicans are why the past year and a half was trying to bully the Fed into pulltechnically a recovery but felt like ing back, but also because a run a recession: GDP was growing, of slightly better economic news but not fast enough to bring un- provides an excuse to do nothing. employment down. There’s even a significant Growth at a rate above 2.5 per- chance that the Fed will raise incent will bring unemployment terest rates this year — or at least down over time. But the gains that’s what the futures market aren’t one for one: For a variety of seems to think. reasons, it has historically taken Doing so in the face of high about two extra points of growth unemployment and miniover the course of a year to shave mal inflation would be crazy, one point off the unemployment but that doesn’t mean it won’t rate. happen. Now do the math. Suppose that So back to my original point: the U.S. economy were to grow at Whatever the recent economic 4 per year, starting now and con- news, we’re still near the bottom tinuing for the next several years. of a very deep hole. We can only Most people would regard this as hope that enough policymakers excellent performance, even as understand that point. BY PAUL KRUGMAN

New York Times Service


The unborn paradox BY ROSS DOUTHAT New York Times Service

he U.S. entertainment industry has never been comfortable with the act of abortion. Film or television characters might consider the procedure, but even on the most libertine programs (a Mad Men, a Sex and the City), they’re more likely to have a change of heart than actually go through with it. Reality TV thrives on shocking scenes and subjects — extreme pregnancies and surgeries, suburban polygamists and the gay housewives of New York — but abortion remains a little too controversial, and a little bit too real. This omission is often cited as a victory for the pro-life movement, and in some cases that’s plainly true. (Recent unplannedpregnancy movies like Juno and Knocked Up made abortion seem not only unnecessary but repellent.) But it can also be a form of cultural denial: a way of reassuring the public that abortion in the United States is — in former U.S. President Bill Clinton’s famous phrase — safe and legal, but also rare. Rare it isn’t: not when one in five pregnancies ends at the abortion clinic. So it was a victory for realism, at least, when MTV decided to supplement its hit reality shows 16 and Pregnant and Teen Mom with last week’s special, No Easy Decision, which followed Markai Durham, a teen mother who got pregnant a second time and chose abortion. MTV being MTV, the special’s attitude was resolutely pro-choice. But it was a heartbreaking spectacle, whatever your perspective. Durham and her boyfriend are the kind of young people our culture sets adrift — working-class and undereducated, with weak support networks, few authority figures, and no script for sexual maturity beyond the easily neglected admonition to always use a condom.


Their televised agony was a case study in how abortion can simultaneously seem like a moral wrong and the only possible solution — because it promised DOUTHAT to keep them out of poverty, and to let them give their first daughter opportunities they never had. The show was particularly wrenching, though, when juxtaposed with two recent dispatches from the world of midlife, uppermiddle-class infertility. In December there was Vanessa Grigoriadis’ provocative New York Magazine story ‘Waking Up From the Pill’, which suggested that a lifetime on chemical birth control has encouraged women “to forget about the biological realities of being female . . . inadvertently, indirectly, infertility has become the Pill’s primary side effect.” Then on Sunday, The Times Magazine provided a more intimate look at the same issue, in which a midlife parent, the journalist Melanie Thernstrom, chronicled what it took to bring her sons into the world: six failed in vitro cycles, an egg donor and two surrogate mothers, and an untold fortune in expenses. In every era, there’s been a tragic contrast between the burden of unwanted pregnancies and the burden of infertility. But this gap used to be bridged by adoption far more frequently than it is today. Before 1973, 20 percent of births to white, unmarried women (and 9 percent of unwed births overall) led to an adoption. Today, just 1 percent of babies born to unwed mothers are adopted, and wouldbe adoptive parents face a waiting list that has lengthened beyond reason. Some of this shift reflects the growing acceptance of single parenting. But some of it reflects the

impact of Roe v. Wade. Since 1973, countless lives that might have been welcomed into families like Thernstrom’s — which looked into adoption, and gave it up as hopeless — have been cut short in utero instead. And lives are what they are. On the MTV special, the people around Durham swaddle abortion in euphemism. The being inside her is just “pregnancy tissue.” After the abortion, she recalls being warned not to humanize it: “If you think of it like [a person], you’re going to make yourself depressed.” Instead, “think of it as what it is: nothing but a little ball of cells.” It’s left to Durham herself to cut through the evasion. Sitting with her boyfriend afterward, she begins to cry when he calls the embryo a “thing.” Gesturing to their infant daughter, she says, “A ‘thing’ can turn out like that. That’s what I remember . . . ‘Nothing but a bunch of cells’ can be her.” When we want to know this, we know this. Last week’s New Yorker carried a poem by Kevin Young about expectant parents, early in pregnancy, probing the mother’s womb for a heartbeat: The doctor trying again to find you, fragile, fern, snowflake. Nothing. After, my wife will say, in fear, impatient, she went beyond her body, this tiny room, into the ether — . . . And there it is: faint, an echo, faster and further away than mother’s, all beat box and fuzzy feedback . . . This is the paradox of our unborn. No life is so desperately sought after, so hungrily desired, so carefully nurtured. And yet no life is so legally unprotected, and so frequently destroyed.

Conservative solutions for eveybody BY ED FEULNER The Heritage Foundation

ere’s what you’ll hear in many end-of-the-year retrospectives: 2010 emerged as the Year of the Conservative Voter. And it’s true. Fed up with healthcare “reform,” runaway spending and lingering unemployment, U.S. citizens across the country ushered out many of the liberals who supported U.S. President Barack Obama’s biggovernment agenda. But here’s what you won’t hear: This conservative wave included some Hispanic-American voters. That fact inconveniently flouts the conventional wisdom . . . that liberal candidates can consider Hispanic votes to be in the bag. It interrupts the usual narrative. So it must be ignored or explained away. Take when Francisco Canseco mounted a serious challenge to Ciro Rodriguez’s congressio-


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nal seat in Texas’ 23rd district. An Oct. 28 New York Times article described Canseco as “a wealthy lawyer and developer who has allied himself with the anti-tax movement known as the Tea Party.” You know, those people. Rodriguez, meanwhile, was described as being “from the working-class streets of south San Antonio.” Canseco was there to “split the Latino vote and carry the banner for white conservatives angry at President Obama’s economic and healthcare policies.” This may come as a shock to the Times, but conservatives, white or otherwise, are not alone in disagreeing with the president’s policies. Conservative solutions have universal appeal. Small government, a strong defense, individual freedom . . . these principles attract voters of every age, race and economic background. And yes, that includes His-

panics. They’re part of the reason Canseco unseated Rodriguez. They helped turn Marco Rubio into a senator-elect in Florida, Brian Sandoval into the first Hispanic governor of Nevada, and Susana Martinez into the first Hispanic governor of New Mexico. “They are conservative people,” Rodriguez said of Hispanics. The idea that liberal candidates, whether Republican or Democrat, can take their support for granted is an insult, quite frankly. Many Hispanics want a government that serves the people, not the other way around. Acting as if this goal is the exclusive property of any one ethnic group is absurd. Conservative values run deep among Hispanics. Rep.-elect Canseco, after all, didn’t win by pandering. He ran on the same pocketbook issues most U.S. citizens care about . . . a failed stimulus, out-of-control

spending, and a healthcare “reform” that heralds still more government meddling. That’s why we at The Heritage Foundation recently launched, a new Spanish-language website. brings conservative solutions to Hispanics who prefer to read news in their first language. Unlike certain politicians, we don’t act as if there are “Hispanic” issues and “non-Hispanic” issues. is there to provide access to the same research available on Even after the election, though, many liberals were up to their usual tricks . . . using the Dream Act in a blatant effort to pander to Hispanics. Yet as editor Israel Ortega noted, “The irony is that Hispanics are more concerned about the economy and the stubborn unemployment rate nearing double digits nationwide than they are about il-

legal immigration.” And much of that concern is rooted in conservative goals. That’s not surprising, really. Those goals, including selfreliance and hard work, are themselves rooted in the American Dream, which all immigrants have sought for centuries in this land of opportunity. Contrast that message with the ethnic-warfare missives Hispanics usually get, such as the time when President Obama urged them to “punish our enemies.” He apologized shortly afterward, but this gaffe revealed an interesting mindset. Hispanics deserve better than such condescension. They merit more than a political ghetto. The same concerns, the same issues, that animate their votes animate U.S. citizens whose families have been here for generations. It’s time all politicians started acting like it.

1/5/2011 2:51:36 AM






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1/4/2011 9:01:01 PM


S&P 500











Stocks mixed despite positives NEW YORK — (AP) — A rally that pushed stocks up nearly 7 percent in December paused Tuesday as traders shrugged off a pickup in factory orders and sales gains at General Motors and Ford. Stocks started with gains but mostly fell throughout the day, even after a better-thanexpected report on factory orders for November. The Dow rose 20.43 points, or 0.2 percent, to end the day at 11,691.18. The broader Standard & Poor’s 500-stock index dipped 1.69 points, or 0.1 percent, to close at 1,270.20. The Nasdaq lost 10.27 points, or 0.4 percent, to 2,681.25. Investors also received minutes from the Federal Reserve’s last policy meeting in December. Fed officials said signs of economic growth were not enough to cut back its $600 billion bond-buying program, which is aimed at encouraging spending by keeping interest rates low. Fed officials said more time was needed before they would consider changing their plans. Automakers reported December and year-end sales figures. General Motors rose 2.3 percent, to $37.90, after reporting that its sales in the United States rose 6.3 percent last year. Ford Motor gained 0.8 percent, to $17.38. “These companies finally have the right cost structure and all the players on board to make them profitable businesses,” said Frank Ingarra, a manager at Hennessy Funds. “The companies that survived are benefiting from facing less competition.” Several grocery store chains, including Supervalu, Safeway and Whole Foods Market, all fell more than 3 percent after a round of analyst downgrades. Alcoa jumped 4.6 percent to $16.52 to lead the 30 stocks that make up the Dow. McDonald’s lost 3 percent to $74.31. Treasury prices were mixed after the Fed minutes were released. The yield was unchanged at 3.33 percent. Oil prices dropped Tuesday after climbing above a 26-month high, as investors wondered if the price of crude had climbed too high too fast. After weeks of mostly positive global economic news, the price of oil has risen over the last month from about $88 a barrel. “The mentality has just been buy it, buy it, buy it,” said Tom Bentz, analyst at BNP Paribas Commodity Futures. “The question everyone has is, How much further do we have to go before we start stunting the economic recovery?” Spot oil prices lost $2.17 to settle at $89.38 a barrel on the New York Mercantile Exchange. Gene McGillian, an analyst at Tradition Energy, said he believed that the momentum would continue to carry oil prices toward $95 to $100 a barrel. “What you’re starting to see is that we might have gotten a bit overextended, so more vulnerable to profit-taking,” he said.

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Curbing labor unions in an era of deficits BY STEVEN GREENHOUSE New York Times Service

Faced with growing budget deficits and restive taxpayers, elected officials from Maine to Alabama, Ohio to Arizona, are pushing new legislation to limit the power of labor unions, particularly those representing government workers, in collective bargaining and politics. State officials from both parties are wrestling with ways to curb the salaries and pensions of government employees, which typically make up a significant percentage of state budgets. On Wednesday, for example, New York’s new Democratic governor, Andrew Cuomo, is expected to call for a one-year salary freeze for state workers, a move that would save $200 million to $400 million and challenge labor’s traditional clout in Albany. But in some cases — mostly in states with Republican governors and Republican statehouse majorities — officials are seeking more far-reaching, structural changes

that would weaken the bargaining power and political influence of unions, including private sector ones. For example, Republican lawmakers in Indiana, Maine, Missouri and seven other states plan to introduce legislation that would bar private sector unions from forcing workers they represent to pay dues or fees, reducing the flow of funds into union treasuries. In Ohio, the new Republican governor, following the precedent of many other states, wants to ban strikes by public school teachers. Some new governors, most notably Scott Walker of Wisconsin, are even threatening to take away government workers’ right to form unions and bargain contracts. “We can no longer live in a society where the public employees are the haves and taxpayers who foot the bills are the have-nots,” Walker, a Republican, said in a speech. “The bottom line is that we are going to look at every le-

never become law. But those that do are likely to reduce union influence in election campaigns, with reverberations for both parties. In the 2010 elections, Republicans emerged with seven more governor’s mansions and won control of the legislature in 26 states, up from 14. That swing has put unions more on the defensive than they have been in decades. But it is not only Republicans who are seeking to rein in unions. In addition to Cuomo, California’s new Democratic governor, Jerry Brown, is promising to review the benefits received by government workers in his state, NATHANIEL BROOKS/AP which faces a more than $20 bilTALKING TOUGH: New York Gov. lion budget shortfall over the next Andrew Cuomo, is expected 18 months. to call for a one-year salary “We will also have to look at our system of pensions and how freeze for state workers. to ensure that they are transparent gal means we have to try to put and actuarially sound and fair — that balance more on the side of fair to the workers and fair to the taxpayers.” Many of the proposals may • TURN TO LABOR, 2B


OF FRIENDS AND FOES: Goldman Sachs’ Lloyd Blankfein, above, ‘friended’ Facebook, while Bank of America’s Brian Moynihan, right, avoided WiliLeaks’ Julian Assange. BY ANDREW ROSS SORKIN New York Times Service

It is time again for the annual DealBook closing dinner, where we toast and roast Wall Street and its deal makers — and look ahead to make a couple of New Year’s resolutions. I’m happy to see so many familiar faces could make it. There’s Lloyd Blankfein of Goldman Sachs with his new “friend,” Mark Zuckerberg of Facebook. (I know it was a tough year, Lloyd, but do you really have to pay for friends?) Julian Assange of WikiLeaks kindly got permission from the courts to be here, after his mansion arrest. I just reviewed the seating






DOW 30




chart and see Julian is at the table with Brian Moynihan of Bank of America. (Brian, don’t let your BlackBerry out of your sight.) Timothy Geithner, the U.S. Treasury secretary, is also joining us this year. We’ve sat you with your buddy — and I’m biting my lip, here — Elizabeth Warren because we know that you were such a proponent of her nomination to run the new Consumer Financial Protection Bureau. Next to them are Jamie Dimon of JPMorgan Chase and Vikram Pandit of Citigroup. I sat you with Paul Volcker just to keep the evening lively. I should note that U.S. President Barack Obama had planned

to be here, but he couldn’t make it back in time from his vacation in Hawaii. He sent his regrets, citing “fog” on the tarmac. He mentioned that Blankfein and John J. Mack, chairman of Morgan Stanley, would sympathize since they missed their meeting at the White House last year for the same reason. Warren Buffett, on the other hand, got here with time to spare by train, courtesy of Burlington Northern. (Ba-dum-bump.) Finally, a special thank you to Fabrice Tourre, or Fab, the suspended employee of Goldman, who volunteered to tend bar this year. The cash register is broken, so he’s keeping tabs on an abacus.

PRESIDENT’S MEN: U.S. Treasury secretary Timothy Geithner, left, and Economic Recovery Advisory Board Chairman Paul Volcker, above, are key advisors to U.S. President Barack Obama. Now onto the official toasts and roasts. EXECUTIVE OF THE YEAR: Robert H. Benmosche You have to hand it to Benmosche, chief executive of AIG. The tough-talking, sometimes-foul mouthed chief executive took over what had to be the most reviled U.S. company. AIG was supposed to be left for dead. The government was supposed to be throwing billions of dollars of taxpayers’ money down the bailout black hole. But Benmosche, who was recently found to have cancer, fought bitterly with the government • TURN TO TOAST, 2B

BofA buys back $2.5B in bad mortgages Goldman cozies up to Facebook BY BEN PROTESS AND ERIC DASH New York Times Service

Bank of America announced that it has paid more than $2.5 billion to buy back troubled mortgages and resolve related claims from Fannie Mae and Freddie Mac — deals that may prompt a wave of such settlements by big banks. The agreements center on home loans that Countrywide Financial sold to Fannie and Freddie at the height of the mortgage bubble. The government-controlled housing giants, which have suffered billions of dollars in losses in recent years, have said that the lender misrepresented the quality of the loans. Bank of America bought Countrywide in 2008. Fannie and Freddie also are looking to collect from other large lenders, including Wells Fargo, Citigroup and Washington Mutual, now owned by JPMorgan Chase. Before the Bank of America payments, Fannie and Freddie had received about $9 billion from repurchase claims, according to their financial statements. The two firms still have more than $10 billion of requests outstanding. Banks have a major incentive to cut deals with Fannie and Freddie. The two firms currently own or guarantee roughly two-thirds of all new U.S. mortgages. “There is no reason to incur

BY PETER LATTMAN New York Times Service


DAMAGE CONTROL: Bank of America has paid $2.5 billion to buy back bad mortgages from Fannie Mae and Freddie Mac. the expense and bad publicity that said Jaret Seiberg, a financial polwould come with fighting Fannie icy analyst at MF Global. Other and Freddie when the parameters of these deals are pretty clear,” • TURN TO BUYBACK, 2B

Goldman Sachs and Facebook have friended each other. In investing $450 million in the social networking giant, Goldman has established itself as the leading candidate to win the lucrative and prestigious assignment of Facebook’s initial public offering, whenever that day comes. It also positions itself to reap millions of dollars in banking fees. Goldman has already begun the process of wooing its wealthy clients to invest alongside it in Facebook, forming an investment vehicle that seeks to raise as much $1.5 billion for the Internet company. But Goldman’s bold move is also likely to focus the attention of regulators at the Securities and Exchange Commission, which in December began an inquiry into the surge in trading shares of privately held Internet companies. While the investment by Goldman is being hailed as a huge coup on Wall Street, the deal — in particular the investment pool being formed for its clients — • TURN TO TOAST, 2B

1/5/2011 6:00:19 AM





Siemens invests in expanding wind power BY JACK EWING New York Times Service

FRANKFURT, Germany — A reader of the annual report of Siemens, the German engineering giant, could easily get the idea that the company was investing in wind energy because management wants to save the planet. “All our actions and decisions are informed by the principle of sustainability,” Siemens said in the introduction to its 2010 report, a few pages after the obligatory photograph of the chief executive, Peter Loescher, and the rest of the management board. In smaller type on Page 90 is the fact that clean energy is a big moneymaker for Siemens. The renewable energy division, which

consists mostly of the wind power business, recorded a bigger sales increase than any other unit in the quarter ended Sept. 30, rising 48 percent, to ¤977 million ($1.3 billion). New orders rose 85 percent, to ¤1.45 billion, also a company best. Still, the unit’s operating profit margin of 10.6 percent lagged that of more conventional businesses, like providing equipment for fossilfuel power plants, and fell short of Siemens’ goal of a 12 percent to 16 percent margin. The unit made ¤103 million for the quarter, and ¤368 million for the fiscal year. That was about 5 percent of the total yearly profit for Siemens, whose array of products includes trains,


POWERING AHEAD: Siemens aims to become one of the world’s top three suppliers of wind power equipment. factory equipment and X-ray machines. But like any fast-growing business, there is also risk. The North American market

has slumped just as Siemens, which does most of its manufacturing in Denmark, is stepping up investments in the United States and Canada.

On Dec. 3, Siemens opened a factory in Hutchinson, Kan., to make nacelles, which sit atop wind turbine towers and hold the mechanical and generating equipment. Siemens already has a blade factory in Fort Madison, Iowa, which opened in 2007, and is planning a plant in Tillsonburg, Ontario, to supply blades for nearby wind farms. The company’s goal is to become one of the top three suppliers of wind power equipment in the world, up from eighth or ninth now. To have any chance, however, requires a foothold in China, the world’s largest market for wind power, and one of the most difficult to enter because of government policies that favor local companies. In November,

Siemens opened a factory in Shanghai, a city on the water and a good place from which to ship equipment for offshore wind parks, a niche in which Siemens is the top equipment supplier. Siemens is also planning factories in the emerging markets of India and Russia as well as in Britain, where the government is strongly backing the development of offshore wind projects. In the United States, makers of wind-power equipment have had to contend with fickle government incentives and a plunge in the price of natural gas, which made wind energy less competitive. In addition, the financial crisis has made it harder for smaller operators to get loans to build wind parks.

Deficits force labor union curbs A roast and toast • LABOR, FROM 1B

taxpayers,” Brown said in his inaugural speech Monday. Many of the state officials pushing for union-related changes say they want to restore some balance, arguing that unions have become too powerful, skewing political campaigns with their large war chests and throwing state budgets off kilter with their expensive pension plans. But labor leaders view these efforts as political retaliation by Republicans upset that unions recently spent more than $200 million to defeat Republican candidates. “I see this as payback for the role we played in the 2010 elections,” said Gerald McEntee, president of the American Federation of State, County and Municipal Employees, the main union of state employees. McEntee said in October that his union was spending more than $90 million on the campaign, largely to help Democrats.

“Now there’s a bull’s-eye on our back, and they’re out to inflict pain,” he said. In an internal memorandum, the AFL-CIO warned that in 16 states, Republican lawmakers would seek to starve public sector unions of money by requiring each government worker to “opt in” before that person’s dues money could be used for political activities. “In the long run, if these measures deprive unions of resources, it will cut them off at their knees. They’ll melt away,” said Charles Wilson, a law professor at Ohio State University. Of all the new governors, John Kasich, Republican of Ohio, appears to be planning the most comprehensive assault against unions. Kasich is proposing to take away the right of 14,000 state-financed child care and home care workers to unionize. He also wants to ban strikes by teachers, much the way some states bar strikes by the police and firefighters. “If they want to strike, they should be fired,” Ka-

sich said in a speech. “They’ve got good jobs, they’ve got high pay, they get good benefits, a great retirement. What are they striking for?” Kasich also wants to eliminate a requirement that the state pay unionscale wages to construction workers on public contracts, even if the contractors are nonunion. In addition, he would like to ban the use of binding arbitration to settle disputes between the state and unions representing government employees. Labor leaders, who argue that government employees are not overpaid, worry that many of these measures have a much better chance of enactment than in previous years because of Republican electoral gains and a reduction in sympathy for government workers from taxpayers ravaged by the recession. The AFL-CIO warned labor leaders, “With the enormous losses in state legislatures around the country, we will face not only more

attacks on working families and their unions — we will face more serious attacks, particularly in the formerly blue or purple states that are now controlled by a Republican trifecta.” It pointed in particular to six states, including several former union strongholds, where Republicans control the governor’s mansion and both houses of the legislature: Indiana, Maine, Michigan, Ohio, Pennsylvania and Wisconsin. Naomi Walker, the AFLCIO’s director of state government relations, said many voters would oppose the anti-union efforts. “I think folks in these states are going to ask whether this is the right time to weaken unions when corporations are amassing more power than ever,” she said. “We’ve been fighting against privatizing Social Security and sending jobs offshore and to get the best deal for the unemployed. It would be a lot easier for Republicans if unions weren’t there to throw up these roadblocks.”

Goldman Sachs cozies up to Facebook • GOLDMAN, FROM 1B

could become a lightning rod for regulators and policy makers as they examine the growing shadow market in Facebook shares. For Goldman, the investment in Facebook is in many ways a return to the firm’s roots. Long before Facebook became a social and cultural phenomenon, Goldman was “friending” the hottest U.S. companies and their chief executives, from Sears Roebuck in the 1900s to Ford in the 1950s to eBay in the 1990s. By collecting so many important friends, and obsessively tending to those relationships, Goldman generates big fees. In addition to the potential banking fees generated by an initial public offering of Facebook, there is the billions of dollars of unlocked paper wealth realized by Mark Zuckerberg, Facebook’s 26-year-old chief, and his fellow executives. Goldman, as a lead Facebook investor, will most likely have a leg up in winning the assignment to manage that money, too.

The firm’s Facebook investment came together over the last month, according to a person involved in the deal who spoke only on the condition of anonymity. After the spike in trading in Facebook over the last several months — in a November auction, Facebook shares traded at a $56 billion valuation — Zuckerberg expressed an interest in raising money to legitimize the $50 billion valuation. Zuckerberg felt that gaining the imprimatur of a major investor at such lofty levels would validate Facebook in the eyes of its Silicon Valley competitors with whom it is negotiating deals, this person said. Helping play matchmaker was Yuri Milner, the chief executive of DST Global, a Russian firm that invested $50 million alongside Goldman in the transaction. Goldman has a close relationship with DST and Milner, a Russian businessman who has emerged as a leading venture capital investor in Internet companies., the publicly trad-

ed sibling of DST Global, has an existing stake in Facebook, as well as large positions in Groupon and Zynga, two other popular Web-based businesses. Goldman was a lead underwriter of’s successful $1 billion initial public offering on the London Stock Exchange in November. The Facebook investment, made from Goldman’s balance sheet, also sheds light on the firm’s private equity strategy in the wake of the Dodd-Frank regulatory overhaul. Although the Facebook investment represents a negligible percentage of Goldman’s roughly $900 billion balance sheet, it is symbolically significant because it had been unclear whether the firm would, after the financial crisis, be using its balance sheet to make these types of illiquid, risky investments. A Goldman spokesman declined to comment. Perhaps even more intriguing than Goldman’s direct stake in Facebook is the “special purpose vehicle” that it is creating to allow its

wealthy clients to invest in Facebook alongside the firm. Goldman is charging stiff fees for the privilege — a 4 percent placement fee and a 5 percent cut of the investment’s profits, according to two people with direct knowledge of the deal. Despite the rich price of entry, the firm has told clients it suspects the deal will be substantially oversubscribed. Clients of Goldman will have to invest a minimum of $2 million and will be prohibited from selling their shares until 2013, according to one of those people. The firm has warned prospective investors that if they invest, they will not be able to trade Facebook stock. Goldman did not pioneer this type of investment structure. Over the last several months, a number of smaller Wall Street brokerages have formed vehicles to enable individual investors to acquire shares in private Internet companies like Facebook and Twitter. Two of these brokerages are EB Exchange Funds of San Francisco and J.P. Turner & Company in Atlanta.

to Wall Street • TOAST, FROM 1B

to run the company his way — and for the most part, he and taxpayers have won. Shares of AIG rose 40 percent in December alone. While there is a long way to go, the government is in the black for now. The AIG bailout will never be popular. But if Benmosche can keep the insurer on the same path, he should be. GREAT CLOTHES, BUT . . . Mickey Drexler The prince merchant did an outstanding job reviving the J. Crew Group. Business schools should study your turnaround strategy. But your planned buyout of J. Crew, in conjunction with TPG Capital and Leonard Green & Partners, should be a case study in how not to conduct yourself in a deal. According to J. Crew’s own filing, you held takeover talks for seven weeks before telling the board about your plan. The deal may ultimately be right for shareholders. After all, they’re paying a 23 percent premium, and the company’s earnings have been lousy of late. But for a guy who understands the importance of good looks, the sale process reeks of poor quality. MAKING BAD MUSIC: Guy Hands, Terra Firma The private equity mogul, who owns EMI, brought one of the most bone-headed lawsuits in history against Citigroup this year. Hands, an outspoken investor who often says things that others won’t, argued that Citigroup hoodwinked him into buying EMI at an artificially inflated price. We should thank Hands for pursuing the case since it offered a peak behind the deal-making curtain. But given that Citigroup was cleared of any wrongdoing, Hands would have been better off spending his time fixing EMI or selling it to Warner Music, as everyone has hoped for years. HOW NOT TO DO A DEAL: BHP Billiton Marius Kloppers, BHP Billiton’s chief executive, pursued the largest deal of the year, a nearly $40 billion

hostile bid for Potash, the biggest fertilizer company in the world. For months, BHP’s chairman Jacques Nasser, Ford’s former chief executive, crisscrossed the world on a road show, selling investors on the deal. Then the Canadian government blocked the deal on the grounds that Potash was a strategic resource. Sure, it was a big surprise. But Rule No. 1 of going hostile is to bid only if you know you can get to the finish line. That means doing all the ground work in advance. Consider this lesson: Chinese investors pondered making their own bid for Potash, but wisely begged off when they did not get the wink from the Canadian government. YOU’VE GOT GUTS: Andrew Mason Mason, the 30-year-old chief executive of Groupon, told Google to take its $6 billion offer and forget it. Most of Wall Street thought he was nuts. He may be. But give him credit for believing in his vision to the bitter end. After rejecting Google, his online coupon company is about to raise nearly $1 billion and is hoping to pursue an initial public offering by the end of 2011. Several years ago, at the annual DealBook closing bell, I chided Facebook’s Zuckerberg for walking away from a $1 billion offer from Yahoo. Boy, was I wrong. Mason could be following Zuckerberg’s example — or not. We’ll revisit this subject at next year’s dinner. BETTER BONUSES: Lloyd Blankfein It’s unpopular to say anything nice about Goldman Sachs’s over-the-top bonuses. But this year, Goldman Sachs is set to hand out 40 percent of revenue, far less than in previous years, and the firm plans to tie the money directly to future earnings and stock performance. The move won’t satisfy the company’s fiercest critics, but it is at least a step in the right direction and a nod to the public mood. Let’s hope that other Wall Street firms that historically had “Goldman Envy” take note of the firm’s bonuses, too.

BofA buys back $2.5 billion in bad mortages from Fannie, Freddie • BUYBACK, FROM 1B

banks seem to be moving in the same direction as Bank of America. “The whole repayment issue has been a cloud hanging over the banking industry,” said Guy D. Cecala, publisher of the industry newsletter Inside Mortgage Finance. “I would expect that everyone will be looking to settle now.” Shares of Bank of America rose more than 6 percent Monday. Fannie and Freddie are

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not the only ones asking for their money back. The banking industry, according to various estimates, ultimately could spend $20 billion to $150 billion to buy back $2 trillion of bad loans from Fannie and Freddie, bond insurance companies and private investors. Bond insurers, including MBIA, guaranteed mortgages while big investors bought securities backed by home loans. Many of the original deals with insurers and investors required lenders to

buy back mortgages that failed to meet certain underwriting criteria. Bank of America, the nation’s biggest bank, may be most exposed. The bank is facing socalled put-back claims from insurance companies and more than a dozen private investors that bought roughly 160 troubled mortgage securities from Countrywide. Among those scorned: Pacific Investment Management, the big bond firm; BlackRock, the large money manager; and the

Federal Reserve Bank of New York. Allstate separately sued Bank of America on Dec. 27 over $700 million in mortgage-backed securities that Countrywide sold to the insurance company. Allstate said that the bank had poor lending standards and should have known that the loans would go bad. The bank originally vowed to challenge such claims. In December, however, the bank disclosed that it was in discussions to

settle with some private investors. Such deals, though, may be harder to strike. While Fannie and Freddie imposed strict terms on mortgage purchases, other investors often made far murkier arrangements. Additional requirements on private deals — like needing the consent of as many as 25 percent of investors before taking legal action — may also make it more difficult to bring cases. Settlement discussions may drag on for years. As part of Monday’s

announcement, Bank of America said it made a $1.34 billion net cash payment to Fannie Mae and another to Freddie Mac for $1.28 billion on Dec. 31. Bank of America said the deals with Fannie and Freddie would resolve nearly all the claims against Countrywide but not their claims against Bank of America. “These actions resolve substantial legacy issues in the best interest of our shareholders,” the chief executive, Brian T. Moynihan, said in a statement.

1/5/2011 5:55:51 AM






Deal brings freedom for Facebook


BY MIGUEL HELFT New York Times Service


MISSED CHANCE: Despite ample notice of an increase in taxes on cigarettes in Japan, Pfizer did not produce enough of the anti-smoking drug, Chantix, which is sold as Champix in the country.

Pfizer overwhelmed by demand in Japan From Miami Herald Wire Services

SAN FRANCISCO — In Silicon Valley, going public used to be the ultimate rite of passage for a start-up — a sign it had arrived. No more. With its $500 million infusion from Goldman Sachs and other investors, Facebook is now flush with cash and a market value of about $50 billion, giving it the financial muscle it needs to compete with better-heeled rivals like Google. And Facebook hopes for an even bigger advantage from the deal, the ability to delay an initial public offering. That would allow it to remain free of government regulation and from the volatility of Wall Street. It would also allow Mark Zuckerberg, the company’s chief executive, to retain near absolute control over the company

he co-founded in a Harvard dorm room in 2004. This strategy was unthinkable in Silicon Valley just a few years ago. Lots of people would stand in line to buy shares in Facebook, but for now, only an exclusive few — wealthy clients of Goldman Sachs — will be able to. On Monday, Goldman e-mailed certain clients, offering them the chance to invest in the company. That offer is the latest sign of the emergence of active markets in the shares of closely held companies. Those markets are helping successful start-ups like Facebook develop the financial wherewithal to compete in the big leagues of business. They have also become an avenue for venture capitalists and start-up employees to cash in their stock, turning

many overworked engineers into instant millionaires. And so a young mogul like Zuckerberg, the world’s youngest billionaire at age 26, can enjoy many of the benefits of going public without having to tie the knot with Wall Street. “Mark would absolutely prefer not have an IPO until he absolutely has to,” said David Kirkpatrick, the author of The Facebook Effect. “He absolutely doesn’t want to sacrifice control because he believes that his vision is necessary to keep powering the company forward.” Zuckerberg’s quest to keep Facebook private, though, will not last forever. Federal regulations require companies with 500 or more investors to disclose their financial results, eliminating one of the principal advantages of staying private. The Goldman Sachs in-

vestment, for a stake of less than 1 percent in the company, is formulated in part to skirt those rules. But it may help for only a limited amount of time. The Securities and Exchange Commission is investigating private company trades in secondary markets, and regulators may decide that what is good for Facebook is not necessarily good for the investing public. Still, the huge cash infusion is a coup both for Zuckerberg, who is said to own about a quarter of the company, and Facebook. It also puts Facebook, which makes most of its money through advertising, on a path to surpass Google, by some measures, as the most successful Internet company to come out of Silicon Valley. Facebook is on track to bring in as much as $2 billion in revenue this year.

When the Japanese government raised the tax on cigarettes on Oct. 1, it could have started a public health revolution in this land of heavy smokers. The tax increase should also have been a bonanza for Pfizer, the world’s biggest pharmaceutical company, which makes the leading drug to help smokers break the habit. Instead, it became a missed opportunity. Despite ample notice of the change, Pfizer failed to produce enough of the drug, Chantix, which is sold as Champix in Japan. When tens of thousands of would-be quitters rushed to their doctors for prescriptions, Pfizer was overwhelmed. Less than two weeks after the tax increase went into effect, the company was forced to suspend sales of the drug to new patients until it could ramp up production. • TECHNOLOGY MICROSOFT SAYS HOTMAIL GLITCH FIXED Microsoft said it has resolved a glitch that caused thousands of Hotmail users to temporarily lose all of their e-mails. A chorus of frantic people had posted complaints to the company’s online message board over the weekend, saying their e-mails had disappeared. In some cases, emails were mistakenly sent to their deleted mail folders. Chris Jones, senior vice president of Microsoft’s Windows Live business, said in a blog post Monday that 17,355 people lost their e-mails starting on Thursday. By Sunday evening, the messages had been restored. • AVIATION EASYJET CONFIRMS ORDERS FOR 15 AIRBUS A320S Budget airline easyJet has exercised options to place firm orders for 15 A320 aircraft from Airbus, to be delivered between 2012 and 2014. The U.K.-based regional carrier said Tuesday it also has upgraded contracted deliveries for 20 A319 planes to the larger A320. And it says it has taken options for 33 more A320 planes. The A320 carries a maximum of 180 passengers, 20 more than the A319. • CUBA STATE WORKER LAYOFFS BEGIN, OFFICIAL SAYS The head of the Cuban Workers Confederation says the first layoffs have begun in the communist government’s program to cut the jobs of 500,000 state workers. Cuban state-run media quotes Salvador Valdes as saying the initial layoffs are occurring in the sugar, agriculture, tourism, health and construction sectors. Cuban media, including Monday’s edition of the weekly Trabajadores, say Valdes made the comments during a meeting with workers’ representatives but didn’t specify when it took place. The layoffs are to affect 10 percent of Cuba’s government work force and are supposed to finish by March. The job cuts are part of an economic overhaul aimed at slashing government expenditures. • INDIA POSSIBLE TAX FRAUD BY KRAFT UNDER SCRUTINY Indian officials are investigating whether Kraft Foods evaded taxes in its $19 billion takeover of Cadbury in 2010. India’s ministry of finance is examining Kraft’s tax liabilities related to the takeover, following a public interest lawsuit filed in 2010 in the Delhi High Court. In the suit, a New Delhi-based lawyer asserted that Kraft had “completely and illegally avoided” tax liabilities related to the sale of shares and capital assets in India, which had caused “substantial loss to the Indian economy.” • NEW YORK CITY EX-MADOFF SECRETARY SEEKS REDUCED BAIL Jailed Ponzi scheme king Bernard Madoff’s former secretary has asked to be released on bail, saying the government has seized control of her finances and eliminated any means to flee before a New York trial. Annette Bongiorno made the request Monday in a filing in federal court in Manhattan, N.Y. Her lawyers say their 62-year-old client should be freed on bail because electronic monitoring and frozen finances would eliminate any risk of flight. • PHILADELPHIA JUDGE UPHOLDS GROPING SUIT AGAINST DISNEY A Pennsylvania woman who claims Donald Duck groped her at Disney’s Epcot theme park can have her day in court, a federal judge has ruled. Disney must defend itself against April Magolon’s claims that the character grabbed her breast as she held her child at the Walt Disney World park and then joked about it. Magolon, 27, of Upper Darby, claims the May 2008 encounter left her with post-traumatic stress in the form of nightmares, digestive problems and other permanent injuries. Her lawsuit also charges that Disney parks have a history of fondling complaints involving workers, and that Disney has “condoned” their actions, putting profits over public safety.

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COURTING BATTLE: Cuba’s government-owned tobacco company is suing Ismail Houmani, at left, in federal court in Detroit, claiming the name of his four shops, La Casa De La Habana, top, is illegal because it’s too similar to its own franchised shops, known around the world as La Casa del Habano.

Cuba sues U.S. tobacco shop over name BY ED WHITE Associated Press

PLYMOUTH, Mich. — A cigar lounge in suburban Detroit is decorated with paintings and photos of famous people with a stogie: John F. Kennedy, Winston Churchill, even the 1950s Cuban revolutionary Che Guevara. “We have only one thing in common,” said owner Ismail Houmani, a U.S. war veteran, pointing at a cigar in the fingers of Guevara, a Marxist rebel. Cuba, however, believes the shop has too much common with its own famous cigar business. Cuba’s government-owned tobacco company is suing Houmani in federal court in Detroit, claiming the name of his four shops, La Casa De La Habana, is illegal because it’s too similar to its own franchised shops, known around the world as La Casa del Habano. Cuba, of course, can’t do business in the United States because of a nearly 50-yearold trade embargo imposed after Fidel Castro, with Guevara’s help, turned the Caribbean island into a socialist

state. Nonetheless, Cubatabaco claims it still has a right to protect its U.S. trademark even if it can’t export prized Cuban cigars to U.S. shores. “I love cases like this,” U.S. District Judge Stephen Murphy III told both sides in 2010. “I find it to be extremely interesting and challenging.” Houmani’s lawyer, Brad Smith, wonders why Cuba would care about a Michigan cigar lounge. “Small potatoes,” he said in an interview. Cubatabaco’s lawyer, David Goldstein of New York, said in court that a trademark must be protected or “what I have is a worthless piece of paper.” In Plymouth, a suburb west of Detroit, La Casa De La Habana has been open about a decade. A climatecontrolled humidor displays dozens of cigars, some costing $38 each, from Honduras, the Dominican Republic and Nicaragua. There is walk-in business, but customers also can have their own gymlocker-sized humidor with a nameplate for $100 a month. There are televisions,

leather couches and an espresso bar. In downtown Detroit, Houmani runs a 7,000-square-foot location offering martinis, live music and local handmade cigars stuffed with imported tobacco. “Over a cigar, you can meet some interesting people — doctors, lawyers, judges, movie actors. They want to sit down and relax,” said Houmani, 42, who immigrated to Toledo, Ohio, from Lebanon when he was 18. “I wanted to create something that’s really unique.” He said he was thinking about Cuba’s reputation for Latin jazz, rum and cigars when he chose the name La Casa De La Habana, which means “The House of Havana” in Spanish. Houmani notes that “Habano,” the word used in the name of Cuban shops, refers to a Havana cigar. “I’m not selling or advertising Cuban cigars,” he said. International agreements allow governmentcontrolled businesses like Cuba’s to register trademarks in the United States,

even when dormant under an economic embargo. Still, Smith said the lawsuit should be governed by a simple rule: “You use it or lose it.” A trademark expert at the University of Michigan law school believes Cubatabaco has a strong case for infringement. “Cuba’s got reason to hope that it will be able to enter the U.S. market within the foreseeable future,” Jessica Litman said. “Its mark is pretty valuable, and the potential for confusion seems real.” The judge has urged each side to settle the dispute out of court. Houmani concedes he may have to change the name of his business, although he would prefer to keep “La Casa” in it. He has much admiration for Cuba’s cigars, despite the lawsuit and that country’s communist government. “It’s the best tobacco in the world because of the soil. It’s God’s gift to the Cubans,” said Houmani, who has smoked Cuban cigars during trips to the Middle East. “As cigar makers, we don’t look at political affiliations.”

Deal-makers pulled out their checkbooks in 2010 BY MICHAEL J. de la MERCED AND JEFFREY CANE New York Times Service

The most significant development in mergers and acquisitions in 2010 may be not what actually happened but what deal-makers think happened — a return of confidence. That sometimes fickle state of mind encouraged the first annual gain in dealmaking worldwide since the financial crisis. Global dollar volume in announced mergers and acquisitions rose 23.1 percent in 2010, to $2.4 trillion, according to Thomson Reuters data. In the United States, merger volume rose 14.2 percent, to $822 billion.

Reasons for the renewed optimism include continued cheap credit, huge piles of corporate cash and gains in the U.S. stock market. Private equity firms are under pressure to use their buyout money and to find exits from investments in their existing portfolios. And a number of companies that cut costs throughout the downturn are discovering that acquisitions may be their only option for growth when confronted with a stubbornly slow recovery. Another sign of optimism is the rise in premiums being offered for publicly traded companies. With the major U.S. market measures just returning to what their levels were before the collapse

of Lehman Brothers in 2008, many companies’ stocks are seen as offering relative bargains, with suitors willing to pay substantially more than the current market value. The industry that received the highest premiums in 2010 was the one most battered during the crisis — financials, which had an average premium of 55 percent on offers in 2010, according to Thomson Reuters data. Still, merger activity is far off the peak of 2007, and no one expects a return to exuberant deal-making anytime soon. “I think that this is not an environment for excessive risk-taking,” said Robert Spatt, a partner with the Wall

Street law firm Simpson, Thacher & Bartlett. “But we’re out of the bunker, and there’s a lot of stuff in the pipeline.” Gordon Dyal, the global head of mergers and acquisitions at Goldman Sachs, agreed. “We don’t expect to see a dramatic upswing, but looking at our backlog, we see continued, steady growth,” he said. In the U.S., energy and power was the dominant sector for deal-making, more than doubling its market share to 28.1 percent in 2010 from 12.5 percent in the previous year, according to the Thomson Reuters data. Health care was the secondbiggest sector of deal activity in the United States.

1/5/2011 3:45:38 AM



DOW 11,691.18



S&P 500 1,270.20






6-MO T-BILLS .18%


30-YR T-BONDS 4.43%


Dow Jones industrials


Nasdaq composite


Close: 11,691.18 Change: 20.43 (0.2%)


Close: 2,681.25 Change: -10.27 (-0.4%)








11,000 2,400 10,500 2,200

10,000 9,500




DOW DOW Trans. DOW Util. NYSE Comp. NASDAQ S&P 100 S&P 500 S&P 400 Wilshire 5000 Russell 2000

DOI;D7I: 1,977 1,870 851 1803 142 3


The dollar rose against the 16nation euro and the Japanese yen Tuesday after a report on U.S. factory orders gave traders encouragement that the economy improved at the end of 2010.



Prime Rate Fed Funds Target 3-month T-bill 6-month T-bill 52-wk T-bill 2-year T-note 5-year T-note 10-year T-note 30-year T-bond

The yield on the 10-year Treasury note rose to 3.34 percent Tuesday. Yields affect interest rates on consumer loans.

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IjeYaie\Iekj^ <beh_ZW?dj[h[ij D7C;:?LBWij9^]9^] AMR (AMR) AT&T Inc (T) Alico (ALCO) AmExp (AXP) Assurant (AIZ) AutoNatn (AN) Avatar (AVTR) BB&T Cp (BBT) BE Aero (BEAV) BkofAm (BAC) BkAtl A h (BBX) BeasleyB (BBGI) Benihana (BNHN) BenihanaA (BNHNA) Bluegreen (BXG) Carnival (CCL) CatalystPh (CPRX) CerusCp (CERS) Chicos (CHS) CitrixSys (CTXS) Comcast (CMCSA) CnsTom (CTO) Continucre (CNU) CrssCtryHl (CCRN) Darden (DRI) Disney (DIS) Dreams (DRJ) Dycom (DY) h (DIET) EqtyOne (EQY) FedExCp (FDX) Flanign (BDL) GeoGrp (GEO) HackettGp (HCKT) HarrisCorp (HRS) Heico s (HEI) Heico A s (HEI/A) IntlSpdw (ISCA) IntervalLs (IILG) IsleCapri (ISLE) IvaxDiag (IVD) LadThalFn (LTS) LennarA (LEN) Macys (M) MAKO Srg (MAKO) MarineMx (HZO) Mastec (MTZ) McClatchy (MNI) Mednax (MD) NABI Bio (NABI) NatlBevrg (FIZZ) FPL Group (NEE) OcwenFn (OCN) OfficeDpt (ODP) OpkoHlth (OPK) Parlux (PARL) PerryEllis (PERY) PetMed (PETS) Protalix (PLX) RJamesFn (RJF) RepubSvc (RSG) RylCarb (RCL) Ryder (R) SBA Com (SBAC) SFN Grp (SFN) StJoe (JOE) SeacorHld (CKH) SpanBdc h (SBSA) SunTrst (STI) TIB Fn rs (TIBBD) TenetHlth (THC) Terremk (TMRK) TevaPhrm (TEVA) Tongjitng (TCM) TradeStatn (TRAD) 21CentHld (TCHC) UltimSoft (ULTI) UPS B (UPS) VectorGp (VGR) Vonage (VG) Watsco (WSO) Winn-Dixie (WINN) WorldFuel (INT)

... 1.72f 0.10e 0.72 0.64 ... ... 0.60 ... 0.04 ... ... ... ... ... 0.40 ... ... 0.16 ... 0.38 0.04 ... ... 1.28 0.40f ... ... ... 0.88 0.48 0.10e ... ... 1.00 0.12 0.12 0.16f ... ... ... ... 0.16 0.20 ... ... ... ... ... ... 2.30e 2.00 ... ... ... ... ... 0.50 ... 0.52f 0.80 ... 1.08 ... ... ... 15.00e ... 0.04 ... ... ... 0.75e ... ... ... ... 1.88 1.60b ... 2.08 ... 0.15

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8.10 29.88 24.54 43.95 38.28 28.04 18.80 26.84 37.72 14.24 1.23 5.96 8.02 8.04 3.30 47.09 1.28 2.40 11.89 67.07 22.44 29.10 4.60 8.31 46.70 38.99 2.62 14.64 .50 18.15 93.12 8.96 23.97 3.60 45.44 52.23 37.90 26.34 16.14 10.08 .60 1.18 18.62 25.09 14.60 8.76 14.37 4.87 68.84 5.65 13.40 52.75 9.50 5.81 3.88 2.87 26.76 15.97 10.33 32.43 29.91 48.39 51.95 41.02 9.66 22.08 101.61 .81 29.67 22.48 6.84 12.69 52.52 4.30 6.96 3.27 48.19 72.79 17.43 2.30 62.22 6.84 36.60

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24.70 24.00

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14.29 14.24

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38.42 20.43 34.20 23.95 32.37 23.82 58.66 9.49 16.55 23.64

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116.99 116.98 40.46 10.74 10.74 5.72 51.97 123.17 9.92 25.56 10.41 13.01 116.16 116.16 28.80 19.51 22.20 19.67 20.45 13.29 11.00 15.87 66.22 68.71 10.77 10.77 19.19 12.48 22.22 13.18 12.69 10.59 10.59 10.59 10.59 15.86 31.85 31.85 31.84 21.74 52.67 31.33 54.11 46.12 13.63 25.99

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D;J'OH O;IJFLI9>=7=E Unleaded Gas (gal) 2.41 2.42 -.01 2.10 Crude Oil (bbl) 89.38 91.55 -2.17 81.51 Gold (oz) 1378.50 1422.60 -44.10 1117.70 Platinum (oz) 1743.10 1781.10 -38.00 1517.30 Silver (oz) 29.49 31.09 -1.60 17.44 Coffee (lb) 2.35 2.39 -.04 1.42 Orange Juice (lb) 1.78 1.81 -.03 1.29 Sugar (lb) 0.31 0.32 -.01 .28

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DWc[ Cimarex CinnFin Cintas Cisco Citigrp CitiTdecs CityNC CliffsNRs Clorox Coach CobaltIEn CocaCE CCFemsa CCHellenic CocaCl CognizTech ColgPal Comc spcl Comerica CmcBMO ComScop CmtyHlt CBD-Pao s CompssMn CompSci ConAgra ConchoRes ConocPhil ConsolEngy ConEd ConstellA ConstellEn ContlRes Cooper Ind Copart Copel CoreLab s CornPdts Corning Corpbnca Cosan Ltd Costco Covance CoventryH Covidien Credicp CredSuiss Cree Inc CrwnCstle CrownHold s CullenFr Cummins CypSemi DPL DR Horton DTE Danaher s DaVita DeVry DeckOut s Deere DelMnte Delhaize Dell Inc DeltaAir DenburyR Dndreon Dentsply DeutschBk DevelDiv DevonE Diageo DiaOffs DicksSptg DigitalRlt DirecTV A Discover DiscCm A DiscCm C DishNetwk DrReddy DolbyLab DollarGen DllrTree s DomRescs Domtar grs Donldson DonlleyRR Dover DowChm DrPepSnap DresserR Dril-Quip DuPont DukeEngy DukeRlty DunBrad ETrade rs eBay EMC Cp ENI EOG Res EQT Corp EstWstBcp EastChm Eaton EatnVan EVTxMGlo Ecolab Ecopetrol EdisonInt EdwLfSci s ElPasoCp ElPasoPpl Elan EldorGld g ElectArts EAndinA EAndinB Embraer

BWij 9^] 88.85 32.05 27.67 20.52 4.90 140.10 61.54 85.23 61.57 52.28 13.25 24.81 82.29 25.77 63.87 74.16 79.68 21.11 43.36 39.68 31.37 37.92 42.49 87.97 50.85 22.64 88.01 67.88 50.69 49.70 21.47 31.32 57.40 58.47 37.45 25.05 88.92 45.59 19.07 86.83 14.57 72.33 50.84 27.68 47.06 118.52 41.43 67.69 43.35 33.84 44.48 60.91 111.60 18.24 25.79 12.01 45.83 46.92 70.32 47.63 78.70 83.02 18.88 74.97 13.69 12.53 19.06 35.49 34.71 53.66 13.75 78.20 74.83 64.74 36.99 50.98 41.34 18.62 41.43 36.24 20.26 37.42 67.53 30.54 54.74 43.14 77.56 58.15 17.73 58.79 34.74 35.50 42.02 75.46 49.89 17.95 12.57 80.57 16.37 28.47 23.10 44.22 92.14 45.04 19.61 86.85 103.22 30.17 10.67 49.76 41.70 38.91 80.27 13.64 33.42 5.93 17.85 16.38 23.83 29.70 29.50

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BWij 9^] 56.50 55.51 63.23 55.86 29.40 35.97 50.92 72.98 39.05 51.95 31.66 22.51 50.96 73.11 41.76 35.83 82.35 51.20 11.36 65.74 115.30 81.73 84.03 19.42 42.47 24.42 54.72 56.12 74.90 132.07 29.08 78.56 86.25 93.51 49.31 59.82 78.39 16.25 13.63 27.95 14.73 14.04 28.53 131.12 37.89 58.44 7.95 118.02 64.55 23.71 56.68 19.24 17.38 52.77 31.36 37.17 60.33 72.59 34.58 21.32 112.15 118.75 57.09 48.00 9.62 14.54 29.10 22.50 15.14 21.96 68.98 31.07 33.34 70.29 18.61 15.33 35.69 37.90 15.48 29.82 51.60 13.49 71.57 14.59 28.14 36.99 39.86 45.87 16.31 17.49 44.53 173.08 88.83 12.32 602.12 139.23 19.64 33.60 26.03 20.18 45.63 29.18 37.18 164.57 52.07 39.55 52.29 34.86 45.96 12.12 27.94 46.01 47.75 49.30 48.11 62.04 68.34 46.37 14.54 77.75 43.63

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DWc[ Hitachi Hologic HomeDp Honda HonwllIntl Hormel Hospira HospPT HostHotls HuanPwr HubbelB HudsCity HumGen Humana HuntJB HuntBnk Huntsmn IAMGld g ICICI Bk IdexxLabs IHS Inc ING ITC Hold ITT Corp Icahn Ent IDEX ITW Illumina ImpOil gs IndoTel Indosat Inergy Informat InfosysT IngerRd IngrmM IntegrysE Intel IntcntlEx IntCtlHtl IBM IntFlav IntlGame IntPap IntTower g InterOil g Interpublic Intuit IntSurg Invesco IronMtn ItauUnibH IvanhM g JDS Uniph JPMorgCh Jabil JacobsEng JHardie Jarden Jefferies JohnJn JohnsnCtl JonesLL JoyGlbl JnprNtwk KB FnclGp KBR Inc KKR n KLA Tnc KT Corp KC Southn Kellogg Kennamtl Keycorp KimbClk Kimco KindME KindMM KineticC KingPhrm Kinross g Kohls KoreaElc Kraft Kroger Kubota Kyocera L-3 Com LAN Air LG Display LKQ Corp LPL Inv n LSI Corp LabCp LamResrch LamarAdv LVSands Lazard LearCorp LegacyRes LeggMason LeggPlat LeucNatl LibGlobA LibGlobC LibtyMIntA LibMCapA LibStarzA LibtProp LifeTech LillyEli Limited LincNat LinearTch LinnEngy LockhdM Loews Logitech Lorillard Lowes Lubrizol

BWij 9^] 53.54 19.08 34.67 39.60 53.48 50.68 54.91 23.22 18.08 21.56 60.37 12.76 24.16 55.30 41.26 7.19 15.81 17.82 48.31 68.88 80.08 9.98 63.55 52.23 35.73 38.66 54.06 64.23 40.68 35.49 30.50 39.37 45.45 76.88 46.99 18.92 48.79 21.15 117.97 19.77 147.64 55.71 17.96 27.80 9.39 76.77 10.47 49.29 271.70 24.41 24.52 24.39 23.82 14.78 44.16 20.80 46.04 34.30 31.52 26.42 63.35 39.68 84.39 88.46 37.16 54.84 29.62 14.45 38.48 20.38 48.82 51.29 40.38 8.96 62.90 17.99 69.85 65.78 41.79 14.09 18.19 54.34 13.29 31.60 21.70 47.55 103.74 71.27 30.32 18.11 23.18 33.67 6.01 90.12 49.41 40.11 47.73 39.42 100.38 28.63 36.24 23.03 29.77 36.48 34.63 15.83 65.11 68.36 31.80 56.73 35.03 29.92 29.57 34.53 37.67 70.31 39.30 18.43 80.76 24.56 105.23

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BWij 9^] 67.20 30.19 34.87 87.00 20.68 15.34 64.24 38.80 47.08 56.08 55.99 41.75 63.30 17.31 37.38 390.08 43.33 41.16 27.73 6.99 86.98 18.12 12.85 55.08 223.70 25.28 23.58 46.08 20.22 74.31 36.84 71.82 46.35 61.20 26.78 32.75 61.76 37.10 6.78 70.64 36.35 45.83 13.92 151.56 34.72 8.44 43.68 28.09 96.10 28.25 5.43 334.65 3.85 20.70 57.13 48.84 61.80 69.07 24.16 26.64 28.47 75.00 74.92 21.55 43.22 19.84 17.46 14.08 684.64 22.01 31.03 22.72 30.28 23.92 1.67 67.20 44.88 37.89 66.80 26.19 13.85 35.87 33.70 56.49 13.94 57.38 36.64 181.37 7.42 9.46 105.12 18.80 18.10 71.28 59.08 14.99 16.52 22.73 52.75 17.86 25.73 83.97 22.74 35.75 84.40 10.86 6.39 26.06 93.30 42.57 63.39 31.40 31.90 56.00 65.36 13.42 58.40 114.78 42.32 18.82 43.83

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DWc[ NustarEn Nvidia OGE Engy OReillyAu OcciPet Oceaneer OilStates OldRepub Omncre Omnicom OnSmcnd ONEOK ONEOK Pt Oracle Orix OshkoshCp OwensCorn OwensIll PG&E Cp PNC POSCO PPG PPL Corp Paccar PallCorp PanASlv Panasonic PaneraBrd ParkerHan PrtnrCm PartnerRe Patterson PattUTI Paychex PeabdyE Pearson Pengrth g PennWst g Penney Pentair PeopUtdF PepcoHold PepsiCo PerkElm Perrigo PetChina Petrohawk PetrbrsA Petrobras PetsMart PďŹ zer PharmPdt PhilipMor PhilLD PhilipsEl PhlVH PinWst PioNtrl PitnyBw PlainsAA PlainsEx PlumCrk Polo RL Polycom Popular PortglTel Potash Praxair PrecCastpt PriceTR priceline PrideIntl PrinFncl ProctGam ProgrssEn ProgsvCp ProLogis Prudentl Prud UK PSEG PubStrg PulteGrp QEP Res n QIAGEN Qualcom QuantaSvc QstDiag Questar s QwestCm Rackspace Ralcorp Randgold RangeRs Rayonier Raytheon RltyInco RedHat ReedElsNV ReedEls plc RgcyCtrs RegncyEn RegionsFn ReinsGrp RelStlAl RenaisRe Repsol RschMotn ResMed s ReynAm s RioTinto s Riverbed s RobtHalf RockwlAut RockColl RockwdH RogCm gs Roper RossStrs Rovi Corp Rowan RoyalBk g

BWij 9^] 68.80 15.77 45.91 58.11 96.66 72.23 62.97 13.80 25.50 46.29 10.23 55.62 79.09 31.48 49.96 35.29 30.63 31.69 47.60 60.63 111.27 83.43 26.91 57.13 49.96 39.00 14.39 100.56 87.47 20.44 81.03 31.02 20.95 30.75 62.83 15.88 12.99 24.53 32.32 36.39 14.05 18.35 65.41 25.60 63.27 132.28 18.80 33.26 36.98 39.37 17.99 27.30 58.67 58.45 31.00 61.57 41.66 87.52 24.29 62.90 32.15 37.83 108.36 38.93 3.12 11.37 156.65 94.56 139.67 64.28 409.38 31.85 33.02 64.95 43.77 20.05 14.65 61.02 21.15 31.58 100.99 7.69 36.51 19.80 50.97 20.88 54.60 17.45 7.73 30.44 64.73 80.68 44.80 55.45 46.99 33.89 46.15 24.87 33.63 41.93 27.51 7.03 55.51 51.58 63.35 28.27 59.10 35.28 32.84 71.08 37.28 30.45 73.64 58.59 39.80 34.42 75.94 62.20 64.03 33.20 52.27

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BWij 9^] 12.75 67.76 67.46 31.62 15.96 51.08 40.69 23.63 18.54 68.26 12.86 58.60 70.57 10.73 52.73 21.64 41.17 135.69 50.81 7.35 33.10 17.41 51.43 81.63 17.22 49.54 51.74 33.83 14.78 25.56 71.46 52.47 30.43 21.13 33.91 83.72 95.65 73.35 17.24 123.11 66.57 42.35 5.99 36.64 97.94 21.79 75.59 51.87 1.67 29.63 52.66 19.77 63.29 57.35 57.58 51.90 23.83 34.63 36.16 45.46 38.50 48.95 24.67 13.32 36.33 37.58 25.21 4.45 67.81 22.95 32.48 61.28 46.68 23.64 18.41 79.26 10.55 16.99 54.36 7.21 30.39 38.03 41.04 17.16 59.87 26.84 29.66 24.36 18.79 18.05 34.51 43.58 55.49 12.63 22.98 22.34 59.99 29.26 50.50 62.92 14.98 25.53 8.25 13.13 10.96 24.67 68.55 16.50 16.55 43.43 48.57 42.00 30.16 42.87 18.56 32.67 23.75 56.72 37.70 86.67 19.49

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DWc[ Tiffany THorton g TW Cable TimeWarn Timken TitanMet TollBros Trchmrk TorDBk g Total SA TotalSys Toyota TractSup s TrCda g Trnsalta g TransAtlH TransDigm Transocn Travelers TrimbleN Tuppwre Turkcell TycoElec TycoIntl Tyson UBS AG UDR UGI Corp UMH Prop URS UltraPt g Ultrapar UnilevNV Unilever UnionPac UtdContl UtdMicro US Bancrp USSteel UtdTech UtdTherap UtdhlthGp UnivHlthS UnumGrp UrbanOut VF Cp Vale SA Vale SA pf ValeantPh ValeroE Validus Valspar VarianMed Ventas VeoliaEnv VeriFone Verisign Verisk VerizonCm VertxPh ViacomB VimpelC n VirgnMda h Visa VivoPart VMware Vodafone Vornado VulcanM WPP plc WABCO WaddellR WalMart Walgrn WalterEn WarnerCh s WshPst WasteCon s WsteMInc Waters WatsnPh WeathfIntl WebMD WeinRlt WellPoint WellsFargo WDigital WstnUnion WestlkChm Westpac Weyerh Whrlpl WhitingPet WholeFd WmsCos WmsPtrs WmsSon WillisGp WimmBD Windstrm Wipro s WiscEn WooriFn Wyndham Wynn XL Grp XcelEngy Xerox Xilinx YPF Soc Yahoo Yamana g YanzhouC Youku n YumBrnds Zimmer ZionBcp

BWij 9^] 60.61 41.48 67.38 32.96 49.43 16.69 19.43 61.11 74.09 54.89 15.57 79.86 47.34 37.42 21.25 51.96 74.36 69.65 55.57 40.01 48.98 17.43 35.50 42.74 16.25 16.62 23.12 31.80 10.63 40.69 47.14 64.60 31.54 30.92 93.08 25.53 3.13 26.76 60.18 79.12 65.28 37.47 44.16 24.79 35.89 85.06 35.82 31.42 29.40 23.19 30.68 34.15 69.46 53.20 29.71 39.47 33.20 34.27 37.16 35.49 39.87 15.50 26.73 70.60 34.54 93.17 26.80 84.00 42.14 62.13 60.93 34.82 54.77 39.65 134.55 22.88 440.85 27.73 36.60 77.63 51.01 22.14 51.51 23.79 58.33 31.65 32.99 18.61 43.94 111.80 19.55 89.17 116.00 49.04 24.54 46.84 35.59 34.57 34.65 13.95 15.62 58.06 42.52 30.48 112.39 22.05 23.66 11.40 29.54 53.53 16.59 12.22 32.15 35.64 48.34 54.24 24.76

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1/5/2011 5:58:06 AM






Trying to develop a cancer blockade that will last BY AMY HARMON New York Times Service

LOS ANGELES — They had told him on his last visit: The experimental drug that had so miraculously melted his tumors was no longer working. His legs were swollen, the melanoma erupting in angry black lumps. The patient, a computer consultant in his 40s, had little time left. And now the man’s doctor, Roger Lo of the cancer center at the University of California, Los Angeles, was calling to ask whether they could harvest a slice of one of his resurgent tumors, for research he would almost certainly not be alive to benefit from. He would need to fly to Los Angeles from Northern California at his own expense, subject himself to an injection of anesthetic and the slight risk of infection, and spend yet another afternoon in the hospital. “I was hoping,” Lo said that day last spring, “you would come in for a biopsy.” The hope lies in a new breed of cancer drugs that work by blocking the particular genetic defect driving an individual tumor’s out-ofcontrol growth — in the case of Lo’s patient, a single overactive protein. If researchers can pinpoint which new genetic alteration is driving the cancer when it evades the blockade — as it nearly always does — similarlytailored drugs may be able to hold it off for longer. The crucial evidence resides in the tumor cells of patients who, like Lo’s, have relapsed. But the need to ask those who know their time is short to undergo another invasive procedure in the name of science is just one obstacle to what many oncologists see as the best chance to give future cancer patients a more permanent reprieve. A regulatory process that can take years to approve a drug for sale means that, instead of thousands of patients to draw on, only the few hundred who receive the drug through clinical trials are available for such research. Ethical review boards frown on any procedure that exposes patients to unnecessary risk, like the rupturing of a blood vessel or puncturing of a lung. Some hard-won tumor samples prove unsuitable for research. HIGH COSTS Then there is the question of who will pay for the biopsies, which cost as much as $5,000 and typically cannot be billed to insurance. Lo, for one, covered the costs when there was no other means to pay. As drugs tailored to the genetics of particular tumors make their way through early clinical trials, similar quests to improve on them are being undertaken by researchers in the various forms of a disease that kills more than a halfmillion U.S. patients and millions more people worldwide every year. Lo’s quest to understand how melanoma forges its resistance to the drug PLX4032, made by Roche, illustrates the Herculean effort required to take even a baby step toward a cure for cancer. Finding a single clue that could lead to the testing of one new drug that might help a small fraction of patients took two long years. But it also shows how such progress emerges, from a complex mix of academic ambition, collaboration and competition among scientists, and, especially, the willing participation of dying patients. When the man Lo had called arrived in his office a week later, tumors covered his legs from the bottom of his feet to his groin. Some of them were infected, their odor so overwhelming that the doctor put on a mask before administering an anesthetic and cutting into his left thigh. Roger Lo, 38, was an unlikely player in the scramble to improve on the Roche drug, which had been given to only a handful of patients

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By early May, they had nine samples. When Lo submitted his paper to Nature in July, he had collected tumor samples from 12 patients. Of the four that contained his suspect protein, three of the patients had died by the time he had identified it in their biopsy. But the last one came from a 54-year-old Canadian named Wes Coyle, who was alive, but barely, when Lo confirmed the protein’s presence through a biopsy of a tumor in his pelvis. It was the first time that, using his and Lo’s research, Ribas could try to help a patient who had relapsed. He warned Coyle’s sister Peggy Coyle Seaver, who was caring for her brother, that it was a long shot. But he prescribed the drug, made by Pfizer, that was known to block the proADALBERTO ROQUE/AFP-GETTY IMAGES tein in some other cancers. FRESH APPROACH: A new wave of cancer research is aiming at developing a new breed of drugs that could For two weeks, Seaver reported to the doctor, her block a particular genetic defect that drives an individual tumor’s out-of-control growth. brother was suddenly able to when its suc- tient in the trial, the drug held ing cancer centers. Many patients enrolled in the drug eat again. Yet he died soon cesses began his cancer at bay for several had not been biopsied when trial. after that. They knew, too, that othto grab the months. But as would happen their cancer returned. Some field’s atten- with the others, his response of the biopsies had been sent er researchers were close to MORE CHANCES to Roche, which had not yet publishing their own findings. tion in late did not last. Another opportunity arose 2008. With his life at immediate shared its own research with One had given a presentation with a patient who contribat a conference, and there uted tumor samples to Lo’s An assis- risk because of a melanoma the academic researchers. Briefly, researchers at the was a rumor that his paper collection, an avid gardener in tant profes- tumor that had metastasized sor in der- to his heart, Reyes traveled six sites contemplated pool- had been tentatively accepted Los Angeles. Her sample carLO matology, he to UCLA for surgery in May ing the few samples in their by Nature, a premier science ried a gene mutation that sughad started his own laborato- 2009, agreeing to let his tu- possession, and sharing au- journal. gested a second possible esOver the first six months cape route for the cancer. But thorship of their results. But ry only a few months earlier mor be used for research. and had been advised by seOn Ribas’ instructions, a the tissues could be subjected of this year, the doctors re- on a clinical trial for a drug nior colleagues to avoid high- technician stood in Reyes’ to only so many tests before newed their efforts to col- specifically designed to block risk projects until he secured surgery room and, as soon being used up. And success in lect biopsies. Lo sent gentle it, she quickly deteriorated. a steady source of financial as the surgeon extracted academia can hinge on being e-mail reminders to the other “Damn it!” Ribas explodsupport. the tumor, ran with it to the listed as a paper’s lead author. oncologists with patients on ed, calling Lo when he saw But like others in the field, nearby laboratory to reduce When several group discus- the Roche drug, who might the tumors growing on her he was galvanized by watch- the chance of exposure to sions failed to yield even a forget to ask, or sidestep the scans. Of the 12 patient saming melanoma patients re- contamination. To coax the complete accounting of who difficult conversation. ples, Lo had identified the There were some biopsies likely source of the cancer’s spond to the Roche drug, the cancer cells to thrive so that had how many, researchers first ever to reliably slow a Lo could run them through a agreed to stay in touch, but they did not get. One patient’s resurgence in five. In August, family volunteered an autop- with a grant he received from disease that typically kills battery of tests, it was sliced go it separately. Still, in late 2009, Ribas ap- sy if it would help, but the the Melanoma Research Alliwithin a year of diagnosis up with sterile knives and de— and rarely responds to posited, in a flask with sugar proached two of the oncolo- timing made it impossible: Lo ance, along with researchers gists he knew to ask if they needed living tissue for the at other institutions, Lo bechemotherapy. solution, in an incubator. “Let’s hope it grows,” would share samples with Lo. studies he was conducting. gan to probe the rest. UCLA COLLABORATION “I think he really has some- The doctors decided against And in late November, afRibas said to Lo. Impressed by his drive, When Reyes died a few thing,” he told the two, Jeffrey asking another patient, a ter requesting another round and equally eager to realize months later, Ribas called his Sosman and Grant McArthur. young mother, whose tumor of experiments, Nature Four tumor samples, two was in the liver. The risk of published his paper, along the full promise of the drug’s mother to offer his condoapproach, Dr. Antoni Ribas, lences, as is his custom. And from each doctor, arrived a complications did not justify with one from a competing the melanoma oncologist then he told her something few days later. One, from a re- the benefit. researcher. A prominent immunolorunning UCLA’s arm of the else. “He said Lee is helping tired math teacher in TennesIn early December, Ribas drug’s clinical trial, agreed to them,” Ellen Reyes told her see, tested positive for high gist from San Diego was visited Roche’s offices in San willing to subject himself to Francisco. The data in the palevels of Lo’s protein. collaborate with Lo. husband. The same protein was hy- a biopsy of a tumor near his per, he argued, made a case Lacking tumor samples Reyes’ cells were growing. peractive in another sample, knee, but the UCLA surgeon for clinical trials of combinafrom patients in the Roche which came from a Croatian turned him away on the op- tions of drugs the company trial, Lo instead sought to A BREAKTHROUGH replicate the cancer’s resisIt would take months for patient of Ribas’ who had erating table, judging it too was already developing. Retance to the drug by feeding Reyes’ cells to multiply to been commuting to Los An- painful to remove. Still, when searchers would need to take the immunologist, Norman biopsies from patients in those a steady diet of the drug to the numbers Lo needed to geles for treatment. Like everyone treating the Klinman, underwent surgery trials, too, they all agreed. melanoma cells taken from perform his tests. And that three previous patients who summer, the foundation he patients in the Roche trial, in San Diego after relapsing, Because the cancer, even if had never received it. When had hoped would finance Lo and Ribas were grow- his son raced to deliver his blocked a second time, might the few cancer cells that sur- his research judged his grant ing increasingly tormented tumor sample, strapped into find another way through. vived the onslaught began to proposal “too ambitious” for by the knowledge that they the front seat of his car in a “We have a lot more to could not promise more than container of dry ice, to Ribas’ do,” Lo tells his laboratory grow in their petri dishes, he a junior investigator. used those, now resistant to staff every day. But by late September 2009, a few months’ reprieve to the laboratory. the drug, to begin his search. using the laboratory cells he It could have been straight- had earlier bred to resist the forward. Many researchers Roche drug, he had narrowed From the Miami Herald International’s London Bureau Chief comes believed the answer would be his search. The cancer’s new that the gene whose mutation driver, he believed, was one initially made the protein that of 42 proteins on the surface drove the cancer’s uncon- of the cell. A few weeks later, trolled growth had mutated he closed in. An experiment again, as had happened in that could detect all 42 found  other cancers. In a few cases, a single culprit, appearing  a new drug tailored to the as twin dots of black on the new mutations had length- translucent background of the  ened remissions. film: The resistant cells con But Lo found no evidence tained 10 times more of the Out in  of this. Nor did he find the protein than those that were Paperback,  smoking gun in several other still responding to the Roche genes linked to the growth of drug in Lo’s petri dishes.  from other cancers. And, he noted with ex Instead, he began the pains- citement, a drug designed Duckworth  taking process of measuring to block that protein was al Press the activity of hundreds of ready being prescribed for  proteins that might have driv- other cancers. Perhaps a solu  en the cancer’s uncontrolled tion for patients was available  growth. The experiments re- already. quired modifying the levels  On a Saturday night in midof each protein in the drug- November, Lo called Ribas.  resistant cells, dosing them He was looking at the film  with the drug and checking showing the results of the ex every few hours to see how periment on Reyes’ cells. On  fast they were growing. With the translucent background,  only two junior scientists and the same twin dots showed  a technician in his laboratory, black. The patient’s cells, still  Lo performed much of the living, harbored levels of the work himself. protein far higher than even  Even so, he knew, nothing Lo’s laboratory models.  he found in the cells whose “Toni,” he said. “You have  resistance he had artificially to see this for yourself.” bred in the lab would matter To be confident that his ‘Zestily polemical’ unless he also found it in the find was not a fluke, Lo needGuardian ed more samples from other patients who had relapsed. Those who wonder wheth- patients. Their goal would ‘Engaging and lively…a page-turner’ er a single patient can help be 10, he and Ribas agreed in Independent cancer research should know late-night e-mail exchanges. The best would be “before” the case of Lee Reyes. ‘Well-informed…consistently interesting…powerful’ One of Ribas’ first patients and “after” snapshots from John Carey, Sunday Times in the trial of the Roche drug, patients at the beginning of Reyes was selected because their treatment and after they he was among the half of had relapsed. But those were Should you wish to order a copy at the promotional rate, please melanoma patients whose tu- in short supply. contact Only 48 patients had been mors carried the overactive protein the drug blocked. As treated in the drug’s first triit would for nearly every pa- al, eight at each of six

IQ: How Psychology Hijacked Intelligence

1/5/2011 2:34:45 AM







For more comics & puzzles, go to


Opening lead — ◆ ten

A club to the ace first would have captured a singleton queen, but rightly concerned Today’s deal from the with the paucity of entries to United Kingdom arose in the dummy, declarer called for annual House of Lords vs. the club jack, covered with House of Commons bridge the queen by East (Dr. John match for the Jack Perry WEST EAST Marek) and captured with Trophy. Over the last 35 years ♠A753 ♠K6 the ace. The club king was the standard of bridge in this ♥K97 ♥ Q J 10 4 match has generally been played next, bringing the 4-1 ◆ 10 9 8 4 2 ◆765 break to light. But now, Lord respectable, with quite a ♣6 ♣ Q 9 5 3 few occasional and even Skelmersdale’s careful play at trick one allowed him to serious duplicate players SOUTH bringing a touch of class to the re-enter dummy with the dia♠J84 mond ace to finesse against proceedings. East’s club nine. That was nine ♥A2 When Bridget Prentice for the Commons made her natural tricks, and a game swing to ◆KQ3 the Lords when South for the lead of the diamond 10 against ♣ A K 10 8 2 three no-trump, declarer, Lord Commons did not manage the Vulnerable: Both Skelmersdale, took care to play minor suits to best effect. This line of play guarded dummy’s jack, recognizing that Dealer: South he might need an extra entry to against four of the possible The bidding: four-card club combinations dummy should East hold club with East, while losing to a sinlength. (He could of course South West North East have played the ace, so long as gleton queen in either hand, so 1♣ Pass 1 ♥ Pass 2 NT Pass 3 NT All pass he unblocked the king or queen it was clearly the odds-on play. under it.) NORTH ♠ Q 10 9 2 ♥8653 ◆AJ ♣J74









WHITE’S BEST MOVE? Hint: Win a rook, not a bishop.

Solution: 1. Nd7! winning the rook, as 2. Rg8ch! Kh5 3. Nf6 mate! is also a threat.








Dear Abby: I’m dating a 15-year-old girl who was seriously physically abused in the past. She and her mom had to move away for a while, but have now been told by Department of Children and Family Services that it’s safe for them to move back with her father, who abused her. After seeing what goes on in this house and hearing her describe how they treat her, I think the physical abuse has changed to mental and emotional abuse. I’m not sure what to do because I’m 18 and it’s “illegal” that we are dating. It scares me that they can use anything against me. What to Do? You are not in a position to do anything yourself. If you try to get help for your girlfriend, her parents could create problems for you that would last a lifetime. However, that doesn’t mean you shouldn’t encourage the girl to help herself by talking to a counselor, a trusted teacher or a clergyperson about the difficulties she’s experiencing at home. If she does, they are mandated by law to report abuse. And this is a family that’s already been in the system. Dear Abby: I have been unable to ask “Mary” out — or at least see if she’s into me — because we both work at the same place. I am not the type to be shy with my feelings, but with her it’s different. When I see her, I forget everything else. It’s as if my whole world stops when I see her smile. She’s amazing! I want to ask her out, but I’m unsure how to, considering that I am a woman. She does not know how I feel about her. What should I do? Has It Bad in Arizona

National Guard.) He has asked me to go with him and I agreed, but in order to do that we have to be married. I love Sam very much and we have talked about marriage before, but not elopement. He hasn’t really “proposed” because he doesn’t have a ring. We will be married, but without a real wedding — yet. I have no problem with this. It’s a bit unconventional, but I love Sam and want to go with him. It will be an opportunity to travel, and I could finish my degree online. The problem is, how would I define us as a couple? When we move onto the base, I’m worried people will see my ringless finger and ask questions. What should I tell them? And when we do have the actual wedding, what will that be called? Don’t Want to Be Embarrassed in California Not all married women wear wedding rings, although most do. If you are afraid there will be questions if you’re not wearing one, you and Sam might consider getting a used gold band to wear until he can buy you something else. If that doesn’t appeal to you, then you’ll just have to tell people that you are married and you have the license to prove it. (I doubt it will come to that.) And when you and Sam are finally able to have the wedding of your dreams, call it a renewal of your marriage vows because that will be accurate. ANSWER TO TUESDAY’S PUZZLE:

First, see if there are regulations in your employee handbook that discourage employees from dating. If there aren’t, go slow and let Mary get to know you as a friend before trying to start a romantic relationship. And before declaring your feelings, be sure that a lesbian relationship is one that your co-worker would welcome. Dear Abby: My boyfriend of three years, “Sam,” came home from basic training in the Army and told me he wanted to go active. (He was part of the

HOROSCOPE IF TODAY IS YOUR BIRTHDAY: The road to financial success seems smoother than usual, especially in February. Your judgment about your career and finances is better than usual. • CAPRICORN (Dec. 22-Jan. 19): Accept your faults and do your best to fix them. If you receive a comeuppance accept it gracefully. • AQUARIUS (Jan. 20-Feb. 18): Those in close connection may expect perfection that simply isn’t feasible.


• PISCES (Feb. 19-March 20): Act like the perennial Boy Scout; help an old lady cross the street or perform some other good deed. • ARIES (March 21-Apr. 19): For the next few days, it might seem that the things that come to your attention are taking time from an already exceedingly busy schedule. • TAURUS (April 20-May 20): Do the best you can. If a small glitch occurs, don’t feel guilty or accept the blame too readily. • GEMINI (May 21-June 20): It is wise to be as polite as possible to everyone you meet, even if the people you meet today don’t seem to appreciate everything you do and say. • CANCER (June 21-July 22): Money counts. A pile of red tape could accompany any new projects that you begin today. • LEO (July 23-Aug. 22): We wary of the fire, the frying pan and the temptation to jump. Take deep breaths; wait to make key decisions. • VIRGO (Aug. 23-Sept. 22): Revoke being provoked. Someone in close contact understands the truth and can give you wise guidance. • LIBRA (Sept. 23-Oct. 22): It’s the ideal time to get everything in your life shipshape. Organization is the key to improve efficiency. • SCORPIO (Oct. 23-Nov. 21): Deploy your diplomacy. Pump that heart rate up with a period of intense physical activity. • SAGITTARIUS (Nov. 22-Dec. 21): If you play poker, you would be wise to bet with matches instead of cash. This is not a good time to make financial decisions or investments.

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CROSSWORD ACROSS 57 Watch covertly 1 City non-Muslims 58 “The Mirror Has Two may not enter Faces” actress 6 Tech support seeker 62 Palindromic female 10 Voice below baritone name 14 Blow away 63 Senseless situation? 15 Large wild cat 64 Heart’s mainline 16 Book after Judges 68 Proofreader’s “leave it” 17 Pre-imago insects 69 Sitcom spun off from 18 Stagecoach line? “The Dukes of Hazzard” 19 Sporting blade 70 Copier refill 20 “The Godfather” actor 71 Busy one’s list heading 23 Not quite right, as a 72 “For goodness’ ___!” musical note 73 Pass as law 26 Whistle bead 27 “Lazarus Laughed” DOWN playwright Eugene 1 It shows the way 28 “___ Lang Syne” 2 Cousin of an ostrich 30 Wordless warnings 3 Toy-pistol ammo 33 ___ in rabbit 4 Old Russian ruler 34 Foot the bill for everyone 5 Teller of fables 36 Peter and Paul, 6 Raise or erect but not Mary 7 Court plaintiff 38 “Coming to America” 8 Discharge, as light star 9 Texas air force base 42 Mortise insert 10 Short vowel indicator 43 Melba ___ 11 Live-in household helper 46 Lofty peak 12 Famous Brando cry 49 “___ Company” (Ritter 13 What she sells by the seashore sitcom) 52 Guide’s offering 21 Hold out a paw 22 Defeat, as an incumbent 53 Brewer or Graves 23 Neigh sayer’s nosh 55 Word in wedding 24 Chinchilla’s coat announcements

25 29 31 32 35 37 39 40

Unseen circus performer Tailor’s tuck State one’s viewpoint Whisper sweet nothings to Feared fly Nickelodeon feature Improves Here-there separator

41 Asian nation with 16 provinces 44 Break bread 45 Hear, as a case 46 Jazz singer Etta James’ signature song 47 Shanty 48 Used shears 50 Sheathe

51 54 56 59 60 61 65 66 67

___ of Galilee Wordsworth’s Muse Send into ecstasy ___ fide (authentic) Run ___ (go berserk) State bird of Minnesota Genetic trait carrier Private eye, slangily It’s been framed!

1/4/2011 8:57:05 PM



Browns’ Mangini gets the boot BY JUDY BATTISTA New York Times Service

Remember when everyone thought NFL coaches would not be fired this season because team owners would not want to absorb the dismissed coach’s contract while paying a new coach with a lockout looming? Never try to predict the decisions of wealthy men with little patience. With five coaches fired before the season even ended, the first Monday of the postseason began with news that Cleveland had dismissed Eric Mangini after two 5-11 seasons. Mangini’s firing was not a surprise because he was not hired by the Browns’ president, Mike Holmgren, who is completing his first year on the job. But Mangini has two years remaining on a contract that pays him a reported annual average salary of $3.9 million. In a news conference, Holmgren did not eliminate the possibility that he could return to the sideline, where he built his legend in Green Bay and in Seattle. “My goal is to find exactly the right person to eventually lead us to the championship,” Holmgren said. “I was hired to be the president of the Cleveland Browns. I think this year, I’ve grown into the job. Having said that,

I am also a coach and will always be a coach.” Mangini, who was hired by the Browns just days after he was fired by the New York Jets two years ago, joined a coaching unemployment line that included Wade Phillips (Dallas), Brad Childress (Minnesota), Josh McDaniels (Denver), Mike Singletary (San Francisco) and John Fox (Carolina), all of whom were sent packing before the season ended. On Monday, the Vikings announced that Leslie Frazier, who took over when Childress was fired with six games remaining, would become the permanent coach after the Vikings went 3-3 with him in charge. The Cowboys are expected to make the same move with their interim head coach, Jason Garrett. And Fox is highly regarded and could quickly land another head-coaching job, perhaps in Cleveland. But the process could take much longer in Denver, which is expected first to install legendary quarterback John Elway into the front office and then let him help choose the next coach. Elway could pursue Stanford TONY DEJAK/AP FILE coach Jim Harbaugh, who END OF THE ROAD: Cleveland Browns fired coach Eric is expected to be sought by several teams. Mangini on Monday after his second 5-11 season.




Stanford routs Virginia Tech • ORANGE BOWL, FROM 8B

quarter on a Luck pass aimed right at him, but he dropped it. After averting the momentum swing, the Cardinal scored a few plays later on a 1-yard run by fullback Owen Marecic to take a 19-12 lead. On the Hokies’ ensuing drive, Taylor was intercepted inside the Stanford 5 by safety Delano Howell, who was one of the largely unheralded Cardinal players to take a star turn. Fleener, who had a career-high six receptions for 172 yards, was another. So was Shayne Skov, a sophomore linebacker who led a Cardinal defense that sacked Taylor seven times. Then there was Jeremy Stewart, a senior running back who broke a 60-yard run, his career long, for the first score of the game. Stewart had gained only 39 yards during an injury-plagued regular season. The Cardinal entered intermission clinging to a 13-12 lead on the strength of Luck’s first touchdown throw, of 25 yards to tight end Zach Ertz. “There’s so many MVP’s on the team tonight,” Luck said, adding, “so it is very

humbling as well to take that trophy.” No. 12 Virginia Tech (11-3) unveiled mandarin orange helmets for the first time, which was an inspired touch. From the multihued blues of Biscayne Bay to the winter carnival that is Collins Avenue, South Florida is where subtlety goes to hibernate. For all the sterling performances on the field, the man of the moment did not make a tackle or convert a first down. So long a shadow did Harbaugh cast over the game that a thousand miles away, he was darkening Michigan Coach Rich Rodriguez’s door. In Monday’s Detroit Free Press, Harbaugh’s face appeared on the front page, above the fold, alongside the headline “Fire Rodriguez, Hire Harbaugh.” Rodriguez is 15-22 in three seasons at Michigan; Harbaugh is 25-13 at Stanford in the same period. Was the Orange Bowl Harbaugh’s last hurrah at Stanford? Will Luck leave school early to take his talents to the NFL? After the Cardinal’s impressive victory, it was all over but the agonizing.

Sparano’s future in limbo N.Y. Giants face baggage of a flawed playoff system


Ross said before the season he expected the Dolphins to reach the Super Bowl, but this is the eighth time in nine years they’ve fallen shy of the playoffs. It has been 18 years since they played in the AFC championship game, and 26 years since they made the Super Bowl. Now they’ve endured consecutive losing seasons with the same coach for the first time since 1968-69 under George Wilson. “As much as I hate to say it, I think we’re a middle-ofthe pack team right now,” running back Ronnie Brown said. “We haven’t sepa-

rated ourselves from the good teams, and we haven’t reached the upper echelon of the great teams that consistently go to the playoffs. “We have some work to do in that area, where you consistently know what you’re going to get from the Miami Dolphins.” The question now is whether Sparano will be given another chance to lead the Dolphins to that elusive elite level. His players’ lackluster effort Sunday did nothing to help Sparano’s cause, but they remain in his corner. “It would be good for him to get another shot,” Brown said. “He’s passionate. You


DISMAL: Dolphins’ running backs Ronnie Brown, left, and Ricky Williams have failed to produce a single 100-yard rushing game this season.

see him running up and down the sideline, and that’s what gets some of us excited. To know you have a guy like that behind you means a lot.” Sparano and general manager Jeff Ireland aren’t the only ones with uncertain futures. An offensive overhaul is likely after the Dolphins finished next to last in the AFC in scoring, and whoever the coach is in 2011, he may seek to replace Brown, quarterback Chad Henne and running back Ricky Williams. Henne was benched briefly at midseason, threw 19 interceptions and lost the support of leading receiver Brandon Marshall. Brown and Williams failed to produce a single 100-yard rushing game, and both are unrestricted free agents this offseason. Brown packed up his belongings in the locker room Monday, then contemplated the conclusion of his sixth season with the Dolphins. “It’s different, because there’s the possibility come next season I won’t be putting my stuff back in this same locker,” he said. “I could be somewhere else. That’s the difference. Not knowing is kind of weird.” On the first day of the offseason, his coach and many teammates shared Brown’s uneasy uncertainty.


look at you like, ‘What do you know about this sport?’‚” said Steve Tisch, the Giants’ chairman and executive vice president. “It’s an unusual fact, it’s an anomaly, it’s certainly going to go down as a rare statistic, and I’m not sure if we’re standing here a year from today this will even be a question that will be brought up.” But if it is a question? “If it happens next year,” Tisch said, “it’s worth looking at, in terms of the competition committee.” As a creature of the system, Giants coach Tom Coughlin said that he accepted his team’s fate. “In our game, you focus on winning your division,” he said. “That’s the direct route to the playoffs. This is an unusual year in which a team won the division with a not outstanding record. Maybe it’s just a different and unusual year. I don’t know. “From a standpoint of the league,” Coughlin added, “I don’t have any complaints with the system. From a

standpoint of being selfish right now, yeah, we’d like to be playing, sure.” John Mara, the Giants’ chief executive, remembered how the team reached the playoffs in 2006 with an 8-8 record. “Probably someone else deserved to go more than we did,” he said. “Those things can even out over the years, and we had plenty of opportunities to get into the playoffs this year, so I can’t begrudge Seattle.” Seattle coach Pete Carroll said Monday that he was not apologizing for reaching the postseason. “We battled like crazy to get this,” he said, “as did the other teams in our division, as did the teams in other divisions. So we’re the last guys standing here and we’re proud of that. Record has nothing to do with it right now, it’s how we play on Sunday, or Saturday in this case.” Almost everyone in the NFL — commissioner, owners, team executives, coaches and players — embraces the notion that winning a division is the ultimate test. Even if the division winner has a losing record.

Ronaldinho Manager Hodgson walks alone at Liverpool keen on moving to Brazil • SOCCER, FROM 8B


Milan reportedly wants nearly ¤8 million to release the player. Ronaldinho has previously expressed a desire to play for Flamengo, Brazil’s most popular club. Former Brazil teammate Adriano, who helped Flamengo win the Brazilian league last year after leaving Italian side Inter Milan, said he had spoken to Ronaldinho about his decision. “I told him that sometimes it’s important to follow his heart,” Adriano, currently back in Italy with AS Roma, told Brazilian media. Gremio is the team where Ronaldinho started his career in 1998, while Palmeiras, an eight-time Brazilian champion, is coached by Luiz Felipe Scolari, who worked with the player when Brazil won the 2002 World Cup in South Korea and Japan.

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opponents like Real Madrid, Barcelona, Bayern and Milan tremble. Liverpool’s former manager Bill Shankly harnessed that spirit. But the iconic Shankly, the People’s Prophet, died in 1981. He last managed in 1974. Bob Paisley, a commonsense man not unlike Hodgson, quietly stepped in when Shankly retired. And it was Paisley’s Liverpool, not Shankly’s, that conquered Europe. Both knew that whatever way you dressed it up, winning trophies had everything to do with the players you put onto the grass. Those gentlemen would turn in their graves at the Liverpool of today. They would simply not have accepted the performances — or non-performances — that gifted players like Fernando Torres, Steven Gerrard and Pepe Reina have served up of late. Torres scored on a sweet volley on Saturday. Gerrard made the pass on that goal and the winner by Joe Cole. But the power exercised by the moody, unreliable

multimillionaires of today makes them a different breed from the great players of Liverpool’s past. However, the supporters now calling for Kenny Dalglish to replace Hodgson are also living in the past. King Kenny was a fantastic talent, brought down from Scotland by Paisley to replace King Kevin Keegan. But Dalglish has not coached in more than a decade. He quit when boardroom politics and big-money players got too much for him. How, one wonders, would Dalglish cope with a U.S. boardroom and a French director of football strategy empowered to hire players and to identify the next team manager or coach? How would Martin O’Neill, one of the supposed candidates to fill Hodgson’s post, tolerate such interference in the managerial role? O’Neill walked out on Aston Villa in August, a week before the season, apparently because of similar misgivings about his authority. Yet Hodgson has to live with it. His Liverpool bosses hired the Frenchman Damien Comolli as the director of football strategy

a few months ago. Comolli once held that power at Tottenham, though it is notable that the club’s recent revival came after Comolli departed. Directors of strategy, or whatever fancy title anyone calls them, are middle men — or meddle men — between owners and team trainers. In the United States or in Germany, they frequently outlast several coaches. They seldom take the flak from the fans or the responsibility for player moves that go wrong. Torres is too often a sullen shadow of himself? Must be Hodgson’s fault. Gerrard is injured too often, or not the superman of years past? Blame Hodgson. Paisley once said he sometimes felt he was in the loneliest place on earth. “What makes it less lonely,” he said, “is that I can talk to anybody from the chairman to the tea lady and know that we all want the same thing.” Hodgson cannot know who is on his side. He is between the new board, the locker room failure and a baying crowd. Last week, after a loss to last-place

Wolverhampton, Hodgson questioned the crowd and the players. But if Hodgson cannot get the players to perform, then Liverpool would be right to hire someone who can. The news media, smelling blood, are full of suggestions, but the fans think their voice must be heard. Many of them think that their opposition forced out the previous U.S. owners, George Gillett and Tom Hicks. They delude themselves. The Royal Bank of Scotland and Wachovia bank in the United States removed Hicks and Gillett because the owners failed to repay hundreds of millions of dollars in debt they incurred when they bought the club. The banks’ appointees chose new U.S. owners, and they even chose Hodgson. The People’s Liverpool is a memory that resembles a mirage. Shankly and Paisley built a legacy, with full boardroom backing. We will never know whether they could have fared any better than Hodgson under the new order ruled by money.

“You have your division, and you have to win your division,” Eli Manning said on Monday. “That’s the ultimate goal. I think making it into the playoffs in the NFL is tough; it’s not easy. That’s what makes it special and what makes the game great. That’s what makes the playoffs so exciting is the challenge not only to get in, but then you know once you get in, there aren’t many teams and all these teams are playing good football.” This is all fine. But exactly what part of the American Dream does Seattle’s bizarre playoff run celebrate? That it ain’t over ‘til it’s over? Or that you can lose and still win? Do the Seahawks represent the triumph of mediocrity? If nothing else, Seattle has proved that the race is not always won by the swift.

NBA EASTERN CONFERENCE Atlantic Boston New York Philadelphia Toronto New Jersey

W 26 19 13 11 9

L 7 14 21 22 25

Pct GB .788 — .576 7 .382 131/2 .333 15 .265 171/2

Southeast Miami Orlando Atlanta Charlotte Washington

W 27 22 22 11 8

L 9 12 14 21 24

Pct GB .750 — .647 4 .611 5 .344 14 .250 17

Central Chicago Indiana Milwaukee Detroit Cleveland

W 22 14 13 11 8

L 10 18 18 23 26

Pct GB .688 — .438 8 .419 81/2 .324 12 .235 15

WESTERN CONFERENCE Southwest San Antonio Dallas New Orleans Houston Memphis

W L Pct GB 29 4 .879 — 25 8 .758 4 21 14 .600 9 16 18 .471 131/2 15 19 .441 141/2

Northwest Utah Oklahoma City Denver Portland Minnesota

W 24 23 20 18 9

Pacific L.A. Lakers Phoenix Golden State L.A. Clippers Sacramento

W L Pct GB 23 11 .676 — 14 18 .438 8 13 21 .382 10 10 24 .294 13 7 24 .226 141/2

L 11 12 13 16 26

Pct GB .686 — .657 1 .606 3 .529 51/2 .257 15

MONDAY’S GAMES Miami 96, Charlotte 82 Orlando 110, Golden State 90 Boston 96, Minnesota 93 New Orleans 84, Philadelphia 77 Denver 113, Houston 106 Utah 102, Detroit 97

1/5/2011 4:33:16 AM






Stanford wins Orange Bowl by a stroke of Luck BY KAREN CROUSE New York Times Service

MIAMI GARDENS, Fla. — So spectacular was the Orange Bowl show they had seen, members of the Stanford football traveling party held up cellphone cameras as if they were lighters and roared for an encore. As Cardinal quarterback Andrew Luck stood on the makeshift stage after leading Stanford to a 40-12 victory against Virginia Tech on Monday night, Cardinal fans serenaded him with the chant “One more year!” Luck, a junior, was named the game’s most valuable player after breaking open a one-point game with a nearly flawless second half. He completed nine of 10 passes after halftime, including three for scores to tight end Coby Fleener. If this was Luck’s last college game, he went out with fireworks,

passing for 287 yards and four touchdowns. Luck’s counterpart, Tyrod Taylor, passed for 223 yards and a touchdown, and was intercepted once. Asked about the decision he is mulling over taking his talents to the NFL, Luck demurred, saying he wanted to savor the victory, which assures No. 5 Stanford (12-1) of its first national top-five finish since the 1940 season. “I think there are a lot of worse decisions you might have to make in life,” Luck said. It was an answer that elicited a guffaw from Stanford coach Jim Harbaugh, who was seated next to Luck on the dais. Harbaugh might have said the same thing about his own career options. Harbaugh has become the beau of the bowl season, with NFL teams and his alma mater, Michigan, among those reportedly courting

SWEET WIN: Stanford players celebrate after their 40-12 victory over Virginia Tech in the Orange Bowl NCAA college football game on Monday in Miami. LYNNE SLADKY/AP

him. When asked if he had coached his last game at Stanford, Harbaugh smirked and said: “Oh, please. Please. Give me a break. Have some respect for the game. It’s about the performance tonight of these players, and I love them.”

Harbaugh, a quarterback who starred for the Wolverines before playing 15 seasons in the NFL, has a special affinity for Luck, whom he described as “the straw that stirs the drink around here.” After struggling to find his • TURN TO ORANGE BOWL, 7B

Giants face baggage of a flawed playoff system


DAVIE, Fla. — Like an attorney making his case for the defendant, Miami Dolphins quarterback Chad Pennington was well prepared to present an argument on behalf of his coach. “Everybody needs to take a look at these last three years and realize that before Tony Sparano got here, this organization was 16-32 in three years,” Pennington said. “In the three years he has been here, the Dolphins are 25-23 with an AFC East championship. The right man for this organization is Tony Sparano.” Pennington’s facts were accurate but may not be enough to affect the verdict on Sparano’s future. For the second year in a row, the Dolphins faded at the finish of a disappointing 7-9 season. Sparano said he’ll discuss his status in a meeting with owner Stephen Ross. When asked if he’s worried about his job, Sparano all but said yes. “Listen, I don’t take my job for granted one day, not one second,” he said. “I have the greatest job in the world, and I enjoy this organization and the people here, and I enjoy coaching this team. I don’t take it for granted at all. In fact, it’s kind of the other way around for me. I’ve put it before a lot of personal things in my life.” No one questions Sparano’s work ethic, but after Miami’s sur-

‘I have the greatest job in the world, and . . . I enjoy coaching this team. I don’t take it for granted at all. I’ve put it before a lot of personal things in my life.’

BY WILLIAM C. RHODEN New York Times Service

Manager, Miami Dolphins

prising run to the 2008 AFC East title in his first season as an NFL head coach, there’s a sense of regression. That feeling was reinforced by three consecutive losses to end the season, including Sunday’s 38-7 drubbing at New England. Two years ago, Sparano outcoached Bill Belichick, unveiling the wildcat for the first time to help the visiting Dolphins humiliate the Patriots. This time it was the Dolphins left redfaced by their trip to New England. “The things that happened in that game are not Miami Dolphins football,” linebacker Cameron Wake said. Or maybe they are. • TURN TO SPARANO, 7B

Ronaldinho likely to end stint in Europe BY TALES AZZONI

LOOKING OUT: Ronaldinho has only made seven starts for AC Milan in Serie A this season and now seems set to return to Brazil in search of improved fortunes.

Associated Press

SAO PAULO — Ronaldinho is negotiating a return to Brazil from AC Milan, with three top clubs lining up to sign him, the playmaker’s brother and agent said. The 30-year-old Ronaldinho is in Brazil and his brother Roberto Assis said Flamengo, Gremio and Palmeiras are all trying to sign the player, with a deal expected to be sealed in a few days’ time. Assis has met with the clubs’ representatives and is analyzing their offers. “We don’t know what’s going to happen yet, but we want him playing in Brazil again,” Assis told the website Sunday. Ronaldinho left AC Milan’s training camp in Abu Dhabi on Friday and was authorized to travel to


Brazil to negotiate his future even though he is still contracted to the Italian club. Milan coach Massimiliano Allegri said Sunday that Ronaldinho had made a decision to “change his life, go back to Brazil.” Ronaldinho has only made sev-

he Giants engaged in the losers’ ritual of cleaning out their lockers this week. They ended the season with a victory in Washington, but late in the game they watched the highdefinition scoreboard as the Green Bay Packers defeated the Chicago Bears, knocking the Giants out of the playoffs. The Packers did what they had to do. The Giants, as happened so often this season, did not. While the Giants and the Tampa Bay Buccaneers — both with 10-6 records — are going home, the 7-9 Seattle Seahawks won the NFC West and will host a playoff game. It is the first time that an NFL team with a losing record won its division and will host a playoff game. The Giants and the Buccaneers deserve to be in the playoffs. Seattle does not. Tampa Bay and the Giants each achieved the threshold of winning 10 games this season. The Seahawks, a member of the minor league West Division, are in the playoffs by virtue of the NFL custom that calls for division winners to earn postseason berths. In a more equitable system, no team with a losing record — even if it won its division — would make the playoffs. If that were the case, Tampa Bay or the Giants — whichever team owned the tie breaker — would have earned the No. 6 seed, and the Seahawks would have gone home. Granted, Seattle’s emergence puts a captivating twist on a weird season, and Saturday’s scene at Qwest Field will be a classic. Making the defending Super Bowl champion New Orleans Saints (11-5) fly more than 2,000 miles to play a 7-9 division winner strains credibility, and everyone outside the state of Washington knows it. “When the season started, if you asked everyone who writes about football or really loves football, is a 7-9 team going to end up in the playoffs, they’re going to





rhythm in the first half, Luck led the Cardinal on scoring drives of 59, 97 , 87 and 72 yards in the final 30 minutes in a performance that Harbaugh described as “a point explosion.” He added: “I thought there were no mistakes from there on out. Everybody was just on point and executed extremely well.” Making his first appearance in a bowl game, in his team’s biggest game in decades, Luck seemed a beat off in his rhythm. In the first half he completed nine of 13 attempts for 86 yards. Luck was intercepted only seven times during the regular season. But on a second-quarter pass, cornerback Jayron Hosley made the ninth interception of his superlative season. Hosley nearly recorded his 10th interception early in the third

awards in 2004 and 2005 while with Barcelona and led the Spanish club to the Champions League title in 2006. He also helped Brazil win the 2002 World Cup. After leaving Barcelona to join AC Milan in 2008, Ronaldinho struggled to establish himself at the Italian club. He also disappointed with Brazil at the 2006 World Cup and has featured infrequently for the national team since then, including missing out on 2010’s World Cup in South Africa. Financial details on the terms of Ronaldinho’s potential transfer have not been disclosed. All three Brazilian clubs in the hunt say they are seeking partnerships with sponsors to have enough money to afford the forward.

en starts for AC Milan in Serie A this season and now seems set to follow the likes of Ronaldo and Adriano in returning to Brazil in search of improved fortunes. Ronaldinho won consecutive FIFA World Player of the Year • TURN TO RONALDINHO, 7B


BY ROB HUGHES New York Times Service

LONDON — Coming into the new year, the English Premier League is a conflict between the present and the past. The Manchesters, United and City, hold sway. One is driven by the oldest manager in the business, 69-year-old Alex Ferguson. The other needs redefining as Abu Dhabi City, such is its purchasing power from the Gulf state. Third is Arsenal, the closest thing England has to Barcelona’s fluid movement and passing. Fourth is a duel between the wan-

05PGB08.indd 8

ing Chelsea and the revivalist Tottenham Hotspur. And Liverpool, the English club that has won more European Cups and Champions League titles than any other? It is mired in mediocrity. Even after a 2-1 victory Saturday against Bolton, Liverpool is in the middle of the pack. Its points tally is closer to the bottom of the standings than the top. Its fans, many of them weaned from the cradle to sing You’ll Never Walk Alone to their team, are dwindling in number and in faith. Liverpudlians need to wake up.

They think the team, the club, belongs to them. It did once. Back in the 1960s, ’70s and ’80s, the power of Liverpool FC was undoubtedly the bond between the people and the players. But not for 20 years has Liverpool dominated English soccer. Only fleetingly has it been a force in Europe. On Saturday, there were 9,000 unoccupied seats, about one in five, at Anfield, the club’s famed stadium. Some fans blame Roy Hodgson, the manager for half a season, for the club’s awful performances. They mock him at Anfield, on

Twitter and on websites. It is as if Hodgson, a Southerner, does not belong in that northern city. He is the wrong fit, like a man’s hand in a woman’s glove. Maybe he is. Maybe Hodgson, old-fashioned and worthy as he is, underestimated what a mess he walked into when he left the London club Fulham for Liverpool in July. Maybe he fell for Anfield’s history, for the time when Liverpool made • TURN TO SOCCER, 7B



As Liverpool flounders, manager Hodgson walks alone

1/5/2011 4:19:21 AM



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Edition, del 05 january del 2011