Algeria Begins ‘Final Assault’ on Gas Field; 7 Hostages Reported Killed





BAMAKO, Mali — The hostage crisis in the Algerian desert appeared to be reaching a bloody conclusion Saturday as the official Algerian news agency reported that the army had launched a final assault on the gas field taken over by Islamist militants, killing 11 of them, but only after they had executed seven hostages.




“In principle, it’s all over,” a senior Algerian government official said from Algiers. The official said that security forces were “doing clean-up” to make sure some of the kidnappers were not hiding in the sprawling industrial complex.


Philip Hammond, the British defense secretary, said at a news conference in London that the Algerian military operation was over, but he called the loss of life since the start of the crisis “appalling and unacceptable.” United States Defense secretary Leon E. Panetta, who appeared with Mr. Hammond, said he did not yet have reliable information about the Americans at the facility, although the Algerian official said two had been found “safe and sound.”


The news agency report did not give the nationalities of those it said were executed, and it remained unclear if there were other hostages at the remote plant and whether they were alive. Earlier news reports said between 10 and dozens of hostages from several nations were in the hands of the kidnappers as of Friday.


United States officials said last week that “seven or eight” Americans had been at the In Amenas field when it was seized by the militants on Wednesday.


One American, Frederick Buttaccio, 58, of Katy, Tex., was confirmed dead on Friday, and the French government said one of its citizens, identified as Yann Desjeux, had also died before Saturday’s raid. The British government earlier said at least one Briton was killed, and an Algerian state news agency said 12 Algerians had died as of Friday.


The Algerian official insisted that no precise tally of the dead had yet been made, and that it would be difficult to establish one quickly. “There are corpses that are totally charred,” he said. “We’ve got to do identification work. It’s very difficult.” It was not immediately clear why the bodies were burned, although the Algerian press agency said the militants had set fire to part of the complex Friday night, which prompted the troops to launch their assault Saturday. Saturday’s assault on the attackers, if it swept up all the attackers, would bring to an end a four-day siege involving dozens of hostages and kidnappers that drew criticism from Western governments for the tough manner in which it was handled by the Algerian security services. Attacks on the kidnappers by the government forces have caused an unknown number of deaths among the hostages, in addition to those who were executed by the Al Qaeda-affiliated militants.


One Algerian who managed to escape told France 24 television late Friday night, that the kidnappers said “We’ve come in the name of Islam, to teach the Americans what Islam is.” The haggard-looking Algerian, interviewed at the airport in Algiers, said the kidnappers then immediately executed five hostages. The militants who attacked the plant said it was in retaliation for French troops sweeping into Mali this month to stop an advance of Islamists south toward the capital.


The Algerian state oil company, Sonatrach, said Saturday that the attackers had evidently mined the facility with the intention of blowing it up and that the company was working to disable the mines.


Throughout the siege, precise information about the number of killed has been difficult to obtain from the remote site, with the government putting out varying figures.


The Algerians have rejected the criticism of its go-it-alone approach, toughest from the British and Japanese governments whose nationals were among those kidnapped, saying they have had years of experience dealing with terrorist attacks. The Algerian government has also denied launching an assault on the facility, saying troops were merely responding — on Thursday — to the militants’ attempts to leave the field with with hostages.


The government official acknowledged Saturday morning though that this week’s assault was of a scale and complexity the country had never experienced before.


“This was a multinational operation,” he said of the kidnappers. “These are not Algerians. They’ve come from all over, Tunisia, Egypt, Mauritania. It’s the first time we’ve handled something on this scale. This one is different, it’s of another dimension,” he said. Although some of the escaped hostages in recent days have said some of the militants were not from Algeria, it is not yet clear that none were, and the Algerian government and militants have previously said the mastermind was an Algerian who had broken away from Al Qaeda in the Islamic Maghreb.


Nonetheless, the brazenness of the assault — dozens of Islamist fighters attacking one of the country’s most important gas-producing facilities — is likely to call into question Algeria’s much vaunted security strategy in dealing with the Islamic militants who shelter in its southern deserts, near the Mali border.


The Algerians have made a virtue out of keeping a lid on these militants, pushing them towards Mali in a strategy of modified containment, and ruthlessly stamping them out when they attempt an attack in the interior of the country. So far it has worked, and the country’s extensive oil and gas fields, an extremely important revenue source, have been protected.


That relative success had allowed Algeria to take a hands-off approach to the Islamist conquest of northern Mali in recent months, even while western governments have pleaded with it to become more directly involved in confronting the militants, who move across the hazy border between the two countries.


But now, with this week’s attack, Algeria may have to rethink its approach, analysts suggest, and engage in a more frontal strategy against the Islamists.


The senior government official appeared to acknowledge this in the interview Saturday, saying: “This has international implications. This is not just about us, it’s international.”


If the outcome represents a relative setback for Algeria, it could be viewed as a decided victory for Islamists who carried out the assault, who achieved several of their shared perennial goals: killing large numbers of westerners and disrupting states they have put on their enemies list — including Algeria.


Indeed, the militants said Friday they plan more attacks in Algeria, in a report carried on a Mauritanian news site that often carries their statements.


Steven Erlanger and Scott Sayare contributed reporting from Paris and Elisabeth Bumiller from London. .



This article has been revised to reflect the following correction:

Correction: January 19, 2013

Because of an editing error, an earlier version of this article misstated the nationality of a government official who said security forces were searching the gas complex. The official was Algerian, not Turkish.



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Social media dispute resolution stumps some companies






(Reuters) – If HBO cuts out on you in the middle of the latest “Girls” episode, and you have Charter Communications Inc as your cable provider, don’t try tweeting your dismay to their customer service department. Nobody will hear your lament.


Charter, the fourth largest cable provider in the U.S. with 5.2 million customers across 25 states, closed up its social-media based customer service team in December. “Umatter2Charter,” as it was known, had been taking customer complaints over Twitter and Facebook and trying to resolve them, but the company says it is now done with working out customer service issues in social media forums.






The move, which might seem to conflict with the growth of social media, highlights the difficulty some businesses are having with free-flowing, round-the-clock social media, its public nature and the expectation of immediate responses.


With Facebook users numbering about a billion and Twitter drawing 200 million, it might be hard to believe that any retail enterprise would drop out of the fray, but Charter isn’t the only major company to announce such a move. Also in December, the largest single grocery store in New England – the Wegmans in Northborough, Massachusetts – shuttered its Facebook page despite having some 8,000 fans.


“It’s a tough sport,” says J.D. Peterson, vice president of product marketing for San Francisco-based Zendesk, which helps companies manage customer service. “The real-time nature of it – at times the volume that can come from it – it’s very new and different for businesses.”


While Peterson’s company recommends going where the customers are – and a big chunk are clearly on social media – Peterson says not all businesses share the same philosophy or have the ability to engage those consumers in these open forums. But any company that has a significant online presence doesn’t really have a choice, he says, working with consumers through social media is expected of them.


Advocates for the use social media say the challenge actually presents an opportunity for businesses – showing they are responsive to complaints and care about their customers can bring in revenue.


“I have seen this time and time again, and the end result is that the interaction often turns an irate customer into an advocate for the brand. And that is worth it’s weight in gold,” says Mike Rowan, chief marketing office for Atlanta-based Swarm, which manages social media for companies.


That’s certainly the way retailer Lands’ End, a division of Sears Holdings Corp, sees it.


“When we started using social media tools like Facebook and Twitter in early 2009, it gave us a new opportunity to do what we’ve done for 50 years, which is connect with our customers,” says Michele Casper, Lands’ End’s senior director of public relations. “Whether it is through social media, our call centers or online, we offer the same level of customer service through each channel.”


DIVERTING COURSE


Charter says it is not walking away completely from social media – just the idea of providing customer service via Twitter. The company says it has ample other avenues for consumers to get help – including telephone, customer service counters and live chat on its web page.


“We communicate with thousands of customers each day on the phone and in person, and that’s where we’ll focus our efforts,” says Charter spokeswoman Anita Lamont. “While social media is a method some consumers choose to seek help, Charter offers phone and web-based contact solutions where all customers can access resources to provide assistance.”


The abandonment of the Facebook page at the Massachusetts Wegmans store, which caused a great fuss among the store’s “fans,” was, in large part, due to the inability to respond quickly enough to consumers. Store personnel couldn’t break off enough time from their other roles to constantly monitor the page, Wegmans spokeswoman Jo Natale says, allowing comments to sit unanswered – a no-no in the world of social media.


“Our top priority has always been, and will continue to be, providing incredible service to customers who shop in our stores,” she says. “And it isn’t as though there aren’t other avenues for folks to connect with us if they have a question or concern.”


As much as customers expressed surprise and dissatisfaction at the decision, Natale says, it came down to a decision that if the store couldn’t serve the Facebook page at a level it felt was expected that it shouldn’t do it at all.


“They quickly discovered, once the store opened and got very, very busy, that it wasn’t so easy to stay on top of comments or to find the time to post,” Natale says. “In a retail operation like ours, there isn’t anyone sitting at a PC or checking a mobile device throughout the day. It’s a fast-paced business that requires our people to be on the floor serving customers.”


(The author is a Reuters contributor. The opinions expressed are his own)


(Follow us @ReutersMoney or at http://www.reuters.com/finance/personal-finance; Editing by Beth Pinsker and Tim Dobbyn)


Social Media News Headlines – Yahoo! News





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Record 73 early entries for NFL draft


NEW YORK (AP) — A record 73 underclassmen, including six first-team All-Americans, have been approved for the NFL draft on Saturday.


That overall number of early entries is eight more than last year.


The six All-Americans are safety Matt Elam of Florida, tight end Zach Ertz of Stanford, tackle Luke Joeckel of Texas A&M, defensive end Bjoern Werner of Florida State, linebacker Jarvis Jones of Georgia and cornerback Dee Milliner of national champion Alabama.


Also approved former LSU cornerback-kick returner Tyrann Mathieu, a 2011 All-American who was kicked off the Tigers before last season.


The NFL draft will be April 25-27 in New York.


___


Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL


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



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


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Boeing Closer to Answer on 787s, but Not to Getting Them Back in Air


Issei Kato/Reuters


Safety inspectors looked over a 787 on Friday in Japan. The plane made an emergency landing after receiving a smoke alarm.







With 787 Dreamliners grounded around the world, Boeing is scrambling to devise a technical fix that would allow the planes to fly again soon, even as investigators in the United States and Japan are trying to figure out what caused the plane’s lithium-ion batteries to overheat.




Ray LaHood, the transportation secretary, made it clear on Friday that a rapid outcome was unlikely, saying that 787s would not be allowed to fly until the authorities were “1,000 percent sure” they were safe.


“Those planes aren’t flying now until we have a chance to examine the batteries,” Mr. LaHood told reporters. “That seems to be where the problem is.”


The Federal Aviation Administration on Wednesday took the rare step of grounding Boeing’s technologically advanced 787s after a plane in Japan made an emergency landing when one of its two lithium-ion batteries set off a smoke alarm in the cockpit. Last week at Boston’s Logan Airport, a battery ignited in a parked 787.


The last time the government grounded an entire fleet of airplanes was in 1979, after the crash of a McDonnell Douglas DC-10.


The grounding comes as the United States is going through a record stretch of safe commercial jet flying: It has been nearly four years since a fatal airline crash, with nearly three billion passengers flying in that period. The last airliner crash, near Buffalo, N.Y., came after a quiet period of two and a half years, which suggests a declining crash rate.


Investigators in Japan said Friday that a possible explanation for the problems with the 787’s batteries was that they were overcharged — a hazard that has long been a concern for lithium-ion batteries. But how that could have happened to a plane that Boeing says has multiple systems to prevent such an event is still unclear.


Given the uncertainty, it will be hard for federal regulators to approve any corrective measures proposed by Boeing. To lift the grounding order, Boeing must demonstrate that any fix it puts in place would prevent similar episodes from happening.


The government’s approach, while prudent, worries industry officials who fear it does not provide a rapid exit for Boeing.


The F.A.A. typically sets a course of corrective action for airlines when it issues a safety directive. But in the case of the 787, the government’s order, called an emergency airworthiness directive, required that Boeing demonstrate that the batteries were safe but did not specify how.


While the government and the plane maker are cooperating, there are few precedents for the situation.


“Everyone wants the airplane back in the air quickly and safely,” said Mark V. Rosenker, a former chairman of the National Transportation Safety Board. “But I don’t believe there will be a corner cut to accomplish that. It will happen when all are confident they have a good solution that will contain a fire or a leak.”


Boeing engineers, Mr. Rosenker said, are working around the clock. “I bet they have cots and food for the engineers who are working on this,” he said. “They have produced a reliable and safe aircraft and as advanced as it is, they don’t want to put airplanes in the air with the problems we have seen.”


The government approved Boeing’s use of lithium-ion batteries to power some of the plane’s systems in 2007, but special conditions were imposed on the plane maker to ensure the batteries would not overheat or ignite. Government inspectors also approved Boeing’s testing plans for the batteries and were present when they were performed.


Even so, after the episode in Boston, the federal agency said it would review the 787’s design and manufacturing with a focus on the electrical systems and batteries. The agency also said it would review the certification process.


The 787 has more electrical systems than previous generations of airplanes. These systems operate hydraulic pumps, de-ice the wings, pressurize the cabin and handle other tasks. The plane also has electric brakes instead of hydraulic ones. To run these systems, the 787 has six generators with a capacity equivalent to the power needed by 400 homes.


Nicola Clark and Christopher Drew contributed reporting.



This article has been revised to reflect the following correction:

Correction: January 19, 2013

An earlier version of this article misstated how regulators responded to small cracks found in the wings of the Airbus A380, and when those cracks were found. Regulators required inspections, followed by fixes, last year, not two years ago; the plane was not grounded.



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India Ink: Image of the Day: Jan. 18

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Why Won’t the NRA Say Anything About Its (Possibly Fake) New Video Game?






If this app is, in fact, an unlicensed kind of hoax using the NRA acronym without permission, you’d think the NRA might want to squash the brand association quickly. Despite the gun lobby’s slow response to the Newtown massacre, the NRA isn’t afraid of issuing cease and desists or suing President Obama, the District of Columbia, or the Department of Justice.


RELATED: One Month After Newtown, NRA Releases First-Person Shooter Game with AK-47






What’s more, as ArsTechnica’s Kyl Orland points out, the NRA’s earlier efforts at officially licensed video games have been successful in the lobby’s seemingly unending efforts to the turn gun-violence debate away from guns and toward other industries accused of stoking violence. Orland writes:



So Practice Range fits right into the NRA’s arguments about video games’ insidious effects on our society. “There’s nothing wrong with guns in video games per se,” the organization seems to be saying; “the problem is the way those guns are used by most of the big-money game industry in service of ultra-violent revenge fantasies. If only the game industry could use its immense influence and power to promote responsible, safe use of guns, as we have with our humble app, the world might be a different place!”



If the app isn’t the NRA’s, then the app and the controversy surrounding it would seem to present an opportune time for NRA CEO Wayne LaPierre to hammer home his point about violence in video games. In his notorious post-Newtown press conference, LaPierre in the days following blamed the gaming industry for mass violence:



And here’s another dirty little truth that the media try their best to conceal: There exists in this country a callous, corrupt and corrupting shadow industry that sells, and sows, violence against its own people.



The video-game industry has been reeling as it struggles to put together a lobbying defense of its own. Of course, all these theories would be moot if the app is indeed the NRA’s. As of today, the app is still up in the iTunes Store.


Gaming News Headlines – Yahoo! News





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Hamilton: Armstrong must tell everything he knows


Tyler Hamilton recognized what he saw during Lance Armstrong's televised confession to doping.


"He's broken. He's broken," Hamilton said in an interview Friday with The Associated Press. "I've never seen him even remotely like that. It doesn't please me to see that."


Hamilton rode for Armstrong's U.S. Postal Service team during his first three Tour de France titles. Hamilton's public confessions to doping — first in a candid-but-halting "60 Minutes" interview in 2011, then later in a tell-all book that came out last summer — provided key evidence in the case against Armstrong.


On Thursday, Armstrong's interview with Oprah Winfrey aired, and the cyclist admitted to using performance-enhancing drugs to fuel all seven of his Tour de France victories.


Hamilton, who said he felt a huge sense of relief after telling the truth, applauded Armstrong's decision to come clean, calling it a "big first step," but only a beginning.


"It's what he does moving forward," Hamilton said in a phone interview. "He's saying some of the right things now but the proof is in the pudding. If he just goes and hides away, people are not going to be happy. But if he does the right thing, speaks to Travis Tygart and WADA and tells everything he knows, that's going to make a big difference."


Both Tygart, head of the U.S. Anti-Doping Agency, and World Anti-Doping Agency director general David Howman have said Armstrong will need to offer more than a televised confession to make amends and possibly have his lifetime sports ban reduced.


While admitting to doping in his interview, Armstrong contradicted a key point of Hamilton's: That Armstrong told him he tested positive during the 2001 Tour de Suisse and conspired with International Cycling Union officials to cover it up — in exchange for a donation.


"That story wasn't true. There was no positive test, no paying off of the labs. There was no secret meeting with the lab director," Armstrong told Winfrey.


Asked about that, Hamilton told the AP: "I stand by what I said. It's all out there. I don't know if it's a legal thing, or why he said that. It doesn't really bother me that much."


Hamilton was also among numerous riders who described the immense pressure Armstrong put on them to take part in the doping. Armstrong told Winfrey nobody was forced to dope.


"Nobody took a syringe and forced it into my arm. I made that decision on my own," Hamilton said. "But you did feel the pressure. When it was all set up for my first blood-doping experience in 2000, when I flew to Spain on Lance's private jet, I don't know what would've happened to me if I'd said, 'I'll stick with EPO but no blood doping.' I assume they would've been angry about it. For me, it was a no-brainer."


Armstrong said he had reached out to some of the people he felt he owed apologies. Hamilton has not heard from him, however, and didn't sound like he was waiting by the phone.


Hamilton called the entire episode a "huge life lesson" and said Armstrong can help the sport if he's willing to do more, especially if it involves providing information about doctors, managers and other higher-ups in cycling.


"There are still a lot of bad apples in this sport," Hamilton said. "Lance Armstrong did not act alone. There are plenty of people out there who still think they got away with it. I don't think he wants to rat anybody out. But he didn't do this by himself and he didn't learn this by himself."


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Phys Ed: Exercise Can Boost Flu Shot's Potency

Phys Ed

Gretchen Reynolds on the science of fitness.

As this year’s influenza season continues to take its toll, those procrastinators now hurrying to get a flu shot might wish to know that exercise may amplify the flu vaccine’s effect. For maximal potency, the exercise should be undertaken at the right time and involve the right dosage of sweat, according to several recent reports.

Flu shots are one of the best ways to lessen the risk of catching the disease. But they are not foolproof. By most estimates, the yearly flu vaccine blocks infection 50 to 70 percent of the time, meaning that some of those being inoculated gain little protection. The more antibodies someone develops, the better their protection against the flu, generally speaking. But for some reason, some people produce fewer antibodies to the influenza virus than others do.

Being physically fit has been found in many studies to improve immunity in general and vaccine response in particular. In one notable 2009 experiment, sedentary, older adults, a group whose immune systems typically respond weakly to the flu vaccine, began programs of either brisk walking or a balance and stretching routine. After 10 months, the walkers had significantly improved their aerobic fitness and, after receiving flu shots, displayed higher average influenza antibody counts 20 weeks after a flu vaccine than the group who had stretched.

But that experiment involved almost a year of dedicated exercise training, a prospect that is daunting to some people and, in practical terms, not helpful for those who have entered this flu season unfit.

So scientists have begun to wonder whether a single, well-calibrated bout of exercise might similarly strengthen the vaccine’s potency.

To find out, researchers at Iowa State University in Ames recently had young, healthy volunteers, most of them college students, head out for a moderately paced 90-minute jog or bike ride 15 minutes after receiving their flu shot. Other volunteers sat quietly for 90 minutes after their shot. Then the researchers checked for blood levels of influenza antibodies a month later.

Those volunteers who had exercised after being inoculated, it turned out, exhibited “nearly double the antibody response” of the sedentary group, said Marian Kohut, a professor of kinesiology at Iowa State who oversaw the study, which is being prepared for publication. They also had higher blood levels of certain immune system cells that help the body fight off infection.

To test how much exercise really is required, Dr. Kohut and Justus Hallam, a graduate student in her lab, subsequently repeated the study with lab mice. Some of the mice exercised for 90 minutes on a running wheel, while others ran for either half as much time (45 minutes) or twice as much (3 hours) after receiving a flu shot.

Four weeks later, those animals that, like the students, had exercised moderately for 90 minutes displayed the most robust antibody response. The animals that had run for three hours had fewer antibodies; presumably, exercising for too long can dampen the immune response. Interestingly, those that had run for 45 minutes also had a less robust response. “The 90-minute time point appears to be optimal,” Dr. Kohut says.

Unless, that is, you work out before you are inoculated, another set of studies intimates, and use a dumbbell. In those studies, undertaken at the University of Birmingham in England, healthy, adult volunteers lifted weights for 20 minutes several hours before they were scheduled to receive a flu shot, focusing on the arm that would be injected. Specifically, they completed multiple sets of biceps curls and side arm raises, employing a weight that was 85 percent of the maximum they could lift once. Another group did not exercise before their shot.

After four weeks, the researchers checked for influenza antibodies. They found that those who had exercised before the shot generally displayed higher antibody levels, although the effect was muted among the men, who, as a group, had responded to that year’s flu vaccine more robustly than the women had.

Over all, “we think that exercise can help vaccine response by activating parts of the immune system,” said Kate Edwards, now a lecturer at the University of Sydney, and co-author of the weight-training study.

With the bicep curls, she continued, the exercises probably induced inflammation in the arm muscles, which may have primed the immune response there.

As for 90 minutes of jogging or cycling after the shot, it probably sped blood circulation and pumped the vaccine away from the injection site and to other parts of the body, Dr. Kohut said. The exercise probably also goosed the body’s overall immune system, she said, which, in turn, helped exaggerate the vaccine’s effect.

But, she cautions, data about exercise and flu vaccines is incomplete. It is not clear, for instance, whether there is any advantage to exercising before the shot instead of afterward, or vice versa; or whether doing both might provoke the greatest response – or, alternatively, be too much and weaken response.

So for now, she says, the best course of action is to get a flu shot, since any degree of protection is better than none, and, if you can, also schedule a visit to the gym that same day. If nothing else, spending 90 minutes on a stationary bike will make any small twinges in your arm from the shot itself seem pretty insignificant.

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DealBook: Michael Dell’s Empire in a Buyout Spotlight

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Michael J. de la Merced contributed reporting.


This post has been revised to reflect the following correction:

Correction: January 18, 2013

An earlier version of this article misstated when an energy hedge fund raised money from outside investors. It was in 2011, not earlier this year.

A version of this article appeared in print on 01/18/2013, on page B1 of the NewYork edition with the headline: Michael Dell’s Empire In a Buyout Spotlight.
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Cameron to Outline a Recast European Role for Britain



Weighted down by centuries of entrenched wariness in this island nation toward the Continent — and the knowledge that a gallery of his predecessors as Conservative prime ministers saw their tenures blighted by divisions within the party over the issue — Mr. Cameron is heading for Amsterdam on Friday to set out his vision of a sharply whittled-down role for Britain in the affairs of 21st-century Europe.


The speech in the Netherlands, carefully chosen as a country with a strong historical friendship with Britain, is a watershed moment for Mr. Cameron, and for Britain. It could be a deeply jarring occasion, as well, for other European nations, which have grown increasingly impatient, angry even, with Britain’s policy during the crisis in the euro zone. Some European officials have described as blackmail its use of the crisis — one that Britain, with the pound, has largely escaped — to demand a new, “pick-and-mix” status for itself within the 27-nation European Union.


After months of delay, Mr. Cameron is expected to brush aside the warnings of the Obama administration and European leaders and call for a referendum on whether Britain should remain squarely in Europe or negotiate a more arm’s-length relationship, most likely before the next Parliament’s mandate expires in 2018. In a clamorous House of Commons on Wednesday, the prime minister set out his thinking.


“Millions of people in this country, myself included, want Britain to stay in the European Union,” he said. “But they believe that there are chances to negotiate a better relationship. Throughout Europe, countries are looking at forthcoming treaty change, and asking, ‘What can I do to maximize my national interest?’ That is what the Germans will do. That is what the Spanish will do. That is what the British should do.”


For months, Mr. Cameron has been holding off on a promise to explain just what he wants from Europe. As a reformist Conservative pressing ahead with, among other things, a plan to legalize gay marriage, he has scant common ground with the “little Englanders” in his party, the core of about 100 members who make up a third of its representation in Parliament.


But Mr. Cameron can see votes, too, in the strong anti-Europe currents that run wherever people in Britain gather.


In pubs and bars, on radio and in Parliament itself, talk of the European Union tends to center on the bloc’s real — and, in some cases, apocryphal — abuses: its highhanded, bloated bureaucracy, with nearly 1,000 featherbedded officials earning more than Mr. Cameron’s $230,000 salary as prime minister; its endless proliferation of rules on everything from the length of dog leashes to the shape of carrots; the recent claim by a former high-ranking Cameron aide that government ministers spend 40 percent of their time dealing with the mass of pettifogging European “directives,” many of them widely ignored elsewhere in Europe.


Not only has Mr. Cameron been hemmed in by deep divisions over Europe within the Conservative Party — an issue that helped unseat Edward Heath, Margaret Thatcher and John Major as prime ministers — but he has also been wary of stirring a fresh wave of anger among other European leaders, particularly Chancellor Angela Merkel of Germany, a center-right politician and onetime ally in European councils.


Her aides have described her as frustrated with Mr. Cameron’s maneuvering and, as she is said to see it, his bid to take advantage of other European states as they struggle to save the euro and keep the most debt-laden nations, like Greece, Portugal and Spain, from dropping out of the European Union.


Concern about the reactions in Berlin and Paris prompted a last-minute rescheduling of the Amsterdam speech. Germany and France had protested that the original date, next Monday, might overshadow long-planned celebrations that day of the 50th anniversary of the treaty between them, itself a landmark in the building of postwar Europe, that sealed their reconciliation after the wounds of World War II.


Along with this, commentators say, Mr. Cameron has been recalculating the ways in which the European issue can be managed to bolster the Conservatives’ sagging prospects in a general election expected in 2015, in which polls show them lagging as much as 13 percentage points behind the opposition Labour Party. He has also been contending with heavy lobbying by American officials, including President Obama.


The Americans, diplomats say, have told Mr. Cameron squarely in private what made headlines here last week when a senior State Department official, Philip Gordon, who is assistant secretary for European affairs, spoke on the issue with British reporters. Mr. Gordon said a continued “strong British voice” in an “outward-looking” European Union was in America’s interests, and warned specifically against the referendum on Europe that is an important component in Mr. Cameron’s plans. “Referendums,” Mr. Gordon said, “have often turned countries inward.”


For all his delaying, his aides say, Mr. Cameron is ready now to outline a strategy for renegotiating Britain’s status in the European Union in a way that would keep Britain free from the centralizing forces at work. Other major European states, France and Germany in particular, see a new federal Europe with enhanced powers of fiscal oversight as essential to the long-term survival of the tottering euro.


Alan Cowell contributed reporting from Paris, and Stephen Castle from London.



This article has been revised to reflect the following correction:

Correction: January 17, 2013

An earlier version of this article misstated the year that a referendum approving Britain’s entry into the European Economic Community, the precursor to the European Union, was held. It was 1975, not 1974.



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PlayStation 4 and Xbox 720 could cost just $350, expected to launch this fall






Sony (SNE) and Microsoft (MSFT) are both expected to announce their next-generation gaming consoles at the Electronics Entertainment Expo in June, or even a little before then. While we have seen rumored specs for both the PlayStation 4 and the Xbox 720, one thing that has escaped us is a possible price tag. In a research note to investors on Monday, Colin Sebastian of Baird Equity Research suggested that both consoles could retail for between $ 350 and $ 400 in the U.S., Games Industry International reported. The analyst revealed that during the Consumer Electronics Show last week he spent time “with a number of companies involved in video game development and distribution,” who informed him that the next-generation consoles will be “largely built from ‘off the shelf’ high-end PC components, along with hybrid physical/digital distribution models, enhanced voice controls and motion sensing, and broad multi-media capabilities.”


[More from BGR: HTC One SV review]






Sebastian believes that “a PC-based architecture (Intel chips in the case of Xbox) should have a number of advantages over custom-developed silicon.” In his opinion, there will be less of a “learning curve” for software developers compared to completely new technology, and the cost of production and retail price points should be lower than prior console launches.


[More from BGR: Dell’s bold plan to reinvent itself: A USB-sized PC that gives access to Windows, Mac OS, Chrome OS]


Microsoft launched the Xbox 360 in 2005 with a top end price of $ 399, while Sony released the PlayStation 3 a year later for $ 499 and $ 599 respectively.


“It will be easier to build online services around PC chip architecture, including flexible business models (free-to-play, subscriptions) and multi-media (over the top) content offerings,” the analyst added. “For Microsoft, this design will also allow for more integration with Windows 8 and Windows Mobile devices.”


Sebastian expects Sony to launch the PlayStation 4 in October and Microsoft to launch the Xbox 720 in November.


This article was originally published on BGR.com


Gaming News Headlines – Yahoo! News




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Hawaii hometown backs Te'o after girlfriend hoax


LAIE, Hawaii (AP) — People in the small Hawaii hometown of Manti Te'o are offering support for the Notre Dame linebacker, after the story of his girlfriend and her death from leukemia were revealed as a hoax.


No one answered the door Wednesday evening and no one appeared to be inside the modest, single-story wood home of Te'o's parents, Brian and Ottilia Te'o, in the small coastal town of Laie on Oahu's northern shore where Manti Te'o, an All-American and Heisman Trophy finalist, was born.


But members of the mostly Mormon community said they were dumbfounded, and didn't believe he would have knowingly perpetrated such a story. The town of about 6,000 people, roughly an hour's drive from Honolulu, is home to a small satellite campus of Hawaii's Brigham Young University,


Lokelani Kaiahua said Te'o's parents were her classmates, and she knew them to have strong family values they instilled in their children.


"I just don't see something like that being made up from him or having any part of that because they're not those kind of people," she said while sitting and talking with friends a few doors down from the Te'o family home. "Everybody's kind of like 'what is going on?'"


According to media accounts that surrounded Te'o this season, his purported girlfriend, Lennay Kekua, died of leukemia in September. But on Wednesday, the website Deadspin.com posted a lengthy story saying there was no evidence that she ever existed.


Notre Dame officials then confirmed the hoax but were insistent that Te'o was only the victim.


Te'o is a hero and role model to many children in Laie and nearby small towns like Haaula, Kaaawa and Kahuku along the two-lane highway snaking through Oahu's northeastern coast.


Students at Haaula often wear Notre Dame jerseys with his number "5'' on them, and Te'o has returned to the area to talk to students about the importance of staying in school, said school administrator Makala Paakaula, 38.


"He always keeps giving back to his community," Paakaula said.


Te'o should be lauded for uniting Notre Dame during his senior year when he could have left for the NFL, she said.


"It's amazing how he brought together the whole school to become one ohana, one family, where they all belonged, where they all had a purpose," Paakaula said.


Many people expressed anger toward whoever was behind the entire affair.


"If he got hoaxed, that's not his fault — shame on them," Paakaula said, "because he has a very trusting, open heart."


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Ask Well: Help for the Deskbound

One of the problems with office work is that many of us are using chairs that don’t fit our bodies very well or give adequate support to the back, said Jack Dennerlein, a professor at Northeastern’s Bouvé College of Health Sciences in Boston who specializes in ergonomics and safety. If you are experiencing back pain, you may be able to adjust your chair to increase its lumbar support. A good office chair will have an adjustable seat pan that you can slide back and forth as well as adjustable back and height features. First, sit in the chair so the lumbar region of your back, your lower back, is resting on the back support. At the same time, your feet should be resting comfortably on the ground and the back of your knees should be about three-finger widths from the edge of the chair, said Dr. Dennerlein.

Some high-end chair brands have adjustable seat pans, including the Steelcase Leap chair, which retails for between $800 and $900 and offers an adjustable seat and plenty of lumbar support.

The Steelcase Criterion chair sells anywhere from $350 to $850 online, depending on the model, and boasts seven different adjustments “to offer support through the full range of dynamic seating postures.”

The HumanScale Freedom chair is the winner of several design awards and also has an adjustable seat pan as well as “weight-sensitive recline, synchronously adjustable armrests, and dynamically positioned headrest.” ($400 to $1,400)

The Herman Miller Aeron chair is also popular because it comes in small, medium and large sizes and claims a PostureFit design that “supports the way your pelvis tilts naturally forward, so that your spine stays aligned and you avoid back pain.” ($680 to $850)

If all that sounds really wonderful and really too expensive, there may be a simpler solution to ease your back pain at work. Invest $15 to $30 in a lumbar chair pillow to make sure your back is getting the support it needs even when you are not sitting in a $900 chair.

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DealBook: Profit Drops 63% at Bank of America After Mortgage Settlements

10:12 a.m. | Updated

More than four years after the credit crisis, bad mortgages continue to weigh on Bank of America.

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

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

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

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

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

The bank’s stock was down more than 3 percent, to $11.34 a share, in morning trading.

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

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

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

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

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

Bank of America’s results are a reminder of past mistakes, including the takeover of Countrywide, a company that symbolized the reckless lending practices before the housing market crash.

The results also come in contrast to earnings from the bank’s competitors, including Wells Fargo and JPMorgan, which reported record profit in recent days on the back of a booming mortgage business. As most banks capitalize on low interest rates, Bank of America is retrenching somewhat. It recently sold about 20 percent of its loan servicing business.

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

Bank of America also reached a $2.43 billion settlement with shareholders last fall. The agreement, stemming from its takeover of Merrill Lynch, resolved accusations that the bank misled investors about Merrill’s health.

“We put a lot of risk behind us in 2012,” Bruce R. Thompson, the company’s chief financial officer, said in a conference call on Thursday. “We just feel like we’re in a much better place going into 2013.”

In another retreat from the mortgage mess, the bank reported that the number of home loans delinquent for more than 60 days in the fourth quarter fell 17 percent. The bank’s provision for credit losses declined 24 percent from the same period a year ago.

The bank is getting leaner, too, as part of the broad “New BAC” cost-cutting initiative, which Mr. Thompson declared to be “on track.”

As of the end of 2012, the company had 267,190 full-time employees, down 5,404 from the third quarter. It had 14,601 fewer employees than it had at the end of 2011.

Aside from mortgages, the bank improved on a variety of fronts. It reinforced its capital levels and increased its consumer and business banking income.

The wealth management unit, which includes Merrill Lynch’s sprawling brokerage business, notched record profit of $578 million, up 79 percent.

“We feel very good about the momentum we’ve seen,” Mr. Thompson said.

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WORLD: France Battles Rebels in Mali

January 16, 2013

The Times's Greg Winter talks about the escalating conflict in Mali, where the government along with France is battling Islamist insurgents.

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Leaked BlackBerry 10 sales manual reveals new images and details







The buzz continues to mount leading up to the January 30th unveiling of Research In Motions’s (RIMM) next-generation BlackBerry 10 platform, but we’re not sure how much is left to learn. Many BlackBerry 10 features have already been announced, we’ve seen RIM’s first two next-generation handsets — the BlackBerry Z10 and the BlackBerry X10 — a number times, and now Rogers’ internal sales manual for BlackBerry 10 devices has leaked thanks to CrackBerry. The manual is packed full of images and it also confirms some specs reported a few months ago, and the full document is embedded at the source link below. RIM’s next-generation operating system and handsets will be unveiled during a press conference on January 30th, and BGR will be on hand reporting live.


[More from BGR: Dell’s bold plan to reinvent itself: A USB-sized PC that gives access to Windows, Mac OS, Chrome OS]






This article was originally published on BGR.com


Gadgets News Headlines – Yahoo! News





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Lance Armstrong may not be done confessing


Lance Armstrong may not be done confessing.


His interview with Oprah Winfrey hasn't aired yet, but already some people want to hear more — under oath — before Armstrong is allowed to compete in elite triathlons, a sport he returned to after retiring from cycling in 2011. In addition to stripping him of all seven of his Tour de France titles last year, anti-doping officials banned Armstrong for life from sanctioned events.


"He's got to follow a certain course," David Howman, director general of World Anti-Doping Agency, told the AP. "That is not talking to a talk show host."


Armstrong already has had conversations with U.S. Anti-Doping Agency officials, touching off speculation that the team leader who demanded loyalty from others soon may face some very tough choices himself: whether to cooperate and name those who aided, knew about or helped cover up a sophisticated doping ring that Armstrong ran on his tour-winning U.S. Postal Service squads. Former teammate Frankie Andreu, one of several riders Armstrong cast aside on his ride to the top of the sport, said no one could provide a better blueprint for cleaning up the sport.


"Lance knows everything that happened," Andreu told The Associated Press. "He's the one who knows who did what because he was the ringleader. It's up to him how much he wants to expose."


World Anti-Doping Agency officials said nothing short of "a full confession under oath" would even cause them to reconsider the ban. Although Armstrong admitted to Winfrey on Monday that he used performance-enhancing drugs, Howman said that is "hardly the same as giving evidence to a relevant authority." The International Cycling Union also urged Armstrong to tell his story to an independent commission it has set up to examine claims that the sport's governing body hid suspicious samples, accepted financial donations, and helped Armstrong avoid detection in doping tests.


Winfrey wouldn't detail what Armstrong said during their interview at a downtown Austin hotel. In an appearance on "CBS This Morning," she said she was "mesmerized and riveted by some of his answers." What had been planned as a 90-minute broadcast will be shown as a two-part special, Thursday and Friday, on Winfrey's OWN network.


The lifetime ban was imposed after a 1,000-page report by USADA last year outlined a complex, long-running doping program led by Armstrong. The cyclist also lost nearly all of his endorsements and was forced to cut ties with the Livestrong cancer charity he founded in 1997. The damage to Armstrong's reputation was just as severe.


The report portrayed him as well-versed in the use of a wide range of performance-enhancers, including steroids and blood boosters such as EPO, and willing to exploit them to dominate. Nearly a dozen teammates provided testimony about that drug regimen, among them Andreu and his wife, Betsy.


"A lot of it was news and shocking to me," Andreu said. "I am sure it's shocking to the world. There's been signs leading up to this moment for a long time. For my wife and I, we've been attacked and ripped apart by Lance and all of his people, and all his supporters repeatedly for a long time. I just wish they wouldn't have been so blind and opened up their eyes earlier to all the signs that indicated there was deception there, so that we wouldn't have had to suffer as much.


"And it's not only us," he added, "he's ruined a lot of people's lives."


Armstrong was believed to have left for Hawaii. The street outside his Spanish-style villa on Austin's west side was quiet the day after international TV crews gathered there hoping to catch a glimpse of him. Meanwhile, members of his legal team mapped out a strategy on how to handle at least two pending lawsuits against Armstrong, and possibly a third.


Former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, alleges in one of the lawsuits that Armstrong defrauded the U.S. government by repeatedly denying he used performance-enhancing drugs. The False Claims Act lawsuit could require Armstrong to return substantial sponsorship fees and pay a hefty fine. The AP reported earlier Tuesday that Justice Department officials were likely to join the whistleblower lawsuit before a Thursday deadline.


___


Jim Litke reported from Chicago, Jim Vertuno from Austin, Texas. Stephen Wilson in London and John L. Mone in Dearborn, Mich., also contributed to this report.


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

Face masks help prevent people from getting the flu. But how much protection do they provide?

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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DealBook: JPMorgan Cuts Dimon’s Pay, Even as Profit Surges

Even as profit surged, the board of JPMorgan Chase cut the pay package of its chief executive, Jamie Dimon, by 50 percent, in light of a multibillion-dollar trading loss last year.

By the overall numbers, it was a good year for JPMorgan. The bank reported a record profit of $5.7 billion for the fourth quarter, up 53 percent from the period a year earlier. Revenue was also strong, rising 10 percent, to $23.7 billion for the period.

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

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

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

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

On an earnings call on Wednesday, Mr. Dimon emphasized that this latest quarter largely signaled the end of the trading debacle. “We are getting near the end of it,” he said. Mr. Dimon acknowledged that the board “had a tough job” in assessing how to reduce his total compensation for the year. While “this was one huge mistake,” Mr. Dimon said, the board had to look at “the positives and the negatives.” He added that he “respects their decision.”

Although Mr. Dimon’s compensation fell sharply, he dodged much of the criticism for the trading losses in two reports released on Wednesday. One report details the result of a sweeping investigation into the trades led by Michael J. Cavanagh, formerly the bank’s chief financial officer, and the other outlines the board’s findings.

In the case of Mr. Dimon, the reports mainly took aim at his over-reliance on senior managers. “He could have better tested his reliance on what he was told,” the investigation found.

Instead, much of the blame centered on Ina R. Drew, who oversaw the chief investment unit where the trading took place. Ms. Drew resigned in May shortly after the losses were disclosed.

Under Ms. Drew’s leadership, there were failures “in three critical areas,” including the execution of a complex trading strategy and gaps in oversight of the large portfolio, according to the investigation. The report indicated that Ms. Drew failed “to appreciate the magnitude and significance of the changes” as the riskiness of the trades escalated.

Barry Zubrow, the bank’s former chief risk officer, was also singled out. Douglas Braunstein, who left his position as chief financial officer in November, was cited “for weaknesses in financial controls.” The investigation found that the organization should “have asked more questions or to have sought additional information about the evolution of the portfolio.”

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

For the full year, JPMorgan reported earnings of $21.3 billion, compared with $19 billion in 2011. Revenue in 2012, at $97 billion, was essentially flat.

Despite the rocky market conditions and uncertainty related to the budget impasse, the corporate-focused businesses reported nice gains. Investment banking fees jumped 54 percent, to $1.7 billion, with improvements in debt and equity underwriting. Revenue in the commercial banking group hit $1.75 billion, after the 10th consecutive quarter of loan growth.

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

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

Over all, the mortgage banking group posted profit of $418 million for the fourth quarter, compared with a loss of $269 million in the period a year earlier.

But those low interest rates also present a challenge for JPMorgan, which is dealing with glut of deposits. The bank reported average total deposits of $404 billion, up 10 percent from the fourth quarter of 2011.

As deposits pile up, the situation is weighing on profitability. The margin on deposits continued to shrink, dropping to 2.44 percent from 2.76 percent the period a year earlier.

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

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

Still, the bank is dealing with other cases that could prove costly. New York’s attorney general, Eric T. Schneiderman, filed a lawsuit against the bank related to Bear Stearns, the troubled unit that JPMorgan bought in the depths of the financial crisis. In the suit, filed in October, the attorney general claimed JPMorgan had defrauded investors who bought securities created from shoddy mortgages.

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

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India Ink: Image of the Day: Jan. 15

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Tata Consultancy says demand in U.S. strong across segments






MUMBAI/BANGALORE (Reuters) – India’s top software services provider Tata Consultancy Services Ltd (TCS) said demand in the key U.S. market is strong across its business segments, with regional banks stepping up spending on technology.


The Mumbai-based company said on Monday that profit jumped 23 percent in the quarter ended December, beating analysts‘ expectations. TCS also gave an upbeat growth outlook, sending its shares up the most in more than eight months and prompting analyst upgrades on the stock.






Economic uncertainty in the United States had fuelled investor worry that clients may keep their IT budgets tight and postpone decision-making on technology spending.


“The U.S. is still a growth market,” Chief Financial Officer S Mahalingam told Reuters in an interview at his Mumbai office on Tuesday. “If it sneezes then we have got a big problem. (But) the demand is very good across all segments.”


The United States accounts for about half of TCS’ revenue, compared with more than 60 percent overall for India’s $ 100 billion outsourcing industry.


Banks, insurers and other financial services clients usually account for more than a third of the revenue at companies such as TCS’ rival Infosys Ltd , where better-than-expected results on Friday and an increased revenue outlook powered a 20 percent rise in its shares over two sessions.


“(The) U.S. economy has regional banks as well, and they are starting to spend. So there is growth,” Mahalingam said.


While Monday’s results prompted analysts from HSBC and CLSA to increase their ratings on TCS stock, some analysts said volume growth was not especially impressive.


Volumes, or billable hours, rose 1.25 percent on a sequential basis, while revenue in dollar terms increased 3.3 percent over the September quarter.


“The key disappointment was soft volume growth of 1.25 percent quarter-on-quarter. However, we remain assured by management’s optimistic outlook on FY14 growth,” Nomura analysts wrote in a note to clients.


(Editing by Tony Munroe and Ryan Woo)


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Oprah: Lance Armstrong admitted doping


AUSTIN, Texas (AP) — Lance Armstrong has finally come clean.


Armstrong confessed to doping during an interview with Oprah Winfrey taped Monday, just a couple of hours after a wrenching apology to staff at the Livestrong charity he founded and has now been forced to surrender.


The day ended with 2 1/2 hours of questions from Winfrey at a downtown Austin hotel, where she said the world's most famous cyclist was "forthcoming" as she asked him in detail about doping allegations that followed him throughout his seven Tour de France victories.


Speaking on "CBS This Morning," Winfrey said Tuesday she had not planned to address Armstrong's confession before the interview aired on her OWN network but, "by the time I left Austin and landed in Chicago, you all had already confirmed it."


"So I'm sitting here now because it's already been confirmed," she added.


The session was to be broadcast on Thursday but Winfrey said it will now run in two parts over two nights because there is so much material.


Winfrey would not characterize whether Armstrong seemed contrite but said he seemed ready for the interview. "I would say that he met the moment," she said.


"I don't think 'emotional' begins to describe the intensity or the difficulty he experienced in talking about some of these things."


The confession was a stunning reversal for a proud athlete and celebrity who sought lavish praise in the court of public opinion and used courtrooms to punish his critics.


For more than a decade, Armstrong dared anybody who challenged his version of events to prove it. Finally, he told the tale himself after promising over the weekend to answer Winfrey's questions "directly, honestly and candidly."


The cyclist was stripped of his Tour titles, lost most of his endorsements and was forced to leave Livestrong last year after the U.S. Anti-Doping Agency issued a damning, 1,000-page report that accused him of masterminding a long-running doping scheme.


The International Cycling Union, or UCI, issued a statement on Tuesday saying it was aware of the reports that Armstrong had confessed to Winfrey. The governing body for the sport urged Armstrong to tell his story to an independent commission it has set up to examine claims it covered up suspicious samples from the cyclist, accepted financial donations from him and helped him avoid detection in doping tests.


Armstrong started Monday with a visit to the headquarters of Livestrong, the charity he founded in 1997 and turned into a global force on the strength of his athletic dominance and personal story of surviving testicular cancer that had spread to his lungs and brain.


About 100 Livestrong staff members gathered in a conference room as Armstrong told them "I'm sorry." He choked up during a 20-minute talk, expressing regret for the long-running controversy tied to performance-enhancers had caused, but stopped short of admitting he used them.


Before he was done, several members were in tears when he urged them to continue the charity's mission, helping cancer patients and their families.


"Heartfelt and sincere," is how Livestrong spokeswoman Katherine McLane described his speech.


Armstrong later huddled with almost a dozen people before stepping into a room set up at a downtown Austin hotel for the interview with Winfrey. The group included close friends and lawyers. They exchanged handshakes and smiles, but declined comment.


Winfrey has promoted her interview, one of the biggest for OWN since she launched the network in 2011, as a "no-holds barred" session, and after the voluminous USADA report — which included testimony from 11 former teammates — she said she went into the session with 112 questions ready to go. Not all of them were asked, she said, but many were.


USADA chief executive Travis Tygart, a longtime critic of Armstrong's, called the drug regimen practiced while Armstrong led the U.S. Postal Service team "the most sophisticated, professionalized and successful doping program that sport has ever seen." USADA did not respond to requests for comment about Armstrong's confession.


For years, Armstrong went after his critics ruthlessly during his reign as cycling champion. He scolded some in public and didn't hesitate to punish outspoken riders during the race itself. He waged legal battles against still others in court.


At least one of his opponents, the London-based Sunday Times, has already filed a lawsuit to recover about $500,000 it paid him to settle a libel case, and Dallas-based SCA Promotions, which tried to deny Armstrong a promised bonus for a Tour de France win, has threatened to bring another lawsuit seeking to recover more than $7.5 million awarded by an arbitration panel.


In Australia, the government of South Australia state said Tuesday it will seek the repayment of several million dollars in appearance fees paid to Armstrong for competing in the Tour Down Under in 2009, 2010 and 2011.


"We'd be more than happy for Mr. Armstrong to make any repayment of monies to us," South Australia Premier Jay Weatherill said.


Betsy Andreu, the wife of former Armstrong teammate Frankie Andreu, was one of the first to publicly accuse Armstrong of using performance-enhancing drugs. She called news of Armstrong's confession "very emotional and very sad," and choked up when asked to comment.


"He used to be one of my husband's best friends and because he wouldn't go along with the doping, he got kicked to the side," she said. "Lance could have a positive impact if he tells the truth on everything. He's got to be completely honest."


Betsy Andreu testified in SCA's arbitration case challenging the bonus in 2005, saying Armstrong admitted in an Indiana hospital room in 1996 that he had taken many performance-enhancing drugs, a claim Armstrong vehemently denied.


"It would be nice if he would come out and say the hospital room happened," Andreu said. "That's where it all started."


Former teammate Floyd Landis, who was stripped of the 2006 Tour de France title for doping, has filed a federal whistle-blower lawsuit that accused Armstrong of defrauding the U.S. Postal Service. An attorney familiar with Armstrong's legal problems told the AP that the Justice Department is highly likely to join the lawsuit. The False Claims Act lawsuit could result in Armstrong paying a substantial amount of money to the U.S. government. The deadline for the department to join the case is Thursday, though the department could seek an extension if necessary.


According to the attorney, who works outside the government, the lawsuit alleges that Armstrong defrauded the U.S. government based on his years of denying use of performance-enhancing drugs. The attorney spoke on condition of anonymity because the source was not authorized to speak on the record about the matter.


The lawsuit most likely to be influenced by a confession might be the Sunday Times case. Potential perjury charges stemming from Armstrong's sworn testimony in the 2005 arbitration fight would not apply because of the statute of limitations. Armstrong was not deposed during the federal investigation that was closed last year.


Armstrong is said to be worth around $100 million. But most sponsors dropped him after USADA's scathing report — at the cost of tens of millions of dollars — and soon after, he left the board of Livestrong.


After the USADA findings, he was also barred from competing in the elite triathlon or running events he participated in after his cycling career. World Anti-Doping Code rules state his lifetime ban cannot be reduced to less than eight years. WADA and U.S. Anti-Doping officials could agree to reduce the ban further depending on what information Armstrong provides and his level of cooperation.


___


Litke reported from Chicago. Pete Yost in Washington also contributed to this report.


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Personal Best: Training Insights From Star Athletes

Of course elite athletes are naturally gifted. And of course they train hard and may have a phalanx of support staff — coaches, nutritionists, psychologists.

But they often have something else that gives them an edge: an insight, or even an epiphany, that vaults them from the middle of the pack to the podium.

I asked several star athletes about the single realization that made the difference for them. While every athlete’s tale is intensely personal, it turns out there are some common themes.

Stay Focused

Like many distance swimmers who spend endless hours in the pool, Natalie Coughlin, 30, used to daydream as she swam laps. She’d been a competitive swimmer for almost her entire life, and this was the way she — and many others — managed the boredom of practice.

But when she was in college, she realized that daydreaming was only a way to get in the miles; it was not allowing her to reach her potential. So she started to concentrate every moment of practice on what she was doing, staying focused and thinking about her technique.

“That’s when I really started improving,” she said. “The more I did it, the more success I had.”

In addition to her many victories, Ms. Coughlin won five medals in the 2008 Beijing Olympics, including a gold medal in the 100-meter backstroke.

Manage Your ‘Energy Pie’

In 1988, Steve Spence, then a 25-year-old self-coached distance runner, was admitted into the United States Long Distance Runner Olympic Development Program. It meant visiting David Martin, a physiologist at Georgia State University, several times a year for a battery of tests to measure Mr. Spence’s progress and to assess his diet.

During dinner at Dr. Martin’s favorite Chinese restaurant, he gave Mr. Spence some advice.

“There are always going to be runners who are faster than you,” he said. “There will always be runners more talented than you and runners who seem to be training harder than you. The key to beating them is to train harder and to learn how to most efficiently manage your energy pie.”

Energy pie? All the things that take time and energy — a job, hobbies, family, friends, and of course athletic training. “There is only so much room in the pie,” said Mr. Spence.

Dr. Martin’s advice was “a lecture on limiting distractions,” he added. “If I wanted to get to the next level, to be competitive on the world scene, I had to make running a priority.” So he quit graduate school and made running his profession. “I realized this is what I am doing for my job.”

It paid off. He came in third in the 1991 marathon world championships in Tokyo. He made the 1992 Olympic marathon team, coming in 12th in the race. Now he is head cross-country coach and assistant track coach at Shippensburg University in Pennsylvania. And he tells his teams to manage their energy pies.

Structure Your Training

Meredith Kessler was a natural athlete. In high school, she played field hockey and lacrosse. She was on the track team and the swimming team. She went to Syracuse University on a field hockey scholarship.

Then she began racing in Ironman triathlons, which require athletes to swim 2.4 miles, cycle 112 miles and then run a marathon (26.2 miles). Ms. Kessler loved it, but she was not winning any races. The former sports star was now in the middle of the pack.

But she also was working 60 hours a week at a San Francisco investment bank and trying to spend time with her husband and friends. Finally, six years ago, she asked Matt Dixon, a coach, if he could make her a better triathlete.

One thing that turned out to be crucial was to understand the principles of training. When she was coaching herself, Ms. Kessler did whatever she felt like, with no particular plan in mind. Mr. Dixon taught her that every workout has a purpose. One might focus on endurance, another on speed. And others, just as important, are for recovery.

“I had not won an Ironman until he put me on that structure,” said Ms. Kessler, 34. “That’s when I started winning.”

Another crucial change was to quit her job so she could devote herself to training. It took several years — she left banking only in April 2011 — but it made a huge difference. Now a professional athlete, with sponsors, she has won four Ironman championships and three 70.3 mile championships.

Ms. Kessler’s parents were mystified when she quit her job. She reminded them that they had always told her that it did not matter if she won. What mattered was that she did her best. She left the bank, she said, “to do my best.”

Take Risks

Helen Goodroad began competing as a figure skater when she was in fourth grade. Her dream was to be in the Olympics. She was athletic and graceful, but she did not really look like a figure skater. Ms. Goodroad grew to be 5 feet 11 inches.

“I was probably twice the size of any competitor,” she said. “I had to have custom-made skates starting when I was 10 years old.”

One day, when Helen was 17, a coach asked her to try a workout on an ergometer, a rowing machine. She was a natural — her power was phenomenal.

“He told me, ‘You could get a rowing scholarship to any school. You could go to the Olympics,’ ” said Ms. Goodroad. But that would mean giving up her dream, abandoning the sport she had devoted her life to and plunging into the unknown.

She decided to take the chance.

It was hard and she was terrified, but she was recruited to row at Brown. In 1993, Ms. Goodroad was invited to train with the junior national team. Three years later, she made the under-23 national team, which won a world championship. (She rowed under her maiden name, Betancourt.)

It is so easy to stay in your comfort zone, Ms. Goodroad said. “But then you can get stale. You don’t go anywhere.” Leaving skating, leaving what she knew and loved, “helped me see that, ‘Wow, I could do a whole lot more than I ever thought I could.’ ”

Until this academic year, when she had a baby, Ms. Goodroad, who is 37, was a rowing coach at Princeton. She still runs to stay fit and plans to return to coaching.

The Other Guy Is Hurting Too

In 2006, when Brian Sell was racing in the United States Half Marathon Championships in Houston, he had a realization.

“I was neck-and-neck with two or three other guys with two miles to go,” he said. He started to doubt himself. What was he doing, struggling to keep up with men whose race times were better than his?

Suddenly, it came to him: Those other guys must be hurting as much as he was, or else they would not be staying with him — they would be pulling away.

“I made up my mind then to hang on, no matter what happened or how I was feeling,” said Mr. Sell. “Sure enough, in about half a mile, one guy dropped out and then another. I went on to win by 15 seconds or so, and every race since then, if a withering surge was thrown in, I made every effort to hang on to the guy surging.”

Mr. Sell made the 2008 Olympic marathon team and competed in the Beijing Olympics, where he came in 22nd. Now 33 years old, he is working as a scientist at Lancaster Laboratories in Pennsylvania.


This post has been revised to reflect the following correction:

Correction: January 15, 2013

An earlier version of this post misstated the year in which Steve Spence competed in the Olympic marathon, finishing 12th. It was 1992, not 2004. It also misidentified the institution at which he is a coach. It is Shippensburg University, not Shippensburg College. Also, the article misstated the circumstances under which Helen Goodroad attended Brown. She was recruited to row at the university, she did not receive a rowing scholarship. And because of an editing error, the article misstated the length of some races that Meredith Kessler has won. They are 70.3 mile championships, not 70.3 kilometers.

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