Vertu's $10K Smartphone Rings With Bling



Vertu, the company that makes phones for the rich and technologically illiterate, has finally made a smartphone, the Android-powered Vertu Ti. And because it is a Vertu, the Ti is ridiculously expensive and technologically underwhelming.


You think the iPhone is pricey? The Vertu Ti starts with a $9,600 price tag. And yes, that’s the unsubsidized price*. For that kind of money, you’d expect it to transform into a jet that flies you to an island.


That’s not the case. Instead, you get a phone with 184 parts handcrafted in England — the “craftsman” who assembles your phone even signs the inside of the removable titanium back plate so you know exactly who made your overpriced, under-spec’d device.


When it comes to actual smartphone capabilities, the Ti is depressingly average. It’s running Android 4.0 Ice Cream Sandwich and has a dual-core 1.7Ghz processor. There’s also 1GB of RAM, 64GB of storage, an 8MP rear-facing camera, a 1.3MP front-facing camera, and NFC support. That’s the same performance you could get in any mid-tier Android phone on the market for about $9,400 less. One bonus: The 3.7-inch screen is made of sapphire crystal, like a fine watch, and is said to be four times stronger than the average phone’s screen. That’s good, because the last thing anyone wants is a $9,600 phone with a cracked screen.


The Vertu Ti comes in four flashy models to cater to the undoubtedly refined tastes of the people buying them: Titanium Black Leather for $9,600; Titanium Pure Black for $11,500; Titanium Black Alligator for $12,800; and Black PVD Titanium Red Gold Mixed Metals for $19,900.


Vertu Ti owners can find comfort in knowing that the company has put its phone through several stress tests. The screen can withstand a 110gm ball bearing dropped on itself. Like a rugged traveler, the phone survived “extreme temperature testing, torsional strength, tumble testing and humidity.” And should you choose a leather model, know that the material has gone through 17 — count that, 17! — tests to “prove its robustness.”


Now all you need to do is bedazzle it with 2-carat diamonds.


*Not that any carrier would dream of subsidizing this phone.


Read More..

Well: Straining to Hear and Fend Off Dementia

At a party the other night, a fund-raiser for a literary magazine, I found myself in conversation with a well-known author whose work I greatly admire. I use the term “conversation” loosely. I couldn’t hear a word he said. But worse, the effort I was making to hear was using up so much brain power that I completely forgot the titles of his books.

A senior moment? Maybe. (I’m 65.) But for me, it’s complicated by the fact that I have severe hearing loss, only somewhat eased by a hearing aid and cochlear implant.

Dr. Frank Lin, an otolaryngologist and epidemiologist at Johns Hopkins School of Medicine, describes this phenomenon as “cognitive load.” Cognitive overload is the way it feels. Essentially, the brain is so preoccupied with translating the sounds into words that it seems to have no processing power left to search through the storerooms of memory for a response.


Katherine Bouton speaks about her own experience with hearing loss.


A transcript of this interview can be found here.


Over the past few years, Dr. Lin has delivered unwelcome news to those of us with hearing loss. His work looks “at the interface of hearing loss, gerontology and public health,” as he writes on his Web site. The most significant issue is the relation between hearing loss and dementia.

In a 2011 paper in The Archives of Neurology, Dr. Lin and colleagues found a strong association between the two. The researchers looked at 639 subjects, ranging in age at the beginning of the study from 36 to 90 (with the majority between 60 and 80). The subjects were part of the Baltimore Longitudinal Study of Aging. None had cognitive impairment at the beginning of the study, which followed subjects for 18 years; some had hearing loss.

“Compared to individuals with normal hearing, those individuals with a mild, moderate, and severe hearing loss, respectively, had a 2-, 3- and 5-fold increased risk of developing dementia over the course of the study,” Dr. Lin wrote in an e-mail summarizing the results. The worse the hearing loss, the greater the risk of developing dementia. The correlation remained true even when age, diabetes and hypertension — other conditions associated with dementia — were ruled out.

In an interview, Dr. Lin discussed some possible explanations for the association. The first is social isolation, which may come with hearing loss, a known risk factor for dementia. Another possibility is cognitive load, and a third is some pathological process that causes both hearing loss and dementia.

In a study last month, Dr. Lin and colleagues looked at 1,984 older adults beginning in 1997-8, again using a well-established database. Their findings reinforced those of the 2011 study, but also found that those with hearing loss had a “30 to 40 percent faster rate of loss of thinking and memory abilities” over a six-year period compared with people with normal hearing. Again, the worse the hearing loss, the worse the rate of cognitive decline.

Both studies also found, somewhat surprisingly, that hearing aids were “not significantly associated with lower risk” for cognitive impairment. But self-reporting of hearing-aid use is unreliable, and Dr. Lin’s next study will focus specifically on the way hearing aids are used: for how long, how frequently, how well they have been fitted, what kind of counseling the user received, what other technologies they used to supplement hearing-aid use.

What about the notion of a common pathological process? In a recent paper in the journal Neurology, John Gallacher and colleagues at Cardiff University suggested the possibility of a genetic or environmental factor that could be causing both hearing loss and dementia — and perhaps not in that order. In a phenomenon called reverse causation, a degenerative pathology that leads to early dementia might prove to be a cause of hearing loss.

The work of John T. Cacioppo, director of the Social Neuroscience Laboratory at the University of Chicago, also offers a clue to a pathological link. His multidisciplinary studies on isolation have shown that perceived isolation, or loneliness, is “a more important predictor of a variety of adverse health outcomes than is objective social isolation.” Those with hearing loss, who may sit through a dinner party and not hear a word, frequently experience perceived isolation.

Other research, including the Framingham Heart Study, has found an association between hearing loss and another unexpected condition: cardiovascular disease. Again, the evidence suggests a common pathological cause. Dr. David R. Friedland, a professor of otolaryngology at the Medical College of Wisconsin in Milwaukee, hypothesized in a 2009 paper delivered at a conference that low-frequency loss could be an early indication that a patient has vascular problems: the inner ear is “so sensitive to blood flow” that any vascular abnormalities “could be noted earlier here than in other parts of the body.”

A common pathological cause might help explain why hearing aids do not seem to reduce the risk of dementia. But those of us with hearing loss hope that is not the case; common sense suggests that if you don’t have to work so hard to hear, you have greater cognitive power to listen and understand — and remember. And the sense of perceived isolation, another risk for dementia, is reduced.

A critical factor may be the way hearing aids are used. A user must practice to maximize their effectiveness and they may need reprogramming by an audiologist. Additional assistive technologies like looping and FM systems may also be required. And people with progressive hearing loss may need new aids every few years.

Increasingly, people buy hearing aids online or from big-box stores like Costco, making it hard for the user to follow up. In the first year I had hearing aids, I saw my audiologist initially every two weeks for reprocessing and then every three months.

In one study, Dr. Lin and his colleague Wade Chien found that only one in seven adults who could benefit from hearing aids used them. One deterrent is cost ($2,000 to $6,000 per ear), seldom covered by insurance. Another is the stigma of old age.

Hearing loss is a natural part of aging. But for most people with hearing loss, according to the National Institute on Deafness and Other Communication Disorders, the condition begins long before they get old. Almost two-thirds of men with hearing loss began to lose their hearing before age 44. My hearing loss began when I was 30.

Forty-eight million Americans suffer from some degree of hearing loss. If it can be proved in a clinical trial that hearing aids help delay or offset dementia, the benefits would be immeasurable.

“Could we do something to reduce cognitive decline and delay the onset of dementia?” he asked. “It’s hugely important, because by 2050, 1 in 30 Americans will have dementia.

“If we could delay the onset by even one year, the prevalence of dementia drops by 15 percent down the road. You’re talking about billions of dollars in health care savings.”

Should studies establish definitively that correcting hearing loss decreases the potential for early-onset dementia, we might finally overcome the stigma of hearing loss. Get your hearing tested, get it corrected, and enjoy a longer cognitively active life. Establishing the dangers of uncorrected hearing might even convince private insurers and Medicare that covering the cost of hearing aids is a small price to pay to offset the cost of dementia.



Katherine Bouton is the author of the new book, “Shouting Won’t Help: Why I — and 50 Million Other Americans — Can’t Hear You,” from which this essay is adapted.


This post has been revised to reflect the following correction:

Correction: February 12, 2013

An earlier version of this article misstated the location of the Medical College of Wisconsin. It is in Milwaukee, not Madison.

Read More..

Media Decoder Blog: Netflix Teams With DreamWorks Animation to Create Cartoon Series

LOS ANGELES — Continuing a campaign to deepen its appeal to children, Netflix on Tuesday announced a partnership with DreamWorks Animation to create an original cartoon series.

The show, expected to make its debut on the streaming service in December, will be based on DreamWorks Animation’s coming movie “Turbo,” about a snail who gains the power of superspeed. The Netflix spinoff will be called “Turbo: F.A.S.T.,” which stands for Fast Action Stunt Team.

Netflix is gambling that “Turbo” will be a hit when it arrives in theaters on July 19. Although DreamWorks Animation has high hopes for that movie, it’s still anyone’s guess how audiences will respond; the company’s last film, “Rise of the Guardians,” was a box-office disappointment.

Ted Sarandos, Netflix’s chief content officer, said in a statement that DreamWorks Animation had “a long track record of creating incredibly successful characters.” DreamWorks Animation’s chief executive, Jeffrey Katzenberg, never shy about making a hard sell, called the partnership “part of the television revolution.”

A rival streaming service, Amazon’s Prime Instant Video, is racing to prepare its own original series, and has five children’s shows in development.

Netflix, which recently introduced the original series “House of Cards” to strong reviews from critics, has been working over the last several years to enhance its offerings for children. In 2011, it acquired the streaming rights to DreamWorks Animation’s movies and television specials. New films from Disney, Pixar and Marvel will move from Starz to Netflix in late 2016, following a deal the streaming company made with the Walt Disney Company in December.

Netflix said its members streamed more than two billion hours of children’s content in 2012, taking care to note that it is “always commercial free.” Netflix is also trying to enhance its appeal with multiple audience niches. A new horror series called “Hemlock Grove” is on the way, for instance. “Orange Is the New Black,” an original comedic drama from the “Weeds” creator Jenji Kohan, is aimed at women.

Children’s programming is particularly important to the company’s growth plans. Children are avid streaming consumers, particularly overseas, and Netflix can pitch itself to parents as a commercial-free alternative to television. Cartoons are also less likely to appear on the pirated-content sites that compete with Netflix for viewers.

For DreamWorks Animation, the agreement is part of an effort to diversify into television both as a way to grow and to avoid the sharp ups and downs of the movie business. The company’s shares rose 2.91 percent on Tuesday, to $16.63.

The company has two shows on Nickelodeon that are spinoffs of its “Madagascar” and “Kung Fu Panda” films; a third series built around “Monsters vs. Aliens” is in the works. DreamWorks Animation also has a series built around the film “How to Train Your Dragon” on the Cartoon Network, as well as a growing number of holiday-themed television specials.

Read More..

Dorner manhunt: Riverside D.A. files murder charges against ex-cop









The Riverside County district attorney's office filed murder and attempted murder charges Monday against fugitive ex-police officer Christopher Dorner, who is accused of shooting three police officers, one fatally, in Riverside County.

Dist. Atty. Paul Zellerbach said Dorner was charged with one count of murder, with special circumstance allegations in the killing of a peace officer and the discharge of a firearm from a vehicle, in the death of Riverside police Officer Michael Crain, 34, a married father who served two tours in Kuwait as a rifleman in the U.S. Marines.

Dorner faces three additional counts of attempted murder of a peace officer for allegedly shooting and critically injuring Crain's partner and firing upon two Los Angeles police officers in Corona for a protective detail. One of the LAPD officers was grazed by a bullet on the head.

PHOTOS: Manhunt for ex-LAPD officer

The special circumstance allegations make Dorner eligible for the death penalty, Zellerbach said. A no-bail warrant has also been issued for his arrest, meaning he can be "apprehended anywhere," Zellerbach said at a Monday news conference.

Authorities have called Dorner's alleged attack on the Riverside officers a "cowardly ambush," saying he opened fire on them as they sat at a red light early Thursday. The officers were not actively looking for Dorner, officials said.

The surviving officer, whose name has not been released, was "in a lot of pain" and would likely need several surgeries, Riverside Police Chief Sergio Diaz told reporters Monday. It was not yet known if he will be able to return to duty, Diaz said.

TIMELINE: Manhunt for ex-LAPD officer

The shootings attributed to Dorner began Feb. 3 with the deaths of Monica Quan, a Cal State Fullerton assistant basketball coach, and her fiance, Keith Lawrence, a USC public safety officer.

Quan was the daughter of a retired LAPD captain whom Dorner apparently accused online of not representing him fairly at a hearing that led to his firing. In what police said was his posting to Facebook, Dorner allegedly threatened the retired captain and others he blamed for his firing.

More that 50 LAPD families remained under police guard Monday.

FULL COVERAGE: Sweeping manhunt for ex-cop

Hundreds of officers have chased clues about Dorner across Southern California in recent days, responding to possible sightings in San Diego, Big Bear and elsewhere and serving warrants at homes in La Palma and Las Vegas.

The search centered on Big Bear after Dorner's burning truck was found on a forest road on Thursday, and included cabin-by-cabin checks for any sign of Dorner. A scaled-back search continued Monday morning with about 30 officers searching vacation homes and cabins in "an even more remote area," the San Bernardino County Sheriff's Department said.

Los Angeles officials announced on Sunday a $1-million reward for information leading to the capture and arrest of Dorner. The reward — raised from local governments, police departments, civic organizations, businesses and individuals — is thought to be the largest ever offered locally.

Investigators were already following up on more than 600 tips, LAPD Lt. Andy Neiman said Monday morning.

"Our commitment is to finding Mr. Dorner and making this city safe again," Neiman said.



Read More..

Spec Ops Command Isn't Sweating Osama Shooter's Magazine Profile



The U.S. Special Operations Command is sick and tired of its elite forces talking to the media about their secretive missions. Yet it’s not concerned about an epic Esquire piece that purports to profile the SEAL who shot Osama bin Laden dead.


The command “has no emotions on this article one way or the other,” Col. Tim Nye, the Special Operations Command’s chief spokesman, tells Danger Room.


Nye didn’t know the Esquire piece, released on Monday, was in the works. He wouldn’t comment on “any classification issues” in the piece, but said that on his initial reading, it contained “very little” about the May 2011 raid that killed the al-Qaida leader “that hasn’t already been made public in other forums.”


The SEAL himself remains nameless and faceless: Esquire refers to him only as The Shooter. But the magazine ran photos — that The Shooter provided — of his gear, particularly with the patch he wore on his helmet during the raid; discusses his family life; and otherwise pulls back some of the veil of secrecy surrounding the most famous anonymous SEAL in history. He’s “thick, like a power lifter” and covered in “an audacious set of tattoos.”


This is getting to be a thing with the “quiet professionals” of special operations. Last year, another member of the bin Laden raid team, Matt Bissonnette, wrote a book describing the raid that landed him in deep trouble with the Pentagon, although the Defense Department has yet to follow through on a threat to take legal action against him. Other, retired SEALs made a campaign ad blasting President Obama over the White House’s own leaks to the press about the raid. Adm. William McRaven, one of the driving forces behind the raid and now the chief of U.S. Special Operations Command, issued an open letter in August telling current and former elite U.S. troops to shut their mouths about their experiences on sensitive missions — a few months after denying that he helped Kathryn Bigelow make Zero Dark Thirty.



“There is, in my opinion, a distinct line between recounting a story for the purposes of education or entertainment and telling a story that exposes sensitive activities just to garner greater readership and personal profit,” McRaven wrote in August.


The Shooter isn’t profiting: in fact, he’s out of a job and unsure about his next career move, which is a major theme of the piece. While there’s as much self-promotion in the piece as can be expected of a profile of the guy who killed bin Laden — while not revealing his identity — the article devotes much of its focus to the difficulties he and his colleagues have adjusting to civilian life and a tough economy.


According to the Esquire piece, The Shooter struck up a relationship with reporter Phil Bronstein shortly after returning from a four-month Afghanistan tour not long after returning from the bin Laden raid. A Washington dinner party in March 2012 was the first time they met, following “several phone conversations and much checking on my journalism background, especially in war zones.” He’s wary of violating operational security, and won’t even confirm whether Bissonnette was really on the raid. But a more fulsome journalistic relationship with Bronstein develops The Shooter leaves the Navy shortly after his return from Afghanistan, and much of the piece is devoted to relating details of the raid — seemingly nothing classified — from The Shooter’s perspective.


For instance: an early alternative to the raid wasn’t just firing a small missile from a drone at bin Laden’s Abbottabad compound (a “hammer throw,” in The Shooter’s phrase), but “bomb[ing] the piss out of the compound with two-thousand-pound ordnance.” SEALs initially thought they were going to an unrelated war zone like Libya when they were called in to discuss an imminent deployment. McRaven is said to have delayed the raid by a day, citing poor weather to his superiors, to prevent it from happening the day of the White House Correspondents Dinner.


The Shooter is an excitable sort. His favorite word to describe the raid, in retrospect, is “awesome.” He pumped himself up for the raid by listening to the Game and Lil Wayne’s “Red Nation” on the treadmill. Yet The Shooter spends a lot of time reflecting on how the raid seemed doomed. He took to calling his fast-rope team the Martyrs Brigade, as he guessed the house was rigged to explode. If Pakistani troops showed up at the compound, the SEALs’ plan was to surrender, go to jail and wait until Vice President Biden flew to Islamabad to negotiate their release. Not that that reassured The Shooter: “It was either death or a Pakistani prison, where we’d be raped for the rest of our lives.”


Instead, he was part of a three-person team who ran up to the third floor of the compound, and he himself took the kill shot — on instinct. His generic mission training, for years, involved shooting a lot of dummies with bin Laden visages, and so when he saw the al-Qaida leader, using his youngest wife as a human shield, “That’s him, boom, done.” The compound turned up not just bin Laden’s hard drives (and porn), but duffel bags full of opium. He watched Obama’s announcement of the mission in Afghanistan while eating a sausage-egg-and-extra bacon sandwich and thinking: “I wish we could live through this night, because this is amazing. I was still expecting all kinds of funky shit like escape slides or safe rooms.”


Life after the SEALs hasn’t been as amazing. The Shooter wanted to see his kids grow up, so he retired before the 20 years necessary for his full benefits package to kick in. He’s got to buy health insurance on the open market, but he can’t find a job, and he’s out the $60,000 annual salary he earned as a SEAL. (Former Veterans Affairs official and Iraq/Afghanistan veteran Brandon Friedman tweets that the VA covers five years of health care after separation from the military.) Military transition programs to the civilian job market turn out not to be particularly useful. The Shooter doesn’t want to go into private security — “I don’t have a need for excitement anymore,” he says — and job prospects aren’t turning up.


Nye said The Shooter’s transition to civilian life is an issue for the Navy, and not Special Operations Command, to address. But he pointed to several command programs designed to ease the adjustment, like its Care Coaliton that aids physically injured elite troops.


If anything, it’s amazing that The Shooter has stayed nameless and faceless nearly two years after the bin Laden raid. The social pressures for exposure must be enormous, even if special operators wish to remain “quiet professionals.” With his Esquire profile, The Shooter may have figured out a way to balance acclaim and anonymity.


Read More..

Personal Health: Getting the Right Addiction Treatment

“Treatment is not a prerequisite to surviving addiction.” This bold statement opens the treatment chapter in a helpful new book, “Now What? An Insider’s Guide to Addiction and Recovery,” by William Cope Moyers, a man who nonetheless needed “four intense treatment experiences over five years” before he broke free of alcohol and drugs.

As the son of Judith and Bill Moyers, successful parents who watched helplessly during a 15-year pursuit of oblivion through alcohol and drugs, William Moyers said his near-fatal battle with addiction demonstrates that this “illness of the mind, body and spirit” has no respect for status or opportunity.

“My parents raised me to become anything I wanted, but when it came to this chronic incurable illness, I couldn’t get on top of it by myself,” he said in an interview.

He finally emerged from his drug-induced nadir when he gave up “trying to do it my way” and instead listened to professional therapists and assumed responsibility for his behavior. For the last “18 years and four months, one day at a time,” he said, he has lived drug-free.

“Treatment is not the end, it’s the beginning,” he said. “My problem was not drinking or drugs. My problem was learning how to live life without drinking or drugs.”

Mr. Moyers acknowledges that treatment is not a magic bullet. Even after a monthlong stay at a highly reputable treatment center like Hazelden in Center City, Minn., where Mr. Moyers is a vice president of public affairs and community relations, the probability of remaining sober and clean a year later is only about 55 percent. (Hazelden also published his book.)

“Be wary of any program that claims a 100 percent success rate,” Mr. Moyers warned. “There is no such thing.”

“Treatment works to make recovery possible. But recovery is also possible without treatment,” Mr. Moyers said. “There’s no one-size-fits-all approach. What I needed and what worked for me isn’t necessarily what you or your loved one require.”

As with many smokers who must make multiple attempts to quit before finally overcoming an addiction to nicotine, people hooked on alcohol or drugs often must try and try again.

Nor does treatment have as good a chance at succeeding if it is forced upon a person who is not ready to recover. “Treatment does work, but only if the person wants it to,” Mr. Moyers said.

Routes to Success

For those who need a structured program, Mr. Moyers described what to consider to maximize the chances of overcoming addiction to alcohol or drugs.

Most important is to get a thorough assessment before deciding where to go for help. Do you or your loved one meet the criteria for substance dependence? Are there “co-occurring mental illnesses, traumatic or physical disabilities, socioeconomic influences, cultural issues, or family dynamics” that may be complicating the addiction and that can sabotage treatment success?

While most reputable treatment centers do a full assessment before admitting someone, it is important to know if the center or clinic provides the services of professionals who can address any underlying issues revealed by the assessment. For example, if needed, is a psychiatrist or other medical doctor available who could provide therapy and prescribe medication?

Is there a social worker on staff to address challenging family, occupational or other living problems? If a recovering addict goes home to the same problems that precipitated the dependence on alcohol or drugs, the chances of remaining sober or drug-free are greatly reduced.

Is there a program for family members who can participate with the addict in learning the essentials of recovery and how to prepare for the return home once treatment ends?

Finally, does the program offer aftercare and follow-up services? Addiction is now recognized to be a chronic illness that lurks indefinitely within an addict in recovery. As with other chronic ailments, like diabetes or hypertension, lasting control requires hard work and diligence. One slip need not result in a return to abuse, and a good program will help addicts who have completed treatment cope effectively with future challenges to their recovery.

How Families Can Help

“Addiction is a family illness,” Mr. Moyers wrote. Families suffer when someone they love descends into the purgatory of addiction. But contrary to the belief that families should cut off contact with addicts and allow them to reach “rock-bottom” before they can begin recovery, Mr. Moyers said that the bottom is sometimes death.

“It is a dangerous, though popular, misconception that a sick addict can only quit using and start to get well when he ‘hits bottom,’ that is, reaches a point at which he is desperate enough to willingly accept help,” Mr. Moyers wrote.

Rather, he urged families to remain engaged, to keep open the lines of communication and regularly remind the addict of their love and willingness to help if and when help is wanted. But, he added, families must also set firm boundaries — no money, no car, nothing that can be quickly converted into the substance of abuse.

Whether or not the addict ever gets well, Mr. Moyers said, “families have to take care of themselves. They can’t let the addict walk over their lives.”

Sometimes families or friends of an addict decide to do an intervention, confronting the addict with what they see happening and urging the person to seek help, often providing possible therapeutic contacts.

“An intervention can be the key that interrupts the process and enables the addict to recognize the extent of their illness and the need to take responsibility for their behavior,”Mr. Moyers said.

But for an intervention to work, Mr. Moyers said, “the sick person should not be belittled or demeaned.” He also cautioned families to “avoid threats.” He noted that the mind of “the desperate, fearful addict” is subsumed by drugs and alcohol that strip it of logic, empathy and understanding. It “can’t process your threat any better than it can a tearful, emotional plea.”

Resource Network

Mr. Moyer’s book lists nearly two dozen sources of help for addicts and their families. Among them:

Alcoholics Anonymous World Services www.aa.org;

Narcotics Anonymous World Services www.na.org;

Substance Abuse and Mental Health Services Administration treatment finder www.samhsa.gov/treatment/;

Al-Anon Family Groups www.Al-anon.alateen.org;

Nar-Anon Family Groups www.nar-anon.org;

Co-Dependents Anonymous World Fellowship www.coda.org.


This is the second of two articles on addiction treatment. The first can be found at “Effective Addiction Treatment.”

Read More..

DealBook: R.B.S. Executives Testify in Rate-Rigging Case

LONDON — British politicians took aim at the Royal Bank of Scotland for its role in a rate-rigging scheme, accusing management of fostering a profit-driven culture that encouraged traders to skirt the law.

In nearly four hours of testimony to Parliament’s commission on banking standards, current and former bank executives faced questions over management missteps, deficient controls and the broader environment that prompted employees to report false rates. The senior executives acknowledged that they missed the problems, as they focused on reviving the bank after the financial crisis.

“The behavior was the disgraceful failure of individuals,” Stephen Hester, the bank’s chief executive, said during the hearing. “We were slow to recognize that behavior and catch it.”

The Royal Bank of Scotland is dealing with the fallout from the global investigation into rate manipulation, which has ensnared more than a dozen banks.

Last week, the financial firm agreed to pay a $612 million fine to settle accusations by American and British regulators that traders influenced major benchmark interest rates to bolster profit. As part of the settlement, the Justice Department forced the firm’s Japanese unit to plead guilty to felony wire fraud.

While the settlement follows similar deals with Barclays and UBS, the case against the Royal Bank of Scotland has also proved to be politically sensitive. The bank is 82 percent owned by British taxpayers after receiving a multibillion-dollar bailout during the financial crisis.

“There would be enormous anger if U.K. taxpayers pick up the tab for the individual sins of traders who were trying to rig Libor rates,” said Pat McFadden, a Labour politician who sits on the parliamentary commission.

The case centers on the major benchmark rates like the London interbank offered rate, or Libor. Such rates underpin trillions of dollars of financial products like corporate loans and mortgages.

Libor Explained

In the settlement, British and American authorities detailed an effort to manipulate the rate-setting process, a five-year scheme that involved multiple currencies and countries. They claimed that the bank “aided and abetted” other financial firms, including UBS. According to regulatory filings, the Royal Bank of Scotland failed to monitor the submissions of benchmark rates, and employees continued to report false rates even after authorities began to investigate the wrongdoing.

“It has brought shame against the bank,” Rory Phillips, a lawyer working behalf of the commission, said at the hearing. “There’s been a loss of trust and confidence on behalf of the public.”

Senior executives said in testimony that Libor was not a major focus for the Royal Bank of Scotland, which almost collapsed in 2008 after an ill-advised deal to buy the Dutch financial giant ABN Amro.

“When we took control of the bank, it had had a cardiac arrest,” said John Hourican, the former head of the investment banking division, who resigned last week. “We had to prioritize dealing with the existential threat to the bank.”

After the subsequent bailout by the British government, senior managers focused on reviving the bank by selling off assets, reducing its work force and curbing exposure to risky trading activity. Mr. Hourican indicated that the bank’s operations had become stretched across too many countries and business units.

“The bank was doing too many things in too many countries with too little capital,” Mr. Hourican said.

At the same time, executives said they underestimated the potential for rate-rigging.

“I was not aware that derivatives traders were making these requests,” Peter Nielsen, Mr. Hourican’s deputy, told British politicians. “We had very serious issues. Senior management felt that it was a mathematical impossibility to alter the rates.”

British politicians demanded to know why Mr. Nielsen had not lost his job. When the manipulation occurred, Mr. Nielsen served as the global head of rates. Mr. Nielsen, who is now co-head of firm’s investment banking operations, said he had discussed resigning with Mr. Hourican, but decided to stay on.

Lawmakers repeatedly asked executives why the British bank did not have appropriate controls in place to catch the wrongdoing.

In 2011, the Royal Bank of Scotland told regulators in a letter that systems had been created to monitor Libor submissions. But American and British authorities discovered in their investigations that these controls had not been established, according to the recent settlement. Authorities said the firm did not deliberately mislead regulators.

“At the very least, there was a wholesale failure of systems and controls of the rate process,” said Mr. Phillips, the lawyer. “Somebody in management more senior in the structure should have known what was going on and put a stop to it.”

Facing political scrutiny, the Royal Bank of Scotland has moved to revamp its practices and overhaul its compliance.

The British bank said last week that it would claw bank past, current and future bankers’ bonuses totaling around $470 million to pay the Libor settlement. Mr. Hourican is forgoing past and current bonuses totaling around $14 million in response to the scandal.

A majority of the money will be used to pay the fines levied by American regulators. Because the Royal Bank of Scotland is majority-owned by British taxpayers, the penalty from the Financial Services Authorities, the British regulator, will be recycled back into the government’s coffers.

The bank has also fired six employees for their role in the rate-rigging scheme, while another individual was dismissed for an unrelated matter. Eight other people left the bank before the manipulation was discovered, and six employees have been disciplined but remain at the firm.

The bank “shouldn’t waste my death,” Mr. Hourican told lawmakers, referring to his resignation. “We must send a cultural shudder down our organization’s spine.”

Read More..

Ambitious makeover planned for old housing project









Denise Penegar puts a little extra effort into the teenage girls, the ones who've dropped out of high school to care for their firstborns.


Don't be afraid, the outreach worker tells them. Come down to the housing project's community center, get your GED and some job skills. Change your life.


"I was one of those girls," said Penegar, now 51 and still living in Jordan Downs, the Watts housing project where she was born.





Sometimes, she imagines how different her life might have been if someone had knocked on her door when she was 17, caring for her first baby. What would it have meant just to have "someone who is here who can help pick me up"?


Penegar is on the front lines of a bold social experiment underway at Jordan Downs, a project notorious to outsiders for its poverty, blight and violence but seen by many longtime residents, for all its problems, as a close-knit community worth preserving.


In the last year, the Housing Authority of the City of Los Angeles has begun an effort to transform Jordan that could cost more than $600 million. The plan is to turn the complex of 700 aging units into a mixed-income community of up to 1,400 apartments and condominiums, with shops and restaurants and fancy touches such as native plant gardens. The city hopes to draw in hundreds of more-affluent residents willing to pay market rate to live side by side with the city's poorest.


Spurred by changes in federal funding and policy, such "mixed use" developments have sprung up in place of infamous housing projects all over the country. But experts say Jordan is taking an approach that has not been tried on this scale.


Typically, public housing residents are moved out ahead of the bulldozers, scattered to search for new shelter. In Los Angeles, the housing authority has promised that any of the 2,300 Jordan residents "in good standing" can stay in their old units until the day they move into new ones. The project is to be built in phases, beginning with units on 21 acres of adjacent land purchased by the authority in 2008 for $31 million.


To ease the transition, the city has dispatched "community coaches" like Penegar, along with teachers, social workers, therapists — even police officers whose charge is not to make arrests but to coach youth football and triathlon teams.


In essence, officials intend to raze the buildings, not the community — and radically change its character.


It will be an enormous challenge, with success likely to be measured in tiny increments.


Only 47% of adults at Jordan reported any wages to the housing authority last year. As in many urban projects, poverty and social ills have multiplied through the generations, leaving some residents unfamiliar with opportunities and expectations beyond the neighborhood. Some rarely leave the area.


Before inviting in new neighbors with expectations of safety and comfort, the housing authority has begun flooding Jordan Downs with social services. Many of the programs are focused on women, because more than 60% of Jordan Downs' tenants live in households headed by single mothers. But men are targeted too — for job training and lessons in parenting, for instance.


By December, 10 months into the effort, more than 450 families had been surveyed by intake workers and 280 signed up for intensive services.


"Most people would say it's ambitious, but I think it's essential," said Kathryn Icenhower, executive director of Shields for Families, the South Los Angeles nonprofit that is running many of the new programs under a more than $1-million annual contract with the housing authority.


It is unknown, however, how effective the social services will be, how easy it will be to draw in wealthier residents and how many millions of dollars the federal government — a major source of funding — will provide.


Already, the housing authority has picked a development team — the for-profit Michaels Organization and the nonprofit Bridge Housing, both with respectable track records in other cities. But with financing still uncertain, it is unclear exactly how many units will be built or how much various occupants would pay.


Ultimately, a working family could pay hundreds of dollars more in rent than unemployed tenants next door for a nearly identical unit. Officials say they do not expect Watts to draw the same kind of high-income residents as the former Cabrini Green project in Chicago, which sat on prime real estate near downtown. But Jordan is in a convenient location, near the intersection of the 105 and 110 Freeways; and in a high-rent city like Los Angeles, even the steepest rates at Jordan are likely to seem a bargain.


Despite the onslaught of social services and some palpable changes — including a 53% plunge in the violent crime rate at Jordan last year — financial risks abound.


Later this spring, the authority plans to put in an application for $30 million from the federal government's Choice Neighborhoods Program as seed money. Without it, the project could be delayed.





Read More..

Wired Science Space Photo of the Day: Wings of the Seagull Nebula


This image shows the intricate structure of part of the Seagull Nebula, known more formally as IC 2177. These wisps of gas and dust are known as Sharpless 2-296 (officially Sh 2-296) and form part of the “wings” of the celestial bird. This region of the sky is a fascinating muddle of intriguing astronomical objects — a mix of dark and glowing red clouds, weaving amongst bright stars. This new view was captured by the Wide Field Imager on the MPG/ESO 2.2-metre telescope at ESO’s La Silla Observatory in Chile.


Image: ESO [high-resolution]


Caption: ESO

Read More..

For Families Struggling with Mental Illness, Carolyn Wolf Is a Guide in the Darkness





When a life starts to unravel, where do you turn for help?




Melissa Klump began to slip in the eighth grade. She couldn’t focus in class, and in a moment of despair she swallowed 60 ibuprofen tablets. She was smart, pretty and ill: depression, attention deficit disorder, obsessive-compulsive disorder, either bipolar disorder or borderline personality disorder.


In her 20s, after a more serious suicide attempt, her parents sent her to a residential psychiatric treatment center, and from there to another. It was the treatment of last resort. When she was discharged from the second center last August after slapping another resident, her mother, Elisa Klump, was beside herself.


“I was banging my head against the wall,” the mother said. “What do I do next?” She frantically called support groups, therapy programs, suicide prevention lines, anybody, running down a list of names in a directory of mental health resources. “Finally,” she said, “somebody told me, ‘The person you need to talk to is Carolyn Wolf.’ ”


That call, she said, changed her life and her daughter’s. “Carolyn has given me hope,” she said. “I didn’t know there were people like her out there.”


Carolyn Reinach Wolf is not a psychiatrist or a mental health professional, but a lawyer who has carved out what she says is a unique niche, working with families like the Klumps.


One in 17 American adults suffers from a severe mental illness, and the systems into which they are plunged — hospitals, insurance companies, courts, social services — can be fragmented and overwhelming for families to manage. The recent shootings in Newtown, Conn., and Aurora, Colo., have brought attention to the need for intervention to prevent such extreme acts of violence, which are rare. But for the great majority of families watching their loved ones suffer, and often suffering themselves, the struggle can be boundless, with little guidance along the way.


“If you Google ‘mental health lawyer,’ ” said Ms. Wolf, a partner with Abrams & Fensterman, “I’m kinda the only game in town.”


On a recent afternoon, she described in her Midtown office the range of her practice.


“We have been known to pull people out of crack dens,” she said. “I have chased people around hotels all over the city with the N.Y.P.D. and my team to get them to a hospital. I had a case years ago where the person was on his way back from Europe, and the family was very concerned that he was symptomatic. I had security people meet him at J.F.K.”


Many lawyers work with mentally ill people or their families, but Ron Honberg, the national director of policy and legal affairs for the National Alliance on Mental Illness, said he did not know of another lawyer who did what Ms. Wolf does: providing families with a team of psychiatrists, social workers, case managers, life coaches, security guards and others, and then coordinating their services. It can be a lifeline — for people who can afford it, Mr. Honberg said. “Otherwise, families have to do this on their own,” he said. “It’s a 24-hour, 7-day-a-week job, and for some families it never ends.”


Many of Ms. Wolf’s clients declined to be interviewed for this article, but the few who spoke offered an unusual window on the arcane twists and turns of the mental health care system, even for families with money. Their stories illustrate how fraught and sometimes blind such a journey can be.


One rainy morning last month, Lance Sheena, 29, sat with his mother in the spacious family room of her Long Island home. Mr. Sheena was puffy-eyed and sporadically inattentive; the previous night, at the group home where he has been living since late last summer, another resident had been screaming incoherently and was taken away by the police. His mother, Susan Sheena, eased delicately into the family story.


“I don’t talk to a lot of people because they don’t get it,” Ms. Sheena said. “They mean well, but they don’t get it unless they’ve been through a similar experience. And anytime something comes up, like the shooting in Newtown, right away it goes to the mentally ill. And you think, maybe we shouldn’t be so public about this, because people are going to be afraid of us and Lance. It’s a big concern.”


Her son cut her off. “Are you comparing me to the guy that shot those people?”


“No, I’m saying that anytime there’s a shooting, like in Aurora, that’s when these things come out in the news.”


“Did you really just compare me to that guy?”


“No, I didn’t compare you.”


“Then what did you say?”


Read More..