Ferrol Sams, Doctor Turned Novelist, Dies at 90


Ferrol Sams, a country doctor who started writing fiction in his late 50s and went on to win critical praise and a devoted readership for his humorous and perceptive novels and stories that drew on his medical practice and his rural Southern roots, died on Tuesday at his home in Lafayette, Ga. He was 90.


The cause, said his son Ferrol Sams III, also a doctor, was that he was “slap wore out.”


“He lived a full life,” his son said. “He didn’t leave anything in the tank.”


Dr. Sams grew up on a farm in the rural Piedmont area of Georgia, seven mud-road miles from the nearest town. He was a boy during the Depression; books meant escape and discovery. He read “Robinson Crusoe,” then Mark Twain and Charles Dickens. One of his English professors at Mercer University, in Macon, suggested he consider a career in writing, but he chose another route to examining the human condition: medical school.


When he was 58 — after he had served in World War II, started a medical practice with his wife, raised his four children and stopped devoting so much of his mornings to preparing lessons for Sunday school at the Methodist church — he began writing “Run With the Horsemen,” a novel based on his youth. It was published in 1982.


“In the beginning was the land,” the book begins. “Shortly thereafter was the father.”


In The New York Times Book Review, the novelist Robert Miner wrote, “Mr. Sams’s approach to his hero’s experiences is nicely signaled in these two opening sentences.”


He added: “I couldn’t help associating the gentility, good-humored common sense and pace of this novel with my image of a country doctor spinning yarns. The writing is elegant, reflective and amused. Mr. Sams is a storyteller sure of his audience, in no particular hurry, and gifted with perfect timing.”


Dr. Sams modeled the lead character in “Run With the Horsemen,” Porter Osborne Jr., on himself, and featured him in two more novels, “The Whisper of the River” and “When All the World Was Young,” which followed him into World War II.


Dr. Sams also wrote thinly disguised stories about his life as a physician. In “Epiphany,” he captures the friendship that develops between a literary-minded doctor frustrated by bureaucracy and a patient angry over past racism and injustice.


Ferrol Sams Jr. was born Sept. 26, 1922, in Woolsey, Ga. He received a bachelor’s degree from Mercer in 1942 and his medical degree from Emory University in 1949. In his addition to his namesake, survivors include his wife, Dr. Helen Fletcher Sams; his sons Jim and Fletcher; a daughter, Ellen Nichol; eight grandchildren; and nine great-grandchildren.


Some critics tired of what they called the “folksiness” in Dr. Sams’s books. But he did not write for the critics, he said. In an interview with the Georgia Writers Hall of Fame, Dr. Sams was asked what audience he wrote for. Himself, he said.


“If you lose your sense of awe, or if you lose your sense of the ridiculous, you’ve fallen into a terrible pit,” he added. “The only thing that’s worse is never to have had either.”


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Media Decoder Blog: In Wake of Restructuring, NBC News President Quits

8:30 p.m. | Updated

The longest-serving president of any of the three network news divisions, Steve Capus of NBC News, stepped down from his position on Friday, six months after Comcast restructured its news units in a way that diminished his authority.

Pat Fili-Krushel, chairwoman of the NBCUniversal News Group, said in a brief telephone interview on Friday that she would “cast a wide net” while searching for a successor to Mr. Capus. In the interim, the leaders of the news division will report directly to her.

Ms. Fili-Krushel became Mr. Capus’s boss last July when Steve Burke, the chief executive of NBCUniversal, consolidated all of NBC’s news units — NBC News, the cable news channels MSNBC and CNBC, and its stake in the Weather Channel — under a new umbrella, the NBCUniversal News Group. Mr. Burke asked Ms. Fili-Krushel, one of his most trusted lieutenants, to run it, while keeping Mr. Capus and the heads of the other units in place.

Ms. Fili-Krushel worked early in her career at HBO and Lifetime. A veteran of the Walt Disney Company, where she helped program ABC, and  Time Warner, where she was an administrator, she is by her own admission not a journalist.  But now she is, by default, the highest-ranking woman in the American television news industry — not just at the moment, but in the history of the medium. The heads of the news divisions at ABC and CBS are men, as are the heads of the Fox News Channel, CNN, and Bloomberg.

Ms. Fili-Krushel has kept a low public profile, but has been a forceful presence behind the scenes, recently moving from her office on the 51st floor of 30 Rockefeller Center, near Mr. Burke’s, to a new one on the third floor, where NBC News is based. On Friday, she said she had spent her first six months “learning, listening and getting to know the players here.” She called the News Group an “unbelievably strong organization.”

Though Mr. Capus’s exit saddened many at NBC News on Friday, it came as little surprise. He had previously reported directly to Mr. Burke, but after the restructuring he reported to Ms. Fili-Krushel, and he made no secret of his unhappiness with the change. His contract had a clause that allowed him to leave in the event that he no longer reported to Mr. Burke, according to two people with direct knowledge of the arrangement at NBC, and he decided to exercise that right after months of contemplation. The people insisted on anonymity because they were not authorized by the network to speak publicly.

Mr. Capus told Ms. Fili-Krushel of his intent to leave last Friday. It is likely that he would have left sooner, but a series of major news stories kept him busy late last year — including Hurricane Sandy, the presidential election and the school shooting in Newtown, Conn. Mr. Capus also oversaw the network’s response to the kidnapping of Richard Engel and an NBC News crew in Syria last month.

“It has been a privilege to have spent two decades here, but it is now time to head in a new direction,” he wrote in an e-mail to staff members on Friday afternoon.

Mr. Capus guided NBC through a revolutionary time in news-gathering and distribution. He maintained the news division’s profitability, managed tensions between NBC News and its increasingly liberal cable channel MSNBC, and fostered new business ventures like an in-house production company and an annual education summit. Last year, he unwound an old deal with Microsoft to give the news division complete control over its Web site, now named NBCNews.com, for the first time.

Ms. Fili-Krushel wrote in a separate e-mail to staff members that “NBC News is America’s leading source of television news and Steve has been a big part of that success.”

NBC News is the producer of the most popular evening newscast in the country. But its single biggest source of profits, the morning show “Today,” fell to second place last year, behind ABC’s “Good Morning America,” for the first time since the 1990s. The decline caused widespread anxiety inside the news division and speculation that Mr. Capus would be relieved of his duties.

Inside NBC, both Mr. Capus and the executive producer of “Today,” Jim Bell, received much of the blame for the botched removal of Ann Curry from “Today” last June, which worsened the show’s already tenuous position in the ratings. Ms. Fili-Krushel was put in charge just a few weeks later.

Mr. Bell was replaced at “Today” last fall and is now the executive producer for NBC Olympics. Savannah Guthrie is now the co-host of “Today,” and Ms. Curry is a national and international correspondent for the network, but is rarely seen. Mr. Capus’s exit was seen by some at the network as the last shoe that had to drop.

In his e-mail to staff members, Mr. Capus called it an “extremely difficult decision to walk away,” noting that he started at NBC as a producer 20 years ago this month. He did not make any mention of what he would do next. “Journalism is, indeed, a noble calling, and I have much I hope to accomplish in the next phase of my career,” he wrote.

“Today” continues to lose to ABC’s “Good Morning America” among total viewers, but lately it has won a few weeks in the 25- to 54-year-old demographic that advertisers covet.

“NBC Nightly News” has more successfully fended off ABC’s “World News,” despite an aggressive push by ABC. Mr. Capus said, “NBC News has grown in all key metrics — from ratings and reputation to profitability.”

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Fireworks Truck Explodes on Bridge in Deadly Blast


Reuters


A section of a bridge that partially collapsed after a truck carrying fireworks exploded in Henan Province on Friday.







HONG KONG - A truck laden with fireworks exploded on a bridge in central China on Friday, unleashing a blast that threw vehicles some 30 yards to the ground below and killed at least six people.




The truck was on an expressway near Sanmenxia in Henan Province in morning fog when it exploded, wiping out a length of the Yichang Bridge, according to the Xinhua news agency.


One initial news report said at least 26 people were killed, but officials on the scene later dismissed that number as too high, according to Xinhua, which said about 15 people were also injured.


The widespread use off fireworks is a tradition of China’s traditional Spring Festival celebrations that begin on Feb. 9, and the explosion was a reminder of the intense pressures brought by the crush of people and goods on the move before the vacation period starts.


Pictures on Chinese television and news websites showed rescuers clamoring over shattered remains of trucks that plunged to earth, with part of one truck hanging off the severed section of the bridge. Reports from the scene said that from 10 to 25 vehicles fell off the bridge, and rescuers were searching for survivors amid the jumble of wreckage.


“A number of vehicles were crushed under the fallen bridge section, adding to the difficulties of the rescuers,” said a report on China Central Television.


Most reports said the explosion triggered the bridge collapse, and pictures showed charred debris along the expressway. But Central Chinese Television news said investigators were considering the possibility that a bridge collapse triggered the explosion.


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CES gadget show host drops CNET as awards picker






LOS ANGELES (AP) — The industry group that hosts the annual gadget show known as International CES is dropping reviews website CNET as the picker of its “Best of CES” awards. It says CNET reviewers’ objectivity was compromised by the site’s corporate parent, CBS Corp.


The Consumer Electronics Association also elevated the CNET writers’ initial pick for the best gadget of the show, Dish Network Corp.‘s Hopper with Sling, to co-winner along with a gaming tablet called Razer Edge.






CBS had annulled an earlier vote by CNET staff to award the Hopper because it is in a legal dispute with Dish over the product. The Hopper allows users to automatically skip commercials from prime-time TV shows, undercutting a key source of revenue for CBS, advertising.


After CBS removed the Hopper from contention, CNET staff re-voted and chose Razer Edge as the winner.


The association says it is looking for a new partner for its awards.


The association’s president, Gary Shapiro, blasted CBS in an opinion article in the USA Today newspaper on Wednesday, saying its interference damaged its own editorial integrity. CBS also owns TV shows such as “60 Minutes,” ”CBS Evening News” and “Face the Nation.”


“It not only tainted the CES awards, but it hurt one of the world’s classiest media companies,” Shapiro wrote.


The association, which has hosted the gadget show since 1967, had contracted with CNET to pick the awards since the 2007 show. It normally chooses not to get involved, partly because of its relationship with its many exhibitors.


Mark Larkin, the general manager of CNET, said in a statement the website is “committed to delivering in-depth coverage of consumer electronics” and will continue to cover the show, as it has for more than a decade.


Dish appeared to bask in the controversy, which drew more attention to its device.


“We appreciate the International CES’ decision to stand with the consumer in the acknowledgement of this award,” said Dish CEO Joseph Clayton in a statement. “I regret that the award has come in the face of CBS’ undermining of CNET’s editorial independence.”


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Carville, Matalin enjoy role as Big Easy boosters


NEW ORLEANS (AP) — When Mary Matalin heard a baby cry during a Super Bowl news conference this week, she paused midsentence, peered in the direction of the fussing child and asked: "Is that my husband?"


Matalin, the noted Republican political pundit, isn't shy about making jokes at the expense of Democratic strategist James Carville, who went from being her professional counterpart to her partner in life when they were married — in New Orleans — two decades ago.


This week, though, and for much of the past few years, the famous political odd couple have been working in lockstep for a bipartisan cause — the resurgence of their adopted hometown.


Their passion for the Big Easy and its recovery from Hurricane Katrina was why Carville and Matalin were appointed co-chairs of New Orleans' Super Bowl host committee, positions that made them the face of the city's effort to prove it's ready to be back in the regular rotation for the NFL's biggest game.


"Their commitment to New Orleans and their rise to prominence here locally as citizens made them a natural choice," said Jay Cicero, president of the Greater New Orleans Sports Foundation, which handles the city's Super Bowl bids. "It's about promoting New Orleans, and their being in love with this city, they're the perfect co-chairs."


Carville, a Louisiana native, and Matalin moved from Washington, D.C., to historic "Uptown" New Orleans in the summer of 2008, a little less than three years after Katrina had laid waste to vast swaths of the city. There was not only heavy wind damage but flooding that surged through crumbling levees and at one point submerged about 80 percent of the city.


The couple had long loved New Orleans, and felt even more of a pull to set down roots here, with their two school-age daughters, at a time when the community was in need.


"The storm just weighed heavy," Carville said. "We were thinking about it. We'd been in Washington for a long time. The more that we thought about it, the more sense that it made. We just came down here (to look for a house) in late 2007 and said we're just going to do this and never looked back."


Matalin said she and Carville also wanted to raise their daughters in a place where people were willing to struggle to preserve a vibrant and unique culture.


"It's authentically creative, organically eccentric, bounded by beauty of all kinds," she said. "People pull for each other, people pull together. ... Seven years ago we were 15 feet under water. ... This is unparalleled what the people here did and that's what you want your kids to grow up with: Hope and a sense of place, resolve and perseverance."


Carville has been an avid sports fan all his life, and Matalin jokes that he now schedules his life around Saints and LSU football.


An LSU graduate, Carville has been a regular sight in Tiger Stadium in Baton Rouge, often wearing a purple and gold rugby-style shirt.


In New Orleans, he and Matalin have lent their names not just to the Super Bowl host committee, but to efforts to prevent the NBA's Hornets from leaving when the ownership situation was in flux.


"I was scared to death they would leave the city," said Carville of the Hornets, who were purchased by the NBA in December of 2010 when club founder George Shinn wanted to sell and struggled to find a local buyer. "We were starting to do better (as a community). It would have been a terrible story to lose an NBA franchise at that time."


Saints owner Tom Benson has since bought the NBA club and signed a long-term lease at New Orleans Arena, ending speculation about a possible move.


Carville and Matalin also have taken part in a range of environmental, educational, economic and cultural projects in the area. Matalin is on the board of the Water Institute of the Gulf, which aims to preserve fragile coastal wetlands that have been eroding, leaving south Louisiana ecosystems and communities increasingly vulnerable to destruction. They have supported the Institute of Politics at Loyola University and the New Orleans Jazz Orchestra.


Carville teaches a current events class at Tulane University and he looks forward to getting involved in the 200th anniversary of the Battle of New Orleans in 2015 and New Orleans' tercentennial celebrations in 2018, when the city also hopes to host its next Super Bowl, if the NFL sees fit.


Leading a Super Bowl host committee, the couple said, has similarities to running a major national political campaign, but takes even more work.


"This has been going on for three years and it's huge," Matalin said. "It's bigger, it's harder, it's more complex — even though it's cheaper."


The host committee spent about $13 million in private and public funds to put on this Super Bowl, and the payoff could be enormous in terms of providing a momentum boost to the metro area's growth, Carville said.


"For us — New Orleans — I think this is going to be much more than a football game Sunday," Carville said of the championship matchup between the Baltimore Ravens and San Francisco 49ers. "We'll know how we feel about it on Monday. It's a big event, it helps a lot of people, but I think we have a chance if it goes the way we hope it does, it'll go beyond economic impact. It'll go beyond who won the game. I think there's something significant that's coming to a point here in the city."


So there's a bit of anxiety involved, to go along with the long hours. But Carville and Matalin say they've loved having a role in what they see as New Orleans' renaissance.


"I always say I'm so humbled by everyone's gratitude," Matalin said. "We get up every day and say, 'Thank you, God. Thank you, God.' It's a blessing for us to be able to be here, to live here."


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During Trial, New Details Emerge on DuPuy Hip





When Johnson & Johnson announced the appointment in 2011 of an executive to head the troubled orthopedics division whose badly flawed artificial hip had been recalled, the company billed the move as a fresh start.




But that same executive, it turns out, had supervised the implant’s introduction in the United States and had been told by a top company consultant three years before the device was recalled that it was faulty.


In addition, the executive also held a senior marketing position at a time when Johnson & Johnson decided not to tell officials outside the United States that American regulators had refused to allow sale of a version of the artificial hip in this country.


The details about the involvement of the executive, Andrew Ekdahl, with the all-metal hip implant emerged Wednesday in Los Angeles Superior Court during the trial of a patient lawsuit against the DePuy Orthopaedics division of Johnson & Johnson. More than 10,000 lawsuits have been filed against DePuy in connection with the device — the Articular Surface Replacement, or A.S.R. — and the Los Angeles case is the first to go to trial.


The information about the depth of Mr. Ekdahl’s involvement with the implant may raise questions about DePuy’s ability to put the A.S.R. episode behind it.


Asked in an e-mail why the company had promoted Mr. Ekdahl, a DePuy spokeswoman, Lorie Gawreluk, said the company “seeks the most accomplished and competent people for the job.”


On Wednesday, portions of Mr. Ekdahl’s videotaped testimony were shown to jurors in the Los Angeles case. Other top DePuy marketing executives who played roles in the A.S.R. development are expected to testify in coming days. Mr. Ekdahl, when pressed in the taped questioning on whether DePuy had recalled the A.S.R. because it was unsafe, repeatedly responded that the company had recalled it “because it did not meet the clinical standards we wanted in the marketplace.”


Before the device’s recall in mid-2010, Mr. Ekdahl and those executives all publicly asserted that the device was performing extremely well. But internal documents that have become public as a result of litigation conflict with such statements.


In late 2008, for example, a surgeon who served as one of DePuy’s top consultants told Mr. Ekdahl and two other DePuy marketing officials that he was concerned about the cup component of the A.S.R. and believed it should be “redesigned.” At the time, DePuy was aggressively promoting the device in the United States as a breakthrough and it was being implanted into thousands of patients.


“My thoughts would be that DePuy should at least de-emphasize the A.S.R. cup while the clinical results are studied,” that consultant, Dr. William Griffin, wrote.


A spokesman for Dr. Griffin said he was not available for comment.


The A.S.R., whose cup and ball components were both made of metal, was first sold by DePuy in 2003 outside the United States for use in an alternative hip replacement procedure called resurfacing. Two years later, DePuy started selling another version of the A.S.R. for use here in standard hip replacement that used the same cup component as the resurfacing device. Only the standard A.S.R. was sold in the United States; both versions were sold outside the country.


Before the device recall in mid-2010, about 93,000 patients worldwide received an A.S.R., about a third of them in this country. Internal DePuy projections estimate that it will fail in 40 percent of those patients within five years; a rate eight times higher than for many other hip devices.


Mr. Ekdahl testified via tape Wednesday that he had been placed in charge of the 2005 introduction of the standard version of the A.S.R. in this country. Within three years, he and other DePuy executives were receiving reports that the device was failing prematurely at higher than expected rates, apparently because of problems related to the cup’s design, documents disclosed during the trial indicate.


Along with other DePuy executives, he also participated in a meeting that resulted in a proposal to redesign the A.S.R. cup. But that plan was dropped, apparently because sales of the implant had not justified the expense, DePuy documents indicate.


In the face of growing complaints from surgeons about the A.S.R., DePuy officials maintained that the problems were related to how surgeons were implanting the cup, not from any design flaw. But in early 2009, a DePuy executive wrote to Mr. Ekdahl and other marketing officials that the early failures of the A.S.R. resurfacing device and the A.S.R. traditional implant, known as the XL, were most likely design-related.


“The issue seen with A.S.R. and XL today, over five years post-launch, are most likely linked to the inherent design of the product and that is something we should recognize,” that executive, Raphael Pascaud wrote in March 2009.


Last year, The New York Times reported that DePuy executives decided in 2009 to phase out the A.S.R. and sell existing inventories weeks after the Food and Drug Administration asked the company for more safety data about the implant.


The F.D.A. also told the company at that time that it was rejecting its efforts to sell the resurfacing version of the device in the United States because of concerns about “high concentration of metal ions” in the blood of patients who received it.


DePuy never disclosed the F.D.A. ruling to regulators in other countries where it was still marketing the resurfacing version of the implant.


During a part of that period, Mr. Ekdahl was overseeing sales in Europe and other regions for DePuy. When The Times article appeared last year, he issued a statement, saying that any implication that the F.D.A. had determined there were safety issues with the A.S.R. was “simply untrue.” “This was purely a business decision,” Mr. Ekdahl stated at that time.


This article has been revised to reflect the following correction:

Correction: February 1, 2013

A headline on Thursday about a patient lawsuit against DePuy Orthopaedics, a unit of Johnson & Johnson, misstated the start of the trial in some copies. It began last week, not on Wednesday.



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DealBook: Doubt Is Cast on Consultants Hired to Fix Banks’ Abuses

Federal authorities are scrutinizing private consultants hired to clean up financial misdeeds like money laundering and foreclosure abuses, taking aim at an industry that is paid billions of dollars by the same banks it is expected to police.

The consultants operate with scant supervision and produce mixed results, according to government documents and interviews with prosecutors and regulators. In one case, the consulting firms enabled the wrongdoing. The deficiencies, officials say, can leave consumers vulnerable and allow tainted money to flow through the financial system.

“How can you be independent if you’re hired by the entity you’re reviewing?” Senator Jack Reed, Democrat of Rhode Island, who sits on the Senate Banking Committee, said.

The pitfalls were exposed last month when federal regulators halted a broad effort to help millions of homeowners in foreclosure. The regulators reached an $8.5 billion settlement with banks, scuttling a flawed foreclosure review run by eight consulting firms. In the end, borrowers hurt by shoddy practices are likely to receive less money than they deserve, regulators said.

On Thursday, Senator Elizabeth Warren, Democrat of Massachusetts, and Representative Elijah Cummings, Democrat of Maryland, announced that they would open an investigation into the foreclosure review, seeking “additional information about the scope of the harms found.”

Critics concede that regulators have little choice but to hire outsiders for certain responsibilities after they find problems at the banks. The government does not have the resources to ensure that banks follow the rules. Still, consultants like Deloitte & Touche and the Promontory Financial Group can add to regulators’ headaches, the government documents and interviews indicate. Some banks that work with consultants continue to run afoul of the law. At other times, consultants underestimate the extent of the misdeeds or facilitate them, preventing regulators from holding institutions accountable.

Now, regulators and lawmakers are rethinking their relationship with the consultants. Officials at the Federal Reserve, which oversees many large banks, are questioning the prudence of relying on consultants so heavily, said two people with direct knowledge of the matter.

When the Office of the Comptroller of the Currency penalized JPMorgan Chase last month for breakdowns in money-laundering controls, it imposed stricter requirements, ordering the bank to hire a consultant with “specialized experience” in money laundering and to ensure that the firm “not be subject to any conflict of interest.” In a separate action against the bank related to a $6 billion trading loss last year, the agency opted not to mandate an outside consultant at all.

While the comptroller’s office will continue requiring consultants in certain cases, some agency officials are worried about the quality of the work, as well as the consultants’ independence, according to three government officials briefed on the matter.

Since the financial crisis, regulators have increasingly relied on consultants. The comptroller’s office ordered banks to hire consultants in more than 130 enforcement actions since 2008, or nearly 15 percent of the cases.

It can be a lucrative business. In 2011, regulators mandated that 14 banks employ consultants to determine whether homeowners were wrongfully evicted. Over 14 months, the consultants collected about $2 billion in fees, according to regulators and bank officials.

Those fees amounted to more than half of what homeowners will receive under the $8.5 billion settlement that ended the review. As part of the deal, officials will disburse $3.3 billion to 3.8 million borrowers in foreclosure.

According to consultants and regulators, the broad review was plagued with inefficiencies. For example, Promontory initially instructed employees to calculate lawyers’ fees for each loan, to assess if borrowers were overcharged. Later, it scrapped the original procedure, only to reverse the policy again two weeks later, according to two reviewers who worked for Promontory.

“From Day 1, Promontory strove to conduct its review work as thoroughly and independently as possible,” a spokesman for the firm, Christopher Winans, said in a statement. “Our overarching concern at all times was to serve the best interests of borrowers.”

Some lawmakers question whether a consultant’s regulatory connections helped it secure contracts. PricewaterhouseCoopers, which has a stable of former Securities and Exchange Commission officials, won much of the foreclosure review work, signing deals with four banks, including Citigroup. Promontory, the firm examining loans for Wells Fargo, Bank of America and PNC, was founded in 2000 by the former head of the comptroller’s office, Eugene A. Ludwig.

When the contracts were initially awarded, some housing advocates complained that consulting firms could not objectively evaluate banks with which they had pre-existing business relationships. The comptroller’s office said it vetted the firms to spot such potential conflicts, and argued that the process provided swifter relief for homeowners than if the government had hired the companies directly through a lengthy contracting process.

But concerns persisted. Deloitte, which won the contract to review JPMorgan’s loans, had previously audited Washington Mutual and Bear Stearns, two firms JPMorgan acquired during the financial crisis. In May, the comptroller’s office replaced Allonhill, the consultant for Aurora Bank, after the firm disclosed that it had already reviewed some “of the same pool of loans” as part of an earlier contract.

“It’s clear from the foreclosure settlement that oversight over consultants was inadequate and the review process was deeply flawed,” said Representative Carolyn B. Maloney, Democrat of New York, who recently pressed regulators to detail how consultants were paid. People close to the review say consultants relied on a process that the comptroller’s office designed in 2011, under previous leadership.

“This was a very complex process,” a spokesman for the comptroller said. “Throughout the process, regulators provided continuous oversight, guidance and were available to discuss issues.” The agency also performs spot checks on the consultants.

Still, the foreclosure review highlighted broader concerns about the role consultants play.

Since the financial crisis, the comptroller’s office has issued nearly 20 enforcement actions against banks that had already hired consultants to help iron out problems, according to government documents. While consultants cannot be expected to remedy every last issue at the banks, the actions raise questions about the effectiveness of their work.

When HSBC, the British bank, was sanctioned in 2003 over porous money-laundering controls, the bank turned to Deloitte to review its compliance, an official briefed on the matter said. Deloitte also worked for HSBC from 2006 to 2008, the person said, building a system to monitor money flows more effectively. But the bank ran into trouble in 2010 over similar issues, as highlighted in a recent scathing report by the Senate’s Permanent Subcommittee on Investigations.

As part of a regulatory order, HSBC again hired Deloitte, this time to assess the number of times the bank failed to report suspicious transactions. Deloitte, three officials said, generously bundled hundreds of missed transfers into a single report. That helped save the bank from some government fines.

Despite the undercounting, HSBC still paid a record $1.9 billion last year to settle accusations that it enabled drug cartels to move money through its American subsidiaries.

In a statement, a spokesman for the firm said, “Deloitte fully stands behind the quality and integrity of its work on behalf of regulatory authorities.”

Deloitte has also been suspected of helping institutions cloak illicit transfers of money to rogue nations around the globe. In August, New York’s top banking regulator, Benjamin M. Lawsky, accused Deloitte of helping the British bank Standard Chartered flout American sanctions.

The consulting firm was hired to flag suspicious transfers routed through Standard Chartered’s New York branches. Instead, it instructed bankers on how to escape regulatory scrutiny, according to state court documents.

Deloitte turned over “highly confidential information” from which the bank gleaned insight into “regulators’ concerns and strategies,” the court documents said. The firm later doctored its report to regulators, Mr. Lawsky said, deliberately removing some illegal transfers on behalf of Iranian clients. In an e-mail, a Deloitte partner admitted that a report on the transactions was a “watered-down version.”

The authorities never took legal action against Deloitte, and federal officials noted in a separate settlement agreement that Standard Chartered employees withheld critical information from the consulting firm.

Despite these concerns, regulators are turning to a familiar source to help Standard Chartered. As part of a $327 million settlement last year, the bank is required to hire “an independent consultant.”

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India Ink: Air Pollution in New Delhi Was Much Worse Than Beijing Thursday, But Indian Government Is Not Acting

A thick blanket of smog over New Delhi on Thursday morning. Manish Swarup/Associated Press A thick blanket of smog over New Delhi on Thursday morning.

NEW DELHI—Beijing’s air pollution has reached such toxic levels recently that the Chinese government is finally acknowledging the problem – and acting on it.

But in New Delhi on Thursday, air pollution levels far exceeded those in Beijing, only without any government acknowledgement or action. It is not the first time pollution in India’s capital has outpaced that in China.

The level of tiny particulates known as PM 2.5, which lodge deep in the lungs and can enter the bloodstream, was over 400 micrograms per cubic meter in various neighborhoods in and around Delhi Thursday, according to a real-time air quality monitor. That compared to Beijing’s most-recent air quality reading of 172 micrograms per cubic meter. (The “Air Quality online” link to the left of the Delhi website gives you real-time monitoring of Delhi’s pollution levels.)

At the University of Delhi’s northern campus at 12:30 p.m., the reading for PM 2.5 was 402 micrograms per cubic meter; in the eastern suburb of Noida it was 411; at the Indira Gandhi International airport it was 421.

Beijing’s government on Wednesday introduced emergency measures to curb pollution, ordering cars off the roads and factories to shut down, and warning citizens to avoid activity outside. The measures came after two straight days that the readings were higher than 300, a level the United States Environmental Protection Agency considers “hazardous.”

The forecast for Delhi’s air pollution Friday is “critical,” according to the Ministry of Earth Sciences. So far, though, Delhi’s government has made no announcements about the city’s air pollution, nor introduced any emergency measures, a spokesman for chief minister’s office said. Sheila Dikshit, the chief minister, said in an interview in December that the city could not keep up with the factors that cause air pollution.

Beijing’s air quality is so bad that living there is like living in a smoking lounge, Bloomberg reported Wednesday. The levels of air pollution Bloomberg cited as Beijing’s average were half that of New Delhi early Thursday afternoon.

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Dr. Phil says Manti Te’o hoaxer admits to love for linebacker






LOS ANGELES (Reuters) – A California man who has admitted to fabricating Notre Dame linebacker Manti Te‘o’s fake girlfriend in an elaborate hoax told talk show host Phil McGraw he felt a deep romantic love for the football player, McGraw said on Wednesday.


“Here we have a young man that fell deeply, romantically in love,” McGraw told the television morning show “Today” to discuss his two part interview with Ronaiah Tuiasosopo, which will air on “Dr. Phil” on Thursday and Friday.






“I asked him straight up, ‘Was this a romantic relationship with you?,’ and he says yes. I said, ‘Are you then therefore gay?’ And he said, ‘When you put it that way, yes.’ And then he caught himself and said, ‘I am confused,’” McGraw told “Today.”


Te’o has said in a previous media interview he is not gay.


The fake girlfriend hoax involving Te’o, who was a finalist for college football’s highest individual honor the Heisman trophy, caused a sensation when it was revealed earlier this month on news website Deadspin.com.


Tuiasosopo says he played the part over the phone of Lennay Kekua, the fictitious woman who was Te’o's girlfriend in the hoax. Te’o, 22, had spoken about the woman in media interviews, and reports described her surviving a car accident and then dying of leukemia in September.


Te’o has said since the hoax was exposed that he was the victim of an elaborate prank, that he never met Kekua and that his acquaintance Tuiasosopo admitted to him that he was the one who played the part of Lennay.


Dr. Phil said in a segment on “Today” on Wednesday that after an extensive interview with Tuiasosopo, he believes Te’o had no role in creating the hoax.


“Absolutely, unequivocally, no,” McGraw said, in pinning the blame for the scheme on Tuiasosopo.


The NBC morning program also showed some comments Tuiasosopo made in his interview for the “Dr. Phil” daytime program.


“There are many times where Manti and Lennay had broken up,” Tuiasosopo told “Dr. Phil.”


“But something would bring them back together, whether it was something going on in his life or in Lennay’s life, in this case in my life,” Tuiasosopo said.


Tuiasosopo, 22, is from southern California and played high school football in 2005 at Antelope Valley High north of Los Angeles, according to media reports. Tuaisosopo’s attorney had previously told reporters his client was behind the hoax.


Before the hoax was exposed, a photo of a woman who was described as Lennay Kekua was presented in media reports about Te’o and his struggles to overcome her death and that of his grandmother, who actually did pass away.


But the photo of Kekua was taken from a Facebook profile of a California woman who said she was unaware of the scheme, according to Deadspin.com.


Te’o told Katie Couric in a broadcast of her show “Katie” last week that he received a telephone call from the person claiming to be Kekua on December 6 – two days before the Heisman presentation. But he said he was not really certain she never existed until Tuiasosopo’s later confession to him.


The linebacker, during the Katie Couric interview, presented a voice mail he received from the person he said he thought was Kekua. “Doesn’t that sound like a girl?” Te’o told Couric.


Te’o also told Couric he is not gay. “No, far from it,” he said.


(Reporting by Alex Dobuzinskis; Editing by Cynthia Johnston and Andrew Hay)


Internet News Headlines – Yahoo! News





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2 NFL seasons since agreement, still no HGH tests


NEW ORLEANS (AP) — Count Baltimore Ravens defensive end Arthur Jones among those NFL players who want the league and the union to finally agree on a way to do blood testing for human growth hormone.


"I hope guys wouldn't be cheating. That's why you do all this extra work and extra training. Unfortunately, there are probably a few guys, a handful maybe, that are on it. It's unfortunate. It takes away from the sport," Jones said.


"It would be fair to do blood testing," Jones added. "Hopefully they figure it out."


When Jones and the Ravens face the San Francisco 49ers in the Super Bowl on Sunday, two complete seasons will have come and gone without a single HGH test being administered, even though the league and the NFL Players Association paved the way for it in the 10-year collective bargaining agreement they signed in August 2011.


Since then, the sides have haggled over various elements, primarily the union's insistence that it needs more information about the validity of a test that is used by Olympic sports and Major League Baseball. HGH is a banned performance-enhancing drug that is hard to detect and has been linked to health problems such as diabetes, cardiac dysfunction and arthritis.


"If there are guys using (HGH), there definitely needs to be action taken against it, and it needs to be out of (the sport)," Ravens backup quarterback Tyrod Taylor said. "I'm pretty sure it'll happen eventually."


At least two members of Congress want to make it happen sooner, rather than later.


House Oversight and Government Reform Committee chairman Darrell Issa, a California Republican, and ranking Democrat Elijah Cummings of Maryland wrote NFLPA head DeMaurice Smith this week to chastise the union for standing in the way of HGH testing and to warn that they might ask players to testify on Capitol Hill.


Smith is scheduled to hold his annual pre-Super Bowl news conference Thursday.


"We have cooperated and been helpful to the committee on all of their requests," NFLPA spokesman George Atallah said. "If this is something they feel strongly about, we will be happy to help them facilitate it."


Several players from the Super Bowl teams said they would be willing to talk to Congress about the issue, if asked.


"I have nothing to hide. I can't speak for anyone else in football, but I would have no problem going," said Kenny Wiggins, a 6-foot-6, 314-pound offensive lineman on San Francisco's practice squad.


But Wiggins added: "There's a lot more problems in the U.S. they should be worried about than HGH in the NFL."


That sentiment was echoed by former New York Giants offensive lineman Shaun O'Hara, who now works for the NFL Network.


"Do I think there is an HGH problem in the NFL? I don't think there is. Are there guys who are using it? I'm sure there are. But is it something Congress needs to worry about? No. We have enough educated people on both sides that can fully handle this. And if they can't, then they should be fired," said O'Hara, an NFLPA representative as a player. "I include the union in that, and I include the NFL. There is no reason we would need someone to help us facilitate this process."


Issa and Cummings apparently disagree.


In December, their committee held a hearing at which medical experts testified that the current HGH test is reliable and that the union's request for a new study is unnecessary. Neither the league nor union was invited to participate in that hearing; at the time, Issa and Cummings said they expected additional hearings.


"We are disappointed with the NFLPA's remarkable recalcitrance, which has prevented meaningful progress on this issue," they wrote in their recent letter to Smith. "We intend to take a more active role to determine whether the position you have taken — that HGH is not a serious concern and that the test for HGH is unreliable — is consistent with the beliefs of rank and file NFL players."


Atallah questioned that premise.


"To us, there is no distinction between players and the union. ... The reason we had HGH in our CBA is precisely because our players wanted us to start testing for it," Atallah said. "We are not being recalcitrant for recalcitrance sake. We are merely following the direction of our player leadership."


Wiggins and other players said no one can know for sure how much HGH use there is in the league until there is testing — but that it's important for the union's concerns about the test to be answered.


"The union decides what is best for the players," said Ravens nose tackle Ma'ake Kemoeatu, who said he would be willing to go to Capitol Hill.


"I feel like some guys are on HGH," said 49ers offensive lineman Anthony Davis, who would rather not speak to Congress. "I personally don't care if there is testing. It's something they have to live with, knowing they cheated, and if they get (outplayed) while they're on it, it's a hit on their pride."


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Follow Howard Fendrich on Twitter at http://twitter.com/HowardFendrich


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