Tuesday, 20 May 2014

Probe finds scant oversight of chemical plants


The government has no way of fully knowing which U.S. chemical facilities stock ammonium nitrate, the substance that exploded last year at a Texas fertilizer plant and killed 14 people, congressional investigators say. Outdated federal policies, poor information sharing with states and a raft of industry exemptions point to scant federal oversight, says a new report obtained by The Associated Press.


The report found regulatory gaps in environmental and worker protections and urged broad changes to U.S. safety rules. President Barack Obama pledged to stiffen enforcement following the explosion on April 17, 2013, in West, Texas.


Without improved monitoring, federal regulators "will not know the extent to which dangerous conditions at some facilities may continue to exist," concluded the report by the Government Accountability Office.


The GAO found that the Homeland Security Department's database captured only a fraction of the ammonium nitrate storage facilities in the U.S. The federal database shows that 1,345 facilities in 47 states store ammonium nitrate. But spot checks of similar state records found that the federal list missed as many as two-thirds of the storage sites, said the report, which faulted companies' noncompliance, legal loopholes or poor federal coordination with states.


About half of the facilities that are in the federal database were located in six states: Alabama, Georgia, Kentucky, Missouri, Tennessee and Texas. They include chemical plants or any location that stores ammonium nitrate, a widely used fertilizer, such as farm supply retailers or fertilizer distribution warehouses.


The government audit tracked a monthlong reporting effort last year by the AP that drew upon public records in 28 states. The AP investigation found that schools, nursing homes and hospitals were within the potentially devastating blast zones of more than 120 facilities storing ammonium nitrate. In addition, the investigation concluded that the existence of other facilities nationwide remained a mystery due to poor information sharing.


The GAO faulted the Occupational Safety and Health Administration and the Environmental Protection Agency for decades-old chemical safety regulations that have failed in large part to cover ammonium nitrate.


Facilities that store ammonium nitrate are rarely inspected by OSHA, including the one that blew up in Texas, in part because the agency relies on EPA regulations that do not list ammonium nitrate as a hazardous material. OSHA had put in place some requirements for storing the fertilizer back in the 1970s, but prior to the Texas explosion the agency did not widely publicize them to the fertilizer industry. GAO found the industry often viewed the rules as applying only if the material were used to make explosives.


The audit said the agency may be unwisely granting exemptions to retailers that store and blend fertilizer for direct sale.


As a result, prior to last year's explosion, OSHA had cited just one facility for violations of its ammonium nitrate storage requirements in its more than 40-year history, the report said. That was in 1997 in Florida, following an employee complaint.


The findings come as a federal working group established by Obama prepares to submit its report later this month that outlines ways to improve oversight.


The EPA, OSHA and the Homeland Security Department generally agreed with the findings. They emphasized that states are not required to report their data to federal agencies, and that new efforts to improve coordination will be spelled out in the coming task force report. OSHA officials also said they were reevaluating ways to target high-risk facilities for inspection, even with limited resources.


"We believe that we have already made significant improvements to reduce the likelihood of ammonium nitrate incidents," wrote David Michaels, an assistant Labor Department secretary for occupational safety and health.


The GAO report noted that U.S. safety standards typically fell short compared to those in Canada, France, Germany and Britain, which in many cases bar the use of wood or other combustible material in ammonium storage facilities. GAO also urged Congress to eliminate an annual budget provision that exempts from safety inspections facilities with 10 or fewer employees, which make up about four percent of the 1,345 locations.


A group of Democratic lawmakers on Tuesday called the U.S. safety lapses "unacceptable" and in a letter urged Obama to take action to address GAO's findings. Signing the letter were chairs or senior members of the relevant congressional committees on labor, environment, or the budget: Rep. George Miller, D-Calif.; Sen. Barbara Boxer, D-Calif.; Rep. Joe Courtney, D-Conn.; Sen. Bob Casey, D-Pa.; and Sen. Patty Murray, D-Wash.



J. Crew returns to Asia with 2 Hong Kong shops


U.S. fashion retailer J. Crew is opening two shops in Hong Kong. It's the latest Western brand to set up in the city notorious for high rents as it explores future expansion in the lucrative China market.


The company, known for being one of Michelle Obama's favorite brands, is opening separate men's and women's stores in Hong Kong's financial district on Wednesday.


The stores mark the company's return to Asia after pulling out of Japan in 2008. They're also a part of a wider push to expand internationally.


The company plans to open up to six stores in Hong Kong in the next five to six years.


CEO Mickey Drexler said the company has no specific plans for mainland China and is still studying the market.



Minimum wage hearings to begin in House committee


A state House committee is planning hearings on a bill to raise Michigan's minimum wage to $9.20 an hour.


Republican Senate Majority Leader Randy Richardville's bill passed the Senate 24-14 last week and is set to be referred to a House committee Tuesday afternoon. Republican committee chair Rep. Pete Lund of Shelby Township is expected to begin hearings on the bill Wednesday.


No hearings were held on the bill before the Senate vote.


Republican House Speaker Jase Bolger has said he has "grave concerns" about some aspects of the bill. It increases the minimum wage to $9.20 from $7.40 by 2017 and includes a measure tying the minimum wage to inflation, which many Republicans oppose.


The bill could thwart an ongoing ballot drive to gradually raise the wage to $10.10.



Saints say Benson is "fine" after fall at meetings


Saints spokesman Greg Bensel says Tom Benson is "fine" after falling and hitting his head as he walked off of a podium during Tuesday's NFL owners meetings in Atlanta.


Benson was taken from the meetings by ambulance to a hospital, where Bensel says the owner was being examined for concussion symptoms before his scheduled flight home to New Orleans.


The fall occurred after a New Orleans contingent presented its bid for the 2018 Super Bowl.


NFL Commissioner Roger Goodell said the 86-year-old Benson "fortunately appears to be fine and as a precautionary step was taken to a hospital."


New Orleans was among three finalists, along with Minneapolis and Indianapolis. After four rounds of voting, the Minneapolis bid won.



Memorial Sloan-Kettering gets $100M gift


Memorial Sloan-Kettering Cancer Center has received a $100 million donation to support cancer treatment and research.


The Wall Street Journal (http://on.wsj.com/RR0Vmm ) says the gift comes from billionaire private-equity investor Henry Kravis and his wife, Marie-Josee Kravis.


The New York hospital is scheduled to make the announcement Tuesday in connection with the official launch of a new Center for Molecular Oncology.


The center will bear the couple's names.


It will analyze the DNA of patients and their tumors to match patients with drugs designed to target genetic mutations. The hospital plans to analyze the tumors of 10,000 patients in the first year of operation.


Six gene-sequencing machines are to be installed at the center this week.



Microsoft: No need for laptop with its new tablet


Microsoft bills its new Surface tablet computer as a laptop replacement — and it means it this time.


The Surface Pro 3 will have a screen measuring 12 inches diagonally, up from 10.6 inches in the previous model. The Pro 3 is 32 percent thinner and 12 percent lighter than October's Pro 2. The company said it customized more than 100 parts and worked closely with chipmaker Intel Corp. to maximize performance in a slim device.


Microsoft had also billed the Surface Pro 2 as a laptop replacement, but Surface executive Ben Reed said technological advances and customer feedback over the past several months led to the device unveiled Tuesday.


The Surface Pro 3 will go on sale this summer, in five configurations ranging from $799 to $1,949. Microsoft will start taking orders Wednesday. Older models will still be available. The starting price of the Pro 2 is $100 more, at $899, but it has a faster processor than the Pro 3's starting model.


A keyboard cover to make the tablet feel like a laptop costs $130 more.


The Surface is an important part of Microsoft CEO Satya Nadella's mobile-focused strategy. The company is trying to boost sales of Windows tablets and phones to stay relevant with consumers as computing habits change.


Microsoft executives spent much of an hour-long presentation in New York comparing the Surface with Apple's iPad and MacBook Air laptop and tried to make the case for the Pro 3 to replace both.


In an interview, Reed said he believes people want to lighten their bags by carrying a single Surface instead of separate tablet and laptop computers.


Microsoft also faces competition from Samsung Electronics Co., which has a line of large-size Android tablets aimed at professionals.


The first Surface came out in late 2012 to lackluster sales. The debut of second-generation devices last October came with a greater marketing emphasis on tasks people normally tackle on laptops, such as creating documents and editing movies.


In the January-March period, revenue from Surface devices grew more than 50 percent from the year before to about $500 million. But that figure pales in comparison with Apple's reported $7.6 billion in iPad revenue for the same quarter.


In a research note, analysts Daniel H. Ives and James Moore of FBR Capital Markets said the new Surface is progress for Microsoft, but "we continue to believe Microsoft faces an uphill battle versus the likes of Samsung and Apple." The analysts said Microsoft "has been late to the game on the tablet front, and Surface's impact has been underwhelming thus far."


The Surface line is notable for its built-in kickstand. With the Pro 3, the kickstand can be adjusted to a range of positions, much the way a laptop's screen can be opened at various angles.


The Surface line puts Microsoft in competition with some of its own partners — the makers of tablets and laptops that use Microsoft's Windows operating system. Nadella sought to quell concerns by saying the company's goal was to create demand in new types of products and boost the entire industry.


"We are not building hardware for hardware's sake," Nadella said. "We want to build experiences that bring together all the capabilities of the company."


The vision of the Surface, he said, was to design a product that "takes the best of the tablet and the laptop" and enable people to read, create, write, watch and enjoy.



The top 10 songs and albums on the iTunes Store


iTunes' Official Music Charts for the week ending May 19, 2014:


Top Songs


1. Problem (feat. Iggy Azalea), Ariana Grande


2. Fancy (feat. Charli XCX), Iggy Azalea


3. All of Me, John Legend


4. Turn Down For What DJ Snake, Lil Jon


5. Am I Wrong, Nico & Vinz


6. Happy (From "Despicable Me 2"), Pharrell Williams


7. Wiggle (feat. Snoop Dogg), Jason Derulo


8. Love Never Felt So Good, Justin Timberlake, Michael Jackson


9. Play It Again, Luke Bryan


10. Summer. Calvin Harris


Top Albums


1. Turn Blue, The Black Keys


2. 5 Seconds of Summer, 5 Seconds of Summer


3. XSCAPE, Michael Jackson


4. Ghost Stories, Coldplay


5. Frozen, Various Artists


6. Just As I Am, Brantley Gilbert


7. Rewind, Rascal Flatts


8. Demi, Demi Lovato


9. Fuse, Keith Urban


10. The New Classic, Iggy Azalea



(copyright) 2014 Apple Inc.


Florida editorial roundup


Recent editorials from Florida newspapers:


May 19


Pensacola (Fla.) News Journal on another tax break:


For an area that has undergone a lot of misery the last three weeks, we're pleased to praise Gov. Rick Scott and the state Legislature for agreeing on a bill that will save families money this summer on school supplies.


Scott signed the bill last week that will mean several "back-to-school" items will be free of sales tax for three days. Eliminating the sales tax is a practice we've long supported, especially when there is a budget surplus.


This year it will be particularly welcome since money might be tight for flood victims as they recover and replace possessions. Besides, a lot of usable school supplies from this year - notebooks, pens and pencils, as well as clothing - might have been lost in the flood's aftermath.


The News Service of Florida said the back-to-school holiday takes place from Aug. 1-3 - mark your calendars - and will allow Floridians to buy clothes, school supplies and personal computers without paying sales taxes.


"The back-to-school holiday expands a discount introduced last year on computers and raises the tax-free bar from $75 to $100 on the prices of clothing, bags and backpacks," the News Service's Jim Turner reported last week. "Last year, sales taxes weren't collected on personal computers and related gear worth under $750. This year, no sales taxes will be collected on the first $750 of any computer and related gear, regardless of the overall cost of the piece of electronics."


Some estimates put the statewide savings at nearly $37 million for taxpayers. Families struggling to arm their children with the right supplies to succeed should welcome the chance to save a few dollars.


The back-to-school sales-tax holiday is the latest in a series of moves lawmakers crafted and the governor supports. Last month, the governor signed into law a move that rolls back vehicle fees that will save motorists $20 to $25 per vehicle. Our own state Rep. Mike Hill made that a goal during his campaign last year and deserves praise for working to get it passed.


"The vehicle fee reduction is expected to collectively save motorists about $309 million during the upcoming 2014-15 budget year, with the new lowered rates going into effect Sept. 1," the News Service reported. "Those savings are expected to grow to about $395 million a year, once they are in effect for the full 12 months of a fiscal year."


When it's affordable, we appreciate any effort that puts money in taxpayers' pockets.


Online:


http://www.pnj.com


---


May 17


News-Journal, Daytona Beach, Florida, on taxes:


What government "gives" you with one hand, it can take away with the other — often while hoping the taxpayer is not paying close attention.


That's the bait and switch the state pulled in its recently concluded session.


At Gov. Rick Scott's request, legislators passed a $400 million cut in car tag fees, effectively repealing the increase the Legislature passed in 2009 during a budget crisis caused by the Great Recession. The cut is the right move, as the hike had been sold as a temporary, emergency action to help offset declining revenues while staving off spending cuts in critical areas. Now that the state is running a budget surplus, the time is right to restore the previous lower fees.


However, at the same time Tallahassee is looking to spend more than $400 million more on education for 2014-15 — but making local taxpayers fund the bulk of it.


Each year the Legislature sets the Required Local Effort (RLE) rate, which is the property tax rate local school districts must levy in order to receive funding back from the state. The amount that each district receives is determined by a formula, with some getting back more than they sent up the pipe and others getting less. Volusia County is considered a "donor" county because it receives only about 97 cents on every dollar it sends to Tallahassee.


If taxable property values fall across the state, the Legislature can either mandate a property tax rate increase or make up the difference from the general fund. If values increase, as they have recently, the state can maintain the same tax rate, which will bring in additional local dollars; or the Legislature can implement what is called the roll-back rate on the RLE, a decrease that will offset the increase in values and make the RLE revenue-neutral.


Guess which option legislators chose this year.


The RLE tax rate will remain the same, so lawmakers can boast they didn't raise taxes. Yet, most local property owners still will pay more in taxes because their property values went up. This is called having your cake and eating it, too.


State legislators increase funding for education without having to find the extra dollars in the state budget, thus avoiding making hard choices. They do so by shifting the burden to local taxpayers, but without taking direct responsibility for it by raising the property tax rate.


When property owners open their new tax bill and see a bigger number, most would need a CSI unit to detect the state's fingerprints on it.


Granted, the increase for most won't be overwhelming — about 5 percent (by contrast, the state is increasing its contribution to education funding by 2 percent). But that essentially will offset the savings from the widely touted cut in car tag fees — and perpetuate a discouraging lack of government transparency.


Online:


http://bit.ly/1jpL3BP


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May


Online:


May 19


Miami Herald on President needing to address VA scandal:


Before President Obama gives in to the clamor for the resignation of Veterans Affairs Secretary Eric Shinseki, he should order the retired general to fix the problem, ASAP.


It's become depressingly customary for politics to trump policy in virtually every realm of activity in Washington. The latest scandal is no exception. A resignation might appease some administration critics — for one news cycle. Meanwhile, nothing would get done about the excessive wait times and allegations that some hospitals kept a double set of books to conceal the problem, leading to unnecessary deaths from lack of service.


To be clear, there are actually two overlapping scandals that require action.


— The first is the systemic dysfunction involving long wait periods, high personnel turnover, insufficient doctors and patients left to wait even when facing life-threatening health problems.


These are problems inherited by the administration, and there are signs that some progress has been made under Gen. Shinseki, who was plucked from retirement by President Obama to run this chronically troubled agency. Iraq and Afghanistan veterans are using VA healthcare at higher rates than past generations of veterans, more Vietnam vets are receiving VA care as they age and the agency has liberalized rules for treatment of PTSD.


But progress has not been fast enough. Two years ago, a Government Accountability Office report concluded that the VA's reporting on its medical-appointment wait times was "unreliable" and badly in need of a complete overhaul.


— That could have led inadvertently to the current firestorm. Gen. Shinseki ordered that wait times at the 152 medical centers in the VA system be reduced to 14 days. In places like the VA's Phoenix facility, doctors apparently tried to game the system by hiding the real number of veterans on the waiting list. As many as 40 patients died while waiting for care.


On this front, Gen. Shinseki's role has been unsatisfactory. He urged Congress to wait until various internal investigations are done, but that could take until August. The VA secretary himself has seemed maddeningly impassive, other than to tell Congress that he was "mad as hell" about it. Shouldn't he be hiring more doctors and visiting some of the troubled facilities in person?


Contrast his lack of action with former Secretary of Defense Robert Gates in 2007 when he learned of medical-treatment failures at Walter Reed Hospital. He immediately went to the hospital (so did President Bush), fired the commanding general and promptly got the resignations from the previous commander and the Secretary of the Army.


That is easier to do in the military, of course. House Republicans have proposed legislation to give Mr. Shinseki greater authority to fire or demote senior executives and administrators. Congress should do so — then let's see what he does with it.


The buck stops with the president, whose silence is baffling. Unlike his reaction to the scandal in the Affordable Care Act last fall, when he repeatedly reassured Americans the problem would be fixed, Mr. Obama has limited his response to a written statement. That's not enough. If he cares, he must show it.


As for Gen. Shinseki, he should take to heart the example of former Secretary of Health and Human Services Kathleen Sebelius. She ignored calls for her resignation over the Affordable Care foul-up and stayed to oversee the fix. Then, after the job was done, she resigned.


Online:


http://hrld.us/1sRZ4t2



Corn growers refuse to pay more for marketing plan


Michigan corn producers have rejected a proposal to pay more for a program that promotes their industry.


The plan called for boosting the assessment rate from 1 cent per bushel to 2 cents per bushel to generate revenue for research, education and marketing.


The April referendum was the first that asked growers to boost their payment rate since the corn marketing program was created in 1993.


President Mark Kies says the program's operators are disappointed with the vote results and will talk with growers around the state about what to do next.


He says a strong and sophisticated marketing program is needed to answer criticism of the industry.



Lawyer faces prison in Rothstein Ponzi scam


A South Florida attorney is facing a prison sentence after she was convicted for playing a role in Ponzi schemer Scott Rothstein's $1.2 billion fraud scam.


A federal judge in West Palm Beach is set Tuesday to sentence Christina Kitterman. She was convicted in February by a jury on three wire fraud counts, each of which carries a potential 20-year prison sentence. Kitterman's attorney is seeking a more lenient sentence.


Trial testimony showed that Rothstein asked Kitterman to pose as a Florida Bar official in a conference call with nervous investors. The Ponzi scheme involved investments in fake legal settlements.


Kitterman so far is the only one of about 20 people charged in the fraud case to go to trial. Rothstein is serving a 50-year prison sentence after pleading guilty.



Adult portable bed handles recalled; 3 deaths


About 113,000 adult portable bed handles used to help people get into and out of bed are being recalled following reports of three deaths.


The Consumer Product Safety Commission says the recall involves handles sold by Bed Handles Inc., of Blue Springs, Missouri.


The agency says the handles can shift out of place when attached to a bed without the use of the safety retention straps — creating a dangerous gap between the handle and the side of the mattress.


CPSC says three women became trapped between the mattress and the handles, and died. One was an elderly woman at a Minnesota assisted living facility; another was at a Washington state managed-care facility. The third woman, in her 40s and disabled, died at an adult family home in Washington state.



McConnell Wins Big Over Tea Party Challenger In Kentucky



Kentucky Republican Senator Mitch McConnell, left, and his wife Elaine Chao, center, talk with poll workers at their precinct Tuesday, May 20, 2014, at Bellarmine University in Louisville, Ky.i i


hide captionKentucky Republican Senator Mitch McConnell, left, and his wife Elaine Chao, center, talk with poll workers at their precinct Tuesday, May 20, 2014, at Bellarmine University in Louisville, Ky.



Timothy D. Easley/AP

Kentucky Republican Senator Mitch McConnell, left, and his wife Elaine Chao, center, talk with poll workers at their precinct Tuesday, May 20, 2014, at Bellarmine University in Louisville, Ky.



Kentucky Republican Senator Mitch McConnell, left, and his wife Elaine Chao, center, talk with poll workers at their precinct Tuesday, May 20, 2014, at Bellarmine University in Louisville, Ky.


Timothy D. Easley/AP


What some called the Super Tuesday of the 2014 mid-term election cycle, with six states holding nominating contests, began with a big win for the Republican establishment.


In Kentucky, Sen. Mitch McConnell's smack down of Tea Party-backed businessman Matt Bevin in the GOP primary was an emphatic victory for the five-term senator who made this bold prediction about Tea Party-backed Senate challengers earlier this year: "We're going to crush them everywhere."


In defeating Bevin 60 percent to 36 percent, McConnell's clear-cut win suggested he might have a unified Republican party with him in his race against Democrat Alison Lundergan Grimes who, as expected, also won her primary.


Recent polls have placed McConnell and Grimes in a statistical tie in a contest likely to be the most expensive Senate race in the 2014 election cycle. As this was being written, McConnell had a nearly 30-percentage point lead on Bevin. That suggested the Senate's Republican leader might not have a mostly unified party behind him come November.


McConnell's victory was, to some extent, a kind of delayed revenge for the Senate minority leader. In 2010, his preferred candidate for an open Senate seat lost to Sen. Rand Paul, the Tea Party favorite that year. Four years later, not only did McConnell beat aTea Party-backed challenger, he did it with Paul's support.


Polls in Georgia, like in Kentucky, closed at 7 pm but results weren't yet available in a race there that pit several Republicans against each other for the nomination to an open Senate seat. The Republicans would be facing Democratic primary winner Michelle Nunn, the daughter of a popular former senator from the state.


As in Kentucky, the Republican race found establishment Republicans, confronting candidates with Tea Party backing.


David Perdue, the former CEO of Dollar General and cousin of former Georgia Gov. Sonny Perdue, and Rep. Jack Kingston, chair of a House Appropriations subcommittee represented the establishment. Going into primary day, the likeliest outcome seemed that they would face off against each other in a July runoff as the two top vote getters.


The GOP's Tea Party wing was represented by three candidates: Rep. Paul Broun, who attracted national attention for his infamous comment that evolution and the Big Bang were "lies straight from the pit of hell;" Rep. Phil Gingrey, a medical doctor, and Karen Handel, the former senior vice president for public policy at Susan G. Komen for the Cure.


The four other states with primaries were Arkansas, Pennsylvania, Idaho and Oregon.


Pennsylvania's primary to decide the Democratic nominee for governor resulted with businessman Tom Wolf winning going away as expected. At the time of this writing, he had more than 50 percent of the primary vote while the woman who at one time was thought to be the likeliest to win the nomination, Rep. Allyson Schwartz, was far behind in second place.


In Arkansas, Democratic Sen. Mark Pryor and Republican Rep. Tom Cotton were expected to easily win their parties' Senate nominations.


In Idaho, eight-term congressman Rep. Mike Simpson faced a challenge from Tea Party-backed Bryan Smith who drew early support from the Club for Growth but found that backing waning as the Chamber of Commerce and other establishment groups rallied behind the incumbent.


Oregon's Republican primary featured Dr. Monica Wehby who faced a Tea Party-backed challenger, Jason Conger, a state representative. Both wanted to be the party's choice to run against first-term Democratic Sen. Jeff Merkley.


Wehby was thought to be the likely winner of the Republican primary though her candidacy was rocked by allegations that she had stalked an ex-boyfriend and that her ex-husband had complained of her post-divorce behavior as well.


The impact of that late-breaking controversy on the race could be minimal since many of the ballots in Oregon were already mailed in when that information became public.



White House To Release Secret Memo On Drone Strikes


The White House will reportedly comply with a court order to release a secret memorandum describing the legal justification for the 2011 drone strike against three Americans in Yemen, including Anwar al-Awlaki, an al-Qaida leader born in the U.S.


NPR's Scott Horsley reports that "the document had become a stumbling block in the judicial nomination of the man who wrote it" — Justice Department lawyer David Barron.


The Associated Press and Reuters say that the Justice Department has decided not to appeal a ruling requiring that a redacted copy of the memo be turned over under the Freedom of Information Act request.


Reuters quotes an unnamed official as saying that "while the legal analysis that justifies the use of drones will be disclosed, some facts will still be excluded from the document."


The decision comes as the Senate is set to vote Wednesday on advancing Barron's nomination to sit on the 1st U.S. Circuit Court of Appeals in Boston.


The AP writes that "Sen. Rand Paul, R-Ky., had vowed to fight Barron's confirmation, and some Democratic senators were calling for the memo's public release before a final vote."




Scott says that the memo "makes the case that President Obama was justified in ordering the targeted killing" of al-Awlaki in 2011.


"Obama has said such a strike would not be legal on U.S. soil, but was justified because al-Awlaki had gone abroad to wage war against America and was actively plotting to kill U.S. citizens."




Al-Awlaki was born in New Mexico, educated in Colorado and spent several years as a cleric in San Diego and later at Falls Church, Va., before becoming a propagandist for al-Qaida in the Arabian Peninsula, an affiliate based in Yemen.


As we reported at the time he was targeted: "The 9/11 Commission's report released in 2004 indicated that al-Awlaki had met two of the Sept. 11, 2001, hijackers at the Virginia mosque, but the nature of those contacts is unclear.




"In 2002, Awlaki left the U.S. and spent time in London before arriving back in Yemen two years later, where he continued to distribute lectures and sermons over his now-defunct website, including one entitled 'The 44 Ways To Support Jihad.'


"Al-Awlaki was considered a master propagandist for al-Qaida who helped shape the network's Yemeni-based affiliate into what American officials described as the most significant threat to the U.S. homeland."




The cleric's grandson and another American were also killed in the 2011 drone strike.


In April, the White House agreed to let Senators read the memo but still did not want to release it publicly.



House approves $12 billion-plus water bill

The Associated Press



The House passed the closest thing so far this year to an infrastructure bill — a $12 billion-plus bipartisan measure authorizing 34 water projects, ranging from flood protection in California and North Dakota to deepening the Port of Savannah and widening a Texas-Louisiana waterway that services the oil industry.


The Water Resources Reform and Development Act passed Tuesday on a 412-4 vote. Lawmakers shook off criticism from conservative and watchdog groups like Heritage Action and Taxpayers for Common Sense that argued the bill should have done more to rein in wasteful government spending.


The Senate could vote on the bill before the end of the week, sending it to President Barack Obama for his signature. The legislation is a bipartisan compromise of companion bills passed separately by the House and Senate last year. After months of negotiations, a final deal on it was reached last week.


Supporters, including business interests like the U.S. Chamber of Commerce hailed it an economy-boosting measure that could deliver thousands of new jobs.


"It's going to keep America competitive," said Rep. Bill Shuster, chairman of the House Transportation Committee.


Shuster, R-Pa., and other lawmakers also argued the bill was more fiscally responsible than past water projects bills. On the House floor, he noted the bill puts an end to $18 billion in dormant water projects passed before 2007.


That was not enough for some critics. A Taxpayers for Common Sense analysis released this week called the bill "a missed opportunity to reform management of our nation's infrastructure in a fiscally responsible manner."


With an estimated cost of $12.3 billion, the measure is a slimmer version of past water project bills. The last one in 2010, for example, had a price tag of $23.3 billion.


The new bill addresses pent-up demands by lawmakers, including addressing flooding concerns in places like Fargo, North Dakota and the Natomas Basin in the Sacramento, California area.


The bill authorizes spending up to $800 million for a flood diversion project that would protect the Red River Valley region of North Dakota and Minnesota, which includes Fargo. The region has suffered major flooding four of the past five years.


In California, the bill allows as much as $760 million in federal spending for a project that would strengthen levees of the Natomas Basin in the Sacramento area, which could protect more than 100,000 residents.


There are also big investments in projects that improve infrastructure for commerce.


The bill sanctions more than $748 million in federal funds for dredging and widening of the Sabine-Neches Waterway, which is billed as "America's Energy Gateway" because the roughly 80-mile waterway services oil and natural gas refineries in Texas and Louisiana. It also includes approval of up to $492 million for expanding and deepening the Port of Savannah, one of the country's fastest growing ports. Actual funding of all the projects will require separate bills.


Congress is expected to consider another key infrastructure bill before the end of the year. A Senate panel last week approved a bill to keep federal highway programs going for the next six years, but it remains uncertain whether Congress will complete its work in time to stop a disruption in transportation aid to states this summer.


Besides authorizing specific water projects, Tuesday's bill makes changes to how future projects are to seek funding. It sets specific time and cost limits for studies on potential projects, eliminates duplicative Army Corps of Engineers reviews and speeds up environmental review process for projects.


The bill also increases spending from the Harbor Maintenance Trust Fund to pay for improvements to ports and creates a five-year pilot program to provide loans and loan guarantees for various water projects.



Hard Rock: Interested in Revel if price is right


The president of the Seminole Indians' Hard Rock franchise says the company would consider buying Atlantic City's Revel Casino if the price were right.


Revel, Atlantic City's newest casino, is seeking a buyer or a partner for a joint venture.


Florida-based Hard Rock has been a long-rumored suitor for Revel and made preliminary inquiries earlier this year to New Jersey casino regulators about what license it would need if it pursued Revel.


Hard Rock president James Allen, speaking Tuesday at the East Coast Gaming Congress, confirmed the company has kicked the tires at Revel.


"We certainly looked at it," he said. "We participated in the process. The question is not whether Revel will be operating. The question is what will you have to put into a property that's negative" in terms of earnings.


While acknowledging the casino is little more than two years old, Allen said Revel "needs a lot of work. There are issues with the design."


Revel is designed with the casino on an upper floor that has to be accessed by a long escalator.


Nonetheless, Allen said, "If the economics were right, then we would be interested." He declined to say what he considered a fair price for the casino, which cost $2.4 billion to build and has already gone through bankruptcy once.


The company's filings with the state indicate it planned to seek a statement of compliance, a preliminary step in determining who needs to seek and hold a casino license.


In a February ruling, the New Jersey Division of Gaming Enforcement said the tribe does not need to qualify for a license but listed several Hard Rock executives who would need to, including Allen.


Hard Rock previously dipped its toe into the waters of Atlantic City's gambling market but quickly pulled it back. In November 2011 it was accepted into a pilot program New Jersey was operating to permit construction of smaller boutique-style casinos that contained fewer than the 500 hotel rooms required by current regulations.


A musical history museum with rock 'n' roll memorabilia was a key part of Hard Rock's proposal. Its hotel would have started at 208 rooms and eventually expanded to 850. The first phase of the project would have cost about $465 million.


But less than a year later, and without putting a shovel into the ground, Hard Rock scrapped the idea due to market conditions at the time.



Medical marijuana OK'd for injured worker


The New Mexico Court of Appeals has ruled that a worker's employer and its insurer must pay for medical marijuana for treating the employee's chronic pain from a job-related back injury.


The court on Monday (http://bit.ly/1lWwlm2 ) upheld a decision by a workers' compensation judge that medical marijuana was "reasonable and necessary medical care" from a health care provider under terms of workers' compensation law.


The worker had a 99 percent permanent partial disability.


An automotive repair shop and its insurer appealed after being ordered to reimburse the worker for medical marijuana expenses.


The court rejected the employer's argument it would be required to violate federal law by paying for the marijuana.


New Mexico started its medical marijuana program began in 2007, although pot remains illegal under federal law.



Spotify's Top 10 most streamed tracks


The following list represents the top streamed tracks on Spotify from Monday, May 12, to Sunday May 18:


UNITED STATES


1. Iggy Azalea, "Fancy" (Virgin EMI Records)


2. Ariana Grande, "Problem" (Republic Records)


3. Calvin Harris, "Summer" (Columbia Records)


4. John Legend, "All of Me" (Columbia Records)


5. DJ Snake & Lil Jon, "Turn Down for What" (Columbia Records)


6. Disclosure, "Latch" (Interscope Records)


7. Katy Perry, "Dark Horse" (Capitol Records)


8. Jason Derulo, "Talk Dirty - feat. 2 Chainz" (Warner Bros. Records)


9. Am I Wrong, "Nico & Vinz" (Parlophone Norway)


10. Bastille, "Pompeii" (Virgin Records Ltd)


UNITED KINGDOM


1. Mr. Probz, "Waves - Robin Schulz Radio Edit" (Ultra / Sony Music Entertainment Netherlands B.V.)


2. Calvin Harris, "Summer" (Columbia Records)


3. Iggy Azalea, "Fancy" (Virgin EMI Records)


4. Kiesza, "Hideaway" (Lokal Legend/Universal Music Ltd.)


5. Clean Bandit, "Rather Be feat. Jess Glynne" (Warner Music UK Limited)


6. John Legend, "All of Me" (Columbia Records)


7. Aloe Blacc, "The Man" (XIX Recordings LLC/Interscope Records)


8. Sigma, "Nobody to Love - Extended Mix" (All Around The World)


9. Route 94, "My Love" (Universal Music Ltd.)


10. Katy Perry, "Dark Horse" (Capitol Records)


GLOBAL


1. Calvin Harris, "Summer" (Columbia Records)


2. Clean Bandit, "Rather Be feat. Jess Glynne" (Warner Music UK Limited)


3. Mr. Probz, "Waves - Robin Schulz Radio Edit" (Ultra / Sony Music Entertainment Netherlands B.V.)


4. David Guetta, "Bad (feat. Vassy) - Radio Edit" (Parlophone France)


5. John Legend, "All of Me" (Columbia Records)


6. Iggy Azalea, "Fancy" (Virgin EMI Records)


7. Ariana Grande, "Problem" (Republic Records)


8. Katy Perry, "Dark Horse" (Capitol Records)


9. Coldplay, "Magic" (Parlophone UK)


10. Aloe Blacc, "The Man" (XIX Recordings LLC/Interscope Records)



Oklahoma House passes worker pension overhaul bill


Legislation that eliminates traditional pension benefits for newly hired state workers in favor of a 401(k)-style retirement plan was approved by the Oklahoma House on Tuesday despite concerns of opponents that it could force state workers to retire into poverty.


The House voted 58-33 for the measure and sent it to the state Senate, which has passed earlier versions of the legislation. Republican Gov. Mary Fallin has said she supports moving new employees from the state's traditional pension system to the 401(k)-style benefit similar to that used in the private sector.


The House also voted 95-0 for separate legislation to authorize $36.8 million in pay raises for thousands of state employees in 25 state agencies including corrections workers, Oklahoma Highway Patrol troopers, child welfare workers and employees identified as the state's most underpaid by a recent comprehensive employee compensation study.


Supporters of the pay raise bill said it was a companion measure to the pension overhaul legislation. The raises will range from 6.25 percent to 13.5 percent.


The pension measure creates a new defined contribution retirement system for state workers, beginning in November 2015. Workers hired before that time and retirees will keep their current defined benefit pension plan.


New state workers covered by the Oklahoma Public Retirement System would be required to contribute at least 3 percent of their salary to their retirement and the state would match employees' contributions up to 7 percent.


The measure does not apply to correctional officers, probation and parole officers and other Department of Corrections workers whose jobs are classified as "hazardous duty," as well as district attorneys and employees of prosecutors' offices.


Supporters, including the measure's author, Rep. Randy McDaniel, R-Edmond, said Oklahoma's current public pension system has an unfunded liability of $11 billion and that the state spent $823 million last year just to service that debt.


"The costs are increasing and the costs are crowding out other priorities," McDaniel said.


"That which is unsustainable will eventually go away," said Rep. David Brumbaugh, R-Broken Arrow. Brumbaugh said the unfunded liability in Oklahoma's pension systems is the result of cost-of-living adjustments for retirees that have been authorized by lawmakers over the years without the funding to pay for them.


"It's years and years of saying: 'Let's kick the can down the road,'" he said.


Opponents said the change could leave future retirees with lower benefits than they would receive under the current pension plan. It could also place the retirement benefits at risk by forcing state workers to invest in the stock market and other private investment vehicles, opponents said.


"This is bad for public employees," said Democratic Leader Scott Inman of Oklahoma City. Inman and others said the switch to a 401(k)-style plan is being pushed by private investment firms who want access to state worker retirement plans.


Rep. Richard Morrissette, D-Oklahoma City, compared the proposal to failed efforts in Congress to privatize Social Security. Morrissette maintained that Oklahoma's pension system is 80 percent funded and was basically sound.


"What's the problem? There isn't any," he said.


Rep. James Lockhart, D-Heavener, questioned the impact a stock market crash might have on state workers whose retirement accounts are invested in the market.


"They're going to line up for welfare," Lockhart said. He said 42 percent of state workers already qualify for some form of state public assistance due to low salaries.


---


Online:


House Bill 2630: http://bit.ly/1iQbij0



Brazil tries to assure tourists airports are OK


Brazil is trying to assure World Cup tourists that they won't face problems at airports even though not all upgrades will be complete.


The chronic delays in airport renovations have matched those in stadium construction, and officials have acknowledged for a while that visitors will be using unfinished airport facilities. Now they are stressing that everything will be OK for fans on arrival.


Wellington Moreira Franco, Brazil's civil aviation minister, said in an interview with The Associated Press that "all airports will be prepared to adequately" receive World Cup tourists and all "major" projects will be completed.


"I would tell tourists not to worry," Franco said.


A day earlier, President Dilma Rousseff used her weekly radio show to "guarantee" the airports will be ready.


But the government's attempts to downplay concerns come as problems continue to arise three weeks from the start of the tournament. In the latest setback, heavy rain caused flooding in the passenger terminal of the World Cup airport in the jungle city of Manaus on Monday, upsetting travelers and forcing officials to temporarily close some areas.


Construction continues at full pace in many airports, and some of the renovation projects initially planned for the World Cup will be completed only after the tournament.


"Of course, we all wanted the work to be ready, but it's not," Franco said. "But that doesn't mean that there will be problems. The work is not finished, there are some delays. But that's not keeping us from being prepared."


The government predicts 3.7 million people will travel in the country during the World Cup, including 600,000 from abroad. Airports are crucial because nearly all of the travel between host cities will be by air.


Franco said Brazilian airports are already able to handle more passengers than that during the peak period of Christmas and New Year's.


Tourists "won't find anything different than they would normally find anywhere else," Franco said. "I assure everybody coming to Brazil that you will find the same level of comfort and security as you would find in other airports in the world. The problems here aren't better or worse than the problems you have at home."


Industry experts interviewed by the AP recently warned that fans should brace for some difficulties at airports because of the construction delays, but noted it was unlikely there will be widespread chaos in air travel during the monthlong World Cup.


"I know there are many concerns and doubts," Franco said. "It's natural that sometimes there are fears that things may go wrong in countries outside of the 'first world.' But you can rest assured, we are not concerned."


Rousseff has been trying to get that message across any time she gets a chance.


"People coming through airports today will notice that the dust is settling, the noise is dwindling and the boards are coming down to give way to modern and comfortable installations," Rousseff said during her radio show. "I guarantee that our airports are prepared for the World Cup."



Lawmakers delay initial vote on Detroit bankruptcy


Michigan lawmakers are preparing for an initial vote on bills to give $195 million in state money to help Detroit emerge from bankruptcy while keeping the city under state oversight for decades.


The Republican chairman of a House committee plans to vote on the 11-bill package Tuesday but says he may wait a day because a number of changes are being made. City unions oppose provisions in the bills that aren't part of a deal brokered with bankruptcy mediators.


The legislation commits $194.8 million to help prevent steeper cuts to retiree pensions and the sale of pieces at the Detroit Institute of Arts. Foundations and the museum have pledged hundreds of millions of dollars, too.


Gov. Rick Snyder says he wants the bills on his desk in June.



Meadowlands casino pondered at Atlantic City forum


With Atlantic City's casino market struggling, the allure of a casino just outside New York City is becoming stronger to some.


At a regional gambling conference Tuesday in Atlantic City, Assemblyman Ralph Caputo said casino in the northern New Jersey Meadowlands is the way to recapture gambling money the state is currently losing.


"A casino in north Jersey, to be taxed at 50 or 60 percent, we could do a billion dollars a year in that location," said Caputo, a northern New Jersey Democrat. "We've got to be fighting for those customers. That's what Pennsylvania is doing. That's what New York wants to do. We've got to beat New York to the punch."


Sen. Jeff Van Drew, a Democrat from Cape May County, just south of Atlantic City, said the state made a promise to restrict casino gambling only to Atlantic City.


He called Caputo a bright, articulate businessman who is right 99 percent of the time. "But when he's wrong, he's really wrong," Van Drew said.


"We have to stop talking about the Meadowlands," Van Drew said. "The Meadowlands would cannibalize the industry; the Meadowlands will just further split that gambling pie and hurt Atlantic City."


Gov. Chris Christie has said he will give Atlantic City five years to show serious signs of improvement before he will consider asking voters to approve casinos elsewhere in the state. That clock started ticking with the February 2011 enactment of a state-administered tourism district in Atlantic City.


Christie's Atlantic City plan included the tourism district, which was designed to bring additional safety and cleanliness resources; relief from some costly regulations for casinos; and $30 million a year from casinos to market Atlantic City.


Legislators in northern New Jersey have long wanted a casino at the Meadowlands sports complex in East Rutherford. With Atlantic City mired in a revenue plunge of more than seven years, calls for a so-called "northern option" are growing stronger.


Oliver Cooke, an economics professor at Richard Stockton College of New Jersey, said Atlantic City's near-term future remains challenging. He said the casino market needs to continue "right-sizing," the sooner the better. Atlantic City currently has 11 casinos following the January shutdown of the Atlantic Club.


Anthony Faranca, who began his casino career in Atlantic City and is now general manager of Pennsylvania's Parx Casino, agreed.


"My heart is in Atlantic City, but clearly there is oversaturation in this market," he said. "Even if it does turn the corner, I think there's too much capacity in this great city. There are some tough decisions that have to be made."


State Senate President Steve Sweeney was due to address the conference later Tuesday.



Mining firm resumes drilling at rare mineral site


Drilling is set to resume in southeast Nebraska this week as a Canadian mining firm looks for more evidence of a sizable deposit of a valuable and rare heat-resistant element used in steel.


NioCorp Developments said Tuesday it has hired West-Core Drilling of Elko, Nevada, to collect more core samples from the niobium deposit near Elk Creek.


This summer's drilling will be the first since 2011 at the site. The company is trying to determine whether it would be profitable to build a mine to harvest the niobium from several hundred feet underground.


The U.S. currently imports nearly all the niobium that's used in this country to harden steel and make it more heat-resistant for industrial uses.



United Tech sees end to Canada helicopter dispute


Company officials say that a deal is close that would allow for the long-delayed delivery of Sikorsky helicopters into Canada.


Delivery of 28 helicopters was scheduled to begin in 2012, but Sikorsky has clashed with Canadian officials over production, support and other issues.


Details about the deal are expected within 30 days, according to Louis Chenevert, the CEO of United Technologies Corp., which is the parent company of Sikorsky Aircraft.


The company warned in April that, after discussions with Canadian officials, retrofitting costs and an extended program schedule would lead to "significantly higher" costs.


United Technologies says it will likely take a charge this year related to the delivery, but believes other benefits this year will offset those charges.



Regulation focus of Iowa global insurance meeting


Insurance companies, trade groups and regulators are gathering in Iowa to discuss the industry's major issues.


As the three-day Global Insurance Symposium is set to get underway Wednesday in Des Moines, plans to regulate firms like banks and impose national or even international oversight are at the fore.


The gathering includes top insurance officials from Germany, India, Japan and the United States. It was organized by Iowa Insurance Commissioner Nick Gerhart, who oversees a division regulating more than 200 insurance companies based in Iowa. The financial services industry employs 4,200 workers in the state at companies that include ING Life Insurance, Metlife, Nationwide, Principal Financial Group and Prudential.


As insurance increasingly becomes a global business, one of the biggest concerns is an effort to set international standards for insurance regulation. Most other countries have a centralized government regulatory system, unlike the United States where the insurance industry is largely regulated on a state-by-state basis. Each state has a commissioner responsible for making sure companies retain sufficient capital to remain financially healthy and are appropriately serving consumers. Some U.S. and international regulators have advocated for regulations that closely resemble those imposed on banks.


"From our perspective, one-size-fits-all-bank-centric world doesn't work in insurance," Gerhart said. "Insurance is not banking, so that's what we're working on. That will be a theme repeated over the next day and half."


The Great Recession of 2007-2009 brought new financial regulation for U.S. banks and some of it spilled over into the insurance industry, said Leigh Ann Pusey, the CEO of American Insurance Association, a trade group representing 300 property-casualty insurers.


Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act in 2010, which forces banks to comply with strict regulations on reporting, cash reserves and investment guidelines. The law also set up a Federal Insurance Office in the U.S. Department of Treasury. It is seen as the first step toward federal government regulation of insurance, a worry for many in the industry who say states have safety regulated insurance for more than 140 years.


Critics say the fragmented nature of the state-based regulatory system makes it more expensive and difficult for companies that sell insurance nationally to comply with 50 different regulatory schemes. They also argue that as the industry gravitates toward a globalized insurance market an overall federal regulatory system makes more sense.


Pusey, who plans to participate Thursday in a panel discussion at the Des Moines symposium, said the Financial Stability Board, the international panel established by the G-20 working toward global financial standards, is bank-centered and moving too quickly.


"I think the industry globally, not only here in the United States, is sort of very worried about more bank-centric approach to views of capital," she said. "There's a pace here that is both unrealistic and dangerous leading to potentially unintended consequences."


Strict bank-style requirements that insurance companies hold certain levels of restricted cash in reserve could reduce the ability of insurers to cover policy and claims obligations and might prompt some to cut back their business, reducing insurance available on the market, she said.


"I think consumers should be paying attention both to making sure they are still protected as they are today and that nothing undermines that system that the U.S. has designed," Pusey said.


Iowa Gov. Terry Branstad, like many governors in states with a major insurance presence, is protective of the state-based regulatory system.


"What's important is for the international people to know the tremendous benefit of the state-regulated insurance industry that we have in America compared to the disaster they have in Europe," he said Monday.


Speakers are to include Mike McRaith, director of the Federal Insurance Office; Ben Nelson, the former Nebraska governor and U.S. senator who is now the CEO of the National Association of Insurance Commissioners; Naruki Mori, assistant commissioner for international affairs of the Japan Financial Services Agency; and T.S. Vijayan, chairman of Indian Insurance Regulatory and Development Authority.



Follow David Pitt on Twitter at http://bit.ly/1l3JZX4 .


Credit Suisse case called warning to foreign banks


Credit Suisse AG's guilty plea and $2.6 billion payment in a high-profile case brought by the Justice Department are being held out as a warning to foreign banks believed to be helping U.S. taxpayers conceal assets.


Culminating a yearslong criminal investigation, Switzerland's second-largest bank pleaded guilty Monday to helping wealthy Americans avoid paying taxes through secret offshore accounts. Credit Suisse was the largest bank to plead guilty in more than 20 years.


The settlement resolves the investigation into allegations that Credit Suisse, Switzerland's second-largest bank, recruited U.S. clients to open Swiss accounts, helped them conceal the accounts from the Internal Revenue Service and enabled misconduct by bank employees.


The case is part of an Obama administration crackdown on foreign banks believed to be helping U.S. taxpayers hide assets. Justice Department officials said their investigations into secret bank accounts held by Americans in Switzerland and other countries likely will bring forth additional resolutions.


"We are mindful that guilty pleas by a bank can have impacts far beyond" the parties involved in the case, Deputy Attorney General James Cole told reporters.


"This plea demonstrates that the Department of Justice and bank regulators are prepared to hold banks and their relevant employees accountable while being mindful of the impacts on depositors and the American public," he said.


Switzerland's largest bank, UBS, in 2009 entered a deferred prosecution agreement with the Justice Department in which it agreed to pay $780 million in fines and turn over the names of thousands of customers suspected of evading U.S. taxes. The country's oldest bank, Wegelin & Co., pleaded guilty in January 2013 to U.S. tax charges, admitting that it helped American clients hide more than $1.2 billion from the IRS.


In the Credit Suisse case, officials said a criminal charge was necessary to account for the bank's pattern of misconduct, which included a lack of cooperation and document destruction. But the deal was structured in such a way as to allow the bank to continue operating. Zurich-based Credit Suisse is on a regulators' list of 29 "global systemically important banks" whose failures would be considered a threat to the entire financial system.


The $2.6 billion in penalties — which happens to be roughly equivalent to Credit Suisse's net income for 2013 — will be paid to the Justice Department, the Federal Reserve and the New York State Department of Financial Services.


Attorney General Eric Holder, criticized last year after telling Congress that large banks had become hard to prosecute, appeared to foreshadow the guilty plea in a video message earlier this month in which he said no financial institution was "too big to jail."


"A company's profitability or market share can never and will never be used as a shield from prosecution or penalty," Holder said Monday. "And this action should put that misguided notion definitively to rest."


The criminal resolution follows a Senate subcommittee investigation that found the bank provided accounts in Switzerland for more than 22,000 U.S. clients totaling $10 billion to $12 billion. The report said Credit Suisse sent Swiss bankers to recruit American clients at golf tournaments and other events, encouraged U.S. customers to travel to Switzerland and actively helped them hide their assets. In one instance, a Credit Suisse banker handed a customer bank statements hidden in a Sports Illustrated magazine during a breakfast meeting in the United States.


Credit Suisse chief executive Brady Dougan has said previously that senior executives at the bank were not aware that some Credit Suisse bankers were helping U.S. customers evade taxes. More than a half-dozen former bankers have been charged for their role in aiding the tax evasion. The case was filed in federal court in suburban Alexandria, Virginia, where individual bankers have been charged.


"We deeply regret the past misconduct that led to this settlement," Dougan said in a statement Monday.


The administration's action against Credit Suisse, a banking fixture on Wall Street, comes amid public outrage that boiled over from the financial crisis that plunged the economy into the deepest recession since the Great Depression of the 1930s. Calls for holding big Wall Street banks accountable, and sending top executives to jail, have come from consumer advocates, lawmakers and others, putting the Justice Department on the defensive.


The case against Credit Suisse was intended in part to counter criticism that the U.S. government has not been aggressive enough in its pursuit of banks. A report from the Senate subcommittee that investigated Credit Suisse accused the Justice Department of lax enforcement and faulted the government for gleaning only 238 names of U.S. citizens with secret accounts at Credit Suisse, or just 1 percent of the estimated total.


The Justice Department's highest-profile settlement over sales of risky mortgage securities in the run-up to the financial crisis — the $13 billion deal among the department, state regulators and JPMorgan Chase — was a civil case, and no bank executives were charged. Federal prosecutors in California have been conducting a related criminal investigation.



Weak results at retailers drag US stocks lower


Dismal earnings from major retailers helped drag U.S. stocks lower in early trading Tuesday. Staples, Dick's Sporting Goods and Urban Outfitters were among the biggest decliners, while Home Depot bucked the trend.


KEEPING SCORE: The Standard & Poor's 500 index fell five points, or 0.3 percent, to 1,879 in the first 45 minutes of trading. The Dow Jones industrial average shed 55 points, or 0.3 percent, to 16,456. The Nasdaq composite slid 17 points, or 0.4 percent, to 4,108.


RETAIL SWOON: Staples' profit plunged 43 percent; Dick's Sporting goods fell short and pared its outlook; Discount retailer TJX had weak sales; Urban Outfitters reported lower-than-expected earnings as sales at its namesake chain declined.


FIRE SALE: Staples plunged $1.48, or 11 percent, to $11.92 in early trading. Dick's Sporting Goods fell $8.63, or 16 percent, to $44.64. Urban Outfitters slid $2.65, or 7.2 percent, to $33.57. TJX shed $3.45, or 5.9 percent, to $54.94.


HOUSING BET: Home Depot's adjusted earnings and revenue came in short of Wall Street's expectations. Still, a key sales metric improved despite a slow start to the spring home-selling season due to bad weather. The home improvement retailer also raised its full-year earnings forecast. Home Depot's stock rose $1.51, or 2 percent, to $78.


MORE RETAIL TURMOIL: Target fired the president of its troubled Canadian operations and replaced him with insider Mark Schindele, who has been senior vice president of merchandising operations in the U.S. Target fell 99 cents, or 1.7 percent, to $57.30.


OVER THERE: European markets mostly fell. France's CAC 40 fell 0.4 percent and Germany's DAX gave up 0.3 percent. Britain's FTSE 100 lost 0.7 percent. Thailand's stock market slumped and its currency wobbled after the military declared martial law in what it called an attempt to stabilize the country's precarious political situation.


OTHER MARKETS: Bond prices rose. The yield on the 10-year Treasury note edged down to 2.53 percent from 2.54 percent late Monday. Gold rose $1.20 to $1,295 an ounce. Crude oil fell to $101.81 a barrel.



Man City buys into Japanese club Yokohama


Manchester City expanded its global portfolio of clubs on Tuesday by buying a stake in Japanese team Yokohama F Marinos from Nissan Motor Co.


The Abu Dhabi-owned Premier League champions have already taken over Australian club Melbourne Heart and are starting new Major League Soccer franchise New York City FC.


By taking a minority stake in Yokohama, City said the J-League champions will gain access to its "training methods, medical care, sport science, team management and coaching know-how."


The income from such a partnership will aid City's attempts to comply with UEFA's Financial Fair Play rules. UEFA imposed a fine of 60 million euros ($82 million) on City last week and ordered the club limit its Champions League squads to 21 players next season for failing to curb overspending. UEFA said 40 million euros will be returned to City fulfills its financial obligations over the next two years, including limiting deficits to 10 million euros in the 2014-15 financial year.


City chairman Khaldoon Al Mubarak renewed the club's criticism of UEFA on Tuesday while making an indirect reference to rival Manchester United, which has faced criticism from its own fans for the millions of pounds it pays out to service debts loaded onto the club by its American owners.


"We have zero debt we don't pay a penny to service any debt," Al Mubarak said in an interview on the club website. "For me, that is a sustainable model however our friends in UEFA seem to believe otherwise.


"They have their view, we have ours. I disagree with their view."


City lost 149.5 million pounds ($252 million) between 2011 and 2013 as owner Mansour bin Zayed bin Sultan Al Nahyan, a member of Abu Dhabi's ruling family, spent heavily to transform the club into a European power.


"We will go into profitably next year," said Al Mubarak, whom the club declines to make available for interviews.



Study: Obamacare Buried By Avalanche Of Negative Ads



A framegrab image from video provided by Americans for Prosperity, shows a political ad against Rep. Ann McLane Kuster, D-N.H., stating the Affordable Care Act is not working.i i


hide captionA framegrab image from video provided by Americans for Prosperity, shows a political ad against Rep. Ann McLane Kuster, D-N.H., stating the Affordable Care Act is not working.



AP

A framegrab image from video provided by Americans for Prosperity, shows a political ad against Rep. Ann McLane Kuster, D-N.H., stating the Affordable Care Act is not working.



A framegrab image from video provided by Americans for Prosperity, shows a political ad against Rep. Ann McLane Kuster, D-N.H., stating the Affordable Care Act is not working.


AP


It's been obvious ever since 2010 that Republicans and conservatives were spending a lot more slamming the Affordable Care Act than the Obama administration and Democrats were spending to defend it.


But 15 to 1?


Yes. That's the ratio calculated by Kantar Media's campaign media analysis group – CMAG to political junkies. Kantar estimates that national advertising against the ACA cost $418 million, compared to $27 million for ads supporting the law. Kantar calls the anti-ACA spending "unprecedented [and] largely unanswered."


Even in general election-focused ads this year, 76 percent of Republican ads airing from January through April attacked the health care law. In Senate campaigns in New Hampshire and North Carolina and in 13 House races, Kantar found that every GOP broadcast ad brought up the anti-ACA messages.


Kantar's Elizabeth Wilner, a co-author of the analysis, said, "Positive ads about the ACA are still so rare that whenever one appears, it gets a national news story."


This massively lopsided spending is also a complete reversal from 2008, when then-candidate Barack Obama's campaign aired one contrast ad on health-care policy 24,000 times. Kantar says that's a record for the past 10 years – at least. But in 2012, the Obama re-election campaign ran just one ad on the ACA.


Yet in 2013, when millions of Americans had to sign up for coverage, industry spending spotlighted the differences of magnitude between American politics and American commerce. In just six months, insurance companies ran ads costing an estimated $381 million, not far behind what the law's critics spent over four years. The industry ads were neutral, neither attacking nor defending the law – "Switzerland," as Wilner put it.


Overall, she said, three factors — Republican intensity against the law, the new federal role and insurers' new activity selling insurance to consumers – came together to produce "a confluence of political and product advertising never seen before."



Despite Drama, Oregon GOP Choice Comes Down To Purity, Practicality



Audio for this story from All Things Considered will be available at approximately 7:00 p.m. ET.





Two Republicans with compelling personal stories are vying for the chance to unseat Oregon's incumbent Democratic senator, Jeff Merkley. Monica Wehby is a doctor with a rare specialty: She performs brain surgery on kids. Her chief opponent, Jason Conger, rose from extreme poverty to attend Harvard Law School in just a few years. The Northwest News Network's Chris Lehman reports on the GOP primary as it unfolds.



Lawmakers Seek Delay On Healthy Lunch Rules For Schools



Some schools say they're having a tough time implementing new nutrition rules requiring more whole grains, more veggies and less fat.i i


hide captionSome schools say they're having a tough time implementing new nutrition rules requiring more whole grains, more veggies and less fat.



Toby Talbot/AP

Some schools say they're having a tough time implementing new nutrition rules requiring more whole grains, more veggies and less fat.



Some schools say they're having a tough time implementing new nutrition rules requiring more whole grains, more veggies and less fat.


Toby Talbot/AP


How hard can it be for school cafeterias to swap white bread for whole-grain tortillas, cut sodium and nudge kids to put more fruit and vegetables on their trays?


Tougher then you might imagine, according to some schools.


From the Waterford school district in Wisconsin, to the Voorheesville school district in New York, to Arlington Heights in Illinois, schools have complained that the healthy school lunch standards that became law in 2012 are just too challenging. They say they need more time to figure out how to limit calories and fat and get more veggies on every plate.


And some lawmakers agree.


Congressional Republicans in charge of funding the school lunch program are proposing a waiver that would give schools a one-year reprieve from the standards if they are operating at a net loss.


The School Nutrition Association, which represents school food administrators and is supported by food service manufacturers, wants the waiver. The SNA estimates that about one million fewer students participated in the school lunch program last year - in part due to the new federal requirements.


"A temporary waiver would ease the burden on school meal programs, preventing more schools from dropping out of the National School Lunch Program altogether," SNA President Leah Schmidt writes in a release supporting the waiver.


In addition, the SNA is asking Congress and the U.S. Department of Agriculture to relax some new regulations — such as the requirement that students must take a fruit or vegetable as part of a meal.


"Forcing students to take a food they don't want on their tray has led to increased program costs, plate waste, and a decline in student participation," the SNA writes in a statement.


The SNA says it's asking for more flexibility, but some consumer health advocates are critical of the proposed changes. Margo Wootan of the Center for Science in the Public Interest says "really they are asking Congress to significantly roll back standards."


"By allowing school districts to opt out of school nutrition standards, House Republicans are opening up the floodgates to let all the old junk food back into schools, while crowding out the fruits, vegetables, and whole grains that have been gaining ground in the program," Wootan adds.


House Agriculture Subcommittee Chairman Robert Aderholt, Republican of Alabama, disagrees. "I continually hear from my schools in Alabama about the challenges and costs they are facing and their desperation for flexibility and relief so that they can operate a [school meal] program serving healthy foods the kids will eat," he said in opening remarks at a hearing Tuesday.


USDA has said in the past that it doesn't have the authority to grant a waiver on the standards, but today announced it could grant schools more flexibility on one of them - the requirement to increase the amount of whole grains in pasta products.


Currently, half of all products served must be "whole grain-rich." USDA defines whole grain-rich as products made of at least 50 percent whole grain. By the start of the next school year, the law says schools must use only products that are whole grain-rich.


But this year, USDA heard feedback from some schools suggesting that certain whole grain-rich pastas were falling apart. "Some of the available products, such as lasagna and elbow noodles, degraded easily during preparation and service and were difficult to use in larger-scale cooking operations," a press release from the department says.


So the USDA is offering a two year extension for schools that can "demonstrate significant challenges in serving whole-grain rich pastas" to continue serving "traditional enriched pasta products" for up to two more years to as the food industry develops better whole-grain pasta products for schools.


Despite the challenges, 90 percent of schools are meeting the nutrition standards established in 2012, USDA says.


The Alliance For A Healthier Generation, a group focused on ending childhood obesity, points to several success stories at schools around the country — like the eight new veggie-based soups on offer at Dover High School in Delaware.


"As we soon close out the school year, we should be celebrating — not rolling back — the great progress that schools have made toward implementing the USDA's school nutrition standards" Howell Wechsler of the Alliance says in a statement.



Weak results at retailers drag US stocks lower


Stocks are moving lower after several major retailers reported dismal results.


Staples dropped 12 percent after the office supply chain said its earnings fell sharply in the latest quarter. The company closed down more store locations as sales shift online.


Dick's Sporting Goods plunged 17 percent after its earnings and revenue fell short of what investors were expecting. The company also cut its full-year profit forecast.


The Dow Jones industrial average fell 35 points, or 0.2 percent, to 16,476 in midday trading Tuesday.


The Standard & Poor's 500 index lost two points, or 0.1 percent, to 1,882. The Nasdaq composite lost a point to 4,124.


Bond prices rose. The yield on the 10-year Treasury note edged down to 2.53 percent.



Excerpts of editorials from Illinois newspapers


May 19, 2014


The (Champaign) News-Gazette


No big deal


The legal fight surrounding Illinois' new public pension law is just getting off the ground.


A Sangamon County judge last week issued a stay in the enforcement of the state law mandating major changes in public pensions, but those looking for deeper meaning in the judge's ruling are wasting their time.


The stay of enforcement is not a ruling on the merits of arguments either in opposition to or in support of the law. Further, this case ultimately will be resolved by the seven-member Illinois Supreme Court, preferably sooner rather than later.


Nonetheless, Illinois AFL-CIO President Michael Carrigan can be forgiven for trying to spin the judge's ruling in favor of the retired and current public employees who are challenging the constitutionality of the new pension law. Carrigan called the stay "an important first step in our efforts to overturn this unfair, unconstitutional law."


At the same time, supporters of the pension law professed not to be concerned about the judge's decision. State Rep. Elaine Nekritz said she "would have been shocked had there not been a stay."


Nekritz is closer to being correct than Carrigan.


The pension reform law, which was passed in fall 2013, was designed to reduce the $100 billion shortfall in the state public pension systems. It mandates a variety of changes that include a higher retirement age, lower employee contributions and reduced benefits.


Five separate lawsuits have been consolidated into a single case that is focused on a provision in the Illinois Constitution that prohibits any diminution in pension benefits. Defenders of the law argued that it passes legal muster because it makes changes only in benefits not yet earned and leaves unchanged pension benefits already earned. But opponents maintain that once a public employee enrolls in a state pension program any change lowering benefits is unconstitutional, no matter whether the benefits have been earned or remain to be earned.


It's a complicated legal issue, and whatever decision the Illinois Supreme Court makes will have dramatic consequences. In that context, the stay is inconsequential, a housekeeping detail that precedes bigger battles to come.


---


May 18, 2014


Decatur Herald & Review


Democrats continue to break promises


Democrats in the House this week approved a budget that requires the extension of the "temporary" income tax.


In a long session on Thursday, House members pieced together a $38 billion spending plan that under current law does not have enough revenue to pay for it. That's because the current law requires the income tax rates to fall back to 2010 levels on Jan. 1. A vote on extending the tax rates could occur as early as next week.


It's amusing, and sad, to see Democrats twist themselves in knots trying to explain all this.


Take Rep. Sue Scherer, D-Decatur, for example. Scherer, who depends on House Speaker Michael Madigan for a good deal of her campaign funds, wasn't in the General Assembly when the temporary tax hike was approved. But she did co-sponosr legislation to roll back the income tax to pre-2011 levels. On Thursday, she voted in favor of the spending plans.


Scherer said her votes weren't in favor of a tax increase but a way to ensure that Gov. Pat Quinn spends money on things she believes are important to the district.


Republicans, who are in the minority, could do little but complain.


The entire budget process has been a sham, with the Quinn administration painting doom and gloom scenarios about what will happen if the income tax rate isn't extended. Those scenarios are so outrageous that no reasonable people outside of the Democratic Party would believe them.


A vote on extending the income tax rate could come as soon as next week. The votes are apparently secured in the Senate, but it's a closer call in the House.


This budget continues the process that has put Illinois into a financial quagmire - it spends money the state doesn't have. Democrats promised when the temporary tax hikes were implemented that they would indeed be temporary.


There is still time to correct this huge mistake and adopt a reasonable budget. But it won't happen until Democrats understand the costs they are imposing on taxpayers and the harm they are doing to the state.


---


May 17, 2014


Belleville News-Democrat


Too many legislative cooks spoil the bill


We should have known. Illinois lawmakers received the perfect recipe to simplify the lives of home bakers, but now are changing it and complicating things.


Rep. Charlie Meier, R-Okawville, had the right idea. He wanted to let small-time bakers like 12-year-old Chloe Stirling, of Troy, sell their goods without government interference.


But no. Now Sen. Donne Trotter, D-Chicago, is adding all sorts of cumbersome rules that do nothing to help the public but make work - and money - for local health departments. Figures. Most of them objected to the bill in its original form.


With the changes, bakers would have to label their goods with all the ingredients and allergens and warn people in writing that the item was baked in a home kitchen without a health department inspection. The bakers would have to take a class and pay a yet-to-be-determined fee.


It's an improvement over the current requirement of a commercial kitchen, but it's still ludicrous. Home bakers can sell their wares at farmers' markets in Illinois without government getting involved. Why not let bakers do so out of their home without worrying about running afoul of the law?


Trotter said, "I don't foresee that we're going to be raiding lemonade stands or cupcake sales." He obviously doesn't understand how government works. That's exactly what happened to Chloe.


Instead of complicating what should have been a simple bill, lawmakers should put their energy into developing a budget that doesn't rely on the soon-to-expire temporary tax. They are pretending that the income tax hike will become permanent - even though they don't have the votes to make it permanent.


No wonder the state is a financial disaster. No wonder people can't wait to move out of Illinois.


---


May 14, 2014


(Arlington Heights) Daily Herald


Failing grade for school funding fix


This could be an expensive session of the Illinois General Assembly for suburban taxpayers.


At the same time Gov. Pat Quinn is pushing to make permanent an income tax increase that was to expire at year's end, legislation that would significantly alter the state's school funding formula - and no doubt result in property tax increases in the suburbs - is being debated.


We agree that the school funding formula is complicated, potentially unfair and needs to be studied. But we don't agree that it should be changed on the backs of suburban taxpayers.


"We're having rich and thoughtful discussions about the haves and have-nots and how money's being distributed," state Superintendent of Education Christopher Koch told The Associated Press in a story published in the Daily Herald Monday. "We need this conversation."


Yes, it's helpful to have a meaningful conversation to make sure needs of the entire state are met. But that AP story highlights the problem for many of the school districts in the Daily Herald circulation area. Under the proposal put forth by state Sen. Andy Manar, a Democrat from downstate Bunker Hill, downstate Pana's school district would receive a 30 percent increase in state funding or about $1.7 million. In contrast, Barrington Unit District 220 would lose $5.3 million a year - about 80 percent of what it currently receives. That's too much of a hit and would almost assuredly need to be replaced by higher property taxes from District 220 taxpayers.


We urge suburban representatives to fight the current legislation but to continue working on finding a more equitable solution to the school aid formula. It was last changed in 1997. While general state aid for education is based on a formula that factors in poverty levels, grants for special education, transportation and vocational training do not factor in poverty. The money for those programs has increased greater than general state aid has as the state deals with its financial woes.


One offset we liked hearing from Koch was a possibility of removing a requirement that forces school districts to pay for state mandates the state doesn't fund. More of that kind of thinking is what's needed if a compromise is to be found.



Adams Co. trades dirt for company's support


The Adams County Board of Supervisors has voted to trade $50,000 worth of dirt for $500,000 in grant funds for a local industry.


Natchez Inc. Executive Director Chandler Russ brought the request to the board Monday, saying the von Drehle corporation had completed an engineering study at its property and determined it needed an additional access road.


To fund the road, Natchez Inc. and von Drehle approached the Mississippi Development Authority, and were able to secure a $500,000 grant for the construction of the new road. The grant would require a 10 percent match from the county.


Russ tells The Natchez Democrat (http://bit.ly/1oaclNq) $50,000 worth of dirt from a hill across the road from the von Drehle plant will provide the 10 percent match.



House approves $12 billion-plus water bill

The Associated Press



The House passed the closest thing so far this year to an infrastructure bill — a $12 billion-plus bipartisan measure authorizing 34 water projects, ranging from flood protection in California and North Dakota to deepening the Port of Savannah and widening a Texas-Louisiana waterway that services the oil industry.


The Water Resources Reform and Development Act passed Tuesday on a 412-4 vote. Lawmakers shook off criticism from conservative and watchdog groups like Heritage Action and Taxpayers for Common Sense that argued the bill should have done more to rein in wasteful government spending.


The Senate could vote on the bill before the end of the week, sending it to President Barack Obama for his signature. The legislation is a bipartisan compromise of companion bills passed separately by the House and Senate last year. After months of negotiations, a final deal on it was reached last week.


Supporters, including business interests like the U.S. Chamber of Commerce hailed it an economy-boosting measure that could deliver thousands of new jobs.


"It's going to keep America competitive," said Rep. Bill Shuster, chairman of the House Transportation Committee.


Shuster, R-Pa., and other lawmakers also argued the bill was more fiscally responsible than past water projects bills. On the House floor, he noted the bill puts an end to $18 billion in dormant water projects passed before 2007.


That was not enough for some critics. A Taxpayers for Common Sense analysis released this week called the bill "a missed opportunity to reform management of our nation's infrastructure in a fiscally responsible manner."


With an estimated cost of $12.3 billion, the measure is a slimmer version of past water project bills. The last one in 2010, for example, had a price tag of $23.3 billion.


The new bill addresses pent-up demands by lawmakers, including addressing flooding concerns in places like Fargo, North Dakota and the Natomas Basin in the Sacramento, California area.


The bill authorizes spending up to $800 million for a flood diversion project that would protect the Red River Valley region of North Dakota and Minnesota, which includes Fargo. The region has suffered major flooding four of the past five years.


In California, the bill allows as much as $760 million in federal spending for a project that would strengthen levees of the Natomas Basin in the Sacramento area, which could protect more than 100,000 residents.


There are also big investments in projects that improve infrastructure for commerce.


The bill sanctions more than $748 million in federal funds for dredging and widening of the Sabine-Neches Waterway, which is billed as "America's Energy Gateway" because the roughly 80-mile waterway services oil and natural gas refineries in Texas and Louisiana. It also includes approval of up to $492 million for expanding and deepening the Port of Savannah, one of the country's fastest growing ports. Actual funding of all the projects will require separate bills.


Congress is expected to consider another key infrastructure bill before the end of the year. A Senate panel last week approved a bill to keep federal highway programs going for the next six years, but it remains uncertain whether Congress will complete its work in time to stop a disruption in transportation aid to states this summer.


Besides authorizing specific water projects, Tuesday's bill makes changes to how future projects are to seek funding. It sets specific time and cost limits for studies on potential projects, eliminates duplicative Army Corps of Engineers reviews and speeds up environmental review process for projects.


The bill also increases spending from the Harbor Maintenance Trust Fund to pay for improvements to ports and creates a five-year pilot program to provide loans and loan guarantees for various water projects.