Wal-Mart Inquiry Reflects Alarm on Corruption

Wal-Mart on Thursday reported that its investigation into violations of a federal antibribery law had extended beyond Mexico to China, India and Brazil, some of the retailer’s most important international markets.

The disclosure, made in a regulatory filing, suggests Wal-Mart has uncovered evidence into potential violations of the Foreign Corrupt Practices Act, as the fallout continues from a bribery scheme involving the opening of stores in Mexico that was the subject of a New York Times investigation in April.

The announcement underscores the degree to which Wal-Mart recognizes that corruption may have infected its international operations, and reflects a growing alarm among the company’s internal investigators. People with knowledge of the matter described how a relatively routine compliance audit rapidly transformed into a full-blown investigation late last year — involving hundreds of lawyers and three former federal prosecutors — when the company learned that The Times was examining problems with its operations in Mexico.

A person with direct knowledge of the company’s internal investigation cautioned that Thursday’s disclosure did not mean Wal-Mart had concluded it had paid bribes in China, India and Brazil. But it did indicate that the company had found enough evidence to justify concern about its business practices in the three countries — concerns that go beyond initial inquiries and that are serious enough that shareholders needed to be told.

A Wal-Mart spokesman declined to elaborate on the filing.

The Justice Department and the Securities and Exchange Commission, with Wal-Mart’s cooperation, are also looking into the company’s compliance with the antibribery law.

The Times reported in April that seven years ago, Wal-Mart had found credible evidence that its Mexican subsidiary had paid bribes in its effort to build more stores, a violation of the corrupt practices act, and that an internal investigation had been suppressed by executives at the company’s Arkansas headquarters.

Wal-Mart has so far spent $35 million on a compliance program that began in the spring, and has more than 300 outside lawyers and accountants working on it, the company said. It has spent $99 million in nine months on the current investigation.

Consequences of the expanding investigation could include slower expansion overseas and the identification of even more problems. The company said in the filing on Thursday that new inquiries had begun in countries “including but not limited to” China, India and Brazil.

While the disclosure did not specify the nature of the possible bribery problems in the three countries, it “clearly will cause more scrutiny on every real estate project being considered, and one would think at the minimum it will slow down the process as more controls need to be passed through,” said Colin McGranahan, an analyst with Sanford C. Bernstein.

International growth is critical to Wal-Mart, the world’s largest retailer, and Brazil, India, China and Mexico together make up the largest portion of the company’s foreign locations.

Wal-Mart’s international division had been on a growth binge, though that has been slowing lately. In third-quarter results reported Thursday, the company said international sales rose 2.4 percent to $33.2 billion, making up about 29 percent of the company’s overall sales.

More than half of Wal-Mart’s 10,150 stores are international. Mexico has 2,230 stores. Brazil has 534, China, 384.

C. Douglas McMillon, chief executive of Walmart International, said in June that he did not expect the investigation to hinder international growth. “Only time will tell,” he said.

Wal-Mart’s expanding investigation began in spring 2011 as a relatively routine audit of how well its foreign subsidiaries were complying with its anticorruption policies. It is keeping the Justice Department and the S.E.C. apprised of the investigation.

The review was initiated by Jeffrey J. Gearhart, Wal-Mart’s general counsel, who had seen news reports about how Tyson Foods had been charged with relatively minor violations of the Foreign Corrupt Practices Act. He decided it made sense to test Wal-Mart’s internal defenses against corruption.

The audit began in Mexico, China and Brazil, the countries Wal-Mart executives considered the most likely source of problems. Wal-Mart hired the accounting firm KPMG and the law firm Greenberg Traurig to conduct the audit. The firms conducted interviews and spot checks of record systems to check whether Wal-Mart’s subsidiaries were carrying out required compliance procedures.

Charlie Savage, Vikas Bajaj and Andrew Downie contributed reporting.

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October home sales hit 3-year high; prices up 17% year over year

Consumer columnist David Lazarus talks with real estate reporter Alejandro Lazo, DataQuick analyst Andrew LePage and Bill McBride of the Calculated Risk blog about the strong October real estate numbers.

Southern California's real estate market bucked the typical fall slowdown last month, with buyers snapping up pricier homes and sales roaring up 18% over the prior month.

Sales hit a three-year high for an October, rising 25% from the same month last year. The median sale price for a Southland house last month was $315,000, equal to September and up 17% from October 2011, according to real estate research firm DataQuick.

A decline in the number of foreclosed homes has caused a shortage of inventory in entry-level neighborhoods, pushing up home prices. Demand from investors also remains strong, with these buyers snapping up a near-record level of homes last month.

"There is a growing appreciation of the fact that we've come to a sort of a point of inflection in the housing market," Stuart Gabriel, director of UCLA's Ziman Center for Real Estate, said. "The housing market, for a large number of factors, is perceived as having turned a corner."

The region's median hit bottom at $247,000 in April 2009 and has slowly crawled its way up since. The median is the point at which half the homes in the area sold for more and half for less.

Quiz: Test your knowledge of business news

The rebound stems from more people chasing fewer homes. Interest rates remain near record-low levels, luring buyers. Investors with cash have poured into the market looking for cheap properties to flip or rent. And foreclosure resales have sunk to a five-year low, tightening the supply of cheap homes.

An estimated 21,075 newly built and previously owned houses and condominiums sold throughout the region last month. Coastal markets saw the biggest increases in sales — though every county posted double-digit gains compared with October last year. Orange County saw the biggest surge, with sales up 41%. Ventura rose 35%, San Diego, 31%, Los Angeles, 25%, San Bernardino, 18% and Riverside 13%.

Absentee buyers — investors and some second-home buyers — snapped up a near-record 28% of homes throughout the Southland last month. These investors paid a median $245,000, a 23% increase from October last year.

A recent report by real estate website Zillow showed that many investors and others are paying market value for foreclosed homes in the region, erasing the discount between foreclosed homes and regular properties. Discounts were marginal on bank-owned homes in September, with the discount in the Inland Empire just 2% and in the Los Angeles area 4% in September, Zillow said.

Bruce Norris, president of Norris Group, an investment company in Riverside that buys foreclosed homes, said he expects prices to increase in coming years as the Obama administration has encouraged banks to curtail foreclosures. That will push up prices, he said.

"It is policy driven," Norris said. "Since the policy is going to continue … you are about to see a pretty substantial price increase within the next two years."

Indeed, the high level of affordability ushered in by the housing crash could erode quickly in California. This week the California Assn. of Realtors reported that homes in the state are getting less affordable as property values rise. The group estimated that 49% of home buyers in the third quarter could afford a median-priced house in California, a decline from 51% last quarter. The rise in prices is offsetting the benefit to home shoppers from low mortgage interest rates.

Christopher Thornberg, a principal at Beacon Economics and one of the first to call attention to the housing bubble, said home shoppers should expect expensive housing in the Golden State for the foreseeable future. The reason: Construction of new homes remains highly expensive for builders.

"Why would it stop?" he said. "The economy is growing. Short of a fiscally led second recession, there is no reason in the world that it's going to do anything but to continue."

The region's lowest-cost areas — often those the most starved for inventory these days — posted the weakest sales numbers last month, according to DataQuick. The number of homes that sold below $200,000 in the region dropped 11% from October last year. Sales in these markets have slowed because of the drop in foreclosures, while increased demand has pushed up prices.

Sales of previously foreclosed-upon homes made up just 16% of the resale market last month, a drop from 17% last month and 33% in October 2011. Foreclosure resales peaked at 57% in February 2009.

In the meantime, sales surged in several mid- and higher-cost neighborhoods throughout Southern California in October, DataQuick said. Sales of homes between $300,000 and $800,000 increased 42% year over year. Sales of homes costing more than $500,000 were up 55% and sales of homes more than $800,000 rose 52%.

Bill McBride, lead writer for the housing blog Calculated Risk, said that with the upswing in prices homeowners are encouraged to keep their homes off the market.

"Why is there no inventory? I ask every real estate agent that, just to hear what they tell me. And they say people don't have enough equity in their homes and so they aren't listing them," McBride said. "That is a solid argument. But I also think the people are sensing that prices are going up and there is no urgency to sell."

alejandro.lazo@latimes.com

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'Shirtless' FBI Agent Who Hunted Petraeus Helped Stop LA Bombing

The FBI agent responsible for the downfall of two of the military’s most respected generals helped stop a terrorist from bombing Los Angeles International Airport and shot a man who attacked him with a knife at the gates of a military base. And he kicked off an investigation that not only upended Washington, it has many wondering if the FBI exceeded its authority.

Meet Frederick W. Humphries II — finally. Humphries, identified by The New York Times, is the mystery Florida-based FBI agent central to the ongoing scandal that brought down CIA Director David Petraeus and threatens the career of the Afghanistan war commander. At nearly every key moment in the tawdry sex scandal, Humphries has been there, lurking in the shadows, sometimes without his shirt on. No wonder colleagues interviewed by the Times described him as “obsessive.” Even before anyone knew who he was, someone set up a parody Twitter account for him, @shirtlessFBIguy.

In 1999, Humphries used his French language skills to find and stop Ahmed Ressam from bombing LAX airport in what would come to be known as the Millennium Plot, according to a Seattle Times piece. Described as “wiry [and] high-energy,” the former Army officer unraveled the cover story of a member of the Millennium Plot by calling bull on the operative’s fake Quebecois accent. Eleven years later, Humphries would shoot and kill a “disturbed knife-wielding man” who attacked him at the gates of MacDill Air Force Base in Tampa.

Humphries knew Tampa socialite Jill Kelley, an unofficial “ambassador” between Tampa and MacDill, home of U.S. Central Command, run in 2010 and 2011 by Petraeus and Gen. John Allen, now the commander of the Afghanistan war. When Kelley started receiving harassing e-mails this summer, Kelley asked her FBI friend Humphries to look into it. Humphries agreed, but soon found himself taken off the case, according to the Times. That would prove to be a fateful move.

The FBI has broad authorities over cyber-stalking investigations. “When something of this nature comes to our attention,” spokesman Paul Bresson tells Danger Room, “we work in close coordination with prosecutors to evaluate the facts and circumstances with respect to jurisdiction and potential violations of federal law.”

Not everyone is buying that the FBI would normally take up the case of a socialite receiving unwanted, nasty e-mails. “This is highly irregular. Highly, highly irregular. With a case of e-mail harassment, we’d normally say: we’re kind of busy, contact your local police,” a former federal prosecutor tells Danger Room. “You know that old cliche ‘let’s not make a federal case out of it?’ Well, in this case, it rings true.”

In any case, the feds did make a federal case out of it — just without Humphries. But Humphries didn’t let the case go. He sent shirtless pictures of himself to Kelley, something a lawyer for a law-enforcement guild who spoke with Humphries described to the Times as a “joke” that the national media have misunderstood. Still, his friends characterized him as “passionate” and “kind of an obsessive type.” It showed.

Humphries did not take kindly to being removed from a case he kickstarted. Evidently, he knew that the FBI expanded the case from cyber-harassment to one determining whether Paula Broadwell, Petraeus’ mistress who harassed Kelley, received classified information from Petraeus. Humphries was convinced there was a Bureau cover-up to protect Obama, and in late October went to Rep. Dave Reichert, a Washington state Republican with whom Reichert had worked previously. Reichert — who would not respond to Danger Room’s queries — took Humphries to Rep. Eric Cantor, the GOP majority leader, on October 27.

Cantor and his staff met with Humphries shortly after Reichert made the introduction. But they did not know what his motivations were. Nor could they judge Humphries’ credibility. Worse, they had no idea the FBI had Petraeus under investigation in the first place. After conferencing, they decided the prudent thing to do was to take the information from the investigation to FBI Director Robert Mueller’s office. They did so on October 31, around the same time that FBI agents interviewed Petraeus and reportedly told him he was not under suspicion of leaking classified information.

A week later, on November 6 — election day — Mueller informed James Clapper, the director of national intelligence and Petraeus’ boss, of the investigation. The House Judiciary Committee has written to Mueller to determine, among other things, why Mueller waited a week, and why he informed neither the relevant congressional oversight committees or the White House. (Mueller on Wednesday briefed the leaders of the House and Senate intelligence committees.) But Clapper essentially sealed Petraeus’ fate, urging him to deliver the resignation from the CIA that ultimately came on Friday.

There are questions about whether the FBI has exceeded its bounds in the case Humphries launched. While the FBI has wide latitude to investigate potential leaks of classified intelligence — the focus of the ongoing inquiry into Broadwell that brought Petraeus down — it is far less clear what authority the FBI had to give the Pentagon flirtatious emails between Allen and Kelley that came to agents’ attention in the course of that inquiry.

The Pentagon, whose inspector general is now investigating Allen, says there is no evidence Allen gave Kelley classified material or otherwise compromised national security. Under the Uniformed Code of Military Justice, adultery is a crime. But a Defense official on Tuesday told reporters that Allen denies cheating on his wife, and the emails contain some “flirtatious” exchanges between the two. Yet while the so-called “Plain Sight Doctrine” holds that investigators can pursue evidence of a crime that they encounter in an unrelated investigation, flirtation is not evidence of adultery.

While many of the facts of Allen’s case have yet to be determined, some legal experts wonder if the FBI was required to ignore the emails between Allen and Kelley.

“Whether the supposed basis for the investigation was cyber-harassment, disclosure of classified information, or the vulnerability of the CIA chief to blackmailing, it’s difficult to see how a military commander’s flirtatious emails are relevant,” says Rachel Levinson-Waldman, a lawyer who studies information sharing between national-security agencies at New York University’s Brennan Center for Justice. In such a case, the FBI is usually required to “minimize” — that is, ignore or destroy — information on unrelated parties that it inadvertently collected. In practice, though, Levinson-Waldman cautions, FBI officials have strong incentives to hold on to such material, for fear of jeopardizing potential future investigations.

The FBI, argues the Electronic Frontier Foundation’s Kurt Opsahl, appears to have engaged in “a series of stretches,” to get from investigating Broadwell to turning over Allen’s communications with Kelley to the Defense Department. “I don’t see how that email [traffic] is necessary or how there’s any kind of probable cause to believe there’s any link to the crimes the FBI was investigating,” Opsahl says.

In a statement released by his military lawyer late Wednesday, Allen vowed “to fully cooperate with the Inspector General Investigators” while his nomination to be NATO commander is officially on hold. There’s a possibility that Allen will be vindicated. But if he’s not, he has overzealous FBI investigators to thank — including Humphries, who started it all.

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NBC names new “Today” show chiefs

(Reuters) – Comcast‘s NBC has appointed two executives to take charge of the “Today” show, a day after the television network announced that longtime producer Jim Bell would be leaving to take a larger role in the sports division.

Don Nash, a broadcast producer who has worked on NBC’s morning show for 23 years, will become the executive producer, reporting to Alexandra Wallace, who has been named executive in charge of the show.

The reshuffling is part of NBC efforts to revive the “Today” show, which has been in a back-and-forth ratings war with ABC’s “Good Morning America” ever since ABC snapped NBC’s 16-year unbeaten streak earlier in the year.

“Today” is one of NBC’s most profitable TV shows, generating $ 485 million in ad revenues in 2011, up 6.6 percent from 2010, according to Kantar Media, which provides data to advertisers. Rival “Good Morning America” took in $ 299 million last year.

NBC said on Tuesday that former executive producer Bell would be leaving the morning show to become a full-time executive producer of the Olympics. The network has a contract to broadcast the Olympics in the United States for the next four games in Russia, Brazil, South Korea and an unnamed host city in 2020.

Bell, who has headed the show since 2005, was blamed this year for the controversial firing of Ann Curry as anchor alongside Matt Lauer.

Reuters had previously reported in August that Bell was in line for a kind of uber-producing sports role like the one Dick Ebersol – NBC’s longtime Olympics executive producer and former sports chief who served as a mentor to Bell – played for the network.

(Reporting By Liana B. Baker; Editing by Tim Dobbyn)

TV News Headlines – Yahoo! News

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Alzheimer’s Tied to Mutation Harming Immune Response

Alzheimer’s researchers and drug companies have for years concentrated on one hallmark of Alzheimer’s disease: the production of toxic shards of a protein that accumulate in plaques on the brain.

But now, in a surprising coincidence, two groups of researchers working from entirely different starting points have converged on a mutated gene involved in another aspect of Alzheimer’s disease: the immune system’s role in protecting against the disease. The mutation is suspected of interfering with the brain’s ability to prevent the buildup of plaque.

The discovery, researchers say, provides clues to how and why the disease progresses. The gene, known as TREM2, is only the second found to increase Alzheimer’s risk substantially in older people.

“It points very specifically to a potential metabolic pathway that you could intervene in to change the course of Alzheimer’s disease,” said William Thies, chief medical and scientific officer of the Alzheimer’s Association.

Much work remains to be done before scientists understand precisely how the newly discovered gene mutation leads to Alzheimer’s, but already there are some indications from studies in mice. When the gene is not mutated, white blood cells in the brain spring into action, gobbling up and eliminating the plaque-forming toxic protein, beta amyloid. As a result, Alzheimer’s can be staved off or averted.

But when the gene is mutated, the brain’s white blood cells are hobbled, making them less effective in their attack on beta amyloid.

People with the mutated gene have a threefold to fivefold increase in the likelihood of developing Alzheimer’s disease in old age.

The intact gene, says John Hardy of University College London, “is a safety net.” And those with the mutation, he adds, “are living life without a safety net.” Dr. Hardy is lead author of one of the papers.

The discovery also suggests that a new type of drug could be developed to enhance the gene’s activity, perhaps allowing the brain’s white blood cells to do their work.

“The field is in desperate need of new therapeutic agents,” said Alison Goate, an Alzheimer’s researcher at Washington University in St. Louis who contributed data to Dr. Hardy’s study. “This will give us an alternative approach.”

The fact that two research groups converged on the same gene gives experts confidence in the findings. Both studies were published online Wednesday in The New England Journal of Medicine. “Together they make a good case that this really is an Alzheimer’s gene,” said Gerard Schellenberg, an Alzheimer’s researcher at the University of Pennsylvania who was not involved with the work.

The other gene found to raise the odds that a person will get Alzheimer’s, ApoE4, is much more common and confers about the same risk as the mutated version of TREM2. But it is still not clear why ApoE4, discovered in 1993, makes Alzheimer’s more likely.

Because the mutations in the newly discovered gene are rare, occurring in no more than 2 percent of Alzheimer’s patients, it makes no sense to start screening people for them, Dr. Thies said. Instead, the discovery provides new clues to the workings of Alzheimer’s disease.

To find the gene, a research group led by Dr. Kari Stefansson of deCODE Genetics of Iceland started with a simple question.

“We asked, ‘Can we find anything in the genome that separates those who are admitted to nursing homes before the age of 75 and those who are still living at home at 85?’ ” he said.

Scientists searched the genomes of 2,261 Icelanders and zeroed in on TREM2. Mutations in that gene were more common among people with Alzheimer’s, as well as those who did not have an Alzheimer’s diagnosis but who had memory problems and might be on their way to developing Alzheimer’s.

The researchers confirmed their results by looking for the gene in people with and without Alzheimer’s in populations studied at Emory University, as well as in Norway, the Netherlands and Germany.

The TREM2 connection surprised Dr. Stefansson. Although researchers have long noticed that the brain is inflamed in Alzheimer’s patients, he had dismissed inflammation as a major factor in the disease.

“I was of the opinion that the immune system would play a fairly small role, if any, in Alzheimer’s disease,” Dr. Stefansson said. “This discovery cured me of that bias.”

Meanwhile, Dr. Hardy and Rita Guerreiro at University College London, along with Andrew Singleton at the National Institute on Aging, were intrigued by a strange, rare disease. Only a few patients had been identified, but their symptoms were striking. They had crumbling bones and an unusual dementia, sclerosing leukoencephalopathy.

“It’s a weird disease,” Dr. Hardy said.

He saw one patient in her 30s whose brain disease manifested in sexually inappropriate behavior. Also, her bones kept breaking. The disease was caused by mutations that disabled both the copy of TREM2 that she had inherited from her mother and the one from her father.

Eventually the researchers searched for people who had a mutation in just one copy of TREM2. To their surprise, it turned out that these people were likely to have Alzheimer’s disease.

They then asked researchers around the world who had genetic data from people with and without Alzheimer’s to look for TREM2 mutations.

“Sure enough, they had good evidence,” Dr. Hardy said. The mutations occurred in one-half of 1 percent of the general population but in 1 to 2 percent of patients with Alzheimer’s disease.

“That is a big effect,” Dr. Hardy said.

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Obama Meets C.E.O.’s as Fiscal Reckoning Nears

Luke Sharrett for The New York Times

Ursula M. Burns, chief of Xerox, said the president discussed few specifics of a potential agreement but emphasized that “we cannot go over the fiscal cliff.”

WASHINGTON — President Obama extended an olive branch to business leaders Wednesday, seeking their support as he prepared to negotiate with Congressional Republicans over the fiscal impasse in Washington.

If Congress and the president cannot reach a deal to reduce the deficit by January, more than $600 billion in tax increases and spending cuts will go into effect immediately — a prospect many chief executives and others warn could tip the economy back into recession.

Even so, Mr. Obama has some fence-mending to do before he can count on any serious backing from the business community.

“The president brought up that he hadn’t always had the best relationship with business, and he didn’t think he deserved that, but he understood that’s where things were and wanted it to be better,” said David M. Cote, chief executive of Honeywell. He was one of a dozen corporate leaders invited to meet Mr. Obama at the White House for 90 minutes Wednesday afternoon, after the president’s first news conference since the election.

While Mr. Obama did not present a detailed plan at Wednesday’s meeting or reveal what he would propose in terms of new corporate taxes, he strongly reiterated that he would not allow tax cuts for the middle class to expire. The president, according to attendees and aides, said he was committed to a balanced approach of reductions in entitlements and other government spending and increases in revenue.

With time running out, many observers expect the president and Republican leaders in Congress to come up with a short-term compromise that prevents the full slate of tax increases and spending cuts from hitting in January. That would give both sides more time to come up with a far-reaching deal on entitlement spending, even as they work on a broad tax overhaul later next year.

One corporate official briefed on the meeting said that the chief executives came away with a sense that Mr. Obama was poised to present a more formal proposal in the next few days, but that he did not press them for support on particular policies. “It was more of a back and forth,” he said.

The chief executives from some of the country’s biggest and best-known companies, including Procter & Gamble and I.B.M., were not unified on everything, according to one who was interviewed after the meeting.

Many of the executives who described the meeting would speak only on condition of anonymity.

The outreach to business comes as both the White House and corporate America maneuver ahead of the year-end deadline, as well as the beginning of Mr. Obama’s second term. Many executives were put off by what they saw as antibusiness rhetoric coming from the White House in his first term, and many also oppose tax increases on the rich that Mr. Obama favors but would hit them personally.

Both sides have plenty to gain from a better relationship. Business leaders want to buffer their image after the recession and the financial crisis, while Mr. Obama would gain valuable leverage if he could persuade even a few chief executives to come out in favor of higher taxes on people with incomes over $250,000.

Lloyd C. Blankfein, chief executive of Goldman Sachs, publicly endorsed higher tax rates in an opinion article published in The Wall Street Journal on Wednesday.

“I believe that tax increases, especially for the wealthiest, are appropriate, but only if they are joined by serious cuts in discretionary spending and entitlements,” he wrote.

While Mr. Blankfein and other Wall Street leaders have been speaking out about the dangers of the fiscal impasse, only one executive from the financial services industry, Kenneth I. Chenault of American Express, was at Wednesday’s meeting.

Afterward, the corporate leaders seemed pleased with the tone of the meeting but cautious about the prospect of finding common ground with the White House on the budget choices facing Congress and the president.

“I’d say everybody came away feeling pretty good about the whole discussion,” Mr. Cote said. “Now, all of us are C.E.O.’s, so we’ve learned not to confuse words with results. And that’s what we still need to see.”

Ursula M. Burns, chief executive of Xerox, who was also at the meeting, said afterward that it was clear that “we’re going to have to work through some sticking points.” But while “we didn’t get into too many specifics,” she said, it was also made clear that “we cannot go over the fiscal cliff.”

Ms. Burns’s comments about the potentially dire consequences of the fiscal impasse echoed those of other chief executives, including many in the Business Roundtable, which began an ad campaign Tuesday calling on lawmakers to resolve the issue quickly. The Campaign to Fix the Debt, a new group with a $40 million budget and the support of many Fortune 500 chiefs, began its own ad campaign on Monday.

Michael T. Duke, chief executive of Wal-Mart Stores, warned in a statement after the meeting that “before the end of the year, Washington needs to find an agreement to avoid the fiscal cliff.” He said Walmart customers “are working hard to adapt to the ‘new normal,’ but their confidence is still very fragile. They are shopping for Christmas now, and they don’t need uncertainty over a tax increase.”

 

Helene Cooper reported from Washington and Nelson D. Schwartz from New York. Jackie Calmes contributed reporting from Washington.

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Kupchak: If Phil Jackson hadn't hesitated he might be Lakers coach

History could have been different if Phil Jackson had said he was ready to coach the Lakers while meeting informally with two team executives on Saturday morning.

He might be the Lakers' coach right now, Lakers General Manager Mitch Kupchak said Tuesday.

"We would have gone back immediately and gone back and holed up with Dr. [Jerry] Buss and decided what we were going to do that day," Kupchak said.

Instead, Jackson asked Kupchak and team executive Jim Buss for two more days to think about a return after an 18-month layoff. The Lakers waited about 30 hours, didn't hear from him, and decided to hire Mike D'Antoni on Sunday night.

"There was no agreement to wait for [Jackson's] response on Monday," Kupchak said. "He told us that's when he would get back to us. I could see where he might interpret that as 'You guys would wait for me.' But I thought when I said I had to go on and interview other candidates that it was clear I had a job to do."

The Lakers interviewed D'Antoni by phone Saturday afternoon not long after meeting with Jackson at his Playa del Rey home. D'Antoni could not fly to Los Angeles last weekend because of recent knee-replacement surgery.

The Lakers hired D'Antoni mainly because of his high-flying offense. "He plays the way we see our team playing and our personnel executing," Kupchak said.

Kupchak himself wasn't sold on meshing Jackson's share-the-ball triangle offense with the Lakers' present-day roster. "I know the triangle," he said. "Obviously I wasn't convinced."

The Lakers decided to hire D'Antoni at 6 p.m. Sunday, half an hour before they tipped off against Sacramento at Staples Center.

Negotiations took some time, and then an unexpected electronic gaffe delayed the process once the sides agreed to a three-year, $12-million contact with a team option for a fourth year.

D'Antoni's fax machine was not working properly and could not transmit his signed contract back to the Lakers, according to a team spokesman. Finally, by 11:30 p.m. Sunday, the Lakers officially had a new coach, hiring D'Antoni despite the "We Want Phil!" chants by Lakers fans at Staples Center.

Kupchak acknowledged the "groundswell of support" for Jackson, who had the popular vote from the fans and received positive reviews from Kobe Bryant, Steve Nash and Dwight Howard, though Bryant and Nash also endorsed D'Antoni.

"There was a lot of pressure to seriously consider bringing Phil back," Kupchak said. "We sorted through the PR backlash and decided that we ultimately could withstand it."

They still had to withstand one other thing. They had to call Jackson on Sunday near midnight. He was sleeping.

"In those kind of situations, there's not a lot of small talk," Kupchak said. "He was very complimentary of Mike under the circumstances. I just told him . . . that we just felt the present makeup of the team and the kind of basketball we wanted to play going forward, we just felt that Mike D'Antoni was the choice.

"I didn't look forward to calling somebody at midnight to tell him that he's not going to get a job that he might or might not accept," Kupchak said. "But the only other thing I could do was wait until Monday morning and that would have been worse."

Jackson told The Times on Monday that the midnight phone call seemed "slimy."

"I wish it would have been a little bit cleaner," he said. "It would have been much more circumspect and respectful of everybody that's involved. It seemed slimy to be awoken with this kind of news. It's just weird."

Kupchak confirmed what was already stated by Jackson to The Times — salary wasn't discussed in their Saturday morning meeting. Neither was the concept of Jackson missing games on the road.

Jackson told Jim Buss and Kupchak he wanted the same communication between them on personnel decisions that he held in his second tenure with the team from 2005-11.

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Deodorizing Underwear: Why Does Japan Get All the Cool Stuff?

Soon, silent but deadly will just be … silent. At least, that’s the promise a Japanese company is making about its line of deodorizing underwear, which has reportedly become a hit among Japanese businessmen.

Seiren, the company behind the Deoest underwear line, says it has been working on the garments for a few years. The deodorizing power comes from odor-absorbing ceramic particles that are incorporated into the fibers of the underwear. Though Sieren says the garments were originally developed for those suffering from irritable bowel syndrome, Deoest has quickly gained popularity among Japanese businessmen.

Following the success of the underwear, the company added an array of other odor-eliminating undergarments for other oft-smelly body parts, including socks and undershirts.

via PhysOrg

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Man who accused Elmo puppeteer of teen sex recants

NEW YORK (AP) — A man who accused Elmo puppeteer Kevin Clash of having sex with him when he was a teenage boy has recanted his story.

In a quick turnabout, the man on Tuesday described his sexual relationship with Clash as adult and consensual.

Clash responded with a statement of his own, saying he is “relieved that this painful allegation has been put to rest.” He had no further comment.

The man, who has not identified himself, released his statement through the Harrisburg, Pa., law firm Andreozzi & Associates.

Sesame Workshop, which produces “Sesame Street” in New York, soon followed by saying, “We are happy that Kevin can move on from this unfortunate episode.”

The whirlwind episode began Monday morning, when Sesame Workshop startled the world by announcing that Clash had taken a leave of absence from “Sesame Street” in the wake of allegations that he had had a relationship with a 16-year-old.

Clash, a 52-year-old divorced father of a grown daughter, swiftly denied the charges of his accuser, who is in his early 20s. In that statement Clash acknowledged that he is gay but said the relationship had been between two consenting adults.

Though it remained unclear where the relationship took place, sex with a person under 17 is a felony in New York if the perpetrator is at least 21.

Sesame Workshop, which said it was first contacted by the accuser in June, had launched an investigation that included meeting with the accuser twice and meeting with Clash. Its investigation found the charge of underage conduct to be unsubstantiated.

Clash said on Monday he would take a break from Sesame Workshop “to deal with this false and defamatory allegation.”

Neither Clash nor Sesame Workshop indicated on Tuesday when he might return to the show, on which he has performed as Elmo since 1984.

Elmo had previously been a marginal character, but Clash, supplying the fuzzy red puppet with a high-pitched voice and a carefree, child-like personality, launched the character into major stardom. Elmo soon rivaled Big Bird as the face of “Sesame Street.”

Though usually behind the scenes, Clash meanwhile achieved his own measure of fame. In 2006, he published an autobiography, “My Life as a Furry Red Monster,” and he was the subject of the 2011 documentary “Being Elmo: A Puppeteer’s Journey.”

He has won 23 daytime Emmy awards and one prime-time Emmy.

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Online:

http://www.sesamestreet.org

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Kidney Donors Given Mandatory Safeguards

ST. LOUIS — Addressing long-held concerns about whether organ donors have adequate protections, the country’s transplant regulators acted late Monday to require that hospitals thoroughly inform living kidney donors of the risks they face, fully evaluate their medical and psychological suitability, and then track their health for two years after donation.

Enactment of the policies by the United Network for Organ Sharing, which manages the transplant system under a federal contract, followed six years of halting development and debate.

Meeting at a St. Louis hotel, the group’s board voted to establish uniform minimum standards for a field long regarded as a medical and ethical Wild West. The organ network, whose initial purpose was to oversee donation from people who had just died, has struggled at times to keep pace with rapid developments in donations from the living.

“There is no question that this is a major development in living donor protection,” said Dr. Christie P. Thomas, a nephrologist at the University of Iowa and the chairman of the network’s living donor committee.

Yet some donor advocates complained that the measures did not go far enough, and argued that the organ network, in its mission to encourage transplants, has a conflict of interest when it comes to safeguarding donors.

Three years ago, the network issued some of the same policies as voluntary guidelines, only to have the Department of Health and Human Services insist they be made mandatory.

Although long-term data on the subject is scarce, few living kidney donors are thought to suffer lasting physical or psychological effects. Kidney donations, known as nephrectomies, are typically done laparoscopically these days through a series of small incisions. The typical patient may spend only a few nights in a hospital and feel largely recovered after several months.

Kidneys are by far the most transplanted organs, and there have been nearly as many living donors as deceased ones over the last decade. What data is available suggests that those with one kidney typically live as long as those with two, and that the risk of a donor dying during the procedure is roughly 3 in 10,000.

But kidney transplants, like all surgery, can sometimes end in catastrophe.

In May at Montefiore Medical Center in the Bronx, a 41-year-old mother of three died when her aorta was accidentally cut during surgery to donate a kidney to her brother. In other recent isolated cases, patients have received donor kidneys infected with undetected H.I.V. or hepatitis C.

Less clear are any longer-term effects on donors. Research conducted by the United Network for Organ Sharing shows that of roughly 70,000 people who donated kidneys between late 1999 and early 2011, 27 died within two years of medical causes that may — or may not — have been related to donation. For a small number of donors, their remaining kidney failed, and they required dialysis or a transplant.

The number of living donors — 5,770 in 2011 — has dropped 10 percent over the last two years, possibly because the struggling economy has made it difficult for prospective donors to take time off from work to recuperate. With the national kidney waiting list now stretching past 94,000 people, and thousands on the list dying each year, transplant officials have said they must improve confidence in the system so more people will donate.

The average age of donors has been rising, posing additional medical risks. And new ethical questions have been raised by the emergence of paired kidney exchanges and transplant chains started by good Samaritans who give an organ to a stranger.

Brad Kornfeld, who donated a kidney to his father in 2004, told the board that it had been impossible to find good information about what to expect, leaving him to search for answers on unreliable Internet chat rooms. He said he had almost backed out.

“If information is power,” said Mr. Kornfeld, a Coloradan who serves on the living donor committee, “the lack of information is crippling.”

Under the policies approved this week, the organ network will require hospitals to collect medical data, including laboratory test results, on most living donors to study lasting effects. Results must be reported at six months, one year and two years.

Similar regulations have been in place since 2000, but they did not require blood and urine testing, and hospitals were allowed to report donors who could not be found as simply lost.

That happened often. In recent years, hospitals have submitted basic clinical information — like whether donors were alive or dead — for only 65 percent of donors and lab data for fewer than 40 percent, according to the organ network. Although the network holds the authority, no hospital has ever been seriously sanctioned for noncompliance.

“It’s time we put some teeth into our policy,” said Jill McMaster, a board member from Tennessee.

By 2015, transplant programs will have to report thorough clinical information on at least 80 percent of donors and lab results on at least 70 percent. The requirements phase in at lower levels for the next two years.

Dr. Stuart M. Flechner of the Cleveland Clinic, the chairman of a coalition of medical societies that made recommendations to the organ network, said 9 of 10 hospitals would currently not meet the new requirement.

Donna Luebke, a kidney donor from Ohio who once served on the organ network’s board, said the new standards would matter only if enforcement were more rigorous. She noted that the organization was dominated by transplant doctors: “UNOS is nothing but the foxes watching the henhouse,” she said.

Another of the new regulations prescribes in detail the medical and psychological screenings that hospitals must conduct for potential donors. It requires automatic exclusion if the potential donor has diabetes, uncontrolled hypertension or H.I.V., among other conditions.

The new policies also require that hospitals appoint an independent advocate to counsel and represent donors, and that donors receive detailed information in advance about medical, psychological and financial risks.

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