DealBook: Former Jefferies Trader Is Charged With Fraud

Federal prosecutors charged a former senior trader at the Jefferies Group on Monday with defrauding his clients — and the government — while selling them mortgage-backed securities after the financial crisis.

Jesse C. Litvak, the former Jefferies trader, is accused of generating more than $2 million in revenue for Jefferies by overcharging his customers through deceitful conduct. Those who are said to have been his victims include some of the world’s largest investment firms, including Soros Fund Management, Magnetar Capital, BlackRock and Wellington Management.

The government was also a victim in this case, prosecutors said, because Mr. Litvak’s clients were managing money that was part of the Treasury Asset Relief Program, or TARP, the $700 billion bailout fund. As part of a public-private investment program, the Treasury picked nine private firms to invest in toxic mortgage-backed securities and help remove them from the clogged balance sheets of the large banks.

While the alleged violations — cheating brokerage clients by misrepresenting the prices of securities — might typically prompt the loss of a job or civil lawsuits, such conduct rarely, if ever, rises to the level of a federal criminal prosecution.

The case demonstrates the aggressive prosecutorial stance of the special inspector general for TARP, or Sigtarp, which led the investigation. The office, now led by Christy Romero, has been responsible for criminal cases filed against 121 individuals.

“Illegally profiting from a federal program designed to assist our nation in recovering from one of our worst economic crises is reprehensible,” said David B. Fein, the United States attorney in Connecticut, whose office brought the charges. The Securities and Exchange Commission filed a parallel civil action in the case.

Federal agents arrested Mr. Litvak, 38, early Monday morning at his apartment on the Upper East Side of Manhattan. He made an appearance in Federal District Court in Bridgeport, Conn., and was released on $1 million bail. Mr. Litvak, who worked at RBS Greenwich Capital earlier in his career, joined Jefferies in 2008 and was fired in December 2011.

“Jesse Litvak did not cheat anyone out of a dime,” said Patrick J. Smith, Mr. Litvak’s lawyer at DLA Piper, in a statement. “In fact, most of these trades turned out to be hugely profitable. Jesse looks forward to the trial in this case so that his name can be cleared and he can get on with his career.”

While the market for mortgage-backed securities is complex and opaque, the charges against Mr. Litvak are rather simple. Prosecutors said that he deceived his customers about the prices of the securities that he sold to them. The indictment said that Mr. Litvak deployed the scheme in part to increase the size of his year-end bonus.

In some cases, they said, Mr. Litvak would lie about the price at which his firm had bought a security so he could resell it to another customer at a higher price and earn more money for the firm. In other instances, the government said, he created a fake seller to give the impression that he was arranging a trade between two customers, when in fact he was selling the security out of his firm’s inventory at a high price.

“The kind of false claims made by Litvak were unfit for a used-car lot, let alone a marketplace for mortgage-backed securities,” said George S. Canellos, the S.E.C.’s deputy director of enforcement.

Mr. Smith, the lawyer for Mr. Litvak, said that the trades were transactions between sophisticated market participants and that the profits that Jefferies earned on each trade were well within industry norms for the mortgage-backed securities market.

Mr. Litvak wants Jefferies to pay his legal fees related to the government’s investigation, and he has filed papers in the Delaware Court of Chancery demanding compensation from the bank. Jefferies has refused to reimburse him, arguing that it fired Mr. Litvak for cause. Richard Khaleel, a spokesman for Jefferies, declined to comment.

The case first showed up on the government’s radar after one of Mr. Litvak’s customers, AllianceBernstein, complained to Jefferies that the bank had overcharged it for mortgage-backed securities, according to people briefed on the case. According to records from the Financial Industry Regulatory Authority, or Finra, Jefferies settled the case with AllianceBernstein for $2.2 million.

Court papers depict Mr. Litvak as an exuberant salesman, frequently communicating with instant messages and peppering his communications with slang. When Mr. Litvak reported to a client, Wellington Management, about a sham purchase, he wrote “winner winner chicken dinner.” Another time, the complaint said, Mr. Litvak gave a customer a false report on the price of a security that he sold to a hedge fund, York Capital Management. “We are doneski gorgeous!” he wrote.

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India Ink: One Delhi Gang Rape Suspect Is Ruled a Minor

NEW DELHI

The Indian Juvenile Justice Board ruled Monday that one suspect in the recent fatal gang rape of a young woman on a moving bus is officially a juvenile, which could result in a lenient sentence if he is found guilty of the crime.

The teenager, who school records show is 17 years old, could receive a maximum sentence of three years in a detention facility if found guilty. Five other men accused of the premeditated rape and killing of a 23-year old physiotherapy student on Dec. 16 could face life imprisonment or the death penalty if found guilty.

The December gang rape and the victim’s subsequent death of injuries sustained during the rape prompted widespread protests in India over the lack of safety and justice for women, and calls for the rapists to be executed.

Some criminal and legal experts expected the juvenile to be forced to undergo a bone ossification test, which is sometimes used to determine age in India where birth records are not always accurate. But the juvenile board’s ruling Monday makes that unlikely.

Separately, the judge in a fast-track court set up to try the five men accused in the Delhi gang rape on Monday rejected a plea by one suspect, Vinay Sharma, that he take a bone ossification test in order to prove his age, to prove he is a juvenile. Mr. Sharma’s mother told India Ink earlier this month that he was born in March 1994, which would make him 18, or legally an adult.

Lawyers for the five suspects on Monday began their arguments on the framing of charges against the men. They are jointly facing 14 charges, including robbery, murder, kidnapping and gang rape.

V.K. Anand, the lawyer for two of five suspects, brothers Ram and Mukesh Singh, argued on Monday that a majority of the charges against his clients should be dropped. The fast-track court, in the Saket District Court Complex, meets again Tuesday at noon.

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DealBook: Compuware Rejects Elliott's $2.3 Billion Bid

11:46 a.m. | Updated

Compuware said on Friday that its board had rejected a $2.3 billion takeover bid by Elliott Management, arguing that the hedge fund’s offer was too low.

Instead, the business software maker said that it was focused on its own corporate turnaround blueprint, including a three-year plan to cut costs and an effort to spin off its Covisint business communication products arm. It also announced plans to pay a 50-cent annual dividend, beginning next quarter.

Compuware said that Elliott’s offer of $11 a share, made last month, would not deliver enough value to shareholders, compared to the improvements that its self-help plan would yield.

“We believe that selling the company at $11.00 per share does not take into account our progress returning the business to profitable growth and our future prospects,” Bob Paul, the company’s chief executive, said in a statement.

The decision by Compuware sets up a potential clash with Elliott, which has managed to score some big wins in its battles with technology companies. It bid for Novell, leading the software maker to sell itself to Attachmate for $2.2 billion.

People close to Elliott have argued that the hedge fund was fully prepared to pay the $2.3 billion it had offered for Compuware. But the hedge fund also believed that private equity firms would also express interest.

Though shares in Compuware began rising after Elliott disclosed an 8 percent stake in the company in November, they have remained largely below the $11-a-share offer, implying investor skepticism about a deal being done. The stock closed on Thursday at $10.76.

Jesse Cohn, the Elliott portfolio manager overseeing the hedge fund’s bid, said in a statement: ““This is a good outcome. Compuware has granted our request for access to diligence to confirm an offer for the company. We will immediately reach out to negotiate an appropriate N.D.A. and look forward to moving quickly to engage in diligence with the help of our legal and financial advisors. We remain very interested in the company.”


This post has been revised to reflect the following correction:

Correction: January 28, 2013

An earlier version of this article misstated Compuware's dividend plan. It is a 50-cent annual dividend, not a quarterly one.

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Well: Keeping Blood Pressure in Check

Since the start of the 21st century, Americans have made great progress in controlling high blood pressure, though it remains a leading cause of heart attacks, strokes, congestive heart failure and kidney disease.

Now 48 percent of the more than 76 million adults with hypertension have it under control, up from 29 percent in 2000.

But that means more than half, including many receiving treatment, have blood pressure that remains too high to be healthy. (A normal blood pressure is lower than 120 over 80.) With a plethora of drugs available to normalize blood pressure, why are so many people still at increased risk of disease, disability and premature death? Hypertension experts offer a few common, and correctable, reasons:

¶ About 20 percent of affected adults don’t know they have high blood pressure, perhaps because they never or rarely see a doctor who checks their pressure.

¶ Of the 80 percent who are aware of their condition, some don’t appreciate how serious it can be and fail to get treated, even when their doctors say they should.

¶ Some who have been treated develop bothersome side effects, causing them to abandon therapy or to use it haphazardly.

¶ Many others do little to change lifestyle factors, like obesity, lack of exercise and a high-salt diet, that can make hypertension harder to control.

Dr. Samuel J. Mann, a hypertension specialist and professor of clinical medicine at Weill-Cornell Medical College, adds another factor that may be the most important. Of the 71 percent of people with hypertension who are currently being treated, too many are taking the wrong drugs or the wrong dosages of the right ones.

Dr. Mann, author of “Hypertension and You: Old Drugs, New Drugs, and the Right Drugs for Your High Blood Pressure,” says that doctors should take into account the underlying causes of each patient’s blood pressure problem and the side effects that may prompt patients to abandon therapy. He has found that when treatment is tailored to the individual, nearly all cases of high blood pressure can be brought and kept under control with available drugs.

Plus, he said in an interview, it can be done with minimal, if any, side effects and at a reasonable cost.

“For most people, no new drugs need to be developed,” Dr. Mann said. “What we need, in terms of medication, is already out there. We just need to use it better.”

But many doctors who are generalists do not understand the “intricacies and nuances” of the dozens of available medications to determine which is appropriate to a certain patient.

“Prescribing the same medication to patient after patient just does not cut it,” Dr. Mann wrote in his book.

The trick to prescribing the best treatment for each patient is to first determine which of three mechanisms, or combination of mechanisms, is responsible for a patient’s hypertension, he said.

¶ Salt-sensitive hypertension, more common in older people and African-Americans, responds well to diuretics and calcium channel blockers.

¶ Hypertension driven by the kidney hormone renin responds best to ACE inhibitors and angiotensin receptor blockers, as well as direct renin inhibitors and beta-blockers.

¶ Neurogenic hypertension is a product of the sympathetic nervous system and is best treated with beta-blockers, alpha-blockers and drugs like clonidine.

According to Dr. Mann, neurogenic hypertension results from repressed emotions. He has found that many patients with it suffered trauma early in life or abuse. They seem calm and content on the surface but continually suppress their distress, he said.

One of Dr. Mann’s patients had had high blood pressure since her late 20s that remained well-controlled by the three drugs her family doctor prescribed. Then in her 40s, periodic checks showed it was often too high. When taking more of the prescribed medication did not result in lasting control, she sought Dr. Mann’s help.

After a thorough work-up, he said she had a textbook case of neurogenic hypertension, was taking too much medication and needed different drugs. Her condition soon became far better managed, with side effects she could easily tolerate, and she no longer feared she would die young of a heart attack or stroke.

But most patients should not have to consult a specialist. They can be well-treated by an internist or family physician who approaches the condition systematically, Dr. Mann said. Patients should be started on low doses of one or more drugs, including a diuretic; the dosage or number of drugs can be slowly increased as needed to achieve a normal pressure.

Specialists, he said, are most useful for treating the 10 percent to 15 percent of patients with so-called resistant hypertension that remains uncontrolled despite treatment with three drugs, including a diuretic, and for those whose treatment is effective but causing distressing side effects.

Hypertension sometimes fails to respond to routine care, he noted, because it results from an underlying medical problem that needs to be addressed.

“Some patients are on a lot of blood pressure drugs — four or five — who probably don’t need so many, and if they do, the question is why,” Dr. Mann said.

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Well: Keeping Blood Pressure in Check

Since the start of the 21st century, Americans have made great progress in controlling high blood pressure, though it remains a leading cause of heart attacks, strokes, congestive heart failure and kidney disease.

Now 48 percent of the more than 76 million adults with hypertension have it under control, up from 29 percent in 2000.

But that means more than half, including many receiving treatment, have blood pressure that remains too high to be healthy. (A normal blood pressure is lower than 120 over 80.) With a plethora of drugs available to normalize blood pressure, why are so many people still at increased risk of disease, disability and premature death? Hypertension experts offer a few common, and correctable, reasons:

¶ About 20 percent of affected adults don’t know they have high blood pressure, perhaps because they never or rarely see a doctor who checks their pressure.

¶ Of the 80 percent who are aware of their condition, some don’t appreciate how serious it can be and fail to get treated, even when their doctors say they should.

¶ Some who have been treated develop bothersome side effects, causing them to abandon therapy or to use it haphazardly.

¶ Many others do little to change lifestyle factors, like obesity, lack of exercise and a high-salt diet, that can make hypertension harder to control.

Dr. Samuel J. Mann, a hypertension specialist and professor of clinical medicine at Weill-Cornell Medical College, adds another factor that may be the most important. Of the 71 percent of people with hypertension who are currently being treated, too many are taking the wrong drugs or the wrong dosages of the right ones.

Dr. Mann, author of “Hypertension and You: Old Drugs, New Drugs, and the Right Drugs for Your High Blood Pressure,” says that doctors should take into account the underlying causes of each patient’s blood pressure problem and the side effects that may prompt patients to abandon therapy. He has found that when treatment is tailored to the individual, nearly all cases of high blood pressure can be brought and kept under control with available drugs.

Plus, he said in an interview, it can be done with minimal, if any, side effects and at a reasonable cost.

“For most people, no new drugs need to be developed,” Dr. Mann said. “What we need, in terms of medication, is already out there. We just need to use it better.”

But many doctors who are generalists do not understand the “intricacies and nuances” of the dozens of available medications to determine which is appropriate to a certain patient.

“Prescribing the same medication to patient after patient just does not cut it,” Dr. Mann wrote in his book.

The trick to prescribing the best treatment for each patient is to first determine which of three mechanisms, or combination of mechanisms, is responsible for a patient’s hypertension, he said.

¶ Salt-sensitive hypertension, more common in older people and African-Americans, responds well to diuretics and calcium channel blockers.

¶ Hypertension driven by the kidney hormone renin responds best to ACE inhibitors and angiotensin receptor blockers, as well as direct renin inhibitors and beta-blockers.

¶ Neurogenic hypertension is a product of the sympathetic nervous system and is best treated with beta-blockers, alpha-blockers and drugs like clonidine.

According to Dr. Mann, neurogenic hypertension results from repressed emotions. He has found that many patients with it suffered trauma early in life or abuse. They seem calm and content on the surface but continually suppress their distress, he said.

One of Dr. Mann’s patients had had high blood pressure since her late 20s that remained well-controlled by the three drugs her family doctor prescribed. Then in her 40s, periodic checks showed it was often too high. When taking more of the prescribed medication did not result in lasting control, she sought Dr. Mann’s help.

After a thorough work-up, he said she had a textbook case of neurogenic hypertension, was taking too much medication and needed different drugs. Her condition soon became far better managed, with side effects she could easily tolerate, and she no longer feared she would die young of a heart attack or stroke.

But most patients should not have to consult a specialist. They can be well-treated by an internist or family physician who approaches the condition systematically, Dr. Mann said. Patients should be started on low doses of one or more drugs, including a diuretic; the dosage or number of drugs can be slowly increased as needed to achieve a normal pressure.

Specialists, he said, are most useful for treating the 10 percent to 15 percent of patients with so-called resistant hypertension that remains uncontrolled despite treatment with three drugs, including a diuretic, and for those whose treatment is effective but causing distressing side effects.

Hypertension sometimes fails to respond to routine care, he noted, because it results from an underlying medical problem that needs to be addressed.

“Some patients are on a lot of blood pressure drugs — four or five — who probably don’t need so many, and if they do, the question is why,” Dr. Mann said.

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Mattel Gives Max Steel Action Figure New Lease on Life





Not many toys get a second shot at success. Once interest wanes, toy makers often are quick to move to the next franchise.




So when Mattel decided to revive its dormant Max Steel line of action figures in the United States, it had a rare opportunity to re-examine the old marketing strategy for the brand. In doing so, it decided this time to shift its focus to multimedia, and let the toys follow.


“We have put focus and discipline around franchise development and content development,” said Tim Kilpin, the executive vice president for global brands at Mattel, the world’s largest toy company based on revenue. Plans for the Max Steel brand include an animated television series, a live-action short movie, an online hub, mobile games, graphic novels and, eventually, toys and other products.


“If there is a new normal, it’s that there is not just one way to reach an audience,” Mr. Kilpin said. “You’ve got to reach them and engage them through all that’s available.”


When Max Steel was introduced in 1999 as a line of boys’ action toys, it found modest success in the United States. But after the terrorist attacks of 2001, it drew scrutiny from its parent.


“There were some themes that we were very concerned about,” Mr. Kilpin said, “so we did not pursue the range of opportunities in the United States.”


Max Steel faded away in this country, but it continued to sell in South America, where it eventually became a blockbuster hit, outselling Mattel’s top lines, Hot Wheels and Barbie. More than a decade later, when Mattel was looking for a new line to start in the United States, it found one in the back of its own closet.


“We stepped back and looked at why it was so successful in Latin America,” Mr. Kilpin said. Mattel found that boys loved the idea of someone who could unlock his potential and become a hero. Mattel tweaked the original concept, making the character Max younger and easier for boys to relate to, and it began to plot a campaign to bring the brand back to the United States.


But times have changed, and children are much more media-wise than they were in the late ’90s. To market the revived brand, Mattel took a page from its Monster High franchise, which was introduced in 2010 as a line of fashion dolls, with an emphasis on multimedia, including young adult novels and a Web site that used videos and games.


Mattel’s focus on multimedia is no surprise, said Sean McGowan, an analyst at Needham & Company. “Mattel is a pioneer for creating toys with media property,” he said, citing He-Man and the Masters of the Universe, a boys’ action franchise Mattel started in the 1980s.


Other toy companies have established similar strategies. Hasbro, the No. 2 toy maker, created a production studio in 2009 and worked with Discovery Communications in 2010 to start a cable television channel called the Hub. Last year, the toy maker Jakks Pacific worked with a subsidiary of Dentsu, the Japanese advertising giant, to produce its first animated television series, “Monsuno,” which was supported by a line of toys and other products.


Toy makers are looking for ways to shore up their revenue. Retail toy sales in the United States declined slightly last year, to $16.5 billion from $16.6 billion the year before, according to the NPD Group, a market research company. Mattel is scheduled to report its fourth-quarter earnings on Friday.


Mattel would not reveal the marketing budget for the reintroduction of Max Steel, but Mr. Kilpin said it was “significant.”


“The best way to put perspective around the scale of it is to say it is a major new franchise launch for the company, much like Monster High was,” he said.


Like Monster High, Max Steel will start with a Web site, maxsteel.com, which will begin at the end of February and include games, character biographies and other features. The campaign will include an animated TV series, Mr. Kilpin said, because Max Steel is better suited to episodic television than was Monster High.


In FremantleMedia Enterprises, Mattel found an experienced producer of children’s television entertainment that it said could generate excitement for Max Steel around the globe. The show will have its premiere on March 25 in the United States on the Disney XD channel. Then it will be introduced in more than 100 markets.


The intent of the wide distribution is to create viral marketing on social networks, said Bob Higgins, the executive vice president for children’s and family programming at Fremantle. “Around the world, kids will start hearing about this,” he said. “Kids want to do what their friends do. If they are watching Max Steel, they want to be a part of that party.”


The marketing campaign will also include graphic novels, which help immerse boys deeper into the storytelling, said Elizabeth Kawasaki, senior editorial director at the animé publisher Viz Media.


“There has been always traditional publishing with media tie-in stuff,” she said, but children’s properties once consisted primarily of early reader books and sticker books. “The market has really changed now.”


Other consumer products will follow, including toys that will appear in stores in August. By then, Mattel said it hopes the brand will be embedded in the hearts and minds of boys.


“The first way that they are going to experience the brand is through those storytelling mechanisms,” Mr. Kilpin said. “Marketing ground zero for this franchise will be maxsteel.com.”


“We believe we are experts in play, not just in making toys,” he said. “That’s what our job is today.”


This article has been revised to reflect the following correction:

Correction: January 28, 2013

An earlier version of this article misidentified Tim Kilpin, an executive at Mattel. He is the executive vice president overseeing the company’s global brands team, not a senior vice president.



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IHT Rendezvous: The Clinton Doctrine of American Foreign Policy

The partisan political theater, of course, was top-notch. Sen. Rand Paul’s declaration that he would have fired Hillary Rodham Clinton; her angry rebuttal of Sen. Ron Johnson’s insistence that the Obama administration misled the American people about the Benghazi attack; Sen. John McCain’s continued outrage at the slapdash security the State Department provided its employees.

Beneath the posturing, though, ran larger questions: what strategy does the United States have to counter the militant groups running rampant across North and West Africa? And what kind of secretary of state has Mrs. Clinton been? In her last Congressional hearing in that position, Mrs. Clinton expressed exasperation with Washington’s political trench warfare.

“We’ve got to get our act together,” she said.

Mrs. Clinton has been a very good but very cautious secretary of state, many analysts say – one who, for the most part, kept her distance from Afghanistan, Israel-Palestine and other seemingly intractable conflicts.

One State Department official, while praising Mrs. Clinton’s tenure, nonetheless looked forward to the arrival of Sen. John Kerry, her designated successor: “I came to admire Clinton as secretary of state, her focus on women and innovation in particular,” the official told me. “But am really happy to have someone in the job who does not retain political ambitions.”

In a recent assessment of Clinton’s tenure, Michael O’Hanlon of the Brookings Institution argued that she had enjoyed some success, including restoring the United States’ image abroad, but she made no historic breakthroughs, he said.

Mr. O’Hanlon argued that Mrs. Clinton’s famed work ethic paid off. She made few mistakes, no major gaffes and did not “needlessly antagonize” friends or enemies. O’Hanlon called Mrs. Clinton’s role in the administration’s “pivot to Asia” and tough stance toward China arguably “her greatest and most memorable contribution.”

The problem, as last week’s hearing showed, is that the Middle East and the threat of terrorism continue to dominate American foreign policy. Even as the United States becomes more energy independent, terrorist attacks like the kidnappings in a remote oil facility in Algeria will make headlines and influence markets. And barring a massive shift in American domestic politics, Israel’s security will continue to be viewed as a vital interest of the United States.

Mrs. Clinton, to her credit, made forty trips to Europe that helped produce crippling new sanctions on Iran. Last fall, she helped broker a ceasefire between Israel and Hamas in Gaza. But she failed to personally engage in Israeli-Palestinian peace talks.

To be fair, the Obama White House may have limited her options. After promising more open debate than occurred under President George W. Bush, the Obama White House tightly controlled the formulation of American foreign policy. Critics have also accused Mr. Obama of being overly cautious in foreign affairs.

With the exception of the Libya intervention and the raid that killed Osama bin Laden, Mr. Obama was “coolly calculating and reluctant to engage” in his first-term foreign policy, The Economist magazine recently argued.

Mr. Obama, of course, is trying to avoid the over-reach his predecessor displayed in Iraq. He also faces enormous fiscal pressures at home. But there is a risk that the pendulum is swinging too far toward a smug isolationism in Washington.

As Mrs. Clinton departs, worrying trends are emerging in the way America engages with the world. The new U.S. weapon of choice is the drone strike – a tactic that carries zero political risk at home but spreads anti-Americanism abroad.

Complex foreign policy problems that threaten American security are increasingly seen as “entanglements” best avoided. And there is a convenient view that there are no “good guys” in the power struggles now unfolding in the post-Arab-Spring Middle East.

The potential lesson of the bruising political battle over Benghazi is simple: Take few risks, turn embassies into bunkers and avoid political firestorms at home. In her testimony, Mrs. Clinton passionately argued against that approach.

Declaring Somalia and Colombia success stories, she said the United States could counter militancy in Africa and the Middle East by working with regional organizations and training local security forces. U.S. funding and training of an African Union Mission in Somalia, or AMISOM, Mrs. Clinton said, had slowly succeeded in driving back al-Shabaab and other Islamist forces. In Colombia, the government has driven back FARC rebels and narco-traffickers.

There have been setbacks and the efforts in both countries are imperfect. But local security forces trained and funded by the international community slowly gained ground in painstaking efforts over many years.

“What we have to do is recognize that we’re in for a long-term struggle here,” Mrs. Clinton said at the hearing. “And that means we’ve got to pay attention to places that historically we have not chosen to or had to.”

During their heated exchange, Mr. McCain criticized Mrs. Clinton and the Obama administration for not doing enough to train Libya’s security forces. Secretary Clinton replied that House Republicans had put a hold on the funding the administration requested to train Libyans.

“If this is a priority and we are serious about trying to help this government stand up security forces,” she said, “then we have to work together.”

Mrs. Clinton is right. And so is Mr. McCain. Congressional politicking hinders the State Department. And the State Department executed terribly in Benghazi. But Mrs. Clinton, who I have criticized in the past, won the day.

“We are in a new reality,” she said, referring to the change sweeping across the Middle East. “We are trying to makes sense of events that nobody had predicted but that we’re going to have to live with.”

Mrs. Clinton called for the United States to show “humility” abroad and stop making national security issues “political footballs” at home. She said a Cold War style bipartisan agreement should be reached to launch a long-term American effort to strengthen local security forces and promote democracy across Africa and the post-Arab-Spring Middle East.

“Let’s be smart and learn from what we’ve done in the past,” she said. “Put forth a policy that wouldn’t go lurching from administration to administration but would be a steady one.”

“We have more assets than anyone in the world,” Mrs. Clinton added, “but I think we’ve gotten a little bit off track in trying to figure out how best to utilize them.”

A “little bit off track” is a euphemism for partisanship endangering national security. If the U.S. doesn’t get its act together, expect more Benghazis.

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Gadgetwise Blog: App Smart Extra: On the Slopes

Apps that add a technological edge to your skiing or snowboarding vacation were the subject of a recent App Smart column. But the column could barely make a dent in discussing all the apps available to help winter sports enthusiasts. Here are some more suggestions.

One class of app that can be both helpful and fun is those apps that link you to the different Web cams that many resorts now have on the mountainsides. The Ski Webcams app, free on iTunes or $1.59 on Android, is one of the best of these. It can link you to resort Web cams either near your location or from a very extensive list or, just for fun, to random cams from around the world. It’s a very no-frills app. But it does tell you when each image was collected so you can see how up-to-date the picture is. And you can zoom into the images, which is useful for high-res video feeds.

For a different type of ski app experience, you may love the free iOS app SloPro. It’s a video editing app that offers a rather cool trick: the ability to slow a movie clip down to super slow motion, like the effects you get in sports videos shown on TV. These effects happen through image processing inside the app, so they’re not as eye-catching as using a slow-motion camera to film a skier making a jump, for example. But the effects are impressive, once you’ve mastered the app’s slightly tricky interface. And if you’re on a snow vacation with some friends, then you may be able to achieve some amazingly dramatic film clips.

There are also many apps available that are resort-specific, but since these come from different app developers their quality varies. For example the Val d’Isère Ski Guide app for Android, for the very popular French ski resort, has a pretty basic and uninspiring interface but offers detailed information on up-to-the-minute events, weather and facilities in the town. The $1 iOS app Live North Lake Tahoe is more graphically clever, and thus a little easier to navigate. It also offers a few niceties like a piste map and road cameras so you can plan your journey around traffic or difficult weather. But it does cost soemthing, and offers you services you could get for free by downloading one or two other free apps.

It’s definitely worth spending some time checking out what’s available for your chosen resort before you head off on a ski trip.

Quick call

Delta Airlines has released a free iPad app that has many typical services like destination maps and social networking tools. But it also has a “Glass Bottom Jet” option in-flight that shows an image of the ground underneath your aircraft’s flight path, assuming you’re hooked up to the airline’s in-plane Wi-Fi network.

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Well: Ask Well: Squats for Aging Knees

You are already doing many things right, in terms of taking care of your aging knees. In particular, it sounds as if you are keeping your weight under control. Carrying extra pounds undoubtedly strains knees and contributes to pain and eventually arthritis.

You mention weight training, too, which is also valuable. Sturdy leg muscles, particularly those at the front and back of the thighs, stabilize the knee, says Joseph Hart, an assistant professor of kinesiology and certified athletic trainer at the University of Virginia, who often works with patients with knee pain.

An easy exercise to target those muscles is the squat. Although many of us have heard that squats harm knees, the exercise is actually “quite good for the knees, if you do the squats correctly,” Dr. Hart says. Simply stand with your legs shoulder-width apart and bend your legs until your thighs are almost, but not completely, parallel to the ground. Keep your upper body straight. Don’t bend forward, he says, since that movement can strain the knees. Try to complete 20 squats, using no weight at first. When that becomes easy, Dr. Hart suggests, hold a barbell with weights attached. Or simply clutch a full milk carton, which is my cheapskate’s squats routine.

Straight leg lifts are also useful for knee health. Sit on the floor with your back straight and one leg extended and the other bent toward your chest. In this position, lift the straight leg slightly off the ground and hold for 10 seconds. Repeat 10 to 20 times and then switch legs.

You can also find other exercises that target the knees in this video, “Increasing Knee Stability.”

Of course, before starting any exercise program, consult a physician, especially, Dr. Hart says, if your knees often ache, feel stiff or emit a strange, clicking noise, which could be symptoms of arthritis.

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J. Richard Hackman, an Expert in Team Dynamics, Dies at 72





J. Richard Hackman, a Harvard psychology professor whose fieldwork sometimes took him to the cockpit of an airliner to observe the crew in a nearly five-decade quest to determine the dynamics of teamwork and effective leadership, died on Jan. 8 in Boston. He was 72.




The cause was lung cancer, his wife, Judith Dozier Hackman, said.


Dr. Hackman, the author or co-author of 10 books on group dynamics, was the Edgar Pierce professor of social and organizational psychology at Harvard.


In one of his best-known books, “Leading Teams: Setting the Stage for Great Performances” (2002), he replaced the popular image of the powerful “I can do it all” team leader with that of someone who, as he wrote, had the subtle skills “to get a team established on a good trajectory, and then to make small adjustments along the way to help members succeed.”


The conditions for a successful team effort — among them “a compelling direction, an enabling team structure, a supportive organizational context and expert team coaching” — “are easy to remember,” Dr. Hackman wrote.


“The challenge,” he continued, “comes in developing an understanding of those conditions that is deep and nuanced enough to be useful in guiding action, and in devising strategies for creating them even in demanding or team-unfriendly organizational circumstances.”


Besides tracking the interplay of pilots, co-pilots and navigators aboard civilian and military planes, Dr. Hackman observed corporate boards, sports teams, orchestra players, telephone-line repair crews, hospital workers and restaurant kitchen staff members.


And in recent years, for his 2011 book, “Collaborative Intelligence,” he was allowed to observe interactions within the American intelligence, defense, law-enforcement and crisis-management communities.


“Although my main aspiration has been to provide guidance that will be useful to team leaders and members,” he wrote, “there are no ‘one-minute’ prescriptions here — creating, leading and serving on teams is not that simple.”


Anita Woolley, a professor of organizational behavior and theory at the Tepper School of Business at Carnegie Mellon University in Pittsburgh, said, “The key thing about Dr. Hackman’s work is that it stands in contrast to some of the more popular models of leadership that focused very much on style or how leaders behave, versus what they do.”


Rather than viewing pay as a prime motivator for good performance, she continued, “he focused on features of people’s jobs that made them more intrinsically satisfied: the freedom to determine how they conduct their work, having a variety of tasks, having knowledge of the ultimate outcomes of their work, knowing how their work affects or is received by other people.”


He also liked to overturn some of the received wisdom about teamwork. In a 2011 article for The Harvard Business Review, Dr. Hackman listed “Six Common Misperceptions About Teamwork.” Among them was this:


“Misperception No. 2: It’s good to mix it up. New members bring energy and fresh ideas to a team. Without them, members risk becoming complacent, inattentive to changes in the environment, and too forgiving of fellow members’ misbehavior.


“Actually: The longer members stay together as an intact group, the better they do. As unreasonable as this may seem, the research evidence is unambiguous. Whether it is a basketball team or a string quartet, teams that stay together longer play together better.”


John Richard Hackman was born in Joliet, Ill., on June 14, 1940, the only child of J. Edward and Helen Hackman. His father was an oil pipeline engineer, his mother a schoolteacher.


Dr. Hackman received a bachelor’s degree in mathematics from MacMurray College in Jacksonville, Ill., in 1962, and a doctorate in psychology from the University of Illinois in 1966. He soon joined the psychology and administrative sciences department faculties at Yale, where he taught until 1986, when he moved to the psychology and business departments at Harvard.


Besides his wife, who is an associate dean at Yale, he is survived by two daughters, Julia Beth Proffitt and Laura Dianne Codeanne, and four grandchildren.


After Dr. Hackman died, The Harvard Crimson wrote that for years he had “devoted countless hours to improving one team in particular — the Harvard women’s basketball squad, for which he volunteered as an honorary coach.”


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