Tuesday, May 14, 2013

Gov't obtains wide AP phone records in probe

The screen on the phone console at the reception desk at The Associated Press Washington bureau, Monday, My 13, 2013. The Justice Department secretly obtained two months of telephone records of reporters and editors for The Associated Press in what the news cooperative's top executive called a "massive and unprecedented intrusion" into how news organizations gather the news. (AP Photo/Jon Elswick)

The screen on the phone console at the reception desk at The Associated Press Washington bureau, Monday, My 13, 2013. The Justice Department secretly obtained two months of telephone records of reporters and editors for The Associated Press in what the news cooperative's top executive called a "massive and unprecedented intrusion" into how news organizations gather the news. (AP Photo/Jon Elswick)

FILE - In this April 18, 2013 file photo, Attorney General Eric Holder testifies on Capitol Hill in Washington. The Justice Department has secretly obtained two months of telephone records of journalists for The Associated Press in what AP's top executive says is an unprecedented intrusion into newsgathering. (AP Photo/Molly Riley, File)

(AP) ? The Justice Department secretly obtained two months of telephone records of reporters and editors for The Associated Press in what the news cooperative's top executive called a "massive and unprecedented intrusion" into how news organizations gather the news.

The records obtained by the Justice Department listed outgoing calls for the work and personal phone numbers of individual reporters, for general AP office numbers in New York, Washington and Hartford, Conn., and for the main number for the AP in the House of Representatives press gallery, according to attorneys for the AP. It was not clear if the records also included incoming calls or the duration of the calls.

In all, the government seized the records for more than 20 separate telephone lines assigned to AP and its journalists in April and May of 2012. The exact number of journalists who used the phone lines during that period is unknown, but more than 100 journalists work in the offices where phone records were targeted, on a wide array of stories about government and other matters.

In a letter of protest sent to Attorney General Eric Holder on Monday, AP President and Chief Executive Officer Gary Pruitt said the government sought and obtained information far beyond anything that could be justified by any specific investigation. He demanded the return of the phone records and destruction of all copies.

"There can be no possible justification for such an overbroad collection of the telephone communications of The Associated Press and its reporters. These records potentially reveal communications with confidential sources across all of the newsgathering activities undertaken by the AP during a two-month period, provide a road map to AP's newsgathering operations and disclose information about AP's activities and operations that the government has no conceivable right to know," Pruitt said.

The government would not say why it sought the records. Officials have previously said in public testimony that the U.S. attorney in Washington is conducting a criminal investigation into who may have provided information contained in a May 7, 2012, AP story about a foiled terror plot. The story disclosed details of a CIA operation in Yemen that stopped an al-Qaida plot in the spring of 2012 to detonate a bomb on an airplane bound for the United States.

In testimony in February, CIA Director John Brennan noted that the FBI had questioned him about whether he was AP's source, which he denied. He called the release of the information to the media about the terror plot an "unauthorized and dangerous disclosure of classified information."

Prosecutors have sought phone records from reporters before, but the seizure of records from such a wide array of AP offices, including general AP switchboards numbers and an office-wide shared fax line, is unusual.

In the letter notifying the AP, which was received Friday, the Justice Department offered no explanation for the seizure, according to Pruitt's letter and attorneys for the AP. The records were presumably obtained from phone companies earlier this year although the government letter did not explain that. None of the information provided by the government to the AP suggested the actual phone conversations were monitored.

Among those whose phone numbers were obtained were five reporters and an editor who were involved in the May 7, 2012, story.

The Obama administration has aggressively investigated disclosures of classified information to the media and has brought six cases against people suspected of providing classified information, more than under all previous presidents combined.

Rep. Darrell Issa, R-Calif., chairman of the investigative House Oversight and Government Reform Committee, said on CNN, "They had an obligation to look for every other way to get it before they intruded on the freedom of the press."

The American Civil Liberties Union said the use of subpoenas for a broad swath of records has a chilling effect both on journalists and whistleblowers who want to reveal government wrongdoing. "The attorney general must explain the Justice Department's actions to the public so that we can make sure this kind of press intimidation does not happen again," said Laura Murphy, the director of ACLU's Washington legislative office.

Rules published by the Justice Department require that subpoenas of records of news organizations must be personally approved by the attorney general, but it was not known if that happened in this case. The letter notifying AP that its phone records had been obtained through subpoenas was sent Friday by Ronald Machen, the U.S. attorney in Washington.

William Miller, a spokesman for Machen, said Monday that in general the U.S. attorney follows "all applicable laws, federal regulations and Department of Justice policies when issuing subpoenas for phone records of media organizations." But he would not address questions about the specifics of the AP records. "We do not comment on ongoing criminal investigations," Miller said in an email.

The Justice Department lays out strict rules for efforts to get phone records from news organizations. A subpoena can be considered only after "all reasonable attempts" have been made to get the same information from other sources, the rules say. It was unclear what other steps, in total, the Justice Department might have taken to get information in the case.

A subpoena to the media must be "as narrowly drawn as possible" and "should be directed at relevant information regarding a limited subject matter and should cover a reasonably limited time period," according to the rules.

The reason for these constraints, the department says, is to avoid actions that "might impair the news gathering function" because the government recognizes that "freedom of the press can be no broader than the freedom of reporters to investigate and report the news."

News organizations normally are notified in advance that the government wants phone records and then they enter into negotiations over the desired information. In this case, however, the government, in its letter to the AP, cited an exemption to those rules that holds that prior notification can be waived if such notice, in the exemption's wording, might "pose a substantial threat to the integrity of the investigation."

It is unknown whether a judge or a grand jury signed off on the subpoenas.

The May 7, 2012, AP story that disclosed details of the CIA operation in Yemen to stop an airliner bomb plot occurred around the one-year anniversary of the May 2, 2011, killing of Osama bin Laden.

The plot was significant both because of its seriousness and also because the White House previously had told the public it had "no credible information that terrorist organizations, including al-Qaida, are plotting attacks in the U.S. to coincide with the (May 2) anniversary of bin Laden's death."

The AP delayed reporting the story at the request of government officials who said it would jeopardize national security. Once officials said those concerns were allayed, the AP disclosed the plot, though the Obama administration continued to request that the story be held until the administration could make an official announcement.

The May 7 story was written by reporters Matt Apuzzo and Adam Goldman with contributions from reporters Kimberly Dozier, Eileen Sullivan and Alan Fram. They and their editor, Ted Bridis, were among the journalists whose April-May 2012 phone records were seized by the government.

Brennan talked about the AP story and investigation in written testimony to the Senate. "The irresponsible and damaging leak of classified information was made ... when someone informed the Associated Press that the U.S. Government had intercepted an IED (improvised explosive device) that was supposed to be used in an attack and that the U.S. Government currently had that IED in its possession and was analyzing it," he wrote.

He also defended the White House decision to discuss the plot afterward. "Once someone leaked information about interdiction of the IED and that the IED was actually in our possession, it was imperative to inform the American people consistent with Government policy that there was never any danger to the American people associated with this al-Qa'ida plot," Brennan told senators.

Associated Press

Source: http://hosted2.ap.org/APDEFAULT/3d281c11a96b4ad082fe88aa0db04305/Article_2013-05-13-US-AP-Phone-Records-Subpoena/id-ff917e76514b4b60b660aa6460bef98a

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Monday, May 13, 2013

Argentina faces very different debt default if loses legal fight

By Hilary Burke

BUENOS AIRES (Reuters) - When Argentina defaulted on its debt in 2002, the economy was collapsing and a bloody popular revolt had helped topple two presidents in a week. Now, the country could default again, but it would be over a matter of principle rather than necessity.

After a decade of sleepy litigation, investors got a jolt late last year when U.S. courts ruled in favor of "holdout" creditors who had rejected Argentine debt exchanges in 2005 and 2010 and sued to be repaid in full on their defaulted bonds.

A U.S. judge ordered Argentina to pay the holdouts the full $1.33 billion owed them the next time it serviced restructured debt. Argentina appealed, and a ruling by the 2nd U.S. Circuit Court of Appeals is expected in the coming weeks.

Investors are following the case closely because Argentina appears willing to enter into technical default in order to avoid paying the holdouts any more than other creditors received.

The nearly 93 percent of bondholders who accepted the debt exchanges got returns of as low as 25 cents on the dollar.

Tough-talking Argentine President Cristina Fernandez has pledged to keep paying the restructured debt but vows never to pay the "vultures" that bought the bonds at a steep discount and sued for full repayment.

When Argentina defaulted on some $100 billion in bonds 11 years ago, its debt represented 166 percent of gross domestic product. Bank deposits were frozen and devalued, the economy shrank 11 percent in one year, and millions lost their jobs.

Argentina's economy rebounded after that crisis and boomed during most of the last decade. Although growth slowed sharply in the last year and inflation is high, the debt burden is down to about 42 percent of GDP.

In other words, Argentina could pay the holdouts if it wanted, but it refuses to do so.

"Argentina will not blink and neither will the holdouts, so this will lead to a technical default," said Shahriar Shahida, co-founder of Constellation Capital Management LLC in New York, which is currently invested in Argentina and believes it would be unfair to favor the holdouts over exchange bondholders.

"This is an unparalleled case of somebody defaulting not because they don't have capacity, not because they don't have willingness, but because somebody is forcing them to do something egregious," he said.

MARKETS ON EDGE

Argentina says it will fight the holdouts - led in this case by Elliott Management affiliate NML Capital and Aurelius Capital Management - all the way to the U.S. Supreme Court.

Sources familiar with the position of Elliott and Aurelius say Argentina has never shown a willingness to negotiate.

Investors anticipate the country will eventually defy U.S. courts if they insist the holdouts be paid in full.

In that scenario, Argentina is widely expected to force a technical default on the restructured bonds issued under New York law - which would be most directly affected by the rulings - while trying to create a new payment scheme for those bonds.

One option would be a swap in which the exchange bondholders turned in their New York paper for new Argentine-law bonds. Some analysts warn that might not be doable, however.

The default would be technical because Argentina might try to pay the exchange bondholders without paying the holdouts, and the courts could then disrupt the payments. Or the country could suspend payments on the restructured bonds citing its own laws, which bar it from paying the holdouts on better terms.

Argentine economic officials have refused to discuss whether they are evaluating a "Plan B" for payments. The next interest payments on restructured bonds come due June 2 and June 30.

When the court rulings first came down last year, many investors scrambled to sell off their Argentine bonds and some firms specializing in distressed debt moved in to buy.

The market has since stabilized and the restructured bonds regained some ground in April. Argentina's Global 2017, issued during the 2010 debt swap, is now yielding around 16.3 percent, down from 19.6 percent in early March.

In terms of credit default swap contracts - which act as insurance against a default - the maximum payout possible dropped sharply in late 2012 and now stands at about $1.53 billion, data from the Depository Trust & Clearing Corp shows.

CDS payouts would likely be less, however, after an auction process to determine the recovery value of the defaulted bonds.

Ultimately, Argentina is no longer as relevant to global credit markets as it used to be. It has not issued international debt since the 2002 default and its weighting on the JPMorgan Chase EMBI+ emerging market sovereign bond index has shrunk to 1.8 percent from over 23 percent in early 2001.

Capital controls and more-recent foreign currency restrictions have further isolated the country, which is seen as an anomaly in largely market-friendly Latin America.

Credit Suisse analysts said last week that most of their contacts in Buenos Aires believe the spillover effects of a technical default "would be relatively small due to Argentina's relative isolation from international capital markets and the ongoing deterioration in Argentina's business climate."

LEGAL OUTLOOK

In November, U.S. District Judge Thomas Griesa ordered Argentina to deposit the $1.33 billion owed to holdouts in an escrow account by December 15, when restructured debt came due.

He also required that third parties involved in payments on Argentina's restructured bonds be held accountable if the court order were evaded. This included Bank of New York Mellon Corp, which acts as trustee for the exchange bondholders.

The 2nd Circuit suspended these orders under an emergency judicial stay while reviewing Argentina's appeal.

It is not clear, however, that the stay would remain in place if Argentina had to appeal to the Supreme Court. Most analysts seem to think it would, but there is no guarantee.

It is also anyone's bet how the 2nd Circuit will rule. The court upheld Griesa's original decision, finding Argentina had discriminated against the holdouts and violated the "pari passu" or equal treatment clause in their defaulted bond contracts.

But with the U.S. government arguing Griesa's rulings could complicate future sovereign debt restructurings, the 2nd Circuit may seek to limit the scope of the payment orders.

The appeals court asked Argentina to submit its own payment proposal, which essentially echoed the terms of the 2010 swap. NML and Aurelius rejected this outright.

If Argentina appealed to the Supreme Court and its case were accepted for review, a ruling could be made as late as June 2015, according to Bank of America Merrill Lynch analysts.

A new Argentine default, no matter how short-lived, would tend to push bond prices lower and hurt the balance sheets of local banks, which hold lots of debt. But most economists do not think there would be massive fallout, in part because Argentine exporters are much less reliant on trade finance than in 2002.

Guillermo Nielsen, who as finance secretary helped push through Argentina's tough debt restructuring in 2005, said nonetheless a default should be avoided at all costs.

"The New York financial market is important not only for less developed countries but also for developed countries. Even Sweden issues debt in the New York market," Nielsen said. "And here we have everything to be made, to be built, to be created. We need that financing."

(Additional reporting by Daniel Bases in New York and Alejandro Lifschitz and Guido Nejamkis in Buenos Aires; Editing by Kieran Murray, Bernard Orr)

Source: http://news.yahoo.com/argentina-faces-very-different-debt-default-loses-legal-110556026.html

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Ex-Penn St head was top paid among public colleges

BUFFALO, N.Y. (AP) ? Former Penn State President Graham Spanier became the highest paid public college president of 2011-12 when he was forced out over his handling of the sex abuse scandal involving former assistant football coach Jerry Sandusky, according to a survey released Sunday.

The Chronicle of Higher Education's annual ranking of public college presidents' earnings said Spanier's $2.9 million pay, which included $1.2 million in severance and $1.2 million in deferred compensation, put him well ahead of his peers when he left Penn State in November 2011.

Spanier, who led the college for 16 years, is awaiting trial on criminal charges of perjury, obstruction, endangering the welfare of children, failure to properly report suspected child abuse and conspiracy stemming from administrators' handling of sex abuse allegations against Sandusky. Spanier has vigorously denied the charges.

Sandusky was convicted in 2012 of abusing 10 boys and sentenced to 30 to 60 years in prison.

Former Florida A&M University President James Ammons also saw his place on the earning list rise amid scandal. He ranked 11th at $781,000 after collecting $422,000 in severance and bonuses when he resigned in the wake of the hazing death of a marching band member.

While the median compensation for public college presidents was $441,392, a 4.7 percent increase over 2010-11, Spanier was one of four chief executives to surpass the $1 million threshold in 2011-12, one more than the previous year. The others were Auburn University President Jay Gogue, who received $2.5 million; E. Gordon Gee of Ohio State University, who earned $1.9 million; and now-retired George Mason University's Alan Merten, whose total pay plus benefits and deferred compensation totaled $1.87 million.

Deferred compensation plans, meant as retention incentives, give executives a lump sum after a specified number of years on the job.

Ball State University's Jo Ann Gora collected $500,000 in deferred pay on top of $431,000 in base pay, launching her into the top five earners, with a total of $985,000. She was one of two women in the top 10, ranking just above Mary Sue Coleman of the University of Michigan, who earned $919,000. Coleman was the lone woman among last year's top 10.

Ammons, who is black, was the highest earning minority among the college presidents.

Gee, who topped the 2010-11 earnings list and became the first public college president in the million-dollar club in 2007-08, had the highest base salary last year: $830,439. That was more than double the median base salary, which inched up 2 percent to $373,800.

A separate analysis of the pay of private college presidents released by the Chronicle in December found 36 leaders received $1 million or more in 2010. The numbers are older because of lag time in the release of the federal tax information on which they are based.

The public college data is based on a survey of institutions. It analyzed compensation of 212 presidents at 191 public research institutions. The leaders outnumbered institutions because the survey included those whose tenures began or ended during the fiscal year.

____

Online: http://chronicle.com/compensation

Source: http://news.yahoo.com/ex-penn-st-head-top-paid-among-public-220750241.html

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Joe's Dairy closes its doors after decades of business | PIX 11

NEW YORK (PIX11)-? After providing New Yorker?s with some of the finest cheeses for almost 40 years, Vincent Campanelli and his brother served their loyal customers for the last time on Saturday.

?This is a decision we didn?t want to make, but it was a decision we had to make.?

Tucked away on Sullivan Street in SoHo, Joe?s Dairy is one of the few reminders of an older New York, when the neighborhood was primarily Italian and where the words Mozzarella and Ricotta never existed.

?Mutzedel? ?Ragawt? you got your own little language there.?

Faced with rising rents and a shrinking customer base, Campanelli says the family just couldn?t afford to keep it open.

On the final day of business for the neighborhood institution, life-long customers packed the store to get their hands on one final ball of smoked mozzarella.

?I know they make it themselves, I know it?s fresh, I know it?s local,? said loyal customer Susan Freel.

?Our goal was just to provide a good product and 36 years I think we?ve been pretty good.?

So good that some customers could not believe the news, ?When I found out at the cash register I burst into tears,? said Susan McElroy.

?You think you?re selling cheese, and you start going up layers, it?s a whole of a lot more than you thought.?

While Joe?s customers say they?ll miss the familiar faces and fresh cheese they?ve always known here at the store, they say Joe?s closing is more symbolic of a bigger problem for mom and pop shops here in SoHo.

?They?re a dying breed of shops and it?s just a shame really to see that intimate sort of shop closing,? said film maker Piero Iberti.

Piero Iberti is a customer and filmmaker whose been working on a documentary about the store for two years.
He says what makes the store so special is the quality and customer service from small business owners who are invested in the community.

?You?re greeted with people who actually care how you feel and you?re not just going to buy and get out.?

That?s why customers like Susan Freel, who?ve been shopping at the store for more than 30 years, say it will be so hard to see it close.

?I wish that my little bucks would keep them alive, but I?m just one person.?

But Campanelli says without customers like Freel, he and his brother would never have even been able to keep the store open as long as they did.

?Basically I want to thank you for being there for us, because without you we wouldn?t have been here for 36 years.?

While Joe?s Dairy store is now closed, the brothers will continue to run the wholesale business; which means soon the only place you?ll be able to find the famous smoked mozzarella will be in one of the stores that forced Joe?s Dairy to shut down.

Source: http://pix11.com/2013/05/11/joes-dairy-closes-its-doors-after-decades-of-business/

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Astronauts Replace a Pump, Hoping to Stop Leak

[unable to retrieve full-text content]Flakes of frozen ammonia coolant were spotted drifting from the left side of the space station. But astronauts cannot seem to find the leak.
    


Source: http://www.nytimes.com/2013/05/12/science/space/astronauts-replace-a-pump-hoping-to-stop-leak.html?partner=rss&emc=rss

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Saturday, May 11, 2013

John Bledsoe Throws Candidate For 'Worst First Pitch Before a Baseball Game' Award (VIDEO)

By Chris Yuscavage, Complex Sports

We've seen a lot of really bad first pitches over the last couple of years. See here, here, here, and here for examples.

But the first pitch in the clip above is the worst one we've ever seen. In fact, it's so bad that we're pretty sure that the guy who threw it did it like this on purpose just to land on the sports blogs.

That's really the only explanation for it. And if that is why he did, then congratulations, dude! YOU MADE IT! Happy now?

RELATED: Why MLB Thinks You're Stupid

[via The Big Lead]

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Source: http://www.huffingtonpost.com/2013/05/11/john-bledsoe-throws-candi_n_3259631.html

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17 days on, Bangladesh workers find survivor

DHAKA, Bangladesh (AP) -- A woman buried in the wreckage of a collapsed garment factory building for 17 days was rescued Friday, a miraculous moment set against a scene of unimaginable horror where the death toll is more than 1,000 and still rising.

The woman survived in a Muslim prayer room in the the eight-story Rana Plaza building, where crews have been focused on recovering bodies, not rescuing survivors, for days. Trapped in wreckage finally exposed by heavy equipment, she waved a pipe to attract attention.

The crews ordered the cranes and bulldozers to immediately stop work and used handsaws and welding and drilling equipment to cut through the iron rod and debris still trapping her. They gave her water, oxygen and saline as they worked to free her.

When the woman, whom soldiers identified as Reshma, was freed after 40 minutes, the crowd erupted in wild cheers. She appeared to be in remarkably good shape despite her ordeal, and was rushed to a military hospital in an ambulance.

Abdur Razzak, a warrant officer with the military's engineering department who first spotted her in the wreckage, said she could even walk.

"She was fine, no injuries. She was just trapped. The space was wide," said Lt. Col. Moyeen, an army official at the scene.

Reshma, who had been on the second floor, told her rescuers there were no more survivors in her area. Workers began tearing through the nearby rubble anyway, hoping to find another person alive.

The religious aspects of the rescue ? in a Muslim prayer room, on Islam's day of prayer ? was not lost on the ecstatic crowd. Hundreds of people who had been engaged in the grim job of removing decomposing bodies from the site raised their hands together in prayer for her survival.

"Allah, you are the greatest, you can do anything. Please allow us all to rescue the survivor just found," said a man on a loudspeaker leading the supplicants. "We seek apology for our sins. Please pardon us, pardon the person found alive."

Workers at the site had been clearing the rubble since the collapse April 24. More than 2,500 people were rescued in the immediate aftermath of the disaster. However, no survivors had been found in the wreckage since April 28, when Shahin Akter was found amid the wreckage. As workers tried to free her, a fire broke out and she died of smoke inhalation.

Prime Minister Sheikh Hasina congratulated the rescuers.

"This is an unbelievable feat," she was quoted as saying by her assistant, Mahbubul Haque Shakil.

Source: http://news.yahoo.com/bangladesh-workers-survivor-factory-rubble-104205204.html

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