Friday, February 28, 2014

GSA PLAN FOR RECYCLING E-WASTE FOR EFFICIENCY AND PROTECTING ENVIRONMENT

FROM:  GENERAL SERVICES ADMINISTRATION 
Recycling Electronics: A Common Sense Solution for Enhancing Government Efficiency and Protecting Our Environment

Good morning Chairman Carper, Ranking Member Coburn, and Members of the Committee.  My name is Kevin Kampschroer, and I am the Deputy Senior Sustainability Official at the U.S. General Services Administration (GSA).  Thank you for inviting me to testify about electronics recycling and the opportunities this area provides for increased environmental stewardship by the Federal government.

E-waste is the largest growing waste stream in the country.  According to the most recent Environmental Protection Agency (EPA) estimates, more than five million tons of electronics were in storage.  Of those, 2.37 million tons were ready for end-of-life management, yet only twenty-five percent were collected for recycling.

The Administration is committed to reducing e-waste and realizing efficiency by standardizing procedures across the government.  As the world’s largest consumer of electronics, e-waste is a significant opportunity for the Federal government.  In 2009, the President issued Executive Order 13514 which, among other things, called for the Federal community to promote electronics stewardship.  The Administration also established an Interagency Task Force on Electronics Stewardship (the Task Force) led by GSA, the Environmental Protection Agency (EPA) and the White House Council on Environmental Quality (CEQ).  The President charged the Task Force with developing a National Strategy for Electronics Stewardship (the Strategy), which the Task Force released in 2011.

Today, I look forward to discussing the development of the Strategy, its important tenets, and GSA’s efforts as a member of the Task Force to help enact those provisions to address this critical challenge.

The Strategy —

GSA has always had programs for the disposal of excess equipment, including electronics, but these programs were not designed with the specific challenges of e-waste in mind.  Before the Strategy, there was no standardized government-wide plan to properly evaluate or dispose of electronics that could no longer be used as originally intended.

To help develop the Strategy, the Task Force, made up of sixteen agencies,  including GSA, EPA and CEQ, hosted several listening sessions with industry stakeholders (electronics manufacturers and recyclers), the non-governmental organization community, State and local governments and customer agencies.  In addition, the Task Force solicited public comments through the Federal Register and Regulations.gov.  The Strategy was released on July 20, 2011.

The Strategy details the Federal government’s plan to enhance the management of electronics throughout the products’ lifecycle — from design to eventual reuse or recycling.

The Strategy set forth several items to be addressed over the coming years: development and publication of proper government-wide policy and guidance on the reuse and disposal of electronics including the use of certified recyclers for proper management of used electronics, acquisition of more sustainable electronics that can be easily reused and are designed to have a minimal end-of-life environmental impact, and transparency of newly-collected data regarding Federal government procurement, reuse, and disposal of electronics.

Reuse and Disposal of Electronics —

On February 29, 2012, GSA published Bulletin B-34 in the Federal Management Regulations, presenting a specific list of options to consider when excess electronics are identified.  Excess electronics should first either be offered to other Federal agencies for reuse through GSAXcess, or transferred to schools and other educational organizations.  In FY 2013, $32 million worth of equipment was transferred among agencies through GSAXcess and in the first quarter of FY 2014, $2.6 million worth of equipment was transferred.

Through GSA’s Computers for Learning Program, agencies may transfer excess computers and related peripheral equipment to schools and educational nonprofit organizations.   In FY 2013, $72 million worth of equipment was donated through this program and in the first quarter of FY 2014, $12.7 million worth of equipment was donated.   Approximately thirty agencies participate in GSA’s Computers for Learning Program each year.

Electronics not transferred through GSAXcess or donated to schools are declared surplus and are eligible to be donated through GSA’s Federal Surplus Personal Property Donation Program to State and local governments and nonprofit organizations.  In FY 2013, $4.6 million worth of equipment was donated through this program and in the first quarter of FY 2014, $513,000 worth of equipment was donated.8

Additionally, if electronics are not transferred or donated, the agency may sell, or, if a take-back provision exists,9  return the electronics to the original vendor.  GSA is incorporating these provisions into many of our contracts, and is also developing government-wide guidance about incorporating take-back requirements into all contracts.

Under GSA’s policy, Bulletin B-34, non-functional electronics should ultimately be directed to a third-party certified electronics recycler and should not be sent to landfills or incinerators.  Furthermore, all electronics recyclers listed on GSA’s Schedules must be third-party certified.10

Acquisition of More Sustainable Electronics —

Another goal of the Strategy is to promote the purchase of green electronics to reduce their life cycle environmental impact.  GSA continues to improve our contract vehicles in order to simplify Federal agencies’ acquisition of green electronics.

Currently, there are over 120,000 Energy Star products offered across several GSA Schedules.11   Focusing on Information Technology products, GSA is currently revising Schedule 70 (IT Equipment) to encourage vendors to provide Energy Star and EPEAT-registered electronics.  Additionally, used and refurbished electronics are already offered on Schedule 70 — $50 million worth of used and refurbished electronics were sold in FYs 2010-2013 and $2.5 million were sold in the first quarter of FY 2014.12

Within the GSA Advantage online shopping portal, environmental icons (such as Energy Star) are used to show the various attributes of listed products.  Additionally, GSA has developed an easy to use, web-based, Green Procurement Compilation tool which consolidates and displays products designated for Federal procurement by the EPA and the Departments of Energy and Agriculture as more sustainable.  Each item’s listing includes the item’s environmental certifications, where to buy the product and how to find vendors through GSA’s offerings.

In addition to the GSA Schedules, the National IT Commodities Program and the FSSI Print Management Program also offer Energy Star and EPEAT-registered electronics.  Both solutions require vendors to report their sales of Energy Star and EPEAT-registered electronics.  This reporting assists our customer agencies track their purchases of sustainable electronics.

With GSA’s internal acquisitions, we are committed to meeting the goals outlined in the Strategy.  In FY 2013, we purchased $4.3 million worth of Energy Star and EPEAT-registered products from various GSA procurement vehicles.

Additionally, we have been deploying Energy Star servers and workstations at GSA since 2001.  Servers and personal computers have been EPEAT-compliant since 2005 and EPEAT Gold since 2009, meaning that the equipment is built with reduced amounts of lead, mercury and other sensitive materials, incorporates recycled materials, and is manufactured in ways that simplify disassembly and reuse.

Transparency —

Transparency is a crucial part of the Strategy and one of the most challenging aspects of the plan.  Currently, although many e-waste recycling programs exist, there are no guidelines to measure their use government-wide.  GSA, working with other Federal agencies, is considering a policy that will include a requirement for agencies to submit data for all disposed electronics.  This data, which could be publicly available on Data.gov, would provide greater transparency into Federal agencies’ performance against the goals of the Strategy.

Conclusion —

The Federal government, as the largest purchaser of information technology in the world, has a unique responsibility to be a leader in the management and disposal of electronics.  GSA plays an important role in helping agencies meet the goals set forth in the National Strategy for Electronics Stewardship, through policy guidance and responsible acquisition, donation and disposal of electronics.  We have a lot more work ahead of us and hope to continue to make progress on this important issue.

I am pleased to be here today, and I am happy to answer any questions you may have.  Thank you.

__________________________________

1 http://www.epa.gov/osw/conserve/materials/ecycling/manage.htm.  Estimates are from 2009.  Id.
2 Id.
3 For a full list of Task Force members, visit: http://www.epa.gov/epawaste/conserve/materials/ecycling/taskforce/faq.htm.
4 The Strategy lists four goals: (1) Build Incentives for Design of Greener Electronics, and Enhance Science, Research and Technology Development in the United States; (2) Ensure that the Federal Government Leads By Example; (3) Increase Safe and Effective Management and Handling of Used Electronics in the United States; and (4) Reduce Harm from US Exports of E-Waste and Improve Safe Handling of Used Electronics in Developing Countries.
5 GSAXcess.  Valuations are based on original acquisition value.
6 Under E.O. 12999, agencies may also transfer computers and related equipment directly to schools.
7 GSAXcess.
8 GSAXcess.
9 GSA is incorporating some of these provisions in our contracts, such as in the Federal Strategic Sourcing Initiative (FSSI) Print Management Program.
10 Schedule 899 (Environmental Services).
11 GSA Advantage.  Energy Star products include: Copiers on Schedule 36 (Office, Imaging, and Document Solutions); Appliances on Schedule 51V (Hardware Superstore); Audio/Visual equipment on Schedule 58I (Professional Audio/Video Telemetry/Tracking; Recording/Reproducing and Signal Data Solutions); Camera battery chargers on Schedule 67 (Photographic Equipment); and Refrigeration equipment on Schedule 73 (Food Service, Hospitality, Cleaning Equipment and Supplies, Chemicals and Services).
12 Schedule 70.

SECRETARY HAGEL MAKES REMARKS ON NATO, ISAF, UKRAINE

FROM:   U.S. DEFENSE DEPARTMENT 
Hagel Highlights NATO Capabilities, ISAF, Ukraine
By Cheryl Pellerin
American Forces Press Service

BRUSSELS, Feb. 27, 2014 – Over two days of meetings here, discussions among NATO defense ministers focused on future alliance capabilities, the International Security Assistance Force in Afghanistan and NATO’s defense relationship with Ukraine, Defense Secretary Chuck Hagel said in his closing remarks here today.
Defense ministers from 18 of NATO’s 24 member nations, Ukraine’s Acting Defense Minister Oleksandr Oliynyk, NATO Secretary General Anders Fogh Rasmussen and his deputy, and member-nation permanent representatives participated.

Hagel reassured allies of the continued U.S. commitment to NATO and to its global responsibilities, and he told the ministers that President Barack Obama’s fiscal year 2015 budget request, which he will present to Congress next week, “preserves and protects key capabilities such as missile defense and other capabilities that we discussed today in our sessions. These capabilities underpin our commitment to European security.”

The U.S. defense strategy demands even closer partnership with European allies, he added.

“As allied nations confront fiscal pressure on both sides of the Atlantic, and as NATO transitions out of its combat mission in Afghanistan, many of us plan to field smaller military forces in the years ahead,” the secretary said, adding that with savings the U.S. military achieves through a smaller force, he intends to buy readiness, capability and combat power.

“We expect NATO allies to do the same,” Hagel said.
This is a time to set priorities, make difficult choices and reinvest in key capabilities all nations will need for the future, he said, including those that have been neglected over the past decade of war.

Ahead of September’s NATO summit in Wales, Rasmussen will focus on improving NATO’s military capabilities as a down payment on meeting shortfalls, the secretary added.

“As an alliance, we must invest in global reach, technological superiority and leading-edge capabilities like cyber and special operations,” Hagel said, adding that together NATO member countries must spend money on defense more strategically and effectively.

On Afghanistan, Hagel said, the conference offered a chance to take stock of accomplishments over 13 years.

NATO’s main objective in Afghanistan was to enable the Afghan authorities to provide effective security across the country and ensure that the country can never again be a safe haven for terrorists. Progress there can be measured by the growing confidence of Afghans in their national institutions and the Afghan national security forces’ leading role in securing the country, the secretary said.
“As we look beyond the end of our combat mission this year, I told ISAF ministers that the United States continues to support planning for a noncombat, NATO-led mission that would train, advise and assist Afghan forces after 2014,” he said.
“But the longer we go without a bilateral security agreement and a NATO status of forces agreement,” he added, “the more challenging it will be for the United States and other ISAF nations to support, plan and execute this post-2014 mission.”
Earlier this week, President Obama directed the U.S. military to begin contingency planning for Afghanistan that takes into account the lack of a signed agreement, Hagel said.

“We will ensure that adequate plans are in place to accomplish an orderly withdrawal by the end of the year should the United States [decide not] to keep troops in Afghanistan after 2014,” he said.

“Today in our ISAF session,” the secretary added, “we agreed that the alliance should also begin planning for various contingencies in Afghanistan while still supporting continued planning for the Resolute Support mission” that is expected to start Jan. 1.
Hagel commended Air Force Gen. Philip M. Breedlove and Marine Corps Gen. Joseph F. Dunford Jr. for their critically important leadership of the ISAF campaign, he said, particularly Dunford’s consistent, wise and steady leadership. Dunford is the ISAF commander in Afghanistan, and Breedlove commands U.S. European Command and NATO’s Supreme Allied Command Europe.

Today’s final session was the NATO-Ukraine Commission, the secretary said, adding that he was pleased to welcome that nation’s participation in the ministerial conference, given the rapidly evolving political situation in Ukraine.
“Today I affirmed America’s strong support for Ukraine’s territorial integrity and sovereignty, and NATO defense ministers made the same declaration in a joint statement,” Hagel said.

The ministers expect other nations to respect Ukraine’s sovereignty and avoid provocative actions, he added.

“That’s why I’m closely watching Russia’s military exercises along the Ukrainian border, which they announced yesterday,” Hagel said. “I expect Russia to be transparent about these activities, and I urge them not to take any steps that could be misinterpreted, or lead to miscalculation during a … time with great tension.”
The secretary said it’s important for all nations with an interest in a peaceful future for Ukraine to work together transparently to support a Ukrainian government that fulfills the aspirations of its people.

“Our session today also focused on Ukraine’s opportunities for defense reform and our ongoing military-to-military cooperation –- including Ukraine’s participation in NATO operations. And we welcomed the Ukrainian armed forces’ responsible decision to exercise restraint amidst the nation’s political turmoil,” Hagel said.
From Kandahar to Kiev, he added, 20 years ago no one could have foreseen how NATO contributes today to global security. With the United States’ strong support, Hagel said, NATO must continue to be a force for peace, prosperity and freedom in Europe and around the world.

“That is our responsibility in the 21st century,” the secretary said.

SECRETARY KERRY'S REMARKS ON ANNUAL COUNTRY REPORT ON HUMAN RIGHTS

FROM:  U.S. STATE DEPARTMENT
Remarks on the Release of the Annual Country Report on Human Rights
Remarks
John Kerry
Secretary of State
Press Briefing Room
Washington, DC
February 27, 2014

Well, good morning, everybody. Excuse me. I’ve got a little allergies this morning, I think.
I’m delighted to be here this morning for the second Human Rights report that I have issued as Secretary, and I’m particularly pleased to be here with our Acting Assistant Secretary for Democracy, Human Rights, and Labor, Uzra Zeya, who as I think all of you know, is performing these responsibilities in the capacity as an interim assistant secretary but who has done just a spectacular job and has led the Department in a year-long process to track and make the assessments that are reflected here. So I thank her for a job particularly well done on this year’s Human Rights Report.

The fundamental struggle for dignity, for decency in the treatment of human beings between each other and between states and citizens, is a driving force in all of human history. And from our own nation’s journey, we know that this is a work in progress. Slavery was written into our Constitution before it was written out. And we know that the struggle for equal rights, for women, for others – for LGBT community and others – is an ongoing struggle. And it’s because of the courage and commitment of citizens in each generation that the United States has come closer to living up to our own ideals.

Even as we come together today to issue a report on other nations, we hold ourselves to a high standard, and we expect accountability here at home too. And we know that we’re not perfect. We don’t speak with any arrogance whatsoever, but with a concern for the human condition.

Our own journey has not been without great difficulty, and at times, contradiction. But even as we remain humble about the challenges of our own history, we are proud that no country has more opportunity to advance the cause of democracy and no country is as committed to the cause of human rights as we are.

This year’s report, we think, is especially timely. It comes on the heels of one of the most momentous years in the struggle for greater rights and freedoms in modern history.

In Syria, hundreds were murdered in the dead of night when a disaster occurred at the hands of a dictator who decided to infect the air of Damascus with poisonous gas, and many more have been, unfortunately, confined to die under a barrage of barrel bombs, Scud missiles, artillery, and other conventional weapons.

In Bangladesh, thousands of workers perished in the greatest workplace safety disaster in history.

And from Nigeria to Russia to Iran, indeed in some 80 countries the world over, LGBT communities face discriminatory laws and practices that attack their basic human dignity and undermine their safety. We are seeing new laws like the Anti-Homosexuality Bill enacted by Uganda and signed into law by President Museveni earlier this week, which not only makes criminals of people for who they are, but punishes those who defend the human rights that are our universal birthright.

These laws contribute to a global trend of rising violence and discrimination against LGBT persons and their supporters, and they are an affront to every reasonable conscience, and the United States will continue to stand with our LGBT brothers and sisters as we stand up for freedom, for justice, for equal rights for all people around the world.

And so with this year’s report, we join with many other nations in reaffirming our commitment to a world where speaking one’s mind does not lead to persecution, a world where practicing or changing one’s faith does not lead to imprisonment, and where marching peacefully in the street does not get you beaten up in a blind alley or even killed in plain sight.

So let me be clear. This is not just some high-minded exercise. This is the most comprehensive, authoritative, dispassionate, and factual review of the state of human rights globally, and every American should be proud of it. That’s why Acting Assistant Secretary Zeya of the State Department’s Bureau of Democracy, Human Rights, and Labor and our embassies and consulates around the world have spent countless hours researching and writing these reports, engaging activists, talking to governments, and analyzing NGO and media reports. And that’s why they capture the attention of dictatorships and democracies alike.

This is about accountability. It’s about ending impunity. And it’s about a fight that has gone on for centuries, as long as human beings have been able to think and write and speak and act on their own. The struggle for rights and dignity couldn’t be more relevant to what we are seeing transpire across the globe. The places where we face some of the greatest national security challenges today are also places where governments deny basic human rights to their nations’ people, and that is no coincidence. And it is particularly no coincidence in an age where people have access and want access to more information and the freedom to be able to act – to access information and to be able to act on the basis of that information. That is what has always characterized democracies and free people.

It’s no coincidence that in North Korea, a UN commission of inquiry recently found clear and compelling evidence of wholesale torture and crimes against humanity, reports of people who have been executed summarily and fired at by artillery, fired at by anti-aircraft weapons, 122 millimeter aircraft weapons that literally obliterate human beings, and this has occurred with people in the masses being forced to watch, a form of gross and utter intimidation and oppression.

It’s no coincidence that the first use of a weapon of mass destruction anywhere in the last quarter century came from a dictatorship in Syria in trying to suppress a popular uprising, in trying to suppress the aspirations of young people who simply wanted jobs and education and opportunity.

It’s no coincidence that the brutal violence that we’ve seen recently in South Sudan and the Central African Republic is rooted in cycles of violence stemming from past abuses, marginalization, discrimination, and unwillingness to listen.

And so the United States of America will continue to speak out, without a hint of arrogance or apology, on behalf of people who stand up for their universal rights. And we will stand up in many cases for those who are deprived of the opportunity to be able to stand up for themselves.

We will do so in Venezuela, where the government has confronted peaceful protestors by deploying armed vigilantes, by imprisoning students, and by severely limiting freedoms of expression and assembly. The solution to Venezuela’s problems are not found through violence, and they will not be found through violence, but only through dialogue with all Venezuelans in a climate of mutual respect.

We will do it in Sri Lanka, where the government still has not answered basic demands for accountability and reconciliation, where attacks on civil society activists, journalists, and religious minorities, sadly, still continue. Our concern about this ongoing situation has led the United States to support another UN Human Rights Council resolution at the March session. We will do so because we know countries that deny human rights and human dignity challenge our interests as well as human interests. But we also know countries that advance those values, those countries that embrace these rights are countries that actually create opportunities.

From Yemen to Tunisia, which I just visited last month, we have seen how national dialogue and democratic progress can make countries more stable and make them stronger partners for peace and prosperity. In Ukraine, as we all just saw in real time in the last days, tens of thousands took to the streets to demonstrate against the power – to demonstrate again the power of people to be able to demand a more democratic and accountable governance, and to stand up even against those who would sniper from roofs and take their lives in the effort to have their voices heard.

In Burma, we continue to see a country that was isolated for so many years slowly moving away not just from dictatorship, but toward a more productive partnering with the United States and the international community.

So there are plenty of examples, folks, of places that choose a different road, and that strive to make it work. As today’s report makes clear, Burma still faces the normal challenges, from reforming an undemocratic constitution to ending discrimination and violence against religious and ethnic minorities, but we must continue to encourage progress even as we speak honestly about the problems that persist.

In my first year as Secretary of State, I have been very fortunate to see with my own eyes what we can accomplish when we see our power and use our power and influence to empower others to be able to change things for the better. I’m truly inspired by the civil society activists that I’ve met with in many of the countries I’ve been to – in Hanoi, for instance – people who are standing up for their fundamental rights to speak out and to associate freely. I’m inspired by the 86-year-old human rights pioneer I met in Moscow who has spent a lifetime fighting for the basic rights that we take for granted here in the United States. I’m inspired by a group of young southeast-Asian land rights advocates that I met at the ASEAN regional forum last year who understand that societal problems are best solved when the government works with civil society, not against it.

The truth is that some of the greatest accomplishments in expanding the cause of human rights have come not because of legislative decree or judicial fiat, but they came through the awesomely courageous acts of individuals, whether it is Xu Zhiyong fighting the government transparency that he desires to see in China, or Ales Byalyatski, who is demanding justice and transparency and accountability in Belarus, whether it is Angel Yunier Remon Arzuaga, who is rapping for greater political freedom in Cuba, or Eskinder Nega, who is writing for freedom of expression in Ethiopia. Every single one of these people are demonstrating a brand of moral courage that we need now more than ever.

This year there is actually another name on all of our minds, and that is, of course, the first Human Rights Report since the passing of one of the most courageous individuals of all time, Nelson Mandela. Mandela was more than an inspiration; he was a model. All over the world, I have been in homes and offices where his unmistakable face was on posters and prints. I’ve met so many young kids named Nelson in Africa, but in so many other places where people are aspiring for real change. His influence was just that powerful. Even in his absence, the example that he set will long endure. We carry on his work for those who are walking picket lines, who are sitting in prison cells sometimes unknown to anybody except their family, who are protesting from Cairo to Caracas to Kyiv.

And we have to ask ourselves, as we do this: If we don’t stand with these brave men and women, then what do we stand for and who will stand with them? And if we don’t give voice to those who are voiceless, then who do we speak for and who will give voice to them? The demand for human dignity I believe, President Obama believes – I think all of us believe in this country – is unstoppable. And today we reaffirm our commitment to stand with the many who seek dignity and against the few who deny it.

That’s how we live up to our ideals. That’s how we will meet the demands of this moment. That’s how we will build a more stable and peaceful world.

And before I turn things over to Uzra, let me leave you with one final thought. We obviously have a big agenda. You can see that. And that means we need our full team on the field so that we can get to work. Frankly, it’s unacceptable that so many of our nominees – countless numbers of ambassadors to very important countries are awaiting confirmation. Our national security is not served by keeping many professionals, people who have waited patiently, in a perpetual limbo. Neither is our ability to support democratic rights and aspirations of people all over the world enhanced by what is happening.

Let me give you an example, for instance, of what is happening to Tom Malinowski. Tom is a human rights champion whom the President has picked as his nominee to be the next Assistant Secretary for Democracy, Human Rights, and Labor. Tom has strong bipartisan support. We know of no objection to his nomination – none – and yet, he has been waiting more than 220 days to be confirmed.

So now is the time to send a strong signal that we are not content to sit on the sidelines. I ask and I hope that our colleagues in the Senate will help Tom Malinowski get on the job so that we can continue to lead in these very kinds of issues that I have just laid out here today. We are ready to lead, and that’s when America is at its best, and that’s the vision that has always inspired people. And it always will. And it’s with that understanding that we are committed to continue this important work to defend the rights of people all around the world. That’s how we became a nation, and that’s how we will stay the nation that we want to be.

With that I thank you very much, and I will leave it in the good hands of Uzra. Thank you.

REMARKS BY SECRETARY OF STATE KERRY, GERMAN FOREIGN MINISTER STEINMEIER

FROM:  U.S. STATE DEPARTMENT 
Remarks With German Foreign Minister Frank-Walter Steinmeier After Their Working Lunch
Remarks
John Kerry
Secretary of State
Benjamin Franklin Room
Washington, DC
February 27, 2014

SECRETARY KERRY: Good afternoon, everybody. It’s my great pleasure to welcome Foreign Minister Steinmeier of Germany to Washington this afternoon. And I’m really happy to be able to do this because the foreign minister and Chancellor Merkel gave me a terrific welcome and hosted me in Germany about a month ago, and it’s nice to be able to return the favor so quickly. The chancellor[1] will be here for – through tomorrow and he’ll have a series of meetings in Washington on a number of the topics we discussed today, and we very much welcome Chancellor Merkel’s upcoming visit. Our nations are both old friends and close friends, and we have the ability to talk candidly with each and to find a way to cooperate together on critical issues that engage both of us.

Frank-Walter and I spoke candidly about how we can continue to move beyond some of the current tensions that have existed and to deepen our transatlantic ties. And I appreciate the conversation that we’ve just had enormously. We had the opportunity to discuss our bilateral relationship at length, including finding the right balance between security of our citizens and the privacy of our citizens. And that is a discussion which the foreign minister will continue while he’s here in Washington and particularly tomorrow have a couple of meetings on it.

At the direction of President Obama and Chancellor Merkel, we’ve been discussing additional steps to strengthen our intelligence cooperation, and we are going to continue that conversation in the months ahead. And I certainly appreciate the serious and appropriate way in which Germany is engaged with us in that discussion.

We discussed today how to deepen and broaden our existing partnership with respect to a number of global challenges, cybersecurity being one of them, obviously. And our experts are going to meet tomorrow morning on that.

Obviously, Ukraine is at the forefront of our minds, and we spent a fair amount of our lunch talking about Ukraine. I’m very grateful to the foreign minister for his leadership, his personal leadership, his engagement with several other foreign ministers who went to Kyiv and become engaged and helped to shape, particularly with Foreign Minister Steinmeier’s leadership, the agreement that was reached.

The United States really is appreciative of that kind of leadership. It’s a shared burden, and I know that together with our French and Polish colleagues – and I talked earlier today with Polish Foreign Minister Radek Sikorski – together we were able to make – create a framework within which this change was able to be carried out after the huge violence that took place in a mostly peaceful way after that.

Today, the Rada voted overwhelmingly to approve a new transition government – technical government, importantly – and that technical government will serve until the election can be held in May. We – the United States welcomes this development and we look forward to working closely with this transitional government.

This morning, I called Foreign Minister Lavrov and we talked at some length about the transition and the events in Ukraine and in the region. And I asked specifically that Russia work with the United States and with our friends and allies in order to support Ukraine, to rebuild unity, security, and a healthy economy. And we also discussed the very tense situation in Crimea. I think it’s very important to underscore that Foreign Minister Lavrov relayed to me directly from President Putin a reaffirmation of the conversation that President Putin had over the weekend with President Obama. And he stated that both the military exercise which has been conducted is not related to the Ukraine and was previously scheduled, but also – importantly – reaffirmed President Putin’s statement that Russia will respect the territorial integrity of Ukraine.

And we believe that everybody now needs to step back and avoid any kind of provocations. And we want to see in the next days ahead, obviously, that the choices Russia makes conform to this affirmation that we received today. We are also making the same point about reducing tensions in Crimea to the Ukrainians, and it is very important that the process continue in a thoughtful and respectful way.

Let me also reiterate that as we see this technical government come into place, I want to confirm that the United States supports and welcomes this democratic step that has been taken today by the Rada to create this transitional technical government. And we look forward to working with this new government to restore national unity, security, and the protection of the rights of all Ukrainians, and that includes all minorities. We also strongly support the new government’s decision to work closely with the IMF in order to stabilize the economy, and we will support these efforts that provide bilateral support in conjunction with the IMF program. And that is our objective over these next days.

Frank-Walter and I also discussed other regional issues, including our shared interest in completing the ambitious Transatlantic Trade and Investment Partnership. The United States and Germany already enjoy very strong economic ties, but we both know that TTIP would lead to even more investments, more innovations, more trade, and ultimately more jobs with more economic growth in our countries as well as throughout Europe.

And finally, we discussed our shared efforts to promote peace and stability around the world. The United States welcomes Germany’s growing role in addressing global challenges. We really value Germany’s support in Afghanistan, where Germany’s ISAF contributions have been essential, along with their commitment to a post-2014 NATO mission and their financial support for the Afghan security forces.

We also value Germany’s support in the Middle East. Chancellor Merkel just made a trip to the Middle East, and I am enormously appreciative for the support that Germany is giving to the Middle East peace process and their continued interest and effort to try to help not only support us in that but bring about a final status agreement.

We also are very appreciative for Germany’s key role as a P5+1 member in the effort to try to reach agreement with Iran over Iran’s nuclear program. And we talked a little bit about that and the prospects for that over the next days. Germany joins us in making clear to everybody that Iran is not open for business, that the sanctions regime continues, and that we will maintain unity within the P5+1 as we proceed forward in this negotiation.

We value also Germany’s increasing international pressure on the Assad regime to bring about an end to the horrific war in Syria, and we talked about some of the challenges that we face with respect to the road ahead.

So Frank-Walter, you said recently that Germany is just too big to comment on world events from the sideline, and I want you to know that we couldn’t agree more. We all need Germany as a partner in these efforts. We need you on the field and engaged, and we welcome that. In Munich, I called for a transatlantic renaissance starting in 2014, and today I want to underscore that the renewal that we need is also an important strengthening of the relationship and engagement between Germany and the United States.

So I look forward to continuing to work closely on the wide range of issues that face our countries, the region, and the world, and we’re grateful to have a strong partner like Germany in that effort. Thank you, sir.

FOREIGN MINISTER STEINMEIER: (Via interpreter) Thank you, not only for inviting me here but also for the very friendly words you found right at the beginning of this press conference. I’ve only been in office for roughly 10 weeks, and we’ve met quite often, given the shortness of my term in office. We’ve met in Geneva and in other parts of the world. I am delighted about that, and I would wish to see that frequency be kept up.

But of course, the frequency of our exchanges is also tied to the international challenges we have to confront these days. Thus I would like to begin by thanking you for the initiative you have taken to make sure that the two-state solution for the Middle East can become a reality. Many efforts had been undertaken in the past that have failed, and I’m happy to see that you are engaging like hardly any other person. You are putting your political career at stake in a way, working for this two-state solution, engaging with energy and stamina, trying to convince both sides, trying to be successful where others failed before you. I very much hope that both parties in the Middle East – the Israeli Government and the Palestinian leaders – are aware of the fact that this provides an opportunity that both have to seize. They have to do that and they owe it to their respective peoples.

Now, in the immediate vicinity of Israel and Palestine, a dangerous conflict has arisen where until now we have not succeeded in putting an end to the bloodshed. The number of casualties of people who have died in the war in Syria is going into the thousands, and especially the neighboring region is affected, for refugees are fleeing to Lebanon, to Jordan, to Turkey, millions of them. And the suffering is immeasurable and it continues. The conflict is hardening and it is no longer only a battle between the government and the opposition of Syria, but it is a battle, a fight between different groups of the opposition.

We should take that as a warning, a word of caution to us to make sure that the Syria conference that in Geneva has not brought the hoped-for success – that this conference ought to continue, and we ought to apply greater strategic strictness in doing so. Mr. Brahimi, who is heading the negotiations, happens to be in Germany right now. We are in close touch with him and we are trying to convince both sides, all parties involved, of the need for a new beginning in order to see that the talks which have proven – have not proven successful so far can succeed at the end of the day.

Some of the parties involved in the Syria conference have to do their bit. We have to impress upon them that they cannot use their negotiations in order to simply play for time. They both, in the face of the suffering of the people of Syria, have to do their bit. They have to give access to humanitarian aid organizations so that they can reach out to the threatened parts of the population. And we very much hope that at least in parts of the country, a ceasefire can be agreed upon.

Of course, these days, there is one issue that is dominating our agenda and is very much on our minds. John Kerry mentioned it and made a decisive reference to the ongoing development in the Ukraine. The bloodshed in Ukraine has been stopped and we are all happy and relieved to see that that is the case. But nevertheless, Ukraine continues to be a major challenge. In the last few days since the agreement was signed between the political leadership and the opposition in Ukraine, we have witnessed that. We have seen a stormy development going far beyond the timeline that we had set ourselves only a week ago.

Today, an interim government has been appointed, mainly a government consisting of technocrats. That is good. We wanted to see a government in power quickly, speedily, that not only assumes responsibility for the decisions that have to be taken, but that can also act as a partner for negotiations with the international community, also when it comes to assessing the need for support and aid and financial support.

I underline what John Kerry just said – it’s not sufficient to form a government as such. The government now has to prove or furnish proof of the fact that it is the government of the whole of Ukraine – the north, the south, the east, and the west – that they actually stand up for those parts of the country. I, for one, believe that legislative measures to insure the disadvantaged minorities in the Ukraine, as have been taken recently, have to be made redundant. We have to make sure that that is the case. What has to be done now – and I hope that all the parties involved attend to this – is to ensure the territorial integrity of Ukraine. If one were not to attend to that, we would create tension and create instability in the region as a whole, and we cannot allow that to happen.

This is why both of us – the United States of America and Germany – place great value on the fact that given the critical situation, the country, the Ukraine – Ukraine is given some breathing space, a reprieve in order to stabilize the situation on the ground. It ought not to be our ambition at this particular point in time to draw the Ukraine – draw Ukraine towards the west or the east, Russia to the east, we, the European Union, through the west. Ukraine needs a reprieve, as I said. They need time to find footing again.

We ought to strive hard as Europeans with our partners in Europe, with the United States, with the IMF, hopefully also together with Russia, to make sure that the country – that Ukraine is given and granted the financial assistance it dearly needs in order to not be left behind in the next few days.

Dear John Kerry, we’ve been able to talk about all these matter in a sense and spirit of trust and confidence because we’re working on the foundation of a long, traditional partnership. It has grown over the decades and the years. It is based on shared values. It is a foundation that allows us to also sometimes disagree and to openly speak about it. This is why we use the opportunity today to also speak about the recent reporting over the last few weeks and months regarding activities – or, rather, surveillance activities, eavesdropping and monitoring the mobile phones of members of the German Government and others. We talked about it. And we both agree that we cannot leave it at that between both administrations. We have taken note of the fact that we have different views as regards the meaning of security and privacy, and I think we have to talk about this in a spirit of seriousness.

I am very happy to see you, and I’m grateful to you, John. I’m happy to see that the debate that has been mainly led by the media now leads us to a serious dialogue involving all the stakeholders, involving also members of civil society, a bilateral cyber-dialogue, which is to be initiated starting today. I know that the United States are quite ambitious as far as that is concerned; I will have the pleasure to meet with John Podesta tomorrow who is responsible for the review of big data and the future of privacy here in the United States. I believe that that will provide us this – provide us with the forum to talk about our different views, but also work together – let us work together in order to define privacy and protection of civil liberties.

I’m also delighted to see that though we have a conflict here in our bilateral relations, we are both working hard together. You spoke of the renaissance, and I think part and parcel of that renaissanc,e is a very ambitious project we’re negotiating right now. TTIP, I believe, constitutes a major opportunity we ought to seize. It’s not about uniformity. This is not what it is about, TTIP. Rather, we want to maintain and protect diversity in Europe amongst the individual European countries and the United States. But what we want to do is to do away with hurdles, which make it more difficult to reach out to each other. That’s the more difficult part of it. And we’re trying to achieve this in a spirit of great transparency as far as the Europeans are concerned with regard to publishing where we are making progress in the negotiations. And I hope that we will be able to take our public along, our people along on that path.

Thus, we had a very substantial agenda internationally, but also bilaterally – a very busy schedule. We’ve met four times in the last four weeks, and I think it won’t be – we will keep up. We will keep up that interval in the next few weeks to come. Thank you.

MS. PSAKI: (Inaudible) will be from Catherine Chomiak of NBC News.

QUESTION: Thank you very much. Mr. Secretary, just a follow-up on Ukraine on two things that you mentioned in your remarks. On the Crimea region, we saw armed gunmen seize the parliament building and raise the Russian flag. Did Mr. Lavrov give you assurances that they were in no way operating under the auspices of the Russian Government?

And also on the troop movements, whether they were pre-planned or not, it’s hard to see how this doesn’t increase tensions in that region. How concerned are you by these exercises, and did you ask Mr. Lavrov to postpone or scale down them? And today, Mr. Yanukovych said that he’s still the lawful president of Ukraine. What do you say to that?

And to Mr. Foreign Minister, how much money is the EU willing to give Ukraine to stand up its economy? Thank you.

SECRETARY KERRY: Well, Catherine, with respect to the events and the takeover of the Rada today, yes, of course, we talked about it. And he has said – he indicated to me that he’d actually watched it on TV and he’d seen what had happened, but he disclaimed that they had anything to do with any formal Russian initiative. And on the contrary, they’re concerned about it, and he expressed a concern about it.

They at least expressed concern that they do not want to see a breakdown into violence and into any kind of sectarian initiative, and I think they understand that to keep faith with their affirmation about protecting the territorial integrity, you can’t be encouraging a separatist movement or some other effort. The – I indicated to him that the minister of defense acting at that point in time was traveling to the region in order to indicate that they were fully prepared to live up to the Sevastopol port agreement with Russia. They had no intention of changing any of the existing laws or agreements, and that they fully intended to uphold the rights of all minorities.

And we talked today with Foreign Minister Steinmeier about one entity or another. There are several that have been proposed that might be able to be engaged in Ukraine to help in any kind of mediation and resolution of these kinds of questions. With respect to – but I think we all have to understand that nowhere is there a greater connection to or link to Russia in several different ways than there is in Crimea, but that as the days unfold, this should not become a tension or a struggle between the United States, Russia, East, West, et cetera. This is about the people of Ukraine being able to make their decisions. And I said that to the foreign minister, and the foreign minister confirmed that this is about the people of Ukraine writ large, not one group or another. So that’s what we’re focused on.

With respect to the fleet and exercises, I don’t think that they are so long or prolonged that it is something that is going to have an impact on the events there. And I think the very specific message from President Putin is one that we need to process. But as I said earlier, we will look to Russia for the choices that it makes in the next days for their confirmation of these statements. Statements are statements, words are words. We have all learned that it’s actions and the follow-on choices that make the greatest difference.

So we will watch very careful and very hopefully that Russia will join us in the effort to help shore up the economy, hold the country together, and provide a road forward. We are absolutely ready, all of us, to welcome Russia to the table of creating a democratic, pluralistic, fully inclusive Ukraine according to what the people of Ukraine are defining. It’s not our choice. It’s not Russia’s choice. It’s the choice of the people of Ukraine. And they spoke very clearly when their legislature voted to impeach the existing president and to move on to a new technical government. This was their movement, spontaneous, speedy, definitive, without any encouragement from the outside. In fact, I think most of us were taken quite by surprise by those events.

So that said, with respect to Mr. Yanukovych, Mr. Yanukovych left the field of engagement. He voluntarily departed, and he signed an agreement, and then without signing the law that was the precondition to the implementation of the rest of the agreement, he departed and took off to parts unknown and was unavailable to those of us who were trying to reach him. The Vice President of the United States had a call in to him for some 12 to 14 hours, unanswered. So I think it is clear that events have now overtaken whatever legitimacy he claimed. There is now a government, and we are looking forward to working with the government that was appointed by the legitimately elected members of the legislature and through their legitimate process.

FOREIGN MINISTER STEINMEIER: (Via interpreter) The political future is in the hands of the Ukrainians. It is for them now to decide about their future, and I hope they will do so in a way that will allow for an inclusive government that considers itself to be responsible for the people of the country as a whole. As far as economic support is concerned, I don’t think the people of Ukraine will be able to master the challenge on their own. Too many negative decisions and faulty decisions have been taken by the previous government, and Ukraine finds itself in a dire economic situation, and I don’t think they can master that challenge on their own.

But I’m not only looking to Ukraine when I’m saying what I’m going to say now. I think this would also be true for each and every one of us. Given the situation of the country and the depth of the economic crisis, anyone present here would be challenged in a way he could not cope on his own. Thus it would be good for all of us to get our support coordinated. Let us all come in and help the IMF, the United States of America – I will meet Christine Lagarde tomorrow morning. Hopefully, Russia will come in and help. We hope they also will engage in the efforts to stabilize the economic situation in Ukraine. No one will benefit from this country teetering on the brink of bankruptcy. We need political stabilization to be accompanied by economic stabilization.

Before coming to the question you put to me, how much is the European Union going to make available, before I address that question, we will have to figure out how much Ukraine needs. We have heard many different figures being placed on the table. It’s difficult for anyone to give you an exact idea of how much Ukraine needs. Yanukovych has kept the figures hidden under his desk. We very much hope that the new prime minister of Ukraine happens – who happens to be a former head of a central bank, and I think thus he will be much better suited than many other people to assess the situation.

I’m pleased, though, that Christine Lagarde has already announced that a team of experts of the IMF will leave already tomorrow in order to provide us with the respective data and give us an idea of the dimension of the challenge we have to address. I hope that the IMF stands ready to provide funds from a kind of emergency fund. Quick assistance is what’s required. I heard – I was delighted to hear that the United States are also standing ready to assist, roughly $1 billion, and the European Union would probably also follow suit about the same amount of funds.

Right now – and I beg your understanding for the fact – we are at a point where we have to admit that these decisive steps have only been taken in the last few days. And the international organizations, the European Union, all the countries are still trying to identify what best to do. But I think we’re all quite aware of the responsibility we have to bear and the need for assistance to be granted by us.

MS. PSAKI: The next question will be from Martin Klingst of Die Zeit.

QUESTION: Thank you very much. Mr. Secretary, Mr. Foreign Minister, do you both trust President Putin? And vice versa, can he trust you? What are you going to – what are you willing to offer him that you keep Russia engaged?

And is Ukraine’s possible membership in the EU and NATO still on the table, or do you think also about other options, like Mr. Brzezinski, the Finland option, keeping Ukraine or taking Ukraine as a member into the EU but keeping it out of NATO? And what can you do to support the respect for minorities in Ukraine? Are you willing to link the support to economic support?

And are you going home, Mr. Foreign Minister, with concrete offers of confidence-building measures regarding NSA and the surveillance matters? Do you have anything concrete in your hand to calm the German public? Thank you.

FOREIGN MINISTER STEINMEIER: (Via interpreter) First, as regards Ukraine, I think you will understand that we are trying whatever we can in order to make sure that we get our acts together and that we don’t sort of split up international responsibility and everyone is to pursue his or her individual interest. That is what I tried – is the point I tried to make at the beginning. Let’s not focus on attracting the Ukraine, attracting Ukraine more to the East or the West. This is not the task at hand. This is not the central task we have to attend to. This is not what I would identify as the basic needs of Ukraine.

This is also why we have undertaken manyfold efforts – I am one of the people who’ve done so – to tell Ukraine that the end of the bloodshed and our endeavors to bring that about was not directed against Russia in any way. I think it was something that had to be done. We wanted to avoid a civil war in Ukraine. Preventing such a civil war ought also to be in the interest of Russia, and thus I appeal to Russia, I urge Russia, to also participate in the endeavors that will be undertaken now.

I know that there are expectations on the part of minorities, especially on the part of the Russian minority in Ukraine. They want their rights to be respected. And I believe that protecting the rights of minorities is something that the new government has to provide for and has to be very clear and outspoken, not only in their words but also with the respective legislative action. In the coming days we will be in a position to see whether it will be possible to make sure that the international community, in conjunction with Russia, will work in the same direction and stand side by side in order to impress this upon Ukraine.

As regards your second question, if you were referring to the fact that I had come here expecting that this was the way in which the day* ought to go and that John Kerry would then hand over a signed no-spy agreement to me saying me – saying to me at the same time, good that we talked about it, this is not what brought me here. And the last few weeks and months have made it clear that this a bit more complicated than that, and this is why I said we have to realize that at this point in time we don’t always agree, we do have different assessments as regards the importance of privacy and security and granting civil liberties. We have different perspectives, different assessments. But in making that point, I am not going to say that we have to begin negotiating a bilateral no-spy agreement, but we have to talk about the fact that we are not always in agreement here, explain our point of view, describe our arguments. Our arguments are not always shared by the other side, but there will be points where we perhaps won’t ever be able to agree 100 percent.

This is why I said, given the efforts that have been undertaken in the past and that will no doubt continue in the weeks and days to come in the framework of the European Union, negotiating with the United States on a data protection agreement and negotiations that will continue between the European Union and the United States of America about adding to and complementing the Safe Harbor Agreement. But alongside with these endeavors we have to have an honest and frank dialogue about the future of protecting privacy in the age of the internet. And I’m happy to see that the American side has accepted that wish that we have expressed and is willing to talk to us about this, not only at the level of the respective administrations’ governments, that is, but also involving the stakeholders and civil society in that dialogue.

SECRETARY KERRY: I’ll just comment very quickly on the last part of the foreign minister’s answer to your question, and I just want to make it clear from an American perspective. When I was in the United States Senate, I was a coauthor, with Senator John McCain, of the Internet Privacy Act. And I also was a powerful proponent for internet neutrality. And I have always maintained that it is critical to have an internet that has an open architecture. And that’s the way the internet works most effectively. That’s the way most of our countries will be well served.

At the same time, I well understand the need to have a balance. I mean, as the author of the Privacy Act, where we were clearly trying to prevent – protect people, I’m more than acutely aware of the need for people to have their information, their rights, protected, their information protected. Their personal protection, their medical, all of that, needs to be protected. But I’m also well aware that we live in a very dangerous world, that there are many people plotting very dangerous acts in all parts of the world. No one is free from this.

Currently in Syria, there are in the – somewhere in the range of 7- to 11,000 foreign fighters. And those foreign fighters are learning the worst methods of persuasion – terror. And many of them will return to the countries from which they have come. And that includes many countries in Europe, it includes the United States, it includes Australia, it includes parts of the Middle East, South Central Asia, and Asia. And I’ve talked to leaders in those countries who are deeply concerned about what those people may do when they return to their country.

So we have a global interest in trying to know what terrorists are going to do before they do it. There was information available to people before the events of 9/11. There were telephone conversations made back and forth and so forth. We believe there’s a balance that permits law enforcement and national security to be preserved in their interests and also to preserve privacy. There have been instances where it’s gone over a line. President Obama has said that. That’s why he engaged in the most far-reaching reevaluation and review of our practices, and that’s why he issued new instructions in order precisely to deal with this issue.

So Germany does not have a protagonist here – an antagonist. We’re not adversarial. We have the same interest. And we want to make sure that all of our citizens are protected in both ways, in their privacy and in their security. And we believe there’s a balance, and we’re determined to try to get at that through a reasonable and thoughtful discussion, and I appreciate the foreign minister’s approach to it.

With respect to President Putin and the issue of trust and the question of what’s going to unfold with respect to Ukraine, let me say this. The conduct of foreign affairs is based on relationships and on discussions and the exchanges that leaders have, but it is not based solely on trust in any case that I know of. It’s always based on a concrete set of actions that people agree to take or agree to refrain from. We learned this a long time ago with Ronald Reagan and Gorbachev, where they said trust but verify. In this case, we’re not just – and I said this in my last answer – this is not about words. It’s about actions. And we will look in the days ahead to see the confirmation of the words in the choices that are taken, and I think we’d be naive otherwise.

But I don’t want to suggest that when the leader of a country tells you he’s going to do or she is going to do something, that you shouldn’t take some value in that and try to work with it. That doesn’t mean that’s all you’re relying on. And so we will work in the days ahead to come up with a process that assists all of us in guaranteeing a transition.

And with respect to the reforms and the IMF and the protection of minorities, part of the IMF will rely on reforms. Reforms will have to be taken. And clearly, to the degree the Congress of the United States or others are going to be prepared to put either a loan guarantee or a direct budget assistance agreement on the table, it’s going to require that Ukraine is moving in a certain direction that is able to be understood and measured, that it’s accountable. And I think everybody will look for accountability as we go forward.

But again, it’s important to note that these are just the beginning days. They’re always the most complicated. I think it is a good sign that within a few days the government has now been announced. It’s a technical government. We know some of the players who are involved in it. They are capable and they are people we believe we can work with effectively in order to get to elections so the people of Ukraine can make their decision.

Final part of your question: With respect to the Association Agreement and with respect to NATO, obviously, the people of Ukraine have to make their decision. This is not our decision. This is their decision. That’s part of what prompted this upheaval in the first place. My counsel to Ukrainians – unasked for but nevertheless, I think, may be pertinent – would be to focus on the things that need to be focused on now. Let the election be about the choices of the future. That’s a good thing to have a platform on and to run on. It’s a good thing for the people to have a chance to vote for.

And I think it would be good for all the parties concerned to allow some space here. This should not be solely about NATO or consolidation or association. This should be about the democratic process, the economy, the ability to protect minorities, the ability to pull Ukraine together. And I think they would be well served to hold off on those other issues until that choice has been made by the people and they have a government chosen by the people that is ready to move forward on those kinds of choices.

MS. PSAKI: Thank you, everyone.

SECRETARY KERRY: Thank you all.

Thursday, February 27, 2014

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT FOR WEEKENDING FEBRUARY 22, 2014

UNEMPLOYMENT INSURANCE WEEKLY CLAIMS REPORT
          SEASONALLY ADJUSTED DATA

In the week ending February 22, the advance figure for seasonally adjusted initial claims was 348,000, an increase of 14,000 from the previous week's revised figure of 334,000. The 4-week moving average was 338,250, unchanged from the previous week's revised average.

The advance seasonally adjusted insured unemployment rate was 2.3 percent for the week ending February 15, unchanged from the prior week's unrevised rate. The advance number for seasonally adjusted insured unemployment during the week ending February 15 was 2,964,000, an increase of 8,000 from the preceding week's revised level of 2,956,000. The 4-week moving average was 2,954,750, an increase of 4,000 from the preceding week's revised average of 2,950,750.

UNADJUSTED DATA

The advance number of actual initial claims under state programs, unadjusted, totaled 310,816 in the week ending February 22, a decrease of 10,598 from the previous week. There were 310,389 initial claims in the comparable week in 2013.

The advance unadjusted insured unemployment rate was 2.6 percent during the week ending February 15, unchanged from the prior week. The advance unadjusted number for persons claiming UI benefits in state programs totaled 3,384,598, a decrease of 26,636 from the preceding week. A year earlier, the rate was 2.7 percent and the volume was 3,536,462.

The total number of people claiming benefits in all programs for the week ending February 8 was 3,486,060, a decrease of 26,388 from the previous week. There were 5,764,168 persons claiming benefits in all programs in the comparable week in 2013.

No state was triggered "on" the Extended Benefits program during the week ending February 8.

Initial claims for UI benefits filed by former Federal civilian employees totaled 1,178 in the week ending February 15, a decrease of 21 from the prior week. There were 1,676 initial claims filed by newly discharged veterans, a decrease of 439 from the preceding week.
There were 22,308 former Feder
al civilian employees claiming UI benefits for the week ending February 8, an increase of 776 from the previous week. Newly discharged veterans claiming benefits totaled 29,570, a decrease of 100 from the prior week.

The highest insured unemployment rates in the week ending February 8 were in Alaska (6.1), New Jersey (4.2), Rhode Island (4.2), Pennsylvania (3.9), Connecticut (3.8), Illinois (3.8), Montana (3.8), California (3.7), Wisconsin (3.7), and West Virginia (3.6).

The largest increases in initial claims for the week ending February 15 were in California (+5,832), Michigan (+2,129), Oregon (+1,574), Missouri (+1,045), and Nevada (+196), while the largest decreases were in Georgia (-7,759), Pennsylvania (-3,677), Wisconsin (-3,227), Illinois (-2,780), and North Carolina (-2,644).

BIG CHILL BRINGS BIG ICE OVER THE GREAT LAKES

FROM:  NASA

On Feb. 19, 2014 the Moderate Resolution Imaging Spectroradiometer (MODIS) aboard NASA’s Aqua satellite flew over the Great Lakes and captured this striking false-colored image of the heavily frozen Great Lakes – one of the hardest freeze-ups in four decades. According to the National Oceanic and Atmospheric Administration (NOAA) Great Lakes Environmental Research Laboratory (GLERL), ice cover on North America’s Great Lakes peaked at 88.42% on Feb. 12-13 – a percentage not recorded since 1994. The ice extent has surpassed 80% just five times in four decades. The average maximum ice extent since 1973 is just over 50%. Unusually cold temperatures in the first two months of the year, especially in January, are responsible for the high ice coverage. Very cold air blowing over the surface of the water removes heat from the water at the surface. When the surface temperature drops to freezing, a thin layer of surface ice begins to form. Once ice formation begins, persistently cold temperatures, with or without wind, is the major factor in thickening ice. This false-color image uses a combination of shortwave infrared, near infrared and red (MODIS bands 7,2,1) to help distinguish ice from snow, water and clouds. Open, unfrozen water appears inky blue-black. Ice is pale blue, with thicker ice appearing brighter and thin, melting ice appearing a darker true-blue. Snow appears blue-green. Clouds are white to blue-green, with the colder or icy clouds appearing blue-green to blue.  Image Credit: NASA/Jeff Schmaltz, MODIS Land Rapid Response Team, NASA GSFC.

WHITE HOUSE, FDA ANNOUNCE NEW NUTRITION FACTS LABEL

FROM:  THE WHITE HOUSE 
The White House and FDA Announce Proposed Updates to Nutrition Facts Label

First Lady Michelle Obama and FDA Commissioner Margaret Hamburg announce proposed updates to the Nutrition Facts label as part of an effort to help families make healthier choices 

Washington, DC – Today, First Lady Michelle Obama joined Secretary of Health and Human Services Kathleen Sebelius and FDA Commissioner Margaret Hamburg at the White House to announce proposed revisions to the Nutrition Facts label, which has been significantly updated only once since its initial release twenty years ago.  The Nutrition Facts label is found on roughly 700,000 products.  The updates announced today support the First Lady’s Let’s Move! initiative in its ongoing efforts to provide parents and families with access to information that helps them make healthier choices.

“Our guiding principle here is very simple: that you as a parent and a consumer should be able to walk into your local grocery store, pick up an item off the shelf, and be able to tell whether it’s good for your family,” said First Lady Michelle Obama.  “So this is a big deal, and it’s going to make a big difference for families all across this country.”

The proposed updates are intended to reflect the latest scientific information about the link between diet and chronic diseases such as obesity and heart disease.  The proposed label would also replace out-of-date serving sizes to better align with the amount consumers actually eat, and it would feature a fresh design to highlight key parts of the label such as calories and serving sizes.

“For 20 years consumers have come to rely on the iconic nutrition label to help them make healthier food choices,” said FDA Commissioner Margaret A. Hamburg, M.D. “To remain relevant, the FDA’s newly proposed Nutrition Facts label incorporates the latest in nutrition science as more has been learned about the connection between what we eat and the development of serious chronic diseases impacting millions of Americans.”

Some of the FDA’s proposed changes to the Nutrition Facts label are:

Require information about the amount of “added sugars” in a food product. Based on the 2010 Dietary Guidelines for Americans determination that calorie intake from added sugar is too high in the U.S. population and should be reduced.  The FDA proposes to include “added sugars” on the label to help consumers know how much sugar has been added to the product.
Update serving size requirements to reflect the amounts people currently eat. What and how much people eat and drink has changed since the serving sizes were first put into place in 1994.  By law, serving sizes must be based on the portion consumers actually eat, rather than the amount they “should” be eating.
Present calorie and nutrition information for the whole package of certain food products that could be consumed in one sitting or in multiple sittings.
Refresh the format to emphasize certain elements, such as calories, serving sizes and Percent Daily Value, which are important in addressing current public health problems like obesity and heart disease.

CHILEAN SHIPPING SERVCIES COMPANY PLEADS GUILTY IN ANTITRUST CASE

FROM:  U.S. JUSTICE DEPARTMENT
SOUTH AMERICAN COMPANY AGREES TO PLEAD GUILTY TO PRICE FIXING
ON OCEAN SHIPPING SERVICES FOR CARS AND TRUCKS
First Charges in the Department’s Antitrust Investigation Involving Ocean Shipping Services; Conspiracy Affected Global Cargo Shipments, Including at Port of Baltimore

WASHINGTON — Compañía Sud Americana de Vapores S.A. (CSAV), a Chilean corporation, has agreed to plead guilty and to pay an $8.9 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, CSAV engaged in a conspiracy to suppress and eliminate competition by allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipping services of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore.  CSAV participated in the conspiracy from at least January 2000 to September 2012.  CSAV has also agreed to cooperate with the department’s ongoing antitrust investigation.  The plea agreement is subject to court approval.
Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel.  Examples of this cargo include new and used cars and trucks, as well as construction, mining and agricultural equipment.
“Today’s charges are the f
irst to be filed in the Antitrust Division’s investigation into bid rigging and price fixing of ocean shipping services,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “Because of the growth in the automobile ocean shipping industry over the past 40 years, the conspiracy substantially affected interstate and foreign commerce.  Prosecuting international price-fixing conspiracies remains a top priority for the division."

According to the charge, CSAV and its co-conspirators carried out the conspiracy by, among other things, agreeing – during meetings and communications – on prices, allocating customers, agreeing to refrain from bidding against one another and exchanging customer pricing information.  The department said the companies then charged fees in accordance with those agreements for international ocean shipping services for certain roll-on, roll-off cargo to and from the United States and elsewhere at collusive and non-competitive prices.

CSAV is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international ocean shipping industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection, Office of Internal Affairs, Washington Field Office/Special Investigations Unit.

DOD REPORTS SYRA SLOW TO TRANSPORT CHEMICAL MATERIALS FOR DESTRUCTION

FROM:  U.S. DEFENSE DEPARTMENT 
Syria Slow in Meeting Obligations, DOD Spokesman Says
By Army Sgt. 1st Class Tyrone C. Marshall Jr.
American Forces Press Service

WASHINGTON, Feb. 27, 2014 – Chemical materials designated for destruction are slowly being transported for consolidation at the Syrian port of Latakia, and the United States is urging the Syrian government to accelerate this process, Defense Department spokesman Army Col. Steven Warren told reporters here today.

The U.S. vessel MV Cape Ray has been specially fitted to accommodate destruction of the Syrian chemical materials, and it arrived Feb. 13 in Rota, Spain, to stand by for the mission.

The Organization for the Prohibition of Chemical Weapons announced yesterday that the Syrian government had transported a fourth shipment of chemical materials to Latakia, Warren said. This shipment contained sulfur mustard, he added.
“Of note,” Warren said, “the materials in this shipment are the first which will ultimately be transloaded to the Cape Ray for follow-on destruction.”
The United States continues to urge the Syrian government to meet its obligation and accelerate efforts to deliver the entire declared stockpile to Latakia for transportation and destruction, Warren said. The plan for transloading the chemical weapons onto the Cape Ray, he added, further increase the need for Syria hasten its efforts.

“The plan is that there will be one transload onto the Cape Ray,” he said. “So we have to wait until all the chemicals are out of Syria and on the Danish or Norwegian ships. They’ll then be moved onto the Cape Ray … [and] then be destroyed. We are calling on the Syrians to accelerate their movement of these chemical weapons into the port of Latakia so we can get them all onto the Danish and Norwegian ships and transload them onto the Cape Ray.”

The Syrians, he noted, have obligations that they need to live up to. “These are international obligations, and I know they’ve submitted a plan for a 100-day long extension, and we find that unacceptable,” Warren said. “They have to live up to their obligation. They have to get those chemical weapons out of the country so we can destroy them.”

The DOD spokesman also provided observations on North Korean missile tests conducted yesterday, and the situation in Ukraine.

North Korea launched several short-range scud missiles late last night, Warren said. They impacted off North Korea’s east coast and didn’t appear to target anyone, he added.

“We view this as an unannounced weapons test we see somewhat regularly,” Warren said, noting two to four missiles were launched.
Meanwhile, Warren said, officials are monitoring developments in Ukraine closely. He affirmed America’s strong support for Ukraine’s territorial integrity and sovereignty.

“We expect other nations to respect Ukraine’s sovereignty and avoid provocative actions,” Warren said. “We expect Russia to be transparent about its activities, particularly its recently announced training exercise. We urge them not to take any steps that could be misinterpreted or lead to miscalculation during this delicate time.”

U.S. DEFENSE DEPARTMENT CONTRACTS FOR FEBRUARY 27,2014

FROM:  U.S. DEFENSE DEPARTMENT 
CONTRACTS
 ARMY

VS2 LLC, Alexandria, Va., was awarded a $41,950,284 modification (0001) to contract W52P1J-13-G-0029 for logistics support services, at the Logistics Readiness Center, Fort Benning, Ga., to include materiel maintenance, supply and transportation services.  Fiscal 2013 operations and maintenance, Army funds in the amount of $41,950,284 were obligated at the time of the award.  Estimated completion date is Feb. 27, 2019.  Work will be performed at Fort Benning, Ga.  Army Contracting Command, Rock Island Arsenal, Ill., is the contracting activity.

Diversified Construction of Oklahoma*, Edmund, Okla., was awarded a $22,500,000 firm-fixed-price, indefinite-delivery/indefinite-quantity contract for minor construction, sustainability, repairs and maintenance to the McAlester Army Ammunition Plant, Okla.  Funding and performance location will be determined with each order.  Estimated completion date is Feb. 25, 2019.  Bids were solicited via the Internet with 15 received.  Army Corps of Engineers, Tulsa, Okla., is the contracting activity (W912BV-14-D-0002).

BAE Systems Technology Solutions, Rockville, Md., was awarded a $21,391,241 modification (P00230) to contract W912CN-08-C-0085 for logistical support and services consisting of maintenance, transportation and supply on the islands of Oahu and Hawaii.  Fiscal 2014 operations and maintenance, Army funds in the amount of $10,591,365 were obligated at the time of the award.  Estimated completion date is Feb. 28, 2015.  Work will be performed at Schofield Barracks, Hawaii.  Army Contracting Command, Fort Shafter, Hawaii, is the contracting activity.

QED Systems LLC*, Aberdeen Proving Ground, Md., was awarded a $7,443,765 cost plus-fixed-fee contract for program management, engineering, logistics, business, administrative, operations, and security service support for product manager meteorological and target identification capabilities.  Fiscal 2014 operations and maintenance, Army funds in the amount of $7,443,765 were obligated at the time of the award.  Estimated completion date is Feb. 26, 2017.  Bids were solicited via the Internet with three received.  Work will be performed at Aberdeen Proving Ground, Md.  Army Contracting Command, Aberdeen Proving Ground, Md., is the contracting activity (W15P7T-14-C-C012).

Truestone, Herndon*, Va., was awarded a $6,685,148 cost-plus-fixed-fee contract for reverse engineering, limited prototyping for exploitation, test and evaluation, and target validation.  The contractor shall provide program management, engineering, and technical support related to a wide range of technologies managed in the Intelligence and Information Warfare Directorate, Technical Characterization and Exploitation Branch, Cyber Offensive Operations Division.  Fiscal 2012 research, development, testing and evaluation funds in the amount of $40,764; fiscal 2012 other procurement funds in the amount of $550,000; fiscal 2013 research, development, testing, and evaluation funds in the amount of $13,258 and fiscal 2013 other procurement funds in the amount of $2,553,200 were obligated at the time of the award.  Estimated completion date is Feb. 26, 2015.  Bids were solicited via the Internet with six received.  Work will be performed at Aberdeen Proving Ground, Md.  Army Contracting Command, Aberdeen, Md., is the contracting activity (W15P7T-14-C-A159).

Raytheon, McKinney, Texas, was awarded a $6,651,471 modification (P00226) to contract W31P4Q-07-C-0088 to procure services for the improved target acquisition system for the Tube Launched, Optically Tracked, Wireless Guided Missile System.  Fiscal 2014 operations and maintenance, Army funds in the amount of $6,651,471 were obligated at the time of the award.  Estimated completion date is Dec. 30, 2014.  Work will be performed in McKinney, Texas, is the contracting activity.

NAVY

The Boeing Co., St. Louis, Mo., is being awarded a $49,816,500 modification to a previously awarded firm-fixed-price contract (N00019-10-C-0030) for the full rate production of 3,500 Precision Laser Guidance Set (PLGS) units and 5,000 kits to convert the PLGS units from the DSU-38/B configuration to the DSU-38A/B for the U.S. Air Force.  Work will be performed in Fort Worth, Texas (57 percent); St. Charles, Mo. (17 percent); Cincinnati, Ohio (12 percent); Greenville, S.C. (5 percent); Minneapolis, Minn. (4 percent); Glen Riddle, Pa. (3 percent); Danville, Va. (1 percent); and Georgetown, Texas (1 percent), and is expected to be completed in February 2016.  Fiscal 2014 procurement of ammunition, Air Force funds in the amount of $49,816,500 will be obligated at time of award; none of which will expire at the end of the current fiscal year.  The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Booz Allen Hamilton, McLean, Va. (N00421-10-D-0005); Deloitte Consulting LLP, Alexandria, Va. (N00421-10-D-0006); National Technologies Associates Inc., Alexandria, Va. (N00421-10-D-0007); and Science Applications International Corp., McLean, Va. (N00421-10-D-0008), are each being awarded modifications to previously awarded indefinite-delivery/indefinite-quantity multiple award contracts to exercise options for management, organizational, and business improvement services, financial and business solutions, and human resources services supporting Naval Air Systems Command (NAVAIR) Corporate Operations and Comptroller offices.  The aggregate not-to-exceed amount for these options is $17,665,000, and the companies will have the opportunity to compete on each individual task order.  Work will be performed in Patuxent River, Md., however, services also may be performed in the following NAVAIR locations:  Naval Air Warfare Center Aircraft Division St. Inigoes, Md.; Lakehurst N.J.; Point Mugu, Calif.; China Lake, Calif.; Orlando Fla.; Cherry Point, N.C.; Jacksonville, Fla., and North Island, Calif.  Work performed under these contracts is expected to be completed in February 2015.  No funds will be obligated at time of award.  Funds will be obligated on individual task orders as they are issued.  The Naval Air Warfare Center Aircraft Division, Patuxent River, Md., is the contracting activity.

IAP World Services Inc., Cape Canaveral, Fla., is being awarded a $9,190,177 modification under a previously awarded firm-fixed-price, indefinite-delivery/indefinite-quantity contract (N40080-13-D-3003) to extend the contract completion date for base operating support services at Naval Air Station Patuxent River, Webster Field Annex, Solomon’s Recreation Center Annex and Point Lookout, Md.  The work to be performed provides for base operating services including all labor, supervision, management, tools, materials, equipment, facilities, transportation, and other items necessary to provide facility, refuse collection, swimming pools, wastewater, water and environmental maintenance services.  The total contract amount after award of this modification will be $41,151,389.  Work will be performed in Patuxent River, Md. (91 percent); Solomons, Md. (five percent); St. Inigoes, Md. (two percent) and Point Lookout, Md. (two percent), and work is expected to be completed June 2014.  Fiscal 2014 working capital funds, Defense; fiscal 2014 health program, Defense; fiscal 2014 operations and maintenance, Navy; and fiscal 2014 non-appropriated funds contract funds in the amount of $6,790,177 are obligated on this award and will expire at the end of the current fiscal year.  The Naval Facilities Engineering Command, Washington, Public Works Department, Patuxent River, Md., is the contracting activity.

DEFENSE LOGISTICS AGENCY

Avox Systems Inc., Lancaster, N.Y., has been awarded a maximum $19,011,985 modification (P00101) exercising the first option year on a two-year base contract (SPM8EG-12-D-0006) with three one-year option periods for breathing apparatus.  This is a fixed-price with economic-price-adjustment contract.  Location of performance is New York with a Mar. 27, 2015 performance completion date.  Using military services are Army, Navy, Air Force, and Marine Corps.  Type of appropriation is fiscal year 2014 defense working capital funds.  The contracting activity is the Defense Logistics Agency Troop Support, Philadelphia, Pa. (Awarded Feb. 25, 2013)

Petro Star Inc.*, Anchorage, Alaska, has been awarded a maximum $7,939,809 fixed-price with economic-price-adjustment contract for fuel.  This contract is a competitive acquisition, and two offers were received.  This is a four-year base contract with no option periods.  Location of performance is Alaska with a March 31, 2018 performance completion date.  Using military services are Army, Navy, Air Force, Marine Corps, and federal civilian agencies.  Type of appropriation is fiscal 2014 through fiscal 2018 defense working capital funds.  The contracting activity is the Defense Logistics Agency Energy, Fort Belvoir, Va., (SP0600-14-D-0058).

DEFENSE FINANCE AND ACCOUNTING SERVICE

Immixtechnology, Inc., McLean, Va., is being awarded a $7,843,432 modification (P00012) to previously awarded firm-fixed-price contract (HQ0423-12-F-0028) to exercise the second option year to provide Business Activity Monitoring Services to identify improper payments across various payment systems.  Work will be performed in Indianapolis, Ind., and Atlanta, Ga, and is expected to be completed Feb. 28, 2015.  Defense Finance and Accounting Service, Contract Services Directorate, Columbus, Ohio is the

U.S. CONGRATULATES PEOPLE ON DOMINICAN REPUBLIC ON THEIR INDEPENDENCE DAY

FROM:  U.S. STATE DEPARTMENT 
Secretary's Remarks: Dominican Republic's Independence Day
02/27/2014 09:32 AM EST
Dominican Republic's Independence Day

Press Statement
John Kerry
Secretary of State
Washington, DC
February 27, 2014

On behalf of President Obama and the people of the United States, I congratulate the Government and people of the Dominican Republic on the 170th anniversary of your independence.

The United States is proud of its thriving Dominican-American community. Each and every day, some 1.5 million Dominican-Americans contribute to our nation’s economic vitality and culture while maintaining a deep connection with their Dominican roots.

In the spirit of friendship and mutual respect, the people of the United States are working with the people of the Dominican Republic on citizen security, economic opportunity, clean energy development, and respect for human rights.

As you gather in celebration, I wish you a happy Independence Day.

U.S. ARMY TRAINS WITH TRINIDAD AND TOBAGO DEFENSE FORCE



FROM:  U.S. DEFENSE DEPARTMENT
A U.S. UH-60 Black Hawk helicopter hovers over members of U.S. 7th Special Forces Group and Trinidad and Tobago defense force as they prepare to fast rope off Chacachacare Island, the western-most island off Trinidad, Feb. 14, 2014. U.S. Army photo by Capt. Daisy C. Bueno .




 U.S. soldier fires at a target in flight with Trinidad and Tobago defense force members aboard an MH-60 Black Hawk helicopter off Chacachacare Island, the western-most island off Trinidad, Feb. 15, 2014. The soldier is assigned to the 160th Special Operations Aviation Regiment. U.S. Army photo by Capt. Daisy C. Bueno.

FDIC SAYS COMMERCIAL BANK NET INCOME INCREASED $5.8 BILLION IN 4TH QUARTER OF 2013

FROM:  FEDERAL DEPOSIT INSURANCE CORPORATION 

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported aggregate net income of $40.3 billion in the fourth quarter of 2013, a $5.8 billion (16.9 percent) increase from the $34.4 billion in earnings that the industry reported a year earlier. This is the 17th time in the last 18 quarters — since the third quarter of 2009 — that earnings have registered a year-over-year increase. The improvement in earnings was mainly attributable to an $8.1 billion decline in loan-loss provisions. Lower income stemming from reduced mortgage activity and a drop in trading revenue contributed to a year-over-year decline in net operating revenue (the sum of net interest income and total noninterest income). More than half of the 6,812 insured institutions reporting (53 percent) had year-over-year growth in quarterly earnings. The proportion of banks that were unprofitable fell to 12.2 percent, from 15 percent in the fourth quarter of 2012.

"The trend of slow but steady improvement that has been underway in the banking industry since 2009 continued to gain ground," said FDIC Chairman Martin J. Gruenberg. "Asset quality improved, loan balances were up, and there were fewer troubled institutions. However, challenges remain in the industry. Narrow margins, modest loan growth, and a decline in mortgage refinancing activity have made it difficult for banks to increase revenue and profitability. Nonetheless, these results show a continuation of the recovery in the banking industry."

The average return on assets (ROA), a basic yardstick of profitability, rose to 1.10 percent in the fourth quarter from 0.96 percent a year ago. The average return on equity (ROE) increased from 8.53 percent to 9.87 percent.

Fourth quarter net operating revenue totaled $166.1 billion, a decline of $2.8 billion (1.7 percent) from a year earlier, as noninterest income fell by $4.2 billion (6.6 percent) and net interest income increased by $1.4 billion (1.3 percent). The average net interest margin — the difference between the average yield banks earn on loans and other investments and the average cost of funding those investments — was 3.28 percent, the highest average of any quarter in 2013, but down from 3.34 percent in the fourth quarter of 2012.

Total noninterest expenses were $5.8 billion (5.3 percent) lower than in the fourth quarter of 2012, as litigation expenses fell by $3.1 billion at one large institution. Banks set aside $7 billion in provisions for loan losses, a reduction of $8.1 billion (53.7 percent) compared to a year earlier. This is the 17th consecutive quarter that the industry has reported a year-over-year decline in quarterly loss provisions.

Asset quality indicators continued to improve as insured banks and thrifts charged off $11.7 billion in uncollectible loans during the quarter, down $6.8 billion (37 percent) from a year earlier. The amount of noncurrent loans and leases — those 90 days or more past due or in nonaccrual status — fell by $14 billion (6.3 percent) during the quarter. The percentage of loans and leases that were noncurrent declined to 2.62 percent, the lowest level since the 2.35 percent posted at the end of the third quarter of 2008.

Net income over the full year of 2013 totaled $154.7 billion, an increase of $13.6 billion (9.6 percent) compared to 2012. The average full-year ROA rose to 1.07 percent from 1.00 percent in 2012. More than half of all institutions (54.2 percent) reported higher net income in 2013, while only 7.8 percent were unprofitable. This is the lowest annual proportion of unprofitable institutions since 2005.

Financial results for the fourth quarter of 2013 and the full year are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings:

Total loan balances increased. Loan balances increased by $90.9 billion (1.2 percent) in the three months ending December 31, as all major loan categories except one- to four-family residential real estate loans experienced growth during the quarter. Loans to commercial and industrial (C&I) borrowers increased by $27.3 billion (1.7 percent), loans secured by nonfarm nonresidential real estate properties rose by $17.1 billion (1.6 percent), and credit card balances posted a $14.3 billion (2.1 percent) increase. Home equity loan balances declined for a 19th consecutive quarter, falling by $6.9 billion (1.3 percent). Balances of other loans secured by one- to four-family residential real estate properties fell by $13 billion (0.7 percent), as the amount of mortgage loans sold during the quarter exceeded by $29 billion the amount of mortgage loans originated and intended for sale. For the 12 months through December 31, total loan and lease balances were up by $197.3 billion (2.6 percent).

Mortgage activity remained well below year-ago levels. One- to four-family residential real estate loans originated and intended for sale were $307.7 billion (62 percent) lower than in the fourth quarter of 2012, as rising interest rates in the first half of 2013 reduced the demand for mortgage refinancings. Noninterest income from the sale, securitization and servicing of mortgages was $2.8 billion (34 percent) lower than a year ago. Realized gains on available-for-sale securities also were lower than a year ago, as higher medium- and long-term interest rates reduced the market values of fixed-rate securities. Banks reported $506 million in pretax income from realized gains in the fourth quarter, a decline of $1 billion (66.6 percent) from a year ago.

The number of "problem banks" fell for the 11th consecutive quarter. The number of banks on the FDIC's "Problem List" declined from 515 to 467 during the quarter. The number of "problem" banks is down by almost half from the recent high of 888 at the end of the first quarter of 2011. Two FDIC-insured institutions failed in the fourth quarter of 2013, down from eight in the fourth quarter of 2012. For all of 2013, there were 24 failures, compared to 51 in 2012.

The Deposit Insurance Fund (DIF) balance continued to increase. The unaudited DIF balance — the net worth of the fund — rose to $47.2 billion as of December 31 from $40.8 billion as of September 30. Assessment income and a reduction in estimated losses from failed institution assets were the primary contributors to growth in the fund balance. Estimated insured deposits increased 0.7 percent, and the DIF reserve ratio — the fund's balance as a percentage of estimated insured deposits — rose to 0.79 percent as of December 31 from 0.68 percent as of September 30. A year ago, the DIF reserve ratio was 0.44 percent. By law, the DIF must achieve a minimum reserve ratio of 1.35 percent by 2020.

Search This Blog

Translate

White House.gov Press Office Feed