Monday, March 5, 2012

FORMER FDA CHEMIST USES NON-PUBLIC INFORMATION TO TRADE STOCKS AND GOES TO PRISON


The following excerpt  is from the Department of Justice website:

Monday, March 5, 2012
“WASHINGTON – Cheng Yi Liang, a former Food and Drug Administration (FDA) chemist from Gaithersburg, Md., was sentenced today to 60 months in prison for engaging in insider trading on multiple occasions based on material, non-public information he obtained in his capacity as an FDA scientist.  Liang was previously ordered to forfeit $3.7 million representing the proceeds of the insider trading scheme.

The sentence was announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; and Elton Malone, Special Agent in Charge, Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Office of Investigations, Specials Investigations Branch.

“Taking advantage of his special access as a chemist at the FDA, Mr. Liang used sensitive inside information to reap illegal profits in the pharmaceutical securities market,” said Assistant Attorney General Breuer.  “For years, he exploited his position in the agency to make easy money on the stock market.  But today’s sentence shows that easy money has consequences.  Investors engage in insider trading at their peril.”

 “Cheng Yi Liang bought and sold stocks based on non-public information, and he tried to conceal his crimes by using the names of friends and relatives,” said U.S. Attorney Rosenstein.  “Mr. Liang violated his duty of loyalty to the FDA and profited from inside information.”

“Liang brazenly sought to profit based on sensitive, insider information.  What he didn’t know is that investigators have been utilizing sophisticated technical tools to identify and track criminal behavior,” said Special Agent in Charge Malone of HHS-OIG.  “We will continue to insist that federal government employee conduct be held to the highest of standards.”

“Mr. Liang breached the trust of his employment by obtaining sensitive information and using it for his own profit,” said Assistant Director in Charge McJunkin.  “Together with our partner agencies, the FBI will continue to pursue and hold accountable those who perpetrate such financial crimes, as we work to protect American taxpayers and our financial markets.”

Liang, 58, was sentenced by U.S. District Judge Deborah K. Chasanow in the District of Maryland.  He pleaded guilty on Oct. 18, 2011, to one count of securities fraud and one count of making false statements.

According to court documents, Liang had been employed as a chemist since 1996 at the FDA’s Office of New Drug Quality Assessment (NDQA).  Through his work at NDQA, Liang had access to the FDA’s password protected internal tracking system for new drug applications, known as the Document Archiving, Reporting and Regulatory Tracking (DARRTS) system.  FDA uses DARRTS to manage, track, receive and report on new drug applications.  Liang reviewed DARRTS for information relating to the progression of experimental drugs through the FDA approval process.  Much of the information accessible on the DARRTS system constituted material, non-public information regarding the pharmaceutical companies that had submitted their experimental drugs to the FDA for review.
In his plea, Liang admitted that between in or about July 2006 and in or about March 2011, using material, non-public information from DARRTS and other sources, he traded in the securities of pharmaceutical companies in violation of the duties of trust and confidence he owed the FDA.  Liang utilized accounts of relatives and acquaintances, including his son, to execute the trades.  When the FDA insider information about a company’s product was positive, Liang purchased securities through the accounts he controlled.  When the FDA insider information was negative, Liang would sell short a company’s stock.  After the FDA’s action with respect to a drug was made public, Liang executed trades to profit from the change in the company’s share price as a result of the FDA announcement, resulting in total profits gained and losses avoided of $3,776,152.
During the time he was employed by the FDA, Liang was required to file a confidential financial disclosure form, disclosing, among other things, investment assets with a value greater than $1,000 and sources of income greater than $200.  During the time period of his insider trading scheme, Liang annually filed these forms and failed to disclose using various brokerage accounts under his control or his income from the illicit securities trading.   For example, on Feb. 16, 2010, Liang signed and submitted the 2010 confidential financial disclosure form, failing to disclose that during 2009 he earned approximately $1,040,000 from trading on material, non-public information obtained from the FDA.

In related actions, the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) filed a civil complaint in the District of Maryland for forfeiture of proceeds related to the insider trading scheme.  To date, the government has obtained over $1 million through the civil forfeiture of nine bank and brokerage accounts.  The forfeiture of two real properties – a house and a condominium in Montgomery County, Md. – is still pending.  Liang previously consented to the entry of final judgment as to the U.S. Securities and Exchange Commission’s (SEC) civil enforcement action against him, also in the District of Maryland.

This case is being prosecuted by Trial Attorneys Kevin Muhlendorf and Thomas Hall of the Criminal Division’s Fraud Section, Assistant U.S. Attorney David Salem for the District of Maryland, and AFMLS Senior Trial Attorney Pamela J. Hicks and Trial Attorney Jennifer Ambuehl.  The case was investigated by the FBI’s Washington Field Office and the HHS-OIG. The department acknowledges the substantial assistance of the SEC, in particular its Market Abuse Unit, which referred the matter to the Criminal Division’s Fraud Section.

This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes.”


Sunday, March 4, 2012

"COAX THIEF" SELLER FOUND GUILTY OF INTERNET SERVICE THEFT


The following excerpt is from the Department of Justice website:

Friday, March 2, 2012
“WASHINGTON – A Redmond, Ore., man was convicted yesterday of seven counts of wire fraud by a federal jury in Boston, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Carmen Ortiz of the District of Massachusetts announced today.

Ryan Harris, 26, was the owner of TCNISO, a company that distributed products enabling users to steal Internet service.  From 2003 through 2009, Harris developed and distributed hardware and software tools that allowed his customers to modify their cable modems so that they could disguise themselves as paying subscribers and obtain Internet service without paying.  The products included a “packet sniffer,” which Harris dubbed “Coax Thief.”  “Coax Thief” surreptitiously intercepted (or “sniffed”) Internet traffic so that the user obtained the media access control addresses and configuration files of surrounding modems.  TCNISO and Harris also offered ongoing customer support, primarily through forums that it hosted on the TCNISO website, to assist customers in their cable modem hacking activities.

“Mr. Harris tried to hide behind the banner of freedom of access to the Internet, but the evidence established that he built a million dollar business helping customers steal Internet service,” said Assistant Attorney General Breuer.

U.S. Attorney Carmen M. Ortiz said, “The Internet is an incredible resource that has transformed the way we conduct business.   Unfortunately, it has also become a breeding ground for criminals.   We will continue to prioritize the prosecution of those who wish to utilize our communication systems to conduct illegal activity and inflict harm on others.”

Each count carries a maximum prison term of 20 years and a fine of up to $250,000.  Sentencing has been scheduled for May 23, 2012, at 3 p.m. before Chief District Court Judge Mark Wolf, who presided over the trial.

The case was investigated by the Boston Field Office of the FBI and was prosecuted by Assistant U.S. Attorney Adam Bookbinder of the U.S. Attorney’s Office for the District of Massachusetts’s Cybercrimes Unit and Trial Attorney Mona Sedky from the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division.”

OXYGEN FOUND ON SATURN'S MOON DIONE


The following excerpt is from the National Science Foundation website:
"Oxygen detected in atmosphere of Saturn’s Moon Dione
Discovery could mean ingredients for life are abundant on icy space bodies
LOS ALAMOS, NEW MEXICO, March 2, 2012—Los Alamos National Laboratory scientists and an international research team have announced discovery of molecular oxygen ions (O2+) in the upper-most atmosphere of Dione, one of the 62 known moons orbiting the ringed planet. The research appeared recently in Geophysical Research Letters and was made possible via instruments aboard NASA’s Cassini spacecraft, which was launched in 1997.

Dione—discovered in 1684 by astronomer Giovanni Cassini (after whom the spacecraft was named)—orbits Saturn at roughly the same distance as our own moon orbits Earth. The tiny moon is a mere 700 miles wide and appears to be a thick, pockmarked layer of water ice surrounding a smaller rock core. As it orbits Saturn every 2.7 days, Dione is bombarded by charged particles (ions) emanating from Saturn’s very strong magnetosphere. These ions slam into the surface of Dione, displacing molecular oxygen ions into Dione’s thin atmosphere through a process called sputtering.

Molecular oxygen ions are then stripped from Dione’s exosphere by Saturn’s strong magnetosphere.
A sensor aboard the Cassini spacecraft called the Cassini Plasma Spectrometer (CAPS) detected the oxygen ions in Dione’s wake during a flyby of the moon in 2010. Los Alamos researchers Robert Tokar and Michelle Thomsen noted the presence of the oxygen ions.

“The concentration of oxygen in Dione’s atmosphere is roughly similar to what you would find in Earth’s atmosphere at an altitude of about 300 miles,” Tokar said. “It’s not enough to sustain life, but—together with similar observations of other moons around Saturn and Jupiter—these are definitive examples of a process by which a lot of oxygen can be produced in icy celestial bodies that are bombarded by charged particles or photons from the Sun or whatever light source happens to be nearby.”

Perhaps even more exciting is the possibility that on a moon with subsurface water, such as Jupiter’s moon Europa, molecular oxygen could combine with carbon in subsurface lakes to form the building blocks of life. Future missions to Europa could help unravel questions about that moon’s habitability.

Two sensors aboard Cassini built by Los Alamos National Laboratory are expected to come into play beginning later this month, and again in April and May, when the Cassini spacecraft flies by the moon Enceladus. The moon is one of the brightest objects in our solar system, reflecting back nearly all of the sunlight that strikes it, thanks to a shimmering surface of snowy ice crystals. The moon also unleashes plumes of material from its south polar region. Los Alamos’ ion-beam spectrometer and ion-mass spectrometer may help answer key questions about the composition of these plumes."

SECRETARIES PANETTA AND SHINSEKI DISCUSS VETERANS AFFAIRS


The following excerpt is from a Department of Defense American Forces Press Service e-mail:


"Panetta, Shinseki Discuss Issues of Common Concern


American Forces Press Service
WASHINGTON, Feb. 28, 2012 - Defense Secretary Leon E. Panetta welcomed Veterans Affairs Secretary Eric K. Shinseki to the Pentagon yesterday for the latest in a series of regular meetings the two secretaries have held on issues of common interest to both departments.

The meeting included a discussion with disabled veterans, two of whom are on the U.S. Paralympic team, about their experiences as they left active service and transitioned to veteran status.
The Paralympic athletes told the two Cabinet members how their respective departments' adaptive sports programs helped them to recover from their injuries and gave new purpose to their lives after the military.
"It is clear that there is a lot of good work being done to help our service members have the smoothest transition possible to veteran status and civilian life," Panetta said. "But there are still too many stories of programs that are poorly connected between our departments and that are time-consuming and plain confusing for our service members and veterans."

Shinseki said he and Panetta are committed to continuing the progress DOD and VA have made.
"The vision Secretary Panetta and I share is to provide an integrated, seamless experience to our people across their lifetime -- from when they raise their hand to take the oath, to when they leave active service and join the veteran ranks, to when they are laid to rest with final honors," he said. "Over the past three years, VA and DOD have made significant progress, but more work remains."

In their meeting, Panetta and Shinseki focused on five areas in which the two departments have joined efforts on behalf of the nation's service members and veterans: the Disability Evaluation System, electronic health records, transition programs, joint pharmacy initiatives and recovery coordination for the wounded, ill and injured.
The two secretaries said they were pleased with the status of plans to implement President Barack Obama's directive to develop a new model for the Transition Assistance Program to ensure that all service members are career-ready when they leave the military.

They also discussed improvements to the Integrated Disability Evaluation System as a result of $400 million recently added to the Defense Department budget over the next five years and VA's commitment to increase the number of personnel supporting administration of the system.

With more than 24,300 service members currently being evaluated for disability ratings through IDES, officials said, the secretaries stressed the importance they attach to shortening the time service members spend waiting for their ratings before they can complete their transition from active duty to veteran status.
Panetta and Shinseki also discussed steps forward on electronic health records, noting that the interagency office established by the two departments to lead the way in building the joint integrated electronic health records system now has new leadership.

The secretaries also received an update on development of the graphical user interface program, in which they learned that doctors at the James A. Lovell Federal Health Care Center at North Chicago now can view both VA and DOD patient records simultaneously on a single monitor.

The Lovell Center is a first-of-its-kind partnership between VA and DOD to provide integrated care to service members and veterans in the same facility, officials explained. It has been a testing ground for the departments' efforts to deliver a fully integrated electronic health record for all service members and veterans.
Officials said Panetta and Shinseki plan to meet in Chicago in May to visit the Lovell Center and to review progress on deliverables the two departments have committed to achieve by the end of the year, including:
-- A detailed implementation plan for the revised transition assistance program;
-- Spurring development of electronic transfer of patient files to reduce processing and mailing costs and disability evaluation processing times; and
-- Finalizing a contract for joint pharmacy capability at the Lovell Center."

NASA'S KEPLER TEAM RELEASES THIRD CATALOG OF OVER 1,000 NEW PLANET CANDIDATES


“Since science operations began in May 2009, the Kepler team has released two catalogs of transiting planet candidates. The first catalog (Borucki et al, 2010),released in June 2010, contains 312 candidates identified in the first 43 days of Kepler data. The second catalog (Borucki et al, 2011), released in February 2011, is a cumulative catalog containing 1,235 candidates identified in the first 13 months of data.

Today the team presents the third catalog containing 1,091 new planet candidates identified in the first 16 months of observation conducted May 2009 to September 2010. These are the same candidates that the team discussed at the Kepler Science Conference held at NASA Ames Research Center in December 2011.

Here are the highlights of the new catalog:
Planet candidates smaller than twice the size of Earth increased by 197 percent, compared to 52 percent for candidates larger than twice the size of Earth.
Planet candidates with orbital periods longer than 50 days increased by 123 percent, compared to 85 percent for candidates with orbital periods shorter than 50 days.
Since the last catalog was released in February 2011, the number of planet candidates identified by Kepler has increased by 88 percent and now totals 2,321 transiting 1,790 stars.

The cumulative catalog now contains well over 200 Earth-size planet candidates and more than 900 that are smaller than twice Earth-size. Of the 46 planet candidates found in the habitable zone, the region in the planetary system where liquid water could exist, ten of these candidates are near-Earth-size.

The number of planetary systems found with more than one planet candidate also has increased. Last year, 17 percent, or 170 stars, had more than one transiting planet candidate. Today, 20 percent, or 365, stars have more than one.

"With each new catalog release a clear progression toward smaller planets at longer orbital periods is emerging, " said Natalie Batalha, Kepler deputy science team lead at San Jose State University in California. "This suggests that Earth-size planets in the habitable zone are forthcoming if, indeed, such planets are abundant."

Nearly 5,000 periodic transit-like signals were analyzed with known spacecraft instrumentation and astrophysical phenomena that could masquerade as transits, which can produce false positives. The most common false positive signatures are associated with eclipsing binary stars- a pair of orbiting stars that eclipse each other from the vantage point of the spacecraft.

The Kepler space telescope identifies planet candidates by repeatedly measuring the change in brightness of more than 150,000 stars in search of planets that pass in front, or "transit," their host star. Kepler must record at least three transits to verify a signal as a planet.

The findings are published in the "Planetary Candidates Observed by Kepler III: Analysis of the First 16 Months of Data". The catalog is available at the Kepler data archive at the Space Telescope Science Institute and can be downloaded from theNASA Exoplanet Archive.

NASA's Ames Research Center in Moffett Field, Calif., manages Kepler's ground system development, mission operations and science data analysis. NASA’s Jet Propulsion Laboratory, Pasadena, Calif., managed the Kepler mission's development.

Ball Aerospace and Technologies Corp. in Boulder, Colo., developed the Kepler flight system and supports mission operations with the Laboratory for Atmospheric and Space Physics at the University of Colorado in Boulder.

The Space Telescope Science Institute in Baltimore archives, hosts and distributes Kepler science data. Kepler is NASA's 10th Discovery Mission and is funded by NASA's Science Mission Directorate at the agency's headquarters in Washington."


NEW PIPELINE AMONG TOPICS DISCUSSED BY U.S AND THE AFGHAN MINISTER OF MINES


The following excerpt is from the U.S. State Department website:

“Visit of Afghan Minister of Mines Shahrani
Media NoteOffice of the SpokespersonWashington, DC
March 2, 2012
The State Department was pleased to welcome Afghan Minister of Mines Wahidullah Shahrani to Washington, D.C. March 1-2 for meetings with a number of Administration officials, including U.S. Special Representative for Afghanistan and Pakistan Ambassador Marc Grossman, Assistant Secretary of State for South and Central Asian Affairs Robert O. Blake, Jr., and the Secretary’s Special Envoy for Eurasian Energy, Richard Morningstar.

In his meetings at the Department of State, Minister Shahrani described recent progress in attracting international investment to develop Afghanistan’s extractive resources as well as Afghanistan’s engagement with its neighbors to advance the New Silk Road vision, including the Turkmenistan-Afghanistan-Pakistan-India (TAPI) pipeline. Minister Shahrani noted steps that the Government of Afghanistan is taking to ensure the process of awarding contracts and the management of revenue is transparent, consistent with international best practices, and for the benefit of the Afghan people. Ambassador Grossman reiterated U.S. support for the Government of Afghanistan’s continuing reform efforts intended to promote sustainable growth and spur private sector investment, especially in key sectors such as mining.

Minister Shahrani and State Department officials also discussed their plans to attend the upcoming Regional Economic Cooperation Conference on Afghanistan, to be hosted by the Government of Tajikistan from March 26-27, which will be an occasion for the countries of the region to discuss continued economic integration along the New Silk Road.”

FORMER CEO MUST PAY $10 MILLION IN SECURITIES FRAUD CASE


The following excerpt is from the SEC website: 

"Washington, D.C., March 2, 2012 — The Securities and Exchange Commission today announced that a federal judge has ordered the former CEO of Brookstreet Securities Corp. to pay a maximum $10 million penalty in a securities fraud case related to the financial crisis.

The SEC litigated the case beginning in December 2009, when the agency charged Stanley C. Brooks and Brookstreet with fraud for systematically selling risky mortgage-backed securities to customers with conservative investment goals. Brookstreet and Brooks developed a program through which the firm’s registered representatives sold particularly risky and illiquid types of Collateralized Mortgage Obligations (CMOs) to more than 1,000 seniors, retirees, and others for whom the securities were unsuitable. Brookstreet and Brooks continued to promote and sell the risky CMOs even after Brooks received numerous warnings that these were dangerous investments that could become worthless overnight. The fraud caused severe investor losses and eventually caused the firm to collapse.

The Honorable David O. Carter in federal court in Los Angeles granted summary judgment in favor of the SEC on February 23, finding Brookstreet and Brooks liable for violating Section 10(b) of the Securities Exchange Act of 1934 as well as Rule 10b-5. The judge entered a final judgment in the case yesterday and ordered the financial penalty sought by the SEC.

“Brooks’ aggressive promotion and sale of risky mortgage products to seniors and other risk-averse investors deserves the maximum penalty possible, and that is what he got,” said Robert Khuzami, Director of the SEC’s Division of Enforcement. “Those who direct such exploitative practices from the boardroom will be held personally accountable and face severe consequences for their egregious actions.”

Rosalind Tyson, Director of the SEC’s Los Angeles Regional Office, added, “The CMOs that Brookstreet sold its customers were among the most risky of all mortgage-backed securities. This judgment highlights the responsibility of brokerage firm principals to ensure the suitability of the securities they sell to customers.”
In addition to the $10,010,000 penalty, Brooks was ordered to pay $110,713.31 in disgorgement and prejudgment interest. The court’s judgment also enjoins both Brookstreet and Brooks from violating Section 10(b) of the Exchange Act as well as Rule 10b-5.

The SEC is awaiting a court decision in a separate Brookstreet-related enforcement action filed in federal court in Florida. In that case, the SEC charged 10 former Brookstreet registered representatives with making misrepresentations to investors in the purchases and sales of risky CMOs. Two representatives settled the charges, and the SEC tried the case against the remaining eight representatives in October 2011.
The SEC has brought enforcement actions stemming from the financial crisis against 95 entities and individuals, including 49 CEOs, CFOs, and other senior officers.

ATLANTIC COAST AS A SPACE TOURIST MIGHT SEE IT ONE DAY




“An Expedition 30 crew member aboard the International Space Station took this nighttime photograph of much of the Atlantic coast of the United States. Large metropolitan areas and other easily recognizable sites from the Virginia/Maryland/Washington, D.C. area are visible in the image that spans almost to Rhode Island. Boston is just out of frame at right. Long Island and the New York City area are visible in the lower right quadrant. Philadelphia and Pittsburgh are near the center. Parts of two Russian vehicles parked at the orbital outpost are seen in left foreground. This image was taken on Feb. 6, 2012. Image Credit: NASA”

The above picture and excerpt are from the NASA website:

THE NAVAL RESEARCH LABORATORY AND THOMAS EDISON'S PREDICTION


The following excerpt and picture are from the Department of Defense Armed with Science website:

(Left) "A bust of Thomas Edison at the NRL front gate honors his role in founding the Laboratory. (Photo: U.S. Naval Research Laboratory) "


2011 WAS BEST YEAR SINCE 2006 FOR FDIC INSURED INSTITUTIONS


The following excerpt is from an FDIC e-mail:

FDIC-Insured Institutions Earned $26.3 Billion in the Fourth Quarter of 2011
Full-Year Net Income of $119.5 Billion Is Highest Since 2006

 FOR IMMEDIATE RELEASE
February 28, 2012

Commercial banks and savings institutions insured by the Federal Deposit Insurance Corporation (FDIC) reported an aggregate profit of $26.3 billion in the fourth quarter of 2011, a $4.9 billion improvement from the $21.4 billion in net income the industry reported in the fourth quarter of 2010. This is the 10th consecutive quarter that earnings have registered a year-over-year increase. As has been the case in each of the past nine quarters, lower provisions for loan losses were responsible for most of the year-over-year improvement in earnings.

FDIC Acting Chairman Martin J. Gruenberg said that "2011 represented the second full year of improving performance by the banking system. Banks reported higher positive aggregate earnings, the numbers of 'problem' banks and failures declined, and loan balances increased in the final three quarters of the year." He also noted that "insured institutions of all sizes continued to make substantial progress in improving their profitability."

A majority of all institutions (63 percent) reported improvements in their quarterly net income from a year ago. Also, the share of institutions reporting net losses for the quarter fell to 18.9 percent from 27.1 percent a year earlier. The average return on assets (ROA), a basic yardstick of profitability, rose to 0.76 percent from 0.64 percent a year ago.
Fourth-quarter loss provisions totaled $19.5 billion, about 40 percent less than the $32.7 billion that insured institutions set aside for losses in the fourth quarter of 2010. Net operating revenue (net interest income plus total noninterest income) was $3.8 billion (2.3 percent) lower than a year earlier, due to a $4.4 billion (7.4 percent) decline in noninterest income.

Asset quality indicators continued to improve as insured banks and thrifts charged off $25.4 billion in uncollectible loans during the quarter, down $17.1 billion (40.2 percent) from a year earlier. Noncurrent loans and leases (those 90 days or more past due or in nonaccrual status) fell for a seventh quarter, but the percentage of loans and leases that were noncurrent remained higher than in previous crises.

Financial results for the fourth quarter of 2011 and the full year are contained in the FDIC's latest Quarterly Banking Profile, which was released today. Also among the findings:

Growth in loan portfolios continued. Loan balances posted a quarterly increase for the third quarter in a row. Total loans and leases increased by $130.1 billion (1.8 percent), as loans to commercial and industrial borrowers increased by $62.8 billion, residential mortgage loan balances rose by $26.0 billion, and credit card balances grew by $21.3 billion.

Money continued to flow into insured deposit accounts. Deposits in domestic offices increased by $249.7 billion (2.9 percent) during the quarter. More than three-quarters of this increase ($191.2 billion or 76.6 percent) consisted of balances in large noninterest-bearing transaction accounts that have temporary unlimited deposit insurance coverage. The 10 largest insured banks accounted for 73.6 percent ($140.7 billion) of the growth in these balances.

The number of institutions on the FDIC's "Problem List" fell for the third quarter in a row. The number of "problem" institutions declined from 844 to 813. This is the smallest number of "problem" banks since first quarter of 2010. Total assets of "problem" institutions declined from $339 billion to $319 billion. Eighteen insured institutions failed during the fourth quarter. For all of 2011, there were 92 insured institution failures, compared with 157 failures in 2010.

The Deposit Insurance Fund (DIF) balance continued to increase. The unaudited DIF balance — the net worth of the fund — rose to $9.2 billion at December 31 from $7.8 billion at September 30. Assessment revenue and fewer expected bank failures continued to drive growth in the fund balance. The contingent loss reserve, which covers the costs of expected failures, fell from $7.2 billion to $6.5 billion during the quarter. Estimated insured deposits grew 3.1 percent in the fourth quarter.
In conclusion, Acting Chairman Gruenberg noted, "The industry is now in a much better position to support the economy through expanded lending. However, levels of troubled assets and 'problem' banks are still high. And while the economy is showing signs of improvement, downside risks remain a concern."

EPA PROPOSES TO LEAVE GREENHOUSE GAS PERMITTING THRESHOLDS ALONE


The following excerpt is from an EPA e-mail:

“EPA Proposes to Keep Greenhouse Gas Permitting Requirements Focused on Largest Emitters
Options to streamline process would help state and local permitting authorities

WASHINGTON –The U.S. Environmental Protection Agency (EPA) is proposing not to change the greenhouse gas (GHG) permitting thresholds for the Prevention of Significant Deterioration (PSD) and Title V Operating Permit programs. Today’s proposal is part of EPA’s common-sense, phased-in approach to GHG permitting under the Clean Air Act. EPA is also proposing steps that would streamline the permitting process for large emitters already covered by the agency’s program, including sources that account for nearly 70 percent of the total GHG pollution from stationary sources.

EPA’s proposal is consistent with its phased-in approach, announced in 2010, to “tailor” the requirements of the Clean Air Act to ensure that industrial facilities and state governments have the tools they need to minimize GHG emissions and that only the largest emitters need permits.

After consultation with states and evaluating the process, EPA believes that the current approach is working well, and that state permitting authorities are currently managing PSD permitting requests. Therefore, EPA has proposed not to include additional, smaller sources in the permitting program at this time.

EPAs GHG permitting program follows the same Clean Air Act process that states and industry have followed for decades to help ensure that new or modified facilities are meeting requirements to protect air quality and public health from harmful pollutants. As of December 1, 2011, EPA and state permitting authorities have issued 18 PSD permits addressing GHG emissions. These permits have required new facilities, and existing facilities that have chosen to make major modifications, to implement energy efficiency measures to reduce their GHG emissions.

The GHG Tailoring Rule would continue to address a group of six greenhouse gases: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). The PSD permitting program protects air quality and allows economic growth by requiring facilities that trigger PSD to limit GHG emissions in a cost effective way. An operating permit lists all of a facility’s Clean Air Act emissions control requirements and ensures adequate monitoring, recordkeeping and reporting. The operating permit program allows an opportunity for public involvement and to improve compliance.

Under the approach maintained in this proposal, new facilities with GHG emissions of at least 100,000 tons per year (tpy) carbon dioxide equivalent (CO2e) continue to be required to obtain PSD permits. Existing facilities that emit 100,000 tpy of CO2e and make changes increasing the GHG emissions by at least 75,000 tpy CO2e, must also obtain PSD permits.Facilities that must obtain a PSD permit, to include other regulated pollutants, must also address GHG emission increases of 75,000 tpy or more of CO2e. New and existing sources with GHG emissions above 100,000 tpy CO2e must also obtain operating permits.

EPA will accept comments on this proposal for 45 days after it is published in the Federal Register. A public hearing will be held on March 20, 2012, in Arlington, Virginia to listen to public comment about the proposal. “

Saturday, March 3, 2012

U.S. UNDER SECRETARY ROSE GOTTEMOELLER REMARKS ON ARMS CONTROL IN THE INFORMATION AGE


The following excerpt is from a U.S. State Department e-mail:

“Arms Control in the Information Age
Remarks Rose Gottemoeller
Acting Under Secretary for Arms Control and International Security Mykolas Romeris University
Vilnius, Lithuania
March 2, 2012
Thank you for the kind introduction. It is so wonderful to be back in Vilnius. I was here just over a year ago, shortly after the New START Treaty entered into force. I am happy to report that implementation of that Treaty is now well underway.

New START was just the beginning. President Obama made it clear in his now-famous Prague Speech that the United States is committed to the peace and security of a world without nuclear weapons. In order to pursue this goal, we know that we are going to have to think bigger and bolder. With this is mind, I have been challenging myself and my colleagues to think about how we use the knowledge of our past together with the new tools of the information age. I look out at a crowd like you and realize that I don’t need to convince you that the technologies of the 21st century are changing the world as we know it. While I may still be figuring out how to use my Ipad, I know it too. That is why I have been talking about arms control in the information age at universities around in the United States.

Today, I will talk to you about our diplomatic toolbox, the changing nature of diplomacy, and the new technologies that can help us on the road to nuclear zero. You all are the first international university to hear this, so I would like to start out saying the same thing I tell students back in the United States—this is not a policy speech, this is an ideas speech.

Tools in the Toolbox
When it comes to pursuing the next steps in nuclear reductions, we have a lot on our plate, and getting to zero is going to take time and heavy effort. There can be no shortcuts. The United States and Russia still have a lot of work to do, as together we still control over 90% of the world’s nuclear stockpile. Proliferation and nuclear terrorism continue to be a serious security threat. And when we come to agreement on disarmament and nonproliferation measures, it will take hard, persistent work to implement those agreements. Even more complicated: the lower the numbers or the smaller the parts, the harder it will be to monitor compliance.

It is clear that we are going to need every tool we have, and many we have not yet developed or even thought of, to fulfill the Prague Agenda. That means the first thing we need to do is take stock of the tools we have in our diplomatic toolbox.

First up in the toolbox is the formal, legally-binding negotiation process, like the one we used for the New START Treaty. This process is responsible for the important Treaties and agreements that undergird our arms control and nonproliferation regime.

In the United States, we also have international agreements that do not require Senate advice and consent; they are called “executive agreements.” They too are legally binding. While these types of agreements are not used for reductions, they could be useful in securing agreements on confidence-building, verification or other actions that may be as important as future treaties.

Another way to makes changes in nuclear posture that was used in the past was through reciprocal actions that two countries take at the same time. The pros of such an approach include speed and flexibility. A con is that such arrangements may not be verifiable and can be reversed as a result of a change in policy.

Progress on reductions is sometimes difficult due to a lack of trust between parties. A solution for this is mutual confidence building measures, or CBMs. These measures help establish lasting stability, while at the same time taking into account each nation’s security interests. CBMs may include exchanging information about the size of the defense budget, giving notification of planned military activities, or even things as simple as issuing invitations for national holidays, cultural and sport events.

An important way to build mutual confidence is to work together on tough problems. One of the great unsung success stories of the early post-Cold War years is how U.S. and Russian scientists, sometimes with other scientists from the then Newly Independent States, worked together to ensure the continued safety and security of fissile material and warheads.

We can also use “alphabet soup” cooperative efforts, like Cooperative Threat Reduction or CTR. Introduced in 1991 by Senators Sam Nunn and Richard Lugar, the CTR legislation helped destroy a large amount of former Soviet weaponry, including hundreds of ballistic missiles and ballistic missile launchers. The CTR programs continue today and have expanded to tackle the threat posed by terrorist organizations or states seeking weapons of mass destruction (WMD) expertise, materials and equipment.
All these efforts will be key parts to moving forward, but it is not just what we have in our toolbox that is important, it is how we use those tools.

21st Century Diplomacy
Diplomacy today is very different than it was at the dawn of the nuclear age. More often diplomacy is happening in the open, and at quicker speeds. The world has changed and we diplomats have to work under new circumstances.

In my own experience, diplomacy has been changing before my eyes. I was a junior member of the U.S. START delegation in 1990-91, an experience that served me well when negotiating the New START Treaty. I remember how things were done back then: masses of paper had to be shuttled among delegation members—we were constantly burning up Xerox machines, and faxes flowed from Geneva to Washington and back. Remember the fax machines? It has disappeared like the dinosaur. In Geneva in 1990, if you had secret and urgent business with Washington, you had to sandwich yourself into a steaming hot secure phone booth and shout to make yourself understood at the other end.

When the New START negotiations began in April 2009, the world had changed. The U.S. and Russian delegations launched into the negotiations committed to keeping them respectful and businesslike, even when we did not agree. And we agreed to disagree in private. That was good considering how easily either delegation could have broadcast negative comments that would have reached Moscow or Washington before we could pick up a phone.

For me, the biggest change in how we did business was email. Instead of making hard copies and waiting days or weeks for the mail, we could get information around the delegation and to our leaders in Washington within hours, even minutes. Both classified and unclassified materials could be sent, decreasing necessary trips back to Washington.

After some discussion, we also agreed to exchange negotiating documents with the Russian team electronically, although on disks and not via email. Still, even CDs made a big difference to after-hours communication. There was a famous story about how in the 1990s, during the START talks, a member of the U.S. delegation had to hurl a satchel of negotiating documents over the fence of the Soviet mission to his counterpart, because no guard was there to open the gates late at night. Obviously, a CD could be handed more easily between the bars of the fence--which we did from time to time.

In my view, these new approaches to a formal negotiating process, especially our new digital toolbox, were a big factor in the fast pace of our negotiations--exactly one year from our first meeting to our last one. No longer bogged down by paper processes, things moved quickly. Nowadays, I don’t have to wait until the next time I travel to Geneva or Moscow to advance business with my counterparts; I can email or call from my home or office, and hopefully soon, I can walk across the hall and have a video-chat in our conference room.

New Technologies and Arms Control
These astonishing advancements in communication technologies over the past decades may not just be useful in diplomacy, they might also be able to aid in the verification of arms control treaties and agreements.

Our new reality is a smaller, increasingly-networked world where the average citizen connects to other citizens in cyberspace hundreds of times each day. They exchange and share ideas on a wide variety of topics, why not put this vast problem solving entity to good use? Or put another way, how can we use new media technologies by combining them with 222 years of U.S. diplomatic negotiating expertise?

Today, any event, anywhere on the planet, could be broadcast globally in seconds. That means it is harder to hide things. When it is harder to hide things, it is easier to be caught. The neighborhood gaze is a powerful tool and it could help us make sure that countries were following the rules of arms control treaties and agreements.

Open source information technologies improve arms control verification in at least two ways: either as a way of generating new information or as analysis of information that already is out there.

The DARPA Red Balloon Challenge, which you can google, is an example of the first. It demonstrated the enormous potential of social networking to solve problems and also showed how incentives can motivate large populations to work toward a common goal. Applying such ideas to arms control, a country could, for example, show it is complying with a treaty by opening itself to a verification challenge.

A technique like this—I call it a “public verification challenge”—might be especially valuable as we move to lower and lower numbers of nuclear weapons. Governments, in that case, will have an interest in proving that they are meeting their reduction obligations and may want to engage their publics in helping them to make the case.
It will then be necessary to work together to make sure nations cannot spoof or manipulate the verification challenges that they devise—that’s a big problem, but one I am sure you can tackle.

This kind of citizen-run verification and monitoring project could add to the standard international safeguards or verification of a country’s nuclear declaration. Once again, we have to bear in mind that there could be limitations based on the freedoms available to the citizens of said country—an issue to tackle in thinking through this problem.
The Information Age is also creating a greater talent pool of individuals. People can reach a broader, diverse market for their products and services. These private citizens can develop web base applications for e-book readers, cell phones and any touch pad communication devices. This “crowd sourcing” lets everyday people solve problems by getting innovative ideas out of their heads and onto the shelves.

Open source technology could be useful in the hands of inspectors. Smart Phone and tablet apps could be created for the express purpose of aiding in the verification and monitoring process. For example, by having all safeguards and verification sensors in an inspected facility wirelessly connected to the inspector’s iPad, he or she could note anomalies and flag specific items for closer inspections, as well as compare readings in real time and interpret them in context. Some of this is already happening. Another new application idea would take sensor readings and feed them into a 3-D virtual model of a facility, so an inspector could tailor an inspection in real time before he or she even steps inside.

As we think through new ways to use these tools, we should be aware that there may be trouble ahead. We cannot assume that information will always be so readily available. As nations and private entities continue to debate the line between privacy and security, it is possible to imagine that we are living in a golden age of open source information that will be harder to take advantage of in future.

In the end, the goal of using open source information technology and social networks should be to add to our existing arms control verification capabilities, and we will need your help to think about how it can be done.

So, as you have heard, we are thinking about a lot of new concepts. As I said at the outset, this is not about policy; this is about coming up with the bold ideas that will shape policy in the future. As the first set of university students outside the United States that has heard this, you have a head start on helping us find new ways to use the amazing information tools at our disposal to move the world closer to eliminating nuclear weapons.
Thank you again for inviting me here to speak. I would now love to take some questions.”




U.S. REMARKS AT 19 HUMAN RIGHTS COUNCIL SESSION


The following excerpt is from a U.S. State Department e-mail:

Remarks Before the 19th Session of the Human Rights Council
Remarks Maria Otero
Under Secretary for Civilian Security, Democracy, and Human Rights Geneva, Switzerland
March 2, 2012
"When the United States joined the UN Human Rights Council two years ago, we set forth four values that would guide our work in this body: universality, dialogue, principle, and truth. We knew then, as we know now, that the honest dialogue and dedicated effort of this Council will help all of our nations on the path to international peace and security.

In the two years since, we have stayed true to those values. But our global challenges remain -- among them, threats to freedoms of assembly, association, expression and religion and to vulnerable populations. As we seek a second term on the Council, the United States stands ready to build on the Council’s successes to pursue solutions to these pressing challenges. This session provides several opportunities to do so.
Last week in Tunisia, we partnered with the Friends of Syria in a unified commitment to help end the suffering of the Syrian people. We joined Council members this week to condemn the Asad regime’s ongoing brutal crackdown.

We must extend the mandate of the Commission of Inquiry launched by the Council, which has effectively performed its intensely difficult mandate with great commitment, so that it can continue to document the atrocities being committed and lay the groundwork for accountability.

Recent efforts on Syria are not the first time the Council has provided an important platform for action. Last year, this Council created a special rapporteur to monitor the human rights situation in Iran. Special Rapporteur Shaheed has conducted his work in a spirit of openness and dialogue. His important work must continue, and I encourage the Council to continue his mandate.

Tomorrow, Iranians will go to the polls for the first time since the 2009 disputed election -- a moment when tens of thousands of Iranians took to the streets to demand their civil rights. Since then, the regime’s repression and persecution of all who stand up for their universal human rights has only intensified. The United States stands with religious and political leaders around the world in condemning the conviction of Youcef Nadarkhani’s and calling for his immediate release.

In Burma, the government has taken substantial and serious steps to improve the human rights situation for its citizens. We must continue to support this progress by extending the mandate of the special rapporteur. We commend the government for its recent efforts and encourage it to continue discussions with ethnic minority groups -- armed or otherwise -- on the path to national reconciliation.

The United States will also support renewal of the mandate of the special rapporteur on the human rights situation in the Democratic People’s Republic of Korea. We share the Republic of Korea’s deep concerns regarding the treatment of refugees and asylum seekers from the DPRK in third countries.

We know from experience that there can be no lasting peace without reconciliation and accountability, but the United States is concerned that, in Sri Lanka, time is slipping away. The international community has waited nearly three years for action, and while we welcome the release of the LLRC report, the recommendations of the report should be implemented. We have engaged Sri Lanka bilaterally on these issues since the conflict ended in 2009, and stand ready to continue to work with them. Action now in this Council will sow the seeds of lasting peace on the ground.

The United States has worked through this Council to assist countries in transition with their human rights challenges. We have supported human rights protection and promotion in Kyrgyzstan, Guinea, Haiti and Cote d’ Ívoire, among others. In our UPR presentation, we addressed our own incomplete journey toward universal human rights, and we admire those countries that speak about their shortcomings as well as their strengths. We stand ready to help countries ready to address their human rights challenges, and during this session we hope to reach agreement to provide additional assistance to Yemen and Libya. With the support of this Council, these countries can consolidate democracy and become new beacons of leadership on human rights.

The United States has also worked through this Council to address significant cross-cutting issues that affect all of us, including combating discrimination on the basis of religion or belief. We were pleased to host the first meeting that seeks to implement Human Rights Council resolution 16/18, and we look forward to adopting a resolution this session that recognizes the important progress we have made.
Resolution 16/18 has proven that this Council can discuss and act upon difficult issues where consensus seems impossible. We also look forward to the upcoming discussion on the human rights of LGBT persons, underscoring that being lesbian, gay, bisexual or transgender does not make you less human.

As States increase pressure on rights and freedoms online, the United States must reiterate that the universal freedoms of expression, assembly and association are as applicable on the Internet and mobile technologies as they are to traditional modes of expression. We are concerned that some States are using new technologies to block content and suppress political dissent, and we encourage States to fulfill their human rights commitments and obligations in the context of new technologies.”



COMPOSITE PICTURE SHOWS DARK MATTER DISTRIBUTION ACROSS GALAXIES


The following excerpt and picture are from the NASA:


"This composite image shows the distribution of dark matter, galaxies, and hot gas in the core of the merging galaxy cluster Abell 520, formed from a violent collision of massive galaxy clusters. The natural-color image of the galaxies was taken with NASA's Hubble Space Telescope and with the Canada-France-Hawaii Telescope in Hawaii. Superimposed on the image are "false-colored" maps showing the concentration of starlight, hot gas, and dark matter in the cluster. Starlight from galaxies, derived from observations by the Canada-France-Hawaii Telescope, is colored orange. The green-tinted regions show hot gas, as detected by NASA's Chandra X-ray Observatory. The gas is evidence that a collision took place. The blue-colored areas pinpoint the location of most of the mass in the cluster, which is dominated by dark matter. Dark matter is an invisible substance that makes up most of the universe's mass. The dark-matter map was derived from the Hubble Wide Field Planetary Camera 2 observations by detecting how light from distant objects is distorted by the cluster of galaxies, an effect called gravitational lensing. The blend of blue and green in the center of the image reveals that a clump of dark matter resides near most of the hot gas, where very few galaxies are found. This finding confirms previous observations of a dark-matter core in the cluster. The result could present a challenge to basic theories of dark matter, which predict that galaxies should be anchored to dark matter, even during the shock of a collision. Abell 520 resides 2.4 billion light-years away. Image Credit: NASA, ESA, CFHT, CXO, M.J. Jee (University of California, Davis), and A. Mahdavi (San Francisco State University)"


REMARKS BY U.S. AT THE COUNCIL OF THE AMERICA'S

The following excerpt is from the Department of State website:


"U.S. Policy and Engagement in the Americas


Remarks
Wendy Sherman
Under Secretary for Political Affairs 
Remarks to the Council of the Americas and the Center for Strategic and International Studies (CSIS)
Carnegie Endowment for International Peace
Washington, DC
February 28, 2012


Thank you Ambassador Negroponte for those kind words and to the Council of the Americas and the Center for Strategic and International Studies for hosting this event. I would also like to thank the Council for its continued leadership on hemispheric issues and for bringing together individuals from all sectors to ensure our engagement and dialogue on the Americas is constantly evolving. We look forward to being part of the 42nd Washington Conference at the State Department in May. I would also like to congratulate CSIS on celebrating 50 years this year of helping to find solutions to today’s foreign policy challenges. Just less than one year ago, CSIS graciously provided an opportunity for Secretary Clinton to share her views on the hemisphere prior to the President’s trip to the region.

I appreciate the invitation and welcome the opportunity to share some impressions from my trip to Colombia, Mexico, and Brazil earlier this month. These countries are key regional and global players, and genuine partners, and we work closely with them in virtually every area of policy. Given the wealth of experience represented here today, I hope to get your views as well, as we prepare for the President’s participation in the Summit of the Americas in Cartagena in April.

When we talk about U.S. policy and engagement in the Americas, it is critical that we think in strategic terms, of where we need to be in ten or twenty years. Our policies in the region are building on a huge, historically significant opportunity: to make the western hemisphere a strong platform for shared economic growth and security—regionally and globally—that will advance our peoples’ interests for generations. This is no small vision. It is shaping and reordering our diplomacy and statecraft all over the hemisphere.

I know there are voices that say we don’t pay enough attention to Latin America, or that our “importance” there is waning. It’s a folkloric narrative when it comes to this region, and it is also somewhat patronizing. It misses by a mile what is really going on, and how we are forging equal partnerships with countries in the hemisphere.
I returned from this trip feeling more confident than ever about both Latin America and our role within it. I also felt tremendously buoyed by the leadership that you see coming from so many actors in civil society, the private sector, and local government. They understand very directly today’s opportunity, and they don’t want to waste it.
I don’t want to bore you with a travelogue, but I would like to briefly comment on each of the stops because I think it will give you a feel for what I mean when I say that these countries are key players. Before I start, however, I want to salute Ambassadors McKinley, Wayne, and Shannon for the truly extraordinary work they are doing to advance these relationships. They and their excellent inter-agency country teams represent us with creativity, dignity, and distinction.

In Colombia, I was reminded of the sheer breadth of our relationship. My conversations with President Santos and other top officials went beyond the security themes that used to automatically top the agenda. Colombia has a dynamic economy; positioned, some say, to become the second largest in South America, after Brazil. So we talked about our robust and growing economic relationship, which is creating new jobs in both countries. The review process for implementing our free trade agreement is advancing well, and already affecting the business climate in positive ways.

We talked about Colombia’s preparations for the Summit of the Americas, now a month and a half out. It’s never an easy event for any country to pull off. Colombia’s work on this says volumes about its regional leadership, and its commitment to the broader integration process underway throughout the region.

We also discussed Colombia’s growing regional and global outreach in support of international peace and security. For example, over the last three years, Colombia has trained over 11,000 police from 21 countries in Latin America and Africa, as well as Afghanistan. Colombia has also been a leader in the SICA-led Central American donor coordination process. Colombia is succeeding in leveraging its experience in the fight against cartels and terrorists in a way that positions it as a net exporter of security far beyond its borders.
My conversations with President Santos, Foreign Minister Holguin, and Defense Minister Pinzon and others not only covered the breadth of our security cooperation and Colombia’s growing participation in regional security initiatives, but helped lay the groundwork for our future security engagement as Colombia consolidates its institutional and security gains. I also heard from a variety of civil society leaders about progress on human rights issues, and the challenges that remain.

In Mexico City, as well, my meetings highlighted a diverse and mature bilateral relationship—one that has never been stronger. At its very core is a relationship of family, of Mexican and Mexican-Americans in the United States, and their extended families in Mexico. They stay connected in ways both social and economic. The economic relationship and its growth over especially the past two decades are central to the prosperity of both our countries. To be successful, that link requires an efficient 21st century border that encourages commerce and deters illicit activities, so border issues figure prominently in senior bilateral meetings.

My colleagues from the Foreign Secretariat and I also consulted at length about a wide range of international and multilateral issues, as we routinely do with Mexico. Those included the grave situation in Syria, our mutual concern over the state of democracy in Nicaragua, and planning for the G20 Foreign Ministers meeting that Mexico held ten days ago. Mexico’s presidency of the G20—it hosts the next summit, in June—underscores the country’s growing global leadership role. For any of the old Mexico hands in the room, please try to imagine discussing Syria and Iran with the Mexican foreign ministry 20, or even 10 years ago.

We also talked about final details of the Transboundary Hydrocarbons Agreement that Secretary Clinton subsequently signed with Mexico on February 20. The agreement is a great example of bilateral cooperation and partnership in the area of energy security, and it provides a sound framework for the exploration of important new energy reserves.

We have made great strides institutionalizing a positive, comprehensive partnership with Mexico on security and law enforcement. The cornerstone of that engagement is the $1.6 billion Merida partnership. The Mexican Government’s close partnership and sacrifice in fighting transnational crime and stemming the flow of illegal drugs in the hemisphere is commendable. It was clear during my discussions with civil society leaders how important it is to continue to work together to strengthen human rights—and specifically to protect journalists, many of whom have been targeted by cartel violence.

As we cooperate in new ways to fight criminal cartels, we know we have to confront the demand for illegal drugs in more successful ways. One of the highlights of my visit was my participation with First Lady Zavala and Mexico’s Health Secretary, in the inauguration of the “National System to Counter Drug Addiction.” Using Merida Initiative funds, the project creates an information technology platform that will link over 300 drug addiction centers, local councils, and state observatories around the country to monitor addiction trends and share best practices in treatment. This data network is a brilliant example of Mexico’s commitment to confront drug use and addiction at every level. It is also a great example of our partnership, under the Merida initiative, to support prevention, rehabilitation, and treatment—all key to building strong and resilient communities.

In Brasilia, my meetings at the Foreign Ministry, the President’s office, and the Congress were a chance to take stock of an already strong 21st Century partnership that seems to be gaining breadth and depth by the day. At its core is our burgeoning cooperation in education, science, technology, infrastructure, innovation, and energy. All of these areas are, of course, vital to our, and Brazil’s, economic success. I think it is a telling commentary on the maturity of our relationship that it has moved so far beyond traditional foreign policy confines. Today Brazil is a strategic partner in addressing global — not just hemispheric — issues of shared concern. And I want to be clear that the United States needs and welcomes Brazil's positive expanded role. The fact that we will sometimes disagree on policy issues does not change that, but rather highlights the need for continued dialogue and better understanding of each others’ values and views.

President Obama will welcome President Rousseff to Washington, DC on April 9, so my counterparts and I also discussed preparations for that visit. The agenda will focus on a range of bilateral, regional and global issues. We will likely talk about educational cooperation, science and innovation, and trade and investment. And, as we have so many times in the past, we will undoubtedly address broader global issues and how we can work together in the many multilateral fora and groupings that characterize today’s world order.

My trip also highlighted the rapidly growing education cooperation between our two countries. President Rousseff’s ambitious “Science Without Borders” initiative aims to send 101,000 Brazilian students abroad to study in key scientific disciplines—75,000 on government scholarships, and another 26,000 paid by the private sector. The goals of that program dovetail nicely with President Obama’s “100 Thousand Strong in the Americas” goal, which he announced last March in Chile, of increasing to 100,000 the number of U.S. students studying in Latin America and the Caribbean and the same from the region to the United States by 2020. So education will be huge on the agenda as it not only strengthens relations, but also fosters trade and business ties and prepares students for the 21st Century global workforce. This goal creates an excellent opportunity for private sector involvement by supporting exchange programs, financing scholarships, offering internships and training, and mentoring exchange students. You will be hearing a lot more from us on this in the weeks and months to come.
After Brasilia, I had a terrific visit to Recife, in northeastern Brazil. It is an area of the country that is growing even faster than the national average—an area full of opportunity. All around me I saw the signs of economic boom, as well as evidence of continued challenges in areas such as education, infrastructure, and public services. I was impressed at the forward-looking leadership of so many local officials and private sector representatives with whom I met. They understand the challenge, are facing it head on, and know that broadly expanded cooperation with the United States can accelerate their success. Pernambuco’s Governor Eduardo Campos, is spearhea
ding investment in all these areas, particularly in education. We signed an education MOU with Pernambuco state to strengthen cooperation in education and professional qualification, particularly in the area of English language training. This is a great example of new partnership at local and state levels that is having an immediate impact on people’s lives. This is, if I may say so, part of the modern face of our public diplomacy in the region. We are building linkages at the grass roots level that will help nurture and sustain the quickly growing ties between our societies.

What I hope I’ve done is give you a sense of how practical, multi-faceted, and globally focused our relationships with these three key countries are. And how incredibly active our ties are, on so many levels. They are part of a broader and very positive pattern of rapidly evolving U.S. relations throughout the region. That story reflects huge transformations within many of its countries, in how countries within the region are connecting with each other, and how the region is connecting with the world. All of this is shifting how we understand our interests in the Americas, and accentuating our stake in the continuing success and prosperity of countries in the region. As trading partners who buy our goods; as partners capable of providing global public goods; as protagonists in addressing global challenges.

I think the Summit of the Americas, in Cartagena, in April, will showcase the region’s rapid change—and the many practical ways that countries and societies in the Americas are coming together to solve problems and build a more successful and interconnected future. When President Obama went to the last Summit in 2009, shortly after he took office, he pledged a new era of equal partnership in our relations with the Americas. Three years later, we can point to a clear record of progress in that direction. The contours and details of that partnership are as varied as our societies, but it is effectively reshaping our engagement all across the Americas.
A word about what you shouldn’t expect the Summit to be: a jamboree of unanimity on every policy issue out there. That’s not political reality. And there are a small number of governments that obviously have not been receptive to our partnership offers. Or who take a more narrow and exclusionary approach to integration. That’s not where most of the region is pointed. There are some divergent views, and we are always open to looking for common ground even in those cases and the offer to find common ground stands. But we are committed to working with partners, all over the hemisphere, to advance and defend common interests and values, and we won’t be shy about speaking up, clearly, and acting, to that end.

A brief preview of some of our priorities at the Summit. These priorities all entail a forward-looking vision, but are grounded in very practical cooperation now—cooperation that is already under way and increasing. I think you can expect the President will focus a lot on boosting competitiveness in the Americas. Specifically, on the need to invest in education, to build up the human capital that will be a critical factor in social progress, economic competitiveness, and national success in a globalized world. Our network of free trade agreements throughout the Americas is an engine of growth in all our countries. But, we know that our growth and competitiveness depends on a lot more than trade agreements. They hinge, for example, on the quality of our investment in human capital and our ability to equip citizens to be successful in the 21st century workplace. So the President will talk with his colleagues about education, and how we can work together better and faster to expand access to education that meets the needs of peoples, especially in higher education.

Of course, this is not just the work of governments. It is a project for our whole societies, including the private sector, with its ability to mobilize and apply great resources. The private sector events during the Summit will offer the President, and his counterparts, the chance to make this point directly and explore new partnership ideas.

Growth, competitiveness, and quality of life also require cleaner and more reliable energy for our citizens. In Cartagena, President Obama will be able to highlight the many new partnerships taking shape in the Americas to help secure this. I think the President will also focus on the way our partnerships in the hemisphere are taking on an increasingly global character as the countries of the region become increasingly important global players. The success of these global partnerships will be vital to consolidating and accelerating the region’s economic growth. The Trans-Pacific Partnership (TPP) is a great example of this. It holds the promise of helping drive a new wave of high-standard, socially responsible, growth-generating trade liberalization throughout the greater Pacific. Chile and Peru are already part of TPP; Mexico, Canada, and others have expressed interest in joining this ambitious global partnership.

We talk a lot about a pivot towards the Pacific. But make no mistake about how much we consider the Americas to be part of the greater Pacific community. A stronger focus on the greater Pacific brings renewed urgency and importance to the quality and effectiveness of our ties to nations in the Americas. Secretary Clinton has reiterated this many times. She said it clearly last March at CSIS. I suspect many of you were present. She said: “The bottom line is that geography matters…it is a comparative advantage to be embraced and we neglect it at our own peril.”

For all of us who work on hemispheric policy, these are exciting and promising times. Our policy has moved light years beyond a traditional and reactive approach to the Americas. We are convinced that the capabilities and experience of people throughout the Americas will be a vital ingredient in a stable, prosperous and secure world. Expanding, unleashing, and applying that skill and knowledge are high strategic objectives that can only be realized with the full engagement of our societies, but I am so encouraged by the trends that augur for success.
Thank you. I would now like to hear from you and would be happy to take your questions."


U.S. STATE DEPARTMENT TALKS ABOUT XENOPHOBIA AND HUMAN RIGHTS


The following excerpt is from a U.S. State Department e-mail:

“Combating Xenophobia: Human Rights First Event
RemarksDavid M. Robinson
Acting Assistant Secretary, Bureau of Population, Refugees, and MigrationWashington, DC
February 29, 2012
Good morning and thank you all very much for being here on this otherwise miserable day, and for inviting me to participate in this event. I’d like to start by congratulating Human Rights First for organizing this forum and for compiling the report that will inform our discussion throughout the rest of the morning. In addition to the hard work, inspired work, that went into compiling the report, I want to commend the analysis and recommendations that it offers. They seem to me to be very sound and to provide a solid foundation for action. So thank you, and thank you, Elisa, and all your colleagues.

Having said my thank yous, I also have a confession to make. As I read through the report, I found myself becoming increasingly disturbed. Not just by the subject matter itself, which is, of course, disturbing and should disturb all of us. But rather, I became disturbed by the tone and the vocabulary of the report. The language and the style is admirably measured as all good reports should be. It's very calm and objective. And that's what began to bother me.

Think about the word Xenophobia. It’s a big word. It’s got ten letters and is dripping with Latin. Because of that, it sounds almost clinical, almost sanitized. Phobia. It’s like a condition or a disease that can be treated once it’s properly diagnosed and understood. It conjures images of psychiatrists or other physicians: rational, neutral clinicians who specialize in…Xenophobia.

But that’s not the case, is it? It isn’t measured. Xenophobia basically means hatred. It means hatred for what’s foreign to you. It means hatred for what’s strange or alien or different from you. It means hatred that’s so powerfully felt that it sometimes turns to violence. And you don’t treat hatred. You stomp on it. You combat it, as the Human Rights First report correctly notes in its title. Hatred doesn’t require physicians; it can't be treated by a doctor or some other neutral clinician. Hatred needs opponents. It needs an exorcist, not a psychiatrist.

And so the report disturbed me. The subject matter and emotion were so discordant. Which is another way of saying the report did its job. While the tone and language don't convey, the anger we justifiably feel about the gross injustice inflicted by xenophobic and other bias-based violence, the report, together with this forum, is a strong call to action. Together, they remind us that it's in fact our duty to combat, to exorcise, the pernicious kind of hatred that picks on the world’s most vulnerable people, the kind of hatred that goes after refugees, IDPs, stateless people, gay and lesbian people, religious and ethnic minorities and anybody else who is different, who is alien. The kind of hatred that goes after…well, it goes after people. Not statistics. Not populations. Not representatives of special groups. It goes after people. Individuals with identities, with hopes and dreams and heartbreak and families. Just people.

Since xenophobia goes after people, xenophobia is personal. It may be rooted in historical experience. It may be enshrined in local custom. It may be codified in national law. But xenophobia--hatred-- is always personal. It seeks out and attacks the people who most need compassion. It isolates and oppresses the people who most need justice. And it exposes and crushes the people who most need protection. And that, folks, is intensely personal.

And so combating xenophobia is also personal. Combating xenophobia means taking sides, not simply, as we in the State Department often do, adopting positions. It means abandoning the pretense of uncomfortable acceptance or grudging tolerance or reluctant understanding of abysmal behavior and taking the side of those who most need compassion, the side of those who most need justice, and the side of those who most need protection. And perhaps most importantly, combating xenophobia means taking that word, that measured, clinical, slightly abstract term, and making it in-your-face personal.
As we survey the globe, all of us are familiar with egregious examples of xenophobia and other forms of destructive bias, whether sanctioned or merely tolerated by governments, as the report notes, too: Ethnic Haitians in the Dominican Republic, the Bidoon in Kuwait, or the Rohingya in Burma. These are essentially stateless people, who are denied the protections we take for granted, and then, when driven from their homes, their suffering the additional hardship of becoming refugees or IDPs. We're familiar with sub-Saharan migrants who are brutalized crossing the Sinai, and with economic migrants, stranded and preyed upon in Yemen. And we know about lesbian, gay, bi-sexual and transgender and other people ostracized and sometimes killed in far too many places around the world. The list of victims of hatred and violence is long and it's messy. We all know this.

Knowing all this begs the question. The question, of course, is how do we stop it. Well, I am lucky, in fact, I am privileged, to work for a government that gets it, I work for a government that puts its money where its values are. My bureau, PRM, was built specifically to take the right side, to use diplomacy, programming and advocacy to protect the world's most vulnerable people and to oppose the systematic oppression that they face. And we aggressively pursue this mandate at the local, national and international levels, you all know well, including with health, nutrition, legal, sanitation, shelter, education, livelihood and resettlement interventions and services. And we routinely ping and guide and consult with other governments whether to encourage them to improve their own protection regimes or to dismantle discriminatory practices and policies. And we take a look at oursevles, too, to constantly improve, we look in the mirror. The catalogue of our activism is significant and growing.

But the most important thing we do, the best strategy we employ to combat xenophobia, is to help build and sustain multilayered partnerships, partnerships that turn our policy positions and our program objectives into flesh and blood outcomes. PRM – you all know the statistics – is the single most generous, and I hope most reliable, partner of the United Nations High Commissioner for Refugees, of the International Committee of the Red Cross, of the International Organization for Migration, and of the United Nations Works and Relief Agency for Palestine. These relationships go far beyond writing checks and drafting reports. They are all long-lived relationships that go beyond the reports. They are true partnerships, with all of the dynamism, creativity, and, yes, the tension that lifelong partners generate, and they, along with our NGO partners, are at the heart of a global humanitarian architecture that has one purpose and just one purpose: To protect vulnerable people. Individuals.

Xenophobia is about people. Xenophobic and other forms of bias-based violence are always personal. And so the success or failure of our efforts to stop it cannot be judged primarily in measured, clinical terms: By the treaties we sign, by the laws we cause to be passed, by the dollars we spend. Those may be, those are, important and contributing factors to success. But the real success of our strategies to combat xenophobia has got to be measured by how well we reach specific people, individual human beings. We have to judge ourselves by how well we stand beside those people who need us most. More than anything else that requires vast networks of committed, capable partners and partnerships.
I wish you great luck in your discussions today, I’m sorry I won’t be able to stay, and I hope that you'll approach them from the point of view of the victims or potential victims themselves rather than the organizational imperatives we represent. And if we do that, our strategies will stand on the right side of the equation.
Thank you.”




$83 MILLION APPROVED BY EX-IM BANK FOR FINANCING LOCOMOTIVE SALES TO CANADA

The following excerpt is from the Export-Import Bank website:

Ex-Im Bank Approves $83 Million in Export Financing for Sale of U.S.  Locomotives to Canada

Transaction Supports 500 American Jobs Across Six States
WASHINGTON, D.C. --- The Export-Import Bank of the United States (Ex-Im Bank) approved an $83.1 million loan guarantee to support the sale of six American-made locomotives, railroad cars, and mining equipment to the Iron Ore Company of Canada (IOC). This transaction supported 500 U.S. jobs across a range of American businesses in six states (Arkansas, Illinois, Missouri, Tennessee, Virginia and Wisconsin).

“As global infrastructure investment increases, high quality, American-made locomotives and equipment are in demand around the world,” said Fred P. Hochberg, chairman and president of Ex-Im Bank.  “Ex-Im is committed to ensuring that the financing is in place to allow American companies to win a growing share of these sales. These transactions bolster our manufacturing base, while creating, supporting and sustaining good jobs in communities across the United States.”

2011 was a record year in locomotive financing for Ex-Im Bank, with more than $550 million supporting the sale of American-made locomotives to hard to reach markets, including Kazakhstan and South Africa.

The U.S. companies involved in the IOC transaction include Electro-Motive Diesel, Inc. (EMD) (LaGrange, Ill.), American Rail Car Industries Inc. (St. Charles, Mo.), Freightcar America Inc. (Chicago, Ill.), Harnischfeger Corp. (Milwaukee, Wisc.), Komatsu America Corp. (Peoria, Ill.), and Caterpillar, Inc. (Peoria, Ill.). Comerica Bank (Detroit, Mich.) is the guaranteed lender.

“These companies build products that are built to last and in the process they are building an American economy that is built to last – one that is driven by manufacturing, exports and the most talented and productive workers in the world,” added Hochberg.
This is the second order backed by Ex-Im Bank financing for IOC. The locomotives, railroad cars, and mining equipment are being used to expand IOC’s production in Labrador City, Newfoundland.

ABOUT EX-IM BANK
Ex-Im Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. In the past five years, Ex-Im Bank has earned for U.S. taxpayers nearly $1.9 billion above the cost of operations. The Bank provides a variety of financing mechanisms, including working capital guarantees, export-credit insurance and financing to help foreign buyers purchase U.S. goods and services.

Ex-Im Bank approved $32.7 billion in total authorizations in FY 2011 -- an all-time Ex-Im record. This total includes more than $6 billion directly supporting small-business export sales -- also an Ex-Im record. Ex-Im Bank's total authorizations are supporting an estimated $41 billion in U.S. export sales and approximately 290,000 American jobs in communities across the country.”


THE CROSS BORDER CRIME FORUM IN OTTAWA, CANADA


The following excerpt is from the Department of Justice website:

Friday, March 2, 2012
“Readout of Attorney General Eric Holder and Secretary Janet Napolitano’s Trip to Ottawa, Canada
U.S. Attorney General Eric Holder and Secretary of Homeland Security Janet Napolitano today visited Ottawa, Canada to participate in the Cross-Border Crime Forum with Canadian Minister of Justice and Attorney General Rob Nicholson, and Canadian Minister of Public Safety Vic Toews.  Secretary Napolitano, Attorney General Holder and Minister Toews also signed a memorandum of understanding to better prevent and combat human smuggling and trafficking.

“Our productive discussions today at the Cross Border Crime Forum go a long way toward advancing a key pillar of the Beyond the Border initiative that President Barack Obama and Prime Minister Stephen Harper signed last year: integrated law enforcement that adds value to our relationship by leveraging shared resources, improving information sharing and increasing coordination of efforts, while ensuring the safety of the citizens of both our countries,” said Attorney General Holder.  “ I am grateful to our Canadian counterparts for their indispensable work to combat exploitation, abuse, and violence; and to strengthen the critical ties that bind our nations together. With the signing of this important memorandum, we signal a renewed commitment to the goals and values that our nations share to prevent and combat human trafficking.”

 “We must stop individuals and transnational criminal organizations that seek to exploit the border shared by the United States and Canada to traffic drugs, arms and other illicit goods,” said Secretary Napolitano. “We will continue to work closely with our Canadian partners through greater operational collaboration and intelligence sharing to strengthen the security of both our nations within, at, and away from our border.”

During the Forum, Secretary Napolitano, Attorney General Holder, Canadian Minister of Justice and Attorney General Nicholson and Minister Toews discussed collaborative efforts to advance President Obama and Prime Minister Harper’s Beyond the Border: A Shared Vision for Perimeter Security and Economic Competitiveness initiative.  The Beyond the Border Action Plan outlines the specific steps both countries will take to achieve the security and economic competitiveness goals from the Beyond the Border Declaration.  They also focused on efforts to develop the next-generation of integrated cross-border law enforcement operations, and improve information sharing practices to enhance the mutual security of the United States and Canada.


“Our Government is pleased to work with our U.S. counterparts to combat cross-border crime,” said the Honorable Rob Nicholson. “Ongoing cooperation between our countries allows for the most effective investigation and prosecution of crime when criminal activities cross our border.”

“The Forum remains an excellent opportunity for Canada and the U.S. to advance cooperation in the areas of law enforcement, criminal justice and intelligence,” said Minister Toews. “Our government is focused on the economy and creating jobs, and I am particularly pleased with the progress being made on initiatives announced under the Beyond the Border Action Plan.”

While in Ottawa, Attorney General Holder, Secretary Napolitano and Minister Toews signed a memorandum of understanding between the U.S. Human Smuggling and Trafficking Center and the Canadian Human Trafficking National Coordination Center.  The agreement between these two centers will facilitate the sharing of critical information on human trafficking to combat and disrupt transnational criminal organizations.”





Friday, March 2, 2012

STATE DEPARTMENT OFFICIAL GIVES INTERVIEW WITH AL JAZEERA-BALKINS

The following excerpt is from a U.S. State Department e-mail:

Interview With Ivica Puljic of Al Jazeera-Balkans
InterviewPhilip H. Gordon
Assistant Secretary, Bureau of European and Eurasian AffairsWashington, DC
March 1, 2012
QUESTION: Thank you for the time. Let’s talk about Serbia and Kosovo. We have some updates and how the U.S. government is watching this situation.

ASSISTANT SECRETARY GORDON: Well, we were very pleased earlier this week to see the agreement between Serbia and Kosovo on Kosovo’s participation in regional organizations and on integrated border management. This gives Kosovo the opportunity to represent itself and speak for itself in regional organizations which is very important.

As you know, the United States strongly supports Kosovo’s independence and this is a further step towards manifesting that on the international scene.

We were also very pleased [inaudible] the European Union’s decision to offer candidacy status for Serbia, which is something the United States has supported for some time. We believe Serbia should be on the path to European Union membership. Also the EU’s decision to reach out to Kosovo, launching a feasibility study on a Stabilization and Association Agreement, and basically encouraging both countries on the path to European integration which is something the United States is very strongly behind.
QUESTION: This is excellent first step, but in the future, how do you see the situation in the future?

ASSISTANT SECRETARY GORDON: There’s clearly a lot more work to be done, both in the EU facilitated dialogue between Serbia and Kosovo. Obviously there are still major differences over the north of Kosovo and we encourage the sides to talk about those.

The United States strongly supports Kosovo’s territorial integrity and independence, but we believe there are ways to allow for the local inhabitants, the ethnic Serbs in the north of Kosovo, to legitimately elect representatives and to be significantly in charge of their own affairs.

Moving forward for both of those countries is a critical step towards completing Europe and we believe that the candidacy status offered to Serbia is further encouragement for Serbia to normalize its relationship with Kosovo, which will benefit both countries profoundly.

QUESTION: And a few words about Bosnia, please. Bosnia finally has a government, they were waiting for that like 14, 15, months, and do you see that as a good sign or just too late?

ASSISTANT SECRETARY GORDON: The formation of a state-level government in Bosnia was long overdue, taking more than a year after the elections. But we’re very encouraged that the parties have come together to do so, not only formed a government, but have agreed on a budget and taken other steps that show that the state level leadership can contribute to what that country needs.

The United States remains strongly supportive of Bosnia and its continued Euro-Atlantic integration. The first step was getting a state level government in place. We would like to see leaders agree on the disposition of defense properties so that NATO can enhance its relationship with Bosnia and we’ll continue to remain very much engaged with Bosnia leaders on their path forward.

QUESTION: Today is Independence Day in Bosnia, but more than half the country doesn’t recognize that. The Republic of Srpska and [inaudible] celebrating that. That is in my opinion the best point if you’re going to talk about some problems in Bosnia.

ASSISTANT SECRETARY GORDON: The United States strongly supports Bosnia as a country with different entities and different ethnic groups, but as one country. We believe that there’s no alternative to that. We strongly disagree with any notions of partition. We believe that Bosnian Serbs, just as Bosnian Croats and Bosniaks can live and work in the same country, and the more they do so the more it’s in their own interest.

QUESTION: [inaudible] contact with the new government in Croatia? They form a new government, [inaudible] because the Prime Minister just visited Bosnia, his first visit outside of Croatia.

ASSISTANT SECRETARY GORDON: We work very closely with the new government in Croatia. Secretary Clinton looks forward to meeting with her counterpart and we have a big agenda, both bilaterally and throughout the region.

QUESTION: Thank you so much.

ASSISTANT SECRETARY GORDON: Thank you.”






Search This Blog

Translate

White House.gov Press Office Feed